1.1                          A bill for an act 
  1.2             relating to human services; families; social services 
  1.3             programs; child care; federal waivers; appropriating 
  1.4             money; amending Minnesota Statutes 1994, section 
  1.5             256.01, by adding a subdivision; proposing coding for 
  1.6             new law in Minnesota Statutes, chapter 256. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 256.01, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 13.  [CHILD SUPPORT ASSURANCE.] The commissioner 
  1.11  shall seek a waiver from the secretary of the United States 
  1.12  Department of Health and Human Services to enable the department 
  1.13  of human services to operate a demonstration project of child 
  1.14  support assurance in accordance with the design of the project 
  1.15  detailed in the department's report to the legislature. 
  1.16     The commissioner shall implement a demonstration project of 
  1.17  child support assurance when enhanced federal funds at or above 
  1.18  a 90 percent participation rate become available for this 
  1.19  purpose. 
  1.20     Sec. 2.  [256.741] [FILL THE GAP; STATE STANDARD OF NEED IN 
  1.21  THE PROGRAM OF AID TO FAMILIES WITH DEPENDENT CHILDREN.] 
  1.22     The commissioner shall raise the overall standard of need 
  1.23  by 25 percent for all recipient families.  However, the maximum 
  1.24  benefit which can be paid to a recipient family shall be 25 
  1.25  percent less than the revised state standard of need for that 
  1.26  family.  The commissioner shall calculate benefits for families 
  2.1   with countable income against the revised state standard of 
  2.2   need, except that in no instance shall a recipient family 
  2.3   receive a cash grant which is in excess of the revised benefit 
  2.4   payment calculated under this subdivision.  The new need 
  2.5   standard and benefit payment standard take effect January 1, 
  2.6   1996.  Child care benefits are not available to recipients when 
  2.7   participating in employment under this section. 
  2.8      Sec. 3.  [EMPOWERMENT ZONES; PROPOSED ADMINISTRATIVE 
  2.9   SIMPLIFICATION TO WELFARE LAWS.] 
  2.10     (a) The commissioner of human services shall make 
  2.11  recommendations to effectuate the changes in federal laws and 
  2.12  regulations, state laws and rules, and the state plan to improve 
  2.13  the administrative efficiency of the aid to families with 
  2.14  dependent children, general assistance, work readiness, family 
  2.15  general assistance, medical assistance, general assistance 
  2.16  medical care, and food stamp programs.  At a minimum, the 
  2.17  following administrative standards and procedures must be 
  2.18  changed. 
  2.19     The commissioner shall: 
  2.20     (1) require income or eligibility reviews no more 
  2.21  frequently than annually for cases in which income is normally 
  2.22  invariant, as in aid to families with dependent children cases 
  2.23  where the only source of household income is Supplemental Social 
  2.24  Security Income or Retirement and Survivors Disability 
  2.25  Insurance; 
  2.26     (2) permit households to report income annually when the 
  2.27  source of income is excluded, such as a minor's earnings; 
  2.28     (3) require income or eligibility reviews no more 
  2.29  frequently than annually for extended medical assistance cases; 
  2.30     (4) require income or eligibility reviews no more 
  2.31  frequently than annually for a medical assistance postpartum 
  2.32  client, where the client previously had eligibility under a 
  2.33  different basis prior to pregnancy or if other household members 
  2.34  have eligibility with the same income basis that applies to the 
  2.35  client; 
  2.36     (5) permit all income or eligibility reviews to use the 
  3.1   short application form for foster care medical assistance cases; 
  3.2      (6) make dependent care expenses declaratory for medical 
  3.3   assistance; 
  3.4      (7) permit noncalculation, nondata entry, and noncollection 
  3.5   of overpayments due to agency error; 
  3.6      (8) permit households to not report gifts of $100 per month 
  3.7   or less; and 
  3.8      (9) replace the current aid to families with dependent 
  3.9   children earnings disregard structures with a disregard of all 
  3.10  earnings, up to the standard of need. 
  3.11     (b) The county's administrative savings resulting from 
  3.12  these changes shall be allocated to fund the empowerment zones 
  3.13  initiative. 
  3.14     (c) The recommendations must be provided in a report to the 
  3.15  chairs of the appropriate legislative committees by August 1, 
  3.16  1995. 
