1.1                          A bill for an act 
  1.2             relating to human services; applying disregards to 
  1.3             stepparents' needs; adding persons who may register in 
  1.4             employment and training services; adding to the 
  1.5             assistance unit other persons not otherwise eligible 
  1.6             for AFDC; amending Minnesota Statutes 1994, sections 
  1.7             16B.08, subdivision 5; 171.07, by adding a 
  1.8             subdivision; 256.014, subdivision 1; 256.025, 
  1.9             subdivisions 1 and 2; 256.026; 256.73, subdivision 3a; 
  1.10            256.736, subdivisions 3 and 13; 256.74, subdivision 1; 
  1.11            256D.05, subdivision 7; 256D.36, subdivision 1; 
  1.12            256D.385; 256D.405, subdivision 3; 256D.425, 
  1.13            subdivision 1; 256D.435, subdivisions 1, 3, 4, 5, 6, 
  1.14            and by adding a subdivision; 256D.44, subdivisions 1, 
  1.15            2, 3, 4, 5, and 6; 256D.45, subdivision 1; 256D.46, 
  1.16            subdivisions 1 and 2; 256D.48, subdivision 1; 
  1.17            proposing coding for new law in Minnesota Statutes, 
  1.18            chapter 256; repealing Minnesota Statutes 1994, 
  1.19            sections 256.851; 256D.35, subdivisions 14 and 19; 
  1.20            256D.36, subdivision 1a; 256D.37; 256D.425, 
  1.21            subdivision 3; 256D.435, subdivisions 2, 7, 8, 9, and 
  1.22            10; and 256D.44, subdivision 7. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24     Section 1.  Minnesota Statutes 1994, section 16B.08, 
  1.25  subdivision 5, is amended to read: 
  1.26     Subd. 5.  [FEDERAL GENERAL SERVICES ADMINISTRATION AGENCY 
  1.27  PRICE SCHEDULES.] Notwithstanding anything in this chapter to 
  1.28  the contrary, the commissioner may, instead of soliciting bids, 
  1.29  contract for purchases with suppliers who have published 
  1.30  schedules of prices effective for sales to the General Services 
  1.31  Administration any federal agency of the United States.  These 
  1.32  contracts may be entered into, regardless of the amount of the 
  1.33  purchase price, if the commissioner considers them advantageous 
  1.34  and if the purchase price of all the commodities purchased under 
  2.1   the contract do not exceed the price specified by the schedule.  
  2.2      Sec. 2.  Minnesota Statutes 1994, section 171.07, is 
  2.3   amended by adding a subdivision to read: 
  2.4      Subd. 10.  [AGREEMENTS WITH OTHER AGENCIES.] The 
  2.5   commissioner of public safety is authorized to enter into 
  2.6   agreements with other agencies to issue cards to clients of 
  2.7   those agencies for use in their programs.  The cards may be 
  2.8   issued to persons who do not qualify for a Minnesota driver's 
  2.9   license or do not provide evidence of name and identity as 
  2.10  required by rule for a Minnesota identification card.  Persons 
  2.11  issued cards under this subdivision will meet the identification 
  2.12  verification requirements of the contracting agency. 
  2.13     The interagency agreement may include provisions for the 
  2.14  payment of the county fee provided in section 171.06, 
  2.15  subdivision 4, and the actual cost to manufacture the card. 
  2.16     Cards issued under this subdivision are not Minnesota 
  2.17  identification cards for the purposes defined in sections 
  2.18  48.512, 201.061, 201.161, 332.50, and 340A.503. 
  2.19     Sec. 3.  Minnesota Statutes 1994, section 256.014, 
  2.20  subdivision 1, is amended to read: 
  2.21     Subdivision 1.  [ESTABLISHMENT OF SYSTEMS.] The 
  2.22  commissioner of human services shall establish and enhance 
  2.23  computer systems necessary for the efficient operation of the 
  2.24  programs the commissioner supervises, including: 
  2.25     (1) management and administration of the food stamp and 
  2.26  income maintenance programs, including the electronic 
  2.27  distribution of benefits; 
  2.28     (2) management and administration of the child support 
  2.29  enforcement program; and 
  2.30     (3) administration of medical assistance and general 
  2.31  assistance medical care. 
  2.32     The commissioner shall distribute the nonfederal share of 
  2.33  the costs of operating and maintaining the systems to the 
  2.34  commissioner and to the counties participating in the system in 
  2.35  a manner that reflects actual system usage, except that the 
  2.36  nonfederal share of the costs of the MAXIS computer system and 
  3.1   child support enforcement systems shall be borne entirely by the 
  3.2   commissioner.  Development costs must not be assessed against 
  3.3   county agencies. 
  3.4      Sec. 4.  Minnesota Statutes 1994, section 256.025, 
  3.5   subdivision 1, is amended to read: 
  3.6      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  3.7   section, the following terms have the meanings given them.  
  3.8      (b) "Base amount" means the calendar year 1990 county share 
  3.9   of county agency expenditures for all of the programs specified 
  3.10  in subdivision 2, except for the programs in subdivision 2, 
  3.11  clauses (4), (7), and (13).  The 1990 base amount for 
  3.12  subdivision 2, clause (4), shall be reduced by one-seventh for 
  3.13  each county, and the 1990 base amount for subdivision 2, clause 
  3.14  (7), shall be reduced by seven-tenths for each county, and those 
  3.15  amounts in total shall be the 1990 base amount for group 
  3.16  residential housing in subdivision 2, clause (13).  
  3.17     (c) "County agency expenditure" means the total expenditure 
  3.18  or cost incurred by the county of financial responsibility for 
  3.19  the benefits and services for each of the programs specified in 
  3.20  subdivision 2 up to the amount required by statute or rule, and 
  3.21  excluding county optional costs which are not reimbursable with 
  3.22  state funds.  The term includes the federal, state, and county 
  3.23  share of costs for programs in which there is federal financial 
  3.24  participation.  For programs in which there is no federal 
  3.25  financial participation, the term includes the state and county 
  3.26  share of costs.  The term excludes county administrative costs, 
  3.27  unless otherwise specified.  
  3.28     (d) "Nonfederal share" means the sum of state and county 
  3.29  shares of costs of the programs specified in subdivision 2. 
