1.1                          A bill for an act
  1.2             relating to welfare reform; requiring pregnant and 
  1.3             parenting minors to live with their parents in order 
  1.4             to receive AFDC; providing an exception to the AFDC 
  1.5             overpayment statute for recipients who have become 
  1.6             employed; broadening the scope of the employment and 
  1.7             training statute by requiring more AFDC recipients to 
  1.8             participate in job searches; allowing vendor emergency 
  1.9             assistance payments for damage deposit; providing 
  1.10            injury protection for work experience participants; 
  1.11            expanding cost-neutral fraud prevention programs; 
  1.12            allowing emergency assistance damage deposit be 
  1.13            returned to the county; allowing the county to pay 
  1.14            monthly general assistance differently; making general 
  1.15            assistance and work readiness lump-sum criteria the 
  1.16            same as the AFDC lump-sum criteria, with some 
  1.17            exceptions; reducing work readiness eligibility to one 
  1.18            month; requiring the departments of human services and 
  1.19            revenue to implement a plan which supports working 
  1.20            families; directing the commissioner of human services 
  1.21            to seek several waivers from the federal government 
  1.22            which support and promote self-sufficiency; expanding 
  1.23            the parents' fair share pilot project in Ramsey 
  1.24            county; expanding state support for basic sliding fee 
  1.25            day care program; appropriating money; amending 
  1.26            Minnesota Statutes 1994, sections 256.035, subdivision 
  1.27            6d; 256.73, subdivision 8, and by adding subdivisions; 
  1.28            256.736, subdivisions 3, 3a, 4a, 5, 10, 16, and by 
  1.29            adding subdivisions; 256.737, subdivision 4, and by 
  1.30            adding a subdivision; 256.81; 256.979, by adding a 
  1.31            subdivision; 256.983, subdivision 1; 256D.05, 
  1.32            subdivision 6; 256D.051, subdivision 1; and 256D.09, 
  1.33            by adding subdivisions; proposing coding for new law 
  1.34            in Minnesota Statutes, chapters 256; and 256D; 
  1.35            repealing Minnesota Statutes 1994, section 256.734. 
  1.36  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.37     Section 1.  Minnesota Statutes 1994, section 256.035, 
  1.38  subdivision 6d, is amended to read: 
  1.39     Subd. 6d.  [LENGTH OF JOB SEARCH OBLIGATION TO SEEK AND 
  1.40  OBTAIN FULL-TIME EMPLOYMENT.] (a) When the family support 
  2.1   agreement specifies a date when job search should begin, the 
  2.2   parental caregiver must participate in employment search 
  2.3   activities.  If, after three months of search, the parental 
  2.4   caregiver does not find a job that is consistent with the 
  2.5   parental caregiver's employment goal, the parent must accept any 
  2.6   suitable employment.  The search may be extended for up to three 
  2.7   months if the parental caregiver seeks and needs additional job 
  2.8   search assistance. 
  2.9      (b) When the family support agreement specifies job search 
  2.10  consistent with the overall employment goal, the caregiver is 
  2.11  expected to seek and accept full-time employment.  For this 
  2.12  purpose, full-time employment means 30 or more hours a week.  
  2.13  Caregivers who are single parents with a child under six satisfy 
  2.14  this requirement by working 20 or more hours a week. 
  2.15     (c) A caregiver currently enrolled in the Minnesota family 
  2.16  investment plan who voluntarily quits suitable employment 
  2.17  without good cause or without agreement of the case manager, or 
  2.18  who is terminated for nonperformance, must notify the case 
  2.19  manager or designee within ten calendar days of the date 
  2.20  employment ended to schedule a meeting to revise the family 
  2.21  support agreement.  A caregiver who fails to notify the case 
  2.22  manager or designee within the required time or fails to attend 
  2.23  a scheduled meeting to revise the family support agreement is 
  2.24  subject to sanction.  If the revised family support agreement 
  2.25  specifies job search, the caregiver must take any suitable 
  2.26  employment.  A caregiver who fails to comply is subject to 
  2.27  sanction.  A caregiver who voluntarily quits suitable employment 
  2.28  with good cause or who is laid off must notify the case manager 
  2.29  or designee within ten calendar days of the date employment 
  2.30  ended to schedule a meeting to revise the family support 
  2.31  agreement.  A caregiver who fails to notify the case manager or 
  2.32  designee within the required time or fails to attend a scheduled 
  2.33  meeting to revise the family support agreement is subject to 
  2.34  sanction.  If the family support agreement specifies job search, 
  2.35  the search is limited to three months to find a job related to 
  2.36  the caregiver's overall employment goal.  After three months, 
  3.1   the caregiver must take any suitable employment.  A caregiver 
  3.2   who fails to comply is subject to sanction. 
  3.3      Sec. 2.  [256.047] [EXPANSION OF MFIP TO RAMSEY COUNTY 
  3.4   (MFIP-R).] 
  3.5      Subdivision 1.  [MISSION STATEMENT.] The goal of MFIP-R 
  3.6   employment and pre-employment services is to help caregivers 
  3.7   increase their family income in a timely manner through paid 
  3.8   employment. 
  3.9      Subd. 2.  [SERVICE PROVIDING AGENCIES.] Employment and 
  3.10  pre-employment services must be offered by providers certified 
  3.11  by the commissioner of economic security who meet the standards 
  3.12  in section 268.871, subdivision 1.  County agencies must ensure 
  3.13  that all services, including contracted services, meet the 
  3.14  requirements of MFIP-R services according to section 256.048, 
  3.15  subdivision 6. 
  3.16     Subd. 3.  [STAFFING.] County agencies may hire MFIP-R 
  3.17  staff, which includes employment specialists, job developers, 
  3.18  and vocational counselors to provide pre-employment and 
  3.19  employment services described in section 256.048, subdivision 6, 
  3.20  and coordinate social and support services.  County agencies are 
  3.21  expected to ensure that staff providing employment and 
  3.22  pre-employment services have the necessary training and 
  3.23  experience to perform the specific services which they are 
  3.24  assigned to do. 
  3.25     Sec. 3.  [256.0475] [DEFINITIONS.] 
  3.26     Subdivision 1.  [EMPLOYABILITY PLAN.] "Employability plan" 
  3.27  means the plan developed by MFIP-R staff and the caregiver under 
  3.28  section 256.048. 
  3.29     Subd. 2.  [FAMILY SUPPORT AGREEMENT.] "Family support 
  3.30  agreement" means the subsection of the employability plan which 
  3.31  is limited to employment, education, employment and training 
  3.32  services, and scheduled meetings with MFIP-R staff.  For 
  3.33  mandatory caregivers, noncompliance with the family support 
  3.34  agreement may result in sanction. 
  3.35     Subd. 3.  [MANDATORY CAREGIVER.] "Mandatory caregiver" 
  3.36  means a caregiver who is required to develop a family support 
  4.1   agreement under section 256.048, and is not exempt under that 
  4.2   section. 
  4.3      Subd. 4.  [MFIP-R.] "MFIP-R" means the pre-employment and 
  4.4   employment program under section 256.048 provided to caregivers 
  4.5   assigned to the Minnesota family investment plan in Ramsey 
  4.6   county who receive financial assistance under sections 256.033, 
  4.7   256.034, and 256.036. 
  4.8      Sec. 4.  [256.048] [INCOME SUPPORT AND TRANSITION.] 
  4.9      Subdivision 1.  [EXPECTATIONS.] The requirement for a 
  4.10  caregiver to develop a family support agreement is tied to the 
  4.11  structure of the family and the length of time on assistance 
  4.12  according to paragraphs (a) to (c). 
  4.13     (a) In a family headed by a single adult parental caregiver 
  4.14  who has received AFDC, family general assistance, MFIP, or a 
  4.15  combination of AFDC, family general assistance, and MFIP 
  4.16  assistance for 12 or more months within the preceding 24 months, 
  4.17  the parental caregiver must be developing and complying with the 
  4.18  terms of the family support agreement commencing with the 13th 
  4.19  month of assistance. 
  4.20     (b) For a family with a minor parental caregiver or a 
  4.21  family whose parental caregiver is 18 or 19 years of age and 
  4.22  does not have a high school diploma or its equivalent, the 
  4.23  parental caregiver must be developing and complying with a 
  4.24  family support agreement concurrent with the receipt of 
  4.25  assistance.  The terms of the family support agreement must 
  4.26  include compliance with section 256.736, subdivision 3b.  If the 
  4.27  parental caregiver fails to comply with the terms of the family 
  4.28  support agreement, the sanctions in subdivision 4 apply.  When 
  4.29  the requirements in section 256.736, subdivision 3b, have been 
  4.30  met, a caregiver has fulfilled the caregiver's obligation.  
  4.31  County agencies must continue to offer MFIP-R services if the 
  4.32  caregiver wants to continue with an employability plan.  
  4.33  Caregivers who fulfill the requirements of section 256.736, 
  4.34  subdivision 3b, are subject to the expectations of paragraphs 
  4.35  (a) and (c). 
  4.36     (c) In a family with two adult parental caregivers, at 
  5.1   least one of whom has received AFDC, family general assistance, 
  5.2   MFIP, or a combination of AFDC, family general assistance, and 
  5.3   MFIP assistance for six or more months within the preceding 12 
  5.4   months, one parental caregiver must be developing and complying 
  5.5   with the terms of the family support agreement commencing with 
  5.6   the seventh month of assistance.  The family and MFIP-R staff 
  5.7   will designate the parental caregiver who will develop the 
  5.8   family support agreement based on which parent has the greater 
  5.9   potential to increase family income through immediate employment.
  5.10     Subd. 2.  [EXEMPTIONS.] A caregiver is exempt from 
  5.11  expectations as provided in paragraphs (a) and (b). 
  5.12     (a) Except for clause (4), which applies only for a 
  5.13  single-parent family, a caregiver in a single-parent or 
  5.14  two-parent family is exempt from the expectations of MFIP-R if 
  5.15  the caregiver is: 
  5.16     (1) ill, incapacitated, or 60 years of age or older; 
  5.17     (2) needed in the home because of the illness or incapacity 
  5.18  of another family member; 
  5.19     (3) the parent of a child under one year of age and is 
  5.20  personally providing care for the child.  This exemption does 
  5.21  not apply to the school attendance requirement for minor parents 
  5.22  or 18- and 19-year old parents as provided in section 256.736, 
  5.23  subdivision 3b, paragraphs (f) and (g); 
  5.24     (4) the parent of a child under six years of age and is 
  5.25  employed or participating in education or employment and 
  5.26  training services for 20 or more hours per week.  This exemption 
  5.27  does not apply to the school attendance requirement for minor 
  5.28  parents or 18- and 19-year-old parents as provided in section 
  5.29  256.736, subdivision 3b, paragraph (f), clause (5); 
  5.30     (5) working 30 hours or more per week or, if the number of 
  5.31  hours cannot be verified, earns weekly, at least the federal 
  5.32  minimum hourly wage rate multiplied by 30; 
  5.33     (6) in the second or third trimester of pregnancy; or 
  5.34     (7) not the natural parent, adoptive parent, or stepparent 
  5.35  of a minor child in the assistance unit. 
  5.36     (b) In a two-parent household, only one parent may be 
  6.1   exempt under paragraph (a), clause (2) or (3).  If paragraph 
  6.2   (a), clause (5), applies to either parent in a two-parent 
  6.3   family, the other parent is exempt.  In a two-parent household, 
  6.4   if the parent designated to develop a family support agreement 
  6.5   becomes exempt and the exemption is expected to last longer than 
  6.6   six months, then the second parent is required to develop a 
  6.7   family support agreement unless otherwise exempt under paragraph 
  6.8   (a). 
  6.9      Subd. 3.  [GOOD CAUSE FOR FAILURE TO COMPLY.] Caregivers 
  6.10  may claim the following reasons as good cause for failure to 
  6.11  comply with the expectations of MFIP-R employment and 
  6.12  pre-employment services: 
  6.13     (1) needed child care is not available; 
  6.14     (2) the job does not meet the definition of suitable 
  6.15  employment according to section 256.736, subdivision 1a, 
  6.16  paragraph (h); 
  6.17     (3) the parental caregiver is ill, incapacitated, or 
  6.18  injured; 
  6.19     (4) a family member is ill and needs care by the parental 
  6.20  caregiver; 
  6.21     (5) the parental caregiver is unable to secure the 
  6.22  necessary transportation; 
  6.23     (6) the parental caregiver is in an emergency situation; 
  6.24     (7) the schedule of compliance with the family support 
  6.25  agreement conflicts with judicial proceedings; 
  6.26     (8) the parental caregiver is already participating in 
  6.27  acceptable activities; 
  6.28     (9) the family support agreement requires an educational 
  6.29  program for a parent under the age of 20, but the educational 
  6.30  program is not offered in the school district; 
  6.31     (10) activities identified in the family support agreement 
  6.32  are not available; 
  6.33     (11) the parental caregiver is willing to accept suitable 
  6.34  employment but employment is not available; 
  6.35     (12) the parental caregiver documents other verifiable 
  6.36  impediments to compliance with the family support agreement 
  7.1   beyond the parental caregiver's control; or 
  7.2      (13) the family support agreement requires an educational 
  7.3   program for a parent under the age of 20, but the only available 
  7.4   school program requires round trip commuting time from the 
  7.5   custodial parent's residence of more than two hours by available 
  7.6   means of transportation, excluding the time necessary to 
  7.7   transport children to and from child care. 
  7.8      Subd. 4.  [SANCTION.] The county agency must reduce an 
  7.9   assistance unit's assistance payment by ten percent of the 
  7.10  transitional standard for the applicable family size when a 
  7.11  caregiver, who is not exempt from the expectations in this 
  7.12  section, fails to attend a mandatory briefing, fails to attend 
  7.13  scheduled meetings with MFIP-R staff, or fails to develop or 
  7.14  comply with the terms of the caregiver's family support 
  7.15  agreement.  MFIP-R staff must send caregivers a notice of intent 
  7.16  to sanction.  For the purpose of this section, "notice of intent 
  7.17  to sanction" means MFIP-R staff must provide written 
  7.18  notification to the caregiver that the caregiver is not 
  7.19  fulfilling the requirement to develop or comply with the family 
  7.20  support agreement.  This notification must inform the caregiver 
  7.21  of the right to request a conciliation conference within ten 
  7.22  days of the mailing of the notice of intent to sanction or the 
  7.23  right to request a fair hearing under section 256.045.  If a 
  7.24  caregiver requests a conciliation conference, the county agency 
  7.25  must postpone implementation of the sanction pending completion 
  7.26  of the conciliation conference.  If the caregiver does not 
  7.27  request a conciliation conference within ten calendar days of 
  7.28  the mailing of the notice of intent to sanction, the MFIP-R 
  7.29  staff must notify the county agency that the assistance payment 
  7.30  should be reduced. 
