as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to human services; changing provisions in the 1.3 Minnesota family investment program; indexing MFIP 1.4 earned income disregard; enhancing employment 1.5 services; proposing a performance management system 1.6 for MFIP; continuing Minnesota food assistance program 1.7 and the food portion of MFIP for legal noncitizens; 1.8 changing food stamp employment and training programs; 1.9 proposing a TANF administrative cap to counties; 1.10 amending Minnesota Statutes 1998, sections 256D.051, 1.11 subdivision 2a, and by adding a subdivision; 256D.053, 1.12 subdivision 1; 256D.06, subdivision 5; 256J.08, 1.13 subdivisions 11, 24, 65, 83, 86a, and by adding 1.14 subdivisions; 256J.11, subdivisions 2 and 3; 256J.12, 1.15 subdivisions 1a and 2; 256J.14; 256J.20, subdivision 1.16 3; 256J.21, subdivisions 2, 3, and 4; 256J.24, 1.17 subdivisions 2, 3, 7, 8, 9, and by adding a 1.18 subdivision; 256J.26, subdivision 1; 256J.30, 1.19 subdivisions 8 and 9; 256J.31, subdivisions 5 and 12; 1.20 256J.32, subdivisions 4 and 6; 256J.34, subdivisions 1.21 1, 3, and 4; 256J.35; 256J.37, subdivisions 2, 9, and 1.22 10; 256J.38, subdivision 4; 256J.39, subdivision 2; 1.23 256J.42, subdivisions 1 and 5; 256J.43, subdivision 4; 1.24 256J.45, subdivision 1; 256J.46, subdivisions 1, 2, 1.25 and 2a; 256J.48, subdivisions 2 and 3; 256J.50, 1.26 subdivision 1; 256J.515; 256J.52, subdivisions 1 and 1.27 4; 256J.55, subdivision 4; 256J.56; 256J.62, 1.28 subdivisions 1, 6, 7, 8, 9, and by adding a 1.29 subdivision; 256J.74, subdivision 2; and 256J.76, 1.30 subdivisions 1, 2, and 4; proposing coding for new law 1.31 in Minnesota Statutes, chapter 256J; repealing 1.32 Minnesota Statutes 1998, sections 256D.051, 1.33 subdivisions 6 and 19; 256D.053, subdivision 4; 1.34 256J.396; and 256J.62, subdivisions 2, 3, and 5. 1.35 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.36 Section 1. Minnesota Statutes 1998, section 256D.051, 1.37 subdivision 2a, is amended to read: 1.38 Subd. 2a. [DUTIES OF COMMISSIONER.] In addition to any 1.39 other duties imposed by law, the commissioner shall: 1.40 (1) based on this section and section 256D.052 and Code of 2.1 Federal Regulations, title 7, section 273.7, supervise the 2.2 administration of food stamp employment and training services to 2.3 county agencies; 2.4 (2) disburse money appropriated for food stamp employment 2.5 and training services to county agencies based upon the county's 2.6 costs as specified in section256D.06256D.051, subdivision 6c; 2.7 (3) accept and supervise the disbursement of any funds that 2.8 may be provided by the federal government or from other sources 2.9 for use in this state for food stamp employment and training 2.10 services; 2.11 (4) cooperate with other agencies including any agency of 2.12 the United States or of another state in all matters concerning 2.13 the powers and duties of the commissioner under this section and 2.14 section 256D.052; and 2.15 (5) in cooperation with the commissioner of economic 2.16 security, ensure that each component of an employment and 2.17 training program carried out under this section is delivered 2.18 through a statewide workforce development system, unless the 2.19 component is not available locally through such a system. 2.20 Sec. 2. Minnesota Statutes 1998, section 256D.051, is 2.21 amended by adding a subdivision to read: 2.22 Subd. 6c. [PROGRAM FUNDING.] Within the limits of 2.23 available resources, the commissioner shall reimburse the actual 2.24 costs of county agencies and their employment and training 2.25 service providers for the provision of food stamp employment and 2.26 training services, including participant support services, 2.27 direct program services, and program administrative activities. 2.28 No more than 15 percent of program funds may be used for 2.29 administrative activities. The county agency may expend county 2.30 funds in excess of the limits of this subdivision without state 2.31 reimbursement. 2.32 Program funds shall be allocated based on the county's 2.33 average number of food stamp cases as compared to the statewide 2.34 total number of such cases. The average number of cases shall 2.35 be based on counts of cases as of March 31, June 30, September 2.36 30, and December 31 of the previous calendar year. The 3.1 commissioner may reallocate unexpended money appropriated under 3.2 this section to those county agencies that demonstrate a need 3.3 for additional funds. 3.4 Sec. 3. Minnesota Statutes 1998, section 256D.053, 3.5 subdivision 1, is amended to read: 3.6 Subdivision 1. [PROGRAM ESTABLISHED.]For the period of3.7July 1, 1998, to June 30, 1999,The Minnesota food assistance 3.8 program is established to provide food assistance to legal 3.9 noncitizens residing in this state who are ineligible to 3.10 participate in the federal Food Stamp Program solely due to the 3.11 provisions of section 402 or 403 of Public Law Number 104-193, 3.12 as authorized by Title VII of the 1997 Emergency Supplemental 3.13 Appropriations Act, Public Law Number 105-18, and as amended by 3.14 Public Law Number 105-185. 3.15 Sec. 4. Minnesota Statutes 1998, section 256D.06, 3.16 subdivision 5, is amended to read: 3.17 Subd. 5. Any applicant, otherwise eligible for general 3.18 assistance and possibly eligible for maintenance benefits from 3.19 any other source shall (a) make application for those benefits 3.20 within 30 days of the general assistance application; and (b) 3.21 execute an interim assistance authorization agreement on a form 3.22 as directed by the commissioner. The commissioner shall review 3.23 a denial of an application for other maintenance benefits and 3.24 may require a recipient of general assistance to file an appeal 3.25 of the denial if appropriate. If found eligible for benefits 3.26 from other sources, and a payment received from another source 3.27 relates to the period during which general assistance was also 3.28 being received, the recipient shall be required to reimburse the 3.29 county agency for the interim assistance paid. Reimbursement 3.30 shall not exceed the amount of general assistance paid during 3.31 the time period to which the other maintenance benefits apply 3.32 and shall not exceed the state standard applicable to that time 3.33 period. The commissioner shall adopt rules authorizing county 3.34 agencies or other client representatives to retain from the 3.35 amount recovered under an interim assistance agreement 25 3.36 percent plus actual reasonable fees, costs, and disbursements of 4.1 appeals and litigation, of providing special assistance to the 4.2 recipient in processing the recipient's claim for maintenance 4.3 benefits from another source. The money retained under this 4.4 section shall be from the state share of the recovery. The 4.5 commissioner or the county agency may contract with qualified 4.6 persons to provide the special assistance. The rules adopted by 4.7 the commissioner shall include the methods by which county 4.8 agencies shall identify, refer, and assist recipients who may be 4.9 eligible for benefits under federal programs for the disabled. 4.10 This subdivision does not require repayment of per diem payments 4.11 made to shelters for battered women pursuant to section 256D.05, 4.12 subdivision 3. 4.13 Sec. 5. Minnesota Statutes 1998, section 256J.08, is 4.14 amended by adding a subdivision to read: 4.15 Subd. 4a. [APPLICABLE STANDARD.] "Applicable standard" 4.16 means the appropriate standard used to determine MFIP benefit 4.17 payments for the MFIP unit and applies to the: 4.18 (1) transitional standard, sections 256J.08, subdivision 4.19 85, and 256J.24, subdivision 5; 4.20 (2) family wage level standard, section 256J.24, 4.21 subdivision 7; 4.22 (3) shared household standard, section 256J.24, subdivision 4.23 9; and 4.24 (4) interstate payment standard, section 256J.43. 4.25 Sec. 6. Minnesota Statutes 1998, section 256J.08, 4.26 subdivision 11, is amended to read: 4.27 Subd. 11. [CAREGIVER.] "Caregiver" means a minor child's 4.28 natural or adoptive parent or parents and stepparent who live in 4.29 the home with the minor child. For purposes of determining 4.30 eligibility for this program, caregiver also means any of the 4.31 following individuals, if adults, who live with and provide care 4.32 and support to a minor child when the minor child's natural or 4.33 adoptive parent or parents or stepparents do not reside in the 4.34 same home: legal custodian or guardian, grandfather, 4.35 grandmother, brother, sister, half-brother, half-sister, 4.36 stepbrother, stepsister, uncle, aunt, first cousin or first 5.1 cousin once removed, nephew, niece, person of preceding 5.2 generation as denoted by prefixes of "great," "great-great," or 5.3 "great-great-great," or a spouse of any person named in the 5.4 above groups even after the marriage ends by death or divorce. 5.5 Sec. 7. Minnesota Statutes 1998, section 256J.08, 5.6 subdivision 24, is amended to read: 5.7 Subd. 24. [DISREGARD.] "Disregard" means earned income 5.8 that is not counted when determining initial eligibility or 5.9 ongoing eligibility and calculating the amount of the assistance 5.10 payment for participants. The commissioner shall determine the 5.11 amount of the disregard according to section 256J.24, 5.12 subdivision 10. 5.13 Sec. 8. Minnesota Statutes 1998, section 256J.08, is 5.14 amended by adding a subdivision to read: 5.15 Subd. 28a. [ENCUMBRANCE.] "Encumbrance" means a legal 5.16 claim against real or personal property that is payable upon the 5.17 sale of that property. 5.18 Sec. 9. Minnesota Statutes 1998, section 256J.08, 5.19 subdivision 65, is amended to read: 5.20 Subd. 65. [PARTICIPANT.] "Participant" means a person who 5.21 is currently receiving cash assistanceandor the food portion 5.22 available throughMFIP-SMFIP as funded by TANF and the food 5.23 stamp program. A person who fails to withdraw or access 5.24 electronically any portion of the person's cash and food 5.25 assistance payment by the end of the payment month, who makes a 5.26 written request for closure before the first of a payment month 5.27 and repays cash and food assistance electronically issued for 5.28 that payment month within that payment month, or who returns any 5.29 uncashed assistance check and food coupons and withdraws from 5.30 the program is not a participant. A person who withdraws a cash 5.31 or food assistance payment by electronic transfer or receives 5.32 and cashes a cash assistance check or food coupons and is 5.33 subsequently determined to be ineligible for assistance for that 5.34 period of time is a participant, regardless whether that 5.35 assistance is repaid. The term "participant" includes the 5.36 caregiver relative and the minor child whose needs are included 6.1 in the assistance payment. A person in an assistance unit who 6.2 does not receive a cash and food assistance payment because the 6.3 person has been suspended fromMFIP-S or because the person's6.4need falls below the $10 minimum payment levelMFIP is a 6.5 participant. 6.6 Sec. 10. Minnesota Statutes 1998, section 256J.08, 6.7 subdivision 83, is amended to read: 6.8 Subd. 83. [SIGNIFICANT CHANGE.] "Significant change" means 6.9 a decline in gross income of36 percentthe amount of the 6.10 disregard as defined in subdivision 24 or more from the income 6.11 used to determine the grant for the current month. 6.12 Sec. 11. Minnesota Statutes 1998, section 256J.08, 6.13 subdivision 86a, is amended to read: 6.14 Subd. 86a. [UNRELATED MEMBER.] "Unrelated member" means an 6.15 individual in the household who does not meet the definition of 6.16 an eligible caregiver, but does not include an individual who6.17provides child care to a child in the assistance unit. 6.18 Sec. 12. Minnesota Statutes 1998, section 256J.11, 6.19 subdivision 2, is amended to read: 6.20 Subd. 2. [NONCITIZENS; FOOD PORTION.](a) For the period6.21September 1, 1997, to October 31, 1997, noncitizens who do not6.22meet one of the exemptions in section 412 of the Personal6.23Responsibility and Work Opportunity Reconciliation Act of 1996,6.24but were residing in this state as of July 1, 1997, are eligible6.25for the 6/10 of the average value of food stamps for the same6.26family size and composition until MFIP-S is operative in the6.27noncitizen's county of financial responsibility and thereafter,6.28the 6/10 of the food portion of MFIP-S. However, federal food6.29stamp dollars cannot be used to fund the food portion of MFIP-S6.30benefits for an individual under this subdivision.6.31(b) For the period November 1, 1997, to June 30,6.321999,Notwithstanding Laws 1998, chapter 407, article 6, section 6.33 111, noncitizens who do not meet one of the exemptions in 6.34 section 412 of the Personal Responsibility and Work Opportunity 6.35 Reconciliation Act of 1996, as amended by Public Law Number 6.36 105-185, and are receiving cash assistance underthe AFDC,7.1family general assistance,MFIPor MFIP-S programsare eligible 7.2 forthe average value of food stamps for the same family size7.3and composition until MFIP-S is operative in the noncitizen's7.4county of financial responsibility and thereafter,the food 7.5 portion ofMFIP-SMFIP. However, federal food stamp dollars 7.6 cannot be used to fund the food portion ofMFIP-SMFIP benefits 7.7 for an individual under this subdivision. The assistance 7.8 provided under this subdivision, which is designated as a 7.9 supplement to replace lost benefits under the federal food stamp 7.10 program, must be disregarded as income in all programs that do 7.11 not count food stamps as income where the commissioner has the 7.12 authority to make the income disregard determination for the 7.13 program. 7.14(c) The commissioner shall submit a state plan to the7.15secretary of agriculture to allow the commissioner to purchase7.16federal Food Stamp Program benefits in an amount equal to the7.17MFIP-S food portion for each legal noncitizen receiving MFIP-S7.18assistance who is ineligible to participate in the federal Food7.19Stamp Program solely due to the provisions of section 402 or 4037.20of Public Law Number 104-193, as authorized by Title VII of the7.211997 Emergency Supplemental Appropriations Act, Public Law7.22Number 105-18. The commissioner shall enter into a contract as7.23necessary with the secretary to use the existing federal Food7.24Stamp Program benefits delivery system for the purposes of7.25administering the food portion of MFIP-S under this subdivision.7.26 Sec. 13. Minnesota Statutes 1998, section 256J.11, 7.27 subdivision 3, is amended to read: 7.28 Subd. 3. [BENEFITS FUNDED WITH STATE MONEY.] Legal adult 7.29 noncitizens who have resided in the country for four years or 7.30 more as a lawful permanent resident, whose benefits are funded 7.31 entirely with state money, and who are under 70 years of age, 7.32 must, as a condition of eligibility: 7.33 (1) be enrolled in a literacy class, English as a second 7.34 language class, or a citizen class; 7.35 (2) be applying for admission to a literacy class, English 7.36 as a second language class, and is on a waiting list; 8.1 (3) be in the process of applying for a waiver from the 8.2 Immigration and Naturalization Service of the English language 8.3 or civics requirements of the citizenship test; 8.4 (4) have submitted an application for citizenship to the 8.5 Immigration and Naturalization Service and is waiting for a 8.6 testing date or a subsequent swearing in ceremony; or 8.7 (5) have been denied citizenship due to a failure to pass 8.8 the test after two attempts or because of an inability to 8.9 understand the rights and responsibilities of becoming a United 8.10 States citizen, as documented by the Immigration and 8.11 Naturalization Service or the county. 