1.1                          A bill for an act 
  1.2             relating to human services; replacing the aid to 
  1.3             families with dependent children program with the 
  1.4             Minnesota family investment program-statewide; 
  1.5             amending Minnesota Statutes 1996, sections 13.46, 
  1.6             subdivisions 1 and 2; 84.98, subdivision 3; 124.17, 
  1.7             subdivisions 1d and 1e; 124.175; 124A.02, subdivision 
  1.8             16; 124A.22, subdivision 3; 136A.125, subdivision 2; 
  1.9             196.27; 237.70, subdivision 4a; 254B.02, subdivision 
  1.10            1; 256.01, subdivisions 2 and 4a; 256.017, 
  1.11            subdivisions 1 and 4; 256.019; 256.031, subdivision 5, 
  1.12            and by adding subdivisions; 256.033, subdivisions 1 
  1.13            and 1a; 256.046, subdivision 1; 256.736, subdivision 
  1.14            3a; 256.74, subdivision 1; 256.82, subdivision 2; 
  1.15            256.935, subdivision 1; 256.9354, by adding a 
  1.16            subdivision; 256.98, subdivision 8; 256.981; 256.983, 
  1.17            subdivisions 1 and 4; 256.9861, subdivision 5; 
  1.18            256B.055, subdivisions 3, 5, and by adding 
  1.19            subdivisions; 256B.056, subdivisions 1a, 3, and 4; 
  1.20            256B.057, subdivisions 1, 1b, and 2b; 256B.06, 
  1.21            subdivision 4; 256B.062; 256D.01, subdivisions 1, 1a, 
  1.22            and 1e; 256D.02, subdivisions 6 and 12a; 256D.03, 
  1.23            subdivision 3; 256D.05, subdivisions 1, 2, 5, 7, and 
  1.24            8; 256D.051, subdivisions 1a, 2a, 3a, and by adding a 
  1.25            subdivision; 256D.055; 256D.06, subdivisions 2 and 5; 
  1.26            256D.08, subdivisions 1 and 2; 256D.09, by adding a 
  1.27            subdivision; 256D.435, subdivision 3; 256D.44, 
  1.28            subdivision 5; 256E.03, subdivision 2; 256E.06, 
  1.29            subdivisions 1 and 3; 256E.07, subdivision 1; 256E.08, 
  1.30            subdivision 3; 256F.04, subdivisions 1 and 2; 256F.05, 
  1.31            subdivisions 2, 3, 4, 5, and 8; 256F.06, subdivisions 
  1.32            1 and 2; 256G.01, subdivision 4; 256G.02, subdivision 
  1.33            6; 257.3573, subdivision 2; 259.67, subdivision 4; 
  1.34            260.38; 268.0111, subdivisions 5 and 7; 268.0122, 
  1.35            subdivision 3; 268.552, subdivision 5; 268.6751, 
  1.36            subdivision 1; 268.676, subdivision 1; 268.86, 
  1.37            subdivision 2; 268.871, subdivision 1; 268.90, 
  1.38            subdivision 2; 268.916; 268.95, subdivision 4; 393.07, 
  1.39            subdivision 6; and 477A.0122, subdivision 2; proposing 
  1.40            coding for new law in Minnesota Statutes, chapters 
  1.41            256B; and 256D; proposing coding for new law as 
  1.42            Minnesota Statutes, chapters 256J; and 256K; repealing 
  1.43            Minnesota Statutes 1996, sections 256.12, subdivisions 
  1.44            9, 10, 14, 15, 20, 21, 22, and 23; 256.72; 256.73; 
  1.45            256.7341; 256.7351; 256.7352; 256.7353; 256.7354; 
  1.46            256.7355; 256.7356; 256.7357; 256.7358; 256.7359; 
  2.1             256.736, subdivision 19; 256.7365; 256.7366; 256.7381; 
  2.2             256.7382; 256.7383; 256.7384; 256.7385; 256.7386; 
  2.3             256.7387; 256.7388; 256.74, subdivisions 1, 1a, 1b, 2, 
  2.4             and 6; 256.745; 256.75; 256.76; 256.78; 256.80; 
  2.5             256.81; 256.82; 256.84; 256.85; 256.86; 256.863; 
  2.6             256.871; 256.8711; 256.879; 256D.02, subdivision 5; 
  2.7             256D.05, subdivisions 3 and 3a; 256D.0511; 256D.065; 
  2.8             256F.05, subdivisions 5 and 7; and 256G.05, 
  2.9             subdivision 2. 
  2.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.11                             ARTICLE 1 
  2.12           MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 
  2.13     Section 1.  [256J.01] [ESTABLISHING MINNESOTA FAMILY 
  2.14  INVESTMENT PROGRAM-STATEWIDE.] 
  2.15     Subdivision 1.  [IMPLEMENTATION OF MINNESOTA FAMILY 
  2.16  INVESTMENT PROGRAM-STATEWIDE (MFIP-S).] This chapter and chapter 
  2.17  256K may be cited as the Minnesota family investment 
  2.18  program-statewide (MFIP-S).  MFIP-S is the statewide 
  2.19  implementation of components of the Minnesota family investment 
  2.20  plan (MFIP) authorized under section 256.031 and Minnesota 
  2.21  family investment plan-Ramsey county (MFIP-R) in section 256.047.
  2.22     Subd. 2.  [IMPLEMENTATION OF TEMPORARY ASSISTANCE FOR NEEDY 
  2.23  FAMILIES (TANF).] The Personal Responsibility and Work 
  2.24  Opportunity Reconciliation Act of 1996, Public Law Number 
  2.25  104-193, eliminates the entitlement program of aid to families 
  2.26  with dependent children (AFDC) and replaces it with block grants 
  2.27  to states for temporary assistance for needy families (TANF).  
  2.28  TANF provides cash assistance for a limited time to families 
  2.29  with children and to pregnant women.  Minnesota's TANF 
  2.30  assistance will be provided through a statewide expansion of 
  2.31  MFIP.  The modifications specified in this chapter are necessary 
  2.32  to comply with the new federal law and to improve MFIP.  
  2.33  Applicants and recipients of AFDC, family general assistance, 
  2.34  and food stamps will be converted to the MFIP-S program.  The 
  2.35  conversion to MFIP-S must be made on December 1, 1997. 
  2.36     Subd. 3.  [RELATIONSHIP TO OTHER STATUTES AND 
  2.37  RULES.] MFIP-S replaces eligibility for families with children 
  2.38  and pregnant women under the general assistance program, 
  2.39  governed by sections 256D.01 to 256D.21 and Minnesota Rules, 
  2.40  parts 9500.1200 to 9500.1270.  
  3.1      Subd. 4.  [CHANGES TO WAIVERS.] The commissioner of human 
  3.2   services may negotiate and obtain changes in the federal waivers 
  3.3   and terms and conditions contained in the MFIP, MFIP-R, and 
  3.4   MFIP-S programs.  The commissioner may also terminate federal 
  3.5   waivers by directing so in the applicable state plan. 
  3.6      Subd. 5.  [COMPLIANCE SYSTEM.] The commissioner shall 
  3.7   administer a compliance system for the state's temporary 
  3.8   assistance for needy families (TANF) program, the food stamp 
  3.9   program, emergency assistance, general assistance, medical 
  3.10  assistance, general assistance medical care, emergency general 
  3.11  assistance, Minnesota supplemental aid, preadmission screening, 
  3.12  child support program, and alternative care grants under the 
  3.13  powers and authorities named in section 256.01, subdivision 2.  
  3.14  The purpose of the compliance system is to permit the 
  3.15  commissioner to supervise the administration of public 
  3.16  assistance programs and to enforce timely and accurate 
  3.17  distribution of benefits, completeness of service and efficient 
  3.18  and effective program management and operations, to increase 
  3.19  uniformity and consistency in the administration and delivery of 
  3.20  public assistance programs throughout the state, and to reduce 
  3.21  the possibility of sanction and fiscal disallowances for 
  3.22  noncompliance with federal regulations and state statutes. 
  3.23     Sec. 2.  [256J.02] [FEDERAL TEMPORARY ASSISTANCE FOR NEEDY 
  3.24  FAMILIES BLOCK GRANT.] 
  3.25     Subdivision 1.  [COMMISSIONER'S AUTHORITY TO ADMINISTER 
  3.26  BLOCK GRANT FUNDS.] The commissioner of human services is 
  3.27  authorized to receive, administer, and expend funds available 
  3.28  under the TANF block grant authorized under title I of Public 
  3.29  Law Number 104-193, the Personal Responsibility and Work 
  3.30  Opportunity Reconciliation Act of 1996. 
  3.31     Subd. 2.  [USE OF MONEY.] State money appropriated for 
  3.32  purposes of this section and TANF block grant money must be used 
  3.33  for: 
  3.34     (1) financial assistance to or on behalf of any minor child 
  3.35  who is a resident of this state under section 256J.12; 
  3.36     (2) employment and training programs under this chapter; 
  4.1      (3) emergency financial assistance and services under 
  4.2   section 256J.48; 
  4.3      (4) diversionary assistance under section 256J.47; and 
  4.4      (5) program administration under this chapter. 
  4.5      Subd. 3.  [CARRY FORWARD OF FEDERAL MONEY.] Temporary 
  4.6   assistance for needy families block grant money must be 
  4.7   appropriated for the purposes in this section and is available 
  4.8   until expended. 
  4.9      Subd. 4.  [AUTHORITY TO TRANSFER.] Subject to limitations 
  4.10  of title I of Public Law Number 104-193, the Personal 
  4.11  Responsibility and Work Opportunity Reconciliation Act of 1996, 
  4.12  the legislature may transfer money from the TANF block grant to 
  4.13  the child care fund under section 119B.01, or the Title XX block 
  4.14  grant under section 256E.07. 
  4.15     Subd. 5.  [INDIRECT COST LIABILITY.] Notwithstanding the 
  4.16  provisions of section 16A.127, the statewide and agency indirect 
  4.17  cost liability identified as part of the TANF grant for any 
  4.18  current fiscal year shall be limited to no more than the amount 
  4.19  received in fiscal year 1996. 
  4.20     Sec. 3.  [256J.06] [COMMUNITY INVOLVEMENT.] 
  4.21     The MFIP-S program must be administered in a way that, in 
  4.22  addition to the county agency, other sectors in the community 
  4.23  such as employers from the public and private sectors, 
  4.24  not-for-profit organizations, educational and social service 
  4.25  agencies, labor unions, and neighborhood associations are 
  4.26  involved. 
  4.27     Sec. 4.  [256J.08] [DEFINITIONS.] 
  4.28     Subdivision 1.  [SCOPE OF DEFINITIONS.] The terms used in 
  4.29  this chapter have the following meanings unless otherwise 
  4.30  provided for by text. 
  4.31     Subd. 2.  [ABSENT PARENT.] "Absent parent" means a minor 
  4.32  child's parent who does not live in the home. 
  4.33     Subd. 3.  [AGENCY ERROR.] "Agency error" means an error 
  4.34  that results in an overpayment or underpayment to an assistance 
  4.35  unit and is not caused by an applicant's or participant's 
  4.36  failure to provide adequate, correct, or timely information 
  5.1   about income, property, household composition, or other 
  5.2   circumstances. 
  5.3      Subd. 4.  [APPEAL.] "Appeal" means a written statement from 
  5.4   an applicant or participant who requests a hearing under section 
  5.5   256J.31.  
  5.6      Subd. 5.  [APPLICANT.] "Applicant" means a person who has 
  5.7   submitted to a county agency an application and whose 
  5.8   application has not been acted upon, denied, or voluntarily 
  5.9   withdrawn. 
  5.10     Subd. 6.  [APPLICATION.] "Application" means the submission 
  5.11  by or on behalf of a family to a county agency of a completed, 
  5.12  signed, and dated form, prescribed by the commissioner, that 
  5.13  indicates the desire to receive assistance. 
  5.14     Subd. 7.  [ASSISTANCE UNIT OR MFIP-S ASSISTANCE 
  5.15  UNIT.] "Assistance unit" or "MFIP-S assistance unit" means a 
  5.16  group of mandatory or optional people receiving or applying for 
  5.17  MFIP-S benefits together. 
  5.18     Subd. 8.  [AUTHORIZED REPRESENTATIVE.] "Authorized 
  5.19  representative" means a person who is authorized, in writing, by 
  5.20  an applicant or participant to act on the applicant's or 
  5.21  participant's behalf in matters involving the application for 
  5.22  assistance or participation in MFIP-S. 
  5.23     Subd. 9.  [BASIC NEEDS.] "Basic needs" means the minimum 
  5.24  personal requirements of subsistence and is restricted to food, 
  5.25  clothing, shelter, utilities, and other items for which the 
  5.26  loss, or lack of basic needs, is determined by the county agency 
  5.27  to pose a direct, immediate threat to the physical health or 
  5.28  safety of the applicant or participant. 
  5.29     Subd. 10.  [BUDGET MONTH.] "Budget month" means the 
  5.30  calendar month which the county agency uses to determine the 
  5.31  income or circumstances of an assistance unit to calculate the 
  5.32  amount of the assistance payment in the payment month. 
  5.33     Subd. 11.  [CAREGIVER.] "Caregiver" means a minor child's 
  5.34  natural or adoptive parent or parents who live in the home with 
  5.35  the minor child.  For purposes of determining eligibility for 
  5.36  this program, caregiver also means any of the following 
  6.1   individuals, if adults, who live with and provide care and 
  6.2   support to a minor child when the minor child's natural or 
  6.3   adoptive parent or parents do not reside in the same home:  
  6.4   grandfather, grandmother, brother, sister, stepfather, 
  6.5   stepmother, stepbrother, stepsister, uncle, aunt, first cousin, 
  6.6   nephew, niece, person of preceding generation as denoted by 
  6.7   prefixes of "great," "great-great," or "great-great-great," or a 
  6.8   spouse of any person named in the above groups even after the 
  6.9   marriage ends by death or divorce. 
  6.10     Subd. 12.  [CLIENT ERROR.] "Client error" means an error 
  6.11  that results in an overpayment or underpayment and is due to an 
  6.12  applicant's or participant's failure to provide adequate, 
  6.13  correct, or timely information concerning income, property, 
  6.14  household composition, or other circumstances. 
  6.15     Subd. 13.  [COMMISSIONER.] "Commissioner" means the 
  6.16  commissioner of the department of human services or the 
  6.17  commissioner's designated representative. 
  6.18     Subd. 14.  [CORRECTIVE PAYMENT.] "Corrective payment" means 
  6.19  an assistance payment that is made to correct an underpayment. 
  6.20     Subd. 15.  [COUNTABLE INCOME.] "Countable income" means 
  6.21  earned and unearned income that is not excluded under section 
  6.22  256J.21, subdivision 2, or disregarded under section 256J.21, 
  6.23  subdivision 3. 
  6.24     Subd. 16.  [COUNTED EARNINGS.] "Counted earnings" means the 
  6.25  earned income that remains after applicable disregards under 
  6.26  section 256J.21, subdivision 2, have been subtracted from gross 
  6.27  earned income. 
  6.28     Subd. 17.  [COUNTY AGENCY.] "County agency" means the 
  6.29  agency designated by the county board to implement financial 
  6.30  assistance for current programs and for MFIP-S and the agency 
  6.31  responsible for enforcement of child support collection, and a 
  6.32  county or multicounty agency that is authorized under sections 
  6.33  393.01, subdivision 7, and 393.07, subdivision 2, to administer 
  6.34  MFIP-S. 
  6.35     Subd. 18.  [COUNTY BOARD.] "County board" means a board of 
  6.36  commissioners, a local services agency as defined in chapter 
  7.1   393, a board established under the Joint Powers Act, section 
  7.2   471.59, or a human services board under chapter 402. 
  7.3      Subd. 19.  [COUNTY OF FINANCIAL RESPONSIBILITY.] "County of 
  7.4   financial responsibility" means the county that has financial 
  7.5   responsibility for providing public assistance as specified in 
  7.6   chapter 256G. 
  7.7      Subd. 20.  [COUNTY OF RESIDENCE.] "County of residence" 
  7.8   means the county where the caregiver has established a home. 
  7.9      Subd. 21.  [DATE OF APPLICATION.] "Date of application" 
  7.10  means the date on which the county agency receives an 
  7.11  applicant's signed application. 
  7.12     Subd. 22.  [DEEM.] "Deem" means to treat all or part of the 
  7.13  income of an individual who is not in the assistance unit, but 
  7.14  who is financially responsible for members of the assistance 
  7.15  unit, as if it were income available to the assistance unit. 
  7.16     Subd. 23.  [DEPARTMENT.] "Department" means the Minnesota 
  7.17  department of human services. 
  7.18     Subd. 24.  [DISREGARD.] "Disregard" means earned income 
  7.19  that is not counted when determining initial eligibility or 
  7.20  ongoing eligibility and calculating the amount of the assistance 
  7.21  payment for participants. 
  7.22     Subd. 25.  [DOCUMENTATION.] "Documentation" means a written 
  7.23  statement or record that substantiates or validates an assertion 
  7.24  made by a person or an action taken by a person, agency, or 
  7.25  entity. 
  7.26     Subd. 26.  [EARNED INCOME.] "Earned income" means cash or 
  7.27  in-kind income earned through the receipt of wages, salary, 
  7.28  commissions, profit from employment activities, net profit from 
  7.29  self-employment activities, payments made by an employer for 
  7.30  regularly accrued vacation or sick leave, and any other profit 
  7.31  from activity earned through effort or labor. 
  7.32     Subd. 27.  [EARNED INCOME TAX CREDIT.] "Earned income tax 
  7.33  credit" means the payment which can be obtained by a qualified 
  7.34  person from an employer or from the Internal Revenue Service as 
  7.35  provided by section 290.0671 and United States Code, title 26, 
  7.36  subtitle A, chapter 1, subchapter A, part 4, subpart C, section 
  8.1   32. 
  8.2      Subd. 28.  [EMERGENCY.] "Emergency" means a situation or a 
  8.3   set of circumstances that causes or threatens to cause 
  8.4   destitution to a minor child.  
  8.5      Subd. 29.  [EQUITY VALUE.] "Equity value" means the amount 
  8.6   of equity in real or personal property owned by a person and is 
  8.7   determined by subtracting any outstanding encumbrances from the 
  8.8   fair market value. 
  8.9      Subd. 30.  [EXCLUDED TIME.] "Excluded time" has the meaning 
  8.10  given in section 256G.02. 
  8.11     Subd. 31.  [EXPEDITED ISSUANCE OF THE FOOD STAMP 
  8.12  PORTION.] "Expedited issuance of the food stamp portion" means 
  8.13  the issuance of the food stamp portion to eligible assistance 
  8.14  units on the day of application as provided in section 393.07, 
  8.15  subdivision 10a. 
  8.16     Subd. 32.  [FAIR HEARING OR HEARING.] "Fair hearing" or 
  8.17  "hearing" means the evidentiary hearing conducted by the 
  8.18  department appeals referee to resolve disputes as specified in 
  8.19  section 256J.40, or if not applicable, section 256.045. 
  8.20     Subd. 33.  [FAIR MARKET VALUE.] "Fair market value" means 
  8.21  the price that an item of a particular make, model, size, 
  8.22  material, or condition would sell for on the open market in the 
  8.23  particular geographic area. 
  8.24     Subd. 34.  [FAMILY.] "Family" includes: 
  8.25     (1) the following individuals who live together:  a minor 
  8.26  child or a group of minor children related to each other as 
  8.27  siblings, half siblings, stepsiblings, or adoptive siblings, 
  8.28  together with their natural, adoptive parents, stepparents, or 
  8.29  caregiver as defined in subdivision 11; and 
  8.30     (2) a pregnant woman with no other children. 
  8.31     Subd. 35.  [FAMILY WAGE LEVEL.] "Family wage level" means 
  8.32  110 percent of the transitional standard. 
  8.33     Subd. 36.  [FEDERAL INSURANCE CONTRIBUTION ACT OR 
  8.34  FICA.] "Federal Insurance Contribution Act" or "FICA" means the 
  8.35  federal law under United States Code, title 26, subtitle C, 
  8.36  chapter 21, subchapter A, sections 3101 to 3126, that requires 
  9.1   withholding or direct payment from earned income. 
  9.2      Subd. 37.  [FINANCIAL CASE RECORD.] "Financial case record" 
  9.3   means an assistance unit's financial eligibility file. 
  9.4      Subd. 38.  [FULL-TIME STUDENT.] "Full-time student" means a 
  9.5   person who is enrolled in a graded or ungraded primary, 
  9.6   intermediate, secondary, GED preparatory, trade, technical, 
  9.7   vocational, or post-secondary school, and who meets the school's 
  9.8   standard for full-time attendance. 
  9.9      Subd. 39.  [GENERAL EDUCATIONAL DEVELOPMENT OR 
  9.10  GED.] "General educational development" or "GED" means the 
  9.11  general educational development certification issued by the 
  9.12  Minnesota board of education as an equivalent to a secondary 
  9.13  school diploma under Minnesota Rules, part 3500.3100, subpart 4. 
  9.14     Subd. 40.  [GROSS EARNED INCOME.] "Gross earned income" 
  9.15  means earned income from employment before mandatory and 
  9.16  voluntary payroll deductions.  Gross earned income includes 
  9.17  salaries, wages, tips, gratuities, commissions, incentive 
  9.18  payments from work or training programs, payments made by an 
  9.19  employer for regularly accrued vacation or sick leave, and 
  9.20  profits from other activity earned by an individual's effort or 
  9.21  labor.  Gross earned income includes uniform and meal allowances 
  9.22  if federal income tax is deducted from the allowance.  Gross 
  9.23  earned income includes flexible work benefits received from an 
  9.24  employer if the employee has the option of receiving the benefit 
  9.25  or benefits in cash. 
  9.26     Subd. 41.  [GROSS INCOME.] "Gross income" is the sum of 
  9.27  gross earned income and unearned income. 
  9.28     Subd. 42.  [GROSS RECEIPTS.] "Gross receipts" means the 
  9.29  money received by a business before the expenses of the business 
  9.30  are deducted. 
  9.31     Subd. 43.  [HALF-TIME STUDENT.] "Half-time student" means a 
  9.32  person who is enrolled in a graded or ungraded primary, 
  9.33  intermediate, secondary, GED preparatory, trade, technical, 
  9.34  vocational, or post-secondary school, and who meets the school's 
  9.35  standard of half-time attendance. 
  9.36     Subd. 44.  [HOME.] "Home" means the primary place of 
 10.1   residence used by a person as the base for day-to-day living and 
 10.2   does not include locations used as mail drops. 
 10.3      Subd. 45.  [HOMESTEAD.] "Homestead" means the home that is 
 10.4   owned by, and is the usual residence of, the assistance unit 
 10.5   together with the surrounding property which is not separated 
 10.6   from the home by intervening property owned by others.  Public 
 10.7   rights-of-way, such as roads which run through the surrounding 
 10.8   property and separate it from the home, do not affect the 
 10.9   exemption of the property.  Homestead includes an asset that is 
 10.10  not real property that the assistance unit uses as a home, such 
 10.11  as a vehicle. 
 10.12     Subd. 46.  [HOUSEHOLD.] "Household" means a group of 
 10.13  persons who live together. 
 10.14     Subd. 47.  [INCOME.] "Income" means cash or in-kind 
 10.15  benefit, whether earned or unearned, received by or available to 
 10.16  an applicant or participant that is not an asset under section 
 10.17  256J.20. 
 10.18     Subd. 48.  [INITIAL ELIGIBILITY.] "Initial eligibility" 
 10.19  means the determination of eligibility for an MFIP-S applicant. 
 10.20     Subd. 49.  [IN-KIND INCOME.] "In-kind income" means income, 
 10.21  benefits, or payments which are provided in a form other than 
 10.22  money or liquid assets, including the forms of goods, produce, 
 10.23  services, privileges, or payments made on behalf of an applicant 
 10.24  or participant by a third party. 
 10.25     Subd. 50.  [INQUIRY.] "Inquiry" means a communication to a 
 10.26  county agency through mail, telephone, or in person, by which a 
 10.27  person or authorized representative requests information about 
 10.28  public assistance.  The county agency shall also treat as an 
 10.29  inquiry any communication in which a person requesting 
 10.30  assistance offers information about the person's family 
 10.31  circumstances that indicates that eligibility for public 
 10.32  assistance may exist. 
 10.33     Subd. 51.  [LEGALLY AVAILABLE.] "Legally available" means a 
 10.34  person's right under the law to secure, possess, dispose of, or 
 10.35  control income or property. 
 10.36     Subd. 52.  [LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM OR 
 11.1   LIHEAP.] "Low-income home energy assistance program" or "LIHEAP" 
 11.2   means the program authorized under United States Code, title 42, 
 11.3   chapter 94, subchapter II, sections 8621 to 8629, and 
 11.4   administered by the Minnesota department of economic security. 
 11.5      Subd. 53.  [LUMP SUM.] "Lump sum" means nonrecurring income 
 11.6   that is not excluded in section 256J.21. 
 11.7      Subd. 54.  [MEDICAL ASSISTANCE.] "Medical assistance" means 
 11.8   the program established under chapter 256B and Title XIX of the 
 11.9   Social Security Act. 
 11.10     Subd. 55.  [MFIP-S HOUSEHOLD REPORT FORM.] "MFIP-S 
 11.11  household report form" means a form prescribed by the 
 11.12  commissioner that a participant uses to report information to a 
 11.13  county agency about changes in income and other circumstances. 
 11.14     Subd. 56.  [MIGRANT WORKER.] "Migrant worker" means a 
 11.15  person who travels away from home on a regular basis, usually 
 11.16  with a group of other laborers, to seek employment in an 
 11.17  agriculturally related activity. 
 11.18     Subd. 57.  [MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 
 11.19  OR MFIP-S.] "Minnesota family investment program-statewide" or 
 11.20  "MFIP-S" means the assistance program authorized in this chapter 
 11.21  and chapter 256K. 
 11.22     Subd. 58.  [MINNESOTA SUPPLEMENTAL AID OR MSA.] "Minnesota 
 11.23  supplemental aid" or "MSA" means the program established under 
 11.24  sections 256D.33 to 256D.54. 
 11.25     Subd. 59.  [MINOR CAREGIVER.] "Minor caregiver" means a 
 11.26  person who: 
 11.27     (1) is under the age of 18; 
 11.28     (2) has never been married or otherwise legally 
 11.29  emancipated; and 
 11.30     (3) is either the natural parent of a minor child living in 
 11.31  the same household or is eligible for assistance paid to a 
 11.32  pregnant woman. 
 11.33     Subd. 60.  [MINOR CHILD.] "Minor child" means a child who 
 11.34  is living in the same home of a parent or other caregiver, is 
 11.35  either less than 18 years of age or is under the age of 19 years 
 11.36  and is regularly attending as a full-time student and is 
 12.1   expected to complete a high school or a secondary level course 
 12.2   of vocational or technical training designed to fit students for 
 12.3   gainful employment before reaching age 19. 
 12.4      Subd. 61.  [MONTHLY INCOME TEST.] "Monthly income test" 
 12.5   means the test used to determine ongoing eligibility and the 
 12.6   assistance payment amount according to section 256J.21. 
 12.7      Subd. 62.  [NONRECURRING INCOME.] "Nonrecurring income" 
 12.8   means a form of income which is received: 
 12.9      (1) only one time or is not of a continuous nature; or 
 12.10     (2) in a prospective payment month but is no longer 
 12.11  received in the corresponding retrospective payment month. 
 12.12     Subd. 63.  [OVERPAYMENT.] "Overpayment" means the portion 
 12.13  of an assistance payment issued by the county agency that is 
 12.14  greater than the amount for which the assistance unit is 
 12.15  eligible. 
 12.16     Subd. 64.  [PARENT.] "Parent" means a child's biological or 
 12.17  adoptive parent who is legally obligated to support that child. 
 12.18     Subd. 65.  [PARTICIPANT.] "Participant" means a person who 
 12.19  is currently receiving cash assistance and the food portion 
 12.20  available through MFIP-S as funded by TANF and the food stamp 
 12.21  program.  A person who fails to withdraw or access 
 12.22  electronically any portion of his or her cash assistance payment 
 12.23  by the end of the payment month or who returns any uncashed 
 12.24  assistance check and withdraws from the program is not a 
 12.25  participant.  A person who withdraws a cash assistance payment 
 12.26  by electronic transfer or receives and cashes a cash assistance 
 12.27  check and is subsequently determined to be ineligible for 
 12.28  assistance for that period of time is a participant, regardless 
 12.29  whether that assistance is repaid.  The term "participant" 
 12.30  includes the caregiver relative and the minor child whose needs 
 12.31  are included in the assistance payment.  A person in an 
 12.32  assistance unit who does not receive a cash assistance payment 
 12.33  because he or she has been suspended from MFIP-S or because his 
 12.34  or her need falls below the $10 minimum payment level is a 
 12.35  participant. 
 12.36     Subd. 66.  [PAYEE.] "Payee" means a person to whom an 
 13.1   assistance payment is made payable. 
 13.2      Subd. 67.  [PAYMENT MONTH.] "Payment month" means the 
 13.3   calendar month for which the assistance payment is paid. 
 13.4      Subd. 68.  [PERSONAL PROPERTY.] "Personal property" means 
 13.5   an item of value that is not real property, including the value 
 13.6   of a contract for deed held by a seller, assets held in trust on 
 13.7   behalf of members of an assistance unit, cash surrender value of 
 13.8   life insurance, value of a prepaid burial, savings account, 
 13.9   value of stocks and bonds, and value of retirement accounts. 
 13.10     Subd. 69.  [PROBABLE FRAUD.] "Probable fraud" means the 
 13.11  level of evidence that, if proven as fact, would establish that 
 13.12  assistance has been wrongfully obtained. 
 13.13     Subd. 70.  [PROFESSIONAL CERTIFICATION.] "Professional 
 13.14  certification" means: 
 13.15     (1) a statement about a person's illness, injury, or 
 13.16  incapacity that is signed by a licensed physician, psychological 
 13.17  practitioner, or licensed psychologist, qualified by 
 13.18  professional training and experience to diagnose and certify the 
 13.19  person's condition; or 
 13.20     (2) a statement about an incapacity involving a spinal 
 13.21  subluxation condition that is signed by a licensed chiropractor 
 13.22  qualified by professional training and experience to diagnose 
 13.23  and certify the condition. 
 13.24     Subd. 71.  [PROSPECTIVE BUDGETING.] "Prospective budgeting" 
 13.25  means a method of determining the amount of the assistance 
 13.26  payment in which the budget month and payment month are the same.
 13.27     Subd. 72.  [PROTECTIVE PAYEE.] "Protective payee" means a 
 13.28  person other than the caregiver of an assistance unit who 
 13.29  receives the monthly assistance payment on behalf of an 
 13.30  assistance unit and is responsible to provide for the basic 
 13.31  needs of the assistance unit to the extent of that payment. 
 13.32     Subd. 73.  [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 
 13.33  means a person: 
 13.34     (1) who was lawfully admitted for permanent residence 
 13.35  pursuant to United States Code, title 8; 
 13.36     (2) who was admitted to the United States as a refugee 
 14.1   pursuant to United States Code, title 8; section 1157; 
 14.2      (3) whose deportation is being withheld pursuant to United 
 14.3   States Code, title 8, section 1253(h); 
 14.4      (4) who was paroled for a period of at least one year 
 14.5   pursuant to United States Code, title 8, section 1182(d)(5); 
 14.6      (5) who was granted conditional entry pursuant to United 
 14.7   State Code, title 8, section 1153(a)(7); 
 14.8      (6) who was granted asylum pursuant to United States Code, 
 14.9   title 8, section 1158; or 
 14.10     (7) determined to be a battered noncitizen by the United 
 14.11  States Attorney General according to the Illegal Immigration 
 14.12  Reform and Immigrant Responsibility Act of 1996, Title V of the 
 14.13  Omnibus Consolidated Appropriations Bill, Public Law Number 
 14.14  104-200. 
 14.15     Subd. 74.  [REAL PROPERTY.] "Real property" means land and 
 14.16  all buildings, structures, and improvements, or other fixtures 
 14.17  on the land, belonging or appertaining to the land, and all 
 14.18  mines, minerals, fossils, and trees on or under the land. 
 14.19     Subd. 75.  [REASONABLE COMPENSATION.] "Reasonable 
 14.20  compensation" means the value received in exchange for property 
 14.21  transferred to another owner that is consistent with fair market 
 14.22  value and equals or exceeds the seller's equity in the property, 
 14.23  reduced by costs incurred in the sale. 
 14.24     Subd. 76.  [RECERTIFICATION.] "Recertification" means the 
 14.25  periodic review of eligibility factors to determine an 
 14.26  assistance unit's continued eligibility. 
 14.27     Subd. 77.  [RECOUPMENT.] "Recoupment" means the action of 
 14.28  the county agency to reduce a family's monthly assistance 
 14.29  payment to recover overpayments caused by client or agency error 
 14.30  and overpayments received while an appeal is pending. 
 14.31     Subd. 78.  [RECOVERY.] "Recovery" means actions taken by a 
 14.32  county agency to reclaim the value of overpayments through 
 14.33  voluntary repayment, recoupment from the assistance payment, 
 14.34  court action, revenue recapture, or federal tax refund offset 
 14.35  program. 
 14.36     Subd. 79.  [RECURRING INCOME.] "Recurring income" means a 
 15.1   form of income which is: 
 15.2      (1) received periodically, and may be received irregularly 
 15.3   when receipt can be anticipated even though the date of receipt 
 15.4   cannot be predicted; and 
 15.5      (2) from the same source or of the same type that is 
 15.6   received and budgeted in a prospective month and is received in 
 15.7   one or both of the first two retrospective months. 
 15.8      Subd. 80.  [REEMPLOYMENT INSURANCE.] "Reemployment 
 15.9   insurance" means the insurance benefit paid to an unemployed 
 15.10  worker under sections 268.03 to 268.23. 
 15.11     Subd. 81.  [RETROSPECTIVE BUDGETING.] "Retrospective 
 15.12  budgeting" means a method of determining the amount of the 
 15.13  assistance payment in which the payment month is the second 
 15.14  month after the budget month. 
 15.15     Subd. 82.  [SANCTION.] "Sanction" means the reduction of a 
 15.16  family's assistance payment by a specified percentage of the 
 15.17  applicable transitional standard because:  the nonexempt 
 15.18  participant fails to comply with the requirements of sections 
 15.19  256J.51 to 256J.55; the parental caregiver fails without good 
 15.20  cause to cooperate with the child support enforcement 
 15.21  requirements; or a recipient fails to comply with the insurance, 
 15.22  tort liability, or other requirements of this chapter. 
 15.23     Subd. 83.  [SIGNIFICANT CHANGE.] "Significant change" means 
 15.24  a decline in gross income of 35 percent or more from the income 
 15.25  used to determine the grant for the current month. 
 15.26     Subd. 84.  [SUPPLEMENTAL SECURITY INCOME OR 
 15.27  SSI.] "Supplemental Security Income" or "SSI" means the program 
 15.28  authorized under title XVI of the Social Security Act. 
 15.29     Subd. 85.  [TRANSITIONAL STANDARD.] "Transitional standard" 
 15.30  means the basic standard for a family with no other income or a 
 15.31  nonworking family and is a combination of the cash assistance 
 15.32  needs and food assistance needs for a family of that size. 
 15.33     Subd. 86.  [UNEARNED INCOME.] "Unearned income" means 
 15.34  income received by a person that does not meet the definition of 
 15.35  earned income.  Unearned income includes income from a contract 
 15.36  for deed, interest, dividends, reemployment insurance, 
 16.1   disability insurance payments, veterans benefits, pension 
 16.2   payments, return on capital investment, insurance payments or 
 16.3   settlements, severance payments, and payments for illness or 
 16.4   disability whether the premium payments are made in whole or in 
 16.5   part by an employer or participant. 
 16.6      Subd. 87.  [VENDOR.] "Vendor" means a provider of goods or 
 16.7   services. 
 16.8      Subd. 88.  [VENDOR PAYMENT.] "Vendor payment" means a 
 16.9   payment authorized by a county agency to a vendor. 
 16.10     Subd. 89.  [VERIFICATION.] "Verification" means the process 
 16.11  a county agency uses to establish the accuracy or completeness 
 16.12  of information from an applicant, participant, third party, or 
 16.13  other source as that information relates to program eligibility 
 16.14  or an assistance payment. 
 16.15     Sec. 5.  [256J.09] [APPLYING FOR ASSISTANCE.] 
 16.16     Subdivision 1.  [WHERE TO APPLY.] A person must apply for 
 16.17  assistance at the county agency in the county where that person 
 16.18  lives. 
 16.19     Subd. 2.  [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 
 16.20  INFORMATION.] A county agency must inform a person who inquires 
 16.21  about assistance about eligibility requirements for assistance 
 16.22  and how to apply for assistance, including diversionary 
 16.23  assistance and emergency assistance.  A county agency must offer 
 16.24  the person brochures developed or approved by the commissioner 
 16.25  that describe how to apply for assistance. 
 16.26     Subd. 3.  [SUBMITTING THE APPLICATION FORM.] A county 
 16.27  agency must offer, in person or by mail, the application forms 
 16.28  prescribed by the commissioner as soon as a person makes a 
 16.29  written or oral inquiry.  At that time, the county agency must 
 16.30  inform the person that assistance begins with the date the 
 16.31  signed application is received by the county agency or the date 
 16.32  all eligibility criteria are met, whichever is later.  The 
 16.33  county agency must inform the applicant that any delay in 
 16.34  submitting the application will reduce the amount of assistance 
 16.35  paid for the month of application.  A county agency must inform 
 16.36  a person that the person may submit the application before an 
 17.1   interview appointment.  To apply for assistance, a person must 
 17.2   submit a signed application to the county agency.  Upon receipt 
 17.3   of a signed application, the county agency must stamp the date 
 17.4   of receipt on the face of the application.  The county agency 
 17.5   must process the application within the time period required 
 17.6   under subdivision 5.  An applicant may withdraw the application 
 17.7   at any time by giving written or oral notice to the county 
 17.8   agency.  The county agency must issue a written notice 
 17.9   confirming the withdrawal.  The notice must inform the applicant 
 17.10  of the county agency's understanding that the applicant has 
 17.11  withdrawn the application and no longer wants to pursue it.  
 17.12  When, within ten days of the date of the agency's notice, an 
 17.13  applicant informs a county agency, in writing, that the 
 17.14  applicant does not wish to withdraw the application, the county 
 17.15  agency must reinstate the application and finish processing the 
 17.16  application. 
 17.17     Subd. 4.  [VERIFICATION OF INFORMATION ON APPLICATION.] A 
 17.18  county agency must verify information provided by an applicant 
 17.19  as required in section 256J.32. 
 17.20     Subd. 5.  [PROCESSING APPLICATIONS.] Upon receiving an 
 17.21  application, a county agency must determine the applicant's 
 17.22  eligibility, approve or deny the application, inform the 
 17.23  applicant of its decision according to the notice provisions in 
 17.24  section 256J.31, and, if eligible, issue the assistance payment 
 17.25  to the applicant.  When a county agency is unable to process an 
 17.26  application within 30 days, the county agency must inform the 
 17.27  applicant of the reason for the delay in writing.  When an 
 17.28  applicant establishes the inability to provide required 
 17.29  verification within the 30-day processing period, the county 
 17.30  agency may not use the expiration of that period as the basis 
 17.31  for denial. 
 17.32     Subd. 6.  [INVALID REASON FOR DELAY.] A county agency must 
 17.33  not delay a decision on eligibility or delay issuing the 
 17.34  assistance payment except to establish state residence by: 
 17.35     (1) treating the 30-day processing period as a waiting 
 17.36  period; 
 18.1      (2) delaying approval or issuance of the assistance payment 
 18.2   pending the decision of the county board; or 
 18.3      (3) awaiting the result of a referral to a county agency in 
 18.4   another county when the county receiving the application does 
 18.5   not believe it is the county of financial responsibility. 
 18.6      Subd. 7.  [CHANGES IN RESIDENCE DURING APPLICATION.] The 
 18.7   requirements in subdivisions 5 and 6 apply without regard to the 
 18.8   length of time that an applicant remains, or intends to remain, 
 18.9   a resident of the county in which the application is made.  When 
 18.10  an applicant leaves the county where application was made but 
 18.11  remains in the state, section 256J.75 applies and the county 
 18.12  agency may request additional information from the applicant 
 18.13  about changes in circumstances related to the move. 
 18.14     Subd. 8.  [ADDITIONAL APPLICATIONS.] Until a county agency 
 18.15  issues notice of approval or denial, additional applications 
 18.16  submitted by an applicant are void.  However, an application for 
 18.17  monthly assistance and an application for emergency assistance 
 18.18  or emergency general assistance may exist concurrently.  More 
 18.19  than one application for monthly assistance, emergency 
 18.20  assistance, or emergency general assistance may exist 
 18.21  concurrently when the county agency decisions on one or more 
 18.22  earlier applications have been appealed to the commissioner, and 
 18.23  the applicant asserts that a change in circumstances has 
 18.24  occurred that would allow eligibility.  A county agency must 
 18.25  require additional application forms or supplemental forms as 
 18.26  prescribed by the commissioner when a payee's name changes, or 
 18.27  when a caregiver requests the addition of another person to the 
 18.28  assistance unit.  
 18.29     Subd. 9.  [ADDENDUM TO AN EXISTING APPLICATION.] An 
 18.30  addendum to an existing application must be used to add persons 
 18.31  to an assistance unit regardless of whether the persons being 
 18.32  added are required to be in the assistance unit.  When a person 
 18.33  is added by addendum to an assistance unit, eligibility for that 
 18.34  person begins on the first of the month the addendum was filed, 
 18.35  under section 256J.74, subdivision 2, paragraph (a). 
 18.36     Subd. 10.  [APPLICANTS WHO DO NOT MEET ELIGIBILITY 
 19.1   REQUIREMENTS FOR MFIP-S.] When an applicant is not eligible for 
 19.2   MFIP-S because the applicant does not meet eligibility 
 19.3   requirements, the county agency must determine whether the 
 19.4   applicant is eligible for food stamps, medical assistance, 
 19.5   diversionary assistance, or has a need for emergency assistance 
 19.6   when the applicant meets the eligibility requirements for those 
 19.7   programs. 
 19.8                        ELIGIBILITY FOR MFIP-S
 19.9      Sec. 6.  [256J.10] [MFIP-S ELIGIBILITY REQUIREMENTS.] 
 19.10     To be eligible for MFIP-S, applicants must meet the general 
 19.11  eligibility requirements in sections 256J.11 to 256J.15, the 
 19.12  property limitations in section 256J.20, and the income 
 19.13  limitations in section 256J.21. 
 19.14     Sec. 7.  [256J.11] [CITIZENSHIP.] 
 19.15     Subdivision 1.  [GENERAL CITIZENSHIP REQUIREMENTS.] (a) A 
 19.16  member of the assistance unit must be a citizen of the United 
 19.17  States, a qualified noncitizen as defined in section 256J.08, or 
 19.18  a noncitizen who is otherwise residing lawfully in the United 
 19.19  States to be eligible for MFIP-S. 
 19.20     (b) A qualified noncitizen who entered the United States on 
 19.21  or after August 22, 1996, is eligible for MFIP-S.  However, TANF 
 19.22  dollars cannot be used to fund the MFIP-S benefits for an 
 19.23  individual under this paragraph for a period of five years after 
 19.24  the date of entry unless the qualified noncitizen meets one of 
 19.25  the following criteria: 
 19.26     (1) was admitted to the United States as a refugee under 
 19.27  United States Code, title 8, section 1157; 
 19.28     (2) was granted asylum under United States Code, title 8, 
 19.29  section 1158; 
 19.30     (3) was granted withholding of deportation under the United 
 19.31  States Code, title 8, section 1253(h); 
 19.32     (4) is a veteran of the United States Armed Forces with an 
 19.33  honorable discharge for a reason other than noncitizen status, 
 19.34  their spouses and minor children; or 
 19.35     (5) is an individual on active duty in the United States 
 19.36  Armed Forces, other than for training, or is a spouse or minor 
 20.1   child of the same. 
 20.2      (c) A person who is not a qualified noncitizen who is 
 20.3   otherwise residing lawfully in the United States is eligible for 
 20.4   MFIP-S.  However, TANF dollars cannot be used to fund the MFIP-S 
 20.5   benefits for an individual under this paragraph. 
 20.6      (d) For purposes of this subdivision, a nonimmigrant in one 
 20.7   or more of the classes listed in United States Code, title 8, 
 20.8   section 1101(a)(15), or an undocumented immigrant who resides in 
 20.9   the United States without the approval or acquiescence of the 
 20.10  Immigration and Naturalization Service, must not be considered 
 20.11  to be residing in the United States. 
 20.12     Subd. 2.  [NONCITIZENS INELIGIBLE FOR MFIP-S FOOD PORTION.] 
 20.13  Noncitizens who do not meet one of the exemptions in section 412 
 20.14  of the Personal Responsibility and Work Opportunity 
 20.15  Reconciliation Act of 1996 are not eligible for the food portion 
 20.16  of MFIP-S. 
 20.17     Sec. 8.  [256J.12] [MINNESOTA RESIDENCE.] 
 20.18     Subdivision 1.  [RESIDENCY.] A family is considered to have 
 20.19  established residency in this state when a child or caregiver 
 20.20  has resided in this state for at least 30 days.  After 
 20.21  satisfying the residency requirement, the family must be paid in 
 20.22  accordance with section 256J.43. 
 20.23     Subd. 2.  [EXCEPTIONS.] (a) A county shall waive the 30-day 
 20.24  residency requirement where unusual hardship would result from 
 20.25  denial of assistance.  For purposes of this section, unusual 
 20.26  hardship means a family: 
 20.27     (1) is without alternative shelter or at risk of losing 
 20.28  shelter; or 
 20.29     (2) is without available resources for food. 
 20.30     (b) Migrant workers as defined in section 256J.08 are 
 20.31  exempt from the 30-day residency requirement, provided the 
 20.32  migrant worker worked in this state within the last 24 months. 
 20.33     Sec. 9.  [256J.13] [MINOR CHILD IN ASSISTANCE UNIT; 
 20.34  PHYSICAL PRESENCE.] 
 20.35     Subdivision 1.  [MINOR CHILD OR PREGNANT WOMAN.] The 
 20.36  assistance unit must include at least one minor child or a 
 21.1   pregnant woman.  If a minor child is a recipient of Supplemental 
 21.2   Security Income or Minnesota supplemental aid, the assistance 
 21.3   unit is eligible for MFIP-S, but the needs of the minor child 
 21.4   receiving Supplemental Security Income or Minnesota supplemental 
 21.5   aid must not be taken into account when the county agency 
 21.6   determines the amount of the assistance payment to be paid to 
 21.7   the assistance unit. 