  3.30     (e) The "county share of county agency expenditures growth 
  3.31  amount" is the amount by which the county share of county agency 
  3.32  expenditures in calendar years 1991 to 2000 has increased over 
  3.33  the base amount. 
  3.34     Sec. 5.  Minnesota Statutes 1994, section 256.025, 
  3.35  subdivision 2, is amended to read: 
  3.36     Subd. 2.  [COVERED PROGRAMS AND SERVICES.] The procedures 
  4.1   in this section govern payment of county agency expenditures for 
  4.2   benefits and services distributed under the following programs: 
  4.3      (1) aid to families with dependent children under sections 
  4.4   256.82, subdivision 1, and 256.935, subdivision 1; 
  4.5      (2) medical assistance under sections 256B.041, subdivision 
  4.6   5, and 256B.19, subdivision 1; 
  4.7      (3) general assistance medical care under section 256D.03, 
  4.8   subdivision 6; 
  4.9      (4) general assistance under section 256D.03, subdivision 
  4.10  2; 
  4.11     (5) work readiness under section 256D.03, subdivision 2, 
  4.12  for assistance cost incurred prior to July 1, 1995; 
  4.13     (6) emergency assistance under section 256.871, subdivision 
  4.14  6; 
  4.15     (7) Minnesota supplemental aid under section 256D.36, 
  4.16  subdivision 1; 
  4.17     (8) preadmission screening and alternative care grants; 
  4.18     (9) work readiness services under section 256D.051 for 
  4.19  employment and training services costs incurred prior to July 1, 
  4.20  1995; 
  4.21     (10) case management services under section 256.736, 
  4.22  subdivision 13, for case management service costs incurred prior 
  4.23  to July 1, 1995; 
  4.24     (11) general assistance claims processing, medical 
  4.25  transportation and related costs; 
  4.26     (12) medical assistance, medical transportation and related 
  4.27  costs; and 
  4.28     (13) group residential housing under section 256I.05, 
  4.29  subdivision 8, transferred from programs in clauses (4) and (7). 
  4.30     Sec. 6.  Minnesota Statutes 1994, section 256.026, is 
  4.31  amended to read: 
  4.32     256.026 [ANNUAL APPROPRIATION.] 
  4.33     (a) There shall be appropriated from the general fund to 
  4.34  the commissioner of human services in fiscal year 1994 1996 the 
  4.35  amount of $136,282,768 and in fiscal year 1997 and each fiscal 
  4.36  year thereafter the amount of $142,339,359, which is the sum of 
  5.1   the amount of human services aid determined for all counties in 
  5.2   Minnesota for calendar year 1992 under Minnesota Statutes 1992, 
  5.3   section 273.1398, subdivision 5a, before any adjustments for 
  5.4   calendar year 1991 $133,781,768.  
  5.5      (b) In addition to the amount in paragraph (a), there shall 
  5.6   also be annually appropriated from the general fund to the 
  5.7   commissioner of human services in fiscal years 1996, 1997, 1998, 
  5.8   1999, 2000, and 2001 the amount of $5,930,807 $5,574,241. 
  5.9      (c) The amounts appropriated under paragraphs (a) and (b) 
  5.10  shall be used with other appropriations to make payments 
  5.11  required under section 256.025 for fiscal year 1994 1996 and 
  5.12  thereafter. 
  5.13     Sec. 7.  Minnesota Statutes 1994, section 256.73, 
  5.14  subdivision 3a, is amended to read: 
  5.15     Subd. 3a.  [PERSONS INELIGIBLE.] No assistance shall be 
  5.16  given under sections 256.72 to 256.87:  
  5.17     (1) on behalf of any person who is receiving supplemental 
  5.18  security income under title XVI of the Social Security Act 
  5.19  unless permitted by federal regulations; 
  5.20     (2) for any month in which the assistance unit's gross 
  5.21  income, without application of deductions or disregards, exceeds 
  5.22  185 percent of the standard of need for a family of the same 
  5.23  size and composition; except that the earnings of a dependent 
  5.24  child who is a full-time student may be disregarded for six 
  5.25  months per calendar year and the earnings of a dependent child 
  5.26  that are derived from the jobs training and partnership act 
  5.27  (JTPA) may be disregarded for six months per calendar year.  
  5.28  These two earnings disregards cannot be combined to allow more 
  5.29  than a total of six months per calendar year when the earned 
  5.30  income of a full-time student is derived from participation in a 
  5.31  program under the JTPA.  If a stepparent's income is taken into 
  5.32  account in determining need, the disregards specified in section 
  5.33  256.74, subdivision 1a, shall be applied to determine income 
  5.34  available to the assistance unit before calculating the unit's 
  5.35  gross income for purposes of this paragraph;.  If a stepparent's 
  5.36  needs are included in the assistance unit as specified in 
  6.1   section 256.74, subdivision 1, the disregards specified in 
  6.2   section 256.74, subdivision 1, shall be applied. 
  6.3      (3) to any assistance unit for any month in which any 
  6.4   caretaker relative with whom the child is living is, on the last 
  6.5   day of that month, participating in a strike; 
  6.6      (4) on behalf of any other individual in the assistance 
  6.7   unit, nor shall the individual's needs be taken into account for 
  6.8   any month in which, on the last day of the month, the individual 
  6.9   is participating in a strike; 
  6.10     (5) on behalf of any individual who is the principal earner 
  6.11  in an assistance unit whose eligibility is based on the 
  6.12  unemployment of a parent when the principal earner, without good 
  6.13  cause, fails or refuses to accept employment, or to register 
  6.14  with a public employment office, unless the principal earner is 
  6.15  exempt from these work requirements. 