8.12 If the county social service agency determines that a legal 8.13 noncitizen subject to the requirements of this subdivision will 8.14 require more than one year of English language training, then 8.15 the requirements of clause (1) or (2) shall be imposed after the 8.16 legal noncitizen has resided in the country for three years. 8.17 Individuals who reside in a facility licensed under chapter 8.18 144A, 144D, 245A, or 256I are exempt from the requirements of 8.19 this subdivision. 8.20 Sec. 14. Minnesota Statutes 1998, section 256J.12, 8.21 subdivision 1a, is amended to read: 8.22 Subd. 1a. [30-DAY RESIDENCY REQUIREMENT.] An assistance 8.23 unit is considered to have established residency in this state 8.24 only when a child or caregiver has resided in this state for at 8.25 least 30 consecutive days with the intention of making the 8.26 person's home here and not for any temporary purpose. The birth 8.27 of a child in Minnesota to a member of the assistance unit does 8.28 not automatically establish the residency in this state under 8.29 this subdivision of the other members of the assistance unit. 8.30 Time spent in a shelter for battered women shall count toward 8.31 satisfying the 30-day residency requirement. 8.32 Sec. 15. Minnesota Statutes 1998, section 256J.12, 8.33 subdivision 2, is amended to read: 8.34 Subd. 2. [EXCEPTIONS.] (a) A county shall waive the 30-day 8.35 residency requirement where unusual hardship would result from 8.36 denial of assistance. 9.1 (b) For purposes of this section, unusual hardship means an 9.2 assistance unit: 9.3 (1) is without alternative shelter; or 9.4 (2) is without available resources for food. 9.5 (c) For purposes of this subdivision, the following 9.6 definitions apply (1) "metropolitan statistical area" is as 9.7 defined by the U.S. Census Bureau; (2) "alternative shelter" 9.8 includes any shelter that is located within the metropolitan 9.9 statistical area containing the county and for which the family 9.10 is eligible, provided the assistance unit does not have to 9.11 travel more than 20 miles to reach the shelter and has access to 9.12 transportation to the shelter. Clause (2) does not apply to 9.13 counties in the Minneapolis-St. Paul metropolitan statistical 9.14 area. 9.15 (d) Applicants are considered to meet the residency 9.16 requirement under subdivision 1a if they once resided in 9.17 Minnesota and: 9.18 (1) joined the United States armed services, returned to 9.19 Minnesota within 30 days of leaving the armed services, and 9.20 intend to remain in Minnesota; or 9.21 (2) left to attend school in another state, paid 9.22 nonresident tuition or Minnesota tuition rates under a 9.23 reciprocity agreement, and returned to Minnesota within 30 days 9.24 of graduation with the intent to remain in Minnesota. 9.25 (e) The 30-day residence requirement is met when: 9.26 (1) a minor child or a minor caregiver moves from another 9.27 state to the residence of a relative caregiver; and 9.28(2) the minor caregiver applies for and receives family9.29cash assistance;9.30(3) the relative caregiver chooses not to be part of the9.31MFIP-S assistance unit; and9.32(4) the relative caregiver has resided in Minnesota for at9.33least 30 days prior to the date the assistance unit applies for9.34cash assistance.9.35(f) Ineligible mandatory unit members who have resided in9.36Minnesota for 12 months immediately before the unit's date of10.1application establish the other assistance unit members'10.2eligibility for the MFIP-S transitional standard.10.3 (2) the relative caregiver has resided in Minnesota for at 10.4 least 30 consecutive days and: 10.5 (i) the minor caregiver applies for and receives MFIP; or 10.6 (ii) the relative caregiver applies for assistance for the 10.7 minor child but does not choose to be a member of the MFIP 10.8 assistance unit. 10.9 Sec. 16. Minnesota Statutes 1998, section 256J.14, is 10.10 amended to read: 10.11 256J.14 [ELIGIBILITY FOR PARENTING OR PREGNANT MINORS.] 10.12 (a) The definitions in this paragraph only apply to this 10.13 subdivision. 10.14 (1) "Household of a parent, legal guardian, or other adult 10.15 relative" means the place of residence of: 10.16 (i) a natural or adoptive parent; 10.17 (ii) a legal guardian according to appointment or 10.18 acceptance under section 260.242, 525.615, or 525.6165, and 10.19 related laws; 10.20 (iii) a caregiver as defined in section 256J.08, 10.21 subdivision 11; or 10.22 (iv) an appropriate adult relative designated by a county 10.23 agency. 10.24 (2) "Adult-supervised supportive living arrangement" means 10.25 a private family setting which assumes responsibility for the 10.26 care and control of the minor parent and minor child, or other 10.27 living arrangement, not including a public institution, licensed 10.28 by the commissioner of human services which ensures that the 10.29 minor parent receives adult supervision and supportive services, 10.30 such as counseling, guidance, independent living skills 10.31 training, or supervision. 10.32 (b) A minor parent and the minor child who is in the care 10.33 of the minor parent must reside in the household of a parent, 10.34 legal guardian, other adult relative, or in an adult-supervised 10.35 supportive living arrangement in order to receive MFIP-S unless: 10.36 (1) the minor parent has no living parent, other adult 11.1 relative, or legal guardian whose whereabouts is known; 11.2 (2) no living parent, other adult relative, or legal 11.3 guardian of the minor parent allows the minor parent to live in 11.4 the parent's, other adult relative's, or legal guardian's home; 11.5 (3) the minor parent lived apart from the minor parent's 11.6 own parent or legal guardian for a period of at least one year 11.7 before either the birth of the minor child or the minor parent's 11.8 application for MFIP-S; 11.9 (4) the physical or emotional health or safety of the minor 11.10 parent or minor child would be jeopardized if the minor parent 11.11 and the minor child resided in the same residence with the minor 11.12 parent's parent, other adult relative, or legal guardian; or 11.13 (5) an adult supervised supportive living arrangement is 11.14 not available for the minor parent and child in the county in 11.15 which the minor parent and child currently reside. If an adult 11.16 supervised supportive living arrangement becomes available 11.17 within the county, the minor parent and child must reside in 11.18 that arrangement. 11.19 (c) Minor applicants must be informed orally and in writing 11.20 about the eligibility requirements and their rights and 11.21 obligations under the MFIP-S program. The county must advise 11.22 the minor of the possible exemptions and specifically ask 11.23 whether one or more of these exemptions is applicable. If the 11.24 minor alleges one or more of these exemptions, then the county 11.25 must assist the minor in obtaining the necessary verifications 11.26 to determine whether or not these exemptions apply. 11.27 (d) If the county worker has reason to suspect that the 11.28 physical or emotional health or safety of the minor parent or 11.29 minor child would be jeopardized if they resided with the minor 11.30 parent's parent, other adult relative, or legal guardian, then 11.31 the county worker must make a referral to child protective 11.32 services to determine if paragraph (b), clause (4), applies. A 11.33 new determination by the county worker is not necessary if one 11.34 has been made within the last six months, unless there has been 11.35 a significant change in circumstances which justifies a new 11.36 referral and determination. 12.1 (e) If a minor parent is not living with a parent, legal 12.2 guardian, or other adult relative due to paragraph (b), clause 12.3 (1), (2), or (4), the minor parent must reside, when possible, 12.4 in a living arrangement that meets the standards of paragraph 12.5 (a), clause (2). 12.6 (f)When a minor parent and minor child live with a parent,12.7other adult relative, legal guardian, or in an adult-supervised12.8supportiveRegardless of living arrangement,MFIP-SMFIP must be 12.9 paid, when possible, in the form of a protective payment on 12.10 behalf of the minor parent and minor child according to section 12.11 256J.39, subdivisions 2 to 4. 12.12 Sec. 17. Minnesota Statutes 1998, section 256J.20, 12.13 subdivision 3, is amended to read: 12.14 Subd. 3. [OTHER PROPERTY LIMITATIONS.] To be eligible for 12.15MFIP-SMFIP, the equity value of all nonexcluded real and 12.16 personal property of the assistance unit must not exceed $2,000 12.17 for applicants and $5,000 for ongoing participants. The value 12.18 of assets in clauses (1) to (20) must be excluded when 12.19 determining the equity value of real and personal property: 12.20 (1) a licensed vehicle up to a loan value of less than or 12.21 equal to $7,500. The county agency shall apply any excess loan 12.22 value as if it were equity value to the asset limit described in 12.23 this section. If the assistance unit owns more than one 12.24 licensed vehicle, the county agency shall determine the vehicle 12.25 with the highest loan value and count only the loan value over 12.26 $7,500, excluding: (i) the value of one vehicle per physically 12.27 disabled person when the vehicle is needed to transport the 12.28 disabled unit member; this exclusion does not apply to mentally 12.29 disabled people; (ii) the value of special equipment for a 12.30 handicapped member of the assistance unit; and (iii) any vehicle 12.31 used for long-distance travel, other than daily commuting, for 12.32 the employment of a unit member. 12.33 The county agency shall count the loan value of all other 12.34 vehicles and apply this amount as if it were equity value to the 12.35 asset limit described in this section.The value of special12.36equipment for a handicapped member of the assistance unit is13.1excluded.To establish the loan value of vehicles, a county 13.2 agency must use the N.A.D.A. Official Used Car Guide, Midwest 13.3 Edition, for newer model cars. When a vehicle is not listed in 13.4 the guidebook, or when the applicant or participant disputes the 13.5 loan value listed in the guidebook as unreasonable given the 13.6 condition of the particular vehicle, the county agency may 13.7 require the applicant or participant document the loan value by 13.8 securing a written statement from a motor vehicle dealer 13.9 licensed under section 168.27, stating the amount that the 13.10 dealer would pay to purchase the vehicle. The county agency 13.11 shall reimburse the applicant or participant for the cost of a 13.12 written statement that documents a lower loan value; 13.13 (2) the value of life insurance policies for members of the 13.14 assistance unit; 13.15 (3) one burial plot per member of an assistance unit; 13.16 (4) the value of personal property needed to produce earned 13.17 income, including tools, implements, farm animals, inventory, 13.18 business loans, business checking and savings accounts used at 13.19 least annually and used exclusively for the operation of a 13.20 self-employment business, and any motor vehicles if at least 50 13.21 percent of the vehicle's use is to produce income and if the 13.22 vehicles are essential for the self-employment business; 13.23 (5) the value of personal property not otherwise specified 13.24 which is commonly used by household members in day-to-day living 13.25 such as clothing, necessary household furniture, equipment, and 13.26 other basic maintenance items essential for daily living; 13.27 (6) the value of real and personal property owned by a 13.28 recipient of Supplemental Security Income or Minnesota 13.29 supplemental aid; 13.30 (7) the value of corrective payments, but only for the 13.31 month in which the payment is received and for the following 13.32 month; 13.33 (8) a mobile home or other vehicle used by an applicant or 13.34 participant as the applicant's or participant's home; 13.35 (9) money in a separate escrow account that is needed to 13.36 pay real estate taxes or insurance and that is used for this 14.1 purpose; 14.2 (10) money held in escrow to cover employee FICA, employee 14.3 tax withholding, sales tax withholding, employee worker 14.4 compensation, business insurance, property rental, property 14.5 taxes, and other costs that are paid at least annually, but less 14.6 often than monthly; 14.7 (11) monthly assistance, emergency assistance, and 14.8 diversionary payments for the current month's needs; 14.9 (12) the value of school loans, grants, or scholarships for 14.10 the period they are intended to cover; 14.11 (13) payments listed in section 256J.21, subdivision 2, 14.12 clause (9), which are held in escrow for a period not to exceed 14.13 three months to replace or repair personal or real property; 14.14 (14) income received in a budget month through the end of 14.15 the payment month; 14.16 (15) savings from earned income of a minor child or a minor 14.17 parent that are set aside in a separate account designated 14.18 specifically for future education or employment costs; 14.19 (16) the federal earned income credit, Minnesota working 14.20 family credit, state and federal income tax refunds, state 14.21 homeowners and renters credits under chapter 290A, property tax 14.22 rebatesunder Laws 1997, chapter 231, article 1, section 16,and 14.23 other federal or state tax rebates in the month received and the 14.24 following month; 14.25 (17) payments excluded under federal law as long as those 14.26 payments are held in a separate account from any nonexcluded 14.27 funds; 14.28 (18) money received by a participant of the corps to career 14.29 program under section 84.0887, subdivision 2, paragraph (b), as 14.30 a postservice benefit under the federal Americorps Act; 14.31 (19) the assets of children ineligible to receiveMFIP-S14.32 MFIP benefits because foster care or adoption assistance 14.33 payments are made on their behalf; and 14.34 (20) the assets of persons whose income is excluded under 14.35 section 256J.21, subdivision 2, clause (43). 