Minnesota Legislature
SF 1
3rd Unofficial Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to human services; establishing the Minnesota 1.3 family investment program-statewide, contingent 1.4 benefit standards, and the work first program; making 1.5 assistance program changes; making technical changes; 1.6 changing certain county requirements; establishing the 1.7 corps to career community service program and the 1.8 citizenship promotion program; requiring a plan for 1.9 providing a tribal employment and training program; 1.10 requiring a proposal for repayment of post-secondary 1.11 education funds; establishing program integrity 1.12 initiatives; establishing procedures for overpayment 1.13 of assistance and establishing notification 1.14 requirements; establishing criminal penalties for 1.15 wrongfully obtaining assistance; requiring fraud 1.16 prevention investigation programs to be budget 1.17 neutral; establishing the presumption of receipt of 1.18 benefits for persons who have been issued an 1.19 assistance transaction card; establishing recovery of 1.20 overpayments and ATM errors; requiring notification to 1.21 undocumented persons regarding the release of personal 1.22 data; establishing a truancy prevention pilot project; 1.23 creating a child care assistance reserve account; 1.24 establishing asset requirement for MinnesotaCare; 1.25 imposing criminal and civil penalties; amending 1.26 Minnesota Statutes 1996, sections 13.46, subdivisions 1.27 1 and 2; 13.82, subdivision 1; 84.0887, subdivision 2; 1.28 84.98, subdivision 3; 136A.125, subdivision 2; 196.27; 1.29 237.70, subdivision 4a; 254B.02, subdivision 1; 1.30 256.01, subdivision 4a; 256.017, subdivisions 1, 2, 1.31 and 4; 256.031, subdivision 5, and by adding a 1.32 subdivision; 256.033, subdivisions 1 and 1a; 256.045, 1.33 subdivision 3; 256.046; 256.736, subdivision 3a; 1.34 256.74, subdivision 1, and by adding a subdivision; 1.35 256.81; 256.82, subdivision 2; 256.935, subdivision 1; 1.36 256.9354, by adding a subdivision; 256.98, 1.37 subdivisions 1 and 4; 256.981; 256.984, subdivision 1; 1.38 256.9850; 256.986; 256.9861, subdivisions 1, 2, and 4; 1.39 256B.055, subdivisions 3, 5, and by adding a 1.40 subdivision; 256B.056, subdivisions 1a, 3, and 4; 1.41 256B.057, subdivisions 1, 1b, and 2b; 256B.06, 1.42 subdivision 4, and by adding a subdivision; 256B.062; 1.43 256D.01, subdivisions 1, 1a, and 1e; 256D.02, 1.44 subdivisions 6 and 12a; 256D.03, subdivision 3; 1.45 256D.05, subdivisions 1, 5, and 8; 256D.051, 1.46 subdivisions 1a, 2a, 3a, and by adding a subdivision; 2.1 256D.055; 256D.06, subdivisions 2 and 5; 256D.08, 2.2 subdivisions 1 and 2; 256D.09, subdivision 6, and by 2.3 adding a subdivision; 256D.435, subdivision 3; 2.4 256D.44, subdivision 5; 256E.03, subdivision 2; 2.5 256E.06, subdivisions 1 and 3; 256E.07, subdivision 1; 2.6 256E.08, subdivision 3; 256F.05, subdivision 5; 2.7 256G.01, subdivision 4; 257.3573, subdivision 2; 2.8 259.67, subdivision 4; 260.38; 261.063; 268.0111, 2.9 subdivisions 5 and 7; 268.0122, subdivision 3; 2.10 268.552, subdivision 5; 268.6751, subdivision 1; 2.11 268.676, subdivision 1; 268.86, subdivision 2; 2.12 268.871, subdivision 1; 268.90, subdivision 2; 2.13 268.916; 268.95, subdivision 4; 270A.03, subdivision 2.14 5; 375.21, subdivision 1; 388.23, subdivision 1; 2.15 393.07, subdivisions 6 and 10; and 477A.0122, 2.16 subdivision 2; proposing coding for new law in 2.17 Minnesota Statutes, chapters 3; 256; 256B; and 256D; 2.18 proposing coding for new law as Minnesota Statutes, 2.19 chapters 256J; and 256K; repealing Minnesota Statutes 2.20 1996, sections 256.12, subdivisions 9, 10, 14, 15, 19, 2.21 20, 21, 22, and 23; 256.72; 256.73, subdivisions 1, 2.22 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 10, and 11; 2.23 256.7341; 256.7351; 256.7352; 256.7353; 256.7354; 2.24 256.7355; 256.7356; 256.7357; 256.7358; 256.7359; 2.25 256.736, subdivision 18; 256.7365, subdivisions 1, 2, 2.26 3, 4, 5, 6, 7, and 9; 256.7366; 256.737; 256.738; 2.27 256.7381; 256.7382; 256.7383; 256.7384; 256.7385; 2.28 256.7386; 256.7387; 256.7388; 256.739; 256.74, 2.29 subdivisions 1, 1a, 1b, 2, and 6; 256.745; 256.75; 2.30 256.76, subdivision 1; 256.78; 256.80; 256.81; 256.82; 2.31 256.84; 256.85; 256.86; 256.863; 256.871; 256.8711; 2.32 256.879; 256D.02, subdivision 5; 256D.0511; and 2.33 256D.065. 2.34 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.35 ARTICLE 1 2.36 MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 2.37 Section 1. [256J.01] [ESTABLISHING MINNESOTA FAMILY 2.38 INVESTMENT PROGRAM-STATEWIDE.] 2.39 Subdivision 1. [IMPLEMENTATION OF MINNESOTA FAMILY 2.40 INVESTMENT PROGRAM-STATEWIDE (MFIP-S).] This chapter and chapter 2.41 256K may be cited as the Minnesota family investment 2.42 program-statewide (MFIP-S). MFIP-S is the statewide 2.43 implementation of components of the Minnesota family investment 2.44 plan (MFIP) authorized under section 256.031 and Minnesota 2.45 family investment plan-Ramsey county (MFIP-R) in section 256.047. 2.46 Subd. 2. [IMPLEMENTATION OF TEMPORARY ASSISTANCE FOR NEEDY 2.47 FAMILIES (TANF).] The Personal Responsibility and Work 2.48 Opportunity Reconciliation Act of 1996, Public Law Number 2.49 104-193, eliminates the aid to families with dependent children 2.50 (AFDC) program and replaces it with a program of block grants to 2.51 states for temporary assistance for needy families (TANF). TANF 2.52 provides cash assistance for a limited time to families with 3.1 children and to pregnant women. Minnesota's TANF assistance 3.2 will be provided through a statewide expansion of MFIP. The 3.3 modifications specified in this chapter are necessary to comply 3.4 with the new federal law and to improve MFIP. Eligible 3.5 applicants and recipients of AFDC, family general assistance, 3.6 and food stamps will be converted to the MFIP-S program. The 3.7 conversion to MFIP-S must be made by January 1, 1998, and may be 3.8 made earlier at county option. 3.9 Subd. 2a. [LIMIT ON PARTICIPATION.] The MFIP-S program is 3.10 not an entitlement and expenditures for this program shall be 3.11 within the limits of the forecast. 3.12 Subd. 3. [RELATIONSHIP TO OTHER STATUTES AND 3.13 RULES.] MFIP-S replaces eligibility for families with children 3.14 and pregnant women under the general assistance program, 3.15 governed by sections 256D.01 to 256D.21 and Minnesota Rules, 3.16 parts 9500.1200 to 9500.1270. 3.17 Subd. 4. [CHANGES TO WAIVERS.] The commissioner of human 3.18 services may negotiate and obtain changes in the federal waivers 3.19 and terms and conditions contained in MFIP, MFIP-R, and MFIP-S. 3.20 The commissioner may also terminate federal waivers by directing 3.21 so in the applicable state plan. 3.22 Subd. 5. [COMPLIANCE SYSTEM.] The commissioner shall 3.23 administer a compliance system for the state's temporary 3.24 assistance for needy families (TANF) program, the food stamp 3.25 program, emergency assistance, general assistance, medical 3.26 assistance, general assistance medical care, emergency general 3.27 assistance, Minnesota supplemental aid, preadmission screening, 3.28 child support program, and alternative care grants under the 3.29 powers and authorities named in section 256.01, subdivision 2. 3.30 The purpose of the compliance system is to permit the 3.31 commissioner to supervise the administration of public 3.32 assistance programs and to enforce timely and accurate 3.33 distribution of benefits, completeness of service and efficient 3.34 and effective program management and operations, to increase 3.35 uniformity and consistency in the administration and delivery of 3.36 public assistance programs throughout the state, and to reduce 4.1 the possibility of sanction and fiscal disallowances for 4.2 noncompliance with federal regulations and state statutes. 4.3 Sec. 2. [256J.02] [FEDERAL TEMPORARY ASSISTANCE FOR NEEDY 4.4 FAMILIES BLOCK GRANT.] 4.5 Subdivision 1. [COMMISSIONER'S AUTHORITY TO ADMINISTER 4.6 BLOCK GRANT FUNDS.] The commissioner of human services is 4.7 authorized to receive, administer, and expend funds available 4.8 under the TANF block grant authorized under title I of Public 4.9 Law Number 104-193, the Personal Responsibility and Work 4.10 Opportunity Reconciliation Act of 1996. 4.11 Subd. 2. [USE OF MONEY.] State money appropriated for 4.12 purposes of this section and TANF block grant money must be used 4.13 for: 4.14 (1) financial assistance to or on behalf of any minor child 4.15 who is a resident of this state under section 256J.12; 4.16 (2) employment and training services under this chapter or 4.17 chapter 256K; 4.18 (3) emergency financial assistance and services under 4.19 section 256J.48; 4.20 (4) diversionary assistance under section 256J.47; and 4.21 (5) program administration under this chapter. 4.22 Subd. 3. [CARRY FORWARD OF FEDERAL MONEY.] Temporary 4.23 assistance for needy families block grant money must be 4.24 appropriated for the purposes in this section and is available 4.25 until expended. 4.26 Subd. 4. [AUTHORITY TO TRANSFER.] Subject to limitations 4.27 of title I of Public Law Number 104-193, the Personal 4.28 Responsibility and Work Opportunity Reconciliation Act of 1996, 4.29 the legislature may transfer money from the TANF block grant to 4.30 the child care fund under section 119B.02, or the Title XX block 4.31 grant under section 256E.07. 4.32 Subd. 5. [INDIRECT COST LIABILITY.] Notwithstanding the 4.33 provisions of section 16A.127, the statewide and agency indirect 4.34 cost liability identified as part of the TANF grant for any 4.35 current fiscal year shall be limited to no more than the amount 4.36 received in fiscal year 1996. 5.1 Sec. 3. [256J.06] [COMMUNITY INVOLVEMENT.] 5.2 The MFIP-S program must be administered in a way that, in 5.3 addition to the county agency, other sectors in the community 5.4 such as employers from the public and private sectors, 5.5 not-for-profit organizations, educational and social service 5.6 agencies, program participants, labor unions, and neighborhood 5.7 associations are involved. 5.8 Sec. 4. [256J.08] [DEFINITIONS.] 5.9 Subdivision 1. [SCOPE OF DEFINITIONS.] The terms used in 5.10 this chapter have the following meanings unless otherwise 5.11 provided for by text. 5.12 Subd. 2. [ABSENT PARENT.] "Absent parent" means a minor 5.13 child's parent who does not live in the same home as the child. 5.14 Subd. 3. [AGENCY ERROR.] "Agency error" means an error 5.15 that results in an overpayment or underpayment to an assistance 5.16 unit and is not caused by an applicant's or participant's 5.17 failure to provide adequate, correct, or timely information 5.18 about income, property, household composition, or other 5.19 circumstances. 5.20 Subd. 4. [APPEAL.] "Appeal" means a written statement from 5.21 an applicant or participant who requests a hearing under section 5.22 256J.31. 5.23 Subd. 5. [APPLICANT.] "Applicant" means a person who has 5.24 submitted to a county agency an application and whose 5.25 application has not been acted upon, denied, or voluntarily 5.26 withdrawn. 5.27 Subd. 6. [APPLICATION.] "Application" means the submission 5.28 by or on behalf of a family to a county agency of a completed, 5.29 signed, and dated form, prescribed by the commissioner, that 5.30 indicates the desire to receive assistance. 5.31 Subd. 7. [ASSISTANCE UNIT OR MFIP-S ASSISTANCE 5.32 UNIT.] "Assistance unit" or "MFIP-S assistance unit" means a 5.33 group of mandatory or optional people receiving or applying for 5.34 MFIP-S benefits together. 5.35 Subd. 8. [AUTHORIZED REPRESENTATIVE.] "Authorized 5.36 representative" means a person who is authorized, in writing, by 6.1 an applicant or participant to act on the applicant's or 6.2 participant's behalf in matters involving the application for 6.3 assistance or participation in MFIP-S. 6.4 Subd. 9. [BASIC NEEDS.] "Basic needs" means the minimum 6.5 personal requirements of subsistence and is restricted to food, 6.6 clothing, shelter, utilities, and other items for which the 6.7 loss, or lack of basic needs, is determined by the county agency 6.8 to pose a direct, immediate threat to the physical health or 6.9 safety of the applicant or participant. 6.10 Subd. 10. [BUDGET MONTH.] "Budget month" means the 6.11 calendar month which the county agency uses to determine the 6.12 income or circumstances of an assistance unit to calculate the 6.13 amount of the assistance payment in the payment month. 6.14 Subd. 11. [CAREGIVER.] "Caregiver" means a minor child's 6.15 natural or adoptive parent or parents who live in the home with 6.16 the minor child. For purposes of determining eligibility for 6.17 this program, caregiver also means any of the following 6.18 individuals, if adults, who live with and provide care and 6.19 support to a minor child when the minor child's natural or 6.20 adoptive parent or parents do not reside in the same home: 6.21 legal custodians, grandfather, grandmother, brother, sister, 6.22 stepfather, stepmother, stepbrother, stepsister, uncle, aunt, 6.23 first cousin, nephew, niece, person of preceding generation as 6.24 denoted by prefixes of "great," "great-great," or 6.25 "great-great-great," or a spouse of any person named in the 6.26 above groups even after the marriage ends by death or divorce. 6.27 Subd. 12. [CLIENT ERROR.] "Client error" means an error 6.28 that results in an overpayment or underpayment and is due to an 6.29 applicant's or participant's failure to provide adequate, 6.30 correct, or timely information concerning income, property, 6.31 household composition, or other circumstances. 6.32 Subd. 13. [COMMISSIONER.] "Commissioner" means the 6.33 commissioner of human services or the commissioner's designated 6.34 representative. 6.35 Subd. 14. [CORRECTIVE PAYMENT.] "Corrective payment" means 6.36 an assistance payment that is made to correct an underpayment. 7.1 Subd. 15. [COUNTABLE INCOME.] "Countable income" means 7.2 earned and unearned income that is not excluded under section 7.3 256J.21, subdivision 2, or disregarded under section 256J.21, 7.4 subdivision 3. 7.5 Subd. 16. [COUNTED EARNINGS.] "Counted earnings" means the 7.6 earned income that remains after applicable disregards under 7.7 section 256J.21, subdivision 4, have been subtracted from gross 7.8 earned income. 7.9 Subd. 17. [COUNTY AGENCY.] "County agency" means the 7.10 agency designated by the county board to implement financial 7.11 assistance for current programs and for MFIP-S and the agency 7.12 responsible for enforcement of child support collection, and a 7.13 county or multicounty agency that is authorized under sections 7.14 393.01, subdivision 7, and 393.07, subdivision 2, to administer 7.15 MFIP-S. 7.16 Subd. 18. [COUNTY BOARD.] "County board" means a board of 7.17 commissioners, a local services agency as defined in chapter 7.18 393, a board established under Joint Powers Act, section 471.59, 7.19 or a human services board under chapter 402. 7.20 Subd. 19. [COUNTY OF FINANCIAL RESPONSIBILITY.] "County of 7.21 financial responsibility" means the county that has financial 7.22 responsibility for providing public assistance as specified in 7.23 chapter 256G. 7.24 Subd. 20. [COUNTY OF RESIDENCE.] "County of residence" 7.25 means the county where the caregiver has established a home. 7.26 Subd. 21. [DATE OF APPLICATION.] "Date of application" 7.27 means the date on which the county agency receives an 7.28 applicant's signed application. 7.29 Subd. 22. [DEEM.] "Deem" means to treat all or part of the 7.30 income of an individual who is not in the assistance unit, but 7.31 who is financially responsible for members of the assistance 7.32 unit, as if it were income available to the assistance unit. 7.33 Subd. 23. [DEPARTMENT.] "Department" means the Minnesota 7.34 department of human services. 7.35 Subd. 24. [DISREGARD.] "Disregard" means earned income 7.36 that is not counted when determining initial eligibility or 8.1 ongoing eligibility and calculating the amount of the assistance 8.2 payment for participants. 8.3 Subd. 25. [DOCUMENTATION.] "Documentation" means a written 8.4 statement or record that substantiates or validates an assertion 8.5 made by a person or an action taken by a person, agency, or 8.6 entity. 8.7 Subd. 26. [EARNED INCOME.] "Earned income" means cash or 8.8 in-kind income earned through the receipt of wages, salary, 8.9 commissions, profit from employment activities, net profit from 8.10 self-employment activities, payments made by an employer for 8.11 regularly accrued vacation or sick leave, and any other profit 8.12 from activity earned through effort or labor. 8.13 Subd. 27. [EARNED INCOME TAX CREDIT.] "Earned income tax 8.14 credit" means the payment which can be obtained by a qualified 8.15 person from an employer or from the Internal Revenue Service as 8.16 provided by section 290.0671 and United States Code, title 26, 8.17 subtitle A, chapter 1, subchapter A, part 4, subpart C, section 8.18 32. 8.19 Subd. 28. [EMERGENCY.] "Emergency" means a situation or a 8.20 set of circumstances that causes or threatens to cause 8.21 destitution to a minor child. 8.22 Subd. 29. [EQUITY VALUE.] "Equity value" means the amount 8.23 of equity in real or personal property owned by a person and is 8.24 determined by subtracting any outstanding encumbrances from the 8.25 fair market value. 8.26 Subd. 30. [EXCLUDED TIME.] "Excluded time" has the meaning 8.27 given in section 256G.02. 8.28 Subd. 31. [EXPEDITED ISSUANCE OF THE FOOD STAMP 8.29 PORTION.] "Expedited issuance of the food stamp portion" means 8.30 the issuance of the food stamp portion to eligible assistance 8.31 units on the day of application as provided in section 393.07, 8.32 subdivision 10a. 8.33 Subd. 32. [FAIR HEARING OR HEARING.] "Fair hearing" or 8.34 "hearing" means the evidentiary hearing conducted by the 8.35 department appeals referee to resolve disputes as specified in 8.36 sections 256.045 and 256J.40. 9.1 Subd. 33. [FAIR MARKET VALUE.] "Fair market value" means 9.2 the price that an item of a particular make, model, size, 9.3 material, or condition would sell for on the open market in the 9.4 particular geographic area. 9.5 Subd. 34. [FAMILY.] "Family" includes: 9.6 (1) the following individuals who live together: a minor 9.7 child or a group of minor children related to each other as 9.8 siblings, half siblings, stepsiblings, or adoptive siblings, 9.9 together with their natural, adoptive parents, stepparents, or 9.10 caregiver as defined in subdivision 11; and 9.11 (2) a pregnant woman with no other children. 9.12 Subd. 35. [FAMILY WAGE LEVEL.] "Family wage level" means 9.13 109 percent of the transitional standard. 9.14 Subd. 36. [FEDERAL INSURANCE CONTRIBUTION ACT OR 9.15 FICA.] "Federal Insurance Contribution Act" or "FICA" means the 9.16 federal law under United States Code, title 26, subtitle C, 9.17 chapter 21, subchapter A, sections 3101 to 3126, that requires 9.18 withholding or direct payment from earned income. 9.19 Subd. 37. [FINANCIAL CASE RECORD.] "Financial case record" 9.20 means an assistance unit's financial eligibility file. 9.21 Subd. 38. [FULL-TIME STUDENT.] "Full-time student" means a 9.22 person who is enrolled in a graded or ungraded primary, 9.23 intermediate, secondary, GED preparatory, trade, technical, 9.24 vocational, or post-secondary school, and who meets the school's 9.25 standard for full-time attendance. 9.26 Subd. 39. [GENERAL EDUCATIONAL DEVELOPMENT OR 9.27 GED.] "General educational development" or "GED" means the 9.28 general educational development certification issued by the 9.29 Minnesota board of education as an equivalent to a secondary 9.30 school diploma under Minnesota Rules, part 3500.3100, subpart 4. 9.31 Subd. 40. [GROSS EARNED INCOME.] "Gross earned income" 9.32 means earned income from employment before mandatory and 9.33 voluntary payroll deductions. Gross earned income includes 9.34 salaries, wages, tips, gratuities, commissions, incentive 9.35 payments from work or training programs, payments made by an 9.36 employer for regularly accrued vacation or sick leave, and 10.1 profits from other activity earned by an individual's effort or 10.2 labor. Gross earned income includes uniform and meal allowances 10.3 if federal income tax is deducted from the allowance. Gross 10.4 earned income includes flexible work benefits received from an 10.5 employer if the employee has the option of receiving the benefit 10.6 or benefits in cash. 10.7 Subd. 41. [GROSS INCOME.] "Gross income" is the sum of 10.8 gross earned income and unearned income. 10.9 Subd. 42. [GROSS RECEIPTS.] "Gross receipts" means the 10.10 money received by a business before the expenses of the business 10.11 are deducted. 10.12 Subd. 43. [HALF-TIME STUDENT.] "Half-time student" means a 10.13 person who is enrolled in a graded or ungraded primary, 10.14 intermediate, secondary, GED preparatory, trade, technical, 10.15 vocational, or post-secondary school, and who meets the school's 10.16 standard of half-time attendance. 10.17 Subd. 44. [HOME.] "Home" means the primary place of 10.18 residence used by a person as the base for day-to-day living and 10.19 does not include locations used as mail drops. 10.20 Subd. 45. [HOMESTEAD.] "Homestead" means the home that is 10.21 owned by, and is the usual residence of, the assistance unit 10.22 together with the surrounding property which is not separated 10.23 from the home by intervening property owned by others. Public 10.24 rights-of-way, such as roads which run through the surrounding 10.25 property and separate it from the home, do not affect the 10.26 exemption of the property. Homestead includes an asset that is 10.27 not real property that the assistance unit uses as a home, such 10.28 as a vehicle. 10.29 Subd. 46. [HOUSEHOLD.] "Household" means a group of 10.30 persons who live together. 10.31 Subd. 47. [INCOME.] "Income" means cash or in-kind 10.32 benefit, whether earned or unearned, received by or available to 10.33 an applicant or participant that is not an asset under section 10.34 256J.20. 10.35 Subd. 48. [INITIAL ELIGIBILITY.] "Initial eligibility" 10.36 means the determination of eligibility for an MFIP-S applicant. 11.1 Subd. 49. [IN-KIND INCOME.] "In-kind income" means income, 11.2 benefits, or payments which are provided in a form other than 11.3 money or liquid assets, including the forms of goods, produce, 11.4 services, privileges, or payments made on behalf of an applicant 11.5 or participant by a third party. 11.6 Subd. 50. [INQUIRY.] "Inquiry" means a communication to a 11.7 county agency through mail, telephone, or in person, by which a 11.8 person or authorized representative requests information about 11.9 public assistance. The county agency shall also treat as an 11.10 inquiry any communication in which a person requesting 11.11 assistance offers information about the person's family 11.12 circumstances that indicates that eligibility for public 11.13 assistance may exist. 11.14 Subd. 51. [LEGALLY AVAILABLE.] "Legally available" means a 11.15 person's right under the law to secure, possess, dispose of, or 11.16 control income or property. 11.17 Subd. 52. [LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM OR 11.18 LIHEAP.] "Low-income home energy assistance program" or "LIHEAP" 11.19 means the program authorized under United States Code, title 42, 11.20 chapter 94, subchapter II, sections 8621 to 8629, and 11.21 administered by the Minnesota department of economic security. 11.22 Subd. 53. [LUMP SUM.] "Lump sum" means nonrecurring income 11.23 that is not excluded in section 256J.21. 11.24 Subd. 54. [MEDICAL ASSISTANCE.] "Medical Assistance" means 11.25 the program established under chapter 256B and Title XIX of the 11.26 Social Security Act. 11.27 Subd. 55. [MFIP-S HOUSEHOLD REPORT FORM.] "MFIP-S 11.28 household report form" means a form prescribed by the 11.29 commissioner that a participant uses to report information to a 11.30 county agency about changes in income and other circumstances. 11.31 Subd. 56. [MIGRANT WORKER.] "Migrant worker" means a 11.32 person who travels away from home on a regular basis, usually 11.33 with a group of other laborers, to seek employment in an 11.34 agriculturally related activity. 11.35 Subd. 57. [MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 11.36 OR MFIP-S.] "Minnesota family investment program-statewide" or 12.1 "MFIP-S" means the assistance program authorized in this chapter 12.2 and chapter 256K. 12.3 Subd. 58. [MINNESOTA SUPPLEMENTAL AID OR MSA.] "Minnesota 12.4 supplemental aid" or "MSA" means the program established under 12.5 sections 256D.33 to 256D.54. 12.6 Subd. 59. [MINOR CAREGIVER.] "Minor caregiver" means a 12.7 person who: 12.8 (1) is under the age of 18; 12.9 (2) has never been married or otherwise legally 12.10 emancipated; and 12.11 (3) is either the natural parent of a minor child living in 12.12 the same household or is eligible for assistance paid to a 12.13 pregnant woman. 12.14 Subd. 60. [MINOR CHILD.] "Minor child" means a child who 12.15 is living in the same home of a parent or other caregiver, is 12.16 either less than 18 years of age or is under the age of 19 years 12.17 and is regularly attending as a full-time student and is 12.18 expected to complete a high school or a secondary level course 12.19 of vocational or technical training designed to fit students for 12.20 gainful employment before reaching age 19. 12.21 Subd. 61. [MONTHLY INCOME TEST.] "Monthly income test" 12.22 means the test used to determine ongoing eligibility and the 12.23 assistance payment amount according to section 256J.21. 12.24 Subd. 62. [NONRECURRING INCOME.] "Nonrecurring income" 12.25 means a form of income which is received: 12.26 (1) only one time or is not of a continuous nature; or 12.27 (2) in a prospective payment month but is no longer 12.28 received in the corresponding retrospective payment month. 12.29 Subd. 63. [OVERPAYMENT.] "Overpayment" means the portion 12.30 of an assistance payment issued by the county agency that is 12.31 greater than the amount for which the assistance unit is 12.32 eligible. 12.33 Subd. 64. [PARENT.] "Parent" means a child's biological or 12.34 adoptive parent who is legally obligated to support that child. 12.35 Subd. 65. [PARTICIPANT.] "Participant" means a person who 12.36 is currently receiving cash assistance and the food portion 13.1 available through MFIP-S as funded by TANF and the food stamp 13.2 program. A person who fails to withdraw or access 13.3 electronically any portion of his or her cash assistance payment 13.4 by the end of the payment month or who returns any uncashed 13.5 assistance check and withdraws from the program is not a 13.6 participant. A person who withdraws a cash assistance payment 13.7 by electronic transfer or receives and cashes a cash assistance 13.8 check and is subsequently determined to be ineligible for 13.9 assistance for that period of time is a participant, regardless 13.10 of whether that assistance is repaid. The term "participant" 13.11 includes the caregiver relative and the minor child whose needs 13.12 are included in the assistance payment. A person in an 13.13 assistance unit who does not receive a cash assistance payment 13.14 because he or she has been suspended from MFIP-S or because his 13.15 or her need falls below the $10 minimum payment level is a 13.16 participant. 13.17 Subd. 66. [PAYEE.] "Payee" means a person to whom an 13.18 assistance payment is made payable. 13.19 Subd. 67. [PAYMENT MONTH.] "Payment month" means the 13.20 calendar month for which the assistance payment is paid. 13.21 Subd. 68. [PERSONAL PROPERTY.] "Personal property" means 13.22 an item of value that is not real property, including the value 13.23 of a contract for deed held by a seller, assets held in trust on 13.24 behalf of members of an assistance unit, cash surrender value of 13.25 life insurance, value of a prepaid burial, savings account, 13.26 value of stocks and bonds, and value of retirement accounts. 13.27 Subd. 69. [PROBABLE FRAUD.] "Probable fraud" means the 13.28 level of evidence that, if proven as fact, would establish that 13.29 assistance has been wrongfully obtained. 13.30 Subd. 70. [PROFESSIONAL CERTIFICATION.] "Professional 13.31 certification" means: 13.32 (1) a statement about a person's illness, injury, or 13.33 incapacity that is signed by a licensed physician, psychological 13.34 practitioner, or licensed psychologist, qualified by 13.35 professional training and experience to diagnose and certify the 13.36 person's condition; or 14.1 (2) a statement about an incapacity involving a spinal 14.2 subluxation condition that is signed by a licensed chiropractor 14.3 qualified by professional training and experience to diagnose 14.4 and certify the condition. 14.5 Subd. 71. [PROSPECTIVE BUDGETING.] "Prospective budgeting" 14.6 means a method of determining the amount of the assistance 14.7 payment in which the budget month and payment month are the same. 14.8 Subd. 72. [PROTECTIVE PAYEE.] "Protective payee" means a 14.9 person other than the caregiver of an assistance unit who 14.10 receives the monthly assistance payment on behalf of an 14.11 assistance unit and is responsible to provide for the basic 14.12 needs of the assistance unit to the extent of that payment. 14.13 Subd. 73. [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 14.14 means a person: 14.15 (1) who was lawfully admitted for permanent residence 14.16 pursuant to United States Code, title 8; 14.17 (2) who was admitted to the United States as a refugee 14.18 pursuant to United States Code, title 8; section 1157; 14.19 (3) whose deportation is being withheld pursuant to United 14.20 States Code, title 8, section 1253(h); 14.21 (4) who was paroled for a period of at least one year 14.22 pursuant to United States Code, title 8, section 1182(d)(5); 14.23 (5) who was granted conditional entry pursuant to United 14.24 State Code, title 8, section 1153(a)(7); 14.25 (6) who was granted asylum pursuant to United States Code, 14.26 title 8, section 1158; or 14.27 (7) determined to be a battered noncitizen by the United 14.28 States Attorney General according to the Illegal Immigration 14.29 Reform and Immigrant Responsibility Act of 1996, Title V of the 14.30 Omnibus Consolidated Appropriations Act, Public Law Number 14.31 104-200. 14.32 Subd. 74. [REAL PROPERTY.] "Real property" means land and 14.33 all buildings, structures, and improvements, or other fixtures 14.34 on the land, belonging or appertaining to the land, and all 14.35 mines, minerals, fossils, and trees on or under the land. 14.36 Subd. 75. [REASONABLE COMPENSATION.] "Reasonable 15.1 compensation" means the value received in exchange for property 15.2 transferred to another owner that is consistent with fair market 15.3 value and equals or exceeds the seller's equity in the property, 15.4 reduced by costs incurred in the sale. 15.5 Subd. 76. [RECERTIFICATION.] "Recertification" means the 15.6 periodic review of eligibility factors to determine an 15.7 assistance unit's continued eligibility. 15.8 Subd. 77. [RECOUPMENT.] "Recoupment" means the action of 15.9 the county agency to reduce a family's monthly assistance 15.10 payment to recover overpayments caused by client or agency error 15.11 and overpayments received while an appeal is pending. 15.12 Subd. 78. [RECOVERY.] "Recovery" means actions taken by a 15.13 county agency to reclaim the value of overpayments through 15.14 voluntary repayment, recoupment from the assistance payment, 15.15 court action, revenue recapture, or federal tax refund offset 15.16 program (FRTOP). 15.17 Subd. 79. [RECURRING INCOME.] "Recurring income" means a 15.18 form of income which is: 15.19 (1) received periodically, and may be received irregularly 15.20 when receipt can be anticipated even though the date of receipt 15.21 cannot be predicted; and 15.22 (2) from the same source or of the same type that is 15.23 received and budgeted in a prospective month and is received in 15.24 one or both of the first two retrospective months. 15.25 Subd. 80. [REEMPLOYMENT INSURANCE.] "Reemployment 15.26 insurance" means the insurance benefit paid to an unemployed 15.27 worker under sections 268.03 to 268.23. 15.28 Subd. 81. [RETROSPECTIVE BUDGETING.] "Retrospective 15.29 budgeting" means a method of determining the amount of the 15.30 assistance payment in which the payment month is the second 15.31 month after the budget month. 15.32 Subd. 82. [SANCTION.] "Sanction" means the reduction of a 15.33 family's assistance payment by a specified percentage of the 15.34 applicable transitional standard because: a nonexempt 15.35 participant fails to comply with the requirements of sections 15.36 256J.52 to 256J.55; a parental caregiver fails without good 16.1 cause to cooperate with the child support enforcement 16.2 requirements; or a participant fails to comply with the 16.3 insurance, tort liability, or other requirements of this chapter. 16.4 Subd. 83. [SIGNIFICANT CHANGE.] "Significant change" means 16.5 a decline in gross income of 35 percent or more from the income 16.6 used to determine the grant for the current month. 16.7 Subd. 84. [SUPPLEMENTAL SECURITY INCOME OR 16.8 SSI.] "Supplemental Security Income" or "SSI" means the program 16.9 authorized under title XVI of the Social Security Act. 16.10 Subd. 85. [TRANSITIONAL STANDARD.] "Transitional standard" 16.11 means the basic standard for a family with no other income or a 16.12 nonworking family and is a combination of the cash assistance 16.13 needs and food assistance needs for a family of that size. 16.14 Subd. 86. [UNEARNED INCOME.] "Unearned income" means 16.15 income received by a person that does not meet the definition of 16.16 earned income. Unearned income includes income from a contract 16.17 for deed, interest, dividends, reemployment insurance, 16.18 disability insurance payments, veterans benefits, pension 16.19 payments, return on capital investment, insurance payments or 16.20 settlements, severance payments, and payments for illness or 16.21 disability whether the premium payments are made in whole or in 16.22 part by an employer or participant. 16.23 Subd. 87. [VENDOR.] "Vendor" means a provider of goods or 16.24 services. 16.25 Subd. 88. [VENDOR PAYMENT.] "Vendor payment" means a 16.26 payment authorized by a county agency to a vendor. 16.27 Subd. 89. [VERIFICATION.] "Verification" means the process 16.28 a county agency uses to establish the accuracy or completeness 16.29 of information from an applicant, participant, third party, or 16.30 other source as that information relates to program eligibility 16.31 or an assistance payment. 16.32 Sec. 5. [256J.09] [APPLYING FOR ASSISTANCE.] 16.33 Subdivision 1. [WHERE TO APPLY.] A person must apply for 16.34 assistance at the county agency in the county where that person 16.35 lives. 16.36 Subd. 2. [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 17.1 INFORMATION.] A county agency must inform a person who inquires 17.2 about assistance about eligibility requirements for assistance 17.3 and how to apply for assistance, including diversionary 17.4 assistance and emergency assistance. A county agency must offer 17.5 the person brochures developed or approved by the commissioner 17.6 that describe how to apply for assistance. 17.7 Subd. 3. [SUBMITTING THE APPLICATION FORM.] A county 17.8 agency must offer, in person or by mail, the application forms 17.9 prescribed by the commissioner as soon as a person makes a 17.10 written or oral inquiry. At that time, the county agency must 17.11 inform the person that assistance begins with the date the 17.12 signed application is received by the county agency or the date 17.13 all eligibility criteria are met, whichever is later. The 17.14 county agency must inform the applicant that any delay in 17.15 submitting the application will reduce the amount of assistance 17.16 paid for the month of application. A county agency must inform 17.17 a person that the person may submit the application before an 17.18 interview appointment. To apply for assistance, a person must 17.19 submit a signed application to the county agency. Upon receipt 17.20 of a signed application, the county agency must stamp the date 17.21 of receipt on the face of the application. The county agency 17.22 must process the application within the time period required 17.23 under subdivision 5. An applicant may withdraw the application 17.24 at any time by giving written or oral notice to the county 17.25 agency. The county agency must issue a written notice 17.26 confirming the withdrawal. The notice must inform the applicant 17.27 of the county agency's understanding that the applicant has 17.28 withdrawn the application and no longer wants to pursue it. 17.29 When, within ten days of the date of the agency's notice, an 17.30 applicant informs a county agency, in writing, that the 17.31 applicant does not wish to withdraw the application, the county 17.32 agency must reinstate the application and finish processing the 17.33 application. 17.34 Subd. 4. [VERIFICATION OF INFORMATION ON APPLICATION.] A 17.35 county agency must verify information provided by an applicant 17.36 as required in section 256J.32. 18.1 Subd. 5. [PROCESSING APPLICATIONS.] Upon receiving an 18.2 application, a county agency must determine the applicant's 18.3 eligibility, approve or deny the application, inform the 18.4 applicant of its decision according to the notice provisions in 18.5 section 256J.31, and, if eligible issue, the assistance payment 18.6 to the applicant. When a county agency is unable to process an 18.7 application within 30 days, the county agency must inform the 18.8 applicant of the reason for the delay in writing. When an 18.9 applicant establishes the inability to provide required 18.10 verifications within the 30-day processing period, the county 18.11 agency may not use the expiration of that period as the basis 18.12 for denial. 18.13 Subd. 6. [INVALID REASON FOR DELAY.] A county agency must 18.14 not delay a decision on eligibility or delay issuing the 18.15 assistance payment except to establish state residence by: 18.16 (1) treating the 30-day processing period as a waiting 18.17 period; 18.18 (2) delaying approval or issuance of the assistance payment 18.19 pending the decision of the county board; or 18.20 (3) awaiting the result of a referral to a county agency in 18.21 another county when the county receiving the application does 18.22 not believe it is the county of financial responsibility. 18.23 Subd. 7. [CHANGES IN RESIDENCE DURING APPLICATION.] The 18.24 requirements in subdivisions 5 and 6 apply without regard to the 18.25 length of time that an applicant remains, or intends to remain, 18.26 a resident of the county in which the application is made. When 18.27 an applicant leaves the county where application was made but 18.28 remains in the state, section 256J.75 applies and the county 18.29 agency may request additional information from the applicant 18.30 about changes in circumstances related to the move. 18.31 Subd. 8. [ADDITIONAL APPLICATIONS.] Until a county agency 18.32 issues notice of approval or denial, additional applications 18.33 submitted by an applicant are void. However, an application for 18.34 monthly assistance and an application for emergency assistance 18.35 or emergency general assistance may exist concurrently. More 18.36 than one application for monthly assistance, emergency 19.1 assistance, or emergency general assistance may exist 19.2 concurrently when the county agency decisions on one or more 19.3 earlier applications have been appealed to the commissioner, and 19.4 the applicant asserts that a change in circumstances has 19.5 occurred that would allow eligibility. A county agency must 19.6 require additional application forms or supplemental forms as 19.7 prescribed by the commissioner when a payee's name changes, or 19.8 when a caregiver requests the addition of another person to the 19.9 assistance unit. 19.10 Subd. 9. [ADDENDUM TO AN EXISTING APPLICATION.] An 19.11 addendum to an existing application must be used to add persons 19.12 to an assistance unit regardless of whether the persons being 19.13 added are required to be in the assistance unit. When a person 19.14 is added by addendum to an assistance unit, eligibility for that 19.15 person begins on the first of the month the addendum was filed 19.16 except as provided in section 256J.74, subdivision 2, clause (1). 19.17 Subd. 10. [APPLICANTS WHO DO NOT MEET ELIGIBILITY 19.18 REQUIREMENTS FOR MFIP-S.] When an applicant is not eligible for 19.19 MFIP-S because the applicant does not meet eligibility 19.20 requirements, the county agency must determine whether the 19.21 applicant is eligible for food stamps, medical assistance, 19.22 diversionary assistance, or has a need for emergency assistance 19.23 when the applicant meets the eligibility requirements for those 19.24 programs. 19.25 Sec. 6. [256J.10] [MFIP-S ELIGIBILITY REQUIREMENTS.] 19.26 To be eligible for MFIP-S, applicants must meet the general 19.27 eligibility requirements in sections 256J.11 to 256J.15, the 19.28 property limitations in section 256J.20, and the income 19.29 limitations in section 256J.21. 19.30 Sec. 7. [256J.11] [CITIZENSHIP.] 19.31 Subdivision 1. [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To 19.32 be eligible for AFDC or MFIP-S, whichever is in effect, a member 19.33 of the assistance unit must be a citizen of the United States, a 19.34 qualified noncitizen as defined in section 256J.08, or a 19.35 noncitizen who is otherwise residing lawfully in the United 19.36 States. 20.1 (b) A qualified noncitizen who entered the United States on 20.2 or after August 22, 1996, is eligible for MFIP-S. However, TANF 20.3 dollars cannot be used to fund the MFIP-S benefits for an 20.4 individual under this paragraph for a period of five years after 20.5 the date of entry unless the qualified noncitizen meets one of 20.6 the following criteria: 20.7 (1) was admitted to the United States as a refugee under 20.8 United States Code, title 8, section 1157; 20.9 (2) was granted asylum under United States Code, title 8, 20.10 section 1158; 20.11 (3) was granted withholding of deportation under the United 20.12 States Code, title 8, section 1253(h); 20.13 (4) is a veteran of the United States Armed Forces with an 20.14 honorable discharge for a reason other than noncitizen status, 20.15 or is a spouse or unmarried minor dependent child of the same; 20.16 or 20.17 (5) is an individual on active duty in the United States 20.18 Armed Forces, other than for training, or is a spouse or 20.19 unmarried minor dependent child of the same. 20.20 (c) A person who is not a qualified noncitizen but who is 20.21 otherwise residing lawfully in the United States is eligible for 20.22 MFIP-S. However, TANF dollars cannot be used to fund the MFIP-S 20.23 benefits for an individual under this paragraph. 20.24 (d) For purposes of this subdivision, a nonimmigrant in one 20.25 or more of the classes listed in United States Code, title 8, 20.26 section 1101(a)(15), or an undocumented immigrant who resides in 20.27 the United States without the approval or acquiescence of the 20.28 Immigration and Naturalization Service, is not eligible for 20.29 MFIP-S. 20.30 Subd. 2. [NONCITIZENS INELIGIBLE FOR MFIP-S FOOD PORTION.] 20.31 Noncitizens who do not meet one of the exemptions in section 412 20.32 of the Personal Responsibility and Work Opportunity 20.33 Reconciliation Act of 1996, and who were residents of Minnesota 20.34 on March 1, 1997, are eligible for the food portion of MFIP-S. 20.35 However, federal food stamp dollars cannot be used to fund the 20.36 food portion of MFIP-S benefits for an individual under this 21.1 subdivision. 21.2 Subd. 3. [BENEFITS FUNDED WITH STATE MONEY.] Legal adult 21.3 noncitizens whose benefits are funded entirely with state money 21.4 must, as a condition of eligibility: 21.5 (1) be enrolled in a literacy class, English as a second 21.6 language class, or a citizen class; 21.7 (2) be applying for admission to a literacy class, English 21.8 as a second language class, and is on a waiting list; 21.9 (3) be in the process of applying for a waiver from the 21.10 Immigration and Naturalization Service of the English language 21.11 or civics requirements of the citizenship test; 21.12 (4) have submitted an application for citizenship to the 21.13 Immigration and Naturalization Service and is waiting for a 21.14 testing date or a subsequent swearing in ceremony; or 21.15 (5) have been denied citizenship due to a failure to pass 21.16 the test after two attempts or because of an inability to 21.17 understand the rights and responsibilities of becoming a United 21.18 States citizen, as documented by the Immigration and 21.19 Naturalization Service or the county. 21.20 Sec. 8. [256J.12] [MINNESOTA RESIDENCE.] 21.21 Subdivision 1. [SIMPLE RESIDENCY.] To be eligible for AFDC 21.22 or MFIP-S, whichever is in effect, a family must have 21.23 established residency in this state which means the family is 21.24 present in the state and intends to remain here. 21.25 Subd. 1a. [30-DAY RESIDENCY REQUIREMENT.] A family is 21.26 considered to have established residency in this state only when 21.27 a child or caregiver has resided in this state for at least 30 21.28 days with the intention of making a permanent home here and not 21.29 for any temporary purpose. Notwithstanding section 256G.03, 21.30 time spent in a shelter for battered women shall count toward 21.31 satisfying the 30 day residency requirement. 21.32 Subd. 2. [HARDSHIP EXCEPTION.] (a) A county shall waive 21.33 the 30-day residency requirement where unusual hardship would 21.34 result from denial of assistance. 21.35 (b) For purposes of this section, unusual hardship means a 21.36 family: 22.1 (1) is without alternative shelter; or 22.2 (2) is without available resources for food. 22.3 (c) For purposes of this subdivision, the following 22.4 definitions apply (1) "metropolitan statistical area" is as 22.5 defined by the U.S. Census Bureau; (2) "alternative shelter" 22.6 includes any shelter that is located within the metropolitan 22.7 statistical area containing the county and for which the family 22.8 is eligible, provided the family does not have to travel more 22.9 than 20 miles to reach the shelter and has access to 22.10 transportation to the shelter. Clause (2) does not apply to 22.11 counties in the Minneapolis-St. Paul metropolitan statistical 22.12 area. 22.13 Subd. 3. [PAYMENT PLAN FOR NEW RESIDENTS.] Assistance paid 22.14 to an eligible family in which all members have resided in this 22.15 state for fewer than 12 consecutive calendar months shall be at 22.16 the standard and in the form specified in section 256J.43. 22.17 Subd. 4. [SEVERABILITY CLAUSE.] If any subdivision in this 22.18 section is enjoined from implementation or found 22.19 unconstitutional by any court of competent jurisdiction, the 22.20 remaining subdivisions shall remain valid and shall be given 22.21 full effect. 22.22 Sec. 9. [256J.13] [MINOR CHILD IN ASSISTANCE UNIT; 22.23 PHYSICAL PRESENCE.] 22.24 Subdivision 1. [MINOR CHILD OR PREGNANT WOMAN.] The 22.25 assistance unit must include at least one minor child or a 22.26 pregnant woman. If a minor child is a recipient of Supplemental 22.27 Security Income or Minnesota supplemental aid, the assistance 22.28 unit is eligible for MFIP-S, but the needs of the minor child 22.29 receiving Supplemental Security Income or Minnesota supplemental 22.30 aid must not be taken into account when the county agency 22.31 determines the amount of assistance to be paid to the assistance 22.32 unit. 22.33 Subd. 2. [PHYSICAL PRESENCE.] A minor child and a 22.34 caregiver must live together except as provided in the following 22.35 paragraphs: 22.36 (a) The physical presence requirement is met when a minor 23.1 child is required to live away from the caregiver's home to meet 23.2 the need for educational curricula that cannot be met by, but is 23.3 approved by, the local public school district, the home is 23.4 maintained for the minor child's return during periodic school 23.5 vacations, and the caregiver continues to maintain 23.6 responsibility for the support and care of the minor child. 23.7 (b) The physical presence requirement is met when a 23.8 caregiver or minor child is away from the home due to illness, 23.9 hospitalization, vacation, incarceration, or other short-term 23.10 absences, when the home is maintained for the return of the 23.11 absent family member, the absence is not expected to last more 23.12 than 30 days beyond the month of departure, and the conditions 23.13 of clause (1), (2), or (3) apply: 23.14 (1) when the minor child and caregiver lived together 23.15 immediately prior to the absence, the caregiver continues to 23.16 maintain responsibility for the support and care of the minor 23.17 child, and the absence is reported at the time of application; 23.18 (2) when the pregnant mother is hospitalized or out of the 23.19 home due to the pregnancy; or 23.20 (3) when the newborn child and mother are hospitalized at 23.21 the time of birth. 23.22 (c) The absence of a caregiver or minor child does not 23.23 affect eligibility for the month of departure when the caregiver 23.24 or minor child received assistance for that month and lived 23.25 together immediately prior to the absence. Eligibility also 23.26 exists in the following month when the absence ends on or before 23.27 the tenth day of that month. 23.28 Sec. 10. [256J.14] [ELIGIBILITY FOR PARENTING OR PREGNANT 23.29 MINORS.] 23.30 Subdivision 1. [DEFINITIONS.] The definitions in this 23.31 subdivision only apply to this section. 23.32 (a) "Household of a parent, legal guardian, or other adult 23.33 relative" means the place of residence of: 23.34 (i) a natural or adoptive parent; 23.35 (ii) a legal guardian according to appointment or 23.36 acceptance under section 260.242, 525.615, or 525.6165, and 24.1 related laws; or 24.2 (iii) a relative caregiver. 24.3 (b) "Adult-supervised supportive living arrangement" means 24.4 a private family setting which assumes responsibility for the 24.5 care and control of the minor parent and minor child, or other 24.6 living arrangement, not including a public institution, licensed 24.7 by the commissioner of human services which ensures that the 24.8 minor parent receives adult supervision and supportive services, 24.9 such as counseling, guidance, independent living skills 24.10 training, or supervision. 24.11 Subd. 2. [RESTRICTIONS ON PLACE OF RESIDENCE.] A minor 24.12 parent and the minor child who is in the care of the minor 24.13 parent must reside in the household of a parent, legal guardian, 24.14 or other appropriate adult relative, or in an adult-supervised 24.15 supportive living arrangement in order to receive MFIP-S unless: 24.16 (1) the minor parent has no living parent or legal guardian 24.17 or other appropriate adult relative whose whereabouts is known; 24.18 (2) no living parent or legal guardian of the minor parent 24.19 or other appropriate adult relative allows the minor parent to 24.20 live in the parent's or legal guardian's home; 24.21 (3) the minor parent lived apart from the minor parent's 24.22 own parent, legal guardian, or other appropriate adult relative 24.23 for a period of at least one year before either the birth of the 24.24 minor child or the minor parent's application for MFIP-S; or 24.25 (4) the physical or emotional health or safety of the minor 24.26 parent or minor child would be jeopardized if the minor parent 24.27 and the minor child resided in the same residence with the minor 24.28 parent's parent, legal guardian, or other appropriate adult 24.29 relative. 24.30 Subd. 2a. [LIVING EXPENSES.] If the minor parent and the 24.31 child who is in the care of the minor parent are residing in a 24.32 household described in subdivision 1, paragraph (a), and the 24.33 noncustodial parent is also a minor, then the noncustodial 24.34 parent or those responsible for the noncustodial parent must pay 24.35 half of the living expenses of the child and the custodial minor 24.36 parent. 25.1 Subd. 3. [NOTICE TO MINOR APPLICANTS REQUIRED.] Minor 25.2 applicants must be informed orally and in writing about the 25.3 eligibility requirements and their rights and obligations under 25.4 the MFIP-S program. The county must advise the minor of the 25.5 possible exemptions and specifically ask whether one or more of 25.6 these exemptions is applicable. If the minor alleges one or 25.7 more of these exemptions, then the county must assist the minor 25.8 in obtaining the necessary verifications to determine whether or 25.9 not these exemptions apply. 25.10 Subd. 4. [REFERRAL TO CHILD PROTECTION SERVICES.] If the 25.11 county worker has reason to suspect that the physical or 25.12 emotional health or safety of the minor parent or minor child 25.13 would be jeopardized if they resided with the minor parent's 25.14 parent or legal guardian, then the county worker must make a 25.15 referral to child protective services to determine if 25.16 subdivision 2, clause (4), applies. A new determination by the 25.17 county worker is not necessary if one has been made within the 25.18 last six months, unless there has been a significant change in 25.19 circumstances which justifies a new referral and determination. 25.20 Subd. 5. [RESIDENTS IN SUPPORTIVE LIVING ARRANGEMENTS.] If 25.21 a minor parent is not living with a parent or legal guardian due 25.22 to subdivision 2, clause (1), (2), or (4), the minor parent must 25.23 reside, when possible, in a living arrangement that meets the 25.24 definition of an adult-supervised supportive living arrangement. 25.25 Subd. 6. [PROTECTIVE PAYMENT.] When a minor parent and 25.26 minor child live with another adult relative, or in an 25.27 adult-supervised supportive living arrangement, MFIP-S must be 25.28 paid, when possible, in the form of a protective payment on 25.29 behalf of the minor parent and minor child according to section 25.30 256J.39, subdivisions 2 to 4. 25.31 Sec. 11. [256J.15] [OTHER ELIGIBILITY CONDITIONS.] 25.32 Subdivision 1. [ELIGIBILITY WHEN THERE IS SHARED, COURT 25.33 ORDERED, AND OTHER CUSTODY ARRANGEMENTS.] The language of a 25.34 court order that specifies joint legal or physical custody does 25.35 not preclude a determination that a parent is absent. Absence 25.36 must be determined based on the actual facts of the absence 26.1 according to paragraphs (a) to (c). 26.2 (a) When a minor child spends time in each of the parents' 26.3 homes within a payment month, the minor child's home shall be 26.4 considered the home in which the majority of the minor child's 26.5 time is spent. When this time is exactly equal within a payment 26.6 month, or when the parents alternately live in the minor child's 26.7 home within a payment month, the minor child's home shall be 26.8 with that parent who is applying for MFIP, unless the minor 26.9 child's needs for the full payment month have already been met 26.10 through the provision of assistance to the other parent for that 26.11 month. 26.12 (b) When the physical custody of a minor child alternates 26.13 between parents for periods of at least one payment month, each 26.14 parent shall be eligible for assistance for any full payment 26.15 months the minor child's home is with that parent, except under 26.16 the conditions in paragraph (c). 26.17 (c) When a minor child's home is with one parent for the 26.18 majority of time in each month for at least nine consecutive 26.19 calendar months, and that minor child visits or vacations with 26.20 the other parent under section 256J.13, the minor child's home 26.21 remains with the first parent even when the stay with the second 26.22 parent is for all or the majority of the months in the period of 26.23 the temporary absence. 26.24 Subd. 2. [ELIGIBILITY DURING LABOR DISPUTES.] To receive 26.25 assistance under MFIP-S, a member of an assistance unit who is 26.26 on strike must have been an MFIP-S participant on the day before 26.27 the strike, or have been eligible for MFIP-S on the day before 26.28 the strike. 26.29 The county agency must count the striker's prestrike 26.30 earnings as current earnings. When a member of an assistance 26.31 unit who is not in the bargaining unit that voted for the strike 26.32 does not cross the picket line for fear of personal injury, the 26.33 assistance unit member is not a striker. Except for a member of 26.34 an assistance unit who is not in the bargaining unit that voted 26.35 for the strike and who does not cross the picket line for fear 26.36 of personal injury, a significant change cannot be invoked as a 27.1 result of a labor dispute. 27.2 Sec. 12. [256J.20] [PROPERTY LIMITATIONS.] 27.3 Subdivision 1. [PROPERTY OWNERSHIP PROVISIONS.] (a) The 27.4 county agency must apply paragraphs (b) to (e) to real and 27.5 personal property. The county agency must use the equity value 27.6 of legally available real and personal property, except property 27.7 excluded in subdivisions 2 and 3, to determine whether an 27.8 applicant or participant is eligible for assistance. 27.9 (b) When real or personal property is jointly owned by two 27.10 or more persons, the county agency shall assume that each person 27.11 owns an equal share, except that either person owns the entire 27.12 sum of a joint personal checking or savings account. When an 27.13 applicant or participant documents greater or lesser ownership, 27.14 the county agency must use that greater or lesser share to 27.15 determine the equity value held by the applicant or 27.16 participant. Other types of ownership must be evaluated 27.17 according to law. 27.18 (c) Real or personal property owned by the applicant or 27.19 participant must be presumed legally available to the applicant 27.20 or participant unless the applicant or participant documents 27.21 that the property is not legally available to the applicant or 27.22 participant. When real or personal property is not legally 27.23 available, its equity value must not be applied against the 27.24 limits of subdivisions 2 and 3. 27.25 (d) An applicant must disclose whether the applicant has 27.26 transferred real or personal property valued in excess of the 27.27 property limits in subdivisions 2 and 3 for which reasonable 27.28 compensation was not received within one year prior to 27.29 application. A participant must disclose all transfers of 27.30 property valued in excess of these limits, according to the 27.31 reporting requirements in section 256J.30, subdivision 9. When 27.32 a transfer of real or personal property without reasonable 27.33 compensation has occurred: 27.34 (1) the person who transferred the property must provide 27.35 the property's description, information needed to determine the 27.36 property's equity value, the names of the persons who received 28.1 the property, and the circumstances of and reasons for the 28.2 transfer; and 28.3 (2) when the transferred property can be reasonably 28.4 reacquired, or when reasonable compensation can be secured, the 28.5 property is presumed legally available to the applicant or 28.6 participant. 28.7 (e) A participant may build the equity value of real and 28.8 personal property to the limits in subdivisions 2 and 3. 28.9 Subd. 2. [REAL PROPERTY LIMITATIONS.] Ownership of real 28.10 property by an applicant or participant is subject to the 28.11 limitations in paragraphs (a) and (b). 28.12 (a) A county agency shall exclude the homestead of an 28.13 applicant or participant according to clauses (1) to (4): 28.14 (1) an applicant or participant who is purchasing real 28.15 property through a contract for deed and using that property as 28.16 a home is considered the owner of real property; 28.17 (2) the total amount of land that can be excluded under 28.18 this subdivision is limited to surrounding property which is not 28.19 separated from the home by intervening property owned by 28.20 others. Additional property must be assessed as to its legal 28.21 and actual availability according to subdivision 1; 28.22 (3) when real property that has been used as a home by a 28.23 participant is sold, the county agency must treat the cash 28.24 proceeds from the sale as excluded property for six months when 28.25 the participant intends to reinvest the proceeds in another home 28.26 and maintains those proceeds, unused for other purposes, in a 28.27 separate account; and 28.28 (4) when the homestead is jointly owned, but the client 28.29 does not reside in it because of legal separation, pending 28.30 divorce; or battering or abuse by the spouse or partner, the 28.31 homestead is excluded. 28.32 (b) The equity value of real property that is not excluded 28.33 under paragraph (a) and which is legally available must be 28.34 applied against the limits in subdivision 3. When the equity 28.35 value of the real property exceeds the limits under subdivision 28.36 3, the applicant or participant may qualify to receive 29.1 assistance when the applicant or participant continues to make a 29.2 good faith effort to sell the property and signs a legally 29.3 binding agreement to repay the amount of assistance, less child 29.4 support collected by the agency. Repayment must be made within 29.5 five working days after the property is sold. Repayment to the 29.6 county agency must be in the amount of assistance received or 29.7 the proceeds of the sale, whichever is less. 29.8 Subd. 3. [OTHER PROPERTY LIMITATIONS.] To be eligible for 29.9 MFIP-S, the equity value of all nonexcluded real and personal 29.10 property of the assistance unit must not exceed $2,000 for 29.11 applicant families and $5,000 for ongoing recipient families. 29.12 The value of clauses (1) to (17) must be excluded when 29.13 determining the equity value of real and personal property: 29.14 (1) for each working member of the assistance unit, a 29.15 licensed automobile, truck, or van each with a fair market value 29.16 no greater than the amount excluded under the food stamp 29.17 program, provided that each assistance unit is allowed to 29.18 exclude at least one vehicle subject to the value limit in this 29.19 clause. The value of special equipment for a handicapped member 29.20 of the assistance unit is excluded. The fair market value of a 29.21 vehicle is the value listed in the N.A.D.A. Official Used Car 29.22 Guide, Midwest Edition, for newer model cars. Amounts in excess 29.23 of the exclusion are counted against the property limits 29.24 specified in this subdivision; 29.25 (2) the value of life insurance policies for members of the 29.26 assistance unit; 29.27 (3) one burial plot per member of an assistance unit; 29.28 (4) the value of personal property needed to produce earned 29.29 income, including tools, implements, farm animals, inventory, 29.30 business loans, business checking and savings accounts used 29.31 exclusively for the operation of a self-employment business, and 29.32 any motor vehicles if the vehicles are essential for the 29.33 self-employment business; 29.34 (5) the value of personal property not otherwise specified 29.35 which is commonly used by household members in day-to-day living 29.36 such as clothing, necessary household furniture, equipment, and 30.1 other basic maintenance items essential for daily living; 30.2 (6) the value of real and personal property owned by a 30.3 recipient of Social Security Income or Minnesota supplemental 30.4 aid; 30.5 (7) the value of corrective payments, but only for the 30.6 month in which the payment is received and for the following 30.7 month; 30.8 (8) a mobile home used by an applicant or participant as 30.9 the applicant's or participant's home; 30.10 (9) money in a separate escrow account that is needed to 30.11 pay real estate taxes or insurance and that is used for this 30.12 purpose; 30.13 (10) money held in escrow to cover employee FICA, employee 30.14 tax withholding, sales tax withholding, employee worker 30.15 compensation, business insurance, property rental, property 30.16 taxes, and other costs that are paid at least annually, but less 30.17 often than monthly; 30.18 (11) monthly assistance and emergency assistance payments 30.19 for the current month's needs; 30.20 (12) the value of school loans, grants, or scholarships for 30.21 the period they are intended to cover; 30.22 (13) payments listed in section 256J.21, subdivision 2, 30.23 clause (9), which are held in escrow for a period not to exceed 30.24 three months to replace or repair personal or real property; 30.25 (14) income received in a budget month through the end of 30.26 the budget month; 30.27 (15) savings of a minor child or a minor parent that are 30.28 set aside in a separate account designated specifically for 30.29 future education or employment costs; 30.30 (16) the earned income tax credit and Minnesota working 30.31 family credit in the month received the following month; 30.32 (17) payments excluded under federal law as long as those 30.33 payments are held in a separate account from any nonexcluded 30.34 funds; and 30.35 (18) money received by a participant of the corps to career 30.36 program under section 84.0887, subdivision 2, paragraph (b), as 31.1 a postservice benefit under the federal Americorps Act. 31.2 Sec. 13. [256J.21] [INCOME LIMITATIONS.] 31.3 Subdivision 1. [INCOME INCLUSIONS.] To determine MFIP-S 31.4 eligibility, the county agency must evaluate income received by 31.5 members of an assistance unit, or by other persons whose income 31.6 is considered available to the assistance unit. All payments, 31.7 unless specifically excluded in subdivision 2, must be counted 31.8 as income. 31.9 Subd. 2. [INCOME EXCLUSIONS.] (a) The following must be 31.10 excluded in determining a family's available income: 31.11 (1) payments for basic care, difficulty of care, and 31.12 clothing allowances received for providing family foster care to 31.13 children or adults under Minnesota Rules, parts 9545.0010 to 31.14 9545.0260 and 9555.5050 to 9555.6265, and payments received and 31.15 used for care and maintenance of a third-party beneficiary who 31.16 is not a household member; 31.17 (2) reimbursements for employment training received through 31.18 the Job Training Partnership Act, United States Code, title 29, 31.19 chapter 19, sections 1501 to 1792b; 31.20 (3) reimbursement for out-of-pocket expenses incurred while 31.21 performing volunteer services, jury duty, or employment; 31.22 (4) all educational assistance, except the county agency 31.23 must count graduate student teaching assistantships, 31.24 fellowships, and other similar paid work as earned income and, 31.25 after allowing deductions for any unmet and necessary 31.26 educational expenses, must count as unearned income all 31.27 scholarships or grants awarded to graduate students that do not 31.28 require teaching or research; 31.29 (5) loans, regardless of purpose, from public or private 31.30 lending institutions, governmental lending institutions, or 31.31 governmental agencies; 31.32 (6) loans from private individuals, regardless of purpose, 31.33 provided an applicant or participant documents that the lender 31.34 expects repayment; 31.35 (7) state and federal income tax refunds; 31.36 (8) state and federal earned income credits; 32.1 (9) funds received for reimbursement, replacement, or 32.2 rebate of personal or real property when these payments are made 32.3 by public agencies, awarded by a court, solicited through public 32.4 appeal, or made as a grant by a federal agency, state or local 32.5 government, or disaster assistance organizations, subsequent to 32.6 a presidential declaration of disaster; 32.7 (10) the portion of an insurance settlement that is used to 32.8 pay medical, funeral, and burial expenses, or to repair or 32.9 replace insured property; 32.10 (11) reimbursements for medical expenses that cannot be 32.11 paid by Medical Assistance; 32.12 (12) payments by a vocational rehabilitation program 32.13 administered by the state under chapter 268A, except those 32.14 payments that are for current living expenses; 32.15 (13) in-kind income, including any payments directly made 32.16 by a third party to a provider of goods and services; 32.17 (14) assistance payments to correct underpayments, but only 32.18 for the month in which the payment is received; 32.19 (15) emergency assistance payments; 32.20 (16) funeral and cemetery payments as provided by section 32.21 256.935; 32.22 (17) nonrecurring cash gifts of $30 or less, not exceeding 32.23 $30 per participant in a calendar month; 32.24 (18) any form of energy assistance payment made through 32.25 LIHEAP, payments made directly to energy providers by other 32.26 public and private agencies, and any form of credit or rebate 32.27 payment issued by energy providers; 32.28 (19) Supplemental Security Income, including retroactive 32.29 payments; 32.30 (20) Minnesota supplemental aid, including retroactive 32.31 payments; 32.32 (21) proceeds from the sale of real or personal property; 32.33 (22) adoption assistance payments under section 259.67; 32.34 (23) state-funded family subsidy program payments made 32.35 under section 252.32 to help families care for children with 32.36 mental retardation or related conditions; 33.1 (24) interest payments and dividends from property that is 33.2 not excluded from and that does not exceed the asset limit; 33.3 (25) rent rebates; 33.4 (26) income earned by a minor caregiver or minor child who 33.5 has not attained the age of 20 and is at least a half-time 33.6 student; 33.7 (27) MFIP-S child care payments under section 119B.05; 33.8 (28) all other payments made through MFIP-S to support a 33.9 caregiver's pursuit of greater self-support; 33.10 (29) income a participant receives related to shared living 33.11 expenses; 33.12 (30) reverse mortgages; 33.13 (31) benefits provided by the Child Nutrition Act of 1966, 33.14 United States Code, title 42, chapter 13A, sections 1771 to 33.15 1790; 33.16 (32) benefits provided by the women, infants, and children 33.17 (WIC) nutrition program, United States Code, title 42, chapter 33.18 13A, section 1786; 33.19 (33) benefits from the National School Lunch Act, United 33.20 States Code, title 42, chapter 13, sections 1751 to 1769e; 33.21 (34) relocation assistance for displaced persons under the 33.22 Uniform Relocation Assistance and Real Property Acquisition 33.23 Policies Act of 1970, United States Code, title 42, chapter 61, 33.24 subchapter II, section 4636, or the National Housing Act, United 33.25 States Code, title 12, chapter 13, sections 1701 to 1750jj; 33.26 (35) benefits from the Trade Act of 1974, United States 33.27 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 33.28 (36) war reparations payments to Japanese Americans and 33.29 Aleuts under United States Code, title 50, sections 1989 to 33.30 1989d; 33.31 (37) payments to veterans or their dependents as a result 33.32 of legal settlements regarding Agent Orange or other chemical 33.33 exposure under Public Law Number 101-239, section 10405, 33.34 paragraph (a)(2)(E); 33.35 (38) security utility deposit refunds; 33.36 (39) American Indian tribal land settlements excluded under 34.1 Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 34.2 Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 34.3 reservations and payments to members of the White Earth Band, 34.4 under United States Code, title 25, chapter 9, section 331, and 34.5 chapter 16, section 1407; and 34.6 (40) income that is otherwise specifically excluded from 34.7 MFIP-S consideration in federal law, state law, or federal 34.8 regulation. 34.9 (b) When determining income of members of the family who do 34.10 not elect to be included in the assistance unit, the county 34.11 agency shall count the remaining income after disregarding: 34.12 (1) all income of the minor parent's parent when 34.13 determining the grant for the minor parent in households that 34.14 include a minor parent living with a parent on MFIP-S with other 34.15 dependent children. The standard of need for the minor parent 34.16 is equal to the standard of need available if the minor parent's 34.17 parent was not a recipient of MFIP-S; and 34.18 (2) income of the minor parent's parent equal to 200 34.19 percent of the federal poverty guideline for a family size not 34.20 including the minor parent and the minor parent's child in 34.21 households that include a minor parent living with a parent not 34.22 on MFIP-S when determining the grant for the minor parent. The 34.23 remainder of income is deemed under Code of Federal Regulations, 34.24 title 45, section 233.20(a)(3)(xviii) in effect on August 21, 34.25 1996. 34.26 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 34.27 determine initial eligibility by considering all earned and 34.28 unearned income that is not excluded under subdivision 2. To be 34.29 eligible for MFIP-S, the assistance unit's countable income 34.30 minus the disregards in paragraphs (a) and (b) must be below the 34.31 transitional standard of assistance according to section 256J.24 34.32 for that size assistance unit. 34.33 (a) The initial eligibility determination must disregard 34.34 the following items: 34.35 (1) the employment disregard is 18 percent of the gross 34.36 earned income whether or not the member is working full time or 35.1 part time; 35.2 (2) dependent care costs must be deducted from gross earned 35.3 income for the actual amount paid for dependent care up to the 35.4 maximum disregard allowed under this chapter and chapter 119B; 35.5 and 35.6 (3) all payments made according to a court order for the 35.7 support of children not living in the assistance unit's 35.8 household shall be disregarded from the income of the person 35.9 with the legal obligation to pay support, provided that, if 35.10 there has been a change in the financial circumstances of the 35.11 person with the legal obligation to pay support since the 35.12 support order was entered, the person with the legal obligation 35.13 to pay support has petitioned for a modification of the support 35.14 order. 35.15 (b) Notwithstanding paragraph (a), when determining initial 35.16 eligibility for applicants who have received AFDC, family 35.17 general assistance, MFIP, MFIP-R, work first, or MFIP-S in this 35.18 state within four months of the most recent application for 35.19 MFIP-S, the employment disregard is 35 percent of the gross 35.20 earned income. 35.21 After initial eligibility is established, the assistance 35.22 payment calculation is based on the monthly income test. 35.23 Subd. 4. [MONTHLY INCOME TEST AND DETERMINATION OF 35.24 ASSISTANCE PAYMENT.] The county agency shall determine ongoing 35.25 eligibility and the assistance payment amount according to the 35.26 monthly income test. To be eligible for MFIP-S, the result of 35.27 the computations in paragraphs (a) to (d) must be at least one 35.28 dollar. 35.29 (a) Apply a 35 percent income disregard to gross earnings 35.30 and subtract this amount from the family wage level. If the 35.31 difference is equal to or greater than the transitional 35.32 standard, the assistance payment is equal to the transitional 35.33 standard. If the difference is less than the transitional 35.34 standard, the assistance payment is equal to the difference. 35.35 The employment disregard in this paragraph must be deducted 35.36 every month there is earned income. 36.1 (b) All payments made according to a court order for the 36.2 support of children not living in the assistance unit's 36.3 household shall be disregarded from the income of the person 36.4 with the legal obligation to pay support, provided that, if 36.5 there has been a change in the financial circumstances of the 36.6 person with the legal obligation to pay support since the 36.7 support order was entered, the person with the legal obligation 36.8 to pay support has petitioned for a modification of the support 36.9 order. 36.10 (c) Subtract unearned income dollar for dollar from the 36.11 transitional standard to determine the assistance payment amount. 36.12 (d) When income is both earned and unearned, the amount of 36.13 the assistance payment must be determined by first treating 36.14 gross earned income as specified in paragraph (a). After 36.15 determining the amount of the assistance payment under paragraph 36.16 (a), unearned income must be subtracted from that amount dollar 36.17 for dollar to determine the assistance payment amount. 