 21.8      Subd. 2.  [PHYSICAL PRESENCE.] A minor child and a 
 21.9   caregiver must live together except as provided in the following 
 21.10  paragraphs. 
 21.11     (a) The physical presence requirement is met when a minor 
 21.12  child is required to live away from the caregiver's home to meet 
 21.13  the need for educational curricula that cannot be met by, but is 
 21.14  approved by, the local public school district, the home is 
 21.15  maintained for the minor child's return during periodic school 
 21.16  vacations, and the caregiver continues to maintain 
 21.17  responsibility for the support and care of the minor child. 
 21.18     (b) The physical presence requirement is met when an 
 21.19  applicant caregiver or applicant minor child is away from the 
 21.20  home due to illness or hospitalization, when the home is 
 21.21  maintained for the return of the absent family member, the 
 21.22  absence is not expected to last more than six months beyond the 
 21.23  month of departure, and the conditions of clause (1), (2), or 
 21.24  (3) apply: 
 21.25     (1) when the minor child and caregiver lived together 
 21.26  immediately prior to the absence, the caregiver continues to 
 21.27  maintain responsibility for the support and care of the minor 
 21.28  child, and the absence is reported at the time of application; 
 21.29     (2) when the pregnant mother is hospitalized or out of the 
 21.30  home due to the pregnancy; or 
 21.31     (3) when the newborn child and mother are hospitalized at 
 21.32  the time of birth. 
 21.33     (c) The absence of a caregiver or minor child does not 
 21.34  affect eligibility for the month of departure when the caregiver 
 21.35  or minor child received assistance for that month and lived 
 21.36  together immediately prior to the absence.  Eligibility also 
 22.1   exists in the following month when the absence ends on or before 
 22.2   the tenth day of that month.  A temporary absence of a caregiver 
 22.3   or a minor child which continues beyond the month of departure 
 22.4   must not affect eligibility when the home is maintained for the 
 22.5   return of the absent family member, the caregiver continues to 
 22.6   maintain responsibility for the support and care of the minor 
 22.7   child, and one of clauses (1) to (7) applies: 
 22.8      (1) a participant caregiver or participant child is absent 
 22.9   due to illness or hospitalization, and the absence is expected 
 22.10  to last no more than six months beyond the month of departure; 
 22.11     (2) a participant child is out of the home due to placement 
 22.12  in foster care as defined in section 260.015, subdivision 7, 
 22.13  when the placement will not be paid under title IV-E of the 
 22.14  Social Security Act, and when the absence is expected to last no 
 22.15  more than six months beyond the month of departure; 
 22.16     (3) a participant minor child is out of the home for a 
 22.17  vacation, the vacation is not with an absent parent, and the 
 22.18  absence is expected to last no more than two months beyond the 
 22.19  month of departure; 
 22.20     (4) a participant minor child is out of the home due to a 
 22.21  visit or vacation with an absent parent, the home of the minor 
 22.22  child remains with the caregiver, the absence meets the 
 22.23  conditions of this paragraph and the absence is expected to last 
 22.24  no more than two months beyond the month of departure; 
 22.25     (5) a participant caregiver is out of the home due to a 
 22.26  death or illness of a relative, incarceration, training, or 
 22.27  employment search and suitable arrangements have been made for 
 22.28  the care of the minor child, or a participant minor child is out 
 22.29  of the home due to incarceration, and the absence is expected to 
 22.30  last no more than two months beyond the month of departure; 
 22.31     (6) a participant caregiver and a participant minor child 
 22.32  are both absent from Minnesota due to a situation described in 
 22.33  clause (5), or vacation, and the absence is expected to last no 
 22.34  more than one month beyond the month of the departure; or 
 22.35     (7) a participant minor child has run away from home, and 
 22.36  another person has not made application for that minor child, 
 23.1   assistance must continue for no more than two months following 
 23.2   the month of departure. 
 23.3      Sec. 10.  [256J.14] [ELIGIBILITY FOR PARENTING OR PREGNANT 
 23.4   MINORS.] 
 23.5      (a) The definitions in this paragraph only apply to this 
 23.6   subdivision. 
 23.7      (1) "Household of a parent, legal guardian, or other adult 
 23.8   relative" means the place of residence of: 
 23.9      (i) a natural or adoptive parent; 
 23.10     (ii) a legal guardian according to appointment or 
 23.11  acceptance under section 260.242, 525.615, or 525.6165, and 
 23.12  related laws; or 
 23.13     (iii) a caregiver. 
 23.14     (2) "Adult-supervised supportive living arrangement" means 
 23.15  a private family setting which assumes responsibility for the 
 23.16  care and control of the minor parent and minor child, or other 
 23.17  living arrangement, not including a public institution, licensed 
 23.18  by the commissioner of human services which ensures that the 
 23.19  minor parent receives adult supervision and supportive services, 
 23.20  such as counseling, guidance, independent living skills 
 23.21  training, or supervision. 
 23.22     (b) A minor parent and the minor child who is in the care 
 23.23  of the minor parent must reside in the household of a parent, 
 23.24  legal guardian, other appropriate adult relative, or other 
 23.25  caregiver, or in an adult-supervised supportive living 
 23.26  arrangement in order to receive MFIP-S unless: 
 23.27     (1) the minor parent has no living parent, other 
 23.28  appropriate adult relative, or legal guardian whose whereabouts 
 23.29  is known; 
 23.30     (2) no living parent, other appropriate adult relative, or 
 23.31  legal guardian of the minor parent allows the minor parent to 
 23.32  live in the parent's, appropriate adult relative's, or legal 
 23.33  guardian's home; 
 23.34     (3) the minor parent lived apart from the minor parent's 
 23.35  own parent or legal guardian for a period of at least one year 
 23.36  before either the birth of the minor child or the minor parent's 
 24.1   application for MFIP-S; 
 24.2      (4) the physical or emotional health or safety of the minor 
 24.3   parent or minor child would be jeopardized if the minor parent 
 24.4   and the minor child resided in the same residence with the minor 
 24.5   parent's parent, other appropriate adult relative, or legal 
 24.6   guardian; or 
 24.7      (5) an adult supervised supportive living arrangement is 
 24.8   not available for the minor parent and the dependent child in 
 24.9   the county in which the minor currently resides.  If an adult 
 24.10  supervised supportive living arrangement becomes available 
 24.11  within the county, the minor parent and child must reside in 
 24.12  that arrangement. 
 24.13     (c) Minor applicants must be informed orally and in writing 
 24.14  about the eligibility requirements and their rights and 
 24.15  obligations under the MFIP-S program.  The county must advise 
 24.16  the minor of the possible exemptions and specifically ask 
 24.17  whether one or more of these exemptions is applicable.  If the 
 24.18  minor alleges one or more of these exemptions, then the county 
 24.19  must assist the minor in obtaining the necessary verifications 
 24.20  to determine whether or not these exemptions apply. 
 24.21     (d) If the county worker has reason to suspect that the 
 24.22  physical or emotional health or safety of the minor parent or 
 24.23  minor child would be jeopardized if they resided with the minor 
 24.24  parent's parent or legal guardian, then the county worker must 
 24.25  make a referral to child protective services to determine if 
 24.26  paragraph (b), clause (4), applies.  A new determination by the 
 24.27  county worker is not necessary if one has been made within the 
 24.28  last six months, unless there has been a significant change in 
 24.29  circumstances which justifies a new referral and determination. 
 24.30     (e) If a minor parent is not living with a parent or legal 
 24.31  guardian due to paragraph (b), clause (1), (2), or (4), the 
 24.32  minor parent must reside, when possible, in a living arrangement 
 24.33  that meets the standards of paragraph (a), clause (2). 
 24.34     (f) When a minor parent and minor child live with another 
 24.35  adult relative, or in an adult-supervised supportive living 
 24.36  arrangement, MFIP-S must be paid, when possible, in the form of 
 25.1   a protective payment on behalf of the minor parent and minor 
 25.2   child in accordance with section 256J.39, subdivisions 2 to 4. 
 25.3      Sec. 11.  [256J.15] [OTHER ELIGIBILITY CONDITIONS.] 
 25.4      Subdivision 1.  [ELIGIBILITY WHEN THERE IS SHARED, COURT 
 25.5   ORDERED, AND OTHER CUSTODY ARRANGEMENTS.] The language of a 
 25.6   court order that specifies joint legal or physical custody does 
 25.7   not preclude a determination that a parent is absent.  Absence 
 25.8   must be determined based on the actual facts of the absence 
 25.9   according to paragraphs (a) to (c).  
 25.10     (a) When a minor child spends time in each of the parents' 
 25.11  homes within a payment month, the minor child's home shall be 
 25.12  considered the home in which the majority of the minor child's 
 25.13  time is spent.  When this time is exactly equal within a payment 
 25.14  month, or when the parents alternately live in the minor child's 
 25.15  home within a payment month, the minor child's home shall be 
 25.16  with that parent who is applying for MFIP, unless the minor 
 25.17  child's needs for the full payment month have already been met 
 25.18  through the provision of assistance to the other parent for that 
 25.19  month.  
 25.20     (b) When the physical custody of a minor child alternates 
 25.21  between parents for periods of at least one payment month, each 
 25.22  parent shall be eligible for assistance for any full payment 
 25.23  months the minor child's home is with that parent, except under 
 25.24  the conditions in paragraph (c).  
 25.25     (c) When a minor child's home is with one parent for the 
 25.26  majority of time in each month for at least nine consecutive 
 25.27  calendar months, and that minor child visits or vacations with 
 25.28  the other parent under section 256J.13, the minor child's home 
 25.29  remains with the first parent even when the stay with the second 
 25.30  parent is for all or the majority of the months in the period of 
 25.31  the temporary absence. 
 25.32     Subd. 2.  [ELIGIBILITY DURING LABOR DISPUTES.] An 
 25.33  assistance unit with a member on strike must be a participant on 
 25.34  the day before the strike, or have been eligible for MFIP-S on 
 25.35  the day before the strike. 
 25.36     The county agency must count the striker's prestrike 
 26.1   earnings as current earnings.  When a member of an assistance 
 26.2   unit who is not in the bargaining unit that voted for the strike 
 26.3   does not cross the picket line for fear of personal injury, the 
 26.4   assistance unit member is not a striker.  Except for a member of 
 26.5   an assistance unit who is not in the bargaining unit that voted 
 26.6   for the strike and who does not cross the picket line for fear 
 26.7   of personal injury, a significant change cannot be invoked as a 
 26.8   result of a labor dispute. 
 26.9      Sec. 12.  [256J.20] [PROPERTY LIMITATIONS.] 
 26.10     Subdivision 1.  [PROPERTY OWNERSHIP PROVISIONS.] The county 
 26.11  agency must apply paragraphs (a) to (d) to real and personal 
 26.12  property.  The county agency must use the equity value of 
 26.13  legally available real and personal property, except property 
 26.14  excluded in subdivisions 2 and 3, to determine whether an 
 26.15  applicant or participant is eligible for assistance. 
 26.16     (a) When real or personal property is jointly owned by two 
 26.17  or more persons, the county agency shall assume that each person 
 26.18  owns an equal share, except that either person owns the entire 
 26.19  sum of a joint personal checking or savings account.  When an 
 26.20  applicant or participant documents greater or lesser ownership, 
 26.21  the county agency must use that greater or lesser share to 
 26.22  determine the equity value held by the applicant or 
 26.23  participant.  Other types of ownership must be evaluated 
 26.24  according to law. 
 26.25     (b) Real or personal property owned by the applicant or 
 26.26  participant must be presumed legally available to the applicant 
 26.27  or participant unless the applicant or participant documents 
 26.28  that the property is not legally available to the applicant or 
 26.29  participant.  When real or personal property is not legally 
 26.30  available, its equity value must not be applied against the 
 26.31  limits of subdivisions 2 and 3. 
 26.32     (c) An applicant must disclose whether the applicant has 
 26.33  transferred real or personal property valued in excess of the 
 26.34  property limits in subdivisions 2 and 3 for which reasonable 
 26.35  compensation was not received within one year prior to 
 26.36  application.  A participant must disclose all transfers of 
 27.1   property valued in excess of these limits, according to the 
 27.2   reporting requirements in section 256J.30, subdivision 9.  When 
 27.3   a transfer of real or personal property without reasonable 
 27.4   compensation has occurred: 
 27.5      (1) the person who transferred the property must provide 
 27.6   the property's description, information needed to determine the 
 27.7   property's equity value, the names of the persons who received 
 27.8   the property, and the circumstances of and reasons for the 
 27.9   transfer; and 
 27.10     (2) when the transferred property can be reasonably 
 27.11  reacquired, or when reasonable compensation can be secured, the 
 27.12  property is presumed legally available to the applicant or 
 27.13  participant. 
 27.14     (d) A participant may build the equity value of real and 
 27.15  personal property to the limits in subdivisions 2 and 3. 
 27.16     Subd. 2.  [REAL PROPERTY LIMITATIONS.] Ownership of real 
 27.17  property by an applicant or participant is subject to the 
 27.18  limitations in paragraphs (a) and (b). 
 27.19     (a) A county agency shall exclude the homestead of an 
 27.20  applicant or participant according to clauses (1) to (4): 
 27.21     (1) an applicant or participant who is purchasing real 
 27.22  property through a contract for deed and using that property as 
 27.23  a home is considered the owner of real property; 
 27.24     (2) the total amount of land that can be excluded under 
 27.25  this subdivision is limited to surrounding property which is not 
 27.26  separated from the home by intervening property owned by 
 27.27  others.  Additional property must be assessed as to its legal 
 27.28  and actual availability according to subdivision 1; 
 27.29     (3) when real property that has been used as a home by a 
 27.30  participant is sold, the county agency must treat the cash 
 27.31  proceeds from the sale as excluded property for six months when 
 27.32  the participant intends to reinvest the proceeds in another home 
 27.33  and maintains those proceeds, unused for other purposes, in a 
 27.34  separate account; and 
 27.35     (4) when the homestead is jointly owned, but the client 
 27.36  does not reside in it because of legal separation, pending 
 28.1   divorce, or battering or abuse by the spouse or partner, the 
 28.2   homestead is excluded. 
 28.3      (b) The equity value of real property that is not excluded 
 28.4   under paragraph (a) and which is legally available must be 
 28.5   applied against the limits in subdivision 3.  When the equity 
 28.6   value of the real property exceeds the limits under subdivision 
 28.7   3, the applicant or participant may qualify to receive 
 28.8   assistance when the applicant or participant continues to make a 
 28.9   good faith effort to sell the property and signs a legally 
 28.10  binding agreement to repay the amount of assistance, less child 
 28.11  support collected by the agency.  Repayment must be made within 
 28.12  five working days after the property is sold.  Repayment to the 
 28.13  county agency must be in the amount of assistance received or 
 28.14  the proceeds of the sale, whichever is less. 
 28.15     Subd. 3.  [OTHER PROPERTY LIMITATIONS.] To be eligible for 
 28.16  MFIP-S, the equity value of all nonexcluded real and personal 
 28.17  property of the assistance unit must not exceed $2,000 for 
 28.18  applicants and $5,000 for ongoing recipients.  The value of 
 28.19  clauses (1) to (17) must be excluded when determining the equity 
 28.20  value of real and personal property: 
 28.21     (1) licensed vehicles up to a total equity value of less 
 28.22  than or equal to $7,500.  The county agency shall apply any 
 28.23  excess equity value to the asset limit described in this 
 28.24  section.  If the assistance unit owns more than one licensed 
 28.25  vehicle, the county agency shall determine the vehicle with the 
 28.26  highest equity value and count only the equity value over 
 28.27  $7,500.  The county agency shall count the equity value of all 
 28.28  other vehicles and apply this amount to the asset limit 
 28.29  described in this section.  The value of special equipment for a 
 28.30  handicapped member of the assistance unit is excluded.  To 
 28.31  establish the equity value of vehicles, a county agency must 
 28.32  subtract any outstanding encumbrances from the trade-in value 
 28.33  listed in the N.A.D.A. Official Used Car Guide, Midwest Edition, 
 28.34  for newer model cars.  The N.A.D.A. Official Used Car Guide, 
 28.35  Midwest Edition, is incorporated by reference.  When a vehicle 
 28.36  is not listed in the guidebook, or when the applicant or 
 29.1   participant disputes the value listed in the guidebook as 
 29.2   unreasonable given the condition of the particular vehicle, the 
 29.3   county agency may require the applicant or participant to 
 29.4   document the value by securing a written statement from a motor 
 29.5   vehicle dealer licensed under section 168.27, stating the amount 
 29.6   that the dealer would pay to purchase the vehicle.  The county 
 29.7   agency shall reimburse the applicant or participant for the cost 
 29.8   of a written statement that documents a lower value; 
 29.9      (2) the value of life insurance policies for members of the 
 29.10  assistance unit; 
 29.11     (3) one burial plot per member of an assistance unit; 
 29.12     (4) the value of personal property needed to produce earned 
 29.13  income, including tools, implements, farm animals, inventory, 
 29.14  business loans, business checking and savings accounts used 
 29.15  exclusively for the operation of a self-employment business, and 
 29.16  any motor vehicles if the vehicles are essential for the 
 29.17  self-employment business; 
 29.18     (5) the value of personal property not otherwise specified 
 29.19  which is commonly used by household members in day-to-day living 
 29.20  such as clothing, necessary household furniture, equipment, and 
 29.21  other basic maintenance items essential for daily living; 
 29.22     (6) the value of real and personal property owned by a 
 29.23  recipient of Social Security Income or Minnesota supplemental 
 29.24  aid; 
 29.25     (7) the value of corrective payments, but only for the 
 29.26  month in which the payment is received and for the following 
 29.27  month; 
 29.28     (8) a mobile home used by an applicant or participant as 
 29.29  the applicant's or participant's home; 
 29.30     (9) money in a separate escrow account that is needed to 
 29.31  pay real estate taxes or insurance and that is used for this 
 29.32  purpose; 
 29.33     (10) money held in escrow to cover employee FICA, employee 
 29.34  tax withholding, sales tax withholding, employee worker 
 29.35  compensation, business insurance, property rental, property 
 29.36  taxes, and other costs that are paid at least annually, but less 
 30.1   often than monthly; 
 30.2      (11) monthly assistance and emergency assistance payments 
 30.3   for the current month's needs; 
 30.4      (12) the value of school loans, grants, or scholarships for 
 30.5   the period they are intended to cover; 
 30.6      (13) payments listed in section 256J.21, subdivision 2, 
 30.7   clause (9), which are held in escrow for a period not to exceed 
 30.8   three months to replace or repair personal or real property; 
 30.9      (14) income received in a budget month through the end of 
 30.10  the budget month; 
 30.11     (15) savings of a minor child or a minor parent that are 
 30.12  set aside in a separate account designated specifically for 
 30.13  future education or employment costs; 
 30.14     (16) the earned income tax credit and Minnesota working 
 30.15  family credit in the month received and the following month; and 
 30.16     (17) payments excluded under federal law as long as those 
 30.17  payments are held in a separate account from any nonexcluded 
 30.18  funds. 
 30.19     Sec. 13.  [256J.21] [INCOME LIMITATIONS.] 
 30.20     Subdivision 1.  [INCOME INCLUSIONS.] To determine MFIP-S 
 30.21  eligibility, the county agency must evaluate income received by 
 30.22  members of an assistance unit, or by other persons whose income 
 30.23  is considered available to the assistance unit.  All payments, 
 30.24  unless specifically excluded in subdivision 2, must be counted 
 30.25  as income. 
 30.26     Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
 30.27  excluded in determining a family's available income: 
 30.28     (1) payments for basic care, difficulty of care, and 
 30.29  clothing allowances received for providing family foster care to 
 30.30  children or adults under Minnesota Rules, parts 9545.0010 to 
 30.31  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
 30.32  used for care and maintenance of a third-party beneficiary who 
 30.33  is not a household member; 
 30.34     (2) reimbursements for employment training received through 
 30.35  the Job Training Partnership Act, United States Code, title 29, 
 30.36  chapter 19, sections 1501 to 1792b; 
 31.1      (3) reimbursement for out-of-pocket expenses incurred while 
 31.2   performing volunteer services, jury duty, or employment; 
 31.3      (4) all educational assistance, except the county agency 
 31.4   must count graduate student teaching assistantships, 
 31.5   fellowships, and other similar paid work as earned income and, 
 31.6   after allowing deductions for any unmet and necessary 
 31.7   educational expenses, shall count scholarships or grants awarded 
 31.8   to graduate students that do not require teaching or research as 
 31.9   unearned income; 
 31.10     (5) loans, regardless of purpose, from public or private 
 31.11  lending institutions, governmental lending institutions, or 
 31.12  governmental agencies; 
 31.13     (6) loans from private individuals, regardless of purpose, 
 31.14  provided an applicant or participant documents that the lender 
 31.15  expects repayment; 
 31.16     (7) state and federal income tax refunds; 
 31.17     (8) state and federal earned income credits; 
 31.18     (9) funds received for reimbursement, replacement, or 
 31.19  rebate of personal or real property when these payments are made 
 31.20  by public agencies, awarded by a court, solicited through public 
 31.21  appeal, or made as a grant by a federal agency, state or local 
 31.22  government, or disaster assistance organizations, subsequent to 
 31.23  a presidential declaration of disaster; 
 31.24     (10) the portion of an insurance settlement that is used to 
 31.25  pay medical, funeral, and burial expenses, or to repair or 
 31.26  replace insured property; 
 31.27     (11) reimbursements for medical expenses that cannot be 
 31.28  paid by medical assistance; 
 31.29     (12) payments by a vocational rehabilitation program 
 31.30  administered by the state under chapter 268A, except those 
 31.31  payments that are for current living expenses; 
 31.32     (13) in-kind income, including any payments directly made 
 31.33  by a third party to a provider of goods and services; 
 31.34     (14) assistance payments to correct underpayments, but only 
 31.35  for the month in which the payment is received; 
 31.36     (15) emergency assistance payments; 
 32.1      (16) funeral and cemetery payments as provided by section 
 32.2   256.935; 
 32.3      (17) nonrecurring cash gifts of $30 or less, not exceeding 
 32.4   $30 per participant in a calendar month; 
 32.5      (18) any form of energy assistance payment made through 
 32.6   Public Law Number 97-35, Low-Income Home Energy Assistance Act 
 32.7   of 1981, payments made directly to energy providers by other 
 32.8   public and private agencies, and any form of credit or rebate 
 32.9   payment issued by energy providers; 
 32.10     (19) Supplemental Security Income, including retroactive 
 32.11  payments; 
 32.12     (20) Minnesota supplemental aid, including retroactive 
 32.13  payments; 
 32.14     (21) proceeds from the sale of real or personal property; 
 32.15     (22) adoption assistance payments under section 259.67; 
 32.16     (23) state-funded family subsidy program payments made 
 32.17  under section 252.32 to help families care for children with 
 32.18  mental retardation or related conditions; 
 32.19     (24) interest payments and dividends from property that is 
 32.20  not excluded from and that does not exceed the asset limit; 
 32.21     (25) rent rebates; 
 32.22     (26) income earned by a minor caregiver or minor child who 
 32.23  is at least a half-time student; 
 32.24     (27) income earned by a caregiver under age 20 who is at 
 32.25  least a half-time student in an approved secondary education 
 32.26  program; 
 32.27     (28) MFIP-S child care payments under section 119B.05; 
 32.28     (29) all other payments made through MFIP-S to support a 
 32.29  caregiver's pursuit of greater self-support; 
 32.30     (30) income a participant receives related to shared living 
 32.31  expenses; 
 32.32     (31) reverse mortgages; 
 32.33     (32) benefits provided by the Child Nutrition Act of 1966, 
 32.34  United States Code, title 42, chapter 13A, sections 1771 to 
 32.35  1790; 
 32.36     (33) benefits provided by the women, infants, and children 
 33.1   (WIC) nutrition program, United States Code, title 42, chapter 
 33.2   13A, section 1786; 
 33.3      (34) benefits from the National School Lunch Act, United 
 33.4   States Code, title 42, chapter 13, sections 1751 to 1769e; 
 33.5      (35) relocation assistance for displaced persons under the 
 33.6   Uniform Relocation Assistance and Real Property Acquisition 
 33.7   Policies Act of 1970, United States Code, title 42, chapter 61, 
 33.8   subchapter II, section 4636, or the National Housing Act, United 
 33.9   States Code, title 12, chapter 13, sections 1701 to 1750jj; 
 33.10     (36) benefits from the Trade Act of 1974, United States 
 33.11  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
 33.12     (37) war reparations payments to Japanese Americans and 
 33.13  Aleuts under United States Code, title 50, sections 1989 to 
 33.14  1989d; 
 33.15     (38) payments to veterans or their dependents as a result 
 33.16  of legal settlements regarding Agent Orange or other chemical 
 33.17  exposure under Public Law Number 101-239, section 10405, 
 33.18  paragraph (a)(2)(E); 
 33.19     (39) income that is otherwise specifically excluded from 
 33.20  the MFIP-S program consideration in federal law, state law, or 
 33.21  federal regulation; 
 33.22     (40) security and utility deposit refunds; and 
 33.23     (41) American Indian tribal land settlements excluded under 
 33.24  Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
 33.25  Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
 33.26  reservations and payments to members of the White Earth Band, 
 33.27  under United States Code, title 25, chapter 9, section 331, and 
 33.28  chapter 16, section 1407. 
 33.29     (b) When determining income of members of the family who do 
 33.30  not elect to be included in the assistance unit, the county 
 33.31  agency shall count the remaining income after disregarding: 
 33.32     (1) all income of the minor parent's parent when 
 33.33  determining the grant for the minor parent in households that 
 33.34  include a minor parent living with a parent on TANF with other 
 33.35  dependent children.  The standard of need for the minor parent 
 33.36  is equal to the standard of need available if the minor parent's 
 34.1   parent was not a recipient of TANF; and 
 34.2      (2) income of the minor parent's parent equal to 200 
 34.3   percent of the federal poverty guideline for a family size not 
 34.4   including the minor parent and the minor parent's child in 
 34.5   households that include a minor parent living with a parent not 
 34.6   on TANF when determining the grant for the minor parent.  The 
 34.7   remainder of income is deemed under Code of Federal Regulations, 
 34.8   title 45, section 233.20(a)(3)(xviii). 
 34.9      Subd. 3.  [INITIAL INCOME TEST.] The county agency shall 
 34.10  determine initial eligibility by considering all earned and 
 34.11  unearned income that is not excluded under subdivision 2.  To be 
 34.12  eligible for MFIP-S, the assistance unit's countable income 
 34.13  minus the disregards in paragraphs (a) to (d) must be below the 
 34.14  transitional standard of assistance according to section 256J.24 
 34.15  for that size assistance unit. 
 34.16     (a) When determining initial eligibility, the employment 
 34.17  disregard is 18 percent of the gross earned income whether or 
 34.18  not the member is working full time or part time. 
 34.19     (b) When determining initial eligibility, all payments made 
 34.20  according to a court order for the support of children not 
 34.21  living in the assistance unit's household must be disregarded 
 34.22  from the income of the person with the legal obligation to pay 
 34.23  support, provided that, if there has been a change in the 
 34.24  financial circumstances of the person with the legal obligation 
 34.25  to pay support since the support order was entered, the person 
 34.26  with the legal obligation to pay support has petitioned for a 
 34.27  modification of the court order. 
 34.28     (c) When determining initial eligibility, dependent care 
 34.29  costs must be deducted from gross earned income for the actual 
 34.30  amount paid for dependent care up to the maximum disregard 
 34.31  allowed under this chapter and chapter 119B. 
 34.32     (d) Notwithstanding paragraph (a), when determining initial 
 34.33  eligibility for participants who have received AFDC, family 
 34.34  general assistance, MFIP, work first, or MFIP-S in this state 
 34.35  within four months of the most recent application for MFIP-S, 
 34.36  the employment disregard is 35 percent of the gross earned 
 35.1   income. 
 35.2      After initial eligibility is established, the assistance 
 35.3   payment calculation is based on the monthly income test. 
 35.4      Subd. 4.  [MONTHLY INCOME TEST AND DETERMINATION OF 
 35.5   ASSISTANCE PAYMENT.] The county agency shall determine ongoing 
 35.6   eligibility and the assistance payment amount according to the 
 35.7   monthly income test.  To be eligible for MFIP-S, the result of 
 35.8   the computations in paragraphs (a) to (e) must be at least $1. 
 35.9      (a) Apply a 35 percent income disregard to gross earnings 
 35.10  and subtract this amount from the family wage level.  If the 
 35.11  difference is equal to or greater than the transitional 
 35.12  standard, the assistance payment is equal to the transitional 
 35.13  standard.  If the difference is less than the transitional 
 35.14  standard, the assistance payment is equal to the difference.  
 35.15  The employment disregard in this paragraph must be deducted 
 35.16  every month there is earned income. 
 35.17     (b) All payments made according to a court order for the 
 35.18  support of children not living in the assistance unit's 
 35.19  household must be disregarded from the income of the person with 
 35.20  the legal obligation to pay support, provided that, if there has 
 35.21  been a change in the financial circumstances of the person with 
 35.22  the legal obligation to pay support since the support order was 
 35.23  entered, the person with the legal obligation to pay support has 
 35.24  petitioned for a modification of the court order. 
 35.25     (c) Subtract unearned income dollar for dollar from the 
 35.26  transitional standard to determine the assistance payment amount.
 35.27     (d) When income is both earned and unearned, the amount of 
 35.28  the assistance payment must be determined by first treating 
 35.29  gross earned income as specified in paragraph (a).  After 
 35.30  determining the amount of the assistance payment under paragraph 
 35.31  (a), unearned income must be subtracted from that amount dollar 
 35.32  for dollar to determine the assistance payment amount. 
 35.33     (e) When the monthly income is greater than the 
 35.34  transitional or family wage level standard after applicable 
 35.35  deductions and the income will only exceed the standard for one 
 35.36  month, the county agency must suspend the assistance payment for 
 36.1   the payment month. 
 36.2      Subd. 5.  [DISTRIBUTION OF INCOME.] The income of all 
 36.3   members of the assistance unit must be counted.  Income may also 
 36.4   be deemed from ineligible persons to the assistance unit.  
 36.5   Income must be attributed to the person who earns it or to the 
 36.6   assistance unit according to paragraphs (a) to (c). 
 36.7      (a) Funds distributed from a trust, whether from the 
 36.8   principal holdings or sale of trust property or from the 
 36.9   interest and other earnings of the trust holdings, must be 
 36.10  considered income when the income is legally available to an 
 36.11  applicant or participant.  Trusts are presumed legally available 
 36.12  unless an applicant or participant can document that the trust 
 36.13  is not legally available. 
 36.14     (b) Income from jointly owned property must be divided 
 36.15  equally among property owners unless the terms of ownership 
 36.16  provide for a different distribution. 
 36.17     (c) Deductions are not allowed from the gross income of a 
 36.18  financially responsible household member or by the members of an 
 36.19  assistance unit to meet a current or prior debt. 
 36.20     Sec. 14.  [256J.24] [FAMILY COMPOSITION AND ASSISTANCE 
 36.21  STANDARDS.] 
 36.22     Subdivision 1.  [MFIP-S ASSISTANCE UNIT.] An MFIP-S 
 36.23  assistance unit is either a group of individuals with at least 
 36.24  one minor child who live together whose needs, assets, and 
 36.25  income are considered together and who receive MFIP-S 
 36.26  assistance, or a pregnant woman who receives MFIP-S assistance.  
 36.27  Individuals identified in subdivision 2 must be included in the 
 36.28  MFIP-S assistance unit.  Individuals identified in subdivision 3 
 36.29  must be excluded from the assistance unit.  Individuals 
 36.30  identified in subdivision 4 may be included in the assistance 
 36.31  unit at their option.  Individuals not included in the 
 36.32  assistance unit who are identified in section 256J.37, 
 36.33  subdivision 1, must have their income considered when 
 36.34  determining eligibility and benefits for an MFIP-S assistance 
 36.35  unit.  All assistance unit members, whether mandatory or 
 36.36  elective, who live together and for whom one caregiver or two 
 37.1   caregivers apply must be included in a single assistance unit. 
 37.2      Subd. 2.  [MANDATORY ASSISTANCE UNIT COMPOSITION.] When the 
 37.3   following individuals live together, they must be included in 
 37.4   the assistance unit: 
 37.5      (1) a minor child; 
 37.6      (2) the minor child's siblings, half-siblings, and 
 37.7   step-siblings; and 
 37.8      (3) the minor child's natural, adoptive parents, and 
 37.9   stepparents. 
 37.10     Subd. 3.  [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 
 37.11  ASSISTANCE UNIT.] The following individuals must be excluded 
 37.12  from an assistance unit: 
 37.13     (1) individuals receiving Supplemental Security Income or 
 37.14  Minnesota supplemental aid; 
 37.15     (2) individuals living at home while performing 
 37.16  court-imposed, unpaid community service work due to a criminal 
 37.17  conviction; and 
 37.18     (3) individuals disqualified from the food stamp program 
 37.19  until the disqualification ends. 
 37.20     Subd. 4.  [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 
 37.21  ASSISTANCE UNIT.] The minor child's eligible relative caregiver 
 37.22  may choose to be in the assistance unit.  If the relative 
 37.23  caregiver chooses to be in the assistance unit, that person's 
 37.24  spouse must also be in the unit. 
 37.25     Subd. 5.  [MFIP-S TRANSITIONAL STANDARD.] The following 
 37.26  table represents the MFIP-S transitional standard table 
 37.27  beginning July 1, 1999, when all members of the assistance unit 
 37.28  are eligible for both food and cash assistance. 
 37.29       Number of Eligible People          Standard 
 37.30                     1                      $344
 37.31                     2                      $596
 37.32                     3                      $747 
 37.33                     4                      $884 
 37.34                     5                    $1,003 
 37.35                     6                    $1,140 
 37.36                     7                    $1,246 
 38.1                      8                    $1,373 
 38.2                      9                    $1,498 
 38.3                     10                    $1,618 
 38.4                over 10          add $118 per additional member. 
 38.5      The commissioner shall annually publish in the State 
 38.6   Register the transitional standard for an assistance unit sizes 
 38.7   1 to 10. 
 38.8      Subd. 5a.  [TEMPORARY TRANSITIONAL STANDARD.] The following 
 38.9   table represents the MFIP-S transitional standard table 
 38.10  beginning December 1, 1997, to June 30, 1999, when all members 
 38.11  of the assistance unit are eligible for both food and cash 
 38.12  assistance. 
 38.13       Number of People          Standard
 38.14               1                    $353
 38.15               2                    $612
 38.16               3                    $767
 38.17               4                    $908
 38.18               5                  $1,030
 38.19               6                  $1,171
 38.20               7                  $1,279
 38.21               8                  $1,410
 38.22               9                  $1,538
 38.23              10                  $1,661
 38.24         over 10                    $121
 38.25     Subd. 6.  [APPLICATION OF ASSISTANCE STANDARDS.] The 
 38.26  standards apply to the number of eligible persons in the 
 38.27  assistance unit. 
 38.28     Subd. 7.  [FAMILY WAGE LEVEL STANDARD.] The family wage 
 38.29  level standard is 110 percent of the transitional standard under 
 38.30  subdivision 5 and is the standard used when there is earned 
 38.31  income in the assistance unit.  As specified in section 256J.21, 
 38.32  earned income is subtracted from the family wage level to 
 38.33  determine the amount of the assistance payment.  Assistance 
 38.34  payments may not exceed the transitional standard for the 
 38.35  assistance unit. 
 38.36     Sec. 15.  [256J.26] [PERSONS INELIGIBLE.] 
 39.1      Subdivision 1. [PAROLE VIOLATORS.] An individual violating 
 39.2   a condition of probation or parole imposed under federal or 
 39.3   state law is ineligible to receive MFIP-S. 
 39.4      Subd. 2.  [FLEEING FELONS.] An individual who is fleeing to 
 39.5   avoid prosecution, or custody, or confinement after conviction 
 39.6   for a crime that is a felony under the laws of the state from 
 39.7   which the individual flees, or in the case of New Jersey, is a 
 39.8   high misdemeanor, is ineligible to receive MFIP-S. 
 39.9      Subd. 3.  [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 
 39.10  FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 
 39.11  individual who is convicted in federal or state court of having 
 39.12  made a fraudulent statement or representation with respect to 
 39.13  the place of residence of the individual in order to receive 
 39.14  assistance simultaneously from two or more states is ineligible 
 39.15  to receive MFIP-S for ten years beginning on the date of the 
 39.16  conviction. 
 39.17     Sec. 16.  [256J.28] [PROVISIONS RELATED SPECIFICALLY TO 
 39.18  FOOD STAMP ASSISTANCE.] 
 39.19     Subdivision 1.  [EXPEDITED ISSUANCE OF FOOD STAMP 
 39.20  ASSISTANCE.] The following households are entitled to expedited 
 39.21  issuance of food stamp assistance: 
 39.22     (1) households with less than $150 in monthly gross income 
 39.23  provided their liquid assets do not exceed $100; 
 39.24     (2) migrant or seasonal farm worker households who are 
 39.25  destitute as defined in Code of Federal Regulations, title 7, 
 39.26  subtitle B, chapter 2, subchapter C, part 273, section 273.10, 
 39.27  paragraph (e)(3), provided their liquid assets do not exceed 
 39.28  $100; and 
 39.29     (3) eligible households whose combined monthly gross income 
 39.30  and liquid resources are less than the household's monthly rent 
 39.31  or mortgage and utilities. 
 39.32     The benefits issued through expedited issuance of food 
 39.33  stamp assistance must be deducted from the amount of the full 
 39.34  monthly MFIP-S assistance payment and a supplemental payment for 
 39.35  the difference must be issued. 
 39.36     Subd. 2.  [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 
 40.1   ASSISTANCE UNIT.] For household members who purchase and prepare 
 40.2   food with the MFIP-S assistance unit but are not part of the 
 40.3   assistance unit, the county agency must determine a separate 
 40.4   food stamp benefit based on regulations agreed upon with the 
 40.5   department of agriculture. 
 40.6      This subdivision does not apply to optional members who 
 40.7   have chosen not to be in the assistance unit. 
 40.8      Fair hearing requirements for persons who receive food 
 40.9   stamps under this subdivision are governed by section 256.045, 
 40.10  and Code of Federal Regulations, title 7, subtitle B, chapter 
 40.11  II, part 273, section 273.15. 
 40.12     Subd. 3.  [INCOME DISREGARD FOR CERTAIN PROGRAMS, FOOD 
 40.13  ASSISTANCE PORTION OF ASSISTANCE PAYMENT.] The portion of the 
 40.14  MFIP-S assistance payment that is designated by the commissioner 
 40.15  as the food assistance portion of the assistance payment must be 
 40.16  disregarded as income in the following programs: 
 40.17     (1) housing subsidy programs; 
 40.18     (2) low-income home energy assistance program; 
 40.19     (3) Supplemental Security Income, when determining interim 
 40.20  assistance amount; and 
 40.21     (4) other programs that do not count food stamps as income. 
 40.22     For the purposes of this subdivision, the food assistance 
 40.23  portion of the assistance payment means a predetermined portion 
 40.24  of the MFIP-S assistance payment that may be received in 
 40.25  point-of-purchase sites or as food stamps.  The predetermined 
 40.26  portion of the assistance payment will vary by family profile, 
 40.27  which is based on family size. 
 40.28     Subd. 4.  [INELIGIBILITY FOR FOOD PORTION OF MFIP-S 
 40.29  ASSISTANCE GRANT.] The MFIP-S assistance grant must be reduced 
 40.30  in an amount equal to the food portion of the MFIP-S assistance 
 40.31  grant for those MFIP-S recipients who are caregivers who are not 
 40.32  natural or adoptive parents and are not required to participate 
 40.33  in work activities under this chapter. 
 40.34     Sec. 17.  [256J.30] [APPLICANT AND PARTICIPANT REQUIREMENTS 
 40.35  AND RESPONSIBILITIES.] 
 40.36     Subdivision 1.  [APPLICANT REPORTING REQUIREMENTS.] An 
 41.1   applicant must provide information on an application form and 
 41.2   supplemental forms about the applicant's circumstances which 
 41.3   affect MFIP-S eligibility or the assistance payment.  An 
 41.4   applicant must report changes identified in subdivision 9 while 
 41.5   the application is pending.  When an applicant does not 
 41.6   accurately report information on an application, both an 
 41.7   overpayment and a referral for a fraud investigation may 
 41.8   result.  When an applicant does not provide information or 
 41.9   documentation, the receipt of the assistance payment may be 
 41.10  delayed or the application may be denied depending on the type 
 41.11  of information required and its effect on eligibility. 
 41.12     Subd. 2.  [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 
 41.13  applicant or participant must apply for and follow through with 
 41.14  appealing any denials of eligibility for benefits from other 
 41.15  programs for which the applicant or participant is potentially 
 41.16  eligible and which would, if received, offset assistance 
 41.17  payments.  An applicant's or participant's failure to complete 
 41.18  application for these benefits without good cause results in 
 41.19  denial or termination of assistance.  Good cause for failure to 
 41.20  apply for these benefits is allowed when circumstances beyond 
 41.21  the control of the applicant or participant prevent the 
 41.22  applicant or participant from making an application. 
 41.23     Subd. 3.  [RESPONSIBILITY TO INQUIRE.] An applicant or 
 41.24  participant who does not know or is unsure whether a given 
 41.25  change in circumstances will affect the applicant's or 
 41.26  participant's MFIP-S eligibility or assistance payment must 
 41.27  contact the county agency for information.  
 41.28     Subd. 4.  [PARTICIPANT'S COMPLETION OF RECERTIFICATION OF 
 41.29  ELIGIBILITY FORM.] A participant must complete forms prescribed 
 41.30  by the commissioner which are required for recertification of 
 41.31  eligibility according to section 256J.32, subdivision 5. 
 41.32     Subd. 5.  [MONTHLY MFIP-S HOUSEHOLD REPORTS.] Each 
 41.33  assistance unit with a member who has earned income or a recent 
 41.34  work history, and each assistance unit that has income deemed to 
 41.35  it from a financially responsible person must complete a monthly 
 41.36  MFIP-S household report form.  "Recent work history" means the 
 42.1   individual received earned income in the report month or any of 
 42.2   the previous three calendar months even if the earnings are 
 42.3   excluded.  To be complete, the MFIP-S household report form must 
 42.4   be signed and dated by the caregivers no earlier than the last 
 42.5   day of the reporting period.  All questions required to 
 42.6   determine assistance payment eligibility must be answered, and 
 42.7   documentation of earned income must be included. 
 42.8      Subd. 6.  [SIX-MONTH MFIP-S HOUSEHOLD REPORT.] Assistance 
 42.9   units that are not required to report monthly under subdivision 
 42.10  5 must complete an MFIP-S household report form every six 
 42.11  months.  To be complete, the MFIP-S household report form must 
 42.12  be signed and dated by the caregiver or caregivers no earlier 
 42.13  than the last day of the reporting period.  All questions 
 42.14  required to determine assistance payment eligibility must be 
 42.15  answered and documentation of earned income must be included. 
 42.16     Subd. 7.  [DUE DATE OF MFIP-S HOUSEHOLD REPORT.] An MFIP-S 
 42.17  household report form must be received by the county agency by 
 42.18  the eighth calendar day of the month following the reporting 
 42.19  period covered by the form.  When the eighth calendar day of the 
 42.20  month falls on a weekend or holiday, the MFIP-S household report 
 42.21  form must be received by the county agency the first working day 
 42.22  that follows the eighth calendar day.  The county agency must 
 42.23  send a notice of termination because of a late or incomplete 
 42.24  MFIP-S household report form. 
 42.25     Subd. 8.  [LATE MFIP-S HOUSEHOLD REPORT FORMS.] Paragraphs 
 42.26  (a) to (d) apply to the reporting requirements in subdivision 7. 
 42.27     (a) When a caregiver submits an incomplete MFIP-S household 
 42.28  report form before the last working day of the month on which a 
 42.29  ten-day notice of termination can be issued, the county agency 
 42.30  must return the incomplete form on or before the ten-day notice 
 42.31  deadline or any previously sent ten-day notice of termination is 
 42.32  invalid. 
 42.33     (b) When a complete MFIP-S household report form is not 
 42.34  received by a county agency before the last ten days of the 
 42.35  month in which the form is due, the county agency must send a 
 42.36  notice of proposed termination of assistance.  When a caregiver 
 43.1   submits an incomplete form on or after the date a notice of 
 43.2   proposed termination has been sent, the termination is valid 
 43.3   unless the caregiver submits a complete form before the end of 
 43.4   the month. 
 43.5      (c) An assistance unit required to submit an MFIP-S 
 43.6   household report form is considered to have continued its 
 43.7   application for assistance if a complete MFIP-S household report 
 43.8   form is received within a calendar month after the month in 
 43.9   which assistance was received and assistance shall be paid for 
 43.10  the period beginning with the first day of the month in which 
 43.11  the report was due. 
 43.12     (d) A county agency must allow good cause exemptions from 
 43.13  the reporting requirements under subdivisions 5 and 6 when any 
 43.14  of the following factors cause a caregiver to fail to provide 
 43.15  the county agency with a completed MFIP-S household report form 
 43.16  before the end of the month in which the form is due: 
 43.17     (1) an employer delays completion of employment 
 43.18  verification; 
 43.19     (2) a county agency does not help a caregiver complete the 
 43.20  MFIP-S household report form when the caregiver asks for help; 
 43.21     (3) a caregiver does not receive an MFIP-S household report 
 43.22  form due to mistake on the part of the department or the county 
 43.23  agency or due to a reported change in address; 
 43.24     (4) a caregiver is ill, or physically or mentally 
 43.25  incapacitated; or 
 43.26     (5) some other circumstance occurs that a caregiver could 
 43.27  not avoid with reasonable care which prevents the caregiver from 
 43.28  providing a completed MFIP-S household report form before the 
 43.29  end of the month in which the form is due. 
 43.30     Subd. 9.  [CHANGES THAT MUST BE REPORTED.] A caregiver must 
 43.31  report the changes or anticipated changes specified in clauses 
 43.32  (1) to (16) within ten days of the date they occur, within ten 
 43.33  days of the date the caregiver learns that the change will 
 43.34  occur, at the time of the periodic recertification of 
 43.35  eligibility under section 256J.32, subdivision 6, or within 
 43.36  eight calendar days of a reporting period as in subdivision 5 or 
 44.1   6, whichever occurs first.  A caregiver must report other 
 44.2   changes at the time of the periodic recertification of 
 44.3   eligibility under section 256J.32, subdivision 6, or at the end 
 44.4   of a reporting period under subdivision 5 or 6, as applicable.  