14.36 Sec. 18. Minnesota Statutes 1998, section 256J.21, 15.1 subdivision 2, is amended to read: 15.2 Subd. 2. [INCOME EXCLUSIONS.] (a) The following must be 15.3 excluded in determining a family's available income: 15.4 (1) payments for basic care, difficulty of care, and 15.5 clothing allowances received for providing family foster care to 15.6 children or adults under Minnesota Rules, parts 9545.0010 to 15.7 9545.0260 and 9555.5050 to 9555.6265, and payments received and 15.8 used for care and maintenance of a third-party beneficiary who 15.9 is not a household member; 15.10 (2) reimbursements for employment training received through 15.11 the Job Training Partnership Act, United States Code, title 29, 15.12 chapter 19, sections 1501 to 1792b; 15.13 (3) reimbursement for out-of-pocket expenses incurred while 15.14 performing volunteer services, jury duty,oremployment, or 15.15 informal carpooling arrangements directly related to employment; 15.16 (4) all educational assistance, except the county agency 15.17 must count graduate student teaching assistantships, 15.18 fellowships, and other similar paid work as earned income and, 15.19 after allowing deductions for any unmet and necessary 15.20 educational expenses, shall count scholarships or grants awarded 15.21 to graduate students that do not require teaching or research as 15.22 unearned income; 15.23 (5) loans, regardless of purpose, from public or private 15.24 lending institutions, governmental lending institutions, or 15.25 governmental agencies; 15.26 (6) loans from private individuals, regardless of purpose, 15.27 provided an applicant or participant documents that the lender 15.28 expects repayment; 15.29 (7)(i) state income tax refunds; and 15.30 (ii) federal income tax refunds; 15.31 (8)(i) federal earned income credits; 15.32 (ii) Minnesota working family credits; 15.33 (iii) state homeowners and renters credits under chapter 15.34 290A; and 15.35 (iv)property tax rebates under Laws 1997, chapter 231,15.36article 1, section 16; and16.1(v) otherfederal or state tax rebates; 16.2 (9) funds received for reimbursement, replacement, or 16.3 rebate of personal or real property when these payments are made 16.4 by public agencies, awarded by a court, solicited through public 16.5 appeal, or made as a grant by a federal agency, state or local 16.6 government, or disaster assistance organizations, subsequent to 16.7 a presidential declaration of disaster; 16.8 (10) the portion of an insurance settlement that is used to 16.9 pay medical, funeral, and burial expenses, or to repair or 16.10 replace insured property; 16.11 (11) reimbursements for medical expenses that cannot be 16.12 paid by medical assistance; 16.13 (12) payments by a vocational rehabilitation program 16.14 administered by the state under chapter 268A, except those 16.15 payments that are for current living expenses; 16.16 (13) in-kind income, including any payments directly made 16.17 by a third party to a provider of goods and services; 16.18 (14) assistance payments to correct underpayments, but only 16.19 for the month in which the payment is received; 16.20 (15) emergency assistance payments; 16.21 (16) funeral and cemetery payments as provided by section 16.22 256.935; 16.23 (17) nonrecurring cash gifts of $30 or less, not exceeding 16.24 $30 per participant in a calendar month; 16.25 (18) any form of energy assistance payment made through 16.26 Public Law Number 97-35, Low-Income Home Energy Assistance Act 16.27 of 1981, payments made directly to energy providers by other 16.28 public and private agencies, and any form of credit or rebate 16.29 payment issued by energy providers; 16.30 (19) Supplemental Security Income, including retroactive 16.31 payments; 16.32 (20) Minnesota supplemental aid, including retroactive 16.33 payments; 16.34 (21) proceeds from the sale of real or personal property; 16.35 (22) adoption assistance payments under section 259.67; 16.36 (23) state-funded family subsidy program payments made 17.1 under section 252.32 to help families care for children with 17.2 mental retardation or related conditions; 17.3 (24) interest payments and dividends from property that is 17.4 not excluded from and that does not exceed the asset limit; 17.5 (25) rent rebates; 17.6 (26) income earned by a minor caregiver or minor child, 17.7 birth through age 6 or a minor child, who is at least a 17.8 half-time student in an approved elementary or secondary 17.9 education program; 17.10 (27) income earned by a caregiver under age 20 who is at 17.11 least a half-time student in an approved secondary education 17.12 program; 17.13 (28)MFIP-SMFIP child care payments under section 119B.05; 17.14 (29) all other payments made throughMFIP-SMFIP to support 17.15 a caregiver's pursuit of greater self-support; 17.16 (30) income a participant receives related to shared living 17.17 expenses; 17.18 (31) reverse mortgages; 17.19 (32) benefits provided by the Child Nutrition Act of 1966, 17.20 United States Code, title 42, chapter 13A, sections 1771 to 17.21 1790; 17.22 (33) benefits provided by the women, infants, and children 17.23 (WIC) nutrition program, United States Code, title 42, chapter 17.24 13A, section 1786; 17.25 (34) benefits from the National School Lunch Act, United 17.26 States Code, title 42, chapter 13, sections 1751 to 1769e; 17.27 (35) relocation assistance for displaced persons under the 17.28 Uniform Relocation Assistance and Real Property Acquisition 17.29 Policies Act of 1970, United States Code, title 42, chapter 61, 17.30 subchapter II, section 4636, or the National Housing Act, United 17.31 States Code, title 12, chapter 13, sections 1701 to 1750jj; 17.32 (36) benefits from the Trade Act of 1974, United States 17.33 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 17.34 (37) war reparations payments to Japanese Americans and 17.35 Aleuts under United States Code, title 50, sections 1989 to 17.36 1989d; 18.1 (38) payments to veterans or their dependents as a result 18.2 of legal settlements regarding Agent Orange or other chemical 18.3 exposure under Public Law Number 101-239, section 10405, 18.4 paragraph (a)(2)(E); 18.5 (39) income that is otherwise specifically excluded from 18.6the MFIP-S programMFIP consideration in federal law, state law, 18.7 or federal regulation; 18.8 (40) security and utility deposit refunds; 18.9 (41) American Indian tribal land settlements excluded under 18.10 Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 18.11 Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 18.12 reservations and payments to members of the White Earth Band, 18.13 under United States Code, title 25, chapter 9, section 331, and 18.14 chapter 16, section 1407; 18.15 (42) all income of the minor parent'sparentparents and 18.16stepparentstepparents when determining the grant for the minor 18.17 parent in households that include a minor parent living witha18.18parentparents orstepparentstepparents onMFIP-SMFIP with 18.19 other children; and 18.20 (43) income of the minor parent'sparentparents and 18.21stepparentstepparents equal to 200 percent of the federal 18.22 poverty guideline for a family size not including the minor 18.23 parent and the minor parent's child in households that include a 18.24 minor parent living witha parentparents orstepparent18.25 stepparents not onMFIP-SMFIP when determining the grant for 18.26 the minor parent. The remainder of income is deemed as 18.27 specified in section 256J.37, subdivision 1b; 18.28 (44) payments made to children eligible for relative 18.29 custody assistance under section 257.85; 18.30 (45) vendor payments for goods and services made on behalf 18.31 of a client unless the client has the option of receiving the 18.32 payment in cash; and 18.33 (46) the principal portion of a contract for deed payment. 18.34 Sec. 19. Minnesota Statutes 1998, section 256J.21, 18.35 subdivision 3, is amended to read: 18.36 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 19.1 determine initial eligibility by considering all earned and 19.2 unearned income that is not excluded under subdivision 2. To be 19.3 eligible forMFIP-SMFIP, the assistance unit's countable income 19.4 minus the disregards in paragraphs (a) and (b) must be below the 19.5transitionalapplicable standard of assistanceaccording to19.6section 256J.24for that size assistance unit. 19.7 (a) The initial eligibility determination must disregard 19.8 the following items: 19.9 (1) the employment disregard is 18 percent of the gross 19.10 earned income whether or not the member is working full time or 19.11 part time; 19.12 (2) dependent care costs must be deducted from gross earned 19.13 income for the actual amount paid for dependent care up to a 19.14 maximum of $200 per month for each child less than two years of 19.15 age, and $175 per month for each child two years of age and 19.16 older under this chapter and chapter 119B; 19.17 (3) all payments made according to a court order for 19.18 spousal support or the support of children not living in the 19.19 assistance unit's household shall be disregarded from the income 19.20 of the person with the legal obligation to pay support, provided 19.21 that, if there has been a change in the financial circumstances 19.22 of the person with the legal obligation to pay support since the 19.23 support order was entered, the person with the legal obligation 19.24 to pay support has petitioned for a modification of the support 19.25 order; and 19.26 (4) an allocation for the unmet need of an ineligible 19.27 spouse or an ineligible child under the age of 21 for whom the 19.28 caregiver is financially responsible and who lives with the 19.29 caregiver according to section 256J.36. 19.30 (b) Notwithstanding paragraph (a), when determining initial 19.31 eligibility for applicant units when at least one member has 19.32 receivedAFDC, family general assistance, MFIP, MFIP-R,work 19.33 first,orMFIP-SMFIP in this state within four months of the 19.34 most recent application forMFIP-SMFIP, apply theemployment19.35 disregard as defined in section 256J.08, subdivision 24, for all 19.36 unit membersis 36 percent of the gross earned income. 20.1 After initial eligibility is established, the assistance 20.2 payment calculation is based on the monthly income test. 20.3 Sec. 20. Minnesota Statutes 1998, section 256J.21, 20.4 subdivision 4, is amended to read: 20.5 Subd. 4. [MONTHLY INCOME TEST AND DETERMINATION OF 20.6 ASSISTANCE PAYMENT.] The county agency shall determine ongoing 20.7 eligibility and the assistance payment amount according to the 20.8 monthly income test. To be eligible forMFIP-SMFIP, the result 20.9 of the computations in paragraphs (a) to (e) must be at least $1. 20.10 (a) Applya 36 percentan income disregard as defined in 20.11 section 256J.08, subdivision 24, to gross earnings and subtract 20.12 this amount from the family wage level. If the difference is 20.13 equal to or greater than thetransitionalapplicable MFIP 20.14 standard, the assistance payment is equal to thetransitional20.15 applicable MFIP standard. If the difference is less than 20.16 thetransitionalapplicable MFIP standard, the assistance 20.17 payment is equal to the difference. The employment disregard in 20.18 this paragraph must be deducted every month there is earned 20.19 income. 20.20 (b) All payments made according to a court order for 20.21 spousal support or the support of children not living in the 20.22 assistance unit's household must be disregarded from the income 20.23 of the person with the legal obligation to pay support, provided 20.24 that, if there has been a change in the financial circumstances 20.25 of the person with the legal obligation to pay support since the 20.26 support order was entered, the person with the legal obligation 20.27 to pay support has petitioned for a modification of the court 20.28 order. 20.29 (c) An allocation for the unmet need of an ineligible 20.30 spouse or an ineligible child under the age of 21 for whom the 20.31 caregiver is financially responsible and who lives with the 20.32 caregiver must be made according to section 256J.36. 20.33 (d) Subtract unearned income dollar for dollar from the 20.34 transitional standard to determine the assistance payment amount. 20.35 (e) When income is both earned and unearned, the amount of 20.36 the assistance payment must be determined by first treating 21.1 gross earned income as specified in paragraph (a). After 21.2 determining the amount of the assistance payment under paragraph 21.3 (a), unearned income must be subtracted from that amount dollar 21.4 for dollar to determine the assistance payment amount. 21.5 (f) When the monthly income is greater than the 21.6transitional or family wage levelapplicable MFIP standard after 21.7applicabledeductions and the income will only exceed the 21.8 standard for one month, the county agency must suspend the 21.9 assistance payment for the payment month. 21.10 Sec. 21. Minnesota Statutes 1998, section 256J.24, 21.11 subdivision 2, is amended to read: 21.12 Subd. 2. [MANDATORY ASSISTANCE UNIT COMPOSITION.] Except 21.13 for minor caregivers and their children who must be in a 21.14 separate assistance unit from the other persons in the 21.15 household, when the following individuals live together, they 21.16 must be included in the assistance unit: 21.17 (1) a minor child, including a pregnant minor; 21.18 (2) the minor child's minor siblings, minor half-siblings, 21.19 and minor step-siblings; 21.20 (3) the minor child's natural parents, adoptive parents, 21.21 and stepparents; and 21.22 (4) the spouse of a pregnant woman. 21.23 Sec. 22. Minnesota Statutes 1998, section 256J.24, 21.24 subdivision 3, is amended to read: 21.25 Subd. 3. [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 21.26 ASSISTANCE UNIT.] (a) The following individuals who are part of 21.27 the assistance unit determined under subdivision 2 are 21.28 ineligible to receiveMFIP-SMFIP: 21.29 (1) individuals receiving Supplemental Security Income or 21.30 Minnesota supplemental aid; 21.31 (2)individuals living at home while performing21.32court-imposed, unpaid community service work due to a criminal21.33conviction;21.34(3)individuals disqualified from the food stamp program or 21.35MFIP-SMFIP, until the disqualification ends; 21.36(4)(3) children on whose behalf federal, state or local 22.1 foster care payments are made, except as provided in sections 22.2 256J.13, subdivision 2, and 256J.74, subdivision 2; and 22.3(5)(4) children receiving ongoing monthly adoption 22.4 assistance payments under section 259.67. 22.5 (b) The exclusion of a person under this subdivision does 22.6 not alter the mandatory assistance unit composition. 22.7 Sec. 23. Minnesota Statutes 1998, section 256J.24, 22.8 subdivision 7, is amended to read: 22.9 Subd. 7. [FAMILY WAGE LEVEL STANDARD.] The family wage 22.10 level standard is 110 percent of the transitional standard under 22.11 subdivision 5 and is the standard used when there is earned 22.12 income in the assistance unit. As specified in section 256J.21, 22.13 earned income is subtracted from the family wage level to 22.14 determine the amount of the assistance payment. Not including 22.15 the family wage level standard, assistance payments may not 22.16 exceed theshared household standard or the22.17transitionalapplicable standard for the assistance unit,22.18whichever is less. 22.19 Sec. 24. Minnesota Statutes 1998, section 256J.24, 22.20 subdivision 8, is amended to read: 22.21 Subd. 8. [ASSISTANCE PAID TO ELIGIBLE ASSISTANCE UNITS.] 22.22 Except for assistance units with nonparental caregivers, 22.23 payments for shelter up to the amount of the cash portion 22.24 ofMFIP-SMFIP benefits for which the assistance unit is 22.25 eligible shall be vendor paid for as many months as the 22.26 assistance unit is eligible or six months, whichever comes 22.27 first. The residual amount of the grant after vendor payment, 22.28 if any, must be paid to theMFIP-SMFIP caregiver. 22.29 Sec. 25. Minnesota Statutes 1998, section 256J.24, 22.30 subdivision 9, is amended to read: 22.31 Subd. 9. [SHARED HOUSEHOLD STANDARD;MFIP-SMFIP.] (a) 22.32 Except as prohibited in paragraph (b), the county agency must 22.33 use the shared household standard when the household includes 22.34 one or more unrelated members, as that term is defined in 22.35 section 256J.08, subdivision 86a. The county agency must use 22.36 the shared household standard, unless a member of the assistance 23.1 unit is a victim of domestic violence and has an approved safety 23.2 plan, regardless of the number of unrelated members in the 23.3 household. 23.4 (b) The county agency must not use the shared household 23.5 standard when all unrelated members are one of the following: 23.6 (1) a recipient of public assistance benefits, including 23.7 food stamps, Supplemental Security Income, adoption assistance, 23.8 relative custody assistance, or foster care payments; 23.9 (2) a roomer or boarder, or a person to whom the assistance 23.10 unit is paying room or board; 23.11 (3) a minor; 23.12 (4) a minor caregiver living with the minor caregiver's 23.13 parents or in an approved supervised living arrangement;or23.14 (5) a caregiver who is not the parent of the minor child in 23.15 the assistance unit; or 23.16 (6) an individual who provides child care to a child in the 23.17 MFIP assistance unit. 23.18 (c) The shared household standard must be discontinued if 23.19 it is not approved by the United States Department of 23.20 Agriculture under theMFIP-SMFIP waiver. 