1.1                          A bill for an act 
  1.2             relating to human services; proposing welfare reform 
  1.3             measures; amending Minnesota Statutes 1994, sections 
  1.4             256.73, by adding subdivisions; and 256.736, 
  1.5             subdivisions 1a, 3b, and 11; Minnesota Statutes 1995 
  1.6             Supplement, sections 256.73, subdivisions 2, 3a, 3b, 
  1.7             and 8a; 256.736, subdivisions 3, 3a, 14, and 16; 
  1.8             256.74, subdivision 1; and 256.76, subdivision 1; 
  1.9             proposing coding for new law in Minnesota Statutes, 
  1.10            chapter 256; repealing Minnesota Statutes 1994, 
  1.11            section 256.871, subdivisions 3 and 4; Laws 1995, 
  1.12            chapter 178, article 2, section 46. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  [256.725] [ELIGIBILITY PERIOD.] 
  1.15     Subdivision 1.  [WORK REQUIREMENT AFTER 24 MONTHS.] A 
  1.16  recipient of AFDC must engage in employment and training 
  1.17  services as defined in section 256.736, subdivision 1a, 
  1.18  paragraph (d), when the county determines the recipient is ready 
  1.19  to engage in work, or after 24 months of receiving assistance, 
  1.20  whether or not consecutive, whichever is earlier. 
  1.21     Subd. 2.  [MANDATORY NUMBER OF HOURS A RECIPIENT MUST 
  1.22  WORK.] A nonexempt AFDC-UP recipient must participate in work 
  1.23  activities in accordance with section 256.737.  All other 
  1.24  recipients, unless exempt under subdivision 3 or section 
  1.25  256.736, subdivision 20, must participate in employment and 
  1.26  training activities, or be employed at least 20 hours per week. 
  1.27     Subd. 3.  [EXCEPTIONS TO WORK REQUIREMENT.] Assistance 
  1.28  shall not be reduced in accordance with subdivision 4 based on 
  1.29  the refusal of a recipient to engage in the employment and 
  2.1   training services required under subdivision 2 if the recipient 
  2.2   is exempt from registration under section 256.736, subdivision 
  2.3   3, paragraph (a). 
  2.4      Subd. 4.  [SANCTIONS FOR NONCOMPLIANCE WITH WORK 
  2.5   REQUIREMENTS.] If a recipient refuses to engage in employment 
  2.6   and training services, or fails to find adequate employment 
  2.7   within a reasonable amount of time, the recipient's assistance 
  2.8   grant shall be reduced by 15 percent or $50 of the monthly cash 
  2.9   assistance grant, whichever is greater, until the recipient 
  2.10  complies with the work requirement. 
  2.11     If the recipient fails to comply for a period of six 
  2.12  months, the assistance grant will be terminated, and the 
  2.13  individual is prohibited from reapplying for public assistance 
  2.14  for a period of six months after the termination of the grant 
  2.15  under this section. 
  2.16     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  2.17  256.73, subdivision 2, is amended to read: 
  2.18     Subd. 2.  [ALLOWANCE BARRED BY OWNERSHIP OF PROPERTY.] 
  2.19  Ownership by an assistance unit of property as follows is a bar 
  2.20  to any allowance under sections 256.72 to 256.87: 
  2.21     (1) The value of real property other than the homestead, 
  2.22  which when combined with other assets exceeds the limits of 
  2.23  paragraph (2), unless the assistance unit is making a good faith 
  2.24  effort to sell the nonexcludable real property.  The time period 
  2.25  for disposal must not exceed nine consecutive months.  The 
  2.26  assistance unit must sign an agreement to dispose of the 
  2.27  property and to give the local agency a lien to secure repayment 
  2.28  of benefits received by the assistance unit during the 
  2.29  nine-month period covered by the agreement.  The provisions of 
  2.30  section 514.981, subdivisions 2, paragraphs (a), clauses (1), 
  2.31  (3), (4), and (5), and (e); 4 and 5, paragraphs (a), clause (2), 
  2.32  and (b), clauses (3) and (4), and (d); and 6; section 514.982, 
  2.33  subdivisions 1, clauses (1), (2), and (4); and 2; and sections 
  2.34  514.983 and 514.984, regarding medical assistance liens, shall 
  2.35  apply to AFDC liens under this section, except that the filing 
  2.36  fees paid by the county agency under this section shall be 
  3.1   deducted from recoveries made under this lien provision.  For 
  3.2   purposes of this paragraph, all references in sections 514.981 
  3.3   to 514.984, to medical assistance liens and to medical 
  3.4   assistance benefits shall be construed to be references to AFDC 
  3.5   liens and to AFDC benefits, respectively.  If the property is 
  3.6   intentionally sold at less than fair market value or if a good 
  3.7   faith effort to sell the property is not being made, the 
  3.8   overpayment amount shall be computed using the fair market value 
  3.9   determined at the beginning of the nine-month period.  For the 
  3.10  purposes of this section, "homestead" means the home that is 
  3.11  owned by, and is the usual residence of, the child, relative, or 
  3.12  other member of the assistance unit together with the 
  3.13  surrounding property which is not separated from the home by 
  3.14  intervening property owned by others.  "Usual residence" 
  3.15  includes the home from which the child, relative, or other 
  3.16  members of the assistance unit is temporarily absent due to an 
  3.17  employability development plan approved by the local human 
  3.18  service agency, which includes education, training, or job 
  3.19  search within the state but outside of the immediate geographic 
  3.20  area.  Public rights-of-way, such as roads which run through the 
  3.21  surrounding property and separate it from the home, will not 
  3.22  affect the exemption of the property; or 
  3.23     (2) Personal property of an equity value in excess of 
  3.24  $1,000 for the entire assistance unit, exclusive of personal 
  3.25  property used as the home, one motor vehicle of an equity with a 
  3.26  trade-in value not exceeding $1,500 or the entire equity value 
  3.27  of a motor vehicle determined to be necessary for the operation 
  3.28  of a self-employment business the amount allowed under the 
  3.29  federal Food Stamp Program, one burial plot for each member of 
  3.30  the assistance unit, one prepaid burial contract with an equity 
  3.31  value of no more than $1,000 for each member of the assistance 
  3.32  unit, clothing and necessary household furniture and equipment 
  3.33  and other basic maintenance items essential for daily living, in 
  3.34  accordance with rules promulgated by and standards established 
  3.35  by the commissioner of human services. 
  3.36     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  4.1   256.73, subdivision 3a, is amended to read: 
  4.2      Subd. 3a.  [PERSONS INELIGIBLE.] No assistance shall be 
  4.3   given under sections 256.72 to 256.87:  
  4.4      (1) on behalf of any person who is receiving supplemental 
  4.5   security income under title XVI of the Social Security Act 
  4.6   unless permitted by federal regulations; 
  4.7      (2) for any month in which the assistance unit's gross 
  4.8   income, without application of deductions or disregards, exceeds 
  4.9   185 percent of the standard of need for a family of the same 
  4.10  size and composition; except that the earnings of a dependent 
  4.11  child or a minor caretaker who is a full-time student may be 
  4.12  disregarded for six months per calendar year up to $800 gross 
  4.13  income per month and the earnings of a dependent child that are 
  4.14  derived from the Jobs Training and Partnership Act (JTPA) may be 
  4.15  disregarded for six months per calendar year.  These two 
  4.16  earnings disregards cannot be combined to allow more than a 
  4.17  total of six months per calendar year when the earned income of 
  4.18  a full-time student is derived from participation in a program 
  4.19  under the JTPA up to $800 gross income per month.  If a 
  4.20  stepparent's income is taken into account in determining need, 
  4.21  the disregards specified in section 256.74, subdivision 1a, 
  4.22  shall be applied to determine income available to the assistance 
  4.23  unit before calculating the unit's gross income for purposes of 
  4.24  this paragraph.  If a stepparent's needs are included in the 
  4.25  assistance unit as specified in section 256.74, subdivision 1, 
  4.26  the disregards specified in section 256.74, subdivision 1, shall 
  4.27  be applied. 
  4.28     (3) to any assistance unit for any month in which any 
  4.29  caretaker relative with whom the child is living is, on the last 
  4.30  day of that month, participating in a strike; 
  4.31     (4) on behalf of any other individual in the assistance 
  4.32  unit, nor shall the individual's needs be taken into account for 
  4.33  any month in which, on the last day of the month, the individual 
  4.34  is participating in a strike; or 
  4.35     (5) on behalf of any individual who is the principal earner 
  4.36  in an assistance unit whose eligibility is based on the 
  5.1   unemployment of a parent when the principal earner, without good 
  5.2   cause, fails or refuses to accept employment, or to register 
  5.3   with a public employment office, unless the principal earner is 
  5.4   exempt from these work requirements. 