 44.5   A caregiver must make these reports in writing to the county 
 44.6   agency.  When a county agency could have reduced or terminated 
 44.7   assistance for one or more payment months if a delay in 
 44.8   reporting a change specified under clauses (1) to (16) had not 
 44.9   occurred, the county agency must determine whether a timely 
 44.10  notice under section 256J.31, subdivision 4, could have been 
 44.11  issued on the day that the change occurred.  When a timely 
 44.12  notice could have been issued, each month's overpayment 
 44.13  subsequent to that notice must be considered a client error 
 44.14  overpayment under section 256J.38.  Changes in circumstances 
 44.15  which must be reported within ten days must also be reported on 
 44.16  the MFIP-S household report form for the reporting period in 
 44.17  which those changes occurred.  Within ten days, a caregiver must 
 44.18  report: 
 44.19     (1) a change in initial employment; 
 44.20     (2) a change in initial receipt of unearned income; 
 44.21     (3) a recurring change in unearned income; 
 44.22     (4) a nonrecurring change of unearned income that exceeds 
 44.23  $30; 
 44.24     (5) the receipt of a lump sum; 
 44.25     (6) an increase in assets that may cause the assistance 
 44.26  unit to exceed asset limits; 
 44.27     (7) a change in the physical or mental status of an 
 44.28  incapacitated adult if the physical or mental status is the 
 44.29  basis of exemption from an MFIP-S work and training program; 
 44.30     (8) a change in employment status; 
 44.31     (9) a change in household composition, including births, 
 44.32  returns to and departures from the home of assistance unit 
 44.33  members and financially responsible persons, or a change in the 
 44.34  custody of a minor child; 
 44.35     (10) a change in health insurance coverage; 
 44.36     (11) the marriage or divorce of an assistance unit member; 
 45.1      (12) the death of a parent, minor child, or financially 
 45.2   responsible person; 
 45.3      (13) a change in address or living quarters of the 
 45.4   assistance unit; 
 45.5      (14) the sale, purchase, or other transfer of property; 
 45.6      (15) a change in school attendance of a custodial parent or 
 45.7   an employed child; and 
 45.8      (16) filing a lawsuit, a workers' compensation claim, or a 
 45.9   monetary claim against a third party. 
 45.10     Subd. 10.  [COOPERATION WITH HEALTH CARE BENEFITS.] (a) The 
 45.11  caregiver of a minor child must cooperate with the county agency 
 45.12  to identify and provide information to assist the county agency 
 45.13  in pursuing third-party liability for medical services. 
 45.14     (b) A caregiver must assign to the department any rights to 
 45.15  health insurance policy benefits the caregiver has during the 
 45.16  period of MFIP-S eligibility. 
 45.17     (c) A caregiver must identify any third party who may be 
 45.18  liable for care and services available under the medical 
 45.19  assistance program on behalf of the applicant or participant and 
 45.20  all other assistance unit members. 
 45.21     (d) When a participant refuses to assign the rights to the 
 45.22  department, or when a participant refuses to identify any third 
 45.23  party who may be liable for care and services, the recipient 
 45.24  must be sanctioned as provided in section 256J.46.  The 
 45.25  recipient is also ineligible for medical assistance for a 
 45.26  minimum of one month and until the recipient cooperates with the 
 45.27  requirements of this subdivision. 
 45.28     Subd. 11.  [REQUIREMENT TO ASSIGN SUPPORT AND MAINTENANCE 
 45.29  RIGHTS.] To be eligible for MFIP-S, the caregiver must assign 
 45.30  all rights to child support and spousal maintenance benefits. 
 45.31     Subd. 12.  [REQUIREMENT TO PROVIDE SOCIAL SECURITY 
 45.32  NUMBERS.] Each member of the assistance unit must provide the 
 45.33  member's social security number to the county agency, except for 
 45.34  members in the assistance unit who are qualified noncitizens who 
 45.35  are victims of domestic violence as defined under section 
 45.36  256J.49.  When a social security number is not provided to the 
 46.1   county agency for verification, this requirement is satisfied 
 46.2   when each member of the assistance unit cooperates with the 
 46.3   procedures for verification of numbers, issuance of duplicate 
 46.4   cards, and issuance of new numbers which have been established 
 46.5   jointly between the Social Security Administration and the 
 46.6   commissioner. 
 46.7      Sec. 18.  [256J.31] [APPLICANT AND PARTICIPANT RIGHTS AND 
 46.8   COUNTY AGENCY RESPONSIBILITIES.] 
 46.9      Subdivision 1.  [RIGHT TO INFORMATION.] An applicant or 
 46.10  participant has the right to obtain from the county agency 
 46.11  information about the benefits, requirements, restrictions, and 
 46.12  appeal provisions of public assistance programs. 
 46.13     Subd. 2.  [RIGHT TO AUTHORIZED REPRESENTATIVE.] An 
 46.14  applicant or participant has the right to designate an 
 46.15  authorized representative to act on the applicant's or 
 46.16  participant's behalf.  An applicant or participant has the right 
 46.17  to be assisted or represented by an authorized representative in 
 46.18  eligibility determinations, recertification, conciliation 
 46.19  conferences, the fair hearing process, and any other contacts 
 46.20  with the county agency or the department.  When a county agency 
 46.21  determines that it is necessary for a person to assist an 
 46.22  applicant or participant, the county agency must designate a 
 46.23  staff member to assist the applicant or participant.  Upon a 
 46.24  request from an applicant or participant, a county agency must 
 46.25  provide addresses and telephone numbers of organizations that 
 46.26  provide legal services at low cost or no cost to low-income 
 46.27  persons. 
 46.28     Subd. 3.  [RIGHT OF APPLICANT TO NOTICE.] A county agency 
 46.29  must notify an applicant of the disposition of the applicant's 
 46.30  application.  The notice must be in writing and on forms 
 46.31  prescribed by the commissioner.  The county agency must mail the 
 46.32  notice to the last known mailing address provided by the 
 46.33  applicant.  When an application is denied, the county agency 
 46.34  must notify the applicant in writing of the reasons for the 
 46.35  denial, of the right to appeal, and of the right to reapply for 
 46.36  assistance. 
 47.1      Subd. 4.  [PARTICIPANT'S RIGHT TO NOTICE.] A county agency 
 47.2   must give a participant written notice of all adverse actions 
 47.3   affecting the participant including payment reductions, 
 47.4   suspensions, terminations, and use of protective, vendor, or 
 47.5   two-party payments.  The notice of adverse action must be on a 
 47.6   form prescribed or approved by the commissioner and must be 
 47.7   mailed to the last known mailing address provided by the 
 47.8   participant.  The county agency must state on the notice of 
 47.9   adverse action the action it intends to take, the reasons for 
 47.10  the action, the participant's right to appeal the action, the 
 47.11  conditions under which assistance can be continued pending an 
 47.12  appeal decision, and the related consequences of the action. 
 47.13     Subd. 5.  [MAILING OF NOTICE.] The notice of adverse action 
 47.14  shall be issued according to paragraphs (a) to (c). 
 47.15     (a) A county agency shall mail a notice of adverse action 
 47.16  at least ten days before the effective date of the adverse 
 47.17  action, except as provided in paragraphs (b) and (c). 
 47.18     (b) A county agency must mail a notice of adverse action at 
 47.19  least five days before the effective date of the adverse action 
 47.20  when the county agency has factual information that requires an 
 47.21  action to reduce, suspend, or terminate assistance based on 
 47.22  probable fraud. 
 47.23     (c) A county agency shall mail a notice of adverse action 
 47.24  before or on the effective date of the adverse action when the 
 47.25  county agency: 
 47.26     (1) receives the caregiver's signed monthly MFIP-S 
 47.27  household report form that includes information that requires 
 47.28  payment reduction, suspension, or termination; 
 47.29     (2) is informed of the death of a participant or the payee; 
 47.30     (3) receives a signed statement from the caregiver that 
 47.31  assistance is no longer wanted; 
 47.32     (4) receives a signed statement from the caregiver that 
 47.33  provides information that requires the termination or reduction 
 47.34  of assistance; 
 47.35     (5) verifies that a member of the assistance unit is absent 
 47.36  from the home and does not meet temporary absence provisions in 
 48.1   section 256J.13; 
 48.2      (6) verifies that a member of the assistance unit has 
 48.3   entered a regional treatment center or a licensed residential 
 48.4   facility for medical or psychological treatment or 
 48.5   rehabilitation; 
 48.6      (7) verifies that a member of an assistance unit has been 
 48.7   placed in foster care, and the provisions of section 256J.13, 
 48.8   subdivision 2, paragraph (b), do not apply; 
 48.9      (8) verifies that a member of an assistance unit has been 
 48.10  approved to receive assistance by another county or state; or 
 48.11     (9) cannot locate a caregiver. 
 48.12     Subd. 6.  [APPEAL RIGHTS.] An applicant, participant, or 
 48.13  former participant has the right to request a fair hearing when 
 48.14  aggrieved by an action or inaction of a county agency.  A 
 48.15  request for a fair hearing and rights pending a fair hearing are 
 48.16  set as specified in section 256J.40. 
 48.17     Subd. 7.  [CASE RECORDS AVAILABLE.] A county agency must 
 48.18  make financial case records available to the participant or 
 48.19  former participant as soon as possible but no later than the 
 48.20  fifth business day following the date of the request.  When the 
 48.21  participant or former participant asks for photocopies of 
 48.22  material from the financial case record, the county agency must 
 48.23  provide one copy of each page at no cost. 
 48.24     Subd. 8.  [RIGHT TO MANAGE AFFAIRS.] Except for protective 
 48.25  payment provisions authorized under section 256J.39, 
 48.26  participants have the right to manage their own affairs. 
 48.27     Subd. 9.  [RIGHT TO PROTECTION.] Minor caregivers have the 
 48.28  right to protection.  The county agency must refer a minor 
 48.29  caregiver to the social service unit within 30 days of the date 
 48.30  the application is approved.  The social service unit must 
 48.31  assist the caregiver who is less than 18 years of age to develop 
 48.32  a plan as specified in section 256J.54. 
 48.33     Subd. 10.  [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 
 48.34  earnings of a caregiver while participation in full or part-time 
 48.35  employment or training shall be protected from garnishment.  
 48.36  This protection for earnings shall extend for a period of six 
 49.1   months from the date of termination from MFIP-S. 
 49.2      Subd. 11.  [RESPONSIBILITY TO RETAIN CASE RECORDS.] The 
 49.3   county agency must retain financial case records and employment 
 49.4   and training service records for MFIP-S cases according to 
 49.5   chapter 13. 
 49.6      Sec. 19.  [256J.311] [LOCAL SERVICE UNIT PLAN.] 
 49.7      Each local or county service unit shall prepare and submit 
 49.8   a plan as specified in section 268.88. 
 49.9      Sec. 20.  [256J.315] [COUNTY AND TRIBAL COOPERATION.] 
 49.10     The county agency must cooperate with tribal governments in 
 49.11  the implementation of MFIP-S to ensure that the program meets 
 49.12  the special needs of persons living on Indian reservations.  
 49.13  This cooperation must include, but is not limited to, the 
 49.14  sharing of MFIP-S duties including initial screening, 
 49.15  orientation, assessments, and provision of employment and 
 49.16  training services.  The county agency shall encourage tribal 
 49.17  governments to assume duties related to MFIP-S and shall work 
 49.18  cooperatively with tribes that have assumed responsibility for a 
 49.19  portion of the MFIP-S program to expand tribal responsibilities, 
 49.20  if that expansion is requested by the tribe. 
 49.21     Sec. 21.  [256J.32] [DOCUMENTING, VERIFYING, AND 
 49.22  RECERTIFYING ELIGIBILITY.] 
 49.23     Subdivision 1.  [VERIFICATION OF INFORMATION.] A county 
 49.24  agency must only require verification of information necessary 
 49.25  to determine MFIP-S eligibility and the amount of the assistance 
 49.26  payment. 
 49.27     Subd. 2.  [DOCUMENTATION.] The applicant or participant 
 49.28  must document the information required under subdivisions 4 to 6 
 49.29  or authorize the county agency to verify the information.  The 
 49.30  applicant or participant has the burden of providing documentary 
 49.31  evidence to verify eligibility.  The county agency shall assist 
 49.32  the applicant or participant in obtaining required documents 
 49.33  when the applicant or participant is unable to do so.  When an 
 49.34  applicant or participant and the county agency are unable to 
 49.35  obtain documents needed to verify information, the county agency 
 49.36  may accept an affidavit from an applicant or participant as 
 50.1   sufficient documentation. 
 50.2      Subd. 3.  [CONTACTING THIRD PARTIES.] A county agency must 
 50.3   not request information about an applicant or participant that 
 50.4   is not of public record from a source other than county 
 50.5   agencies, the department, or the United States Department of 
 50.6   Health and Human Services without the person's prior written 
 50.7   consent.  An applicant's signature on an application form 
 50.8   constitutes consent for contact with the sources specified on 
 50.9   the application.  A county agency may use a single consent form 
 50.10  to contact a group of similar sources, such as banks or 
 50.11  insurance agencies, but the sources to be contacted must be 
 50.12  identified by the county agency prior to requesting an 
 50.13  applicant's consent. 
 50.14     Subd. 4.  [FACTORS TO BE VERIFIED.] The county agency shall 
 50.15  verify the following at application: 
 50.16     (1) identity of adults; 
 50.17     (2) presence of the minor child in the home, if 
 50.18  questionable; 
 50.19     (3) relationship of a minor child to caregivers in the 
 50.20  assistance unit; 
 50.21     (4) age, if necessary to determine MFIP-S eligibility; 
 50.22     (5) immigration status; 
 50.23     (6) social security number; 
 50.24     (7) income; 
 50.25     (8) self-employment expenses used as a deduction; 
 50.26     (9) source and purpose of deposits and withdrawals from 
 50.27  business accounts; 
 50.28     (10) spousal support and child support payments made to 
 50.29  persons outside the household; 
 50.30     (11) real property; 
 50.31     (12) vehicles; 
 50.32     (13) checking and savings accounts; 
 50.33     (14) savings certificates, savings bonds, stocks, and 
 50.34  individual retirement accounts; 
 50.35     (15) pregnancy if related to eligibility; 
 50.36     (16) inconsistent information, if related to eligibility; 
 51.1      (17) medical insurance; 
 51.2      (18) anticipated graduation date of an 18-year-old; 
 51.3      (19) burial accounts; 
 51.4      (20) school attendance, if related to eligibility; and 
 51.5      (21) residence. 
 51.6      Subd. 5.  [VERIFICATION OF IMMIGRATION STATUS.] An 
 51.7   applicant's written authorization is required before the county 
 51.8   agency contacts the Immigration and Naturalization Service to 
 51.9   verify immigration status under subdivision 4, clause (5).  
 51.10  However, refusal to provide such authorization is grounds for a 
 51.11  finding of ineligibility if the applicant fails to produce proof 
 51.12  of eligible immigration status.  
 51.13     Subd. 5a.  [INCONSISTENT INFORMATION.] When the county 
 51.14  agency verifies inconsistent information under subdivision 4, 
 51.15  clause (16), or under subdivision 6, clause (4), the reason for 
 51.16  verifying the information must be documented in the financial 
 51.17  case record. 
 51.18     Subd. 6.  [RECERTIFICATION.] The county agency shall 
 51.19  recertify eligibility in an annual face-to-face interview with 
 51.20  the participant and verify the following: 
 51.21     (1) presence of the minor child in the home, if 
 51.22  questionable; 
 51.23     (2) income, including self-employment expenses used as a 
 51.24  deduction or deposits or withdrawals from business accounts; 
 51.25     (3) assets when the value is within $200 of the asset 
 51.26  limit; and 
 51.27     (4) inconsistent information, if related to eligibility.  
 51.28     Sec. 22.  [256J.33] [PROSPECTIVE AND RETROSPECTIVE 
 51.29  DETERMINATION OF MFIP-S ELIGIBILITY.] 
 51.30     Subdivision 1.  [DETERMINATION OF ELIGIBILITY.] A county 
 51.31  agency must determine MFIP-S eligibility prospectively for a 
 51.32  payment month based on retrospectively assessing income and the 
 51.33  county agency's best estimate of the circumstances that will 
 51.34  exist in the payment month. 
 51.35     Except as described in section 256J.34, subdivision 1, when 
 51.36  prospective eligibility exists, a county agency must calculate 
 52.1   the amount of the assistance payment using retrospective 
 52.2   budgeting.  To determine MFIP-S eligibility and the assistance 
 52.3   payment amount, a county agency must apply countable income, 
 52.4   described in section 256J.37, subdivisions 3 to 10, received by 
 52.5   members of an assistance unit or by other persons whose income 
 52.6   is counted for the assistance unit, described under sections 
 52.7   256J.21 and 256J.37, subdivisions 1 and 2. 
 52.8      This income must be applied to the transitional standard or 
 52.9   family wage standard subject to this section and sections 
 52.10  256J.34 to 256J.36.  Income received in a calendar month and not 
 52.11  otherwise excluded under section 256J.21, subdivision 2, must be 
 52.12  applied to the needs of an assistance unit. 
 52.13     Subd. 2.  [PROSPECTIVE ELIGIBILITY.] A county agency must 
 52.14  determine whether the eligibility requirements that pertain to 
 52.15  an assistance unit, including those in sections 256J.11 to 
 52.16  256J.15 and 256J.20, will be met prospectively for the payment 
 52.17  month.  Except for the provisions in section 256J.34, 
 52.18  subdivision 1, the income test will be applied retrospectively. 
 52.19     Subd. 3.  [RETROSPECTIVE ELIGIBILITY.] After the first two 
 52.20  months of MFIP-S eligibility, a county agency must continue to 
 52.21  determine whether an assistance unit is prospectively eligible 
 52.22  for the payment month by looking at all factors other than 
 52.23  income and then determine whether the assistance unit is 
 52.24  retrospectively income eligible by applying the monthly income 
 52.25  test to the income from the budget month.  When the monthly 
 52.26  income test is not satisfied, the assistance payment must be 
 52.27  suspended when ineligibility exists for one month or ended when 
 52.28  ineligibility exists for more than one month. 
 52.29     Subd. 4.  [MONTHLY INCOME TEST.] A county agency must apply 
 52.30  the monthly income test retrospectively for each month of MFIP-S 
 52.31  eligibility.  An assistance unit is not eligible when the 
 52.32  countable income equals or exceeds the transitional standard or 
 52.33  the family wage level for the assistance unit.  The income 
 52.34  applied against the monthly income test must include: 
 52.35     (1) gross earned income from employment, prior to mandatory 
 52.36  payroll deductions, voluntary payroll deductions, wage 
 53.1   authorizations, and after the disregards in section 256J.21, 
 53.2   subdivision 3, and the allocations in section 256J.36, unless 
 53.3   the employment income is specifically excluded under section 
 53.4   256J.21, subdivision 2; 
 53.5      (2) gross earned income from self-employment less 
 53.6   deductions for self-employment expenses in section 256J.37, 
 53.7   subdivision 5, but prior to any reductions for personal or 
 53.8   business state and federal income taxes, personal FICA, personal 
 53.9   health and life insurance, and after the disregards in section 
 53.10  256J.21, subdivision 3, and the allocations in section 256J.36; 
 53.11     (3) unearned income after deductions for allowable expenses 
 53.12  in section 256J.37, subdivision 9, and allocations in section 
 53.13  256J.36, unless the income has been specifically excluded in 
 53.14  section 256J.21, subdivision 2; 
 53.15     (4) gross earned income from employment as determined under 
 53.16  clause (1) which is received by a member of an assistance unit 
 53.17  who is a minor child or minor caregiver and less than a 
 53.18  half-time student; 
 53.19     (5) child support and spousal support received or 
 53.20  anticipated to be received by an assistance unit; 
 53.21     (6) the income of a parent when that parent is not included 
 53.22  in the assistance unit; 
 53.23     (7) the income of an eligible relative and spouse who seek 
 53.24  to be included in the assistance unit; and 
 53.25     (8) the unearned income of a minor child included in the 
 53.26  assistance unit. 
 53.27     Subd. 5.  [WHEN TO TERMINATE ASSISTANCE.] When an 
 53.28  assistance unit is ineligible for MFIP-S assistance for two 
 53.29  consecutive months, the county agency must terminate MFIP-S 
 53.30  assistance. 
 53.31     Sec. 23.  [256J.34] [CALCULATING PAYMENTS; SIGNIFICANT 
 53.32  CHANGE; INCOME AVERAGING.] 
 53.33     Subdivision 1.  [PROSPECTIVE BUDGETING.] A county agency 
 53.34  must use prospective budgeting to calculate the assistance 
 53.35  payment amount for the first two months for an applicant who has 
 53.36  not received assistance in this state for at least one payment 
 54.1   month preceding the first month of payment under a current 
 54.2   application.  Prospective budgeting is not subject to 
 54.3   overpayments or underpayments unless fraud is determined under 
 54.4   section 256.98. 
 54.5      (a) The county agency must apply the income received or 
 54.6   anticipated in the first month of MFIP-S eligibility against the 
 54.7   need of the first month.  The county agency must apply the 
 54.8   income received or anticipated in the second month against the 
 54.9   need of the second month. 
 54.10     (b) When the assistance payment for any part of the first 
 54.11  two months is based on anticipated income, the county agency 
 54.12  must base the initial assistance payment amount on the 
 54.13  information available at the time the initial assistance payment 
 54.14  is made. 
 54.15     (c) The county agency must determine the assistance payment 
 54.16  amount for the first two months of MFIP-S eligibility by 
 54.17  budgeting both recurring and nonrecurring income for those two 
 54.18  months. 
 54.19     (d) The county agency must budget the child support income 
 54.20  received or anticipated to be received by an assistance unit to 
 54.21  determine the assistance payment amount from the month of 
 54.22  application through the date in which MFIP-S eligibility is 
 54.23  determined and assistance is authorized.  Child support income 
 54.24  which has been budgeted to determine the assistance payment in 
 54.25  the initial two months is considered nonrecurring income.  An 
 54.26  assistance unit must forward any payment of child support to the 
 54.27  child support enforcement unit of the county agency following 
 54.28  the date in which assistance is authorized. 
 54.29     Subd. 2.  [RETROSPECTIVE BUDGETING.] The county agency must 
 54.30  use retrospective budgeting to calculate the monthly assistance 
 54.31  payment amount after the payment for the first two months has 
 54.32  been made under subdivision 1. 
 54.33     Subd. 3.  [ADDITIONAL USES OF RETROSPECTIVE 
 54.34  BUDGETING.] Notwithstanding subdivision 1, the county agency 
 54.35  must use retrospective budgeting to calculate the monthly 
 54.36  assistance payment amount for the first two months under 
 55.1   paragraphs (a) and (b). 
 55.2      (a) The county agency must use retrospective budgeting to 
 55.3   determine the amount of the assistance payment in the first two 
 55.4   months of MFIP-S eligibility: 
 55.5      (1) when an assistance unit applies for assistance for the 
 55.6   same month for which assistance has been interrupted, the 
 55.7   interruption in eligibility is less than one payment month, the 
 55.8   assistance payment for the preceding month was issued in this 
 55.9   state, and the assistance payment for the immediately preceding 
 55.10  month was determined retrospectively; or 
 55.11     (2) when a person applies in order to be added to an 
 55.12  assistance unit, that assistance unit has received assistance in 
 55.13  this state for at least the two preceding months, and that 
 55.14  person has been living with and has been financially responsible 
 55.15  for one or more members of that assistance unit for at least the 
 55.16  two preceding months. 
 55.17     (b) Except as provided in clauses (1) to (4), the county 
 55.18  agency must use retrospective budgeting and apply income 
 55.19  received in the budget month by an assistance unit and by a 
 55.20  financially responsible household member who is not included in 
 55.21  the assistance unit against the appropriate transitional or 
 55.22  family wage level standard to determine the assistance payment 
 55.23  to be issued for the payment month. 
 55.24     (1) When a source of income ends prior to the third payment 
 55.25  month, that income is not considered in calculating the 
 55.26  assistance payment for that month.  When a source of income ends 
 55.27  prior to the fourth payment month, that income is not considered 
 55.28  when determining the assistance payment for that month. 
 55.29     (2) When a member of an assistance unit or a financially 
 55.30  responsible household member leaves the household of the 
 55.31  assistance unit, the income of that departed household member is 
 55.32  not budgeted retrospectively for any full payment month in which 
 55.33  that household member does not live with that household and is 
 55.34  not included in the assistance unit. 
 55.35     (3) When an individual is removed from an assistance unit 
 55.36  because the individual is no longer a minor child, the income of 
 56.1   that individual is not budgeted retrospectively for payment 
 56.2   months in which that individual is not a member of the 
 56.3   assistance unit, except that income of an ineligible child in 
 56.4   the household must continue to be budgeted retrospectively 
 56.5   against the child's needs when the parent or parents of that 
 56.6   child request allocation of their income against any unmet needs 
 56.7   of that ineligible child. 
 56.8      (4) When a person ceases to have financial responsibility 
 56.9   for one or more members of an assistance unit, the income of 
 56.10  that person is not budgeted retrospectively for the payment 
 56.11  months which follow the month in which financial responsibility 
 56.12  ends. 
 56.13     Subd. 4.  [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 
 56.14  agency must recalculate the assistance payment when an 
 56.15  assistance unit experiences a significant change, as defined in 
 56.16  section 256J.08, resulting in a reduction in the gross income 
 56.17  received in the payment month from the gross income received in 
 56.18  the budget month.  The county agency must issue a supplemental 
 56.19  assistance payment based on the county agency's best estimate of 
 56.20  the assistance unit's income and circumstances for the payment 
 56.21  month.  Budget adjustments that result from significant changes 
 56.22  are limited to two in a 12-month period regardless of the reason 
 56.23  for the change.  Budget adjustments due to a significant change 
 56.24  in the amount of direct support received must not be made after 
 56.25  the date the assistance unit is required to forward support to 
 56.26  the child support enforcement unit under subdivision 1, 
 56.27  paragraph (d). 
 56.28     Subd. 5.  [INCOME AVERAGING FOR PARTICIPANTS PAID WEEKLY OR 
 56.29  BIWEEKLY.] For the purposes of stabilizing assistance payments, 
 56.30  the county agency may average income for participants paid 
 56.31  weekly or biweekly.  Monthly income may be computed by adding 
 56.32  income from all paychecks, dividing the sum by the number of 
 56.33  paychecks, and multiplying the results by 4.3 if paychecks are 
 56.34  weekly or 2.16 if paychecks are biweekly.  The county agency may 
 56.35  not use income averaging unless discussed with the participant 
 56.36  and requested by the participant. 
 57.1      Sec. 24.  [256J.35] [AMOUNT OF ASSISTANCE PAYMENT.] 
 57.2      Except as provided in paragraphs (a) to (c), the amount of 
 57.3   an assistance payment is equal to the difference between the 
 57.4   transitional standard or the family wage level in section 
 57.5   256J.24 and countable income. 
 57.6      (a) When MFIP-S eligibility exists for the month of 
 57.7   application, the amount of the assistance payment for the month 
 57.8   of application must be prorated from the date of application or 
 57.9   the date all other eligibility factors are met for that 
 57.10  applicant, whichever is later.  This provision applies when an 
 57.11  applicant loses at least one day of MFIP-S eligibility. 
 57.12     (b) MFIP-S overpayments to an assistance unit must be 
 57.13  recouped according to section 256J.38, subdivision 4. 
 57.14     (c) An initial assistance payment must not be made to an 
 57.15  applicant who is not eligible on the date payment is made. 
 57.16     Sec. 25.  [256J.36] [ALLOCATION FOR UNMET NEED OF OTHER 
 57.17  HOUSEHOLD MEMBERS.] 
 57.18     Except as prohibited in paragraphs (a) and (b), an 
 57.19  allocation of income is allowed to meet the unmet need of an 
 57.20  ineligible spouse or an ineligible child under the age of 21 for 
 57.21  whom the caregiver is financially responsible who also lives 
 57.22  with the caregiver.  An allocation is allowed from the 
 57.23  caregiver's income to meet the need of an ineligible or excluded 
 57.24  person.  That allocation is allowed in an amount up to the 
 57.25  difference between the MFIP-S family allowance for the 
 57.26  assistance unit when that excluded or ineligible person is 
 57.27  included in the assistance unit and the MFIP-S family allowance 
 57.28  for the assistance unit when the excluded or ineligible person 
 57.29  is not included in the assistance unit.  These allocations must 
 57.30  be deducted from the caregiver's counted earnings and from 
 57.31  unearned income subject to paragraphs (a) and (b). 
 57.32     (a) Income of a minor child in the assistance unit must not 
 57.33  be allocated to meet the need of a person who is not a member of 
 57.34  the assistance unit, including the child's parent, even when 
 57.35  that parent is the payee of the child's income. 
 57.36     (b) Income of an assistance unit must not be allocated to 
 58.1   meet the needs of a person ineligible for failure to cooperate 
 58.2   with program requirements including child support requirements, 
 58.3   a person ineligible due to fraud, or a relative caregiver and 
 58.4   his or her spouse who opt out of the assistance unit. 
 58.5      Sec. 26.  [256J.37] [TREATMENT OF INCOME AND LUMP SUMS.] 
 58.6      Subdivision 1.  [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 
 58.7   MEMBERS.] The income of ineligible household members must be 
 58.8   deemed after allowing the following disregards: 
 58.9      (1) the first 18 percent of the excluded family member's 
 58.10  gross earned income; 
 58.11     (2) amounts the ineligible person actually paid to 
 58.12  individuals not living in the same household but whom the 
 58.13  ineligible person claims as dependents for determining federal 
 58.14  personal income tax liability; 
 58.15     (3) child or spousal support paid to a person who lives 
 58.16  outside of the household; and 
 58.17     (4) an amount for the needs of other persons who live in 
 58.18  the household but are not included in the assistance unit and 
 58.19  are or could be claimed by an ineligible person as dependents 
 58.20  for determining federal personal income tax liability.  This 
 58.21  amount is equal to the difference between the MFIP-S need 
 58.22  standard when the excluded person is included in the assistance 
 58.23  unit and the MFIP-S need standard when the excluded person is 
 58.24  not included in the assistance unit. 
 58.25     Subd. 2.  [DEEMED INCOME OF SPONSOR OF NONCITIZENS.] (a) 
 58.26  All income of a sponsor, or sponsor's spouse, who executed an 
 58.27  affidavit of support for a noncitizen must be deemed to be 
 58.28  unearned income of the noncitizen as specified in the Personal 
 58.29  Responsibility and Work Opportunity Reconciliation Act of 1996 
 58.30  and subsequently set out in federal rules. 
 58.31     (b) The income of a sponsor who executed an affidavit of 
 58.32  support for a noncitizen prior to the promulgation of the 
 58.33  affidavit of support under the Personal Responsibility and Work 
 58.34  Opportunity Reconciliation Act of 1996, must be deemed to be 
 58.35  unearned income of the noncitizen after allowing the following 
 58.36  exclusions: 
 59.1      (1) 20 percent of the combined gross earned income of the 
 59.2   sponsor and the sponsor's spouse up to a maximum of $175 per 
 59.3   month; 
 59.4      (2) an amount for the needs of the sponsor, the sponsor's 
 59.5   spouse, and other individuals, living in the sponsor's home, who 
 59.6   could be claimed by the sponsor or the sponsor's spouse as 
 59.7   dependents for determining federal personal income tax 
 59.8   liability, which is equal to the MFIP-S need standard for a 
 59.9   comparable family unit; 
 59.10     (3) amounts the sponsor and the sponsor's spouse actually 
 59.11  paid to individuals not living in the same household but whom 
 59.12  the sponsor or the sponsor's spouse claim as dependents for 
 59.13  determining federal personal income tax liability; and 
 59.14     (4) child or spousal support paid to a person who lives 
 59.15  outside of the sponsor's household. 
 59.16     Subd. 3.  [EARNED INCOME OF WAGE, SALARY, AND CONTRACTUAL 
 59.17  EMPLOYEES.] The county agency must include gross earned income 
 59.18  less any disregards in the initial and monthly income test.  
 59.19  Gross earned income received by persons employed on a 
 59.20  contractual basis must be prorated over the period covered by 
 59.21  the contract even when payments are received over a lesser 
 59.22  period of time. 
 59.23     Subd. 4.  [SELF-EMPLOYMENT.] Self-employed individuals are 
 59.24  those who are responsible for their own work schedule and do not 
 59.25  have coverage under an employer's liability insurance or 
 59.26  workers' compensation.  Self-employed individuals generally work 
 59.27  for themselves rather than an employer.  However, individuals 
 59.28  employed in some types of services may be self-employed even if 
 59.29  they have an employer or work out of another's business 
 59.30  location.  For example, real estate sales people, individuals 
 59.31  who work for commission sales, manufacturer's representatives, 
 59.32  and independent contractors may be self-employed.  Self-employed 
 59.33  individuals may or may not have FICA deducted from the check 
 59.34  issued to them by an employer or another party. 
 59.35     Self-employed individuals may own a business singularly or 
 59.36  in partnership.  Individuals operating more than one 
 60.1   self-employment business may use the loss from one business to 
 60.2   offset self-employment income from another business.  A loss 
 60.3   from a self-employment business may not offset income earned 
 60.4   under subdivision 3. 
 60.5      Subd. 5.  [SELF-EMPLOYMENT EARNINGS.] The county agency 
 60.6   must determine self-employment income according to the following:
 60.7      (a) Subtract allowable business expenses from total gross 
 60.8   receipts.  Allowable business expenses include: 
 60.9      (1) interest on mortgages and loans; 
 60.10     (2) employee wages, except for persons who are part of the 
 60.11  assistance unit or whose income is deemed to the participant; 
 60.12     (3) FICA funds paid on employees' wages, payment of 
 60.13  employee workers' compensation, and reemployment insurance; 
 60.14     (4) livestock and veterinary or breeding fees; 
 60.15     (5) raw material; 
 60.16     (6) seed and fertilizer; 
 60.17     (7) maintenance and repairs that are not capital 
 60.18  expenditures; 
 60.19     (8) tax return preparation fees; 
 60.20     (9) license fees, professional fees, franchise fees, and 
 60.21  professional dues; 
 60.22     (10) tools and supplies that are not capital expenditures; 
 60.23     (11) fuel and transportation expenses other than fuel costs 
 60.24  covered by the flat rate transportation deduction; 
 60.25     (12) advertising costs; 
 60.26     (13) meals eaten when required to be away from the local 
 60.27  work site; 
 60.28     (14) property expenses such as rent, insurance, taxes, and 
 60.29  utilities; 
 60.30     (15) postage; 
 60.31     (16) purchase cost of inventory at time of sale; 
 60.32     (17) loss from another self-employment business; 
 60.33     (18) attorney fees allowed by the Internal Revenue Service; 
 60.34  and 
 60.35     (19) tuition for classes necessary to maintain or improve 
 60.36  job skills or required by law to maintain job status or salary 
 61.1   as allowed by the Internal Revenue Service. 
 61.2      (b) The county agency shall not allow a deduction for the 
 61.3   following expenses: 
 61.4      (1) purchases of capital assets; 
 61.5      (2) payments on the principals of loans for capital assets; 
 61.6      (3) depreciation; 
 61.7      (4) amortization; 
 61.8      (5) the wholesale costs of items purchased, processed, or 
 61.9   manufactured which are unsold inventory; 
 61.10     (6) transportation costs that exceed the maximum standard 
 61.11  mileage rate allowed for use of a personal car in the Internal 
 61.12  Revenue Code; 
 61.13     (7) costs, in any amount, for mileage between an 
 61.14  applicant's or participant's home and place of employment; 
 61.15     (8) salaries and other employment deductions made for 
 61.16  members of an assistance unit or persons who live in the 
 61.17  household for whom an employer is legally responsible; 
 61.18     (9) monthly expenses in excess of $71 for each roomer; 
 61.19     (10) monthly expenses in excess of the Thrifty Food Plan 
 61.20  amount for one person for each boarder.  For purposes of this 
 61.21  clause and clause (11), "Thrifty Food Plan" has the meaning 
 61.22  given it in Code of Federal Regulations; 
 61.23     (11) monthly expenses in excess of the roomer rate plus the 
 61.24  Thrifty Food Plan amount for one person for each 
 61.25  roomer-boarder.  If there is more than one boarder or 
 61.26  roomer-boarder, use the total number of boarders as the unit 
 61.27  size to determine the Thrifty Food Plan amount; 
 61.28     (12) an amount greater than actual expenses or two percent 
 61.29  of the estimated market value on a county tax assessment form, 
 61.30  whichever is greater, as a deduction for upkeep and repair 
 61.31  against rental income; 
 61.32     (13) expenses not allowed by the Internal Revenue Code; 
 61.33     (14) expenses in excess of 60 percent of gross receipts for 
 61.34  in-home child care unless a higher amount can be documented; and 
 61.35     (15) expenses that are reimbursed under the child and adult 
 61.36  care food program as authorized under the National School Lunch 
 62.1   Act, United States Code, title 42. 
 62.2      Subd. 6.  [SELF-EMPLOYMENT BUDGET PERIOD.] The 
 62.3   self-employment budget period begins in the month of application 
 62.4   or in the first month of self-employment.  Gross receipts must 
 62.5   be budgeted in the month received.  Expenses must be budgeted 
 62.6   against gross receipts in the month the expenses are paid, 
 62.7   except for paragraphs (a) to (c). 
 62.8      (a) The purchase cost of inventory items, including 
 62.9   materials which are processed or manufactured, must be deducted 
 62.10  as an expense at the time payment is received for the sale of 
 62.11  the inventory items. 
 62.12     (b) A 12-month rolling average based on clauses (1) to (3) 
 62.13  must be used to budget monthly income. 
 62.14     (1) For a business in operation for at least 12 months, the 
 62.15  county agency shall use the average monthly self-employment 
 62.16  income from the most current income tax report for the 12 months 
 62.17  before the month of application.  The county agency shall 
 62.18  determine a new monthly average by adding in the actual 
 62.19  self-employment income and expenses from the previous month and 
 62.20  dropping the first month from the averaging period. 
 62.21     (2) For a business in operation for less than 12 months, 
 62.22  the county agency shall compute the average for the number of 
 62.23  months the business has been in operation to determine a monthly 
 62.24  average.  When data are available for 12 or more months, average 
 62.25  monthly self-employment income is determined under clause (1). 
 62.26     (3) If the business undergoes a major change, the county 
 62.27  agency shall compute a new rolling average beginning with the 
 62.28  first month of the major change.  For the purpose of this 
 62.29  clause, major change means a change that affects the nature and 
 62.30  scale of the business and is not merely the result of normal 
 62.31  business fluctuations. 
 62.32     (c) For seasonal self-employment, the caregiver may choose 
 62.33  whether to use actual income in the month of receipt and 
 62.34  expenses in the month incurred or the rolling average method of 
 62.35  computation.  The choice must be made once per year at the time 
 62.36  of application or recertification.  For the purpose of this 
 63.1   paragraph, seasonal means working six or less months per year. 
 63.2      Subd. 7.  [FARM INCOME.] Farm income is the difference 
 63.3   between gross receipts and operating expenses.  The county 
 63.4   agency must not allow a deduction for expenses listed in 
 63.5   subdivision 5, paragraph (b).  Gross receipts include sales, 
 63.6   rents, subsidies, soil conservation payments, production derived 
 63.7   from livestock, and income from home-produced food.  
 63.8      Subd. 8.  [RENTAL INCOME.] The county agency must treat 
 63.9   income from rental property as earned or unearned income.  
 63.10  Income from rental property is unearned income unless the 
 63.11  assistance unit spends an average of ten hours per week on 
 63.12  maintenance or management of the property.  When the owner 
 63.13  spends more than ten hours per week on maintenance or repairs, 
 63.14  the earnings are considered self-employment earnings.  An amount 
 63.15  must be deducted for upkeep and repairs, as specified in 
 63.16  subdivision 5, paragraph (b), clause (12), real estate taxes, 
 63.17  insurance, utilities, and interest on principal payments.  When 
 63.18  the applicant or participant lives on the rental property, 
 63.19  expenses for upkeep, taxes, insurance, utilities, and interest 
 63.20  must be divided by the number of rooms to determine expense per 
 63.21  room and expenses deducted must be deducted only for the number 
 63.22  of rooms rented. 
 63.23     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
 63.24  apply unearned income, including housing subsidies as in 
 63.25  paragraph (b), to the transitional standard.  When determining 
 63.26  the amount of unearned income, the county agency must deduct the 
 63.27  costs necessary to secure payments of unearned income.  These 
 63.28  costs include legal fees, medical fees, and mandatory deductions 
 63.29  such as federal and state income taxes. 
 63.30     (b) Effective July 1, 1998, the county agency shall count 
 63.31  $100 of the value of public and assisted rental subsidies 
 63.32  provided through the Department of Housing and Urban Development 
 63.33  (HUD) as unearned income.  The full amount of the subsidy must 
 63.34  be counted as unearned income when the subsidy is less than $100.
 63.35     Subd. 10.  [TREATMENT OF LUMP SUMS.] The county agency must 
 63.36  treat lump-sum payments as earned or unearned income.  If the 
 64.1   lump-sum payment is included in the category of income 
 64.2   identified in subdivision 9, it must be treated as unearned 
 64.3   income.  A lump sum is counted as income in the month received 
 64.4   and budgeted either prospectively or retrospectively depending 
 64.5   on the budget cycle at the time of receipt.  When an individual 
 64.6   receives a lump-sum payment, that lump sum must be combined with 
 64.7   all other earned and unearned income received in the same budget 
 64.8   month, and it must be applied according to paragraphs (a) to (c).
 64.9   There is no carryover into subsequent months.  Any funds that 
 64.10  remain in the third month after the month of receipt are counted 
 64.11  in the asset limit. 
 64.12     (a) For a lump sum received by an applicant during the 
 64.13  first two months, prospective budgeting is used to determine the 
 64.14  payment and the lump sum must be combined with other earned or 
 64.15  unearned income received and budgeted in that prospective month. 
 64.16     (b) For a lump sum received by a participant after the 
 64.17  first two months of MFIP-S eligibility, the lump sum must be 
 64.18  combined with other income received in that budget month, and 
 64.19  the combined amount must be applied retrospectively against the 
 64.20  applicable payment month. 
 64.21     (c) When a lump sum, combined with other income under 
 64.22  paragraphs (a) and (b), is less than the transitional standard 
 64.23  for the applicable payment month, the assistance payment is 
 64.24  reduced according to the amount of the countable income.  When 
 64.25  the countable income is greater than the transitional standard 
 64.26  or the family wage standard, the assistance payment is suspended 
 64.27  for the payment month. 
 64.28     Sec. 27.  [256J.38] [CORRECTION OF OVERPAYMENTS AND 
 64.29  UNDERPAYMENTS.] 
 64.30     Subdivision 1.  [SCOPE OF OVERPAYMENT.] When a participant 
 64.31  or former participant receives an overpayment due to agency, 
 64.32  client, or ATM error, or due to assistance received while an 
 64.33  appeal is pending and the participant or former participant is 
 64.34  determined ineligible for assistance or for less assistance than 
 64.35  was received, the county agency must recoup or recover the 
 64.36  overpayment under the conditions of this section. 
 65.1      Subd. 2.  [NOTICE OF OVERPAYMENT.] When a county agency 
 65.2   discovers that a participant or former participant has received 
 65.3   an overpayment for one or more months, the county agency must 
 65.4   notify the participant or former participant of the overpayment 
 65.5   in writing.  A notice of overpayment must specify the reason for 
 65.6   the overpayment, the authority for citing the overpayment, the 
 65.7   time period in which the overpayment occurred, the amount of the 
 65.8   overpayment, and the participant's or former participant's right 
 65.9   to appeal.  No limit applies to the period in which the county 
 65.10  agency is required to recoup or recover an overpayment according 
 65.11  to subdivisions 3 and 4. 
 65.12     Subd. 3.  [RECOVERING OVERPAYMENTS FROM FORMER 
 65.13  PARTICIPANTS.] A county agency must initiate efforts to recover 
 65.14  overpayments paid to a former participant.  Adults and minor 
 65.15  caregivers of an assistance unit at the time an overpayment 
 65.16  occurs, whether receiving assistance or not, are jointly and 
 65.17  individually liable for repayment of the overpayment.  The 
 65.18  county agency must request repayment from the former 
 65.19  participants.  When an agreement for repayment is not completed 
 65.20  within six months of the date of discovery or when there is a 
 65.21  default on an agreement for repayment after six months, the 
 65.22  county agency must initiate recovery consistent with chapter 
 65.23  270A, or section 541.05.  When a person has been convicted of 
 65.24  fraud under section 256.98, recovery must be sought regardless 
 65.25  of the amount of overpayment.  When an overpayment is less than 
 65.26  $35, and is not the result of a fraud conviction under section 
 65.27  256.98, the county agency must not seek recovery under this 
 65.28  subdivision.  The county agency must retain information about 
 65.29  all overpayments regardless of the amount.  When an adult or 
 65.30  minor caregiver reapplies for assistance, the overpayment must 
 65.31  be recouped under subdivision 4. 
 65.32     Subd. 4.  [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 
 65.33  participant may voluntarily repay, in part or in full, an 
 65.34  overpayment even if assistance is reduced under this 
 65.35  subdivision, until the total amount of the overpayment is 
 65.36  repaid.  When an overpayment occurs due to fraud, the county 
 66.1   agency must recover ten percent of the transitional standard or 
 66.2   the amount of the monthly assistance payment, whichever is 
 66.3   less.  When a nonfraud overpayment occurs, the county agency 
 66.4   must recover ten percent of the transitional standard or the 
 66.5   amount of the monthly assistance payment, whichever is less.  
 66.6      Subd. 5.  [RECOVERING AUTOMATIC TELLER MACHINE ERRORS.] For 
 66.7   recipients receiving benefits via electronic benefit transfer, 
 66.8   if the overpayment is a result of an ATM dispensing funds in 
 66.9   error to the recipient, the agency may recover the ATM error by 
 66.10  immediately withdrawing funds from the recipient's electronic 
 66.11  benefit transfer account, up to the amount of the error. 
 66.12     Subd. 6.  [SCOPE OF UNDERPAYMENTS.] A county agency must 
 66.13  issue a corrective payment for underpayments made to a 
 66.14  participant or to a person who would be a participant if an 
 66.15  agency or client error causing the underpayment had not occurred.
 66.16  The county agency must issue the corrective payment according to 
 66.17  subdivision 8. 
 66.18     Subd. 7.  [IDENTIFYING THE UNDERPAYMENT.] An underpayment 
 66.19  may be identified by a county agency, by a participant, by a 
 66.20  former participant, or by a person who would be a participant 
 66.21  except for agency or client error. 