  7.31     Upon notification from MFIP-R staff that an assistance 
  7.32  payment should be reduced, the county agency must send a notice 
  7.33  of adverse action to the caregiver stating that the assistance 
  7.34  payment will be reduced in the next month following the ten-day 
  7.35  notice requirement and state the reason for the action.  For the 
  7.36  purpose of this section, "notice of adverse action" means the 
  8.1   county agency must send a notice of sanction, reduction, 
  8.2   suspension, denial, or termination of benefits before taking any 
  8.3   of those actions.  The caregiver may request a fair hearing 
  8.4   under section 256.045, upon notice of intent to sanction or 
  8.5   notice of adverse action, but the conciliation conference is 
  8.6   available only upon notice of intent to sanction. 
  8.7      Subd. 5.  [ORIENTATION.] The county agency must provide a 
  8.8   financial assistance orientation which supplies information to 
  8.9   caregivers about the MFIP-R and must encourage parental 
  8.10  caregivers to engage in activities to stabilize the family and 
  8.11  lead to employment and self-support. 
  8.12     Subd. 6.  [PRE-EMPLOYMENT AND EMPLOYMENT SERVICES.] The 
  8.13  county agency must provide services identified in clauses (1) to 
  8.14  (10).  Services include: 
  8.15     (1) a required briefing for all nonmandatory caregivers 
  8.16  assigned to MFIP-R, which includes a review of the information 
  8.17  presented at an earlier MFIP-R orientation pursuant to 
  8.18  subdivision 5, and an overview of services available under 
  8.19  MFIP-R pre-employment and employment services, an overview of 
  8.20  job search techniques, and the opportunity to volunteer for 
  8.21  MFIP-R job search activities and basic education services; 
  8.22     (2) a briefing for all mandatory caregivers assigned to 
  8.23  MFIP-R, which includes a review of the information presented at 
  8.24  an earlier MFIP-R orientation pursuant to subdivision 5, and an 
  8.25  overview of services available under MFIP-R pre-employment and 
  8.26  employment services; 
  8.27     (3) an MFIP assessment that meets the requirements of 
  8.28  section 256.736, subdivision 10, paragraph (a), clause (14), and 
  8.29  addresses caregivers' skills, abilities, interests, and needs; 
  8.30     (4) development, together with the caregiver, of an 
  8.31  employability plan and family support agreement according to 
  8.32  subdivision 7; 
  8.33     (5) coordination of services including child care, 
  8.34  transportation, education assistance, and social services 
  8.35  necessary to enable caregivers to fulfill the terms of the 
  8.36  employability plan and family support agreement; 
  9.1      (6) provision of full-time English as a second language 
  9.2   (ESL) classes; 
  9.3      (7) provision of a broad range of employment and 
  9.4   pre-employment services including basic skills testing, interest 
  9.5   and aptitude testing, career exploration, job search activities, 
  9.6   community work experience program under section 256.737, or 
  9.7   on-the-job training under section 256.738; 
  9.8      (8) evaluation of the caregiver's compliance with the 
  9.9   employability plan and family support agreement and support and 
  9.10  recognition of progress toward employment goals; 
  9.11     (9) provision of postemployment follow-up for up to six 
  9.12  months after caregivers become exempt or exit MFIP-R due to 
  9.13  employment if requested by the caregiver; and 
  9.14     (10) approval of education and training program activities. 
  9.15     Subd. 7.  [EMPLOYABILITY PLAN AND FAMILY SUPPORT 
  9.16  AGREEMENT.] (a) The caregiver and MFIP-R staff will develop an 
  9.17  employability plan and family support agreement.  The 
  9.18  employability plan includes the caregiver's overall employment 
  9.19  goal, activities necessary to reach that goal, a timeline for 
  9.20  each activity, and the support services provided by the agency.  
  9.21  All activities in the employability plan must contribute to the 
  9.22  caregiver's overall employment goal. 
  9.23     (b) The family support agreement is the enforceable section 
  9.24  of an employability plan for mandatory caregivers.  The family 
  9.25  support agreement must be limited to employment, education, or 
  9.26  employment and training services, and scheduled meetings with 
  9.27  MFIP-R staff.  The family support agreement must be signed by 
  9.28  both an MFIP-R staff and the parental caregiver.  
  9.29     (1) In developing an employability plan and family support 
  9.30  agreement, MFIP-R staff must discuss with the caregiver the 
  9.31  economic benefits under MFIP of taking available employment.  
  9.32  MFIP-R staff must provide examples of how different levels of 
  9.33  earnings increase available income. 
  9.34     (2) Activities in the family support agreement must enhance 
  9.35  the family's opportunities to increase its income in a timely 
  9.36  manner through paid employment. 
 10.1      (3) Each step of the family support agreement shall build 
 10.2   upon prior steps and facilitate progress toward the caregiver's 
 10.3   overall employment goal. 
 10.4      (4) Social services, such as mental health or chemical 
 10.5   dependency services, parenting education, or budget management, 
 10.6   can be included in the employability plan but not in the family 
 10.7   support agreement and are not subject to sanctions under 
 10.8   subdivision 4. 
 10.9      (5) The family support agreement must state the parental 
 10.10  caregiver's obligations and the standards for satisfactory 
 10.11  compliance with the requirements of MFIP-R.  
 10.12     Subd. 8.  [REQUIREMENT TO ATTEND BRIEFING.] All MFIP-R 
 10.13  caregivers are required to attend a mandatory briefing which 
 10.14  includes a review of the information presented at an earlier 
 10.15  MFIP-R orientation pursuant to subdivision 5, and an overview of 
 10.16  services available under MFIP-R pre-employment and employment 
 10.17  services. 
 10.18     Subd. 9.  [REQUIREMENT TO PARTICIPATE IN JOB SEARCH.] The 
 10.19  family support agreement for mandatory caregivers will include 
 10.20  30 hours per week of job search activity.  The family support 
 10.21  agreement for single parental caregivers with a child under the 
 10.22  age of six may require no more than 20 hours of job search 
 10.23  activity.  Job search requirements do not apply to minor 
 10.24  parental caregivers and parental caregivers under the age of 20 
 10.25  who must meet the educational requirement under section 256.736, 
 10.26  subdivision 3b. 
 10.27     Subd. 10.  [LENGTH OF JOB SEARCH.] Caregivers participating 
 10.28  in job search shall have eight weeks to find employment which is 
 10.29  consistent with the employment goal in the family support 
 10.30  agreement.  If after eight weeks of job search the parental 
 10.31  caregiver does not find employment consistent with the overall 
 10.32  employment goal, the caregiver must accept any suitable 
 10.33  employment. 
 10.34     Subd. 11.  [LEVEL OF EMPLOYMENT.] Caregivers participating 
 10.35  in job search are expected to seek and accept full-time 
 10.36  employment.  Any caregiver satisfies this requirement by working 
 11.1   at least 30 hours per week.  Single parents with a child under 
 11.2   the age of six satisfy the requirement by working at least 20 
 11.3   hours per week. 
 11.4      Subd. 12.  [CESSATION OF EMPLOYMENT.] Mandatory caregivers 
 11.5   who quit a job, are laid off, or are terminated must contact 
 11.6   MFIP-R staff within ten calendar days of the date the employment 
 11.7   ended to schedule a meeting to revise the family support 
 11.8   agreement to incorporate job search activities to obtain 
 11.9   suitable employment.  A caregiver who fails to contact MFIP-R 
 11.10  staff within ten calendar days, fails to attend a scheduled 
 11.11  meeting to revise the family support agreement, or fails to 
 11.12  accept an offer of suitable employment is subject to sanctions 
 11.13  under subdivision 4. 
 11.14     Subd. 13.  [EDUCATION AND TRAINING ACTIVITIES; BASIC 
 11.15  EDUCATION.] Basic education, including adult basic education, 
 11.16  high school or general equivalency diploma, or ESL may be 
 11.17  included in the family support agreement when a caregiver is 
 11.18  actively participating in job search activities as specified in 
 11.19  the family support agreement, or employed at least 12 hours per 
 11.20  week.  Six months of basic education activities may be included 
 11.21  in the family support agreement, and extension of basic 
 11.22  education activities is contingent upon review and approval by 
 11.23  MFIP-R staff.  
 11.24     Non-English speaking caregivers have the option to 
 11.25  participate in full-time ESL activities for up to six months 
 11.26  prior to participation in job search with approval of MFIP-R 
 11.27  staff. 
 11.28     Subd. 14.  [EDUCATION AND TRAINING ACTIVITIES; 
 11.29  POST-SECONDARY EDUCATION.] (a) Mandatory caregivers who become 
 11.30  exempt, and caregivers converted from STRIDE or ACCESS may have 
 11.31  post-secondary education included in the family support 
 11.32  agreement.  For individuals who are participating in an 
 11.33  educational program under this paragraph on a full-time basis as 
 11.34  determined by the institution, there is no work requirement.  
 11.35  For individuals participating in an educational program on a 
 11.36  part-time basis as determined by the institution, the minimum 
 12.1   number of hours that a participant must work shall be increased 
 12.2   in proportion to the number of credit hours being taken, up to a 
 12.3   maximum of 12 hours weekly of work.  
 12.4      (b) Conditions for approval of a post-secondary education 
 12.5   program include demonstration by the caregiver that: 
 12.6      (1) there is a market for full-time employees with this 
 12.7   education or training where the caregiver will or is willing to 
 12.8   reside upon completion of the program; 
 12.9      (2) the average wage level for employees with this 
 12.10  education or training is significantly greater than the 
 12.11  caregiver can earn without this education or training; 
 12.12     (3) the caregiver can meet the requirements for admission 
 12.13  into the program; and 
 12.14     (4) there is a reasonable expectation that the caregiver 
 12.15  will complete the training program based on such factors as the 
 12.16  caregiver's current MFIP assessment; previous education, 
 12.17  training, and work history; current motivation; and changes in 
 12.18  previous circumstances. 
 12.19     (c) A comparison must be made between income foregone by 
 12.20  delaying immediate entry into full-time paid employment while in 
 12.21  pursuit of education or training and the probable income which 
 12.22  will be earned following the education or training.  The 
 12.23  advantages and disadvantages to the family must be discussed 
 12.24  with respect to both options. 
 12.25     (d) Activities under this subdivision are limited to the 
 12.26  equivalent of two years of full-time education, with the 
 12.27  following exceptions: 
 12.28     (1) caregivers in subdivision 15; 
 12.29     (2) caregivers who have already obtained a post-secondary 
 12.30  degree.  These caregivers are limited to course work necessary 
 12.31  to upgrade skills, or obtain licensure or certification; 
 12.32     (3) extenuating circumstances that prohibit the caregiver 
 12.33  from completing the program within the equivalent of two years. 
 12.34     (e) Caregivers in education or training programs must 
 12.35  maintain satisfactory progress.  "Satisfactory progress" in an 
 12.36  education or training program means the caregiver remains in 
 13.1   good standing as defined by the education or training 
 13.2   institution and meets the requirements in the caregiver's MFIP-R 
 13.3   employability plan.  MFIP-R staff may withdraw approval of the 
 13.4   caregiver's employability plan when the caregiver does not 
 13.5   maintain satisfactory progress in the education or training 
 13.6   program. 
 13.7      Subd. 15.  [CONVERTED STRIDE AND ACCESS CASES.] Caregivers 
 13.8   with an employability plan from STRIDE or ACCESS must develop an 
 13.9   MFIP-R employability plan.  With approval of the MFIP-R staff, 
 13.10  the family support agreement for caregivers under this section 
 13.11  may include continuation of educational activities, up to a 
 13.12  baccalaureate degree, if initiated under STRIDE or ACCESS.  
 13.13  Caregivers who continue these activities must also participate 
 13.14  in job search or work at least 12 hours per week. 
 13.15     Subd. 16.  [REVISIONS TO FAMILY SUPPORT AGREEMENT.] The 
 13.16  caregiver may revise the family support agreement with approval 
 13.17  of MFIP-R staff.  
 13.18     Subd. 17.  [VOLUNTEERS FOR MFIP-R PRE-EMPLOYMENT AND 
 13.19  EMPLOYMENT SERVICES.] (a) Upon request, local agencies must 
 13.20  continue to offer MFIP-R services to:  
 13.21     (1) caregivers with a signed family support agreement who 
 13.22  become exempt under subdivision 2; and 
 13.23     (2) caregivers randomly assigned to MFIP during the 
 13.24  conversion period who have an active STRIDE or ACCESS plan. 
 13.25     (b) County agencies must also service the following 
 13.26  caregivers, as funding allows: 
 13.27     (1) second parent in a two-parent family; and 
 13.28     (2) caregivers who have not reached the timing for 
 13.29  mandatory participation. 
 13.30     (c) Volunteers under paragraph (a) may access all MFIP-R 
 13.31  services.  Volunteers under paragraph (b), clause (1), may 
 13.32  access MFIP-R job search and basic education services only.  
 13.33  Volunteers under paragraph (b), clause (2), may access only 
 13.34  MFIP-R job search services.  
 13.35     (d) Caregivers identified in this subdivision are voluntary 
 13.36  participants for MFIP-R pre-employment and employment services 
 14.1   and may not be sanctioned for failure to cooperate unless they 
 14.2   reach the timing of MFIP-R pre-employment and employment 
 14.3   services under subdivision 6, or are no longer exempt under 
 14.4   subdivision 2. 
 14.5      Subd. 18.  [CONCILIATION.] The county agency must inform 
 14.6   the mandatory parental caregiver of the option of a conciliation 
 14.7   conference when the mandatory parental caregiver receives a 
 14.8   notice of intent to sanction or cannot reach agreement with 
 14.9   MFIP-R staff about the contents or interpretation of the family 
 14.10  support agreement. 
 14.11     Conciliation procedures shall be available as provided in 
 14.12  section 256.736, subdivision 11, paragraph (c).  Upon receiving 
 14.13  a notice of intent to sanction, a caregiver may request a 
 14.14  hearing under section 256.045 without exercising the option of a 
 14.15  conciliation conference. 
 14.16     Subd. 19.  [CHILD CARE.] The commissioner shall ensure that 
 14.17  each MFIP caregiver who is employed or is developing or is 
 14.18  engaged in activities identified in an employability plan under 
 14.19  subdivision 7, and who needs assistance with child care costs to 
 14.20  be employed or to develop or comply with the terms for an 
 14.21  employability plan, receives a child care subsidy through child 
 14.22  care money appropriated for the MFIP.  The subsidy must cover 
 14.23  all actual child care costs for eligible hours up to the maximum 
 14.24  rate allowed under section 256H.15.  A caregiver who is in the 
 14.25  assistance unit and leaves the program as a result of increased 
 14.26  earnings from employment, and needs child care assistance to 
 14.27  remain employed, is entitled to extended child care assistance 
 14.28  as provided under United States Code, title 42, section 
 14.29  602(g)(1)(a)(ii), on a copayment basis. 