  5.5      Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  5.6   256.73, subdivision 3b, is amended to read: 
  5.7      Subd. 3b.  [ELIGIBILITY NOT BARRED BY WORKING OVER 99 
  5.8   HOURS; PAST EMPLOYMENT HISTORY; 30-DAY WAITING PERIOD.] An 
  5.9   individual receiving assistance may work over 99 hours per month 
  5.10  and remain eligible for assistance, provided all other 
  5.11  requirements of the aid to families with dependent 
  5.12  children-unemployed parent program are met.  The applicant is 
  5.13  not required to demonstrate past employment history or 30 days 
  5.14  of prior unemployment to be eligible for the AFDC-unemployed aid 
  5.15  to families with dependent children-unemployed parent 
  5.16  program.  This subdivision is effective upon federal approval 
  5.17  and implementation of the waiver under Laws 1995, chapter 178, 
  5.18  article 2, section 46, subdivision 4. 
  5.19     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
  5.20  256.73, subdivision 8a, is amended to read: 
  5.21     Subd. 8a.  [START WORK OFFSET.] An overpayment resulting 
  5.22  from earned income received in the first month of employment is 
  5.23  not recoverable by the county agency provided the aid to 
  5.24  families with dependent children assistance unit has not 
  5.25  voluntarily quit employment, without good cause under, as 
  5.26  defined in section 268.09, subdivision 1, paragraph (a), in the 
  5.27  past two years.  A "start work offset" for purposes of this 
  5.28  subdivision is the amount of the overpayment the assistance unit 
  5.29  would otherwise be required to repay to the county under 
  5.30  subdivision 8.  This subdivision is effective upon federal 
  5.31  approval and implementation of the waiver under Laws 1995, 
  5.32  chapter 178, article 2, section 46, subdivision 3. 
  5.33     Sec. 6.  Minnesota Statutes 1994, section 256.73, is 
  5.34  amended by adding a subdivision to read: 
  5.35     Subd. 12.  [FAMILY CAP.] No additional assistance shall be 
  5.36  provided to a family for a dependent child born at least ten 
  6.1   months after the month in which the recipient began receiving 
  6.2   public assistance. 
  6.3      Sec. 7.  Minnesota Statutes 1994, section 256.73, is 
  6.4   amended by adding a subdivision to read: 
  6.5      Subd. 13.  [TEN-YEAR BAN FOR FRAUDULENT RECEIPT OF 
  6.6   AFDC.] (a) No assistance shall be provided to a family for ten 
  6.7   years if an individual in the family unit misrepresented the 
  6.8   family's residence in order to receive assistance in more than 
  6.9   one state. 
  6.10     (b) A minor child exception exists if an individual 
  6.11  received assistance as a minor child, and the family was 
  6.12  subsequently sanctioned under paragraph (a).  The ten-year ban 
  6.13  does not apply to such an individual if the individual applies 
  6.14  for AFDC as the head of the household of a needy family with a 
  6.15  minor child.  The individual who misrepresented the family's 
  6.16  state of residence in paragraph (a) cannot be included in the 
  6.17  AFDC grant. 
  6.18     Sec. 8.  Minnesota Statutes 1994, section 256.736, 
  6.19  subdivision 1a, is amended to read: 
  6.20     Subd. 1a.  [DEFINITIONS.] As used in this section and 
  6.21  section 256.7365, the following words have the meanings given 
  6.22  them: 
  6.23     (a) "AFDC" means aid to families with dependent children. 
  6.24     (b) "AFDC-UP" means that group of AFDC clients who are 
  6.25  eligible for assistance by reason of unemployment as defined by 
  6.26  the commissioner under section 256.12, subdivision 14. 
  6.27     (c) "Caretaker" means a parent or eligible adult, including 
  6.28  a pregnant woman, who is part of the assistance unit that has 
  6.29  applied for or is receiving AFDC. 
  6.30     (d) "Employment and training services" means programs, 
  6.31  activities, and services related to job training, job placement, 
  6.32  and job creation, including job service programs, job training 
  6.33  partnership act programs, wage subsidies, remedial and secondary 
  6.34  education programs, post-secondary education programs excluding 
  6.35  education leading to a post-baccalaureate degree, vocational 
  6.36  education programs, work readiness programs not to exceed 12 
  7.1   months, job search, counseling, case management only for the 
  7.2   first four weeks in which an individual is required to work, 
  7.3   community work experience programs, displaced homemaker 
  7.4   programs, self-employment programs, grant diversion, employment 
  7.5   experience programs, youth employment programs, community 
  7.6   investment programs, refugee employment and training programs, 
  7.7   and counseling and support activities necessary to stabilize the 
  7.8   caretaker or the family. 
  7.9      (e) "Employment and training service provider" means a 
  7.10  public, private, or nonprofit agency certified by the 
  7.11  commissioner of economic security to deliver employment and 
  7.12  training services under section 268.0122, subdivision 3, and 
  7.13  section 268.871, subdivision 1. 
  7.14     (f) "Minor parent" means a caretaker relative who is the 
  7.15  parent of the dependent child or children in the assistance unit 
  7.16  and who is under the age of 18. 
  7.17     (g) "Targeted groups" or "targeted caretakers" means 
  7.18  recipients of AFDC or AFDC-UP designated as priorities for 
  7.19  employment and training services under subdivision 16. 
  7.20     (h) "Suitable employment" means employment which:  
  7.21     (1) is within the recipient's physical and mental capacity; 
  7.22     (2) meets health and safety standards established by the 
  7.23  Occupational Safety and Health Administration and the department 
  7.24  of economic security; 
  7.25     (3) pays hourly gross earnings which are not less than the 
  7.26  federal or state minimum wage for that type of employment, 
  7.27  whichever is applicable; 
  7.28     (4) does not result in a net loss of income.  Employment 
  7.29  results in a net loss of income when the income remaining after 
  7.30  subtracting necessary work-related expenses from the family's 
  7.31  gross income, which includes cash assistance, is less than the 
  7.32  cash assistance the family was receiving at the time the offer 
  7.33  of employment was made.  For purposes of this definition, "work 
  7.34  expenses" means the amount withheld or paid for; state and 
  7.35  federal income taxes; social security withholding taxes; 
  7.36  mandatory retirement fund deductions; dependent care costs; 
  8.1   transportation costs to and from work at the amount allowed by 
  8.2   the Internal Revenue Service for personal car mileage; costs of 
  8.3   work uniforms, union dues, and medical insurance premiums; costs 
  8.4   of tools and equipment used on the job; $1 per work day for the 
  8.5   costs of meals eaten during employment; public liability 
  8.6   insurance required by an employer when an automobile is used in 
  8.7   employment and the cost is not reimbursed by the employer; and 
  8.8   the amount paid by an employee from personal funds for business 
  8.9   costs which are not reimbursed by the employer; 
  8.10     (5) offers a job vacancy which is not the result of a 
  8.11  strike, lockout, or other bona fide labor dispute; 
  8.12     (6) requires a round trip commuting time from the 
  8.13  recipient's residence of less than two hours by available 
  8.14  transportation, exclusive of the time to transport children to 
  8.15  and from child care; 
  8.16     (7) does not require the recipient to leave children under 
  8.17  age 12 unattended in order to work, or if child care is 
  8.18  required, such care is available; and 
  8.19     (8) does not discriminate at the job site on the basis of 
  8.20  age, sex, race, color, creed, marital status, status with regard 
  8.21  to public assistance, disability, religion, or place of national 
  8.22  origin. 
  8.23     (i) "Support services" means programs, activities, and 
  8.24  services intended to stabilize families and individuals or 
  8.25  provide assistance for family needs related to employment or 
  8.26  participation in employment and training services, including 
  8.27  child care, transportation, housing assistance, personal and 
  8.28  family counseling, crisis intervention services, peer support 
  8.29  groups, chemical dependency counseling and treatment, money 
  8.30  management assistance, and parenting skill courses. 