23.21 Sec. 26. Minnesota Statutes 1998, section 256J.24, is 23.22 amended by adding a subdivision to read: 23.23 Subd. 10. [MFIP EXIT LEVEL.] In state fiscal years 2000 23.24 and 2001, the commissioner shall adjust the MFIP earned income 23.25 disregard to ensure that participants do not lose eligibility 23.26 for MFIP until their income reaches at least 120 percent of the 23.27 federal poverty guidelines in effect in October of each fiscal 23.28 year. Adjustments to the disregard shall be based on a 23.29 household size of three and shall be implemented at the same 23.30 time as the October food stamp cost-of-living adjustment is 23.31 reflected in the food portion of MFIP transitional standard as 23.32 required under subdivision 5a. 23.33 Sec. 27. Minnesota Statutes 1998, section 256J.26, 23.34 subdivision 1, is amended to read: 23.35 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) 23.36 Applicants or participants who have been convicted of a drug 24.1 offense committed after July 1, 1997, may, if otherwise 24.2 eligible, receiveAFDC or MFIP-SMFIP benefits subject to the 24.3 following conditions: 24.4 (1) Benefits for the entire assistance unit must be paid in 24.5 vendor form for shelter and utilities during any time the 24.6 applicant is part of the assistance unit. 24.7 (2) The convicted applicant or participant shall be subject 24.8 to random drug testing as a condition of continued eligibility 24.9 and following any positive test for an illegal controlled 24.10 substance is subject to the following sanctions: 24.11 (i) for failing a drug test the first time, the 24.12 participant's grant shall be reduced by ten percent of the 24.13MFIP-S transitionalapplicable MFIP standard,the shared24.14household standard, or the interstate transitional standard,24.15whichever is applicableprior to making vendor payments for 24.16 shelter and utility costs; or 24.17 (ii) for failing a drug test two or more times, the 24.18 residual amount of the participant's grant after making vendor 24.19 payments for shelter and utility costs, if any, must be reduced 24.20 by an amount equal to 30 percent of theMFIP-S transitional24.21standard, the shared household standard, or the interstate24.22transitional standard, whichever isapplicable MFIP standard. 24.23 (3) A participant who fails an initial drug test and is 24.24 under a sanction due to other MFIP program requirements is 24.25 subject to the sanction in clause (2)(ii). 24.26 (b) Applicants requesting only food stamps or participants 24.27 receiving only food stamps, who have been convicted of a drug 24.28 offense that occurred after July 1, 1997, may, if otherwise 24.29 eligible, receive food stamps if the convicted applicant or 24.30 participant is subject to random drug testing as a condition of 24.31 continued eligibility. Following a positive test for an illegal 24.32 controlled substance, the applicant is subject to the following 24.33 sanctions: 24.34 (1) for failing a drug test the first time, food stamps 24.35 shall be reduced by ten percent of the applicable food stamp 24.36 allotment; and 25.1 (2) for failing a drug test two or more times, food stamps 25.2 shall be reduced by an amount equal to 30 percent of the 25.3 applicable food stamp allotment. 25.4 (c) For the purposes of this subdivision, "drug offense" 25.5 meansa convictionan offense that occurred after July 1, 1997, 25.6 of sections 152.021 to 152.025, 152.0261, or 152.096. Drug 25.7 offense also means a conviction in another jurisdiction of the 25.8 possession, use, or distribution of a controlled substance, or 25.9 conspiracy to commit any of these offenses, if the offense 25.10 occurred after July 1, 1997, and the conviction is a felony 25.11 offense in that jurisdiction, or in the case of New Jersey, a 25.12 high misdemeanor. 25.13 Sec. 28. Minnesota Statutes 1998, section 256J.30, 25.14 subdivision 8, is amended to read: 25.15 Subd. 8. [LATEMFIP-SMFIP HOUSEHOLD REPORT FORMS.] 25.16 Paragraphs (a) to (d) apply to the reporting requirements in 25.17 subdivision 7. 25.18 (a) Whena caregiver submitsthe county agency receives an 25.19 incompleteMFIP-SMFIP household report formbefore the last25.20working day of the month on which a ten-dayprior to the 25.21 issuance of a notice of terminationcan be issued, the county 25.22 agency must return the incomplete form on or before theten-day25.23 date the noticedeadlineis issued orany previously sent25.24ten-daythe notice of termination is invalid. 25.25 (b)When a complete MFIP-S household report form is not25.26received by a county agency before the last ten days of the25.27month in which the form is due, the county agency must sendA 25.28 notice of proposed termination of assistance will be sent to the 25.29 assistance unit if a complete MFIP household report form is not 25.30 received by a county agency before the notice date, which must 25.31 be at least ten days before the end of the month. When a 25.32 caregiver submits an incomplete form on or after the date a 25.33 notice of proposed termination has been sent, the termination is 25.34 valid unless the caregiver submits a complete form before the 25.35 end of the month. 25.36 (c) An assistance unit required to submit anMFIP-SMFIP 26.1 household report form is considered to have continued its 26.2 application for assistance if a completeMFIP-SMFIP household 26.3 report form is received within a calendar month after the month 26.4 in whichassistance was receivedthe form was due and assistance 26.5 shall be paid for the period beginning with the first day ofthe26.6month in which the report was duethat calendar month. 26.7 (d) A county agency must allow good cause exemptions from 26.8 the reporting requirements under subdivisions 5 and 6 when any 26.9 of the following factors cause a caregiver to fail to provide 26.10 the county agency with a completedMFIP-SMFIP household report 26.11 form before the end of the month in which the form is due: 26.12 (1) an employer delays completion of employment 26.13 verification; 26.14 (2) a county agency does not help a caregiver complete the 26.15MFIP-SMFIP household report form when the caregiver asks for 26.16 help; 26.17 (3) a caregiver does not receive anMFIP-SMFIP household 26.18 report form due to mistake on the part of the department or the 26.19 county agency or due to a reported change in address; 26.20 (4) a caregiver is ill, or physically or mentally 26.21 incapacitated; or 26.22 (5) some other circumstance occurs that a caregiver could 26.23 not avoid with reasonable care which prevents the caregiver from 26.24 providing a completedMFIP-SMFIP household report form before 26.25 the end of the month in which the form is due. 26.26 Sec. 29. Minnesota Statutes 1998, section 256J.30, 26.27 subdivision 9, is amended to read: 26.28 Subd. 9. [CHANGES THAT MUST BE REPORTED.] A caregiver must 26.29 report the changes or anticipated changes specified in clauses 26.30 (1) to (16) within ten days of the date they occur,within ten26.31days of the date the caregiver learns that the change will26.32occur,at the time of the periodic recertification of 26.33 eligibility under section 256J.32, subdivision 6, or within 26.34 eight calendar days of a reporting period as in subdivision 5 or 26.35 6, whichever occurs first. A caregiver must report other 26.36 changes at the time of the periodic recertification of 27.1 eligibility under section 256J.32, subdivision 6, or at the end 27.2 of a reporting period under subdivision 5 or 6, as applicable. 27.3 A caregiver must make these reports in writing to the county 27.4 agency. When a county agency could have reduced or terminated 27.5 assistance for one or more payment months if a delay in 27.6 reporting a change specified under clauses (1) to (16) had not 27.7 occurred, the county agency must determine whether a timely 27.8 notice under section 256J.31, subdivision 4, could have been 27.9 issued on the day that the change occurred. When a timely 27.10 notice could have been issued, each month's overpayment 27.11 subsequent to that notice must be considered a client error 27.12 overpayment under section 256J.38. Calculation of overpayments 27.13 for late reporting under clause (17) is specified in section 27.14 256J.09, subdivision 9. Changes in circumstances which must be 27.15 reported within ten days must also be reported on theMFIP-S27.16 MFIP household report form for the reporting period in which 27.17 those changes occurred. Within ten days, a caregiver must 27.18 report: 27.19 (1) a change in initial employment; 27.20 (2) a change in initial receipt of unearned income; 27.21 (3) a recurring change in unearned income; 27.22 (4) a nonrecurring change of unearned income that exceeds 27.23 $30; 27.24 (5) the receipt of a lump sum; 27.25 (6) an increase in assets that may cause the assistance 27.26 unit to exceed asset limits; 27.27 (7) a change in the physical or mental status of an 27.28 incapacitated member of the assistance unit if the physical or 27.29 mental status is the basis of exemption from anMFIP-S work and27.30trainingMFIP employment services program; 27.31 (8) a change in employment status; 27.32 (9)a change in household composition, including births,27.33returns to and departures from the home of assistance unit27.34members and financially responsible persons, or a change in the27.35custody of a minor childinformation to discontinue an exception 27.36 under 256J.24, subdivision 9, if questionable; 28.1 (10) a change in health insurance coverage; 28.2 (11) the marriage or divorce of an assistance unit member; 28.3 (12) the death of a parent, minor child, or financially 28.4 responsible person; 28.5 (13) a change in address or living quarters of the 28.6 assistance unit; 28.7 (14) the sale, purchase, or other transfer of property; 28.8 (15) a change in school attendance of a custodial parent or 28.9 an employed child;and28.10 (16) filing a lawsuit, a workers' compensation claim, or a 28.11 monetary claim against a third party; and 28.12 (17) a change in household composition, including births, 28.13 returns to and departures from the home of assistance unit 28.14 members and financially responsible persons, or a change in the 28.15 custody of a minor child. 28.16 Sec. 30. Minnesota Statutes 1998, section 256J.31, 28.17 subdivision 5, is amended to read: 28.18 Subd. 5. [MAILING OF NOTICE.] The notice of adverse action 28.19 shall be issued according to paragraphs (a) to(c)(d). 28.20 (a) Acounty agency shall mail anotice of adverse action 28.21 must be mailed at least ten days before the effective date of 28.22 the adverse action, except as provided in paragraphs (b)and (c)28.23 to (d). 28.24 (b)A county agency must mail a notice of adverse action at28.25least five days before the effective date of the adverse action28.26when the county agency has factual information that requires an28.27action to reduce, suspend, or terminate assistance based on28.28probable fraud.28.29(c) A county agency shall mailA notice of adverse action 28.30before or on the effective date of the adverse actionmust be 28.31 mailed no later than four working days before the end of the 28.32 month when the county agency: 28.33 (1)receives the caregiver's signed monthly MFIP-S28.34household report form that includes information that requires28.35payment reduction, suspension, or termination;28.36(2)is informed of the death ofa participantthe only 29.1 caregiver orthepayee in an assistance unit; 29.2(3)(2) receives a signed statement from the caregiver that 29.3 assistance is no longer wanted; 29.4(4) receives a signed statement from the caregiver that29.5provides information that requires the termination or reduction29.6of assistance(3) has factual information to reduce, suspend, or 29.7 terminate assistance based on the failure to timely report 29.8 changes; 29.9(5) verifies that a member of the assistance unit is absent29.10from the home and does not meet temporary absence provisions in29.11section 256J.13;29.12(6)(4) verifies that a member of the assistance unit has 29.13 entered a regional treatment center or a licensed residential 29.14 facility for medical or psychological treatment or 29.15 rehabilitation; 29.16(7)(5) verifies that a member of an assistance unit has 29.17 been removed from the home as a result of a judicial 29.18 determination or placed in foster care, and the provisions of 29.19 section 256J.13, subdivision 2, paragraph (c), clause (2), do 29.20 not apply; 29.21(8) verifies that a member of an assistance unit has been29.22approved to receive assistance by another state;or 29.23(9)(6) cannot locate a caregiver. 29.24 (c) A notice of adverse action must be mailed for a payment 29.25 month when the caregiver makes a written request for closure 29.26 before the first of that payment month. 29.27 (d) A notice of adverse action must be mailed before the 29.28 effective date of the adverse action when the county agency 29.29 receives the caregiver's signed and completed MFIP household 29.30 report form or recertification form that includes information 29.31 that requires payment reduction, suspension, or termination. 29.32 Sec. 31. Minnesota Statutes 1998, section 256J.31, 29.33 subdivision 12, is amended to read: 29.34 Subd. 12. [RIGHT TO DISCONTINUE CASH ASSISTANCE.] A 29.35 participant who is not in vendor payment status may discontinue 29.36 receipt of the cash assistance portion ofMFIP-SMFIP assistance 30.1 grant and retain eligibility for child care assistance under 30.2 section 119B.05 and for medical assistance under sections 30.3 256B.055, subdivision 3a, and 256B.0635. For the months a 30.4 participant chooses to discontinue the receipt of the cash 30.5 portion of the MFIP grant, the assistance unit accrues months of 30.6 eligibility to be applied toward eligibility for child care 30.7 under section 119B.05 and for medical assistance under sections 30.8 256B.055, subdivision 3a, and 256B.0635. 30.9 Sec. 32. Minnesota Statutes 1998, section 256J.32, 30.10 subdivision 4, is amended to read: 30.11 Subd. 4. [FACTORS TO BE VERIFIED.] The county agency shall 30.12 verify the following at application: 30.13 (1) identity of adults; 30.14 (2) presence of the minor child in the home, if 30.15 questionable; 30.16 (3) relationship of a minor child to caregivers in the 30.17 assistance unit; 30.18 (4) age, if necessary to determineMFIP-SMFIP eligibility; 30.19 (5) immigration status; 30.20 (6) social security number according to the requirements of 30.21 section 256J.30, subdivision 12; 30.22 (7) income; 30.23 (8) self-employment expenses used as a deduction; 30.24 (9) source and purpose of deposits and withdrawals from 30.25 business accounts; 30.26 (10) spousal support and child support payments made to 30.27 persons outside the household; 30.28 (11) real property; 30.29 (12) vehicles; 30.30 (13) checking and savings accounts; 30.31 (14) savings certificates, savings bonds, stocks, and 30.32 individual retirement accounts; 30.33 (15) pregnancy, if related to eligibility; 30.34 (16) inconsistent information, if related to eligibility; 30.35 (17) medical insurance; 30.36 (18)anticipated graduation date of an 18-year-old;31.1(19)burial accounts; 31.2(20)(19) school attendance, if related to eligibility; 31.3(21)(20) residence; 31.4(22)(21) a claim of domestic violence if used as a basis 31.5 for a deferral or exemption from the 60-month time limit in 31.6 section 256J.42 or employment and training services requirements 31.7 in section 256J.56;and31.8(23)(22) disability if used as an exemption from 31.9 employment and training services requirements under section 31.10 256J.56; and 31.11 (23) information needed to establish an exception under 31.12 section 256J.24, subdivision 9. 31.13 Sec. 33. Minnesota Statutes 1998, section 256J.32, 31.14 subdivision 6, is amended to read: 31.15 Subd. 6. [RECERTIFICATION.] The county agency shall 31.16 recertify eligibility in an annual face-to-face interview with 31.17 the participant and verify the following: 31.18 (1) presence of the minor child in the home, if 31.19 questionable; 31.20 (2) income, unless excluded, including self-employment 31.21 expenses used as a deduction or deposits or withdrawals from 31.22 business accounts; 31.23 (3) assets when the value is within $200 of the asset 31.24 limit;and31.25 (4) information to establish an exception under section 31.26 256J.24, subdivision 9, if questionable; and 31.27 (5) inconsistent information, if related to eligibility. 