 14.30     Subd. 20.  [HEALTH CARE.] A family leaving the program as a 
 14.31  result of increased earnings from employment is eligible for 
 14.32  extended medical assistance as provided under Public Law Number 
 14.33  100-485, section 303, as amended, and Public Law Number 101-239, 
 14.34  section 8015(b)(7). 
 14.35     Sec. 5.  [256.049] [APPLICABILITY.] 
 14.36     Section 256.035 will not apply to the expansion of MFIP 
 15.1   into Ramsey county (MFIP-R).  Sections 256.047 to 256.048 will 
 15.2   substitute for section 256.035 for the purposes of MFIP-R.  
 15.3   Sections 256.031 to 256.034, and 256.036, 256.0361, and 268.871 
 15.4   are applicable to MFIP-R insofar as they are not inconsistent 
 15.5   with sections 256.047 to 256.048.  Minnesota Rules, part 
 15.6   9500.4220, does not apply to MFIP-R.  Minnesota Rules, parts 
 15.7   9500.4000 to 9500.4210, and 9500.4230 to 9500.4340, are 
 15.8   applicable to the expansion of MFIP into Ramsey county insofar 
 15.9   as they are not inconsistent with sections 256.047 to 256.048. 
 15.10     Sec. 6.  Minnesota Statutes 1994, section 256.73, is 
 15.11  amended by adding a subdivision to read: 
 15.12     Subd. 3b.  [ELIGIBILITY NOT BARRED BY WORKING OVER 99 
 15.13  HOURS; PAST EMPLOYMENT HISTORY; 30-DAY WAITING PERIOD.] An 
 15.14  individual receiving assistance may work over 99 hours per month 
 15.15  and remain eligible for assistance, provided all other 
 15.16  requirements of the aid to families with dependent 
 15.17  children-unemployed parent program are met.  The applicant is 
 15.18  not required to demonstrate past employment history or 30 days 
 15.19  of prior unemployment to be eligible for AFDC-unemployed 
 15.20  parent.  This subdivision is effective upon federal approval and 
 15.21  implementation of the waiver under section 33, subdivision 4. 
 15.22     Sec. 7.  Minnesota Statutes 1994, section 256.73, is 
 15.23  amended by adding a subdivision to read: 
 15.24     Subd. 5a.  [PARENTING OR PREGNANT MINORS; RESTRICTION ON 
 15.25  ASSISTANCE WITH FEDERAL EXCEPTIONS.] (a) The definitions in this 
 15.26  paragraph only apply to this subdivision. 
 15.27     (1) "Minor parent" means an individual who: 
 15.28     (i) is under the age of 18; 
 15.29     (ii) has never been married or otherwise legally 
 15.30  emancipated; and 
 15.31     (iii) is either the natural parent of a dependent child 
 15.32  living in the same household or eligible for assistance paid to 
 15.33  a pregnant woman under subdivision 5. 
 15.34     (2) "Household of a parent, legal guardian, or other adult 
 15.35  relative" means the place of residence of: 
 15.36     (i) a natural or adoptive parent; 
 16.1      (ii) a legal guardian pursuant to appointment or acceptance 
 16.2   under section 260.242, 525.615, or 525.6165, and related laws; 
 16.3   or 
 16.4      (iii) another individual who is age 18 or over and related 
 16.5   to the minor parent as specified in Code of Federal Regulations, 
 16.6   title 45, section 233.90(c)(1)(v), provided that the residence 
 16.7   is maintained as a home for the minor parent and child under 
 16.8   Code of Federal Regulations, title 45, section 
 16.9   233.90(c)(1)(v)(B). 
 16.10     (3) "Adult-supervised supportive living arrangement" means 
 16.11  a private family setting which assumes responsibility for the 
 16.12  care and control of the minor parent and dependent child, or 
 16.13  other living arrangement, not including a public institution, 
 16.14  licensed by the commissioner of human services which ensures 
 16.15  that the minor parent receives adult supervision and supportive 
 16.16  services, such as counseling, guidance, independent living 
 16.17  skills training, or supervision in a family-like setting. 
 16.18     (b) A minor parent and the dependent child who is in the 
 16.19  care of the minor parent must reside in the household of a 
 16.20  parent, legal guardian, or other adult relative, or in an 
 16.21  adult-supervised supportive living arrangement in order to 
 16.22  receive AFDC unless: 
 16.23     (1) the minor parent has no living parent or legal guardian 
 16.24  whose whereabouts is known; 
 16.25     (2) no living parent or legal guardian of the minor parent 
 16.26  allows the minor parent to live in the parent's or legal 
 16.27  guardian's home; 
 16.28     (3) the minor parent lived apart from the minor parent's 
 16.29  own parent or legal guardian for a period of at least one year 
 16.30  before either the birth of the dependent child or the minor 
 16.31  parent's application for AFDC; 
 16.32     (4) the physical or emotional health or safety of the minor 
 16.33  parent or dependent child would be jeopardized if the minor 
 16.34  parent and the dependent child resided in the same residence 
 16.35  with the minor parent's parent or legal guardian; 
 16.36     (5) the minor parent and dependent child have, on the 
 17.1   effective date of this section, been living independently as 
 17.2   part of an approved social services plan for less than one year; 
 17.3   or 
 17.4      (6) an adult supervised supportive living arrangement is 
 17.5   not available for the minor parent and the dependent child in 
 17.6   the county in which the minor currently resides.  If an adult 
 17.7   supervised supportive living arrangement become available within 
 17.8   the county, the minor parent and child must reside in that 
 17.9   arrangement in order to continue receiving AFDC. 
 17.10     (c) Minor applicants must be informed orally and in writing 
 17.11  about the eligibility requirements and their rights and 
 17.12  obligations under the AFDC program.  The county must advise the 
 17.13  minor of the possible exemptions and specifically ask whether 
 17.14  one or more of these exemptions is applicable.  If the minor 
 17.15  alleges one or more of these exemptions, then the county must 
 17.16  assist the minor in obtaining the necessary verifications to 
 17.17  determine whether or not these exemptions apply. 
 17.18     (d) If a minor parent alleges or the county worker suspects 
 17.19  that paragraph (b), clause (4), applies, the county worker must 
 17.20  make a referral to child protective services, and child 
 17.21  protective services must determine that the home is not safe due 
 17.22  to alleged maltreatment or that protective services are needed 
 17.23  in order for the minor parent to fall under the exception in 
 17.24  paragraph (b), clause (4).  A new determination by the county 
 17.25  worker is not necessary if one has been made within the last six 
 17.26  months, unless there has been a significant change in 
 17.27  circumstances which justifies a new referral and determination. 
 17.28     (e) If a minor parent is not living with a parent or legal 
 17.29  guardian due to paragraph (b), clause (1), (2), or (4), the 
 17.30  minor parent must reside in a living arrangement that meets the 
 17.31  standards of paragraph (a), clause (3). 
 17.32     (f) AFDC must be paid in the form of a protective payment 
 17.33  on behalf of the minor parent and dependent child to the minor 
 17.34  parent's parent, legal guardian, or other adult relative, when 
 17.35  the minor parent is living with the minor parent's parent, legal 
 17.36  guardian, or other adult relative, in accordance with Code of 
 18.1   Federal Regulations, title 45, section 234.60. 
 18.2      Sec. 8.  Minnesota Statutes 1994, section 256.73, 
 18.3   subdivision 8, is amended to read: 
 18.4      Subd. 8.  [RECOVERY OF OVERPAYMENTS.] (a) Except as 
 18.5   provided in subdivision 8a, if an amount of aid to families with 
 18.6   dependent children assistance is paid to a recipient in excess 
 18.7   of the payment due, it shall be recoverable by the county 
 18.8   agency.  The agency shall give written notice to the recipient 
 18.9   of its intention to recover the overpayment. 
 18.10     (b) When an overpayment occurs, the county agency shall 
 18.11  recover the overpayment from a current recipient by reducing the 
 18.12  amount of aid payable to the assistance unit of which the 
 18.13  recipient is a member for one or more monthly assistance 
 18.14  payments until the overpayment is repaid.  All county agencies 
 18.15  in the state shall reduce the assistance payment by three 
 18.16  percent of the assistance unit's standard of need or the amount 
 18.17  of the monthly payment, whichever is less, for all overpayments 
 18.18  whether or not the overpayment is due solely to agency error.  
 18.19  If the overpayment is due solely to having wrongfully obtained 
 18.20  assistance, whether based on a court order, the finding of an 
 18.21  administrative fraud disqualification hearing or a waiver of 
 18.22  such a hearing, or a confession of judgment containing an 
 18.23  admission of an intentional program violation, the amount of 
 18.24  this reduction shall be ten percent.  In cases when there is 
 18.25  both an overpayment and underpayment, the county agency shall 
 18.26  offset one against the other in correcting the payment. 
 18.27     (c) Overpayments may also be voluntarily repaid, in part or 
 18.28  in full, by the individual, in addition to the above aid 
 18.29  reductions, until the total amount of the overpayment is repaid. 
 18.30     (d) The county agency shall make reasonable efforts to 
 18.31  recover overpayments to persons no longer on assistance in 
 18.32  accordance with standards adopted in rule by the commissioner of 
 18.33  human services.  The county agency need not attempt to recover 
 18.34  overpayments of less than $35 paid to an individual no longer on 
 18.35  assistance if the individual does not receive assistance again 
 18.36  within three years, unless the individual has been convicted of 
 19.1   fraud under section 256.98. 
 19.2      Sec. 9.  Minnesota Statutes 1994, section 256.73, is 
 19.3   amended by adding a subdivision to read: 
 19.4      Subd. 8a.  [START WORK OFFSET.] An overpayment resulting 
 19.5   from earned income received in the first month of employment is 
 19.6   not recoverable by the county agency provided the aid to 
 19.7   families with dependent children assistance unit has not 
 19.8   voluntarily quit employment, without good cause under section 
 19.9   268.09, subdivision 1, paragraph (a), in the past two years.  A 
 19.10  "start work offset" for purposes of this subdivision is the 
 19.11  amount of the overpayment the assistance unit would otherwise be 
 19.12  required to repay to the county under subdivision 8.  This 
 19.13  subdivision is effective upon federal approval and 
 19.14  implementation of the waiver under section 33, subdivision 3. 
 19.15     Sec. 10.  [256.7355] [TEMPORARY PUBLIC SERVICE OR COMMUNITY 
 19.16  SERVICE JOBS.] 
 19.17     A participant working in a temporary public service or 
 19.18  community service job for a public employer for more than 67 
 19.19  working days in a calendar year as part of a work program 
 19.20  established under this chapter is a public employee under 
 19.21  chapter 179A. 
 19.22     Sec. 11.  Minnesota Statutes 1994, section 256.736, 
 19.23  subdivision 3, is amended to read: 
 19.24     Subd. 3.  [REGISTRATION.] (a) To the extent permissible 
 19.25  under federal law, every caretaker or child is required to 
 19.26  register for employment and training services, as a condition of 
 19.27  receiving AFDC, unless the caretaker or child is: 
 19.28     (1) a child who is under age 16, a child age 16 or 17 who 
 19.29  is attending elementary or secondary school or a secondary level 
 19.30  vocational or technical school full time; 
 19.31     (2) ill, incapacitated, or age 60 or older; 
 19.32     (3) a person for whom participation in an employment and 
 19.33  training service would require a round trip commuting time by 
 19.34  available transportation of more than two hours; 
 19.35     (4) a person whose presence in the home is required because 
 19.36  of illness or incapacity of another member of the household; 
 20.1      (5) a caretaker or other caretaker relative of a child 
 20.2   under the age of three who personally provides full-time care 
 20.3   for the child.  In AFDC-UP cases, only one parent or other 
 20.4   relative may qualify for this exemption; 
 20.5      (6) a caretaker or other caretaker relative personally 
 20.6   providing care for a child under six years of age, except that 
 20.7   when child care is arranged for or provided, the caretaker or 
 20.8   caretaker relative may be required to register and participate 
 20.9   in employment and training services up to a maximum of 20 hours 
 20.10  per week.  In AFDC-UP cases, only one parent or other relative 
 20.11  may qualify for this exemption; 
 20.12     (7) a pregnant woman, if it has been medically verified 
 20.13  that the child is expected to be born within the next six 
 20.14  months; or 
 20.15     (8) employed at least 30 hours per week; or 
 20.16     (9) a person for whom lack of proficiency in English is a 
 20.17  barrier to employment, provided the person is attending an 
 20.18  available intensive program which lasts no longer than six 
 20.19  months and is designed to remedy the language deficiency.  
 20.20  Individuals who, because of advanced age and lack of ability, 
 20.21  are incapable of gaining proficiency in English, as determined 
 20.22  by the county social worker, shall continue to be exempt under 
 20.23  this subdivision and are not subject to the requirement that 
 20.24  they be participating in a language program. 
 20.25     (b) To the extent permissible by federal law, applicants 
 20.26  for benefits under the AFDC program are registered for 
 20.27  employment and training services by signing the application 
 20.28  form.  Applicants must be informed that they are registering for 
 20.29  employment and training services by signing the form.  Persons 
 20.30  receiving benefits on or after July 1, 1987, shall register for 
 20.31  employment and training services to the extent permissible by 
 20.32  federal law.  The caretaker has a right to a fair hearing under 
 20.33  section 256.045 with respect to the appropriateness of the 
 20.34  registration. 
 20.35     Sec. 12.  Minnesota Statutes 1994, section 256.736, 
 20.36  subdivision 3a, is amended to read: 
 21.1      Subd. 3a.  [PARTICIPATION.] (a) Except as provided under 
 21.2   paragraphs (b) and (c), participation in employment and training 
 21.3   services under this section is limited to the following 
 21.4   recipients:  
 21.5      (1) caretakers who are required to participate in a job 
 21.6   search under subdivision 14; 
 21.7      (2) custodial parents who are subject to the school 
 21.8   attendance or case management participation requirements under 
 21.9   subdivision 3b; 
 21.10     (3) caretakers whose participation in employment and 
 21.11  training services began prior to May 1, 1990, if the caretaker's 
 21.12  AFDC eligibility has not been interrupted for 30 days or more 
 21.13  and the caretaker's employability development plan has not been 
 21.14  completed; 
 21.15     (4) recipients who are members of a family in which the 
 21.16  youngest child is within two years of being ineligible for AFDC 
 21.17  due to age; 
 21.18     (5) custodial parents under the age of 24 who:  (i) have 
 21.19  not completed a high school education and who, at the time of 
 21.20  application for AFDC, were not enrolled in high school or in a 
 21.21  high school equivalency program; or (ii) have had little or no 
 21.22  work experience in the preceding year; 
 21.23     (6) recipients who have received AFDC for 36 or more months 
 21.24  out of the last 60 months; 
 21.25     (7) recipients who are participants in the self-employment 
 21.26  investment demonstration project under section 268.95; and 
 21.27     (8) recipients who participate in the new chance research 
 21.28  and demonstration project under contract with the department of 
 21.29  human services. 