  8.31     Sec. 9.  Minnesota Statutes 1995 Supplement, section 
  8.32  256.736, subdivision 3, is amended to read: 
  8.33     Subd. 3.  [REGISTRATION.] (a) To the extent permissible 
  8.34  under federal law, every caretaker or child is required to 
  8.35  register for employment and training services, as a condition of 
  8.36  receiving AFDC, unless the caretaker or child is: 
  9.1      (1) a child who is under age 16, a child age 16 or 17 who 
  9.2   is attending elementary or secondary school or a secondary level 
  9.3   vocational or technical school full time; 
  9.4      (2) ill, incapacitated, or age 60 or older; 
  9.5      (3) a person for whom participation in an employment and 
  9.6   training service would require a round trip commuting time by 
  9.7   available transportation of more than two hours; 
  9.8      (4) a person whose presence in the home is required because 
  9.9   of illness or incapacity of another member of the household; 
  9.10     (5) a caretaker or other caretaker relative of a child 
  9.11  under the age of three who personally provides full-time care 
  9.12  for the child, except that when child care is arranged for or 
  9.13  provided, the caretaker or caretaker relative may be required to 
  9.14  register and participate in employment and training services up 
  9.15  to a maximum of 20 hours per week.  In AFDC-UP cases, only one 
  9.16  parent or other relative may qualify for this exemption; 
  9.17     (6) a caretaker or other caretaker relative personally 
  9.18  providing care for a child under six years of age, except that 
  9.19  when child care is arranged for or provided, the caretaker or 
  9.20  caretaker relative may be required to register and participate 
  9.21  in employment and training services up to a maximum of 20 hours 
  9.22  per week.  In AFDC-UP cases, only one parent or other relative 
  9.23  may qualify for this exemption; 
  9.24     (7) a pregnant woman, if it has been medically verified 
  9.25  that the child is expected to be born within the next six 
  9.26  months; 
  9.27     (8) employed at least 30 hours per week; or 
  9.28     (9) an individual added to an assistance unit as an 
  9.29  essential person under section 256.74, subdivision 1, who does 
  9.30  not meet the definition of a "caretaker" as defined in 
  9.31  subdivision 1a, paragraph (c). 
  9.32     (b) To the extent permissible by federal law, applicants 
  9.33  for benefits under the AFDC program are registered for 
  9.34  employment and training services by signing the application 
  9.35  form.  Applicants must be informed that they are registering for 
  9.36  employment and training services by signing the form.  Persons 
 10.1   receiving benefits on or after July 1, 1987, shall register for 
 10.2   employment and training services to the extent permissible by 
 10.3   federal law.  The caretaker has a right to a fair hearing under 
 10.4   section 256.045 with respect to the appropriateness of the 
 10.5   registration. 
 10.6      Sec. 10.  Minnesota Statutes 1995 Supplement, section 
 10.7   256.736, subdivision 3a, is amended to read: 
 10.8      Subd. 3a.  [PARTICIPATION.] (a) Except as provided under 
 10.9   paragraphs (b) and (c), participation in employment and training 
 10.10  services under this section is limited to the following 
 10.11  recipients:  
 10.12     (1) caretakers who are required to participate in a job 
 10.13  search under subdivision 14; 
 10.14     (2) custodial parents who are subject to the school 
 10.15  attendance or case management participation requirements under 
 10.16  subdivision 3b; 
 10.17     (3) caretakers whose participation in employment and 
 10.18  training services began prior to May 1, 1990, if the caretaker's 
 10.19  AFDC eligibility has not been interrupted for 30 days or more 
 10.20  and the caretaker's employability development plan has not been 
 10.21  completed; 
 10.22     (4) recipients who are members of a family in which the 
 10.23  youngest child is within two years of being ineligible for AFDC 
 10.24  due to age; 
 10.25     (5) custodial parents under the age of 24 who:  (i) have 
 10.26  not completed a high school education and who, at the time of 
 10.27  application for AFDC, were not enrolled in high school or in a 
 10.28  high school equivalency program; or (ii) have had little or no 
 10.29  work experience in the preceding year; 
 10.30     (6) recipients who have received AFDC for 36 24 or more 
 10.31  months out of the last 60 months; 
 10.32     (7) recipients who are participants in the self-employment 
 10.33  investment demonstration project under section 268.95; and 
 10.34     (8) recipients who participate in the new chance research 
 10.35  and demonstration project under contract with the department of 
 10.36  human services. 
 11.1      (b) If the commissioner determines that participation of 
 11.2   persons listed in paragraph (a) in employment and training 
 11.3   services is insufficient either to meet federal performance 
 11.4   targets or to fully utilize funds appropriated under this 
 11.5   section, the commissioner may, after notifying the chairs of the 
 11.6   senate family services committee, the house health and human 
 11.7   services committee, the family services division of the senate 
 11.8   family services and health care committees, and the human 
 11.9   services division of the house health and human services 
 11.10  committee, permit additional groups of recipients to participate 
 11.11  until the next meeting of the legislative advisory commission, 
 11.12  after which the additional groups may continue to enroll for 
 11.13  participation unless the legislative advisory commission 
 11.14  disapproves the continued enrollment.  The commissioner shall 
 11.15  allow participation of additional groups in the following order 
 11.16  recipients who have not completed a high school education or a 
 11.17  high school equivalency program only as needed to meet 
 11.18  performance targets or fully utilize funding for employment and 
 11.19  training services under this section: 
 11.20     (1) recipients who have received 24 or more months of AFDC 
 11.21  out of the previous 48 months; and 
 11.22     (2) recipients who have not completed a high school 
 11.23  education or a high school equivalency program. 
 11.24     (c) To the extent of money appropriated specifically for 
 11.25  this paragraph, the commissioner may permit AFDC caretakers who 
 11.26  are not eligible for participation in employment and training 
 11.27  services under the provisions of paragraph (a) or (b) to 
 11.28  participate.  Money must be allocated to county agencies based 
 11.29  on the county's percentage of participants statewide in services 
 11.30  under this section in the prior calendar year.  Caretakers must 
 11.31  be selected on a first-come, first-served basis from a waiting 
 11.32  list of caretakers who volunteer to participate.  The 
 11.33  commissioner may, on a quarterly basis, reallocate unused 
 11.34  allocations to county agencies that have sufficient volunteers.  
 11.35  If funding under this paragraph is discontinued in future fiscal 
 11.36  years, caretakers who began participating under this paragraph 
 12.1   must be deemed eligible under paragraph (a), clause (3). 
 12.2      (d) Participants who are eligible and enroll in the STRIDE 
 12.3   program under one of the categories of this subdivision are 
 12.4   required to cooperate with the assessment and employability plan 
 12.5   development and to meet the terms of their employability plan.  
 12.6   Failure to comply, without good cause, shall result in the 
 12.7   imposition of sanctions as specified in subdivision 4, clause 
 12.8   (6). 
 12.9      Sec. 11.  Minnesota Statutes 1994, section 256.736, 
 12.10  subdivision 3b, is amended to read: 
 12.11     Subd. 3b.  [MANDATORY ASSESSMENT AND SCHOOL ATTENDANCE FOR 
 12.12  CERTAIN CUSTODIAL PARENTS.] This subdivision applies to the 
 12.13  extent permitted under federal law and regulation. 
 12.14     (a)  [DEFINITIONS.] The definitions in this paragraph apply 
 12.15  to this subdivision. 
 12.16     (1) "Custodial parent" means a recipient of AFDC who is the 
 12.17  natural or adoptive parent of a child living with the custodial 
 12.18  parent. 
 12.19     (2) "School" means: 
 12.20     (i) an educational program which leads to a high school 
 12.21  diploma.  The program or coursework may be, but is not limited 
 12.22  to, a program under the post-secondary enrollment options of 
 12.23  section 123.3514, a regular or alternative program of an 
 12.24  elementary or secondary school, a technical college, or a 
 12.25  college; 
 12.26     (ii) coursework for a general educational development (GED) 
 12.27  diploma of not less than six hours of classroom instruction per 
 12.28  week; or 
 12.29     (iii) any other post-secondary educational program not to 
 12.30  exceed 12 months that is approved by the public school or the 
 12.31  county agency under subdivision 11. 