36.18 (e) When the monthly income is greater than the 36.19 transitional or family wage level standard after applicable 36.20 deductions and the income will only exceed the standard for one 36.21 month, the county agency must suspend the assistance payment for 36.22 the payment month. 36.23 Subd. 5. [DISTRIBUTION OF INCOME.] The income of all 36.24 members of the assistance unit must be counted. Income may also 36.25 be deemed from ineligible persons to the assistance unit. 36.26 Income must be attributed to the person who earns it or to the 36.27 assistance unit according to paragraphs (a) to (c). 36.28 (a) Funds distributed from a trust, whether from the 36.29 principal holdings or sale of trust property or from the 36.30 interest and other earnings of the trust holdings, must be 36.31 considered income when the income is legally available to an 36.32 applicant or participant. Trusts are presumed legally available 36.33 unless an applicant or participant can document that the trust 36.34 is not legally available. 36.35 (b) Income from jointly owned property must be divided 36.36 equally among property owners unless the terms of ownership 37.1 provide for a different distribution. 37.2 (c) Deductions are not allowed from the gross income of a 37.3 financially responsible household member or by the members of an 37.4 assistance unit to meet a current or prior debt. 37.5 Sec. 14. [256J.24] [FAMILY COMPOSITION AND ASSISTANCE 37.6 STANDARDS.] 37.7 Subdivision 1. [MFIP-S ASSISTANCE UNIT.] An MFIP-S 37.8 assistance unit is either a group of individuals with at least 37.9 one minor child who live together whose needs, assets, and 37.10 income are considered together and who receive MFIP-S 37.11 assistance, or a pregnant woman who receives MFIP-S assistance. 37.12 Individuals identified in subdivision 2 must be included in the 37.13 MFIP-S assistance unit. Individuals identified in subdivision 3 37.14 must be excluded from the assistance unit. Individuals 37.15 identified in subdivision 4 may be included in the assistance 37.16 unit at their option. Individuals not included in the 37.17 assistance unit who are identified in section 256J.37, 37.18 subdivision 1 or 2, must have their income considered when 37.19 determining eligibility and benefits for an MFIP-S assistance 37.20 unit. All assistance unit members, whether mandatory or 37.21 elective, who live together and for whom one caregiver or two 37.22 caregivers apply must be included in a single assistance unit. 37.23 Subd. 2. [MANDATORY ASSISTANCE UNIT COMPOSITION.] When the 37.24 following individuals live together, they must be included in 37.25 the assistance unit: 37.26 (1) a minor child; 37.27 (2) the minor child's siblings, half-siblings, and 37.28 step-siblings; and 37.29 (3) the minor child's natural, adoptive parents, and 37.30 stepparents. 37.31 Subd. 3. [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 37.32 ASSISTANCE UNIT.] The following individuals must be excluded 37.33 from an assistance unit: 37.34 (1) individuals receiving Supplemental Security Income or 37.35 Minnesota supplemental aid; 37.36 (2) individuals living at home while performing 38.1 court-imposed, unpaid community service work due to a criminal 38.2 conviction; 38.3 (3) individuals disqualified from the food stamp program or 38.4 MFIP-S, until the disqualification ends; and 38.5 (4) children on whose behalf foster care payments under 38.6 title IV-E of the Social Security Act are made, except as 38.7 provided in section 256J.74, subdivision 2. 38.8 Subd. 4. [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 38.9 ASSISTANCE UNIT.] The minor child's eligible caregiver may 38.10 choose to be in the assistance unit, if the caregiver is not 38.11 required to be in the assistance unit under subdivision 2. If 38.12 the relative caregiver chooses to be in the assistance unit, 38.13 that person's spouse must also be in the unit. 38.14 Subd. 5. [MFIP-S TRANSITIONAL STANDARD.] The following 38.15 table represents the MFIP-S transitional standard table when all 38.16 members of the assistance unit are eligible for both food and 38.17 cash assistance. 38.18 Number of Eligible People Standard 38.19 1 $344 38.20 2 $596 38.21 3 $747 38.22 4 $884 38.23 5 $1,003 38.24 6 $1,140 38.25 7 $1,246 38.26 8 $1,373 38.27 9 $1,498 38.28 10 $1,618 38.29 over 10 add $118 per additional member. 38.30 The commissioner shall annually publish in the State 38.31 Register the transitional standard for an assistance unit size 1 38.32 to 10. 38.33 Subd. 6. [APPLICATION OF ASSISTANCE STANDARDS.] The 38.34 standards apply to the number of eligible persons in the 38.35 assistance unit. 38.36 Subd. 6a. [ASSISTANCE VENDOR PAID IF CHILD BORN TO 39.1 RECIPIENT.] If a woman receiving assistance as a caregiver of an 39.2 MFIP-S assistance unit delivers a child born at least ten months 39.3 after the woman begins receiving MFIP-S assistance, benefits 39.4 paid to the assistance unit under this section shall be vendor 39.5 paid for rent and utilities up to the amount of the MFIP-S 39.6 grant. The residual amount of the grant after vendor payment, 39.7 if any, shall be paid to the caregiver. 39.8 Subd. 7. [FAMILY WAGE LEVEL STANDARD.] The family wage 39.9 level standard is 109 percent of the transitional standard under 39.10 subdivision 5 and is the standard used when there is earned 39.11 income in the assistance unit. As specified in section 256J.21, 39.12 earned income is subtracted from the family wage level to 39.13 determine the amount of the assistance payment. Assistance 39.14 payments may not exceed the transitional standard for the 39.15 assistance unit. 39.16 Sec. 15. [256J.25] [RETURN OF UTILITY DEPOSIT.] 39.17 A county may require that assistance paid under MFIP-S in 39.18 the form of a utility deposit less any amount retained to 39.19 satisfy outstanding utility costs be returned to the county when 39.20 the person vacates the premises or be paid for the person's new 39.21 housing unit as a vendor payment. 39.22 Sec. 16. [256J.26] [PERSONS INELIGIBLE.] 39.23 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 39.24 an applicant has been convicted of a drug offense after July 1, 39.25 1997, the assistance unit is ineligible for AFDC or MFIP-S 39.26 benefits until five years after the applicant has completed 39.27 terms of the court-ordered sentence. This subdivision also 39.28 applies to persons who receive food stamps under section 115 of 39.29 the Personal Responsibility and Work Opportunity Reconciliation 39.30 Act of 1996. Persons subject to the limitations imposed by this 39.31 section who become eligible for assistance under this chapter 39.32 shall be subject to random drug testing as a condition of 39.33 continued eligibility and shall lose eligibility for benefits 39.34 beginning the month following any positive test result for an 39.35 illegal controlled substance. 39.36 (b) For the purposes of this subdivision, "drug offense" 40.1 means a conviction that occurred after July 1, 1997, of sections 40.2 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 40.3 means a conviction in another jurisdiction of the possession, 40.4 use, or distribution of a controlled substance, or conspiracy to 40.5 commit any of these offenses, if the offense occurred after July 40.6 1, 1997, and the conviction is a felony offense in that 40.7 jurisdiction, or in the case of New Jersey, a high misdemeanor. 40.8 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 40.9 condition of probation or parole or supervised release imposed 40.10 under federal law or the law of any state is ineligible to 40.11 receive AFDC or MFIP-S. 40.12 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 40.13 avoid prosecution, or custody, or confinement after conviction 40.14 for a crime that is a felony under the laws of the jurisdiction 40.15 from which the individual flees, or in the case of New Jersey, 40.16 is a high misdemeanor, is ineligible to receive AFDC or MFIP-S. 40.17 Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 40.18 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 40.19 individual who is convicted in federal or state court of having 40.20 made a fraudulent statement or representation with respect to 40.21 the place of residence of the individual in order to receive 40.22 assistance simultaneously from two or more states is ineligible 40.23 to receive AFDC or MFIP-S for ten years beginning on the date of 40.24 the conviction. 40.25 Sec. 17. [256J.28] [PROVISIONS RELATED SPECIFICALLY TO 40.26 FOOD STAMP ASSISTANCE.] 40.27 Subdivision 1. [EXPEDITED ISSUANCE OF FOOD STAMP 40.28 ASSISTANCE.] The following households are entitled to expedited 40.29 issuance of food stamp assistance: 40.30 (1) households with less than $150 in monthly gross income 40.31 provided their liquid assets do not exceed $100; 40.32 (2) migrant or seasonal farm worker households who are 40.33 destitute as defined in Code of Federal Regulations, title 7, 40.34 subtitle B, chapter 2, subchapter C, part 273, section 273.10, 40.35 paragraph (e)(3), provided their liquid assets do not exceed 40.36 $100; and 41.1 (3) eligible households whose combined monthly gross income 41.2 and liquid assets are less than the household's monthly rent or 41.3 mortgage and utilities. 41.4 The benefits issued through expedited issuance of food 41.5 stamp assistance shall not be paid in cash, and must be deducted 41.6 from the amount of the full monthly MFIP-S assistance payment 41.7 and a supplemental payment for the difference must be issued. 41.8 Subd. 2. [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 41.9 ASSISTANCE UNIT.] (a) For household members who purchase and 41.10 prepare food with the MFIP-S assistance unit but are not part of 41.11 the assistance unit, the county agency must determine a separate 41.12 food stamp benefit based on regulations agreed upon with the 41.13 United States department of agriculture. 41.14 (b) This subdivision does not apply to optional members who 41.15 have chosen not to be in the assistance unit. 41.16 (c) Fair hearing requirements for persons who receive food 41.17 stamps under this subdivision are governed by section 256.045, 41.18 and Code of Federal Regulations, title 7, subtitle B, chapter 41.19 II, part 273, section 273.15. 41.20 Subd. 3. [INCOME DISREGARD FOR CERTAIN PROGRAMS, FOOD 41.21 ASSISTANCE PORTION OF ASSISTANCE PAYMENT.] The portion of the 41.22 MFIP-S assistance payment that is designated by the commissioner 41.23 as the food assistance portion of the assistance payment must be 41.24 disregarded as income in the following programs: 41.25 (1) housing subsidy programs; 41.26 (2) low-income home energy assistance program; 41.27 (3) Supplemental Security Income, when determining interim 41.28 assistance amount; and 41.29 (4) other programs that do not count food stamps as income. 41.30 For the purposes of this subdivision, the food assistance 41.31 portion of the assistance payment means a predetermined portion 41.32 of the MFIP-S assistance payment that may be received in 41.33 point-of-purchase sites or as food stamps. The predetermined 41.34 portion of the assistance payment varies by family profile, 41.35 which is based on family size. 41.36 Sec. 18. [256J.30] [APPLICANT AND PARTICIPANT REQUIREMENTS 42.1 AND RESPONSIBILITIES.] 42.2 Subdivision 1. [APPLICANT REPORTING REQUIREMENTS.] An 42.3 applicant must provide information on an application form and 42.4 supplemental forms about the applicant's circumstances which 42.5 affect MFIP-S eligibility or the assistance payment. An 42.6 applicant must report changes identified in subdivision 9 while 42.7 the application is pending. When an applicant does not 42.8 accurately report information on an application, both an 42.9 overpayment and a referral for a fraud investigation may 42.10 result. When an applicant does not provide information or 42.11 documentation, the receipt of the assistance payment may be 42.12 delayed or the application may be denied depending on the type 42.13 of information required and its effect on eligibility. 42.14 Subd. 2. [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 42.15 applicant or participant must apply for and follow through with 42.16 appealing any denials of eligibility for benefits from other 42.17 programs for which the applicant or participant is potentially 42.18 eligible and which would, if received, offset assistance 42.19 payments. An applicant's or participant's failure to complete 42.20 application for these benefits without good cause results in 42.21 denial or termination of assistance. Good cause for failure to 42.22 apply for these benefits is allowed when circumstances beyond 42.23 the control of the applicant or participant prevent the 42.24 applicant or participant from making an application. 42.25 Subd. 3. [RESPONSIBILITY TO INQUIRE.] An applicant or 42.26 participant who does not know or is unsure whether a given 42.27 change in circumstances will affect the applicant's or 42.28 participant's MFIP-S eligibility or assistance payment must 42.29 contact the county agency for information. 42.30 Subd. 4. [PARTICIPANT'S COMPLETION OF RECERTIFICATION OF 42.31 ELIGIBILITY FORM.] A participant must complete forms prescribed 42.32 by the commissioner which are required for recertification of 42.33 eligibility according to section 256J.32, subdivision 6. 42.34 Subd. 5. [MONTHLY MFIP-S HOUSEHOLD REPORTS.] Each 42.35 assistance unit with a member who has earned income or a recent 42.36 work history, and each assistance unit that has income allocated 43.1 to it from a financially responsible person, must complete a 43.2 monthly MFIP-S household report form. "Recent work history" 43.3 means the individual received earned income in the report month 43.4 or any of the previous three calendar months even if the 43.5 earnings are excluded. To be complete, the MFIP-S household 43.6 report form must be signed and dated by the caregivers no 43.7 earlier than the last day of the reporting period. All 43.8 questions required to determine assistance payment eligibility 43.9 must be answered, and documentation of earned income must be 43.10 included. 43.11 Subd. 6. [SIX-MONTH MFIP-S HOUSEHOLD REPORT.] Assistance 43.12 units that are not required to report monthly under subdivision 43.13 5 must complete an MFIP-S household report form every six 43.14 months. To be complete, the MFIP-S household report form must 43.15 be signed and dated by the caregiver or caregivers no earlier 43.16 than the last day of the reporting period. All questions 43.17 required to determine assistance payment eligibility must be 43.18 answered and documentation of earned income must be included. 43.19 Subd. 7. [DUE DATE OF MFIP-S HOUSEHOLD REPORT.] An MFIP-S 43.20 household report form must be received by the county agency by 43.21 the eighth calendar day of the month following the reporting 43.22 period covered by the form. When the eighth calendar day of the 43.23 month falls on a weekend or holiday, the MFIP-S household report 43.24 form must be received by the county agency by the first working 43.25 day that follows the eighth calendar day. The county agency 43.26 must send a notice of termination because of a late or 43.27 incomplete MFIP-S household report form. 43.28 Subd. 8. [LATE MFIP-S HOUSEHOLD REPORT FORMS.] Paragraphs 43.29 (a) to (d) apply to the reporting requirements in subdivision 7. 43.30 (a) When a caregiver submits an incomplete MFIP-S household 43.31 report form before the last working day of the month on which a 43.32 ten-day notice of termination can be issued, the county agency 43.33 must return the incomplete form on or before the ten-day notice 43.34 deadline or any previously sent ten-day notice of termination is 43.35 invalid. 43.36 (b) When a complete MFIP-S household report form is not 44.1 received by a county agency before the last ten days of the 44.2 month in which the form is due, the county agency must send a 44.3 notice of proposed termination of assistance. When a caregiver 44.4 submits an incomplete form on or after the date a notice of 44.5 proposed termination has been sent, the termination is valid 44.6 unless the caregiver submits a complete form before the end of 44.7 the month. 44.8 (c) An assistance unit required to submit an MFIP-S 44.9 household report form is considered to have continued its 44.10 application for assistance if a complete MFIP-S household report 44.11 form is received within a calendar month after the month in 44.12 which assistance was received and assistance shall be paid for 44.13 the period beginning with the first day of the month in which 44.14 the report was due. 44.15 (d) A county agency must allow good cause exemptions from 44.16 the reporting requirements under subdivisions 5 and 6 when any 44.17 of the following factors cause a caregiver to fail to provide 44.18 the county agency with a completed MFIP-S household report form 44.19 before the end of the month in which the form is due: 44.20 (1) an employer delays completion of employment 44.21 verification; 44.22 (2) a county agency does not help a caregiver complete the 44.23 MFIP-S household report form when the caregiver asks for help; 44.24 (3) a caregiver does not receive an MFIP-S household report 44.25 form due to mistake on the part of the department or the county 44.26 agency or due to a reported change in address; 44.27 (4) a caregiver is ill, or physically or mentally 44.28 incapacitated; or 44.29 (5) some other circumstance occurs that a caregiver could 44.30 not avoid with reasonable care that prevents the caregiver from 44.31 providing a completed MFIP-S household report form before the 44.32 end of the month in which the form is due. 44.33 Subd. 9. [CHANGES THAT MUST BE REPORTED.] A caregiver must 44.34 report the changes or anticipated changes specified in clauses 44.35 (1) to (16) within ten days of the date they occur, within ten 44.36 days of the date the caregiver learns that the change will 45.1 occur, at the time of the periodic recertification of 45.2 eligibility under section 256J.32, subdivision 6, or within 45.3 eight calendar days of a reporting period as in subdivision 5 or 45.4 6, whichever occurs first. A caregiver must report other 45.5 changes at the time of the periodic recertification of 45.6 eligibility under section 256J.32, subdivision 6, or at the end 45.7 of a reporting period under subdivision 5 or 6, as applicable. 45.8 A caregiver must make these reports in writing or in person to 45.9 the county agency. When a county agency could have reduced or 45.10 terminated assistance for one or more payment months if a delay 45.11 in reporting a change specified under clauses (1) to (16) had 45.12 not occurred, the county agency must determine whether a timely 45.13 notice under section 256J.31, subdivision 4, could have been 45.14 issued on the day that the change occurred. When a timely 45.15 notice could have been issued, each month's overpayment 45.16 subsequent to that notice must be considered a client error 45.17 overpayment under section 256J.38. Changes in circumstances 45.18 which must be reported within ten days must also be reported on 45.19 the MFIP-S household report form for the reporting period in 45.20 which those changes occurred. Within ten days, a caregiver must 45.21 report: 45.22 (1) a change in initial employment; 45.23 (2) a change in initial receipt of unearned income; 45.24 (3) a recurring change in unearned income; 45.25 (4) a nonrecurring change of unearned income that exceeds 45.26 $30; 45.27 (5) the receipt of a lump sum; 45.28 (6) an increase in assets that may cause the assistance 45.29 unit to exceed asset limits; 45.30 (7) a change in the physical or mental status of an 45.31 incapacitated member of the assistance unit if the physical or 45.32 mental status is the basis of an exemption from the MFIP-S 45.33 employment and training services component; 45.34 (8) a change in employment status; 45.35 (9) a change in household composition, including births, 45.36 returns to and departures from the home of assistance unit 46.1 members and financially responsible persons, or a change in the 46.2 custody of a minor child; 46.3 (10) a change in health insurance coverage; 46.4 (11) the marriage or divorce of an assistance unit member; 46.5 (12) the death of a parent, minor child, or financially 46.6 responsible person; 46.7 (13) a change in address or living quarters of the 46.8 assistance unit; 46.9 (14) the sale, purchase, or other transfer of property; 46.10 (15) a change in school attendance of a custodial parent or 46.11 an employed child; and 46.12 (16) filing a lawsuit, a workers' compensation claim, or a 46.13 monetary claim against a third party. 46.14 Subd. 10. [COOPERATION WITH HEALTH CARE BENEFITS.] (a) The 46.15 caregiver of a minor child must cooperate with the county agency 46.16 to identify and provide information to assist the county agency 46.17 in pursuing third-party liability for medical services. 46.18 (b) A caregiver must assign to the department any rights to 46.19 health insurance policy benefits the caregiver has during the 46.20 period of MFIP-S eligibility. 46.21 (c) A caregiver must identify any third party who may be 46.22 liable for care and services available under the medical 46.23 assistance program on behalf of the applicant or participant and 46.24 all other assistance unit members. 46.25 (d) When a participant refuses to assign the rights to the 46.26 department, or when a participant refuses to identify any third 46.27 party who may be liable for care and services, the recipient 46.28 must be sanctioned as provided in section 256J.46. The 46.29 recipient is also ineligible for medical assistance for a 46.30 minimum of one month and until the recipient cooperates with the 46.31 requirements of this subdivision. 46.32 Subd. 11. [REQUIREMENT TO ASSIGN SUPPORT AND MAINTENANCE 46.33 RIGHTS.] To be eligible for MFIP-S, the caregiver must assign 46.34 all rights to child support and spousal maintenance benefits 46.35 according to section 256.74, subdivision 5, and section 256.741, 46.36 if enacted. 47.1 Subd. 12. [REQUIREMENT TO PROVIDE SOCIAL SECURITY 47.2 NUMBERS.] Each member of the assistance unit must provide the 47.3 member's social security number to the county agency except for 47.4 members of the assistance unit who are qualified aliens 47.5 according to the Illegal Immigration Reform and Immigration 47.6 Responsibility Act of 1996, Title V of the Omnibus Consolidated 47.7 Appropriations Act, Public Law Number 104-200. When a social 47.8 security number is not provided to the county agency for 47.9 verification, this requirement is satisfied when each member of 47.10 the assistance unit cooperates with the procedures for 47.11 verification of numbers, issuance of duplicate cards, and 47.12 issuance of new numbers which have been established jointly 47.13 between the Social Security Administration and the commissioner. 47.14 Sec. 19. [256J.31] [APPLICANT AND PARTICIPANT RIGHTS AND 47.15 COUNTY AGENCY RESPONSIBILITIES.] 47.16 Subdivision 1. [RIGHT TO INFORMATION.] An applicant or 47.17 participant has the right to obtain from the county agency 47.18 information about the benefits, requirements, restrictions, and 47.19 appeal provisions of public assistance programs. 47.20 Subd. 2. [RIGHT TO AUTHORIZED REPRESENTATIVE.] An 47.21 applicant or participant has the right to designate an 47.22 authorized representative to act on the applicant's or 47.23 participant's behalf. An applicant or participant has the right 47.24 to be assisted or represented by an authorized representative in 47.25 eligibility determinations, recertification, conciliation 47.26 conferences, the fair hearing process, and any other contacts 47.27 with the county agency or the department. When a county agency 47.28 determines that it is necessary for a person to assist an 47.29 applicant or participant, the county agency must designate a 47.30 staff member to assist the applicant or participant. Upon a 47.31 request from an applicant or participant, a county agency must 47.32 provide addresses and telephone numbers of organizations that 47.33 provide legal services at low cost or no cost to low-income 47.34 persons. 47.35 Subd. 3. [RIGHT OF APPLICANT TO NOTICE.] A county agency 47.36 must notify an applicant of the disposition of the applicant's 48.1 application. The notice must be in writing and on forms 48.2 prescribed by the commissioner. The county agency must mail the 48.3 notice to the last known mailing address provided by the 48.4 applicant. When an application is denied, the county agency 48.5 must notify the applicant in writing of the reasons for the 48.6 denial, of the right to appeal, and of the right to reapply for 48.7 assistance. 48.8 Subd. 4. [PARTICIPANT'S RIGHT TO NOTICE.] A county agency 48.9 must give a participant written notice of all adverse actions 48.10 affecting the participant including payment reductions, 48.11 suspensions, terminations, and use of protective, vendor, or 48.12 two-party payments. The notice of adverse action must be on a 48.13 form prescribed or approved by the commissioner and must be 48.14 mailed to the last known mailing address provided by the 48.15 participant. The county agency must state on the notice of 48.16 adverse action the action it intends to take, the reasons for 48.17 the action, the participant's right to appeal the action, the 48.18 conditions under which assistance can be continued pending an 48.19 appeal decision, and the related consequences of the action. 48.20 Subd. 5. [MAILING OF NOTICE.] The notice of adverse action 48.21 shall be issued according to paragraphs (a) to (c). 48.22 (a) A county agency shall mail a notice of adverse action 48.23 at least ten days before the effective date of the adverse 48.24 action, except as provided in paragraphs (b) and (c). 48.25 (b) A county agency must mail a notice of adverse action at 48.26 least five days before the effective date of the adverse action 48.27 when the county agency has factual information that requires an 48.28 action to reduce, suspend, or terminate assistance based on 48.29 probable fraud. 48.30 (c) A county agency shall mail a notice of adverse action 48.31 before or on the effective date of the adverse action when the 48.32 county agency: 48.33 (1) receives the caregiver's signed monthly MFIP-S 48.34 household report form that includes information that requires 48.35 payment reduction, suspension, or termination; 48.36 (2) is informed of the death of a participant or the payee; 49.1 (3) receives a signed statement from the caregiver that 49.2 assistance is no longer wanted; 49.3 (4) receives a signed statement from the caregiver that 49.4 provides information that requires the termination or reduction 49.5 of assistance; 49.6 (5) verifies that a member of the assistance unit is absent 49.7 from the home and does not meet temporary absence provisions in 49.8 section 256J.13; 49.9 (6) verifies that a member of the assistance unit has 49.10 entered a regional treatment center or a licensed residential 49.11 facility for medical or psychological treatment or 49.12 rehabilitation; 49.13 (7) verifies that a member of an assistance unit has been 49.14 placed in foster care, and the provisions of section 256J.13, 49.15 subdivision 2, paragraph (b), do not apply; or 49.16 (8) cannot locate a caregiver. 49.17 Subd. 6. [APPEAL RIGHTS.] An applicant, participant, or 49.18 former participant has the right to request a fair hearing when 49.19 aggrieved by an action or inaction of a county agency. A 49.20 request for a fair hearing and rights pending a fair hearing are 49.21 set as specified in section 256J.40. 49.22 Subd. 7. [CASE RECORDS AVAILABLE.] A county agency must 49.23 make financial case records available to the participant or 49.24 former participant as soon as possible but no later than the 49.25 fifth business day following the date of the request. When the 49.26 participant or former participant asks for photocopies of 49.27 material from the financial case record, the county agency must 49.28 provide one copy of each page at no cost. 49.29 Subd. 8. [RIGHT TO MANAGE AFFAIRS.] Except for protective 49.30 payment provisions authorized under section 256J.39, 49.31 participants have the right to manage their own affairs. 49.32 Subd. 9. [RIGHT TO PROTECTION.] Minor caregivers have the 49.33 right to protection. The county agency must refer a minor 49.34 caregiver to the social service unit within 30 days of the date 49.35 the application is approved. The social service unit must 49.36 assist the caregiver who is less than 18 years of age to develop 50.1 a plan as specified in section 256J.54. 50.2 Subd. 10. [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 50.3 earnings of a caregiver who is participating in full or 50.4 part-time employment or training shall be protected from 50.5 garnishment. This protection for earnings shall extend for a 50.6 period of six months from the date of termination from MFIP-S. 50.7 Subd. 11. [RESPONSIBILITY TO RETAIN CASE RECORDS.] The 50.8 county agency must retain financial case records and employment 50.9 and training service records for MFIP-S cases according to 50.10 chapter 13. 50.11 Sec. 20. [256J.315] [COUNTY AND TRIBAL COOPERATION.] 50.12 The county agency must cooperate with tribal governments in 50.13 the implementation of MFIP-S to ensure that the program meets 50.14 the special needs of persons living on Indian reservations. 50.15 This cooperation must include, but is not limited to, the 50.16 sharing of MFIP-S duties including initial screening, 50.17 orientation, assessments, and provision of employment and 50.18 training services. The county agency shall encourage tribal 50.19 governments to assume duties related to MFIP-S and shall work 50.20 cooperatively with tribes that have assumed responsibility for a 50.21 portion of the MFIP-S program to expand tribal responsibilities, 50.22 if that expansion is requested by the tribe. 50.23 Sec. 21. [256J.32] [DOCUMENTING, VERIFYING, AND 50.24 RECERTIFYING ELIGIBILITY.] 50.25 Subdivision 1. [VERIFICATION OF INFORMATION.] A county 50.26 agency must only require verification of information necessary 50.27 to determine MFIP-S eligibility and the amount of the assistance 50.28 payment. 50.29 Subd. 2. [DOCUMENTATION.] The applicant or participant 50.30 must document the information required under subdivisions 4 to 6 50.31 or authorize the county agency to verify the information. The 50.32 applicant or participant has the burden of providing documentary 50.33 evidence to verify eligibility. The county agency shall assist 50.34 the applicant or participant in obtaining required documents 50.35 when the applicant or participant is unable to do so. When an 50.36 applicant or participant and the county agency are unable to 51.1 obtain documents needed to verify information, the county agency 51.2 may accept an affidavit from an applicant or participant as 51.3 sufficient documentation. 51.4 Subd. 3. [CONTACTING THIRD PARTIES.] A county agency must 51.5 not request information about an applicant or participant that 51.6 is not of public record from a source other than county 51.7 agencies, the department, or the United States Department of 51.8 Health and Human Services without the person's prior written 51.9 consent. An applicant's signature on an application form 51.10 constitutes consent for contact with the sources specified on 51.11 the application. A county agency may use a single consent form 51.12 to contact a group of similar sources, such as banks or 51.13 insurance agencies, but the sources to be contacted must be 51.14 identified by the county agency prior to requesting an 51.15 applicant's consent. 51.16 Subd. 4. [FACTORS TO BE VERIFIED.] The county agency shall 51.17 verify the following at application: 51.18 (1) identity of adults; 51.19 (2) presence of the minor child in the home, if 51.20 questionable; 51.21 (3) relationship of a minor child to caregivers in the 51.22 assistance unit; 51.23 (4) age, if necessary to determine MFIP-S eligibility; 51.24 (5) immigration status; 51.25 (6) social security number in accordance with the 51.26 requirements of section 256J.30, subdivision 12; 51.27 (7) income; 51.28 (8) self-employment expenses used as a deduction; 51.29 (9) source and purpose of deposits and withdrawals from 51.30 business accounts; 51.31 (10) spousal support and child support payments made to 51.32 persons outside the household; 51.33 (11) real property; 51.34 (12) vehicles; 51.35 (13) checking and savings accounts; 51.36 (14) savings certificates, savings bonds, stocks, and 52.1 individual retirement accounts; 52.2 (15) pregnancy, if related to eligibility; 52.3 (16) inconsistent information, if related to eligibility; 52.4 (17) medical insurance; 52.5 (18) anticipated graduation date of an 18-year-old; 52.6 (19) burial accounts; 52.7 (20) school attendance, if related to eligibility; and 52.8 (21) residence. 52.9 Subd. 5. [VERIFICATION OF IMMIGRATION STATUS.] An 52.10 applicant's written authorization is required before the county 52.11 agency contacts the Immigration and Naturalization Service to 52.12 verify immigration status under subdivision 4, clause (5). 52.13 However, refusal to provide such authorization is grounds for a 52.14 finding of ineligibility if the applicant fails to produce proof 52.15 of eligible immigration status. 52.16 Subd. 5a. [INCONSISTENT INFORMATION.] When the county 52.17 agency verifies inconsistent information under subdivision 4, 52.18 clause (16), or under subdivision 6, clause (4), the reason for 52.19 verifying the information must be documented in the financial 52.20 case record. 52.21 Subd. 6. [RECERTIFICATION.] The county agency shall 52.22 recertify eligibility in an annual face-to-face interview with 52.23 the participant and verify the following: 52.24 (1) presence of the minor child in the home, if 52.25 questionable; 52.26 (2) income, including self-employment expenses used as a 52.27 deduction or deposits or withdrawals from business accounts; 52.28 (3) assets, when the value is within $200 of the asset 52.29 limit; and 52.30 (4) inconsistent information, if related to eligibility. 52.31 Sec. 22. [256J.33] [PROSPECTIVE AND RETROSPECTIVE 52.32 DETERMINATION OF MFIP-S ELIGIBILITY.] 52.33 Subdivision 1. [DETERMINATION OF ELIGIBILITY.] A county 52.34 agency must determine MFIP-S eligibility prospectively for a 52.35 payment month based on retrospectively assessing income and the 52.36 county agency's best estimate of the circumstances that will 53.1 exist in the payment month. 53.2 Except as described in section 256J.34, subdivision 1, when 53.3 prospective eligibility exists, a county agency must calculate 53.4 the amount of the assistance payment using retrospective 53.5 budgeting. To determine MFIP-S eligibility and the assistance 53.6 payment amount, a county agency must apply countable income, 53.7 described in section 256J.37, subdivisions 3 to 10, received by 53.8 members of an assistance unit or by other persons whose income 53.9 is counted for the assistance unit, described under section 53.10 256J.21 and 256J.37, subdivisions 1 and 2. 53.11 This income must be applied to the transitional standard or 53.12 family wage standard subject to this section and sections 53.13 256J.34 to 256J.36. Income received in a calendar month and not 53.14 otherwise excluded under section 256J.21, subdivision 2, must be 53.15 applied to the needs of an assistance unit. 53.16 Subd. 2. [PROSPECTIVE ELIGIBILITY.] A county agency must 53.17 determine whether the eligibility requirements that pertain to 53.18 an assistance unit, including those in sections 256J.10 to 53.19 256J.15 and 256J.20, will be met prospectively for the payment 53.20 month. Except for the provisions in section 256J.34, 53.21 subdivision 1, the income test will be applied retrospectively. 53.22 Subd. 3. [RETROSPECTIVE ELIGIBILITY.] After the first two 53.23 months of MFIP-S eligibility, a county agency must continue to 53.24 determine whether an assistance unit is prospectively eligible 53.25 for the payment month by looking at all factors other than 53.26 income and then determining whether the assistance unit is 53.27 retrospectively income eligible by applying the monthly income 53.28 test to the income from the budget month. When the monthly 53.29 income test is not satisfied, the assistance payment must be 53.30 suspended when ineligibility exists for one month or ended when 53.31 ineligibility exists for more than one month. 53.32 Subd. 4. [MONTHLY INCOME TEST.] A county agency must apply 53.33 the monthly income test retrospectively for each month of MFIP-S 53.34 eligibility. An assistance unit is not eligible when the 53.35 countable income equals or exceeds the transitional standard or 53.36 the family wage level for the assistance unit. The income 54.1 applied against the monthly income test must include: 54.2 (1) gross earned income from employment, prior to mandatory 54.3 payroll deductions, voluntary payroll deductions, wage 54.4 authorizations, and after the disregards in section 256J.21, 54.5 subdivision 3, and the allocations in section 256J.36, unless 54.6 the employment income is specifically excluded under section 54.7 256J.21, subdivision 2; 54.8 (2) gross earned income from self-employment less 54.9 deductions for self-employment expenses in section 256J.37, 54.10 subdivision 5, but prior to any reductions for personal or 54.11 business state and federal income taxes, personal FICA, personal 54.12 health and life insurance, and after the disregards in section 54.13 256J.21, subdivision 3, and the allocations in section 256J.36; 54.14 (3) unearned income after deductions for allowable expenses 54.15 in section 256J.37, subdivision 9, and allocations in section 54.16 256J.36, unless the income has been specifically excluded in 54.17 section 256J.21, subdivision 2; 54.18 (4) gross earned income from employment as determined under 54.19 clause (1) which is received by a member of an assistance unit 54.20 who is a minor child and less than a half-time student; 54.21 (5) child support and spousal support received or 54.22 anticipated to be received by an assistance unit; 54.23 (6) the income of a parent when that parent is not included 54.24 in the assistance unit; 54.25 (7) the income of an eligible relative and the relative's 54.26 spouse who seek to be included in the assistance unit; and 54.27 (8) the unearned income of a minor child included in the 54.28 assistance unit. 54.29 Subd. 5. [WHEN TO TERMINATE ASSISTANCE.] When an 54.30 assistance unit is ineligible for MFIP-S assistance for two 54.31 consecutive months, the county agency must terminate MFIP-S 54.32 assistance. 54.33 Sec. 23. [256J.34] [CALCULATING PAYMENTS; SIGNIFICANT 54.34 CHANGE; INCOME AVERAGING.] 54.35 Subdivision 1. [PROSPECTIVE BUDGETING.] A county agency 54.36 must use prospective budgeting to calculate the assistance 55.1 payment amount for the first two months for an applicant who has 55.2 not received assistance in this state for at least one payment 55.3 month preceding the first month of payment under a current 55.4 application. Prospective budgeting is not subject to 55.5 overpayments or underpayments unless fraud is determined under 55.6 section 256.98. 55.7 (a) The county agency must apply the income received or 55.8 anticipated in the first month of MFIP-S eligibility against the 55.9 need of the first month. The county agency must apply the 55.10 income received or anticipated in the second month against the 55.11 need of the second month. 55.12 (b) When the assistance payment for any part of the first 55.13 two months is based on anticipated income, the county agency 55.14 must base the initial assistance payment amount on the 55.15 information available at the time the initial assistance payment 55.16 is made. 55.17 (c) The county agency must determine the assistance payment 55.18 amount for the first two months of MFIP-S eligibility by 55.19 budgeting both recurring and nonrecurring income for those two 55.20 months. 55.21 (d) The county agency must budget the child support income 55.22 received or anticipated to be received by an assistance unit to 55.23 determine the assistance payment amount from the month of 55.24 application through the date in which MFIP-S eligibility is 55.25 determined and assistance is authorized. Child support income 55.26 which has been budgeted to determine the assistance payment in 55.27 the initial two months is considered nonrecurring income. An 55.28 assistance unit must forward any payment of child support to the 55.29 child support enforcement unit of the county agency following 55.30 the date in which assistance is authorized. 55.31 Subd. 2. [RETROSPECTIVE BUDGETING.] The county agency must 55.32 use retrospective budgeting to calculate the monthly assistance 55.33 payment amount after the payment for the first two months has 55.34 been made under subdivision 1. 55.35 Subd. 3. [ADDITIONAL USES OF RETROSPECTIVE 55.36 BUDGETING.] Notwithstanding subdivision 1, the county agency 56.1 must use retrospective budgeting to calculate the monthly 56.2 assistance payment amount for the first two months under 56.3 paragraphs (a) and (b). 56.4 (a) The county agency must use retrospective budgeting to 56.5 determine the amount of the assistance payment in the first two 56.6 months of MFIP-S eligibility: 56.7 (1) when an assistance unit applies for assistance for the 56.8 same month for which assistance has been interrupted, the 56.9 interruption in eligibility is less than one payment month, the 56.10 assistance payment for the preceding month was issued in this 56.11 state, and the assistance payment for the immediately preceding 56.12 month was determined retrospectively; or 56.13 (2) when a person applies in order to be added to an 56.14 assistance unit, that assistance unit has received assistance in 56.15 this state for at least the two preceding months, and that 56.16 person has been living with and has been financially responsible 56.17 for one or more members of that assistance unit for at least the 56.18 two preceding months. 56.19 (b) Except as provided in clauses (1) to (4), the county 56.20 agency must use retrospective budgeting and apply income 56.21 received in the budget month by an assistance unit and by a 56.22 financially responsible household member who is not included in 56.23 the assistance unit against the appropriate transitional or 56.24 family wage level standard to determine the assistance payment 56.25 to be issued for the payment month. 56.26 (1) When a source of income ends prior to the third payment 56.27 month, that income is not considered in calculating the 56.28 assistance payment for that month. When a source of income ends 56.29 prior to the fourth payment month, that income is not considered 56.30 when determining the assistance payment for that month. 56.31 (2) When a member of an assistance unit or a financially 56.32 responsible household member leaves the household of the 56.33 assistance unit, the income of that departed household member is 56.34 not budgeted retrospectively for any full payment month in which 56.35 that household member does not live with that household and is 56.36 not included in the assistance unit. 57.1 (3) When an individual is removed from an assistance unit 57.2 because the individual is no longer a minor child, the income of 57.3 that individual is not budgeted retrospectively for payment 57.4 months in which that individual is not a member of the 57.5 assistance unit, except that income of an ineligible child in 57.6 the household must continue to be budgeted retrospectively 57.7 against the child's needs when the parent or parents of that 57.8 child request allocation of their income against any unmet needs 57.9 of that ineligible child. 57.10 (4) When a person ceases to have financial responsibility 57.11 for one or more members of an assistance unit, the income of 57.12 that person is not budgeted retrospectively for the payment 57.13 months which follow the month in which financial responsibility 57.14 ends. 57.15 Subd. 4. [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 57.16 agency must recalculate the assistance payment when an 57.17 assistance unit experiences a significant change, as defined in 57.18 section 256J.08, resulting in a reduction in the gross income 57.19 received in the payment month from the gross income received in 57.20 the budget month. The county agency must issue a supplemental 57.21 assistance payment based on the county agency's best estimate of 57.22 the assistance unit's income and circumstances for the payment 57.23 month. Budget adjustments that result from significant changes 57.24 are limited to two in a 12-month period regardless of the reason 57.25 for the change. Budget adjustments due to a significant change 57.26 in the amount of direct support received must not be made after 57.27 the date the assistance unit is required to forward support to 57.28 the child support enforcement unit under subdivision 1, 57.29 paragraph (d). 57.30 Subd. 5. [INCOME AVERAGING FOR PARTICIPANTS PAID WEEKLY OR 57.31 BIWEEKLY.] For the purposes of stabilizing assistance payments, 57.32 the county agency may average income for participants paid 57.33 weekly or biweekly. Monthly income may be computed by adding 57.34 income from all paychecks, dividing the sum by the number of 57.35 paychecks, and multiplying the results by 4.3 if paychecks are 57.36 weekly or 2.16 if paychecks are biweekly. The county agency may 58.1 not use income averaging unless discussed with the participant 58.2 and requested by the participant. 58.3 Sec. 24. [256J.35] [AMOUNT OF ASSISTANCE PAYMENT.] 58.4 Except as provided in paragraphs (a) to (c), the amount of 58.5 an assistance payment is equal to the difference between the 58.6 transitional standard or the family wage level in section 58.7 256J.24 and countable income. 58.8 (a) When MFIP-S eligibility exists for the month of 58.9 application, the amount of the assistance payment for the month 58.10 of application must be prorated from the date of application or 58.11 the date all other eligibility factors are met for that 58.12 applicant, whichever is later. This provision applies when an 58.13 applicant loses at least one day of MFIP-S eligibility. 58.14 (b) MFIP-S overpayments to an assistance unit must be 58.15 recouped according to section 256J.38, subdivision 4. 58.16 (c) An initial assistance payment must not be made to an 58.17 applicant who is not eligible on the date payment is made. 58.18 Sec. 25. [256J.36] [ALLOCATION FOR UNMET NEED OF OTHER 58.19 HOUSEHOLD MEMBERS.] 58.20 Except as prohibited in paragraphs (a) and (b), an 58.21 allocation of income is allowed to meet the unmet need of an 58.22 ineligible spouse or an ineligible child under the age of 21 for 58.23 whom the caregiver is financially responsible who also lives 58.24 with the caregiver. An allocation is allowed from the 58.25 caregiver's income to meet the need of an ineligible or excluded 58.26 person. That allocation is allowed in an amount up to the 58.27 difference between the MFIP-S family allowance for the 58.28 assistance unit when that excluded or ineligible person is 58.29 included in the assistance unit and the MFIP-S family allowance 58.30 for the assistance unit when the excluded or ineligible person 58.31 is not included in the assistance unit. These allocations must 58.32 be deducted from the caregiver's counted earnings and from 58.33 unearned income subject to paragraphs (a) and (b). 58.34 (a) Income of a minor child in the assistance unit must not 58.35 be allocated to meet the need of a person who is not a member of 58.36 the assistance unit, including the child's parent, even when 59.1 that parent is the payee of the child's income. 59.2 (b) Income of an assistance unit must not be allocated to 59.3 meet the needs of a person ineligible for failure to cooperate 59.4 with program requirements including child support requirements, 59.5 a person ineligible due to fraud, or a relative caregiver and 59.6 his or her spouse who opt out of the assistance unit. 59.7 Sec. 26. [256J.37] [TREATMENT OF INCOME AND LUMP SUMS.] 59.8 Subdivision 1. [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 59.9 MEMBERS.] (a) The income of ineligible household members must be 59.10 deemed after allowing the following disregards: 59.11 (1) the first 18 percent of the excluded family member's 59.12 gross earned income; 59.13 (2) amounts the ineligible person actually paid to 59.14 individuals not living in the same household but whom the 59.15 ineligible person claims as dependents for determining federal 59.16 personal income tax liability; 59.17 (3) child or spousal support paid to a person who lives 59.18 outside of the household; and 59.19 (4) an amount for the needs of other persons who live in 59.20 the household but are not included in the assistance unit and 59.21 are or could be claimed by an ineligible person as dependents 59.22 for determining federal personal income tax liability. This 59.23 amount is equal to the difference between the MFIP-S need 59.24 standard when the excluded person is included in the assistance 59.25 unit and the MFIP-S need standard when the excluded person is 59.26 not included in the assistance unit. 59.27 Subd. 2. [DEEMED INCOME OF SPONSOR OF NONCITIZENS.] (a) 59.28 All income of a sponsor, or sponsor's spouse, who executed an 59.29 affidavit of support for a noncitizen must be deemed to be 59.30 unearned income of the noncitizen as specified in the Personal 59.31 Responsibility and Work Opportunity Reconciliation Act of 1996 59.32 and any implementing regulations. For purposes of this 59.33 subdivision "sponsor" means an individual or organization. 59.34 (b) The income of a sponsor who executed an affidavit of 59.35 support for a noncitizen prior to the promulgation of the 59.36 affidavit of support under the Personal Responsibility and Work 60.1 Opportunity Reconciliation Act of 1996, must be deemed to be 60.2 unearned income of the noncitizen after allowing the following 60.3 exclusions: 60.4 (1) 20 percent of the combined gross earned income of the 60.5 sponsor and the sponsor's spouse up to a maximum of $175 per 60.6 month; 60.7 (2) an amount for the needs of the sponsor, the sponsor's 60.8 spouse, and other individuals, living in the sponsor's home, who 60.9 could be claimed by the sponsor or the sponsor's spouse as 60.10 dependents for determining federal personal income tax 60.11 liability, which is equal to the MFIP-S need standard for a 60.12 comparable family unit; 60.13 (3) amounts the sponsor and the sponsor's spouse actually 60.14 paid to individuals not living in the same household but whom 60.15 the sponsor or the sponsor's spouse claim as dependents for 60.16 determining federal personal income tax liability; and 60.17 (4) child or spousal support paid by the sponsor or 60.18 sponsor's spouse to a person who lives outside of the sponsor's 60.19 household. 60.20 Subd. 3. [EARNED INCOME OF WAGE, SALARY, AND CONTRACTUAL 60.21 EMPLOYEES.] The county agency must include gross earned income 60.22 less any disregards in the initial and monthly income test. 60.23 Gross earned income received by persons employed on a 60.24 contractual basis must be prorated over the period covered by 60.25 the contract even when payments are received over a lesser 60.26 period of time. 60.27 Subd. 4. [SELF-EMPLOYMENT.] Self-employed individuals are 60.28 those who are responsible for their own work schedule and do not 60.29 have coverage under an employer's liability insurance or 60.30 workers' compensation. Self-employed individuals generally work 60.31 for themselves rather than an employer. However, individuals 60.32 employed in some types of services may be self-employed even if 60.33 they have an employer or work out of another's business 60.34 location. For example, real estate sales people, individuals 60.35 who work for commission sales, manufacturer's representatives, 60.36 and independent contractors may be self-employed. Self-employed 61.1 individuals may or may not have FICA deducted from the check 61.2 issued to them by an employer or another party. 61.3 Self-employed individuals may own a business singularly or 61.4 in partnership. Individuals operating more than one 61.5 self-employment business may use the loss from one business to 61.6 offset self-employment income from another business. A loss 61.7 from a self-employment business may not offset income earned 61.8 under subdivision 3. 61.9 Subd. 5. [SELF-EMPLOYMENT EARNINGS.] (a) The county agency 61.10 must determine self-employment income as provided in this 61.11 paragraph. The county agency must subtract allowable business 61.12 expenses from total gross receipts. Allowable business expenses 61.13 include: 61.14 (1) interest on mortgages and loans; 61.15 (2) employee wages, except for persons who are part of the 61.16 assistance unit or whose income is deemed to the participant; 61.17 (3) FICA funds paid on employees' wages, payment of 61.18 employee workers' compensation, and reemployment insurance; 61.19 (4) livestock and veterinary or breeding fees; 61.20 (5) raw material; 61.21 (6) seed and fertilizer; 61.22 (7) maintenance and repairs that are not capital 61.23 expenditures; 61.24 (8) tax return preparation fees; 61.25 (9) license fees, professional fees, franchise fees, and 61.26 professional dues; 61.27 (10) tools and supplies that are not capital expenditures; 61.28 (11) fuel and transportation expenses other than fuel costs 61.29 covered by the flat rate transportation deduction; 61.30 (12) advertising costs; 61.31 (13) meals eaten when required to be away from the local 61.32 work site; 61.33 (14) property expenses such as rent, insurance, taxes, and 61.34 utilities; 61.35 (15) postage; 61.36 (16) purchase cost of inventory at time of sale; 62.1 (17) loss from another self-employment business; 62.2 (18) attorney's fees allowed by the Internal Revenue 62.3 Service; and 62.4 (19) tuition for classes necessary to maintain or improve 62.5 job skills or required by law to maintain job status or salary 62.6 as allowed by the Internal Revenue Service. 62.7 (b) The county agency shall not allow a deduction for the 62.8 following expenses: 62.9 (1) purchases of capital assets; 62.10 (2) payments on the principals of loans for capital assets; 62.11 (3) depreciation; 62.12 (4) amortization; 62.13 (5) the wholesale costs of items purchased, processed, or 62.14 manufactured which are unsold inventory; 62.15 (6) transportation costs that exceed the maximum standard 62.16 mileage rate allowed for use of a personal car in the Internal 62.17 Revenue Code; 62.18 (7) costs, in any amount, for mileage between an 62.19 applicant's or participant's home and place of employment; 62.20 (8) salaries and other employment deductions made for 62.21 members of an assistance unit or persons who live in the 62.22 household for whom an employer is legally responsible; 62.23 (9) monthly expenses in excess of $71 for each roomer; 62.24 (10) monthly expenses in excess of the Thrifty Food Plan 62.25 amount for one person for each boarder. For purposes of this 62.26 clause and clause (11), "Thrifty Food Plan" has the meaning 62.27 given it in Code of Federal Regulations. 62.28 (11) monthly expenses in excess of the roomer rate plus the 62.29 Thrifty Food Plan amount for one person for each 62.30 roomer-boarder. If there is more than one boarder or 62.31 roomer-boarder, the total number of boarders must be used as the 62.32 unit size to determine the Thrifty Food Plan amount; 62.33 (12) an amount greater than actual expenses or two percent 62.34 of the estimated market value on a county tax assessment form, 62.35 whichever is greater, as a deduction for upkeep and repair 62.36 against rental income; 63.1 (13) expenses not allowed by the Internal Revenue Code; 63.2 (14) expenses in excess of 60 percent of gross receipts for 63.3 in-home child care unless a higher amount can be documented; and 63.4 (15) expenses that are reimbursed under the child and adult 63.5 care food program as authorized under the National School Lunch 63.6 Act, United States Code, title 42, section 1766. 63.7 Subd. 6. [SELF-EMPLOYMENT BUDGET PERIOD.] The 63.8 self-employment budget period begins in the month of application 63.9 or in the first month of self-employment. Gross receipts must 63.10 be budgeted in the month received. Expenses must be budgeted 63.11 against gross receipts in the month the expenses are paid, 63.12 except for paragraphs (a) to (c). 63.13 (a) The purchase cost of inventory items, including 63.14 materials which are processed or manufactured, must be deducted 63.15 as an expense at the time payment is received for the sale of 63.16 the inventory items. 63.17 (b) A 12-month rolling average based on clauses (1) to (3) 63.18 must be used to budget monthly income. 63.19 (1) For a business in operation for at least 12 months, the 63.20 county agency shall use the average monthly self-employment 63.21 income from the most current income tax return for the taxable 63.22 year before the month of application. The county agency shall 63.23 determine a new monthly average by adding in the actual 63.24 self-employment income and expenses from the previous month and 63.25 dropping the first month from the averaging period. 63.26 (2) For a business in operation for less than 12 months, 63.27 the county agency shall compute the average for the number of 63.28 months the business has been in operation to determine a monthly 63.29 average. When data are available for 12 or more months, average 63.30 monthly self-employment income is determined under clause (1). 63.31 (3) If the business undergoes a major change, the county 63.32 agency shall compute a new rolling average beginning with the 63.33 first month of the major change. For the purpose of this 63.34 clause, "major change" means a change that affects the nature 63.35 and scale of the business and is not merely the result of normal 63.36 business fluctuations. 64.1 (c) For seasonal self-employment, the participant may 64.2 choose whether to use actual income in the month of receipt and 64.3 expenses in the month incurred or the rolling average method of 64.4 computation. The choice must be made once per year at the time 64.5 of application or recertification. For the purpose of this 64.6 paragraph, seasonal means working six or less months per year. 64.7 Subd. 7. [FARM INCOME.] Farm income is the difference 64.8 between gross receipts and operating expenses. The county 64.9 agency must not allow a deduction for expenses listed in 64.10 subdivision 5, paragraph (b). Gross receipts include sales, 64.11 rents, subsidies, soil conservation payments, production derived 64.12 from livestock, and income from home-produced food. 64.13 Subd. 8. [RENTAL INCOME.] The county agency must treat 64.14 income from rental property as earned or unearned income. 64.15 Income from rental property is unearned income unless the 64.16 assistance unit spends an average of ten hours per week on 64.17 maintenance or management of the property. When the owner 64.18 spends more than ten hours per week on maintenance or repairs, 64.19 the earnings are considered self-employment earnings. An amount 64.20 must be deducted for upkeep and repairs, as limited by 64.21 subdivision 5, paragraph (b), clause (12), real estate taxes, 64.22 insurance, utilities, and interest on principal payments. When 64.23 the applicant or participant lives on the rental property, 64.24 expenses for upkeep, taxes, insurance, utilities, and interest 64.25 must be divided by the number of rooms to determine expense per 64.26 room and expenses deducted must be deducted only for the number 64.27 of rooms rented. 64.28 Subd. 9. [UNEARNED INCOME.] (a) The county agency must 64.29 apply unearned income, including housing subsidies as specified 64.30 in paragraph (b), to the transitional standard. When 64.31 determining the amount of unearned income, the county agency 64.32 must deduct the costs necessary to secure payments of unearned 64.33 income. These costs include legal fees, medical fees, and 64.34 mandatory deductions such as federal and state income taxes. 64.35 (b) Effective January 1, 1998, the county agency shall 64.36 count $100 of the value of public and assisted rental subsidies 65.1 provided by the Department of Housing and Urban Development 65.2 (HUD) through state or local housing authorities, as unearned 65.3 income. The full amount of the subsidy must be counted as 65.4 unearned income when the subsidy is less than $100. 65.5 Subd. 10. [TREATMENT OF LUMP SUMS.] The county agency must 65.6 treat lump-sum payments as earned or unearned income. If the 65.7 lump-sum payment is included in the category of income 65.8 identified in subdivision 9, it must be treated as unearned 65.9 income. A lump sum is counted as income in the month received 65.10 and budgeted either prospectively or retrospectively depending 65.11 on the budget cycle at the time of receipt. When an individual 65.12 receives a lump-sum payment, that lump sum must be combined with 65.13 all other earned and unearned income received in the same budget 65.14 month, and it must be applied according to paragraphs (a) to (c). 65.15 A lump sum may not be carried over into subsequent months. Any 65.16 funds that remain in the third month after the month of receipt 65.17 are counted in the asset limit. 65.18 (a) For a lump sum received by an applicant during the 65.19 first two months, prospective budgeting is used to determine the 65.20 payment and the lump sum must be combined with other earned or 65.21 unearned income received and budgeted in that prospective month. 65.22 (b) For a lump sum received by a participant after the 65.23 first two months of MFIP-S eligibility, the lump sum must be 65.24 combined with other income received in that budget month, and 65.25 the combined amount must be applied retrospectively against the 65.26 applicable payment month. 65.27 (c) When a lump sum, combined with other income under 65.28 paragraphs (a) and (b), is less than the transitional standard 65.29 for the applicable payment month, the assistance payment must be 65.30 reduced according to the amount of the countable income. When 65.31 the countable income is greater than the transitional standard 65.32 or the family wage standard, the assistance payment must be 65.33 suspended for the payment month. 65.34 Sec. 27. [256J.38] [CORRECTION OF OVERPAYMENTS AND 65.35 UNDERPAYMENTS.] 65.36 Subdivision 1. [SCOPE OF OVERPAYMENT.] When a participant 66.1 or former participant receives an overpayment due to agency, 66.2 client, or ATM error, or due to assistance received while an 66.3 appeal is pending and the participant or former participant is 66.4 determined ineligible for assistance or for less assistance than 66.5 was received, the county agency must recoup or recover the 66.6 overpayment under the conditions of this section. 66.7 Subd. 2. [NOTICE OF OVERPAYMENT.] When a county agency 66.8 discovers that a participant or former participant has received 66.9 an overpayment for one or more months, the county agency must 66.10 notify the participant or former participant of the overpayment 66.11 in writing. A notice of overpayment must specify the reason for 66.12 the overpayment, the authority for citing the overpayment, the 66.13 time period in which the overpayment occurred, the amount of the 66.14 overpayment, and the participant's or former participant's right 66.15 to appeal. No limit applies to the period in which the county 66.16 agency is required to recoup or recover an overpayment according 66.17 to subdivisions 3 and 4. 66.18 Subd. 3. [RECOVERING OVERPAYMENTS FROM FORMER 66.19 PARTICIPANTS.] A county agency must initiate efforts to recover 66.20 overpayments paid to a former participant. Adults and minor 66.21 caregivers of an assistance unit at the time an overpayment 66.22 occurs, whether receiving assistance or not, are jointly and 66.23 individually liable for repayment of the overpayment. The 66.24 county agency must request repayment from the former 66.25 participants. When an agreement for repayment is not completed 66.26 within six months of the date of discovery or when there is a 66.27 default on an agreement for repayment after six months, the 66.28 county agency must initiate recovery consistent with chapter 66.29 270A, or section 541.05. When a person has been convicted of 66.30 fraud under section 256.98, recovery must be sought regardless 66.31 of the amount of overpayment. When an overpayment is less than 66.32 $35, and is not the result of a fraud conviction under section 66.33 256.98, the county agency must not seek recovery under this 66.34 subdivision. The county agency must retain information about 66.35 all overpayments regardless of the amount. When an adult or 66.36 minor caregiver reapplies for assistance, the overpayment must 67.1 be recouped under subdivision 4. 67.2 Subd. 4. [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 67.3 participant may voluntarily repay, in part or in full, an 67.4 overpayment even if assistance is reduced under this 67.5 subdivision, until the total amount of the overpayment is 67.6 repaid. When an overpayment occurs, the county agency must 67.7 recover ten percent of the transitional standard or the amount 67.8 of the monthly assistance payment, whichever is less. 67.9 Subd. 5. [RECOVERING AUTOMATIC TELLER MACHINE ERRORS.] For 67.10 recipients receiving benefits via electronic benefit transfer, 67.11 if the overpayment is a result of an ATM dispensing funds in 67.12 error to the recipient, the agency may recover the ATM error by 67.13 immediately withdrawing funds from the recipient's electronic 67.14 benefit transfer account, up to the amount of the error. 67.15 Subd. 6. [SCOPE OF UNDERPAYMENTS.] A county agency must 67.16 issue a corrective payment for underpayments made to a 67.17 participant or to a person who would be a participant if an 67.18 agency or client error causing the underpayment had not occurred. 67.19 The county agency must issue the corrective payment according to 67.20 subdivision 8. 67.21 Subd. 7. [IDENTIFYING THE UNDERPAYMENT.] An underpayment 67.22 may be identified by a county agency, by a participant, by a 67.23 former participant, or by a person who would be a participant 67.24 except for agency or client error. 67.25 Subd. 8. [ISSUING CORRECTIVE PAYMENTS.] A county agency 67.26 must correct an underpayment within seven calendar days after 67.27 the underpayment has been identified, by adding the corrective 67.28 payment amount to the monthly assistance payment of the 67.29 participant or by issuing a separate payment to a participant or 67.30 former participant, or by reducing an existing overpayment 67.31 balance. When an underpayment occurs in a payment month and is 67.32 not identified until the next payment month or later, the county 67.33 agency must first subtract the underpayment from any overpayment 67.34 balance before issuing the corrective payment. The county 67.35 agency must not apply an underpayment in a current payment month 67.36 against an overpayment balance. When an underpayment in the 68.1 current payment month is identified, the corrective payment must 68.2 be issued within seven calendar days after the underpayment is 68.3 identified. 68.4 Subd. 9. [APPEALS.] A participant may appeal an 68.5 underpayment, an overpayment, and a reduction in an assistance 68.6 payment made to recoup the overpayment under subdivision 4. The 68.7 participant's appeal of each issue must be timely under section 68.8 256.045. When an appeal based on the notice issued under 68.9 subdivision 2 is not timely, the fact or the amount of that 68.10 overpayment must not be considered as a part of a later appeal, 68.11 including an appeal of a reduction in an assistance payment to 68.12 recoup that overpayment. 68.13 Sec. 28. [256J.39] [PAYMENT PROVISIONS; VENDOR PAYMENTS.] 68.14 Subdivision 1. [PAYMENT POLICY.] The following policies 68.15 apply to monthly assistance payments and corrective payments: 68.16 (1) Grant payments may be issued in the form of warrants 68.17 immediately redeemable in cash, electronic benefits transfer, or 68.18 by direct deposit into the recipient's account in a financial 68.19 institution. 68.20 (2) The commissioner shall mail assistance payment checks 68.21 to the address where a caregiver lives unless the county agency 68.22 approves an alternate arrangement. 68.23 (3) The commissioner shall mail monthly assistance payment 68.24 checks within time to allow postal service delivery to occur no 68.25 later than the first day of each month. Monthly assistance 68.26 payment checks must be dated the first day of the month. The 68.27 commissioner shall issue electronic benefits transfer payments 68.28 so that caregivers have access to the payments no later than the 68.29 first of the month. 68.30 (4) The commissioner shall issue replacement checks 68.31 promptly, but no later than seven calendar days after the 68.32 provisions of sections 16A.46; 256.01, subdivision 11; and 68.33 471.415 have been met. 68.34 Subd. 2. [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 68.35 paying assistance directly to a participant may be used when: 68.36 (1) a county agency determines that a vendor payment is the 69.1 most effective way to resolve an emergency situation pertaining 69.2 to basic needs; 69.3 (2) a caregiver makes a written request to the county 69.4 agency asking that part or all of the assistance payment be 69.5 issued by protective or vendor payments for shelter and utility 69.6 service only. The caregiver may withdraw this request in 69.7 writing at any time; 69.8 (3) a caregiver has exhibited a continuing pattern of 69.9 mismanaging funds as determined by the county agency; 69.10 (4) the vendor payment is part of a sanction under section 69.11 256J.46, subdivision 2; or 69.12 (5) the vendor payment is required under section 256J.24 or 69.13 256J.43. 69.14 The director of a county agency must approve a proposal for 69.15 protective or vendor payment for money mismanagement. During 69.16 the time a protective or vendor payment is being made, the 69.17 county agency must provide services designed to alleviate the 69.18 causes of the mismanagement. 69.19 The continuing need for and method of payment must be 69.20 documented and reviewed every 12 months. The director of a 69.21 county agency must approve the continuation of protective or 69.22 vendor payments. 69.23 When it appears that the need for protective or vendor 69.24 payments will continue or is likely to continue beyond two years 69.25 because the county agency's efforts have not resulted in 69.26 sufficiently improved use of assistance on behalf of the minor 69.27 child, judicial appointment of a legal guardian or other legal 69.28 representative must be sought by the county agency. 69.29 Subd. 3. [CHOOSING PAYEES FOR PROTECTIVE OR VENDOR 69.30 PAYMENTS.] A county agency shall consult with a caregiver 69.31 regarding the selection of the form of payment, the selection of 69.32 a protective payee, and the distribution of the assistance 69.33 payment to meet the various costs incurred by the assistance 69.34 unit. When choosing a protective payee, the county agency shall 69.35 notify the caregiver of a consultation date. If the caregiver 69.36 fails to respond to the county agency's request for consultation 70.1 by the effective date on the notice, the county agency must 70.2 choose a protective payee for that payment month and subsequent 70.3 payment months until the caregiver responds to the agency's 70.4 request for consultation. The county agency must notify the 70.5 caregiver of the right to appeal the determination that a 70.6 protective or vendor payment should be made or continued and to 70.7 appeal the selection of the payee. If a county agency is not 70.8 able to find another protective payee, a county agency staff 70.9 member may serve as a protective payee. The following persons 70.10 may not serve as protective payees: a member of the county 70.11 board of commissioners; the county agency staff member 70.12 determining financial eligibility for the family; special 70.13 investigative or resource staff; the staff member handling 70.14 accounting or fiscal processes related to the participant; or a 70.15 landlord, grocer, or other vendor dealing directly with the 70.16 participant. 70.17 Subd. 4. [DISCONTINUING PROTECTIVE OR VENDOR PAYMENTS.] A 70.18 county agency shall discontinue protective or vendor payments in 70.19 two years or in the month following the county agency's failure 70.20 to grant six-month approval to a money management plan, 70.21 whichever occurs first. At least once every 12 months, a county 70.22 agency shall review the performance of a protective payee acting 70.23 under subdivision 2, clause (3), to determine whether a new 70.24 payee should be selected. When a participant complains about 70.25 the performance of a protective payee, a review shall occur 70.26 within 30 calendar days. 70.27 Sec. 29. [256J.395] [VENDOR PAYMENT OF RENT AND 70.28 UTILITIES.] 70.29 (a) When a county is required to provide assistance to a 70.30 recipient in vendor form for rent and utilities under chapter 70.31 256, 256D, 256J, or 256K, the cost of utilities for a given 70.32 family may be assumed to be: 70.33 (1) the average of the actual monthly cost of utilities for 70.34 that family for the prior 12 months at the family's current 70.35 residence, if applicable; 70.36 (2) the monthly plan amount, if any, set by the local 71.1 utilities for that family at the family's current residence; or 71.2 (3) the estimated monthly utility costs for the dwelling in 71.3 which the family currently resides. 71.4 (b) For purposes of this section, "utility" means any of 71.5 the following: municipal water and sewer service; electric, 71.6 gas, or heating fuel service; or wood, if that is the heating 71.7 source. 71.8 This section is effective July 1, 1997. 71.9 Sec. 30. [256J.40] [FAIR HEARINGS.] 71.10 Caregivers receiving a notice of intent to sanction or a 71.11 notice of adverse action that includes a sanction, reduction in 71.12 benefits, suspension of benefits, denial of benefits, or 71.13 termination of benefits may request a fair hearing. A request 71.14 for a fair hearing must be submitted in writing to the county 71.15 agency or to the commissioner and must be mailed within 30 days 71.16 after a participant or former participant receives written 71.17 notice of the agency's action or within 90 days when a 71.18 participant or former participant shows good cause for not 71.19 submitting the request within 30 days. A former participant who 71.20 receives a notice of adverse action due to an overpayment may 71.21 appeal the adverse action according to the requirements in this 71.22 section. Issues that may be appealed are: 71.23 (1) the amount of the assistance payment; 71.24 (2) a suspension, reduction, denial, or termination of 71.25 assistance; 71.26 (3) the basis for an overpayment, the calculated amount of 71.27 an overpayment, and the level of recoupment; 71.28 (4) the eligibility for an assistance payment; and 71.29 (5) the use of protective or vendor payments under section 71.30 256J.39, subdivision 2, clauses (1) and (3). 71.31 A county agency must not reduce, suspend, or terminate 71.32 payment when an aggrieved participant requests a fair hearing 71.33 prior to the effective date of the adverse action or within ten 71.34 days of the mailing of the notice of adverse action, whichever 71.35 is later, unless the participant requests in writing not to 71.36 receive continued assistance pending a hearing decision. 72.1 Assistance issued pending a fair hearing is subject to recovery 72.2 under section 256J.38 when as a result of the fair hearing 72.3 decision the participant is determined ineligible for assistance 72.4 or the amount of the assistance received. A county agency may 72.5 increase or reduce an assistance payment while an appeal is 72.6 pending when the circumstances of the participant change and are 72.7 not related to the issue on appeal. The commissioner's order is 72.8 binding on a county agency. No additional notice is required to 72.9 enforce the commissioner's order. 