31.28 Sec. 34. Minnesota Statutes 1998, section 256J.34, 31.29 subdivision 1, is amended to read: 31.30 Subdivision 1. [PROSPECTIVE BUDGETING.] A county agency 31.31 must use prospective budgeting to calculate the assistance 31.32 payment amount for the first two months for an applicant who has 31.33 not received assistance in this state for at least one payment 31.34 month preceding the first month of payment under a current 31.35 application. Notwithstanding subdivision 3, paragraph (a), 31.36 clause (2), a county agency must use prospective budgeting for 32.1 the first two months for a person who applies to be added to an 32.2 assistance unit. Prospective budgeting is not subject to 32.3 overpayments or underpayments unless fraud is determined under 32.4 section 256.98. 32.5 (a) The county agency must apply the income received or 32.6 anticipated in the first month ofMFIP-SMFIP eligibility 32.7 against the need of the first month. The county agency must 32.8 apply the income received or anticipated in the second month 32.9 against the need of the second month. 32.10 (b) When the assistance payment for any part of the first 32.11 two months is based on anticipated income, the county agency 32.12 must base the initial assistance payment amount on the 32.13 information available at the time the initial assistance payment 32.14 is made. 32.15 (c) The county agency must determine the assistance payment 32.16 amount for the first two months ofMFIP-SMFIP eligibility by 32.17 budgeting both recurring and nonrecurring income for those two 32.18 months. 32.19 (d) The county agency must budget the child support income 32.20 received or anticipated to be received by an assistance unit to 32.21 determine the assistance payment amount from the month of 32.22 application through the date in whichMFIP-SMFIP eligibility is 32.23 determined and assistance is authorized. Child support income 32.24 which has been budgeted to determine the assistance payment in 32.25 the initial two months is considered nonrecurring income. An 32.26 assistance unit must forward any payment of child support to the 32.27 child support enforcement unit of the county agency following 32.28 the date in which assistance is authorized. 32.29 Sec. 35. Minnesota Statutes 1998, section 256J.34, 32.30 subdivision 3, is amended to read: 32.31 Subd. 3. [ADDITIONAL USES OF RETROSPECTIVE BUDGETING.] 32.32 Notwithstanding subdivision 1, the county agency must use 32.33 retrospective budgeting to calculate the monthly assistance 32.34 payment amount for the first two months under paragraphs (a) and 32.35 (b). 32.36 (a) The county agency must use retrospective budgeting to 33.1 determine the amount of the assistance payment in the first two 33.2 months ofMFIP-SMFIP eligibility: 33.3 (1) when an assistance unit applies for assistance for the 33.4 same month for which assistance has been interrupted, the 33.5 interruption in eligibility is less than one payment month, the 33.6 assistance payment for the preceding month was issued in this 33.7 state, and the assistance payment for the immediately preceding 33.8 month was determined retrospectively; or 33.9 (2) when a person applies in order to be added to an 33.10 assistance unit, that assistance unit has received assistance in 33.11 this state for at least the two preceding months, and that 33.12 person has been living with and has been financially responsible 33.13 for one or more members of that assistance unit for at least the 33.14 two preceding months. 33.15 (b) Except as provided in clauses (1) to (4), the county 33.16 agency must use retrospective budgeting and apply income 33.17 received in the budget month by an assistance unit and by a 33.18 financially responsible household member who is not included in 33.19 the assistance unit against theappropriate transitional or33.20family wage levelapplicable MFIP standard to determine the 33.21 assistance payment to be issued for the payment month. 33.22 (1) When a source of income ends prior to the third payment 33.23 month, that income is not considered in calculating the 33.24 assistance payment for that month. When a source of income ends 33.25 prior to the fourth payment month, that income is not considered 33.26 when determining the assistance payment for that month. 33.27 (2) When a member of an assistance unit or a financially 33.28 responsible household member leaves the household of the 33.29 assistance unit, the income of that departed household member is 33.30 not budgeted retrospectively for any full payment month in which 33.31 that household member does not live with that household and is 33.32 not included in the assistance unit. 33.33 (3) When an individual is removed from an assistance unit 33.34 because the individual is no longer a minor child, the income of 33.35 that individual is not budgeted retrospectively for payment 33.36 months in which that individual is not a member of the 34.1 assistance unit, except that income of an ineligible child in 34.2 the household must continue to be budgeted retrospectively 34.3 against the child's needs when the parent or parents of that 34.4 child request allocation of their income against any unmet needs 34.5 of that ineligible child. 34.6 (4) When a person ceases to have financial responsibility 34.7 for one or more members of an assistance unit, the income of 34.8 that person is not budgeted retrospectively for the payment 34.9 months which follow the month in which financial responsibility 34.10 ends. 34.11 Sec. 36. Minnesota Statutes 1998, section 256J.34, 34.12 subdivision 4, is amended to read: 34.13 Subd. 4. [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 34.14 agency must recalculate the assistance payment when an 34.15 assistance unit experiences a significant change, as defined in 34.16 section 256J.08, resulting in a reduction in the gross income 34.17 received in the payment month from the gross income received in 34.18 the budget month. The county agency must issue a supplemental 34.19 assistance payment based on the county agency's best estimate of 34.20 the assistance unit's income and circumstances for the payment 34.21 month.Budget adjustmentsSupplemental assistance payments that 34.22 result from significant changes are limited to two in a 12-month 34.23 period regardless of the reason for the change.Budget34.24adjustmentsNotwithstanding any other statute or rule of law, 34.25 supplementary assistance payments shall not be made when the 34.26 significant change in income is the result of receipt of a lump 34.27 sum, receipt of an extra paycheck, business fluctuation in 34.28 self-employment income, or an assistance unit member's 34.29 participation in a strike or other labor action. Supplementary 34.30 assistance payments due to a significant change in the amount of 34.31 direct support received must not be made after the date the 34.32 assistance unit is required to forward support to the child 34.33 support enforcement unit under subdivision 1, paragraph (d). 34.34 Sec. 37. Minnesota Statutes 1998, section 256J.35, is 34.35 amended to read: 34.36 256J.35 [AMOUNT OF ASSISTANCE PAYMENT.] 35.1 Except as provided in paragraphs (a) to(d)(c), the amount 35.2 of an assistance payment is equal to the difference between the 35.3 transitional standard, shared household standard, interstate 35.4 payment standard, or the Minnesota family wage level in section 35.5 256J.24, whichever is less, and countable income. 35.6 (a) WhenMFIP-SMFIP eligibility exists for the month of 35.7 application, the amount of the assistance payment for the month 35.8 of application must be prorated from the date of application or 35.9 the date all other eligibility factors are met for that 35.10 applicant, whichever is later. This provision applies when an 35.11 applicant loses at least one day ofMFIP-SMFIP eligibility. 35.12 (b)MFIP-SMFIP overpayments to an assistance unit must be 35.13 recouped according to section 256J.38, subdivision 4. 35.14 (c) An initial assistance payment must not be made to an 35.15 applicant who is not eligible on the date payment is made. 35.16(d) An individual whose needs have been otherwise provided35.17for in another state, in whole or in part by county, state, or35.18federal dollars during a month, is ineligible to receive MFIP-S35.19for the month.35.20 Sec. 38. Minnesota Statutes 1998, section 256J.37, 35.21 subdivision 2, is amended to read: 35.22 Subd. 2. [DEEMED INCOME AND ASSETS OF SPONSOR OF 35.23 NONCITIZENS.] 35.24 (a) Prior to December 19, 1997, income and assets of a 35.25 sponsor and the sponsor's spouse which exceed $1,500, is deemed 35.26 to be the income and assets of a non-213A immigrant for a period 35.27 of three years. To determine the amount of income to deem to a 35.28 non-213A immigrant, allow the following disregards: 35.29 (1) the lesser of 20 percent of the total combined gross 35.30 income of the sponsor and the sponsor's spouse or $175; 35.31 (2) an amount for the needs for the sponsor and sponsor's 35.32 spouse and any other individual living in the same household as 35.33 the sponsor who are claimed by the sponsor as dependents for 35.34 purposes of determining the sponsor's federal personal income 35.35 tax liability but whose needs are not taken into account in 35.36 determining MFIP eligibility. This amount is equal to the 36.1 difference between what the MFIP transitional standard is if an 36.2 individual is included in the assistance unit and what the MFIP 36.3 transitional standard is when an individual is not included in 36.4 the assistance unit; 36.5 (3) any amounts paid by the sponsor or the sponsor's spouse 36.6 to individuals not living in the household who are claimed by 36.7 the sponsor or sponsor's spouse for purposes of determining the 36.8 sponsor's federal income tax liability; and 36.9 (4) any payments of spousal maintenance or child support to 36.10 individuals not living in the household. 36.11 (b) If a person is a sponsor of two or more non-213A 36.12 immigrants who are living in the same home, the income and 36.13 assets of the sponsor and sponsor's spouse which is considered 36.14 under paragraph (a) shall be divided by the number of sponsored 36.15 immigrants, and the result shall be deemed to each sponsored 36.16 immigrant. 36.17 (c) A non-213A immigrant whose sponsor is or was a public 36.18 or private agency shall be ineligible for assistance under MFIP 36.19 during a period of three years after the immigrant enters the 36.20 United States, unless it is determined that the sponsoring 36.21 agency either no longer exists or has become unable to meet the 36.22 immigrant's needs. 36.23 (d) On or after December 19, 1997, if a noncitizen applies 36.24 for or receivesMFIP-SMFIP, the county must deem the income and 36.25 assets of the noncitizen's sponsor and the sponsor's spouse who 36.26 have signed an affidavit of support for the noncitizen as 36.27 specified in Public Law Number 104-193, title IV, sections 421 36.28 and 422, the Personal Responsibility and Work Opportunity 36.29 Reconciliation Act of 1996. The income of a sponsor and the 36.30 sponsor's spouse is considered unearned income of the 36.31 noncitizen. The assets of a sponsor and the sponsor's spouse 36.32 are considered available assets of the noncitizen. 36.33 Sec. 39. Minnesota Statutes 1998, section 256J.37, 36.34 subdivision 9, is amended to read: 36.35 Subd. 9. [UNEARNED INCOME.](a)The county agency must 36.36 apply unearned income to thetransitionalapplicable MFIP 37.1 standard. When determining the amount of unearned income, the 37.2 county agency must deduct the costs necessary to secure payments 37.3 of unearned income. These costs include legal fees, medical 37.4 fees, and mandatory deductions such as federal and state income 37.5 taxes. 37.6 (b) Effective July 1, 1999, the county agency shall count 37.7 $100 of the value of public and assisted rental subsidies 37.8 provided through the Department of Housing and Urban Development 37.9 (HUD) as unearned income. The full amount of the subsidy must 37.10 be counted as unearned income when the subsidy is less than $100. 37.11 Sec. 40. Minnesota Statutes 1998, section 256J.37, 37.12 subdivision 10, is amended to read: 37.13 Subd. 10. [TREATMENT OF LUMP SUMS.] (a) The county agency 37.14 must treat lump-sum payments as earned or unearned income. If 37.15 the lump-sum payment is included in the category of income 37.16 identified in subdivision 9, it must be treated as unearned 37.17 income. A lump sum is counted as income in the month received 37.18 and budgeted either prospectively or retrospectively depending 37.19 on the budget cycle at the time of receipt. When an individual 37.20 receives a lump-sum payment, that lump sum must be combined with 37.21 all other earned and unearned income received in the same budget 37.22 month, and it must be applied according to paragraphs (a) to 37.23 (c). A lump sum may not be carried over into subsequent months. 37.24 Any funds that remain in the third month after the month of 37.25 receipt are counted in the asset limit. 37.26 (b) For a lump sum received by an applicant during the 37.27 first two months, prospective budgeting is used to determine the 37.28 payment and the lump sum must be combined with other earned or 37.29 unearned income received and budgeted in that prospective month. 37.30 (c) For a lump sum received by a participant after the 37.31 first two months ofMFIP-SMFIP eligibility, the lump sum must 37.32 be combined with other income received in that budget month, and 37.33 the combined amount must be applied retrospectively against the 37.34 applicable payment month. 37.35 (d) When a lump sum, combined with other income under 37.36 paragraphs (b) and (c), is less than thetransitionalapplicable 38.1 standard for theapplicableappropriate payment month, the 38.2 assistance payment must be reduced according to the amount of 38.3 the countable income. When the countable income is greater than 38.4 thetransitionalapplicable standardor the family wage38.5standard, the assistance payment must be suspended for the 38.6 payment month. 38.7 Sec. 41. Minnesota Statutes 1998, section 256J.38, 38.8 subdivision 4, is amended to read: 38.9 Subd. 4. [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 38.10 participant may voluntarily repay, in part or in full, an 38.11 overpayment even if assistance is reduced under this 38.12 subdivision, until the total amount of the overpayment is 38.13 repaid. When an overpayment occurs due to fraud, the county 38.14 agency must recover ten percent of thetransitionalapplicable 38.15 standard or the amount of the monthly assistance payment, 38.16 whichever is less. When a nonfraud overpayment occurs, the 38.17 county agency must recover three percent of thetransitional38.18 applicable standard or the amount of the monthly assistance 38.19 payment, whichever is less. 38.20 Sec. 42. Minnesota Statutes 1998, section 256J.39, 38.21 subdivision 2, is amended to read: 38.22 Subd. 2. [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 38.23 paying assistance directly to a participant may be used when: 38.24 (1) a county agency determines that a vendor payment is the 38.25 most effective way to resolve an emergency situation pertaining 38.26 to basic needs; 38.27 (2) a caregiver makes a written request to the county 38.28 agency asking that part or all of the assistance payment be 38.29 issued by protective or vendor payments for shelter and utility 38.30 service only. The caregiver may withdraw this request in 38.31 writing at any time; 38.32 (3) the vendor payment is part of a sanction under section 38.33 256J.46; 38.34 (4) the vendor payment is required under section 256J.24, 38.35 subdivision 8, 256J.26, or 256J.43; 38.36 (5) protective payments are required for minor parents 39.1 under section 256J.14; or 39.2 (6) a caregiver has exhibited a continuing pattern of 39.3 mismanaging funds as determined by the county agency. 