 12.32     (b)  [ASSESSMENT AND PLAN; REQUIREMENT; CONTENT.] The 
 12.33  county agency must examine the educational level of each 
 12.34  custodial parent under the age of 20 to determine if the 
 12.35  recipient has completed a high school education or its 
 12.36  equivalent.  If the custodial parent has not completed a high 
 13.1   school education or its equivalent and is not exempt from the 
 13.2   requirement to attend school under paragraph (c), the county 
 13.3   agency must complete an individual assessment for the custodial 
 13.4   parent.  The assessment must be performed as soon as possible 
 13.5   but within 60 days of determining AFDC eligibility for the 
 13.6   custodial parent.  The assessment must provide an initial 
 13.7   examination of the custodial parent's educational progress and 
 13.8   needs, literacy level, child care and supportive service needs, 
 13.9   family circumstances, skills, and work experience.  In the case 
 13.10  of a custodial parent under the age of 18, the assessment must 
 13.11  also consider the results of the early and periodic screening, 
 13.12  diagnosis and treatment (EPSDT) screening, if available, and the 
 13.13  effect of a child's development and educational needs on the 
 13.14  parent's ability to participate in the program.  The county 
 13.15  agency must advise the parent that the parent's first goal must 
 13.16  be to complete an appropriate educational option if one is 
 13.17  identified for the parent through the assessment and, in 
 13.18  consultation with educational agencies, must review the various 
 13.19  school completion options with the parent and assist the parent 
 13.20  in selecting the most appropriate option. 
 13.21     (c)  [RESPONSIBILITY FOR ASSESSMENT AND PLAN.] For 
 13.22  custodial parents who are under age 18, the assessment and the 
 13.23  employability plan must be completed by the county social 
 13.24  services agency, as specified in section 257.33.  For custodial 
 13.25  parents who are age 18 or 19, the assessment and employability 
 13.26  plan must be completed by the case manager.  The social services 
 13.27  agency or the case manager shall consult with representatives of 
 13.28  educational agencies required to assist in developing 
 13.29  educational plans under section 126.235. 
 13.30     (d)  [EDUCATION DETERMINED TO BE APPROPRIATE.] If the case 
 13.31  manager or county social services agency identifies an 
 13.32  appropriate educational option, it must develop an employability 
 13.33  plan in consultation with the custodial parent which reflects 
 13.34  the assessment.  The plan must specify that participation in an 
 13.35  educational activity is required, what school or educational 
 13.36  program is most appropriate, the services that will be provided, 
 14.1   the activities the parent will take part in including child care 
 14.2   and supportive services, the consequences to the custodial 
 14.3   parent for failing to participate or comply with the specified 
 14.4   requirements, and the right to appeal any adverse action.  The 
 14.5   employability plan must, to the extent possible, reflect the 
 14.6   preferences of the participant. 
 14.7      (e)  [EDUCATION DETERMINED TO BE NOT APPROPRIATE.] If the 
 14.8   case manager determines that there is no appropriate educational 
 14.9   option for a custodial parent who is age 18 or 19, the case 
 14.10  manager shall indicate the reasons for the determination.  The 
 14.11  case manager shall then notify the county agency which must 
 14.12  refer the custodial parent to case management services under 
 14.13  subdivision 11 for completion of an employability plan and 
 14.14  services.  If the custodial parent fails to participate or 
 14.15  cooperate with case management services and does not have good 
 14.16  cause for the failure, the county agency shall apply the 
 14.17  sanctions listed in subdivision 4, beginning with the first 
 14.18  payment month after issuance of notice.  If the county social 
 14.19  services agency determines that school attendance is not 
 14.20  appropriate for a custodial parent under age 18, the county 
 14.21  agency shall refer the custodial parent to social services for 
 14.22  services as provided in section 257.33. 
 14.23     (f)  [SCHOOL ATTENDANCE REQUIRED.] Notwithstanding 
 14.24  subdivision 3, a custodial parent must attend school if all of 
 14.25  the following apply: 
 14.26     (1) the custodial parent is less than 20 years of age; 
 14.27     (2) transportation services needed to enable the custodial 
 14.28  parent to attend school are available; 
 14.29     (3) licensed or legal nonlicensed child care services 
 14.30  needed to enable the custodial parent to attend school are 
 14.31  available; 
 14.32     (4) the custodial parent has not already received a high 
 14.33  school diploma or its equivalent; and 
 14.34     (5) the custodial parent is not exempt because the 
 14.35  custodial parent: 
 14.36     (i) is ill or incapacitated seriously enough to prevent 
 15.1   attendance at school; 
 15.2      (ii) is needed in the home because of the illness or 
 15.3   incapacity of another member of the household; this includes a 
 15.4   custodial parent of a child who is younger than six weeks of 
 15.5   age; 
 15.6      (iii) works 30 or more hours a week; or 
 15.7      (iv) is pregnant if it has been medically verified that the 
 15.8   child's birth is expected within the next six months. 
 15.9      (g)  [ENROLLMENT AND ATTENDANCE.] The custodial parent must 
 15.10  be enrolled in school and meeting the school's attendance 
 15.11  requirements.  If enrolled, the custodial parent is considered 
 15.12  to be attending when the school is not in regular session, 
 15.13  including during holiday and summer breaks. 
 15.14     (h)  [GOOD CAUSE FOR NOT ATTENDING SCHOOL.] The county 
 15.15  agency shall not impose the sanctions in subdivision 4 if it 
 15.16  determines that a custodial parent has good cause for not being 
 15.17  enrolled or for not meeting the school's attendance 
 15.18  requirements.  The county agency shall determine whether good 
 15.19  cause for not attending or not enrolling in school exists, 
 15.20  according to this paragraph: 
 15.21     (1) Good cause exists when the county agency has verified 
 15.22  that the only available school program requires round trip 
 15.23  commuting time from the custodial parent's residence of more 
 15.24  than two hours by available means of transportation, excluding 
 15.25  the time necessary to transport children to and from child care. 
 15.26     (2) Good cause exists when the custodial parent has 
 15.27  indicated a desire to attend school, but the public school 
 15.28  system is not providing for the education and alternative 
 15.29  programs are not available. 
 15.30     (i)  [FAILURE TO COMPLY.] The case manager and social 
 15.31  services agency shall establish ongoing contact with appropriate 
 15.32  school staff to monitor problems that custodial parents may have 
 15.33  in pursuing their educational plan and shall jointly seek 
 15.34  solutions to prevent parents from failing to complete 
 15.35  education.  If the school notifies the county agency that the 
 15.36  custodial parent is not enrolled or is not meeting the school's 
 16.1   attendance requirements, or appears to be facing barriers to 
 16.2   completing education, the information must be conveyed to the 
 16.3   case manager for a custodial parent age 18 or 19, or to the 
 16.4   social services agency for a custodial parent under age 18.  The 
 16.5   case manager or social services agency shall reassess the 
 16.6   appropriateness of school attendance as specified in paragraph 
 16.7   (f).  If after consultation, school attendance is still 
 16.8   appropriate and the case manager or social services agency 
 16.9   determines that the custodial parent has failed to enroll or is 
 16.10  not meeting the school's attendance requirements and the 
 16.11  custodial parent does not have good cause, the case manager or 
 16.12  social services agency shall inform the custodial parent's 
 16.13  financial worker who shall apply the sanctions listed in 
 16.14  subdivision 4 beginning with the first payment month after 
 16.15  issuance of notice. 
 16.16     (j)  [NOTICE AND HEARING.] A right to notice and fair 
 16.17  hearing shall be provided in accordance with section 256.045 and 
 16.18  the Code of Federal Regulations, title 45, section 205.10. 
 16.19     (k)  [SOCIAL SERVICES.] When a custodial parent under the 
 16.20  age of 18 has failed to attend school, is not exempt, and does 
 16.21  not have good cause, the county agency shall refer the custodial 
 16.22  parent to the social services agency for services, as provided 
 16.23  in section 257.33. 
 16.24     (l)  [VERIFICATION.] No less often than quarterly, the 
 16.25  financial worker must verify that the custodial parent is 
 16.26  meeting the requirements of this subdivision.  Notwithstanding 
 16.27  section 13.32, subdivision 3, when the county agency notifies 
 16.28  the school that a custodial parent is subject to this 
 16.29  subdivision, the school must furnish verification of school 
 16.30  enrollment, attendance, and progress to the county agency.  The 
 16.31  county agency must not impose the sanctions in paragraph (i) if 
 16.32  the school fails to cooperate in providing verification of the 
 16.33  minor parent's education, attendance, or progress. 