72.10 A county agency shall reimburse appellants for reasonable 72.11 and necessary expenses of attendance at the hearing, such as 72.12 child care and transportation costs and for the transportation 72.13 expenses of the appellant's witnesses and representatives to and 72.14 from the hearing. Reasonable and necessary expenses do not 72.15 include legal fees. Fair hearings must be conducted at a 72.16 reasonable time and date by an impartial referee employed by the 72.17 department. The hearing may be conducted by telephone or at a 72.18 site that is readily accessible to persons with disabilities. 72.19 The appellant may introduce new or additional evidence 72.20 relevant to the issues on appeal. Recommendations of the 72.21 appeals referee and decisions of the commissioner must be based 72.22 on evidence in the hearing record and are not limited to a 72.23 review of the county agency action. 72.24 Sec. 31. [256J.42] [60-MONTH TIME LIMIT.] 72.25 Subdivision 1. [TIME LIMIT.] (a) An assistance unit in 72.26 which any adult caregiver has received 60 months of cash 72.27 assistance funded in whole or in part by the TANF block grant, 72.28 or MFIP-S assistance funded in whole or in part by state 72.29 appropriations, is ineligible to receive MFIP-S. Any cash 72.30 assistance funded with TANF dollars, or MFIP-S assistance funded 72.31 in whole or in part by state appropriations, that was received 72.32 by the unit on or after the date TANF was implemented, including 72.33 any assistance received in states of prior residence, counts 72.34 toward the 60-month limitation. The 60-month limit applies to a 72.35 minor who is the head of a household or who is married to the 72.36 head of a household. The 60-month time period does not need to 73.1 be consecutive months for this provision to apply. 73.2 (b) Months before July 1998 in which individuals receive 73.3 assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R 73.4 comparison group family under sections 256.031 to 256.0361 or 73.5 sections 256.047 to 256.048 are not included in the 60-month 73.6 time limit. 73.7 Subd. 2. [ASSISTANCE FROM ANOTHER STATE.] An individual is 73.8 ineligible to receive MFIP-S assistance in any month during 73.9 which that individual received benefits from another state under 73.10 the temporary assistance to needy families block grant 73.11 authorized by Title I of Public Law Number 104-193. 73.12 Subd. 3. [ADULTS LIVING ON AN INDIAN RESERVATION.] In 73.13 determining the number of months for which an adult has received 73.14 assistance under MFIP-S, the county agency must disregard any 73.15 month during which the adult lived on an Indian reservation if, 73.16 during the month: 73.17 (1) at least 1,000 individuals were living on the 73.18 reservation; and 73.19 (2) at least 50 percent of the adults living on the 73.20 reservation were unemployed. 73.21 Subd. 4. [VICTIMS OF DOMESTIC VIOLENCE.] Any cash 73.22 assistance received by an assistance unit in a month when a 73.23 caregiver is complying with a safety plan under the MFIP-S 73.24 employment and training component does not count toward the 73.25 60-month limitation on assistance. 73.26 Sec. 32. [256J.43] [INTERSTATE PAYMENT STANDARDS.] 73.27 (a) Effective July 1, 1997, the amount of assistance paid 73.28 to an eligible family in which all members have resided in this 73.29 state for fewer than 12 calendar months shall be the lesser of 73.30 either the payment standard that would have been received by the 73.31 family from the state of immediate prior residence, or the 73.32 amount calculated in accordance with AFDC or MFIP-S standards. 73.33 The lesser payment must continue until the family meets the 73.34 12-month requirement. Payment must be calculated by applying 73.35 this state's budgeting policies, and the unit's net income must 73.36 be deducted from the payment standard in the other state or in 74.1 this state, whichever is lower. Payment shall be made in vendor 74.2 form for rent and utilities, up to the limit of the grant 74.3 amount, and residual amounts, if any, shall be paid directly to 74.4 the assistance unit. 74.5 (b) During the first 12 months a family resides in this 74.6 state, the number of months that a family is eligible to receive 74.7 AFDC or MFIP-S benefits is limited to the number of months the 74.8 family would have been eligible to receive similar benefits in 74.9 the state of immediate prior residence. 74.10 (c) This policy applies whether or not the family received 74.11 similar benefits while residing in the state of previous 74.12 residence. 74.13 (d) When a family moves to this state from another state 74.14 where the family has exhausted that state's time limit for 74.15 receiving benefits under that state's TANF program, the family 74.16 will not be eligible to receive any AFDC or MFIP-S benefits in 74.17 this state for 12 months from the date the family moves here. 74.18 (e) For the purposes of this section, "state of immediate 74.19 prior residence" means: 74.20 (1) the state in which the applicant declares the applicant 74.21 spent the most time in the 30 days prior to moving to this 74.22 state; or 74.23 (2) the state in which an applicant who is a migrant worker 74.24 maintains a home. 74.25 (f) The commissioner shall annually verify and update all 74.26 other states' payment standards as they are to be in effect in 74.27 July of each year. 74.28 (g) Applicants must provide verification of their state of 74.29 immediate prior residence, in the form of tax statements, a 74.30 driver's license, automobile registration, rent receipts, or 74.31 other forms of verification approved by the commissioner. 74.32 Sec. 33. [256J.44] [INITIAL SCREENING OF MFIP-S 74.33 APPLICANT.] 74.34 Subdivision 1. [SCREENING.] The county agency, or at 74.35 county option, the county's employment and training service 74.36 provider as defined in section 256J.49, must screen each 75.1 applicant to determine immediate needs and to determine if the 75.2 applicant may be eligible for: 75.3 (1) another program that is not partially funded through 75.4 the federal temporary assistance to needy families block grant 75.5 under title I of Public Law Number 104-193, including the 75.6 expedited issuance of food stamps under section 256J.28, 75.7 subdivision 1. If the applicant may be eligible for another 75.8 program, a county caseworker must provide the appropriate 75.9 referral to the program; 75.10 (2) the diversionary assistance program under section 75.11 256J.47; or 75.12 (3) the emergency assistance program under section 256J.48. 75.13 The applicant is required to attend the screening. If the 75.14 applicant is not diverted from applying for MFIP-S under clauses 75.15 (1) to (3), and if the applicant meets the MFIP-S eligibility 75.16 requirements, then an orientation under section 256J.45 and an 75.17 initial assessment under section 256J.52 must be completed; or, 75.18 in the case of caregivers who are under the age of 20, a plan 75.19 under section 256J.54 must be completed. 75.20 Subd. 2. [SUPPORT SERVICES TO ATTEND SCREENING AND 75.21 ORIENTATION.] Upon a caregiver's request, the county agency must 75.22 arrange for transportation and child care or reimburse 75.23 caregivers for transportation and child care expenses necessary 75.24 to enable caregivers to attend the initial screening under this 75.25 section and the orientation under section 256J.45 if scheduled 75.26 on a day other than when the caregiver makes application for 75.27 assistance. 75.28 Sec. 34. [256J.45] [ORIENTATION.] 75.29 Subdivision 1. [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 75.30 county agency must provide each MFIP-S caregiver with a 75.31 face-to-face orientation. The caregiver must attend the 75.32 orientation. 75.33 Subd. 2. [GENERAL INFORMATION.] The MFIP-S orientation 75.34 must consist of a presentation that informs caregivers of: 75.35 (1) the necessity to obtain immediate employment; 75.36 (2) the work incentives under MFIP-S; 76.1 (3) the requirement to comply with the employment plan and 76.2 other requirements of the employment and training services 76.3 component of MFIP-S; 76.4 (4) the consequences for failing to comply with the 76.5 employment plan and other program requirements; 76.6 (5) the rights, responsibilities, and obligations of 76.7 participants; 76.8 (6) the types and locations of child care services 76.9 available through the county agency; 76.10 (7) the availability and the benefits of the early 76.11 childhood health and developmental screening under sections 76.12 123.701 to 123.74; 76.13 (8) the caregiver's eligibility for transition year child 76.14 care assistance under section 119B.05; 76.15 (9) the caregiver's eligibility for extended medical 76.16 assistance when the caregiver loses eligibility for MFIP-S due 76.17 to increased earnings or increased child or spousal support; and 76.18 (10) the caregiver's option to choose an employment and 76.19 training provider and information about each provider, including 76.20 but not limited to, services offered, program components, job 76.21 placement rates, job placement wages, and job retention rates. 76.22 Sec. 35. [256J.46] [SANCTIONS.] 76.23 Subdivision 1. [SANCTIONS FOR REFUSAL TO COOPERATE WITH 76.24 SUPPORT REQUIREMENTS.] The grant of an MFIP-S caregiver who 76.25 refuses to cooperate, as determined by the child support 76.26 enforcement agency, with support requirements under section 76.27 256J.30, must be reduced by 25 percent, and the assistance 76.28 unit's rent and utilities, if any, shall be vendor paid up to 76.29 the amount of the reduced MFIP-S grant. The residual amount of 76.30 the grant, if any, must be paid to the caregiver. A sanction 76.31 under this subdivision becomes effective ten days after the 76.32 required notice is given. The sanction must be in effect for a 76.33 minimum of one month, and shall be removed only when the 76.34 caregiver cooperates with the support requirements. For 76.35 purposes of this subdivision, each month that a participant 76.36 fails to comply with a requirement of section 256J.30 shall be 77.1 considered a separate occurrence of noncompliance. A 77.2 participant who has had one or more sanctions imposed must 77.3 remain in compliance with the provisions of this chapter for 12 77.4 months in order for a subsequent sanction to be considered a 77.5 first occurrence. A sanction under this subdivision is not 77.6 subject to the notice and supervisory review requirements of 77.7 section 256J.57, subdivision 2. 77.8 Subd. 1a. [TRANSITIONAL RULE; SANCTIONS FOR AFDC, FAMILY 77.9 GA, STRIDE, ACCESS, MFIP, OR MFIP-R RECIPIENTS.] For purposes of 77.10 determining a sanction under subdivision 2, a recipient of 77.11 assistance under AFDC, family general assistance, STRIDE, 77.12 ACCESS, MFIP, or MFIP-R, who was under a sanction in the month 77.13 immediately preceding the receipt of assistance under MFIP-S 77.14 shall be considered as having one occurrence of failure to 77.15 comply. A recipient of assistance under AFDC, family general 77.16 assistance, STRIDE, ACCESS, MFIP, or MFIP-R, who was under a 77.17 sanction in each of the two months immediately preceding the 77.18 receipt of assistance under MFIP-S shall be considered as having 77.19 two occurrences of failure to comply. The provisions of section 77.20 256J.57 do not apply to sanctions imposed under AFDC, family 77.21 general assistance, project STRIDE, ACCESS, MFIP, or MFIP-R. 77.22 Subd. 2. [SANCTIONS FOR PARTICIPANTS NOT COMPLYING WITH 77.23 PROGRAM REQUIREMENTS.] (a) A participant who fails without good 77.24 cause to comply with the requirements of this chapter other than 77.25 section 256J.30 shall be subject to a sanction consisting of 77.26 reduced MFIP-S assistance as provided in this subdivision. A 77.27 sanction under this subdivision becomes effective ten days after 77.28 the required notice is given. For purposes of this subdivision, 77.29 each month that a participant fails to comply with a requirement 77.30 of this chapter shall be considered a separate occurrence of 77.31 noncompliance. A participant who has had one or more sanctions 77.32 imposed must remain in compliance with the provisions of this 77.33 chapter for 12 months in order for a subsequent sanction to be 77.34 considered a first occurrence. 77.35 (b) Sanctions for noncompliance shall be imposed as 77.36 follows, provided the participant is not subject to sanction 78.1 under subdivision 1: 78.2 (1) For the first occurrence of failure to comply, a 78.3 participant's rent and utilities, if any, shall be vendor paid 78.4 up to the amount of the MFIP-S grant for which the participant's 78.5 assistance unit is eligible. The residual amount of the grant 78.6 after vendor payment, if any, must be reduced by an amount equal 78.7 to 25 percent of the applicable transitional standard before it 78.8 is paid to the participant. If the assistance unit is a 78.9 two-parent family and both parents are in noncompliance under 78.10 this subdivision, the residual amount of the grant, if any, must 78.11 be reduced by an additional five percent of the applicable 78.12 transitional standard before it is paid to the participant. The 78.13 sanction must be in effect for a minimum of one month, and shall 78.14 be removed only when the participant is in compliance. If the 78.15 participant is not paying rent and utilities, the county may opt 78.16 to vendor pay other expenses for basic needs, after applying the 78.17 required 25 percent reduction. 78.18 (2) For a second occurrence, the participant's rent and 78.19 utilities, if any, shall be vendor paid up to the amount of the 78.20 MFIP-S grant for which the participant's assistance unit is 78.21 eligible. The residual amount of the grant after vendor 78.22 payment, if any, must be reduced by an amount equal to 35 78.23 percent of the applicable transitional standard before the 78.24 residual is paid to the participant. If the assistance unit is 78.25 a two-parent family and both parents are in noncompliance under 78.26 this subdivision, the residual amount of the grant, if any, must 78.27 be reduced by an additional five percent of the applicable 78.28 transitional standard before it is paid to the participant. The 78.29 sanction must be in effect for a minimum of one month, and shall 78.30 be removed only when the participant is in compliance. If the 78.31 participant is not paying rent and utilities, the county may opt 78.32 to vendor pay other expenses for basic needs, after applying the 78.33 required 35 percent reduction. 78.34 (3) For a third or subsequent occurrence, the assistance 78.35 unit's grant must be reduced by an amount equal to 50 percent of 78.36 the applicable transitional standard before the residual is paid 79.1 to the participant. If the assistance unit is a two-parent 79.2 family and both parents are in noncompliance under this 79.3 subdivision, the residual amount of the grant, if any, must be 79.4 reduced by an additional five percent of the applicable 79.5 transitional standard before it is paid to the participant. The 79.6 sanction must be in effect for a minimum of one month, and shall 79.7 be removed only when the participant is in compliance. 79.8 Subd. 2a. [DUAL SANCTIONS.] (a) Notwithstanding the 79.9 provisions of subdivision 2, for a participant subject to the 79.10 following sanctions concurrently: 79.11 (1) a sanction for refusal to cooperate with child support 79.12 requirements under subdivision 1; and 79.13 (2) a sanction for refusal to cooperate with other program 79.14 requirements, sanctions shall be imposed in the order and in the 79.15 manner prescribed in this subdivision, the participant's grant 79.16 must be reduced by 25 percent, and the assistance unit's rent 79.17 and utilities shall be vendor paid up to the amount of the 79.18 reduced grant, as provided in subdivision 1. The residual 79.19 amount of the grant after vendor payment, if any, must be 79.20 reduced by ten percent of the applicable transitional standard 79.21 before it is paid to the participant. If the assistance unit is 79.22 a two-parent family and both parents are in noncompliance under 79.23 this subdivision, the residual amount of the grant, if any, must 79.24 be reduced by an additional five percent of the applicable 79.25 transitional standard before it is paid to the participant. The 79.26 sanction must be in effect for a minimum of one month, and shall 79.27 be removed only when the participant is in compliance. 79.28 (b) Notwithstanding paragraph (a), for a participant 79.29 subject to the following sanctions concurrently: 79.30 (1) a sanction for refusal to cooperate with child support 79.31 requirements under subdivision 1; and 79.32 (2) sanctions for at least three occurrences of failure to 79.33 comply with other program requirements, the assistance unit's 79.34 grant must be reduced by an amount equal to 50 percent of the 79.35 MFIP-S grant for which the participant's assistance unit is 79.36 eligible. The sanction must be in effect for a minimum of one 80.1 month, and shall be removed only when the participant is in 80.2 compliance. 80.3 Subd. 3. [EXCEPTIONS DUE TO LACK OF DAY CARE.] 80.4 Notwithstanding subdivision 2, the county agency may not reduce 80.5 or terminate MFIP-S assistance based on a refusal of a 80.6 participant to comply with the requirements of the employment 80.7 and training component of MFIP-S if the participant is a single 80.8 custodial parent caring for a child who has not attained six 80.9 years of age, and the participant has a demonstrated inability, 80.10 as determined by the county agency, to obtain needed child care, 80.11 for one or more of the following reasons: 80.12 (1) unavailability of appropriate child care within a 80.13 reasonable distance from the participant's home or work site; 80.14 (2) unavailability or unsuitability of informal child care 80.15 by a relative or under other arrangements; or 80.16 (3) unavailability of appropriate and affordable formal 80.17 child care arrangements. 80.18 Sec. 36. [256J.47] [DIVERSIONARY ASSISTANCE PROGRAM.] 80.19 Subdivision 1. [ELIGIBILITY.] A family is eligible to 80.20 receive diversionary assistance once every 36 months if: 80.21 (1) a family member has resided in this state for at least 80.22 30 days; 80.23 (2) the caregiver provides verification that the caregiver 80.24 has either experienced an unexpected occurrence that makes it 80.25 impossible to retain or obtain employment or the caregiver has a 80.26 temporary loss of income, which is not due to refusing to accept 80.27 or terminating suitable employment as defined in section 80.28 256J.49, without good cause, resulting in an emergency; 80.29 (3) the caregiver is at risk of MFIP-S eligibility if 80.30 diversionary assistance is not provided and household income is 80.31 below 140 percent of the federal poverty guidelines; and 80.32 (4) the diversionary assistance will resolve the emergency 80.33 and divert the family from applying for MFIP-S. 80.34 For purposes of this section, diversionary assistance means 80.35 a one-time lump-sum payment to an individual or third-party 80.36 vendor to prevent long-term receipt of public assistance. 81.1 Subd. 2. [COUNTY AGENCY DUTIES.] County agencies shall: 81.2 (1) thoroughly explain to the caregiver the consequences of 81.3 receiving diversionary assistance, specifically the resulting 81.4 period of ineligibility under subdivision 4 for other assistance 81.5 programs; 81.6 (2) determine eligibility for diversionary assistance 81.7 within five working days of the receipt of the verification 81.8 required under subdivision 1; and 81.9 (3) verify all information as necessary. 81.10 Subd. 3. [MAXIMUM AMOUNT OF ASSISTANCE.] The maximum 81.11 amount of diversionary assistance that may be provided to a 81.12 family is equal to the amount of the MFIP-S standard for the 81.13 same family size and composition for four months. The 81.14 assistance provided under this program must be based on the 81.15 immediate needs of the family. Counties must strive to provide 81.16 the most cost-effective solution to the one-time emergency. 81.17 Diversionary assistance is not cost effective if the family's 81.18 anticipated income added to the diversion payment will not be 81.19 sufficient to cover the family's immediate needs for the period 81.20 of ineligibility under subdivision 4, beginning with the month 81.21 of application, or another emergency can reasonably be 81.22 anticipated within the period of ineligibility. 81.23 Subd. 4. [INELIGIBILITY FOR MFIP-S; EMERGENCY ASSISTANCE; 81.24 AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of diversionary 81.25 assistance, the family is ineligible for MFIP-S, emergency 81.26 assistance, and emergency general assistance for a period of 81.27 time. To determine the period of ineligibility, the county 81.28 shall use the following formula: regardless of household 81.29 changes, the county agency must calculate the number of days of 81.30 ineligibility by dividing the diversionary assistance issued by 81.31 the maximum monthly amount a family of the same size and 81.32 composition would have received under MFIP-S, multiplied by 30, 81.33 truncating the result. The ineligibility period begins the date 81.34 the diversionary assistance is issued. 81.35 Subd. 5. [DIVERSIONARY ASSISTANCE GRANT; FUNDING] The 81.36 commissioner shall distribute diversionary assistance grants to 82.1 counties. The commissioner may use federal block grant funding 82.2 or state funding for the grants. 82.3 Sec. 37. [256J.48] [EMERGENCY ASSISTANCE (EA).] 82.4 Subdivision 1. [EMERGENCY FINANCIAL ASSISTANCE.] County 82.5 human service agencies shall grant emergency financial 82.6 assistance to any needy pregnant woman or needy family with a 82.7 child under the age of 21 who is or was within six months prior 82.8 to application living with an eligible caregiver relative 82.9 specified in section 256J.08. 82.10 Except for ongoing special diets, emergency assistance is 82.11 available to a family during one 30-day period in a consecutive 82.12 12-month period. A county shall issue assistance for needs that 82.13 accrue before that 30-day period only when it is necessary to 82.14 resolve emergencies arising or continuing during the 30-day 82.15 period of eligibility. When emergency needs continue, a county 82.16 may issue assistance for up to 30 days beyond the initial 30-day 82.17 period of eligibility, but only when assistance is authorized 82.18 during the initial period. 82.19 Subd. 2. [ELIGIBILITY.] Notwithstanding other eligibility 82.20 provisions of this chapter, any family without resources 82.21 immediately available to meet emergency needs identified in 82.22 subdivision 3 shall be eligible for an emergency grant under the 82.23 following conditions: 82.24 (1) a family member has resided in this state for at least 82.25 30 days; 82.26 (2) the family is without resources immediately available 82.27 to meet emergency needs; 82.28 (3) assistance is necessary to avoid destitution or provide 82.29 emergency shelter arrangements; and 82.30 (4) the family's destitution or need for shelter or 82.31 utilities did not arise because the child or relative caregiver 82.32 refused without good cause to accept employment or training for 82.33 employment in another state. 82.34 Subd. 3. [EMERGENCY NEEDS.] Emergency needs are limited to 82.35 the following: 82.36 (a) [RENT.] A county agency may deny assistance to prevent 83.1 eviction from rented or leased shelter of an otherwise eligible 83.2 applicant when the county agency determines that an applicant's 83.3 anticipated income will not cover continued payment for shelter, 83.4 subject to conditions in clauses (1) to (3): 83.5 (1) a county agency must not deny assistance when an 83.6 applicant can document that the applicant is unable to locate 83.7 habitable shelter, unless the county agency can document that 83.8 one or more habitable shelters are available in the community 83.9 that will result in at least a 20 percent reduction in monthly 83.10 expense for shelter and that this shelter will be cost-effective 83.11 for the applicant; 83.12 (2) when no alternative shelter can be identified by either 83.13 the applicant or the county agency, the county agency shall not 83.14 deny assistance because anticipated income will not cover rental 83.15 obligation; and 83.16 (3) when cost-effective alternative shelter is identified, 83.17 the county agency shall issue assistance for moving expenses as 83.18 provided in paragraph (d). 83.19 (b) [DEFINITIONS.] For purposes of paragraph (a), the 83.20 following definitions apply (1) "metropolitan statistical area" 83.21 is as defined by the U.S. Census Bureau; (2) "alternative 83.22 shelter" includes any shelter that is located within the 83.23 metropolitan statistical area containing the county and for 83.24 which the applicant is eligible, provided the applicant does not 83.25 have to travel more than 20 miles to reach the shelter and has 83.26 access to transportation to the shelter. Clause (2) does not 83.27 apply to counties in the Minneapolis-St. Paul metropolitan 83.28 statistical area. 83.29 (c) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 83.30 agency shall issue assistance for mortgage or contract for deed 83.31 arrearages on behalf of an otherwise eligible applicant 83.32 according to clauses (1) to (4): 83.33 (1) assistance for arrearages must be issued only when a 83.34 home is owned, occupied, and maintained by the applicant; 83.35 (2) assistance for arrearages must be issued only when no 83.36 subsequent foreclosure action is expected within the 12 months 84.1 following the issuance; 84.2 (3) assistance for arrearages must be issued only when an 84.3 applicant has been refused refinancing through a bank or other 84.4 lending institution and the amount payable, when combined with 84.5 any payments made by the applicant, will be accepted by the 84.6 creditor as full payment of the arrearage; 84.7 (4) costs paid by a family which are counted toward the 84.8 payment requirements in this clause are: principle and interest 84.9 payments on mortgages or contracts for deed, balloon payments, 84.10 homeowner's insurance payments, manufactured home lot rental 84.11 payments, and tax or special assessment payments related to the 84.12 homestead. Costs which are not counted include closing costs 84.13 related to the sale or purchase of real property. 84.14 To be eligible for assistance for costs specified in clause 84.15 (4) which are outstanding at the time of foreclosure, an 84.16 applicant must have paid at least 40 percent of the family's 84.17 gross income toward these costs in the month of application and 84.18 the 11-month period immediately preceding the month of 84.19 application. 84.20 When an applicant is eligible under clause (4), a county 84.21 agency shall issue assistance up to a maximum of four times the 84.22 MFIP-S transitional standard for a comparable assistance unit. 84.23 (d) [DAMAGE OR UTILITY DEPOSITS.] A county agency shall 84.24 issue assistance for damage or utility deposits when necessary 84.25 to alleviate the emergency. The county may require that 84.26 assistance paid in the form of a damage deposit or a utility 84.27 deposit, less any amount retained by the landlord to remedy a 84.28 tenant's default in payment of rent or other funds due to the 84.29 landlord under a rental agreement, or to restore the premises to 84.30 the condition at the commencement of the tenancy, ordinary wear 84.31 and tear excepted, be returned to the county when the individual 84.32 vacates the premises or be paid to the recipient's new landlord 84.33 as a vendor payment. The vendor payment of returned funds shall 84.34 not be considered a new use of emergency assistance. 84.35 (e) [MOVING EXPENSES.] A county agency shall issue 84.36 assistance for expenses incurred when a family must move to a 85.1 different shelter according to clauses (1) to (4): 85.2 (1) moving expenses include the cost to transport personal 85.3 property belonging to a family, the cost for utility connection, 85.4 and the cost for securing different shelter; 85.5 (2) moving expenses must be paid only when the county 85.6 agency determines that a move is cost-effective; 85.7 (3) moving expenses must be paid at the request of an 85.8 applicant, but only when destitution or threatened destitution 85.9 exists; and 85.10 (4) moving expenses must be paid when a county agency 85.11 denies assistance to prevent an eviction because the county 85.12 agency has determined that an applicant's anticipated income 85.13 will not cover continued shelter obligation in paragraph (a). 85.14 (f) [HOME REPAIRS.] A county agency shall pay for repairs 85.15 to the roof, foundation, wiring, heating system, chimney, and 85.16 water and sewer system of a home that is owned and lived in by 85.17 an applicant. 85.18 The applicant shall document, and the county agency shall 85.19 verify the need for and method of repair. 85.20 The payment must be cost-effective in relation to the 85.21 overall condition of the home and in relation to the cost and 85.22 availability of alternative housing. 85.23 (g) [UTILITY COSTS.] Assistance for utility costs must be 85.24 made when an otherwise eligible family has had a termination or 85.25 is threatened with a termination of municipal water and sewer 85.26 service, electric, gas or heating fuel service, or lacks wood 85.27 when that is the heating source, subject to the conditions in 85.28 clauses (1) and (2): 85.29 (1) a county agency must not issue assistance unless the 85.30 county agency receives confirmation from the utility provider 85.31 that assistance combined with payment by the applicant will 85.32 continue or restore the utility; and 85.33 (2) a county agency shall not issue assistance for utility 85.34 costs unless a family paid at least eight percent of the 85.35 family's gross income toward utility costs due during the 85.36 preceding 12 months. 86.1 Clauses (1) and (2) must not be construed to prevent the 86.2 issuance of assistance when a county agency must take immediate 86.3 and temporary action necessary to protect the life or health of 86.4 a child. 86.5 (h) [SPECIAL DIETS.] A county shall pay for special diets 86.6 or dietary items. The need for special diets or dietary items 86.7 must be prescribed by a licensed physician. Costs for special 86.8 diets shall be determined as percentages of the allotment for a 86.9 one-person household under the Thrifty Food Plan as defined by 86.10 the United States Department of Agriculture. The types of diets 86.11 and the percentages of the Thrifty Food Plan that are covered 86.12 are as follows: 86.13 (1) high protein diet, at least 80 grams daily, 25 percent 86.14 of Thrifty Food Plan; 86.15 (2) controlled protein diet, 40 to 60 grams and requires 86.16 special products, 100 percent of Thrifty Food Plan; 86.17 (3) controlled protein diet, less than 40 grams and 86.18 requires special products, 125 percent of Thrifty Food Plan; 86.19 (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 86.20 (5) high residue diet, 20 percent of Thrifty Food Plan; 86.21 (6) pregnancy and lactation diet, 35 percent of Thrifty 86.22 Food Plan; 86.23 (7) gluten-free diet, 25 percent of Thrifty Food Plan; 86.24 (8) lactose-free diet, 25 percent of Thrifty Food Plan; 86.25 (9) antidumping diet, 15 percent of Thrifty Food Plan; 86.26 (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 86.27 (11) ketogenic diet, 25 percent of Thrifty Food Plan. 86.28 Subd. 4. [VENDOR PAYMENTS FOR SHELTER OR UTILITY 86.29 COSTS.] If an MFIP-S participant applies for and receives 86.30 emergency assistance for shelter and utility costs under 86.31 subdivision 3, paragraph (a), (b), (c), or (f), the ongoing 86.32 MFIP-S assistance payment shall be in the form of vendor 86.33 payments. 86.34 Sec. 38. [256J.49] [EMPLOYMENT AND TRAINING SERVICES; 86.35 DEFINITIONS.] 86.36 Subdivision 1. [SCOPE.] The terms used in sections 256J.50 87.1 to 256J.72 have the meanings given them in this section. 87.2 Subd. 2. [DOMESTIC VIOLENCE.] "Domestic violence" means: 87.3 (1) physical acts that result, or threaten to result in, 87.4 physical injury to an individual; 87.5 (2) sexual abuse; 87.6 (3) sexual activity involving a minor child; 87.7 (4) being forced as the caregiver of a minor child to 87.8 engage in nonconsensual sexual acts or activities; 87.9 (5) threats of, or attempts at, physical or sexual abuse; 87.10 (6) mental abuse; or 87.11 (7) neglect or deprivation of medical care. 87.12 Subd. 3. [EMPLOYMENT AND TRAINING SERVICES.] "Employment 87.13 and training services" means programs, activities and services 87.14 that are designed to assist participants in obtaining and 87.15 retaining employment. 87.16 Subd. 4. [EMPLOYMENT AND TRAINING SERVICE 87.17 PROVIDER.] "Employment and training service provider" means: 87.18 (1) a public, private, or nonprofit employment and training 87.19 agency certified by the commissioner of economic security under 87.20 sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 87.21 is approved under section 256J.51 and is included in the county 87.22 plan submitted under section 256J.50, subdivision 6; or 87.23 (2) a county agency, if the county has opted to provide 87.24 employment and training services and has been certified by the 87.25 commissioner of economic security under sections 268.0122, 87.26 subdivision 3, and 268.871, subdivision 1, or is approved under 87.27 section 256J.51 and is included in the county plan submitted 87.28 under section 256J.50, subdivision 6. 87.29 Subd. 5. [EMPLOYMENT PLAN.] "Employment plan" means a plan 87.30 developed by the job counselor and the participant which 87.31 identifies the participant's most direct path to unsubsidized 87.32 employment, lists the specific steps that the participant will 87.33 take on that path, and includes a timetable for the completion 87.34 of each step. 87.35 Subd. 6. [FEDERAL PARTICIPATION STANDARDS.] "Federal 87.36 participation standards" means the work participation standards 88.1 as specified in title I of Public Law Number 104-193, the 88.2 Personal Responsibility and Work Opportunity Reconciliation Act 88.3 of 1996. 88.4 Subd. 7. [INTENSIVE ENGLISH AS A SECOND LANGUAGE 88.5 PROGRAM.] "Intensive English as a second language program" means 88.6 an English as a second language program that offers at least 20 88.7 hours of class per week. 88.8 Subd. 8. [JOB COUNSELOR.] "Job counselor" means a staff 88.9 person employed by the employment and training services provider 88.10 who delivers services as specified in sections 256J.50 to 88.11 256J.55. 88.12 Subd. 9. [PARTICIPANT.] "Participant" means a recipient of 88.13 MFIP-S assistance who participates or is required to participate 88.14 in employment and training services. 88.15 Subd. 10. [PROVIDER.] "Provider" means an employment and 88.16 training service provider. 88.17 Subd. 11. [SAFETY PLAN.] "Safety plan" means a plan 88.18 developed by a victim of domestic violence with the assistance 88.19 of a public agency or a private nonprofit agency, including 88.20 agencies that receive designation by the department of 88.21 corrections to provide emergency shelter services or support 88.22 services under section 611A.32. A safety plan shall not include 88.23 a provision that automatically requires a domestic violence 88.24 victim to seek an order of protection, or to attend counseling, 88.25 as part of the safety plan. 88.26 Subd. 12. [SUITABLE EMPLOYMENT.] "Suitable employment" 88.27 means employment that: 88.28 (1) is within the participant's physical and mental 88.29 abilities; 88.30 (2) pays hourly gross wages of not less than the applicable 88.31 state or federal minimum wage; and 88.32 (3) meets health and safety standards set by federal, state 88.33 and county agencies. 88.34 Subd. 13. [WORK ACTIVITY.] "Work activity" means any 88.35 activity in a participant's approved employment plan that is 88.36 tied to the participant's employment goal . For purposes of the 89.1 MFIP-S program, any activity that is included in a participant's 89.2 approved employment plan meets the definition of work activity 89.3 as counted under the federal participation standards. Work 89.4 activity includes, but is not limited to: 89.5 (1) unsubsidized employment; 89.6 (2) subsidized private sector or public sector employment, 89.7 including grant diversion as specified in section 256J.69; 89.8 (3) work experience, including CWEP as specified in section 89.9 256J.67, and including work associated with the refurbishing of 89.10 publicly assisted housing if sufficient private sector 89.11 employment is not available; 89.12 (4) on-the-job training as specified in section 256J.66; 89.13 (5) job search, either supervised or unsupervised; 89.14 (6) job readiness assistance; 89.15 (7) job clubs, including job search workshops; 89.16 (8) job placement; 89.17 (9) job development; 89.18 (10) job-related counseling; 89.19 (11) job coaching; 89.20 (12) job retention services; 89.21 (13) job-specific training or education ; 89.22 (14) job skills training directly related to employment; 89.23 (15) the self-employment investment demonstration (SEID), 89.24 as specified in section 256J.65; 89.25 (16) preemployment activities, based on availability and 89.26 resources, such as volunteer work, literacy programs and related 89.27 activities, citizenship and English as a second language 89.28 classes, or participation in dislocated worker services, 89.29 chemical dependency treatment, mental health services, peer 89.30 group networks, displaced homemaker programs, parenting 89.31 education, or other programs designed to help families reach 89.32 their employment goals and enhance their ability to care for 89.33 their children; 89.34 (17) community service programs; 89.35 (18) vocational educational training or educational 89.36 programs that can reasonably be expected to lead to employment, 90.1 as limited by the provisions of section 256J.53; 90.2 (19) apprenticeships; 90.3 (20) satisfactory attendance in general educational 90.4 development diploma classes or an adult diploma program; 90.5 (21) satisfactory attendance at secondary school, if the 90.6 participant has not received a high school diploma; 90.7 (22) adult basic education classes; 90.8 (23) internships; 90.9 (24) bilingual employment and training services; 90.10 (25) providing child care services to a participant who is 90.11 working in a community service program; and 90.12 (26) activities included in a safety plan that is developed 90.13 under section 256J.52, subdivision 6. 90.14 Sec. 39. [256J.50] [COUNTY DUTIES.] 90.15 Subdivision 1. [EMPLOYMENT AND TRAINING SERVICES COMPONENT 90.16 OF MFIP-S.] (a) By January 1, 1998, each county must develop and 90.17 implement an employment and training services component of 90.18 MFIP-S which is designed to put participants on the most direct 90.19 path to unsubsidized employment. Participation in these 90.20 services is mandatory for all MFIP-S caregivers, unless the 90.21 caregiver is exempt under section 256J.56, and is required 90.22 concurrent with the receipt of MFIP-S cash assistance. 90.23 (b) A county may provide employment and training services 90.24 to MFIP-S caregivers who are exempt from the employment and 90.25 training services component but volunteer for the services. 90.26 Subd. 2. [PILOT PROGRAMS.] In counties selected for the 90.27 work first or work focused pilot programs, first-time applicants 90.28 for assistance must meet the requirements of those programs in 90.29 place of the requirements of the MFIP-S program. A county may, 90.30 at its option, discontinue a work first or work focused pilot 90.31 program. 90.32 Subd. 3. [TRANSITIONAL RULE; MFIP OR MFIP-R 90.33 PARTICIPANT.] A caregiver who was enrolled in MFIP or MFIP-R 90.34 immediately before enrolling in MFIP-S, and who was making 90.35 satisfactory progress toward the objectives specified in the 90.36 caregiver's employment plan, may, with the approval of a job 91.1 counselor, continue with the existing employment plan for up to 91.2 one year after the caregiver is enrolled in MFIP-S. The job 91.3 counselor may require changes to the plan in order to be 91.4 consistent with the time limit. 91.5 Subd. 3a. [TRANSITIONAL RULE; STRIDE, ACCESS.] (a) A 91.6 county agency that is not a participant in the MFIP or MFIP-R 91.7 field trials under sections 256.031 to 256.0361 shall not enroll 91.8 a recipient into project STRIDE or ACCESS after the date that 91.9 MFIP-S is implemented in the county. 91.10 (b) A caregiver who: 91.11 (i) was enrolled in project STRIDE or ACCESS continuously 91.12 since March 1, 1997; 91.13 (ii) is not a part of an MFIP or MFIP-R comparison group; 91.14 and 91.15 (iii) who is making satisfactory progress toward the 91.16 objectives specified in the caregiver's employment plan, may, 91.17 with the approval of the job counselor, continue with the 91.18 existing employment plan for up to two years after the caregiver 91.19 is enrolled in MFIP-S. For purposes of the federal 91.20 participation standards, the activities in the caregiver's 91.21 employment plan are work activities, as that term is defined in 91.22 section 256J.49, subdivision 13. 91.23 (c) Notwithstanding contrary provisions of section 256.736, 91.24 the employability plan of a caregiver who is enrolled in project 91.25 STRIDE or ACCESS on or after July 1, 1997, must meet the 91.26 requirements of sections 256J.52, subdivisions 4 and 5, and 91.27 256J.53, or section 256J.54, if applicable. 91.28 Subd. 4. [SERVICE-PROVIDING AGENCIES.] Counties may select 91.29 one or more employment and training service providers, or may 91.30 opt to provide services on their own. 91.31 Subd. 5. [COUNTY OPTION FOR EARLY IMPLEMENTATION.] A 91.32 county may opt to implement its employment and training services 91.33 component of MFIP-S before January 1, 1998. A county that does 91.34 so is eligible for a bonus payment as specified under this 91.35 subdivision. For each participant that is engaged, prior to 91.36 January 1, in job search under section 256J.52, subdivision 3, 92.1 in activities that are part of an employment plan under section 92.2 256J.52, subdivision 5, or in activities that are part of a 92.3 safety plan under section 256J.52, subdivision 6, the county is 92.4 eligible for a bonus payment of $100. The commissioner must add 92.5 any bonus payments earned under this subdivision to the county's 92.6 employment and training services allocation for fiscal year 92.7 1998. Bonus payments must not supplant, and must be in addition 92.8 to, a county's allocation under section 256J.62. 92.9 Subd. 6. [COUNTY PLAN.] Each county agency shall prepare 92.10 and submit a plan as specified in section 268.88. 92.11 Subd. 7. [COUNTY DUTY TO ENSURE EMPLOYMENT AND TRAINING 92.12 CHOICES FOR PARTICIPANTS.] Each county, or group of counties 92.13 working cooperatively, shall make available to participants the 92.14 choice of at least two employment and training service providers 92.15 as defined under section 256J.49, subdivision 4, except in 92.16 counties utilizing workforce centers that use multiple 92.17 employment providers, offer multiple services options under a 92.18 collaborative effort and can document that participants have 92.19 choice among employment and training services designed to meet 92.20 specialized needs. 92.21 Subd. 8. [EXCEPTION; FINANCIAL HARDSHIP.] Notwithstanding 92.22 subdivision 7, a county that demonstrates in the plan required 92.23 under subdivision 6 that the provision of alternative employment 92.24 and training service providers would result in financial 92.25 hardship for the county is not required to make available more 92.26 than one employment and training provider. 92.27 Sec. 40. [256J.51] [EMPLOYMENT AND TRAINING SERVICE 92.28 PROVIDER; ALTERNATE APPROVAL PROCESS.] 92.29 Subdivision 1. [PROVIDER APPLICATION.] An employment and 92.30 training service provider that is not included in a county's 92.31 plan under section 256J.50, subdivision 6, because the county 92.32 has demonstrated financial hardship under subdivision 7 of that 92.33 section, may appeal its exclusion to the commissioner of 92.34 economic security under this section. 92.35 Subd. 2. [APPEAL; ALTERNATE APPROVAL.] (a) An employment 92.36 and training service provider that is not included by a county 93.1 agency in the plan under section 256J.50, subdivision 6, and 93.2 that meets the criteria in paragraph (b), may appeal its 93.3 exclusion to the commissioner of economic security, and may 93.4 request alternative approval by the commissioner of economic 93.5 security to provide services in the county. 93.6 (b) An employment and training services provider that is 93.7 requesting alternative approval must demonstrate to the 93.8 commissioner that the provider meets the standards specified in 93.9 section 268.871, subdivision 1, paragraph (b), except that the 93.10 provider's past experience may be in services and programs 93.11 similar to those specified in section 268.871, subdivision 1, 93.12 paragraph (b). 93.13 Subd. 3. [COMMISSIONER'S REVIEW.] The commissioner must 93.14 act on a request for alternative approval under this section 93.15 within 30 days of the receipt of the request. If after 93.16 reviewing the provider's request, and the county's plan 93.17 submitted under section 256J.50, subdivision 6, the commissioner 93.18 determines that the provider meets the criteria under 93.19 subdivision 2, paragraph (b), and that approval of the provider 93.20 would not cause financial hardship to the county, the county 93.21 must submit a revised plan under subdivision 4 that includes the 93.22 approved provider. 93.23 Subd. 4. [REVISED PLAN REQUIRED.] The commissioner of 93.24 economic security must notify the county agency when the 93.25 commissioner grants an alternative approval to an employment and 93.26 training service provider under subdivision 2. Upon receipt of 93.27 the notice, the county agency must submit a revised plan under 93.28 section 256J.50, subdivision 6, that includes the approved 93.29 provider. The county has 90 days from the receipt of the 93.30 commissioner's notice to submit the revised plan. 93.31 Subd. 5. [REVIEW NOT REQUIRED.] Notwithstanding 93.32 subdivision 3, once a county meets the requirements of section 93.33 256J.50, subdivision 7, the commissioner may, but is not 93.34 required to, act on a request by an employment and training 93.35 services provider for alternative approval in that county. 93.36 Sec. 41. [256J.515] [OVERVIEW OF EMPLOYMENT AND TRAINING 94.1 SERVICES.] 94.2 During the first meeting with participants, job counselors 94.3 must provide an overview of employment and training services 94.4 that stresses the necessity and opportunity of immediate 94.5 employment, outlines the job search resources offered, explains 94.6 the requirements to comply with an employment plan and the 94.7 consequences for failing to comply, and explains the services 94.8 that are available to support job search and work. 94.9 Sec. 42. [256J.52] [ASSESSMENTS; PLANS.] 94.10 Subdivision 1. [APPLICATION LIMITED TO CERTAIN 94.11 PARTICIPANTS.] This section applies to participants receiving 94.12 MFIP-S assistance who are not exempt under section 256J.56, and 94.13 to caregivers who volunteer for employment and training services 94.14 under section 256J.50. 94.15 Subd. 2. [INITIAL ASSESSMENT.] (a) The job counselor must, 94.16 with the cooperation of the participant, assess the 94.17 participant's ability to obtain and retain employment. This 94.18 initial assessment must include a review of the participant's 94.19 education level, prior employment or work experience, 94.20 transferable work skills, and existing job markets. 94.21 (b) In assessing the participant, the job counselor must 94.22 determine if the participant needs refresher courses for 94.23 professional certification or licensure. If one or more 94.24 refresher courses are needed, the job search support plan under 94.25 subdivision 3 must include the courses necessary to obtain the 94.26 certification or licensure, in addition to other work 94.27 activities, provided the combination of the refresher courses 94.28 and other work activities are at least for 40 hours per week. 94.29 After obtaining the license or certificate, the participant must 94.30 comply with the provisions of subdivision 5. 94.31 (c) If a participant can demonstrate to the satisfaction of 94.32 the county agency that lack of proficiency in English is a 94.33 barrier to obtaining suitable employment, the provider may 94.34 include participation in an intensive English as a second 94.35 language program, in the participant's employment plan under 94.36 subdivision 5. 95.1 (d) A participant who, at the time of the initial 95.2 assessment under this section, is in an education program that 95.3 satisfies the criteria in section 256J.53, may, with the 95.4 approval of the job counselor, postpone job search. The 95.5 participant must be assessed under subdivision 4, and an 95.6 employment plan that includes completion of the education 95.7 program must be developed. 95.8 (e) A participant who, at the time of the initial 95.9 assessment, presents a plan that includes farming as a 95.10 self-employed work activity must have an employment plan 95.11 developed under subdivision 5 that includes the farming as an 95.12 approved work activity. 95.13 Subd. 3. [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 95.14 after the initial assessment, the job counselor determines that 95.15 the participant possesses sufficient skills that the participant 95.16 is likely to succeed in obtaining suitable employment, the 95.17 participant must conduct job search for a period of up to four 95.18 weeks, for the number of hours per week required under federal 95.19 participation standards or 30 hours per week, whichever is 95.20 greater. The participant must accept any offer of suitable 95.21 employment. The job counselor and participant must develop a 95.22 job search support plan which specifies, at a minimum: whether 95.23 the job search is to be supervised or unsupervised; support 95.24 services that will be provided while the participant conducts 95.25 job search activities; the refresher courses necessary for 95.26 professional certification or licensure, if applicable; and how 95.27 frequently the participant must report to the job counselor on 95.28 the status of the participant's job search activities. 95.29 (b) If at the end of four weeks the participant has not 95.30 obtained suitable employment, the job counselor must review the 95.31 participant's job search support plan and must either direct the 95.32 participant to conduct an additional four weeks of job search or 95.33 must conduct a secondary assessment of the participant under 95.34 subdivision 4. A participant shall not be required to conduct 95.35 more than a total of eight weeks of job search under this 95.36 subdivision. 96.1 Subd. 4. [SECONDARY ASSESSMENT.] (a) The job counselor 96.2 must conduct a secondary assessment for those participants who: 96.3 (1) in the judgment of the job counselor, have barriers to 96.4 obtaining and retaining employment that will not be overcome 96.5 with a job search support plan under subdivision 3; or 96.6 (2) have completed at least four weeks of job search under 96.7 subdivision 3 without obtaining suitable employment; or 96.8 (3) have not received a secondary assessment, are working 96.9 at least 20 hours per week, and the participant, job counselor, 96.10 or county agency requests a secondary assessment. 96.11 (b) In the secondary assessment the job counselor must 96.12 evaluate the participant's skills and prior work experience, 96.13 family circumstances, interests and abilities, need for 96.14 preemployment activities, supportive or educational services, 96.15 and the extent of any barriers to employment. The job counselor 96.16 must use the information gathered through the secondary 96.17 assessment to develop an employment plan under subdivision 5. 96.18 Subd. 5. [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 96.19 secondary assessment under subdivision 4, the job counselor and 96.20 the participant must develop an employment plan for the 96.21 participant that includes specific activities that are designed 96.22 to move the participant along the most direct path to 96.23 unsubsidized employment. 96.24 If the participant has an employment goal which can best be 96.25 met with additional education or training and is expected to 96.26 result in higher wages than the participant could earn without 96.27 the additional education or training, the participant, in 96.28 consultation with the job counselor, may propose an employment 96.29 plan that includes activities approved under the criteria of 96.30 section 256J.53. 96.31 The employment plan must list the specific steps that will 96.32 be taken to obtain employment and a timetable for completion of 96.33 each of the steps. The job counselor and the participant must 96.34 sign the developed plan to indicate agreement between the job 96.35 counselor and the participant on the contents of the plan. 96.36 (b) For a parent in a two-parent family who is required to 97.1 participate in the employment and training services component of 97.2 MFIP-S, activities that are considered for the participant's 97.3 plan must generally be limited to those listed in section 97.4 256J.49, subdivision 12, clauses (1) to (17), (22), and (24). 97.5 Activities listed in clauses (18) to (21), (23), (25), and (26) 97.6 of that subdivision may be included on an exception basis. 97.7 Subd. 6. [SAFETY PLAN.] Notwithstanding subdivisions 1 to 97.8 5, a participant who is a victim of domestic violence and who 97.9 agrees to develop or has developed a safety plan meeting the 97.10 definition under section 256J.49, subdivision 11, is deferred 97.11 from the requirements of this section and sections 256J.54 and 97.12 256J.55 for a period three months from the date the participant 97.13 agreed to develop the plan. A participant deferred under this 97.14 subdivision must submit a safety plan status report to the 97.15 county agency on a quarterly basis. Based on a review of the 97.16 status report, the county agency may renew the participant's 97.17 deferral each quarter, provided the personal safety of the 97.18 participant is still at risk and the participant is complying 97.19 with the safety plan. A participant who is deferred under this 97.20 subdivision may be deferred for a total of 12 months under a 97.21 safety plan, provided the individual is complying with the terms 97.22 of the plan. 97.23 Subd. 7. [MINOR PARENTS; ASSESSMENT.] An MFIP-S caregiver 97.24 who is under the age of 20 must be assessed and have a plan 97.25 developed as provided in section 256J.54. 97.26 Subd. 8. [REVISION OF PLAN.] If the employee has lost or 97.27 quit a job with good cause, the job counselor must ascertain the 97.28 reason for the job loss and work with the participant to amend 97.29 the job search support plan or employment plan, whichever is in 97.30 effect, as necessary to address the problem. If a job search 97.31 support plan is in effect, the participant, county agency, or 97.32 job counselor may request a secondary assessment at this time. 97.33 Subd. 9. [SELF-EMPLOYMENT; ANNUAL REVIEW.] If the 97.34 participant's work activity includes self-employment, after each 97.35 twelve month period of self-employment the job counselor must 97.36 review the participant's circumstances to determine if the 98.1 participant is making adequate progress towards self-sufficiency. 98.2 If after the review the job counselor determines that the 98.3 participant is not making adequate progress towards 98.4 self-sufficiency, the job counselor must work with the 98.5 participant to amend the participant's employment plan as 98.6 necessary to address the problem. If no employment plan is in 98.7 effect, the participant, county agency, or job counselor may 98.8 request a secondary assessment at this time. 98.9 Sec. 43. [256J.53] [POST-SECONDARY EDUCATION; LIMITATIONS 98.10 ON APPROVAL, JOB SEARCH REQUIREMENT.] 98.11 Subdivision 1. [LENGTH OF PROGRAM.] In order for a 98.12 post-secondary education or training program to be approved work 98.13 activity as defined in section 256J.49, subdivision 13, clause 98.14 (18), it must be a program lasting 12 months or less, and the 98.15 participant must meet the requirements of subdivisions 2 and 3. 98.16 A program lasting up to 24 months may be approved on an 98.17 exception basis if the conditions specified in subdivisions 2 to 98.18 4 are met. A participant may not be approved for more than a 98.19 total of 24 months of post-secondary education or training, 98.20 including any months of education or training in a STRIDE or 98.21 ACCESS plan that is continued under section 256J.50, subdivision 98.22 3a. 98.23 Subd. 2. [DOCUMENTATION SUPPORTING PROGRAM.] In order for 98.24 a post-secondary education or training program to be an approved 98.25 activity in a participant's employment plan, the participant or 98.26 the employment and training service provider must provide 98.27 documentation that: 98.28 (1) the participant's employment plan identifies specific 98.29 goals that can only be met with the additional education or 98.30 training; 98.31 (2) there are suitable employment opportunities that 98.32 requires the specific education or training in the area in which 98.33 the participant resides or is willing to reside; 98.34 (3) the education or training will result in significantly 98.35 higher wages for the participant than the participant could earn 98.36 without the education or training; 99.1 (4) the participant can meet the requirements for admission 99.2 into the program; and 99.3 (5) there is a reasonable expectation that the participant 99.4 will complete the training program based on such factors as the 99.5 participant's MFIP-S assessment, previous education, training, 99.6 and work history; current motivation; and changes in previous 99.7 circumstances. 99.8 Subd. 3. [SATISFACTORY PROGRESS REQUIRED.] In order for a 99.9 post-secondary education or training program to be an approved 99.10 activity in a participant's employment plan, the participant 99.11 must maintain satisfactory progress in the program. 99.12 "Satisfactory progress" in an education or training program 99.13 means the participant remains in good standing after completion 99.14 of the second grading period, and maintains at least a 99.15 cumulative grade point average of C or its equivalent while the 99.16 participant is enrolled in the program, as defined by the 99.17 education or training institution, and the participant meets the 99.18 requirements of the participant's employment plan. 99.19 Subd. 4. [REPAYMENT OF EMPLOYMENT AND TRAINING 99.20 ASSISTANCE.] In order for a post-secondary education or training 99.21 program lasting between 13 and 24 months to be an approved 99.22 activity in a participant's employment plan, the participant 99.23 must maintain satisfactory progress in the program and must 99.24 agree to repay the amount of employment and training funds paid 99.25 by the county to support the individual's participation in each 99.26 month of an education or training program after the 12th month 99.27 of the program. Assistance obtained by the participant through 99.28 the federal Pell grant program or other federal or state 99.29 programs of higher education assistance must be excluded from 99.30 the amount to be repaid by the participant. The participant and 99.31 the county agency must develop a mutually acceptable repayment 99.32 plan. The repayment plan must not assess any interest charges 99.33 on the cost of the funds to be repaid. The loan is considered 99.34 to be in repayment status when: 99.35 (1) the participant completes the program and obtains 99.36 employment that pays annual wages that are at least equal to 150 100.1 percent of the federal poverty level; or 100.2 (2) the participant leaves the program before completion of 100.3 the program and obtains employment that pays annual wages that 100.4 are at least equal to 150 percent of the federal poverty level. 100.5 Subd. 5. [JOB SEARCH AFTER COMPLETION OF POST-SECONDARY 100.6 EDUCATION OR TRAINING.] Regardless of the length of the program, 100.7 if a participant's employment plan includes a post-secondary 100.8 education or training program, the plan must include the 100.9 anticipated completion date of the program. At the time the 100.10 education or training is completed, the participant must 100.11 participate in job search. If after three months of job search 100.12 the participant does not find a job that is consistent with the 100.13 participant's employment goals, the participant must accept any 100.14 offer of suitable employment. 100.15 Sec. 44. [256J.54] [MINOR PARENTS; EMPLOYMENT PLAN.] 100.16 Subdivision 1. [ASSESSMENT OF EDUCATIONAL PROGRESS AND 100.17 NEEDS.] The county agency must document the educational level of 100.18 each MFIP-S caregiver who is under the age of 20 and determine 100.19 if the caregiver has obtained a high school diploma or its 100.20 equivalent. If the caregiver has not obtained a high school 100.21 diploma or its equivalent, and is not exempt from the 100.22 requirement to attend school under subdivision 5, the county 100.23 agency must complete an individual assessment for the 100.24 caregiver. The assessment must be performed as soon as possible 100.25 but within 30 days of determining MFIP-S eligibility for the 100.26 caregiver. The assessment must provide an initial examination 100.27 of the caregiver's educational progress and needs, literacy 100.28 level, child care and supportive service needs, family 100.29 circumstances, skills, and work experience. In the case of a 100.30 caregiver under the age of 18, the assessment must also consider 100.31 the results of either the caregiver's or the caregiver's minor 100.32 child's child and teen checkup under Minnesota Rules, parts 100.33 9505.0275 and 9505.1693 to 9505.1748, if available, and the 100.34 effect of a child's development and educational needs on the 100.35 caregiver's ability to participate in the program. The county 100.36 agency must advise the caregiver that the caregiver's first goal 101.1 must be to complete an appropriate educational option if one is 101.2 identified for the caregiver through the assessment and, in 101.3 consultation with educational agencies, must review the various 101.4 school completion options with the caregiver and assist in 101.5 selecting the most appropriate option. 101.6 Subd. 2. [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 101.7 PLAN.] For caregivers who are under age 18, the assessment under 101.8 subdivision 1 and the employment plan under subdivision 3 must 101.9 be completed by the social services agency under section 101.10 257.33. For caregivers who are age 18 or 19, the assessment 101.11 under subdivision 1 and the employment plan under subdivision 3 101.12 must be completed by the job counselor. The social services 101.13 agency or the job counselor shall consult with representatives 101.14 of educational agencies that are required to assist in 101.15 developing educational plans under section 126.235. 101.16 Subd. 3. [EDUCATIONAL OPTION DEVELOPED.] If the job 101.17 counselor or county social services agency identifies an 101.18 appropriate educational option, it must develop an employment 101.19 plan which reflects the identified option. The plan must 101.20 specify that participation in an educational activity is 101.21 required, what school or educational program is most 101.22 appropriate, the services that will be provided, the activities 101.23 the caregiver will take part in, including child care and 101.24 supportive services, the consequences to the caregiver for 101.25 failing to participate or comply with the specified 101.26 requirements, and the right to appeal any adverse action. The 101.27 employment plan must, to the extent possible, reflect the 101.28 preferences of the caregiver. 101.29 Subd. 4. [NO APPROPRIATE EDUCATIONAL OPTION.] If the job 101.30 counselor determines that there is no appropriate educational 101.31 option for a caregiver who is age 18 or 19, the job counselor 101.32 must develop an employment plan, as defined in section 256J.49, 101.33 subdivision 5, for the caregiver. The department plan must 101.34 require the caregiver to accept any suitable employment. 101.35 Subd. 5. [SCHOOL ATTENDANCE REQUIRED.] (a) Notwithstanding 101.36 the provisions of section 256J.56, minor parents, or 18- or 102.1 19-year-old parents without a high school diploma or its 102.2 equivalent must attend school unless: 102.3 (1) transportation services needed to enable the caregiver 102.4 to attend school are not available; 102.5 (2) licensed or legal nonlicensed child care services 102.6 needed to enable the caregiver to attend school are not 102.7 available; 102.8 (3) the caregiver is ill or incapacitated seriously enough 102.9 to prevent attendance at school; or 102.10 (4) the caregiver is needed in the home because of the 102.11 illness or incapacity of another member of the household. This 102.12 includes a caregiver of a child who is younger than six weeks of 102.13 age. 102.14 (b) The caregiver must be enrolled in a secondary school 102.15 and meeting the school's attendance requirements. An enrolled 102.16 caregiver is considered to be meeting the attendance 102.17 requirements when the school is not in regular session, 102.18 including during holiday and summer breaks. 102.19 Sec. 45. [256J.55] [PARTICIPANT REQUIREMENTS, RIGHTS, AND 102.20 EXPECTATIONS.] 102.21 Subdivision 1. [COMPLIANCE WITH EMPLOYMENT PLAN; SUITABLE 102.22 EMPLOYMENT.] (a) Each MFIP-S participant must comply with the 102.23 terms of the participant's job search support plan or employment 102.24 plan. When the participant has completed the steps listed in 102.25 the employment plan, the participant must not refuse any offer 102.26 of suitable employment. The participant may choose to accept an 102.27 offer of suitable employment before the participant has 102.28 completed the steps of the employment plan. 102.29 (b) For a participant under the age of 20 who is without a 102.30 high school diploma or general educational development diploma, 102.31 the requirement to comply with the terms of the employment plan 102.32 means the participant must meet the requirements of section 102.33 256J.54. 102.34 (c) Failure to develop or comply with a job search support 102.35 plan or employment plan, or quitting suitable employment without 102.36 good cause, shall result in the imposition of a sanction as 103.1 specified in sections 256J.57 and 256J.46. 103.2 (d) Notwithstanding paragraph (a), a participant who has 103.3 completed a post-secondary education or training program may 103.4 take up to three months to find a job that is consistent with 103.5 the participant's employment goal before the participant is 103.6 required to accept any offer of suitable employment. 103.7 Subd. 2. [DUTY TO REPORT.] The participant must inform the 103.8 job counselor within three working days regarding any changes 103.9 related to the participant's employment status. 103.10 Subd. 3. [MOVE TO A DIFFERENT COUNTY.] MFIP-S applicants 103.11 or recipients who move to a different county in Minnesota and 103.12 are required to participate in employment and training services 103.13 are subject to the requirements of the destination county. An 103.14 employment plan that was developed in the county of origin may 103.15 be continued in the destination county if both the destination 103.16 county and the participant agree to do so. 103.17 Subd. 4. [CHOICE OF PROVIDER.] A participant must be able 103.18 to choose from at least two employment and training service 103.19 providers, unless the county has demonstrated to the 103.20 commissioner that the provision of multiple employment and 103.21 training service providers would result in financial hardship 103.22 for the county, or the county is utilizing a workforce center as 103.23 specified in section 256J.50, subdivision 7. 103.24 Subd. 5. [OPTION TO UTILIZE EXISTING PLAN.] If a 103.25 participant is already complying with a job search support or 103.26 employment plan that was developed for a different program, the 103.27 participant may utilize that plan and that program's services, 103.28 subject to the requirements of subdivision 3, to be in 103.29 compliance with sections 256J.52 to 256J.57 so long as the plan 103.30 meets, or is modified to meet, the requirements of those 103.31 sections. 103.32 Sec. 46. [256J.56] [EMPLOYMENT AND TRAINING SERVICES 103.33 COMPONENT; EXEMPTIONS.] 103.34 An MFIP-S caregiver is exempt from the requirements of 103.35 sections 256J.52 to 256J.55 if the caregiver belongs to any of 103.36 the following groups: 104.1 (1) individuals who are age 60 or older; 104.2 (2) individuals who are suffering from a professionally 104.3 certified permanent or temporary illness, injury, or incapacity 104.4 which is expected to continue for more than 30 days and which 104.5 prevents the person from obtaining or retaining employment. 104.6 Persons in this category with a temporary illness, injury, or 104.7 incapacity must be reevaluated every 30 days, unless the 104.8 certification specifies a different length of time before 104.9 reevaluation; 104.10 (3) caregivers whose presence in the home is required 104.11 because of the professionally certified illness or incapacity of 104.12 another member in the household; 104.13 (4) women who are pregnant, if the pregnancy has resulted 104.14 in a professionally certified incapacity that prevents the woman 104.15 from obtaining or retaining employment; 104.16 (5) caregivers of a child under the age of one year who 104.17 personally provide full-time care for the child. This exemption 104.18 may be used only once in a lifetime. In two-parent households, 104.19 only one parent or other relative may qualify for this 104.20 exemption; 104.21 (6) individuals employed at least 40 hours per week or at 104.22 least 30 hours per week and engaged in job search for at least 104.23 an additional ten hours per week; 104.24 (7) individuals experiencing a personal or family crisis 104.25 that is professionally certified to make them incapable of 104.26 participating in the program, as determined by the county 104.27 agency. Persons in this category must be reevaluated every 60 104.28 days; or 104.29 (8) second parents in two-parent families, provided the 104.30 second parent is employed for 20 or more hours per week. 104.31 A caregiver who is exempt under clause (5) must enroll in 104.32 and attend an early childhood and family education class, a 104.33 parenting class, or some similar activity during the period of 104.34 time the caregiver is exempt under this section. 104.35 Sec. 47. [256J.57] [GOOD CAUSE; FAILURE TO COMPLY; NOTICE; 104.36 CONCILIATION CONFERENCE.] 105.1 Subdivision 1. [GOOD CAUSE FOR FAILURE TO COMPLY.] (a) The 105.2 county agency shall not impose a sanction under section 256J.46 105.3 if the county agency or the job counselor determines that the 105.4 participant has good cause for failing to comply with the 105.5 requirements of sections 256J.52 to 256J.55. Good cause exists 105.6 when: 105.7 (1) needed child care is not available; 105.8 (2) the job does not meet the definition of suitable 105.9 employment under section 256J.49; 105.10 (3) the participant is ill or injured; 105.11 (4) a family member is ill or disabled and needs care by 105.12 the participant that prevents the participant from complying 105.13 with the employment plan; 105.14 (5) the participant is unable to secure necessary 105.15 transportation; 105.16 (6) the participant is in an emergency situation that 105.17 prevents compliance with the job search support or employment 105.18 plan; 105.19 (7) the schedule of compliance with the job search support 105.20 or employment plan conflicts with judicial proceedings; 105.21 (8) the participant is already participating in acceptable 105.22 work activities; 105.23 (9) the employment plan requires an educational program for 105.24 a caregiver under age 20, but the educational program is not 105.25 available in the school district; 105.26 (10) activities identified in the job search support or 105.27 employment plan are not available; 105.28 (11) the participant is willing to accept suitable 105.29 employment, but suitable employment is not available; and 105.30 (12) the participant documents other verifiable impediments 105.31 to compliance with the job search support or employment plan 105.32 that are beyond the participant's control. 105.33 (b) The job search support plan or employment plan of a 105.34 participant who has been granted a good cause exception under 105.35 this section must be reviewed by the job counselor or county 105.36 agency, and must be revised as appropriate to improve the 106.1 participant's ability to comply with the plan requirements, so 106.2 that the participant will be less likely to make another good 106.3 cause claim under this section. 106.4 Subd. 2. [NOTICE OF INTENT TO SANCTION.] (a) When a 106.5 participant fails without good cause to comply with the 106.6 requirements of sections 256J.52 to 256J.55, the job counselor 106.7 or the county agency must provide a notice of intent to sanction 106.8 to the participant specifying the program requirements that were 106.9 not complied with, informing the participant that the county 106.10 agency will impose the sanctions specified in section 256J.46, 106.11 and informing the participant of the opportunity to request a 106.12 conciliation conference as specified in paragraph (b). The 106.13 notice must also state that the participant's continuing 106.14 noncompliance with the specified requirements for more than one 106.15 month will result in additional sanctions under section 256J.46, 106.16 without the need for additional notices or conciliation 106.17 conferences under this subdivision. If the job counselor 106.18 provides the required notice, the job counselor must 106.19 simultaneously notify the county agency that the participant has 106.20 failed to comply and request that the county agency impose the 106.21 sanctions in section 256J.46. The county must then send a 106.22 notice of adverse action to the participant informing the 106.23 participant of the sanction that will be imposed, the reasons 106.24 for the sanction, the effective date of the sanction, and the 106.25 participant's right to have a fair hearing under section 256J.40. 106.26 (b) The participant may request a conciliation conference 106.27 by sending a written request, by making a telephone request, or 106.28 by making an in-person request. The request must be received 106.29 within ten calendar days of the date the county agency mailed 106.30 the ten-day notice of intent to sanction. If a timely request 106.31 for a conciliation is received, the county agency's service 106.32 provider must conduct the conference within five days of the 106.33 request. The job counselor's supervisor, or a designee of the 106.34 supervisor, must review the outcome of the conciliation 106.35 conference. If the conciliation conference resolves the 106.36 noncompliance, the job counselor must promptly inform the county 107.1 agency and request withdrawal of the sanction notice. 107.2 (c) Upon receiving a sanction notice, the participant may 107.3 request a fair hearing under section 256J.40, without exercising 107.4 the option of a conciliation conference. In such cases, the 107.5 county agency shall not require the participant to engage in a 107.6 conciliation conference prior to the fair hearing. 107.7 (d) If the participant requests a fair hearing or a 107.8 conciliation conference, sanctions will not be imposed until 107.9 there is a determination of noncompliance. Sanctions must be 107.10 imposed as provided in section 256J.46. 107.11 Sec. 48. [256J.60] [COUNTY EMPLOYMENT AND TRAINING 107.12 PERFORMANCE STANDARDS.] 107.13 Subdivision 1. [TWO-STAGE SET OF PERFORMANCE STANDARDS.] 107.14 The department shall adopt a two-stage set of employment and 107.15 training services performance standards. The first-stage 107.16 standards are mandatory for all counties and are intended to 107.17 enable the state to achieve the federal participation 107.18 standards. The second-stage standards are intended to reward 107.19 counties for performance that exceeds the mandatory standards. 107.20 Only those counties that meet the first-stage standards are 107.21 eligible for the second-stage standards. 