  6.16     Sec. 8.  Minnesota Statutes 1994, section 256.736, 
  6.17  subdivision 3, is amended to read: 
  6.18     Subd. 3.  [REGISTRATION.] (a) To the extent permissible 
  6.19  under federal law, every caretaker or child is required to 
  6.20  register for employment and training services, as a condition of 
  6.21  receiving AFDC, unless the caretaker or child is: 
  6.22     (1) a child who is under age 16, a child age 16 or 17 who 
  6.23  is attending elementary or secondary school or a secondary level 
  6.24  vocational or technical school full time; 
  6.25     (2) ill, incapacitated, or age 60 or older; 
  6.26     (3) a person for whom participation in an employment and 
  6.27  training service would require a round trip commuting time by 
  6.28  available transportation of more than two hours; 
  6.29     (4) a person whose presence in the home is required because 
  6.30  of illness or incapacity of another member of the household; 
  6.31     (5) a caretaker or other caretaker relative of a child 
  6.32  under the age of three who personally provides full-time care 
  6.33  for the child.  In AFDC-UP cases, only one parent or other 
  6.34  relative may qualify for this exemption; 
  6.35     (6) a caretaker or other caretaker relative personally 
  6.36  providing care for a child under six years of age, except that 
  7.1   when child care is arranged for or provided, the caretaker or 
  7.2   caretaker relative may be required to register and participate 
  7.3   in employment and training services up to a maximum of 20 hours 
  7.4   per week.  In AFDC-UP cases, only one parent or other relative 
  7.5   may qualify for this exemption; 
  7.6      (7) a pregnant woman, if it has been medically verified 
  7.7   that the child is expected to be born within the next six 
  7.8   months; or 
  7.9      (8) employed at least 30 hours per week; or 
  7.10     (9) an individual added to an assistance unit as an 
  7.11  essential person under section 256.74, subdivision 1, who does 
  7.12  not meet the definition of a "caretaker" as defined in 
  7.13  subdivision 1a, paragraph (c). 
  7.14     (b) To the extent permissible by federal law, applicants 
  7.15  for benefits under the AFDC program are registered for 
  7.16  employment and training services by signing the application 
  7.17  form.  Applicants must be informed that they are registering for 
  7.18  employment and training services by signing the form.  Persons 
  7.19  receiving benefits on or after July 1, 1987, shall register for 
  7.20  employment and training services to the extent permissible by 
  7.21  federal law.  The caretaker has a right to a fair hearing under 
  7.22  section 256.045 with respect to the appropriateness of the 
  7.23  registration. 
  7.24     Sec. 9.  Minnesota Statutes 1994, section 256.736, 
  7.25  subdivision 13, is amended to read: 
  7.26     Subd. 13.  [STATE SHARE.] The state must pay 75 percent of 
  7.27  the nonfederal share of costs incurred by counties under 
  7.28  subdivision 11. 
  7.29     Beginning July 1, 1991, the state will reimburse counties, 
  7.30  up to the limit of state appropriations, according to the 
  7.31  payment schedule in section 256.025, for the county share of 
  7.32  county agency expenditures made under subdivision 11 from 
  7.33  January 1, 1991, on to June 30, 1995.  Payment to counties under 
  7.34  this subdivision is subject to the provisions of section 256.017.
  7.35     Beginning July 1, 1995, the state must pay 100 percent of 
  7.36  the nonfederal share incurred by counties under subdivision 11, 
  8.1   up to the limit of state appropriations.  If the state 
  8.2   appropriation is not sufficient to fund the cost of case 
  8.3   management services for all caretakers identified in subdivision 
  8.4   2a, the commissioner must define a statewide subgroup of 
  8.5   caretakers which includes all caretakers in subdivision 2a, 
  8.6   clause (1), and as many caretakers as possible from subdivision 
  8.7   2a, clauses (2) and (3). 
  8.8      Sec. 10.  Minnesota Statutes 1994, section 256.74, 
  8.9   subdivision 1, is amended to read: 
  8.10     Subdivision 1.  [AMOUNT.] The amount of assistance which 
  8.11  shall be granted to or on behalf of any dependent child 
  8.12  and mother parent or other needy eligible relative caring for 
  8.13  the dependent child shall be determined by the county agency in 
  8.14  accordance with rules promulgated by the commissioner and shall 
  8.15  be sufficient, when added to all other income and support 
  8.16  available to the child, to provide the child with a reasonable 
  8.17  subsistence compatible with decency and health.  To the extent 
  8.18  permissible under federal law, an eligible relative caretaker or 
  8.19  parent shall have the option to include in the assistance unit 
  8.20  the needs, income, and resources of the following needy 
  8.21  individuals who are not otherwise eligible for AFDC because they 
  8.22  do not qualify as a caretaker or as a dependent child: 
  8.23     (1) a parent or relative caretaker's spouse and 
  8.24  stepchildren; or 
  8.25     (2) blood or legally adopted relatives who are under the 
  8.26  age of 18 or under the age of 19 years who are regularly 
  8.27  attending as a full-time student, and are expected to complete 
  8.28  before or during the month of their 19th birthday, a high school 
  8.29  or secondary level course of vocational or technical training 
  8.30  designed to prepare students for gainful employment.  The amount 
  8.31  shall be based on the method of budgeting required in Public Law 
  8.32  Number 97-35, section 2315, United States Code, title 42, 
  8.33  section 602, as amended and federal regulations at Code of 
  8.34  Federal Regulations, title 45, section 233.  Nonrecurring lump 
  8.35  sum income received by an AFDC family must be budgeted in the 
  8.36  normal retrospective cycle.  When the family's income, after 
  9.1   application of the applicable disregards, exceeds the need 
  9.2   standard for the family because of receipt of earned or unearned 
  9.3   lump sum income, the family will be ineligible for the full 
  9.4   number of months derived by dividing the sum of the lump sum 
  9.5   income and other income by the monthly need standard for a 
  9.6   family of that size.  Any income remaining from this calculation 
  9.7   is income in the first month following the period of 
  9.8   ineligibility.  The first month of ineligibility is the payment 
  9.9   month that corresponds with the budget month in which the lump 
  9.10  sum income was received.  For purposes of applying the lump sum 
  9.11  provision, family includes those persons defined in the Code of 
  9.12  Federal Regulations, title 45, section 233.20(a)(3)(ii)(F).  A 
  9.13  period of ineligibility must be shortened when the standard of 
  9.14  need increases and the amount the family would have received 
  9.15  also changes, an amount is documented as stolen, an amount is 
  9.16  unavailable because a member of the family left the household 
  9.17  with that amount and has not returned, an amount is paid by the 