 16.34     Sec. 12.  Minnesota Statutes 1994, section 256.736, 
 16.35  subdivision 11, is amended to read: 
 16.36     Subd. 11.  [CASE MANAGEMENT SERVICES.] (a) The county 
 17.1   agency may, to the extent of available resources, enroll 
 17.2   targeted caretakers described in subdivision 16 in case 
 17.3   management services and for those enrolled shall: 
 17.4      (1) Provide an assessment as described in subdivision 10, 
 17.5   paragraph (a), clause (14).  As part of the assessment, the case 
 17.6   manager shall inform caretakers of the screenings available 
 17.7   through the early periodic screening, diagnosis and treatment 
 17.8   (EPSDT) program under chapter 256B and preschool screening under 
 17.9   chapter 123, and encourage caretakers to have their children 
 17.10  screened.  The case manager must work with the caretaker in 
 17.11  completing this task; 
 17.12     (2) Develop an employability development plan as described 
 17.13  in subdivision 10, paragraph (a), clause (15).  The case manager 
 17.14  must work with the caretaker in completing this task.  For 
 17.15  caretakers who are not literate or who have not completed high 
 17.16  school, the first goal for the caretaker should be to complete 
 17.17  literacy training or a general equivalency diploma.  Caretakers 
 17.18  who are literate and have completed high school shall be 
 17.19  counseled to set realistic attainable goals, taking into account 
 17.20  the long-term needs of both the caretaker and the caretaker's 
 17.21  family; 
 17.22     (3) Coordinate services such as child care, transportation, 
 17.23  and education assistance necessary to enable the caretaker to 
 17.24  work toward the goals developed in clause (2).  The case manager 
 17.25  shall refer caretakers to resource and referral services, if 
 17.26  available, and shall assist caretakers in securing appropriate 
 17.27  child care services.  When a client needs child care services in 
 17.28  order to attend a Minnesota public or nonprofit college, 
 17.29  university or technical college, the case manager shall contact 
 17.30  the appropriate agency to reserve child care funds for the 
 17.31  client.  A caretaker who needs child care services in order to 
 17.32  complete high school or a general equivalency diploma is 
 17.33  eligible for child care under sections 256H.01 to 256H.19; 
 17.34     (4) Develop, execute, and monitor a contract between the 
 17.35  county agency and the caretaker.  The contract must be based 
 17.36  upon the employability development plan described in subdivision 
 18.1   10, paragraph (a), clause (15), but must be a separate 
 18.2   document.  It must include:  (a) specific goals of the caretaker 
 18.3   including stated measurements of progress toward each goal, the 
 18.4   estimated length of participation in the program, and the number 
 18.5   of hours of participation per week; (b) educational, training, 
 18.6   and employment activities and support services provided by the 
 18.7   county agency, including child care; and (c) the participant's 
 18.8   obligations and the conditions under which the county will 
 18.9   withdraw the services provided; 
 18.10     The contract must be signed and dated by the case manager 
 18.11  and participant and may include other terms as desired or needed 
 18.12  by either party.  In all cases, however, the case manager must 
 18.13  assist the participant in reviewing and understanding the 
 18.14  contract and must ensure that the caretaker has set forth in the 
 18.15  contract realistic goals consistent with the ultimate goal of 
 18.16  self-sufficiency for the caretaker's family; and 
 18.17     (5) Develop and refer caretakers to counseling or peer 
 18.18  group networks for emotional support while participating in 
 18.19  work, education, or training. 
 18.20     (b) In addition to the duties in paragraph (a), for minor 
 18.21  parents and pregnant minors, the case manager shall: 
 18.22     (1) Ensure that the contract developed under paragraph (a), 
 18.23  clause (4), considers all factors set forth in section 257.33, 
 18.24  subdivision 2; 
 18.25     (2) Inform the minor of the requirement to live with a 
 18.26  parent, legal guardian, or other adult relative, or in an adult- 
 18.27  supervised living arrangement, and the exceptions to this 
 18.28  requirement under section 256.73, subdivision 5a.  Also, the 
 18.29  case manager must assess the housing and support systems needed 
 18.30  by the caretaker in order to provide the dependent children with 
 18.31  adequate parenting.  The case manager shall encourage minor 
 18.32  parents and pregnant minors who are not living with friends or 
 18.33  relatives to live in a group home or foster care setting.  If 
 18.34  minor parents and pregnant minors are unwilling to live in a 
 18.35  group home or foster care setting or if no group home or foster 
 18.36  care setting is available, If no suitable living arrangement is 
 19.1   available in accordance with section 256.73, subdivision 5a, the 
 19.2   case manager shall assess their the minor parent's or pregnant 
 19.3   minor's need for training in parenting and independent living 
 19.4   skills and when appropriate shall, refer them the minor to 
 19.5   available counseling programs designed to teach needed skills; 
 19.6   and 
 19.7      (3) Inform minor parents or pregnant minors of, and assist 
 19.8   them in evaluating the appropriateness of, the high school 
 19.9   graduation incentives program under section 126.22, including 
 19.10  post-secondary enrollment options, and the employment-related 
 19.11  and community-based instruction programs.  
 19.12     (c) A caretaker may request a conciliation conference to 
 19.13  attempt to resolve disputes regarding the contents of a contract 
 19.14  developed under this section or a housing and support systems 
 19.15  assessment conducted under this section.  The caretaker may 
 19.16  request a hearing pursuant to section 256.045 to dispute the 
 19.17  contents of a contract or assessment developed under this 
 19.18  section.  The caretaker need not request a conciliation 
 19.19  conference in order to request a hearing pursuant to section 
 19.20  256.045. 
 19.21     Sec. 13.  Minnesota Statutes 1995 Supplement, section 
 19.22  256.736, subdivision 14, is amended to read: 
 19.23     Subd. 14.  [JOB SEARCH.] (a) Each county agency must 
 19.24  establish and operate a job search program as provided under 
 19.25  this section.  Unless all caretakers in the household are 
 19.26  exempt, one nonexempt caretaker in each AFDC-UP household must 
 19.27  be referred to and begin participation in the job search program 
 19.28  within 30 days of being determined eligible for AFDC.  If the 
 19.29  assistance unit contains more than one nonexempt caretaker, the 
 19.30  caretakers may determine which caretaker shall participate.  The 
 19.31  designation may be changed only once annually at the annual 
 19.32  redetermination of eligibility.  If no designation is made or if 
 19.33  the caretakers cannot agree, the county agency shall designate 
 19.34  the caretaker having earned the greater of the incomes, 
 19.35  including in-kind income, during the 24-month period immediately 
 19.36  preceding the month of application for AFDC benefits as the 
 20.1   caretaker that must participate.  When no designation is made or 
 20.2   the caretakers cannot agree and neither caretaker had earnings 
 20.3   or the earnings were identical for each caretaker, then the 
 20.4   county agency shall designate the caretaker who must 
 20.5   participate.  A caretaker is exempt from job search 
 20.6   participation if: 
 20.7      (1) the caretaker is exempt from registration under 
 20.8   subdivision 3; or 
 20.9      (2) the caretaker is under age 25, has not completed a high 
 20.10  school diploma or an equivalent program, and is participating in 
 20.11  a secondary education program as defined in subdivision 10, 
 20.12  paragraph (a), clause (17), which is approved by the employment 
 20.13  and training service provider in the employability development 
 20.14  plan. 
 20.15     (b) The job search program must provide no more than four 
 20.16  consecutive weeks of job search activities for no less than 20 
 20.17  hours per week but not more than 32 hours per week.  The job 
 20.18  search is only for the first four weeks in which an individual 
 20.19  is required to work.  The employment and training service 
 20.20  provider shall specify for each participating caretaker the 
 20.21  number of weeks and hours of job search to be conducted and 
 20.22  shall report to the county agency if the caretaker fails to 
 20.23  cooperate with the job search requirement.  A person for whom 
 20.24  lack of proficiency in English, as determined by an appropriate 
 20.25  evaluation, is a barrier to employment, can choose to attend an 
 20.26  available intensive, functional work literacy program for a 
 20.27  minimum of 20 hours in place of the 20 hours of job search 
 20.28  activities.  The caretaker's employability development plan must 
 20.29  include the length of time needed in the program, specific 
 20.30  outcomes, attendance requirements, completion dates, and 
 20.31  employment goals as they pertain to the intensive literacy 
 20.32  program. 
 20.33     (c) The job search program may provide services to 
 20.34  non-AFDC-UP caretakers. 