 21.30     (b) If the commissioner determines that participation of 
 21.31  persons listed in paragraph (a) in employment and training 
 21.32  services is insufficient either to meet federal performance 
 21.33  targets or to fully utilize funds appropriated under this 
 21.34  section, the commissioner may, after notifying the chairs of the 
 21.35  senate family services committee, the house health and human 
 21.36  services committee, the family services division of the senate 
 22.1   family services and health care committees, and the human 
 22.2   services division of the house health and human services 
 22.3   committee, permit additional groups of recipients to participate 
 22.4   until the next meeting of the legislative advisory commission, 
 22.5   after which the additional groups may continue to enroll for 
 22.6   participation unless the legislative advisory commission 
 22.7   disapproves the continued enrollment.  The commissioner shall 
 22.8   allow participation of additional groups in the following order 
 22.9   only as needed to meet performance targets or fully utilize 
 22.10  funding for employment and training services under this section: 
 22.11     (1) recipients who have received 24 or more months of AFDC 
 22.12  out of the previous 48 months; and 
 22.13     (2) recipients who have not completed a high school 
 22.14  education or a high school equivalency program. 
 22.15     (c) To the extent of money appropriated specifically for 
 22.16  this paragraph, the commissioner may permit AFDC caretakers who 
 22.17  are not eligible for participation in employment and training 
 22.18  services under the provisions of paragraph (a) or (b) to 
 22.19  participate.  Money must be allocated to county agencies based 
 22.20  on the county's percentage of participants statewide in services 
 22.21  under this section in the prior calendar year.  Caretakers must 
 22.22  be selected on a first-come, first-served basis from a waiting 
 22.23  list of caretakers who volunteer to participate.  The 
 22.24  commissioner may, on a quarterly basis, reallocate unused 
 22.25  allocations to county agencies that have sufficient volunteers.  
 22.26  If funding under this paragraph is discontinued in future fiscal 
 22.27  years, caretakers who began participating under this paragraph 
 22.28  must be deemed eligible under paragraph (a), clause (3). 
 22.29     (d) Participants who are eligible to enroll in the STRIDE 
 22.30  program under one of the categories of this subdivision are 
 22.31  required to cooperate with the assessment and employability plan 
 22.32  development, and to meet the terms of their employability plan.  
 22.33  Failure to comply, without good cause, shall result in the 
 22.34  imposition of sanctions as specified in subdivision 4, clause 
 22.35  (6). 
 22.36     Sec. 13.  Minnesota Statutes 1994, section 256.736, 
 23.1   subdivision 4a, is amended to read: 
 23.2      Subd. 4a.  [NOTICE, CONCILIATION, AND RIGHT OF APPEAL.] If 
 23.3   the employment and training service provider determines that the 
 23.4   caretaker has failed or refused, without good cause, to 
 23.5   cooperate or accept employment, the employment and training 
 23.6   service provider shall issue to the caretaker a written notice 
 23.7   of its determination of noncooperation or refusal to accept 
 23.8   employment.  The notice must include a detailed explanation of 
 23.9   the reason for the determination and must specify the 
 23.10  consequences for failure or refusal to cooperate or accept 
 23.11  employment, the actions which the employment and training 
 23.12  service provider believes are necessary for the caretaker to 
 23.13  comply with the employment and training program, and the right 
 23.14  to request, within ten days of receipt of the date the notice 
 23.15  was mailed or hand delivered, a conciliation conference.  The 
 23.16  employment and training service provider or the county agency 
 23.17  must conduct a conciliation conference within five days of a 
 23.18  timely request.  If the dispute between the employment and 
 23.19  training service provider and the caretaker is not resolved in 
 23.20  the conciliation conference or a request for a conciliation 
 23.21  conference is not made within the required time, then the 
 23.22  employment and training service provider shall notify the county 
 23.23  board of a caretaker's failure without good cause to cooperate 
 23.24  or accept employment.  Unless the county agency has evidence to 
 23.25  the contrary, the county agency shall implement the sanction 
 23.26  provisions of subdivision 4.  Any determination, action, or 
 23.27  inaction on the part of the county board relating to a 
 23.28  caretaker's participation under section 256.736 is subject to 
 23.29  the notice and hearing procedures in section 256.045, and Code 
 23.30  of Federal Regulations, title 45, section 205.10. 
 23.31     Sec. 14.  Minnesota Statutes 1994, section 256.736, 
 23.32  subdivision 5, is amended to read: 
 23.33     Subd. 5.  [EXTENSION OF EMPLOYMENT AND TRAINING 
 23.34  OPPORTUNITIES.] The commissioner of human services shall 
 23.35  cooperate with the commissioner of economic security and the 
 23.36  commissioner of trade and economic development to extend the 
 24.1   availability of training and employment opportunities on a 
 24.2   statewide basis and to assist local employment advisory groups 
 24.3   convened under this subdivision.  The county welfare agency may 
 24.4   convene an employment advisory group which may consist of 
 24.5   representatives from the local chamber of commerce, from major 
 24.6   area employers, from private and public collective bargaining 
 24.7   units, from secondary and post-secondary educational 
 24.8   institutions in the community, and from job services offices 
 24.9   operated by the commissioner of economic security under chapter 
 24.10  268.  The county welfare agency shall work with the local 
 24.11  employment advisory group to maximize the job opportunities for 
 24.12  welfare clients.  In a county where a private industry council 
 24.13  has been established, the county welfare agency may work with 
 24.14  the council to maximize job opportunities in lieu of or in 
 24.15  addition to convening an employment advisory group. 
 24.16     Sec. 15.  Minnesota Statutes 1994, section 256.736, 
 24.17  subdivision 10, is amended to read: 
 24.18     Subd. 10.  [COUNTY DUTIES.] (a) To the extent of available 
 24.19  state appropriations, county boards shall:  
 24.20     (1) refer all mandatory and eligible volunteer caretakers 
 24.21  permitted to participate under subdivision 3a to an employment 
 24.22  and training service provider for participation in employment 
 24.23  and training services; 
 24.24     (2) identify to the employment and training service 
 24.25  provider the target group of which the referred caretaker is a 
 24.26  member; 
 24.27     (3) provide all caretakers with an orientation which meets 
 24.28  the requirements in subdivisions 10a and 10b; 
 24.29     (4) work with the employment and training service provider 
 24.30  to encourage voluntary participation by caretakers in the target 
 24.31  groups; 
 24.32     (5) work with the employment and training service provider 
 24.33  to collect data as required by the commissioner; 
 24.34     (6) to the extent permissible under federal law, require 
 24.35  all caretakers coming into the AFDC program to attend 
 24.36  orientation; 
 25.1      (7) encourage nontarget caretakers to develop a plan to 
 25.2   obtain self-sufficiency; 
 25.3      (8) notify the commissioner of the caretakers required to 
 25.4   participate in employment and training services; 
 25.5      (9) inform appropriate caretakers of opportunities 
 25.6   available through the head start program and encourage 
 25.7   caretakers to have their children screened for enrollment in the 
 25.8   program where appropriate; 
 25.9      (10) provide transportation assistance using available 
 25.10  funds to caretakers who participate in employment and training 
 25.11  programs; 
 25.12     (11) ensure that orientation, job search, services to 
 25.13  custodial parents under the age of 20, educational activities 
 25.14  and work experience for AFDC-UP families, and case management 
 25.15  services are made available to appropriate caretakers under this 
 25.16  section, except that payment for case management services is 
 25.17  governed by subdivision 13; 
 25.18     (12) explain in its local service unit plan under section 
 25.19  268.88 how it will ensure that target caretakers determined to 
 25.20  be in need of social services are provided with such social 
 25.21  services.  The plan must specify how the case manager and the 
 25.22  county social service workers will ensure delivery of needed 
 25.23  services; 
 25.24     (13) to the extent allowed by federal laws and regulations, 
 25.25  provide a job search program as defined in subdivision 14, a 
 25.26  community work experience program as defined in section 256.737, 
 25.27  grant diversion as defined in section 256.739, and on-the-job 
 25.28  training as defined in section 256.738.  A county may also 
 25.29  provide another work and training program approved by the 
 25.30  commissioner and the secretary of the United States Department 
 25.31  of Health and Human Services.  Planning and approval for 
 25.32  employment and training services listed in this clause must be 
 25.33  obtained through submission of the local service unit plan as 
 25.34  specified under section 268.88.  A county is not required to 
 25.35  provide a community work experience program if the county agency 
 25.36  is successful in placing at least 40 percent of the monthly 
 26.1   average of all caretakers who are subject to the job search 
 26.2   requirements of subdivision 14 in grant diversion or on-the-job 
 26.3   training program; 
 26.4      (14) prior to participation, provide an assessment of each 
 26.5   AFDC recipient who is required or volunteers to participate in 
 26.6   an approved employment and training service.  The assessment 
 26.7   must include an evaluation of the participant's (i) educational, 
 26.8   child care, and other supportive service needs; (ii) skills and 
 26.9   prior work experience; and (iii) ability to secure and retain a 
 26.10  job which, when wages are added to child support, will support 
 26.11  the participant's family.  The assessment must also include a 
 26.12  review of the results of the early and periodic screening, 
 26.13  diagnosis and treatment (EPSDT) screening and preschool 
 26.14  screening under chapter 123, if available; the participant's 
 26.15  family circumstances; and, in the case of a custodial parent 
 26.16  under the age of 18, a review of the effect of a child's 
 26.17  development and educational needs on the parent's ability to 
 26.18  participate in the program; 
 26.19     (15) develop an employability development plan for each 
 26.20  recipient for whom an assessment is required under clause (14) 
 26.21  which:  (i) reflects the assessment required by clause (14); (ii)
 26.22  takes into consideration the recipient's physical capacity, 
 26.23  skills, experience, health and safety, family responsibilities, 
 26.24  place of residence, proficiency, child care and other supportive 
 26.25  service needs; (iii) is based on available resources and local 
 26.26  employment opportunities; (iv) specifies the services to be 
 26.27  provided by the employment and training service provider; (v) 
 26.28  specifies the activities the recipient will participate in, 
 26.29  including the worksite to which the caretaker will be assigned, 
 26.30  if the caretaker is subject to the requirements of section 
 26.31  256.737, subdivision 2; (vi) specifies necessary supportive 
 26.32  services such as child care; (vii) to the extent possible, 
 26.33  reflects the preferences of the participant; and (viii) includes 
 26.34  a written agreement between the county agency and the caretaker 
 26.35  that outlines a reasonable schedule for completing the plan, 
 26.36  including specific completion deadlines, and confirms that (A) 
 27.1   there is a market for full-time employees with this education or 
 27.2   training where the caretaker will or is willing to reside upon 
 27.3   completion of the program; (B) the average wage level for 
 27.4   employees with this education or training is greater than the 
 27.5   caretaker can earn without this education or training; (C) the 
 27.6   caretaker has the academic ability to successfully complete the 
 27.7   program; and (D) there is a reasonable expectation that the 
 27.8   caretaker will complete the training program based on such 
 27.9   factors as the caretaker's previous education, training, work 
 27.10  history, current motivation, and changes in previous 
 27.11  circumstances; and (ix) specifies the recipient's long-term 
 27.12  employment goal which shall lead to self-sufficiency; 
 27.13     (16) provide written notification to and obtain the written 
 27.14  or oral concurrence of the appropriate exclusive bargaining 
 27.15  representatives with respect to job duties covered under 
 27.16  collective bargaining agreements to and assure that no work 
 27.17  assignment under this section or sections 256.737, 256.738, and 
 27.18  256.739, or the Minnesota parents' fair share mandatory 
 27.19  community work experience program results in:  (i) termination, 
 27.20  layoff, or reduction of the work hours of an employee for the 
 27.21  purpose of hiring an individual under this section or sections 
 27.22  256.737, 256.738, and 256.739; (ii) the hiring of an individual 
 27.23  if any other person is on layoff from the same or a 
 27.24  substantially equivalent job; (iii) any infringement of the 
 27.25  promotional opportunities of any currently employed individual; 
 27.26  (iv) the impairment of existing contracts for services or 
 27.27  collective bargaining agreements; or (v) except for on-the-job 
 27.28  training under section 256.738, a participant filling an 
 27.29  established unfilled position vacancy.  If an exclusive 
 27.30  bargaining representative and a county or public service 
 27.31  employer disagree regarding whether job duties are covered under 
 27.32  a collective bargaining agreement, the exclusive bargaining 
 27.33  representative or the county or public service employer may 
 27.34  petition the bureau of mediation services, and the bureau shall 
 27.35  determine if the job duties are covered by a collective 
 27.36  bargaining agreement; and 
 28.1      (17) assess each caretaker in an AFDC-UP family who is 
 28.2   under age 25, has not completed high school or a high school 
 28.3   equivalency program, and who would otherwise be required to 
 28.4   participate in a work experience placement under section 256.737 
 28.5   to determine if an appropriate secondary education option is 
 28.6   available for the caretaker.  If an appropriate secondary 
 28.7   education option is determined to be available for the 
 28.8   caretaker, the caretaker must, in lieu of participating in work 
 28.9   experience, enroll in and meet the educational program's 
 28.10  participation and attendance requirements.  "Secondary 
 28.11  education" for this paragraph means high school education or 
 28.12  education designed to prepare a person to qualify for a high 
 28.13  school equivalency certificate, basic and remedial education, 
 28.14  and English as a second language education.  A caretaker 
 28.15  required to participate in secondary education who, without good 
 28.16  cause, fails to participate shall be subject to the provisions 
 28.17  of subdivision 4a and the sanction provisions of subdivision 4, 
 28.18  clause (6).  For purposes of this clause, "good cause" means the 
 28.19  inability to obtain licensed or legal nonlicensed child care 
 28.20  services needed to enable the caretaker to attend, inability to 
 28.21  obtain transportation needed to attend, illness or incapacity of 
 28.22  the caretaker or another member of the household which requires 
 28.23  the caretaker to be present in the home, or being employed for 
 28.24  more than 30 hours per week. 
 28.25     (b) Funds available under this subdivision may not be used 
 28.26  to assist, promote, or deter union organizing. 
 28.27     (c) A county board may provide other employment and 
 28.28  training services that it considers necessary to help caretakers 
 28.29  obtain self-sufficiency. 