107.22 Subd. 2. [FIRST-STAGE PERFORMANCE STANDARDS.] Each county 107.23 must independently meet the federal participation standards. 107.24 Failure to meet the federal participation standards will result 107.25 in a sanction as specified in subdivision 3. Only counties that 107.26 meet the federal participation standards are eligible for 107.27 incentives under subdivision 5. 107.28 Subd. 3. [APPORTIONMENT OF FEDERAL PARTICIPATION STANDARDS 107.29 SANCTIONS.] (a) If the state as a whole fails to achieve the 107.30 federal participation standards specified in section 256J.49, 107.31 subdivision 6, and is sanctioned by the federal government, the 107.32 fiscal penalty will be apportioned to the state and the counties 107.33 using the following method: 107.34 (1) the full sanction amount shall be multiplied by 50 107.35 percent. This is the state's share of the sanction; 107.36 (2) the nonstate share of the sanction shall be distributed 108.1 across all counties in direct proportion to their employment and 108.2 training services allocation for the year for which the sanction 108.3 was imposed. For counties that did not meet the federal 108.4 participation standards, this amount is the fiscal penalty that 108.5 shall be imposed on those counties; 108.6 (3) the amount computed in clause (2) shall be divided by 108.7 two. This is the fiscal penalty that shall be imposed on 108.8 counties that met the federal participation standards for the 108.9 year for which the sanction was imposed; 108.10 (4) under any circumstance, the sanction applied to any 108.11 county shall not exceed one-third of its employment and training 108.12 services allocation for the year for which the sanction was 108.13 imposed; and 108.14 (5) after applying clauses (1) to (4), any remaining 108.15 unattributed portion of the federal sanction shall be assumed by 108.16 the state. 108.17 (b) A county that fails to achieve the participation 108.18 standards specified in section 256J.49, subdivision 6, will be 108.19 subject to a review of its employment and training services 108.20 program under section 268.86, subdivision 2. The commissioners 108.21 of human services and economic security must work with the 108.22 county agency to assess and revise the county's programs, in 108.23 order to improve the county's ability to achieve the 108.24 participation standards in the following year. 108.25 (c) If, in a given year, the state as a whole has met the 108.26 participation standards specified in section 256J.49, 108.27 subdivision 6, a county for which the given year is the second 108.28 consecutive year in which the performance standards were not met 108.29 shall, in addition to a department review of the county program, 108.30 be subject to a fiscal sanction of an amount equal to 20 percent 108.31 of the total employment and training services allocation for the 108.32 second year in which the standards were not met. 108.33 (d) The sanction, as specified in paragraph (a) or (c), 108.34 shall be adjusted to account for variations in county 108.35 demographic and economic conditions. The commissioner shall 108.36 develop a method for this adjustment by January 1, 1998. 109.1 (e) A county may not pay its share of any federal or 109.2 state-imposed fiscal sanction from the county's employment and 109.3 training services allocation. Each county must maintain 109.4 employment and training services funding at the full allocation 109.5 level, regardless of any penalties that are imposed. 109.6 Subd. 4. [SECOND-STAGE PERFORMANCE STANDARDS.] (a) 109.7 Beginning July 1, 1998, and each quarter thereafter, the 109.8 commissioner of human services shall inform all counties of each 109.9 county's performance on the following measures: 109.10 (i) MFIP-S caseload reduction; 109.11 (ii) average placement wage rate; 109.12 (iii) rate of job retention after three months; 109.13 (iv) placement rate into unsubsidized jobs; and 109.14 (v) federal participation requirements as specified in 109.15 section 256J.49, subdivision 6. 109.16 (b) By July 1, 1999, the commissioner shall establish 109.17 performance standards for each of the measures in this 109.18 subdivision, and recommend to the legislature any changes to the 109.19 measures specified in this subdivision that would ensure 109.20 performance standards are developed to achieve the purposes of 109.21 this section. 109.22 Subd. 5. [INCENTIVE FUND.] (a) Beginning July 1, 2000, and 109.23 in each subsequent state fiscal year, the commissioner shall 109.24 withhold from allocation to counties five percent of the total 109.25 annual MFIP-S employment and training services appropriation in 109.26 an incentive fund to be awarded to counties that have met the 109.27 standards specified under subdivision 4 during the previous 109.28 fiscal year. 109.29 (b) Twenty percent of the total incentive fund shall be 109.30 reserved for each of the five measures specified in subdivision 109.31 4. On July 1, 2000, all counties that have met a given standard 109.32 during the previous state fiscal year shall share the incentive 109.33 fund monies for that standard. Each county's share of a 109.34 standard's incentive money shall be the same percent as its 109.35 MFIP-S employment and training services allocation for the 109.36 previous state fiscal year is of the sum of the allocations to 110.1 the counties that qualify to share in the incentive for a given 110.2 measure. 110.3 (c) At the discretion of the commissioner, during the first 110.4 two years of the incentive fund, incentive fund money may be 110.5 used as a contingency fund to cover unanticipated county costs 110.6 of implementing the employment and training services component 110.7 of MFIP-S. 110.8 (d) If no county achieves the second-stage standards, the 110.9 entire incentive fund, minus any amount expended under paragraph 110.10 (c), shall be allocated to all counties in direct proportion to 110.11 their original employment and training services allocation. 110.12 Sec. 49. [256J.61] [REPORTING REQUIREMENTS.] 110.13 The commissioner of human services, in cooperation with the 110.14 commissioner of economic security, shall develop reporting 110.15 requirements for county agencies and employment and training 110.16 service providers according to section 256.01, subdivision 2, 110.17 paragraph (17). Reporting requirements must, to the extent 110.18 possible, use existing client tracking systems and must be 110.19 within the limits of funds available. The requirements must 110.20 include summary information necessary for state agencies and the 110.21 legislature to evaluate the effectiveness of the services. 110.22 Sec. 50. [256J.62] [ALLOCATION OF COUNTY EMPLOYMENT AND 110.23 TRAINING SERVICES BLOCK GRANT.] 110.24 Subdivision 1. [ALLOCATION.] Money appropriated for MFIP-S 110.25 employment and training services must be allocated to counties 110.26 as specified in this section. 110.27 Subd. 2. [GUARANTEED FLOOR.] First, money shall be 110.28 allocated to counties in an amount equal to the county's 110.29 guaranteed floor. The county's guaranteed floor shall be 110.30 calculated as follows: 110.31 (1) for fiscal 1998, the guaranteed floor shall be 110.32 calculated by multiplying the county's STRIDE allocation 110.33 received for state fiscal year 1997 by 90 percent; 110.34 (2) for each subsequent fiscal year, the guaranteed floor 110.35 shall be calculated by multiplying the county's MFIP-S 110.36 employment and training services allocation received the 111.1 previous state fiscal year by 90 percent; and 111.2 (3) if the amount of funds available for allocation is less 111.3 than the amount allocated to all counties for the previous 111.4 fiscal year, each county's previous year allocation shall be 111.5 reduced in proportion to the reduction in statewide funding for 111.6 the purpose of establishing the guaranteed floor. 111.7 Subd. 3. [ALLOCATION OF BALANCE OF FUNDS.] If there remain 111.8 funds to allocate after establishing each county's guaranteed 111.9 floor under the provisions in subdivision 2, the balance of 111.10 funds shall be allocated as follows: 111.11 (1) for state fiscal year 1998, the remaining funds shall 111.12 be allocated based on the county's average number of AFDC and 111.13 family general assistance cases as compared to the statewide 111.14 total number of cases. The average number of cases shall be 111.15 based on counts of AFDC and family general assistance cases as 111.16 of March 31, June 30, September 30, and December 31 of calendar 111.17 year 1996; 111.18 (2) for state fiscal year 1999, the remaining funds shall 111.19 be allocated based on the county's average number of AFDC, 111.20 family general assistance, and MFIP-S cases as compared to the 111.21 statewide total number of cases. The average number of cases 111.22 shall be based on counts of AFDC, family general assistance, 111.23 MFIP-R, MFIP, and MFIP-S cases as of March 31, June 30, 111.24 September 30, and December 31 of calendar year 1997; and 111.25 (3) for all subsequent state fiscal years, the remaining 111.26 funds shall be allocated based on the county's average number of 111.27 MFIP-S cases as compared to the statewide total number of 111.28 cases. The average number of cases must be based on counts of 111.29 MFIP-S cases as of March 31, June 30, September 30, and December 111.30 31 of the previous calendar year. 111.31 Subd. 4. [ADMINISTRATIVE ACTIVITIES LIMIT.] No more than 111.32 15 percent of the money allocated under this section may be used 111.33 for administrative activities. 111.34 Subd. 4a. [STRIDE ALLOCATION.] Funds allocated for STRIDE 111.35 services for state fiscal year 1998 are allocated to county 111.36 agencies based on the provisions of statute in effect on June 112.1 30, 1997. At the time that the AFDC program is replaced by the 112.2 Temporary Assistance for Needy Families program under title I of 112.3 Public Law Number 104-193 of the Personal Responsibility and 112.4 Work Opportunity Reconciliation Act of 1996, any unexpended 112.5 balance of a county's STRIDE allocation for that fiscal year 112.6 remains available to the county for operation of MFIP-S 112.7 employment and training services and for the operation of the 112.8 STRIDE program for the MFIP and MFIP-R field trial counties for 112.9 the balance of the fiscal year. These STRIDE funds shall be 112.10 included in the calculation of the next year's MFIP-S employment 112.11 and training allocation under the provisions of subdivision 2. 112.12 Subd. 5. [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 112.13 REFUGEES.] Funds appropriated to cover the costs of bilingual 112.14 employment and training services to refugees shall be allocated 112.15 to county agencies as follows: 112.16 (1) for state fiscal year 1998, the allocation shall be 112.17 based on the county's proportion of the total statewide number 112.18 of AFDC refugee cases in the previous fiscal year. Counties 112.19 with less than one percent of the statewide number of AFDC, 112.20 MFIP-R, or MFIP refugee cases shall not receive an allocation of 112.21 bilingual employment and training services funds; and 112.22 (2) for each subsequent fiscal year, the allocation shall 112.23 be based on the county's proportion of the total statewide 112.24 number of MFIP-S refugee cases in the previous fiscal year. 112.25 Counties with less than one percent of the statewide number of 112.26 MFIP-S refugee cases shall not receive an allocation of 112.27 bilingual employment and training services funds. 112.28 Subd. 6. [WORK LITERACY LANGUAGE PROGRAMS.] Funds 112.29 appropriated to cover the costs of work literacy language 112.30 programs to non-English speaking participants shall be allocated 112.31 to county agencies as follows: 112.32 (1) for state fiscal year 1998, the allocation shall be 112.33 based on the county's proportion of the total statewide number 112.34 of AFDC or MFIP cases in the previous fiscal year where the lack 112.35 of English is a barrier to employment. Counties with less than 112.36 two percent of the statewide number of AFDC or MFIP cases where 113.1 the lack of English is a barrier to employment shall not receive 113.2 an allocation of the work literacy language program funds; and 113.3 (2) for each subsequent fiscal year, the allocation shall 113.4 be based on the county's proportion of the total statewide 113.5 number of MFIP-S cases in the previous fiscal year where the 113.6 lack of English is a barrier to employment. Counties with less 113.7 than two percent of the statewide number of MFIP-S cases where 113.8 the lack of English is a barrier to employment shall not receive 113.9 an allocation of the work literacy language program funds. 113.10 Subd. 7. [REALLOCATION.] The commissioner of human 113.11 services shall review county agency expenditures of MFIP-S 113.12 employment and training services funds at the end of the third 113.13 quarter of the first year of the biennium and each quarter after 113.14 that and may reallocate unencumbered or unexpended money 113.15 appropriated under this section to those county agencies that 113.16 can demonstrate a need for additional money. 113.17 Subd. 8. [CONTINUATION OF CERTAIN SERVICES.] At county 113.18 option and with the agreement of the participant, the provider 113.19 may continue to provide case management, counseling or other 113.20 support services to a participant following the participant's 113.21 achievement of the employment goal, regardless of the 113.22 participant's eligibility for MFIP-S. 113.23 A county may expend funds for a specific employment and 113.24 training service for the duration of that service to a 113.25 participant if the funds are obligated or expended prior to the 113.26 participant losing MFIP-S eligibility. 113.27 Sec. 51. [256J.645] [INDIAN TRIBE MFIP-S EMPLOYMENT AND 113.28 TRAINING.] 113.29 Subdivision 1. [AUTHORIZATION TO ENTER INTO 113.30 AGREEMENTS.] The commissioner may enter into agreements with 113.31 federally recognized Indian tribes with a reservation in the 113.32 state to provide MFIP-S employment and training services to 113.33 members of the Indian tribe and to other caregivers who are a 113.34 part of the tribal member's MFIP-S assistance unit. For 113.35 purposes of this section, "Indian tribe" means a tribe, band, 113.36 nation, or other federally recognized group or community of 114.1 Indians. The commissioner may also enter into an agreement with 114.2 a consortium of Indian tribes providing the governing body of 114.3 each Indian tribe in the consortium complies with the provisions 114.4 of this section. 114.5 Subd. 2. [TRIBAL REQUIREMENTS.] The Indian tribe must: 114.6 (1) agree to fulfill the responsibilities provided under 114.7 the employment and training component of MFIP-S regarding 114.8 operation of MFIP-S employment and training services, as 114.9 designated by the commissioner; 114.10 (2) operate its employment and training services program 114.11 within a geographic service area not to exceed the counties 114.12 within which a border of the reservation falls; 114.13 (3) operate its program in conformity with section 13.46 114.14 and any applicable federal regulations in the use of data about 114.15 MFIP-S recipients; 114.16 (4) coordinate operation of its program with the county 114.17 agency, Job Training Partnership Act programs, and other support 114.18 services or employment-related programs in the counties in which 114.19 the tribal unit's program operates; 114.20 (5) provide financial and program participant activity 114.21 recordkeeping and reporting in the manner and using the forms 114.22 and procedures specified by the commissioner and permit 114.23 inspection of its program and records by representatives of the 114.24 state; and 114.25 (6) have the Indian tribe's employment and training service 114.26 provider certified by the commissioner of economic security, or 114.27 approved by the county. 114.28 Subd. 3. [FUNDING.] (a) If the commissioner and an Indian 114.29 tribe are parties to an agreement under this subdivision, the 114.30 agreement may annually provide to the Indian tribe the funding 114.31 amount in clause (1) or (2): 114.32 (1) if the Indian tribe operated a tribal STRIDE program 114.33 during state fiscal year 1997, the amount to be provided is the 114.34 amount the Indian tribe received from the state for operation of 114.35 its tribal STRIDE program in state fiscal year 1997, except that 114.36 the amount provided for a fiscal year may increase or decrease 115.1 in the same proportion that the total amount of state funds 115.2 available for MFIP-S employment and training services increased 115.3 or decreased that fiscal year. No additional funds shall be 115.4 provided to the tribe under this clause for the first year of 115.5 expansion of MFIP beyond the pilot counties; or 115.6 (2) if the Indian tribe did not operate a tribal STRIDE 115.7 program during state fiscal year 1997, the commissioner may 115.8 provide to the Indian tribe for the first year of operations the 115.9 amount determined by multiplying the state allocation for MFIP-S 115.10 employment and training services to each county agency in the 115.11 Indian tribe's service delivery area by the percentage of MFIP-S 115.12 recipients in that county who were members of the Indian tribe 115.13 during the previous state fiscal year. The resulting amount 115.14 shall also be the amount that the commissioner may provide to 115.15 the Indian tribe annually thereafter through an agreement under 115.16 this subdivision, except that the amount provided for a fiscal 115.17 year may increase or decrease in the same proportion that the 115.18 total amount of state funds available for MFIP-S employment and 115.19 training services increased or decreased that fiscal year. No 115.20 additional funds shall be provided to the tribe under this 115.21 clause for the first year of expansion of MFIP beyond the pilot 115.22 counties. 115.23 (b) Indian tribal members receiving MFIP-S benefits and 115.24 residing in the service area of an Indian tribe operating 115.25 employment and training services under an agreement with the 115.26 commissioner must be referred by county agencies in the service 115.27 area to the Indian tribe for employment and training services. 115.28 Sec. 52. [256J.65] [THE SELF-EMPLOYMENT INVESTMENT 115.29 DEMONSTRATION PROGRAM (SEID).] 115.30 (a) A caregiver who enrolls and participates in the SEID 115.31 program as specified in section 268.95, may, at county option, 115.32 be exempted from other employment and training participation 115.33 requirements for a period of up to 24 months, except for the 115.34 school attendance requirements as specified in section 256J.54. 115.35 (b) The following income and resource considerations apply 115.36 to SEID participants: 116.1 (1) an unencumbered cash reserve fund, composed of proceeds 116.2 from a SEID business, is not counted against the grant if those 116.3 funds are reinvested in the business and the value of the 116.4 business does not exceed $3,000. The value of the business is 116.5 determined by deducting outstanding encumbrances from retained 116.6 business profit; and 116.7 (2) the purchase of capital equipment and durable goods of 116.8 an amount up to $3,000 during a 24-month project period is 116.9 allowed as a business expense. 116.10 (c) SEID participants are also eligible for employment and 116.11 training services, including child care assistance and 116.12 transportation. 116.13 Sec. 53. [256J.66] [ON-THE-JOB TRAINING.] 116.14 Subdivision 1. [ESTABLISHING THE ON-THE-JOB TRAINING 116.15 PROGRAM.] (a) County agencies may develop on-the-job training 116.16 programs for MFIP-S caregivers who are participating in 116.17 employment and training services. A county agency that chooses 116.18 to provide on-the-job training may make payments to employers 116.19 for on-the-job training costs that, during the period of the 116.20 training, must not exceed 50 percent of the wages paid by the 116.21 employer to the participant. The payments are deemed to be in 116.22 compensation for the extraordinary costs associated with 116.23 training participants under this section and in compensation for 116.24 the costs associated with the lower productivity of the 116.25 participants during training. 116.26 (b) Provision of an on-the-job training program under the 116.27 Job Training Partnership Act, in and of itself, does not qualify 116.28 as an on-the-job training program under this section. 116.29 (c) Participants in on-the-job training shall be 116.30 compensated by the employer at the same rates, including 116.31 periodic increases, as similarly situated employees or trainees 116.32 and in accordance with applicable law, but in no event less than 116.33 the federal or applicable state minimum wage, whichever is 116.34 higher. 116.35 Subd. 2. [TRAINING AND PLACEMENT.] (a) County agencies 116.36 shall limit the length of training based on the complexity of 117.1 the job and the caregiver's previous experience and training. 117.2 Placement in an on-the-job training position with an employer is 117.3 for the purpose of training and employment with the same 117.4 employer who has agreed to retain the person upon satisfactory 117.5 completion of training. 117.6 (b) Placement of any participant in an on-the-job training 117.7 position must be compatible with the participant's assessment 117.8 and employment plan under section 256J.52. 117.9 Sec. 54. [256J.67] [COMMUNITY WORK EXPERIENCE.] 117.10 Subdivision 1. [ESTABLISHING THE COMMUNITY WORK EXPERIENCE 117.11 PROGRAM.] To the extent of available resources, each county 117.12 agency may establish and operate a work experience component for 117.13 MFIP-S caregivers who are participating in employment and 117.14 training services. This option for county agencies supersedes 117.15 the requirement in section 402(a)(1)(B)(iv) of the Social 117.16 Security Act that caregivers who have received assistance for 117.17 two months and who are not exempt from work requirements must 117.18 participate in a work experience program. The purpose of the 117.19 work experience component is to enhance the caregiver's 117.20 employability and self-sufficiency and to provide meaningful, 117.21 productive work activities. The county shall only use this 117.22 program after exhausting all other employment opportunities. 117.23 The county agency shall not require a caregiver to participate 117.24 in the community work experience program under this section 117.25 unless the caregiver has been given an opportunity to 117.26 participate in other work activities. The county shall only use 117.27 this program after exhausting all other employment 117.28 opportunities. The county agency shall not require a caregiver 117.29 to participate in the community work experience program under 117.30 this section unless the caregiver has been given an opportunity 117.31 to participate in other work activities. 117.32 Subd. 2. [COMMISSIONER'S DUTIES.] The commissioner shall 117.33 assist counties in the design and implementation of these 117.34 components. 117.35 Subd. 3. [EMPLOYMENT OPTIONS.] (a) Work sites developed 117.36 under this section are limited to projects that serve a useful 118.1 public service such as: health, social service, environmental 118.2 protection, education, urban and rural development and 118.3 redevelopment, welfare, recreation, public facilities, public 118.4 safety, community service, services to aged or disabled 118.5 citizens, and child care. To the extent possible, the prior 118.6 training, skills, and experience of a caregiver must be 118.7 considered in making appropriate work experience assignments. 118.8 (b) Structured, supervised volunteer work with an agency or 118.9 organization, which is monitored by the county service provider, 118.10 may, with the approval of the county agency, be used as a work 118.11 experience placement. 118.12 (c) As a condition of placing a caregiver in a program 118.13 under this section, the county agency shall first provide the 118.14 caregiver the opportunity: 118.15 (1) for placement in suitable subsidized or unsubsidized 118.16 employment through participation in a job search; or 118.17 (2) for placement in suitable employment through 118.18 participation in on-the-job training, if such employment is 118.19 available. 118.20 Subd. 4. [EMPLOYMENT PLAN.] (a) The caretaker's employment 118.21 plan must include the length of time needed in the work 118.22 experience program, the need to continue job-seeking activities 118.23 while participating in work experience, and the caregiver's 118.24 employment goals. 118.25 (b) After each six months of a caregiver's participation in 118.26 a work experience job placement, and at the conclusion of each 118.27 work experience assignment under this section, the county agency 118.28 shall reassess and revise, as appropriate, the caregiver's 118.29 employment plan. 118.30 (c) A participant may claim good cause under section 118.31 256J.57 for failing to cooperate with a work experience job 118.32 placement. 118.33 (d) The county agency shall limit the maximum number of 118.34 hours any participant may work under this section to the amount 118.35 of the applicable MFIP-S transitional standard divided by the 118.36 applicable federal or state minimum wage, whichever is higher. 119.1 After a participant has been assigned to a position for nine 119.2 months, the participant may not continue in that assignment 119.3 unless the maximum number of hours a participant works is no 119.4 greater than the amount of the applicable MFIP-S transitional 119.5 standard divided by the rate of pay for individuals employed in 119.6 the same or similar occupations by the same employer at the same 119.7 site. 119.8 Sec. 55. [256J.68] [INJURY PROTECTION FOR WORK EXPERIENCE 119.9 PARTICIPANTS.] 119.10 Subdivision 1. [APPLICABILITY.] Payment of any claims 119.11 resulting from an alleged injury or death of a person 119.12 participating in a county or a tribal community work experience 119.13 program that is operated by the county agency or the tribe and 119.14 approved by the commissioner must be determined in accordance 119.15 with this section. This determination method applies to work 119.16 experience programs authorized by the commissioner for persons 119.17 applying for or receiving cash assistance and food stamps, and 119.18 to the Minnesota parent's fair share program and the community 119.19 service program under section 518.551, subdivision 5a, in a 119.20 county with an approved community investment program for 119.21 obligors. 119.22 Subd. 2. [INVESTIGATION OF THE CLAIM.] Claims that are 119.23 subject to this section must be investigated by the county 119.24 agency or the tribal program responsible for supervising the 119.25 work to determine whether the claimed injury occurred, whether 119.26 the claimed medical expenses are reasonable, and whether the 119.27 loss is covered by the claimant's insurance. If insurance 119.28 coverage is established, the county agency or tribal program 119.29 shall submit the claim to the appropriate insurance entity for 119.30 payment. The investigating county agency or tribal program 119.31 shall submit all valid claims, in the amount net of any 119.32 insurance payments, to the department of human services. 119.33 Subd. 3. [SUBMISSION OF CLAIM.] The commissioner shall 119.34 submit all claims for permanent partial disability compensation 119.35 to the commissioner of labor and industry. The commissioner of 119.36 labor and industry shall review all submitted claims and 120.1 recommend to the department of human services an amount of 120.2 compensation comparable to that which would be provided under 120.3 the permanent partial disability compensation schedule of 120.4 section 176.101, subdivision 2a. 120.5 Subd. 4. [CLAIMS LESS THAN $1,000.] The commissioner shall 120.6 approve a claim of $1,000 or less for payment if appropriated 120.7 funds are available, if the county agency or tribal program 120.8 responsible for supervising the work has made the determinations 120.9 required by this section, and if the work program was operated 120.10 in compliance with the safety provisions of this section. The 120.11 commissioner shall pay the portion of an approved claim of 120.12 $1,000 or less that is not covered by the claimant's insurance 120.13 within three months of the date of submission. On or before 120.14 February 1 of each year, the commissioner shall submit to the 120.15 appropriate committees of the senate and the house of 120.16 representatives a list of claims of $1,000 or less paid during 120.17 the preceding calendar year and shall be reimbursed by 120.18 legislative appropriation for any claims that exceed the 120.19 original appropriation provided to the commissioner to operate 120.20 this program. Any unspent money from this appropriation shall 120.21 carry over to the second year of the biennium, and any unspent 120.22 money remaining at the end of the second year shall be returned 120.23 to the state general fund. 120.24 Subd. 5. [CLAIMS MORE THAN $1,000.] On or before February 120.25 1 of each year, the commissioner shall submit to the appropriate 120.26 committees of the senate and the house of representatives a list 120.27 of claims in excess of $1,000 and a list of claims of $1,000 or 120.28 less that were submitted to but not paid by the commissioner, 120.29 together with any recommendations of appropriate compensation. 120.30 These claims shall be heard and determined by the appropriate 120.31 committees of the senate and house of representatives and, if 120.32 approved, must be paid under the legislative claims procedure. 120.33 Subd. 6. [COMPENSATION FOR CERTAIN COSTS.] Compensation 120.34 paid under this section is limited to reimbursement for 120.35 reasonable medical expenses and permanent partial disability 120.36 compensation for disability in like amounts as allowed in 121.1 section 176.101, subdivision 2a. Compensation for injuries 121.2 resulting in death shall include reasonable medical expenses and 121.3 burial expenses in addition to payment to the participant's 121.4 estate in an amount up to $200,000. No compensation shall be 121.5 paid under this section for pain and suffering, lost wages, or 121.6 other benefits provided in chapter 176. Payments made under 121.7 this section shall be reduced by any proceeds received by the 121.8 claimant from any insurance policy covering the loss. For the 121.9 purposes of this section, "insurance policy" does not include 121.10 the medical assistance program authorized under chapter 256B or 121.11 the general assistance medical care program authorized under 121.12 chapter 256D. 121.13 Subd. 7. [EXCLUSIVE PROCEDURE.] The procedure established 121.14 by this section is exclusive of all other legal, equitable, and 121.15 statutory remedies against the state, its political 121.16 subdivisions, or employees of the state or its political 121.17 subdivisions. The claimant shall not be entitled to seek 121.18 damages from any state, county, tribal, or reservation insurance 121.19 policy or self-insurance program. 121.20 Subd. 8. [INVALID CLAIMS.] A claim is not valid for 121.21 purposes of this section if the county agency responsible for 121.22 supervising the work cannot verify to the commissioner: 121.23 (1) that appropriate safety training and information is 121.24 provided to all persons being supervised by the agency under 121.25 this section; and 121.26 (2) that all programs involving work by those persons 121.27 comply with federal Occupational Safety and Health 121.28 Administration and state department of labor and industry safety 121.29 standards. A claim that is not valid because of failure to 121.30 verify safety training or compliance with safety standards will 121.31 not be paid by the department of human services or through the 121.32 legislative claims process and must be heard, decided, and paid, 121.33 if appropriate, by the local government unit or tribal JOBS 121.34 program responsible for supervising the work of the claimant. 121.35 Sec. 56. [256J.69] [GRANT DIVERSION.] 121.36 Subdivision 1. [ESTABLISHING THE GRANT DIVERSION 122.1 PROGRAM.] (a) County agencies may develop grant diversion 122.2 programs for MFIP-S participants participating in employment and 122.3 training services. A county agency that chooses to provide 122.4 grant diversion may divert to an employer part or all of the 122.5 MFIP-S cash payment for the participant's assistance unit, in 122.6 compliance with federal regulations and laws. Such payments to 122.7 an employer are to subsidize employment for MFIP-S participants 122.8 as an alternative to public assistance payments. 122.9 (b) In addition to diverting the MFIP-S grant to the 122.10 employer, employment and training funds may be used to subsidize 122.11 the grant diversion placement. 122.12 (c) Participants in grant diversion shall be compensated by 122.13 the employer at the same rates, including periodic increases, as 122.14 similarly situated employees or trainees and in accordance with 122.15 applicable law, but in no event less than the federal or 122.16 applicable state minimum wage, whichever is higher. 122.17 Subd. 2. [TRAINING AND PLACEMENT.] (a) County agencies 122.18 shall limit the length of training to nine months. Placement in 122.19 a grant diversion training position with an employer is for the 122.20 purpose of training and employment with the same employer who 122.21 has agreed to retain the person upon satisfactory completion of 122.22 training. 122.23 (b) Placement of any participant in a grant diversion 122.24 subsidized training position must be compatible with the 122.25 assessment and employment plan or employability development plan 122.26 established for the recipient under section 256J.52 or 256K.03, 122.27 subdivision 8. 122.28 Sec. 57. [256J.72] [NONDISPLACEMENT IN WORK ACTIVITIES.] 122.29 Subdivision 1. [NONDISPLACEMENT PROTECTION.] For job 122.30 assignments under jobs programs established under chapter 256, 122.31 256D, 256J, or 256K, the county agency must provide written 122.32 notification to and obtain the written concurrence of the 122.33 appropriate exclusive bargaining representatives with respect to 122.34 job duties covered under collective bargaining agreements and 122.35 ensure that no work assignment under chapter 256, 256D, 256J, or 122.36 256K results in: 123.1 (1) termination, layoff, or reduction of the work hours of 123.2 an employee for the purpose of hiring an individual under this 123.3 section; 123.4 (2) the hiring of an individual if any other person is on 123.5 layoff, including seasonal layoff, from the same or a 123.6 substantially equivalent job; 123.7 (3) any infringement of the promotional opportunities of 123.8 any currently employed individual; 123.9 (4) the impairment of existing contract for services of 123.10 collective bargaining agreements; or 123.11 (5) a participant filling an established unfilled position 123.12 vacancy, except for a position filled using grant diversion as 123.13 provided in section 256J.69 or on-the-job training. 123.14 The written notification must be provided to the 123.15 appropriate exclusive bargaining representatives at least 14 123.16 days in advance of placing recipients in temporary public 123.17 service employment. The notice must include the number of 123.18 individuals involved, their work locations and anticipated hours 123.19 of work, a summary of the tasks to be performed, and a 123.20 description of how the individuals will be trained and 123.21 supervised. 123.22 Subd. 2. [DISPUTE RESOLUTION.] (a) If there is a dispute 123.23 between an exclusive bargaining representative and a county 123.24 provider or employer over whether job duties are within the 123.25 scope of a collective bargaining unit, the exclusive bargaining 123.26 representative, the county, the provider, or the employer may 123.27 petition the bureau of mediation services to determine if the 123.28 job duties are within the scope of a collective bargaining unit, 123.29 and the bureau shall render a binding decision. 123.30 (b) In the event of a dispute under this section, the 123.31 parties may: 123.32 (1) use a grievance and arbitration procedure of an 123.33 existing collective bargaining agreement to process a dispute 123.34 over whether a violation of the nondisplacement provisions has 123.35 occurred; or 123.36 (2) if no grievance and arbitration procedure is in place, 124.1 either party may submit the dispute to the bureau. The 124.2 commissioner of the bureau of mediation services shall establish 124.3 a procedure for a neutral, binding resolution of the dispute. 124.4 Subd. 3. [STATUS OF PARTICIPANT.] A participant may not 124.5 work in a temporary public service or community service job for 124.6 a public employer for more than 67 working days or 536 hours, 124.7 whichever is greater, as part of a work program established 124.8 under chapter 256, 256D, 256J, or 256K. A participant who 124.9 exceeds the time limits in this subdivision is a public 124.10 employee, as that term is used in chapter 179A. Upon the 124.11 written request of the exclusive bargaining representative, a 124.12 county or public service employer shall make available to the 124.13 affected exclusive bargaining representative a report of hours 124.14 worked by participants in temporary public service or community 124.15 service jobs. 124.16 Sec. 58. [256J.74] [RELATIONSHIP TO OTHER PROGRAMS.] 124.17 Subdivision 1. [SOCIAL SERVICES.] The county agency shall 124.18 refer a participant for social services that are offered in the 124.19 county of financial responsibility according to the criteria 124.20 established by that county agency under Minnesota Rules, parts 124.21 9550.0010 to 9550.0092. A payment issued from federal funds 124.22 under title XX of the Social Security Act, state funds under the 124.23 Community Social Services Act, federal or state child welfare 124.24 funds, or county funds in a payment month must not restrict 124.25 MFIP-S eligibility or reduce the monthly assistance payment for 124.26 that participant. 124.27 Subd. 2. [CONCURRENT ELIGIBILITY, LIMITATIONS.] A county 124.28 agency must not count an applicant or participant as a member of 124.29 more than one assistance unit in a given payment month, except 124.30 as provided in clauses (1) and (2). 124.31 (1) A participant who is a member of an assistance unit in 124.32 this state is eligible to be included in a second assistance 124.33 unit in the first full month that the participant leaves the 124.34 first assistance unit and lives with a second assistance unit. 124.35 (2) An applicant whose needs are met through foster care 124.36 that is reimbursed under title IV-E of the Social Security Act 125.1 for the first part of an application month is eligible to 125.2 receive assistance for the remaining part of the month in which 125.3 the applicant returns home. Title IV-E payments and adoption 125.4 assistance payments must be considered prorated payments rather 125.5 than a duplication of MFIP-S need. 125.6 Subd. 3. [EMERGENCY ASSISTANCE, ASSISTANCE UNIT WITH A 125.7 MINOR CHILD.] An MFIP-S assistance unit with a minor child or a 125.8 pregnant woman without a minor child is eligible for emergency 125.9 assistance when the assistance unit meets the requirements in 125.10 section 256J.48, subdivision 2. 125.11 Subd. 4. [MEDICAL ASSISTANCE.] Medical assistance 125.12 eligibility for MFIP-S participants shall be determined as 125.13 described in chapter 256B. 125.14 Sec. 59. [256J.75] [COUNTY OF FINANCIAL RESPONSIBILITY 125.15 POLICIES.] 125.16 Subdivision 1. [COUNTY OF FINANCIAL RESPONSIBILITY.] The 125.17 county of financial responsibility is the county in which a 125.18 minor child or pregnant woman lives on the date the application 125.19 is signed, unless subdivision 4 applies. When more than one 125.20 county is financially responsible for the members of an 125.21 assistance unit, financial responsibility must be assigned to a 125.22 single county beginning the first day of the calendar month 125.23 after the assistance unit members are required to be in a single 125.24 assistance unit. Financial responsibility must be assigned to 125.25 the county that was initially responsible for the assistance 125.26 unit member with the earliest date of application. The county 125.27 in which the assistance unit is currently residing becomes 125.28 financially responsible for the entire assistance unit beginning 125.29 two full calendar months after the month in which financial 125.30 responsibility was consolidated in one county. 125.31 Subd. 2. [CHANGE IN RESIDENCE.] (a) When an assistance 125.32 unit moves from one county to another and continues to receive 125.33 assistance, the new county of residence becomes the county of 125.34 financial responsibility when that assistance unit has lived in 125.35 that county in nonexcluded status for two full calendar months. 125.36 "Nonexcluded status" means the period of residence that is not 126.1 considered excluded time under section 256G.02, subdivision 6. 126.2 When a minor child moves from one county to another to reside 126.3 with a different caregiver, the caregiver in the former county 126.4 is eligible to receive assistance for that child only through 126.5 the last day of the month of the move. The caregiver in the new 126.6 county becomes eligible to receive assistance for the child the 126.7 first day of the month following the move or the date of 126.8 application, whichever is later. 126.9 (b) When an applicant moves from one county to another 126.10 while the application is pending, the county where application 126.11 first occurred is the county of financial responsibility until 126.12 the applicant has lived in the new county for two full calendar 126.13 months, unless the applicant's move is covered under section 126.14 256G.02, subdivision 6. 126.15 Subd. 3. [RESPONSIBILITY FOR INCORRECT ASSISTANCE 126.16 PAYMENTS.] A county of residence, when different from the county 126.17 of financial responsibility, will be charged by the commissioner 126.18 for the value of incorrect assistance payments and medical 126.19 assistance paid to or on behalf of a person who was not eligible 126.20 to receive that amount. Incorrect payments include payments to 126.21 an ineligible person or family resulting from decisions, 126.22 failures to act, miscalculations, or overdue recertification. 126.23 However, financial responsibility does not accrue for a county 126.24 when the recertification is overdue at the time the referral is 126.25 received by the county of residence or when the county of 126.26 financial responsibility does not act on the recommendation of 126.27 the county of residence. When federal or state law requires 126.28 that medical assistance continue after assistance ends, this 126.29 subdivision also governs financial responsibility for the 126.30 extended medical assistance. 126.31 Subd. 4. [EXCLUDED TIME.] When an applicant or participant 126.32 resides in an excluded time facility as described in section 126.33 256G.02, subdivision 6, the county that is financially 126.34 responsible for the applicant or participant is the county in 126.35 which the applicant or participant last resided outside such a 126.36 facility immediately before entering the facility. When an 127.1 applicant or participant has not resided in this state for any 127.2 time other than excluded time as defined in section 256G.02, 127.3 subdivision 6, the county that is financially responsible for 127.4 the applicant or participant is the county in which the 127.5 applicant or participant resides on the date the application is 127.6 signed. 127.7 Sec. 60. [256J.76] [COUNTY ADMINISTRATIVE AID.] 127.8 Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July 127.9 1, 1997, counties will receive federal funds from the TANF block 127.10 grant for use in supporting eligibility, fraud control, and 127.11 other related administrative functions. The federal funds 127.12 available for distribution, as determined by the commissioner, 127.13 must be an amount equal to federal administrative aid 127.14 distributed for fiscal year 1996 under titles IV-A and IV-F of 127.15 the Social Security Act in effect prior to October 1, 1996. 127.16 This amount must include the amount paid for local 127.17 collaboratives under sections 245.4932 and 256F.13, but must not 127.18 include administrative aid associated with child care under 127.19 section 119B.05, with emergency assistance intensive family 127.20 preservation services under section 256.8711, with 127.21 administrative activities as part of the employment and training 127.22 services under section 256.736, or with fraud prevention 127.23 investigation activities under section 256.983. 127.24 Subd. 2. [ALLOCATION OF COUNTY FUNDS.] (a) The 127.25 commissioner shall determine and allocate the funds available to 127.26 each county on a calendar year basis. 127.27 (b) For calendar year 1998 and following years, the 127.28 commissioner shall allocate the funds available under 127.29 subdivision 1 in proportion to administrative aid paid to each 127.30 county for fiscal year 1996, excluding any amounts paid for 127.31 local collaboratives under sections 245.4932 and 256F.13. For 127.32 the period from July 1, 1997, to December 31, 1997, each county 127.33 shall receive an additional 50 percent of its calendar year 1998 127.34 allocation. 127.35 Subd. 3. [MONTHLY PAYMENTS TO COUNTIES.] The commissioner 127.36 shall pay counties monthly as federal funds are available. The 128.1 commissioner may certify the payments for the first three months 128.2 of a calendar year. 128.3 Subd. 4. [REPORTING REQUIREMENT.] The commissioner shall 128.4 specify requirements for reporting according to section 256.01, 128.5 subdivision 2, paragraph (17). Each county shall be reimbursed 128.6 at a rate of 50 percent of eligible expenditures up to the limit 128.7 of its allocation. 128.8 Sec. 61. [256J.77] [COUNTY AID FOR SUPPLEMENTAL HOUSING 128.9 ASSISTANCE.] 128.10 Subdivision 1. [PROGRAM ESTABLISHED.] This section may be 128.11 cited as the county aid for supplemental housing assistance 128.12 program (CASHAP). CASHAP is a statewide program intended to 128.13 help meet the housing needs of legal noncitizens residing in 128.14 Minnesota on August 22, 1996, who became ineligible for SSI 128.15 benefits under the Personal Responsibility and Work Opportunity 128.16 Reconciliation Act of 1996, Public Law Number 104-193. 128.17 Subd. 2. [ALLOCATION OF COUNTY AID FOR HOUSING ASSISTANCE 128.18 FUNDS.] State funds appropriated for the county aid for 128.19 supplemental housing assistance program shall be allocated to 128.20 county agencies as follows: 128.21 (1) for state fiscal year 1998, the allocation shall be 128.22 based on the county's proportion of the total statewide number 128.23 of legal noncitizens residing in Minnesota on August 22, 1996, 128.24 who became ineligible for SSI benefits under the Personal 128.25 Responsibility and Work Opportunity Reconciliation Act of 1996, 128.26 Public Law Number 104-193; and 128.27 (2) for subsequent fiscal years, the allocation shall be 128.28 based on the county's proportion of total statewide spending for 128.29 county aid for supplemental housing assistance in the preceding 128.30 year. 128.31 Subd. 3. [USE OF CASHAP FUNDS.] County agencies may spend 128.32 CASHAP funds at their discretion to assist with the housing 128.33 needs of legal noncitizens residing in Minnesota on August 22, 128.34 1996, who became ineligible for SSI under the Personal 128.35 Responsibility and Work Opportunity Reconciliation Act of 1996, 128.36 Public Law Number 104-193. 129.1 Subd. 4. [REALLOCATION OF UNUSED FUNDS.] Any CASHAP funds 129.2 not used by a county at the end of a fiscal year shall be 129.3 returned to the commissioner and reallocated in the following 129.4 fiscal year as provided in subdivision 2. 129.5 Sec. 62. [256J.775] [TRUANCY PREVENTION PROGRAM.] 129.6 Subdivision 1. [PILOT PROJECTS.] The commissioner of human 129.7 services, in consultation with the commissioner of the 129.8 department of children, families, and learning, shall develop a 129.9 truancy prevention pilot program to prevent tardiness and ensure 129.10 school attendance of children receiving assistance under 129.11 chapters 256, 256J and 256K. The pilot program shall be 129.12 developed in at least two school districts, one rural and one 129.13 urban. The pilots shall be developed in collaboration with 129.14 local school districts and county social service agencies and 129.15 shall serve families on public assistance whose children are 129.16 under the age of 13 and are subject to the compulsory attendance 129.17 requirements of section 120.101, and are frequently tardy or are 129.18 not attending school regularly, as defined by the local school 129.19 district. The program shall require the local schools to refer 129.20 such families to county social service agencies for an 129.21 assessment and development of a corrective action plan to ensure 129.22 punctual and regular school attendance by the children in the 129.23 family. Families that fail to follow the corrective action plan 129.24 shall be reported to the county agency and shall have future 129.25 grants of assistance paid in vendor form under section 256J.39. 129.26 Families for whom a vendor payment plan has been in effect for 129.27 at least two months and whose elementary school children 129.28 continue to arrive late or regularly miss school shall be 129.29 subject to sanctions under section 256J.46. Vendor payments and 129.30 sanctions shall continue until the children demonstrate 129.31 satisfactory attendance as defined by the local school. The 129.32 commissioner of human services may at its discretion expand the 129.33 program to other districts with the districts' agreement and 129.34 shall present a report to the legislature by November 30, 1998, 129.35 on the success of the implementation of the pilot projects 129.36 authorized by this section. 130.1 Subd. 2. [TRANSFER OF ATTENDANCE DATA.] Notwithstanding 130.2 the requirements of section 13.32, the commissioners of 130.3 children, families, and learning and human services shall 130.4 develop procedures to implement the transmittal of data on 130.5 student attendance to county social services agencies to 130.6 implement the program authorized by this section. 130.7 Sec. 63. [NOTICE AND REFERRAL PROCEDURES FOR DOMESTIC 130.8 VIOLENCE VICTIMS.] 130.9 The commissioner of human services shall develop procedures 130.10 for the county agencies and their contractors to identify 130.11 victims of domestic violence. The procedures must provide, at a 130.12 minimum, universal notification to all applicants and recipients 130.13 of MFIP-S that: 130.14 (1) referrals to counseling and supportive services are 130.15 available for victims of domestic violence; 130.16 (2) nonpermanent resident battered individuals married to 130.17 U.S. citizens or permanent residents may be eligible to petition 130.18 for permanent residency under the Violence Against Women Act, 130.19 and that referrals to appropriate legal services are available; 130.20 and 130.21 (3) victims of domestic violence are exempt from the 130.22 60-month limit on assistance while the individual is complying 130.23 with an approved safety plan, as defined in section 256J.49, 130.24 subdivision 11. 130.25 Notification must be in writing and orally at the time of 130.26 application and recertification, when the individual is referred 130.27 to the title IV-D child support agency, and at the beginning of 130.28 any job training or work placement assistance program. 130.29 Sec. 64. [DOMESTIC VIOLENCE; TRAINING PROGRAMS.] 130.30 The commissioner of human services shall establish 130.31 mandatory domestic violence and sexual abuse training programs 130.32 for employees, contractors, subcontractors, and county welfare 130.33 agencies of the department of human services who work with 130.34 applicants and recipients. To the extent possible, the state or 130.35 local agency shall not refer applicants or recipients to any 130.36 employer who has not been trained in dealing with issues related 131.1 to domestic violence and sexual assault. 131.2 The commissioner shall establish a request for proposals 131.3 from experts in domestic violence and sexual assault issues to 131.4 train employees, contractors, and county welfare agency workers 131.5 on issues of domestic violence and sexual assault. To the 131.6 extent possible, the commissioner will integrate training on 131.7 domestic violence and sexual assault issues with retraining of 131.8 state and county employees on implementation of the new TANF 131.9 program. 131.10 Sec. 65. [FORECAST OF COSTS REQUIRED.] 131.11 For the part of the department of human services' budget 131.12 devoted to assistance to families grants, the commissioner shall 131.13 forecast the total projected costs of each component activity 131.14 biannually, as a part of the November and March forecasts. The 131.15 total projected costs must also be recognized in the fund 131.16 balance. 131.17 Sec. 66. [TOTAL HOUSEHOLD INCOME COUNTED.] 131.18 Notwithstanding any provision of Minnesota Statutes, 131.19 chapter 256J, to the contrary, eligibility for assistance under 131.20 Minnesota Statutes, chapter 256J, the Minnesota family 131.21 investment program-statewide, must count income from all 131.22 unrelated individuals living in the household in order to 131.23 qualify for MFIP-S assistance. 131.24 Sec. 67. [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 131.25 The legislature makes the following findings: 131.26 (a) The legislature is statutorily required to balance the 131.27 state budget. 131.28 (b) The task of balancing the state budget is made 131.29 difficult in the area of the new federal welfare reform program 131.30 for needy families due to the dramatic change in program design 131.31 that this state and all other states must experience, rendering 131.32 historical data on client behavior, interstate migration, and 131.33 welfare spending patterns of dubious value. 131.34 (c) Many states are using the flexibility given to them 131.35 under the federal welfare reform bill to enact more restrictive 131.36 programs than Minnesota. 132.1 (d) Minnesota county human service agencies have reported 132.2 to the commissioner of human services verified cases of families 132.3 moving from other states to this state at least in part because 132.4 this state has higher public assistance benefits. 132.5 (e) Within the state's limited resources, the legislature 132.6 wishes to manage funds appropriated under this part to best 132.7 provide for needy Minnesota families and their children. 132.8 (f) To that end, the legislature has adopted a policy of 132.9 requiring families to be in this state for at least 30 days 132.10 before being eligible for benefits and providing families in 132.11 which no mandatory member has resided in Minnesota for the 132.12 previous 12 months a benefit based on the grant they would have 132.13 received had they applied for benefits in their previous state 132.14 of residence. 132.15 (g) Therefore, if the policy designed to make welfare 132.16 benefits a neutral factor in the decision to move to Minnesota 132.17 and to best manage the benefit appropriation for needy Minnesota 132.18 families and their children, while providing a safety net for 132.19 recent interstate migrants, is enjoined or otherwise prevented 132.20 from being implemented, the simple residency requirement of 132.21 section 256J.12 shall continue to be in effect and the 132.22 commissioner shall do the following: (1) ratably reduce 132.23 benefits under AFDC and MFIP-S, but only in an amount sufficient 132.24 to remain within the forecasted budgets for those programs; 132.25 (2) notify the fiscal and policy chairs of the house and 132.26 senate human services committees that the reductions have taken 132.27 place; and 132.28 (3) formulate a plan to be presented to the next 132.29 legislative session. 132.30 Vendor payments under this paragraph shall be for rent and 132.31 utilities, up to the limit of the grant amount. Residual 132.32 amounts, if any, shall be paid directly to the assistance unit. 132.33 Sec. 68. [TRANSFER FUNDING.] 132.34 Effective July 1, 1997, all funding related to the child 132.35 care assistance programs under Minnesota Statutes, section 132.36 256.035, subdivision 8, is transferred to the commissioner of 133.1 children, families, and learning. 133.2 Sec. 69. [SEVERABILITY CLAUSE.] 133.3 If any provision of this act is enjoined from 133.4 implementation or found unconstitutional by any court of 133.5 competent jurisdiction, the remaining provisions shall remain 133.6 valid and shall be given full effect. 133.7 Sec. 70. [TRIBAL EMPLOYMENT AND TRAINING PROGRAM; REPORT.] 133.8 Subdivision 1. [AUTHORITY.] The commissioner of human 133.9 services, in conjunction with Indian tribes in the state, shall 133.10 develop and present to the legislature a plan for providing 133.11 state funds in support of a family assistance program 133.12 administered by Indian tribes who have a reservation in this 133.13 state and who have federal approval to operate a tribal 133.14 program. This plan must identify the primary arrangements 133.15 needed to effect tribal administration and needed funding, 133.16 including agreements with a consortium of tribes, that 133.17 accurately reflects the state funding levels for Indian people 133.18 as would otherwise be available to MFIP-S program recipients. 133.19 This plan must be developed consistent with the requirements set 133.20 forth in the Personal Responsibility and Work Opportunity 133.21 Reconciliation Act of 1996, Public Law Number 104-193, section 133.22 412(b)(1)(B). For purposes of this section, "Indian tribe" 133.23 means a tribe, band, nation, or other federally recognized group 133.24 or community of Indians. 133.25 Subd. 2. [REPORT TO THE LEGISLATURE.] The plan referred to 133.26 in subdivision 1 and any resulting proposal for legislation must 133.27 be presented to the legislature by December 15, 1997. 133.28 Subd. 3. [TRIBAL AGREEMENTS.] Once the plan in subdivision 133.29 1 is presented to and approved by the legislature and signed 133.30 into law, the commissioner is authorized to enter into 133.31 agreements with Indian tribes or consortia of tribes consistent 133.32 with the plan. 133.33 Subd. 4. [TRIBAL AND STATE COORDINATION.] The commissioner 133.34 shall consult with Indian tribes in the state when formulating 133.35 general policies regarding the implementation of the state's 133.36 public assistance program operated under title IV-A of the 134.1 Social Security Act. The commissioner shall take into 134.2 consideration circumstances affecting Indians, including 134.3 circumstances identified by Indian tribes, when designing the 134.4 state's program. The state shall provide Indians with equitable 134.5 access to assistance as provided in the Personal Responsibility 134.6 and Work Opportunity Reconciliation Act of 1996, Public Law 134.7 Number 104-193, section 402(a)(5). 134.8 Subd. 5. [EMPLOYMENT TRAINING.] Nothing in this section 134.9 precludes any Indian tribe in this state from participating in 134.10 employment and training or child care programs otherwise 134.11 available by law to Indian tribes under: 134.12 (1) the MFIP program under Minnesota Statutes, sections 134.13 256.031 to 256.0351, or its successor program; 134.14 (2) project STRIDE under Minnesota Statutes, section 134.15 256.736, or its successor program; 134.16 (3) child care programs for tribal program participants; 134.17 and 134.18 (4) the Minnesota injury protection program. 134.19 Subd. 6. [TRIBAL SOVEREIGN STATUS.] Nothing in this 134.20 section shall be construed to waive, modify, expand, or diminish 134.21 the sovereignty of federally recognized Indian tribes, nor shall 134.22 any Indian tribes be required in any way to deny their 134.23 sovereignty or waive their immunities except as mandated by 134.24 federal law as a requirement of entering into an agreement with 134.25 the state under this section. 134.26 Subd. 7. [PLANNING.] The commissioner of human services 134.27 shall assist tribes, in a collaborative effort, with the 134.28 development of the plan under subdivision 1 and efforts 134.29 associated with such development. Such efforts shall include, 134.30 but not be limited to, data collection regarding: receipt of 134.31 public assistance by Indians, unemployment rates within tribal 134.32 service delivery areas, and dissemination of information and 134.33 research. The commissioner shall provide technical assistance 134.34 to tribal welfare reform task force members and tribes regarding 134.35 the implementation and operation of public assistance programs 134.36 and assistance to tribes to develop the plan under subdivision 1. 135.1 Sec. 71. [REPAYMENT OF POST-SECONDARY EDUCATION FUNDS; 135.2 PROPOSAL REQUIRED.] 135.3 By February 15, 1998, the commissioner of human services, 135.4 in consultation with representatives of county agencies, must 135.5 develop and submit to the legislature a proposal that specifies 135.6 a methodology for the repayment of funds under Minnesota 135.7 Statutes 1996, section 256J.53, subdivision 4. The 135.8 commissioner's proposal must not apply the methodology 135.9 retroactively to participants who had a post-secondary education 135.10 or training program approved under that section before the date 135.11 that the commissioner's proposal, if enacted, becomes effective. 135.12 Sec. 72. [UNEXPENDED CHILD CARE FUNDS.] 135.13 There shall be created in the general fund a child care 135.14 assistance reserve account. All unexpended child care 135.15 assistance grant funds for the biennium ending June 30, 1999 135.16 must not cancel to the general fund but shall be transferred to 135.17 the child care assistance reserve account. Amounts remaining in 135.18 this reserve account do not cancel. 135.19 Sec. 73. [REPEALER.] 135.20 (a) Minnesota Statutes 1996, sections 256.12, subdivisions 135.21 9, 10, 14, 15, 19, 20, 21, 22, and 23; 256.72; 256.73, 135.22 subdivisions 1, 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 10, and 135.23 11; 256.7341; 256.736, subdivision 18; 256.7365, subdivisions 1, 135.24 2, 3, 4, 5, 6, 7, and 9; 256.7366; 256.737; 256.738; 256.7381; 135.25 256.7382; 256.7383; 256.7384; 256.7385; 256.7386; 256.7387; 135.26 256.7388; 256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 135.27 256.745; 256.75; 256.76, subdivision 1; 256.78; 256.80; 256.81; 135.28 256.82; 256.84; 256.85; 256.86; 256.863; 256.871; and 256.879, 135.29 are repealed effective July 1, 1998. 135.30 (b) From January 1, 1998, to March 31, 1998, the statutory 135.31 sections listed in paragraph (a) apply only in counties that 135.32 operate an MFIP field trial and that continue to provide project 135.33 STRIDE services to members of the MFIP comparison group, and in 135.34 those counties that have not completed conversion to MFIP-S 135.35 employment and training services. 135.36 (c) From April 1, 1998, through June 30, 1998, the sections 136.1 listed in paragraph (a) are effective only in counties that 136.2 operate an MFIP field trial and that continue to provide project 136.3 STRIDE services to members of the comparison group. 136.4 Sec. 74. [NOTICE OF EARLY IMPLEMENTATION.] 136.5 Notwithstanding any inconsistent provisions of sections 136.6 256.12, 256.72 to 256.87, and 256D.01 to 256D.21, a county may 136.7 implement the provisions of chapter 256J or 256K before January 136.8 1, 1998, if the county submits a written notice to the 136.9 commissioner of human services that specifies the date of 136.10 implementation and concisely outlines the county's plan for 136.11 early implementation. Upon receipt of a county's notice, the 136.12 commissioner must review the county's plan for feasibility of 136.13 implementation. The commissioner's review must occur in a 136.14 timely manner. The commissioner may request modifications to 136.15 the county's plan to increase its feasibility. When the 136.16 commissioner agrees with the county's plan, the commissioner 136.17 must publish a notice in the state register that specifies the 136.18 date upon which the MFIP-S program replaces the AFDC and family 136.19 GA programs in the county. 136.20 Sec. 75. [EFFECTIVE DATE.] 136.21 Subdivision 1. [GENERAL EFFECTIVE DATE.] Except as 136.22 specified in subdivision 2, article 1 is effective July 1, 1997. 136.23 Subd. 2. [TRANSITION EFFECTIVE DATE.] Sections 1, 136.24 subdivisions 1 and 3; 4 to 6; 9 and 10; 11, subdivision 2; 12 136.25 and 13; 22 to 25; 26, subdivisions 3 and 4 to 10; 27, 136.26 subdivision 9; 28; 30; 33 and 34; and 36 to 59, are effective 136.27 January 1, 1998, except that for counties who elect to begin 136.28 operation of MFIP-S prior to January 1, 1998, these sections 136.29 take effect for each county on the date that MFIP-S is 136.30 implemented in the county. 136.31 ARTICLE 2 136.32 WORK FIRST PROGRAM 136.33 Section 1. [256K.01] [WORK FIRST PROGRAM.] 136.34 Subdivision 1. [CITATION.] Sections 256K.01 to 256K.09 may 136.35 be cited as the work first program. 136.36 Subd. 2. [DEFINITIONS.] As used in sections 256K.01 to 137.1 256K.09, the following words have the meanings given them. 137.2 (a) "Applicant" means an individual who has submitted a 137.3 request for assistance and has never received an AFDC, MFIP-S or 137.4 a family general assistance grant through the MAXIS computer 137.5 system as a caregiver, or an applicant whose AFDC, MFIP-S or 137.6 family general assistance application was denied or benefits 137.7 were terminated due to noncompliance with work first 137.8 requirements. 137.9 (b) "Application date" means the date any Minnesota county 137.10 agency receives a signed and dated combined application form 137.11 Part I. 137.12 (c) "CAF" means a combined application form on which people 137.13 apply for multiple assistance programs, including: cash 137.14 assistance, refugee cash assistance, Minnesota supplemental aid, 137.15 food stamps, medical assistance, general assistance medical 137.16 care, emergency assistance, emergency medical assistance, and 137.17 emergency general assistance medical care. 137.18 (d) "Caregiver" means a parent or eligible adult, including 137.19 a pregnant woman, who is part of the assistance unit that has 137.20 applied for or is receiving an AFDC, MFIP-S, or family general 137.21 assistance grant. In a two-parent family, both parents are 137.22 caregivers. 137.23 (e) "Child support" means a voluntary or court-ordered 137.24 payment by absent parents in an assistance unit. 137.25 (f) "Commissioner" means the commissioner of human services. 137.26 (g) "Department" means the department of human services. 137.27 (h) "Employability development plan" or "EDP" means a plan 137.28 developed by the applicant, with advice from the employment 137.29 advisor, for the purposes of identifying an employment goal, 137.30 improving work skills through certification or education, 137.31 training or skills recertification, and which addresses barriers 137.32 to employment. 137.33 (i) "EDP status report form" means a program form on which 137.34 deferred participants indicate what has been achieved in the 137.35 participant's employability development plan and the types of 137.36 problems encountered. 138.1 (j) "Employment advisor" means a program staff member who 138.2 is qualified to assist the participant to develop a job search 138.3 or employability development plan, match the participant with 138.4 existing job openings, refer the participant to employers, and 138.5 has an extensive knowledge of employers in the area. 138.6 (k) "Financial specialist" means a program staff member who 138.7 is trained to explain the benefits offered under the program, 138.8 determine eligibility for different assistance programs, and 138.9 broker other resources from employers and the community. 138.10 (l) "Job network" means individuals that a person may 138.11 contact to learn more about particular companies, inquire about 138.12 job leads, or discuss occupational interests and expertise. 138.13 (m) "Job search allowance" means the amount of financial 138.14 assistance needed to support job search. 138.15 (n) "Job search plan" or "JSP" means the specific plan 138.16 developed by the applicant, with advice from the employment 138.17 advisor, to secure a job as soon as possible, and focus the 138.18 scope of the job search process and other activities. 138.19 (o) "JSP status report form" means a program form on which 138.20 participants indicate the number of submitted job applications, 138.21 job interviews held, jobs offered, other outcomes achieved, 138.22 problems encountered, and the total number of hours spent on job 138.23 search per week. 138.24 (p) "Participant" means a recipient who is required to 138.25 participate in the work first program. 138.26 (q) "Program" means the work first program. 138.27 (r) "Provider" means an employment and training agency 138.28 certified by the commissioner of economic security under section 138.29 268.871, subdivision 1. 138.30 (s) "Self-employment" means employment where people work 138.31 for themselves rather than an employer, are responsible for 138.32 their own work schedule, and do not have taxes or FICA withheld 138.33 by an employer. 138.34 (t) "Self-sufficiency agreement" means the agreement 138.35 between the county or its representative and the applicant that 138.36 describes the activities that the applicant must conduct and the 139.1 necessary services and aid to be furnished by the county to 139.2 enable the individual to meet the purpose of either the job 139.3 search plan or employability development plan. 139.4 (u) "Subsidized job" means a job that is partly reimbursed 139.5 by the provider for cost of wages for participants in the 139.6 program. 139.7 Subd. 3. [ESTABLISHING WORK FIRST PROGRAM.] The 139.8 commissioners of human services and economic security may 139.9 develop and establish pilot projects which require applicants 139.10 for aid under AFDC, MFIP-S or family general assistance to meet 139.11 the requirements of the work first program. The purpose of the 139.12 program is to: 139.13 (1) ensure that the participant is working as early as 139.14 possible; 139.15 (2) promote greater opportunity for economic self-support, 139.16 participation, and mobility in the work force; and 139.17 (3) minimize the risk for long-term welfare dependency. 139.18 Subd. 4. [PROGRAM ADMINISTRATION.] The program must be 139.19 administered in a way that, in addition to the county agency, 139.20 other sectors in the community such as employers from the public 139.21 and private sectors, not-for-profit organizations, educational 139.22 and social service agencies, labor unions, and neighborhood 139.23 associations are involved. 139.24 Subd. 5. [PROGRAM DESIGN.] The program shall meet the 139.25 following principles: 139.26 (1) work is the primary means of economic support; 139.27 (2) the individual's potential is reviewed during the 139.28 application process to determine how to approach the job market 139.29 aggressively; 139.30 (3) public aid such as cash and medical assistance, child 139.31 care, child support assurance, and other cash benefits are used 139.32 to support intensive job search and immediate work; and 139.33 (4) maximum use is made of tax credits to supplement income. 139.34 Subd. 6. [DUTIES OF COMMISSIONER.] In addition to any 139.35 other duties imposed by law, the commissioner shall: 139.36 (1) establish the program according to sections 256K.01 to 140.1 256K.09 and allocate money as appropriate to pilot counties 140.2 participating in the program; 140.3 (2) provide systems development and staff training; 140.4 (3) accept and supervise the disbursement of any funds that 140.5 may be provided from other sources for use in the demonstration 140.6 program; and 140.7 (4) direct a study to safeguard the interests of children. 140.8 Subd. 7. [DUTIES OF COUNTY AGENCY.] The county agency 140.9 shall: 140.10 (1) collaborate with the commissioners of human services 140.11 and economic security and other agencies to develop, implement, 140.12 and evaluate the demonstration of the work first program; 140.13 (2) operate the work first program in partnership with 140.14 private and public employers, local industry councils, labor 140.15 unions, and employment, educational, and social service 140.16 agencies, according to subdivision 4; and 140.17 (3) ensure that program components such as client 140.18 orientation, immediate job search, job development, creation of 140.19 temporary public service jobs, job placements, and postplacement 140.20 follow-up are implemented according to the work first program. 140.21 Subd. 8. [DUTIES OF PARTICIPANT.] To be eligible for an 140.22 AFDC, MFIP-S or family general assistance benefit, a participant 140.23 shall cooperate with the county agency, the provider, and the 140.24 participant's employer in all aspects of the program. 140.25 Sec. 2. [256K.015] [ELIGIBILITY FOR WORK FIRST.] 140.26 To be eligible for work first, an applicant must be 140.27 determined eligible for AFDC or MFIP-S, whichever is in effect 140.28 in the county, and must meet all the requirements of AFDC or 140.29 MFIP-S, whichever is applicable, to the extent that those 140.30 requirements are not inconsistent with this chapter. 140.31 Sec. 3. [256K.02] [PROGRAM PARTICIPANTS; PROGRAM 140.32 EXPECTATIONS.] 140.33 All applicants selected for participation are expected to 140.34 meet the requirements under the work first program. Payments 140.35 for rent and utilities up to the AFDC, MFIP-S or family general 140.36 assistance benefits to which the assistance unit is entitled 141.1 will be vendor paid for as many months as the applicant is 141.2 eligible or six months, whichever comes first. The residual 141.3 amount after vendor payment, if any, will be paid to the 141.4 applicant, unless it is used as a wage subsidy under section 141.5 256K.09, subdivision 2. 141.6 Sec. 4. [256K.03] [PROGRAM REQUIREMENTS.] 141.7 Subdivision 1. [NOTIFICATION OF PROGRAM.] Except for the 141.8 provisions in this section, the provisions for the AFDC, MFIP-S, 141.9 and family general assistance application process shall be 141.10 followed. Within two days after receipt of a completed combined 141.11 application form, the county agency must refer to the provider 141.12 the applicant who meets the conditions under section 256K.02, 141.13 and notify the applicant in writing of the program including the 141.14 following provisions: 141.15 (1) notification that, as part of the application process, 141.16 applicants are required to attend orientation, to be followed 141.17 immediately by a job search; 141.18 (2) the program provider, the date, time, and location of 141.19 the scheduled program orientation; 141.20 (3) the procedures for qualifying for and receiving 141.21 benefits under the program; 141.22 (4) the immediate availability of supportive services, 141.23 including, but not limited to, child care, transportation, 141.24 medical assistance, and other work-related aid; and 141.25 (5) the rights, responsibilities, and obligations of 141.26 participants in the program, including, but not limited to, the 141.27 grounds for exemptions and deferrals, the consequences for 141.28 refusing or failing to participate fully, and the appeal process. 141.29 Subd. 2. [PROGRAM ORIENTATION.] The county must give a 141.30 face-to-face orientation regarding the program to the applicant 141.31 within five days after the date of application. The orientation 141.32 must be designed to inform the applicant of: 141.33 (1) the importance of locating and obtaining a job as soon 141.34 as possible; 141.35 (2) benefits to be provided to support work; 141.36 (3) the manner by which benefits shall be paid; 142.1 (4) how other supportive services such as medical 142.2 assistance, child care, transportation, and other work-related 142.3 aid shall be available to support job search and work; 142.4 (5) the consequences for failure without good cause to 142.5 comply with program requirements; and 142.6 (6) the appeal process. 