 20.35     (d) After completion of job search requirements in this 
 20.36  section, if the caretaker is not employed, nonexempt caretakers 
 21.1   shall be placed in and must participate in and cooperate with 
 21.2   the work experience program under section 256.737, the 
 21.3   on-the-job training program under section 256.738, or the grant 
 21.4   diversion program under section 256.739.  Caretakers must be 
 21.5   offered placement in a grant diversion or on-the-job training 
 21.6   program, if either such employment is available, before being 
 21.7   required to participate in a community work experience program 
 21.8   under section 256.737.  When a nonexempt caretaker fails to 
 21.9   cooperate with the job search program, the work experience 
 21.10  program, the on-the-job training program, or the community work 
 21.11  experience program and is subject to the sanction provisions of 
 21.12  subdivision 4, the second caretaker in the assistance unit, 
 21.13  unless exempt, must also be removed from the grant unless that 
 21.14  second caretaker has been referred to and has started 
 21.15  participating in the job search program and subsequently in the 
 21.16  work experience program, the on-the-job training program, or the 
 21.17  community work experience program prior to the date the sanction 
 21.18  begins for the first caretaker.  The second caretaker is 
 21.19  ineligible for AFDC until the first caretaker's sanction ends or 
 21.20  the second caretaker cooperates with the requirements. 
 21.21     Sec. 14.  Minnesota Statutes 1995 Supplement, section 
 21.22  256.736, subdivision 16, is amended to read: 
 21.23     Subd. 16.  [ALLOCATION AND USE OF MONEY.] (a) State money 
 21.24  appropriated for employment and training services under this 
 21.25  section must be allocated to counties as specified in paragraphs 
 21.26  (b) to (l). 
 21.27     (b) For purposes of this subdivision, "targeted caretaker" 
 21.28  means a recipient who: 
 21.29     (1) is a custodial parent under the age of 24 who:  (i) has 
 21.30  not completed a high school education and at the time of 
 21.31  application for AFDC is not enrolled in high school or in a high 
 21.32  school equivalency program; or (ii) had little or no work 
 21.33  experience in the preceding year; 
 21.34     (2) is a member of a family in which the youngest child is 
 21.35  within two years of being ineligible for AFDC due to age; or 
 21.36     (3) has received 36 24 months or more of AFDC over the last 
 22.1   60 months. 
 22.2      (c) One hundred percent of the money appropriated for case 
 22.3   management services as described in subdivision 11 must be 
 22.4   allocated to counties based on the average number of cases in 
 22.5   each county described in clause (1).  Money appropriated for 
 22.6   employment and training services as described in subdivision 1a, 
 22.7   paragraph (d), other than case management services, must be 
 22.8   allocated to counties as follows: 
 22.9      (1) Forty percent of the state money must be allocated 
 22.10  based on the average number of cases receiving AFDC in the 
 22.11  county which either have been open for 36 or more consecutive 
 22.12  months or have a caretaker who is under age 24 and who has no 
 22.13  high school or general equivalency diploma.  The average number 
 22.14  of cases must be based on counts of these cases as of March 31, 
 22.15  June 30, September 30, and December 31 of the previous year. 
 22.16     (2) Twenty percent of the state money must be allocated 
 22.17  based on the average number of cases receiving AFDC in the 
 22.18  county which are not counted under clause (1).  The average 
 22.19  number of cases must be based on counts of cases as of March 31, 
 22.20  June 30, September 30, and December 31 of the previous year.  
 22.21     (3) Twenty-five percent of the state money must be 
 22.22  allocated based on the average monthly number of assistance 
 22.23  units in the county receiving AFDC-UP for the period ending 
 22.24  December 31 of the previous year. 
 22.25     (4) Fifteen percent of the state money must be allocated at 
 22.26  the discretion of the commissioner based on participation levels 
 22.27  for target group members in each county. 
 22.28     (d) No more than 15 percent of the money allocated under 
 22.29  paragraph (b) and no more than 15 percent of the money allocated 
 22.30  under paragraph (c) may be used for administrative activities. 
 22.31     (e) At least 55 percent of the money allocated to counties 
 22.32  under paragraph (c) must be used for employment and training 
 22.33  services for caretakers in the target groups, and up to 45 
 22.34  percent of the money may be used for employment and training 
 22.35  services for nontarget caretakers.  One hundred percent of the 
 22.36  money allocated to counties for case management services must be 
 23.1   used to provide those services to caretakers in the target 
 23.2   groups. 
 23.3      (f) Money appropriated to cover the nonfederal share of 
 23.4   costs for bilingual case management services to refugees for the 
 23.5   employment and training programs under this section are 
 23.6   allocated to counties based on each county's proportion of the 
 23.7   total statewide number of AFDC refugee cases.  However, counties 
 23.8   with less than one percent of the statewide number of AFDC 
 23.9   refugee cases do not receive an allocation.  
 23.10     (g) Counties, the department of economic security, and 
 23.11  entities under contract with either the department of economic 
 23.12  security or the department of human services for provision of 
 23.13  STRIDE related services shall bill the commissioner of human 
 23.14  services for any expenditures incurred by the county, the 
 23.15  county's employment and training service provider, or the 
 23.16  department of economic security that may be reimbursed by 
 23.17  federal money.  The commissioner of human services shall bill 
 23.18  the United States Department of Health and Human Services and 
 23.19  the United States Department of Agriculture for the 
 23.20  reimbursement and appropriate the reimbursed money to the 
 23.21  county, the department of economic security, or employment and 
 23.22  training service provider that submitted the original bill.  The 
 23.23  reimbursed money must be used to expand employment and training 
 23.24  services. 
 23.25     (h) The commissioner of human services shall review county 
 23.26  expenditures of case management and employment and training 
 23.27  block grant money at the end of the third quarter of the 
 23.28  biennium and each quarter after that, and may reallocate 
 23.29  unencumbered or unexpended money allocated under this section to 
 23.30  those counties that can demonstrate a need for additional 
 23.31  money.  Reallocation of funds must be based on the formula set 
 23.32  forth in paragraph (a), excluding the counties that have not 
 23.33  demonstrated a need for additional funds. 
 23.34     (i) The county agency may continue to provide case 
 23.35  management and supportive services to a participant for up to 90 
 23.36  days after the participant loses AFDC eligibility and may 
 24.1   continue providing a specific employment and training service 
 24.2   for the duration of that service to a participant if funds for 
 24.3   the service are obligated or expended prior to the participant 
 24.4   losing AFDC eligibility. 
 24.5      (j) One hundred percent of the money appropriated for an 
 24.6   unemployed parent work experience program under section 256.737 
 24.7   must be allocated to counties based on the average monthly 
 24.8   number of assistance units in the county receiving AFDC-UP for 
 24.9   the period ending December 31 of the previous year. 
 24.10     (k) The commissioner may waive the requirement of paragraph 
 24.11  (e) that case management funds be spent only on case management 
 24.12  services in order to permit the development of a unified STRIDE 
 24.13  funding allocation for each county agency.  The unified 
 24.14  allocation may be expended by the county agency for case 
 24.15  management and employment and training activities in the 
 24.16  proportion determined necessary to streamline administrative 
 24.17  procedures and enhance program performance.  The commissioner, 
 24.18  in consultation with the commissioner of economic security, may 
 24.19  also grant a waiver from program spending limits in paragraphs 
 24.20  (d) and (e) to any county which can demonstrate increased 
 24.21  program effectiveness through a written request to the 
 24.22  department.  Counties which request a waiver of the spending 
 24.23  limits in paragraphs (d) and (e) shall amend their local service 
 24.24  unit plans and receive approval of the plans prior to commencing 
 24.25  the waiver.  The commissioners of human services and economic 
 24.26  security shall annually evaluate the effectiveness of all 
 24.27  waivers approved under this subdivision. 
 24.28     (l) Effective July 1, 1995, the commissioner of human 
 24.29  services shall begin developing a performance model for the 
 24.30  purpose of analyzing each county's performance in the provision 
 24.31  of STRIDE employment and training services.  Beginning February 
 24.32  1, 1997, and each year thereafter, the commissioner of human 
 24.33  services shall inform each county of the county's performance 
 24.34  based upon the following measures: 
 24.35     (1) employment rate at termination of STRIDE eligibility; 
 24.36     (2) wage rate at termination of STRIDE eligibility; 
 25.1      (3) average annual cost per placement calculated by 
 25.2   dividing the total STRIDE expenditures by the number of 
 25.3   participants placed in unsubsidized employment; 
 25.4      (4) AFDC-UP participation rate; 
 25.5      (5) percentage of 18- and 19-year-old custodial parents 
 25.6   subject to secondary education requirements of subdivision 3b 
 25.7   who complete secondary education or equivalent course of study; 
 25.8   and 
 25.9      (6) achievement of federally mandated JOBS participation 
 25.10  rate. 