  9.18  family during the period of ineligibility to cover a cost that 
  9.19  would otherwise qualify for emergency assistance, or the family 
  9.20  incurs and pays for medical expenses which would have been 
  9.21  covered by medical assistance if eligibility existed.  In making 
  9.22  its determination the county agency shall disregard the 
  9.23  following from family income:  
  9.24     (1) all the earned income of each dependent child applying 
  9.25  for AFDC if the child is a full-time student and all of the 
  9.26  earned income of each dependent child receiving AFDC who is a 
  9.27  full-time student or is a part-time student who is not a 
  9.28  full-time employee.  A student is one who is attending a school, 
  9.29  college, or university, or a course of vocational or technical 
  9.30  training designed to fit students for gainful employment and 
  9.31  includes a participant in the Job Corps program under the Job 
  9.32  Training Partnership Act (JTPA).  The county agency shall also 
  9.33  disregard all income of each dependent child applying for or 
  9.34  receiving AFDC when the income is derived from a program carried 
  9.35  out under JTPA, except that disregard of earned income may not 
  9.36  exceed six months per calendar year; 
 10.1      (2) all educational grants and loans assistance, except the 
 10.2   county agency shall count graduate student teaching 
 10.3   assistantships, fellowships, and other similar paid work as 
 10.4   earned income and, after allowing deductions for any unmet and 
 10.5   necessary educational expenses, shall count scholarships or 
 10.6   grants awarded to graduate students that do not require teaching 
 10.7   or research as unearned income; 
 10.8      (3) the first $90 of each individual's earned income.  For 
 10.9   self-employed persons, the expenses directly related to 
 10.10  producing goods and services and without which the goods and 
 10.11  services could not be produced shall be disregarded pursuant to 
 10.12  rules promulgated by the commissioner; 
 10.13     (4) thirty dollars plus one-third of each individual's 
 10.14  earned income for individuals found otherwise eligible to 
 10.15  receive aid or who have received aid in one of the four months 
 10.16  before the month of application.  With respect to any month, the 
 10.17  county welfare agency shall not disregard under this clause any 
 10.18  earned income of any person who has:  (a) reduced earned income 
 10.19  without good cause within 30 days preceding any month in which 
 10.20  an assistance payment is made; (b) refused without good cause to 
 10.21  accept an offer of suitable employment; (c) left employment or 
 10.22  reduced earnings without good cause and applied for assistance 
 10.23  so as to be able later to return to employment with the 
 10.24  advantage of the income disregard; or (d) failed without good 
 10.25  cause to make a timely report of earned income in accordance 
 10.26  with rules promulgated by the commissioner of human services.  
 10.27  Persons who are already employed and who apply for assistance 
 10.28  shall have their needs computed with full account taken of their 
 10.29  earned and other income.  If earned and other income of the 
 10.30  family is less than need, as determined on the basis of public 
 10.31  assistance standards, the county agency shall determine the 
 10.32  amount of the grant by applying the disregard of income 
 10.33  provisions.  The county agency shall not disregard earned income 
 10.34  for persons in a family if the total monthly earned and other 
 10.35  income exceeds their needs, unless for any one of the four 
 10.36  preceding months their needs were met in whole or in part by a 
 11.1   grant payment.  The disregard of $30 and one-third of earned 
 11.2   income in this clause shall be applied to the individual's 
 11.3   income for a period not to exceed four consecutive months.  Any 
 11.4   month in which the individual loses this disregard because of 
 11.5   the provisions of subclauses (a) to (d) shall be considered as 
 11.6   one of the four months.  An additional $30 work incentive must 
 11.7   be available for an eight-month period beginning in the month 
 11.8   following the last month of the combined $30 and one-third work 
 11.9   incentive.  This period must be in effect whether or not the 
 11.10  person has earned income or is eligible for AFDC.  To again 
 11.11  qualify for the earned income disregards under this clause, the 
 11.12  individual must not be a recipient of aid for a period of 12 
 11.13  consecutive months.  When an assistance unit becomes ineligible 
 11.14  for aid due to the fact that these disregards are no longer 
 11.15  applied to income, the assistance unit shall be eligible for 
 11.16  medical assistance benefits for a 12-month period beginning with 
 11.17  the first month of AFDC ineligibility; 
 11.18     (5) an amount equal to the actual expenditures for the care 
 11.19  of each dependent child or incapacitated individual living in 
 11.20  the same home and receiving aid, not to exceed:  (a) $175 for 
 11.21  each individual age two and older, and $200 for each individual 
 11.22  under the age of two.  The dependent care disregard must be 
 11.23  applied after all other disregards under this subdivision have 
 11.24  been applied; 
 11.25     (6) the first $50 per assistance unit of the monthly 
 11.26  support obligation collected by the support and recovery (IV-D) 
 11.27  unit.  The first $50 of periodic support payments collected by 
 11.28  the public authority responsible for child support enforcement 
 11.29  from a person with a legal obligation to pay support for a 
 11.30  member of the assistance unit must be paid to the assistance 
 11.31  unit within 15 days after the end of the month in which the 
 11.32  collection of the periodic support payments occurred and must be 
 11.33  disregarded when determining the amount of assistance.  A review 
 11.34  of a payment decision under this clause must be requested within 
 11.35  30 days after receiving the notice of collection of assigned 
 11.36  support or within 90 days after receiving the notice if good 
 12.1   cause can be shown for not making the request within the 30-day 
 12.2   limit; 
 12.3      (7) that portion of an insurance settlement earmarked and 
 12.4   used to pay medical expenses, funeral and burial costs, or to 
 12.5   repair or replace insured property; and 
 12.6      (8) all earned income tax credit payments received by the 
 12.7   family as a refund of federal income taxes or made as advance 
 12.8   payments by an employer.  
 12.9      All payments made pursuant to a court order for the support 
 12.10  of children not living in the assistance unit's household shall 
 12.11  be disregarded from the income of the person with the legal 
 12.12  obligation to pay support, provided that, if there has been a 
 12.13  change in the financial circumstances of the person with the 
 12.14  legal obligation to pay support since the support order was 
 12.15  entered, the person with the legal obligation to pay support has 
 12.16  petitioned for a modification of the support order. 