142.7 Subd. 3. [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 142.8 SPECIALIST.] At the end of orientation, the provider must assign 142.9 an employment advisor and a financial specialist to the 142.10 applicant. With advice from the employment advisor, the 142.11 applicant must develop a job search plan based on existing job 142.12 markets, prior employment, work experience, and transferable 142.13 work skills, unless exempt under subdivision 5. A job search 142.14 must be planned and conducted for a period of up to eight 142.15 consecutive weeks from the date of application and for at least 142.16 32 hours per week. The types of and target number of job 142.17 openings to be pursued per week must be written in the job 142.18 search plan. The following activities may be included in the 142.19 job search plan: 142.20 (1) motivational counseling; 142.21 (2) job networking or training on how to locate job 142.22 openings; 142.23 (3) development of a personal resume; and 142.24 (4) information on how to conduct job interviews and 142.25 establish a personal job network. 142.26 Following the development of the job search plan or the 142.27 employability development plan under subdivision 8, the 142.28 financial specialist must interview the applicant to determine 142.29 eligibility for and the extent of benefits under sections 142.30 256K.06 and 256K.07 to support the job search or employability 142.31 development plan. The provider must attach to the appropriate 142.32 plan the summary of the necessary enabling services and benefits 142.33 to be furnished by the provider. The provider or its 142.34 representative and the applicant must sign the plan, with its 142.35 attachment, to indicate a self-sufficiency agreement between the 142.36 provider and the participant. 143.1 Subd. 4. [IMMEDIATE JOB SEARCH.] An applicant must be 143.2 required to begin job search within seven days after the date of 143.3 application for at least 32 hours per week for up to eight 143.4 weeks, unless exempt under subdivision 5 or deferred under 143.5 subdivision 8. For an applicant who is working at least 20 143.6 hours per week, job search shall consist of 12 hours per week 143.7 for up to eight weeks. Within the first five days of job 143.8 search, the applicant is required to initiate informational 143.9 contacts with prospective employers, generate additional job 143.10 leads from the job network, review references and experiences 143.11 from previous employment, and carry out the other activities 143.12 under the job search plan developed under subdivision 3. 143.13 Subd. 5. [EXEMPTION CATEGORIES.] (a) The applicant will be 143.14 exempt from the job search requirements and development of a job 143.15 search plan and an employability development plan under 143.16 subdivisions 3, 4, and 8 if the applicant belongs to any of the 143.17 following groups: 143.18 (1) caregivers under age 20 who have not completed a high 143.19 school education and are attending high school on a full-time 143.20 basis; 143.21 (2) individuals who are age 60 or older; 143.22 (3) individuals who are suffering from a professionally 143.23 certified permanent or temporary illness, injury, or incapacity 143.24 which is expected to continue for more than 30 days and which 143.25 prevents the person from obtaining or retaining employment; 143.26 (4) caregivers whose presence in the home is needed because 143.27 of illness or incapacity of another member in the household; 143.28 (5) women who are pregnant, if it has been medically 143.29 verified that the child is expected to be born within the next 143.30 six months; 143.31 (6) caregivers or other caregiver relatives of a child 143.32 under the age of three who personally provide full-time care for 143.33 the child; 143.34 (7) individuals employed at least 30 hours per week; 143.35 (8) individuals for whom participation would require a 143.36 round trip commuting time by available transportation of more 144.1 than two hours, excluding transporting of children for child 144.2 care; 144.3 (9) individuals for whom lack of proficiency in English is 144.4 a barrier to employment, provided such individuals are 144.5 participating in an intensive program which lasts no longer than 144.6 six months and is designed to remedy their language deficiency; 144.7 (10) individuals who, because of advanced age or lack of 144.8 ability, are incapable of gaining proficiency in English, as 144.9 determined by the county social worker, shall continue to be 144.10 exempt under this subdivision and are not subject to the 144.11 requirement that they be participating in a language program; 144.12 (11) individuals under such duress that they are incapable 144.13 of participating in the program, as determined by the county 144.14 social worker; or 144.15 (12) individuals in need of refresher courses for purposes 144.16 of obtaining professional certification or licensure. 144.17 (b) In a two-parent family, only one caregiver may be 144.18 exempted under paragraph (a), clauses (4) and (6). 144.19 Subd. 6. [COUNTY DUTIES.] The county must act on the 144.20 application within 30 days of the application date. If the 144.21 applicant is not eligible, the application will be denied and 144.22 the county must notify the applicant of the denial in writing. 144.23 An applicant whose application has been denied may be allowed to 144.24 complete the job search plan; however, supportive services will 144.25 not be provided. 144.26 Subd. 7. [JOB SEARCH PLAN STATUS REPORT.] The applicant or 144.27 participant must submit a completed job search plan status 144.28 report form to the employment advisor every two weeks during the 144.29 job search process, with the first completed form due 21 days 144.30 after the date of application. 144.31 Subd. 8. [EMPLOYABILITY DEVELOPMENT PLAN.] At the 144.32 discretion and approval of the employment advisor, the applicant 144.33 may be deferred from the requirement to conduct at least 32 144.34 hours of job search per week for up to eight consecutive weeks, 144.35 if during the development of the job search plan, the applicant 144.36 is determined to: 145.1 (1) not have worked within the past 12 months and not have 145.2 a high school or a general equivalency diploma provided the 145.3 applicant agrees to develop and carry out an employability 145.4 development plan instead of job search, and concurrently work 145.5 for at least 16 hours per week in a temporary public service 145.6 job. The employability development plan must include the 145.7 employment goals and specific outcomes the participant must 145.8 achieve; 145.9 (2) be within six months of completing any post-secondary 145.10 training program, provided that the applicant agrees to develop 145.11 and carry out an employability development plan instead of a job 145.12 search, and concurrently work for a minimum number of hours per 145.13 week in a temporary public service job. The employability 145.14 development plan must include the employment goal and specific 145.15 outcomes that the participant must achieve. The applicant that 145.16 is deferred under this subdivision may choose to work in a job 145.17 other than a public service job for a minimum number of hours 145.18 per week rather than in a temporary public service job. For 145.19 individuals who are participating in an educational program 145.20 under this clause, and who are attending school full time as 145.21 determined by the institution, there is no work requirement. 145.22 For individuals participating in an educational program on a 145.23 part-time basis as determined by the institution, the minimum 145.24 number of hours that a participant must work shall be decreased 145.25 as the participant increases the number of credit hours taken, 145.26 except that the participant shall not be required to work more 145.27 than eight hours per week. 145.28 During vacation periods of one month or more, the 16-hour 145.29 per week minimum work requirement shall apply. The applicant 145.30 may be deferred for up to six months. At the end of the 145.31 deferment period, the participant must develop a job search plan 145.32 and conduct at least 32 hours of job search per week for up to 145.33 eight consecutive weeks, and submit reports as required under 145.34 subdivisions 3 and 4; or 145.35 (3) be in treatment for chemical dependency, be a victim of 145.36 domestic abuse, or be homeless, provided that the applicant 146.1 agrees to develop an employability development plan instead of a 146.2 job search plan, and immediately follow through with the 146.3 activities in the employability development plan. The 146.4 employability development plan must include specific outcomes 146.5 that the applicant must achieve for the duration of the 146.6 employability development plan and activities which are needed 146.7 to address the issues identified. Under this clause, the 146.8 applicant may be deferred for up to eight weeks. 146.9 Subd. 9. [EDP STATUS REPORT.] The participant who is 146.10 deferred from job search under subdivision 8 must submit a 146.11 completed employability development plan status report form to 146.12 the employment advisor every 14 days as long as the participant 146.13 continues to be deferred, with the first completed form due 21 146.14 days after the date of application. 146.15 Subd. 10. [JOB OFFER.] The participant must not refuse any 146.16 job offer, provided that the job is within the participant's 146.17 physical and mental abilities, pays hourly gross wages of not 146.18 less than the applicable state or federal minimum wage, and 146.19 meets health and safety standards set by federal, state, and 146.20 county agencies. If a job is offered, the participant must 146.21 inform the provider immediately to redetermine eligibility for 146.22 and extent of benefits and services to support work. To enhance 146.23 job retention, the provider may provide services such as 146.24 motivational counseling or on-site problem solving for up to six 146.25 months. The participant who has completed at least six months 146.26 of work in a nonsubsidized job shall be encouraged to 146.27 participate in a training program that would improve the 146.28 participant's ability to obtain a job that pays a higher wage. 146.29 Subd. 11. [DUTY TO REPORT.] The participant must 146.30 immediately inform the provider regarding any changes related to 146.31 the participant's employment status. 146.32 Subd. 12. [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 146.33 SERVICE JOB.] (a) If after the completion of the maximum eight 146.34 weeks of job search the participant has failed to secure a 146.35 nonsubsidized or a subsidized job for at least 32 hours per 146.36 week, or does not earn a net income from self-employment that is 147.1 equal to at least the AFDC, MFIP-S or family general assistance 147.2 monthly grant for the household size, whichever is applicable, 147.3 the participant is required to work in a temporary public 147.4 service job for up to 67 working days for (1) at least 32 hours 147.5 per week, or (2) a period equivalent to the result of dividing 147.6 the monthly grant amount which the participant would otherwise 147.7 receive, by the federal hourly minimum wage, or applicable 147.8 hourly state minimum wage, or the hourly rate of pay for 147.9 individuals employed in the same occupation at the site, 147.10 whichever is highest. If the result is more than 128 hours per 147.11 month, the participant's requirement to work in a temporary 147.12 public service job shall not be more than 32 hours per week. 147.13 (b) Within seven days from the date of application, the 147.14 participant who is deferred under subdivision 8, clause (1) or 147.15 (2), and is participating in an educational program on a 147.16 part-time basis must work in a temporary public service job as 147.17 required under subdivision 8, clause (2). 147.18 (c) The provider shall strive to match the profile of the 147.19 participant with the needs of the employers that are 147.20 participating in a temporary jobs program under section 256K.05. 147.21 Sec. 5. [256K.04] [JOB DEVELOPMENT AND SUBSIDY.] 147.22 Subdivision 1. [JOB INVENTORY.] The provider must develop 147.23 an inventory of job openings including full-time, part-time, 147.24 permanent, temporary or seasonal, and training positions in 147.25 partnership with private and public employers, local industry 147.26 councils, and employment agencies. To the extent possible, the 147.27 inventory must include specific information regarding job 147.28 openings, must be updated on a weekly basis, and must be 147.29 available to all participants on a daily basis. 147.30 Subd. 2. [JOB SUBSIDY.] The county may use all or part of 147.31 the AFDC, MFIP-S or family general assistance benefit as a 147.32 subsidy to employers for the purpose of providing work 147.33 experience or training to the participant who has completed the 147.34 job search plan, provided that: 147.35 (1) the job to be subsidized is permanent and full time, 147.36 and pays an hourly rate of at least $6 per hour; 148.1 (2) the employer agrees to retain the participant after 148.2 satisfactory completion of the work experience or training 148.3 period; and 148.4 (3) the participant has first tried to secure a 148.5 nonsubsidized job by following the job search plan. 148.6 The subsidy may be available for up to six months. 148.7 Sec. 6. [256K.05] [TEMPORARY JOBS PROGRAM.] 148.8 Subdivision 1. [PROGRAM ESTABLISHED.] The provider must 148.9 establish and operate a program to provide temporary jobs to 148.10 participants who, after eight weeks of job search, are not hired 148.11 into a nonsubsidized or a subsidized job, or are deferred under 148.12 section 256K.03, subdivision 8. The temporary jobs to be 148.13 created under this section must be public service jobs that 148.14 serve a useful public service such as: health, social service, 148.15 environmental protection, education, urban and rural development 148.16 and redevelopment, welfare, recreation, public facilities, 148.17 public safety, community service, services to the aged or 148.18 disabled citizens, and child care. 148.19 Subd. 2. [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 148.20 JOBS.] The provider must assign the participant who (1) is 148.21 within completion of the required eight weeks of job search and 148.22 has failed to secure a nonsubsidized or a subsidized job for at 148.23 least 32 hours per week, or (2) does not earn a net income from 148.24 self-employment that is equal to at least the AFDC, MFIP-S or 148.25 family general assistance monthly grant for the household size, 148.26 whichever is applicable, to a temporary public service job. The 148.27 assignment must be made seven days before the end of the job 148.28 search and be based on section 256K.03, subdivision 12. The 148.29 participant that is deferred under section 256K.03, subdivision 148.30 8, will be assigned by the provider to a temporary public 148.31 service job within seven days after the application. 148.32 Subd. 3. [PARTICIPANT'S STATUS.] The participant who is 148.33 working in a temporary public service job under this section is 148.34 not considered an employee for the purposes of unemployment 148.35 insurance compensation, retirement, or civil service laws, and 148.36 shall not perform work ordinarily performed by a public employee. 149.1 Subd. 4. [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 149.2 discretion of the provider, the participant who is working in a 149.3 temporary public service job under section 256K.03, subdivision 149.4 12, may be required to continue to look for a job for up to 149.5 eight hours per week in addition to working. The participant 149.6 who is working at least 20 hours per week but less than 32 hours 149.7 per week in a nonsubsidized or subsidized job may be required to 149.8 look for a job for up to 20 hours per week in lieu of work in 149.9 the temporary public service job so that the total hours of work 149.10 and job search is not more than 40 hours per week. 149.11 Subd. 5. [EXCUSED ABSENCES.] The participant who is 149.12 working in a temporary public service job may be allowed excused 149.13 absences from the assigned temporary job site up to eight hours 149.14 per month. For purposes of this subdivision, "excused absence" 149.15 means absence due to temporary illness or injury of the 149.16 caregiver or a member of the caregiver's family, the 149.17 unavailability of licensed child care or unavailability of 149.18 transportation needed to go to and from the work site, a job 149.19 interview, or a nonmedical emergency. For purposes of this 149.20 subdivision, "emergency" means a sudden, unexpected occurrence 149.21 or situation of a serious or urgent nature that requires action. 149.22 Subd. 6. [MOVE TO A DIFFERENT COUNTY.] If the applicant or 149.23 recipient who is required to participate in the work first 149.24 program moves to a different county in this state, the benefits 149.25 and enabling services agreed upon in the self-sufficiency 149.26 agreement shall be provided by the pilot county where the 149.27 applicant or recipient originated, provided the move was part of 149.28 the job search or employability development plan. If the 149.29 applicant or recipient is moving to a different county for 149.30 failure to comply with the requirements of the work first 149.31 program, the applicant or recipient will not be eligible for 149.32 MFIP-S in this state for at least six months from the date of 149.33 the move. 149.34 Sec. 7. [256K.06] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 149.35 RENT AND UTILITIES VENDOR PAYMENT.] 149.36 Payments for rent and utilities up to the amount of AFDC, 150.1 MFIP-S, or family general assistance benefits to which the 150.2 assistance unit is entitled shall be provided in the form of 150.3 vendor payments for as many months as the applicant is eligible 150.4 or six months, whichever comes first. The residual amount after 150.5 vendor payment, if any, will be paid to the AFDC, MFIP-S or 150.6 family general assistance recipient, unless it is used as a wage 150.7 subsidy under section 256K.09, subdivision 2. This provision 150.8 shall apply to all applicants including those meeting the 150.9 exemption categories under section 256K.03, subdivision 5, or 150.10 deferral categories under section 256K.03, subdivision 8. To 150.11 the extent needed, a job search allowance shall be provided for 150.12 up to eight weeks to cover expenses related to the job search. 150.13 Before the job search allowance is issued, it must be approved 150.14 by the employment advisor and financial specialist, and clearly 150.15 described in the job search plan. 150.16 Sec. 8. [256K.07] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 150.17 ASSISTANCE, AND CHILD CARE.] 150.18 The participant shall be treated as an AFDC, MFIP-S or 150.19 family general assistance recipient, whichever is applicable, 150.20 for food stamps, medical assistance, and child care eligibility 150.21 purposes. The participant who leaves the program as a result of 150.22 increased earnings from employment shall be eligible for 150.23 transitional Medical Assistance and child care without regard to 150.24 AFDC, MFIP-S or family general assistance receipt in three of 150.25 the six months preceding ineligibility. 150.26 Sec. 9. [256K.08] [SANCTIONS AND APPEAL PROCESS.] 150.27 Subdivision 1. [GOOD CAUSE.] (a) For purposes of this 150.28 subdivision, "good cause" means absence due to temporary illness 150.29 or injury of the participant or a member of the participant's 150.30 family, the unavailability of appropriate child care or 150.31 unavailability of transportation needed to attend orientation or 150.32 conduct job search, or a nonmedical emergency as defined under 150.33 section 256K.05, subdivision 5. 150.34 (b) The applicant who is required, but fails, without good 150.35 cause, to participate in orientation, complete the job search 150.36 plan or employability development plan, and comply with the job 151.1 search requirements under section 256K.03, prior to being 151.2 eligible for AFDC, MFIP-S or family general assistance shall be 151.3 denied benefits. The applicant will not be eligible for 151.4 benefits in this state for at least six months. 151.5 (c) If, after receiving a written warning from the county, 151.6 the participant fails, without good cause, to conduct at least 151.7 32 hours of job search per week in any given two-week period, 151.8 the participant will be immediately required to work for at 151.9 least 16 hours per week in a temporary public service job. The 151.10 required 32 hours per week of job search will be reduced to 16 151.11 hours. 151.12 (d) If the participant who is deferred under section 151.13 256K.03, subdivision 8, fails to comply with the activities 151.14 described in the employability development plan, the participant 151.15 will lose the deferment status, provided that the participant 151.16 has received at least two written warnings from the provider. 151.17 (e) If the participant refuses to work in a temporary 151.18 public service job, or is terminated from a temporary public 151.19 service job for failure to work, benefits to the assistance unit 151.20 shall be terminated and the participant shall not be eligible 151.21 for aid under the MFIP-S program for at least six months from 151.22 the date of refusal or termination. If the participant, before 151.23 completing at least four consecutive months of employment, 151.24 voluntarily quits or is terminated from a nonsubsidized or a 151.25 subsidized job, the participant shall immediately be assigned to 151.26 work in a temporary public service job for at least 32 hours per 151.27 week for up to 67 working days unless the participant is hired 151.28 or rehired into a nonsubsidized or subsidized job. 151.29 Subd. 2. [NOTICE OF SANCTIONS.] If the county determines 151.30 that the participant has failed or refused without good cause, 151.31 as defined in subdivision 1, to cooperate with the program 151.32 requirements, the county shall inform the participant in writing 151.33 of its intent to impose an applicable sanction listed under 151.34 subdivision 1 and the opportunity to have a conciliation 151.35 conference upon request and within five days of the notice 151.36 before a sanction is imposed. 152.1 Sec. 10. [256K.09] [FUNDING.] 152.2 Subdivision 1. [LEVERAGING GRANT AMOUNT TO SECURE OTHER 152.3 FUNDS.] The county agency or the provider, in cooperation with 152.4 the department, may leverage the grant amount to secure other 152.5 funds from employers, foundations, and the community for the 152.6 purpose of developing additional components to benefit children 152.7 and improve the program. 152.8 Subd. 2. [EMPLOYER REIMBURSEMENT.] The employer shall be 152.9 reimbursed for wages paid to participants under section 256K.04, 152.10 subdivision 2. 152.11 Sec. 11. [REPEALER.] 152.12 Minnesota Statutes 1996, sections 256.7351; 256.7352; 152.13 256.7353; 256.7354; 256.7355; 256.7356; 256.7357; 256.7358; and 152.14 256.7359, are repealed. 152.15 Sec. 12. [EFFECTIVE DATE.] 152.16 Article 2 is effective July 1, 1997. 152.17 ARTICLE 3 152.18 ASSISTANCE PROGRAM CHANGES 152.19 Section 1. Minnesota Statutes 1996, section 256.01, 152.20 subdivision 2, is amended to read: 152.21 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 152.22 section 241.021, subdivision 2, the commissioner of human 152.23 services shall: 152.24 (1) Administer and supervise all forms of public assistance 152.25 provided for by state law and other welfare activities or 152.26 services as are vested in the commissioner. Administration and 152.27 supervision of human services activities or services includes, 152.28 but is not limited to, assuring timely and accurate distribution 152.29 of benefits, completeness of service, and quality program 152.30 management. In addition to administering and supervising human 152.31 services activities vested by law in the department, the 152.32 commissioner shall have the authority to: 152.33 (a) require county agency participation in training and 152.34 technical assistance programs to promote compliance with 152.35 statutes, rules, federal laws, regulations, and policies 152.36 governing human services; 153.1 (b) monitor, on an ongoing basis, the performance of county 153.2 agencies in the operation and administration of human services, 153.3 enforce compliance with statutes, rules, federal laws, 153.4 regulations, and policies governing welfare services and promote 153.5 excellence of administration and program operation; 153.6 (c) develop a quality control program or other monitoring 153.7 program to review county performance and accuracy of benefit 153.8 determinations; 153.9 (d) require county agencies to make an adjustment to the 153.10 public assistance benefits issued to any individual consistent 153.11 with federal law and regulation and state law and rule and to 153.12 issue or recover benefits as appropriate; 153.13 (e) delay or deny payment of all or part of the state and 153.14 federal share of benefits and administrative reimbursement 153.15 according to the procedures set forth in section 256.017; and 153.16 (f) make contracts with and grants to public and private 153.17 agencies and organizations, both profit and nonprofit, and 153.18 individuals, using appropriated funds. 153.19 (2) Inform county agencies, on a timely basis, of changes 153.20 in statute, rule, federal law, regulation, and policy necessary 153.21 to county agency administration of the programs. 153.22 (3) Administer and supervise all child welfare activities; 153.23 promote the enforcement of laws protecting handicapped, 153.24 dependent, neglected and delinquent children, and children born 153.25 to mothers who were not married to the children's fathers at the 153.26 times of the conception nor at the births of the children; 153.27 license and supervise child-caring and child-placing agencies 153.28 and institutions; supervise the care of children in boarding and 153.29 foster homes or in private institutions; and generally perform 153.30 all functions relating to the field of child welfare now vested 153.31 in the state board of control. 153.32 (4) Administer and supervise all noninstitutional service 153.33 to handicapped persons, including those who are visually 153.34 impaired, hearing impaired, or physically impaired or otherwise 153.35 handicapped. The commissioner may provide and contract for the 153.36 care and treatment of qualified indigent children in facilities 154.1 other than those located and available at state hospitals when 154.2 it is not feasible to provide the service in state hospitals. 154.3 (5) Assist and actively cooperate with other departments, 154.4 agencies and institutions, local, state, and federal, by 154.5 performing services in conformity with the purposes of Laws 154.6 1939, chapter 431. 154.7 (6) Act as the agent of and cooperate with the federal 154.8 government in matters of mutual concern relative to and in 154.9 conformity with the provisions of Laws 1939, chapter 431, 154.10 including the administration of any federal funds granted to the 154.11 state to aid in the performance of any functions of the 154.12 commissioner as specified in Laws 1939, chapter 431, and 154.13 including the promulgation of rules making uniformly available 154.14 medical care benefits to all recipients of public assistance, at 154.15 such times as the federal government increases its participation 154.16 in assistance expenditures for medical care to recipients of 154.17 public assistance, the cost thereof to be borne in the same 154.18 proportion as are grants of aid to said recipients. 154.19 (7) Establish and maintain any administrative units 154.20 reasonably necessary for the performance of administrative 154.21 functions common to all divisions of the department. 154.22 (8) Act as designated guardian of both the estate and the 154.23 person of all the wards of the state of Minnesota, whether by 154.24 operation of law or by an order of court, without any further 154.25 act or proceeding whatever, except as to persons committed as 154.26 mentally retarded. 154.27 (9) Act as coordinating referral and informational center 154.28 on requests for service for newly arrived immigrants coming to 154.29 Minnesota. 154.30 (10) The specific enumeration of powers and duties as 154.31 hereinabove set forth shall in no way be construed to be a 154.32 limitation upon the general transfer of powers herein contained. 154.33 (11) Establish county, regional, or statewide schedules of 154.34 maximum fees and charges which may be paid by county agencies 154.35 for medical, dental, surgical, hospital, nursing and nursing 154.36 home care and medicine and medical supplies under all programs 155.1 of medical care provided by the state and for congregate living 155.2 care under the income maintenance programs. 155.3 (12) Have the authority to conduct and administer 155.4 experimental projects to test methods and procedures of 155.5 administering assistance and services to recipients or potential 155.6 recipients of public welfare. To carry out such experimental 155.7 projects, it is further provided that the commissioner of human 155.8 services is authorized to waive the enforcement of existing 155.9 specific statutory program requirements, rules, and standards in 155.10 one or more counties. The order establishing the waiver shall 155.11 provide alternative methods and procedures of administration, 155.12 shall not be in conflict with the basic purposes, coverage, or 155.13 benefits provided by law, and in no event shall the duration of 155.14 a project exceed four years. It is further provided that no 155.15 order establishing an experimental project as authorized by the 155.16 provisions of this section shall become effective until the 155.17 following conditions have been met: 155.18 (a) The proposed comprehensive plan, including estimated 155.19 project costs and the proposed order establishing the waiver, 155.20 shall be filed with the secretary of the senate and chief clerk 155.21 of the house of representatives at least 60 days prior to its 155.22 effective date. 155.23 (b) The secretary of health, education, and welfare of the 155.24 United States has agreed, for the same project, to waive state 155.25 plan requirements relative to statewide uniformity. 155.26 (c) A comprehensive plan, including estimated project 155.27 costs, shall be approved by the legislative advisory commission 155.28 and filed with the commissioner of administration. 155.29 (13) In accordance with federal requirements, establish 155.30 procedures to be followed by local welfare boards in creating 155.31 citizen advisory committees, including procedures for selection 155.32 of committee members. 155.33 (14) Allocate federal fiscal disallowances or sanctions 155.34 which are based on quality control error rates for the aid to 155.35 families with dependent children, medical assistance, or food 155.36 stamp program in the following manner: 156.1 (a) One-half of the total amount of the disallowance shall 156.2 be borne by the county boards responsible for administering the 156.3 programs. For the medical assistance and AFDC programs, 156.4 disallowances shall be shared by each county board in the same 156.5 proportion as that county's expenditures for the sanctioned 156.6 program are to the total of all counties' expenditures for the 156.7 AFDC and medical assistance programs. For the food stamp 156.8 program, sanctions shall be shared by each county board, with 50 156.9 percent of the sanction being distributed to each county in the 156.10 same proportion as that county's administrative costs for food 156.11 stamps are to the total of all food stamp administrative costs 156.12 for all counties, and 50 percent of the sanctions being 156.13 distributed to each county in the same proportion as that 156.14 county's value of food stamp benefits issued are to the total of 156.15 all benefits issued for all counties. Each county shall pay its 156.16 share of the disallowance to the state of Minnesota. When a 156.17 county fails to pay the amount due hereunder, the commissioner 156.18 may deduct the amount from reimbursement otherwise due the 156.19 county, or the attorney general, upon the request of the 156.20 commissioner, may institute civil action to recover the amount 156.21 due. 156.22 (b) Notwithstanding the provisions of paragraph (a), if the 156.23 disallowance results from knowing noncompliance by one or more 156.24 counties with a specific program instruction, and that knowing 156.25 noncompliance is a matter of official county board record, the 156.26 commissioner may require payment or recover from the county or 156.27 counties, in the manner prescribed in paragraph (a), an amount 156.28 equal to the portion of the total disallowance which resulted 156.29 from the noncompliance, and may distribute the balance of the 156.30 disallowance according to paragraph (a). 156.31 (15) Develop and implement special projects that maximize 156.32 reimbursements and result in the recovery of money to the 156.33 state. For the purpose of recovering state money, the 156.34 commissioner may enter into contracts with third parties. Any 156.35 recoveries that result from projects or contracts entered into 156.36 under this paragraph shall be deposited in the state treasury 157.1 and credited to a special account until the balance in the 157.2 account reaches $1,000,000. When the balance in the account 157.3 exceeds $1,000,000, the excess shall be transferred and credited 157.4 to the general fund. All money in the account is appropriated 157.5 to the commissioner for the purposes of this paragraph. 157.6 (16)Have the authority to make direct payments to157.7facilities providing shelter to women and their children157.8pursuant to section 256D.05, subdivision 3. Upon the written157.9request of a shelter facility that has been denied payments157.10under section 256D.05, subdivision 3, the commissioner shall157.11review all relevant evidence and make a determination within 30157.12days of the request for review regarding issuance of direct157.13payments to the shelter facility. Failure to act within 30 days157.14shall be considered a determination not to issue direct payments.157.15(17)Have the authority to establish and enforce the 157.16 following county reporting requirements: 157.17 (a) The commissioner shall establish fiscal and statistical 157.18 reporting requirements necessary to account for the expenditure 157.19 of funds allocated to counties for human services programs. 157.20 When establishing financial and statistical reporting 157.21 requirements, the commissioner shall evaluate all reports, in 157.22 consultation with the counties, to determine if the reports can 157.23 be simplified or the number of reports can be reduced. 157.24 (b) The county board shall submit monthly or quarterly 157.25 reports to the department as required by the commissioner. 157.26 Monthly reports are due no later than 15 working days after the 157.27 end of the month. Quarterly reports are due no later than 30 157.28 calendar days after the end of the quarter, unless the 157.29 commissioner determines that the deadline must be shortened to 157.30 20 calendar days to avoid jeopardizing compliance with federal 157.31 deadlines or risking a loss of federal funding. Only reports 157.32 that are complete, legible, and in the required format shall be 157.33 accepted by the commissioner. 157.34 (c) If the required reports are not received by the 157.35 deadlines established in clause (b), the commissioner may delay 157.36 payments and withhold funds from the county board until the next 158.1 reporting period. When the report is needed to account for the 158.2 use of federal funds and the late report results in a reduction 158.3 in federal funding, the commissioner shall withhold from the 158.4 county boards with late reports an amount equal to the reduction 158.5 in federal funding until full federal funding is received. 158.6 (d) A county board that submits reports that are late, 158.7 illegible, incomplete, or not in the required format for two out 158.8 of three consecutive reporting periods is considered 158.9 noncompliant. When a county board is found to be noncompliant, 158.10 the commissioner shall notify the county board of the reason the 158.11 county board is considered noncompliant and request that the 158.12 county board develop a corrective action plan stating how the 158.13 county board plans to correct the problem. The corrective 158.14 action plan must be submitted to the commissioner within 45 days 158.15 after the date the county board received notice of noncompliance. 158.16 (e) The final deadline for fiscal reports or amendments to 158.17 fiscal reports is one year after the date the report was 158.18 originally due. If the commissioner does not receive a report 158.19 by the final deadline, the county board forfeits the funding 158.20 associated with the report for that reporting period and the 158.21 county board must repay any funds associated with the report 158.22 received for that reporting period. 158.23 (f) The commissioner may not delay payments, withhold 158.24 funds, or require repayment under paragraph (c) or (e) if the 158.25 county demonstrates that the commissioner failed to provide 158.26 appropriate forms, guidelines, and technical assistance to 158.27 enable the county to comply with the requirements. If the 158.28 county board disagrees with an action taken by the commissioner 158.29 under paragraph (c) or (e), the county board may appeal the 158.30 action according to sections 14.57 to 14.69. 158.31 (g) Counties subject to withholding of funds under 158.32 paragraph (c) or forfeiture or repayment of funds under 158.33 paragraph (e) shall not reduce or withhold benefits or services 158.34 to clients to cover costs incurred due to actions taken by the 158.35 commissioner under paragraph (c) or (e). 158.36(18)(17) Allocate federal fiscal disallowances or 159.1 sanctions for audit exceptions when federal fiscal disallowances 159.2 or sanctions are based on a statewide random sample for the 159.3 foster care program under title IV-E of the Social Security Act, 159.4 United States Code, title 42, in direct proportion to each 159.5 county's title IV-E foster care maintenance claim for that 159.6 period. 159.7 Sec. 2. Minnesota Statutes 1996, section 256.031, is 159.8 amended by adding a subdivision to read: 159.9 Subd. 6. [END OF FIELD TRIALS.] Upon agreement with the 159.10 federal government, the field trials of the Minnesota family 159.11 investment plan will end June 30, 1998. Families in the 159.12 comparison group under subdivision 3, paragraph (d), clause (i), 159.13 receiving aid to families with dependent children under sections 159.14 256.72 to 256.87, and STRIDE services under section 256.736 will 159.15 continue in those programs until June 30, 1998. After June 30, 159.16 1998, families who cease receiving assistance under the 159.17 Minnesota family investment plan and comparison group families 159.18 who cease receiving assistance under AFDC and STRIDE who are 159.19 eligible for the Minnesota family investment program-statewide 159.20 (MFIP-S), medical assistance, general assistance medical care, 159.21 or the food stamp program shall be placed with their consent on 159.22 the programs for which they are eligible. 159.23 Sec. 3. Minnesota Statutes 1996, section 256.033, 159.24 subdivision 1, is amended to read: 159.25 Subdivision 1. [ELIGIBILITY CONDITIONS.] (a) A family is 159.26 entitled to assistance under the Minnesota family investment 159.27 plan if the family is assigned to a test group in the evaluation 159.28 as provided in section 256.031, subdivision 3, paragraph (d), 159.29 and: 159.30 (1) the family meets the definition of assistance unit 159.31 under section 256.032, subdivision 1a; 159.32 (2) the family's resources not excluded under subdivision 3 159.33 do not exceed $2,000; 159.34 (3) the family can verify citizenship or lawful resident 159.35 alien status; and 159.36 (4) the family provides or applies for a social security 160.1 number for each member of the family receiving assistance under 160.2 the family investment plan. 160.3 (b) A family is eligible for the family investment plan if 160.4 the net income is less than the transitional standard as defined 160.5 in section 256.032, subdivision 13, for that size and 160.6 composition of family. In determining available net income, the 160.7 provisions in subdivision 2 shall apply. 160.8 (c) Upon application, a family is initially eligible for 160.9 the family investment plan if the family's gross income does not 160.10 exceed the applicable transitional standard of assistance for 160.11 that family as defined under section 256.032, subdivision 13, 160.12 after deducting: 160.13 (1) 18 percent to cover taxes; and 160.14 (2) actual dependent care costs up to the maximum 160.15 disregarded under United States Code, title 42, section 160.16 602(a)(8)(A)(iii); and160.17(3) $50 of child support collected in that month. 160.18 (d) A family can remain eligible for the program if: 160.19 (1) it meets the conditions in subdivision 1a; and 160.20 (2) its income is below the transitional standard in 160.21 section 256.032, subdivision 13, allowing for income exclusions 160.22 in subdivision 2 and after applying the family investment plan 160.23 treatment of earnings under subdivision 1a. 160.24 Sec. 4. Minnesota Statutes 1996, section 256.033, 160.25 subdivision 1a, is amended to read: 160.26 Subd. 1a. [TREATMENT OF INCOME FOR THE PURPOSES OF 160.27 CONTINUED ELIGIBILITY.] To help families during their transition 160.28 from the Minnesota family investment plan to self-sufficiency, 160.29 the following income supports are available: 160.30 (a) The $30 and one-third and $90 disregards allowed under 160.31 section 256.74, subdivision 1, and the 20 percent earned income 160.32 deduction allowed under the federal Food Stamp Act of 1977, as 160.33 amended, are replaced with a single disregard of not less than 160.34 35 percent of gross earned income to cover taxes and other 160.35 work-related expenses and to reward the earning of income. This 160.36 single disregard is available for the entire time a family 161.1 receives assistance through the Minnesota family investment plan. 161.2 (b) The dependent care deduction, as prescribed under 161.3 section 256.74, subdivision 1, and United States Code, title 7, 161.4 section 2014(e), is replaced for families with earned income who 161.5 need assistance with dependent care with an entitlement to a 161.6 dependent care subsidy from money appropriated for the Minnesota 161.7 family investment plan. 161.8 (c) The family wage level, as defined in section 256.032, 161.9 subdivision 8, allows families to supplement earned income with 161.10 assistance received through the Minnesota family investment 161.11 plan. If, after earnings are adjusted according to the 161.12 disregard described in paragraph (a), earnings have raised 161.13 family income to a level equal to or greater than the family 161.14 wage level, the amount of assistance received through the 161.15 Minnesota family investment plan must be reduced. 161.16(d) The first $50 of any timely support payment for a month161.17received by the public agency responsible for child support161.18enforcement shall be paid to the family and disregarded in161.19determining eligibility and the amount of assistance in161.20accordance with United States Code, title 42, sections161.21602(a)(8)(A)(vi) and 657(b)(1). This paragraph applies161.22regardless of whether the caregiver is in transitional status,161.23is exempt from developing or complying with the terms of a161.24family support agreement, or has had a sanction imposed under161.25subdivision 3.161.26 Sec. 5. Minnesota Statutes 1996, section 256.736, 161.27 subdivision 3a, is amended to read: 161.28 Subd. 3a. [PARTICIPATION.] (a)Except as provided under161.29paragraphs (b) and (c),Participation in employment and training 161.30 services under this section is limited to the following 161.31 recipients: 161.32 (1) caretakers who are required to participate in a job 161.33 search under subdivision 14; 161.34 (2) custodial parents who are subject to the school 161.35 attendance or case management participation requirements under 161.36 subdivision 3b; 162.1(3) caretakers whose participation in employment and162.2training services began prior to May 1, 1990, if the caretaker's162.3AFDC eligibility has not been interrupted for 30 days or more162.4and the caretaker's employability development plan has not been162.5completed;162.6(4) recipients who are members of a family in which the162.7youngest child is within two years of being ineligible for AFDC162.8due to age;162.9(5) custodial parents under the age of 24 who: (i) have162.10not completed a high school education and who, at the time of162.11application for AFDC, were not enrolled in high school or in a162.12high school equivalency program; or (ii) have had little or no162.13work experience in the preceding year;162.14(6) recipients who have received AFDC for 36 or more months162.15out of the last 60 months;162.16(7) recipients who are participants in the self-employment162.17investment demonstration project under section 268.95; and162.18(8) recipients who participate in the new chance research162.19and demonstration project under contract with the department of162.20human servicesand 162.21 (3) after the county agency assures the availability of 162.22 employment and training services for recipients identified under 162.23 clauses (1) and (2), and to the extent of available resources, 162.24 any other AFDC recipient. 162.25 (b)If the commissioner determines that participation of162.26persons listed in paragraph (a) in employment and training162.27services is insufficient either to meet federal performance162.28targets or to fully utilize funds appropriated under this162.29section, the commissioner may, after notifying the chairs of the162.30senate family services committee, the house health and human162.31services committee, the family services division of the senate162.32family services and health care committees, and the human162.33services division of the house health and human services162.34committee, permit additional groups of recipients to participate162.35until the next meeting of the legislative advisory commission,162.36after which the additional groups may continue to enroll for163.1participation unless the legislative advisory commission163.2disapproves the continued enrollment. The commissioner shall163.3allow participation of additional groups in the following order163.4only as needed to meet performance targets or fully utilize163.5funding for employment and training services under this section:163.6(1) recipients who have received 24 or more months of AFDC163.7out of the previous 48 months; and163.8(2) recipients who have not completed a high school163.9education or a high school equivalency program.163.10(c) To the extent of money appropriated specifically for163.11this paragraph, the commissioner may permit AFDC caretakers who163.12are not eligible for participation in employment and training163.13services under the provisions of paragraph (a) or (b) to163.14participate. Money must be allocated to county agencies based163.15on the county's percentage of participants statewide in services163.16under this section in the prior calendar year. Caretakers must163.17be selected on a first-come, first-served basis from a waiting163.18list of caretakers who volunteer to participate. The163.19commissioner may, on a quarterly basis, reallocate unused163.20allocations to county agencies that have sufficient volunteers.163.21If funding under this paragraph is discontinued in future fiscal163.22years, caretakers who began participating under this paragraph163.23must be deemed eligible under paragraph (a), clause (3).163.24(d)Participants who are eligible and enroll in the STRIDE 163.25 program under one of the categories of this subdivision are 163.26 required to cooperate with the assessment and employability plan 163.27 development and to meet the terms of their employability plan. 163.28 Failure to comply, without good cause, shall result in the 163.29 imposition of sanctions as specified in subdivision 4, clause 163.30 (6). 163.31 Sec. 6. Minnesota Statutes 1996, section 256.74, 163.32 subdivision 1, is amended to read: 163.33 Subdivision 1. [AMOUNT.] The amount of assistance which 163.34 shall be granted to or on behalf of any dependent child and 163.35 parent or other needy eligible relative caring for the dependent 163.36 child shall be determined by the county agencyin accordance164.1withaccording to rules promulgated by the commissioner and 164.2 shall be sufficient, when added to all other income and support 164.3 available to the child, to provide the child with a reasonable 164.4 subsistence compatible with decency and health. To the extent 164.5 permissible under federal law, an eligible relative caretaker or 164.6 parent shall have the option to include in the assistance unit 164.7 the needs, income, and resources of the following essential 164.8 persons who are not otherwise eligible for AFDC because they do 164.9 not qualify as a caretaker or as a dependent child: 164.10 (1) a parent or relative caretaker's spouse and 164.11 stepchildren; or 164.12 (2) blood or legally adopted relatives who are under the 164.13 age of 18 or under the age of 19 years who are regularly 164.14 attending as a full-time student, and are expected to complete 164.15 before or during the month of their 19th birthday, a high school 164.16 or secondary level course of vocational or technical training 164.17 designed to prepare students for gainful employment. The amount 164.18 shall be based on the method of budgeting required in Public Law 164.19 Number 97-35, section 2315, United States Code, title 42, 164.20 section 602, as amended and federal regulations at Code of 164.21 Federal Regulations, title 45, section 233. Nonrecurring lump 164.22 sum income received by an AFDC family must be budgeted in the 164.23 normal retrospective cycle. When the family's income, after 164.24 application of the applicable disregards, exceeds the need 164.25 standard for the family because of receipt of earned or unearned 164.26 lump sum income, the family will be ineligible for the full 164.27 number of months derived by dividing the sum of the lump sum 164.28 income and other income by the monthly need standard for a 164.29 family of that size. Any income remaining from this calculation 164.30 is income in the first month following the period of 164.31 ineligibility. The first month of ineligibility is the payment 164.32 month that corresponds with the budget month in which the lump 164.33 sum income was received. For purposes of applying the lump sum 164.34 provision, family includes those persons defined in the Code of 164.35 Federal Regulations, title 45, section 233.20(a)(3)(ii)(F). A 164.36 period of ineligibility must be shortened when the standard of 165.1 need increases and the amount the family would have received 165.2 also changes, an amount is documented as stolen, an amount is 165.3 unavailable because a member of the family left the household 165.4 with that amount and has not returned, an amount is paid by the 165.5 family during the period of ineligibility to cover a cost that 165.6 would otherwise qualify for emergency assistance, or the family 165.7 incurs and pays for medical expenses which would have been 165.8 covered by medical assistance if eligibility existed. In making 165.9 its determination the county agency shall disregard the 165.10 following from family income: 165.11 (1) all the earned income of each dependent child applying 165.12 for AFDC if the child is a full-time student and all of the 165.13 earned income of each dependent child receiving AFDC who is a 165.14 full-time student or is a part-time student who is not a 165.15 full-time employee. A student is one who is attending a school, 165.16 college, or university, or a course of vocational or technical 165.17 training designed to fit students for gainful employment and 165.18 includes a participant in the Job Corps program under the Job 165.19 Training Partnership Act (JTPA). The county agency shall also 165.20 disregard all income of each dependent child applying for or 165.21 receiving AFDC when the income is derived from a program carried 165.22 out under JTPA, except that disregard of earned income may not 165.23 exceed six months per calendar year; 165.24 (2) all educational assistance, except the county agency 165.25 shall count graduate student teaching assistantships, 165.26 fellowships, and other similar paid work as earned income and, 165.27 after allowing deductions for any unmet and necessary 165.28 educational expenses, shall count scholarships or grants awarded 165.29 to graduate students that do not require teaching or research as 165.30 unearned income; 165.31 (3) the first $90 of each individual's earned income. For 165.32 self-employed persons, the expenses directly related to 165.33 producing goods and services and without which the goods and 165.34 services could not be produced shall be disregarded 165.35pursuantaccording to rules promulgated by the commissioner; 165.36 (4) thirty dollars plus one-third of each individual's 166.1 earned income for individuals found otherwise eligible to 166.2 receive aid or who have received aid in one of the four months 166.3 before the month of application. With respect to any month, the 166.4 county welfare agency shall not disregard under this clause any 166.5 earned income of any person who has: (a) reduced earned income 166.6 without good cause within 30 days preceding any month in which 166.7 an assistance payment is made; (b) refused without good cause to 166.8 accept an offer of suitable employment;(c) left employment or166.9reduced earnings without good cause and applied for assistance166.10so as to be able later to return to employment with the166.11advantage of the income disregard;or(d)(c) failed without 166.12 good cause to make a timely report of earned incomein166.13accordance withaccording to rules promulgated by the 166.14 commissioner of human services. Persons who are already 166.15 employed and who apply for assistance shall have their needs 166.16 computed with full account taken of their earned and other 166.17 income. If earned and other income of the family is less than 166.18 need, as determined on the basis of public assistance standards, 166.19 the county agency shall determine the amount of the grant by 166.20 applying the disregard of income provisions. The county agency 166.21 shall not disregard earned income for persons in a family if the 166.22 total monthly earned and other income exceeds their needs, 166.23 unless for any one of the four preceding months their needs were 166.24 met in whole or in part by a grant payment. The disregard of166.25$30 and one-third of earned income in this clause shall be166.26applied to the individual's income for a period not to exceed166.27four consecutive months. Any month in which the individual166.28loses this disregard because of the provisions of subclauses (a)166.29to (d) shall be considered as one of the four months. An166.30additional $30 work incentive must be available for an166.31eight-month period beginning in the month following the last166.32month of the combined $30 and one-third work incentive. This166.33period must be in effect whether or not the person has earned166.34income or is eligible for AFDC. To again qualify for the earned166.35income disregards under this clause, the individual must not be166.36a recipient of aid for a period of 12 consecutive months. When167.1an assistance unit becomes ineligible for aid due to the fact167.2that these disregards are no longer applied to income, the167.3assistance unit shall be eligible for medical assistance167.4benefits for a 12-month period beginning with the first month of167.5AFDC ineligibility; 167.6 (5) an amount equal to the actual expenditures for the care 167.7 of each dependent child or incapacitated individual living in 167.8 the same home and receiving aid, not to exceed: (a) $175 for 167.9 each individual age two and older, and $200 for each individual 167.10 under the age of two. The dependent care disregard must be 167.11 applied after all other disregards under this subdivision have 167.12 been applied; 167.13 (6)the first $50 per assistance unit of the monthly167.14support obligation collected by the support and recovery (IV-D)167.15unit. The first $50 of periodic support payments collected by167.16the public authority responsible for child support enforcement167.17from a person with a legal obligation to pay support for a167.18member of the assistance unit must be paid to the assistance167.19unit within 15 days after the end of the month in which the167.20collection of the periodic support payments occurred and must be167.21disregarded when determining the amount of assistance. A review167.22of a payment decision under this clause must be requested within167.2330 days after receiving the notice of collection of assigned167.24support or within 90 days after receiving the notice if good167.25cause can be shown for not making the request within the 30-day167.26limit;167.27(7)that portion of an insurance settlement earmarked and 167.28 used to pay medical expenses, funeral and burial costs, or to 167.29 repair or replace insured property; and 167.30(8)(7) all earned income tax credit payments received by 167.31 the family as a refund of federal income taxes or made as 167.32 advance payments by an employer. 167.33 All payments madepursuantaccording to a court order for 167.34 the support of children not living in the assistance unit's 167.35 household shall be disregarded from the income of the person 167.36 with the legal obligation to pay support, provided that, if 168.1 there has been a change in the financial circumstances of the 168.2 person with the legal obligation to pay support since the 168.3 support order was entered, the person with the legal obligation 168.4 to pay support has petitioned for a modification of the support 168.5 order. 168.6 Sec. 7. Minnesota Statutes 1996, section 256.74, is 168.7 amended by adding a subdivision to read: 168.8 Subd. 1c. [MFIP AND MFIP-R COMPARISON GROUP 168.9 FAMILIES.] Notwithstanding subdivision 1, the limitations of 168.10 this subdivision apply to MFIP and MFIP-R comparison group 168.11 families under sections 256.031 to 256.0361. The disregard of 168.12 thirty dollars plus one-third of earned income in this 168.13 subdivision shall be applied to the individual's income for a 168.14 period not to exceed four consecutive months. Any month in 168.15 which the individual loses this disregard because of the 168.16 provisions of subclauses (a) to (c) of subdivision 1 shall be 168.17 considered as one of the four months. An additional $30 work 168.18 incentive must be available for an eight month period beginning 168.19 in the month following the last month of the combined $30 and 168.20 one-third work incentive. This period must be in effect whether 168.21 or not the person has earned income or is eligible for AFDC. To 168.22 again qualify for the earned income disregards under this 168.23 subdivision, the individual must not be a recipient of and for a 168.24 period of 12 consecutive months. When an assistance unit 168.25 becomes ineligible for aid due to the fact that these disregards 168.26 are no longer applied to income, the assistance unit shall be 168.27 eligible for medical assistance benefits for a 12 month period 168.28 beginning with the first month of AFDC ineligibility. 168.29 Sec. 8. Minnesota Statutes 1996, section 256.81, is 168.30 amended to read: 168.31 256.81 [COUNTY AGENCY, DUTIES.] 168.32 (1) The county agency shall keep such records, accounts, 168.33 and statistics in relation to aid to families with dependent 168.34 children as the state agency shall prescribe. 168.35 (2) Each grant of aid to families with dependent children 168.36 shall be paid to the recipient by the county agency unless paid 169.1 by the state agency. Payment must be in the form of a warrant 169.2 immediately redeemable in cash, electronic benefits transfer, or 169.3 by direct deposit into the recipient's account in a financial 169.4 institution, except in those instances in which the county 169.5 agency, subject to the rules of the state agency, determines 169.6 that payments for care shall be made to an individual other than 169.7 the parent or relative with whom the dependent child is living 169.8 or to vendors of goods and services for the benefit of the child 169.9 because such parent or relative is unable to properly manage the 169.10 funds in the best interests and welfare of the child. There is 169.11 a presumption of mismanagement of funds whenever a recipient is 169.12 more than 30 days in arrears on payment of rent, except when the 169.13 recipient has withheld rent to enforce the recipient's right to 169.14 withhold the rent in accordance with federal, state, or local 169.15 housing laws. In cases of mismanagement based solely on failure 169.16 to pay rent, the county may vendor the rent payments to the 169.17 landlord. At the request of a recipient, the state or county 169.18 may make payments directly to vendors of goods and services, but 169.19 only for goods and services appropriate to maintain the health 169.20 and safety of the child, as determined by the county. 169.21 (3) The state or county may ask the recipient to give 169.22 written consent authorizing the state or county to provide 169.23 advance notice to a vendor before vendor payments of rent are 169.24 reduced or terminated. Whenever possible under state and 169.25 federal laws and regulations and if the recipient consents, the 169.26 state or county shall provide at least 30 days notice to vendors 169.27 before vendor payments of rent are reduced or terminated. If 30 169.28 days notice cannot be given, the state or county shall notify 169.29 the vendor within three working days after the date the state or 169.30 county becomes aware that vendor payments of rent will be 169.31 reduced or terminated. When the county notifies a vendor that 169.32 vendor payments of rent will be reduced or terminated, the 169.33 county shall include in the notice that it is illegal to 169.34 discriminate on the grounds that a person is receiving public 169.35 assistance and the penalties for violation. The county shall 169.36 also notify the recipient that it is illegal to discriminate on 170.1 the grounds that a person is receiving public assistance and the 170.2 procedures for filing a complaint. The county agency may 170.3 develop procedures, including using the MAXIS system, to 170.4 implement vendor notice and may charge vendors a fee not 170.5 exceeding $5 to cover notification costs. 170.6 (4) A vendor payment arrangement is not a guarantee that a 170.7 vendor will be paid by the state or county for rent, goods, or 170.8 services furnished to a recipient, and the state and county are 170.9 not liable for any damages claimed by a vendor due to failure of 170.10 the state or county to pay or to notify the vendor on behalf of 170.11 a recipient, except under a specific written agreement between 170.12 the state or county and the vendor or when the state or county 170.13 has provided a voucher guaranteeing payment under certain 170.14 conditions. 170.15 (5) The county shall be paid from state and federal funds 170.16 available therefor the amount provided for in section 256.82. 170.17 (6) Federal funds available for administrative purposes 170.18 shall be distributed between the state and the counties in the 170.19 same proportion that expenditures were made except as provided 170.20 for in section 256.017. 170.21 (7) The affected county may require that assistance paid 170.22 under theAFDCemergency assistance program in the form of a 170.23 utility deposit or rental unit damage deposit, less any amount 170.24 retained by the landlord to remedy a tenant's default in payment 170.25 of rent or other funds due to the landlord pursuant to a rental 170.26 agreement, or to restore the premises to the condition at the 170.27 commencement of the tenancy, ordinary wear and tear excepted, be 170.28 returned to the county when the individual vacates the premises 170.29 or paid to the recipient's new landlord as a vendor payment. 170.30 The vendor payment of returned funds shall not be considered a 170.31 new use of emergency assistance. 170.32 Section 8 is effective July 1, 1997. 170.33 Sec. 9. Minnesota Statutes 1996, section 256.82, 170.34 subdivision 2, is amended to read: 170.35 Subd. 2. [FOSTER CARE MAINTENANCE PAYMENTS.] 170.36 Notwithstanding subdivision 1, for the purposes of foster care 171.1 maintenance payments under Title IV-E of the federal Social 171.2 Security Act, United States Code, title 42, sections 670 to 676, 171.3 during the period beginning July 1, 1985, and ending December 171.4 31, 1985, the county paying the maintenance costs shall be 171.5 reimbursed for the costs from those federal funds available for 171.6 that purpose together with an amount of state funds equal to a 171.7 percentage of the difference between the total cost and the 171.8 federal funds made available for payment. This percentage shall 171.9 not exceed the percentage specified in subdivision 1 for the aid 171.10 to families with dependent children program. In the event that 171.11 the state appropriation for this purpose is less than the state 171.12 percentage set in subdivision 1, the reimbursement shall be 171.13 ratably reduced to the county. Beginning January 1, 1986, for 171.14 the purpose of foster care maintenance payments under Title IV-E 171.15 of the Social Security Act, United States Code, title 42, 171.16 sections 670 to 676, the county paying the maintenance costs 171.17 must be reimbursed for the costs from the federal money 171.18 available for the purpose. Beginning July 1, 1997, for the 171.19 purposes of determining a child's eligibility under title IV-E 171.20 of the Social Security Act, the placing agency shall use AFDC 171.21 requirements as specified in federal law. 171.22 Sec. 10. Minnesota Statutes 1996, section 256.9354, is 171.23 amended by adding a subdivision to read: 171.24 Subd. 8. [SPONSOR'S INCOME AND RESOURCES DEEMED 171.25 AVAILABLE.] When determining eligibility for any federal or 171.26 state benefits under sections 256.9351 to 256.9363 and 256.9366 171.27 to 256.9369, the income and resources of all noncitizens shall 171.28 be deemed to include their sponsors' income and resources as 171.29 defined in the Personal Responsibility and Work Opportunity 171.30 Reconciliation Act of 1996, title IV, Public Law Number 104-193, 171.31 sections 421 and 422. For purposes of this section, "sponsor" 171.32 means an individual or organization. 171.33 Sec. 11. [256.9370] [ASSET REQUIREMENT FOR MINNESOTACARE.] 171.34 Subdivision 1. [DEFINITIONS.] For purposes of this 171.35 section, the following definitions apply. 171.36 (a) "Asset" means cash and other personal property, as well 172.1 as any real property, that a family or individual owns which has 172.2 monetary value. 172.3 (b) "Homestead" means the home that is owned by, and is the 172.4 usual residence of, the family or individual, together with the 172.5 surrounding property which is not separated from the home by 172.6 intervening property owned by others. Public rights-of-way, 172.7 such as roads that run through the surrounding property and 172.8 separate it from the home, will not affect the exemption of the 172.9 property. "Usual residence" includes the home from which the 172.10 family or individual is temporarily absent due to illness, 172.11 employment, or education, or because the home is temporarily not 172.12 habitable due to casualty or natural disaster. 172.13 (c) "Net asset" means the asset's fair market value minus 172.14 any encumbrances, including, but not limited to, liens and 172.15 mortgages. 172.16 Subd. 2. [LIMIT ON TOTAL ASSETS.] (a) Effective April 1, 172.17 1997, or upon federal approval, whichever is later, in order to 172.18 be eligible for the MinnesotaCare program, a household of two or 172.19 more persons must not own more than $30,000 in total net assets, 172.20 and a household of one person must not own more than $15,000 in 172.21 total net assets. 172.22 (b) For purposes of this subdivision, total net assets 172.23 include all assets, with the following exceptions: 172.24 (1) a homestead is not considered; 172.25 (2) household goods and personal effects are not 172.26 considered; and 172.27 (3) capital and operating assets of a trade or business up 172.28 to $200,000 in net assets are not considered. 172.29 (c) If an asset excluded under paragraph (b) has a negative 172.30 value, the negative value shall be subtracted from the total net 172.31 assets under paragraph (a). 172.32 Subd. 3. [DOCUMENTATION.] Assets owned by the individual 172.33 or family must be reported. The commissioner will perform 172.34 random audits to verify reported assets. 172.35 Subd. 4. [PENALTIES.] Individuals or families who are 172.36 found to have knowingly misreported the amount of their assets 173.1 as described in this section shall be subject to the penalties 173.2 in section 256.98. The commissioner shall present 173.3 recommendations on additional penalties to the 1998 legislature. 173.4 Sec. 12. [256.9371] [PENALTIES.] 173.5 Whoever obtains or attempts to obtain, or aids or abets any 173.6 person to obtain by means of a willfully false statement or 173.7 representation, or by the intentional withholding or concealment 173.8 of a material fact, or by impersonation, or other fraudulent 173.9 device: 173.10 (1) benefits under the MinnesotaCare program to which the 173.11 person is not entitled; or 173.12 (2) benefits under the MinnesotaCare program greater than 173.13 that to which the person is reasonably entitled; 173.14 shall be considered to have violated section 256.98, and shall 173.15 be subject to both the criminal and civil penalties provided 173.16 under that section. 173.17 Sec. 13. Minnesota Statutes 1996, section 256B.055, 173.18 subdivision 3, is amended to read: 173.19 Subd. 3. [AFDC FAMILIES.] Until January 1, 1998, medical 173.20 assistance may be paid for a person who is eligible for or 173.21 receiving, or who would be eligible for, except for excess 173.22 income or assets, public assistance under the aid to families 173.23 with dependent children program in effect as of July 16, 1996, 173.24 as required by the Personal Responsibility and Work Opportunity 173.25 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193. 173.26 Sec. 14. Minnesota Statutes 1996, section 256B.055, is 173.27 amended by adding a subdivision to read: 173.28 Subd. 3a. [MFIP-S FAMILIES; FAMILIES ELIGIBLE UNDER PRIOR 173.29 AFDC RULES.] (a) Beginning January 1, 1998, or on the date that 173.30 MFIP-S is implemented in counties which choose the MFIP-S early 173.31 implementation option under section 256J.50, medical assistance 173.32 may be paid for a person receiving public assistance under the 173.33 MFIP-S program. 173.34 (b) Beginning January 1, 1998, or on the date that MFIP-S 173.35 is implemented in counties which elect to implement MFIP-S 173.36 earlier under section 256J.50, medical assistance may be paid 174.1 for a person who would have been eligible for public assistance 174.2 under the income and resource standards and deprivation 174.3 requirements, or who would have been eligible but for excess 174.4 income or assets, under the state's AFDC plan in effect as of 174.5 July 16, 1996, as required by the Personal Responsibility and 174.6 Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 174.7 Number 104-193. 174.8 Sec. 15. Minnesota Statutes 1996, section 256B.055, 174.9 subdivision 5, is amended to read: 174.10 Subd. 5. [PREGNANT WOMEN; DEPENDENT UNBORN CHILD.] Medical 174.11 assistance may be paid for a pregnant woman who has written 174.12 verification of a positive pregnancy test from a physician or 174.13 licensed registered nurse, who meets the other eligibility 174.14 criteria of this section and who would be categorically eligible 174.15 for assistance under theaid to families with dependent children174.16programstate's AFDC plan in effect as of July 16, 1996, as 174.17 required by the Personal Responsibility and Work Opportunity 174.18 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 174.19 if the child had been born and was living with the woman. For 174.20 purposes of this subdivision, a woman is considered pregnant for 174.21 60 days postpartum. 174.22 Sec. 16. Minnesota Statutes 1996, section 256B.056, 174.23 subdivision 1a, is amended to read: 174.24 Subd. 1a. [INCOME AND ASSETS GENERALLY.] Unless 174.25 specifically required by state law or rule or federal law or 174.26 regulation, the methodologies used in counting income and assets 174.27 to determine eligibility for medical assistance for persons 174.28 whose eligibility category is based on blindness, disability, or 174.29 age of 65 or more years, the methodologies for the supplemental 174.30 security income program shall be used, except that payments made 174.31pursuantaccording to a court order for the support of children 174.32 shall be excluded from income in an amount not to exceed the 174.33 difference between the applicable income standard used in the 174.34 state's medical assistance program for aged, blind, and disabled 174.35 persons and the applicable income standard used in the state's 174.36 medical assistance program for families with children. 175.1 Exclusion of court-ordered child support payments is subject to 175.2 the condition that if there has been a change in the financial 175.3 circumstances of the person with the legal obligation to pay 175.4 support since the support order was entered, the person with the 175.5 legal obligation to pay support has petitioned for modification 175.6 of the support order. For families and children, which includes 175.7 all other eligibility categories, the methodologiesfor the aid175.8to families with dependent children program under section 256.73175.9 under the state's AFDC plan in effect as of July 16, 1996, as 175.10 required by the Personal Responsibility and Work Opportunity 175.11 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 175.12 shall be used. Effective upon federal approval, in-kind 175.13 contributions to, and payments made on behalf of, a recipient, 175.14 by an obligor, in satisfaction of or in addition to a temporary 175.15 or permanent order for child support or maintenance, shall be 175.16 considered income to the recipient. For these purposes, a 175.17 "methodology" does not include an asset or income standard, or 175.18 accounting method, or method of determining effective dates. 175.19 Sec. 17. Minnesota Statutes 1996, section 256B.056, 175.20 subdivision 3, is amended to read: 175.21 Subd. 3. [ASSET LIMITATIONS.] To be eligible for medical 175.22 assistance, a person must not individually own more than $3,000 175.23 in assets, or if a member of a household with two family 175.24 members,(husband and wife, or parent and child), the household 175.25 must not own more than $6,000 in assets, plus $200 for each 175.26 additional legal dependent. In addition to these maximum 175.27 amounts, an eligible individual or family may accrue interest on 175.28 these amounts, but they must be reduced to the maximum at the 175.29 time of an eligibility redetermination. The accumulation of the 175.30 clothing and personal needs allowancepursuantaccording to 175.31 section 256B.35 must also be reduced to the maximum at the time 175.32 of the eligibility redetermination. The value of assets that 175.33 are not considered in determining eligibility for medical 175.34 assistance is the value of those assetsthat are excluded by the175.35aid to families with dependent children programexcluded under 175.36 the AFDC state plan as of July 16, 1996, as required by the 176.1 Personal Responsibility and Work Opportunity Reconciliation Act 176.2 of 1996 (PRWORA), Public Law Number 104-193, for families and 176.3 children, and the supplemental security income program for aged, 176.4 blind, and disabled persons, with the following exceptions: 176.5 (a) Household goods and personal effects are not considered. 