 25.11     Performance measures (1), (2), and (3) shall be adjusted to 
 25.12  reflect local conditions. 
 25.13     County agencies must take the results of these performance 
 25.14  measures into consideration when selecting employment and 
 25.15  training service providers. 
 25.16     Sec. 15.  Minnesota Statutes 1995 Supplement, section 
 25.17  256.74, subdivision 1, is amended to read: 
 25.18     Subdivision 1.  [AMOUNT.] (a) The amount of assistance 
 25.19  which shall be granted to or on behalf of any dependent child 
 25.20  and parent or other needy eligible relative caring for the 
 25.21  dependent child shall be determined by the county agency in 
 25.22  accordance with rules promulgated by the commissioner and shall 
 25.23  be sufficient, when added to all other income and support 
 25.24  available to the child, to provide the child with a reasonable 
 25.25  subsistence compatible with decency and health. 
 25.26     (b) The commissioner has the authority to ratably reduce 
 25.27  the amount of the cash assistance grant in order to stay within 
 25.28  the limits of the available appropriation.  The commissioner 
 25.29  must meet the conditions under section 256.01, subdivision 2, 
 25.30  clause (12), before implementing the ratable reduction. 
 25.31     (c) To the extent permissible under federal law, an 
 25.32  eligible relative caretaker or parent shall have the option to 
 25.33  include in the assistance unit the needs, income, and resources 
 25.34  of the following essential persons who are not otherwise 
 25.35  eligible for AFDC because they do not qualify as a caretaker or 
 25.36  as a dependent child: 
 26.1      (1) a parent or relative caretaker's spouse and 
 26.2   stepchildren; or 
 26.3      (2) blood or legally adopted relatives who are under the 
 26.4   age of 18 or under the age of 19 years who are regularly 
 26.5   attending as a full-time student, and are expected to complete 
 26.6   before or during the month of their 19th birthday, a high school 
 26.7   or secondary level course of vocational or technical training 
 26.8   designed to prepare students for gainful employment. 
 26.9      (d) The amount of assistance given to an eligible family in 
 26.10  which at least one of the caretakers in the family unit has 
 26.11  resided in Minnesota for at least 12 months shall be based on 
 26.12  the method of budgeting required in Public Law Number 97-35, 
 26.13  section 2315, United States Code, title 42, section 602, as 
 26.14  amended and federal regulations at Code of Federal Regulations, 
 26.15  title 45, section 233.  The amount of assistance given to an 
 26.16  eligible family in which the caretakers in the family unit have 
 26.17  resided in Minnesota for less than 12 months shall be the lesser 
 26.18  of either (1) the maximum payment amount the family would have 
 26.19  received from the state of immediate prior residence, or (2) the 
 26.20  amount calculated in accordance with Minnesota Rules, parts 
 26.21  9500.2440 to 9500.2480. 
 26.22     (e) Nonrecurring lump sum income received by an AFDC family 
 26.23  must be budgeted in the normal retrospective cycle.  When the 
 26.24  family's income, after application of the applicable disregards, 
 26.25  exceeds the need standard for the family because of receipt of 
 26.26  earned or unearned lump sum income, the family will be 
 26.27  ineligible for the full number of months derived by dividing the 
 26.28  sum of the lump sum income and other income by the monthly need 
 26.29  standard for a family of that size.  Any income remaining from 
 26.30  this calculation is income in the first month following the 
 26.31  period of ineligibility.  The first month of ineligibility is 
 26.32  the payment month that corresponds with the budget month in 
 26.33  which the lump sum income was received.  For purposes of 
 26.34  applying the lump sum provision, family includes those persons 
 26.35  defined in the Code of Federal Regulations, title 45, section 
 26.36  233.20(a)(3)(ii)(F).  A period of ineligibility must be 
 27.1   shortened when the standard of need increases and the amount the 
 27.2   family would have received also changes, an amount is documented 
 27.3   as stolen, an amount is unavailable because a member of the 
 27.4   family left the household with that amount and has not returned, 
 27.5   an amount is paid by the family during the period of 
 27.6   ineligibility to cover a cost that would otherwise qualify for 
 27.7   emergency assistance, or the family incurs and pays for medical 
 27.8   expenses which would have been covered by medical assistance if 
 27.9   eligibility existed. 
 27.10     (f) In making its determination determining the amount of 
 27.11  assistance a family will receive, the county agency shall 
 27.12  disregard the following from family income:  
 27.13     (1) all the earned income of each dependent child or minor 
 27.14  caretaker applying for or receiving AFDC, up to $800 gross 
 27.15  income per month, if the child is a full-time student and all of 
 27.16  the earned income of each dependent child receiving AFDC who is 
 27.17  a full-time student or is a part-time student who is not a 
 27.18  full-time employee, up to $800 gross income per month.  A 
 27.19  student is one who is attending a school, college, or 
 27.20  university, or a course of vocational or technical training 
 27.21  designed to fit students for gainful employment and includes a 
 27.22  participant in the Job Corps program under the Job Training 
 27.23  Partnership Act (JTPA).  The county agency shall also 
 27.24  disregard all income of each dependent child applying for or 
 27.25  receiving AFDC, up to $800 gross income per month, when the 
 27.26  income is derived from a program carried out under JTPA, except 
 27.27  that disregard of earned income may not exceed six months per 
 27.28  calendar year; 
 27.29     (2) up to $2,500 per year set aside in a separate savings 
 27.30  account specifically for future education or employment needs of 
 27.31  a dependent child or a minor caretaker; 
 27.32     (3) all educational assistance, except the county agency 
 27.33  shall count graduate student teaching assistantships, 
 27.34  fellowships, and other similar paid work as earned income and, 
 27.35  after allowing deductions for any unmet and necessary 
 27.36  educational expenses, shall count scholarships or grants awarded 
 28.1   to graduate students that do not require teaching or research as 
 28.2   unearned income; 
 28.3      (3) (4) the first $90 of each individual's earned income.  
 28.4   For self-employed persons, the expenses directly related to 
 28.5   producing goods and services and without which the goods and 
 28.6   services could not be produced shall be disregarded pursuant to 
 28.7   rules promulgated by the commissioner; 
 28.8      (4) (5) thirty dollars plus one-third of each individual's 
 28.9   earned income for individuals found otherwise eligible to 
 28.10  receive aid or who have received aid in one of the four months 
 28.11  before the month of application.  With respect to any month, the 
 28.12  county welfare agency shall not disregard under this clause any 
 28.13  earned income of any person who has:  (a) reduced earned income 
 28.14  without good cause within 30 days preceding any month in which 
 28.15  an assistance payment is made; (b) refused without good cause to 
 28.16  accept an offer of suitable employment; (c) left employment or 
 28.17  reduced earnings without good cause and applied for assistance 
 28.18  so as to be able later to return to employment with the 
 28.19  advantage of the income disregard; or (d) failed without good 
 28.20  cause to make a timely report of earned income in accordance 
 28.21  with rules promulgated by the commissioner of human services.  