 66.22     Subd. 8.  [ISSUING CORRECTIVE PAYMENTS.] A county agency 
 66.23  must correct an underpayment within seven calendar days after 
 66.24  the underpayment has been identified, by adding the corrective 
 66.25  payment amount to the monthly assistance payment of the 
 66.26  participant or by issuing a separate payment to a participant or 
 66.27  former participant, or by reducing an existing overpayment 
 66.28  balance.  When an underpayment occurs in a payment month and is 
 66.29  not identified until the next payment month or later, the county 
 66.30  agency must first subtract the underpayment from any overpayment 
 66.31  balance before issuing the corrective payment.  The county 
 66.32  agency must not apply an underpayment in a current payment month 
 66.33  against an overpayment balance.  When an underpayment in the 
 66.34  current payment month is identified, the corrective payment must 
 66.35  be issued within seven calendar days after the underpayment is 
 66.36  identified. 
 67.1      Subd. 9.  [APPEALS.] A participant may appeal an 
 67.2   underpayment, an overpayment, and a reduction in an assistance 
 67.3   payment made to recoup the overpayment under subdivision 4.  The 
 67.4   participant's appeal of each issue must be timely under section 
 67.5   256.045.  When an appeal based on the notice issued under 
 67.6   subdivision 2 is not timely, the fact or the amount of that 
 67.7   overpayment must not be considered as a part of a later appeal, 
 67.8   including an appeal of a reduction in an assistance payment to 
 67.9   recoup that overpayment. 
 67.10     Sec. 28.  [256J.39] [PAYMENT PROVISIONS; VENDOR PAYMENTS.] 
 67.11     Subdivision 1.  [PAYMENT POLICY.] The following policies 
 67.12  apply to monthly assistance payments and corrective payments: 
 67.13     (a) Grant payments may be issued in the form of warrants 
 67.14  immediately redeemable in cash, electronic benefits transfer, or 
 67.15  by direct deposit into the recipient's account in a financial 
 67.16  institution. 
 67.17     (b) The commissioner shall mail assistance payment checks 
 67.18  to the address where a caregiver lives unless the county agency 
 67.19  approves an alternate arrangement. 
 67.20     (c) The commissioner shall mail monthly assistance payment 
 67.21  checks within time to allow postal service delivery to occur no 
 67.22  later than the first day of each month.  Monthly assistance 
 67.23  payment checks must be dated the first day of the month.  
 67.24     (d) The commissioner shall issue replacement checks 
 67.25  promptly, but no later than seven calendar days after the 
 67.26  provisions of sections 16A.46; 256.01, subdivision 11; and 
 67.27  471.415 have been met. 
 67.28     Subd. 2.  [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 
 67.29  paying assistance directly to a participant may be used when a: 
 67.30     (1) county agency determines that a vendor payment is the 
 67.31  most effective way to resolve an emergency situation pertaining 
 67.32  to basic needs; 
 67.33     (2) caregiver makes a written request to the county agency 
 67.34  asking that part or all of the assistance payment be issued by 
 67.35  protective or vendor payments for shelter and utility service 
 67.36  only.  The caregiver may withdraw this request in writing at any 
 68.1   time; 
 68.2      (3) caregiver has exhibited a continuing pattern of 
 68.3   mismanaging funds as determined by the county agency; or 
 68.4      (4) the vendor payment is part of a sanction under section 
 68.5   256J.46, subdivision 2. 
 68.6      The director of a county agency must approve a proposal for 
 68.7   protective or vendor payment for money mismanagement.  During 
 68.8   the time a protective or vendor payment is being made, the 
 68.9   county agency must provide services designed to alleviate the 
 68.10  causes of the mismanagement. 
 68.11     The continuing need for and method of payment must be 
 68.12  documented and reviewed every 12 months.  The director of a 
 68.13  county agency must approve the continuation of protective or 
 68.14  vendor payments. 
 68.15     When it appears that the need for protective or vendor 
 68.16  payments will continue or is likely to continue beyond two years 
 68.17  because the county agency's efforts have not resulted in 
 68.18  sufficiently improved use of assistance on behalf of the minor 
 68.19  child, judicial appointment of a legal guardian or other legal 
 68.20  representative must be sought by the county agency.  
 68.21     Subd. 3.  [CHOOSING PAYEES FOR PROTECTIVE OR VENDOR 
 68.22  PAYMENTS.] A county agency shall consult with a caregiver 
 68.23  regarding the selection of the form of payment, the selection of 
 68.24  a protective payee, and the distribution of the assistance 
 68.25  payment to meet the various costs incurred by the assistance 
 68.26  unit.  When choosing a protective payee, the county agency shall 
 68.27  notify the caregiver of a consultation date.  If the caregiver 
 68.28  fails to respond to the county agency's request for consultation 
 68.29  by the effective date on the notice, the county agency must 
 68.30  choose a protective payee for that payment month and subsequent 
 68.31  payment months until the caregiver responds to the agency's 
 68.32  request for consultation.  The county agency must notify the 
 68.33  caregiver of the right to appeal the determination that a 
 68.34  protective or vendor payment should be made or continued and to 
 68.35  appeal the selection of the payee.  If a county agency is not 
 68.36  able to find another protective payee, a county agency staff 
 69.1   member may serve as a protective payee.  The following persons 
 69.2   may not serve as protective payees:  a member of the county 
 69.3   board of commissioners; the county agency staff member 
 69.4   determining financial eligibility for the family; special 
 69.5   investigative or resource staff; the staff member handling 
 69.6   accounting or fiscal processes related to the participant; or a 
 69.7   landlord, grocer, or other vendor dealing directly with the 
 69.8   participant. 
 69.9      Subd. 4.  [DISCONTINUING PROTECTIVE OR VENDOR PAYMENTS.] A 
 69.10  county agency shall discontinue protective or vendor payments in 
 69.11  two years or in the month following the county agency's failure 
 69.12  to grant six-month approval to a money management plan, 
 69.13  whichever occurs first.  At least once every 12 months, a county 
 69.14  agency shall review the performance of a protective payee acting 
 69.15  under subdivision 2, clause (3), to determine whether a new 
 69.16  payee should be selected.  When a participant complains about 
 69.17  the performance of a protective payee, a review shall occur 
 69.18  within 30 calendar days. 
 69.19     Subd. 5.  [VENDOR PAYMENTS FOR DRUG OFFENDERS.] (a) If an 
 69.20  applicant has been convicted of a drug offense, the assistance 
 69.21  must be issued through vendor payments as provided in paragraph 
 69.22  (c) until: 
 69.23     (1) the recipient has completed terms of the court-ordered 
 69.24  sentence; 
 69.25     (2) the recipient has successfully completed a drug 
 69.26  treatment program when appropriate; and 
 69.27     (3) the county agency has made a determination that the 
 69.28  recipient can successfully manage the recipient's funds. 
 69.29     This subdivision also applies to persons who receive food 
 69.30  stamps under section 115 of the Personal Responsibility and Work 
 69.31  Opportunity Reconciliation Act of 1996. 
 69.32     (b) For the purposes of this subdivision, "drug offense" 
 69.33  means a conviction that occurred after July 1, 1997, of sections 
 69.34  152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
 69.35  means a conviction in another jurisdiction of the possession, 
 69.36  use, or distribution of a controlled substance, or conspiracy to 
 70.1   commit any of these offenses, if the conviction occurred after 
 70.2   July 1, 1997, and the conviction is a felony offense in that 
 70.3   jurisdiction. 
 70.4      (c) The county agency shall consult with the caregiver 
 70.5   regarding the identity of vendors for shelter and utility 
 70.6   payments under this subdivision.  Any balance of the MFIP-S 
 70.7   grant remaining after issuing vendor payments for shelter and 
 70.8   utility needs shall be issued to the caregiver.  If the 
 70.9   caregiver exhibits a pattern of mismanaging funds, the balance 
 70.10  of the MFIP-S grant may be issued under the policy prescribed in 
 70.11  subdivisions 2 to 4. 
 70.12     Sec. 29.  [256J.395] [SUPPORT FROM PARENTS OF MINOR 
 70.13  CAREGIVERS LIVING APART.] 
 70.14     Subdivision 1.  [GENERAL PROVISIONS.] A minor caregiver and 
 70.15  the minor's dependent child living outside of the home of the 
 70.16  adult parent must meet the criteria in section 256J.14, to be 
 70.17  eligible for assistance in the MFIP-S program.  A parent who 
 70.18  lives outside the home of a minor child who is an unemancipated 
 70.19  minor caregiver of an assistance unit is financially responsible 
 70.20  for that minor caregiver unless the parent is a recipient of 
 70.21  public assistance, SSI, MSA, medical assistance, general 
 70.22  assistance, or general assistance medical care, and a court 
 70.23  order does not otherwise provide a support obligation. 
 70.24     Subd. 2.  [AMOUNT OF SUPPORT PAYMENT.] The amount of 
 70.25  support to be paid by a parent, except a parent specified in 
 70.26  subdivision 4, must be determined according to paragraphs (a) to 
 70.27  (f). 
 70.28     (a) A minor caregiver must provide information required by 
 70.29  the county agency to identify the whereabouts of the minor 
 70.30  caregiver's absent parent or parents. 
 70.31     (b) A county agency must notify an absent parent of the 
 70.32  parent's legal responsibility to support a minor caregiver and 
 70.33  shall request that the absent parent provide the following: 
 70.34     (1) the amount of the parent's earned and unearned income 
 70.35  for the previous tax year; 
 70.36     (2) the amount of the parent's earned and unearned income 
 71.1   for the current month; 
 71.2      (3) the number and names of dependents who are claimed or 
 71.3   could be claimed by the parent on federal income tax forms; 
 71.4      (4) the amount of annual medical bills paid by the parent; 
 71.5      (5) the amount of annual housing costs paid by the parent; 
 71.6      (6) the costs for utilities and repairs to the home which 
 71.7   are paid by the parent; and 
 71.8      (7) the amount of annual educational costs for family 
 71.9   members paid by the parent. 
 71.10     (c) When a parent of a minor caregiver does not provide the 
 71.11  information requested under paragraph (b), the county agency 
 71.12  must refer the matter to the county attorney.  Assistance to the 
 71.13  minor caregiver must not be denied, delayed, reduced, or ended 
 71.14  because of the lack of cooperation of the minor caregiver's 
 71.15  parent. 
 71.16     (d) When the information requested under paragraph (b) is 
 71.17  received by a county agency, the county agency must compare the 
 71.18  parent's income against the scale set forth below using the 
 71.19  conditions and procedures specified in paragraph (e). 
 71.20            Size of Family            Federal Poverty Guideline
 71.21                  1                          $ 9,288
 71.22                  2                           12,432
 71.23                  3                           15,576
 71.24                  4                           18,720
 71.25                  5                           21,864
 71.26  For each additional family member add $3,144. 
 71.27     (e) The parent's income is the parent's gross earned income 
 71.28  plus unearned income, determined by the methods in section 
 71.29  256J.21.  To determine family size, each person claimed or who 
 71.30  could be claimed by a parent as a dependent on federal income 
 71.31  tax forms, exclusive of the minor caregiver, must be included.  
 71.32  A deduction from income must be allowed for the amount that 
 71.33  medical, educational, and housing costs together exceed 30 
 71.34  percent of the parent's income.  When the amount of income, 
 71.35  after the allowable deduction, exceeds the annual income level 
 71.36  in paragraph (d), a parent is liable to pay one-third of the 
 72.1   excess for the annual support of the minor caregiver.  These 
 72.2   payments must be paid monthly to the minor caregiver or to the 
 72.3   county agency on behalf of the minor caregiver. 
 72.4      (f) A county agency must notify the parents of the minor 
 72.5   caregiver that they are liable for the amount of support 
 72.6   determined by the county agency as specified in paragraph (e).  
 72.7   When the support payment is received by the minor caregiver, it 
 72.8   must be treated as unearned income of the assistance unit.  When 
 72.9   the support payment is not received, or a lesser amount is 
 72.10  received in any payment month, the county agency must refer the 
 72.11  matter to the county attorney. 
 72.12     Subd. 3.  [REVIEWS.] A county agency must review financial 
 72.13  responsibility every 12 months until minor caregivers reach the 
 72.14  age of 18 or are otherwise emancipated.  When a parent reports a 
 72.15  change in circumstances, the county agency must review the 
 72.16  required amount of payment within ten calendar days. 
 72.17     Subd. 4.  [PARENTS UNDER COURT ORDER FOR SUPPORT.] A parent 
 72.18  who is required under an existing court order issued under some 
 72.19  other authority in state or federal law to pay child support for 
 72.20  a minor caregiver is subject to the conditions of that order in 
 72.21  lieu of the requirements and contribution levels in subdivision 
 72.22  2. 
 72.23     Sec. 30.  [256J.40] [FAIR HEARINGS.] 
 72.24     Caregivers receiving a notice of intent to sanction or a 
 72.25  notice of adverse action that includes a sanction, reduction in 
 72.26  benefits, suspension of benefits, denial of benefits, or 
 72.27  termination of benefits may request a fair hearing.  A request 
 72.28  for a fair hearing must be submitted in writing to the county 
 72.29  agency or to the commissioner and must be mailed within 30 days 
 72.30  after a participant or former participant receives written 
 72.31  notice of the agency's action or within 90 days when a 
 72.32  participant or former participant shows good cause for not 
 72.33  submitting the request within 30 days.  A former participant who 
 72.34  receives a notice of adverse action due to an overpayment may 
 72.35  appeal the adverse action according to the requirements in this 
 72.36  section.  Issues that may be appealed are: 
 73.1      (1) the amount of the assistance payment; 
 73.2      (2) a suspension, reduction, denial, or termination of 
 73.3   assistance; 
 73.4      (3) the basis for an overpayment, the calculated amount of 
 73.5   an overpayment, and the level of recoupment; 
 73.6      (4) the eligibility for an assistance payment; and 
 73.7      (5) the use of protective or vendor payments under section 
 73.8   256J.39, subdivision 2, clauses (1) to (3). 
 73.9      A county agency must not reduce, suspend, or terminate 
 73.10  payment when an aggrieved participant requests a fair hearing 
 73.11  prior to the effective date of the adverse action or within ten 
 73.12  days of the mailing of the notice of adverse action, whichever 
 73.13  is later, unless the participant requests in writing not to 
 73.14  receive continued assistance pending a hearing decision.  
 73.15  Assistance issued pending a fair hearing is subject to recovery 
 73.16  under section 256J.38 when as a result of the fair hearing 
 73.17  decision the participant is determined ineligible for assistance 
 73.18  or the amount of the assistance received.  A county agency may 
 73.19  increase or reduce an assistance payment while an appeal is 
 73.20  pending when the circumstances of the participant change and are 
 73.21  not related to the issue on appeal.  The commissioner's order is 
 73.22  binding on a county agency.  No additional notice is required to 
 73.23  enforce the commissioner's order. 
 73.24     A county agency shall reimburse appellants for reasonable 
 73.25  and necessary expenses of attendance at the hearing, such as 
 73.26  child care and transportation costs and for the transportation 
 73.27  expenses of the appellant's witnesses and representatives to and 
 73.28  from the hearing.  Reasonable and necessary expenses do not 
 73.29  include legal fees.  Fair hearings must be conducted at a 
 73.30  reasonable time and date by an impartial referee employed by the 
 73.31  department.  The hearing may be conducted by telephone or at a 
 73.32  site that is readily accessible to persons with disabilities. 
 73.33     The appellant may introduce new or additional evidence 
 73.34  relevant to the issues on appeal.  Recommendations of the 
 73.35  appeals referee and decisions of the commissioner must be based 
 73.36  on evidence in the hearing record and are not limited to a 
 74.1   review of the county agency action.  
 74.2      Sec. 31.  [256J.42] [60-MONTH TIME LIMIT.] 
 74.3      Subdivision 1.  [TIME LIMIT.] (a) An assistance unit in 
 74.4   which any adult caregiver has received 60 months of cash 
 74.5   assistance funded in whole or in part by the TANF block grant is 
 74.6   ineligible to receive MFIP-S.  Any cash assistance funded with 
 74.7   TANF dollars that was received by the unit, including any 
 74.8   assistance received in states of prior residence, counts toward 
 74.9   the 60-month limitation.  The 60-month limit applies to a minor 
 74.10  who is the head of a household or who is married to the head of 
 74.11  a household, when the minor and the head of household live 
 74.12  together.  The 60-month time period does not need to be 
 74.13  consecutive months for this provision to apply.  
 74.14     (b) The time limit does not apply to individuals in the 
 74.15  MFIP control groups under sections 256.031 and 256.047 until 
 74.16  March 31, 1998. 
 74.17     Subd. 2.  [ASSISTANCE FROM ANOTHER STATE.] An individual 
 74.18  whose needs have been otherwise provided for in another state, 
 74.19  in whole or in part by the TANF block grant during a month, is 
 74.20  ineligible to receive MFIP-S for the month. 
 74.21     Subd. 3.  [ADULTS LIVING ON AN INDIAN RESERVATION.] In 
 74.22  determining the number of months for which an adult has received 
 74.23  assistance under MFIP-S, disregard any month during which the 
 74.24  adult lived on an Indian reservation if, during the month:  
 74.25     (1) at least 1,000 individuals were living on the 
 74.26  reservation; and 
 74.27     (2) at least 50 percent of the adults living on the 
 74.28  reservation were unemployed. 
 74.29     Subd. 4.  [VICTIMS OF DOMESTIC VIOLENCE.] Any cash 
 74.30  assistance received by an assistance unit in a month when a 
 74.31  caregiver is complying with a safety plan under the MFIP-S 
 74.32  employment and training component does not count toward the 
 74.33  60-month limitation on assistance. 
 74.34     Subd. 5.  [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 
 74.35  assistance received by an assistance unit does not count toward 
 74.36  the 60-month limit on assistance during a month in which the 
 75.1   parental caregiver falls under one of the categories in section 
 75.2   256J.56, clauses (1) to (4) or (7).  The exemption applies for 
 75.3   the period of time the caregiver belongs to one of the 
 75.4   categories specified in this subdivision. 
 75.5      (b) Any cash assistance received by a caregiver who is 
 75.6   complying with the requirements of sections 256J.14 and 256J.54, 
 75.7   if applicable, does not count towards the 60-month limit on 
 75.8   assistance. 
 75.9      Subd. 6.  [WORKING FAMILIES.] For any month in which 
 75.10  section 256J.43 does not apply and in which the assistance 
 75.11  payment to a family is based on the caregiver's receipt of 
 75.12  earned income from unsubsidized employment for the required 
 75.13  number of average hours per week as specified in this 
 75.14  subdivision, that month does not count toward the assistance 
 75.15  unit's 60-month lifetime limit under this section.  The 
 75.16  exception to the 60-month lifetime limit is available for up to 
 75.17  18 months.  However, for a caregiver who is participating in an 
 75.18  approved education or training program under section 256J.53 in 
 75.19  addition to working the required hours under this section, the 
 75.20  caregiver is exempt from the 60-month lifetime limit for up to 
 75.21  24 months. 
 75.22     In a two-parent family, one parent must work at least 35 
 75.23  hours per week, and the other parent must work at least 20 hours 
 75.24  per week.  In a single-parent family, the caregiver must work at 
 75.25  least 30 hours per week, unless the caregiver has a child under 
 75.26  the age of one year, then the caregiver must work at least 20 
 75.27  hours per week. 
 75.28     Sec. 32.  [256J.43] [INTERSTATE PAYMENT STANDARDS.] 
 75.29     (a) Effective July 1, 1997, the amount of assistance paid 
 75.30  to an eligible family in which all members have resided in this 
 75.31  state for less than 12 calendar months shall be the lesser of 
 75.32  either the payment standard that would have been received by the 
 75.33  family from the state of immediate prior residence, or the 
 75.34  amount calculated in accordance with MFIP-S.  The lesser payment 
 75.35  must continue until the family meets the 12-month requirement.  
 75.36  Payment must be calculated by applying this state's budgeting 
 76.1   policies, and the unit's net income must be deducted from the 
 76.2   payment standard in the other state or in this state, whichever 
 76.3   is lower.  Payments under this paragraph shall be vendor paid 
 76.4   for rent and utilities, with the remainder, if any, paid to the 
 76.5   unit. 
 76.6      (b) During the first 12 months a family resides in this 
 76.7   state, the number of months that a family is eligible to receive 
 76.8   MFIP-S benefits is limited to the number of months the family 
 76.9   would have been eligible to receive similar benefits in the 
 76.10  state of immediate prior residence. 
 76.11     (c) This policy applies whether or not the family received 
 76.12  similar benefits while residing in the state of previous 
 76.13  residence. 
 76.14     (d) When a family moves to this state from another state 
 76.15  where the family has exhausted that state's time limit for 
 76.16  receiving benefits under that state's TANF program, the family 
 76.17  will not be eligible to receive any MFIP-S benefits in this 
 76.18  state for 12 months from the date the family moves here. 
 76.19     (e) For the purposes of this section, "state of immediate 
 76.20  prior residence" means: 
 76.21     (1) the state in which the applicant declares the applicant 
 76.22  spent the most time in the 30 days prior to moving to this 
 76.23  state; or 
 76.24     (2) the applicant is in the migrant work stream and the 
 76.25  applicant maintains a home in another state. 
 76.26     (f) The commissioner shall verify and update all other 
 76.27  states' payment standards annually to be effective in July of 
 76.28  each year. 
 76.29     (g) Any individual to whom this section applies who was a 
 76.30  recipient of TANF benefits in the state of immediate previous 
 76.31  residence and was under sanction in that state for failure to 
 76.32  comply with work activities is required to comply with 
 76.33  employment and training activities as determined by the county 
 76.34  agency, as a condition of eligibility. 
 76.35     Sec. 33.  [256J.44] [INITIAL SCREENING OF MFIP-S 
 76.36  APPLICANT.] 
 77.1      Subdivision 1.  [SCREENING.] The county agency, or at 
 77.2   county option, the county's employment and training service 
 77.3   provider, must screen each applicant to determine immediate 
 77.4   needs and to determine if the applicant may be eligible for: 
 77.5      (1) another program that is not partially funded through 
 77.6   the federal temporary assistance to needy families block grant 
 77.7   under title I of Public Law 104-193.  If the applicant may be 
 77.8   eligible for another program, a county caseworker must provide 
 77.9   the appropriate referral to the program; 
 77.10     (2) the diversionary assistance program under section 
 77.11  256J.47; 
 77.12     (3) the emergency assistance program under section 256J.48; 
 77.13  or 
 77.14     (4) expedited issuance of food stamp assistance under 
 77.15  section 256J.28, subdivision 1. 
 77.16     The applicant is required to attend the screening.  If the 
 77.17  applicant is not diverted from applying for MFIP-S under clauses 
 77.18  (1) to (3), and if the applicant meets the MFIP-S eligibility 
 77.19  requirements, then an orientation under section 256J.51 and an 
 77.20  initial assessment under section 256J.52 must be completed or, 
 77.21  in the case of caregivers who are under the age of 20, a plan 
 77.22  under section 256J.54 must be completed. 
 77.23     Subd. 2.  [SUPPORT SERVICES TO ATTEND SCREENING AND 
 77.24  ORIENTATION.] Upon a caregiver's request, the county agency must 
 77.25  arrange for transportation and child care or reimburse 
 77.26  caregivers for transportation and child care expenses necessary 
 77.27  to enable caregivers to attend the initial screening under this 
 77.28  section and orientation under section 256J.51 if scheduled on a 
 77.29  day other than when the caregiver makes application for 
 77.30  assistance. 
 77.31     Sec. 34.  [256J.46] [SANCTIONS.] 
 77.32     Subdivision 1.  [SANCTIONS FOR REFUSAL TO COOPERATE WITH 
 77.33  SUPPORT REQUIREMENTS.] The grant of an MFIP-S caregiver who 
 77.34  refuses to cooperate, as determined by the child support 
 77.35  enforcement agency, with support requirements under section 
 77.36  256J.30 must be reduced by 25 percent of the applicable 
 78.1   transitional standard.  The sanction must be in effect for a 
 78.2   minimum of one month, and shall be removed only when the 
 78.3   caregiver cooperates with the support requirements.  A sanction 
 78.4   under this subdivision is not subject to the notice and 
 78.5   supervisory review requirements of section 256J.57, subdivision 
 78.6   2.  
 78.7      Subd. 2.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING WITH 
 78.8   PROGRAM REQUIREMENTS.] (a) A participant who fails without good 
 78.9   cause to comply with the requirements of this chapter shall be 
 78.10  subject to a sanction consisting of reduced MFIP-S assistance as 
 78.11  provided in this subdivision.  A sanction under this subdivision 
 78.12  becomes effective ten days after the required notice is given.  
 78.13  For purposes of this subdivision, each month that a participant 
 78.14  fails to comply with a requirement of this chapter shall be 
 78.15  considered a separate occurrence of noncompliance.  A 
 78.16  participant who has had one or more sanctions imposed must 
 78.17  remain in compliance with the provisions of this chapter for 12 
 78.18  months in order for a subsequent sanction to be considered a 
 78.19  first occurrence.  
 78.20     (b) Sanctions for noncompliance shall be imposed as 
 78.21  follows, provided the participant is not subject to sanction 
 78.22  under subdivision 1: 
 78.23     (1) For the first occurrence of failure to comply, a 
 78.24  participant's rent and utilities shall be vendor paid up to the 
 78.25  amount of the cash portion of the MFIP-S grant for which the 
 78.26  participant's assistance unit is eligible.  The residual amount 
 78.27  of the cash and food portion of the grant after vendor payment, 
 78.28  if any, must be reduced by an amount equal to ten percent of the 
 78.29  applicable transitional standard before it is paid to the 
 78.30  participant.  The sanction must be in effect for a minimum of 
 78.31  one month, and shall be removed only when the participant is in 
 78.32  compliance. 
 78.33     (2) For a second occurrence, the participant's rent and 
 78.34  utilities shall be vendor paid up to the cash portion of the 
 78.35  amount of the MFIP-S grant for which the participant's 
 78.36  assistance unit is eligible.  The residual amount of the cash 
 79.1   and food portion of the grant after vendor payment, if any, must 
 79.2   be reduced by an amount equal to 25 percent of the applicable 
 79.3   transitional standard before the residual is paid to the 
 79.4   participant.  The sanction must be in effect for a minimum of 
 79.5   one month, and shall be removed only when the participant is in 
 79.6   compliance. 
 79.7      (3) For a third or subsequent occurrence, the participant's 
 79.8   rent and utilities shall be vendor paid up to the amount of the 
 79.9   cash portion of the MFIP-S grant for which the participant's 
 79.10  assistance unit is eligible.  The residual amount of the cash 
 79.11  and food portion of the grant after vendor payment, if any, must 
 79.12  be reduced by an amount equal to 35 percent of the applicable 
 79.13  transitional standard before the residual is paid to the 
 79.14  participant.  The sanction must be in effect for a minimum of 
 79.15  one month, and shall be removed only when the participant is in 
 79.16  compliance. 
 79.17     (c) Sanctions for noncompliance shall be imposed as 
 79.18  provided in this paragraph for participants who are subject to 
 79.19  sanction under subdivision 1.  For the first and each subsequent 
 79.20  occurrence, the participant's grant must be reduced by 25 
 79.21  percent of the applicable transitional standard as provided in 
 79.22  subdivision 1, and the assistance unit's rent and utilities 
 79.23  shall be vendor paid up to the amount of the cash portion of the 
 79.24  reduced grant.  The residual amount of the cash and food portion 
 79.25  of the grant after vendor payment, if any, must be reduced by 
 79.26  ten percent of the applicable transitional standard before it is 
 79.27  paid to the participant.  The sanction must be in effect for a 
 79.28  minimum of one month, and shall be removed only when the 
 79.29  participant is in compliance. 
 79.30     (d) If a participant is subject to sanction under paragraph 
 79.31  (c) and later becomes subject to sanction under paragraph (b), 
 79.32  each month of sanction under paragraph (c) shall count as a 
 79.33  separate occurrence of noncompliance for purposes of determining 
 79.34  the sanction under paragraph (b).  
 79.35     Subd. 3.  [EXCEPTIONS DUE TO LACK OF CHILD 
 79.36  CARE.] Notwithstanding subdivision 2, a county agency may not 
 80.1   reduce or terminate MFIP-S assistance based on a refusal of a 
 80.2   participant to comply with the work and training requirements of 
 80.3   MFIP-S if the participant is a single custodial parent caring 
 80.4   for a child who has not attained six years of age, and the 
 80.5   participant has a demonstrated inability, as determined by the 
 80.6   county agency, to obtain needed child care, for one or more of 
 80.7   the following reasons: 
 80.8      (1) unavailability of appropriate child care within a 
 80.9   reasonable distance from the participant's home or work site; 
 80.10     (2) unavailability or unsuitability of informal child care 
 80.11  by a relative or under other arrangements; or 
 80.12     (3) unavailability of appropriate and affordable formal 
 80.13  child care arrangements. 
 80.14     Sec. 35.  [256J.47] [DIVERSIONARY ASSISTANCE PROGRAM.] 
 80.15     Subdivision 1.  [ELIGIBILITY.] A family is eligible to 
 80.16  receive diversionary assistance once every 36 months if: 
 80.17     (1) a family member has resided in this state for at least 
 80.18  30 days; 
 80.19     (2) the caregiver provides verification that the caregiver 
 80.20  has either experienced an unexpected occurrence that makes it 
 80.21  impossible to retain or obtain employment or the caregiver has a 
 80.22  temporary loss of income, which is not due to refusing to accept 
 80.23  or terminating suitable employment as defined in section 
 80.24  256J.49, without good cause under section 256J.57, resulting in 
 80.25  an emergency; 
 80.26     (3) the caregiver is at risk of MFIP-S eligibility if 
 80.27  diversionary assistance is not provided and household income is 
 80.28  below 140 percent of the federal poverty guidelines; and 
 80.29     (4) the diversionary assistance will resolve the emergency 
 80.30  and divert the family from applying for MFIP-S. 
 80.31     For purposes of this section, diversionary assistance means 
 80.32  a one-time lump-sum payment to an individual or third-party 
 80.33  vendor to prevent long-term receipt of public assistance. 
 80.34     Subd. 2.  [COUNTY AGENCY DUTIES.] County agencies shall: 
 80.35     (1) thoroughly explain to the caregiver the consequences of 
 80.36  receiving diversionary assistance, specifically the resulting 
 81.1   period of ineligibility under subdivision 4 for other assistance 
 81.2   programs; and 
 81.3      (2) determine eligibility for diversionary assistance 
 81.4   within five working days of the receipt of the verification that 
 81.5   substantiates eligibility or ineligibility.  Verification means 
 81.6   client declaration and the best determination of the county 
 81.7   agency. 
 81.8      Subd. 3.  [MAXIMUM AMOUNT OF ASSISTANCE.] The maximum 
 81.9   amount of diversionary assistance that may be provided to a 
 81.10  family is equal to the amount of the MFIP-S transitional 
 81.11  standard for the same family size and composition for four 
 81.12  months.  The assistance provided under this program must be 
 81.13  based on the immediate needs of the family.  Counties must 
 81.14  strive to provide the most cost-effective solution to the 
 81.15  one-time emergency.  Diversionary assistance is not cost 
 81.16  effective if the family's anticipated income added to the 
 81.17  diversion payment will not be sufficient to cover the family's 
 81.18  immediate needs for the period of ineligibility under 
 81.19  subdivision 4, beginning with the month of application, or 
 81.20  another emergency can reasonably be anticipated within the 
 81.21  period of ineligibility. 
 81.22     Subd. 4.  [INELIGIBILITY FOR MFIP-S; EMERGENCY ASSISTANCE; 
 81.23  AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of diversionary 
 81.24  assistance, the family is ineligible for MFIP-S, emergency 
 81.25  assistance, and emergency general assistance for a period of 
 81.26  time.  To determine the period of ineligibility, the county 
 81.27  shall use the following formula:  regardless of household 
 81.28  changes, the county agency must calculate the number of days of 
 81.29  ineligibility by dividing the diversionary assistance issued by 
 81.30  the transitional standard a family of the same size and 
 81.31  composition would have received under MFIP-S, multiplied by 30, 
 81.32  truncating the result.  The ineligibility period begins the date 
 81.33  the diversionary assistance is issued. 
 81.34     Subd. 5.  [DIVERSIONARY ASSISTANCE GRANT; FUNDING] The 
 81.35  commissioner shall distribute diversionary assistance grants to 
 81.36  counties.  The commissioner may use federal block grant funding 
 82.1   or state funding for the grants. 
 82.2      Sec. 36.  [256J.48] [EMERGENCY ASSISTANCE (EA).] 
 82.3      Subdivision 1.  [EMERGENCY FINANCIAL ASSISTANCE.] County 
 82.4   human service agencies shall grant emergency financial 
 82.5   assistance to a pregnant woman or any needy family with a child 
 82.6   under the age of 21 who is or was within six months prior to 
 82.7   application living with an eligible caregiver relative specified 
 82.8   in section 256J.08. 
 82.9      Except for ongoing special diets, emergency assistance is 
 82.10  available to a family during one 30-day period in a consecutive 
 82.11  12-month period.  A county shall issue assistance for needs that 
 82.12  accrue before that 30-day period only when it is necessary to 
 82.13  resolve emergencies arising or continuing during the 30-day 
 82.14  period of eligibility.  When emergency needs continue, a county 
 82.15  may issue assistance for up to 30 days beyond the initial 30-day 
 82.16  period of eligibility, but only when assistance is authorized 
 82.17  during the initial period. 
 82.18     Subd. 2.  [ELIGIBILITY.] Notwithstanding other eligibility 
 82.19  provisions of this chapter, any family without resources 
 82.20  immediately available to meet emergency needs identified in 
 82.21  subdivision 3 shall be eligible for an emergency grant under the 
 82.22  following conditions: 
 82.23     (1) a family member has resided in this state for at least 
 82.24  30 days; 
 82.25     (2) the family is without resources immediately available 
 82.26  to meet emergency needs; 
 82.27     (3) assistance is necessary to avoid destitution or provide 
 82.28  emergency shelter arrangements; and 
 82.29     (4) the family's destitution or need for shelter or 
 82.30  utilities did not arise because the child or relative caregiver 
 82.31  refused without good cause under section 256J.57 to accept 
 82.32  employment or training for employment in this state or another 
 82.33  state. 
 82.34     Subd. 3.  [EMERGENCY NEEDS.] Emergency needs are limited to 
 82.35  the following: 
 82.36     (a) [RENT.] A county agency may deny assistance to prevent 
 83.1   eviction from rented or leased shelter of an otherwise eligible 
 83.2   applicant when the county agency determines that an applicant's 
 83.3   anticipated income will not cover continued payment for shelter, 
 83.4   subject to conditions in clauses (1) to (3): 
 83.5      (1) a county agency must not deny assistance when an 
 83.6   applicant can document that the applicant is unable to locate 
 83.7   habitable shelter, unless the county agency can document that 
 83.8   one or more habitable shelters are available in the community 
 83.9   that will result in at least a 20 percent reduction in monthly 
 83.10  expense for shelter and that this shelter will be cost-effective 
 83.11  for the applicant; 
 83.12     (2) when no alternative shelter can be identified by either 
 83.13  the applicant or the county agency, the county agency shall not 
 83.14  deny assistance because anticipated income will not cover rental 
 83.15  obligation; and 
 83.16     (3) when cost-effective alternative shelter is identified, 
 83.17  the county agency shall issue assistance for moving expenses as 
 83.18  provided in paragraph (d). 
 83.19     (b) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 
 83.20  agency shall issue assistance for mortgage or contract for deed 
 83.21  arrearages on behalf of an otherwise eligible applicant 
 83.22  according to clauses (1) to (6): 
 83.23     (1) assistance for arrearages must be issued only when a 
 83.24  home is owned, occupied, and maintained by the applicant; 
 83.25     (2) assistance for arrearages must be issued only when no 
 83.26  subsequent foreclosure action is expected within the 12 months 
 83.27  following the issuance; 
 83.28     (3) assistance for arrearages must be issued only when an 
 83.29  applicant has been refused refinancing through a bank or other 
 83.30  lending institution and the amount payable, when combined with 
 83.31  any payments made by the applicant, will be accepted by the 
 83.32  creditor as full payment of the arrearage; 
 83.33     (4) costs paid by a family which are counted toward the 
 83.34  payment requirements under this clause are principle and 
 83.35  interest payments on mortgages or contracts for deed, balloon 
 83.36  payments, homeowner's insurance payments, manufactured home lot 
 84.1   rental payments, and tax or special assessment payments related 
 84.2   to the homestead.  Costs which are not counted include closing 
 84.3   costs related to the sale or purchase of real property; 
 84.4      (5) to be eligible for assistance for the costs under 
 84.5   clause (4) which are outstanding at the time of foreclosure, an 
 84.6   applicant must have paid at least 40 percent of the family's 
 84.7   gross income toward these costs in the month of application and 
 84.8   the 11-month period immediately preceding the month of 
 84.9   application; and 
 84.10     (6) when an applicant is eligible under clause (5), a 
 84.11  county agency shall issue assistance up to a maximum of four 
 84.12  times the MFIP-S transitional standard for a comparable 
 84.13  assistance unit. 
 84.14     (c) [DAMAGE DEPOSITS.] A county agency shall issue 
 84.15  assistance for damage deposits when necessary to alleviate the 
 84.16  emergency. 
 84.17     (d) [MOVING EXPENSES.] A county agency shall issue 
 84.18  assistance for expenses incurred when a family must move to a 
 84.19  different shelter according to clauses (1) to (4): 
 84.20     (1) moving expenses include the cost to transport personal 
 84.21  property belonging to a family, the cost for utility connection, 
 84.22  and the cost for securing different shelter; 
 84.23     (2) moving expenses must be paid only when the county 
 84.24  agency determines that a move is cost-effective; 
 84.25     (3) moving expenses must be paid at the request of an 
 84.26  applicant, but only when destitution or threatened destitution 
 84.27  exists; and 
 84.28     (4) moving expenses must be paid when a county agency 
 84.29  denies assistance to prevent an eviction because the county 
 84.30  agency has determined that an applicant's anticipated income 
 84.31  will not cover continued shelter obligation in paragraph (a). 
 84.32     (e) [HOME REPAIRS.] A county agency shall pay for repairs 
 84.33  to the roof, foundation, wiring, heating system, chimney, and 
 84.34  water and sewer system of a home that is owned and lived in by 
 84.35  an applicant. 
 84.36     The applicant shall document, and the county agency shall 
 85.1   verify the need for and method of repair. 
 85.2      The payment must be cost-effective in relation to the 
 85.3   overall condition of the home and in relation to the cost and 
 85.4   availability of alternative housing. 
 85.5      (f) [UTILITY COSTS.] Assistance for utility costs must be 
 85.6   made when an otherwise eligible family has had a termination or 
 85.7   is threatened with a termination of municipal water and sewer 
 85.8   service, electric, gas or heating fuel service, or lacks wood 
 85.9   when that is the heating source, subject to the conditions in 
 85.10  clauses (1) and (2): 
 85.11     (1) a county agency must not issue assistance unless the 
 85.12  county agency receives confirmation from the utility provider 
 85.13  that assistance combined with payment by the applicant will 
 85.14  continue or restore the utility; 
 85.15     (2) a county agency shall not issue assistance for utility 
 85.16  costs unless a family paid at least eight percent of the 
 85.17  family's gross income toward utility costs due during the 
 85.18  utility budget period; and 
 85.19     (3) clauses (1) and (2) must not be construed to prevent 
 85.20  the issuance of assistance when a county agency must take 
 85.21  immediate and temporary action necessary to protect the life or 
 85.22  health of a child. 
 85.23     (g) [SPECIAL DIETS.] A county shall pay for special diets 
 85.24  or dietary items.  The need for special diets or dietary items 
 85.25  must be prescribed by a licensed physician.  Costs for special 
 85.26  diets shall be determined as percentages of the allotment for a 
 85.27  one-person household under the Thrifty Food Plan.  The types of 
 85.28  diets and the percentages of the Thrifty Food Plan that are 
 85.29  covered are as follows: 
 85.30     (1) high protein diet, at least 80 grams daily, 25 percent 
 85.31  of Thrifty Food Plan; 
 85.32     (2) controlled protein diet, 40 to 60 grams and requires 
 85.33  special products, 100 percent of Thrifty Food Plan; 
 85.34     (3) controlled protein diet, less than 40 grams and 
 85.35  requires special products, 125 percent of Thrifty Food Plan; 
 85.36     (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 
 86.1      (5) high residue diet, 20 percent of Thrifty Food Plan; 
 86.2      (6) pregnancy and lactation diet, 35 percent of Thrifty 
 86.3   Food Plan; 
 86.4      (7) gluten-free diet, 25 percent of Thrifty Food Plan; 
 86.5      (8) lactose-free diet, 25 percent of Thrifty Food Plan; 
 86.6      (9) antidumping diet, 15 percent of Thrifty Food Plan; 
 86.7      (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 
 86.8      (11) ketogenic diet, 25 percent of Thrifty Food Plan. 
 86.9      Subd. 4.  [VENDOR PAYMENTS FOR SHELTER OR UTILITY 
 86.10  COSTS.] An ongoing MFIP-S grant may, at county board option, be 
 86.11  in the form of vendor payments if application for emergency 
 86.12  assistance is for shelter or utility costs. 
 86.13                   MFIP-S EMPLOYMENT AND TRAINING
 86.14     Sec. 37.  [256J.49] [EMPLOYMENT AND TRAINING SERVICES; 
 86.15  DEFINITIONS.] 
 86.16     Subdivision 1.  [SCOPE.] The terms used in sections 256J.50 
 86.17  to 256J.72 have the meanings given them in this section. 
 86.18     Subd. 2.  [DOMESTIC VIOLENCE.] "Domestic violence" means: 
 86.19     (1) physical acts that result, or threaten to result in, 
 86.20  physical injury to an individual; 
 86.21     (2) sexual abuse; 
 86.22     (3) sexual activity involving a minor child; 
 86.23     (4) being forced as the caregiver of a minor child to 
 86.24  engage in nonconsensual sexual acts or activities; 
 86.25     (5) threats of, or attempts at, physical or sexual abuse; 
 86.26     (6) mental abuse; or 
 86.27     (7) neglect or deprivation of medical care. 
 86.28     Subd. 3.  [EMPLOYMENT AND TRAINING SERVICES.] "Employment 
 86.29  and training services" means programs, activities and services 
 86.30  that are designed to assist participants in obtaining and 
 86.31  retaining employment. 
 86.32     Subd. 4.  [EMPLOYMENT AND TRAINING SERVICE 
 86.33  PROVIDER.] "Employment and training service provider" means: 
 86.34     (1) a public, private, or nonprofit employment and training 
 86.35  agency certified by the commissioner of economic security under 
 86.36  sections 268.0122, subdivision 3, and 268.871, subdivision 1; 
 87.1      (2) a public, private, or nonprofit agency that is not 
 87.2   certified by the commissioner under clause (1), but with which a 
 87.3   county has contracted to provide employment and training 
 87.4   services; or 
 87.5      (3) a county agency, if the county has opted to provide 
 87.6   employment and training services. 
 87.7      Subd. 5.  [EMPLOYMENT PLAN.] "Employment plan" means a plan 
 87.8   developed by the job counselor and the participant which 
 87.9   identifies the participant's most direct path to unsubsidized 
 87.10  employment, lists the specific steps that the caregiver will 
 87.11  take on that path, and includes a timetable for the completion 
 87.12  of each step. 
 87.13     Subd. 6.  [FEDERAL PARTICIPATION STANDARDS.] "Federal 
 87.14  participation standards" means the work participation standards 
 87.15  as specified in title I of Public Law No. 104-193, the Personal 
 87.16  Responsibility and Work Opportunity Reconciliation Act of 1996. 
 87.17     Subd. 7.  [INTENSIVE ENGLISH AS A SECOND LANGUAGE 
 87.18  PROGRAM.] "Intensive English as a second language program" means 
 87.19  an English as a second language program that offers at least 20 
 87.20  hours of class per week. 
 87.21     Subd. 8.  [JOB COUNSELOR.] "Job counselor" means a staff 
 87.22  person employed by the employment and training services provider 
 87.23  who delivers services as specified in sections 256J.50 to 
 87.24  256J.69. 
 87.25     Subd. 9.  [PARTICIPANT.] "Participant" means a recipient of 
 87.26  MFIP-S assistance who participates or is required to participate 
 87.27  in employment and training services. 
 87.28     Subd. 10.  [PROVIDER.] "Provider" means an employment and 
 87.29  training service provider. 
 87.30     Subd. 11.  [SAFETY PLAN.] "Safety plan" means a plan 
 87.31  developed by a victim of domestic violence or a person at risk 
 87.32  of becoming a victim of domestic violence with the assistance of 
 87.33  a public agency or a private nonprofit agency, including 
 87.34  agencies that receive designation by the department of 
 87.35  corrections to provide emergency shelter services or support 
 87.36  services under section 611A.32.  A safety plan shall not include 
 88.1   a provision that automatically requires a domestic violence 
 88.2   victim to seek an order of protection, or to attend counseling, 
 88.3   as part of the safety plan. 
 88.4      Subd. 12.  [SUITABLE EMPLOYMENT.] "Suitable employment" 
 88.5   means employment that: 
 88.6      (1) is within the participant's physical and mental 
 88.7   abilities; 
 88.8      (2) pays hourly gross wages of not less than the applicable 
 88.9   state or federal minimum wage; 
 88.10     (3) meets health and safety standards set by federal, state 
 88.11  and county agencies; and 
 88.12     (4) complies with federal, state, and local 
 88.13  antidiscrimination laws. 
 88.14     Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
 88.15  activity in a participant's approved employment plan that is 
 88.16  tied to the participant's employment goal .  For purposes of the 
 88.17  MFIP-S program, any activity that is included in a participant's 
 88.18  approved employment plan meets the definition of work activity 
 88.19  as counted under the federal participation standards.  Work 
 88.20  activity includes, but is not limited to: 
 88.21     (1) unsubsidized employment; 
 88.22     (2) subsidized private sector or public sector employment, 
 88.23  including grant diversion as specified in section 256J.69; 
 88.24     (3) work experience, including CWEP as specified in section 
 88.25  256J.67, and including work associated with the refurbishing of 
 88.26  publicly assisted housing if sufficient private sector 
 88.27  employment is not available; 
 88.28     (4) on-the-job training as specified in section 256J.66; 
 88.29     (5) job search, either supervised or unsupervised; 
 88.30     (6) job readiness assistance; 
 88.31     (7) job clubs, including job search workshops; 
 88.32     (8) job placement; 
 88.33     (9) job development; 
 88.34     (10) job-related counseling; 
 88.35     (11) job coaching; 
 88.36     (12) job retention services; 
 89.1      (13) job-specific training or education ; 
 89.2      (14) job skills training directly related to employment; 
 89.3      (15) the self-employment investment demonstration (SEID), 
 89.4   as specified in section 256J.65; 
 89.5      (16) preemployment activities, based on availability and 
 89.6   resources, such as volunteer work, citizenship and English as a 
 89.7   second language classes, or participation in dislocated worker 
 89.8   services, chemical dependency treatment, mental health services, 
 89.9   peer group networks, displaced homemaker programs, parenting 
 89.10  education, or other programs designed to help families reach 
 89.11  their employment goals and enhance their ability to care for 
 89.12  their children; 
 89.13     (17) community service programs; 
 89.14     (18) vocational educational training or educational 
 89.15  programs that can reasonably be expected to lead to employment, 
 89.16  as limited by the provisions of section 256J.53; 
 89.17     (19) apprenticeships; 
 89.18     (20) satisfactory attendance in general educational 
 89.19  development diploma classes or an adult diploma program; 
 89.20     (21) satisfactory attendance at secondary school, if the 
 89.21  participant has not received a high school diploma; 
 89.22     (22) adult basic education classes; 
 89.23     (23) internships; 
 89.24     (24) bilingual employment and training services; 
 89.25     (25) providing child care services to a participant who is 
 89.26  working in a community service program; and 
 89.27     (26) activities included in a safety plan that is developed 
 89.28  under section 256J.52, subdivision 6. 