39.4 The director of a county agency must approve a proposal for 39.5 protective or vendor payment for money mismanagement when there 39.6 is a pattern of mismanagement under clause (6). During the time 39.7 a protective or vendor payment is being made, the county agency 39.8 must provide services designed to alleviate the causes of the 39.9 mismanagement. 39.10 The continuing need for and method of payment must be 39.11 documented and reviewed every 12 months. The director of a 39.12 county agency must approve the continuation of protective or 39.13 vendor payments. When it appears that the need for protective 39.14 or vendor payments will continue or is likely to continue beyond 39.15 two years because the county agency's efforts have not resulted 39.16 in sufficiently improved use of assistance on behalf of the 39.17 minor child, judicial appointment of a legal guardian or other 39.18 legal representative must be sought by the county agency. 39.19 Sec. 43. Minnesota Statutes 1998, section 256J.42, 39.20 subdivision 1, is amended to read: 39.21 Subdivision 1. [TIME LIMIT.] (a) Except for the exemptions 39.22 in this sectionand in section 256J.11, subdivision 2, an 39.23 assistance unit in which any adult caregiver has received 60 39.24 months of cash assistance funded in whole or in part by the TANF 39.25 block grant in this or any other state or United States 39.26 territory,MFIP-SMFIP, AFDC, or family general assistance, 39.27 funded in whole or in part by state appropriations, is 39.28 ineligible to receiveMFIP-SMFIP. Any cash assistance funded 39.29 with TANF dollars in this or any other state or United States 39.30 territory, orMFIP-SMFIP assistance funded in whole or in part 39.31 by state appropriations, that was received by the unit on or 39.32 after the date TANF was implemented, including any assistance 39.33 received in states or United States territories of prior 39.34 residence, counts toward the 60-month limitation. The 60-month 39.35 limit applies to a minor who is the head of a household or who 39.36 is married to the head of a household except under subdivision 40.1 5. The 60-month time period does not need to be consecutive 40.2 months for this provision to apply. 40.3 (b) The months before July 1998 in which individuals 40.4receivereceived assistance as part of the field trials as an 40.5 MFIP, MFIP-R, or MFIP or MFIP-R comparison group familyunder40.6sections 256.031 to 256.0361 or sections 256.047 to 256.048are 40.7 not included in the 60-month time limit. 40.8 Sec. 44. Minnesota Statutes 1998, section 256J.42, 40.9 subdivision 5, is amended to read: 40.10 Subd. 5. [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 40.11 assistance received by an assistance unit does not count toward 40.12 the 60-month limit on assistance during a month in which the 40.13 caregiver is in the category in section 256J.56, paragraph (a), 40.14 clause (1).The exemption applies for the period of time the40.15caregiver belongs to one of the categories specified in this40.16subdivision.40.17 (b) From July 1, 1997, until the dateMFIP-SMFIP is 40.18 operative in the caregiver's county of financial responsibility, 40.19 any cash assistance received by a caregiver who is complying 40.20 with sections 256.73, subdivision 5a, and 256.736, if 40.21 applicable, does not count toward the 60-month limit on 40.22 assistance. Thereafter, any cash assistance received by a minor 40.23 caregiver who is complying with the requirements of sections 40.24 256J.14 and 256J.54, if applicable, does not count towards the 40.25 60-month limit on assistance. 40.26 (c) Any diversionary assistance or emergency assistance 40.27 received does not count toward the 60-month limit. 40.28 (d) Any cash assistance received by an 18- or 19-year-old 40.29 caregiver who is complying with the requirements of section 40.30 256J.54 does not count toward the 60-month limit. 40.31 Sec. 45. Minnesota Statutes 1998, section 256J.43, 40.32 subdivision 4, is amended to read: 40.33 Subd. 4. [INELIGIBLE MANDATORY UNIT MEMBERS.] Ineligible 40.34 mandatory unit members who have resided in Minnesota for 12 40.35 months immediately before the unit's date of application 40.36 establish the other assistance unit members' eligibility for the 41.1MFIP-S transitionalapplicable standard. 41.2 Sec. 46. Minnesota Statutes 1998, section 256J.45, 41.3 subdivision 1, is amended to read: 41.4 Subdivision 1. [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 41.5 county agency must provide eachMFIP-SMFIP caregiver who is not 41.6 exempt under section 256J.56, paragraph (a), clause (6) or (8), 41.7 with a face-to-face orientation.The caregiver must attend the41.8orientation.The county agency must informthe caregiver41.9 caregivers who are not exempt under section 256J.56, paragraph 41.10 (a), clause (6) or (8), that failure to attend the orientation 41.11 is considered an occurrence of noncompliance with program 41.12 requirements, and will result in the imposition of a sanction 41.13 under section 256J.46. If the client complies with the 41.14 orientation requirement prior to the first day of the month in 41.15 which the grant reduction is proposed to occur, the orientation 41.16 sanction shall be lifted. 41.17 Sec. 47. Minnesota Statutes 1998, section 256J.46, 41.18 subdivision 1, is amended to read: 41.19 Subdivision 1. [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 41.20 WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 41.21 good cause to comply with the requirements of this chapter, and 41.22 who is not subject to a sanction under subdivision 2, shall be 41.23 subject to a sanction as provided in this subdivision. 41.24 A sanction under this subdivision becomes effective the 41.25 month following the month in which a required notice is given. 41.26 A sanction must not be imposed when a participant comes into 41.27 compliance with the requirements for orientation under section 41.28 256J.45 or third-party liability for medical services under 41.29 section 256J.30, subdivision 10, prior to the effective date of 41.30 the sanction. A sanction must not be imposed when a participant 41.31 comes into compliance with the requirements for employment and 41.32 training services under sections 256J.49 to 256J.72 ten days 41.33 prior to the effective date of the sanction. For purposes of 41.34 this subdivision, each month that a participant fails to comply 41.35 with a requirement of this chapter shall be considered a 41.36 separate occurrence of noncompliance. A participant who has had 42.1 one or more sanctions imposed must remain in compliance with the 42.2 provisions of this chapter for six months in order for a 42.3 subsequent occurrence of noncompliance to be considered a first 42.4 occurrence. 42.5 (b) Sanctions for noncompliance shall be imposed as follows: 42.6 (1) For the first occurrence of noncompliance by a 42.7 participant in a single-parent household or by one participant 42.8 in a two-parent household, the assistance unit's grant shall be 42.9 reduced by ten percent of theMFIP-S transitionalapplicable 42.10 standard, the shared household standard, or the interstate42.11transitional standardfor an assistance unit of the same size,42.12whichever is applicable,with the residual grant paid to the 42.13 participant. The reduction in the grant amount must be in 42.14 effect for a minimum of one month and shall be removed in the 42.15 month following the month that the participant returns to 42.16 compliance. 42.17 (2) For a second or subsequent occurrence of noncompliance, 42.18 or when both participants in a two-parent household are out of 42.19 compliance at the same time, the assistance unit's shelter costs 42.20 shall be vendor paid up to the amount of the cash portion of the 42.21MFIP-SMFIP grant for which the participant's assistance unit is 42.22 eligible. At county option, the assistance unit's utilities may 42.23 also be vendor paid up to the amount of the cash portion of the 42.24MFIP-SMFIP grant remaining after vendor payment of the 42.25 assistance unit's shelter costs. The residual amount of the 42.26 grant after vendor payment, if any, must be reduced by an amount 42.27 equal to 30 percent of theMFIP-S transitionalapplicable 42.28 standard, the shared household standard, or the interstate42.29transitional standardfor an assistance unit of the same size,42.30whichever is applicable,before the residual grant is paid to 42.31 the assistance unit. The reduction in the grant amount must be 42.32 in effect for a minimum of one month and shall be removed in the 42.33 month following the month that a participant in a one-parent 42.34 household returns to compliance. In a two-parent household, the 42.35 grant reduction must be in effect for a minimum of one month and 42.36 shall be removed in the month following the month both 43.1 participants return to compliance. The vendor payment of 43.2 shelter costs and, if applicable, utilities shall be removed six 43.3 months after the month in which the participant or participants 43.4 return to compliance. 43.5 (c) No later than during the second month that a sanction 43.6 under paragraph (b), clause (2), is in effect due to 43.7 noncompliance with employment services, the participant's case 43.8 file must be reviewed to determine if: 43.9 (i) the continued noncompliance can be explained and 43.10 mitigated by providing a needed preemployment activity, as 43.11 defined in section 256J.49, subdivision 13, clause (16); 43.12 (ii) the participant qualifies for a good cause exception 43.13 under section 256J.57; or 43.14 (iii) the participant qualifies for an exemption under 43.15 section 256J.56. 43.16 If the lack of an identified activity can explain the 43.17 noncompliance, the county must work with the participant to 43.18 provide the identified activity, and the county must restore the 43.19 participant's grant amount to the full amount for which the 43.20 assistance unit is eligible. The grant must be restored 43.21 retroactively to the first day of the month in which the 43.22 participant was found to lack preemployment activities or to 43.23 qualify for an exemption or good cause exception. 43.24 If the participant is found to qualify for a good cause 43.25 exception or an exemption, the county must restore the 43.26 participant's grant to the full amount for which the assistance 43.27 unit is eligible. 43.28 Sec. 48. Minnesota Statutes 1998, section 256J.46, 43.29 subdivision 2, is amended to read: 43.30 Subd. 2. [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 43.31 REQUIREMENTS.] The grant of anMFIP-SMFIP caregiver who refuses 43.32 to cooperate, as determined by the child support enforcement 43.33 agency, with support requirements under section 256.741, shall 43.34 be subject to sanction as specified in this subdivision. The 43.35 assistance unit's grant must be reduced by 25 percent of the 43.36 applicable transitional standard. The residual amount of the 44.1 grant, if any, must be paid to the caregiver. A sanction under 44.2 this subdivision becomes effective the first month following the 44.3 month in which a required notice is given. A sanction must not 44.4 be imposed when a caregiver comes into compliance with the 44.5 requirements under section 256.741 prior to the effective date 44.6 of the sanction. The sanction shall be removed in the month 44.7 following the month that the caregiver cooperates with the 44.8 support requirements. Each month that anMFIP-SMFIP caregiver 44.9 fails to comply with the requirements of section 256.741 must be 44.10 considered a separate occurrence of noncompliance. AnMFIP-S44.11 MFIP caregiver who has had one or more sanctions imposed must 44.12 remain in compliance with the requirements of section 256.741 44.13 for six months in order for a subsequent sanction to be 44.14 considered a first occurrence. 44.15 Sec. 49. Minnesota Statutes 1998, section 256J.46, 44.16 subdivision 2a, is amended to read: 44.17 Subd. 2a. [DUAL SANCTIONS.] (a) Notwithstanding the 44.18 provisions of subdivisions 1 and 2, for a participant subject to 44.19 a sanction for refusal to comply with child support requirements 44.20 under subdivision 2 and subject to a concurrent sanction for 44.21 refusal to cooperate with other program requirements under 44.22 subdivision 1, sanctions shall be imposed in the manner 44.23 prescribed in this subdivision. 44.24 A participant who has had one or more sanctions imposed 44.25 under this subdivision must remain in compliance with the 44.26 provisions of this chapter for six months in order for a 44.27 subsequent occurrence of noncompliance to be considered a first 44.28 occurrence. Any vendor payment of shelter costs or utilities 44.29 under this subdivision must remain in effect for six months 44.30 after the month in which the participant is no longer subject to 44.31 sanction under subdivision 1. 44.32 (b) If the participant was subject to sanction for: 44.33 (i) noncompliance under subdivision 1 before being subject 44.34 to sanction for noncooperation under subdivision 2; or 44.35 (ii) noncooperation under subdivision 2 before being 44.36 subject to sanction for noncompliance under subdivision 1; 45.1 the participant shall be sanctioned as provided in subdivision 45.2 1, paragraph (b), clause (2), and the requirement that the 45.3 county conduct a review as specified in subdivision 1, paragraph 45.4 (c), remains in effect. 45.5 (c) A participant who first becomes subject to sanction 45.6 under both subdivisions 1 and 2 in the same month is subject to 45.7 sanction as follows: 45.8 (i) in the first month of noncompliance and noncooperation, 45.9 the participant's grant must be reduced by 25 percent of the 45.10 applicabletransitionalstandard, with any residual amount paid 45.11 to the participant; 45.12 (ii) in the second and subsequent months of noncompliance 45.13 and noncooperation, the participant shall be sanctioned as 45.14 provided in subdivision 1, paragraph (b), clause (2). 45.15 The requirement that the county conduct a review as 45.16 specified in subdivision 1, paragraph (c), remains in effect. 45.17 (d) A participant remains subject to sanction under 45.18 subdivision 2 if the participant: 45.19 (i) returns to compliance and is no longer subject to 45.20 sanction under subdivision 1; or 45.21 (ii) has the sanction under subdivision 1, paragraph (b), 45.22 removed upon completion of the review under subdivision 1, 45.23 paragraph (c). 45.24 A participant remains subject to sanction under subdivision 45.25 1, paragraph (b), if the participant cooperates and is no longer 45.26 subject to sanction under subdivision 2. 45.27 Sec. 50. Minnesota Statutes 1998, section 256J.48, 45.28 subdivision 2, is amended to read: 45.29 Subd. 2. [ELIGIBILITY.] Notwithstanding other eligibility 45.30 provisions of this chapter, any family without resources 45.31 immediately available to meet emergency needs identified in 45.32 subdivision 3 shall be eligible for an emergency grant under the 45.33 following conditions: 45.34 (1) a family member has resided in this state for at least 45.35 30 days; 45.36 (2) the family is without resources immediately available 46.1 to meet emergency needs; 46.2 (3) assistance is necessary to avoid destitution or provide 46.3 emergency shelter arrangements; 46.4 (4) the family's destitution or need for shelter or 46.5 utilities did not arise because the assistance unit is under 46.6 sanction, the caregiver is disqualified, or the child or 46.7 relative caregiver refused without good cause under section 46.8 256J.57 to accept employment or training for employment in this 46.9 state or another state; and 46.10 (5) at least one child or pregnant woman in the emergency 46.11 assistance unit meetsMFIP-SMFIP citizenship requirements in 46.12 section 256J.11. 