 28.22  Persons who are already employed and who apply for assistance 
 28.23  shall have their needs computed with full account taken of their 
 28.24  earned and other income.  If earned and other income of the 
 28.25  family is less than need, as determined on the basis of public 
 28.26  assistance standards, the county agency shall determine the 
 28.27  amount of the grant by applying the disregard of income 
 28.28  provisions.  The county agency shall not disregard earned income 
 28.29  for persons in a family if the total monthly earned and other 
 28.30  income exceeds their needs, unless for any one of the four 
 28.31  preceding months their needs were met in whole or in part by a 
 28.32  grant payment.  The disregard of $30 and one-third of earned 
 28.33  income in this clause shall be applied to the individual's 
 28.34  income for a period not to exceed four consecutive months.  Any 
 28.35  month in which the individual loses this disregard because of 
 28.36  the provisions of subclauses (a) to (d) shall be considered as 
 29.1   one of the four months.  An additional $30 work incentive must 
 29.2   be available for an eight-month period beginning in the month 
 29.3   following the last month of the combined $30 and one-third work 
 29.4   incentive.  This period must be in effect whether or not the 
 29.5   person has earned income or is eligible for AFDC.  To again 
 29.6   qualify for the earned income disregards under this clause, the 
 29.7   individual must not be a recipient of aid for a period of 12 
 29.8   consecutive months.  When an assistance unit becomes ineligible 
 29.9   for aid due to the fact that these disregards are no longer 
 29.10  applied to income, the assistance unit shall be eligible for 
 29.11  medical assistance benefits for a 12-month period beginning with 
 29.12  the first month of AFDC ineligibility; 
 29.13     (5) (6) an amount equal to the actual expenditures for the 
 29.14  care of each dependent child or incapacitated individual living 
 29.15  in the same home and receiving aid, not to exceed:  (a) $175 for 
 29.16  each individual age two and older, and $200 for each individual 
 29.17  under the age of two.  The dependent care disregard must be 
 29.18  applied after all other disregards under this subdivision have 
 29.19  been applied; 
 29.20     (6) the first $50 per assistance unit of the monthly 
 29.21  support obligation collected by the support and recovery (IV-D) 
 29.22  unit.  The first $50 of periodic support payments collected by 
 29.23  the public authority responsible for child support enforcement 
 29.24  from a person with a legal obligation to pay support for a 
 29.25  member of the assistance unit must be paid to the assistance 
 29.26  unit within 15 days after the end of the month in which the 
 29.27  collection of the periodic support payments occurred and must be 
 29.28  disregarded when determining the amount of assistance.  A review 
 29.29  of a payment decision under this clause must be requested within 
 29.30  30 days after receiving the notice of collection of assigned 
 29.31  support or within 90 days after receiving the notice if good 
 29.32  cause can be shown for not making the request within the 30-day 
 29.33  limit; 
 29.34     (7) that portion of an insurance settlement earmarked and 
 29.35  used to pay medical expenses, funeral and burial costs, or to 
 29.36  repair or replace insured property; and 
 30.1      (8) all earned income tax credit payments received by the 
 30.2   family as a refund of federal income taxes or made as advance 
 30.3   payments by an employer.  
 30.4      All payments made pursuant to a court order for the support 
 30.5   of children not living in the assistance unit's household shall 
 30.6   be disregarded from the income of the person with the legal 
 30.7   obligation to pay support, provided that, if there has been a 
 30.8   change in the financial circumstances of the person with the 
 30.9   legal obligation to pay support since the support order was 
 30.10  entered, the person with the legal obligation to pay support has 
 30.11  petitioned for a modification of the support order. 
 30.12     Sec. 16.  Minnesota Statutes 1995 Supplement, section 
 30.13  256.76, subdivision 1, is amended to read: 
 30.14     Subdivision 1.  Upon the completion of the investigation 
 30.15  the county agency shall decide whether the child is eligible for 
 30.16  assistance under the provisions of sections 256.72 to 256.87 and 
 30.17  determine the amount of the assistance and the date on which the 
 30.18  assistance begins.  A decision on an application for assistance 
 30.19  must be made as promptly as possible and no more than 30 days 
 30.20  from the date of application.  Notwithstanding section 393.07, 
 30.21  the county agency shall not delay approval or issuance of 
 30.22  assistance pending formal action of the county board of 
 30.23  commissioners.  The first month's grant shall be based upon that 
 30.24  portion of the month from the date of application, or from the 
 30.25  date that the applicant meets all eligibility factors, whichever 
 30.26  occurs later, provided that on the date that assistance is first 
 30.27  requested, the county agency shall inquire and determine whether 
 30.28  the person requesting assistance is in immediate need of food, 
 30.29  shelter, clothing, or other emergency assistance.  If an 
 30.30  emergency need is found to exist, the applicant shall be granted 
 30.31  assistance pursuant to section 256.871 within a reasonable 
 30.32  period of time.  It The county shall make a grant of assistance 
 30.33  which shall be binding upon the county and be complied with by 
 30.34  the county until the grant is modified or vacated.  The county 
 30.35  agency shall notify the applicant of its decision in writing.  
 30.36  The assistance shall be paid monthly to the applicant or to the 
 31.1   vendor of medical care upon order of the county agency from 
 31.2   funds appropriated to the county agency for this purpose.  
 31.3      Sec. 17.  [PLAN FOR THE FUTURE OF WELFARE.] 
 31.4      The commissioner of human services shall develop a plan and 
 31.5   provide draft legislation to the chairs of the senate family 
 31.6   services committee and the health and human services finance 
 31.7   division, and the house human services committee and health and 
 31.8   human services finance division by December 1, 1996.  
 31.9      The plan must provide recommendations for overhauling each 
 31.10  of the programs affected by the federal welfare reform agenda, 
 31.11  and draft legislation corresponding to the recommendations with 
 31.12  a thorough summary of the legislation.  The commissioner shall 
 31.13  take into consideration the following direction from the 
 31.14  legislature when overhauling the welfare system with regard to 
 31.15  the: 
 31.16     (1) Minnesota family investment program; if the current 
 31.17  MFIP model is not feasible in the context of the federal funding 
 31.18  and terms for block grants, the commissioner shall consider 
 31.19  providing a stabilization grant for a period of six months, 
 31.20  followed by a lower grant amount to supplement wages with 
 31.21  reasonable income disregards and reasonable exceptions.  The 
 31.22  importance of becoming employed must be emphasized from the 
 31.23  beginning, and there must be a meaningful connection between 
 31.24  MFIP and other supportive programs available to the recipient; 
 31.25     (2) AFDC program; eliminate entitlement to assistance, 
 31.26  terminate assistance after five years, determine hardship 
 31.27  exceptions for persons who receive AFDC for more than five years 
 31.28  and a way to track assistance across state lines, and make a 
 31.29  recommendation if assistance should be limited to legal 
 31.30  noncitizens; and 
 31.31     (3) child care program; consolidate and streamline funding, 
 31.32  statutes, and rules related to child care to create a seamless 
 31.33  child care service delivery system, support low-income families 
 31.34  by providing child care services, strengthen public and private 
 31.35  partnerships to increase capacity, and subsidize parents' cost 
 31.36  of care. 
 32.1      Further, the commissioners of human services, health, 
 32.2   economic security, and children, families, and learning, shall, 
 32.3   upon request of a county, work with and jointly develop a 
 32.4   proposal that permits the county to merge funding and services 
 32.5   in order to meet the individual needs of eligible clients.  The 
 32.6   proposal and draft legislation are due to the chairs of the 
 32.7   senate family services committee and health and human services 
 32.8   finance division, and the house human services committee and 
 32.9   health and human services finance division by December 1, 1996. 
 32.10     Sec. 18.  [REPEALER.] 
 32.11     Minnesota Statutes 1994, section 256.871, subdivisions 3 
 32.12  and 4; and Laws 1995, chapter 178, article 2, section 46, are 
 32.13  repealed. 
 32.14     Sec. 19.  [EFFECTIVE DATE.] 
 32.15     (a) Sections 2 to 7 and 15, paragraphs (d) and (f), are 
 32.16  effective the day following final enactment to the extent 
 32.17  permitted by federal law.  If any provisions of sections 2 to 7 
 32.18  and 15, paragraphs (d) and (f), conflict with federal law, those 
 32.19  provisions shall become effective if federal law is changed to 
 32.20  permit their application upon publication by the commissioner of 
 32.21  human services in the State Register of a notice to that 
 32.22  effect.  The commissioner must include the notice in the first 
 32.23  State Register published after the effective date of the federal 
 32.24  changes.  If, by October 1, 1996, any provisions of sections 2 
 32.25  to 7 and 15, paragraphs (d) and (f), are not effective because 
 32.26  of conflicts with federal law, the commissioner shall apply to 
 32.27  the federal government for a waiver of those prohibitions, and 
 32.28  those provisions of sections 2 to 7 and 15, paragraphs (d) and 
 32.29  (f), shall become effective upon receipt of a federal waiver and 
 32.30  publication of a notice in the State Register to that effect. 
 32.31     (b) Sections 1, 8 to 15, paragraphs (a), (b), (c), and (e), 
 32.32  and 16, are effective October 1, 1996.  With regard to the 
 32.33  change in educational options available to public assistance 
 32.34  recipients, a STRIDE participant under Minnesota Statutes, 
 32.35  section 256.736, who has an employability development plan (EDP) 
 32.36  as of the effective date of this legislation that includes a 
 33.1   provision allowing the individual to participate in an 
 33.2   educational program that exceeds 12 months, may continue with 
 33.3   the educational goal in accordance with the approved EDP, 
 33.4   provided the individual diligently strives towards that goal, 
 33.5   and complies with all the conditions and requirements of the 
 33.6   plan and the program. 
 33.7      (c) Section 7 is effective July 1, 1996.