 12.17     Sec. 11.  [256.986] [ASSISTANCE TRANSACTION CARD FEE.] 
 12.18     Subdivision 1.  [REPLACEMENT CARD.] The commissioner of 
 12.19  human services may charge a cardholder, as defined in section 
 12.20  256.985, a $2 fee to replace an assistance transaction card.  
 12.21  The fees shall be appropriated to the commissioner and used for 
 12.22  electronic benefit purposes. 
 12.23     Subd. 2.  [TRANSACTION FEE.] Contingent upon the results of 
 12.24  a state study to determine the cost-effectiveness of a 
 12.25  transaction fee, the commissioner may charge a transaction fee 
 12.26  of up to $1 for each automated teller machine transaction in 
 12.27  excess of four per month, up to a cap of $10 in transaction fees 
 12.28  per cardholder, per month.  A transaction fee subsequently set 
 12.29  by the federal government may supersede a fee established under 
 12.30  this subdivision.  The fees shall be appropriated to the 
 12.31  commissioner and used for electronic benefit purposes. 
 12.32     Sec. 12.  Minnesota Statutes 1994, section 256D.05, 
 12.33  subdivision 7, is amended to read: 
 12.34     Subd. 7.  [INELIGIBILITY FOR GENERAL ASSISTANCE.] No person 
 12.35  disqualified from any federally aided assistance program shall 
 12.36  be eligible for general assistance during the a period covered 
 13.1   by the disqualification sanction of disqualification from any 
 13.2   federally aided assistance program; or if they could be 
 13.3   considered an essential person under section 256.74, subdivision 
 13.4   1.  
 13.5      Sec. 13.  Minnesota Statutes 1994, section 256D.36, 
 13.6   subdivision 1, is amended to read: 
 13.7      Subdivision 1.  [STATE PARTICIPATION.] (a)  [ELIGIBILITY.] 
 13.8   Commencing January 1, 1974, the commissioner shall certify to 
 13.9   each county agency the names of all county residents who were 
 13.10  eligible for and did receive aid during December, 1973, pursuant 
 13.11  to a categorical aid program of old age assistance, aid to the 
 13.12  blind, or aid to the disabled.  The amount of supplemental aid 
 13.13  for each individual eligible under this section shall be 
 13.14  calculated according to the formula in title II, section 212(a) 
 13.15  (3) of Public Law Number 93-66, as amended. 
 13.16     (b)  [DIVISION COSTS.] From and after January 1, 1980, 
 13.17  until January 1, 1981, the state shall pay 70 percent and the 
 13.18  county shall pay 30 percent of the supplemental aid calculated 
 13.19  for each county resident certified under this section who is an 
 13.20  applicant for or recipient of supplemental security income.  
 13.21  After December 31, 1980, The state share of aid paid shall be 85 
 13.22  percent and the county share shall be 15 percent.  Benefits 
 13.23  shall be issued to recipients by the state or county and funded 
 13.24  according to section 256.025, subdivision 3, subject to 
 13.25  provisions of section 256.017. 
 13.26     Beginning July 1, 1991, the state will reimburse counties 
 13.27  according to the payment schedule in section 256.025 for the 
 13.28  county share of county agency expenditures for financial 
 13.29  benefits to individuals under this subdivision from January 1, 
 13.30  1991, on.  Payment to counties under this subdivision is subject 
 13.31  to the provisions of section 256.017. 
 13.32     Sec. 14.  Minnesota Statutes 1994, section 256D.385, is 
 13.33  amended to read: 
 13.34     256D.385 [RESIDENCE.] 
 13.35     To be eligible for Minnesota supplemental aid, a person 
 13.36  must be a resident of Minnesota and (1) a citizen of the United 
 14.1   States, or (2) an alien lawfully admitted to the United States 
 14.2   for permanent residence, or (3) otherwise permanently residing 
 14.3   in the United States under color of law a qualified alien as 
 14.4   defined by the supplemental security income program.  
 14.5      Sec. 15.  Minnesota Statutes 1994, section 256D.405, 
 14.6   subdivision 3, is amended to read: 
 14.7      Subd. 3.  [REPORTS.] Recipients must report changes in 
 14.8   circumstances that affect eligibility or assistance payment 
 14.9   amounts within ten days of the change.  Recipients with earned 
 14.10  income, and recipients who do not receive SSI because of excess 
 14.11  income must complete a monthly report form if they have earned 
 14.12  income, if they have income allocated deemed to them from a 
 14.13  financially responsible relative with whom the recipient 
 14.14  resides, must complete a monthly household report form or if 
 14.15  they have income deemed to them by a sponsor.  If the report 
 14.16  form is not received before the end of the month in which it is 
 14.17  due, the county agency must terminate assistance.  The 
 14.18  termination shall be effective on the first day of the month 
 14.19  following the month in which the report was due.  If a complete 
 14.20  report is received within the month the assistance was 
 14.21  terminated, the assistance unit is considered to have continued 
 14.22  its application for assistance, effective the first day of the 
 14.23  month the assistance was terminated. 
 14.24     Sec. 16.  Minnesota Statutes 1994, section 256D.425, 
 14.25  subdivision 1, is amended to read: 
 14.26     Subdivision 1.  [PERSONS ENTITLED TO RECEIVE AID.] A person 
 14.27  who is aged, blind, or 18 years of age or older and disabled, 
 14.28  whose income is less than the standards of assistance in section 
 14.29  256D.44 and whose resources are less than the limits in 
 14.30  subdivision 2 is eligible for and entitled to Minnesota 
 14.31  supplemental aid.  A person found eligible by the Social 
 14.32  Security Administration for supplemental security income under 
 14.33  Title XVI on the basis of age, blindness, or disability meets 
 14.34  these requirements.  A person who would be eligible for the 
 14.35  supplemental security income program except for income that 
 14.36  exceeds the limit of that program but that A person found 
 15.1   eligible by the Social Security Administration, to receive 
 15.2   supplemental security benefits under Title XVI on the basis of 
 15.3   age, blindness, or disability (or would be eligible for such 
 15.4   benefits except for excess income) is eligible for a 
 15.5   supplemental payment under the Minnesota supplemental aid 
 15.6   program, if the person's net income is less than the standards 
 15.7   in section 256D.44.  Persons who are not receiving SSI benefits 
 15.8   due to exhausting time limited benefits or for failure to meet 
 15.9   or comply with SSI program requirements are not eligible to 
 15.10  receive a supplemental payment from the MSA program.  People who 
 15.11  are found ineligible for SSI because of excess income, but whose 
 15.12  income is within the limits of the Minnesota supplemental aid 
 15.13  program, must have blindness or disability determined by the 
 15.14  state medical review team.  