46.13 Sec. 51. Minnesota Statutes 1998, section 256J.48, 46.14 subdivision 3, is amended to read: 46.15 Subd. 3. [EMERGENCY NEEDS.] Emergency needs are limited to 46.16 the following: 46.17 (a) [RENT.] A county agency may deny assistance to prevent 46.18 eviction from rented or leased shelter of an otherwise eligible 46.19 applicant when the county agency determines that an applicant's 46.20 anticipated income will not cover continued payment for shelter, 46.21 subject to conditions in clauses (1) to (3): 46.22 (1) a county agency must not deny assistance when an 46.23 applicant can document that the applicant is unable to locate 46.24 habitable shelter, unless the county agency can document that 46.25 one or more habitable shelters are available in the community 46.26 that will result in at least a 20 percent reduction in monthly 46.27 expense for shelter and that this shelter will be cost-effective 46.28 for the applicant; 46.29 (2) when no alternative shelter can be identified by either 46.30 the applicant or the county agency, the county agency shall not 46.31 deny assistance because anticipated income will not cover rental 46.32 obligation; and 46.33 (3) when cost-effective alternative shelter is identified, 46.34 the county agency shall issue assistance for moving expenses as 46.35 provided in paragraph (e). 46.36 (b) [DEFINITIONS.] For purposes of paragraph (a), the 47.1 following definitions apply (1) "metropolitan statistical area" 47.2 is as defined by the United States Census Bureau; (2) 47.3 "alternative shelter" includes any shelter that is located 47.4 within the metropolitan statistical area containing the county 47.5 and for which the applicant is eligible, provided the applicant 47.6 does not have to travel more than 20 miles to reach the shelter 47.7 and has access to transportation to the shelter. Clause (2) 47.8 does not apply to counties in the Minneapolis-St. Paul 47.9 metropolitan statistical area. 47.10 (c) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 47.11 agency shall issue assistance for mortgage or contract for deed 47.12 arrearages on behalf of an otherwise eligible applicant 47.13 according to clauses (1) to (4): 47.14 (1) assistance for arrearages must be issued only when a 47.15 home is owned, occupied, and maintained by the applicant; 47.16 (2) assistance for arrearages must be issued only when no 47.17 subsequent foreclosure action is expected within the 12 months 47.18 following the issuance; 47.19 (3) assistance for arrearages must be issued only when an 47.20 applicant has been refused refinancing through a bank or other 47.21 lending institution and the amount payable, when combined with 47.22 any payments made by the applicant, will be accepted by the 47.23 creditor as full payment of the arrearage; 47.24 (4) costs paid by a family which are counted toward the 47.25 payment requirements in this clause are: principal and interest 47.26 payments on mortgages or contracts for deed, balloon payments, 47.27 homeowner's insurance payments, manufactured home lot rental 47.28 payments, and tax or special assessment payments related to the 47.29 homestead. Costs which are not counted include closing costs 47.30 related to the sale or purchase of real property. 47.31 To be eligible for assistance for costs specified in clause 47.32 (4) which are outstanding at the time of foreclosure, an 47.33 applicant must have paid at least 40 percent of the family's 47.34 gross income toward these costs in the month of application and 47.35 the 11-month period immediately preceding the month of 47.36 application. 48.1 When an applicant is eligible under clause (4), a county 48.2 agency shall issue assistance up to a maximum of four times the 48.3MFIP-SMFIP transitional standard for a comparable assistance 48.4 unit. 48.5 (d) [DAMAGE OR UTILITY DEPOSITS.] A county agency shall 48.6 issue assistance for damage or utility deposits when necessary 48.7 to alleviate the emergency. The county may require that 48.8 assistance paid in the form of a damage deposit, less any amount 48.9 retained by the landlord to remedy a tenant's default in payment 48.10 of rent or other funds due to the landlord under a rental 48.11 agreement, or to restore the premises to the condition at the 48.12 commencement of the tenancy, ordinary wear and tear excepted, be 48.13 returned to the county when the individual vacates the premises 48.14 or be paid to the recipient's new landlord as a vendor payment. 48.15 The county may require that assistance paid in the form of a 48.16 utility deposit less any amount retained to satisfy outstanding 48.17 utility costs be returned to the county when the person vacates 48.18 the premises, or be paid for the person's new housing unit as a 48.19 vendor payment. The vendor payment of returned funds shall not 48.20 be considered a new use of emergency assistance. 48.21 (e) [MOVING EXPENSES.] A county agency shall issue 48.22 assistance for expenses incurred when a family must move to a 48.23 different shelter according to clauses (1) to (4): 48.24 (1) moving expenses include the cost to transport personal 48.25 property belonging to a family, the cost for utility connection, 48.26 and the cost for securing different shelter; 48.27 (2) moving expenses must be paid only when the county 48.28 agency determines that a move is cost-effective; 48.29 (3) moving expenses must be paid at the request of an 48.30 applicant, but only when destitution or threatened destitution 48.31 exists; and 48.32 (4) moving expenses must be paid when a county agency 48.33 denies assistance to prevent an eviction because the county 48.34 agency has determined that an applicant's anticipated income 48.35 will not cover continued shelter obligation in paragraph (a). 48.36 (f) [HOME REPAIRS.] A county agency shall pay for repairs 49.1 to the roof, foundation, wiring, heating system, chimney, and 49.2 water and sewer system of a home that is owned and lived in by 49.3 an applicant. 49.4 The applicant shall document, and the county agency shall 49.5 verify the need for and method of repair. 49.6 The payment must be cost-effective in relation to the 49.7 overall condition of the home and in relation to the cost and 49.8 availability of alternative housing. 49.9 (g) [UTILITY COSTS.] Assistance for utility costs must be 49.10 made when an otherwise eligible family has had a termination or 49.11 is threatened with a termination of municipal water and sewer 49.12 service, electric, gas or heating fuel service, refuse removal 49.13 service, or lacks wood when that is the heating source, subject 49.14 to the conditions in clauses (1) and (2): 49.15 (1) a county agency must not issue assistance unless the 49.16 county agency receives confirmation from the utility provider 49.17 that assistance combined with payment by the applicant will 49.18 continue or restore the utility; and 49.19 (2) a county agency shall not issue assistance for utility 49.20 costs unless a family paid at least eight percent of the 49.21 family's gross income toward utility costs due during the 49.22 preceding 12 months. 49.23 Clauses (1) and (2) must not be construed to prevent the 49.24 issuance of assistance when a county agency must take immediate 49.25 and temporary action necessary to protect the life or health of 49.26 a child. 49.27 (h) [SPECIAL DIETS.] Effective January 1, 1998, a county 49.28 shall pay for special diets or dietary items forMFIP-SMFIP 49.29 participants. Persons receiving emergency assistance funds for 49.30 special diets or dietary items are also eligible to receive 49.31 emergency assistance for shelter and utility emergencies, if 49.32 otherwise eligible. The need for special diets or dietary items 49.33 must be prescribed by a licensed physician. Costs for special 49.34 diets shall be determined as percentages of the allotment for a 49.35 one-person household under the Thrifty Food Plan as defined by 49.36 the United States Department of Agriculture. The types of diets 50.1 and the percentages of the Thrifty Food Plan that are covered 50.2 are as follows: 50.3 (1) high protein diet, at least 80 grams daily, 25 percent 50.4 of Thrifty Food Plan; 50.5 (2) controlled protein diet, 40 to 60 grams and requires 50.6 special products, 100 percent of Thrifty Food Plan; 50.7 (3) controlled protein diet, less than 40 grams and 50.8 requires special products, 125 percent of Thrifty Food Plan; 50.9 (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 50.10 (5) high residue diet, 20 percent of Thrifty Food Plan; 50.11 (6) pregnancy and lactation diet, 35 percent of Thrifty 50.12 Food Plan; 50.13 (7) gluten-free diet, 25 percent of Thrifty Food Plan; 50.14 (8) lactose-free diet, 25 percent of Thrifty Food Plan; 50.15 (9) antidumping diet, 15 percent of Thrifty Food Plan; 50.16 (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 50.17 (11) ketogenic diet, 25 percent of Thrifty Food Plan. 50.18 Sec. 52. Minnesota Statutes 1998, section 256J.50, 50.19 subdivision 1, is amended to read: 50.20 Subdivision 1. [EMPLOYMENT AND TRAINING SERVICES COMPONENT 50.21 OFMFIP-SMFIP.] (a) By January 1, 1998, each county must 50.22 develop and implement an employment and training services 50.23 component ofMFIP-SMFIP which is designed to put participants 50.24 on the most direct path to unsubsidized employment. 50.25 Participation in these services is mandatory for allMFIP-SMFIP 50.26 caregivers, unless the caregiver is exempt under section 256J.56. 50.27 (b)A county may provide employment and training services50.28to MFIP-S caregivers who are exempt from the employment and50.29training services component but volunteer for the services.A 50.30 county must provide employment and training services under 50.31 sections 256J.515 to 256J.57 within 30 days after the 50.32 caregiver's participation becomes mandatory under subdivision 5. 50.33 Sec. 53. Minnesota Statutes 1998, section 256J.515, is 50.34 amended to read: 50.35 256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 50.36 During the first meeting with participants, job counselors 51.1 must ensure that an overview of employment and training services 51.2 is provided that: 51.3 (1) stresses the necessity and opportunity of immediate 51.4 employment; 51.5 (2) outlines the job search resources offered; 51.6 (3) outlines education or training opportunities available; 51.7 (4) describes the range of work activities, including 51.8 activities under section 256J.49, subdivision 13, clause (18), 51.9 that are allowable under MFIP-S to meet the individual needs of 51.10 participants; 51.11 (5) explains the requirements to comply with an employment 51.12 plan; 51.13 (6) explains the consequences for failing to comply; and 51.14 (7) explains the services that are available to support job 51.15 search and work and education. 51.16 Failure to attend the overview of employment and training 51.17 services without good cause results in the imposition of a 51.18 sanction under section 256J.46. 51.19 Sec. 54. Minnesota Statutes 1998, section 256J.52, 51.20 subdivision 1, is amended to read: 51.21 Subdivision 1. [APPLICATION LIMITED TO CERTAIN 51.22 PARTICIPANTS.] This section applies to participants receiving 51.23MFIP-SMFIP assistance who are not exempt under section 256J.56, 51.24 and to caregivers who volunteer for employment and training 51.25 servicesunder section 256J.50. 51.26 Sec. 55. Minnesota Statutes 1998, section 256J.52, 51.27 subdivision 4, is amended to read: 51.28 Subd. 4. [SECONDARY ASSESSMENT.] (a) The job counselor 51.29 must conduct a secondary assessment for those participants who: 51.30 (1) in the judgment of the job counselor, have barriers to 51.31 obtaining employment that will not be overcome with a job search 51.32 support plan under subdivision 3; 51.33 (2) have completed eight weeks of job search under 51.34 subdivision 3 without obtaining suitable employment; 51.35 (3) have not received a secondary assessment, are working 51.36 at least 20 hours per week, and the participant, job counselor, 52.1 or county agency requests a secondary assessment; or 52.2 (4) have an existing job search plan or employment plan 52.3 developed for another program or are already involved in 52.4 training or education activities under section 256J.55, 52.5 subdivision 5. 52.6 (b) In the secondary assessment the job counselor must 52.7 evaluate the participant's skills and prior work experience, 52.8 family circumstances, interests and abilities, need for 52.9 preemployment activities, supportive or educational services, 52.10 and the extent of any barriers to employment. The job counselor 52.11 may require the participant complete a professional medical 52.12 substance abuse or psychological assessment as a component of 52.13 the secondary assessment. Failure to complete a secondary 52.14 assessment shall result in the imposition of a sanction as 52.15 specified in sections 256J.46 and 256J.57. The job counselor 52.16 must use the information gathered through the secondary 52.17 assessment to develop an employment plan under subdivision 5. 52.18 (c) The provider shall make available to participants 52.19 information regarding additional vendors or resources which 52.20 provide employment and training services that may be available 52.21 to the participant under a plan developed under this section. 52.22 The information must include a brief summary of services 52.23 provided and related performance indicators. Performance 52.24 indicators must include, but are not limited to, the average 52.25 time to complete program offerings, placement rates, entry and 52.26 average wages, and retention rates. To be included in the 52.27 information given to participants, a vendor or resource must 52.28 provide counties with relevant information in the format 52.29 required by the county. 52.30 Sec. 56. Minnesota Statutes 1998, section 256J.55, 52.31 subdivision 4, is amended to read: 52.32 Subd. 4. [CHOICE OF PROVIDER.]A participantMFIP 52.33 caregivers must be able to choose from at least two employment 52.34 and training service providers, unless the county has 52.35 demonstrated to the commissioner that the provision of multiple 52.36 employment and training service providers would result in 53.1 financial hardship for the county, or the county is utilizing a 53.2 workforce center as specified in section 256J.50, subdivision 53.3 8. Both parents in a two-parent family must choose the same 53.4 employment and training service provider unless a special need, 53.5 such as bilingual services, is identified but not available 53.6 through one service provider. 53.7 Sec. 57. Minnesota Statutes 1998, section 256J.56, is 53.8 amended to read: 53.9 256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 53.10 EXEMPTIONS.] 53.11 (a) AnMFIP-SMFIP caregiver is exempt from the 53.12 requirements of sections 256J.52 to 256J.55 if the caregiver 53.13 belongs to any of the following groups: 53.14 (1) individuals who are age 60 or older; 53.15 (2) individuals who are suffering from a professionally 53.16 certified permanent or temporary illness, injury, or incapacity 53.17 which is expected to continue for more than 30 days and which 53.18 prevents the person from obtaining or retaining employment. 53.19 Persons in this category with a temporary illness, injury, or 53.20 incapacity must be reevaluated at least quarterly. A caregiver 53.21 who is exempt under this clause for 12 continuous months must 53.22 apply for supplemental security income or social security 53.23 disability benefits as prescribed in section 256J.30, 53.24 subdivision 2; 53.25 (3) caregivers whose presence in the home is required 53.26 because of the professionally certified illness or incapacity of 53.27 another member in the assistance unit, a relative in the 53.28 household, or a foster child in the household; 53.29 (4) women who are pregnant, if the pregnancy has resulted 53.30 in a professionally certified incapacity that prevents the woman 53.31 from obtaining or retaining employment; 53.32 (5) caregivers of a child under the age of one year who 53.33 personally provide full-time care for the child. This exemption 53.34 may be used for only 12 months in a lifetime. In two-parent 53.35 households, only one parent or other relative may qualify for 53.36 this exemption; 54.1 (6) individuals who are single parents, or one parent in a 54.2 two-parent family, employed at least 35 hours per week; 54.3 (7) individuals experiencing a personal or family crisis 54.4 that makes them incapable of participating in the program, as 54.5 determined by the county agency. If the participant does not 54.6 agree with the county agency's determination, the participant 54.7 may seek professional certification, as defined in section 54.8 256J.08, that the participant is incapable of participating in 54.9 the program. 