  3.17     Sec. 4.  [EMPOWERMENT ZONE PLAN.] 
  3.18     The commissioner of human services and certain county 
  3.19  agencies shall develop a plan by December 1, 1995, to improve 
  3.20  the employment opportunities available to economic assistance 
  3.21  recipients.  The employment activities shall be focused on 
  3.22  improving public infrastructure, enhancing the local tax base, 
  3.23  improving the quality of available housing, reducing crime, 
  3.24  designing strategies for job skill enhancement, strengthening 
  3.25  communities, and maintaining and improving natural systems.  The 
  3.26  county is authorized to retain 75 percent of the increased 
  3.27  valuation of the property included in the empowerment zone for 
  3.28  five years.  This money must be placed into a pool and used for 
  3.29  funding of empowerment zones.  The plan shall include input and 
  3.30  support from city council, county board, park board, and school 
  3.31  board.  The plan shall coordinate existing funding streams and 
  3.32  target them to mutually agreed upon projects.  Organized labor 
  3.33  shall be consulted in the development of the plan and 
  3.34  implementation of any work activities.  Participating 
  3.35  jurisdictions shall report back to the legislature by August 1, 
  3.36  1995, with a plan for a minimum of three large-scale public 
  4.1   projects to be located in pockets of poverty, as identified by 
  4.2   the city council, county board, park board, and school board. 
  4.3      Sec. 5.  [SEAMLESS CHILD CARE SYSTEM.] 
  4.4      The commissioner of human services shall examine the 
  4.5   feasibility of implementing a seamless child care system 
  4.6   statewide by July 1, 1996.  The seamless child care system must 
  4.7   provide a uniform approach to administering child care by 
  4.8   consolidating the different child care programs under Minnesota 
  4.9   Statutes, chapter 256H, streamlining all child care funding 
  4.10  available under chapter 256H, and making uniform laws and rules 
  4.11  to govern the child care system. 
  4.12     The commissioner shall issue a report to the legislature by 
  4.13  November 1995.  The report must:  (1) contain recommendations on 
  4.14  how to develop and implement the child care system statewide; (2)
  4.15  propose uniform eligibility criteria; (3) provide a list of 
  4.16  necessary federal waivers; (4) provide a list of statutes and 
  4.17  rules that must be repealed or amended; and (5) provide an 
  4.18  estimate of state and county savings resulting from the 
  4.19  reduction in administrative duties. 
  4.20     Sec. 6.  [CHILD CARE COOPERATIVES.] 
  4.21     A county may collaborate and coordinate efforts with school 
  4.22  districts, local youth centers, and other organizations to 
  4.23  provide cooperative child care services at convenient locations 
  4.24  which provide a low-cost alternative to day care services.  The 
  4.25  county may collaborate with the local school district, or an 
  4.26  organization near a school in which a family has a child in the 
  4.27  day care program or an older sibling that is participating in 
  4.28  the school district extended day program.  The county is 
  4.29  encouraged to explore other nontraditional suitable locations 
  4.30  for community day care services and consult with parents and 
  4.31  others who are interested in establishing a day care cooperative.
  4.32     Parents must be given an opportunity to participate in the 
  4.33  child care cooperatives.  Incentives offered to parents to 
  4.34  participate in the cooperative may include reduced day care 
  4.35  costs for an appropriate amount of time or a few hours of free 
  4.36  child care to provide a parent with a short respite. 
  5.1      For purposes of the collaborative effort, the county may 
  5.2   request a waiver of Minnesota Rules, part 9565.5025, subpart 2, 
  5.3   to implement the program.  This waiver would reduce the barriers 
  5.4   the applicant faces when applying for child care by specifically 
  5.5   allowing the applicant to initially declare income, instead of 
  5.6   being required to document income. 
  5.7      Sec. 7.  [EMPOWERMENT ZONE APPROPRIATION.] 
  5.8      $....... is appropriated for fiscal year ending June 1, 
  5.9   1996, from the general fund to the commissioner of human 
  5.10  services for the county agencies to develop the empowerment zone 
  5.11  program in sections 3 and 4.  Future state funding for these 
  5.12  projects shall be kept substantially revenue neutral by 
  5.13  accessing nontraditional funding streams within the existing 
  5.14  state budget.