176.6 (b) Capital and operating assets of a trade or business 176.7 that the local agency determines are necessary to the person's 176.8 ability to earn an income are not considered. 176.9 (c) Motor vehicles are excluded to the same extent excluded 176.10 by the supplemental security income program. 176.11 (d) Assets designated as burial expenses are excluded to 176.12 the same extent excluded by the supplemental security income 176.13 program. 176.14 Sec. 18. Minnesota Statutes 1996, section 256B.056, 176.15 subdivision 4, is amended to read: 176.16 Subd. 4. [INCOME.] To be eligible for medical assistance, 176.17 a person must not have, or anticipate receiving, semiannual 176.18 income in excess of 120 percent of the income standards by 176.19 family size usedinunder the aid to families with dependent 176.20 childrenprogramstate plan as of July 16, 1996, as required by 176.21 the Personal Responsibility and Work Opportunity Reconciliation 176.22 Act of 1996 (PRWORA), Public Law Number 104-193, except that 176.23 families and children may have an income up to 133-1/3 percent 176.24 of the AFDC income standard. In computing income to determine 176.25 eligibility of persons who are not residents of long-term care 176.26 facilities, the commissioner shall disregard increases in income 176.27 as required by Public Law Numbers 94-566, section 503; 99-272; 176.28 and 99-509. Veterans aid and attendance benefits are considered 176.29 income to the recipient. 176.30 Sec. 19. Minnesota Statutes 1996, section 256B.057, 176.31 subdivision 1, is amended to read: 176.32 Subdivision 1. [PREGNANT WOMEN AND INFANTS.] (a) An infant 176.33 less than one year of age or a pregnant woman who has written 176.34 verification of a positive pregnancy test from a physician or 176.35 licensed registered nurse, is eligible for medical assistance if 176.36 countable family income is equal to or less than 275 percent of 177.1 the federal poverty guideline for the same family size. For 177.2 purposes of this subdivision, "countable family income" means 177.3 the amount of income considered available using the methodology 177.4 of the AFDC program under the state's AFDC plan as of July 16, 177.5 1996, as required by the Personal Responsibility and Work 177.6 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 177.7 Number 104-193, except for the earned income disregard and 177.8 employment deductions. An amount equal to the amount of earned 177.9 income exceeding 275 percent of the federal poverty guideline, 177.10 up to a maximum of the amount by which the combined total of 185 177.11 percent of the federal poverty guideline plus the earned income 177.12 disregards and deductions of the AFDC program under the state's 177.13 AFDC plan as of July 16, 1996, as required by the Personal 177.14 Responsibility and Work Opportunity Reconciliation Act of 1996 177.15 (PRWORA), Public Law Number 104-193, exceeds 275 percent of the 177.16 federal poverty guideline will be deducted for pregnant women 177.17 and infants less than one year of age. Eligibility for a 177.18 pregnant woman or infant less than one year of age under this 177.19 subdivision must be determined without regard to asset standards 177.20 established in section 256B.056, subdivision 3. 177.21 (b) An infant born on or after January 1, 1991, to a woman 177.22 who was eligible for and receiving medical assistance on the 177.23 date of the child's birth shall continue to be eligible for 177.24 medical assistance without redetermination until the child's 177.25 first birthday, as long as the child remains in the woman's 177.26 household. 177.27 Sec. 20. Minnesota Statutes 1996, section 256B.057, 177.28 subdivision 1b, is amended to read: 177.29 Subd. 1b. [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 177.30 This subdivision supersedes subdivision 1 as long as the 177.31 Minnesota health care reform waiver remains in effect. When the 177.32 waiver expires, the commissioner of human services shall publish 177.33 a notice in the State Register and notify the revisor of 177.34 statutes. An infant less than two years of age or a pregnant 177.35 woman who has written verification of a positive pregnancy test 177.36 from a physician or licensed registered nurse, is eligible for 178.1 medical assistance if countable family income is equal to or 178.2 less than 275 percent of the federal poverty guideline for the 178.3 same family size. For purposes of this subdivision, "countable 178.4 family income" means the amount of income considered available 178.5 using the methodology of the AFDC program under the state's AFDC 178.6 plan as of July 16, 1996, as required by the Personal 178.7 Responsibility and Work Opportunity Reconciliation Act of 1996 178.8 (PRWORA), Public Law Number 104-193, except for the earned 178.9 income disregard and employment deductions. An amount equal to 178.10 the amount of earned income exceeding 275 percent of the federal 178.11 poverty guideline, up to a maximum of the amount by which the 178.12 combined total of 185 percent of the federal poverty guideline 178.13 plus the earned income disregards and deductions of the AFDC 178.14 program under the state's AFDC plan as of July 16, 1996, as 178.15 required by the Personal Responsibility and Work Opportunity 178.16 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 178.17 exceeds 275 percent of the federal poverty guideline will be 178.18 deducted for pregnant women and infants less than two years of 178.19 age. Eligibility for a pregnant woman or infant less than two 178.20 years of age under this subdivision must be determined without 178.21 regard to asset standards established in section 256B.056, 178.22 subdivision 3. 178.23 (b) An infant born on or after January 1, 1991, to a woman 178.24 who was eligible for and receiving medical assistance on the 178.25 date of the child's birth shall continue to be eligible for 178.26 medical assistance without redetermination until the child's 178.27 second birthday, as long as the child remains in the woman's 178.28 household. 178.29 Sec. 21. Minnesota Statutes 1996, section 256B.057, 178.30 subdivision 2b, is amended to read: 178.31 Subd. 2b. [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS; 178.32 EXPANSION.] This subdivision supersedes subdivision 2a as long 178.33 as the Minnesota health care reform waiver remains in effect. 178.34 When the waiver expires, this subdivision expires and the 178.35 commissioner of human services shall publish a notice in the 178.36 State Register and notify the revisor of statutes. Eligibility 179.1 for medical assistance for a person under age 21, and the 179.2 person's parents or relative caretakers as definedin the aid to179.3families with dependent children program according to chapter179.4256, who are eligible under section 256B.055, subdivision179.53under the state's AFDC plan in effect as of July 16, 1996, as 179.6 required by the Personal Responsibility and Work Opportunity 179.7 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 179.8 and who live in the same household as the person eligible under 179.9 age 21, must be determined without regard to asset standards 179.10 established in section 256B.056. 179.11 Sec. 22. Minnesota Statutes 1996, section 256B.06, 179.12 subdivision 4, is amended to read: 179.13 Subd. 4. [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 179.14 medical assistance is limited to citizens of the United 179.15 Statesand aliens lawfully admitted for permanent residence or179.16otherwise permanently residing in the United States under the179.17color of law. Aliens who are seeking legalization under the179.18Immigration Reform and Control Act of 1986, Public Law Number179.1999-603, who are under age 18, over age 65, blind, disabled, or179.20Cuban or Haitian, and who meet the eligibility requirements of179.21medical assistance under subdivision 1 and sections 256B.055 to179.22256B.062 are eligible to receive medical assistance. Pregnant179.23women who are aliens seeking legalization under the Immigration179.24Reform and Control Act of 1986, Public Law Number 99-603, and179.25who meet the eligibility requirements of medical assistance179.26under subdivision 1 are eligible for payment of care and179.27services through the period of pregnancy and six weeks179.28postpartum. Payment shall also be made for care and services179.29that are furnished to an alien, regardless of immigration179.30status, who otherwise meets the eligibility requirements of this179.31section if such care and services are necessary for the179.32treatment of an emergency medical condition, except for organ179.33transplants and related care and services. For purposes of this179.34subdivision, the term "emergency medical condition" means a179.35medical condition, including labor and delivery, that if not179.36immediately treated could cause a person physical or mental180.1disability, continuation of severe pain, or death., qualified 180.2 noncitizens as defined in this subdivision, and other persons 180.3 residing lawfully in the United States. 180.4 (b) "Qualified noncitizen" means a person who meets one of 180.5 the following immigration criteria: 180.6 (1) admitted for lawful permanent residence according to 180.7 United States Code, title 8; 180.8 (2) admitted to the United States as a refugee according to 180.9 United States Code, title 8, section 1157; 180.10 (3) granted asylum according to United States Code, title 180.11 8, section 1158; 180.12 (4) granted withholding of deportation according to United 180.13 States Code, title 8, section 1253(h); 180.14 (5) paroled for a period of at least one year according to 180.15 United States Code, title 8, section 1182(d)(5); 180.16 (6) granted conditional entrant status according to United 180.17 States Code, title 8, section 1153(a)(7); or 180.18 (7) determined to be a battered noncitizen by the United 180.19 States Attorney General according to the Illegal Immigration 180.20 Reform and Immigrant Responsibility Act of 1996, title V of the 180.21 Omnibus Consolidated Appropriations Bill, Public Law Number 180.22 104-200. 180.23 (c) All qualified noncitizens who were residing in the 180.24 United States before August 22, 1996, who otherwise meet the 180.25 eligibility requirements of chapter 256B, are eligible for 180.26 medical assistance with federal financial participation. 180.27 (d) All qualified noncitizens who entered the United States 180.28 on or after August 22, 1996, and who otherwise meet the 180.29 eligibility requirements of chapter 256B, are eligible for 180.30 medical assistance with federal financial participation through 180.31 November 30, 1996. 180.32 Beginning December 1, 1996, qualified noncitizens who 180.33 entered the United States on or after August 22, 1996, and who 180.34 otherwise meet the eligibility requirements of chapter 256B are 180.35 eligible for medical assistance with federal participation for 180.36 five years if they meet one of the following criteria: 181.1 (i) refugees admitted to the United States according to 181.2 United States Code, title 8, section 1157; 181.3 (ii) persons granted asylum according to United States 181.4 Code, title 8, section 1158; 181.5 (iii) persons granted withholding of deportation according 181.6 to United States code, title 8, section 1253(h); 181.7 (iv) veterans of the United States Armed Forces with an 181.8 honorable discharge for a reason other than noncitizen status, 181.9 their spouses and unmarried minor dependent children; or 181.10 (v) persons on active duty in the United States Armed 181.11 Forces, other than for training, their spouses and unmarried 181.12 minor dependent children. 181.13 Beginning December 1, 1996, qualified noncitizens who do 181.14 not meet one of the criteria in items (i) to (v) are eligible 181.15 for medical assistance without federal financial participation 181.16 as described in paragraph (j). 181.17 (e) Noncitizens who are not qualified noncitizens as 181.18 defined in paragraph (b), who are lawfully residing in the 181.19 United States and who otherwise meet the eligibility 181.20 requirements of chapter 256B, are eligible for medical 181.21 assistance under clauses (1) to (3). These individuals must 181.22 cooperate with the Immigration and Naturalization Service to 181.23 pursue any applicable immigration status, including citizenship, 181.24 that would qualify them for medical assistance with federal 181.25 financial participation. 181.26 (1) Persons who were medical assistance recipients on 181.27 August 22, 1996, are eligible for medical assistance with 181.28 federal financial participation through December 31, 1996. 181.29 (2) Beginning January 1, 1997, persons described in clause 181.30 (1) are eligible for medical assistance without federal 181.31 financial participation as described in paragraph (j). 181.32 (3) Beginning December 1, 1996, persons residing in the 181.33 United States prior to August 22, 1996, who were not receiving 181.34 medical assistance and persons who arrived on or after August 181.35 22, 1996, are eligible for medical assistance without federal 181.36 financial participation as described in paragraph (j). 182.1 (f) Nonimmigrants who otherwise meet the eligibility 182.2 requirements of chapter 256B are eligible for the benefits as 182.3 provided in paragraphs (g) to (i). For purposes of this 182.4 subdivision, a "nonimmigrant" is a person in one of the classes 182.5 listed in United States Code, title 8, section 1101(a)(15). 182.6 (g) Payment shall also be made for care and services that 182.7 are furnished to noncitizens, regardless of immigration status, 182.8 who otherwise meet the eligibility requirements of chapter 256B, 182.9 if such care and services are necessary for the treatment of an 182.10 emergency medical condition, except for organ transplants and 182.11 related care and services and routine prenatal care. 182.12 (h) For purposes of this subdivision, the term "emergency 182.13 medical condition" means a medical condition that meets the 182.14 requirements of United States Code, title 42, section 1396b(v). 182.15 (i) Pregnant noncitizens who are undocumented or 182.16 nonimmigrants, who otherwise meet the eligibility requirements 182.17 of chapter 256B, are eligible for medical assistance payment 182.18 without federal financial participation for care and services 182.19 through the period of pregnancy, except for labor and delivery, 182.20 and 60 days postpartum. 182.21 (j) Qualified noncitizens as described in paragraph (d), 182.22 and all other noncitizens lawfully residing in the United States 182.23 as described in paragraph (e), who are ineligible for medical 182.24 assistance with federal financial participation and who 182.25 otherwise meet the eligibility requirements of chapter 256B and 182.26 of this paragraph, are eligible for medical assistance without 182.27 federal financial participation. Qualified noncitizens as 182.28 described in paragraph (d) are only eligible for medical 182.29 assistance without federal financial participation for five 182.30 years from their date of entry into the United States. 182.31 (k) The commissioner shall submit to the legislature by 182.32 December 31, 1998, a report on the number of recipients and cost 182.33 of coverage of care and services made according to paragraphs 182.34 (i) and (j). 182.35 (l) To receive medical assistance without federal financial 182.36 participation under this subdivision, a legal adult noncitizen 183.1 must: 183.2 (1) be enrolled in a literacy class, English as a second 183.3 language class, or a citizen class; 183.4 (2) be applying for admission to a literacy class, English 183.5 as a second language class, and is on a waiting list; 183.6 (3) be in the process of applying for a waiver from the 183.7 Immigration and Naturalization Service of the English language 183.8 or civics requirements of the citizenship test; 183.9 (4) have submitted an application for citizenship to the 183.10 Immigration and Naturalization Service and is waiting for a 183.11 testing date or a subsequent swearing in ceremony; or 183.12 (5) have been denied citizenship due to a failure to pass 183.13 the test after two attempts or because of an inability to 183.14 understand the rights and responsibilities of becoming a United 183.15 States citizen, as documented by the Immigration and 183.16 Naturalization Service or the county. 183.17 Sec. 23. Minnesota Statutes 1996, section 256B.06, is 183.18 amended by adding a subdivision to read: 183.19 Subd. 5. [DEEMING OF SPONSOR INCOME AND RESOURCES.] When 183.20 determining eligibility for any federal or state funded medical 183.21 assistance under this section, the income and resources of all 183.22 noncitizens shall be deemed to include their sponsors' income 183.23 and resources as required under the Personal Responsibility and 183.24 Work Opportunity Reconciliation Act of 1996, title IV, Public 183.25 Law Number 104-193, sections 421 and 422. For purposes of this 183.26 subdivision "sponsor" means an individual or organization. This 183.27 section is effective the day following final enactment. 183.28 Sec. 24. Minnesota Statutes 1996, section 256B.062, is 183.29 amended to read: 183.30 256B.062 [CONTINUED ELIGIBILITY.] 183.31 Medical assistance may be paid for persons who received aid 183.32 to families with dependent children in at least three of the six 183.33 months preceding the month in which the person became ineligible 183.34 for aid to families with dependent children, if the 183.35 ineligibility was due to an increase in hours of employment or 183.36 employment income or due to the loss of an earned income 184.1 disregard. A person who is eligible for extended medical 184.2 assistance is entitled to six months of assistance without 184.3 reapplication, unless the assistance unit ceases to include a 184.4 dependent child. For a person under 21 years of age, medical 184.5 assistance may not be discontinued within the six-month period 184.6 of extended eligibility until it has been determined that the 184.7 person is not otherwise eligible for medical assistance. 184.8 Medical assistance may be continued for an additional six months 184.9 if the person meets all requirements for the additional six 184.10 months, according to Title XIX of the Social Security Act, as 184.11 amended by section 303 of the Family Support Act of 1988, Public 184.12 Law Number 100-485. This section is repealed effective January 184.13 1, 1998. 184.14 Sec. 25. [256B.0635] [CONTINUED ELIGIBILITY IN SPECIAL 184.15 CIRCUMSTANCES.] 184.16 Subdivision 1. [INCREASED EMPLOYMENT.] Beginning January 184.17 1, 1998, or on the date that MFIP-S is implemented in counties 184.18 which elect to implement MFIP-S earlier under section 256J.50, 184.19 medical assistance may be paid for persons who received MFIP-S 184.20 or medical assistance for families and children in at least 184.21 three of six months preceding the month in which the person 184.22 became ineligible for MFIP-S or medical assistance, if the 184.23 ineligibility was due to an increase in hours of employment or 184.24 employment income or due to the loss of an earned income 184.25 disregard. In addition, to receive continued assistance under 184.26 this section, persons who received medical assistance for 184.27 families and children but did not receive MFIP-S must have had 184.28 income less than or equal to the assistance standard for their 184.29 family size under the state's AFDC plan in effect as of July 16, 184.30 1996, as required by the Personal Responsibility and Work 184.31 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 184.32 Number 104-193, at the time medical assistance eligibility 184.33 began. A person who is eligible for extended medical assistance 184.34 is entitled to six months of assistance without reapplication, 184.35 unless the assistance unit ceases to include a dependent child. 184.36 For a person under 21 years of age, medical assistance may not 185.1 be discontinued within the six-month period of extended 185.2 eligibility until it has been determined that the person is not 185.3 otherwise eligible for medical assistance. Medical assistance 185.4 may be continued for an additional six months if the person 185.5 meets all requirements for the additional six months, according 185.6 to Title XIX of the Social Security Act, as amended by section 185.7 303 of the Family Support Act of 1988, Public Law Number 100-485. 185.8 Subd. 2. [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 185.9 January 1, 1998, or on the date that MFIP-S is implemented in 185.10 counties which elect to implement MFIP-S earlier under section 185.11 256J.50, medical assistance may be paid for persons who received 185.12 MFIP-S or medical assistance for families and children in at 185.13 least three of the six months preceding the month in which the 185.14 person became ineligible for MFIP-S or medical assistance, if 185.15 the ineligibility was the result of the collection of child or 185.16 spousal support under part D of title IV. In addition, to 185.17 receive continued assistance under this section, persons who 185.18 received medical assistance for families and children but did 185.19 not receive MFIP-S must have had income less than or equal to 185.20 the assistance standard for their family size under the state's 185.21 AFDC plan in effect as of July 16, 1996, as required by the 185.22 Personal Responsibility and Work Opportunity Reconciliation Act 185.23 of 1996 (PRWORA), Public Law Number 104-193, at the time medical 185.24 assistance eligibility began. A person who is eligible for 185.25 extended medical assistance under this subdivision is entitled 185.26 to four months of assistance without reapplication, unless the 185.27 assistance unit ceases to include a dependent child. For a 185.28 person under 21 years of age, medical assistance may not be 185.29 discontinued within the four-month period of extended 185.30 eligibility until it has been determined that the person is not 185.31 otherwise eligible for medical assistance. 185.32 Sec. 26. Minnesota Statutes 1996, section 256D.01, 185.33 subdivision 1, is amended to read: 185.34 Subdivision 1. [POLICY.] The objectives of sections 185.35 256D.01 to 256D.21 are to provide a sound administrative 185.36 structure for public assistance programs; to maximize the use of 186.1 federal money for public assistance purposes; to provide an 186.2 integrated public assistance program forall personseligible 186.3 households in the state without adequate income or resources to 186.4 maintain a subsistence reasonably compatible with decency and 186.5 health; and to provide services to help employable and 186.6 potentially employable persons prepare for and attain 186.7 self-sufficiency and obtain permanent work. 186.8 It isdeclared to bethe policy of this state thatpersons186.9 eligible households unable to provide for themselves and not 186.10 otherwise provided for by lawandwho meet the eligibility 186.11 requirements of sections 256D.01 to 256D.21 are entitled to 186.12 receive grants of general assistance necessary to maintain a 186.13 subsistence reasonably compatible with decency and health. 186.14 Providing this assistance is a matter of public concern and a 186.15 necessity in promoting the public health and welfare. 186.16 Section 23 is effective January 1, 1998. 186.17 Sec. 27. Minnesota Statutes 1996, section 256D.01, 186.18 subdivision 1a, is amended to read: 186.19 Subd. 1a. [STANDARDS.] (a) A principal objective in 186.20 providing general assistance is to provide forpersonssingle 186.21 adults or childless couples ineligible for federal programs who 186.22 are unable to provide for themselves. The minimum standard of 186.23 assistance determines the total amount of the general assistance 186.24 grant without separate standards for shelter, utilities, or 186.25 other needs. 186.26 (b) The commissioner shall set the standard of assistance 186.27 for an assistance unit consisting of an adult recipient who is 186.28 childless and unmarried or living apart from children and spouse 186.29 and who does not live with a parent or parents or a legal 186.30 custodian. When the other standards specified in this 186.31 subdivision increase, this standard must also be increased by 186.32 the same percentage. 186.33 (c) For an assistance unit consisting of a single adult who 186.34 lives with a parent or parents, the general assistance standard 186.35 of assistance is the amount that the aid to families with 186.36 dependent children standard of assistance, in effect on July 16, 187.1 1996, would increase if the recipient were added as an 187.2 additional minor child to an assistance unit consisting of the 187.3 recipient's parent and all of that parent's family members, 187.4 except that the standard may not exceed the standard for a 187.5 general assistance recipient living alone. Benefits received by 187.6 a responsible relative of the assistance unit under the 187.7 supplemental security income program, a workers' compensation 187.8 program, the Minnesota supplemental aid program, or any other 187.9 program based on the responsible relative's disability, and any 187.10 benefits received by a responsible relative of the assistance 187.11 unit under the social security retirement program, may not be 187.12 counted in the determination of eligibility or benefit level for 187.13 the assistance unit. Except as provided below, the assistance 187.14 unit is ineligible for general assistance if the available 187.15 resources or the countable income of the assistance unit and the 187.16 parent or parents with whom the assistance unit lives are such 187.17 that a family consisting of the assistance unit's parent or 187.18 parents, the parent or parents' other family members and the 187.19 assistance unit as the only or additional minor child would be 187.20 financially ineligible for general assistance. For the purposes 187.21 of calculating the countable income of the assistance unit's 187.22 parent or parents, the calculation methods, income deductions, 187.23 exclusions, and disregards used when calculating the countable 187.24 income for a single adult or childless couple must be used. 187.25 (d) For an assistance unit consisting of a childless 187.26 couple, the standards of assistance are the same as the first 187.27 and second adult standards of the aid to families with dependent 187.28 children program in effect on July 16, 1996. If one member of 187.29 the couple is not included in the general assistance grant, the 187.30 standard of assistance for the other is the second adult 187.31 standard of the aid to families with dependent children program. 187.32(e) For an assistance unit consisting of all members of a187.33family, the standards of assistance are the same as the187.34standards of assistance that apply to a family under the aid to187.35families with dependent children program if that family had the187.36same number of parents and children as the assistance unit under188.1general assistance and if all members of that family were188.2eligible for the aid to families with dependent children188.3program. If one or more members of the family are not included188.4in the assistance unit for general assistance, the standards of188.5assistance for the remaining members are the same as the188.6standards of assistance that apply to an assistance unit188.7composed of the entire family, less the standards of assistance188.8for a family of the same number of parents and children as those188.9members of the family who are not in the assistance unit for188.10general assistance. In no case shall the standard for family188.11members who are in the assistance unit for general assistance,188.12when combined with the standard for family members who are not188.13in the general assistance unit, total more than the standard for188.14the entire family if all members were in an AFDC assistance188.15unit. A child may not be excluded from the assistance unit188.16unless income intended for its benefit is received from a188.17federally aided categorical assistance program or supplemental188.18security income. The income of a child who is excluded from the188.19assistance unit may not be counted in the determination of188.20eligibility or benefit level for the assistance unit.188.21(f) An assistance unit consisting of one or more members of188.22a family must have its grant determined using the policies and188.23procedures of the aid to families with dependent children188.24program, except that, until June 30, 1995, in cases where a188.25county agency has developed or approved a case plan that188.26includes reunification with the children, foster care188.27maintenance payments made under state or local law for a child188.28who is temporarily absent from the assistance unit must not be188.29considered income to the child and the payments must not be188.30counted in the determination of the eligibility or benefit level188.31of the assistance unit. Otherwise, the standard of assistance188.32must be determined according to paragraph (e); the first $50 of188.33total child support received by an assistance unit in a month188.34must be excluded and the balance counted as unearned income.188.35 Section 24 is effective January 1, 1998. 188.36 Sec. 28. Minnesota Statutes 1996, section 256D.01, 189.1 subdivision 1e, is amended to read: 189.2 Subd. 1e. [RULES REGARDING EMERGENCY ASSISTANCE.]In order189.3to maximize the use of federal funds,The commissioner shall 189.4 adopt rules, to the extent permitted by federal law, for189.5eligibility for the emergency assistance program under aid to189.6families with dependent children, andunder the terms of 189.7 sections 256D.01 to 256D.21 for general assistance, to require 189.8 use of the emergency program under aid to families with 189.9 dependent children or MFIP-S as the primary financial resource 189.10 when available. The commissioner shall adopt rules for 189.11 eligibility for general assistance of persons with seasonal 189.12 income and may attribute seasonal income to other periods not in 189.13 excess of one year from receipt by an applicant or recipient. 189.14 General assistance payments may not be made for foster care, 189.15 child welfare services, or other social services. Vendor 189.16 payments and vouchers may be issued only as authorized in 189.17 sections 256D.05, subdivision 6, and 256D.09. 189.18 Sec. 29. Minnesota Statutes 1996, section 256D.02, 189.19 subdivision 6, is amended to read: 189.20 Subd. 6. "Child" means an adultor minorchild or 189.21 emancipated minor or, until December 31, 1997, the minor child 189.22 of an individual. 189.23 Sec. 30. Minnesota Statutes 1996, section 256D.02, 189.24 subdivision 12a, is amended to read: 189.25 Subd. 12a. [RESIDENT.] (a) For purposes of eligibility for 189.26 general assistance and general assistance medical care, a person 189.27 must be a resident of this state. 189.28 (b) A "resident" is a person living in the state for at 189.29 least 30 days with the intention of making the person's home 189.30 here and not for any temporary purpose. Notwithstanding section 189.31 256G.03, time spent in a shelter for battered women shall count 189.32 toward satisfying the 30-day residency requirement. All 189.33 applicants for these programs are required to demonstrate the 189.34 requisite intent and can do so in any of the following ways: 189.35 (1) by showing that the applicant maintains a residence at 189.36 a verified address, other than a place of public accommodation. 190.1 An applicant may verify a residence address by presenting a 190.2 valid state driver's license, a state identification card, a 190.3 voter registration card, a rent receipt, a statement by the 190.4 landlord, apartment manager, or homeowner verifying that the 190.5 individual is residing at the address, or other form of 190.6 verification approved by the commissioner; or 190.7 (2) by verifying residencein accordance withaccording to 190.8 Minnesota Rules, part 9500.1219, subpart 3, item C. 190.9(b)(c)An applicant who has been in the state for less190.10than 30 days shall be considered a resident if the applicant can190.11provide documentation:190.12(1) that the applicant was born in the state;190.13(2) that the applicant has been a long-time resident of the190.14state or was formerly a resident of the state for at least 365190.15days and is returning to the state from a temporary absence, as190.16those terms are defined in rules adopted by the commissioner;190.17(3) that the applicant has come to the state to join a190.18close relative which, for purposes of this subdivision, means a190.19parent, grandparent, brother, sister, spouse, or child; or190.20(4) that the applicant has come to this state to accept a190.21bona fide offer of employment for which the applicant is190.22eligible.190.23 For general assistance medical care, a county agency shall 190.24 waive the 30-day residency requirement in cases ofemergencies,190.25includingmedical emergencies, or where unusual hardship would190.26result from denial of general assistance medical care. For 190.27 general assistance, a countymayshall waive the 30-day 190.28 residency requirementin cases of emergencies, including medical190.29emergencies, orwhere unusual hardship would result from denial 190.30 of general assistance. For purposes of this subdivision, 190.31 "unusual hardship" means the applicant is without shelter or is 190.32 without available resources for food. 190.33 The county agency must report to the commissioner within 30 190.34 days on any waiver granted under this section. The county shall 190.35 not deny an application solely because the applicant does not 190.36 meet at least one of the criteria in this subdivision, but shall 191.1 continue to process the application and leave the application 191.2 pending until the residency requirement is met or until 191.3 eligibility or ineligibility is established. 191.4 (d) For purposes of paragraph (c), the following 191.5 definitions apply (1) "metropolitan statistical area" is as 191.6 defined by the U.S. Census Bureau; (2) "shelter" includes any 191.7 shelter that is located within the metropolitan statistical area 191.8 containing the county and for which the applicant is eligible, 191.9 provided the applicant does not have to travel more than 20 191.10 miles to reach the shelter and has access to transportation to 191.11 the shelter. Clause (2) does not apply to counties in the 191.12 Minneapolis-St. Paul metropolitan statistical area. 191.13 (e) For purposes of eligibility for emergency general 191.14 assistance, the 30-day residency requirement in paragraph (b) 191.15 shall not be waived. 191.16 (f) If any provision of this subdivision is enjoined from 191.17 implementation or found unconstitutional by any court of 191.18 competent jurisdiction, the remaining provisions shall remain 191.19 valid and shall be given full effect. 191.20 Section 27 is effective July 1, 1997. 191.21 Sec. 31. [256D.024] [PERSONS PROHIBITED FROM RECEIVING 191.22 GENERAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, MINNESOTA 191.23 SUPPLEMENTAL AID.] 191.24 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 191.25 an applicant has been convicted of a drug offense after July 1, 191.26 1997, the assistance unit is ineligible for benefits under this 191.27 chapter until five years after the applicant has completed terms 191.28 of the court-ordered sentence. Persons subject to the 191.29 limitations imposed by this section who become eligible for 191.30 assistance under this chapter shall be subject to random drug 191.31 testing as a condition of continued eligibility and shall lose 191.32 eligibility for benefits beginning the month following any 191.33 positive test result for an illegal controlled substance. 191.34 (b) For the purposes of this subdivision, "drug offense" 191.35 means a conviction that occurred after July 1, 1997, of sections 191.36 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 192.1 means a conviction in another jurisdiction of the possession, 192.2 use, or distribution of a controlled substance, or conspiracy to 192.3 commit any of these offenses, if the offense occurred after July 192.4 1, 1997, and the conviction is a felony offense in that 192.5 jurisdiction, or in the case of New Jersey, a high misdemeanor. 192.6 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 192.7 condition of probation or parole or supervised release imposed 192.8 under federal law or the law of any state is ineligible to 192.9 receive benefits under this chapter. 192.10 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 192.11 avoid prosecution, or custody, or confinement after conviction 192.12 for a crime that is a felony under the laws of the jurisdiction 192.13 from which the individual flees, or in the case of New Jersey, 192.14 is a high misdemeanor, is ineligible to receive benefits under 192.15 this chapter. 192.16 Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 192.17 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 192.18 individual who is convicted in federal or state court of having 192.19 made a fraudulent statement or representation with respect to 192.20 the place of residence of the individual in order to receive 192.21 assistance simultaneously from two or more states is ineligible 192.22 to receive benefits under this chapter for ten years beginning 192.23 on the date of the conviction. 192.24 Sec. 32. Minnesota Statutes 1996, section 256D.03, 192.25 subdivision 3, is amended to read: 192.26 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 192.27 (a) General assistance medical care may be paid for any person 192.28 who is not eligible for medical assistance under chapter 256B, 192.29 including eligibility for medical assistance based on a 192.30 spenddown of excess income according to section 256B.056, 192.31 subdivision 5, and: 192.32 (1) who is receiving assistance under section 256D.05, or 192.33 who is having a payment made on the person's behalf under 192.34 sections 256I.01 to 256I.06; or 192.35 (2)(i) who is a resident of Minnesota; and whose equity in 192.36 assets is not in excess of $1,000 per assistance unit. No asset 193.1 test shall be applied to children and their parents living in 193.2 the same household. Exempt assets, the reduction of excess 193.3 assets, and the waiver of excess assets must conform to the 193.4 medical assistance program in chapter 256B, with the following 193.5 exception: the maximum amount of undistributed funds in a trust 193.6 that could be distributed to or on behalf of the beneficiary by 193.7 the trustee, assuming the full exercise of the trustee's 193.8 discretion under the terms of the trust, must be applied toward 193.9 the asset maximum; and 193.10 (ii) who has countable income not in excess of the 193.11 assistance standards established in section 256B.056, 193.12 subdivision 4, or whose excess income is spent downpursuant193.13 according to section 256B.056, subdivision 5, using a six-month 193.14 budget period, except that a one-month budget period must be 193.15 used for recipients residing in a long-term care facility. The 193.16 method for calculating earned income disregards and deductions 193.17 for a person who resides with a dependent child under age 21 193.18 shallbe as specified in section 256.74, subdivision 1follow 193.19 section 256B.056. However, if a disregard of $30 and one-third 193.20 of the remainder described in section 256.74, subdivision 1, 193.21 clause (4), has been applied to the wage earner's income, the 193.22 disregard shall not be applied again until the wage earner's 193.23 income has not been considered in an eligibility determination 193.24 for general assistance, general assistance medical care, medical 193.25 assistance,oraid to families with dependent children or MFIP-S 193.26 for 12 consecutive months. The earned income and work expense 193.27 deductions for a person who does not reside with a dependent 193.28 child under age 21 shall be the same as the method used to 193.29 determine eligibility for a person under section 256D.06, 193.30 subdivision 1, except the disregard of the first $50 of earned 193.31 income is not allowed; or 193.32 (3) who would be eligible for medical assistance except 193.33 that the person resides in a facility that is determined by the 193.34 commissioner or the federal health care financing administration 193.35 to be an institution for mental diseases. 193.36 (b) Eligibility is available for the month of application, 194.1 and for three months prior to application if the person was 194.2 eligible in those prior months. A redetermination of 194.3 eligibility must occur every 12 months. 194.4 (c) General assistance medical care is not available for a 194.5 person in a correctional facility unless the person is detained 194.6 by law for less than one year in a county correctional or 194.7 detention facility as a person accused or convicted of a crime, 194.8 or admitted as an inpatient to a hospital on a criminal hold 194.9 order, and the person is a recipient of general assistance 194.10 medical care at the time the person is detained by law or 194.11 admitted on a criminal hold order and as long as the person 194.12 continues to meet other eligibility requirements of this 194.13 subdivision. 194.14 (d) General assistance medical care is not available for 194.15 applicants or recipients who do not cooperate with the county 194.16 agency to meet the requirements of medical assistance. 194.17 (e) In determining the amount of assets of an individual, 194.18 there shall be included any asset or interest in an asset, 194.19 including an asset excluded under paragraph (a), that was given 194.20 away, sold, or disposed of for less than fair market value 194.21 within the 60 months preceding application for general 194.22 assistance medical care or during the period of eligibility. 194.23 Any transfer described in this paragraph shall be presumed to 194.24 have been for the purpose of establishing eligibility for 194.25 general assistance medical care, unless the individual furnishes 194.26 convincing evidence to establish that the transaction was 194.27 exclusively for another purpose. For purposes of this 194.28 paragraph, the value of the asset or interest shall be the fair 194.29 market value at the time it was given away, sold, or disposed 194.30 of, less the amount of compensation received. For any 194.31 uncompensated transfer, the number of months of ineligibility, 194.32 including partial months, shall be calculated by dividing the 194.33 uncompensated transfer amount by the average monthly per person 194.34 payment made by the medical assistance program to skilled 194.35 nursing facilities for the previous calendar year. The 194.36 individual shall remain ineligible until this fixed period has 195.1 expired. The period of ineligibility may exceed 30 months, and 195.2 a reapplication for benefits after 30 months from the date of 195.3 the transfer shall not result in eligibility unless and until 195.4 the period of ineligibility has expired. The period of 195.5 ineligibility begins in the month the transfer was reported to 195.6 the county agency, or if the transfer was not reported, the 195.7 month in which the county agency discovered the transfer, 195.8 whichever comes first. For applicants, the period of 195.9 ineligibility begins on the date of the first approved 195.10 application. 195.11 (f) When determining eligibility for any state benefits 195.12 under this subdivision, the income and resources of all 195.13 noncitizens shall be deemed to include their sponsor's income 195.14 and resources as defined in the Personal Responsibility and Work 195.15 Opportunity Reconciliation Act of 1996, title IV, Public Law 195.16 Number 104-193, section 421. 195.17(f)(g)(1)Beginning October 1, 1993,An undocumentedalien195.18 noncitizen or a nonimmigrant is ineligible for general 195.19 assistance medical care other than emergency services. For 195.20 purposes of this subdivision, a nonimmigrant is an individual in 195.21 one or more of the classes listed in United States Code, title 195.22 8, section 1101(a)(15), and an undocumentedaliennoncitizen is 195.23 an individual who resides in the United States without the 195.24 approval or acquiescence of the Immigration and Naturalization 195.25 Service. 195.26 (2) This subdivision does not apply to a child under age 195.27 18, to a Cuban or Haitian entrant as defined in Public Law 195.28 Number 96-422, section 501(e)(1) or (2)(a), or toan aliena 195.29 noncitizen who is aged, blind, or disabled as defined inUnited195.30States Code, title 42, section 1382c(a)(1)Code of Federal 195.31 Regulations, title 42, sections 435.520, 435.530, 435.531, 195.32 435.540, and 435.541, who cooperates with the Immigration and 195.33 Naturalization Service to pursue any applicable immigration 195.34 status, including citizenship, that would qualify the individual 195.35 for medical assistance with federal financial participation. 195.36 (3) For purposes of paragraph (f), "emergency services" has 196.1 the meaning given in Code of Federal Regulations, title 42, 196.2 section 440.255(b)(1), except that it also means services 196.3 rendered because of suspected or actual pesticide poisoning. 196.4 (4) Notwithstanding any other provision of law, a 196.5 noncitizen who is ineligible for medical assistance due to the 196.6 deeming of a sponsor's income and resources, is ineligible for 196.7 general assistance medical care. 196.8 Sec. 33. Minnesota Statutes 1996, section 256D.05, 196.9 subdivision 1, is amended to read: 196.10 Subdivision 1. [ELIGIBILITY.] (a) Eachperson or family196.11whoseassistance unit with income and resourcesareless than 196.12 the standard of assistance established by the commissioner 196.13 and with a member who is a resident of the state shall be 196.14 eligible for and entitled to general assistance if theperson or196.15familyassistance unit is: 196.16 (1) a person who is suffering from a professionally 196.17 certified permanent or temporary illness, injury, or incapacity 196.18 which is expected to continue for more than 30 days and which 196.19 prevents the person from obtaining or retaining employment; 196.20 (2) a person whose presence in the home on a substantially 196.21 continuous basis is required because of the professionally 196.22 certified illness, injury, incapacity, or the age of another 196.23 member of the household; 196.24 (3) a person who has been placed in, and is residing in, a 196.25 licensed or certified facility for purposes of physical or 196.26 mental health or rehabilitation, or in an approved chemical 196.27 dependency domiciliary facility, if the placement is based on 196.28 illness or incapacity and ispursuantaccording to a plan 196.29 developed or approved by the county agency through its director 196.30 or designated representative or in a facility which has been 196.31 designated by the commissioner of corrections as a battered 196.32 women's shelter; 196.33 (4)a person who resides in a shelter facility described in196.34subdivision 3;196.35(5)a person not described in clause (1) or (3) who is 196.36 diagnosed by a licensed physician, psychological practitioner, 197.1 or other qualified professional, as mentally retarded or 197.2 mentally ill, and that condition prevents the person from 197.3 obtaining or retaining employment; 197.4(6)(5) a person who has an application pending for, or is 197.5 appealing termination of benefits from, the social security 197.6 disability program or the program of supplemental security 197.7 income for the aged, blind, and disabled, provided the person 197.8 has a professionally certified permanent or temporary illness, 197.9 injury, or incapacity which is expected to continue for more 197.10 than 30 days and which prevents the person from obtaining or 197.11 retaining employment; 197.12(7)(6) a person who is unable to obtain or retain 197.13 employment because advanced age significantly affects the 197.14 person's ability to seek or engage in substantial work; 197.15(8)(7) a person who has been assessed by a vocational 197.16 specialist and, in consultation with the county agency, has been 197.17 determined to be unemployable for purposes of thisitem,clause; 197.18 a person is considered employable if there exist positions of 197.19 employment in the local labor market, regardless of the current 197.20 availability of openings for those positions, that the person is 197.21 capable of performing. The person's eligibility under this 197.22 category must be reassessed at least annually. The county 197.23 agency must provide notice to the person not later than 30 days 197.24 before annual eligibility under this item ends, informing the 197.25 person of the date annual eligibility will end and the need for 197.26 vocational assessment if the person wishes to continue 197.27 eligibility under this clause. For purposes of establishing 197.28 eligibility under this clause, it is the applicant's or 197.29 recipient's duty to obtain any needed vocational assessment; 197.30(9)(8) a person who is determined by the county agency,in197.31accordance withaccording to permanent rules adopted by the 197.32 commissioner, to be learning disabled, provided that if a 197.33 rehabilitation plan for the person is developed or approved by 197.34 the county agency, the person is following the plan; 197.35(10)(9) a child under the age of 18 who is not living with 197.36 a parent, stepparent, or legal custodian,butand only if: the 198.1 child is legally emancipated or living with an adult with the 198.2 consent of an agency acting as a legal custodian; the child is 198.3 at least 16 years of age and the general assistance grant is 198.4 approved by the director of the county agency or a designated 198.5 representative as a component of a social services case plan for 198.6 the child; or the child is living with an adult with the consent 198.7 of the child's legal custodian and the county agency. For 198.8 purposes of this clause, "legally emancipated" means a person 198.9 under the age of 18 years who: (i) has been married; (ii) is on 198.10 active duty in the uniformed services of the United States; 198.11 (iii) has been emancipated by a court of competent jurisdiction; 198.12 or (iv) is otherwise considered emancipated under Minnesota law, 198.13 and for whom county social services has not determined that a 198.14 social services case plan is necessary, for reasons other 198.15 thanthatthe child has failed or refuses to cooperate with the 198.16 county agency in developing the plan; 198.17(11)(10) until January 1, 1998, a woman in the last 198.18 trimester of pregnancy who does not qualify for aid to families 198.19 with dependent children. A woman who is in the last trimester 198.20 of pregnancy who is currently receiving aid to families with 198.21 dependent children may be granted emergency general assistance 198.22 to meet emergency needs; 198.23(12)(11) a person who is eligible for displaced homemaker 198.24 services, programs, or assistance under section 268.96, but only 198.25 if that person is enrolled as a full-time student; 198.26(13) a person who lives more than two hours round-trip198.27traveling time from any potential suitable employment;198.28(14)(12) a person who is involved with protective or 198.29 court-ordered services that prevent the applicant or recipient 198.30 from working at least four hours per day; 198.31(15)(13) until January 1, 1998, (i) a family as defined in 198.32 section 256D.02, subdivision 5, which is ineligible for the aid 198.33 to families with dependent children program. 198.34 (ii) unless exempt under section 256D.051, subdivision 3a, 198.35 each adult in the unit must participate in and cooperate with 198.36 the food stamp employment and training program under section 199.1 256D.051 each month that the unit receives general assistance 199.2 benefits. The recipient's participation must begin no later 199.3 than the first day of the first full month following the 199.4 determination of eligibility for general assistance benefits. 199.5 To the extent of available resources, and with the county 199.6 agency's consent, the recipient may voluntarily continue to 199.7 participate in food stamp employment and training services for 199.8 up to three additional consecutive months immediately following 199.9 termination of general assistance benefits in order to complete 199.10 the provisions of the recipient's employability development 199.11 plan. If an adult member fails without good cause to 199.12 participate in or cooperate with the food stamp employment and 199.13 training program, the county agency shall concurrently terminate 199.14 that person's eligibility for general assistance and food stamps 199.15for two months or until compliance is achieved, whichever is199.16shorter,using the notice, good cause, conciliation and 199.17 termination procedures specified in section 256D.051; or 199.18(16)(14) a person over age 18 whose primary language is 199.19 not English and who is attending high school at least half time; 199.20 (15) a person under the age of 18 who suffers from 199.21 maladaptive behavior in the personal and behavior function area, 199.22 which for purposes of this section, is defined in the Code of 199.23 Federal Regulations and has the meaning given to these terms as 199.24 of August 21, 1996; or 199.25 (16) a person whose alcohol and drug addiction is a 199.26 material factor that contributes to the person's disability so 199.27 long as the person is receiving treatment from a licensed 199.28 chemical dependency provider, or is on a waiting list to receive 199.29 such treatment. 199.30 (b)Persons or families who are notAssistance units that 199.31 do not include a stateresidentsresident but who are otherwise 199.32 eligible for general assistance may receive emergency general 199.33 assistance to meet emergency needs. 199.34 (c) As a condition of eligibility under paragraph (a), 199.35 clauses (1), (3),(5)(4),(8)(7), and(9)(8), the 199.36 recipient must complete an interim assistance agreement and must 200.1 apply for other maintenance benefits as specified in section 200.2 256D.06, subdivision 5, and must comply with efforts to 200.3 determine the recipient's eligibility for those other 200.4 maintenance benefits. 200.5 (d) The burden of providing documentation for a county 200.6 agency to use to verify eligibility for general assistance or 200.7 for exemption from the food stamp employment and training 200.8 program is upon the applicant or recipient. The county agency 200.9 shall use documents already in its possession to verify 200.10 eligibility, and shall help the applicant or recipient obtain 200.11 other existing verification necessary to determine eligibility 200.12 which the applicant or recipient does not have and is unable to 200.13 obtain. 200.14 Sec. 34. Minnesota Statutes 1996, section 256D.05, 200.15 subdivision 5, is amended to read: 200.16 Subd. 5. [TRANSFERS OF PROPERTY.] The equity value of real 200.17 and personal property transferred without reasonable 200.18 compensation within 12 months preceding the date of application 200.19 for general assistance must be included in determining the 200.20 resources of an assistance unit in the same manner as in the aid 200.21 to families with dependent children program under chapter 256 or 200.22 MFIP-S under chapter 256J. 200.23 Sec. 35. Minnesota Statutes 1996, section 256D.05, 200.24 subdivision 8, is amended to read: 200.25 Subd. 8. [PERSONS INELIGIBLECITIZENSHIP.](a) Beginning200.26October 1, 1993, an undocumented alien or a nonimmigrant is200.27ineligible for general assistance benefits. For purposes of200.28this subdivision, a nonimmigrant is an individual in one or more200.29of the classes listed in United States Code, title 8, section200.301101(a)(15), and an undocumented alien is an individual who200.31resides in the United States without the approval or200.32acquiescence of the Immigration and Naturalization Service.200.33(b) This subdivision does not apply to a child under age200.3418, to a Cuban or Haitian entrant as defined in Public Law200.35Number 96-422, section 501(e)(1) or (2)(a), or to an alien who200.36is aged, blind, or disabled as defined in United States Code,201.1title 42, section 1382c(a)(1).(a) Effective July 1, 1997, 201.2 citizenship requirements for applicants and recipients under 201.3 sections 256D.01 to 256D.21 shall be determined the same as 201.4 under section 256J.11, except that applicants and recipients 201.5 must have been residents of Minnesota on March 1, 1997. The 201.6 income of sponsors of noncitizens shall be deemed available to 201.7 general assistance and general assistance medical care 201.8 applicants and recipients according to the Personal 201.9 Responsibility and Work Opportunity Reconciliation Act of 1996, 201.10 Public Law Number 104-193, Title IV, section 421. For purposes 201.11 of this subdivision "sponsor" means an individual or 201.12 organization. 201.13 (b) As a condition of eligibility, each legal adult 201.14 noncitizen in the assistance unit must: 201.15 (1) be enrolled in a literacy class, English as a second 201.16 language class, or a citizen class; 201.17 (2) be applying for admission to a literacy class, English 201.18 as a second language class, and is on a waiting list; 201.19 (3) be in the process of applying for a waiver from the 201.20 Immigration and Naturalization Service of the English language 201.21 or civics requirements of the citizenship test; 201.22 (4) have submitted an application for citizenship to the 201.23 Immigration and Naturalization Service and is waiting for a 201.24 testing date or a subsequent swearing in ceremony; or 201.25 (5) have been denied citizenship due to a failure to pass 201.26 the test after two attempts or because of an inability to 201.27 understand the rights and responsibilities of becoming a United 201.28 States citizen, as documented by the Immigration and 201.29 Naturalization Service or the county. 201.30 Sec. 36. Minnesota Statutes 1996, section 256D.051, 201.31 subdivision 1a, is amended to read: 201.32 Subd. 1a. [NOTICES; CONCILIATION CONFERENCE;AND 201.33 SANCTIONS.] (a) At the time the county agency notifies the 201.34 household that it is eligible for food stamps, the county agency 201.35 must inform all mandatory employment and training services 201.36 participants as identified in subdivision 1 in the household 202.1 that they must comply with all food stamp employment and 202.2 training program requirements each month, including the 202.3 requirement to attend an initial orientation to the food stamp 202.4 employment and training program and that food stamp eligibility 202.5 will end unless the participants comply with the requirements 202.6 specified in the notice. 202.7 (b) A participant who fails without good cause to comply 202.8 with food stamp employment and training program requirements of 202.9 this section, including attendance at orientation, will lose 202.10 food stamp eligibility fortwo months or until the county agency202.11determines that the participant has complied with the program202.12requirements, whichever is shorter.the following periods: 202.13 (1) for the first occurrence, for one month or until the 202.14 person complies with the requirements not previously complied 202.15 with, whichever is longer; 202.16 (2) for the second occurrence, for three months or until 202.17 the person complies with the requirements not previously 202.18 complied with, whichever is longer; or 202.19 (3) for the third and any subsequent occurrence, for six 202.20 months or until the person complies with the requirements not 202.21 previously complied with, whichever is longer. 202.22 If the participant is not the food stamp head of household, 202.23 the person shall be considered an ineligible household member 202.24 for food stamp purposes. If the participant is the food stamp 202.25 head of household, the entire household is ineligible for food 202.26 stamps as provided in Code of Federal Regulations, title 7, 202.27 section 273.7(g). "Good cause" means circumstances beyond the 202.28 control of the participant, such as illness or injury, illness 202.29 or injury of another household member requiring the 202.30 participant's presence, a household emergency, or the inability 202.31 to obtain child care for children between the ages of six and 12 202.32 or to obtain transportation needed in order for the participant 202.33 to meet the food stamp employment and training program 202.34 participation requirements. 202.35 (c) The county agency shall mail or hand deliver a notice 202.36 to the participant not later than five days after determining 203.1 that the participant has failed without good cause to comply 203.2 with food stamp employment and training program requirements 203.3 which specifies the requirements that were not complied with, 203.4 the factual basis for the determination of noncompliance, and 203.5 the right to reinstate eligibility upon a showing of good 203.6 causeor thefor failure to meet the requirements,. The notice 203.7 must ask the reason for the noncompliance,andmustidentify the 203.8 participant's appeal rights. The notice must request that the 203.9 participant inform the county agency if the participant believes 203.10 that good cause existed for the failure to comply, must offer203.11the participant a conciliation conference as provided in203.12paragraph (d),and must state that the county agency intends to 203.13 terminate eligibility for food stamp benefits due to failure to 203.14 comply with food stamp employment and training program 203.15 requirements. 203.16 (d)The county agency must offer a conciliation conference203.17to participants who have failed to comply with food stamp203.18employment and training program requirements. The purpose of203.19the conference is to determine the cause for noncompliance, to203.20attempt to resolve the problem causing the noncompliance so that203.21all requirements are complied with, and to determine if good203.22cause for noncompliance was present. The conciliation period203.23shall run for ten working days from the date of the notice203.24required in paragraph (c). Information about how to request a203.25conciliation conference must be specified in the notice required203.26in paragraph (c). If the county agency determines that the203.27participant, during the conciliation period, complied with all203.28food stamp employment and training program requirements that the203.29recipient was required to comply with prior to and during the203.30conciliation period, or if the county agency determines that203.31good cause for failing to comply with the requirements was203.32present, a sanction on the participant's or household's food203.33stamp eligibility shall not be imposed.203.34(e)If the county agency determines that the participant 203.35 did not comply during theconciliation periodmonth with all 203.36 food stamp employment and training program requirements that 204.1 were in effectprior to and during the conciliation period, and 204.2 if the county agency determines that good cause was not present, 204.3 the county must provide a ten-day notice of termination of food 204.4 stamp benefits.The termination notice must be issued following204.5the last day of the conciliation period.The amount of food 204.6 stamps that are withheld from the household and determination of 204.7 the impact of the sanction on other household members is 204.8 governed by Code of Federal Regulations, title 7, section 273.7. 204.9(f)(e) The participant may appeal the termination of food 204.10 stamp benefits under the provisions of section 256.045. 204.11 Sec. 37. Minnesota Statutes 1996, section 256D.051, 204.12 subdivision 2a, is amended to read: 204.13 Subd. 2a. [DUTIES OF COMMISSIONER.] In addition to any 204.14 other duties imposed by law, the commissioner shall: 204.15 (1) based on this section and section 256D.052 and Code of 204.16 Federal Regulations, title 7, section 273.7, supervise the 204.17 administration of food stamp employment and training services to 204.18 county agencies; 204.19 (2) disburse money appropriated for food stamp employment 204.20 and training services to county agencies based upon the county's 204.21 costs as specified in section 256D.06; 204.22 (3) accept and supervise the disbursement of any funds that 204.23 may be provided by the federal government or from other sources 204.24 for use in this state for food stamp employment and training 204.25 services;and204.26 (4) cooperate with other agencies including any agency of 204.27 the United States or of another state in all matters concerning 204.28 the powers and duties of the commissioner under this section and 204.29 section 256D.052; and 204.30 (5) in cooperation with the commissioner of economic 204.31 security, ensure that each component of an employment and 204.32 training program carried out under this section is delivered 204.33 through a statewide workforce development system, unless the 204.34 component is not available locally through such a system. 204.35 Sec. 38. Minnesota Statutes 1996, section 256D.051, 204.36 subdivision 3a, is amended to read: 205.1 Subd. 3a. [PERSONS REQUIRED TO REGISTER FOR AND 205.2 PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 205.3 (a) To the extent required under Code of Federal Regulations, 205.4 title 7, section 273.7(a), each applicant for and recipient of 205.5 food stamps is required to register for work as a condition of 205.6 eligibility for food stamp benefits. Applicants and recipients 205.7 are registered by signing an application or annual reapplication 205.8 for food stamps, and must be informed that they are registering 205.9 for work by signing the form. 205.10 (b) The commissioner shall determine, within federal 205.11 requirements, persons required to participate in the food stamp 205.12 employment and training (FSET) program. 205.13 (c) The following food stamp recipients are exempt from 205.14 mandatory participation in food stamp employment and training 205.15 services: 205.16 (1) recipients of benefits under the AFDC program, MFIP-S 205.17 program, Minnesota supplemental aid program, or the general 205.18 assistance program, except that an adult who receives general 205.19 assistance under section 256D.05, subdivision 1, paragraph (b), 205.20 is not exempt unless that person qualifies under one of the 205.21 remaining exemption provisions in this paragraph; 205.22 (2) a child; 205.23 (3) a recipient over age 55; 205.24 (4) a recipient who has a mental or physical illness, 205.25 injury, or incapacity which is expected to continue for at least 205.26 30 days and which impairs the recipient's ability to obtain or 205.27 retain employment as evidenced by professional certification or 205.28 the receipt of temporary or permanent disability benefits issued 205.29 by a private or government source; 205.30 (5) a parent or other household member responsible for the 205.31 care of either a dependent child in the household who is under 205.32 age six or a person in the household who is professionally 205.33 certified as having a physical or mental illness, injury, or 205.34 incapacity. Only one parent or other household member may claim 205.35 exemption under this provision; 205.36 (6) a recipient receiving unemployment compensation or who 206.1 has applied for unemployment compensation and has been required 206.2 to register for work with the department of economic security as 206.3 part of the unemployment compensation application process; 206.4 (7) a recipient participating each week in a drug addiction 206.5 or alcohol abuse treatment and rehabilitation program, provided 206.6 the operators of the treatment and rehabilitation program, in 206.7 consultation with the county agency, recommend that the 206.8 recipient not participate in the food stamp employment and 206.9 training program; 206.10 (8) a recipient employed or self-employed for 30 or more 206.11 hours per week at employment paying at least minimum wage, or 206.12 who earns wages from employment equal to or exceeding 30 hours 206.13 multiplied by the federal minimum wage;or206.14 (9) a student enrolled at least half time in any school, 206.15 training program, or institution of higher education. When 206.16 determining if a student meets this criteria, the school's, 206.17 program's or institution's criteria for being enrolled half time 206.18 shall be used.; or 206.19 (10) a recipient residing with and responsible for the care 206.20 of a minor child. 206.21 Sec. 39. Minnesota Statutes 1996, section 256D.051, is 206.22 amended by adding a subdivision to read: 206.23 Subd. 18. [WORK EXPERIENCE PLACEMENTS.] (a) To the extent 206.24 of available resources, each county agency must establish and 206.25 operate a work experience component in the food stamp employment 206.26 and training program for recipients who are subject to a federal 206.27 limit of three months of food stamp eligibility in any 36-month 206.28 period. The purpose of the work experience component is to 206.29 enhance the participant's employability, self-sufficiency, and 206.30 to provide meaningful, productive work activities. 206.31 (b) The commissioner shall assist counties in the design 206.32 and implementation of these components. The commissioner must 206.33 ensure that job placements under a work experience component 206.34 comply with section 256J.72. Written or oral concurrence with 206.35 job duties of persons placed under the community work experience 206.36 program shall be obtained from the appropriate exclusive 207.1 bargaining representative. 207.2 (c) Worksites developed under this section are limited to 207.3 projects that serve a useful public service such as health, 207.4 social service, environmental protection, education, urban and 207.5 rural development and redevelopment, welfare, recreation, public 207.6 facilities, public safety, community service, services to aged 207.7 or disabled citizens, and child care. To the extent possible, 207.8 the prior training, skills, and experience of a recipient must 207.9 be used in making appropriate work experience assignments. 207.10 (d) Structured, supervised volunteer work with an agency or 207.11 organization that is monitored by the county service provider 207.12 may, with the approval of the county agency, be used as a work 207.13 experience placement. 207.14 (e) As a condition of placing a person receiving food 207.15 stamps in a program under this subdivision, the county agency 207.16 shall first provide the recipient the opportunity: 207.17 (1) for placement in suitable subsidized or unsubsidized 207.18 employment through participation in job search under section 207.19 256D.051; or 207.20 (2) for placement in suitable employment through 207.21 participation in on-the-job training, if such employment is 207.22 available. 207.23 (f) The county agency shall limit the maximum monthly 207.24 number of hours that any participant may work in a work 207.25 experience placement to a number equal to the amount of the 207.26 family's monthly food stamp allotment divided by the greater of 207.27 the federal minimum wage or the applicable state minimum wage. 207.28 After a participant has been assigned to a position for nine 207.29 months, the participant may not continue in that assignment 207.30 unless the maximum number of hours a participant works is no 207.31 greater than the amount of the participant's food stamp 207.32 allotment divided by the rate of pay for individuals employed in 207.33 the same or similar occupations by the same employer at the same 207.34 site. 207.35 (g) The participant's employability development plan must 207.36 include the length of time needed in the work experience 208.1 program, the need to continue job seeking activities while 208.2 participating in work experience, and the participant's 208.3 employment goals. 208.4 (h) After each six months of a recipient's participation in 208.5 a work experience job placement, and at the conclusion of each 208.6 work experience assignment under this section, the county agency 208.7 shall reassess and revise, as appropriate, the participant's 208.8 employability development plan. 208.9 (i) A participant may claim good cause under section 208.10 256J.57 for failure to cooperate with a work experience job 208.11 placement. 208.12 (j) A recipient who has failed without good cause to 208.13 participate in or comply with the work experience job placement 208.14 shall be terminated from participation in work experience job 208.15 activities. If the recipient is not exempt from mandatory food 208.16 stamp employment and training program participation under 208.17 section 256D.051, subdivision 3a, the recipient will be assigned 208.18 to other mandatory program activities. If the recipient is 208.19 exempt from mandatory participation but is participating as a 208.20 volunteer, the person shall be terminated from the food stamp 208.21 employment and training program. 208.22 Sec. 40. [256D.0510] [FEDERAL WAIVER.] 208.23 The commissioner of human services shall exercise the 208.24 authority granted by Public Law Number 104-193, Title VIII, 208.25 section 824, and request the secretary of the United States 208.26 Department of Agriculture to grant waivers of the federal food 208.27 stamp work requirements of section 824, for every county and 208.28 reservation in which the county or reservation has an 208.29 unemployment rate over ten percent. 208.30 Sec. 41. [256D.0512] [BUDGETING LUMP SUMS.] 208.31 Nonrecurring lump-sum income received by a recipient of 208.32 general assistance must be budgeted in the normal retrospective 208.33 cycle. 208.34 Sec. 42. Minnesota Statutes 1996, section 256D.055, is 208.35 amended to read: 208.36 256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 209.1 The commissioner of human services shall issue a request 209.2 for proposals from counties to submit a plan for developing and 209.3 implementing a county-designed program. The plan shall be for 209.4 first-time applicants foraid to families with dependent209.5children (AFDC) and family general assistance (FGA)Minnesota 209.6 family investment program-statewide (MFIP-S) and, until January 209.7 1, 1998, aid to families with dependent children (AFDC) and 209.8 family general assistance and must emphasize the importance of 209.9 becoming employed and oriented into the work force in order to 209.10 become self-sufficient. The plan must target public assistance 209.11 applicants who are most likely to become self-sufficient quickly 209.12 with short-term assistance or services such as child care, child 209.13 support enforcement, or employment and training services. 209.14 The plan may include vendor payments, mandatory job search, 209.15 refocusing existing county or provider efforts, or other program 209.16 features. The commissioner may approve a county plan which 209.17 allows a county to use other program funding for the county work 209.18 focus program in a more flexible manner. Nothing in this 209.19 section shall allow payments made to the public assistance 209.20 applicant to be less than the amount the applicant would have 209.21 received if the program had not been implemented, or reduce or 209.22 eliminate a category of eligible participants from the program 209.23 without legislative approval. 209.24 The commissioner shall not approve a county plan that would 209.25 have an adverse impact on the Minnesota family investment plan 209.26 demonstration. If the plan is approved by the commissioner, the 209.27 county may implement the plan. If the plan is approved by the 209.28 commissioner, but a federal waiver is necessary to implement the 209.29 plan, the commissioner shall apply for the necessary federal 209.30 waivers. 209.31 Sec. 43. [256D.057] [SUPPLEMENT FOR CERTAIN DISABLED 209.32 NONCITIZENS.] 