 15.15     Sec. 17.  Minnesota Statutes 1994, section 256D.435, 
 15.16  subdivision 1, is amended to read: 
 15.17     Subdivision 1.  [EXCLUSIONS INCOME.] The following is 
 15.18  excluded from income in determining eligibility for Minnesota 
 15.19  supplemental aid:  
 15.20     (1) the value of food stamps; 
 15.21     (2) home-produced food used by the household; 
 15.22     (3) Indian claim payments made by the United States 
 15.23  Congress to compensate members of Indian tribes for the taking 
 15.24  of tribal lands by the federal government; 
 15.25     (4) cash payments to displaced persons who face relocation 
 15.26  as a result of the Housing Act of 1965, the Housing and Urban 
 15.27  Development Act of 1965, or the Uniform Relocation Assistance 
 15.28  and Real Property Acquisition Policies Act of 1970; 
 15.29     (5) one-third of child support payments received by an 
 15.30  eligible child from an absent parent; 
 15.31     (6) displaced homemaker payments; 
 15.32     (7) reimbursement received for maintenance costs of 
 15.33  providing foster care to adults or children; 
 15.34     (8) benefits received under Title IV and Title VII of the 
 15.35  Older Americans Act of 1965; 
 15.36     (9) Minnesota renter or homeowner property tax refunds; 
 16.1      (10) infrequent, irregular income that does not total more 
 16.2   than $20 per person in a month; 
 16.3      (11) reimbursement payments received from the VISTA 
 16.4   program; 
 16.5      (12) in-kind income; 
 16.6      (13) payments received for providing volunteer services 
 16.7   under Title I, Title II, and Title III of the Domestic Volunteer 
 16.8   Service Act of 1973; 
 16.9      (14) loans that have to be repaid; 
 16.10     (15) federal low-income heating assistance program 
 16.11  payments; 
 16.12     (16) any other type of funds excluded as income by state 
 16.13  law; 
 16.14     (17) student financial aid, as allowed for the supplemental 
 16.15  security income program; and 
 16.16     (18) other income excluded by the supplemental security 
 16.17  income program.  For persons receiving supplemental security 
 16.18  income benefits, the countable income used to determine 
 16.19  eligibility and benefits for Minnesota supplemental aid is the 
 16.20  gross amount of the Federal Benefit Rate (FBR) after allowing 
 16.21  for the general income disregard in subdivision 5.  For persons 
 16.22  denied a supplemental security income benefit due to excess 
 16.23  income, and have had their blindness or disability determined 
 16.24  through the state medical review team, the countable income is 
 16.25  the gross amount of earned and unearned income, minus the 
 16.26  exclusions and disregards listed in subdivisions 4a, 5, and 6. 
 16.27     Sec. 18.  Minnesota Statutes 1994, section 256D.435, 
 16.28  subdivision 3, is amended to read: 
 16.29     Subd. 3.  [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 
 16.30  Persons for whom the applicant or recipient has financial 
 16.31  responsibility and who have unmet needs Persons who live with 
 16.32  the applicant or recipient, who have unmet needs and for whom 
 16.33  the applicant or recipient has financial responsibility, must 
 16.34  apply for and, if eligible, accept AFDC and other federally 
 16.35  funded benefits.  If the persons are determined potentially 
 16.36  eligible for AFDC by the county agency, the applicant or 
 17.1   recipient may not allocate earned or unearned income to those 
 17.2   persons while an AFDC application is pending, or after the 
 17.3   persons are determined eligible for AFDC.  If the persons are 
 17.4   determined potentially eligible for other federal benefits, the 
 17.5   applicant or recipient may only allocate income to those persons 
 17.6   until they are determined eligible for those other benefits 
 17.7   unless the amount of those benefits is less than the amount in 
 17.8   subdivision 4.  
 17.9      Sec. 19.  Minnesota Statutes 1994, section 256D.435, 
 17.10  subdivision 4, is amended to read: 
 17.11     Subd. 4.  [ALLOCATION AND DEEMING OF INCOME.] The rate of 
 17.12  allocation to relatives for whom the applicant or recipient is 
 17.13  financially responsible is one-half the individual supplemental 
 17.14  security income standard of assistance, except as restricted in 
 17.15  subdivision 3.  
 17.16     If the applicant or recipient shares a residence with 
 17.17  another person who has financial responsibility for the 
 17.18  applicant or recipient, the income of that person is considered 
 17.19  available to the applicant or recipient after allowing:  (1) the 
 17.20  deductions in subdivisions 7 and 8; and (2) a deduction for the 
 17.21  needs of the financially responsible relative and others in the 
 17.22  household for whom that relative is financially responsible.  
 17.23  The rate allowed to meet the needs of each of these people is 
 17.24  one-half the individual supplemental security income 
 17.25  standard.  The county agency shall apply the supplemental 
 17.26  security income rules regarding financial responsibility when 
 17.27  determining the amount of income to allocate or deem. 
 17.28     Sec. 20.  Minnesota Statutes 1994, section 256D.435, is 
 17.29  amended by adding a subdivision to read: 
 17.30     Subd. 4a.  [EXCLUSIONS.] The income exclusions used to 
 17.31  determine eligibility for Minnesota supplemental aid are those 
 17.32  used to determine benefits for supplemental security income. 
 17.33     Sec. 21.  Minnesota Statutes 1994, section 256D.435, 
 17.34  subdivision 5, is amended to read: 
 17.35     Subd. 5.  [GENERAL INCOME DISREGARD.] The county agency 
 17.36  shall disregard the first $20 of the assistance unit's unearned 
 18.1   or earned income from the assistance unit's gross earned income. 