 28.30     (d) Notwithstanding section 256G.07, when a target 
 28.31  caretaker relocates to another county to implement the 
 28.32  provisions of the caretaker's case management contract or other 
 28.33  written employability development plan approved by the county 
 28.34  human service agency, its case manager or employment and 
 28.35  training service provider, the county that approved the plan is 
 28.36  responsible for the costs of case management and other services 
 29.1   required to carry out the plan, including employment and 
 29.2   training services.  The county agency's responsibility for the 
 29.3   costs ends when all plan obligations have been met, when the 
 29.4   caretaker loses AFDC eligibility for at least 30 days, or when 
 29.5   approval of the plan is withdrawn for a reason stated in the 
 29.6   plan, whichever occurs first.  Responsibility for the costs of 
 29.7   child care must be determined under chapter 256H.  A county 
 29.8   human service agency may pay for the costs of case management, 
 29.9   child care, and other services required in an approved 
 29.10  employability development plan when the nontarget caretaker 
 29.11  relocates to another county or when a target caretaker again 
 29.12  becomes eligible for AFDC after having been ineligible for at 
 29.13  least 30 days. 
 29.14     Sec. 16.  Minnesota Statutes 1994, section 256.736, is 
 29.15  amended by adding a subdivision to read: 
 29.16     Subd. 14a.  [JOB SEARCH FOR AFDC RECIPIENTS.] (a) Each 
 29.17  county may establish and operate a job search program as 
 29.18  provided under this subdivision.  Unless exempt, a caretaker who 
 29.19  has received AFDC for at least 36 months or more out of the last 
 29.20  60 months must be referred to and begin participation in the job 
 29.21  search program under this subdivision, but is not required to 
 29.22  participate in the following programs under subdivision 14, 
 29.23  paragraph (d):  the work experience program under section 
 29.24  256.737, the on-the-job training program under section 256.738, 
 29.25  or the grant diversion program under section 256.739.  
 29.26     The caretaker is exempt from job search participation if: 
 29.27     (1) the caretaker is exempt from registration under 
 29.28  subdivision 3; or 
 29.29     (2) the caretaker is under age 25, has not completed a high 
 29.30  school diploma or an equivalent program, and is participating in 
 29.31  a secondary education program as defined in subdivision 10, 
 29.32  paragraph (a), clause (17), which is approved by the employment 
 29.33  and training service provider in the employability development 
 29.34  plan. 
 29.35     (b) The commissioners of human services and economic 
 29.36  security shall develop a job search program which must include a 
 30.1   maximum of 32 hours of training for participants in how to 
 30.2   search for employment, develop a personal resume, use job banks 
 30.3   and other employer identification methods, learn and practice 
 30.4   effective interviewing skills, become familiar with appropriate 
 30.5   work behaviors, find specific job openings, and apply for the 
 30.6   openings.  The employment and training service provider shall 
 30.7   report to the county agency if the caretaker fails to cooperate 
 30.8   with the job search requirement. 
 30.9      Sec. 17.  Minnesota Statutes 1994, section 256.736, 
 30.10  subdivision 16, is amended to read: 
 30.11     Subd. 16.  [ALLOCATION AND USE OF MONEY.] (a) State money 
 30.12  appropriated for employment and training services under this 
 30.13  section must be allocated to counties as specified in paragraphs 
 30.14  (b) to (j) (l). 
 30.15     (b) For purposes of this subdivision, "targeted caretaker" 
 30.16  means a recipient who: 
 30.17     (1) is a custodial parent under the age of 24 who:  (i) has 
 30.18  not completed a high school education and at the time of 
 30.19  application for AFDC is not enrolled in high school or in a high 
 30.20  school equivalency program; or (ii) had little or no work 
 30.21  experience in the preceding year; 
 30.22     (2) is a member of a family in which the youngest child is 
 30.23  within two years of being ineligible for AFDC due to age; or 
 30.24     (3) has received 36 months or more of AFDC over the last 60 
 30.25  months. 
 30.26     (c) One hundred percent of the money appropriated for case 
 30.27  management services as described in subdivision 11 must be 
 30.28  allocated to counties based on the average number of cases in 
 30.29  each county described in clause (1).  Money appropriated for 
 30.30  employment and training services as described in subdivision 1a, 
 30.31  paragraph (d), other than case management services, must be 
 30.32  allocated to counties as follows: 
 30.33     (1) Forty percent of the state money must be allocated 
 30.34  based on the average number of cases receiving AFDC in the 
 30.35  county which either have been open for 36 or more consecutive 
 30.36  months or have a caretaker who is under age 24 and who has no 
 31.1   high school or general equivalency diploma.  The average number 
 31.2   of cases must be based on counts of these cases as of March 31, 
 31.3   June 30, September 30, and December 31 of the previous year. 
 31.4      (2) Twenty percent of the state money must be allocated 
 31.5   based on the average number of cases receiving AFDC in the 
 31.6   county which are not counted under clause (1).  The average 
 31.7   number of cases must be based on counts of cases as of March 31, 
 31.8   June 30, September 30, and December 31 of the previous year.  
 31.9      (3) Twenty-five percent of the state money must be 
 31.10  allocated based on the average monthly number of assistance 
 31.11  units in the county receiving AFDC-UP for the period ending 
 31.12  December 31 of the previous year. 
 31.13     (4) Fifteen percent of the state money must be allocated at 
 31.14  the discretion of the commissioner based on participation levels 
 31.15  for target group members in each county. 
 31.16     (d) No more than 15 percent of the money allocated under 
 31.17  paragraph (b) and no more than 15 percent of the money allocated 
 31.18  under paragraph (c) may be used for administrative activities. 
 31.19     (e) At least 55 percent of the money allocated to counties 
 31.20  under paragraph (c) must be used for employment and training 
 31.21  services for caretakers in the target groups, and up to 45 
 31.22  percent of the money may be used for employment and training 
 31.23  services for nontarget caretakers.  One hundred percent of the 
 31.24  money allocated to counties for case management services must be 
 31.25  used to provide those services to caretakers in the target 
 31.26  groups. 
 31.27     (f) Money appropriated to cover the nonfederal share of 
 31.28  costs for bilingual case management services to refugees for the 
 31.29  employment and training programs under this section are 
 31.30  allocated to counties based on each county's proportion of the 
 31.31  total statewide number of AFDC refugee cases.  However, counties 
 31.32  with less than one percent of the statewide number of AFDC 
 31.33  refugee cases do not receive an allocation.  
 31.34     (g) Counties, the department of economic security, and 
 31.35  entities under contract with either the department of economic 
 31.36  security or the department of human services for provision of 
 32.1   Project STRIDE related services shall bill the commissioner of 
 32.2   human services for any expenditures incurred by the county, the 
 32.3   county's employment and training service provider, or the 
 32.4   department of economic security that may be reimbursed by 
 32.5   federal money.  The commissioner of human services shall bill 
 32.6   the United States Department of Health and Human Services and 
 32.7   the United States Department of Agriculture for the 
 32.8   reimbursement and appropriate the reimbursed money to the 
 32.9   county, the department of economic security, or employment and 
 32.10  training service provider that submitted the original bill.  The 
 32.11  reimbursed money must be used to expand employment and training 
 32.12  services. 
 32.13     (h) The commissioner of human services shall review county 
 32.14  expenditures of case management and employment and training 
 32.15  block grant money at the end of the third quarter of the 
 32.16  biennium and each quarter after that, and may reallocate 
 32.17  unencumbered or unexpended money allocated under this section to 
 32.18  those counties that can demonstrate a need for additional 
 32.19  money.  Reallocation of funds must be based on the formula set 
 32.20  forth in paragraph (a), excluding the counties that have not 
 32.21  demonstrated a need for additional funds. 
 32.22     (i) The county agency may continue to provide case 
 32.23  management and supportive services to a participant for up to 90 
 32.24  days after the participant loses AFDC eligibility and may 
 32.25  continue providing a specific employment and training service 
 32.26  for the duration of that service to a participant if funds for 
 32.27  the service are obligated or expended prior to the participant 
 32.28  losing AFDC eligibility. 
 32.29     (j) One hundred percent of the money appropriated for an 
 32.30  unemployed parent work experience program under section 256.737 
 32.31  must be allocated to counties based on the average monthly 
 32.32  number of assistance units in the county receiving AFDC-UP for 
 32.33  the period ending December 31 of the previous year. 
 32.34     (k) The commissioner may waive the requirement of paragraph 
 32.35  (e) that case management funds be spent only on case management 
 32.36  services in order to permit the development of a unified STRIDE 
 33.1   funding allocation for each county agency.  The unified 
 33.2   allocation may be expended by the county agency for case 
 33.3   management and employment and training activities in the 
 33.4   proportion determined necessary to streamline administrative 
 33.5   procedures and enhance program performance.  The commissioner, 
 33.6   in consultation with the commissioner of economic security, may 
 33.7   also grant a waiver from program spending limits in paragraphs 
 33.8   (d) and (e) to any county which can demonstrate increased 
 33.9   program effectiveness through a written request to the 
 33.10  department.  Counties which request a waiver of the spending 
 33.11  limits in paragraphs (d) and (e) shall amend their local service 
 33.12  unit plans and receive approval of the plans prior to commencing 
 33.13  the waiver.  The commissioners of human services and economic 
 33.14  security shall annually evaluate the effectiveness of all 
 33.15  waivers approved under this subdivision. 
 33.16     (l) Effective July 1, 1995, the commissioner of human 
 33.17  services shall begin developing a performance model for the 
 33.18  purpose of analyzing each county's performance in the provision 
 33.19  of STRIDE employment and training services.  Beginning February 
 33.20  1, 1997, and each year thereafter, the commissioner of human 
 33.21  services shall inform each county of the county's performance 
 33.22  based upon the following measures: 
 33.23     (1) employment rate at termination of STRIDE eligibility; 
 33.24     (2) wage rate at termination of STRIDE eligibility; 
 33.25     (3) average annual cost per placement calculated by 
 33.26  dividing the total STRIDE expenditures by the number of 
 33.27  participants placed in unsubsidized employment; 
 33.28     (4) AFDC-UP participation rate; 
 33.29     (5) percentage of 18- and 19-year-old custodial parents 
 33.30  subject to secondary education requirements of subdivision 3b 
 33.31  who complete secondary education or equivalent course of study; 
 33.32  and 
 33.33     (6) achievement of federally mandated JOBS participation 
 33.34  rate. 
 33.35     Performance measures (1), (2), and (3) shall be adjusted to 
 33.36  reflect local conditions. 
 34.1      County agencies must take the results of these performance 
 34.2   measures into consideration when selecting employment and 
 34.3   training service providers. 
 34.4      Sec. 18.  Minnesota Statutes 1994, section 256.736, is 
 34.5   amended by adding a subdivision to read: 
 34.6      Subd. 20.  [SPECIAL PROVISIONS FOR PERSONS PARTICIPATING IN 
 34.7   EDUCATIONAL PROGRAMS.] The provisions of this subdivision are 
 34.8   applicable to all STRIDE participants, including those subject 
 34.9   to subdivision 3b and section 256.737. 
 34.10     (a) When a high school equivalency program is selected as 
 34.11  the appropriate educational option for any recipient eligible to 
 34.12  participate under subdivision 3a, the recipient must participate 
 34.13  in high school equivalency classroom instruction for at least 
 34.14  six hours per week, meet the attendance and satisfactory 
 34.15  progress requirements as defined by the employment and training 
 34.16  service provider in consultation with the provider of the high 
 34.17  school equivalency program, and concurrently work a monthly 
 34.18  average of not less than 64 hours in employment paying at least 
 34.19  minimum wage or in documented volunteer work.  Hours spent 
 34.20  assisting at a licensed day care center shall count toward the 
 34.21  weekly hours needed to fulfill the employment or volunteer 
 34.22  requirement.  "Volunteer work" shall include attendance at 
 34.23  parenting skill classes.  Failure to comply, without good cause, 
 34.24  with this requirement shall result in the imposition of 
 34.25  sanctions as specified in subdivision 4, clause (6). 
 34.26     (b) Concurrent with participation in post-secondary 
 34.27  education or training approved in an employability development 
 34.28  plan under subdivision 10, paragraph (a), clause (15), the 
 34.29  participant must work at a minimum the number of hours per month 
 34.30  prescribed by this subdivision in employment paying at least 
 34.31  minimum wage or in documented volunteer work for a public or 
 34.32  nonprofit agency and agree to search for and accept any offer of 
 34.33  suitable employment upon completion of the education or 
 34.34  training.  For individuals who are participating in an 
 34.35  educational program under this paragraph on a full-time basis as 
 34.36  determined by the institution, there is no work requirement.  
 35.1   For individuals participating in an educational program on a 
 35.2   part-time basis as determined by the institution, the minimum 
 35.3   number of hours that a participant must work shall be increased 
 35.4   in proportion to the number of credit hours being taken, up to a 
 35.5   maximum of eight hours weekly of work.  
 35.6      During vacation periods of one month or more, the 16-hour 
 35.7   per week minimum work requirement shall apply.  Persons who are 
 35.8   subject to this vacation work requirement shall retain STRIDE 
 35.9   eligibility if they comply with the terms of their employability 
 35.10  development plan.  If the required employment results in 
 35.11  temporary AFDC ineligibility due to increased earnings and the 
 35.12  person becomes eligible again for AFDC at the end of the 
 35.13  vacation period, STRIDE eligibility shall be reinstated.  Hours 
 35.14  spent assisting at a licensed day care center shall count 
 35.15  towards the weekly hours needed to fulfill the employment or 
 35.16  volunteer requirement.  "Volunteer work" shall include 
 35.17  attendance at parenting skill classes.  Failure to work the 
 35.18  required number of hours per month, to search for employment, or 
 35.19  to accept a suitable offer of employment after completing 
 35.20  education or training will result in the imposition of sanctions 
 35.21  as specified in subdivision 4, clause (6).  
 35.22     Sec. 19.  Minnesota Statutes 1994, section 256.737, 
 35.23  subdivision 4, is amended to read: 
 35.24     Subd. 4.  [GOOD CAUSE.] A caretaker shall have good cause 
 35.25  for failure to cooperate if:  
 35.26     (1) the worksite participation adversely affects the 
 35.27  caretaker's physical or mental health as verified by a 
 35.28  physician, licensed or certified psychologist, physical 
 35.29  therapist, vocational expert, or by other sound medical 
 35.30  evidence; or 
 35.31     (2) the caretaker does not possess the skill or knowledge 
 35.32  required for the work; or 
 35.33     (3) the caretaker's lack of proficiency in English is a 
 35.34  barrier to employment, provided the caretaker is participating 
 35.35  in an available intensive program which lasts no longer that six 
 35.36  months and is designed to remedy the language deficiency.  