209.33 (a) For an assistance unit that contains an adult or a 209.34 minor legal noncitizen who was residing in this state as of 209.35 March 1, 1997, and lost eligibility for the federal Food Stamp 209.36 and Supplemental Security Income programs under the provisions 210.1 of title IV of Public Law Number 104-193, the amount of 210.2 assistance that the unit is eligible for under section 256D.06 210.3 shall be increased by an amount equal to the value of the food 210.4 stamps that the assistance unit would have been eligible for if 210.5 the noncitizen were a citizen, for each legal noncitizen, 210.6 provided the legal adult noncitizen in the assistance unit is: 210.7 (1) enrolled in a literacy class, English as a second 210.8 language class, or a citizenship class; 210.9 (2) applying for admission to a literacy class, English as 210.10 a second language class, or a citizenship class, and is on a 210.11 waiting list; 210.12 (3) in the process of applying for a waiver from the 210.13 Immigration and Naturalization Service of the English language 210.14 or civics requirements of the citizenship test; 210.15 (4) has submitted an application for citizenship to the 210.16 Immigration and Naturalization Service and is waiting for a 210.17 testing date or a subsequent swearing in ceremony; or 210.18 (5) has been denied citizenship due to a failure to pass 210.19 the test after two attempts or because of an inability to 210.20 understand the rights and responsibilities of becoming a United 210.21 States citizen, as documented by the Immigration and 210.22 Naturalization Service or the county. 210.23 (b) For the period from July 1, 1997, to February 28, 1998, 210.24 an assistance unit shall receive a transitional amount of $100 210.25 per month for each legal noncitizen who qualifies for assistance 210.26 under paragraph (a). 210.27 Section 37 is effective July 1, 1997. 210.28 Sec. 44. Minnesota Statutes 1996, section 256D.06, 210.29 subdivision 2, is amended to read: 210.30 Subd. 2. Notwithstanding the provisions of subdivision 1, 210.31 a grant of general assistance shall be made to an eligible 210.32individual,single adult, married couple, or family for an 210.33 emergency need, as defined in rules promulgated by the 210.34 commissioner, where the recipient requests temporary assistance 210.35 not exceeding 30 days if an emergency situation appears to exist 210.36 and (a) until January 1, 1998, the individual is ineligible for 211.1 the program of emergency assistance under aid to families with 211.2 dependent children and is not a recipient of aid to families 211.3 with dependent children at the time of applicationhereunder; or 211.4 (b) the individual or family is (i) ineligible for MFIP-S or is 211.5 not a participant of MFIP-S; and (ii) is ineligible for 211.6 emergency assistance under section 256J.48. If an applicant or 211.7 recipient relates facts to the county agency which may be 211.8 sufficient to constitute an emergency situation, the county 211.9 agency shall advise the person of the procedure for applying for 211.10 assistancepursuantaccording to this subdivision. 211.11 Sec. 45. Minnesota Statutes 1996, section 256D.06, 211.12 subdivision 5, is amended to read: 211.13 Subd. 5. Any applicant, otherwise eligible for general 211.14 assistance and possibly eligible for maintenance benefits from 211.15 any other source shall (a) make application for those benefits 211.16 within 30 days of the general assistance application; and (b) 211.17 execute an interim assistance authorization agreement on a form 211.18 as directed by the commissioner. If found eligible for benefits 211.19 from other sources, and a payment received from another source 211.20 relates to the period during which general assistance was also 211.21 being received, the recipient shall be required to reimburse the 211.22 county agency for the interim assistance paid. Reimbursement 211.23 shall not exceed the amount of general assistance paid during 211.24 the time period to which the other maintenance benefits apply 211.25 and shall not exceed the state standard applicable to that time 211.26 period. The commissioner shall adopt rules authorizing county 211.27 agencies or other client representatives to retain from the 211.28 amount recovered under an interim assistance agreement 25 211.29 percent plus actual reasonable fees, costs, and disbursements of 211.30 appeals and litigation, of providing special assistance to the 211.31 recipient in processing the recipient's claim for maintenance 211.32 benefits from another source. The money retained under this 211.33 section shall be from the state share of the recovery. The 211.34 commissioner or the county agency may contract with qualified 211.35 persons to provide the special assistance. The rules adopted by 211.36 the commissioner shall include the methods by which county 212.1 agencies shall identify, refer, and assist recipients who may be 212.2 eligible for benefits under federal programs for the disabled. 212.3This subdivision does not require repayment of per diem payments212.4made to shelters for battered women pursuant to section 256D.05,212.5subdivision 3.212.6 Sec. 46. [256D.066] [INTERSTATE PAYMENT STANDARDS.] 212.7 (a) Effective July 1, 1997, the amount of assistance paid 212.8 to an eligible assistance unit in which all members have resided 212.9 in this state for less than 12 consecutive calendar months shall 212.10 be the lesser of either the payment standard that would have 212.11 been received by the assistance unit from the state of immediate 212.12 prior residence, or the amount calculated in accordance with 212.13 this chapter. The lesser payment shall continue until the 212.14 assistance unit meets the 12-month requirement. Payment shall 212.15 be calculated by applying this state's budgeting policies and 212.16 the unit's net income shall be deducted from the payment 212.17 standard in the other state or in this state, whichever is 212.18 lower. At county option, payment shall be made in vendor form 212.19 for rent and utilities, up to the limit of the grant amount, and 212.20 residual amounts, if any, shall be paid directly to the 212.21 assistance unit. 212.22 (b) During the first 12 months an assistance unit resides 212.23 in this state, the number of months that the unit is eligible to 212.24 receive general assistance benefits is limited to the number of 212.25 months the unit would have been eligible to receive similar 212.26 benefits in the state of immediate prior residence. 212.27 (c) This policy applies whether or not the unit received 212.28 similar benefits while residing in the state of previous 212.29 residence. 212.30 (d) When a unit moves to this state from another state 212.31 where the unit has exhausted that state's time limit for 212.32 receiving similar benefits, the unit will not be eligible to 212.33 receive any general assistance benefits in this state for 12 212.34 months from the date the unit moves here. 212.35 (e) Applicants must provide verification of their state of 212.36 immediate prior residence, in the form of tax statements, a 213.1 driver's license, automobile registration, rent receipts, or 213.2 other forms of verification approved by the commissioner. 213.3 (f) For the purposes of this subdivision, "state of 213.4 immediate prior residence" means: 213.5 (i) the state in which the applicant declares the applicant 213.6 spent the most time in the 30 days prior to moving to this 213.7 state; or 213.8 (ii) the applicant is in the migrant work stream and the 213.9 applicant maintains a home in another state. 213.10 Sec. 47. Minnesota Statutes 1996, section 256D.08, 213.11 subdivision 1, is amended to read: 213.12 Subdivision 1. In determining eligibility ofa family,213.13married couple, or individual there shall be excludedan 213.14 assistance unit, the following resources shall be excluded: 213.15 (1) real or personal property or liquid assets which do not 213.16 exceedthose permitted under the federally aided assistance213.17program known as aid to families with dependent children$1,000; 213.18 and 213.19 (2) other property which has been determined,in accordance213.20with and subjectaccording to limitations contained in rules 213.21 promulgated by the commissioner, to be essential tothe family213.22or individualthe assistance unit as a means of self-support or 213.23 self-care or which is producing income that is being used for 213.24 the support of theindividual or familyassistance unit. The 213.25 commissioner shall further provide by rule the conditions for 213.26 those situations in which property not excluded under this 213.27 subdivision may be retained by thefamily or individual213.28 assistance unit where there is a reasonable probability that in 213.29 the foreseeable future the property will be used for the 213.30 self-support of theindividual or familyassistance unit; and 213.31 (3) payments, madepursuantaccording to litigation and 213.32 subsequent appropriation by the United States Congress, of funds 213.33 to compensate members of Indian tribes for the taking of tribal 213.34 land by the federal government. 213.35 Sec. 48. Minnesota Statutes 1996, section 256D.08, 213.36 subdivision 2, is amended to read: 214.1 Subd. 2. Notwithstanding any other provision of sections 214.2 256D.01 to 256D.21, the commissioner shall provide by rule for 214.3 the exclusion of property from the determination of eligibility 214.4 for general assistance when it appears likely that the need for 214.5 general assistance will not exceed 30 days or an undue hardship 214.6 would be imposed onan individual or familyan assistance unit 214.7 by the forced disposal of the property. 214.8 Sec. 49. Minnesota Statutes 1996, section 256D.09, is 214.9 amended by adding a subdivision to read: 214.10 Subd. 2b. [DISABILITY VERIFICATION; DRUG OR ALCOHOL 214.11 DEPENDENCY.] If at any time there is verification that the 214.12 client's disability is dependent upon their continued drug 214.13 addiction or alcoholism, general assistance for rent and 214.14 utilities must be made in the form of vendor payments. 214.15 Verification of drug addiction or alcoholism can be 214.16 received from: 214.17 (1) denial of social security benefits based on drug 214.18 addiction or alcoholism; 214.19 (2) a statement from the state medical review team that the 214.20 person's disability is dependent upon continued drug addiction 214.21 or alcoholism; or 214.22 (3) a doctor's statement that the person's disability is 214.23 dependent upon continued drug addiction or alcoholism. 214.24 Sec. 50. Minnesota Statutes 1996, section 256D.435, 214.25 subdivision 3, is amended to read: 214.26 Subd. 3. [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 214.27 Persons who live with the applicant or recipient, who have unmet 214.28 needs and for whom the applicant or recipient has financial 214.29 responsibility, must apply for and, if eligible, acceptAFDC and214.30otherany federally funded benefits, including MFIP-S. 214.31 Sec. 51. Minnesota Statutes 1996, section 256D.44, 214.32 subdivision 5, is amended to read: 214.33 Subd. 5. [SPECIAL NEEDS.] In addition to the state 214.34 standards of assistance established in subdivisions 1 to 4, 214.35 payments are allowed for the following special needs of 214.36 recipients of Minnesota supplemental aid who are not residents 215.1 of a nursing home, a regional treatment center, or a group 215.2 residential housing facility:. 215.3 (a) The county agency shall pay a monthly allowance for 215.4 medically prescribed diets payable under the AFDC program or 215.5 Minnesota family investment program-statewide if the cost of 215.6 those additional dietary needs cannot be met through some other 215.7 maintenance benefit. 215.8 (b) Payment for nonrecurring special needs must be allowed 215.9 for necessary home repairs or necessary repairs or replacement 215.10 of household furniture and appliances using the payment standard 215.11 of the AFDC program in effect on July 16, 1996, for these 215.12 expenses, as long as other funding sources are not available. 215.13 (c) A fee for guardian or conservator service is allowed at 215.14 a reasonable rate negotiated by the county or approved by the 215.15 court. This rate shall not exceed five percent of the 215.16 assistance unit's gross monthly income up to a maximum of $100 215.17 per month. If the guardian or conservator is a member of the 215.18 county agency staff, no fee is allowed. 215.19 (d) The county agency shall continue to pay a monthly 215.20 allowance of $68 for restaurant meals for a person who was 215.21 receiving a restaurant meal allowance on June 1, 1990, and who 215.22 eats two or more meals in a restaurant daily. The allowance 215.23 must continue until the person has not received Minnesota 215.24 supplemental aid for one full calendar month or until the 215.25 person's living arrangement changes and the person no longer 215.26 meets the criteria for the restaurant meal allowance, whichever 215.27 occurs first. 215.28 (e) A fee of ten percent of the recipient's gross income or 215.29 $25, whichever is less, is allowed for representative payee 215.30 services provided by an agency that meets the requirements under 215.31 SSI regulations to charge a fee for representative payee 215.32 services. This special need is available to all recipients of 215.33 Minnesota supplemental aid regardless of their living 215.34 arrangement. 215.35 Sec. 52. Minnesota Statutes 1996, section 259.67, 215.36 subdivision 4, is amended to read: 216.1 Subd. 4. [ELIGIBILITY CONDITIONS.] (a) The placing agency 216.2 shalldetermineuse the AFDC requirements as specified in 216.3 federal law, when determining the child's eligibility for 216.4 adoption assistance under title IV-E of the Social Security 216.5 Act. If the child does not qualify, the placing agency shall 216.6 certify a child as eligible for state funded adoption assistance 216.7 only if the following criteria are met: 216.8 (1) Due to the child's characteristics or circumstances it 216.9 would be difficult to provide the child an adoptive home without 216.10 adoption assistance. 216.11 (2)(i) A placement agency has made reasonable efforts to 216.12 place the child for adoption without adoption assistance, but 216.13 has been unsuccessful; or 216.14 (ii) the child's licensed foster parents desire to adopt 216.15 the child and it is determined by the placing agency that the 216.16 adoption is in the best interest of the child. 216.17 (3) The child has been a ward of the commissioner or a 216.18 Minnesota-licensed child-placing agency. 216.19 (b) For purposes of this subdivision, the characteristics 216.20 or circumstances that may be considered in determining whether a 216.21 child is a child with special needs under United States Code, 216.22 title 42, chapter 7, subchapter IV, part E, or meets the 216.23 requirements of paragraph (a), clause (1), are the following: 216.24 (1) The child is a member of a sibling group to be placed 216.25 as one unit in which at least one sibling is older than 15 216.26 months of age or is described in clause (2) or (3). 216.27 (2) The child has documented physical, mental, emotional, 216.28 or behavioral disabilities. 216.29 (3) The child has a high risk of developing physical, 216.30 mental, emotional, or behavioral disabilities. 216.31 (c) When a child's eligibility for adoption assistance is 216.32 based upon the high risk of developing physical, mental, 216.33 emotional, or behavioral disabilities, payments shall not be 216.34 made under the adoption assistance agreement unless and until 216.35 the potential disability manifests itself as documented by an 216.36 appropriate health care professional. 217.1 Sec. 53. Minnesota Statutes 1996, section 261.063, is 217.2 amended to read: 217.3 261.063 [TAX LEVY FOR SOCIAL SECURITY MEASURES; DUTIES OF217.4COUNTY BOARD.] 217.5 The board of county commissioners of each countyshallmay 217.6 annually levy taxes and fix a rate sufficient to producethe217.7fullan amountrequiredfor poor relief, general assistance, aid 217.8 to dependent children, county share of county and state 217.9 supplemental aid to supplemental security income applicants or 217.10 recipients, and any other social security measures wherein there 217.11 is now or may hereafter be county participation,sufficient to217.12produce the full amount necessary for each such item,including 217.13 administrative expenses, for the ensuing year, within the time 217.14 fixed by law in addition to all other tax levies and tax rates, 217.15 however fixed or determined, and any commissioner who shall fail217.16to comply herewith shall be guilty of a gross misdemeanor and217.17shall be immediately removed from office by the governor. 217.18 Sec. 54. [REPAYMENT OF PUBLIC ASSISTANCE.] 217.19 (a) A participant who has received state-funded public 217.20 assistance must pay back the amount of public assistance 217.21 received if the participant: 217.22 (1) achieves self-sufficiency by accepting a job offer 217.23 which provides net income in excess of 500 percent of the 217.24 poverty level, as defined by federal law; or 217.25 (2) receives net income in excess of 500 percent of the 217.26 poverty level, as defined under federal law. 217.27 (b) If a participant is required to repay public assistance 217.28 under paragraph (a), the participant must pay back the state 217.29 portion of the public assistance received at a rate of 25 217.30 percent of the net income in excess of 500 percent of the 217.31 poverty level until the full amount received has been repaid. 217.32 Sec. 55. [TRANSFER OF RESPONSIBILITIES FOR PROVIDING 217.33 SECURE CRISIS SHELTER.] 217.34 All of the powers, duties, and functions of the 217.35 commissioner of human services relating to the operation and 217.36 funding of shelters for battered women are transferred to the 218.1 commissioner of corrections in accordance with Minnesota 218.2 Statutes, section 15.039, except for personnel transfers under 218.3 section 15.039, subdivision 7. 218.4 Sec. 56. [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 218.5 The legislature makes the following findings: 218.6 (a) The legislature is statutorily required to balance the 218.7 state budget. 218.8 (b) The task of balancing the state budget is made 218.9 difficult in the area of the new federal welfare reform program 218.10 for the needy due to the dramatic change in program design that 218.11 this state and all other states must experience, rendering 218.12 historical data on client behavior, interstate migration, and 218.13 welfare spending patterns of dubious value. 218.14 (c) Many states have more restrictive or nonexistent state 218.15 welfare programs to aid needy individuals without children. 218.16 (d) Within the state's limited resources, the legislature 218.17 wishes to manage funds appropriated under this part to best 218.18 provide for needy Minnesotans. 218.19 (e) To that end, the legislature has adopted a policy in 218.20 Minnesota Statutes, section 256D.066, of providing households of 218.21 needy individuals or couples without children in which no 218.22 mandatory member has resided in Minnesota for the previous 12 218.23 months a benefit based on the grant the household would have 218.24 received had it applied for benefits in its previous state of 218.25 residence. 218.26 (f) Therefore, if the policy designed to make welfare 218.27 benefits a neutral factor in the decision to move to Minnesota 218.28 and to best manage the benefit appropriation for needy 218.29 Minnesotans, while providing a safety net for recent interstate 218.30 migrants, is enjoined or otherwise prevented from being 218.31 implemented, the commissioner shall continue to require that 218.32 applicants meet the simple residency requirement of presence in 218.33 the state with the intent to make a permanent home here, and 218.34 shall ratably reduce the benefit standards for all assistance 218.35 units, from the standards in Minnesota Statutes, section 218.36 256D.01, but only in an amount sufficient to remain within the 219.1 forecasted budgets for those programs. In the event the 219.2 commissioner is required to ratably reduce benefits under this 219.3 section, the commissioner shall notify the fiscal and policy 219.4 chairs of the house and senate human services committees that 219.5 the reductions have taken place and shall formulate a plan to be 219.6 presented to the next legislative session. 219.7 At county option, these benefits shall be paid in vendor 219.8 form for rent and utilities, up to the limit of the grant 219.9 amount. The residual amount, if any, shall be paid directly to 219.10 the assistance unit. 219.11 Sec. 57. [TOTAL HOUSEHOLD INCOME COUNTED.] 219.12 Notwithstanding any provision of law to the contrary, 219.13 eligibility for public assistance, including, but not limited 219.14 to, AFDC, family general assistance, MFIP and MFIP-S, and 219.15 general assistance must count income from all unrelated 219.16 individuals living in the household in order to qualify for any 219.17 of these public assistance programs. 219.18 Sec. 58. [REPEALER.] 219.19 Minnesota Statutes 1996, sections 256.8711; 256D.02, 219.20 subdivision 5; 256D.0511; 256D.065; and 261.062 are repealed. 219.21 Sec. 59. [EFFECTIVE DATES.] 219.22 Sections 23 and 24 are effective January 1, 1998. 219.23 ARTICLE 4 219.24 TECHNICAL CHANGES; CROSS REFERENCES 219.25 Section 1. Minnesota Statutes 1996, section 13.46, 219.26 subdivision 1, is amended to read: 219.27 Subdivision 1. [DEFINITIONS.] As used in this section: 219.28 (a) "Individual" means an individualpursuantaccording to 219.29 section 13.02, subdivision 8, but does not include a vendor of 219.30 services. 219.31 (b) "Program" includes all programs for which authority is 219.32 vested in a component of the welfare systempursuantaccording 219.33 to statute or federal law, including, but not limited to, aid to 219.34 families with dependent children, Minnesota family investment 219.35 program-statewide, medical assistance, general assistance,work219.36readiness,general assistance medical care, and child support 220.1 collections. 220.2 (c) "Welfare system" includes the department of human 220.3 services, local social services agencies, county welfare 220.4 agencies, the public authority responsible for child support 220.5 enforcement, human services boards, community mental health 220.6 center boards, state hospitals, state nursing homes, the 220.7 ombudsman for mental health and mental retardation, and persons, 220.8 agencies, institutions, organizations, and other entities under 220.9 contract to any of the above agencies to the extent specified in 220.10 the contract. 220.11 (d) "Mental health data" means data on individual clients 220.12 and patients of community mental health centers, established 220.13 under section 245.62, mental health divisions of counties and 220.14 other providers under contract to deliver mental health 220.15 services, or the ombudsman for mental health and mental 220.16 retardation. 220.17 (e) "Fugitive felon" means a person who has been convicted 220.18 of a felony and who has escaped from confinement or violated the 220.19 terms of probation or parole for that offense. 220.20 Sec. 2. Minnesota Statutes 1996, section 13.46, 220.21 subdivision 2, is amended to read: 220.22 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 220.23 a statute specifically provides a different classification, data 220.24 on individuals collected, maintained, used, or disseminated by 220.25 the welfare system is private data on individuals, and shall not 220.26 be disclosed except: 220.27 (1)pursuantaccording to section 13.05; 220.28 (2)pursuantaccording to court order; 220.29 (3)pursuantaccording to a statute specifically 220.30 authorizing access to the private data; 220.31 (4) to an agent of the welfare system, including a law 220.32 enforcement person, attorney, or investigator acting for it in 220.33 the investigation or prosecution of a criminal or civil 220.34 proceeding relating to the administration of a program; 220.35 (5) to personnel of the welfare system who require the data 220.36 to determine eligibility, amount of assistance, and the need to 221.1 provide services of additional programs to the individual; 221.2 (6) to administer federal funds or programs; 221.3 (7) between personnel of the welfare system working in the 221.4 same program; 221.5 (8) the amounts of cash public assistance and relief paid 221.6 to welfare recipients in this state, including their names, 221.7 social security numbers, income, addresses, and other data as 221.8 required, upon request by the department of revenue to 221.9 administer the property tax refund law, supplemental housing 221.10 allowance, early refund of refundable tax credits, and the 221.11 income tax. "Refundable tax credits" means the dependent care 221.12 credit under section 290.067, the Minnesota working family 221.13 credit under section 290.0671, the property tax refund under 221.14 section 290A.04, and, if the required federal waiver or waivers 221.15 are granted, the federal earned income tax credit under section 221.16 32 of the Internal Revenue Code; 221.17 (9) to the Minnesota department of economic security for 221.18 the purpose of monitoring the eligibility of the data subject 221.19 for reemployment insurance, for any employment or training 221.20 program administered, supervised, or certified by that agency, 221.21 or for the purpose of administering any rehabilitation program, 221.22 whether alone or in conjunction with the welfare system, and to 221.23 verify receipt of energy assistance for the telephone assistance 221.24 plan; 221.25 (10) to appropriate parties in connection with an emergency 221.26 if knowledge of the information is necessary to protect the 221.27 health or safety of the individual or other individuals or 221.28 persons; 221.29 (11) data maintained by residential programs as defined in 221.30 section 245A.02 may be disclosed to the protection and advocacy 221.31 system established in this statepursuantaccording to Part C of 221.32 Public Law Number 98-527 to protect the legal and human rights 221.33 of persons with mental retardation or other related conditions 221.34 who live in residential facilities for these persons if the 221.35 protection and advocacy system receives a complaint by or on 221.36 behalf of that person and the person does not have a legal 222.1 guardian or the state or a designee of the state is the legal 222.2 guardian of the person; 222.3 (12) to the county medical examiner or the county coroner 222.4 for identifying or locating relatives or friends of a deceased 222.5 person; 222.6 (13) data on a child support obligor who makes payments to 222.7 the public agency may be disclosed to the higher education 222.8 services office to the extent necessary to determine eligibility 222.9 under section 136A.121, subdivision 2, clause (5); 222.10 (14) participant social security numbers and names 222.11 collected by the telephone assistance program may be disclosed 222.12 to the department of revenue to conduct an electronic data match 222.13 with the property tax refund database to determine eligibility 222.14 under section 237.70, subdivision 4a; 222.15 (15) the current address of a recipient of aid to families 222.16 with dependent children or Minnesota family investment 222.17 program-statewide may be disclosed to law enforcement officers 222.18 who provide the name and social security number of the recipient 222.19 and satisfactorily demonstrate that: (i) the recipient is a 222.20 fugitive felon, including the grounds for this determination; 222.21 (ii) the location or apprehension of the felon is within the law 222.22 enforcement officer's official duties; and (iii) the request is 222.23 made in writing and in the proper exercise of those duties; 222.24 (16) the current address of a recipient of general 222.25 assistance, work readiness,or general assistance medical care 222.26 may be disclosed to probation officers and corrections agents 222.27 who are supervising the recipient, and to law enforcement 222.28 officers who are investigating the recipient in connection with 222.29 a felony level offense; 222.30 (17) information obtained from food stamp applicant or 222.31 recipient households may be disclosed to local, state, or 222.32 federal law enforcement officials, upon their written request, 222.33 for the purpose of investigating an alleged violation of the 222.34 food stamp act,in accordance withaccording to Code of Federal 222.35 Regulations, title 7, section 272.1(c); 222.36 (18) data on a child support obligor who is in arrears may 223.1 be disclosed for purposes of publishing the datapursuant223.2 according to section 518.575; 223.3 (19) data on child support payments made by a child support 223.4 obligor may be disclosed to the obligee; 223.5 (20) data in the work reporting system may be disclosed 223.6 under section 256.998, subdivision 7; 223.7 (21) to the department of children, families, and learning 223.8 for the purpose of matching department of children, families, 223.9 and learning student data with public assistance data to 223.10 determine students eligible for free and reduced price meals, 223.11 meal supplements, and free milkpursuantaccording to United 223.12 States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 223.13 and 1773; to produce accurate numbers of students receiving aid 223.14 to families with dependent children or Minnesota family 223.15 investment program-statewide as required by section 124.175; and 223.16 to allocate federal and state funds that are distributed based 223.17 on income of the student's family; or 223.18 (22) the current address and telephone number of program 223.19 recipients and emergency contacts may be released to the 223.20 commissioner of health or a local board of health as defined in 223.21 section 145A.02, subdivision 2, when the commissioner or local 223.22 board of health has reason to believe that a program recipient 223.23 is a disease case, carrier, suspect case, or at risk of illness, 223.24 and the data are necessary to locate the person. 223.25 (b) Information on persons who have been treated for drug 223.26 or alcohol abuse may only be disclosedin accordance with223.27 according to the requirements of Code of Federal Regulations, 223.28 title 42, sections 2.1 to 2.67. 223.29 (c) Data provided to law enforcement agencies under 223.30 paragraph (a), clause (15), (16), or (17), or paragraph (b), are 223.31 investigative data and are confidential or protected nonpublic 223.32 while the investigation is active. The data are private after 223.33 the investigation becomes inactive under section 13.82, 223.34 subdivision 5, paragraph (a) or (b). 223.35 (d) Mental health data shall be treated as provided in 223.36 subdivisions 7, 8, and 9, but is not subject to the access 224.1 provisions of subdivision 10, paragraph (b). 224.2 Sec. 3. Minnesota Statutes 1996, section 84.98, 224.3 subdivision 3, is amended to read: 224.4 Subd. 3. [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 224.5 PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 224.6 determining economic, social, physical, or educational 224.7 disadvantage shall be determined as provided in this subdivision. 224.8 (b) Economically disadvantaged are persons who meet the 224.9 criteria for disadvantaged established by the department of 224.10 economic security or persons receiving services provided by the 224.11 department of human services such as welfare payments, food 224.12 stamps,andaid to families with dependent children or Minnesota 224.13 family investment program-statewide. 224.14 (c) Socially disadvantaged are persons who have been 224.15 classified as persons in need of supervision by the court system. 224.16 (d) Physically disadvantaged are persons who have been 224.17 identified as having special needs by public agencies that deal 224.18 with employment for the disabled. 224.19 (e) Educationally disadvantaged are persons who have 224.20 dropped out of school or are at risk of dropping out of school 224.21 and persons with learning disabilities or in need of special 224.22 education classes. 224.23 Sec. 4. Minnesota Statutes 1996, section 136A.125, 224.24 subdivision 2, is amended to read: 224.25 Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for 224.26 a child care grant if the applicant: 224.27 (1) is a resident of the state of Minnesota; 224.28 (2) has a child 12 years of age or younger, or 14 years of 224.29 age or younger who is handicapped as defined in section 120.03, 224.30 and who is receiving or will receive care on a regular basis 224.31 from a licensed or legal, nonlicensed caregiver; 224.32 (3) is income eligible as determined by the office's 224.33 policies and rules, but is not a recipient of assistance from 224.34 either aid to families with dependent children or Minnesota 224.35 family investment program-statewide; 224.36 (4) has not earned a baccalaureate degree and has been 225.1 enrolled full time less than eight semesters, 12 quarters, or 225.2 the equivalent; 225.3 (5) is pursuing a nonsectarian program or course of study 225.4 that applies to an undergraduate degree, diploma, or 225.5 certificate; 225.6 (6) is enrolled at least half time in an eligible 225.7 institution; and 225.8 (7) is in good academic standing and making satisfactory 225.9 academic progress. 225.10 Sec. 5. Minnesota Statutes 1996, section 196.27, is 225.11 amended to read: 225.12 196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 225.13 (a) Payments received by veterans or their dependents 225.14 because of settlements between them and the manufacturers of 225.15 Agent Orange or other chemical agents, as defined in section 225.16 196.21, must not be treated as income (or an available resource) 225.17 of the veterans or their dependents for the purposes of any 225.18 program of public assistance or benefit program administered by 225.19 the department of veterans affairs, the department of human 225.20 services, or other agencies of the state or political 225.21 subdivisions of the state, except as provided in paragraph (b). 225.22 (b) The income and resource exclusion in paragraph (a) does 225.23 not apply to the medical assistance, food stamps,oraid to 225.24 families with dependent children or Minnesota family investment 225.25 program-statewide programs until the commissioner of human 225.26 services receives formal approval from the United States 225.27 Department of Health and Human Services, for the medical 225.28 assistanceand, aid to families with dependent children or 225.29 Minnesota family investment program-statewide programs, and from 225.30 the United States Department of Agriculture, for the food stamps 225.31 program. The income exclusion does not apply to the Minnesota 225.32 supplemental aid program until the commissioner receives formal 225.33 federal approval of the exclusion for the medical assistance 225.34 program. 225.35 Sec. 6. Minnesota Statutes 1996, section 237.70, 225.36 subdivision 4a, is amended to read: 226.1 Subd. 4a. [HOUSEHOLDS ELIGIBLE FOR CREDITS.] The telephone 226.2 assistance plan must provide telephone assistance credit for a 226.3 residential household in Minnesota that meets each of the 226.4 following criteria: 226.5 (1) has a household member who: 226.6 (i) subscribes to local exchange service; and 226.7 (ii) is either disabled or 65 years of age or older; 226.8 (2) whose household income is 150 percent or less of 226.9 federal poverty guidelines or is currently eligible for: 226.10 (i) aid to families with dependent children or Minnesota 226.11 family investment program-statewide; 226.12 (ii) medical assistance; 226.13 (iii) general assistance; 226.14 (iv) Minnesota supplemental aid; 226.15 (v) food stamps; 226.16 (vi) refugee cash assistance or refugee medical assistance; 226.17 (vii) energy assistance; or 226.18 (viii) supplemental security income; and 226.19 (3) who has been certified as eligible for telephone 226.20 assistance plan credits. 226.21 Sec. 7. Minnesota Statutes 1996, section 254B.02, 226.22 subdivision 1, is amended to read: 226.23 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 226.24 The chemical dependency funds appropriated for allocation shall 226.25 be placed in a special revenue account. For the fiscal year 226.26 beginning July 1, 1987, funds shall be transferred to operate 226.27 the vendor payment, invoice processing, and collections system 226.28 for one year. The commissioner shall annually transfer funds 226.29 from the chemical dependency fund to pay for operation of the 226.30 drug and alcohol abuse normative evaluation system and to pay 226.31 for all costs incurred by adding two positions for licensing of 226.32 chemical dependency treatment and rehabilitation programs 226.33 located in hospitals for which funds are not otherwise 226.34 appropriated. The commissioner shall annually divide the money 226.35 available in the chemical dependency fund that is not held in 226.36 reserve by counties from a previous allocation. Twelve percent 227.1 of the remaining money must be reserved for treatment of 227.2 American Indians by eligible vendors under section 254B.05. The 227.3 remainder of the money must be allocated among the counties 227.4 according to the following formula, using state demographer data 227.5 and other data sources determined by the commissioner: 227.6 (a) For purposes of this formula, American Indians and 227.7 children under age 14 are subtracted from the population of each 227.8 county to determine the restricted population. 227.9 (b) The amount of chemical dependency fund expenditures for 227.10 entitled persons for services not covered by prepaid plans 227.11 governed by section 256B.69 in the previous year is divided by 227.12 the amount of chemical dependency fund expenditures for entitled 227.13 persons for all services to determine the proportion of exempt 227.14 service expenditures for each county. 227.15 (c) The prepaid plan months of eligibility is multiplied by 227.16 the proportion of exempt service expenditures to determine the 227.17 adjusted prepaid plan months of eligibility for each county. 227.18 (d) The adjusted prepaid plan months of eligibility is 227.19 added to the number of restricted population fee for service 227.20 months of eligibility for aid to families with dependent 227.21 children, Minnesota family investment program-statewide, general 227.22 assistance, and medical assistance and divided by the county 227.23 restricted population to determine county per capita months of 227.24 covered service eligibility. 227.25 (e) The number of adjusted prepaid plan months of 227.26 eligibility for the state is added to the number of fee for 227.27 service months of eligibility for aid to families with dependent 227.28 children, Minnesota family investment program-statewide, general 227.29 assistance, and medical assistance for the state restricted 227.30 population and divided by the state restricted population to 227.31 determine state per capita months of covered service eligibility. 227.32 (f) The county per capita months of covered service 227.33 eligibility is divided by the state per capita months of covered 227.34 service eligibility to determine the county welfare caseload 227.35 factor. 227.36 (g) The median married couple income for the most recent 228.1 three-year period available for the state is divided by the 228.2 median married couple income for the same period for each county 228.3 to determine the income factor for each county. 228.4 (h) The county restricted population is multiplied by the 228.5 sum of the county welfare caseload factor and the county income 228.6 factor to determine the adjusted population. 228.7 (i) $15,000 shall be allocated to each county. 228.8 (j) The remaining funds shall be allocated proportional to 228.9 the county adjusted population. 228.10 Sec. 8. Minnesota Statutes 1996, section 256.01, 228.11 subdivision 4a, is amended to read: 228.12 Subd. 4a. [TECHNICAL ASSISTANCE FOR IMMUNIZATION 228.13 REMINDERS.] The state agency shall provide appropriate technical 228.14 assistance to county agencies to develop methods to have county 228.15 financial workers remind and encourage recipients of aid to 228.16 families with dependent children, Minnesota family investment 228.17 program-statewide, the Minnesota family investment plan, medical 228.18 assistance, family general assistance, or food stamps whose 228.19 assistance unit includes at least one child under the age of 228.20 five to have each young child immunized against childhood 228.21 diseases. The state agency must examine the feasibility of 228.22 utilizing the capacity of a statewide computer system to assist 228.23 county agency financial workers in performing this function at 228.24 appropriate intervals. 228.25 Sec. 9. Minnesota Statutes 1996, section 256.017, 228.26 subdivision 1, is amended to read: 228.27 Subdivision 1. [AUTHORITY AND PURPOSE.] The commissioner 228.28 shall administer a compliance system for aid to families with 228.29 dependent children, Minnesota family investment 228.30 program-statewide, the food stamp program, emergency assistance, 228.31 general assistance,work readiness,medical assistance, general 228.32 assistance medical care, emergency general assistance, Minnesota 228.33 supplemental assistance, preadmission screening, and alternative 228.34 care grants under the powers and authorities named in section 228.35 256.01, subdivision 2. The purpose of the compliance system is 228.36 to permit the commissioner to supervise the administration of 229.1 public assistance programs and to enforce timely and accurate 229.2 distribution of benefits, completeness of service and efficient 229.3 and effective program management and operations, to increase 229.4 uniformity and consistency in the administration and delivery of 229.5 public assistance programs throughout the state, and to reduce 229.6 the possibility of sanctions and fiscal disallowances for 229.7 noncompliance with federal regulations and state statutes. 229.8 The commissioner shall utilize training, technical 229.9 assistance, and monitoring activities, as specified in section 229.10 256.01, subdivision 2, to encourage county agency compliance 229.11 with written policies and procedures. 229.12 Sec. 10. Minnesota Statutes 1996, section 256.017, 229.13 subdivision 4, is amended to read: 229.14 Subd. 4. [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 229.15 CASE PENALTY.] (a) The amount of the quality control case 229.16 penalty is limited to the amount of the dollar error for the 229.17 quality control sample month in a reviewed case as determined by 229.18 the state quality control review procedures for the aid to 229.19 families with dependent children, Minnesota family investment 229.20 program-statewide and food stamp programs or for any other 229.21 income transfer program for which the commissioner develops a 229.22 quality control program. 229.23 (b) Payment errors in medical assistance or any other 229.24 medical services program for which the department develops a 229.25 quality control program are subject to set rate penalties based 229.26 on the average cost of the specific quality control error 229.27 element for a sample review month for that household size and 229.28 status of institutionalization and as determined from state 229.29 quality control data in the preceding fiscal year for the 229.30 corresponding program. 229.31 (c) Errors identified in negative action cases, such as 229.32 incorrect terminations or denials of assistance are subject to 229.33 set rate penalties based on the average benefit cost of that 229.34 household size as determined from state quality control data in 229.35 the preceding fiscal year for the corresponding program. 229.36 Sec. 11. Minnesota Statutes 1996, section 256.031, 230.1 subdivision 5, is amended to read: 230.2 Subd. 5. [FEDERAL WAIVERS.]In accordance withAccording 230.3 to sections 256.031 to 256.0361 and federal laws authorizing the 230.4 program, the commissioner shall seek waivers of federal 230.5 requirements of: United States Code, title 42, section 601 et 230.6 seq., and United States Code, title 7, section 2011 et seq., 230.7 needed to implement the Minnesota family investment plan in a 230.8 manner consistent with the goals and objectives of the program. 230.9 The commissioner shall seek terms from the federal government 230.10 that are consistent with the goals of the Minnesota family 230.11 investment plan. The commissioner shall also seek terms from 230.12 the federal government that will maximize federal financial 230.13 participation so that the extra costs to the state of 230.14 implementing the program are minimized, to the extent that those 230.15 terms are consistent with the goals of the Minnesota family 230.16 investment plan. An agreement with the federal government under 230.17 this section shall provide that the agreements may be canceled 230.18 by the state or federal government upon 180 days' notice or 230.19 immediately upon mutual agreement. If the agreement is 230.20 canceled, families which cease receiving assistance under the 230.21 Minnesota family investment plan who are eligible for the aid to 230.22 families with dependent children, Minnesota family investment 230.23 program-statewide, general assistance, medical assistance, 230.24 general assistance medical care, or the food stamp program must 230.25 be placed with their consent on the programs for which they are 230.26 eligible. 230.27 Sec. 12. Minnesota Statutes 1996, section 256.046, 230.28 subdivision 1, is amended to read: 230.29 Subdivision 1. [HEARING AUTHORITY.] A local agency may 230.30 initiate an administrative fraud disqualification hearing for 230.31 individuals accused of wrongfully obtaining assistance or 230.32 intentional program violations in the aid to families with 230.33 dependent children, Minnesota family investment 230.34 program-statewide or food stamp programs. The hearing is 230.35 subject to the requirements of section 256.045 and the 230.36 requirements in Code of Federal Regulations, title 7, section 231.1 273.16, for the food stamp program and title 45, section 231.2 235.112, for the aid to families with dependent children program. 231.3 Sec. 13. Minnesota Statutes 1996, section 256.935, 231.4 subdivision 1, is amended to read: 231.5 Subdivision 1. On the death of any person receiving public 231.6 assistance through aid to dependent children or MFIP-S, the 231.7 county agency shall pay an amount for funeral expenses not 231.8 exceeding the amount paid for comparable services under section 231.9 261.035 plus actual cemetery charges. No funeral expenses shall 231.10 be paid if the estate of the deceased is sufficient to pay such 231.11 expenses or if the spouse, who was legally responsible for the 231.12 support of the deceased while living, is able to pay such 231.13 expenses; provided, that the additional payment or donation of 231.14 the cost of cemetery lot, interment, religious service, or for 231.15 the transportation of the body into or out of the community in 231.16 which the deceased resided, shall not limit payment by the 231.17 county agency as herein authorized. Freedom of choice in the 231.18 selection of a funeral director shall be granted to persons 231.19 lawfully authorized to make arrangements for the burial of any 231.20 such deceased recipient. In determining the sufficiency of such 231.21 estate, due regard shall be had for the nature and marketability 231.22 of the assets of the estate. The county agency may grant 231.23 funeral expenses where the sale would cause undue loss to the 231.24 estate. Any amount paid for funeral expenses shall be a prior 231.25 claim against the estate, as provided in section 524.3-805, and 231.26 any amount recovered shall be reimbursed to the agency which 231.27 paid the expenses. The commissioner shall specify requirements 231.28 for reports, including fiscal reports, according to section 231.29 256.01, subdivision 2, paragraph (17). The state share of 231.30 county agency expenditures shall be 50 percent and the county 231.31 share shall be 50 percent. Benefits shall be issued to 231.32 recipients by the state or county and funded according to 231.33 section 256.025, subdivision 3, subject to provisions of section 231.34 256.017. 231.35 Beginning July 1, 1991, the state will reimburse counties 231.36 according to the payment schedule set forth in section 256.025 232.1 for the county share of county agency expenditures made under 232.2 this subdivision from January 1, 1991, on. Payment under this 232.3 subdivision is subject to the provisions of section 256.017. 232.4 Sec. 14. Minnesota Statutes 1996, section 256.981, is 232.5 amended to read: 232.6 256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 232.7 The commissioner of human services shall, to the extent an 232.8 appropriation is provided for this purpose, contract with the 232.9 county attorney's council or other public or private entity 232.10 experienced in providing training for prosecutors to conduct 232.11 quarterly workshops and seminars focusing on current aid to 232.12 families with dependent children and Minnesota family investment 232.13 program-statewide program issues, other income maintenance 232.14 program changes, recovery issues, alternative sentencing 232.15 methods, use of technical aids for interviews and 232.16 interrogations, and other matters affecting prosecution of 232.17 welfare fraud cases. 232.18 Sec. 15. Minnesota Statutes 1996, section 256.9850, is 232.19 amended to read: 232.20 256.9850 [IDENTITY VERIFICATION.] 232.21 The commissioner of human services shall seek from the 232.22 Secretary of Health and Human Services all necessary waivers of 232.23 the requirements of the program of AFDC or Minnesota family 232.24 investment program-statewide, to enable the commissioner to 232.25 establish a statewide program to test the effectiveness of 232.26 identity verification systems in the electronic benefit transfer 232.27 systems in the state AFDC program or Minnesota family investment 232.28 program-statewide. Identity verification provisions shall be 232.29 added to the statewide requests for proposal on the expansion of 232.30 electronic benefit transfer systems in the AFDC program or 232.31 Minnesota family investment program-statewide. 232.32 Sec. 16. Minnesota Statutes 1996, section 256E.03, 232.33 subdivision 2, is amended to read: 232.34 Subd. 2. (a) "Community social services" means services 232.35 provided or arranged for by county boards to fulfill the 232.36 responsibilities prescribed in section 256E.08, subdivision 1, 233.1 to the following groups of persons: 233.2 (1) families with children under age 18, who are 233.3 experiencing child dependency, neglect or abuse, and also 233.4 pregnant adolescents, adolescent parents under the age of 18, 233.5 and their children; 233.6 (2) persons who are under the guardianship of the 233.7 commissioner of human services as dependent and neglected wards; 233.8 (3) adults who are in need of protection and vulnerable as 233.9 defined in section 626.5572; 233.10 (4) persons age 60 and over who are experiencing difficulty 233.11 living independently and are unable to provide for their own 233.12 needs; 233.13 (5) emotionally disturbed children and adolescents, 233.14 chronically and acutely mentally ill persons who are unable to 233.15 provide for their own needs or to independently engage in 233.16 ordinary community activities; 233.17 (6) persons with mental retardation as defined in section 233.18 252A.02, subdivision 2, or with related conditions as defined in 233.19 section 252.27, subdivision 1a, who are unable to provide for 233.20 their own needs or to independently engage in ordinary community 233.21 activities; 233.22 (7) drug dependent and intoxicated persons as defined in 233.23 section 254A.02, subdivisions 5 and 7, and persons at risk of 233.24 harm to self or others due to the ingestion of alcohol or other 233.25 drugs; 233.26 (8) parents whose income is at or below 70 percent of the 233.27 state median income and who are in need of child care services 233.28 in order to secure or retain employment or to obtain the 233.29 training or education necessary to secure employment; and 233.30 (9) other groups of persons who, in the judgment of the 233.31 county board, are in need of social services. 233.32 (b) Except as provided in section 256E.08, subdivision 5, 233.33 community social services do not include public assistance 233.34 programs known as aid to families with dependent children, 233.35 Minnesota family investment program-statewide, Minnesota 233.36 supplemental aid, medical assistance, general assistance, 234.1 general assistance medical care, or community health services 234.2 authorized by sections 145A.09 to 145A.13. 234.3 Sec. 17. Minnesota Statutes 1996, section 256E.06, 234.4 subdivision 1, is amended to read: 234.5 Subdivision 1. [FORMULA.] The commissioner of human 234.6 services shall distribute community social service aids to each 234.7 county board in an amount determined according to the following 234.8 formula: 234.9 In calendar year 1982 and thereafter: 234.10 (a) One-third shall be distributed on the basis of the 234.11 average unduplicated number of persons who receive AFDC, 234.12 Minnesota family investment program-statewide, general 234.13 assistance, and medical assistance per month in the calendar 234.14 year two years prior to the year for which funds are being 234.15 distributed as reported in the average monthly caseload reports 234.16 required under sections 256.01, 256B.04 and 256D.04, and 234.17 certified by the commissioner of human services; and 234.18 (b) One-third shall be distributed on the basis of the 234.19 number of persons residing in the county as determined by the 234.20 most recent data of the state demographer; 234.21 (c) One-third shall be distributed on the basis of the 234.22 number of persons residing in the county who are 65 years old or 234.23 older as determined by the most recent data of the state 234.24 demographer. 234.25 Sec. 18. Minnesota Statutes 1996, section 256E.06, 234.26 subdivision 3, is amended to read: 234.27 Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human 234.28 services shall make payments for community social services to 234.29 each county in four installments per year. The commissioner of 234.30 human services may certify the payments for the first three 234.31 months of a calendar year based on estimates of the unduplicated 234.32 number of persons receiving AFDC, Minnesota family investment 234.33 program-statewide, general assistance and medical assistance for 234.34 the prior year. The following three payments shall be adjusted 234.35 to reflect the actual unduplicated number of persons who 234.36 received AFDC, Minnesota family investment program-statewide, 235.1 general assistance and medical assistance as required by 235.2 subdivision 1. The commissioner shall ensure that the pertinent 235.3 payment of the allotment for that quarter is made to each county 235.4 on the first working day after the end of each quarter of the 235.5 calendar year, except for the last quarter of the calendar 235.6 year. The commissioner shall ensure that each county receives 235.7 its payment of the allotment for that quarter no later than the 235.8 last working day of that quarter. This scheduling of payments 235.9 does not require compliance with subdivision 10. 235.10 Sec. 19. Minnesota Statutes 1996, section 256E.07, 235.11 subdivision 1, is amended to read: 235.12 Subdivision 1. [FORMULA.] In federal fiscal year 1985 and 235.13 subsequent years, money for social services that is received 235.14 from the federal government to reimburse counties for social 235.15 service expenditurespursuantaccording to title XX of the 235.16 Social Security Act shall be allocated to each county according 235.17 to the following formula: 235.18 (a) Two-thirds shall be allocated on the basis of the 235.19 annual average number of unduplicated active monthly caseloads 235.20 in each county in the following programs: aid to families with 235.21 dependent children, Minnesota family investment 235.22 program-statewide, medical assistance, general assistance, 235.23 supplementary security income, and Minnesota supplemental aid. 235.24 (b) One-third shall be allocated on the basis of the number 235.25 of persons residing in the county as determined by the most 235.26 recent estimate of the state demographer. 235.27 (c) The commissioner shall allocate to the counties 235.28pursuantaccording to this section the total money received from 235.29 the federal government for social servicespursuantaccording to 235.30 title XX of the Social Security Act, except that portion of the 235.31 state's allocation which the legislature authorizes for 235.32 administrative purposes and for migrant day care. 235.33 Sec. 20. Minnesota Statutes 1996, section 256E.08, 235.34 subdivision 3, is amended to read: 235.35 Subd. 3. [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 235.36 The county board may designate itself, a human services board, 236.1 or a local social services agency to perform the functions of 236.2 local social services agencies as prescribed in chapter 393 and 236.3 assigned to county agencies in other law which pertains to the 236.4 administration of income maintenance programs known as aid to 236.5 families with dependent children, Minnesota family investment 236.6 program-statewide, general assistance, Minnesota supplemental 236.7 aid, medical assistance, general assistance medical care, and 236.8 emergency assistance. 236.9 Sec. 21. Minnesota Statutes 1996, section 256F.05, 236.10 subdivision 5, is amended to read: 236.11 Subd. 5. [INAPPROPRIATE EXPENDITURES.] Family preservation 236.12 fund basic, placement earnings, and development grant money must 236.13 not be used for: 236.14 (1) child day care necessary solely because of the 236.15 employment or training to prepare for employment, of a parent or 236.16 other relative with whom the child is living; 236.17 (2) residential facility payments; 236.18 (3) adoption assistance payments; 236.19 (4) public assistance payments for aid to families with 236.20 dependent children, Minnesota family investment 236.21 program-statewide, supplemental aid, medical assistance, general 236.22 assistance, general assistance medical care, or community health 236.23 services authorized by sections 145A.09 to 145A.13; or 236.24 (5) administrative costs for local social services agency 236.25 public assistance staff. 236.26 Sec. 22. Minnesota Statutes 1996, section 256G.01, 236.27 subdivision 4, is amended to read: 236.28 Subd. 4. [ADDITIONAL COVERAGE.] The provisions in sections 236.29 256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 236.30 subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 236.31 subdivisions 1 to 3, apply to the following programs: aid to 236.32 families with dependent children, Minnesota family investment 236.33 program-statewide; medical assistance; general assistance; 236.34 family general assistance; general assistance medical care; and 236.35 Minnesota supplemental aid. 236.36 Sec. 23. Minnesota Statutes 1996, section 257.3573, 237.1 subdivision 2, is amended to read: 237.2 Subd. 2. [INAPPROPRIATE EXPENDITURES.] Indian child 237.3 welfare grant money must not be used for: 237.4 (1) child day care necessary solely because of employment 237.5 or training for employment of a parent or other relative with 237.6 whom the child is living; 237.7 (2) foster care maintenance or difficulty of care payments; 237.8 (3) residential facility payments; 237.9 (4) adoption assistance payments; 237.10 (5) public assistance payments for aid to families with 237.11 dependent children, Minnesota family investment 237.12 program-statewide, supplemental aid, medical assistance, general 237.13 assistance, general assistance medical care, or community health 237.14 services authorized by sections 145A.01 to 145A.14; or 237.15 (6) administrative costs for income maintenance staff. 237.16 Sec. 24. Minnesota Statutes 1996, section 260.38, is 237.17 amended to read: 237.18 260.38 [COST, PAYMENT.] 237.19 In addition to the usual care and services given by public 237.20 and private agencies, the necessary cost incurred by the 237.21 commissioner of human services in providing care for such child 237.22 shall be paid by the county committing such child which, subject 237.23 to uniform rules established by the commissioner of human 237.24 services, may receive a reimbursement not exceeding one-half of 237.25 such costs from funds made available for this purpose by the 237.26 legislature during the period beginning July 1, 1985, and ending 237.27 December 31, 1985. Beginning January 1, 1986, the necessary 237.28 cost incurred by the commissioner of human services in providing 237.29 care for the child must be paid by the county committing the 237.30 child. Where such child is eligible to receive a grant of aid 237.31 to families with dependent children, Minnesota family investment 237.32 program-statewide or supplemental security income for the aged, 237.33 blind, and disabled, or a foster care maintenance payment under 237.34 Title IV-E of the Social Security Act, United States Code, title 237.35 42, sections 670 to 676, the child's needs shall be met through 237.36 these programs. 238.1 Sec. 25. Minnesota Statutes 1996, section 268.0111, 238.2 subdivision 5, is amended to read: 238.3 Subd. 5. [INCOME MAINTENANCE AND SUPPORT SERVICES.] 238.4 "Income maintenance and support services" means programs through 238.5 which the state or its subdivisions provide direct financial or 238.6 in-kind support to unemployed or underemployed persons, 238.7 including reemployment insurance, aid to families with dependent 238.8 children, Minnesota family investment program-statewide, general 238.9 assistance,work readiness assistance,food stamps, energy 238.10 assistance, disability determinations, and child care. Income 238.11 maintenance and support services do not include medical 238.12 assistance, aging services, social services, community social 238.13 services, mental health services, or services for the 238.14 emotionally disturbed, the mentally retarded, or residents of 238.15 nursing homes. 238.16 Sec. 26. Minnesota Statutes 1996, section 268.0111, 238.17 subdivision 7, is amended to read: 238.18 Subd. 7. [PUBLIC ASSISTANCE.] "Public assistance" means 238.19 aid to families with dependent children, Minnesota family 238.20 investment program-statewide and general assistance, and work238.21readiness. 238.22 Sec. 27. Minnesota Statutes 1996, section 268.0122, 238.23 subdivision 3, is amended to read: 238.24 Subd. 3. [DUTIES AS A STATE AGENCY.] The commissioner 238.25 shall: 238.26 (1) administer the unemployment insurance laws and related 238.27 programs; 238.28 (2) administer the aspects of aid to families with 238.29 dependent children, Minnesota family investment 238.30 program-statewide, general assistance,work readiness,and food 238.31 stamps that relate to employment and training services, subject 238.32 to the contract under section 268.86, subdivision 2; 238.33 (3) administer wage subsidies and the discretionary 238.34 employment and training fund; 238.35 (4) administer a national system of public employment 238.36 offices as prescribed by United States Code, title 29, chapter 239.1 4B, the Wagner-Peyser Act, and other federal employment and 239.2 training programs; 239.3 (5) cooperate with the federal government and its 239.4 employment and training agencies in any reasonable manner as 239.5 necessary to qualify for federal aid for employment and training 239.6 services and money; 239.7 (6) enter into agreements with other departments of the 239.8 state and local units of government as necessary; 239.9 (7) certify employment and training service providers and 239.10 decertify service providers that fail to comply with performance 239.11 criteria according to standards established by the commissioner; 239.12 (8) provide consistent, integrated employment and training 239.13 services across the state; 239.14 (9) establish the standards for all employment and training 239.15 services administered under this chapter; 239.16 (10) develop standards for the contents and structure of 239.17 the local service unit plans and plans for Indian tribe 239.18 employment and training services; 239.19 (11) provide current state and substate labor market 239.20 information and forecasts, in cooperation with other agencies; 239.21 (12) identify underserved populations, unmet service needs, 239.22 and funding requirements; 239.23 (13) consult with the council for the blind on matters 239.24 pertaining to programs and services for the blind and visually 239.25 impaired; and 239.26 (14) enter into agreements with Indian tribes as necessary 239.27 to provide employment and training services as funds become 239.28 available. 239.29 Sec. 28. Minnesota Statutes 1996, section 268.552, 239.30 subdivision 5, is amended to read: 239.31 Subd. 5. [ALLOCATION TO APPLICANTS.] Priority for 239.32 subsidies shall be in the following order: 239.33 (1) applicants living in households with no other income 239.34 source; 239.35 (2) applicants whose incomes and resources are less than 239.36 the standard for eligibility for general assistanceor work240.1readiness; and 240.2 (3) applicants who are eligible for aid to families with 240.3 dependent children or Minnesota family investment 240.4 program-statewide. 240.5 Sec. 29. Minnesota Statutes 1996, section 268.6751, 240.6 subdivision 1, is amended to read: 240.7 Subdivision 1. [WAGE SUBSIDIES.] Wage subsidy money must 240.8 be allocated to local service units in the following manner: 240.9 (a) The commissioner shall allocate 87.5 percent of the 240.10 funds available for allocation to local service units for wage 240.11 subsidy programs as follows: the proportion of the wage subsidy 240.12 money available to each local service unit must be based on the 240.13 number of unemployed persons in the local service unit for the 240.14 most recent six-month period and the number ofwork readiness240.15assistance cases andaid to families with dependent children and 240.16 Minnesota family investment program-statewide cases in the local 240.17 service unit for the most recent six-month period. 240.18 (b) Five percent of the money available for wage subsidy 240.19 programs must be allocated at the discretion of the commissioner. 240.20 (c) Seven and one-half percent of the money available for 240.21 wage subsidy programs must be allocated at the discretion of the 240.22 commissioner to provide jobs for residents of federally 240.23 recognized Indian reservations. 240.24 (d) By December 31 of each fiscal year, providers and local 240.25 service units receiving wage subsidy money shall report to the 240.26 commissioner on the use of allocated funds. The commissioner 240.27 shall reallocate uncommitted funds for each fiscal year 240.28 according to the formula in paragraph (a). 240.29 Sec. 30. Minnesota Statutes 1996, section 268.676, 240.30 subdivision 1, is amended to read: 240.31 Subdivision 1. [AMONG JOB APPLICANTS.] At least 80 percent 240.32 of funds allocated among eligible job applicants statewide must 240.33 be allocated to: 240.34 (1) applicants living in households with no other income 240.35 source; 240.36 (2) applicants whose incomes and resources are less than 241.1 the standards for eligibility for general assistanceor work241.2readiness; 241.3 (3) applicants who are eligible for aid to families with 241.4 dependent children or Minnesota family investment 241.5 program-statewide; and 241.6 (4) applicants who live in a farm household who demonstrate 241.7 severe household financial need. 241.8 Sec. 31. Minnesota Statutes 1996, section 268.86, 241.9 subdivision 2, is amended to read: 241.10 Subd. 2. [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 241.11 commissioner and the commissioner of human services shall enter 241.12 into a written contract for the design, delivery, and 241.13 administration of employment and training services for 241.14 applicants for or recipients of food stampsor, aid to families 241.15 with dependent childrenand work readinessor Minnesota family 241.16 investment program-statewide, including AFDC and MFIP-S 241.17 employment and training programs,and general assistanceor work241.18readiness grant diversion. The contract must address: 241.19 (1) specific roles and responsibilities of each department; 241.20 (2) assignment and supervision of staff for interagency 241.21 activities including any necessary interagency employee mobility 241.22 agreements under the administrative procedures of the department 241.23 of employee relations; 241.24 (3) mechanisms for determining the conditions under which 241.25 individuals participate in services, their rights and 241.26 responsibilities while participating, and the standards by which 241.27 the services must be administered; 241.28 (4) procedures for providing technical assistance to local 241.29 service units, Indian tribes, and employment and training 241.30 service providers; 241.31 (5) access to appropriate staff for ongoing development and 241.32 interpretation of policy, rules, and program standards; 241.33 (6) procedures for reimbursing appropriate agencies for 241.34 administrative expenses; and 241.35 (7) procedures for accessing available federal funds. 241.36 Sec. 32. Minnesota Statutes 1996, section 268.871, 242.1 subdivision 1, is amended to read: 242.2 Subdivision 1. [RESPONSIBILITY AND CERTIFICATION.] (a) 242.3 Unless prohibited by federal law or otherwise determined by 242.4 state law, a local service unit is responsible for the delivery 242.5 of employment and training services. After February 1, 1988, 242.6 employment and training services must be delivered by certified 242.7 employment and training service providers. 242.8 (b) The local service unit's employment and training 242.9 service provider must meet the certification standards in this 242.10 subdivision in order to be certified to deliver any of the 242.11 following employment and training services and programs: wage 242.12 subsidies;work readiness; work readiness andgeneral assistance 242.13 grant diversion; food stamp employment and training programs; 242.14 community work experience programs; AFDC or MFIP-S job search; 242.15 AFDC or MFIP-S grant diversion; AFDC or MFIP-S on-the-job 242.16 training; and AFDC or MFIP-S case management. 242.17 (c) The commissioner shall certify a local service unit's 242.18 service provider to provide these employment and training 242.19 services and programs if the commissioner determines that the 242.20 provider has: 242.21 (1) past experience in direct delivery of the programs 242.22 specified in paragraph (b); 242.23 (2) staff capabilities and qualifications, including 242.24 adequate staff to provide timely and effective services to 242.25 clients, and proven staff experience in providing specific 242.26 services such as assessments, career planning, job development, 242.27 job placement, support services, and knowledge of community 242.28 services and educational resources; 242.29 (3) demonstrated effectiveness in providing services to 242.30 public assistance recipients and other economically 242.31 disadvantaged clients; and 242.32 (4) demonstrated administrative capabilities, including 242.33 adequate fiscal and accounting procedures, financial management 242.34 systems, participant data systems, and record retention 242.35 procedures. 242.36 (d) When the only service provider that meets the criterion 243.1 in paragraph (c), clause (1), has been decertified,pursuant243.2 according to subdivision 1a, in that local service unit, the 243.3 following criteria shall be substituted: past experience in 243.4 direct delivery of multiple, coordinated, nonduplicative 243.5 services, including outreach, assessments, identification of 243.6 client barriers, employability development plans, and provision 243.7 or referral to support services. 243.8 (e) The commissioner shall certify providers of the 243.9 Minnesota family investment plan case management services as 243.10 defined in section 256.032, subdivision 3. Providers must meet 243.11 the standards defined in paragraph (c), except that past 243.12 experience under paragraph (c), clause (1), must be in services 243.13 and programs similar to those specified in section 256.032, 243.14 subdivision 3. 243.15 Employment and training service providers shall be 243.16 certified by the commissioner for two fiscal years beginning 243.17 July 1, 1991, and every second year thereafter. 243.18 Sec. 33. Minnesota Statutes 1996, section 268.90, 243.19 subdivision 2, is amended to read: 243.20 Subd. 2. [EMPLOYMENT CONDITIONS.] (a) An eligible 243.21 nonprofit or public employer may not terminate, lay off, or 243.22 reduce the regular working hours of an employee for the purpose 243.23 of hiring an individual with money available under this 243.24 program. An eligible employer may not hire an individual with 243.25 money available through this program if any other person is on 243.26 layoff from the same or a substantially equivalent job. 243.27 (b) Community investment program participants are employees 243.28 of the project employer within the meaning of workers' 243.29 compensation laws, personal income tax, and the federal 243.30 insurance contribution act, but not retirement or civil service 243.31 laws. 243.32 (c) Each project and job must comply with all applicable 243.33 affirmative action, fair labor, health, safety, and 243.34 environmental standards. 243.35 (d) Individuals employed under the community investment 243.36 program must be paid a wage at the same wage rates as work site 244.1 or employees doing comparable work in that locality, unless 244.2 otherwise specified in law. 244.3 (e) Recipients of aid to families with dependent 244.4 children or Minnesota family investment program-statewide who 244.5 are eligible on the basis of an unemployed parent may not have 244.6 available more than 100 hours a month. All employees are 244.7 limited to 32 hours or four days a week, so that they can 244.8 continue to seek full-time private sector employment, unless 244.9 otherwise specified in law. 244.10 (f) The commissioner shall establish, by rule, the terms 244.11 and conditions governing the participation of appropriate public 244.12 assistance recipients. The rules must, at a minimum, establish 244.13 the procedures by which the minimum and maximum number of work 244.14 hours and maximum allowable travel distances are determined, the 244.15 amounts and methods by which work expenses will be paid, and the 244.16 manner in which support services will be provided. The rules 244.17 must also provide for periodic reviews of clients continuing 244.18 employment in community investment programs. 244.19 (g) Participation in a community investment program by a 244.20 recipient of aid to families with dependent children, Minnesota 244.21 family investment program-statewide or general assistance is 244.22 voluntary; however, work readiness registrants may be required244.23to participate. 244.24 Sec. 34. Minnesota Statutes 1996, section 268.916, is 244.25 amended to read: 244.26 268.916 [REPORTS.] 244.27 Each grantee shall submit an annual report to the 244.28 commissioner on the format designated by the commissioner, 244.29 including program information report data. By January 1 of each 244.30 year, the commissioner shall prepare an annual report to the 244.31 health and human services committee of the house of 244.32 representatives and the family services committee of the senate 244.33 concerning the uses and impact of head start supplemental 244.34 funding, including a summary of innovative programs and the 244.35 results of innovative programs and an evaluation of the 244.36 coordination of head start programs with employment and training 245.1 services provided to AFDC and MFIP-S recipients. 245.2 Sec. 35. Minnesota Statutes 1996, section 268.95, 245.3 subdivision 4, is amended to read: 245.4 Subd. 4. [PILOT PROGRAM.] The commissioner shall develop a 245.5 pilot program, in cooperation with the commissioners of trade 245.6 and economic development and human services, to enable 245.7 low-income persons to start or expand self-employment 245.8 opportunities or home-based businesses that are designed to make 245.9 the individual entrepreneurs economically independent. The 245.10 commissioner of human services shall seek necessary waivers from 245.11 federal regulations to allow recipients of aid to families with 245.12 dependent children or Minnesota family investment 245.13 program-statewide to participate and retain eligibility while 245.14 establishing a business. 