 89.29     Sec. 38.  [256J.50] [COUNTY DUTIES.] 
 89.30     Subdivision 1.  [EMPLOYMENT AND TRAINING SERVICES COMPONENT 
 89.31  OF MFIP-S.] (a) By December 1, 1997, each county must develop 
 89.32  and implement an employment and training services component of 
 89.33  MFIP-S which is designed to put participants on the most direct 
 89.34  path to unsubsidized employment.  Participation in these 
 89.35  services is mandatory for all MFIP-S caregivers according to 
 89.36  subdivision 5, unless the caregiver is exempt under section 
 90.1   256J.56. 
 90.2      (b) A county may delay implementation of the employment and 
 90.3   training services component of MFIP-S beyond December 1, 1997, 
 90.4   if the county presents to the commissioner in writing by 
 90.5   November 1, 1997, the reasons why the delay is necessary.  A 
 90.6   county must implement the employment and training services 
 90.7   component by January 1, 1998. 
 90.8      (c) Each county or group of counties working cooperatively 
 90.9   must make available to their participants the choice of at least 
 90.10  two employment and training service providers, except in 
 90.11  counties utilizing workforce centers that use multiple 
 90.12  employment service providers and offer multiple service options 
 90.13  under a collaborative effort and can document that participants 
 90.14  have choice among employment and training services designed to 
 90.15  meet specialized needs. 
 90.16     Subd. 2.  [PILOT PROGRAMS.] In counties selected for the 
 90.17  work first or work focused pilot programs, first-time applicants 
 90.18  for assistance must meet the requirements of those programs in 
 90.19  place of the requirements of the MFIP-S program.  A county may, 
 90.20  at its option, discontinue a work first or work focused pilot 
 90.21  program. 
 90.22     Subd. 3.  [TRANSITIONAL RULE; STRIDE, ACCESS, MFIP, OR 
 90.23  MFIP-R PARTICIPANT.] A caregiver who was enrolled in project 
 90.24  STRIDE, ACCESS, MFIP or MFIP-R on the date the county implements 
 90.25  the employment and training services component of MFIP-S and was 
 90.26  making satisfactory progress toward the objectives specified in 
 90.27  the caregiver's employment plan, may continue with the existing 
 90.28  employment plan for up to two years with the approval of a job 
 90.29  counselor.  The job counselor may require changes to the plan in 
 90.30  order to be consistent with this two-year time limit. 
 90.31     Subd. 4.  [SERVICE-PROVIDING AGENCIES.] Counties may select 
 90.32  one or more employment and training service providers, or may 
 90.33  opt to provide services on their own. 
 90.34     Subd. 5.  [PARTICIPATION REQUIREMENTS FOR SINGLE-PARENT AND 
 90.35  TWO-PARENT CASES.] A county must establish a uniform schedule 
 90.36  for requiring participation by single parents.  Mandatory 
 91.1   participation must be required within three months of 
 91.2   eligibility for cash assistance.  For two-parent cases, 
 91.3   participation is required concurrent with the receipt of MFIP-S 
 91.4   cash assistance. 
 91.5      Sec. 39.  [256J.51] [ORIENTATION.] 
 91.6      Subdivision 1.  [COUNTY AGENCY TO PROVIDE 
 91.7   ORIENTATION.] County agencies in MFIP-S counties must provide 
 91.8   each applicant with a face-to-face orientation.  
 91.9      Subd. 2.  [GENERAL INFORMATION.] The MFIP-S orientation 
 91.10  must consist of a presentation that informs caregivers of: 
 91.11     (1) the necessity to obtain immediate employment; 
 91.12     (2) the work incentives under MFIP-S; 
 91.13     (3) the exemption from the 60-month lifetime limit under 
 91.14  section 256J.42, subdivision 6, for working in unsubsidized 
 91.15  employment; 
 91.16     (4) the requirement to comply with the employment plan and 
 91.17  other requirements of the work and training component of MFIP-S; 
 91.18     (5) the consequences for failing to comply with the 
 91.19  employment plan and other program requirements; 
 91.20     (6) the rights, responsibilities, and obligations of 
 91.21  participants; 
 91.22     (7) the types and locations of child care services 
 91.23  available through the county agency; 
 91.24     (8) the availability and the benefits of the early 
 91.25  childhood health and developmental screening under sections 
 91.26  123.701 to 123.74; 
 91.27     (9) the caregiver's eligibility for transition year child 
 91.28  care assistance when the caregiver loses eligibility for MFIP-S 
 91.29  due to increased earnings; 
 91.30     (10) the caregiver's eligibility for extended medical 
 91.31  assistance when the caregiver loses eligibility for MFIP-S due 
 91.32  to increased earnings or increased child or spousal support; and 
 91.33     (11) the caregiver's option to choose an employment and 
 91.34  training provider and information about each provider, including 
 91.35  but not limited to, services offered, program components, job 
 91.36  placement rates, job placement wages, and job retention rates. 
 92.1      Sec. 40.  [256J.52] [ASSESSMENTS; PLANS.] 
 92.2      Subdivision 1.  [APPLICATION LIMITED TO CERTAIN 
 92.3   RECIPIENTS.] This section applies to recipients of MFIP-S 
 92.4   assistance who are not exempt under section 256J.56. 
 92.5      Subd. 2.  [INITIAL ASSESSMENT.] (a) The job counselor must, 
 92.6   with the cooperation of the participant, assess the 
 92.7   participant's ability to obtain employment.  This initial 
 92.8   assessment must include a review of the participant's education 
 92.9   level, prior employment or work experience, transferable work 
 92.10  skills, and existing job markets.  In assessing the participant, 
 92.11  the job counselor must determine if the participant needs 
 92.12  refresher courses for professional certification or licensure, 
 92.13  in which case, the job search plan under subdivision 3 must 
 92.14  include the courses necessary to obtain the certification or 
 92.15  licensure, in addition to other work activities, provided the 
 92.16  combination of the courses and other work activities are at 
 92.17  least for 40 hours per week.  Lack of proficiency in English is 
 92.18  not necessarily a barrier to employment.  If an individual can 
 92.19  demonstrate to the satisfaction of the county agency that lack 
 92.20  of proficiency in English is a barrier to obtaining suitable 
 92.21  employment, the job counselor must include participation in an 
 92.22  intensive English as a second language program if available or 
 92.23  otherwise a regular English as a second language program in the 
 92.24  individual's employment plan under subdivision 5.  
 92.25     (b) Caretakers who, at the time of the initial assessment 
 92.26  under this section, are participating in an education program 
 92.27  that satisfies the criteria in section 256J.53, may, with the 
 92.28  approval of the job counselor, postpone job search.  These 
 92.29  caretakers must be referred for development of an employment 
 92.30  plan that includes completion of the education program. 
 92.31     (c) If the participant has a specific employment goal which 
 92.32  can best be met with additional education or training and is 
 92.33  expected to result in higher wages than the participant could 
 92.34  earn without the additional education or training, the 
 92.35  participant, along with the counselor, may propose an employment 
 92.36  plan under subdivision 5 that includes activities approved under 
 93.1   the criteria of section 256J.53. 
 93.2      Subd. 3.  [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] If, after 
 93.3   the initial assessment, the job counselor determines that the 
 93.4   participant possesses sufficient skills that the participant is 
 93.5   likely to succeed in obtaining suitable employment, the 
 93.6   participant must conduct job search for a period of up to eight 
 93.7   weeks, for at least 30 hours per week.  The participant must 
 93.8   accept any offer of suitable employment.  The job counselor and 
 93.9   participant must develop a job search support plan which 
 93.10  specifies, at a minimum:  whether the job search is to be 
 93.11  supervised or unsupervised; support services that will be 
 93.12  provided while the participant conducts job search activities; 
 93.13  the courses necessary to obtain certification or licensure, if 
 93.14  applicable, and after obtaining the license or certificate, the 
 93.15  client must comply with subdivision 5; and how frequently the 
 93.16  participant must report to the job counselor on the status of 
 93.17  the participant's job search activities.  Failure to conduct the 
 93.18  required job search, to accept any offer of suitable employment, 
 93.19  to develop or comply with a job search support plan, or 
 93.20  voluntarily quitting suitable employment without good cause 
 93.21  results in the imposition of a sanction under section 256J.46.  
 93.22  If at the end of eight weeks the participant has not obtained 
 93.23  suitable employment, the job counselor must conduct a secondary 
 93.24  assessment of the participant under subdivision 4. 
 93.25     Subd. 4.  [SECONDARY ASSESSMENT.] (a) The job counselor 
 93.26  must conduct a secondary assessment for those participants who: 
 93.27     (1) in the judgment of the job counselor, have barriers to 
 93.28  obtaining employment that will not be overcome with a job search 
 93.29  support plan under subdivision 3; 
 93.30     (2) have completed eight weeks of job search under 
 93.31  subdivision 3 without obtaining suitable employment; or 
 93.32     (3) are working at least 20 hours per week and have not 
 93.33  received a secondary assessment, and the participant, job 
 93.34  counselor, or county agency request a secondary assessment. 
 93.35     (b) In the secondary assessment the job counselor must 
 93.36  evaluate the participant's skills and prior work experience, 
 94.1   family circumstances, interests and abilities, need for 
 94.2   preemployment, supportive, or educational services, and the 
 94.3   extent of any barriers to employment or an interest in and 
 94.4   suitability for self-employment.  The job counselor must use the 
 94.5   information gathered through the secondary assessment to develop 
 94.6   an employment plan under subdivision 5. 
 94.7      Subd. 5.  [EMPLOYMENT PLAN; CONTENTS.] Based on the 
 94.8   secondary assessment under subdivision 4, the job counselor and 
 94.9   the participant must develop an employment plan for the 
 94.10  participant that includes specific activities that are tied to 
 94.11  an employment goal and a plan for long-term self-sufficiency, 
 94.12  and that is designed to move the participant along the most 
 94.13  direct path to unsubsidized employment.  The employment plan 
 94.14  must list the specific steps that will be taken to obtain 
 94.15  employment and a timetable for completion of each of the steps.  
 94.16  The job counselor and the participant must sign the developed 
 94.17  plan to indicate agreement between the job counselor and the 
 94.18  participant on the contents of the plan.  
 94.19     Subd. 6.  [SAFETY PLAN.] Notwithstanding subdivisions 1 to 
 94.20  5, a participant who is a victim of domestic violence and who 
 94.21  agrees to develop or has developed a safety plan meeting the 
 94.22  definition under section 256J.49, subdivision 11, is deferred 
 94.23  from the requirements of this section, section 256J.54, and 
 94.24  section 256J.55 for a period of three months from the date the 
 94.25  safety plan is approved.  A participant deferred under this 
 94.26  subdivision must submit a safety plan status report to the 
 94.27  county agency on a quarterly basis.  Based on a review of the 
 94.28  status report, the county agency may approve or renew the 
 94.29  participant's deferral each quarter, provided the personal 
 94.30  safety of the participant is still at risk and the participant 
 94.31  is complying with the plan.  A participant who is deferred under 
 94.32  this subdivision may be deferred for a total of 12 months under 
 94.33  a safety plan, provided the individual is complying with the 
 94.34  terms of the plan. 
 94.35     Subd. 7.  [REVISION OF EMPLOYMENT PLAN.] When the 
 94.36  participant is dismissed or quits a job with good cause, the job 
 95.1   counselor will meet with the participant to ascertain the reason 
 95.2   for being dismissed or quitting employment, and amend the 
 95.3   employment plan or job search support plan as necessary to 
 95.4   address the problem.  If the participant does not have an 
 95.5   employment plan, the participant or the job counselor may 
 95.6   request a secondary assessment at this time. 
 95.7      Sec. 41.  [256J.53] [LIMITATIONS ON POST-SECONDARY 
 95.8   EDUCATION AS AN APPROVED WORK ACTIVITY.] 
 95.9      Subdivision 1.  [LENGTH OF PROGRAM.] In order for a 
 95.10  post-secondary education or training program to be an approved 
 95.11  work activity as defined in section 256J.49, subdivision 13, 
 95.12  clause (18), it must be a program lasting 12 months or less.  A 
 95.13  program lasting up to 24 months may be approved if the 
 95.14  conditions specified in subdivisions 2 to 4 are met.  A 
 95.15  participant may not be approved for more than a total of 24 
 95.16  months of post-secondary education or training. 
 95.17     Subd. 2.  [DOCUMENTATION SUPPORTING PROGRAM.] In order for 
 95.18  a post-secondary education or training program to be an approved 
 95.19  activity in a participant's employment plan, the participant or 
 95.20  the employment and training service provider must provide 
 95.21  documentation that: 
 95.22     (1) the participant's employment plan identifies specific 
 95.23  goals that can only be met with the additional education or 
 95.24  training; 
 95.25     (2) there are suitable employment opportunities that 
 95.26  require the specific education or training in the area in which 
 95.27  the participant resides or is willing to reside; 
 95.28     (3) the education or training will result in significantly 
 95.29  higher wages for the participant than the participant could earn 
 95.30  without the education or training; 
 95.31     (4) the participant can meet the requirements for admission 
 95.32  into the program; and 
 95.33     (5) there is a reasonable expectation that the caregiver 
 95.34  will complete the training program based on the MFIP-S 
 95.35  assessment; previous education training and work history; 
 95.36  current motivation; and changes in previous circumstances. 
 96.1      Subd. 3.  [SATISFACTORY PROGRESS REQUIRED.] In order for a 
 96.2   post-secondary education or training program lasting between 13 
 96.3   and 24 months to be an approved activity in a participant's 
 96.4   employment plan, the participant must maintain satisfactory 
 96.5   progress in the program.  "Satisfactory progress" in an 
 96.6   education or training program means the participant remains in 
 96.7   good standing while the participant is enrolled in the program, 
 96.8   as defined by the education or training institution, and the 
 96.9   participant meets the requirements of the participant's 
 96.10  employment plan. 
 96.11     Subd. 4.  [REPAYMENT OF EMPLOYMENT AND TRAINING 
 96.12  ASSISTANCE.] In order for a post-secondary education or training 
 96.13  program lasting between 13 and 24 months to be an approved 
 96.14  activity in a participant's employment plan, the participant 
 96.15  must agree to repay the amount of employment and training funds 
 96.16  paid by the county to support the approved activities in the 
 96.17  participant's employment plan during each month after the 12th 
 96.18  month that the participant is enrolled in the program.  
 96.19  Assistance obtained by the participant through the federal Pell 
 96.20  grant program or other federal or state programs of higher 
 96.21  education assistance must be excluded from the amount to be 
 96.22  repaid by the participant.  The participant and the county 
 96.23  agency must develop a mutually acceptable repayment plan.  The 
 96.24  repayment plan must not assess any interest charges on the cost 
 96.25  of the funds to be repaid.  The loan is considered to be in 
 96.26  repayment status when: 
 96.27     (1) the participant completes the program and obtains 
 96.28  suitable employment that pays annual gross wages of at least 150 
 96.29  percent of the federal poverty level; or 
 96.30     (2) the participant leaves the program before completion of 
 96.31  the program and obtains suitable employment that pays annual 
 96.32  gross wages of at least 150 percent of the federal poverty level.
 96.33     Subd. 5.  [JOB SEARCH AFTER COMPLETION OF WORK 
 96.34  ACTIVITY.] If a participant's employment plan includes an 
 96.35  educational or training goal, the plan must include an 
 96.36  anticipated completion date for those activities.  At the time 
 97.1   the education or training is completed, the participant must 
 97.2   participate in job search.  If, after three months of job 
 97.3   search, the participant does not find a job that is consistent 
 97.4   with the participant's employment goal, the participant must 
 97.5   accept any offer of suitable employment. 
 97.6      Sec. 42.  [256J.54] [MINOR PARENTS; EMPLOYMENT PLAN.] 
 97.7      Subdivision 1.  [ASSESSMENT OF EDUCATIONAL PROGRESS AND 
 97.8   NEEDS.] The county agency must document the educational level of 
 97.9   each MFIP-S caregiver who is under the age of 20 and determine 
 97.10  if the caregiver has obtained a high school diploma or its 
 97.11  equivalent.  If the caregiver has not obtained a high school 
 97.12  diploma or its equivalent, and is not exempt from the 
 97.13  requirement to attend school under subdivision 5, the county 
 97.14  agency must complete an individual assessment for the 
 97.15  caregiver.  The assessment must be performed as soon as possible 
 97.16  but within 30 days of determining MFIP-S eligibility for the 
 97.17  caregiver.  The assessment must provide an initial examination 
 97.18  of the caregiver's educational progress and needs, literacy 
 97.19  level, child care and supportive service needs, family 
 97.20  circumstances, skills, and work experience.  In the case of a 
 97.21  caregiver under the age of 18, the assessment must also consider 
 97.22  the results of either the caregiver's or the caregiver's minor 
 97.23  child's child and teen checkup under Minnesota Rules, part 
 97.24  9505.0275 and parts 9505.1693 to 9505.1748, if available, and 
 97.25  the effect of a child's development and educational needs on the 
 97.26  caregiver's ability to participate in the program.  The county 
 97.27  agency must advise the caregiver that the caregiver's first goal 
 97.28  must be to complete an appropriate educational option if one is 
 97.29  identified for the caregiver through the assessment and, in 
 97.30  consultation with educational agencies, must review the various 
 97.31  school completion options with the caregiver and assist in 
 97.32  selecting the most appropriate option.  
 97.33     Subd. 2.  [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 
 97.34  PLAN.] For caregivers who are under age 18, the assessment under 
 97.35  subdivision 1 and the employment plan under subdivision 3 must 
 97.36  be completed by the social services agency under section 
 98.1   257.33.  For caregivers who are age 18 or 19, the assessment 
 98.2   under subdivision 1 and the employment plan under subdivision 3 
 98.3   must be completed by the job counselor.  The social services 
 98.4   agency or the job counselor shall consult with representatives 
 98.5   of educational agencies that are required to assist in 
 98.6   developing educational plans under section 126.235. 
 98.7      Subd. 3. [EDUCATIONAL OPTION DEVELOPED.] If the job 
 98.8   counselor or county social services agency identifies an 
 98.9   appropriate educational option, it must develop an employment 
 98.10  plan which reflects the identified option.  The plan must 
 98.11  specify that participation in an educational activity is 
 98.12  required, what school or educational program is most 
 98.13  appropriate, the services that will be provided, the activities 
 98.14  the caregiver will take part in, including child care and 
 98.15  supportive services, the consequences to the caregiver for 
 98.16  failing to participate or comply with the specified 
 98.17  requirements, and the right to appeal any adverse action.  The 
 98.18  employment plan must, to the extent possible, reflect the 
 98.19  preferences of the caregiver. 
 98.20     Subd. 4.  [NO APPROPRIATE EDUCATIONAL OPTION.] If the job 
 98.21  counselor determines that there is no appropriate educational 
 98.22  option for a caregiver who is age 18 or 19, the job counselor 
 98.23  must develop an employment plan, as defined in section 256J.49, 
 98.24  subdivision 5, for the caregiver.  If the county social services 
 98.25  agency determines that school attendance is not appropriate for 
 98.26  a caregiver under age 18, the county agency shall refer the 
 98.27  caregiver to social services for services as provided in section 
 98.28  257.33. 
 98.29     Subd. 5.  [SCHOOL ATTENDANCE REQUIRED.] (a) Notwithstanding 
 98.30  the provisions of section 256J.56, minor parents, or 18- or 
 98.31  19-year-old parents without a high school diploma or its 
 98.32  equivalent must attend school unless: 
 98.33     (1) transportation services needed to enable the caregiver 
 98.34  to attend school are not available; 
 98.35     (2) licensed or legal nonlicensed child care services 
 98.36  needed to enable the caregiver to attend school are not 
 99.1   available; 
 99.2      (3) the caregiver is ill or incapacitated seriously enough 
 99.3   to prevent attendance at school; or 
 99.4      (4) the caregiver is needed in the home because of the 
 99.5   illness or incapacity of another member of the household.  This 
 99.6   includes a caregiver of a child who is younger than six weeks of 
 99.7   age. 
 99.8      (b) The caregiver must be enrolled in a secondary school 
 99.9   and meeting the school's attendance requirements.  An enrolled 
 99.10  caregiver is considered to be meeting the attendance 
 99.11  requirements when the school is not in regular session, 
 99.12  including during holiday and summer breaks. 
 99.13     Sec. 43.  [256J.55] [PARTICIPANT REQUIREMENTS AND 
 99.14  EXPECTATIONS.] 
 99.15     Subdivision 1.  [COMPLIANCE WITH JOB SEARCH OR EMPLOYMENT 
 99.16  PLAN; SUITABLE EMPLOYMENT.] (a) Each MFIP-S participant must 
 99.17  comply with the terms of the participant's job search support 
 99.18  plan or employment plan.  When the participant has completed the 
 99.19  steps listed in the employment plan, the participant must comply 
 99.20  with section 256J.53, subdivision 5.  The participant may choose 
 99.21  to accept an offer of suitable employment before the participant 
 99.22  has completed the steps of the employment plan. 
 99.23     (b) For a participant under the age of 20 who is without a 
 99.24  high school diploma or general educational development diploma, 
 99.25  the requirement to comply with the terms of the employment plan 
 99.26  means the participant must meet the requirements of section 
 99.27  256J.54. 
 99.28     (c) Failure to develop or comply with a job search support 
 99.29  plan or an employment plan, or quitting suitable employment 
 99.30  without good cause, shall result in the imposition of a sanction 
 99.31  as specified in sections 256J.57 and 256J.46. 
 99.32     Subd. 2.  [DUTY TO REPORT.] The participant must inform the 
 99.33  job counselor within three working days regarding any changes 
 99.34  related to the participant's employment status. 
 99.35     Subd. 3.  [MOVE TO A DIFFERENT COUNTY.] MFIP-S applicants 
 99.36  or recipients who move to a different county in Minnesota and 
100.1   are required to participate in employment and training services 
100.2   are subject to the requirements of the destination county.  An 
100.3   employment plan that was developed in the county of origin may 
100.4   be continued in the destination county if both the destination 
100.5   county and the participant agree to do so. 
100.6      Sec. 44.  [256J.56] [EMPLOYMENT AND TRAINING SERVICES 
100.7   COMPONENT; EXEMPTIONS.] 
100.8      An MFIP-S caregiver is exempt from the requirements of 
100.9   sections 256J.51 to 256J.55 if the caregiver belongs to any of 
100.10  the following groups: 
100.11     (1) individuals who are age 60 or older; 
100.12     (2) individuals who are suffering from a professionally 
100.13  certified permanent or temporary illness, injury, or incapacity 
100.14  which is expected to continue for more than 30 days and which 
100.15  prevents the person from obtaining or retaining employment.  
100.16  Persons in this category with a temporary illness, injury, or 
100.17  incapacity must be reevaluated at least quarterly; 
100.18     (3) caregivers whose presence in the home is required 
100.19  because of the professionally certified illness or incapacity of 
100.20  another member in the household; 
100.21     (4) women who are pregnant, if the pregnancy has resulted 
100.22  in a professionally certified incapacity that prevents the woman 
100.23  from obtaining or retaining employment; 
100.24     (5) caregivers of a child under the age of one year who 
100.25  personally provide full-time care for the child.  In two-parent 
100.26  households, only one parent or other relative may qualify for 
100.27  this exemption; 
100.28     (6) individuals employed at least 40 hours per week or at 
100.29  least 30 hours per week and engaged in job search for at least 
100.30  an additional ten hours per week; 
100.31     (7) individuals experiencing a personal or family crisis 
100.32  that makes them incapable of participating in the program, as 
100.33  determined by the county agency.  Persons in this category must 
100.34  be reevaluated every 60 days; or 
100.35     (8) second parents in two-parent families, provided the 
100.36  second parent is employed for 20 or more hours per week. 
101.1      Sec. 45.  [256J.57] [GOOD CAUSE; FAILURE TO COMPLY; NOTICE; 
101.2   CONCILIATION CONFERENCE.] 
101.3      Subdivision 1.  [GOOD CAUSE FOR FAILURE TO COMPLY.] The 
101.4   county agency shall not impose the sanction under section 
101.5   256J.46 if it determines that the parental caregiver has good 
101.6   cause for not meeting the expectations of developing and 
101.7   complying with the terms of a job search support plan or an 
101.8   employment plan developed with the county agency.  Good cause 
101.9   exists when: 
101.10     (1) needed child care is not available; 
101.11     (2) the job does not meet the definition of suitable 
101.12  employment; 
101.13     (3) the parental caregiver is ill or injured; 
101.14     (4) a family member is ill and needs care by the parental 
101.15  caregiver that prevents the parental caregiver from complying 
101.16  with the employment plan; 
101.17     (5) the parental caregiver is unable to secure necessary 
101.18  transportation; 
101.19     (6) the parental caregiver is in an emergency situation 
101.20  that prevents compliance with the employment plan; 
101.21     (7) the schedule of compliance with the employment plan 
101.22  conflicts with judicial proceedings; 
101.23     (8) the parental caregiver is already participating in 
101.24  acceptable work activities; 
101.25     (9) the employment plan requires an educational program for 
101.26  a caregiver under age 20, but the educational program is not 
101.27  available; 
101.28     (10) activities identified in the employment plan are not 
101.29  available; 
101.30     (11) the parental caregiver is willing to accept suitable 
101.31  employment, but employment is not available; or 
101.32     (12) the parental caregiver documents other verifiable 
101.33  impediments to compliance with the employment plan beyond the 
101.34  parental caregiver's control. 
101.35     Subd. 2.  [SUPERVISORY REVIEW; NOTICE OF INTENT TO 
101.36  SANCTION.] (a) Before a job counselor provides a notice of 
102.1   intent to sanction a participant for noncompliance under 
102.2   paragraph (b), the job counselor's immediate supervisor must 
102.3   review the reason for a participant's noncompliance.  The 
102.4   supervisor's review must occur in a timely manner.  If the 
102.5   supervisor concurs with the job counselor's judgment that the 
102.6   failure is not reasonable or justified, the job counselor must 
102.7   provide the notice specified in paragraph (b). 
102.8      (b) When a participant fails without good cause to comply 
102.9   with the requirements of sections 256J.51 to 256J.55, the job 
102.10  counselor or the county agency must provide a notice of intent 
102.11  to sanction to the participant specifying the program 
102.12  requirements that were not complied with, informing the 
102.13  participant that the county agency will impose the sanctions 
102.14  specified in section 256J.46, and informing the participant of 
102.15  the opportunity to request a conciliation conference as 
102.16  specified in paragraph (c).  If the job counselor provides the 
102.17  required notice, the job counselor must simultaneously notify 
102.18  the county agency that the participant has failed to comply and 
102.19  request that the county agency impose the sanctions in section 
102.20  256J.46.  The county must then send a notice of adverse action 
102.21  to the participant informing the participant of the sanction 
102.22  that will be imposed, the reasons for the sanction, the 
102.23  effective date of the sanction, and the participant's right to 
102.24  have a fair hearing under section 256J.40. 
102.25     (c) The participant may request a conciliation conference 
102.26  by sending a written request, by making a telephone request, or 
102.27  by making an in-person request.  The request must be received 
102.28  within ten calendar days of the date the county agency mailed 
102.29  the ten-day notice of intent to sanction.  If a timely request 
102.30  for a conciliation is received, the county agency's service 
102.31  provider must conduct the conference within five days of the 
102.32  request.  If the conciliation conference resolves the 
102.33  noncompliance, the job counselor must promptly inform the county 
102.34  agency and request withdrawal of the sanction notice. 
102.35     (d) Upon receiving a sanction notice, the participant may 
102.36  request a fair hearing under section 256J.40, without exercising 
103.1   the option of a conciliation conference.  The county agency may 
103.2   not require a conciliation conference prior to a fair hearing. 
103.3      (e) If the participant requests a fair hearing or a 
103.4   conciliation conference, sanctions will not be imposed until 
103.5   there is a determination of noncompliance.  Sanctions must be 
103.6   imposed as provided in section 256J.46. 
103.7      Sec. 46.  [256J.61] [REPORTING REQUIREMENTS.] 
103.8      The commissioner of human services, in cooperation with the 
103.9   commissioner of economic security, shall develop reporting 
103.10  requirements for county agencies and employment and training 
103.11  service providers according to section 256.01, subdivision 2, 
103.12  paragraph (17).  Reporting requirements must, to the extent 
103.13  possible, use existing client tracking systems and must be 
103.14  within the limits of funds available.  The requirements must 
103.15  include summary information necessary for state agencies and the 
103.16  legislature to evaluate the effectiveness of the services. 
103.17     Sec. 47.  [256J.62] [ALLOCATION OF COUNTY EMPLOYMENT AND 
103.18  TRAINING SERVICES BLOCK GRANT.] 
103.19     Subdivision 1.  [ALLOCATION.] Money appropriated for MFIP-S 
103.20  employment and training services must be allocated to counties 
103.21  as specified in this section. 
103.22     Subd. 2.  [COOPERATIVE SERVICE PROVISION FUNDING.] (a) 
103.23  County agencies in counties with a population of less than 
103.24  20,000, according to the most recent publication of the 
103.25  Minnesota state demographer's population and household estimates 
103.26  report, that enter into or currently have contractual agreements 
103.27  with at least one other county to cooperatively offer program 
103.28  participants the choice of at least two employment and training 
103.29  service providers shall receive additional employment and 
103.30  training funds as specified in paragraph (b).  To qualify, the 
103.31  cooperative agreements must be entered into by May 1 of the 
103.32  state fiscal year preceding the state fiscal year for which the 
103.33  allocation is being made. 
103.34     (b) For any county eligible under paragraph (a), the 
103.35  commissioner shall allocate an amount equivalent to 25 percent 
103.36  of the county's previous year's employment and training 
104.1   expenditures for STRIDE, MFIP, MFIP-R, and MFIP-S. 
104.2      (c) The sum of the amounts allocated in paragraph (b) shall 
104.3   be subtracted from the total amount available for MFIP-S 
104.4   employment and training.  The remaining employment and training 
104.5   funds shall be allocated in the manner specified in subdivisions 
104.6   3 and 4. 
104.7      Subd. 3.  [GUARANTEED FLOOR.] Money shall be allocated to 
104.8   counties in an amount equal to the county's guaranteed floor.  
104.9   The county's guaranteed allocation floor shall be calculated as 
104.10  follows: 
104.11     (1) for fiscal 1998, the guaranteed allocation floor shall 
104.12  be calculated by multiplying the county's STRIDE allocation 
104.13  received for state fiscal year 1997 by 90 percent; 
104.14     (2) for each subsequent fiscal year, the guaranteed 
104.15  allocation floor shall be calculated by multiplying the county's 
104.16  MFIP-S employment and training services allocation received the 
104.17  previous state fiscal year by 90 percent; and 
104.18     (3) if the amount of funds available for allocation is less 
104.19  than the amount allocated to all counties for the previous 
104.20  fiscal year, each county's previous year allocation shall be 
104.21  reduced in proportion to the reduction in statewide funding for 
104.22  the purpose of establishing the guaranteed floor. 
104.23     Subd. 4.  [ALLOCATION OF BALANCE OF FUNDS.] If there remain 
104.24  funds to allocate after establishing each county's guaranteed 
104.25  floor under the provisions in subdivision 2, the balance of 
104.26  funds shall be allocated as follows: 
104.27     (1) for state fiscal year 1998, the remaining funds shall 
104.28  be allocated based on the county's average number of AFDC and 
104.29  family general assistance cases as compared to the statewide 
104.30  total number of cases.  The average number of cases shall be 
104.31  based on counts of cases as of March 31, June 30, September 30, 
104.32  and December 31 of calendar year 1996; 
104.33     (2) for state fiscal year 1999, the remaining funds shall 
104.34  be allocated based on the county's average number of AFDC, 
104.35  family general assistance, MFIP, MFIP-R, and MFIP-S cases as 
104.36  compared to the statewide total number of cases.  The average 
105.1   number of cases shall be based on counts of MFIP cases as of 
105.2   March 31, June 30, September 30, and December 31 of calendar 
105.3   year 1997; and 
105.4      (3) for all subsequent state fiscal years, the remaining 
105.5   funds shall be allocated based on the county's average number of 
105.6   MFIP-S cases as compared to the statewide total number of 
105.7   cases.  The average number of cases must be based on counts of 
105.8   MFIP-S cases as of March 31, June 30, September 30, and December 
105.9   31 of the previous calendar year. 
105.10     Subd. 5.  [ADMINISTRATIVE ACTIVITIES LIMIT.] No more than 
105.11  15 percent of the money allocated under this section may be used 
105.12  for administrative activities. 
105.13     Subd. 6.  [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 
105.14  REFUGEES.] Funds appropriated to cover the costs of bilingual 
105.15  employment and training services to refugees shall be allocated 
105.16  to county agencies as follows: 
105.17     (1) for state fiscal year 1998, the allocation shall be 
105.18  based on the county's proportion of the total statewide number 
105.19  of AFDC or MFIP refugee cases in the previous fiscal year.  
105.20  Counties with less than one percent of the statewide number of 
105.21  AFDC or MFIP refugee cases shall not receive an allocation of 
105.22  bilingual employment and training services funds; and 
105.23     (2) for each subsequent fiscal year, the allocation shall 
105.24  be based on the county's proportion of the total statewide 
105.25  number of MFIP-S refugee cases in the previous fiscal year.  
105.26  Counties with less than one percent of the statewide number of 
105.27  MFIP-S refugee cases shall not receive an allocation of 
105.28  bilingual employment and training services funds. 
105.29     Subd. 7.  [WORK LITERACY LANGUAGE PROGRAMS.] Funds 
105.30  appropriated to cover the costs of work literacy language 
105.31  programs to non-English speaking recipients shall be allocated 
105.32  to county agencies as follows: 
105.33     (1) for state fiscal year 1998, the allocation shall be 
105.34  based on the county's proportion of the total statewide number 
105.35  of AFDC or MFIP cases in the previous fiscal year where the lack 
105.36  of English is a barrier to employment.  Counties with less than 
106.1   two percent of the statewide number of AFDC or MFIP cases where 
106.2   the lack of English is a barrier to employment shall not receive 
106.3   an allocation of the work literacy language program funds; and 
106.4      (2) for each subsequent fiscal year, the allocation shall 
106.5   be based on the county's proportion of the total statewide 
106.6   number of MFIP-S cases in the previous fiscal year where the 
106.7   lack of English is a barrier to employment.  Counties with less 
106.8   than two percent of the statewide number of MFIP-S cases where 
106.9   the lack of English is a barrier to employment shall not receive 
106.10  an allocation of the work literacy language program funds. 
106.11     Subd. 8.  [REALLOCATION.] The commissioner of human 
106.12  services shall review county agency expenditures of MFIP-S 
106.13  employment and training services funds at the end of the third 
106.14  quarter of the first year of the biennium and each quarter after 
106.15  that and may reallocate unencumbered or unexpended money 
106.16  appropriated under this section to those county agencies that 
106.17  can demonstrate a need for additional money. 
106.18     Subd. 9.  [CONTINUATION OF CERTAIN SERVICES.] At the 
106.19  request of the caregiver, the county may continue to provide 
106.20  case management, counseling or other support services to a 
106.21  participant following the participant's achievement of the 
106.22  employment goal, for up to six months following termination of 
106.23  the participant's eligibility for MFIP-S. 
106.24     A county may expend funds for a specific employment and 
106.25  training service for the duration of that service to a 
106.26  participant if the funds are obligated or expended prior to the 
106.27  participant losing MFIP-S eligibility. 
106.28     Sec. 48.  [256J.645] [INDIAN TRIBE MFIP-S EMPLOYMENT AND 
106.29  TRAINING.] 
106.30     Subdivision 1.  [AUTHORIZATION TO ENTER INTO 
106.31  AGREEMENTS.] The commissioner may enter into agreements with 
106.32  federally recognized Indian tribes with a reservation in the 
106.33  state to provide MFIP-S employment and training services to 
106.34  members of the Indian tribe and to other caregivers who are a 
106.35  part of the tribal member's MFIP-S assistance unit.  For 
106.36  purposes of this section, "Indian tribe" means a tribe, band, 
107.1   nation, or other federally recognized group or community of 
107.2   Indians.  The commissioner may also enter into an agreement with 
107.3   a consortium of Indian tribes providing the governing body of 
107.4   each Indian tribe in the consortium complies with the provisions 
107.5   of this section. 
107.6      Subd. 2.  [TRIBAL REQUIREMENTS.] The Indian tribe must: 
107.7      (1) agree to fulfill the responsibilities provided under 
107.8   the employment and training component of MFIP-S regarding 
107.9   operation of MFIP-S employment and training services, as 
107.10  designated by the commissioner; 
107.11     (2) operate its employment and training services program 
107.12  within a geographic service area not to exceed the counties 
107.13  within which a border of the reservation falls; 
107.14     (3) operate its program in conformity with section 13.46 
107.15  and any applicable federal regulations in the use of data about 
107.16  MFIP-S recipients; 
107.17     (4) coordinate operation of its program with the county 
107.18  agency, Job Training Partnership Act programs, and other support 
107.19  services or employment-related programs in the counties in which 
107.20  the tribal unit's program operates; 
107.21     (5) provide financial and program participant activity 
107.22  recordkeeping and reporting in the manner and using the forms 
107.23  and procedures specified by the commissioner and permit 
107.24  inspection of its program and records by representatives of the 
107.25  state; and 
107.26     (6) have the Indian tribe's employment and training service 
107.27  provider certified by the commissioner of economic security, or 
107.28  approved by the county. 
107.29     Subd. 3.  [FUNDING.] If the commissioner and an Indian 
107.30  tribe are parties to an agreement under this subdivision, the 
107.31  agreement may annually provide to the Indian tribe the funding 
107.32  amount in clause (1) or (2): 
107.33     (1) if the Indian tribe operated a tribal STRIDE program 
107.34  during state fiscal year 1997, the amount to be provided is the 
107.35  amount the Indian tribe received from the state for operation of 
107.36  its tribal STRIDE program in state fiscal year 1997, except that 
108.1   the amount provided for a fiscal year may increase or decrease 
108.2   in the same proportion that the total amount of state funds 
108.3   available for MFIP-S employment and training services increased 
108.4   or decreased that fiscal year.  No additional funds shall be 
108.5   provided to the tribe under this clause for the first year of 
108.6   expansion of MFIP beyond the pilot counties; or 
108.7      (2) if the Indian tribe did not operate a tribal STRIDE 
108.8   program during state fiscal year 1997, the commissioner may 
108.9   provide to the Indian tribe for the first year of operations the 
108.10  amount determined by multiplying the state allocation for MFIP-S 
108.11  employment and training services to each county agency in the 
108.12  Indian tribe's service delivery area by the percentage of MFIP-S 
108.13  recipients in that county who were members of the Indian tribe 
108.14  during the previous state fiscal year.  The resulting amount 
108.15  shall also be the amount that the commissioner may provide to 
108.16  the Indian tribe annually thereafter through an agreement under 
108.17  this subdivision, except that the amount provided for a fiscal 
108.18  year may increase or decrease in the same proportion that the 
108.19  total amount of state funds available for MFIP-S employment and 
108.20  training services increased or decreased that fiscal year.  No 
108.21  additional funds shall be provided to the tribe under this 
108.22  clause for the first year of expansion of MFIP beyond the pilot 
108.23  counties. 
108.24     Subd. 4.  [COUNTY AGENCY REQUIREMENT.] Indian tribal 
108.25  members receiving MFIP-S benefits and residing in the service 
108.26  area of an Indian tribe operating employment and training 
108.27  services under an agreement with the commissioner must be 
108.28  referred by county agencies in the service area to the Indian 
108.29  tribe for employment and training services. 
108.30     Sec. 49.  [256J.65] [THE SELF-EMPLOYMENT INVESTMENT 
108.31  DEMONSTRATION PROGRAM (SEID).] 
108.32     (a) A caregiver who enrolls and participates in the SEID 
108.33  program as specified in section 268.95, may, at county option, 
108.34  be exempted from other employment and training participation 
108.35  requirements for a period of up to 24 months, except for the 
108.36  school attendance requirements as specified in section 256J.54.  
109.1      (b) The following income and resource considerations apply 
109.2   to SEID participants:  
109.3      (1) an unencumbered cash reserve fund, composed of proceeds 
109.4   from a SEID business, is not counted against the grant if those 
109.5   funds are reinvested in the business and the value of the 
109.6   business does not exceed $3,000.  The value of the business is 
109.7   determined by deducting outstanding encumbrances from retained 
109.8   business profit; and 
109.9      (2) the purchase of capital equipment and durable goods of 
109.10  an amount up to $3,000 during a 24-month project period is 
109.11  allowed as a business expense. 
109.12     (c) SEID participants with a county-approved employment 
109.13  plan are also eligible for employment and training services, 
109.14  including child care and transportation. 
109.15     Sec. 50.  [256J.66] [ON-THE-JOB TRAINING.] 
109.16     Subdivision 1.  [ESTABLISHING THE ON-THE-JOB TRAINING 
109.17  PROGRAM.] (a) County agencies may develop on-the-job training 
109.18  programs for MFIP-S caregivers who are participating in 
109.19  employment and training services.  A county agency that chooses 
109.20  to provide on-the-job training may make payments to employers 
109.21  for on-the-job training costs that, during the period of the 
109.22  training, must not exceed 50 percent of the wages paid by the 
109.23  employer to the participant.  The payments are deemed to be in 
109.24  compensation for the extraordinary costs associated with 
109.25  training participants under this section and in compensation for 
109.26  the costs associated with the lower productivity of the 
109.27  participants during training. 
109.28     (b) Provision of an on-the-job training program under the 
109.29  Job Training Partnership Act, in and of itself, does not qualify 
109.30  as an on-the-job training program under this section. 
109.31     Subd. 2.  [TRAINING AND PLACEMENT.] (a) County agencies 
109.32  shall limit the length of training based on the complexity of 
109.33  the job and the caregiver's previous experience and training.  
109.34  Placement in an on-the-job training position with an employer is 
109.35  for the purpose of training and employment with the same 
109.36  employer who has agreed to retain the person upon satisfactory 
110.1   completion of training. 
110.2      (b) Placement of any caregiver in an on-the-job training 
110.3   position must be compatible with the participant's assessment 
110.4   and the employability plan under section 256J.52. 
110.5      Sec. 51.  [256J.67] [COMMUNITY WORK EXPERIENCE.] 
110.6      Subdivision 1.  [ESTABLISHING THE COMMUNITY WORK EXPERIENCE 
110.7   PROGRAM.] To the extent of available resources, each county 
110.8   agency may establish and operate a work experience component for 
110.9   MFIP-S caregivers who are participating in employment and 
110.10  training services.  This option for county agencies supersedes 
110.11  the requirement in section 402(a)(1)(B)(iv) of the Social 
110.12  Security Act that caregivers who have received assistance for 
110.13  two months and who are not exempt from work requirements must 
110.14  participate in a work experience program.  The purpose of the 
110.15  work experience component is to enhance the caregiver's 
110.16  employability and self-sufficiency and to provide meaningful, 
110.17  productive work activities.  The county shall use this program 
110.18  for an individual after exhausting all other employment 
110.19  opportunities.  The county agency shall not require a caregiver 
110.20  to participate in the community work experience program unless 
110.21  the caregiver has been given an opportunity to participate in 
110.22  other work activities.  
110.23     Subd. 2.  [COMMISSIONER'S DUTIES.] The commissioner shall 
110.24  assist counties in the design and implementation of these 
110.25  components.  
110.26     Subd. 3.  [EMPLOYMENT OPTIONS.] (a) Work sites developed 
110.27  under this section are limited to projects that serve a useful 
110.28  public service such as:  health, social service, environmental 
110.29  protection, education, urban and rural development and 
110.30  redevelopment, welfare, recreation, public facilities, public 
110.31  safety, community service, services to aged or disabled 
110.32  citizens, and child care.  To the extent possible, the prior 
110.33  training, skills, and experience of a caregiver must be 
110.34  considered in making appropriate work experience assignments. 
110.35     (b) Structured, supervised volunteer work with an agency or 
110.36  organization, which is monitored by the county service provider, 
111.1   may, with the approval of the county agency, be used as a work 
111.2   experience placement. 
111.3      (c) As a condition of placing a caregiver in a program 
111.4   under this section, the county agency shall first provide the 
111.5   caregiver the opportunity: 
111.6      (1) for placement in suitable subsidized or unsubsidized 
111.7   employment through participation in a job search; or 
111.8      (2) for placement in suitable employment through 
111.9   participation in on-the-job training, if such employment is 
111.10  available. 
111.11     Subd. 4.  [EMPLOYMENT PLAN.] (a) The caretaker's employment 
111.12  plan must include the length of time needed in the work 
111.13  experience program, the need to continue job-seeking activities 
111.14  while participating in work experience, and the caregiver's 
111.15  employment goals. 
111.16     (b) After each six months of a caregiver's participation in 
111.17  a work experience job placement, and at the conclusion of each 
111.18  work experience assignment under this section, the county agency 
111.19  shall reassess and revise, as appropriate, the caregiver's 
111.20  employment plan. 
111.21     (c) A caregiver has good cause under section 256J.57, 
111.22  subdivision 1, for failure to cooperate with a work experience 
111.23  job placement if, in the judgment of the employment and training 
111.24  service provider, the reason for failure is reasonable and 
111.25  justified. 
111.26     (d) The county agency shall limit the maximum number of 
111.27  hours any participant may work under this section to the amount 
111.28  of the transitional standard divided by the federal or 
111.29  applicable state minimum wage, whichever is higher.  After a 
111.30  participant has been assigned to a position for nine months, the 
111.31  participant may not continue in that assignment unless the 
111.32  maximum number of hours a participant works is no greater than 
111.33  the amount of the transitional standard divided by the rate of 
111.34  pay for individuals employed in the same or similar occupations 
111.35  by the same employer at the same site.  This limit does not 
111.36  apply if it would prevent a participant from counting toward the 
112.1   federal work participation rate. 