 36.1   Individuals who, because of advanced age and lack of ability, 
 36.2   are incapable of gaining proficiency in English, as determined 
 36.3   by the county social worker, shall continue to be exempt under 
 36.4   this subdivision and are not subject to the requirement that 
 36.5   they be participating in a language program. 
 36.6      Sec. 20.  Minnesota Statutes 1994, section 256.737, is 
 36.7   amended by adding a subdivision to read: 
 36.8      Subd. 7.  [INJURY PROTECTION FOR WORK EXPERIENCE 
 36.9   PARTICIPANTS.] (a) Payment of any claims resulting from an 
 36.10  alleged injury or death of a recipient participating in a 
 36.11  community work experience program established and operated by a 
 36.12  county pursuant to this section shall be determined in 
 36.13  accordance with paragraph (b).  This determination method 
 36.14  applies to work experience programs established under aid to 
 36.15  families with dependent children, work readiness, Minnesota 
 36.16  parents' fair share, and to obligors participating in community 
 36.17  services pursuant to section 518.551 in a county with an 
 36.18  approved community investment program. 
 36.19     (b) Claims of $1,000 or less that are subject to this 
 36.20  section shall be investigated by the county agency responsible 
 36.21  for supervising the work to determine if the claim is valid and 
 36.22  if the loss is covered by the claimant's insurance. 
 36.23     The investigating county agency shall submit all valid 
 36.24  claims to the department of human services.  The department 
 36.25  shall pay the portion of an approved claim that is not covered 
 36.26  by the claimant's insurance within three months of the date of 
 36.27  submission.  On or before February 1 of each legislative 
 36.28  session, the department shall submit to the appropriate 
 36.29  committees of the senate and the house of representatives a list 
 36.30  of claims paid during the preceding calendar year and shall be 
 36.31  reimbursed by legislative appropriation for any claims that 
 36.32  exceed the original appropriation provided to the department to 
 36.33  operate this program.  Any unspent money from this appropriation 
 36.34  shall carry over to the second year of the biennium, and any 
 36.35  unspent money remaining at the end of the second year shall be 
 36.36  returned to the state general fund. 
 37.1      A claim in excess of $1,000 and a claim that was not paid 
 37.2   by the department may be presented to, heard, and determined by 
 37.3   the appropriate committees of the senate and house of 
 37.4   representatives and, if approved, shall be paid under the 
 37.5   legislative claims procedure. 
 37.6      (c) Claims for permanent total disability, permanent 
 37.7   partial disability, and death claims shall be referred to the 
 37.8   commissioner of labor and industry for assessment.  The 
 37.9   commissioner of labor and industry shall verify the validity of 
 37.10  the claim and recommend compensation.  The compensation 
 37.11  recommended must afford the same protection for on-site injuries 
 37.12  at the same level and to the same extent as provided in chapter 
 37.13  176. 
 37.14     (d) Compensation paid under this section is limited to 
 37.15  reimbursement for medical expenses and compensation for 
 37.16  disability as impairment compensation or death.  No compensation 
 37.17  shall be paid under this section for pain and suffering or lost 
 37.18  wages.  Payments made under this section shall be reduced by any 
 37.19  proceeds received by the claimant from any insurance policy 
 37.20  covering the loss.  For the purposes of this section, "insurance 
 37.21  policy" does not include the medical assistance program 
 37.22  authorized under chapter 256B or the general assistance medical 
 37.23  care program authorized under chapter 256D. 
 37.24     (e) The procedure established by this section is exclusive 
 37.25  of all other legal, equitable, and statutory remedies against 
 37.26  the state, its political subdivisions, or employees of the state 
 37.27  or its political subdivisions.  The claimant shall not be 
 37.28  entitled to seek damages from any state or county insurance 
 37.29  policy or self-insurance program. 
 37.30     (f) A claim is not valid for purposes of this subdivision 
 37.31  if the local agency responsible for supervising the work cannot 
 37.32  verify: 
 37.33     (1) that appropriate safety training and information is 
 37.34  provided to all persons being supervised by the agency under 
 37.35  this subdivision; and 
 37.36     (2) that all programs involving work by those persons 
 38.1   comply with federal Occupational Safety and Health 
 38.2   Administration and state department of labor and industry safety 
 38.3   standards.  A claim that is not valid because of failure to 
 38.4   verify safety training or compliance with safety standards will 
 38.5   not be paid by the department of human services or through the 
 38.6   legislative claims process and must be heard, decided, and paid, 
 38.7   if appropriate, by the local government unit responsible for 
 38.8   supervising the work of the claimant. 
 38.9      (g) This program is effective July 1, 1995.  Claims may be 
 38.10  submitted on or after November 1, 1995. 
 38.11     Sec. 21.  Minnesota Statutes 1994, section 256.81, is 
 38.12  amended to read: 
 38.13     256.81 [COUNTY AGENCY, DUTIES.] 
 38.14     (1) The county agency shall keep such records, accounts, 
 38.15  and statistics in relation to aid to families with dependent 
 38.16  children as the state agency shall prescribe.  
 38.17     (2) Each grant of aid to families with dependent children 
 38.18  shall be paid to the recipient by the county agency unless paid 
 38.19  by the state agency.  Payment must be by check or electronic 
 38.20  means except in those instances in which the county agency, 
 38.21  subject to the rules of the state agency, determines that 
 38.22  payments for care shall be made to an individual other than the 
 38.23  parent or relative with whom the dependent child is living or to 
 38.24  vendors of goods and services for the benefit of the child 
 38.25  because such parent or relative is unable to properly manage the 
 38.26  funds in the best interests and welfare of the child.  There is 
 38.27  a presumption of mismanagement of funds whenever a recipient is 
 38.28  more than 30 days in arrears on payment of rent, except when the 
 38.29  recipient has withheld rent to enforce the recipient's right to 
 38.30  withhold the rent in accordance with federal, state, or local 
 38.31  housing laws.  In cases of mismanagement based solely on failure 
 38.32  to pay rent, the county may vendor the rent payments to the 
 38.33  landlord.  At the request of a recipient, the state or county 
 38.34  may make payments directly to vendors of goods and services, but 
 38.35  only for goods and services appropriate to maintain the health 
 38.36  and safety of the child, as determined by the county.  
 39.1      (3) The state or county may ask the recipient to give 
 39.2   written consent authorizing the state or county to provide 
 39.3   advance notice to a vendor before vendor payments of rent are 
 39.4   reduced or terminated.  Whenever possible under state and 
 39.5   federal laws and regulations and if the recipient consents, the 
 39.6   state or county shall provide at least 30 days notice to vendors 
 39.7   before vendor payments of rent are reduced or terminated.  If 30 
 39.8   days notice cannot be given, the state or county shall notify 
 39.9   the vendor within three working days after the date the state or 
 39.10  county becomes aware that vendor payments of rent will be 
 39.11  reduced or terminated.  When the county notifies a vendor that 
 39.12  vendor payments of rent will be reduced or terminated, the 
 39.13  county shall include in the notice that it is illegal to 
 39.14  discriminate on the grounds that a person is receiving public 
 39.15  assistance and the penalties for violation.  The county shall 
 39.16  also notify the recipient that it is illegal to discriminate on 
 39.17  the grounds that a person is receiving public assistance and the 
 39.18  procedures for filing a complaint.  The county agency may 
 39.19  develop procedures, including using the MAXIS system, to 
 39.20  implement vendor notice and may charge vendors a fee not 
 39.21  exceeding $5 to cover notification costs. 
 39.22     (4) A vendor payment arrangement is not a guarantee that a 
 39.23  vendor will be paid by the state or county for rent, goods, or 
 39.24  services furnished to a recipient, and the state and county are 
 39.25  not liable for any damages claimed by a vendor due to failure of 
 39.26  the state or county to pay or to notify the vendor on behalf of 
 39.27  a recipient, except under a specific written agreement between 
 39.28  the state or county and the vendor or when the state or county 
 39.29  has provided a voucher guaranteeing payment under certain 
 39.30  conditions.  
 39.31     (5) The county shall be paid from state and federal funds 
 39.32  available therefor the amount provided for in section 256.82.  
 39.33     (6) Federal funds available for administrative purposes 
 39.34  shall be distributed between the state and the counties in the 
 39.35  same proportion that expenditures were made except as provided 
 39.36  for in section 256.017. 
 40.1      (7) The affected county may require that assistance paid 
 40.2   under the AFDC emergency assistance program in the form of a 
 40.3   rental unit damage deposit, less any amount retained by the 
 40.4   landlord to pay for property damage, be returned to the county 
 40.5   when the assistance unit vacates the premises or paid to the 
 40.6   recipient's new landlord as a vendor payment.  The vendor 
 40.7   payment of returned funds shall not be considered a new use of 
 40.8   emergency assistance. 
 40.9      Sec. 22.  Minnesota Statutes 1994, section 256.979, is 
 40.10  amended by adding a subdivision to read: 
 40.11     Subd. 9.  [ACCRUAL OF SUPPORT OBLIGATIONS.] The 
 40.12  commissioner shall seek a waiver from the secretary of the 
 40.13  Department of Health and Human Services to enable the agency to 
 40.14  accrue child support payments received on behalf of both AFDC 
 40.15  and non-AFDC clients until the sum total of the money owed by 
 40.16  the state agency to the client is at least $10.  Obligors shall 
 40.17  be assessed a processing fee of $10 to be retained by the county 
 40.18  agency in every instance when both of the following conditions 
 40.19  exist: 
 40.20     (1) the obligor pays less than the required monthly support 
 40.21  obligation; and 
 40.22     (2) that reduced payment would result in a child support 
 40.23  payment to an AFDC or non-AFDC client of less than $10 for that 
 40.24  month. 
 40.25     Sec. 23.  Minnesota Statutes 1994, section 256.983, 
 40.26  subdivision 1, is amended to read: 
 40.27     Subdivision 1.  [PROGRAMS ESTABLISHED.] Within the limits 
 40.28  of available appropriations, and to the extent required or 
 40.29  authorized by applicable federal regulations, the commissioner 
 40.30  of human services shall require the establishment of fraud 
 40.31  prevention investigation programs in the seven counties 
 40.32  participating in the fraud prevention investigation pilot 
 40.33  project established under section 256.983, and in 11 additional 
 40.34  Minnesota counties with the largest aid to families with 
 40.35  dependent children program caseloads as of July 1, 1991.  If 
 40.36  funds are sufficient, the commissioner may also extend fraud 
 41.1   prevention investigation programs to:  (1) other counties that 
 41.2   have welfare fraud control programs already in place based on 
 41.3   enhanced funding contracts covering the fraud investigation 
 41.4   function; and (2) counties that have the largest AFDC caseloads 
 41.5   as of July 1, 1994, and are not currently participating in the 
 41.6   fraud prevention investigation pilot project.  The pilot project 
 41.7   may be expanded provided the expansion is budget neutral to the 
 41.8   state. 
 41.9      Sec. 24.  [256.986] [COUNTY COORDINATION OF FRAUD CONTROL 
 41.10  ACTIVITIES.] 
 41.11     (a) The county agency shall prepare and submit to the 
 41.12  commissioner of human services by January 1 of each year a plan 
 41.13  to coordinate county duties related to the prevention, 
 41.14  investigation, and prosecution of fraud in public assistance 
 41.15  programs.  Plans may be submitted on a voluntary basis prior to 
 41.16  January 1, 1996.  Each county must submit its first annual plan 
 41.17  prior to January 1, 1997. 
 41.18     (b) Within the limits of appropriations specifically made 
 41.19  available for this purpose, the commissioner may make grants to 
 41.20  counties submitting plans under paragraph (a) to implement 
 41.21  coordination activities. 
 41.22     Sec. 25.  Minnesota Statutes 1994, section 256D.05, 
 41.23  subdivision 6, is amended to read: 
 41.24     Subd. 6.  [ASSISTANCE FOR PERSONS WITHOUT A VERIFIED 
 41.25  RESIDENCE.] (a) For applicants or recipients of general 
 41.26  assistance, emergency general assistance, or work readiness 
 41.27  assistance who do not have a verified residence address, the 
 41.28  county agency may provide assistance using one or more of the 
 41.29  following methods: 
 41.30     (1) the county agency may provide assistance in the form of 
 41.31  vouchers or vendor payments and provide separate vouchers or 
 41.32  vendor payments for food, shelter, and other needs; 
 41.33     (2) the county agency may divide the monthly assistance 
 41.34  standard into weekly payments, whether in cash or by voucher or 
 41.35  vendor payment.  Nothing in this clause prevents the county 
 41.36  agency from issuing voucher or vendor payments for emergency 
 42.1   general assistance in an amount less than the standards of 
 42.2   assistance; and 
 42.3      (3) the county agency may determine eligibility and provide 
 42.4   assistance on a weekly basis.  Weekly assistance can be issued 
 42.5   in cash or by voucher or vendor payment and can be determined 
 42.6   either on the basis of actual need or by prorating the monthly 
 42.7   assistance standard.  
 42.8      (b) An individual may verify a residence address by 
 42.9   providing a driver's license; a state identification card; a 
 42.10  statement by the landlord, apartment manager, or homeowner 
 42.11  verifying that the individual is residing at the address; or 
 42.12  other written documentation approved by the commissioner. 
 42.13     (c) Notwithstanding the provisions of section 256D.06, 
 42.14  subdivision 1, if the county agency elects to provide assistance 
 42.15  on a weekly payment basis, the agency may not provide assistance 
 42.16  for a period during which no need is claimed by the individual 
 42.17  unless the individual has good cause for failing to claim need.  
 42.18  The individual must be notified, each time weekly assistance is 
 42.19  provided, that subsequent weekly assistance will not be issued 
 42.20  unless the individual claims need.  The advance notice required 
 42.21  under section 256D.10 does not apply to weekly assistance that 
 42.22  is withheld because the individual failed to claim need without 
 42.23  good cause.  
 42.24     (d) The county agency may not issue assistance on a weekly 
 42.25  basis to an applicant or recipient who has professionally 
 42.26  certified mental illness or mental retardation or a related 
 42.27  condition, or to an assistance unit that includes minor 
 42.28  children, unless requested by the assistance unit. 
 42.29     (e) For the purposes of paragraph (a), clauses (2) and (3), 
 42.30  the county agency may divide the monthly assistance standard as 
 42.31  follows:  $25 the first week, $50 each of the second and third 
 42.32  weeks, and the remainder the fourth week. 