245.15 Sec. 36. Minnesota Statutes 1996, section 393.07, 245.16 subdivision 6, is amended to read: 245.17 Subd. 6. [PURCHASE OF EQUIPMENT TO AID WELFARE 245.18 RECIPIENTS.] Every local social services agency authorizing 245.19 braces, crutches, trusses, wheel chairs and hearing aids for use 245.20 by recipients of supplemental security income for the aged, 245.21 blind and disabled, aid to families with dependent children or 245.22 Minnesota family investment program-statewide and relief shall 245.23 secure such devices at the lowest cost obtainable conducive to 245.24 the well being of the recipient and fix the recipient's grant in 245.25 an amount to cover the cost of the device providing it will be 245.26 purchased at the lowest cost obtainable, or may make payment for 245.27 the device directly to the vendor. 245.28 Sec. 37. Minnesota Statutes 1996, section 477A.0122, 245.29 subdivision 2, is amended to read: 245.30 Subd. 2. [DEFINITIONS.] For purposes of this section, the 245.31 following definitions apply: 245.32 (a) "Children in out-of-home placement" means the total 245.33 unduplicated number of children in out-of-home care as reported 245.34pursuantaccording to section 257.0725. 245.35 (b) "Family preservation programs" means family-based 245.36 services as defined in section 256F.03, subdivision 5, families 246.1 first services, parent and child education programs, and day 246.2 treatment services provided in cooperation with a school 246.3 district or other programs as defined by the commissioner of 246.4 human services. 246.5 (c) "Income maintenance caseload" means average monthly 246.6 number of AFDC or Minnesota family investment program-statewide 246.7 cases for the calendar year. 246.8 By July 1, 1994, the commissioner of human services shall 246.9 certify to the commissioner of revenue the number of children in 246.10 out-of-home placement in 1991 and 1992 for each county and the 246.11 income maintenance caseload for each county for the most recent 246.12 year available. By July 1 of each subsequent year, the 246.13 commissioner of human services shall certify to the commissioner 246.14 of revenue the income maintenance caseload for each county for 246.15 the most recent calendar year available. 246.16 Sec. 38. [REVISOR INSTRUCTION.] 246.17 The revisor of statutes shall identify in Minnesota 246.18 Statutes and Minnesota Rules all references to aid to families 246.19 with dependent children and AFDC, and to Minnesota Statutes, 246.20 section 256.12, or any of the sections of Minnesota Statutes 246.21 from sections 256.72 to 256.87. 246.22 The revisor shall prepare a report by January 1, 1998, for 246.23 the 1998 legislature showing where these references are located. 246.24 Sec. 39. [EFFECTIVE DATE.] 246.25 Sections 1 to 37 are effective July 1, 1997. 246.26 ARTICLE 5 246.27 CORPS TO CAREER PROGRAM 246.28 Section 1. Minnesota Statutes 1996, section 84.0887, 246.29 subdivision 2, is amended to read: 246.30 Subd. 2. [ADDITIONAL SERVICES; CORPS TO CAREER COMMUNITY 246.31 SERVICE.] (a) In addition to services under subdivision 1, youth 246.32 corps programs may coordinate with or provide services to: 246.33 (1) making public facilities accessible to individuals with 246.34 disabilities; 246.35 (2) federal, state, local, and regional governmental 246.36 agencies; 247.1 (3) nursing homes, hospices, senior centers, hospitals, 247.2 local libraries, parks, recreational facilities, child and adult 247.3 day care centers, programs servicing individuals with 247.4 disabilities, and schools; 247.5 (4) law enforcement agencies, and penal and probation 247.6 systems; 247.7 (5) private nonprofit organizations that primarily focus on 247.8 social service such as community action agencies; 247.9 (6) activities that focus on the rehabilitation or 247.10 improvement of public facilities, neighborhood improvements, 247.11 literacy training that benefits educationally disadvantaged 247.12 individuals, weatherization of and basic repairs to low-income 247.13 housing including housing occupied by older adults, activities 247.14 that focus on drug and alcohol abuse education, prevention, and 247.15 treatment; and 247.16 (7) any other nonpartisan civic activities and services 247.17 that the commissioner determines to be of a substantial social 247.18 benefit in meeting unmet human, educational, or environmental 247.19 needs, particularly needs related to poverty, or in the 247.20 community where volunteer service is to be performed. 247.21 (b) Youth and young adults may provide full-time or 247.22 part-time youth community service in a program known as "corps 247.23 to career" if the individual: 247.24 (1) is an unemployed high school dropout and is a parent of 247.25 a minor member of an assistance unit under the AFDC, MFIP, or 247.26 MFIP-R programs under chapter 256, or under the MFIP-S program 247.27 under chapter 256J, or is a person who is a member of an 247.28 assistance unit under the AFDC, MFIP, or MFIP-R programs under 247.29 chapter 256, or under the MFIP-S program under chapter 256J; 247.30 (2) agrees to only use the individual's postservice benefit 247.31 under the federal Americorps Act to complete a customized job 247.32 training program that requires 20 percent of the individual's 247.33 time to be spent in the corps to career program and that is 247.34 consistent with the work requirements of the employment and 247.35 training services component of the MFIP-S program under chapter 247.36 256J or, if a customized job training program is unavailable, 248.1 agrees to use the postservice benefit consistent with the 248.2 federal education award; and 248.3 (3) during the entire time the individual completes the 248.4 individual's job training program, resides within an enterprise 248.5 zone as defined in section 469.303. 248.6 To be eligible under this paragraph, any individual who 248.7 receives assistance under clause (1) after MFIP-S has been 248.8 implemented in the individual's county of financial 248.9 responsibility, and who meets the requirements in clauses (2) 248.10 and (3), also must meet the requirements of the employment and 248.11 training services component of the MFIP-S program under chapter 248.12 256J. 248.13 (c) The commissioner of the department of natural resources 248.14 shall ensure that the corps to career program will not decrease 248.15 employment opportunities that would be available without the 248.16 program; will not displace current employees including any 248.17 partial displacement in the form of reduced hours of work other 248.18 than overtime, wages, employment benefits, or regular seasonal 248.19 work; will not impair existing labor agreements; and will not 248.20 result in the substitution of project funding for preexisting 248.21 funds or sources of funds for ongoing work. 248.22 Sec. 2. [EFFECTIVE DATE.] 248.23 This article is effective July 1, 1997. 248.24 ARTICLE 6 248.25 CITIZENSHIP PROMOTION 248.26 Section 1. [3.9228] [CITIZENSHIP PROMOTION PROGRAM.] 248.27 Subdivision 1. [CREATION.] The citizenship promotion 248.28 program is created as a statewide program. The purpose of the 248.29 program is to provide assistance to legal immigrants to obtain 248.30 citizenship status. The program consists of public education 248.31 and information, group application workshops, citizenship and 248.32 English for citizenship classes, and video citizenship 248.33 instruction. 248.34 Subd. 2. [PUBLIC EDUCATION AND INFORMATION.] The public 248.35 education program must include the preparation and distribution 248.36 of information about citizenship eligibility requirements, how 249.1 to apply, what testing requirements are, and where citizenship 249.2 assistance can be obtained. Community meetings must be held to 249.3 provide the same information and to respond to questions. 249.4 Subd. 3. [GROUP APPLICATION WORKSHOPS.] Group workshops 249.5 must be held on a periodic basis. The workshops must provide 249.6 individualized advice about applying for citizenship and provide 249.7 an overview of the citizenship process. Participants must be 249.8 screened for English proficiency and, upon request, enrolled in 249.9 citizenship application workshops. 249.10 Subd. 4. [CITIZENSHIP AND ENGLISH CLASSES.] The program 249.11 must support and supplement existing English for citizenship 249.12 classes. Classes must also be supported and offered in native 249.13 languages for those able to take a citizenship test in their 249.14 native language. Tuition may be charged for classes, 249.15 scholarships provided for needy students, interpreters provided, 249.16 and transportation and child care assistance provided for 249.17 hardship applicants. 249.18 Subd. 5. [VIDEO INSTRUCTION.] The program must develop and 249.19 produce a television series to provide citizenship education and 249.20 make available videotapes of the classes. 249.21 Subd. 6. [ADMINISTRATION.] The executive directors of the 249.22 councils on Black Minnesotans, Asian-Pacific Minnesotans, and 249.23 Chicano-Latino affairs shall jointly administer the citizenship 249.24 promotion program. The directors shall jointly hire and 249.25 supervise staff to coordinate the program. The staff shall 249.26 process applications for grants, act as a clearinghouse to 249.27 promote the exchange of information, expertise, and best 249.28 practices among citizenship promotion programs and 249.29 organizations, and develop resources to assist in the operation 249.30 of community-based programs. The staff shall organize an 249.31 advisory committee of representatives of ethnic and geographic 249.32 groups of legal immigrants. 249.33 Subd. 7. [GRANTS.] The directors shall make grants to 249.34 nonprofit organizations and government agencies to operate 249.35 citizenship promotion programs under this section. The staff 249.36 shall consult with the advisory committee about the appropriate 250.1 selection of grantees and about what policies should be adopted 250.2 to ensure that the goals of the citizenship promotion programs 250.3 are attained. In awarding grants, the directors must consider 250.4 the quality of programs operated by proposed applicants, 250.5 including the program's prior success in enabling immigrants to 250.6 become citizens. Grant applicants must identify the measures by 250.7 which their success with the grant funds will be evaluated, 250.8 including the numbers of immigrants who are expected to become 250.9 citizens. In awarding grants, the councils shall ensure 250.10 reasonable access to citizenship programs in all regions of 250.11 Minnesota. 250.12 Sec. 2. [EFFECTIVE DATE.] 250.13 This article is effective the day following final enactment. 250.14 ARTICLE 7 250.15 PROGRAM INTEGRITY INITIATIVES 250.16 Section 1. Minnesota Statutes 1996, section 13.82, 250.17 subdivision 1, is amended to read: 250.18 Subdivision 1. [APPLICATION.] This section shall apply to 250.19 agencies which carry on a law enforcement function, including 250.20 but not limited to municipal police departments, county sheriff 250.21 departments, fire departments, the bureau of criminal 250.22 apprehension, the Minnesota state patrol, the board of peace 250.23 officer standards and training, the department of commerce,and250.24 the department of labor and industry fraud investigation unit, 250.25 and the program integrity section and county human services 250.26 agency client and provider fraud prevention and control units 250.27 operated or supervised by the department of human services. 250.28 Sec. 2. Minnesota Statutes 1996, section 256.01, 250.29 subdivision 2, is amended to read: 250.30 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 250.31 section 241.021, subdivision 2, the commissioner of human 250.32 services shall: 250.33 (1) Administer and supervise all forms of public assistance 250.34 provided for by state law and other welfare activities or 250.35 services as are vested in the commissioner. Administration and 250.36 supervision of human services activities or services includes, 251.1 but is not limited to, assuring timely and accurate distribution 251.2 of benefits, completeness of service, and quality program 251.3 management. In addition to administering and supervising human 251.4 services activities vested by law in the department, the 251.5 commissioner shall have the authority to: 251.6 (a) require county agency participation in training and 251.7 technical assistance programs to promote compliance with 251.8 statutes, rules, federal laws, regulations, and policies 251.9 governing human services; 251.10 (b) monitor, on an ongoing basis, the performance of county 251.11 agencies in the operation and administration of human services, 251.12 enforce compliance with statutes, rules, federal laws, 251.13 regulations, and policies governing welfare services and promote 251.14 excellence of administration and program operation; 251.15 (c) develop a quality control program or other monitoring 251.16 program to review county performance and accuracy of benefit 251.17 determinations; 251.18 (d) require county agencies to make an adjustment to the 251.19 public assistance benefits issued to any individual consistent 251.20 with federal law and regulation and state law and rule and to 251.21 issue or recover benefits as appropriate; 251.22 (e) delay or deny payment of all or part of the state and 251.23 federal share of benefits and administrative reimbursement 251.24 according to the procedures set forth in section 256.017; and 251.25 (f) make contracts with and grants to public and private 251.26 agencies and organizations, both profit and nonprofit, and 251.27 individuals, using appropriated funds. 251.28 (2) Inform county agencies, on a timely basis, of changes 251.29 in statute, rule, federal law, regulation, and policy necessary 251.30 to county agency administration of the programs. 251.31 (3) Administer and supervise all child welfare activities; 251.32 promote the enforcement of laws protecting handicapped, 251.33 dependent, neglected and delinquent children, and children born 251.34 to mothers who were not married to the children's fathers at the 251.35 times of the conception nor at the births of the children; 251.36 license and supervise child-caring and child-placing agencies 252.1 and institutions; supervise the care of children in boarding and 252.2 foster homes or in private institutions; and generally perform 252.3 all functions relating to the field of child welfare now vested 252.4 in the state board of control. 252.5 (4) Administer and supervise all noninstitutional service 252.6 to handicapped persons, including those who are visually 252.7 impaired, hearing impaired, or physically impaired or otherwise 252.8 handicapped. The commissioner may provide and contract for the 252.9 care and treatment of qualified indigent children in facilities 252.10 other than those located and available at state hospitals when 252.11 it is not feasible to provide the service in state hospitals. 252.12 (5) Assist and actively cooperate with other departments, 252.13 agencies and institutions, local, state, and federal, by 252.14 performing services in conformity with the purposes of Laws 252.15 1939, chapter 431. 252.16 (6) Act as the agent of and cooperate with the federal 252.17 government in matters of mutual concern relative to and in 252.18 conformity with the provisions of Laws 1939, chapter 431, 252.19 including the administration of any federal funds granted to the 252.20 state to aid in the performance of any functions of the 252.21 commissioner as specified in Laws 1939, chapter 431, and 252.22 including the promulgation of rules making uniformly available 252.23 medical care benefits to all recipients of public assistance, at 252.24 such times as the federal government increases its participation 252.25 in assistance expenditures for medical care to recipients of 252.26 public assistance, the cost thereof to be borne in the same 252.27 proportion as are grants of aid to said recipients. 252.28 (7) Establish and maintain any administrative units 252.29 reasonably necessary for the performance of administrative 252.30 functions common to all divisions of the department. 252.31 (8) Act as designated guardian of both the estate and the 252.32 person of all the wards of the state of Minnesota, whether by 252.33 operation of law or by an order of court, without any further 252.34 act or proceeding whatever, except as to persons committed as 252.35 mentally retarded. 252.36 (9) Act as coordinating referral and informational center 253.1 on requests for service for newly arrived immigrants coming to 253.2 Minnesota. 253.3 (10) The specific enumeration of powers and duties as 253.4 hereinabove set forth shall in no way be construed to be a 253.5 limitation upon the general transfer of powers herein contained. 253.6 (11) Establish county, regional, or statewide schedules of 253.7 maximum fees and charges which may be paid by county agencies 253.8 for medical, dental, surgical, hospital, nursing and nursing 253.9 home care and medicine and medical supplies under all programs 253.10 of medical care provided by the state and for congregate living 253.11 care under the income maintenance programs. 253.12 (12) Have the authority to conduct and administer 253.13 experimental projects to test methods and procedures of 253.14 administering assistance and services to recipients or potential 253.15 recipients of public welfare. To carry out such experimental 253.16 projects, it is further provided that the commissioner of human 253.17 services is authorized to waive the enforcement of existing 253.18 specific statutory program requirements, rules, and standards in 253.19 one or more counties. The order establishing the waiver shall 253.20 provide alternative methods and procedures of administration, 253.21 shall not be in conflict with the basic purposes, coverage, or 253.22 benefits provided by law, and in no event shall the duration of 253.23 a project exceed four years. It is further provided that no 253.24 order establishing an experimental project as authorized by the 253.25 provisions of this section shall become effective until the 253.26 following conditions have been met: 253.27 (a) The proposed comprehensive plan, including estimated 253.28 project costs and the proposed order establishing the waiver, 253.29 shall be filed with the secretary of the senate and chief clerk 253.30 of the house of representatives at least 60 days prior to its 253.31 effective date. 253.32 (b) The secretary of health, education, and welfare of the 253.33 United States has agreed, for the same project, to waive state 253.34 plan requirements relative to statewide uniformity. 253.35 (c) A comprehensive plan, including estimated project 253.36 costs, shall be approved by the legislative advisory commission 254.1 and filed with the commissioner of administration. 254.2 (13)In accordance withAccording to federal requirements, 254.3 establish procedures to be followed by local welfare boards in 254.4 creating citizen advisory committees, including procedures for 254.5 selection of committee members. 254.6 (14) Allocate federal fiscal disallowances or sanctions 254.7 which are based on quality control error rates for the aid to 254.8 families with dependent children, Minnesota family investment 254.9 program-statewide, medical assistance, or food stamp program in 254.10 the following manner: 254.11 (a) One-half of the total amount of the disallowance shall 254.12 be borne by the county boards responsible for administering the 254.13 programs. For the medical assistance, MFIP-S, and AFDC 254.14 programs, disallowances shall be shared by each county board in 254.15 the same proportion as that county's expenditures for the 254.16 sanctioned program are to the total of all counties' 254.17 expenditures for the AFDC, MFIP-S, and medical assistance 254.18 programs. For the food stamp program, sanctions shall be shared 254.19 by each county board, with 50 percent of the sanction being 254.20 distributed to each county in the same proportion as that 254.21 county's administrative costs for food stamps are to the total 254.22 of all food stamp administrative costs for all counties, and 50 254.23 percent of the sanctions being distributed to each county in the 254.24 same proportion as that county's value of food stamp benefits 254.25 issued are to the total of all benefits issued for all 254.26 counties. Each county shall pay its share of the disallowance 254.27 to the state of Minnesota. When a county fails to pay the 254.28 amount due hereunder, the commissioner may deduct the amount 254.29 from reimbursement otherwise due the county, or the attorney 254.30 general, upon the request of the commissioner, may institute 254.31 civil action to recover the amount due. 254.32 (b) Notwithstanding the provisions of paragraph (a), if the 254.33 disallowance results from knowing noncompliance by one or more 254.34 counties with a specific program instruction, and that knowing 254.35 noncompliance is a matter of official county board record, the 254.36 commissioner may require payment or recover from the county or 255.1 counties, in the manner prescribed in paragraph (a), an amount 255.2 equal to the portion of the total disallowance which resulted 255.3 from the noncompliance, and may distribute the balance of the 255.4 disallowance according to paragraph (a). 255.5 (15) Develop and implement special projects that maximize 255.6 reimbursements and result in the recovery of money to the 255.7 state. For the purpose of recovering state money, the 255.8 commissioner may enter into contracts with third parties. Any 255.9 recoveries that result from projects or contracts entered into 255.10 under this paragraph shall be deposited in the state treasury 255.11 and credited to a special account until the balance in the 255.12 account reaches $1,000,000. When the balance in the account 255.13 exceeds $1,000,000, the excess shall be transferred and credited 255.14 to the general fund. All money in the account is appropriated 255.15 to the commissioner for the purposes of this paragraph. 255.16 (16) Have the authority to make direct payments to 255.17 facilities providing shelter to women and their children 255.18pursuantaccording to section 256D.05, subdivision 3. Upon the 255.19 written request of a shelter facility that has been denied 255.20 payments under section 256D.05, subdivision 3, the commissioner 255.21 shall review all relevant evidence and make a determination 255.22 within 30 days of the request for review regarding issuance of 255.23 direct payments to the shelter facility. Failure to act within 255.24 30 days shall be considered a determination not to issue direct 255.25 payments. 255.26 (17) Have the authority to establish and enforce the 255.27 following county reporting requirements: 255.28 (a) The commissioner shall establish fiscal and statistical 255.29 reporting requirements necessary to account for the expenditure 255.30 of funds allocated to counties for human services programs. 255.31 When establishing financial and statistical reporting 255.32 requirements, the commissioner shall evaluate all reports, in 255.33 consultation with the counties, to determine if the reports can 255.34 be simplified or the number of reports can be reduced. 255.35 (b) The county board shall submit monthly or quarterly 255.36 reports to the department as required by the commissioner. 256.1 Monthly reports are due no later than 15 working days after the 256.2 end of the month. Quarterly reports are due no later than 30 256.3 calendar days after the end of the quarter, unless the 256.4 commissioner determines that the deadline must be shortened to 256.5 20 calendar days to avoid jeopardizing compliance with federal 256.6 deadlines or risking a loss of federal funding. Only reports 256.7 that are complete, legible, and in the required format shall be 256.8 accepted by the commissioner. 256.9 (c) If the required reports are not received by the 256.10 deadlines established in clause (b), the commissioner may delay 256.11 payments and withhold funds from the county board until the next 256.12 reporting period. When the report is needed to account for the 256.13 use of federal funds and the late report results in a reduction 256.14 in federal funding, the commissioner shall withhold from the 256.15 county boards with late reports an amount equal to the reduction 256.16 in federal funding until full federal funding is received. 256.17 (d) A county board that submits reports that are late, 256.18 illegible, incomplete, or not in the required format for two out 256.19 of three consecutive reporting periods is considered 256.20 noncompliant. When a county board is found to be noncompliant, 256.21 the commissioner shall notify the county board of the reason the 256.22 county board is considered noncompliant and request that the 256.23 county board develop a corrective action plan stating how the 256.24 county board plans to correct the problem. The corrective 256.25 action plan must be submitted to the commissioner within 45 days 256.26 after the date the county board received notice of noncompliance. 256.27 (e) The final deadline for fiscal reports or amendments to 256.28 fiscal reports is one year after the date the report was 256.29 originally due. If the commissioner does not receive a report 256.30 by the final deadline, the county board forfeits the funding 256.31 associated with the report for that reporting period and the 256.32 county board must repay any funds associated with the report 256.33 received for that reporting period. 256.34 (f) The commissioner may not delay payments, withhold 256.35 funds, or require repayment under paragraph (c) or (e) if the 256.36 county demonstrates that the commissioner failed to provide 257.1 appropriate forms, guidelines, and technical assistance to 257.2 enable the county to comply with the requirements. If the 257.3 county board disagrees with an action taken by the commissioner 257.4 under paragraph (c) or (e), the county board may appeal the 257.5 action according to sections 14.57 to 14.69. 257.6 (g) Counties subject to withholding of funds under 257.7 paragraph (c) or forfeiture or repayment of funds under 257.8 paragraph (e) shall not reduce or withhold benefits or services 257.9 to clients to cover costs incurred due to actions taken by the 257.10 commissioner under paragraph (c) or (e). 257.11 (18) Allocate federal fiscal disallowances or sanctions for 257.12 audit exceptions when federal fiscal disallowances or sanctions 257.13 are based on a statewide random sample for the foster care 257.14 program under title IV-E of the Social Security Act, United 257.15 States Code, title 42, in direct proportion to each county's 257.16 title IV-E foster care maintenance claim for that period. 257.17 (19) Be responsible for ensuring the detection, prevention, 257.18 investigation, and resolution of fraudulent activities or 257.19 behavior by applicants, recipients, and other participants in 257.20 the human services programs administered by the department. 257.21 (20) Require county agencies to identify overpayments, 257.22 establish claims and utilize all available and cost-beneficial 257.23 methodologies to collect and recover these overpayments in the 257.24 human services programs administered by the department. 257.25 Sec. 3. Minnesota Statutes 1996, section 256.017, 257.26 subdivision 2, is amended to read: 257.27 Subd. 2. [DEFINITIONS.] The following terms have the 257.28 meanings given forthe purposepurposes of this section. 257.29 (a) "Administrative penalty" means an adjustment against 257.30 the county agency's state and federal benefit and federal 257.31 administrative reimbursement when the commissioner determines 257.32 that the county agency is not in compliance with the policies 257.33 and procedures established by the commissioner. 257.34 (b) "Quality control case penalty" means an adjustment 257.35 against the county agency's federal administrative reimbursement 257.36 and state and federal benefit reimbursement when the 258.1 commissioner determines through a quality control review that 258.2 the county agency has made incorrect payments, terminations, or 258.3 denials of benefits as determined by state quality control 258.4 procedures for the aid to families with dependent children in 258.5 effect until January 1, 1998, Minnesota family investment 258.6 program-statewide, food stamp, or medical assistance programs, 258.7 or any other programs for which the commissioner has developed a 258.8 quality control system. Quality control case penalties apply 258.9 only to agency errors as defined by state quality control 258.10 procedures. 258.11 (c) "Quality control/quality assurance" means a review 258.12 system of a statewide random sample of cases, designed to 258.13 provide data on program outcomes and the accuracy with which 258.14 state and federal policies are being applied in issuing benefits 258.15 and as a fiscal audit to ensure the accuracy of expenditures. 258.16 The quality control/quality assurance system is administered by 258.17 the department. For the aid to families with dependent children 258.18 in effect until January 1, 1998, Minnesota family investment 258.19 program-statewide, food stamp, and medical assistance programs, 258.20 the quality control system is that required by federal 258.21 regulation, or those developed by the commissioner. 258.22 Sec. 4. Minnesota Statutes 1996, section 256.019, is 258.23 amended to read: 258.24 256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 258.25 When an amount is recovered from any source for assistance 258.26 given under the provisions governing public assistance programs 258.27 including aid to families with dependent children, MFIP-S, 258.28 general assistance medical care, emergency assistance, general 258.29 assistance,work readiness,and Minnesota supplemental aid, 258.30there shall be paid to the United States the amount due under258.31the terms of the Social Security Act and the balance must be258.32paid into the treasury of the state or county in accordance with258.33current rates of financial participation; exceptthe county may 258.34 keep one-half of any recovery made by the county agency using 258.35 any method other than recoupment. For medical assistance, if 258.36 the recovery is made by a county agency using any method other 259.1 than recoupment, the county may keep one-half of the nonfederal 259.2 share of the recovery. This does not apply to recoveries from 259.3 medical providers or to recoveries begun by the department of 259.4 human services' surveillance and utilization review division, 259.5 state hospital collections unit, and the benefit recoveries 259.6 division or, by the attorney general's office, or child support 259.7 collections. In the food stamp program, the non-federal share 259.8 of recoveries in the federal tax refund offset program (FTROP) 259.9 only will be divided equally between the state agency and the 259.10 involved county agency. 259.11 Sec. 5. Minnesota Statutes 1996, section 256.045, 259.12 subdivision 3, is amended to read: 259.13 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 259.14 hearings are available for the following: (1) any person 259.15 applying for, receiving or having received public assistance, 259.16 medical care, or a program of social services granted by the 259.17 state agency or a county agencyunder sections 252.32, 256.031259.18to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E,259.19261,or the federal Food Stamp Act whose application for 259.20 assistance is denied, not acted upon with reasonable promptness, 259.21 or whose assistance is suspended, reduced, terminated, or 259.22 claimed to have been incorrectly paid; (2) any patient or 259.23 relative aggrieved by an order of the commissioner under section 259.24 252.27; (3) a party aggrieved by a ruling of a prepaid health 259.25 plan; (4) any individual or facility determined by a lead agency 259.26 to have maltreated a vulnerable adult under section 626.557 259.27 after they have exercised their right to administrative 259.28 reconsideration under section 626.557; (5) any person whose 259.29 claim for foster care paymentpursuantaccording to a placement 259.30 of the child resulting from a child protection assessment under 259.31 section 626.556 is denied or not acted upon with reasonable 259.32 promptness, regardless of funding source; (6) any person to whom 259.33 a right of appealpursuantaccording to this section is given by 259.34 other provision of law; or (7) an applicant aggrieved by an 259.35 adverse decision to an application for a hardship waiver under 259.36 section 256B.15. The failure to exercise the right to an 260.1 administrative reconsideration shall not be a bar to a hearing 260.2 under this section if federal law provides an individual the 260.3 right to a hearing to dispute a finding of maltreatment. 260.4 Individuals and organizations specified in this section may 260.5 contest the specified action, decision, or final disposition 260.6 before the state agency by submitting a written request for a 260.7 hearing to the state agency within 30 days after receiving 260.8 written notice of the action, decision, or final disposition, or 260.9 within 90 days of such written notice if the applicant, 260.10 recipient, patient, or relative shows good cause why the request 260.11 was not submitted within the 30-day time limit. 260.12 The hearing for an individual or facility under clause (4) 260.13 is the only administrative appeal to the final lead agency 260.14 disposition specifically, including a challenge to the accuracy 260.15 and completeness of data under section 13.04. Hearings 260.16 requested under clause (4) apply only to incidents of 260.17 maltreatment that occur on or after October 1, 1995. Hearings 260.18 requested by nursing assistants in nursing homes alleged to have 260.19 maltreated a resident prior to October 1, 1995, shall be held as 260.20 a contested case proceeding under the provisions of chapter 14. 260.21 For purposes of this section, bargaining unit grievance 260.22 procedures are not an administrative appeal. 260.23 The scope of hearings involving claims to foster care 260.24 payments under clause (5) shall be limited to the issue of 260.25 whether the county is legally responsible for a child's 260.26 placement under court order or voluntary placement agreement 260.27 and, if so, the correct amount of foster care payment to be made 260.28 on the child's behalf and shall not include review of the 260.29 propriety of the county's child protection determination or 260.30 child placement decision. 260.31 (b) Except for a prepaid health plan, a vendor of medical 260.32 care as defined in section 256B.02, subdivision 7, or a vendor 260.33 under contract with a county agency to provide social services 260.34 under section 256E.08, subdivision 4, is not a party and may not 260.35 request a hearing under this section, except if assisting a 260.36 recipient as provided in subdivision 4. 261.1 (c) An applicant or recipient is not entitled to receive 261.2 social services beyond the services included in the amended 261.3 community social services plan developed under section 256E.081, 261.4 subdivision 3, if the county agency has met the requirements in 261.5 section 256E.081. 261.6 (d) The commissioner may summarily affirm the county or 261.7 state agency's proposed action without a hearing when the sole 261.8 issue is an automatic change due to a change in state or federal 261.9 law. 261.10 Sec. 6. Minnesota Statutes 1996, section 256.046, is 261.11 amended to read: 261.12 256.046 [ADMINISTRATIVE FRAUD DISQUALIFICATION HEARINGS.] 261.13 Subdivision 1. [HEARING AUTHORITY.] A local agencymay261.14 shall initiate an administrative fraud disqualification hearing 261.15 for individuals accused of wrongfully obtaining assistance or 261.16 intentional program violations, in lieu of a criminal action, in 261.17 the aid to families with dependent children in effect until 261.18 January 1, 1998, MFIP-S, child care, general assistance, family 261.19 general assistance, Minnesota supplemental aid, medical care, or 261.20 food stamp programs. The hearing is subject to the requirements 261.21 of section 256.045 and the requirements in Code of Federal 261.22 Regulations, title 7, section 273.16, for the food stamp program 261.23 and title 45, section 235.112, as of September 30, 1995, for the 261.24aid to families with dependent children programcash grant and 261.25 medical care programs. 261.26 Subd. 2. [COMBINED HEARING.] The referee may combine a 261.27 fair hearing and administrative fraud disqualification hearing 261.28 into a single hearing if the factual issues arise out of the 261.29 same, or related, circumstances and the individual receives 261.30 prior notice that the hearings will be combined. If the 261.31 administrative fraud disqualification hearing and fair hearing 261.32 are combined, the time frames for administrative fraud 261.33 disqualification hearingsset forthspecified in Code of Federal 261.34 Regulations, title 7, section 273.16, and title 45, section 261.35 235.112, as of September 30, 1995, apply. If the individual 261.36 accused of wrongfully obtaining assistance is charged under 262.1 section 256.98 for the same act or acts which are the subject of 262.2 the hearing, the individual may request that the hearing be 262.3 delayed until the criminal charge is decided by the court or 262.4 withdrawn. 262.5 Sec. 7. [256.0471] [OVERPAYMENTS BECOME JUDGMENTS BY 262.6 OPERATION OF LAW.] 262.7 Subdivision 1. [QUALIFYING OVERPAYMENT.] Except for agency 262.8 error claims, any overpayment for assistance granted under 262.9 sections 256.031 to 256.0361, 256.72 to 256.871, and 256H.05; 262.10 chapters 256B, 256D, 256I, 256J, and 256K; and the food stamp 262.11 program; becomes a judgment by operation of law 90 days after 262.12 the notice of overpayment is personally served upon the 262.13 recipient in a manner that is sufficient under rule 4.03(a) of 262.14 the Rules of Civil Procedure or by certified mail, return 262.15 receipt requested. This judgment shall be entitled to full 262.16 faith and credit in this and any other state. 262.17 Subd. 2. [OVERPAYMENTS INCLUDED.] This section is limited 262.18 to overpayments for which notification is issued within the time 262.19 period specified under section 541.05. 262.20 Subd. 3. [NOTIFICATION REQUIREMENTS.] A judgment is only 262.21 obtained after: 262.22 (1) a notice of overpayment has been personally served on 262.23 the recipient or former recipient in a manner sufficient under 262.24 rule 4.03(a) of the Rules of Civil Procedure for district 262.25 courts, or mailed to the recipient or former recipient by 262.26 certified mail, return receipt requested; and 262.27 (2) the time period under section 256.045, subdivision 3, 262.28 has elapsed without a request for a hearing, or a hearing 262.29 decision has been rendered under section 256.045 or 256.046 262.30 which concludes the existence of an overpayment that meets the 262.31 requirements of this section. 262.32 Subd. 4. [NOTICE OF OVERPAYMENT.] The notice of 262.33 overpayment shall include the amount and cause of the 262.34 overpayment, appeal rights, and an explanation of the 262.35 consequences of the judgment that will be established if an 262.36 appeal is not filed timely or if the administrative hearing 263.1 decision establishes that there is an overpayment which 263.2 qualifies for judgment. 263.3 Subd. 5. [JUDGMENTS ENTERED AND DOCKETED.] A judgment 263.4 shall be entered and docketed under section 548.09 only after at 263.5 least three months have elapsed since: 263.6 (1) the notice of overpayment was served on the recipient 263.7 under subdivision 3; and 263.8 (2) the last time a monthly recoupment was applied to the 263.9 overpayment. 263.10 Subd. 6. [DOCKETING OF OVERPAYMENTS.] On or after the date 263.11 an unpaid overpayment becomes a judgment by operation of law 263.12 under subdivision 1, the agency or public authority may file 263.13 with the court administrator: 263.14 (1) a statement identifying, or a copy of, the overpayment 263.15 notice which provides for an appeal process and requires payment 263.16 of the overpayment; 263.17 (2) proof of service of the notice of overpayment; 263.18 (3) an affidavit of default, stating the full name, 263.19 occupation, place of residence, and last name of the debtor; the 263.20 name and post office address of the agency or public authority; 263.21 the date or dates the overpayment was incurred; the program that 263.22 was overpaid; and the total amount of the judgment; and 263.23 (4) an affidavit of service of a notice of entry of 263.24 judgment made by first class mail at the address where the 263.25 debtor was served with the notice of overpayment. Service is 263.26 completed upon mailing in the manner designated. 263.27 Subd. 7. [DOES NOT IMPEDE OTHER METHODS.] Nothing in this 263.28 section shall be construed to impede or restrict alternative 263.29 recovery methods for these overpayments or overpayments which do 263.30 not meet the requirements of this section. 263.31 Sec. 8. Minnesota Statutes 1996, section 256.98, 263.32 subdivision 1, is amended to read: 263.33 Subdivision 1. [WRONGFULLY OBTAINING ASSISTANCE.] A person 263.34 who commits any of the following acts or omissions with intent 263.35 to defeat the purposes of sections 145.891 to 145.897, 256.12, 263.36 256.031 to 256.0361, 256.72 to 256.871, 256.9351 to 256.966, 264.1 child care, MFIP-S, chapter 256B, 256D, 256J, or 256K, or all of 264.2 these sections, is guilty of theft and shall be sentenced under 264.3 section 609.52, subdivision 3, clauses (1) to (5): 264.4 (1) obtains,or attempts to obtain, or aids or abets any 264.5 person to obtain by means of a willfully false statement or 264.6 representation, by intentional concealment ofaany material 264.7 fact, or by impersonation or other fraudulent device, assistance 264.8 or the continued receipt of assistance, including, but not 264.9 limited to, child care or vouchers produced according to 264.10 sections 145.891 to 145.897 and MinnesotaCare services according 264.11 to sections 256.9351 to 256.966, to which the person is not 264.12 entitled or assistance greater than that to which the person is 264.13 entitled, or who; or 264.14 (2) knowingly aids or abets in buying or in any way 264.15 disposing of the property of a recipient or applicant of 264.16 assistance without the consent of the county agencywith intent264.17to defeat the purposes of sections 256.12, 256.031 to 256.0361,264.18256.72 to 256.871, and chapter 256B, or all of these sections is264.19guilty of theft and shall be sentenced pursuant to section264.20609.52, subdivision 3, clauses (2), (3)(a) and (c), (4), and (5). 264.21 The continued receipt of assistance to which the person is 264.22 not entitled or greater than that to which the person is 264.23 entitled as a result of any of the acts, failure to act, or 264.24 concealment described in this subdivision shall be deemed to be 264.25 continuing offenses from the date that the first act or failure 264.26 to act occurred. 264.27 Sec. 9. Minnesota Statutes 1996, section 256.98, 264.28 subdivision 4, is amended to read: 264.29 Subd. 4. [RECOVERY OF ASSISTANCE.] The amount of 264.30 assistance determined to have been incorrectly paid is 264.31 recoverable from: 264.32 (1) the recipient or the recipient's estate by the county 264.33 or the state as a debt due the county or the state or bothin264.34proportion to the contribution of each.; and 264.35 (2) any person found to have taken independent action to 264.36 establish eligibility for, conspired with, or aided and abetted, 265.1 any recipient of public assistance found to have been 265.2 incorrectly paid. 265.3 Sec. 10. Minnesota Statutes 1996, section 256.98, 265.4 subdivision 8, is amended to read: 265.5 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 265.6 to be guilty of wrongfully obtaining assistance by a federal or 265.7 state court or by an administrative hearing determination, or 265.8 waiver thereof, through a disqualification consent agreement, or 265.9 as part of any approved diversion plan under section 401.065, or 265.10 any court ordered stay which carries with it any probationary or 265.11 other conditions, in the aid to families with dependent children 265.12 program, the Minnesota family assistance program-statewide, the 265.13 food stamp program, the Minnesota family investment plan, child 265.14 care program, the general assistance or family general 265.15 assistance program, or the Minnesota supplemental aid program,265.16or the work readiness programshall be disqualified from that 265.17 program. The needs of that individual shall not be taken into 265.18 consideration in determining the grant level for that assistance 265.19 unit: 265.20 (1) forsix monthsone year after the first offense; 265.21 (2) for12 monthstwo years after the second offense; and 265.22 (3) permanently after the third or subsequent offense. 265.23 The period of program disqualification shall begin on the 265.24 date stipulated on the advance notice of disqualification 265.25 without possibility of postponement for administrative stay or 265.26 administrative hearing and shall continue through completion 265.27 unless and until the findings upon which the sanctions were 265.28 imposed are reversed by a court of competent jurisdiction. The 265.29 period for which sanctions are imposed is not subject to 265.30 review. The sanctions provided under this subdivision are in 265.31 addition to, and not in substitution for, any other sanctions 265.32 that may be provided for by law for the offense involved. A 265.33 disqualification established through hearing or waiver shall 265.34 result in the disqualification period beginning immediately 265.35 unless the person has become otherwise ineligible for 265.36 assistance. If the person is ineligible for assistance, the 266.1 disqualification period begins when the person again meets the 266.2 eligibility criteria of the program from which they were 266.3 disqualified and makes application for that program. 266.4 Sec. 11. Minnesota Statutes 1996, section 256.983, 266.5 subdivision 1, is amended to read: 266.6 Subdivision 1. [PROGRAMS ESTABLISHED.] Within the limits 266.7 of available appropriations,and to the extent required or266.8authorized by applicable federal regulations,the commissioner 266.9 of human services shall require theestablishmentmaintenance of 266.10 budget neutral fraud prevention investigation programs in the 266.11sevencounties participating in the fraud prevention 266.12 investigationpilotproject established under this section, and266.13in 11 additional Minnesota counties with the largest aid to266.14families with dependent children program caseloads as of July 1,266.151991. If funds are sufficient, the commissioner may also extend 266.16 fraud prevention investigation programs to: (1)other 266.17 countiesthat have welfare fraud control programs already in266.18place based on enhanced funding contracts covering the fraud266.19investigation function; and (2) counties that have the largest266.20AFDC caseloads as of July 1, 1994, and are not currently266.21participating in the fraud prevention investigation pilot266.22project. The pilot project may be expandedprovided the 266.23 expansion is budget neutral to the state. 266.24 Sec. 12. Minnesota Statutes 1996, section 256.983, 266.25 subdivision 4, is amended to read: 266.26 Subd. 4. [FUNDING.] (a)Every involved county agency shall266.27either have in place or obtain an approved contract which meets266.28all federal requirements necessary to obtain enhanced federal266.29funding for its welfare fraud control and fraud prevention266.30investigation programs.County agency reimbursement shall be 266.31 made through the settlement provisions applicable to the aid to 266.32 families with dependent childrenandprogram, food 266.33 stampprogramsprogram, Minnesota family investment 266.34 program-statewide, and medical assistance program and other 266.35 federal and state funded programs. 266.36 (b)After allowing an opportunity to establish compliance,267.1 The commissioner willdeny administrative reimbursementmaintain 267.2 program compliance if for anythree-monththree consecutive 267.3 month periodduring any grant year, a county agency fails to 267.4 comply with fraud prevention investigation program guidelines, 267.5 or fails to meet the cost-effectiveness standards developed by 267.6 the commissioner. This result is contingent on the commissioner 267.7 providing written notice, including an offer of technical 267.8 assistance, within 30 days of the end of the third or subsequent 267.9 month of noncompliance. The county agency shall be required to 267.10 submit a corrective action plan to the commissioner within 30 267.11 days of receipt of a notice of noncompliance. Failure to submit 267.12 a corrective action plan or, continued deviation from standards 267.13 of more than ten percent after submission of a corrective action 267.14 plan, will result in denial of funding for each subsequent month 267.15during the grant year, or billing the county agency for fraud 267.16 prevention investigation (FPI) service provided by the 267.17 commissioner or reallocation of program grant funds, or 267.18 investigative resources, or both, to other counties. The denial 267.19 of funding shall apply to the general settlement received by the 267.20 county agency on a quarterly basis and shall not reduce the 267.21 grant amount applicable to the FPI project. 267.22 Sec. 13. Minnesota Statutes 1996, section 256.984, 267.23 subdivision 1, is amended to read: 267.24 Subdivision 1. [DECLARATION.] Every application for public 267.25 assistance under this chapter or chapters 256B, 256D, 256K, or 267.26 MFIP-S or food stamps under chapter 393 shall be in writing or 267.27 reduced to writing as prescribed by the state agency and shall 267.28 contain the following declaration which shall be signed by the 267.29 applicant: 267.30 "I declare under the penalties of perjury that this 267.31 application has been examined by me and to the best of my 267.32 knowledge is a true and correct statement of every material 267.33 point. I understand that a person convicted of perjury may 267.34 be sentenced to imprisonment of not more than five years or 267.35 to payment of a fine of not more than $10,000, or both." 267.36 Sec. 14. Minnesota Statutes 1996, section 256.986, is 268.1 amended to read: 268.2 256.986 [COUNTY COORDINATION OF FRAUD CONTROL ACTIVITIES.] 268.3 (a) The county agency shall prepare and submit to the 268.4 commissioner of human services byJanuary 1April 30 of each 268.5 state fiscal year a plan to coordinate county duties related to 268.6 the prevention, investigation, and prosecution of fraud in 268.7 public assistance programs.Plans may be submitted on a268.8voluntary basis prior to January 1, 1996.Each county must 268.9 submit its first annual plan prior toJanuary 1, 1997April 30, 268.10 1998. 268.11 (b) Within the limits of appropriations specifically made 268.12 available for this purpose, the commissioner may make grants to 268.13 counties submitting plans under paragraph (a) to implement 268.14 coordination activities. 268.15 Sec. 15. Minnesota Statutes 1996, section 256.9861, 268.16 subdivision 1, is amended to read: 268.17 Subdivision 1. [PROGRAM ESTABLISHED.] Within the limits of 268.18 available state and federal appropriations,and to the extent268.19required or authorized by applicable federal regulations,the 268.20 commissioner of human services shall make funding available to 268.21 county agencies forthe establishment of program integrity268.22reinvestment initiatives. The project shall initially be268.23limited to those county agencies participating in federally268.24funded optional fraud control programs as of January 1,268.251995fraud control efforts and require the maintenance of county 268.26 efforts and financial contribution that were in place during 268.27 fiscal year 1996. 268.28 Sec. 16. Minnesota Statutes 1996, section 256.9861, 268.29 subdivision 2, is amended to read: 268.30 Subd. 2. [COUNTY PROPOSALS.] Each included county shall 268.31 develop and submit annual funding, staffing, and operating grant 268.32 proposals to the commissioner no later than April 30 of each 268.33 year for the purpose of allocating federal and state funding and 268.34 appropriations.For the first operating year only, the proposal268.35shall be submitted no later than October 30.Each proposal 268.36 shall provide information on: 269.1 (1) the staffing and funding of the fraud investigation and 269.2 prosecution operations; 269.3 (2) job descriptions for agency fraud control staff; 269.4 (3) contracts covering outside investigative agencies; 269.5 (4) operational methods to integrate the use of fraud 269.6 prevention investigation techniques; and 269.7 (5) implementation and utilization of administrative 269.8 disqualification hearings and diversionsintoby the existing 269.9 county fraud control and prosecution procedures. 269.10 Sec. 17. Minnesota Statutes 1996, section 256.9861, 269.11 subdivision 4, is amended to read: 269.12 Subd. 4. [STANDARDS.] The commissioner shall, after 269.13 consultation with the involved counties, establish standards 269.14 governing the performance levels ofinvolvedcounty 269.15 investigative units based on grant agreementsnegotiatedwith 269.16 theinvolvedcounty agencies. The standards shall take into 269.17 consideration and may include investigative caseloads, grant 269.18 savings levels, the comparison of fraud prevention and 269.19 prosecution directed investigations, utilization levels of 269.20 administrative disqualification hearings, the timely reporting 269.21 and implementation of disqualifications, and the timeliness 269.22 of the submission of statistical reportsreceived from269.23prosecutors. 269.24 Sec. 18. Minnesota Statutes 1996, section 256.9861, 269.25 subdivision 5, is amended to read: 269.26 Subd. 5. [FUNDING.] (a)Grant funds are intended to help269.27offset the reduction in federal financial participation to 50269.28percent and may be apportioned to the participating counties269.29whenever feasible, and within the commissioner's discretion, to269.30achieve this goal.State funding shall be made available 269.31 contingent on counties submitting a plan that is approved by the 269.32 department of human services. Failure or delay in obtaining 269.33 that approval shall not, however, eliminate the obligation to 269.34 maintain fraud control efforts at theJanuary 1, 1995June 30, 269.35 1996, level.Additional counties may be added to the project to269.36the extent that funds are subsequently made available. Every270.1involved county must meet all federal requirements necessary to270.2obtain federal funding for its welfare fraud control and270.3prevention programs.County agency reimbursement shall be made 270.4 through the settlement provisions applicable to the AFDCand, 270.5 MFIP-S, food stamp and medical assistance programs. 270.6 (b) Should a county agency fail to comply with the 270.7 standards set, or fail to meet cost-effectiveness standards 270.8 developed by the commissioner forthree months during any grant270.9yearany three-month period, the commissioner shall deny 270.10 reimbursement or administrative costs, after allowing an 270.11 opportunity to establish compliance. 270.12 (c) Any denial of reimbursement under paragraph (b) is 270.13 contingent on the commissioner providing written notice, 270.14 including an offer of technical assistance, within 30 days of 270.15 the end of the third or subsequent months of noncompliance. The 270.16 county agency shall be required to submit a corrective action 270.17 plan to the commissioner within 30 days of receipt of a notice 270.18 of noncompliance. Failure to submit a corrective action plan or 270.19 continued deviation from standards of more than ten percent 270.20 after submission of corrective action plan, will result in 270.21 denial of funding for each such month during the grant year, or 270.22 billing of the county agency for program integrity reinvestment 270.23 project services provided by the commissioner or reallocation of 270.24 grant funds to other counties. The denial of funding shall 270.25 apply to the general settlement received by the county agency on 270.26 a quarterly basis and shall not reduce the grant amount 270.27 applicable to the program integrity reinvestment project. 270.28 Sec. 19. [256.9863] [ASSISTANCE TRANSACTION CARD; 270.29 PRESUMPTION OF RECEIPT OF BENEFITS.] 270.30 Any person in whose name an assistance transaction card has 270.31 been issued shall be presumed to have received the benefit of 270.32 all transactions involving that card. This presumption applies 270.33 in all situations unless the card in question has been reported 270.34 lost or stolen by the cardholder. This presumption may be 270.35 overcome by a preponderance of evidence indicating that the card 270.36 was neither used by nor with the consent of the cardholder. 271.1 Overcoming this presumption does not create any new or 271.2 additional payment obligation not otherwise established in law, 271.3 rule, or regulation. 271.4 Sec. 20. [256.9864] [REPORTS BY RECIPIENT.] 271.5 (a) An assistance unit with a recent work history or with 271.6 earned income shall report monthly to the county agency on 271.7 income received and other circumstances affecting eligibility or 271.8 assistance amounts. All other assistance units shall report on 271.9 income and other circumstances affecting eligibility and 271.10 assistance amounts as specified by the state agency. 271.11 (b) An assistance unit required to submit a report on the 271.12 form designated by the commissioner and within ten days of the 271.13 due date or the date of the significant change, whichever is 271.14 later, or otherwise report significant changes which would 271.15 affect eligibility or assistance amounts, is considered to have 271.16 continued its application for assistance effective the date the 271.17 required report is received by the county agency, if a complete 271.18 report is received within a calendar month in which assistance 271.19 was received, except that no assistance shall be paid for the 271.20 period beginning with the end of the month in which the report 271.21 was due and ending with the date the report was received by the 271.22 county agency. 271.23 Sec. 21. [256.9865] [RECOVERY OF OVERPAYMENTS AND ATM 271.24 ERRORS.] 271.25 Subdivision 1. [OBLIGATION TO RECOVER.] If an amount of 271.26 MFIP-S assistance is paid to a recipient in excess of the 271.27 payment due, it shall be recoverable by the county agency. This 271.28 recovery authority also extends to preexisting claims or newly 271.29 discovered claims established under the AFDC program in effect 271.30 on January 1, 1997. The agency shall give written notice to the 271.31 recipient of its intention to recover the overpayment. County 271.32 agency efforts and financial contributions shall be maintained 271.33 at the level in place during fiscal year 1996. 271.34 Subd. 2. [VOLUNTARY REPAYMENTS.] Overpayments may also be 271.35 voluntarily repaid, in part or in full, by the individual, in 271.36 addition to the aid reductions in subdivision 2, to include 272.1 further voluntary reductions in the grant level agreed to in 272.2 writing by the individual, until the total amount of the 272.3 overpayment is repaid. 272.4 Subd. 3. [CLOSED CASE RECOVERIES.] The county agency shall 272.5 make reasonable efforts to recover overpayments to persons no 272.6 longer on assistance according to standards adopted by rule by 272.7 the commissioner of human services. The county agency need not 272.8 attempt to recover overpayments of less than $35 paid to an 272.9 individual no longer on assistance unless the individual has 272.10 been convicted of fraud under section 256.98. 272.11 Sec. 22. [256.9866] [COMMUNITY SERVICE AS A COUNTY 272.12 OBLIGATION.] 272.13 Community service shall be an acceptable sentencing option 272.14 but shall not reduce the state or federal share of any amount to 272.15 be repaid or any subsequent recovery. Any reduction or offset 272.16 of any such amount ordered by a court shall be treated as 272.17 follows: 272.18 (1) any reduction in an overpayment amount, to include the 272.19 amount ordered as restitution, shall not reduce the underlying 272.20 amount established as an overpayment by the state or county 272.21 agency; 272.22 (2) total overpayments shall continue as a debt owed and 272.23 may be recovered by any civil or administrative means otherwise 272.24 available to the state or county agency; and 272.25 (3) any amount ordered to be offset against any overpayment 272.26 shall be deducted from the county share only of any recovery and 272.27 shall be based on the prevailing state minimum wage. To the 272.28 extent that any deduction is in fact made against any state or 272.29 county share, it shall be reimbursed from the county share of 272.30 payments to be made under section 256.025. 272.31 Sec. 23. Minnesota Statutes 1996, section 256D.09, 272.32 subdivision 6, is amended to read: 272.33 Subd. 6. [RECOVERY OF OVERPAYMENTS.] (a) If an amount of 272.34 general assistance or family general assistance is paid to a 272.35 recipient in excess of the payment due, it shall be recoverable 272.36 by the county agency. The agency shall give written notice to 273.1 the recipient of its intention to recover the overpayment. 273.2 (b) When an overpayment occurs, the county agency shall 273.3 recover the overpayment from a current recipient by reducing the 273.4 amount of aid payable to the assistance unit of which the 273.5 recipient is a member, for one or more monthly assistance 273.6 payments, until the overpayment is repaid. All county agencies 273.7 in the state shall reduce the assistance payment by three 273.8 percent of the assistance unit's standard of need in nonfraud 273.9 cases and ten percent where fraud has occurred, or the amount of 273.10 the monthly payment, whichever is less,for all overpayments. 273.11whether or not the overpayment is due solely to agency error.273.12The amount of this reduction is ten percent, if the overpayment273.13is due solely to having wrongfully obtained assistance, whether273.14based on:273.15(1) a court order;273.16(2) the finding of an administrative fraud disqualification273.17hearing or the waiver of such a hearing; or273.18(3) a confession or judgment containing an admission of an273.19intentional program violation.273.20 (c) In cases when there is both an overpayment and 273.21 underpayment, the county agency shall offset one against the 273.22 other in correcting the payment. 273.23 (d) Overpayments may also be voluntarily repaid, in part or 273.24 in full, by the individual, in addition to the aid reductions 273.25 provided in this subdivision, to include further voluntary 273.26 reductions in the grant level agreed to in writing by the 273.27 individual, until the total amount of the overpayment is repaid. 273.28 (e) The county agency shall make reasonable efforts to 273.29 recover overpayments to persons no longer on assistance under 273.30 standards adopted in rule by the commissioner of human 273.31 services. The county agency need not attempt to recover 273.32 overpayments of less than $35 paid to an individual no longer on 273.33 assistance if the individual does not receive assistance again 273.34 within three years, unless the individual has been convicted of 273.35 violating section 256.98. 273.36 Sec. 24. Minnesota Statutes 1996, section 270A.03, 274.1 subdivision 5, is amended to read: 274.2 Subd. 5. [DEBT.] "Debt" means a legal obligation of a 274.3 natural person to pay a fixed and certain amount of money, which 274.4 equals or exceeds $25 and which is due and payable to a claimant 274.5 agency. The term includes criminal fines imposed under section 274.6 609.10 or 609.125 and restitution. A debt may arise under a 274.7 contractual or statutory obligation, a court order, or other 274.8 legal obligation, but need not have been reduced to judgment. 274.9 A debtdoes not includeincludes any legal obligation of a 274.10 current recipient of assistance which is based on overpayment of 274.11 an assistance grant where that payment is based on a client 274.12 waiver or an administrative or judicial finding of an 274.13 intentional program violation, or where the debt is owed to a 274.14 program wherein the debtor is not a client at the time 274.15 notification is provided to initiate recovery under this chapter. 274.16 A debt does not include any legal obligation to pay a 274.17 claimant agency for medical care, including hospitalization if 274.18 the income of the debtor at the time when the medical care was 274.19 rendered does not exceed the following amount: 274.20 (1) for an unmarried debtor, an income of $6,400 or less; 274.21 (2) for a debtor with one dependent, an income of $8,200 or 274.22 less; 274.23 (3) for a debtor with two dependents, an income of $9,700 274.24 or less; 274.25 (4) for a debtor with three dependents, an income of 274.26 $11,000 or less; 274.27 (5) for a debtor with four dependents, an income of $11,600 274.28 or less; and 274.29 (6) for a debtor with five or more dependents, an income of 274.30 $12,100 or less. 274.31 The income amounts in this subdivision shall be adjusted 274.32 for inflation for debts incurred in calendar years 1991 and 274.33 thereafter. The dollar amount of each income level that applied 274.34 to debts incurred in the prior year shall be increased in the 274.35 same manner as provided in section 290.06, subdivision 2d, for 274.36 the expansion of the tax rate brackets. 275.1 Sec. 25. Minnesota Statutes 1996, section 375.21, 275.2 subdivision 1, is amended to read: 275.3 Subdivision 1. [PROCEDURE, CONDITIONS.] When required by 275.4 the dollar limitations of section 471.345, a contract for work 275.5 or labor, or to purchase furniture, fixtures, or other property, 275.6 or to construct or repair roads, bridges, or buildings shall be 275.7 made by a county board only after advertising for bids or 275.8 proposals in a qualified legal newspaper of the county. For the 275.9 purchase of property or for work and labor, two weeks published 275.10 notice that proposals will be received, stating the time and 275.11 place, shall be given. For the construction or repair of roads, 275.12 bridges, or buildings, three weeks published notice shall be 275.13 given. The notice shall state the time and place of awarding 275.14 the contract and contain a brief description of the work. Every 275.15 contract shall be awarded to the lowest responsible bidder and 275.16 duly executed in writing. The county may, by board resolution, 275.17 determine a wage rate that must be met or exceeded for a bidder 275.18 to be a responsible bidder for each contract let. The wage rate 275.19 may be calculated to consider a rate sufficient to allow the 275.20 bidder's employees to live without public assistance under 275.21 chapter 256J. The person to whom a contract is awarded for work 275.22 or labor or for the construction or repair of roads, bridges, or 275.23 buildings shall give a sufficient bond to the board for its 275.24 faithful performance. If no satisfactory bid is received, the 275.25 board may readvertise. 275.26 An advertised standard requirement price contract for 275.27 supplies or services established by competitive bids may contain 275.28 an escalation clause and may provide for a negotiated price 275.29 increase or decrease. The escalation or negotiated change shall 275.30 be based upon a demonstrable industrywide or regional increase 275.31 or decrease in the vendor's costs. 275.32 Every contract made without compliance with this section is 275.33 void. 275.34 In case of an emergency arising from the destruction or 275.35 impassability of roads or bridges by floods, rain or snow, or 275.36 other casualty, or from the breaking or damaging of any property 276.1 in the county, if the public health, safety, or welfare would 276.2 suffer by delay, contracts for purchase or repairs may be made 276.3 without advertising for bids, but in that case the action of the 276.4 board shall be recorded in its official proceedings. 276.5 Sec. 26. Minnesota Statutes 1996, section 388.23, 276.6 subdivision 1, is amended to read: 276.7 Subdivision 1. [AUTHORITY.] The county attorney, or any 276.8 deputy or assistant county attorney whom the county attorney 276.9 authorizes in writing, has the authority to subpoena and require 276.10 the production of any records of telephone companies, cellular 276.11 phone companies, paging companies, electric companies, gas 276.12 companies, water utilities, chemical suppliers, hotels and 276.13 motels, pawn shops, airlines, buses, taxis, and other entities 276.14 engaged in the business of transporting people, and freight 276.15 companies, warehousing companies, self-service storage 276.16 facilities, package delivery companies, and other entities 276.17 engaged in the businesses of transport, storage, or delivery, 276.18 and records of the existence of safe deposit box account numbers 276.19 and customer savings and checking account numbers maintained by 276.20 financial institutions and safe deposit companies, insurance 276.21 records relating to the monetary payment or settlement of 276.22 claims, and wage and employment records of an applicant or 276.23 recipient of public assistance who is the subject of a welfare 276.24 fraud investigation relating to eligibility information for 276.25 public assistance programs. Subpoenas may only be issued for 276.26 records that are relevant to an ongoing legitimate law 276.27 enforcement investigation. Administrative subpoenas may only be 276.28 issued in welfare fraud cases if there is probable cause to 276.29 believe a crime has been committed. This provision applies only 276.30 to the records of business entities and does not extend to 276.31 private individuals or their dwellings.Subpoenas may only be276.32served by peace officers as defined by section 626.84,276.33subdivision 1, paragraph (c).276.34 Sec. 27. Minnesota Statutes 1996, section 393.07, 276.35 subdivision 10, is amended to read: 276.36 Subd. 10. [FEDERAL FOOD STAMP PROGRAM AND THE MATERNAL AND 277.1 CHILD NUTRITION ACT.] (a) The local social services agency shall 277.2 establish and administer the food stamp programpursuant277.3 according to rules of the commissioner of human services, the 277.4 supervision of the commissioner as specified in section 256.01, 277.5 and all federal laws and regulations. The commissioner of human 277.6 services shall monitor food stamp program delivery on an ongoing 277.7 basis to ensure that each county complies with federal laws and 277.8 regulations. Program requirements to be monitored include, but 277.9 are not limited to, number of applications, number of approvals, 277.10 number of cases pending, length of time required to process each 277.11 application and deliver benefits, number of applicants eligible 277.12 for expedited issuance, length of time required to process and 277.13 deliver expedited issuance, number of terminations and reasons 277.14 for terminations, client profiles by age, household composition 277.15 and income level and sources, and the use of phone certification 277.16 and home visits. The commissioner shall determine the 277.17 county-by-county and statewide participation rate. 277.18 (b) On July 1 of each year, the commissioner of human 277.19 services shall determine a statewide and county-by-county food 277.20 stamp program participation rate. The commissioner may 277.21 designate a different agency to administer the food stamp 277.22 program in a county if the agency administering the program 277.23 fails to increase the food stamp program participation rate 277.24 among families or eligible individuals, or comply with all 277.25 federal laws and regulations governing the food stamp program. 277.26 The commissioner shall review agency performance annually to 277.27 determine compliance with this paragraph. 277.28 (c) A person who commits any of the following acts has 277.29 violated section 256.98 or 609.821, or both, and is subject to 277.30 both the criminal and civil penalties provided under those 277.31 sections: 277.32 (1) obtains or attempts to obtain, or aids or abets any 277.33 person to obtain by means of awillfully falsewillful statement 277.34 orrepresentationmisrepresentation, or intentional concealment 277.35 of a material fact, food stamps or vouchers issued according to 277.36 sections 145.891 to 145.897 to which the person is not entitled 278.1 or in an amount greater than that to which that person is 278.2 entitled or which specify nutritional supplements to which that 278.3 person is not entitled; or 278.4 (2) presents or causes to be presented, coupons or vouchers 278.5 issued according to sections 145.891 to 145.897 for payment or 278.6 redemption knowing them to have been received, transferred or 278.7 used in a manner contrary to existing state or federal law; or 278.8 (3) willfully uses, possesses, or transfers food stamp 278.9 couponsor, authorization to purchase cards or vouchers issued 278.10 according to sections 145.891 to 145.897 in any manner contrary 278.11 to existing state or federal law, rules, or regulations; or 278.12 (4) buys or sells food stamp coupons, authorization to 278.13 purchase cardsor, other assistance transaction devices, 278.14 vouchers issued according to sections 145.891 to 145.897, or any 278.15 food obtained through the redemption of vouchers issued 278.16 according to sections 145.891 to 145.897 for cash or 278.17 consideration other than eligible food. 278.18 (d) A peace officer or welfare fraud investigator may 278.19 confiscate food stamps, authorization to purchase cards, or 278.20 other assistance transaction devices found in the possession of 278.21 any person who is neither a recipient of the food stamp program 278.22 nor otherwise authorized to possess and use such materials. 278.23 Confiscated property shall be disposed of as the commissioner 278.24 may direct and consistent with state and federal food stamp 278.25 law. The confiscated property must be retained for a period of 278.26 not less than 30 days to allow any affected person to appeal the 278.27 confiscation under section 256.045. 278.28 (e) Food stamp overpayment claims which are due in whole or 278.29 in part to client error shall be established by the county 278.30 agency for a period of six years from the date of any resultant 278.31 overpayment. 278.32 (f) With regard to the federal tax revenue offset program 278.33 only, recovery incentives authorized by the federal food and 278.34 consumer service shall be retained at the rate of 50 percent by 278.35 the state agency and 50 percent by the certifying county agency. 278.36 (g) A peace officer, welfare fraud investigator, federal 279.1 law enforcement official, or the commissioner of health may 279.2 confiscate vouchers found in the possession of any person who is 279.3 neither issued vouchers under sections 145.891 to 145.897, nor 279.4 otherwise authorized to possess and use such vouchers. 279.5 Confiscated property shall be disposed of as the commissioner of 279.6 health may direct and consistent with state and federal law. 279.7 The confiscated property must be retained for a period of not 279.8 less than 30 days. 279.9 Sec. 28. [FUNDING AVAILABILITY.] 279.10 Unexpended funds appropriated for the provision of program 279.11 integrity activities for fiscal year 1998 will also be available 279.12 to the commissioner to fund fraud prevention and control 279.13 initiatives and do not cancel but are available to the 279.14 commissioner for these purposes for fiscal year 1999. 279.15 Unexpended funds may be transferred between the fraud prevention 279.16 investigation program and fraud control programs to promote the 279.17 provisions of sections 256.983 and 256.9861. 279.18 Sec. 29. [UNDOCUMENTED PERSONS NOTIFICATION.] 279.19 County agencies in consultation with the department of 279.20 human services shall provide notification to undocumented 279.21 persons regarding the release of personal data and develop 279.22 protocols regarding the release or sharing of data about 279.23 undocumented persons with the Immigration and Naturalization 279.24 Service (INS) according to sections 404, 434, and 411A of the 279.25 Personal Responsibility and Work Opportunity Reconciliation Act 279.26 of 1996. 279.27 Sec. 30. [EFFECTIVE DATE.] 279.28 Sections 1 to 28 are effective July 1, 1997.