112.2      Sec. 52.  [256J.68] [INJURY PROTECTION FOR WORK EXPERIENCE 
112.4   PARTICIPANTS.] 
112.5      Subdivision 1.  [APPLICABILITY.] Payment of any claims 
112.6   resulting from an alleged injury or death of a person 
112.7   participating in a county or a tribal community work experience 
112.8   program approved by the commissioner must be determined in 
112.9   accordance with this section.  This determination method applies 
112.10  to work experience programs authorized by the commissioner for 
112.11  persons applying for or receiving cash assistance and food 
112.12  stamps, and to the Minnesota parent's fair share program and the 
112.13  community service program under section 518.551, subdivision 5a, 
112.14  in a county with an approved community investment program for 
112.15  obligors. 
112.16     Subd. 2.  [INVESTIGATION OF THE CLAIM.] Claims that are 
112.17  subject to this section must be investigated by the county 
112.18  agency or the tribal program responsible for supervising the 
112.19  work to determine whether the claimed injury occurred, whether 
112.20  the claimed medical expenses are reasonable, and whether the 
112.21  loss is covered by the claimant's insurance.  If insurance 
112.22  coverage is established, the county agency or tribal program 
112.23  shall submit the claim to the appropriate insurance entity for 
112.24  payment.  The investigating county agency or tribal program 
112.25  shall submit all valid claims, in the net amount of any 
112.26  insurance payments, to the department of human services. 
112.27     Subd. 3.  [SUBMISSION OF CLAIM.] The commissioner shall 
112.28  submit all claims for permanent partial disability compensation 
112.29  to the commissioner of labor and industry.  The commissioner of 
112.30  labor and industry shall review all submitted claims and 
112.31  recommend to the department of human services an amount of 
112.32  compensation comparable to that which would be provided under 
112.33  the permanent partial disability compensation schedule of 
112.34  section 176.101, subdivision 2a. 
112.35     Subd. 4.  [CLAIMS LESS THAN $1,000.] The commissioner shall 
112.36  approve a claim of $1,000 or less for payment if appropriated 
112.37  funds are available, if the county agency or tribal program 
113.1   responsible for supervising the work has made the determinations 
113.2   required by this section, and if the work program was operated 
113.3   in compliance with the safety provisions of this section.  The 
113.4   commissioner shall pay the portion of an approved claim of 
113.5   $1,000 or less that is not covered by the claimant's insurance 
113.6   within three months of the date of submission.  On or before 
113.7   February 1 of each legislative session, the commissioner shall 
113.8   submit to the appropriate committees of the senate and the house 
113.9   of representatives a list of claims of $1,000 or less paid 
113.10  during the preceding calendar year and shall be reimbursed by 
113.11  legislative appropriation for any claims that exceed the 
113.12  original appropriation provided to the commissioner to operate 
113.13  this program.  Any unspent money from this appropriation shall 
113.14  carry over to the second year of the biennium, and any unspent 
113.15  money remaining at the end of the second year shall be returned 
113.16  to the state general fund. 
113.17     Subd. 5.  [CLAIMS MORE THAN $1,000.] On or before February 
113.18  1 of each year, the commissioner shall submit to the appropriate 
113.19  committees of the senate and the house of representatives a list 
113.20  of claims in excess of $1,000 and a list of claims of $1,000 or 
113.21  less that were submitted to but not paid by the commissioner, 
113.22  together with any recommendations of appropriate compensation.  
113.23  These claims shall be heard and determined by the appropriate 
113.24  committees of the senate and house of representatives and, if 
113.25  approved, must be paid under the legislative claims procedure. 
113.26     Subd. 6.  [COMPENSATION FOR CERTAIN COSTS.] Compensation 
113.27  paid under this section is limited to reimbursement for 
113.28  reasonable medical expenses and permanent partial disability 
113.29  compensation for disability in like amounts as allowed in 
113.30  section 176.101, subdivision 2a.  Compensation for injuries 
113.31  resulting in death shall include reasonable medical expenses and 
113.32  burial expenses in addition to payment to the participant's 
113.33  estate in an amount up to $200,000.  No compensation shall be 
113.34  paid under this section for pain and suffering, lost wages, or 
113.35  other benefits provided in chapter 176.  Payments made under 
113.36  this section shall be reduced by any proceeds received by the 
114.1   claimant from any insurance policy covering the loss.  For the 
114.2   purposes of this section, "insurance policy" does not include 
114.3   the medical assistance program authorized under chapter 256B or 
114.4   the general assistance medical care program authorized under 
114.5   chapter 256D. 
114.6      Subd. 7.  [EXCLUSIVE PROCEDURE.] The procedure established 
114.7   by this section is exclusive of all other legal, equitable, and 
114.8   statutory remedies against the state, its political 
114.9   subdivisions, or employees of the state or its political 
114.10  subdivisions.  The claimant shall not be entitled to seek 
114.11  damages from any state, county, tribal, or reservation insurance 
114.12  policy or self-insurance program. 
114.13     Subd. 8.  [INVALID CLAIMS.] A claim is not valid for 
114.14  purposes of this section if the county agency responsible for 
114.15  supervising the work cannot verify to the commissioner: 
114.16     (1) that appropriate safety training and information is 
114.17  provided to all persons being supervised by the agency under 
114.18  this section; and 
114.19     (2) that all programs involving work by those persons 
114.20  comply with federal Occupational Safety and Health 
114.21  Administration and state department of labor and industry safety 
114.22  standards.  A claim that is not valid because of failure to 
114.23  verify safety training or compliance with safety standards will 
114.24  not be paid by the department of human services or through the 
114.25  legislative claims process and must be heard, decided, and paid, 
114.26  if appropriate, by the local government unit or tribal JOBS 
114.27  program responsible for supervising the work of the claimant. 
114.28     Sec. 53.  [256J.69] [GRANT DIVERSION.] 
114.29     Subdivision 1.  [ESTABLISHING THE GRANT DIVERSION 
114.30  PROGRAM.] (a) County agencies may develop grant diversion 
114.31  programs for MFIP-S participants participating in employment and 
114.32  training services.  A county agency that chooses to provide 
114.33  grant diversion may divert to an employer part or all of the 
114.34  MFIP-S cash payment for the participant's assistance unit, in 
114.35  compliance with federal regulations and laws.  Such payments to 
114.36  an employer are to subsidize employment for MFIP-S caregivers as 
115.1   an alternative to public assistance payments. 
115.2      (b) In addition to diverting the MFIP-S grant to the 
115.3   employer, employment and training funds may be used to subsidize 
115.4   the grant diversion placement. 
115.5      Subd. 2.  [TRAINING AND PLACEMENT.] (a) County agencies 
115.6   shall limit the length of training to nine months.  Placement in 
115.7   a grant diversion training position with an employer is for the 
115.8   purpose of training and employment with the same employer who 
115.9   has agreed to retain the person upon satisfactory completion of 
115.10  training. 
115.11     (b) Placement of any caregiver in a grant diversion 
115.12  subsidized training position must be compatible with the 
115.13  assessment and the employment plan or the employability 
115.14  development plan established for the recipient under section 
115.15  256J.52 or 256K.03, subdivision 8. 
115.16     Sec. 54.  [256J.72] [NONDISPLACEMENT IN WORK ACTIVITIES.] 
115.17     Subdivision 1.  [NONDISPLACEMENT PROTECTION.] For job 
115.18  assignments under jobs programs established under this chapter 
115.19  or chapter 256, 256D, or 256K, the county agency must provide 
115.20  written notification to and obtain the written concurrence of 
115.21  the appropriate exclusive bargaining representatives with 
115.22  respect to job duties covered under collective bargaining 
115.23  agreements and ensure that no work assignment under this chapter 
115.24  or chapter 256, 256D, or 256K results in: 
115.25     (1) termination, layoff, or reduction of the work hours of 
115.26  an employee for the purpose of hiring an individual under this 
115.27  section; 
115.28     (2) the hiring of an individual if any other person is on 
115.29  layoff, including seasonal layoff, from the same or a 
115.30  substantially equivalent job; 
115.31     (3) any infringement of the promotional opportunities of 
115.32  any currently employed individual; 
115.33     (4) the impairment of existing contract for services of 
115.34  collective bargaining agreements; or 
115.35     (5) a participant filling an established unfilled position 
115.36  vacancy, except for on-the-job training. 
116.1      The written notification must be provided to the 
116.2   appropriate exclusive bargaining representatives at least 14 
116.3   days in advance of placing recipients in temporary public 
116.4   service employment.  The notice must include the number of 
116.5   individuals involved, their work locations and anticipated hours 
116.6   of work, a summary of the tasks to be performed, and a 
116.7   description of how the individuals will be trained and 
116.8   supervised. 
116.9      Subd. 2.  [DISPUTE RESOLUTION.] (a) If there is a dispute 
116.10  between an exclusive bargaining representative and a county 
116.11  provider or employer over whether job duties are within the 
116.12  scope of a collective bargaining unit, the exclusive bargaining 
116.13  representative, the county, the provider, or the employer may 
116.14  petition the bureau of mediation services to determine if the 
116.15  job duties are within the scope of a collective bargaining unit, 
116.16  and the bureau shall render a binding decision. 
116.17     (b) In the event of a dispute under this section, the 
116.18  parties may: 
116.19     (1) use a grievance and arbitration procedure of an 
116.20  existing collective bargaining agreement to process a dispute 
116.21  over whether a violation of the nondisplacement provisions has 
116.22  occurred; or 
116.23     (2) if no grievance and arbitration procedure is in place, 
116.24  either party may submit the dispute to the bureau.  The 
116.25  commissioner of the bureau of mediation services shall establish 
116.26  a procedure for a neutral, binding resolution of the dispute. 
116.27     Subd. 3.  [STATUS OF PARTICIPANT.] A participant may not 
116.28  work in a temporary public service or community service job for 
116.29  a public employer for more than 67 working days or 536 hours, 
116.30  whichever is greater, as part of a work program established 
116.31  under this chapter or chapter 256, 256D, or 256K.  A participant 
116.32  who exceeds the time limits in this paragraph is a public 
116.33  employee, as that term is used in chapter 179A.  Upon the 
116.34  written request of the exclusive bargaining representative, a 
116.35  county or public service employer shall make available to the 
116.36  affected exclusive bargaining representative a report of hours 
117.1   worked by participants in temporary public service or community 
117.2   service jobs. 
117.3      Sec. 55.  [256J.74] [RELATIONSHIP TO OTHER PROGRAMS.] 
117.4      Subdivision 1.  [SOCIAL SERVICES.] The county agency shall 
117.5   refer a participant for social services that are offered in the 
117.6   county of financial responsibility according to the criteria 
117.7   established by that county agency under Minnesota Rules, parts 
117.8   9550.0010 to 9550.0092.  A payment issued from title XX, child 
117.9   welfare funds, or county funds in a payment month must not 
117.10  restrict MFIP-S eligibility or reduce the monthly assistance 
117.11  payment for that participant. 
117.12     Subd. 2.  [CONCURRENT ELIGIBILITY, LIMITATIONS.] A county 
117.13  agency must not count an applicant or participant as a member of 
117.14  more than one assistance unit in a given payment month, except 
117.15  as provided in paragraphs (a) and (b). 
117.16     (a) A participant who is a member of an assistance unit in 
117.17  this state is eligible to be included in a second assistance 
117.18  unit in the first full month that the participant leaves the 
117.19  first assistance unit and lives with a second assistance unit. 
117.20     (b) An applicant whose needs are met through foster care 
117.21  that is reimbursed under title IV-E for the first part of an 
117.22  application month is eligible to receive assistance for the 
117.23  remaining part of the month in which the applicant returns 
117.24  home.  Title IV-E payments and assistance payments must be 
117.25  considered prorated payments rather than a duplication of MFIP-S 
117.26  need. 
117.27     Subd. 3.  [EMERGENCY ASSISTANCE, ASSISTANCE UNIT WITH A 
117.28  MINOR CHILD.] An MFIP-S assistance unit with a minor child or a 
117.29  pregnant woman without a minor child is eligible for emergency 
117.30  assistance when the assistance unit meets the requirements in 
117.31  section 256J.48, subdivision 2. 
117.32     Subd. 4.  [MEDICAL ASSISTANCE.] Medical assistance 
117.33  eligibility for MFIP-S will be determined as described in 
117.34  chapter 256B. 
117.35     Sec. 56.  [256J.75] [COUNTY OF FINANCIAL RESPONSIBILITY 
117.36  POLICIES.] 
118.1      Subdivision 1.  [COUNTY OF FINANCIAL RESPONSIBILITY.] The 
118.2   county of financial responsibility is the county in which a 
118.3   minor child or pregnant woman lives on the date the application 
118.4   is signed, unless subdivision 4 applies.  When more than one 
118.5   county is financially responsible for the members of an 
118.6   assistance unit, financial responsibility must be assigned to a 
118.7   single county beginning the first day of the calendar month 
118.8   after the assistance unit members are required to be in a single 
118.9   assistance unit.  Financial responsibility must be assigned to 
118.10  the county that was initially responsible for the assistance 
118.11  unit member with the earliest date of application.  The county 
118.12  in which the assistance unit is currently residing becomes 
118.13  financially responsible for the entire assistance unit beginning 
118.14  two full calendar months after the month in which financial 
118.15  responsibility was consolidated in one county. 
118.16     Subd. 2.  [CHANGE IN RESIDENCE.] (a) When an assistance 
118.17  unit moves from one county to another and continues to receive 
118.18  assistance, the new county of residence becomes the county of 
118.19  financial responsibility when that assistance unit has lived in 
118.20  that county in nonexcluded status for two full calendar months.  
118.21  "Nonexcluded status" means the period of residence that is not 
118.22  considered excluded time under section 256G.02, subdivision 6.  
118.23  When a minor child moves from one county to another to reside 
118.24  with a different caregiver, the caregiver in the former county 
118.25  is eligible to receive assistance for that child only through 
118.26  the last day of the month of the move.  The caregiver in the new 
118.27  county becomes eligible to receive assistance for the child the 
118.28  first day of the month following the move or the date of 
118.29  application, whichever is later. 
118.30     (b) When an applicant moves from one county to another 
118.31  while the application is pending, the county where application 
118.32  first occurred is the county of financial responsibility until 
118.33  the applicant has lived in the new county for two full calendar 
118.34  months, unless the applicant's move is covered under section 
118.35  256G.02, subdivision 6. 
118.36     Subd. 3.  [RESPONSIBILITY FOR INCORRECT ASSISTANCE 
119.1   PAYMENTS.] A county of residence, when different from the county 
119.2   of financial responsibility, will be charged by the commissioner 
119.3   for the value of incorrect assistance payments and medical 
119.4   assistance paid to or on behalf of a person who was not eligible 
119.5   to receive that amount.  Incorrect payments include payments to 
119.6   an ineligible person or family resulting from decisions, 
119.7   failures to act, miscalculations, or overdue recertification.  
119.8   However, financial responsibility does not accrue for a county 
119.9   when the recertification is overdue at the time the referral is 
119.10  received by the county of residence or when the county of 
119.11  financial responsibility does not act on the recommendation of 
119.12  the county of residence.  When federal or state law requires 
119.13  that medical assistance continue after assistance ends, this 
119.14  subdivision also governs financial responsibility for the 
119.15  extended medical assistance. 
119.16     Subd. 4.  [EXCLUDED TIME.] When an applicant or participant 
119.17  resides in an excluded time facility as described in section 
119.18  256G.02, subdivision 6, the county that is financially 
119.19  responsible for the applicant or participant is the county in 
119.20  which the applicant or participant last resided outside such a 
119.21  facility immediately before entering the facility.  When an 
119.22  applicant or participant has not resided in this state for any 
119.23  time other than excluded time as defined in section 256G.02, 
119.24  subdivision 6, the county that is financially responsible for 
119.25  the applicant or participant is the county in which the 
119.26  applicant or participant resides on the date the application is 
119.27  signed. 
119.28     Sec. 57.  [256J.76] [COUNTY ADMINISTRATIVE AID.] 
119.29     Subdivision 1.  [ADMINISTRATIVE FUNCTIONS.] Beginning July 
119.30  1, 1997, counties will receive federal funds from the TANF block 
119.31  grant for use in supporting eligibility, fraud control, and 
119.32  other related administrative functions.  The federal funds 
119.33  available for distribution, as determined by the commissioner, 
119.34  must be an amount equal to federal administrative aid 
119.35  distributed for fiscal year 1996 under titles IV-A and IV-F of 
119.36  the Social Security Act in effect prior to October 1, 1996.  
120.1   This amount must include the amount paid for local 
120.2   collaboratives under sections 245.4932 and 256F.13, but must not 
120.3   include administrative aid associated with child care under 
120.4   section 119B.05, with emergency assistance intensive family 
120.5   preservation services under section 256.8711, with 
120.6   administrative activities as part of the employment and training 
120.7   services under section 256.736, or with fraud prevention 
120.8   investigation activities under section 256.983. 
120.9      Subd. 2.  [ALLOCATION OF COUNTY FUNDS.] The commissioner 
120.10  shall determine and allocate the funds available to each county, 
120.11  on a calendar year basis, proportional to the amount paid to 
120.12  each county for fiscal year 1996, excluding the amount paid for 
120.13  local collaboratives under sections 245.4932 and 256F.13.  For 
120.14  the period beginning July 1, 1997, and ending December 31, 1998, 
120.15  each county shall receive 150 percent of its base year 
120.16  allocation. 
120.17     Subd. 3.  [MONTHLY PAYMENTS TO COUNTIES.] The commissioner 
120.18  shall pay counties monthly as federal funds are available.  The 
120.19  commissioner may certify the payments for the first three months 
120.20  of a calendar year. 
120.21     Subd. 4.  [REPORTING REQUIREMENT.] The commissioner shall 
120.22  specify requirements for reporting according to section 256.01, 
120.23  subdivision 2, paragraph (17).  Each county shall be reimbursed 
120.24  at a rate of 50 percent of eligible expenditures up to the limit 
120.25  of its allocation. 
120.26     Sec. 58.  [NOTICE AND REFERRAL PROCEDURES FOR DOMESTIC 
120.27  VIOLENCE VICTIMS.] 
120.28     The commissioner of human services shall develop procedures 
120.29  for the county agencies and their contractors to identify 
120.30  victims of domestic violence.  The procedures must provide, at a 
120.31  minimum, universal notification to all applicants and recipients 
120.32  of MFIP-S that: 
120.33     (1) referrals to counseling and supportive services are 
120.34  available for victims of domestic violence; and 
120.35     (2) victims of domestic violence are exempt from the 
120.36  60-month limit on assistance while the individual is complying 
121.1   with an approved safety plan, as defined in Minnesota Statutes, 
121.2   section 256J.49, subdivision 11.  Notification must be in 
121.3   writing and orally at the time of application and 
121.4   recertification, when the individual is referred to the title 
121.5   IV-D child support agency, and at the beginning of any job 
121.6   training or work placement assistance program. 
121.7      Sec. 59.  [COUNTY PERFORMANCE STANDARDS.] 
121.8      (a) Beginning July 1, 1998, and each quarter thereafter, 
121.9   the commissioner of human services shall inform all counties of 
121.10  each county's performance on the following measures: 
121.11     (1) MFIP-S caseload reduction; 
121.12     (2) average placement wage rate; 
121.13     (3) rate of job retention after three months; 
121.14     (4) placement rate into unsubsidized jobs; 
121.15     (5) federal participation requirements as specified in 
121.16  title 1 of Public Law Number 104-193 of the Personal 
121.17  Responsibility and Work Opportunity Act of 1996; 
121.18     (6) the average length of time an individual receives 
121.19  public assistance, beginning with new MFIP-S applicants, and the 
121.20  rate of recidivism; and 
121.21     (7) the cost per placement of an individual in unsubsidized 
121.22  employment. 
121.23     (b) By January 1, 1998, the counties and the commissioner 
121.24  shall establish performance standards for each of the measures 
121.25  in paragraph (a). 
121.26     (c) By July 1, 1998, the counties and the commissioner 
121.27  shall develop a plan to allocate, if such sanctions occur, 
121.28  federal sanctions between the state and counties resulting from 
121.29  a failure to meet the performance standards specified in title 1 
121.30  of Public Law Number 104-193 of the Personal Responsibility and 
121.31  Work Opportunity Act of 1996. 
121.32     (d) The commissioner shall report the plan to the 
121.33  legislature by October 1, 1998. 
121.34     Sec. 60.  [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 
121.35     The legislature makes the following findings: 
121.36     (a) The legislature is statutorily required to balance the 
122.1   state budget. 
122.2      (b) The task of balancing the state budget is made 
122.3   difficult in the area of the new federal welfare reform program 
122.4   for needy families due to the dramatic change in program design 
122.5   that this state and all other states must experience, rendering 
122.6   historical data on client behavior, interstate migration, and 
122.7   welfare spending patterns of dubious value. 
122.8      (c) Many states are using the flexibility given to them 
122.9   under the federal welfare reform bill to enact more restrictive 
122.10  programs than Minnesota. 
122.11     (d) Minnesota county human service agencies have reported 
122.12  to the commissioner of human services verified cases of families 
122.13  moving from other states to this state at least in part because 
122.14  this state has higher public assistance benefits. 
122.15     (e) Within the state's limited resources, the legislature 
122.16  wishes to manage funds appropriated under this part to best 
122.17  provide for needy Minnesota families and their children. 
122.18     (f) To that end, the legislature has adopted a policy of 
122.19  requiring families to be in this state for at least 30 days 
122.20  before being eligible for benefits and providing families in 
122.21  which no mandatory member has resided in Minnesota for the 
122.22  previous 12 months a benefit based on the grant they would have 
122.23  received had they applied for benefits in their previous state 
122.24  of residence. 
122.25     (g) Therefore, if the policy designed to make welfare 
122.26  benefits a neutral factor in the decision to move to Minnesota 
122.27  and to best manage the benefit appropriation for needy Minnesota 
122.28  families and their children, while providing a safety net for 
122.29  recent interstate migrants, is enjoined or otherwise prevented 
122.30  from being implemented, the commissioner shall replace the 
122.31  benefit standards in Minnesota Statutes, section 256J.24, 
122.32  subdivision 5, with the following standards: 
122.33       Number of Eligible People          Standard
122.34                     1                      $228
122.35                     2                      $393
122.36                     3                      $500
123.1                      4                      $595
123.2                      5                      $679
123.3                      6                      $781
123.4                      7                      $851
123.5                      8                      $947
123.6                      9                    $1,042
123.7                     10                    $1,137
123.8                over 10         Add $93 per additional member
123.9      Sec. 61.  [TRANSFER FUNDING.] 
123.10     Effective July 1, 1997, all funding related to the child 
123.11  care assistance programs under Minnesota Statutes, section 
123.12  256.035, subdivision 8, is transferred to the commissioner of 
123.13  children, families, and learning. 
123.14     Sec. 62.  [TRIBAL EMPLOYMENT AND TRAINING PROGRAM; REPORT.] 
123.15     Subdivision 1.  [AUTHORITY.] The commissioner of human 
123.16  services, in conjunction with Indian tribes in the state, shall 
123.17  develop and present to the legislature a plan for providing 
123.18  state funds in support of a family assistance program 
123.19  administered by Indian tribes that have a reservation in this 
123.20  state and have federal approval to operate a tribal program.  
123.21  This plan must identify the primary arrangements needed to 
123.22  effect tribal administration and needed funding, including 
123.23  agreements with a consortium of tribes, that accurately reflect 
123.24  the state funding levels for Indian people as would otherwise be 
123.25  available to MFIP-S program recipients.  This plan must be 
123.26  developed consistent with the requirements set forth in the 
123.27  Personal Responsibility and Work Opportunity Reconciliation Act 
123.28  of 1996, Public Law Number 104-193, section 412(b)(1)(B).  For 
123.29  purposes of this section, "Indian tribe" means a tribe, band, 
123.30  nation, or other federally recognized group or community of 
123.31  Indians. 
123.32     Subd. 2.  [REPORT TO THE LEGISLATURE.] The plan referred to 
123.33  in subdivision 1 and any resulting proposal for legislation must 
123.34  be presented to the legislature by December 15, 1997. 
123.35     Subd. 3.  [TRIBAL AGREEMENTS.] Once the plan in subdivision 
123.36  1 is presented to and approved by the legislature and signed 
124.1   into law, the commissioner is authorized to enter into 
124.2   agreements with Indian tribes or consortia of tribes consistent 
124.3   with the plan. 
124.4      Subd. 4.  [TRIBAL AND STATE COORDINATION.] The commissioner 
124.5   shall consult with Indian tribes in the state when formulating 
124.6   general policies regarding the implementation of the state's 
124.7   public assistance program operated under title IV-A of the 
124.8   Social Security Act.  The commissioner shall take into 
124.9   consideration circumstances affecting Indians, including 
124.10  circumstances identified by Indian tribes, when designing the 
124.11  state's program.  The state shall provide Indians with equitable 
124.12  access to assistance as provided in the Personal Responsibility 
124.13  and Work Opportunity Reconciliation Act of 1996, Public Law 
124.14  Number 104-193, section 402(a)(5). 
124.15     Subd. 5.  [EMPLOYMENT TRAINING.] Nothing in this section 
124.16  precludes any Indian tribe in this state from participating in 
124.17  employment and training or child care programs otherwise 
124.18  available by law to Indian tribes under: 
124.19     (1) the MFIP program under Minnesota Statutes, sections 
124.20  256.031 to 256.0361, or its successor program; 
124.21     (2) project STRIDE under Minnesota Statutes, section 
124.22  256.736, or its successor program; 
124.23     (3) child care programs for tribal program participants; 
124.24  and 
124.25     (4) the Minnesota injury protection program. 
124.26     Subd. 6.  [TRIBAL SOVEREIGN STATUS.] Nothing in this 
124.27  section shall be construed to waive, modify, expand, or diminish 
124.28  the sovereignty of federally recognized Indian tribes, nor shall 
124.29  any Indian tribes be required in any way to deny their 
124.30  sovereignty or waive their immunities except as mandated by 
124.31  federal law as a requirement of entering into an agreement with 
124.32  the state under this section. 
124.33     Subd. 7.  [PLANNING.] The commissioner of human services 
124.34  shall assist tribes, in a collaborative effort, with the 
124.35  development of the plan under subdivision 1 and efforts 
124.36  associated with such development.  Such efforts shall include, 
125.1   but not be limited to, data collection regarding:  receipt of 
125.2   public assistance by Indians, unemployment rates within tribal 
125.3   service delivery areas, and dissemination of information and 
125.4   research.  The commissioner shall provide technical assistance 
125.5   to tribal welfare reform task force members and tribes regarding 
125.6   the implementation and operation of public assistance programs 
125.7   and assistance to tribes to develop the plan under subdivision 1.
125.8      Sec. 63.  [FORECASTING FUNDS.] 
125.9      For the assistance to families grants part of the budget, 
125.10  the commissioner of human services shall not expend more funds 
125.11  than the appropriations made available by the legislature.  
125.12  Appropriations made available must include the state 
125.13  appropriated funds and federal funds specified for this purpose 
125.14  and other available funds transferred from other accounts as 
125.15  allowed by Minnesota law.  Regardless of this limitation on 
125.16  expenditures, the total projected costs of this program must be 
125.17  forecasted and recognized in the fund balance. 
125.18     Sec. 64.  [APPLICABILITY.] 
125.19     The provisions of sections 7; 8; 12, subdivision 3; 15; 28, 
125.20  subdivision 5; 31; 32; 33, subdivision 2; 57; and 59 apply to 
125.21  the AFDC program from July 1, 1997, to November 30, 1997, and 
125.22  are effective December 1, 1997, with respect to MFIP-S. 
125.23     Sec. 65.  [REPEALER.] 
125.24     Minnesota Statutes 1996, sections 256.12, subdivisions 9, 
125.25  10, 14, 15, 20, 21, 22, and 23; 256.72; 256.73; 256.7341; 
125.26  256.7351; 256.7352; 256.7353; 256.7354; 256.7355; 256.7356; 
125.27  256.7357; 256.7358; 256.7359; 256.736, subdivision 19; 256.7365; 
125.28  256.7366; 256.7381; 256.7382; 256.7383; 256.7384; 256.7385; 
125.29  256.7386; 256.7387; 256.7388; 256.74, subdivisions 1, 1a, 1b, 2, 
125.30  and 6; 256.745; 256.75; 256.76; 256.78; 256.80; 256.81; 256.82; 
125.31  256.84; 256.85; 256.86; 256.863; 256.871; and 256.879, are 
125.32  repealed. 
125.33     Sec. 66.  [EFFECTIVE DATE.] 
125.34     (a) Sections 2, 60, 61, and 64 are effective July 1, 1997. 
125.35     (b) The remaining provisions of this article are effective 
125.36  December 1, 1997. 
126.1                              ARTICLE 2 
126.2                            PILOT PROGRAM 
126.3      Section 1.  [256K.01] [WORK FIRST PROGRAM.] 
126.4      Subdivision 1.  [CITATION.] Sections 256K.01 to 256K.08 may 
126.5   be cited as the work first program. 
126.6      Subd. 2.  [DEFINITIONS.] As used in sections 256K.01 to 
126.7   256K.08, the following words have the meanings given them. 
126.8      (a) "Applicant" means an individual who has submitted a 
126.9   request for assistance and has never received an MFIP-S or a 
126.10  family general assistance grant through the MAXIS computer 
126.11  system as a caregiver, or an applicant whose MFIP-S or family 
126.12  general assistance application was denied or benefits were 
126.13  terminated due to noncompliance with work first requirements. 
126.14     (b) "Application date" means the date any Minnesota county 
126.15  agency receives a signed and dated combined application form 
126.16  Part I. 
126.17     (c) "CAF" means a combined application form on which people 
126.18  apply for multiple assistance programs, including:  cash 
126.19  assistance, refugee cash assistance, Minnesota supplemental aid, 
126.20  food stamps, medical assistance, general assistance medical 
126.21  care, emergency assistance, emergency medical assistance, and 
126.22  emergency general assistance medical care. 
126.23     (d) "Caregiver" means a parent or eligible adult, including 
126.24  a pregnant woman, who is part of the assistance unit that has 
126.25  applied for or is receiving an MFIP-S or family general 
126.26  assistance grant.  In a two-parent family, both parents are 
126.27  caregivers. 
126.28     (e) "Child support" means a voluntary or court-ordered 
126.29  payment by absent parents in an assistance unit. 
126.30     (f) "Commissioner" means the commissioner of human services.
126.31     (g) "Department" means the department of human services. 
126.32     (h) "Employability development plan" or "EDP" means a plan 
126.33  developed by the applicant, with advice from the employment 
126.34  advisor, for the purposes of identifying an employment goal, 
126.35  improving work skills through certification or education, 
126.36  training or skills recertification, and which addresses barriers 
127.1   to employment. 
127.2      (i) "EDP status report form" means a program form on which 
127.3   deferred participants indicate what has been achieved in the 
127.4   participant's employability development plan and the types of 
127.5   problems encountered. 
127.6      (j) "Employment advisor" means a program staff member who 
127.7   is qualified to assist the participant to develop a job search 
127.8   or employability development plan, match the participant with 
127.9   existing job openings, refer the participant to employers, and 
127.10  has an extensive knowledge of employers in the area. 
127.11     (k) "Financial specialist" means a program staff member who 
127.12  is trained to explain the benefits offered under the program, 
127.13  determine eligibility for different assistance programs, and 
127.14  broker other resources from employers and the community. 
127.15     (l) "Job network" means individuals that a person may 
127.16  contact to learn more about particular companies, inquire about 
127.17  job leads, or discuss occupational interests and expertise. 
127.18     (m) "Job search allowance" means the amount of financial 
127.19  assistance needed to support job search. 
127.20     (n) "Job search plan" or "JSP" means the specific plan 
127.21  developed by the applicant, with advice from the employment 
127.22  advisor, to secure a job as soon as possible, and focus the 
127.23  scope of the job search process and other activities.  
127.24     (o) "JSP status report form" means a program form on which 
127.25  participants indicate the number of submitted job applications, 
127.26  job interviews held, jobs offered, other outcomes achieved, 
127.27  problems encountered, and the total number of hours spent on job 
127.28  search per week. 
127.29     (p) "Participant" means a recipient who is required to 
127.30  participate in the work first program. 
127.31     (q) "Program" means the work first program. 
127.32     (r) "Provider" means an employment and training agency 
127.33  certified by the commissioner of economic security under section 
127.34  268.871, subdivision 1. 
127.35     (s) "Self-employment" means employment where people work 
127.36  for themselves rather than an employer, are responsible for 
128.1   their own work schedule, and do not have taxes or FICA withheld 
128.2   by an employer. 
128.3      (t) "Self-sufficiency agreement" means the agreement 
128.4   between the county or its representative and the applicant that 
128.5   describes the activities that the applicant must conduct and the 
128.6   necessary services and aid to be furnished by the county to 
128.7   enable the individual to meet the purpose of either the job 
128.8   search plan or employability development plan. 
128.9      (u) "Subsidized job" means a job that is partly reimbursed 
128.10  by the provider for cost of wages for participants in the 
128.11  program. 
128.12     Subd. 3.  [ESTABLISHING WORK FIRST PROGRAM.] The 
128.13  commissioners of human services and economic security may 
128.14  develop and establish pilot projects which require applicants 
128.15  for aid under MFIP-S under chapter 256J to meet the requirements 
128.16  of the work first program.  The purpose of the program is to: 
128.17     (1) ensure that the participant is working as early as 
128.18  possible; 
128.19     (2) promote greater opportunity for economic self-support, 
128.20  participation, and mobility in the work force; and 
128.21     (3) minimize the risk for long-term welfare dependency. 
128.22     Subd. 4.  [PROGRAM ADMINISTRATION.] The program must be 
128.23  administered in a way that, in addition to the county agency, 
128.24  other sectors in the community such as employers from the public 
128.25  and private sectors, not-for-profit organizations, educational 
128.26  and social service agencies, labor unions, and neighborhood 
128.27  associations are involved. 
128.28     Subd. 5.  [PROGRAM DESIGN.] The program shall meet the 
128.29  following principles: 
128.30     (1) work is the primary means of economic support; 
128.31     (2) the individual's potential is reviewed during the 
128.32  application process to determine how to approach the job market 
128.33  aggressively; 
128.34     (3) public aid such as cash and medical assistance, child 
128.35  care, child support assurance, and other cash benefits are used 
128.36  to support intensive job search and immediate work; and 
129.1      (4) maximum use is made of tax credits to supplement income.
129.2      Subd. 6.  [DUTIES OF COMMISSIONER.] In addition to any 
129.3   other duties imposed by law, the commissioner shall: 
129.4      (1) establish the program according to sections 256K.01 to 
129.5   256K.08 and allocate money as appropriate to pilot counties 
129.6   participating in the program; 
129.7      (2) provide systems development and staff training; 
129.8      (3) accept and supervise the disbursement of any funds that 
129.9   may be provided from other sources for use in the demonstration 
129.10  program; and 
129.11     (4) direct a study to safeguard the interests of children. 
129.12     Subd. 7.  [DUTIES OF COUNTY AGENCY.] The county agency 
129.13  shall: 
129.14     (1) collaborate with the commissioners of human services 
129.15  and economic security and other agencies to develop, implement, 
129.16  and evaluate the demonstration of the work first program; 
129.17     (2) operate the work first program in partnership with 
129.18  private and public employers, local industry councils, labor 
129.19  unions, and employment, educational, and social service 
129.20  agencies, according to subdivision 4; and 
129.21     (3) ensure that program components such as client 
129.22  orientation, immediate job search, job development, creation of 
129.23  temporary public service jobs, job placements, and postplacement 
129.24  follow-up are implemented according to the work first program. 
129.25     Subd. 8.  [DUTIES OF PARTICIPANT.] To be eligible for an 
129.26  MFIP-S benefit, a participant shall cooperate with the county 
129.27  agency, the provider, and the participant's employer in all 
129.28  aspects of the program. 
129.29     Sec. 2.  [256K.02] [PROGRAM PARTICIPANTS; PROGRAM 
129.30  EXPECTATIONS.] 
129.31     All applicants selected for participation are expected to 
129.32  meet the requirements under the work first program.  Payments 
129.33  for rent and utilities up to the MFIP-S benefits to which the 
129.34  assistance unit is entitled will be vendor paid for as many 
129.35  months as the applicant is eligible or six months, whichever 
129.36  comes first.  The residual amount after vendor payment, if any, 
130.1   will be paid to the MFIP-S recipient, unless it is used as a 
130.2   wage subsidy under section 256K.04, subdivision 2. 
130.3      Sec. 3.  [256K.03] [PROGRAM REQUIREMENTS.] 
130.4      Subdivision 1.  [NOTIFICATION OF PROGRAM.] Except for the 
130.5   provisions in this section, the provisions for the MFIP-S 
130.6   application process shall be followed.  Within two days after 
130.7   receipt of a completed combined application form, the county 
130.8   agency must refer to the provider the applicant who meets the 
130.9   conditions under section 256K.02, and notify the applicant in 
130.10  writing of the program including the following provisions: 
130.11     (1) notification that, as part of the application process, 
130.12  applicants are required to attend orientation, to be followed 
130.13  immediately by a job search; 
130.14     (2) the program provider, the date, time, and location of 
130.15  the scheduled program orientation; 
130.16     (3) the procedures for qualifying for and receiving 
130.17  benefits under the program; 
130.18     (4) the immediate availability of supportive services, 
130.19  including, but not limited to, child care, transportation, 
130.20  medical assistance, and other work-related aid; and 
130.21     (5) the rights, responsibilities, and obligations of 
130.22  participants in the program, including, but not limited to, the 
130.23  grounds for exemptions and deferrals, the consequences for 
130.24  refusing or failing to participate fully, and the appeal process.
130.25     Subd. 2.  [PROGRAM ORIENTATION.] The county must give a 
130.26  face-to-face orientation regarding the program to the applicant 
130.27  within five days after the date of application.  The orientation 
130.28  must be designed to inform the applicant of: 
130.29     (1) the importance of locating and obtaining a job as soon 
130.30  as possible; 
130.31     (2) benefits to be provided to support work; 
130.32     (3) the manner by which benefits shall be paid; 
130.33     (4) how other supportive services such as medical 
130.34  assistance, child care, transportation, and other work-related 
130.35  aid shall be available to support job search and work; 
130.36     (5) the consequences for failure without good cause to 
131.1   comply with program requirements; and 
131.2      (6) the appeal process. 
131.3      Subd. 3.  [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 
131.4   SPECIALIST.] At the end of orientation, the provider must assign 
131.5   an employment advisor and a financial specialist to the 
131.6   applicant.  With advice from the employment advisor, the 
131.7   applicant must develop a job search plan based on existing job 
131.8   markets, prior employment, work experience, and transferable 
131.9   work skills, unless exempt under subdivision 5.  A job search 
131.10  must be planned and conducted for a period of up to eight 
131.11  consecutive weeks from the date of application and for at least 
131.12  32 hours per week.  The types of and target number of job 
131.13  openings to be pursued per week must be written in the job 
131.14  search plan.  The following activities may be included in the 
131.15  job search plan: 
131.16     (1) motivational counseling; 
131.17     (2) job networking or training on how to locate job 
131.18  openings; 
131.19     (3) development of a personal resume; and 
131.20     (4) information on how to conduct job interviews and 
131.21  establish a personal job network. 
131.22     Following the development of the job search plan or the 
131.23  employability development plan under subdivision 8, the 
131.24  financial specialist must interview the applicant to determine 
131.25  eligibility for and the extent of benefits under sections 
131.26  256K.06 and 256K.07 to support the job search or employability 
131.27  development plan.  The provider must attach to the appropriate 
131.28  plan the summary of the necessary enabling services and benefits 
131.29  to be furnished by the provider.  The provider or its 
131.30  representative and the applicant must sign the plan, with its 
131.31  attachment, to indicate a self-sufficiency agreement between the 
131.32  provider and the participant. 
131.33     Subd. 4.  [IMMEDIATE JOB SEARCH.] An applicant must be 
131.34  required to begin job search within seven days after the date of 
131.35  application for at least 32 hours per week for up to eight 
131.36  weeks, unless exempt under subdivision 5 or deferred under 
132.1   subdivision 8.  For an applicant who is working at least 20 
132.2   hours per week, job search shall consist of 12 hours per week 
132.3   for up to eight weeks.  Within the first five days of job 
132.4   search, the applicant is required to initiate informational 
132.5   contacts with prospective employers, generate additional job 
132.6   leads from the job network, review references and experiences 
132.7   from previous employment, and carry out the other activities 
132.8   under the job search plan developed under subdivision 3. 
132.9      Subd. 5.  [EXEMPTION CATEGORIES.] (a) The applicant will be 
132.10  exempt from the job search requirements and development of a job 
132.11  search plan and an employability development plan under 
132.12  subdivisions 3, 4, and 8 if the applicant belongs to any of the 
132.13  following groups: 
132.14     (1) caregivers under age 20 who have not completed a high 
132.15  school education and are attending high school on a full-time 
132.16  basis; 
132.17     (2) individuals who are age 60 or older; 
132.18     (3) individuals who are suffering from a professionally 
132.19  certified permanent or temporary illness, injury, or incapacity 
132.20  which is expected to continue for more than 30 days and which 
132.21  prevents the person from obtaining or retaining employment; 
132.22     (4) caregivers whose presence in the home is needed because 
132.23  of illness or incapacity of another member in the household; 
132.24     (5) women who are pregnant, if it has been medically 
132.25  verified that the child is expected to be born within the next 
132.26  six months; 
132.27     (6) caregivers or other caregiver relatives of a child 
132.28  under the age of three who personally provide full-time care for 
132.29  the child; 
132.30     (7) individuals employed at least 30 hours per week; 
132.31     (8) individuals for whom participation would require a 
132.32  round trip commuting time by available transportation of more 
132.33  than two hours, excluding transporting of children for child 
132.34  care; 
132.35     (9) individuals for whom lack of proficiency in English is 
132.36  a barrier to employment, provided such individuals are 
133.1   participating in an intensive program which lasts no longer than 
133.2   six months and is designed to remedy their language deficiency; 
133.3      (10) individuals who, because of advanced age or lack of 
133.4   ability, are incapable of gaining proficiency in English, as 
133.5   determined by the county social worker, shall continue to be 
133.6   exempt under this subdivision and are not subject to the 
133.7   requirement that they be participating in a language program; 
133.8      (11) individuals under such duress that they are incapable 
133.9   of participating in the program, as determined by the county 
133.10  social worker; or 
133.11     (12) individuals in need of refresher courses for purposes 
133.12  of obtaining professional certification or licensure. 
133.13     (b) In a two-parent family, only one caregiver may be 
133.14  exempted under paragraph (a), clauses (4) and (6). 
133.15     Subd. 6.  [COUNTY DUTIES.] The county must act on the 
133.16  application within 30 days of the application date.  If the 
133.17  applicant is not eligible, the application will be denied and 
133.18  the county must notify the applicant of the denial in writing.  
133.19  An applicant whose application has been denied may be allowed to 
133.20  complete the job search plan; however, supportive services will 
133.21  not be provided. 
133.22     Subd. 7.  [JOB SEARCH PLAN STATUS REPORT.] The applicant or 
133.23  participant must submit a completed job search plan status 
133.24  report form to the employment advisor every two weeks during the 
133.25  job search process, with the first completed form due 21 days 
133.26  after the date of application. 
133.27     Subd. 8.  [EMPLOYABILITY DEVELOPMENT PLAN.] At the 
133.28  discretion and approval of the employment advisor, the applicant 
133.29  may be deferred from the requirement to conduct at least 32 
133.30  hours of job search per week for up to eight consecutive weeks, 
133.31  if during the development of the job search plan, the applicant 
133.32  is determined to: 
133.33     (1) not have worked within the past 12 months and not have 
133.34  a high school or a general equivalency diploma provided the 
133.35  applicant agrees to develop and carry out an employability 
133.36  development plan instead of job search, and concurrently work 
134.1   for at least 16 hours per week in a temporary public service 
134.2   job.  The employability development plan must include the 
134.3   employment goals and specific outcomes the participant must 
134.4   achieve; 
134.5      (2) be within six months of completing any post-secondary 
134.6   training program, provided that the applicant agrees to develop 
134.7   and carry out an employability development plan instead of a job 
134.8   search, and concurrently work for a minimum number of hours per 
134.9   week in a temporary public service job.  The employability 
134.10  development plan must include the employment goal and specific 
134.11  outcomes that the participant must achieve.  The applicant that 
134.12  is deferred under this subdivision may choose to work in a job 
134.13  other than a public service job for a minimum number of hours 
134.14  per week rather than in a temporary public service job.  For 
134.15  individuals who are participating in an educational program 
134.16  under this clause, and who are attending school full time as 
134.17  determined by the institution, there is no work requirement.  
134.18  For individuals participating in an educational program on a 
134.19  part-time basis as determined by the institution, the minimum 
134.20  number of hours that a participant must work shall be decreased 
134.21  as the participant increases the number of credit hours taken, 
134.22  except that the participant shall not be required to work more 
134.23  than eight hours per week. 
134.24     During vacation periods of one month or more, the 16-hour 
134.25  per week minimum work requirement shall apply.  The applicant 
134.26  may be deferred for up to six months.  At the end of the 
134.27  deferment period, the participant must develop a job search plan 
134.28  and conduct at least 32 hours of job search per week for up to 
134.29  eight consecutive weeks, and submit reports as required under 
134.30  subdivisions 3 and 4; or 
134.31     (3) be in treatment for chemical dependency, be a victim of 
134.32  domestic abuse, or be homeless, provided that the applicant 
134.33  agrees to develop an employability development plan instead of a 
134.34  job search plan, and immediately follow through with the 
134.35  activities in the employability development plan.  The 
134.36  employability development plan must include specific outcomes 
135.1   that the applicant must achieve for the duration of the 
135.2   employability development plan and activities which are needed 
135.3   to address the issues identified.  Under this clause, the 
135.4   applicant may be deferred for up to eight weeks. 
135.5      Subd. 9.  [EDP STATUS REPORT.] The participant who is 
135.6   deferred from job search under subdivision 8 must submit a 
135.7   completed employability development plan status report form to 
135.8   the employment advisor every 14 days as long as the participant 
135.9   continues to be deferred, with the first completed form due 21 
135.10  days after the date of application. 