54.10 Persons in this exemption category must be reevaluated 54.11 every 60 days; or 54.12 (8) second parents in two-parent families employed for 20 54.13 or more hours per week, provided the first parent is employed at 54.14 least 35 hours per week. 54.15 A caregiver who is exempt under clause (5) must enroll in 54.16 and attend an early childhood and family education class, a 54.17 parenting class, or some similar activity, if available, during 54.18 the period of time the caregiver is exempt under this section. 54.19 Notwithstanding section 256J.46, failure to attend the required 54.20 activity shall not result in the imposition of a sanction. 54.21 (b) The county agency must provide employment and training 54.22 services toMFIP-SMFIP caregivers who are exempt under this 54.23 section, but who volunteer to participate. Exempt volunteers 54.24 may request approval for any work activity under section 54.25 256J.49, subdivision 13. The hourly participation requirements 54.26 for nonexempt caregivers under section 256J.50, subdivision 5, 54.27 do not apply to exempt caregivers who volunteer to participate. 54.28 Sec. 58. Minnesota Statutes 1998, section 256J.62, 54.29 subdivision 1, is amended to read: 54.30 Subdivision 1. [ALLOCATION.] Money appropriated forMFIP-S54.31 MFIP employment and training services must be allocated to 54.32 counties and eligible tribal providers as specified in this 54.33 section. 54.34 Sec. 59. Minnesota Statutes 1998, section 256J.62, is 54.35 amended by adding a subdivision to read: 54.36 Subd. 2a. [CASELOAD-BASED FUNDS ALLOCATION.] Effective for 55.1 state fiscal year 2000, and for all subsequent years, money 55.2 shall be allocated to counties and eligible tribal providers 55.3 based on their average number of MFIP cases as a proportion of 55.4 the statewide total number of MFIP cases: 55.5 (1) the average number of cases must be based upon counts 55.6 of MFIP cases as of March 31, June 30, September 30, and 55.7 December 31 of the previous calendar year, less the number of 55.8 child only cases and cases where all the caregivers are age 60 55.9 or over. Two-parent cases, with the exception of those with a 55.10 caregiver age 60 or over, will be multiplied by a factor of two; 55.11 (2) the MFIP case count for each eligible tribal provider 55.12 shall be based upon the number of MFIP cases who are enrolled 55.13 in, or are eligible for enrollment in their reservation; and the 55.14 case must be an active MFIP case; and the case members must 55.15 reside within the tribal program's service delivery area; 55.16 (3) MFIP cases counted for determining allocations to 55.17 tribal providers shall be removed from the case counts of the 55.18 respective counties where they reside to prevent duplicate 55.19 counts; and 55.20 (4) prior to allocating funds to counties and tribal 55.21 providers, $1,000,000 shall be set aside to allow the 55.22 commissioner to use these set-aside funds to provide funding to 55.23 county or tribal providers who experience an unforeseen influx 55.24 of participants or other emergent situations beyond their 55.25 control. 55.26 Any funds specified in this paragraph that remain unspent by 55.27 March 31 of each year shall be reallocated out to county and 55.28 tribal providers using the funding formula detailed in clauses 55.29 (1) to (4). 55.30 Sec. 60. Minnesota Statutes 1998, section 256J.62, 55.31 subdivision 6, is amended to read: 55.32 Subd. 6. [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 55.33 REFUGEES.] Funds appropriated to cover the costs of bilingual 55.34 employment and training services to refugees shall be allocated 55.35 to county agencies as follows: 55.36 (1) for state fiscal year 1998, the allocation shall be 56.1 based on the county's proportion of the total statewide number 56.2 of AFDC refugee cases in the previous fiscal year. Counties 56.3 with less than one percent of the statewide number of AFDC, 56.4 MFIP-R, or MFIP refugee cases shall not receive an allocation of 56.5 bilingual employment and training services funds; and 56.6 (2) for each subsequent fiscal year, the allocation shall 56.7 be based on the county's proportion of the total statewide 56.8 number ofMFIP-SMFIP refugee cases in the previous fiscal year. 56.9 Counties with less than one percent of the statewide number of 56.10MFIP-SMFIP refugee cases shall not receive an allocation of 56.11 bilingual employment and training services funds. 56.12 Sec. 61. Minnesota Statutes 1998, section 256J.62, 56.13 subdivision 7, is amended to read: 56.14 Subd. 7. [WORK LITERACY LANGUAGE PROGRAMS.] Funds 56.15 appropriated to cover the costs of work literacy language 56.16 programs to non-English-speaking recipients shall be allocated 56.17 to county agencies as follows: 56.18 (1) for state fiscal year 1998, the allocation shall be 56.19 based on the county's proportion of the total statewide number 56.20 of AFDC or MFIP cases in the previous fiscal year where the lack 56.21 of English is a barrier to employment. Counties with less than 56.22 two percent of the statewide number of AFDC or MFIP cases where 56.23 the lack of English is a barrier to employment shall not receive 56.24 an allocation of the work literacy language program funds; and 56.25 (2) for each subsequent fiscal year, the allocation shall 56.26 be based on the county's proportion of the total statewide 56.27 number ofMFIP-SMFIP cases in the previous fiscal year where 56.28 the lack of English is a barrier to employment. Counties with 56.29 less than two percent of the statewide number ofMFIP-SMFIP 56.30 cases where the lack of English is a barrier to employment shall 56.31 not receive an allocation of the work literacy language program 56.32 funds. 56.33 Sec. 62. Minnesota Statutes 1998, section 256J.62, 56.34 subdivision 8, is amended to read: 56.35 Subd. 8. [REALLOCATION.] The commissioner of human 56.36 services shall review county agency expenditures ofMFIP-SMFIP 57.1 employment and training services funds at the end of the third 57.2 quarter of the first year of the biennium and each quarter after 57.3 that and may reallocate unencumbered or unexpended money 57.4 appropriated under this section to those county agencies that 57.5 can demonstrate a need for additional money. 57.6 Sec. 63. Minnesota Statutes 1998, section 256J.62, 57.7 subdivision 9, is amended to read: 57.8 Subd. 9. [CONTINUATION OF CERTAIN SERVICES.] At the 57.9 request of the caregiver, the county may continue to provide 57.10 case management, counseling or other support services to a 57.11 participant following the participant's achievement of the 57.12 employment goal, for up to six months following termination of 57.13 the participant's eligibility forMFIP-SMFIP. 57.14 A county may expend funds for a specific employment and 57.15 training service for the duration of that service to a 57.16 participant if the funds are obligated or expended prior to the 57.17 participant losingMFIP-SMFIP eligibility. 57.18 Sec. 64. Minnesota Statutes 1998, section 256J.74, 57.19 subdivision 2, is amended to read: 57.20 Subd. 2. [CONCURRENT ELIGIBILITY, LIMITATIONS.] (a) An 57.21 individual whose needs have been otherwise provided for in 57.22 another state, in whole or in part by county, state, or federal 57.23 dollars during a month, is ineligible to receive MFIP for the 57.24 month. 57.25 (b) A county agency must not count an applicant or 57.26 participant as a member of more than one assistance unit in this 57.27 state in a given payment month, except as provided in clauses 57.28 (1) and (2). 57.29 (1) A participant who is a member of an assistance unitin57.30this stateis eligible to be included in a second assistance 57.31 unit thefirst fullmonth after the month the participant joins 57.32 the second unit. 57.33 (2) An applicant whose needs are met through federal, 57.34 state, or local foster carethat is reimbursed under title IV-E57.35of the Social Security Actpayments for the first part of an 57.36 application month is eligible to receive assistance for the 58.1 remaining part of the month in which the applicant returns 58.2 home.Title IV-EFoster care paymentsand adoption assistance58.3paymentsmust be considered prorated payments rather than a 58.4 duplication ofMFIP-SMFIP need. 58.5 Sec. 65. [256J.751] [COUNTY PERFORMANCE MANAGEMENT.] 58.6 (a) The commissioner shall report quarterly to all counties 58.7 each county's performance on the following measures: 58.8 (1) percent of MFIP caseload working in paid employment; 58.9 (2) percent of MFIP caseload receiving only the food 58.10 portion of assistance; 58.11 (3) number of MFIP cases that have left assistance; and 58.12 (4) federal participation requirements as specified in 58.13 title 1 of Public Law Number 104-193. 58.14 (b) By January 1, 2000, the commissioner shall, in 58.15 consultation with counties, develop measures for county 58.16 performance in addition to those in paragraph (a). In 58.17 developing these measures, the commissioner must consider: 58.18 (1) a measure for MFIP cases that leave assistance due to 58.19 employment; 58.20 (2) job retention after participants leave MFIP; and 58.21 (3) participant's earnings at a follow-up point after the 58.22 participant has left MFIP. 58.23 (c) If sanctions occur for failure to meet the performance 58.24 standards specified in title 1 of Public Law Number 104-193 of 58.25 the Personal Responsibility and Work Opportunity Act of 1996, 58.26 the state shall pay 88 percent of the sanction. The remaining 58.27 12 percent of the sanction will be paid by the counties. The 58.28 county portion of the sanction will be distributed across all 58.29 counties in proportion to each county's percentage of the MFIP 58.30 average monthly caseload during the period for which the 58.31 sanction was applied. 58.32 (d) If a county fails to meet the performance standards 58.33 specified in title 1 of Public Law Number 104-193 of the 58.34 Personal Responsibility and Work Opportunity Act of 1996 for any 58.35 year, the commissioner shall work with counties to organize a 58.36 joint state-county technical assistance team to work with the 59.1 county. The commissioner shall coordinate any technical 59.2 assistance with other departments and agencies including the 59.3 departments of economic security and children, families, and 59.4 learning as necessary to achieve the purpose of this paragraph. 59.5 Sec. 66. Minnesota Statutes 1998, section 256J.76, 59.6 subdivision 1, is amended to read: 59.7 Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July 59.8 1, 1997, counties will receive federal funds from the TANF block 59.9 grant for use in supporting eligibility, fraud control, and 59.10 other related administrative functions. The federal funds 59.11 available for distribution, as determined by the commissioner, 59.12 must be an amount equal to federal administrative aid 59.13 distributed for fiscal year 1996 under titles IV-A and IV-F of 59.14 the Social Security Act in effect prior to October 1, 1996. 59.15 This amount must include the amount paid for local 59.16 collaboratives under sections 245.4932 and 256F.13, but must not 59.17 include administrative aid associated with child care under 59.18 section 119B.05, with emergency assistance intensive family 59.19 preservation services under section 256.8711, with 59.20 administrative activities as part of the employment and training 59.21 services under section 256.736, or with fraud prevention 59.22 investigation activities under section 256.983. Before January 59.23 1, 2000, a county may ask for a review of the commissioner's 59.24 determination where the county believes fiscal year 1996 59.25 information was inaccurate or incomplete. By April 1, 2000, the 59.26 commissioner must adjust that county's base when the 59.27 commissioner has determined that inaccurate or incomplete 59.28 information was used to develop that base. The commissioner 59.29 shall make the adjustment starting fiscal year 2000. 59.30 Sec. 67. Minnesota Statutes 1998, section 256J.76, 59.31 subdivision 2, is amended to read: 59.32 Subd. 2. [ALLOCATION OF COUNTY FUNDS.] (a) The 59.33 commissioner shall determine and allocate the funds available to 59.34 each county, on a calendar year basis, proportional to the 59.35 amount paid to each county for fiscal year 1996, excluding the 59.36 amount paid for local collaboratives under sections 245.4932 and 60.1 256F.13. For the period beginning July 1, 1997, and ending 60.2 December 31, 1998, each county shall receive 150 percent of its 60.3 base year allocation. 60.4 (b) Beginning January 1, 2000, the commissioner shall 60.5 allocate funds made available under this section on a calendar 60.6 year basis to each county first, in amounts equal to each 60.7 county's guaranteed floor as described in clause (1), second, to 60.8 provide an allocation of up to $2,000 to each county as provided 60.9 for in clause (2), and third, any remaining funds shall be 60.10 allocated in proportion to the sum of each county's average 60.11 monthly MFIP cases plus ten percent of each county's average 60.12 monthly MFIP recipients with budgeted earnings as determined by 60.13 the most recent calendar year data available. 60.14 (1) Each county's guaranteed floor shall be calculated as 60.15 follows: 60.16 (i) 90 percent of that county's allocation in the preceding 60.17 calendar year; or 60.18 (ii) when the amount of funds available is less than the 60.19 guaranteed floor, each county's allocation shall be equal to the 60.20 previous calendar year allocation reduced by the same percentage 60.21 that the statewide allocation was reduced. 60.22 (2) Each county shall be allocated up to $2,000. If, after 60.23 application of the guaranteed floor, funds are insufficient to 60.24 provide $2,000 per county, each county's allocation under this 60.25 clause shall be an equal share of remaining funds available. 60.26 Sec. 68. Minnesota Statutes 1998, section 256J.76, 60.27 subdivision 4, is amended to read: 60.28 Subd. 4. [REPORTING REQUIREMENT AND REIMBURSEMENT.] The 60.29 commissioner shall specify requirements for reporting according 60.30 to section 256.01, subdivision 2, paragraph (17). Each county 60.31 shall be reimbursed at a rate of 50 percent of eligible 60.32 expenditures up to the limit of its allocation. The 60.33 commissioner shall regularly review each county's eligible 60.34 expenditures compared to its allocation. The commissioner may 60.35 reallocate funds at any time, from counties which have not or 60.36 will not have expended their allocations, to counties that have 61.1 eligible expenditures in excess of their allocation. 61.2 Sec. 69. [STUDY OF EXTENSIONS TO 60-MONTH LIMIT.] 61.3 By January 15, 2000, the commissioner of human services 61.4 shall submit to the legislature recommendations regarding how to 61.5 implement any extension of assistance to MFIP families that 61.6 includes an adult caregiver who has received 60 months of cash 61.7 assistance funded in whole or in part by the TANF block grant. 61.8 Sec. 70. [REPEALER.] 61.9 Minnesota Statutes 1998, sections 256D.051, subdivisions 6 61.10 and 19; 256D.053, subdivision 4; 256J.396; and 256J.62, 61.11 subdivisions 2, 3, and 5, are repealed.