 42.33     Sec. 26.  Minnesota Statutes 1994, section 256D.051, 
 42.34  subdivision 1, is amended to read: 
 42.35     Subdivision 1.  [WORK REGISTRATION.] (a) Except as provided 
 42.36  in this subdivision, persons who are residents of the state and 
 43.1   whose income and resources are less than the standard of 
 43.2   assistance established by the commissioner, but who are not 
 43.3   categorically eligible under section 256D.05, subdivision 1, are 
 43.4   eligible for the work readiness program for a maximum period of 
 43.5   six one calendar months month during any 12 consecutive calendar 
 43.6   month period, subject to the provisions of paragraph (d), 
 43.7   subdivision 3, and section 256D.052, subdivision 4.  The 
 43.8   person's eligibility period begins on the first day of the 
 43.9   calendar month following the date of application for assistance 
 43.10  or following the date all eligibility factors are met, whichever 
 43.11  is later; however, the person may voluntarily continue to 
 43.12  participate in work readiness services for up to three 
 43.13  additional consecutive months immediately following the last 
 43.14  month of benefits to complete the provisions of the person's 
 43.15  employability development plan.  After July 1, 1992, if 
 43.16  orientation is available within three weeks after the date 
 43.17  eligibility is determined, initial payment will not be made 
 43.18  until the registrant attends orientation to the work readiness 
 43.19  program.  Prior to terminating work readiness assistance the 
 43.20  county agency must provide advice on the person's eligibility 
 43.21  for general assistance medical care and must assess the person's 
 43.22  eligibility for general assistance under section 256D.05 to the 
 43.23  extent possible, using information in the case file, and 
 43.24  determine the person's eligibility for general assistance.  A 
 43.25  determination that the person is not eligible for general 
 43.26  assistance must be stated in the notice of termination of work 
 43.27  readiness benefits. 
 43.28     (b) Persons, families, and married couples who are not 
 43.29  state residents but who are otherwise eligible for work 
 43.30  readiness assistance may receive emergency assistance to meet 
 43.31  emergency needs. 
 43.32     (c) Except for family members who must participate in work 
 43.33  readiness services under the provisions of section 256D.05, 
 43.34  subdivision 1, clause (15), any person who would be defined for 
 43.35  purposes of the food stamp program as being enrolled or 
 43.36  participating at least half-time in an institution of higher 
 44.1   education or a post-secondary program is ineligible for the work 
 44.2   readiness program.  Post-secondary education does not include 
 44.3   the following programs:  (1) high school equivalency; (2) adult 
 44.4   basic education; (3) English as a second language; (4) literacy 
 44.5   training; and (5) skill-specific technical training that has a 
 44.6   course of study of less than three months, that is not paid for 
 44.7   using work readiness funds, and that is specified in the work 
 44.8   readiness employability development plan developed with the 
 44.9   recipient prior to the recipient beginning the training course. 
 44.10     (d) Notwithstanding the provisions of sections 256.045 and 
 44.11  256D.10, during the pendency of an appeal, work readiness 
 44.12  payments and services shall not continue to a person who appeals 
 44.13  the termination of benefits due to exhaustion of the period of 
 44.14  eligibility specified in paragraph (a) or (d). 
 44.15     Sec. 27.  [256D.0511] [LUMP-SUM PAYMENTS.] 
 44.16     A person who is temporarily ineligible for AFDC due to a 
 44.17  lump-sum payment is also ineligible for general assistance and 
 44.18  work readiness benefits for the same duration unless the person 
 44.19  demonstrates that the lump-sum payment was used for basic needs, 
 44.20  which includes education, training and work expenses necessary 
 44.21  to become economically self-sufficient, and medical expenses. 
 44.22     Sec. 28.  Minnesota Statutes 1994, section 256D.09, is 
 44.23  amended by adding a subdivision to read: 
 44.24     Subd. 5.  [VENDOR PAYMENTS TO LANDLORDS.] The affected 
 44.25  county may require that assistance paid under the emergency 
 44.26  general assistance program in the form of a rental unit damage 
 44.27  deposit, less any amount retained by the landlord to pay for 
 44.28  property damage, be returned to the county when the recipient 
 44.29  vacates the premises or paid to the recipient's new landlord as 
 44.30  a vendor payment.  The vendor payment of returned funds shall 
 44.31  not be considered a new use of emergency assistance. 
 44.32     Sec. 29.  Minnesota Statutes 1994, section 256D.09, is 
 44.33  amended by adding a subdivision to read: 
 44.34     Subd. 6.  [RECOVERY OF OVERPAYMENTS.] (a) If an amount of 
 44.35  general assistance, family general assistance, or work readiness 
 44.36  assistance is paid to a recipient in excess of the payment due, 
 45.1   it shall be recoverable by the county agency.  The agency shall 
 45.2   give written notice to the recipient of its intention to recover 
 45.3   the overpayment. 
 45.4      (b) When an overpayment occurs, the county agency shall 
 45.5   recover the overpayment from a current recipient by reducing the 
 45.6   amount of aid payable to the assistance unit of which the 
 45.7   recipient is a member, for one or more monthly assistance 
 45.8   payments, until the overpayment is repaid.  All county agencies 
 45.9   in the state shall reduce the assistance payment by three 
 45.10  percent of the assistance unit's standard of need or the amount 
 45.11  of the monthly payment, whichever is less, for all overpayments 
 45.12  whether or not the overpayment is due solely to agency error.  
 45.13  The amount of this reduction is ten percent if the overpayment 
 45.14  is due solely to having wrongfully obtained assistance whether 
 45.15  based on: 
 45.16     (1) a court order; 
 45.17     (2) the finding of an administrative fraud disqualification 
 45.18  hearing or the waiver of such a hearing; or 
 45.19     (3) a confession of judgment containing an admission of an 
 45.20  intentional program violation. 
 45.21     In cases when there is both an overpayment and 
 45.22  underpayment, the county agency shall offset one against the 
 45.23  other in correcting the payment. 
 45.24     (c) Overpayments may also be voluntarily repaid, in part or 
 45.25  in full, by the individual, in addition to the aid reductions 
 45.26  provided in this subdivision, until the total amount of the 
 45.27  overpayment is repaid. 
 45.28     (d) The county agency shall make reasonable efforts to 
 45.29  recover overpayments to persons no longer on assistance under 
 45.30  standards adopted in rule by the commissioner.  The county 
 45.31  agency need not attempt to recover overpayments of less than $35 
 45.32  paid to an individual no longer on assistance if the individual 
 45.33  does not receive assistance again within three years, unless the 
 45.34  individual has been convicted of violating section 256.98. 
 45.35     Sec. 30.  [JOINT EFFORT; INCENTIVES TO WORK.] 
 45.36     The commissioners of human services and revenue, in 
 46.1   consultation with the commissioner of economic security, must 
 46.2   jointly design a plan to provide the following monetary 
 46.3   supplements on a monthly basis to eligible working families:  
 46.4   federal earned income tax credit, Minnesota working family 
 46.5   credit under Minnesota Statutes, section 290.0671, property tax 
 46.6   refund under Minnesota Statutes, section 290A.04, and dependent 
 46.7   care credit under Minnesota Statutes, section 290.067.  The 
 46.8   commissioners of human services and revenue shall report the 
 46.9   recommendations for implementation to the chairs of the human 
 46.10  services policy and funding committees of the legislature by 
 46.11  January 1, 1996.  
 46.12     Sec. 31.  [EARLY REFUND OF REFUNDABLE TAX CREDITS.] 
 46.13     Notwithstanding any law to the contrary, the commissioner 
 46.14  of revenue may, beginning after July 1, 1996, refund on a 
 46.15  monthly basis to taxpayers selected by the commissioner of human 
 46.16  services an amount based on an estimate of how much the 
 46.17  refundable credits of Minnesota Statutes, sections 290.067, 
 46.18  290.0671, and 290A.04, generated in a month exceed the estimated 
 46.19  tax imposed under Minnesota Statutes, section 290.06, for the 
 46.20  month.  Refunds issued under this program will be considered a 
 46.21  tax on the taxpayer for the year in which the credits are 
 46.22  generated for the purposes of assessing and collecting 
 46.23  overpayments of the credits. 
 46.24     Sec. 32.  [MINNESOTA PARENTS' FAIR SHARE; MANDATORY 
 46.25  COMMUNITY WORK EXPERIENCE.] 
 46.26     The Minnesota parents' fair share pilot project shall 
 46.27  include a mandatory community work experience component for 
 46.28  participants who fail to comply with the requirements of the 
 46.29  pilot project. 
 46.30     Sec. 33.  [FEDERAL WAIVER PACKAGE.] 
 46.31     Subdivision 1.  [REQUEST.] The commissioner of human 
 46.32  services shall make a single request for the waivers listed in 
 46.33  this section to the United States Department of Health and Human 
 46.34  Services.  The waivers in the package support and encourage AFDC 
 46.35  recipients to move from reliance on welfare to 
 46.36  self-sufficiency.  The commissioner shall explore alternatives 
 47.1   to the federally required waiver evaluation process in an effort 
 47.2   to reduce evaluation costs and develop a cost-effective 
 47.3   evaluation process for the waiver package in this section.  
 47.4   While also exploring other possible alternatives, the 
 47.5   commissioner shall investigate the feasibility of the 
 47.6   following:  (1) one evaluation for the entire waiver package; 
 47.7   (2) consolidation of evaluation efforts for the same or similar 
 47.8   waiver with another state; and (3) completion of the evaluation 
 47.9   internally, possibly by the office of legislative auditor.  The 
 47.10  commissioner shall notify the revisor of statutes when each 
 47.11  waiver is approved by the federal government. 
 47.12     Subd. 2.  [WAIVER TO DISALLOW PARENTAL INCOME OF A PREGNANT 
 47.13  OR PARENTING MINOR LIVING WITH PARENTS.] The commissioner shall 
 47.14  seek the following waivers:  (1) from the filing unit 
 47.15  requirement in Code of Federal Regulations, title 45, section 
 47.16  206.10(a)(1)(vii), for minor parents living with a parent on 
 47.17  AFDC with other dependent children, resulting in the minor 
 47.18  parent receiving the same separate need standard available if 
 47.19  the minor parent's parent was not on AFDC; (2) to disregard all 
 47.20  parental income if the parent is on AFDC with other children; 
 47.21  and (3) if the parent is not on AFDC with other children, to 
 47.22  disregard income equal to 150 percent of the federal poverty 
 47.23  guideline for a family size not including the minor parent and 
 47.24  the minor parent's child and deem the remainder of income under 
 47.25  Code of Federal Regulations, title 45, section 
 47.26  233.20(a)(3)(xviii).  If the commissioner experiences barriers 
 47.27  or complications in preparing the waiver under this subdivision, 
 47.28  the commissioner shall report back to the legislature for 
 47.29  clarification without delaying the requests for other waivers 
 47.30  under this section.  The commissioner shall also explore the 
 47.31  impact of waivers under this subdivision on other programs and 
 47.32  report to the legislature potential waivers necessary to provide 
 47.33  consistency across programs.  The general policy in requesting 
 47.34  these waivers is to keep the family intact and give the minor 
 47.35  parent, the dependent child, and the grandparent an incentive to 
 47.36  continue living together as a family. 
 48.1      Subd. 3.  [WAIVER TO ALLOW START WORK OFFSET.] The 
 48.2   commissioner shall seek a waiver of the federal regulation which 
 48.3   requires the state to recover AFDC overpayments from the 
 48.4   assistance unit if the overpayment occurred in the month the 
 48.5   assistance unit started working and the overpayment resulted 
 48.6   from the assistance unit's increased earnings.  This "start work 
 48.7   offset" is available to an assistance unit every two years. 
 48.8      Subd. 4.  [WAIVER OF THE 100-HOUR RULE; WORK HISTORY 
 48.9   REQUIREMENT; 30-DAY WAITING PERIOD REQUIREMENT.] The 
 48.10  commissioner shall seek a waiver to eliminate the 100-hour rule 
 48.11  under Code of Federal Regulations, title 45, section 
 48.12  233.100(a)(1)(i); the eligibility requirement for past 
 48.13  employment history under Code of Federal Regulations, title 45, 
 48.14  section 233.100(a)(3)(iii); and the requirement for a 30-day 
 48.15  waiting period under Code of Federal Regulations, title 45, 
 48.16  section 233.100(a)(3)(i).  
 48.17     Subd. 5.  [WAIVER OF MOTOR VEHICLE RESOURCE LIMIT.] The 
 48.18  commissioner shall seek a waiver to increase the maximum equity 
 48.19  value of a licensed motor vehicle, which can be excluded as a 
 48.20  resource under the federal regulations, from $1,500 to the level 
 48.21  permitted under the federal Food Stamp Program.  This waiver is 
 48.22  essential for AFDC recipients who need reliable transportation 
 48.23  to participate in education, work, and training to become 
 48.24  self-sufficient. 
 48.25     Subd. 6.  [WAIVER TO ALLOW STUDENTS TO EARN INCOME.] The 
 48.26  commissioner shall seek a waiver of the federal regulation which 
 48.27  includes the earned income of dependent children and minor 
 48.28  caretakers who are attending school at least half time when 
 48.29  determining eligibility for AFDC.  The commissioner shall also 
 48.30  seek a waiver which allows savings set aside in a separate 
 48.31  account designated specifically for future education or 
 48.32  employment needs to be excluded from the AFDC resource limits. 
 48.33     Subd. 7.  [WAIVER OF GUARANTEED CHILD CARE FOR AFDC 
 48.34  RECIPIENTS AND RELATED STUDY.] The commissioner shall seek a 
 48.35  waiver of the requirement that child care be guaranteed to an 
 48.36  AFDC recipient under Minnesota Statutes, section 256H.05, for 
 49.1   the purposes of the program being evaluated under this section 
 49.2   which will allow an AFDC recipient to earn income without 
 49.3   terminating AFDC eligibility.  The commissioner shall examine, 
 49.4   within the commissioner's existing budget, the feasibility of 
 49.5   allowing public assistance recipients to work part-time, up to a 
 49.6   certain level, without affecting the AFDC grant, which will 
 49.7   provide the recipient with work experience, confidence in the 
 49.8   employment environment, and an opportunity to earn money in 
 49.9   order to move from AFDC and to self-sufficiency.  The 
 49.10  commissioner shall examine "fill-the-gap" budgeting and other 
 49.11  possibilities that allow a recipient to earn income without 
 49.12  terminating the AFDC grant.  The commissioner shall also explore 
 49.13  the ancillary issues related to allowing the earned income 
 49.14  exception, and report the different options available, the 
 49.15  feasibility of implementing each option, and the costs and 
 49.16  savings associated with the implementation of each option to the 
 49.17  1996 legislature. 
 49.18     Subd. 8.  [IMPLEMENTATION.] The commissioner shall 
 49.19  implement the program changes authorized under this subdivision 
 49.20  promptly upon approval of the waiver, provided all conditions 
 49.21  are met under Minnesota Statutes, section 256.01, subdivision 2, 
 49.22  clause (12). 