135.11     Subd. 10.  [JOB OFFER.] The participant must not refuse any 
135.12  job offer, provided that the job is within the participant's 
135.13  physical and mental abilities, pays hourly gross wages of not 
135.14  less than the applicable state or federal minimum wage, and 
135.15  meets health and safety standards set by federal, state, and 
135.16  county agencies.  If a job is offered, the participant must 
135.17  inform the provider immediately to redetermine eligibility for 
135.18  and extent of benefits and services to support work.  To enhance 
135.19  job retention, the provider may provide services such as 
135.20  motivational counseling or on-site problem solving for up to six 
135.21  months.  The participant who has completed at least six months 
135.22  of work in a nonsubsidized job shall be encouraged to 
135.23  participate in a training program that would improve the 
135.24  participant's ability to obtain a job that pays a higher wage. 
135.25     Subd. 11.  [DUTY TO REPORT.] The participant must 
135.26  immediately inform the provider regarding any changes related to 
135.27  the participant's employment status. 
135.28     Subd. 12.  [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 
135.29  SERVICE JOB.] (a) If after the completion of the maximum eight 
135.30  weeks of job search the participant has failed to secure a 
135.31  nonsubsidized or a subsidized job for at least 32 hours per 
135.32  week, or does not earn a net income from self-employment that is 
135.33  equal to at least the MFIP-S monthly grant for the household 
135.34  size, whichever is applicable, the participant is required to 
135.35  work in a temporary public service job for up to 67 working days 
135.36  for (1) at least 32 hours per week, or (2) a period equivalent 
136.1   to the result of dividing the MFIP-S grant amount which the 
136.2   participant would otherwise receive, whichever is applicable, by 
136.3   the federal hourly minimum wage, or applicable hourly state 
136.4   minimum wage, or the hourly rate of pay for individuals employed 
136.5   in the same occupation at the site, whichever is highest.  If 
136.6   the result is more than 128 hours per month, the participant's 
136.7   requirement to work in a temporary public service job shall not 
136.8   be more than 32 hours per week. 
136.9      (b) Within seven days from the date of application, the 
136.10  participant that is deferred under subdivision 8, clause (1) or 
136.11  (2), and is participating in an educational program on a 
136.12  part-time basis must work in a temporary public service job as 
136.13  required under subdivision 8, clause (2). 
136.14     (c) The provider shall strive to match the profile of the 
136.15  participant with the needs of the employers that are 
136.16  participating in a temporary jobs program under section 256K.05. 
136.17     Sec. 4.  [256K.04] [JOB DEVELOPMENT AND SUBSIDY.] 
136.18     Subdivision 1.  [JOB INVENTORY.] The provider must develop 
136.19  an inventory of job openings including full-time, part-time, 
136.20  permanent, temporary or seasonal, and training positions in 
136.21  partnership with private and public employers, local industry 
136.22  councils, and employment agencies.  To the extent possible, the 
136.23  inventory must include specific information regarding job 
136.24  openings, must be updated on a weekly basis, and must be 
136.25  available to all participants on a daily basis. 
136.26     Subd. 2.  [JOB SUBSIDY.] The county may use all or part of 
136.27  the MFIP-S or family general assistance benefit as a subsidy to 
136.28  employers for the purpose of providing work experience or 
136.29  training to the participant who has completed the job search 
136.30  plan, provided that: 
136.31     (1) the job to be subsidized is permanent and full time, 
136.32  and pays an hourly rate of at least $6 per hour; 
136.33     (2) the employer agrees to retain the participant after 
136.34  satisfactory completion of the work experience or training 
136.35  period; and 
136.36     (3) the participant has first tried to secure a 
137.1   nonsubsidized job by following the job search plan.  
137.2      The subsidy may be available for up to six months. 
137.3      Sec. 5.  [256K.05] [TEMPORARY JOBS PROGRAM.] 
137.4      Subdivision 1.  [PROGRAM ESTABLISHED.] The provider must 
137.5   establish and operate a program to provide temporary jobs to 
137.6   participants who, after eight weeks of job search, are not hired 
137.7   into a nonsubsidized or a subsidized job, or are deferred under 
137.8   section 256K.03, subdivision 8.  The temporary jobs to be 
137.9   created under this section must be public service jobs that 
137.10  serve a useful public service such as:  health, social service, 
137.11  environmental protection, education, urban and rural development 
137.12  and redevelopment, welfare, recreation, public facilities, 
137.13  public safety, community service, services to the aged or 
137.14  disabled citizens, and child care. 
137.15     Subd. 2.  [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 
137.16  JOBS.] The provider must assign the participant who (1) is 
137.17  within completion of the required eight weeks of job search and 
137.18  has failed to secure a nonsubsidized or a subsidized job for at 
137.19  least 32 hours per week, or (2) does not earn a net income from 
137.20  self-employment that is equal to at least the MFIP-S monthly 
137.21  grant for the household size, whichever is applicable, to a 
137.22  temporary public service job.  The assignment must be made seven 
137.23  days before the end of the job search and be based on section 
137.24  256K.03, subdivision 12.  The participant that is deferred under 
137.25  section 256K.03, subdivision 8, will be assigned by the provider 
137.26  to a temporary public service job within seven days after the 
137.27  application. 
137.28     Subd. 3.  [PARTICIPANT'S STATUS.] The participant who is 
137.29  working in a temporary public service job under this section is 
137.30  not considered an employee for the purposes of unemployment 
137.31  insurance compensation, retirement, or civil service laws, and 
137.32  shall not perform work ordinarily performed by a public employee.
137.33     Subd. 4.  [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 
137.34  discretion of the provider, the participant who is working in a 
137.35  temporary public service job under section 256K.03, subdivision 
137.36  12, may be required to continue to look for a job for up to 
138.1   eight hours per week in addition to working.  The participant 
138.2   who is working at least 20 hours per week but less than 32 hours 
138.3   per week in a nonsubsidized or subsidized job may be required to 
138.4   look for a job for up to 20 hours per week in lieu of work in 
138.5   the temporary public service job so that the total hours of work 
138.6   and job search is not more than 40 hours per week. 
138.7      Subd. 5.  [EXCUSED ABSENCES.] The participant who is 
138.8   working in a temporary public service job may be allowed excused 
138.9   absences from the assigned temporary job site up to eight hours 
138.10  per month.  For purposes of this subdivision, "excused absence" 
138.11  means absence due to temporary illness or injury of the 
138.12  caregiver or a member of the caregiver's family, the 
138.13  unavailability of licensed child care or unavailability of 
138.14  transportation needed to go to and from the work site, a job 
138.15  interview, or a nonmedical emergency.  For purposes of this 
138.16  subdivision, "emergency" means a sudden, unexpected occurrence 
138.17  or situation of a serious or urgent nature that requires action. 
138.18     Subd. 6.  [MOVE TO A DIFFERENT COUNTY.] If the applicant or 
138.19  recipient who is required to participate in the work first 
138.20  program moves to a different county in this state, the benefits 
138.21  and enabling services agreed upon in the self-sufficiency 
138.22  agreement shall be provided by the pilot county where the 
138.23  applicant or recipient originated, provided the move was part of 
138.24  the job search or employability development plan.  If the 
138.25  applicant or recipient is moving to a different county for 
138.26  failure to comply with the requirements of the work first 
138.27  program, the applicant or recipient will not be eligible for 
138.28  MFIP-S in this state for at least six months from the date of 
138.29  the move. 
138.30     Sec. 6.  [256K.06] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 
138.31  RENT AND UTILITIES VENDOR PAYMENT.] 
138.32     Payments for rent and utilities up to the amount of MFIP-S 
138.33  benefits to which the assistance unit is entitled shall be 
138.34  provided in the form of vendor payments for as many months as 
138.35  the applicant is eligible or six months, whichever comes first.  
138.36  The residual amount after vendor payment, if any, will be paid 
139.1   to the MFIP-S recipient, unless it is used as a wage subsidy 
139.2   under section 256K.04, subdivision 2.  This provision shall 
139.3   apply to all applicants including those meeting the exemption 
139.4   categories under section 256K.03, subdivision 5, or deferral 
139.5   categories under section 256K.03, subdivision 8.  To the extent 
139.6   needed, a job search allowance shall be provided for up to eight 
139.7   weeks to cover expenses related to the job search.  Before the 
139.8   job search allowance is issued, it must be approved by the 
139.9   employment advisor and financial specialist, and clearly 
139.10  described in the job search plan. 
139.11     Sec. 7.  [256K.07] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 
139.12  ASSISTANCE, AND CHILD CARE.] 
139.13     The participant shall be treated as an MFIP-S recipient for 
139.14  food stamps, medical assistance, and child care eligibility 
139.15  purposes.  The participant who leaves the program as a result of 
139.16  increased earnings from employment shall be eligible for 
139.17  transitional medical assistance and child care without regard to 
139.18  MFIP-S receipt in three of the six months preceding 
139.19  ineligibility. 
139.20     Sec. 8.  [256K.08] [SANCTIONS AND APPEAL PROCESS.] 
139.21     Subdivision 1.  [GOOD CAUSE.] (a) For purposes of this 
139.22  subdivision, "good cause" means absence due to temporary illness 
139.23  or injury of the participant or a member of the participant's 
139.24  family, the unavailability of licensed child care or 
139.25  unavailability of transportation needed to attend orientation or 
139.26  conduct job search, or a nonmedical emergency as defined under 
139.27  section 256K.05, subdivision 5. 
139.28     (b) The applicant who is required, but fails, without good 
139.29  cause, to participate in orientation, complete the job search 
139.30  plan or employability development plan, and comply with the job 
139.31  search requirements under section 256K.03, prior to being 
139.32  eligible for MFIP-S shall be denied MFIP-S benefits.  The 
139.33  applicant will not be eligible for MFIP-S benefits in this state 
139.34  for at least six months. 
139.35     (c) If, after receiving a written warning from the county, 
139.36  the participant fails, without good cause, to conduct at least 
140.1   32 hours of job search per week in any given two-week period, 
140.2   the participant will be immediately required to work for at 
140.3   least 16 hours per week in a temporary public service job.  The 
140.4   required 32 hours per week of job search will be reduced to 16 
140.5   hours. 
140.6      (d) If the participant who is deferred under section 
140.7   256K.03, subdivision 8, fails to comply with the activities 
140.8   described in the employability development plan, the participant 
140.9   will lose the deferment status, provided that the participant 
140.10  has received at least two written warnings from the provider. 
140.11     (e) If the participant refuses to work in a temporary 
140.12  public service job, or is terminated from a temporary public 
140.13  service job for failure to work, benefits to the assistance unit 
140.14  shall be terminated and the participant shall not be eligible 
140.15  for aid under the MFIP-S program for at least six months from 
140.16  the date of refusal or termination.  If the participant, before 
140.17  completing at least four consecutive months of employment, 
140.18  voluntarily quits or is terminated from a nonsubsidized or a 
140.19  subsidized job, the participant shall immediately be assigned to 
140.20  work in a temporary public service job for at least 32 hours per 
140.21  week for up to 67 working days unless the participant is hired 
140.22  or rehired into a nonsubsidized or subsidized job. 
140.23     Subd. 2.  [NOTICE OF SANCTIONS.] If the county determines 
140.24  that the participant has failed or refused without good cause, 
140.25  as defined in subdivision 1, to cooperate with the program 
140.26  requirements, the county shall inform the participant in writing 
140.27  of its intent to impose an applicable sanction listed under 
140.28  subdivision 1 and the opportunity to have a conciliation 
140.29  conference upon request and within five days of the notice 
140.30  before a sanction is imposed. 
140.31     Sec. 9.  [FUNDING.] 
140.32     Subdivision 1.  [LEVERAGING GRANT AMOUNT TO SECURE OTHER 
140.33  FUNDS.] The county agency or the provider, in cooperation with 
140.34  the department, may leverage the grant amount to secure other 
140.35  funds from employers, foundations, and the community for the 
140.36  purpose of developing additional components to benefit children 
141.1   and improve the program. 
141.2      Subd. 2.  [EMPLOYER REIMBURSEMENT.] The employer shall be 
141.3   reimbursed for wages paid to participants under Minnesota 
141.4   Statutes, section 256K.04, subdivision 2. 
141.5      Sec. 10.  [EFFECTIVE DATE.] 
141.6      This article is effective the day following final enactment.
141.7                              ARTICLE 3
141.8                      ASSISTANCE PROGRAM CHANGES
141.9      Section 1.  Minnesota Statutes 1996, section 256.031, is 
141.10  amended by adding a subdivision to read: 
141.11     Subd. 1b.  [USE OF STATE AUTHORITY AFTER REPEAL.] For 
141.12  purposes of sections 256.031 to 256.0361 and 256.047, the 
141.13  provisions of law under Minnesota Statutes 1996, sections 256.72 
141.14  to 256.87 and sections 256D.01 to 256D.21, remain in effect 
141.15  after repeal until March 31, 1998. 
141.16     Sec. 2.  Minnesota Statutes 1996, section 256.031, is 
141.17  amended by adding a subdivision to read: 
141.18     Subd. 6.  [END OF FIELD TRIALS.] Upon agreement with the 
141.19  federal government, the field trials of the Minnesota family 
141.20  investment plan will end March 31, 1998.  Families in the 
141.21  comparison group under section 256.031, subdivision 3, paragraph 
141.22  (d)(i), receiving aid to families with dependent children under 
141.23  sections 256.72 to 256.87 in effect until December 1, 1997, and 
141.24  STRIDE services under section 256.736 will continue in those 
141.25  programs until March 31, 1998.  Section 256.74, subdivision 1, 
141.26  paragraph (2), clause (4), as constructed on June 30, 1997, 
141.27  shall apply to families in the comparison group.  After March 
141.28  31, 1998, families that cease receiving assistance under the 
141.29  Minnesota family investment plan and comparison families that 
141.30  cease receiving assistance under AFDC and STRIDE who are 
141.31  eligible for the statewide Minnesota family investment plan, 
141.32  medical assistance, general assistance medical care, or the food 
141.33  stamp program shall be placed with their consent on the programs 
141.34  for which they are eligible. 
141.35     Sec. 3.  Minnesota Statutes 1996, section 256.033, 
141.36  subdivision 1, is amended to read: 
142.1      Subdivision 1.  [ELIGIBILITY CONDITIONS.] (a) A family is 
142.2   entitled to assistance under the Minnesota family investment 
142.3   plan if the family is assigned to a test group in the evaluation 
142.4   as provided in section 256.031, subdivision 3, paragraph (d), 
142.5   and: 
142.6      (1) the family meets the definition of assistance unit 
142.7   under section 256.032, subdivision 1a; 
142.8      (2) the family's resources not excluded under subdivision 3 
142.9   do not exceed $2,000; 
142.10     (3) the family can verify citizenship or lawful resident 
142.11  alien status; and 
142.12     (4) the family provides or applies for a social security 
142.13  number for each member of the family receiving assistance under 
142.14  the family investment plan. 
142.15     (b) A family is eligible for the family investment plan if 
142.16  the net income is less than the transitional standard as defined 
142.17  in section 256.032, subdivision 13, for that size and 
142.18  composition of family.  In determining available net income, the 
142.19  provisions in subdivision 2 shall apply. 
142.20     (c) Upon application, a family is initially eligible for 
142.21  the family investment plan if the family's gross income does not 
142.22  exceed the applicable transitional standard of assistance for 
142.23  that family as defined under section 256.032, subdivision 13, 
142.24  after deducting: 
142.25     (1) 18 percent to cover taxes; and 
142.26     (2) actual dependent care costs up to the maximum 
142.27  disregarded under United States Code, title 42, section 
142.28  602(a)(8)(A)(iii); and 
142.29     (3) $50 of child support collected in that month. 
142.30     (d) A family can remain eligible for the program if: 
142.31     (1) it meets the conditions in subdivision 1a; and 
142.32     (2) its income is below the transitional standard in 
142.33  section 256.032, subdivision 13, allowing for income exclusions 
142.34  in subdivision 2 and after applying the family investment plan 
142.35  treatment of earnings under subdivision 1a. 
142.36     Sec. 4.  Minnesota Statutes 1996, section 256.033, 
143.1   subdivision 1a, is amended to read: 
143.2      Subd. 1a.  [TREATMENT OF INCOME FOR THE PURPOSES OF 
143.3   CONTINUED ELIGIBILITY.] To help families during their transition 
143.4   from the Minnesota family investment plan to self-sufficiency, 
143.5   the following income supports are available: 
143.6      (a) The $30 and one-third and $90 disregards allowed under 
143.7   section 256.74, subdivision 1, and the 20 percent earned income 
143.8   deduction allowed under the federal Food Stamp Act of 1977, as 
143.9   amended, are replaced with a single disregard of not less than 
143.10  35 percent of gross earned income to cover taxes and other 
143.11  work-related expenses and to reward the earning of income.  This 
143.12  single disregard is available for the entire time a family 
143.13  receives assistance through the Minnesota family investment plan.
143.14     (b) The dependent care deduction, as prescribed under 
143.15  section 256.74, subdivision 1, and United States Code, title 7, 
143.16  section 2014(e), is replaced for families with earned income who 
143.17  need assistance with dependent care with an entitlement to a 
143.18  dependent care subsidy from money appropriated for the Minnesota 
143.19  family investment plan. 
143.20     (c) The family wage level, as defined in section 256.032, 
143.21  subdivision 8, allows families to supplement earned income with 
143.22  assistance received through the Minnesota family investment 
143.23  plan.  If, after earnings are adjusted according to the 
143.24  disregard described in paragraph (a), earnings have raised 
143.25  family income to a level equal to or greater than the family 
143.26  wage level, the amount of assistance received through the 
143.27  Minnesota family investment plan must be reduced. 
143.28     (d) The first $50 of any timely support payment for a month 
143.29  received by the public agency responsible for child support 
143.30  enforcement shall be paid to the family and disregarded in 
143.31  determining eligibility and the amount of assistance in 
143.32  accordance with United States Code, title 42, sections 
143.33  602(a)(8)(A)(vi) and 657(b)(1).  This paragraph applies 
143.34  regardless of whether the caregiver is in transitional status, 
143.35  is exempt from developing or complying with the terms of a 
143.36  family support agreement, or has had a sanction imposed under 
144.1   subdivision 3.  
144.2      Sec. 5.  Minnesota Statutes 1996, section 256.736, 
144.3   subdivision 3a, is amended to read: 
144.4      Subd. 3a.  [PARTICIPATION.] (a) Except as provided under 
144.5   paragraphs (b) and (c), Participation in employment and training 
144.6   services under this section is limited to the following 
144.7   recipients:  
144.8      (1) caretakers who are required to participate in a job 
144.9   search under subdivision 14; 
144.10     (2) custodial parents who are subject to the school 
144.11  attendance or case management participation requirements under 
144.12  subdivision 3b; and 
144.13     (3) caretakers whose participation in employment and 
144.14  training services began prior to May 1, 1990, if the caretaker's 
144.15  AFDC eligibility has not been interrupted for 30 days or more 
144.16  and the caretaker's employability development plan has not been 
144.17  completed; 
144.18     (4) recipients who are members of a family in which the 
144.19  youngest child is within two years of being ineligible for AFDC 
144.20  due to age; 
144.21     (5) custodial parents under the age of 24 who:  (i) have 
144.22  not completed a high school education and who, at the time of 
144.23  application for AFDC, were not enrolled in high school or in a 
144.24  high school equivalency program; or (ii) have had little or no 
144.25  work experience in the preceding year; 
144.26     (6) recipients who have received AFDC for 36 or more months 
144.27  out of the last 60 months; 
144.28     (7) recipients who are participants in the self-employment 
144.29  investment demonstration project under section 268.95; and 
144.30     (8) recipients who participate in the new chance research 
144.31  and demonstration project under contract with the department of 
144.32  human services after assuring the availability of employment and 
144.33  training services for recipients identified under clauses (1) 
144.34  and (2), and to the extent of available resources, the county 
144.35  agency may accept any other AFDC recipient into employment and 
144.36  training services under this section. 
145.1      (b) If the commissioner determines that participation of 
145.2   persons listed in paragraph (a) in employment and training 
145.3   services is insufficient either to meet federal performance 
145.4   targets or to fully utilize funds appropriated under this 
145.5   section, the commissioner may, after notifying the chairs of the 
145.6   senate family services committee, the house health and human 
145.7   services committee, the family services division of the senate 
145.8   family services and health care committees, and the human 
145.9   services division of the house health and human services 
145.10  committee, permit additional groups of recipients to participate 
145.11  until the next meeting of the legislative advisory commission, 
145.12  after which the additional groups may continue to enroll for 
145.13  participation unless the legislative advisory commission 
145.14  disapproves the continued enrollment.  The commissioner shall 
145.15  allow participation of additional groups in the following order 
145.16  only as needed to meet performance targets or fully utilize 
145.17  funding for employment and training services under this section: 
145.18     (1) recipients who have received 24 or more months of AFDC 
145.19  out of the previous 48 months; and 
145.20     (2) recipients who have not completed a high school 
145.21  education or a high school equivalency program. 
145.22     (c) To the extent of money appropriated specifically for 
145.23  this paragraph, the commissioner may permit AFDC caretakers who 
145.24  are not eligible for participation in employment and training 
145.25  services under the provisions of paragraph (a) or (b) to 
145.26  participate.  Money must be allocated to county agencies based 
145.27  on the county's percentage of participants statewide in services 
145.28  under this section in the prior calendar year.  Caretakers must 
145.29  be selected on a first-come, first-served basis from a waiting 
145.30  list of caretakers who volunteer to participate.  The 
145.31  commissioner may, on a quarterly basis, reallocate unused 
145.32  allocations to county agencies that have sufficient volunteers.  
145.33  If funding under this paragraph is discontinued in future fiscal 
145.34  years, caretakers who began participating under this paragraph 
145.35  must be deemed eligible under paragraph (a), clause (3). 
145.36     (d) Participants who are eligible and enroll in the STRIDE 
146.1   program under one of the categories of this subdivision are 
146.2   required to cooperate with the assessment and employability plan 
146.3   development and to meet the terms of their employability plan.  
146.4   Failure to comply, without good cause, shall result in the 
146.5   imposition of sanctions as specified in subdivision 4, clause 
146.6   (6). 
146.7      Sec. 6.  Minnesota Statutes 1996, section 256.74, 
146.8   subdivision 1, is amended to read: 
146.9      Subdivision 1.  [AMOUNT.] The amount of assistance which 
146.10  shall be granted to or on behalf of any dependent child and 
146.11  parent or other needy eligible relative caring for the dependent 
146.12  child shall be determined by the county agency in accordance 
146.13  with according to rules promulgated by the commissioner and 
146.14  shall be sufficient, when added to all other income and support 
146.15  available to the child, to provide the child with a reasonable 
146.16  subsistence compatible with decency and health.  To the extent 
146.17  permissible under federal law, an eligible relative caretaker or 
146.18  parent shall have the option to include in the assistance unit 
146.19  the needs, income, and resources of the following essential 
146.20  persons who are not otherwise eligible for AFDC in effect until 
146.21  December 1, 1997, because they do not qualify as a caretaker or 
146.22  as a dependent child: 
146.23     (1) a parent or relative caretaker's spouse and 
146.24  stepchildren; or 
146.25     (2) blood or legally adopted relatives who are under the 
146.26  age of 18 or under the age of 19 years who are regularly 
146.27  attending as a full-time student, and are expected to complete 
146.28  before or during the month of their 19th birthday, a high school 
146.29  or secondary level course of vocational or technical training 
146.30  designed to prepare students for gainful employment.  The amount 
146.31  shall be based on the method of budgeting required in Public Law 
146.32  Number 97-35, section 2315, United States Code, title 42, 
146.33  section 602, as amended and federal regulations at Code of 
146.34  Federal Regulations, title 45, section 233.  Nonrecurring lump 
146.35  sum income received by an AFDC a family receiving AFDC in effect 
146.36  until December 1, 1997, must be budgeted in the normal 
147.1   retrospective cycle.  When the family's income, after 
147.2   application of the applicable disregards, exceeds the need 
147.3   standard for the family because of receipt of earned or unearned 
147.4   lump sum income, the family will be ineligible for the full 
147.5   number of months derived by dividing the sum of the lump sum 
147.6   income and other income by the monthly need standard for a 
147.7   family of that size.  Any income remaining from this calculation 
147.8   is income in the first month following the period of 
147.9   ineligibility.  The first month of ineligibility is the payment 
147.10  month that corresponds with the budget month in which the lump 
147.11  sum income was received.  For purposes of applying the lump sum 
147.12  provision, family includes those persons defined in the Code of 
147.13  Federal Regulations, title 45, section 233.20(a)(3)(ii)(F).  A 
147.14  period of ineligibility must be shortened when the standard of 
147.15  need increases and the amount the family would have received 
147.16  also changes, an amount is documented as stolen, an amount is 
147.17  unavailable because a member of the family left the household 
147.18  with that amount and has not returned, an amount is paid by the 
147.19  family during the period of ineligibility to cover a cost that 
147.20  would otherwise qualify for emergency assistance, or the family 
147.21  incurs and pays for medical expenses which would have been 
147.22  covered by medical assistance if eligibility existed.  In making 
147.23  its determination the county agency shall disregard the 
147.24  following from family income:  
147.25     (1) all the earned income of each dependent child applying 
147.26  for AFDC in effect until December 1, 1997, if the child is a 
147.27  full-time student and all of the earned income of each dependent 
147.28  child receiving AFDC in effect until December 1, 1997, who is a 
147.29  full-time student or is a part-time student who is not a 
147.30  full-time employee.  A student is one who is attending a school, 
147.31  college, or university, or a course of vocational or technical 
147.32  training designed to fit students for gainful employment and 
147.33  includes a participant in the Job Corps program under the Job 
147.34  Training Partnership Act (JTPA).  The county agency shall also 
147.35  disregard all income of each dependent child applying for or 
147.36  receiving AFDC in effect until December 1, 1997, when the income 
148.1   is derived from a program carried out under JTPA, except that 
148.2   disregard of earned income may not exceed six months per 
148.3   calendar year; 
148.4      (2) all educational assistance, except the county agency 
148.5   shall count graduate student teaching assistantships, 
148.6   fellowships, and other similar paid work as earned income and, 
148.7   after allowing deductions for any unmet and necessary 
148.8   educational expenses, shall count scholarships or grants awarded 
148.9   to graduate students that do not require teaching or research as 
148.10  unearned income; 
148.11     (3) the first $90 of each individual's earned income.  For 
148.12  self-employed persons, the expenses directly related to 
148.13  producing goods and services and without which the goods and 
148.14  services could not be produced shall be disregarded 
148.15  pursuant according to rules promulgated by the commissioner; 
148.16     (4) thirty dollars plus one-third of each individual's 
148.17  earned income for individuals found otherwise eligible to 
148.18  receive aid or who have received aid in one of the four months 
148.19  before the month of application.  With respect to any month, the 
148.20  county welfare agency shall not disregard under this clause any 
148.21  earned income of any person who has:  (a) reduced earned income 
148.22  without good cause within 30 days preceding any month in which 
148.23  an assistance payment is made; (b) refused without good cause to 
148.24  accept an offer of suitable employment; (c) left employment or 
148.25  reduced earnings without good cause and applied for assistance 
148.26  so as to be able later to return to employment with the 
148.27  advantage of the income disregard; or (d) failed without good 
148.28  cause to make a timely report of earned income in accordance 
148.29  with according to rules promulgated by the commissioner of human 
148.30  services.  Persons who are already employed and who apply for 
148.31  assistance shall have their needs computed with full account 
148.32  taken of their earned and other income.  If earned and other 
148.33  income of the family is less than need, as determined on the 
148.34  basis of public assistance standards, the county agency shall 
148.35  determine the amount of the grant by applying the disregard of 
148.36  income provisions.  The county agency shall not disregard earned 
149.1   income for persons in a family if the total monthly earned and 
149.2   other income exceeds their needs, unless for any one of the four 
149.3   preceding months their needs were met in whole or in part by a 
149.4   grant payment.  The disregard of $30 and one-third of earned 
149.5   income in this clause shall be applied to the individual's 
149.6   income for a period not to exceed four consecutive months.  Any 
149.7   month in which the individual loses this disregard because of 
149.8   the provisions of subclauses (a) to (d) shall be considered as 
149.9   one of the four months.  An additional $30 work incentive must 
149.10  be available for an eight-month period beginning in the month 
149.11  following the last month of the combined $30 and one-third work 
149.12  incentive.  This period must be in effect whether or not the 
149.13  person has earned income or is eligible for AFDC .  To again 
149.14  qualify for the earned income disregards under this clause, the 
149.15  individual must not be a recipient of aid for a period of 12 
149.16  consecutive months.  When an assistance unit becomes ineligible 
149.17  for aid due to the fact that these disregards are no longer 
149.18  applied to income, the assistance unit shall be eligible for 
149.19  medical assistance benefits for a 12-month period beginning with 
149.20  the first month of AFDC ineligibility; 
149.21     (5) an amount equal to the actual expenditures for the care 
149.22  of each dependent child or incapacitated individual living in 
149.23  the same home and receiving aid, not to exceed:  (a) $175 for 
149.24  each individual age two and older, and $200 for each individual 
149.25  under the age of two.  The dependent care disregard must be 
149.26  applied after all other disregards under this subdivision have 
149.27  been applied; 
149.28     (6) the first $50 per assistance unit of the monthly 
149.29  support obligation collected by the support and recovery (IV-D) 
149.30  unit.  The first $50 of periodic support payments collected by 
149.31  the public authority responsible for child support enforcement 
149.32  from a person with a legal obligation to pay support for a 
149.33  member of the assistance unit must be paid to the assistance 
149.34  unit within 15 days after the end of the month in which the 
149.35  collection of the periodic support payments occurred and must be 
149.36  disregarded when determining the amount of assistance.  A review 
150.1   of a payment decision under this clause must be requested within 
150.2   30 days after receiving the notice of collection of assigned 
150.3   support or within 90 days after receiving the notice if good 
150.4   cause can be shown for not making the request within the 30-day 
150.5   limit; 
150.6      (7) that portion of an insurance settlement earmarked and 
150.7   used to pay medical expenses, funeral and burial costs, or to 
150.8   repair or replace insured property; and 
150.9      (8) (7) all earned income tax credit payments received by 
150.10  the family as a refund of federal income taxes or made as 
150.11  advance payments by an employer.  
150.12     All payments made pursuant according to a court order for 
150.13  the support of children not living in the assistance unit's 
150.14  household shall be disregarded from the income of the person 
150.15  with the legal obligation to pay support, provided that, if 
150.16  there has been a change in the financial circumstances of the 
150.17  person with the legal obligation to pay support since the 
150.18  support order was entered, the person with the legal obligation 
150.19  to pay support has petitioned for a modification of the support 
150.20  order. 
150.21     Sec. 7.  Minnesota Statutes 1996, section 256.82, 
150.22  subdivision 2, is amended to read: 
150.23     Subd. 2.  [FOSTER CARE MAINTENANCE PAYMENTS.] 
150.24  Notwithstanding subdivision 1, for the purposes of foster care 
150.25  maintenance payments under Title IV-E of the federal Social 
150.26  Security Act, United States Code, title 42, sections 670 to 676, 
150.27  during the period beginning July 1, 1985, and ending December 
150.28  31, 1985, the county paying the maintenance costs shall be 
150.29  reimbursed for the costs from those federal funds available for 
150.30  that purpose together with an amount of state funds equal to a 
150.31  percentage of the difference between the total cost and the 
150.32  federal funds made available for payment.  This percentage shall 
150.33  not exceed the percentage specified in subdivision 1 for the aid 
150.34  to families with dependent children program in effect until 
150.35  December 1, 1997.  In the event that the state appropriation for 
150.36  this purpose is less than the state percentage set in 
151.1   subdivision 1, the reimbursement shall be ratably reduced to the 
151.2   county.  Beginning January 1, 1986, for the purpose of foster 
151.3   care maintenance payments under Title IV-E of the Social 
151.4   Security Act, United States Code, title 42, sections 670 to 676, 
151.5   the county paying the maintenance costs must be reimbursed for 
151.6   the costs from the federal money available for the 
151.7   purpose.  Beginning July 1, 1997, for the purposes of 
151.8   determining a child's eligibility under title IV-E of the Social 
151.9   Security Act, the placing agency shall use AFDC requirements in 
151.10  effect on June 1, 1995.  
151.11     Sec. 8.  Minnesota Statutes 1996, section 256.9354, is 
151.12  amended by adding a subdivision to read: 
151.13     Subd. 8.  [SPONSOR'S INCOME AND RESOURCES DEEMED 
151.14  AVAILABLE.] When determining eligibility for any federal or 
151.15  state benefits under sections 256.9351 to 256.9363 and 256.9366 
151.16  to 256.9369, the income and resources of all noncitizens shall 
151.17  be deemed to include their sponsors' income and resources as 
151.18  defined in the Personal Responsibility and Work Opportunity 
151.19  Reconciliation Act of 1996, title IV, Public Law Number 104-193, 
151.20  sections 421 and 422. 
151.21     Sec. 9.  Minnesota Statutes 1996, section 256B.055, 
151.22  subdivision 3, is amended to read: 
151.23     Subd. 3.  [AFDC FAMILIES.] Medical assistance may be paid 
151.24  for a person who is eligible for or receiving, or who would be 
151.25  eligible for, except for excess income or assets, public 
151.26  assistance under the aid to families with dependent children 
151.27  program.  This section expires the day before section 256B.055, 
151.28  subdivision 3a, is effective. 
151.29     Sec. 10.  Minnesota Statutes 1996, section 256B.055, is 
151.30  amended by adding a subdivision to read: 
151.31     Subd. 3a.  [MFIP-S FAMILIES.] Beginning December 1, 1997, 
151.32  or when MFIP-S is effective, medical assistance may be paid for 
151.33  a person receiving public assistance under the MFIP-S program. 
151.34     Sec. 11.  Minnesota Statutes 1996, section 256B.055, is 
151.35  amended by adding a subdivision to read: 
151.36     Subd. 3b.  [FAMILIES FORMERLY ELIGIBLE FOR AFDC.] Beginning 
152.1   December 1, 1997, or upon receipt of federal approval if later, 
152.2   medical assistance may be paid for a person who would have been 
152.3   eligible for public assistance under the income and resource 
152.4   standards and deprivation requirements, or who would have been 
152.5   eligible but for excess income or assets, under the state's AFDC 
152.6   plan in effect as of July 16, 1996, as required by the Personal 
152.7   Responsibility and Work Opportunity Reconciliation Act of 1996 
152.8   (PRWORA), Public Law Number 104-193. 
152.9      Sec. 12.  Minnesota Statutes 1996, section 256B.055, 
152.10  subdivision 5, is amended to read: 
152.11     Subd. 5.  [PREGNANT WOMEN; DEPENDENT UNBORN CHILD.] Medical 
152.12  assistance may be paid for a pregnant woman who has written 
152.13  verification of a positive pregnancy test from a physician or 
152.14  licensed registered nurse, who meets the other eligibility 
152.15  criteria of this section and who would be categorically eligible 
152.16  for assistance under the aid to families with dependent children 
152.17  program state's AFDC plan in effect as of July 16, 1996, as 
152.18  required by the Personal Responsibility and Work Opportunity 
152.19  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
152.20  if the child had been born and was living with the woman.  For 
152.21  purposes of this subdivision, a woman is considered pregnant for 
152.22  60 days postpartum. 
152.23     Sec. 13.  Minnesota Statutes 1996, section 256B.056, 
152.24  subdivision 1a, is amended to read: 
152.25     Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
152.26  specifically required by state law or rule or federal law or 
152.27  regulation, the methodologies used in counting income and assets 
152.28  to determine eligibility for medical assistance for persons 
152.29  whose eligibility category is based on blindness, disability, or 
152.30  age of 65 or more years, the methodologies for the supplemental 
152.31  security income program shall be used, except that payments made 
152.32  pursuant according to a court order for the support of children 
152.33  shall be excluded from income in an amount not to exceed the 
152.34  difference between the applicable income standard used in the 
152.35  state's medical assistance program for aged, blind, and disabled 
152.36  persons and the applicable income standard used in the state's 
153.1   medical assistance program for families with children.  
153.2   Exclusion of court-ordered child support payments is subject to 
153.3   the condition that if there has been a change in the financial 
153.4   circumstances of the person with the legal obligation to pay 
153.5   support since the support order was entered, the person with the 
153.6   legal obligation to pay support has petitioned for modification 
153.7   of the support order.  For families and children, which includes 
153.8   all other eligibility categories, the methodologies for the aid 
153.9   to families with dependent children program under section 256.73 
153.10  under the state's AFDC plan in effect as of July 16, 1996, as 
153.11  required by the Personal Responsibility and Work Opportunity 
153.12  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
153.13  shall be used.  Effective upon federal approval, in-kind 
153.14  contributions to, and payments made on behalf of, a recipient, 
153.15  by an obligor, in satisfaction of or in addition to a temporary 
153.16  or permanent order for child support or maintenance, shall be 
153.17  considered income to the recipient.  For these purposes, a 
153.18  "methodology" does not include an asset or income standard, or 
153.19  accounting method, or method of determining effective dates. 
153.20     Sec. 14.  Minnesota Statutes 1996, section 256B.056, 
153.21  subdivision 3, is amended to read: 
153.22     Subd. 3.  [ASSET LIMITATIONS.] To be eligible for medical 
153.23  assistance, a person must not individually own more than $3,000 
153.24  in assets, or if a member of a household with two family 
153.25  members, (husband and wife, or parent and child), the household 
153.26  must not own more than $6,000 in assets, plus $200 for each 
153.27  additional legal dependent.  In addition to these maximum 
153.28  amounts, an eligible individual or family may accrue interest on 
153.29  these amounts, but they must be reduced to the maximum at the 
153.30  time of an eligibility redetermination.  The accumulation of the 
153.31  clothing and personal needs allowance pursuant according to 
153.32  section 256B.35 must also be reduced to the maximum at the time 
153.33  of the eligibility redetermination.  The value of assets that 
153.34  are not considered in determining eligibility for medical 
153.35  assistance is the value of those assets that are excluded by the 
153.36  aid to families with dependent children program excluded under 
154.1   the AFDC state plan as of July 16, 1996, as required by the 
154.2   Personal Responsibility and Work Opportunity Reconciliation Act 
154.3   of 1996 (PRWORA), Public Law Number 104-193, for families and 
154.4   children, and the supplemental security income program for aged, 
154.5   blind, and disabled persons, with the following exceptions: 
154.6      (a) Household goods and personal effects are not considered.
154.7      (b) Capital and operating assets of a trade or business 
154.8   that the local agency determines are necessary to the person's 
154.9   ability to earn an income are not considered. 
154.10     (c) Motor vehicles are excluded to the same extent excluded 
154.11  by the supplemental security income program. 
154.12     (d) Assets designated as burial expenses are excluded to 
154.13  the same extent excluded by the supplemental security income 
154.14  program. 
154.15     Sec. 15.  Minnesota Statutes 1996, section 256B.056, 
154.16  subdivision 4, is amended to read: 
154.17     Subd. 4.  [INCOME.] To be eligible for medical assistance, 
154.18  a person must not have, or anticipate receiving, semiannual 
154.19  income in excess of 120 percent of the income standards by 
154.20  family size used in under the aid to families with dependent 
154.21  children program state plan as of July 16, 1996, as required by 
154.22  the Personal Responsibility and Work Opportunity Reconciliation 
154.23  Act of 1996 (PRWORA), Public Law Number 104-193, except that 
154.24  families and children may have an income up to 133-1/3 percent 
154.25  of the AFDC income standard.  In computing income to determine 
154.26  eligibility of persons who are not residents of long-term care 
154.27  facilities, the commissioner shall disregard increases in income 
154.28  as required by Public Law Numbers 94-566, section 503; 99-272; 
154.29  and 99-509.  Veterans aid and attendance benefits are considered 
154.30  income to the recipient. 
154.31     Sec. 16.  Minnesota Statutes 1996, section 256B.057, 
154.32  subdivision 1, is amended to read: 
154.33     Subdivision 1.  [PREGNANT WOMEN AND INFANTS.] (a) An infant 
154.34  less than one year of age or a pregnant woman who has written 
154.35  verification of a positive pregnancy test from a physician or 
154.36  licensed registered nurse, is eligible for medical assistance if 
155.1   countable family income is equal to or less than 275 percent of 
155.2   the federal poverty guideline for the same family size.  For 
155.3   purposes of this subdivision, "countable family income" means 
155.4   the amount of income considered available using the methodology 
155.5   of the AFDC program under the state's AFDC plan as of July 16, 
155.6   1996, as required by the Personal Responsibility and Work 
155.7   Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
155.8   Number 104-193, except for the earned income disregard and 
155.9   employment deductions.  An amount equal to the amount of earned 
155.10  income exceeding 275 percent of the federal poverty guideline, 
155.11  up to a maximum of the amount by which the combined total of 185 
155.12  percent of the federal poverty guideline plus the earned income 
155.13  disregards and deductions of the AFDC program under the state's 
155.14  AFDC plan as of July 16, 1996, as required by the Personal 
155.15  Responsibility and Work Opportunity Reconciliation Act of 1996 
155.16  (PRWORA), Public Law Number 104-193, exceeds 275 percent of the 
155.17  federal poverty guideline will be deducted for pregnant women 
155.18  and infants less than one year of age.  Eligibility for a 
155.19  pregnant woman or infant less than one year of age under this 
155.20  subdivision must be determined without regard to asset standards 
155.21  established in section 256B.056, subdivision 3.  
155.22     (b) An infant born on or after January 1, 1991, to a woman 
155.23  who was eligible for and receiving medical assistance on the 
155.24  date of the child's birth shall continue to be eligible for 
155.25  medical assistance without redetermination until the child's 
155.26  first birthday, as long as the child remains in the woman's 
155.27  household. 
155.28     Sec. 17.  Minnesota Statutes 1996, section 256B.057, 
155.29  subdivision 1b, is amended to read: 
155.30     Subd. 1b.  [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 
155.31  This subdivision supersedes subdivision 1 as long as the 
155.32  Minnesota health care reform waiver remains in effect.  When the 
155.33  waiver expires, the commissioner of human services shall publish 
155.34  a notice in the State Register and notify the revisor of 
155.35  statutes.  An infant less than two years of age or a pregnant 
155.36  woman who has written verification of a positive pregnancy test 
156.1   from a physician or licensed registered nurse, is eligible for 
156.2   medical assistance if countable family income is equal to or 
156.3   less than 275 percent of the federal poverty guideline for the 
156.4   same family size.  For purposes of this subdivision, "countable 
156.5   family income" means the amount of income considered available 
156.6   using the methodology of the AFDC program under the state's AFDC 
156.7   plan as of July 16, 1996, as required by the Personal 
156.8   Responsibility and Work Opportunity Reconciliation Act of 1996 
156.9   (PRWORA), Public Law Number 104-193, except for the earned 
156.10  income disregard and employment deductions.  An amount equal to 
156.11  the amount of earned income exceeding 275 percent of the federal 
156.12  poverty guideline, up to a maximum of the amount by which the 
156.13  combined total of 185 percent of the federal poverty guideline 
156.14  plus the earned income disregards and deductions of the AFDC 
156.15  program under the state's AFDC plan as of July 16, 1996, as 
156.16  required by the Personal Responsibility and Work Opportunity 
156.17  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
156.18  exceeds 275 percent of the federal poverty guideline will be 
156.19  deducted for pregnant women and infants less than two years of 
156.20  age.  Eligibility for a pregnant woman or infant less than two 
156.21  years of age under this subdivision must be determined without 
156.22  regard to asset standards established in section 256B.056, 
156.23  subdivision 3.  
156.24     (b) An infant born on or after January 1, 1991, to a woman 
156.25  who was eligible for and receiving medical assistance on the 
156.26  date of the child's birth shall continue to be eligible for 
156.27  medical assistance without redetermination until the child's 
156.28  second birthday, as long as the child remains in the woman's 
156.29  household. 
156.30     Sec. 18.  Minnesota Statutes 1996, section 256B.057, 
156.31  subdivision 2b, is amended to read: 
156.32     Subd. 2b.  [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS; 
156.33  EXPANSION.] This subdivision supersedes subdivision 2a as long 
156.34  as the Minnesota health care reform waiver remains in effect.  
156.35  When the waiver expires, this subdivision expires and the 
156.36  commissioner of human services shall publish a notice in the 
157.1   State Register and notify the revisor of statutes.  Eligibility 
157.2   for medical assistance for a person under age 21, and the 
157.3   person's parents or relative caretakers as defined in the aid to 
157.4   families with dependent children program according to chapter 
157.5   256, who are eligible under section 256B.055, subdivision 
157.6   3 under the state's AFDC plan in effect as of July 16, 1996, as 
157.7   required by the Personal Responsibility and Work Opportunity 
157.8   Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
157.9   and who live in the same household as the person eligible under 
157.10  age 21, must be determined without regard to asset standards 
157.11  established in section 256B.056. 
157.12     Sec. 19.  Minnesota Statutes 1996, section 256B.06, 
157.13  subdivision 4, is amended to read: 
157.14     Subd. 4.  [CITIZENSHIP REQUIREMENTS.] Eligibility for 
157.15  medical assistance is limited to citizens of the United 
157.16  States and aliens lawfully admitted for permanent residence or 
157.17  otherwise permanently residing in the United States under the 
157.18  color of law.  Aliens who are seeking legalization under the 
157.19  Immigration Reform and Control Act of 1986, Public Law Number 
157.20  99-603, who are under age 18, over age 65, blind, disabled, or 
157.21  Cuban or Haitian, and who meet the eligibility requirements of 
157.22  medical assistance under subdivision 1 and sections 256B.055 to 
157.23  256B.062 are eligible to receive medical assistance.  Pregnant 
157.24  women who are aliens seeking legalization under the Immigration 
157.25  Reform and Control Act of 1986, Public Law Number 99-603, and 
157.26  who meet the eligibility requirements of medical assistance 
157.27  under subdivision 1 are eligible for payment of care and 
157.28  services through the period of pregnancy and six weeks 
157.29  postpartum.  Payment shall also be made for care and services 
157.30  that are furnished to an alien, regardless of immigration 
157.31  status, who otherwise meets the eligibility requirements of this 
157.32  section if such care and services are necessary for the 
157.33  treatment of an emergency medical condition, except for organ 
157.34  transplants and related care and services.  For purposes of this 
157.35  subdivision, the term "emergency medical condition" means a 
157.36  medical condition, including labor and delivery, that if not 
158.1   immediately treated could cause a person physical or mental 
158.2   disability, continuation of severe pain, or death., qualified 
158.3   noncitizens as defined in this subdivision, and other persons 
158.4   residing lawfully in the United States. 