 18.2      Sec. 22.  Minnesota Statutes 1994, section 256D.435, 
 18.3   subdivision 6, is amended to read: 
 18.4      Subd. 6.  [EARNED INCOME DISREGARDS.] From the assistance 
 18.5   unit's gross earned income, the county agency shall disregard 
 18.6   $65 plus one-half of the remaining income.  The earned income 
 18.7   disregards used to determine eligibility for Minnesota 
 18.8   supplemental aid are those used to determine benefits for 
 18.9   supplemental security income.  
 18.10     Sec. 23.  Minnesota Statutes 1994, section 256D.44, 
 18.11  subdivision 1, is amended to read: 
 18.12     Subdivision 1.  [USE OF STANDARDS; INCREASES.] The state 
 18.13  standards of assistance for shelter, basic needs, and plus 
 18.14  special need items that establish the total amount of 
 18.15  maintenance need for an applicant for or recipient of Minnesota 
 18.16  supplemental aid, are used to determine the assistance unit's 
 18.17  eligibility for Minnesota supplemental aid.  The state standards 
 18.18  of assistance for basic needs must increase by an amount equal 
 18.19  to the dollar value, rounded up to the nearest dollar, of any 
 18.20  cost of living increases in the supplemental security income 
 18.21  program. 
 18.22     Sec. 24.  Minnesota Statutes 1994, section 256D.44, 
 18.23  subdivision 2, is amended to read: 
 18.24     Subd. 2.  [STANDARD OF ASSISTANCE FOR SHELTER PERSONS 
 18.25  ELIGIBLE FOR MEDICAL ASSISTANCE WAIVERS OR AT RISK OF 
 18.26  INSTITUTIONALIZATION.] The state standard of assistance for 
 18.27  shelter provides for the recipient's shelter costs.  The monthly 
 18.28  state standard of assistance for shelter must be determined 
 18.29  according to paragraphs (a) to (f). 
 18.30     (a) If an applicant or recipient does not reside with 
 18.31  another person or persons, the state standard of assistance is 
 18.32  the actual cost for shelter items or $124, whichever is less.  
 18.33     (b) If an applicant married couple or recipient married 
 18.34  couple, who live together, does not reside with others, the 
 18.35  state standard of assistance is the actual cost for shelter 
 18.36  items or $186, whichever is less.  
 19.1      (c) If an applicant or recipient resides with another 
 19.2   person or persons, the state standard of assistance is the 
 19.3   actual cost for shelter items or $93, whichever is less. 
 19.4      (d) If an applicant married couple or recipient married 
 19.5   couple, who live together, resides with others, the state 
 19.6   standard of assistance is the actual cost for shelter items or 
 19.7   $124, whichever is less. 
 19.8      (e) Actual shelter costs for applicants or recipients, who 
 19.9   reside with others, are determined by dividing the total monthly 
 19.10  shelter costs by the number of persons who share the residence. 
 19.11     (f) Married couples, living together and receiving MSA on 
 19.12  January 1, 1994, and whose eligibility has not been terminated 
 19.13  for a full calendar month, are exempt from the standards in 
 19.14  paragraphs (b) and (d).  The state standard of assistance for a 
 19.15  person who is eligible for a medical assistance waiver or a 
 19.16  person who has been determined by the local agency to require 
 19.17  placement in a group residential housing facility is the 
 19.18  standard established in subdivision 3, paragraph (a) or (b). 
 19.19     Sec. 25.  Minnesota Statutes 1994, section 256D.44, 
 19.20  subdivision 3, is amended to read: 
 19.21     Subd. 3.  [STANDARD OF ASSISTANCE FOR BASIC NEEDS.] The 
 19.22  state standard of assistance for basic needs provides for the 
 19.23  applicant's or recipient's maintenance needs, other than actual 
 19.24  shelter costs.  Except as provided in subdivision 4, the monthly 
 19.25  state standard of assistance for basic needs is as follows:  
 19.26     (a) If an applicant or recipient does not reside with 
 19.27  another person or persons, the state standard of assistance is 
 19.28  $371 $519.  
 19.29     (b) If an applicant married couple or recipient married 
 19.30  couple who live together, does not reside with others, the state 
 19.31  standard of assistance is $557 $778. 
 19.32     (c) If an applicant or recipient resides with another 
 19.33  person or persons, the state standard of assistance is $286 $395.
 19.34     (d) If an applicant married couple or recipient married 
 19.35  couple who live together, resides with others, the state 
 19.36  standard of assistance is $371 $519. 
 20.1      (e) Married couples, living together and receiving MSA on 
 20.2   prior to January 1, 1994, and whose eligibility has not been 
 20.3   terminated a full calendar month, are exempt from the standards 
 20.4   in paragraphs (b) and (d) is $793. 
 20.5      (f) The state standard of assistance for married couples 
 20.6   who do not live with others and are receiving MSA prior to 
 20.7   January 1, 1994, and whose eligibility has not been terminated a 
 20.8   full calendar month, is $682. 
 20.9      (g) The state standard of assistance for an individual who 
 20.10  is a resident of a nursing home, a regional treatment center or 
 20.11  a group residential housing facility is the personal needs 
 20.12  allowance for medical assistance recipients under section 
 20.13  256B.35. 
 20.14     Sec. 26.  Minnesota Statutes 1994, section 256D.44, 
 20.15  subdivision 4, is amended to read: 
 20.16     Subd. 4.  [TEMPORARY ABSENCE DUE TO ILLNESS.] For the 
 20.17  purposes of this subdivision, "home" means a residence owned or 
 20.18  rented by a recipient or the recipient's spouse.  Home does not 
 20.19  include a negotiated rate group residential housing facility.  
 20.20  Assistance payments for recipients who are temporarily absent 
 20.21  from their home due to hospitalization for illness must continue 
 20.22  at the same level of payment during their absence if the 
 20.23  following criteria are met:  
 20.24     (1) a physician certifies that the absence is not expected 
 20.25  to continue for more than three months; 
 20.26     (2) a physician certifies that the recipient will be able 
 20.27  to return to independent living; and 
 20.28     (3) the recipient has expenses associated with maintaining 
 20.29  a residence in the community.  