 49.23     Subd. 9.  [EVALUATION.] If any of the federal waivers are 
 49.24  granted, the commissioner shall evaluate the program changes 
 49.25  according to federal waiver requirements and, if necessary, 
 49.26  submit reports to the legislature within a time frame consistent 
 49.27  with the evaluation criteria that are established. 
 49.28     Subd. 10.  [ADDITIONAL WAIVER REQUEST FOR EMPLOYED DISABLED 
 49.29  PERSONS.] The commissioner shall seek a federal waiver in order 
 49.30  to implement a work incentive for disabled persons eligible for 
 49.31  medical assistance who are not residents of long-term care 
 49.32  facilities.  The waiver shall request authorization to establish 
 49.33  a medical assistance earned income disregard for employed 
 49.34  disabled persons equivalent to 200 percent of the federal 
 49.35  poverty guideline, except that when a disabled person's earned 
 49.36  income reaches 200 percent of the poverty level, the person 
 50.1   shall retain medical assistance eligibility and must contribute 
 50.2   to the costs of medical care on a sliding fee basis.  This 
 50.3   subdivision can be implemented only if there is federal 
 50.4   financial participation available for the waiver, and this 
 50.5   subdivision is subject to the conditions in Minnesota Statutes, 
 50.6   section 256.01, subdivision 2, clause (12). 
 50.7      Sec. 34.  [MAXIMIZING MAXIS; FRAUD RECOVERY EFFORTS.] 
 50.8      The commissioner of human services shall submit a plan to 
 50.9   the legislature by December 1, 1995, to maximize the capability 
 50.10  of the MAXIS system to aid in fraud control.  The commissioner 
 50.11  shall explore ways of using the MAXIS system to establish or 
 50.12  expand recovery efforts, certify debts, and collect overpayments 
 50.13  due to fraud, client error, or agency error in all state and 
 50.14  federally funded public assistance programs.  The commissioner 
 50.15  shall also make recommendations for sharing recovered revenues 
 50.16  under this program with counties to provide incentives to both 
 50.17  the state and county to begin or maintain aggressive recovery 
 50.18  efforts. 
 50.19     Sec. 35.  [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 
 50.20     The commissioner of human services shall issue a request 
 50.21  for proposals from counties to submit a plan for developing and 
 50.22  implementing a county-designed program.  The plan shall be for 
 50.23  first-time applicants for aid to families with dependent 
 50.24  children (AFDC) and family general assistance (FGA) and must 
 50.25  emphasize the importance of becoming employed and oriented into 
 50.26  the work force in order to become self-sufficient.  If the plan 
 50.27  is cost-neutral to the state and approved by the commissioner, 
 50.28  the county may implement the plan.  If the plan is approved by 
 50.29  the commissioner, but a federal waiver is necessary to implement 
 50.30  the plan, the commissioner shall apply for the necessary federal 
 50.31  waivers.  If the plan is approved but is not cost-neutral to the 
 50.32  state, the commissioner shall report to the 1996 legislature the 
 50.33  cost implications related to the county-designed plan. 
 50.34     Sec. 36.  [RESTRUCTURING OF PUBLIC ASSISTANCE.] 
 50.35     (a) The commissioners of human services and economic 
 50.36  security shall develop a plan for first-time applicants for aid 
 51.1   to families with dependent children (AFDC) and family general 
 51.2   assistance (FGA) in order to assure that, during the first six 
 51.3   months of eligibility, first-time applicants for AFDC and FGA 
 51.4   receive the following in lieu of AFDC or FGA benefits: 
 51.5      (1) immediate and enhanced job search and placement 
 51.6   activities; 
 51.7      (2) subsidized employment in the private or public sector 
 51.8   or a placement in a community service job that pays wages up to 
 51.9   the value of AFDC or FGA is required if an unsubsidized job is 
 51.10  not located within the first 60 days, or at an earlier date 
 51.11  recommended by the commissioners; 
 51.12     (3) priority help in establishing child support 
 51.13  enforcement; 
 51.14     (4) child care assistance for job search activities and 
 51.15  employment; 
 51.16     (5) eligibility for medical care; and 
 51.17     (6) vendor payments for need items included in the AFDC 
 51.18  consolidated standard of assistance under the state plan. 
 51.19     (b) The commissioners shall consider to what extent 
 51.20  exceptions should be made for: 
 51.21     (1) a person who is suffering from a professionally 
 51.22  certified permanent or temporary illness, injury, or incapacity 
 51.23  which is expected to continue for more than 30 days and which 
 51.24  prevents the person from obtaining or retaining employment; 
 51.25     (2) a person whose presence in the home on a substantially 
 51.26  continuous basis is required because of the professionally 
 51.27  certified illness, injury, incapacity, or the age of another 
 51.28  member of the household; 
 51.29     (3) a person who has been placed in, and is residing in, a 
 51.30  licensed or certified facility for purposes of physical or 
 51.31  mental health or rehabilitation or in an approved chemical 
 51.32  dependency domiciliary facility, if the placement is based on 
 51.33  illness or incapacity and a plan developed or approved by the 
 51.34  county agency through its director or designated representative; 
 51.35     (4) a person who resides in a shelter facility described in 
 51.36  section 256D.05, subdivision 3; 
 52.1      (5) a person not described in clause (1) or (3) who is 
 52.2   diagnosed by a licensed physician, licensed psychologist, or 
 52.3   other qualified professional as mentally retarded or mentally 
 52.4   ill and that condition prevents the person from obtaining or 
 52.5   retaining employment; 
 52.6      (6) a person who has an application pending for, or is 
 52.7   appealing termination of benefits from, the Social Security 
 52.8   Disability program or the program of Supplemental Security 
 52.9   Income for the aged, blind, and disabled, provided the person 
 52.10  has a professionally certified permanent or temporary illness, 
 52.11  injury, or incapacity which is expected to continue for more 
 52.12  than 30 days and which prevents the person from obtaining or 
 52.13  retaining employment; 
 52.14     (7) a person who is unable to obtain or retain employment 
 52.15  because advanced age significantly affects the person's ability 
 52.16  to seek or engage in substantial work; and 
 52.17     (8) a pregnant woman, if there is medical verification that 
 52.18  the child is expected to be born within the next six months. 
 52.19     (c) The commissioners shall present to the 1996 legislature 
 52.20  a statewide implementation plan, which includes employability 
 52.21  assessment criteria, feasibility of colocation of services, and 
 52.22  a description of the modifications that the commissioners 
 52.23  recommend, and will be phased in starting in counties designated 
 52.24  by the commissioners.  The plan must identify needed federal 
 52.25  waivers, evaluation criteria, state plan amendments, and other 
 52.26  approvals necessary under the AFDC and job opportunities and 
 52.27  basic skills (JOBS) programs.  The commissioners' plan must 
 52.28  include implementation of the project by October 1, 1996, or 
 52.29  after the necessary waivers are approved, whichever is later.  
 52.30     Sec. 37.  [RESTRUCTURING OF PROJECT STRIDE.] 
 52.31     The commissioners of human services and economic security 
 52.32  shall develop recommendations to restructure the program 
 52.33  entitled "success through reaching individual development and 
 52.34  employment" (STRIDE), under Minnesota Statutes, sections 256.73 
 52.35  to 256.739, to effectively and efficiently employ AFDC 
 52.36  recipients.  The commissioners shall identify modifications 
 53.1   necessary to implement the following principles: 
 53.2      (1) employment as the expected program outcome; 
 53.3      (2) training and education used primarily to enhance job 
 53.4   skills of employed participants; 
 53.5      (3) adequate support services available until the recipient 
 53.6   achieves employment that provides wages that enable the 
 53.7   recipient to be self-sufficient; 
 53.8      (4) aggressive development of job markets; 
 53.9      (5) extended post-placement follow-up to retain current 
 53.10  employment or move to better jobs; 
 53.11     (6) concurrent services which combine education and 
 53.12  employment; 
 53.13     (7) certain categories of AFDC recipients shall be required 
 53.14  to participate in STRIDE services after two years within the 
 53.15  limits of available funding; and 
 53.16     (8) failure to participate will result in termination of 
 53.17  assistance for noncompliant participants under the Family 
 53.18  Support Act of 1988. 
 53.19     The commissioners shall present to the 1996 legislature a 
 53.20  plan which includes specific categories of mandatory 
 53.21  participants and a description of the modifications that the 
 53.22  commissioners recommend within existing appropriations.  The 
 53.23  proposal must identify needed federal waivers, state plan 
 53.24  amendments, and other approvals necessary under the AFDC and 
 53.25  JOBS programs. 
 53.26     Sec. 38.  [CHILD CARE COOPERATIVES.] 
 53.27     A county may collaborate and coordinate efforts with school 
 53.28  districts, local youth centers, and other organizations to 
 53.29  provide cooperative child care services at a convenient location 
 53.30  and provide a low-cost alternative to day care services.  The 
 53.31  county may collaborate with the local school district or an 
 53.32  organization near a school.  The county is encouraged to explore 
 53.33  other nontraditional suitable locations for community day care 
 53.34  services and consult with parents and others who are interested 
 53.35  in establishing a day care cooperative. 
 53.36     Parents must be given an opportunity to participate in the 
 54.1   child care cooperatives.  Incentives offered to parents to 
 54.2   participate in the cooperative may include reduced day care 
 54.3   costs for an appropriate amount of time or a few hours of free 
 54.4   child care that provides a parent with a short respite. 
 54.5      For purposes of the collaborative effort, the county may 
 54.6   request a waiver of Minnesota Rules, part 9565.5025, subpart 2, 
 54.7   to implement the program.  This waiver would reduce the barriers 
 54.8   the applicant faces when applying for child care by specifically 
 54.9   allowing the applicant to initially declare income, instead of 
 54.10  being required to document income.  The county may also request 
 54.11  a waiver of rules related to day care requirements to provide 
 54.12  more flexibility in developing and implementing the cooperative. 
 54.13     Sec. 39.  [SEAMLESS CHILD CARE SYSTEM.] 
 54.14     The commissioner of human services shall examine the 
 54.15  feasibility of implementing a seamless child care system 
 54.16  statewide by July 1, 1996.  The seamless child care system must 
 54.17  provide a consistent approach to administering child care by 
 54.18  consolidating the different child care programs under Minnesota 
 54.19  Statutes, chapter 256H, and Minnesota Statutes, section 
 54.20  136A.125, streamlining all child care funding available under 
 54.21  Minnesota Statutes, chapter 256H, and Minnesota Statutes, 
 54.22  section 136A.125, and making consistent the laws and rules to 
 54.23  govern the child care system. 
 54.24     The commissioner shall report to the legislature by 
 54.25  November 1995.  The report must contain recommendations as to 
 54.26  how to develop and implement the system statewide, proposed 
 54.27  uniform eligibility criteria, a list of necessary federal 
 54.28  waivers, a list of the statutes and rules that must be repealed 
 54.29  or amended, and an estimate of state and county savings 
 54.30  resulting from the reduction in administrative duties. 
 54.31     Sec. 40.  [APPROPRIATIONS.] 
 54.32     Subdivision 1.  [APPROPRIATIONS.] The appropriations in 
 54.33  this section are from the general fund to the commissioner of 
 54.34  human services and are available for the biennium ending June 
 54.35  30, 1997. 
 54.36     Subd. 2.  [MINNESOTA PARENTS' FAIR SHARE PILOT 
 55.1   PROJECT.] $....... is appropriated for the following purposes: 
 55.2      (a) $....... for a grant to Ramsey county to enable the 
 55.3   county to expand the Minnesota parents' fair share pilot 
 55.4   project.  As a condition of this grant, the commissioner may 
 55.5   require a local match from the county.  
 55.6      (b) $....... each is added to the appropriations to Anoka 
 55.7   and Dakota counties for costs associated with the Minnesota 
 55.8   parents' fair share pilot project. 
 55.9      (c) $....... for costs associated with the mandatory 
 55.10  community work experience component of the Minnesota parents' 
 55.11  fair share pilot project. 
 55.12     Subd. 3.  [BASIC SLIDING FEE PROGRAM.] $....... is added to 
 55.13  the appropriation for the basic sliding fee program established 
 55.14  under Minnesota Statutes, section 256H.03. 
 55.15     Subd. 4.  [STRIDE.] $....... is appropriated for purposes 
 55.16  of Minnesota Statutes, section 256.736, subdivision 14. 
 55.17     Subd. 5.  [INJURY PROTECTION FOR WORK EXPERIENCE 
 55.18  PARTICIPANTS.] $....... is appropriated to pay for costs 
 55.19  associated with the claims arising from the injury protection 
 55.20  program, established under Minnesota Statutes, section 256.737. 
 55.21     Subd. 6.  [SOCIAL SERVICES EVALUATION.] $....... is 
 55.22  appropriated to pay for county costs associated with minor 
 55.23  caretaker evaluations. 
 55.24     Subd. 7.  [AFDC CHILD CARE.] $....... is added to the 
 55.25  appropriation to pay for child care costs incurred by job search 
 55.26  participants. 
 55.27     Subd. 8.  [FRAUD PREVENTION INVESTIGATION 
 55.28  PROGRAM.] $....... is added to the appropriation to expand the 
 55.29  number of counties participating in the fraud prevention 
 55.30  investigation program. 
 55.31     Subd. 9.  [AFDC GRANTS.] $....... is added to the 
 55.32  appropriation for the aid to families with dependent children 
 55.33  program. 
 55.34     Subd. 10.  [COUNTY COORDINATION OF FRAUD CONTROL 
 55.35  ACTIVITIES.] $....... is appropriated for grants to counties to 
 55.36  implement plans submitted under Minnesota Statutes, section 
 56.1   256.986. 
 56.2      Subd. 11.  [HUMAN SERVICES ADMINISTRATION.] $....... is 
 56.3   appropriated to pay for administrative costs. 
 56.4      Sec. 41.  [REPEALER.] 
 56.5      Minnesota Statutes 1994, section 256.734, is repealed. 
 56.6      Sec. 42.  [EFFECTIVE DATE.] 
 56.7      Sections 6 (99 Hour Rule), 9 (Start Work Offset), and 22 
 56.8   (Accrual of Child Support) are effective upon federal approval 
 56.9   of the applicable waivers.  Section 7 (Parenting Minors) is 
 56.10  effective October 1, 1995.  Section 16 (Job Search) is effective 
 56.11  January 1, 1996.  Sections 2, 3, 4, and 5 (MFIP-R) are effective 
 56.12  either July 1, 1996, or when the federal waiver is approved, 
 56.13  whichever is later.  Sections 11 (Registration) and 19 (Good 
 56.14  Cause) are effective July 1, 1996.  Section 33, subdivision 10 
 56.15  (Employed Disabled Persons), is effective July 1, 1996.