 20.30     Sec. 27.  Minnesota Statutes 1994, section 256D.44, 
 20.31  subdivision 5, is amended to read: 
 20.32     Subd. 5.  [SPECIAL NEEDS.] Notwithstanding In addition to 
 20.33  the state standards of assistance established in subdivisions 1 
 20.34  to 4, payments are allowed for the following special needs of 
 20.35  recipients of Minnesota supplemental aid who are not residents 
 20.36  of a nursing home, a regional treatment center, or a group 
 21.1   residential housing facility:  
 21.2      (a) The county agency shall pay a monthly allowance for 
 21.3   medically prescribed diets payable under the AFDC program if the 
 21.4   cost of those additional dietary needs cannot be met through 
 21.5   some other maintenance benefit.  
 21.6      (b) Payment for nonrecurring special needs must be allowed 
 21.7   for necessary home repairs or necessary repairs or replacement 
 21.8   of household furniture and appliances using the payment standard 
 21.9   of the AFDC program for these expenses, as long as other funding 
 21.10  sources are not available.  
 21.11     (c) A fee for guardian or conservator service is allowed at 
 21.12  a reasonable rate negotiated by the county or approved by the 
 21.13  court.  This rate shall not exceed five percent of the 
 21.14  assistance unit's gross monthly income up to a maximum of $100 
 21.15  per month.  If the guardian or conservator is a member of the 
 21.16  county agency staff, no fee is allowed. 
 21.17     (d) The county agency shall continue to pay a monthly 
 21.18  allowance of $68 for restaurant meals for a person who was 
 21.19  receiving a restaurant meal allowance on June 1, 1990, and who 
 21.20  eats two or more meals in a restaurant daily.  The allowance 
 21.21  must continue until the person has not received Minnesota 
 21.22  supplemental aid for one full calendar month or until the 
 21.23  person's living arrangement changes and the person no longer 
 21.24  meets the criteria for the restaurant meal allowance, whichever 
 21.25  occurs first. 
 21.26     (e) A fee of ten percent of the recipients gross income or 
 21.27  $25, whichever is less, is allowed for representative payee 
 21.28  services provided by an agency that meets the requirements under 
 21.29  SSI regulations to charge a fee for representative payee 
 21.30  services.  This special need is available to all recipients of 
 21.31  Minnesota supplemental aid regardless of their living 
 21.32  arrangement. 
 21.33     Sec. 28.  Minnesota Statutes 1994, section 256D.44, 
 21.34  subdivision 6, is amended to read: 
 21.35     Subd. 6.  [COUNTY AGENCY STANDARDS OF ASSISTANCE.] The 
 21.36  county agency may establish standards of assistance for shelter, 
 22.1   basic needs, special needs, and clothing and personal needs, and 
 22.2   negotiated rates that exceed the corresponding state standards 
 22.3   of assistance.  State aid is not available for costs above state 
 22.4   standards.  
 22.5      Sec. 29.  Minnesota Statutes 1994, section 256D.45, 
 22.6   subdivision 1, is amended to read: 
 22.7      Subdivision 1.  [PROSPECTIVE BUDGETING.] A calendar month 
 22.8   is The payment period and budgeting cycle for Minnesota 
 22.9   supplemental aid.  The monthly payment to a recipient must be 
 22.10  determined prospectively are those of the supplemental security 
 22.11  income program. 
 22.12     Sec. 30.  Minnesota Statutes 1994, section 256D.46, 
 22.13  subdivision 1, is amended to read: 
 22.14     Subdivision 1.  [ELIGIBILITY.] Emergency Minnesota 
 22.15  supplemental aid must be granted if the recipient is without 
 22.16  adequate resources to resolve an emergency that, if unresolved, 
 22.17  will threaten the health or safety of the recipient.  For the 
 22.18  purposes of this section, the term "recipient" includes persons 
 22.19  for whom a group residential housing benefit is being paid under 
 22.20  sections 256I.01 to 256I.06. 
 22.21     Sec. 31.  Minnesota Statutes 1994, section 256D.46, 
 22.22  subdivision 2, is amended to read: 
 22.23     Subd. 2.  [INCOME AND RESOURCE TEST.] All income and 
 22.24  resources available to the recipient during the month in which 
 22.25  the need for emergency Minnesota supplemental aid arises must be 
 22.26  considered in determining the recipient's ability to meet the 
 22.27  emergency need.  Property that can be liquidated in time to 
 22.28  resolve the emergency and income (excluding Minnesota 
 22.29  supplemental aid issued for current month's need) that is 
 22.30  normally disregarded or excluded under the Minnesota 
 22.31  supplemental aid program must be considered available to meet 
 22.32  the emergency need.  
 22.33     Sec. 32.  Minnesota Statutes 1994, section 256D.48, 
 22.34  subdivision 1, is amended to read: 
 22.35     Subdivision 1.  [NEED FOR PROTECTIVE PAYEE.] The county 
 22.36  agency shall determine whether a recipient needs a protective 
 23.1   payee when a physical or mental condition renders the recipient 
 23.2   unable to manage funds and when payments to the recipient would 
 23.3   be contrary to the recipient's welfare.  Protective payments 
 23.4   must be issued when there is evidence of:  (1) repeated 
 23.5   inability to plan the use of income to meet necessary 
 23.6   expenditures; (2) repeated observation that the recipient is not 
 23.7   properly fed or clothed; (3) repeated failure to meet 
 23.8   obligations for rent, utilities, food, and other essentials; (4) 
 23.9   evictions or a repeated incurrence of debts; or (5) lost or 
 23.10  stolen checks; or (6) use of emergency Minnesota supplemental 
 23.11  aid more than twice in a calendar year.  The determination of 
 23.12  representative payment by the Social Security Administration for 
 23.13  the recipient is sufficient reason for protective payment of 
 23.14  Minnesota supplemental aid payments.  
 23.15     Sec. 33.  [REPEALER.] 
 23.16     Minnesota Statutes 1994, sections 256.851; 256D.35, 
 23.17  subdivisions 14 and 19; 256D.36, subdivision 1a; 256D.37; 
 23.18  256D.425, subdivision 3; 256D.435, subdivisions 2, 7, 8, 9, and 
 23.19  10; and 256D.44, subdivision 7, are repealed.