158.5      (a) "Qualified noncitizen" means a person who meets one of 
158.6   the following immigration criteria: 
158.7      (1) admitted for lawful permanent residence according to 
158.8   United States Code, title 8; 
158.9      (2) admitted to the United States as a refugee according to 
158.10  United States Code, title 8, section 1157; 
158.11     (3) granted asylum according to United States Code, title 
158.12  8, section 1158; 
158.13     (4) granted withholding of deportation according to United 
158.14  States Code, title 8, section 1253(h); 
158.15     (5) paroled for a period of at least one year according to 
158.16  United States Code, title 8, section 1182(d)(5); 
158.17     (6) granted conditional entrant status according to United 
158.18  States Code, title 8, section 1153(a)(7); or 
158.19     (7) determined to be a battered noncitizen by the United 
158.20  States Attorney General according to the Illegal Immigration 
158.21  Reform and Immigrant Responsibility Act of 1996, title V of the 
158.22  Omnibus Consolidated Appropriations Bill, Public Law Number 
158.23  104-200. 
158.24     (b) All qualified noncitizens who were residing in the 
158.25  United States before August 22, 1996, who otherwise meet the 
158.26  eligibility requirements of chapter 256B, are eligible for 
158.27  medical assistance with federal financial participation. 
158.28     (c) Qualified noncitizens who entered the United States on 
158.29  or after August 22, 1996, and who otherwise meet the eligibility 
158.30  requirements of chapter 256B, are eligible for medical 
158.31  assistance as follows: 
158.32     (1) Persons in this category are eligible for medical 
158.33  assistance with federal financial participation through November 
158.34  30, 1996. 
158.35     (2) Beginning December 1, 1996, these persons are 
158.36  ineligible for medical assistance with federal participation for 
159.1   five years unless they meet one of the following criteria: 
159.2      (i) refugees admitted to the United States according to 
159.3   United States Code, title 8, section 1157; 
159.4      (ii) persons granted asylum according to United States 
159.5   Code, title 8, section 1158; 
159.6      (iii) persons granted withholding of deportation according 
159.7   to United States code, title 8, section 1253(h); 
159.8      (iv) veterans of the United States Armed Forces with an 
159.9   honorable discharge for a reason other than noncitizen status, 
159.10  their spouses and minor children; or 
159.11     (v) persons on active duty in the United States Armed 
159.12  Forces, other than for training, their spouses and minor 
159.13  children. 
159.14     (3) Beginning December 1, 1996, persons who are ineligible 
159.15  for medical assistance with federal financial participation are 
159.16  eligible for medical assistance without federal financial 
159.17  participation as described in paragraph (h). 
159.18     (d) Noncitizens who are not qualified noncitizens as 
159.19  defined in paragraph (a), who are lawfully residing in the 
159.20  United States and who otherwise meet the eligibility 
159.21  requirements of chapter 256B, are eligible for medical 
159.22  assistance as follows: 
159.23     (1) Persons who were medical assistance recipients on 
159.24  August 22, 1996, are eligible for medical assistance with 
159.25  federal financial participation through December 31, 1996. 
159.26     (2) Beginning January 1, 1997, persons described in clause 
159.27  (1) are eligible for medical assistance without federal 
159.28  financial participation as described in paragraph (h). 
159.29     (3) Beginning December 1, 1996, persons residing in the 
159.30  United States prior to August 22, 1996, who were not receiving 
159.31  medical assistance and persons who arrived on or after August 
159.32  22, 1996, are eligible for medical assistance without federal 
159.33  financial participation as described in paragraph (h). 
159.34     (4) Nonimmigrants are eligible for federal or state 
159.35  benefits provided in paragraphs (f) and (g). For purposes of 
159.36  this subdivision, a nonimmigrant is a person in one of the 
160.1   classes listed in United States Code, title 8, section 
160.2   1101(a)(15). 
160.3      (e) When determining eligibility for any federal or state 
160.4   benefits under this subdivision, the income and resources of all 
160.5   noncitizens shall be deemed to include their sponsors' income 
160.6   and resources as required under the Personal Responsibility and 
160.7   Work Opportunity Reconciliation Act of 1996, title IV, Public 
160.8   Law Number 104-193, sections 421 and 422.  
160.9      (f) Payment shall also be made for care and services that 
160.10  are furnished to noncitizens, regardless of immigration status, 
160.11  who otherwise meet the eligibility requirements of chapter 256B, 
160.12  if such care and services are necessary for the treatment of an 
160.13  emergency medical condition, except for organ transplants and 
160.14  related care and services and routine prenatal care.  For 
160.15  purposes of this subdivision, the term "emergency medical 
160.16  condition" means a medical condition that meets the requirements 
160.17  of United States Code, title 42, section 1396b(v). 
160.18     (g) Pregnant noncitizens who are undocumented or 
160.19  nonimmigrants, who otherwise meet the eligibility requirements 
160.20  of chapter 256B, are eligible for medical assistance payment 
160.21  without federal financial participation for care and services 
160.22  through the period of pregnancy and 60 days postpartum, except 
160.23  for labor and delivery. 
160.24     (h) Qualified noncitizens as described in paragraph (c), 
160.25  and all other noncitizens lawfully residing in the United States 
160.26  as described in paragraph (d), who are ineligible for medical 
160.27  assistance with federal financial participation and, who 
160.28  otherwise meet the eligibility requirements of chapter 256B and 
160.29  of this paragraph, are eligible for medical assistance without 
160.30  federal financial participation.  Qualified noncitizens as 
160.31  described in paragraph (c) are only eligible for medical 
160.32  assistance without federal financial participation for five 
160.33  years from their date of entry into the United States.  As a 
160.34  condition of continuing eligibility, all other noncitizens 
160.35  lawfully residing in the United States as described in paragraph 
160.36  (d), must cooperate with the Immigration and Naturalization 
161.1   Service to pursue any applicable immigration status, including 
161.2   citizenship, that would qualify them for medical assistance with 
161.3   federal financial participation. 
161.4      (i) The commissioner shall submit to the legislature by 
161.5   December 31, 1998, a report on the number of recipients and cost 
161.6   of coverage of care and services made according to paragraphs 
161.7   (g) and (h). 
161.8      Sec. 20.  Minnesota Statutes 1996, section 256B.062, is 
161.9   amended to read: 
161.10     256B.062 [CONTINUED ELIGIBILITY.] 
161.11     Medical assistance may be paid for persons who received aid 
161.12  to families with dependent children in at least three of the six 
161.13  months preceding the month in which the person became ineligible 
161.14  for aid to families with dependent children, if the 
161.15  ineligibility was due to an increase in hours of employment or 
161.16  employment income or due to the loss of an earned income 
161.17  disregard.  A person who is eligible for extended medical 
161.18  assistance is entitled to six months of assistance without 
161.19  reapplication, unless the assistance unit ceases to include a 
161.20  dependent child.  For a person under 21 years of age, medical 
161.21  assistance may not be discontinued within the six-month period 
161.22  of extended eligibility until it has been determined that the 
161.23  person is not otherwise eligible for medical assistance.  
161.24  Medical assistance may be continued for an additional six months 
161.25  if the person meets all requirements for the additional six 
161.26  months, according to Title XIX of the Social Security Act, as 
161.27  amended by section 303 of the Family Support Act of 1988, Public 
161.28  Law Number 100-485.  This section expires the day before section 
161.29  256B.0635 is effective.  
161.30     Sec. 21.  [256B.0635] [CONTINUED ELIGIBILITY IN SPECIAL 
161.31  CIRCUMSTANCES.] 
161.32     Subdivision 1.  [INCREASED EMPLOYMENT.] Beginning December 
161.33  1, 1997, or upon federal approval if later, medical assistance 
161.34  may be paid for persons who received MFIP-S or medical 
161.35  assistance for families and children in at least three of six 
161.36  months preceding the month in which the person became ineligible 
162.1   for MFIP-S or medical assistance, if the ineligibility was due 
162.2   to an increase in hours of employment or employment income or 
162.3   due to the loss of an earned income disregard.  In addition, to 
162.4   receive continued assistance under this section, persons who 
162.5   received medical assistance for families and children but did 
162.6   not receive MFIP-S must have had income less than or equal to 
162.7   the assistance standard for their family size under the state's 
162.8   AFDC plan in effect as of July 16, 1996, as required by the 
162.9   Personal Responsibility and Work Opportunity Reconciliation Act 
162.10  of 1996 (PRWORA), Public Law Number 104-193, at the time medical 
162.11  assistance eligibility began.  A person who is eligible for 
162.12  extended medical assistance is entitled to six months of 
162.13  assistance without reapplication, unless the assistance unit 
162.14  ceases to include a dependent child.  For a person under 21 
162.15  years of age, medical assistance may not be discontinued within 
162.16  the six-month period of extended eligibility until it has been 
162.17  determined that the person is not otherwise eligible for medical 
162.18  assistance.  Medical assistance may be continued for an 
162.19  additional six months if the person meets all requirements for 
162.20  the additional six months, according to title XIX of the Social 
162.21  Security Act, as amended by section 303 of the Family Support 
162.22  Act of 1988, Public Law Number 100-485. 
162.23     Subd. 2.  [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 
162.24  December 1, 1997, or upon federal approval if later, medical 
162.25  assistance may be paid for persons who received MFIP-S or 
162.26  medical assistance for families and children in at least three 
162.27  of the six months preceding the month in which the person became 
162.28  ineligible for MFIP-S or medical assistance, if the 
162.29  ineligibility was the result of the collection of child or 
162.30  spousal support under part D of title IV.  In addition, to 
162.31  receive continued assistance under this section, persons who 
162.32  received medical assistance for families and children but did 
162.33  not receive MFIP-S must have had income less than or equal to 
162.34  the assistance standard for their family size under the state's 
162.35  AFDC plan in effect as of July 16, 1996, as required by the 
162.36  Personal Responsibility and Work Opportunity Reconciliation Act 
163.1   of 1996 (PRWORA), Public Law Number 104-193, at the time medical 
163.2   assistance eligibility began.  A person who is eligible for 
163.3   extended medical assistance under this subdivision is entitled 
163.4   to four months of assistance without reapplication, unless the 
163.5   assistance unit ceases to include a dependent child.  For a 
163.6   person under 21 years of age, medical assistance may not be 
163.7   discontinued within the four-month period of extended 
163.8   eligibility until it has been determined that the person is not 
163.9   otherwise eligible for medical assistance. 
163.10     Sec. 22.  Minnesota Statutes 1996, section 256D.01, 
163.11  subdivision 1, is amended to read: 
163.12     Subdivision 1.  [POLICY.] The objectives of sections 
163.13  256D.01 to 256D.21 are to provide a sound administrative 
163.14  structure for public assistance programs; to maximize the use of 
163.15  federal money for public assistance purposes; to provide an 
163.16  integrated public assistance program for all persons single 
163.17  adults or childless couples in the state without adequate income 
163.18  or resources to maintain a subsistence reasonably compatible 
163.19  with decency and health; and to provide services to help 
163.20  employable and potentially employable persons prepare for and 
163.21  attain self-sufficiency and obtain permanent work. 
163.22     It is declared to be the policy of this state that persons 
163.23  single adults or childless couples unable to provide for 
163.24  themselves and not otherwise provided for by law and who meet 
163.25  the eligibility requirements of sections 256D.01 to 256D.21 are 
163.26  entitled to receive grants of general assistance necessary to 
163.27  maintain a subsistence reasonably compatible with decency and 
163.28  health.  Providing this assistance is a matter of public concern 
163.29  and a necessity in promoting the public health and welfare. 
163.30     Sec. 23.  Minnesota Statutes 1996, section 256D.01, 
163.31  subdivision 1a, is amended to read: 
163.32     Subd. 1a.  [STANDARDS.] (a) A principal objective in 
163.33  providing general assistance is to provide for persons single 
163.34  adults or childless couples ineligible for federal programs who 
163.35  are unable to provide for themselves.  The minimum standard of 
163.36  assistance determines the total amount of the general assistance 
164.1   grant without separate standards for shelter, utilities, or 
164.2   other needs. 
164.3      (b) The commissioner shall set the standard of assistance 
164.4   for an assistance unit consisting of an adult recipient who is 
164.5   childless and unmarried or living apart from children and spouse 
164.6   and who does not live with a parent or parents or a legal 
164.7   custodian.  When the other standards specified in this 
164.8   subdivision increase, this standard must also be increased by 
164.9   the same percentage. 
164.10     (c) For an assistance unit consisting of a single adult who 
164.11  lives with a parent or parents, the general assistance standard 
164.12  of assistance is the amount that the aid to families with 
164.13  dependent children standard of assistance, in effect on January 
164.14  1, 1996, would increase if the recipient were added as an 
164.15  additional minor child to an assistance unit consisting of the 
164.16  recipient's parent and all of that parent's family members, 
164.17  except that the standard may not exceed the standard for a 
164.18  general assistance recipient living alone.  Benefits received by 
164.19  a responsible relative of the assistance unit under the 
164.20  supplemental security income program, a workers' compensation 
164.21  program, the Minnesota supplemental aid program, or any other 
164.22  program based on the responsible relative's disability, and any 
164.23  benefits received by a responsible relative of the assistance 
164.24  unit under the social security retirement program, may not be 
164.25  counted in the determination of eligibility or benefit level for 
164.26  the assistance unit.  Except as provided below, the assistance 
164.27  unit is ineligible for general assistance if the available 
164.28  resources or the countable income of the assistance unit and the 
164.29  parent or parents with whom the assistance unit lives are such 
164.30  that a family consisting of the assistance unit's parent or 
164.31  parents, the parent or parents' other family members and the 
164.32  assistance unit as the only or additional minor child would be 
164.33  financially ineligible for general assistance.  For the purposes 
164.34  of calculating the countable income of the assistance unit's 
164.35  parent or parents, the calculation methods, income deductions, 
164.36  exclusions, and disregards used when calculating the countable 
165.1   income for a single adult or childless couple must be used. 
165.2      (d) For an assistance unit consisting of a childless 
165.3   couple, the standards of assistance are the same as the first 
165.4   and second adult standards of the aid to families with dependent 
165.5   children program in effect on January 1, 1996.  If one member of 
165.6   the couple is not included in the general assistance grant, the 
165.7   standard of assistance for the other is the second adult 
165.8   standard of the aid to families with dependent children program. 
165.9      (e) For an assistance unit consisting of all members of a 
165.10  family, the standards of assistance are the same as the 
165.11  standards of assistance that apply to a family under the aid to 
165.12  families with dependent children program if that family had the 
165.13  same number of parents and children as the assistance unit under 
165.14  general assistance and if all members of that family were 
165.15  eligible for the aid to families with dependent children 
165.16  program.  If one or more members of the family are not included 
165.17  in the assistance unit for general assistance, the standards of 
165.18  assistance for the remaining members are the same as the 
165.19  standards of assistance that apply to an assistance unit 
165.20  composed of the entire family, less the standards of assistance 
165.21  for a family of the same number of parents and children as those 
165.22  members of the family who are not in the assistance unit for 
165.23  general assistance.  In no case shall the standard for family 
165.24  members who are in the assistance unit for general assistance, 
165.25  when combined with the standard for family members who are not 
165.26  in the general assistance unit, total more than the standard for 
165.27  the entire family if all members were in an AFDC assistance 
165.28  unit.  A child may not be excluded from the assistance unit 
165.29  unless income intended for its benefit is received from a 
165.30  federally aided categorical assistance program or supplemental 
165.31  security income.  The income of a child who is excluded from the 
165.32  assistance unit may not be counted in the determination of 
165.33  eligibility or benefit level for the assistance unit. 
165.34     (f) An assistance unit consisting of one or more members of 
165.35  a family must have its grant determined using the policies and 
165.36  procedures of the aid to families with dependent children 
166.1   program, except that, until June 30, 1995, in cases where a 
166.2   county agency has developed or approved a case plan that 
166.3   includes reunification with the children, foster care 
166.4   maintenance payments made under state or local law for a child 
166.5   who is temporarily absent from the assistance unit must not be 
166.6   considered income to the child and the payments must not be 
166.7   counted in the determination of the eligibility or benefit level 
166.8   of the assistance unit.  Otherwise, the standard of assistance 
166.9   must be determined according to paragraph (e); the first $50 of 
166.10  total child support received by an assistance unit in a month 
166.11  must be excluded and the balance counted as unearned income. 
166.12     Sec. 24.  Minnesota Statutes 1996, section 256D.01, 
166.13  subdivision 1e, is amended to read: 
166.14     Subd. 1e.  [RULES REGARDING EMERGENCY ASSISTANCE.] In order 
166.15  to maximize the use of federal funds, The commissioner shall 
166.16  adopt rules, to the extent permitted by federal law, for 
166.17  eligibility for the emergency assistance program under aid to 
166.18  families with dependent children, and under the terms of 
166.19  sections 256D.01 to 256D.21 for general assistance, to require 
166.20  use of the emergency program under aid to families with 
166.21  dependent children MFIP-S as the primary financial resource when 
166.22  available.  The commissioner shall adopt rules for eligibility 
166.23  for general assistance of persons with seasonal income and may 
166.24  attribute seasonal income to other periods not in excess of one 
166.25  year from receipt by an applicant or recipient.  General 
166.26  assistance payments may not be made for foster care, child 
166.27  welfare services, or other social services.  Vendor payments and 
166.28  vouchers may be issued only as authorized in sections 256D.05, 
166.29  subdivision 6, and 256D.09. 
166.30     Sec. 25.  Minnesota Statutes 1996, section 256D.02, 
166.31  subdivision 6, is amended to read: 
166.32     Subd. 6.  "Child" means an adult or minor child of an 
166.33  individual as described in section 256D.05, subdivision 1, 
166.34  clause (9). 
166.35     Sec. 26.  Minnesota Statutes 1996, section 256D.02, 
166.36  subdivision 12a, is amended to read: 
167.1      Subd. 12a.  [RESIDENT.] (a) For purposes of eligibility for 
167.2   general assistance and general assistance medical care, a 
167.3   "resident" is a person living in the state for at least 30 days 
167.4   with the intention of making the person's home here and not for 
167.5   any temporary purpose.  All applicants for these programs are 
167.6   required to demonstrate the requisite intent and can do so in 
167.7   any of the following ways: 
167.8      (1) by showing that the applicant maintains a residence at 
167.9   a verified address, other than a place of public accommodation.  
167.10  An applicant may verify a residence address by presenting a 
167.11  valid state driver's license, a state identification card, a 
167.12  voter registration card, a rent receipt, a statement by the 
167.13  landlord, apartment manager, or homeowner verifying that the 
167.14  individual is residing at the address, or other form of 
167.15  verification approved by the commissioner; or 
167.16     (2) by verifying residence in accordance with according to 
167.17  Minnesota Rules, part 9500.1219, subpart 3, item C. 
167.18     (b) An applicant who has been in the state for less than 30 
167.19  days shall be considered a resident if the applicant can provide 
167.20  documentation: 
167.21     (1) that the applicant was born in the state; 
167.22     (2) that the applicant has been a long-time resident of the 
167.23  state or was formerly a resident of the state for at least 365 
167.24  days and is returning to the state from a temporary absence, as 
167.25  those terms are defined in rules adopted by the commissioner; 
167.26     (3) that the applicant has come to the state to join a 
167.27  close relative which, for purposes of this subdivision, means a 
167.28  parent, grandparent, brother, sister, spouse, or child; or 
167.29     (4) that the applicant has come to this state to accept a 
167.30  bona fide offer of employment for which the applicant is 
167.31  eligible.  
167.32     For general assistance medical care, a county agency shall 
167.33  waive the 30-day residency requirement in cases of emergencies, 
167.34  including medical emergencies, or where unusual hardship would 
167.35  result from denial of general assistance medical care.  For 
167.36  general assistance, a county may shall waive the 30-day 
168.1   residency requirement in cases of emergencies, including medical 
168.2   emergencies, or where unusual hardship would result from denial 
168.3   of general assistance.  For purposes of this subdivision, 
168.4   "unusual hardship" means the applicant is without shelter or is 
168.5   at risk of losing shelter or is without available resources for 
168.6   food. 
168.7      The county agency must report to the commissioner within 30 
168.8   days on any waiver granted under this section.  The county shall 
168.9   not deny an application solely because the applicant does not 
168.10  meet at least one of the criteria in this subdivision, but shall 
168.11  continue to process the application and leave the application 
168.12  pending until the residency requirement is met or until 
168.13  eligibility or ineligibility is established. 
168.14     (c) Migrant workers as defined in section 256J.08 are 
168.15  exempt from the 30-day residency requirement, provided the 
168.16  migrant worker worked in this state within the last 24 months. 
168.17     (d) For purposes of eligibility for emergency general 
168.18  assistance, the 30-day residency requirement in paragraph (a) 
168.19  shall not be waived. 
168.20     (e) For purposes of providing per diem payments to 
168.21  facilities under section 256.01, subdivision 2, clause (16), the 
168.22  30-day residency requirement in paragraph (a) does not apply. 
168.23     Sec. 27.  [256D.024] [PERSONS PROHIBITED FROM RECEIVING 
168.24  GENERAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, MINNESOTA 
168.25  SUPPLEMENTAL AID.] 
168.26     Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSE.] (a) If 
168.27  an applicant has been convicted of a drug offense after July 1, 
168.28  1997, the assistance unit is ineligible for benefits under this 
168.29  chapter until two years after the applicant has completed terms 
168.30  of the court-ordered sentence. 
168.31     (b) For the purposes of this subdivision, "drug offense" 
168.32  means a conviction that occurred after July 1, 1997, of sections 
168.33  152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
168.34  means a conviction in another jurisdiction of the possession, 
168.35  use, or distribution of a controlled substance, or conspiracy to 
168.36  commit any of these offenses, if the offense occurred after July 
169.1   1, 1997, and the conviction is a felony offense in that 
169.2   jurisdiction, or in the case of New Jersey, a high misdemeanor. 
169.3      Subd. 2.  [PAROLE VIOLATORS.] An individual violating a 
169.4   condition of probation or parole imposed under federal or state 
169.5   law is ineligible to receive benefits under this chapter. 
169.6      Subd. 3.  [FLEEING FELONS.] An individual who is fleeing to 
169.7   avoid prosecution, or custody, or confinement after conviction 
169.8   for a crime that is a felony under the laws of the state from 
169.9   which the individual flees, or in the case of New Jersey, is a 
169.10  high misdemeanor, is ineligible to receive benefits under this 
169.11  chapter. 
169.12     Subd. 4.  [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 
169.13  FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 
169.14  individual who is convicted in federal or state court of having 
169.15  made a fraudulent statement or representation with respect to 
169.16  the place of residence of the individual in order to receive 
169.17  assistance simultaneously from two or more states is ineligible 
169.18  to receive benefits under this chapter for ten years beginning 
169.19  on the date of the conviction. 
169.20     Sec. 28.  Minnesota Statutes 1996, section 256D.03, 
169.21  subdivision 3, is amended to read: 
169.22     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
169.23  (a) General assistance medical care may be paid for any person 
169.24  who is not eligible for medical assistance under chapter 256B, 
169.25  including eligibility for medical assistance based on a 
169.26  spenddown of excess income according to section 256B.056, 
169.27  subdivision 5, and: 
169.28     (1) who is receiving assistance under section 256D.05, or 
169.29  who is having a payment made on the person's behalf under 
169.30  sections 256I.01 to 256I.06; or 
169.31     (2)(i) who is a resident of Minnesota; and whose equity in 
169.32  assets is not in excess of $1,000 per assistance unit.  No asset 
169.33  test shall be applied to children and their parents living in 
169.34  the same household.  Exempt assets, the reduction of excess 
169.35  assets, and the waiver of excess assets must conform to the 
169.36  medical assistance program in chapter 256B, with the following 
170.1   exception:  the maximum amount of undistributed funds in a trust 
170.2   that could be distributed to or on behalf of the beneficiary by 
170.3   the trustee, assuming the full exercise of the trustee's 
170.4   discretion under the terms of the trust, must be applied toward 
170.5   the asset maximum; and 
170.6      (ii) who has countable income not in excess of the 
170.7   assistance standards established in section 256B.056, 
170.8   subdivision 4, or whose excess income is spent down pursuant 
170.9   according to section 256B.056, subdivision 5, using a six-month 
170.10  budget period, except that a one-month budget period must be 
170.11  used for recipients residing in a long-term care facility.  The 
170.12  method for calculating earned income disregards and deductions 
170.13  for a person who resides with a dependent child under age 21 
170.14  shall be as specified in section 256.74, subdivision 1 follow 
170.15  section 256B.056.  However, if a disregard of $30 and one-third 
170.16  of the remainder described in section 256.74, subdivision 1, 
170.17  clause (4), has been applied to the wage earner's income, the 
170.18  disregard shall not be applied again until the wage earner's 
170.19  income has not been considered in an eligibility determination 
170.20  for general assistance, general assistance medical care, medical 
170.21  assistance, or aid to families with dependent children MFIP-S 
170.22  for 12 consecutive months.  The earned income and work expense 
170.23  deductions for a person who does not reside with a dependent 
170.24  child under age 21 shall be the same as the method used to 
170.25  determine eligibility for a person under section 256D.06, 
170.26  subdivision 1, except the disregard of the first $50 of earned 
170.27  income is not allowed; or 
170.28     (3) who would be eligible for medical assistance except 
170.29  that the person resides in a facility that is determined by the 
170.30  commissioner or the federal health care financing administration 
170.31  to be an institution for mental diseases. 
170.32     (b) Eligibility is available for the month of application, 
170.33  and for three months prior to application if the person was 
170.34  eligible in those prior months.  A redetermination of 
170.35  eligibility must occur every 12 months. 
170.36     (c) General assistance medical care is not available for a 
171.1   person in a correctional facility unless the person is detained 
171.2   by law for less than one year in a county correctional or 
171.3   detention facility as a person accused or convicted of a crime, 
171.4   or admitted as an inpatient to a hospital on a criminal hold 
171.5   order, and the person is a recipient of general assistance 
171.6   medical care at the time the person is detained by law or 
171.7   admitted on a criminal hold order and as long as the person 
171.8   continues to meet other eligibility requirements of this 
171.9   subdivision.  
171.10     (d) General assistance medical care is not available for 
171.11  applicants or recipients who do not cooperate with the county 
171.12  agency to meet the requirements of medical assistance. 
171.13     (e) In determining the amount of assets of an individual, 
171.14  there shall be included any asset or interest in an asset, 
171.15  including an asset excluded under paragraph (a), that was given 
171.16  away, sold, or disposed of for less than fair market value 
171.17  within the 60 months preceding application for general 
171.18  assistance medical care or during the period of eligibility.  
171.19  Any transfer described in this paragraph shall be presumed to 
171.20  have been for the purpose of establishing eligibility for 
171.21  general assistance medical care, unless the individual furnishes 
171.22  convincing evidence to establish that the transaction was 
171.23  exclusively for another purpose.  For purposes of this 
171.24  paragraph, the value of the asset or interest shall be the fair 
171.25  market value at the time it was given away, sold, or disposed 
171.26  of, less the amount of compensation received.  For any 
171.27  uncompensated transfer, the number of months of ineligibility, 
171.28  including partial months, shall be calculated by dividing the 
171.29  uncompensated transfer amount by the average monthly per person 
171.30  payment made by the medical assistance program to skilled 
171.31  nursing facilities for the previous calendar year.  The 
171.32  individual shall remain ineligible until this fixed period has 
171.33  expired.  The period of ineligibility may exceed 30 months, and 
171.34  a reapplication for benefits after 30 months from the date of 
171.35  the transfer shall not result in eligibility unless and until 
171.36  the period of ineligibility has expired.  The period of 
172.1   ineligibility begins in the month the transfer was reported to 
172.2   the county agency, or if the transfer was not reported, the 
172.3   month in which the county agency discovered the transfer, 
172.4   whichever comes first.  For applicants, the period of 
172.5   ineligibility begins on the date of the first approved 
172.6   application. 
172.7      (f) When determining eligibility for any state benefits 
172.8   under this subdivision, the income and resources of all 
172.9   noncitizens shall be deemed to include their sponsor's income 
172.10  and resources as defined in the Personal Responsibility and Work 
172.11  Opportunity Reconciliation Act of 1996, title IV, Public Law 
172.12  Number 104-193, section 421. 
172.13     (f) (g)(1) Beginning October 1, 1993, An undocumented alien 
172.14  noncitizen or a nonimmigrant is ineligible for general 
172.15  assistance medical care other than emergency services.  For 
172.16  purposes of this subdivision, a nonimmigrant is an individual in 
172.17  one or more of the classes listed in United States Code, title 
172.18  8, section 1101(a)(15), and an undocumented alien noncitizen is 
172.19  an individual who resides in the United States without the 
172.20  approval or acquiescence of the Immigration and Naturalization 
172.21  Service. 
172.22     (2) This subdivision does not apply to a child under age 
172.23  18, to a Cuban or Haitian entrant as defined in Public Law 
172.24  Number 96-422, section 501(e)(1) or (2)(a), or to an alien a 
172.25  noncitizen who is aged, blind, or disabled as defined in United 
172.26  States Code, title 42, section 1382c(a)(1) Code of Federal 
172.27  Regulations, title 42, sections 435.520, 435.530, 435.531, 
172.28  435.540, and 435.541, who cooperates with the Immigration and 
172.29  Naturalization Service to pursue any applicable immigration 
172.30  status, including citizenship, that would qualify the individual 
172.31  for medical assistance with federal financial participation. 
172.32     (3) For purposes of paragraph (f), "emergency services" has 
172.33  the meaning given in Code of Federal Regulations, title 42, 
172.34  section 440.255(b)(1), except that it also means services 
172.35  rendered because of suspected or actual pesticide poisoning. 
172.36     (4) Notwithstanding any other provision of law, a 
173.1   noncitizen who is ineligible for medical assistance due to the 
173.2   deeming of a sponsor's income and resources, is ineligible for 
173.3   general assistance medical care. 
173.4      Sec. 29.  Minnesota Statutes 1996, section 256D.05, 
173.5   subdivision 1, is amended to read: 
173.6      Subdivision 1.  [ELIGIBILITY.] (a) Each person or family 
173.7   whose income and resources are less than the standard of 
173.8   assistance established by the commissioner and, who is a 
173.9   resident of the state shall be eligible for and entitled to 
173.10  general assistance if the person or family is: 
173.11     (1) a person who is suffering from a professionally 
173.12  certified permanent or temporary illness, injury, or incapacity 
173.13  which is expected to continue for more than 30 days and which 
173.14  prevents the person from obtaining or retaining employment; 
173.15     (2) a person whose presence in the home on a substantially 
173.16  continuous basis is required because of the professionally 
173.17  certified illness, injury, incapacity, or the age of another 
173.18  member of the household; 
173.19     (3) a person who has been placed in, and is residing in, a 
173.20  licensed or certified facility for purposes of physical or 
173.21  mental health or rehabilitation, or in an approved chemical 
173.22  dependency domiciliary facility, if the placement is based on 
173.23  illness or incapacity and is pursuant according to a plan 
173.24  developed or approved by the county agency through its director 
173.25  or designated representative; 
173.26     (4) a person who resides in a shelter facility described in 
173.27  subdivision 3; 
173.28     (5) a person not described in clause (1) or (3) who is 
173.29  diagnosed by a licensed physician, psychological practitioner, 
173.30  or other qualified professional, as mentally retarded or 
173.31  mentally ill, and that condition prevents the person from 
173.32  obtaining or retaining employment; 
173.33     (6) a person who has an application pending for, or is 
173.34  appealing termination of benefits from, the social security 
173.35  disability program or the program of supplemental security 
173.36  income for the aged, blind, and disabled, provided the person 
174.1   has a professionally certified permanent or temporary illness, 
174.2   injury, or incapacity which is expected to continue for more 
174.3   than 30 days and which prevents the person from obtaining or 
174.4   retaining employment; 
174.5      (7) a person who is unable to obtain or retain employment 
174.6   because advanced age significantly affects the person's ability 
174.7   to seek or engage in substantial work; 
174.8      (8) a person who has been assessed by a vocational 
174.9   specialist and, in consultation with the county agency, has been 
174.10  determined to be unemployable for purposes of this item, clause; 
174.11  a person is considered employable if there exist positions of 
174.12  employment in the local labor market, regardless of the current 
174.13  availability of openings for those positions, that the person is 
174.14  capable of performing.  The person's eligibility under this 
174.15  category must be reassessed at least annually.  The county 
174.16  agency must provide notice to the person not later than 30 days 
174.17  before annual eligibility under this item ends, informing the 
174.18  person of the date annual eligibility will end and the need for 
174.19  vocational assessment if the person wishes to continue 
174.20  eligibility under this clause.  For purposes of establishing 
174.21  eligibility under this clause, it is the applicant's or 
174.22  recipient's duty to obtain any needed vocational assessment; 
174.23     (9) a person who is determined by the county agency, in 
174.24  accordance with according to permanent rules adopted by the 
174.25  commissioner, to be learning disabled, provided that if a 
174.26  rehabilitation plan for the person is developed or approved by 
174.27  the county agency, the person is following the plan; 
174.28     (10) a child under the age of 18 who is not living with a 
174.29  parent, stepparent, or legal custodian, but and only if:  the 
174.30  child is legally emancipated or living with an adult with the 
174.31  consent of an agency acting as a legal custodian; the child is 
174.32  at least 16 years of age and the general assistance grant is 
174.33  approved by the director of the county agency or a designated 
174.34  representative as a component of a social services case plan for 
174.35  the child; or the child is living with an adult with the consent 
174.36  of the child's legal custodian and the county agency.  For 
175.1   purposes of this clause, "legally emancipated" means a person 
175.2   under the age of 18 years who:  (i) has been married; (ii) is on 
175.3   active duty in the uniformed services of the United States; 
175.4   (iii) has been emancipated by a court of competent jurisdiction; 
175.5   or (iv) is otherwise considered emancipated under Minnesota law, 
175.6   and for whom county social services has not determined that a 
175.7   social services case plan is necessary, for reasons other 
175.8   than that the child has failed or refuses to cooperate with the 
175.9   county agency in developing the plan; 
175.10     (11) a woman in the last trimester of pregnancy who does 
175.11  not qualify for aid to families with dependent children.  A 
175.12  woman who is in the last trimester of pregnancy who is currently 
175.13  receiving aid to families with dependent children may be granted 
175.14  emergency general assistance to meet emergency needs; 
175.15     (12) (11) a person who is eligible for displaced homemaker 
175.16  services, programs, or assistance under section 268.96, but only 
175.17  if that person is enrolled as a full-time student; 
175.18     (13) (12) a person who lives more than two hours round-trip 
175.19  traveling time from any potential suitable employment; 
175.20     (14) (13) a person who is involved with protective or 
175.21  court-ordered services that prevent the applicant or recipient 
175.22  from working at least four hours per day; 
175.23     (15)(i) a family as defined in section 256D.02, subdivision 
175.24  5, which is ineligible for the aid to families with dependent 
175.25  children program. 
175.26     (ii) unless exempt under section 256D.051, subdivision 3a, 
175.27  each adult in the unit must participate in and cooperate with 
175.28  the food stamp employment and training program under section 
175.29  256D.051 each month that the unit receives general assistance 
175.30  benefits.  The recipient's participation must begin no later 
175.31  than the first day of the first full month following the 
175.32  determination of eligibility for general assistance benefits.  
175.33  To the extent of available resources, and with the county 
175.34  agency's consent, the recipient may voluntarily continue to 
175.35  participate in food stamp employment and training services for 
175.36  up to three additional consecutive months immediately following 
176.1   termination of general assistance benefits in order to complete 
176.2   the provisions of the recipient's employability development 
176.3   plan.  If an adult member fails without good cause to 
176.4   participate in or cooperate with the food stamp employment and 
176.5   training program, the county agency shall concurrently terminate 
176.6   that person's eligibility for general assistance and food stamps 
176.7   for two months or until compliance is achieved, whichever is 
176.8   shorter, using the notice, good cause, conciliation and 
176.9   termination procedures specified in section 256D.051; or 
176.10     (16) (14) a person over age 18 whose primary language is 
176.11  not English and who is attending high school at least half time; 
176.12  or 
176.13     (15) a person whose alcohol and drug addiction is a 
176.14  material factor that contributes to the person's disability. 
176.15     (b) Persons or families who are not state residents but who 
176.16  are otherwise eligible for general assistance may receive 
176.17  emergency general assistance to meet emergency needs. 
176.18     (c) (b) As a condition of eligibility under paragraph (a), 
176.19  clauses (1), (3), (5) (4), (8) (7), and (9) (8), the 
176.20  recipient must complete an interim assistance agreement and must 
176.21  apply for other maintenance benefits as specified in section 
176.22  256D.06, subdivision 5, and must comply with efforts to 
176.23  determine the recipient's eligibility for those other 
176.24  maintenance benefits.  
176.25     (d) (c) The burden of providing documentation for a county 
176.26  agency to use to verify eligibility for general assistance or 
176.27  for exemption from the food stamp employment and training 
176.28  program is upon the applicant or recipient.  The county agency 
176.29  shall use documents already in its possession to verify 
176.30  eligibility, and shall help the applicant or recipient obtain 
176.31  other existing verification necessary to determine eligibility 
176.32  which the applicant or recipient does not have and is unable to 
176.33  obtain. 
176.34     Sec. 30.  Minnesota Statutes 1996, section 256D.05, 
176.35  subdivision 2, is amended to read: 
176.36     Subd. 2.  [USE OF FEDERAL FUNDS.] Notwithstanding any law 
177.1   to the contrary, if any person a single adult or childless 
177.2   couple otherwise eligible for general assistance would, but for 
177.3   state statutory restriction or limitation, be eligible for a 
177.4   funded federally aided assistance program providing benefits 
177.5   equal to or greater than those of general assistance, the person 
177.6   single adult or childless couple shall be eligible for that 
177.7   federally aided program and ineligible for general assistance; 
177.8   provided, however, that (a) nothing in this section shall be 
177.9   construed to extend eligibility for federally aided programs to 
177.10  persons not otherwise eligible for general assistance; (b) this 
177.11  section shall not be effective to the extent that federal law or 
177.12  regulation require new eligibility for federal programs to 
177.13  persons not otherwise eligible for general assistance; and (c) 
177.14  nothing in this section shall deny general assistance to a 
177.15  person otherwise eligible who is determined ineligible for a 
177.16  substitute federally aided program. 
177.17     Sec. 31.  Minnesota Statutes 1996, section 256D.05, 
177.18  subdivision 5, is amended to read: 
177.19     Subd. 5.  [TRANSFERS OF PROPERTY.] The equity value of real 
177.20  and personal property transferred without reasonable 
177.21  compensation within 12 months preceding the date of application 
177.22  for general assistance must be included in determining the 
177.23  resources of an assistance unit in the same manner as in the aid 
177.24  to families with dependent children program under chapter 
177.25  256 MFIP-S under chapter 256J. 
177.26     Sec. 32.  Minnesota Statutes 1996, section 256D.05, 
177.27  subdivision 7, is amended to read: 
177.28     Subd. 7.  [INELIGIBILITY FOR GENERAL ASSISTANCE.] No person 
177.29  single adult or childless couple shall be eligible for general 
177.30  assistance during a period of disqualification because of 
177.31  sanctions, from any federally aided assistance program; or if 
177.32  the person could be considered an essential person under section 
177.33  256.74, subdivision 1.  
177.34     Sec. 33.  Minnesota Statutes 1996, section 256D.05, 
177.35  subdivision 8, is amended to read: 
177.36     Subd. 8.  [PERSONS INELIGIBLE CITIZENSHIP.] (a) Beginning 
178.1   October 1, 1993, an undocumented alien or a nonimmigrant is 
178.2   ineligible for general assistance benefits.  For purposes of 
178.3   this subdivision, a nonimmigrant is an individual in one or more 
178.4   of the classes listed in United States Code, title 8, section 
178.5   1101(a)(15), and an undocumented alien is an individual who 
178.6   resides in the United States without the approval or 
178.7   acquiescence of the Immigration and Naturalization Service. 
178.8      (b) This subdivision does not apply to a child under age 
178.9   18, to a Cuban or Haitian entrant as defined in Public Law 
178.10  Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 
178.11  is aged, blind, or disabled as defined in United States Code, 
178.12  title 42, section 1382c(a)(1).  Effective July 1, 1997, 
178.13  citizenship requirements for applicants and recipients under 
178.14  sections 256D.01 to 256D.03, subdivision 2, and 256D.04 to 
178.15  256D.21 shall be determined the same as under section 256J.11, 
178.16  which governs the Minnesota family investment program-statewide 
178.17  (MFIP-S).  The income of sponsors of noncitizens shall be deemed 
178.18  available to general assistance and general assistance medical 
178.19  care applicants according to the policies of the MFIP-S program 
178.20  under section 256J.37, subdivision 2. 
178.21     Sec. 34.  Minnesota Statutes 1996, section 256D.051, 
178.22  subdivision 1a, is amended to read: 
178.23     Subd. 1a.  [NOTICES; CONCILIATION CONFERENCE; AND 
178.24  SANCTIONS.] (a) At the time the county agency notifies the 
178.25  household that it is eligible for food stamps, the county agency 
178.26  must inform all mandatory employment and training services 
178.27  participants as identified in subdivision 1 in the household 
178.28  that they must comply with all food stamp employment and 
178.29  training program requirements each month, including the 
178.30  requirement to attend an initial orientation to the food stamp 
178.31  employment and training program and that food stamp eligibility 
178.32  will end unless the participants comply with the requirements 
178.33  specified in the notice.  
178.34     (b) A participant who fails without good cause to comply 
178.35  with food stamp employment and training program requirements of 
178.36  this section, including attendance at orientation, will lose 
179.1   food stamp eligibility for two months or until the county agency 
179.2   determines that the participant has complied with the program 
179.3   requirements, whichever is shorter. the following periods: 
179.4      (1) for the first occurrence, for one month or until the 
179.5   person complies with the requirements not previously complied 
179.6   with, whichever is longer; 
179.7      (2) for the second occurrence, for three months or until 
179.8   the person complies with the requirements not previously 
179.9   complied with, whichever is longer; or 
179.10     (3) for the third and any subsequent occurrence, for six 
179.11  months or until the person complies with the requirements not 
179.12  previously complied with, whichever is longer. 
179.13     If the participant is not the food stamp head of household, 
179.14  the person shall be considered an ineligible household member 
179.15  for food stamp purposes.  If the participant is the food stamp 
179.16  head of household, the entire household is ineligible for food 
179.17  stamps as provided in Code of Federal Regulations, title 7, 
179.18  section 273.7(g).  "Good cause" means circumstances beyond the 
179.19  control of the participant, such as illness or injury, illness 
179.20  or injury of another household member requiring the 
179.21  participant's presence, a household emergency, or the inability 
179.22  to obtain child care for children between the ages of six and 12 
179.23  or to obtain transportation needed in order for the participant 
179.24  to meet the food stamp employment and training program 
179.25  participation requirements. 
179.26     (c) The county agency shall mail or hand deliver a notice 
179.27  to the participant not later than five days after determining 
179.28  that the participant has failed without good cause to comply 
179.29  with food stamp employment and training program requirements 
179.30  which specifies the requirements that were not complied with, 
179.31  the factual basis for the determination of noncompliance, and 
179.32  the right to reinstate eligibility upon a showing of good 
179.33  cause or the for failure to meet the requirements,.  The notice 
179.34  must ask the reason for the noncompliance, and must identify the 
179.35  participant's appeal rights.  The notice must request that the 
179.36  participant inform the county agency if the participant believes 
180.1   that good cause existed for the failure to comply, must offer 
180.2   the participant a conciliation conference as provided in 
180.3   paragraph (d), and must state that the county agency intends to 
180.4   terminate eligibility for food stamp benefits due to failure to 
180.5   comply with food stamp employment and training program 
180.6   requirements. 
180.7      (d) The county agency must offer a conciliation conference 
180.8   to participants who have failed to comply with food stamp 
180.9   employment and training program requirements.  The purpose of 
180.10  the conference is to determine the cause for noncompliance, to 
180.11  attempt to resolve the problem causing the noncompliance so that 
180.12  all requirements are complied with, and to determine if good 
180.13  cause for noncompliance was present.  The conciliation period 
180.14  shall run for ten working days from the date of the notice 
180.15  required in paragraph (c).  Information about how to request a 
180.16  conciliation conference must be specified in the notice required 
180.17  in paragraph (c).  If the county agency determines that the 
180.18  participant, during the conciliation period, complied with all 
180.19  food stamp employment and training program requirements that the 
180.20  recipient was required to comply with prior to and during the 
180.21  conciliation period, or if the county agency determines that 
180.22  good cause for failing to comply with the requirements was 
180.23  present, a sanction on the participant's or household's food 
180.24  stamp eligibility shall not be imposed. 
180.25     (e) If the county agency determines that the participant 
180.26  did not comply during the conciliation period month with all 
180.27  food stamp employment and training program requirements that 
180.28  were in effect prior to and during the conciliation period, and 
180.29  if the county agency determines that good cause was not present, 
180.30  the county must provide a ten-day notice of termination of food 
180.31  stamp benefits.  The termination notice must be issued following 
180.32  the last day of the conciliation period.  The amount of food 
180.33  stamps that are withheld from the household and determination of 
180.34  the impact of the sanction on other household members is 
180.35  governed by Code of Federal Regulations, title 7, section 273.7. 
180.36     (f) (e) The participant may appeal the termination of food 
181.1   stamp benefits under the provisions of section 256.045. 
181.2      Sec. 35.  Minnesota Statutes 1996, section 256D.051, 
181.3   subdivision 2a, is amended to read: 
181.4      Subd. 2a.  [DUTIES OF COMMISSIONER.] In addition to any 
181.5   other duties imposed by law, the commissioner shall: 
181.6      (1) based on this section and section 256D.052 and Code of 
181.7   Federal Regulations, title 7, section 273.7, supervise the 
181.8   administration of food stamp employment and training services to 
181.9   county agencies; 
181.10     (2) disburse money appropriated for food stamp employment 
181.11  and training services to county agencies based upon the county's 
181.12  costs as specified in section 256D.06; 
181.13     (3) accept and supervise the disbursement of any funds that 
181.14  may be provided by the federal government or from other sources 
181.15  for use in this state for food stamp employment and training 
181.16  services; and 
181.17     (4) cooperate with other agencies including any agency of 
181.18  the United States or of another state in all matters concerning 
181.19  the powers and duties of the commissioner under this section and 
181.20  section 256D.052; and 
181.21     (5) in cooperation with the commissioner of economic 
181.22  security, ensure that each component of an employment and 
181.23  training program carried out under this section is delivered 
181.24  through a statewide workforce development system, unless the 
181.25  component is not available locally through such a system. 
181.26     Sec. 36.  Minnesota Statutes 1996, section 256D.051, 
181.27  subdivision 3a, is amended to read: 
181.28     Subd. 3a.  [PERSONS REQUIRED TO REGISTER FOR AND 
181.29  PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 
181.30  (a) To the extent required under Code of Federal Regulations, 
181.31  title 7, section 273.7(a), each applicant for and recipient of 
181.32  food stamps is required to register for work as a condition of 
181.33  eligibility for food stamp benefits.  Applicants and recipients 
181.34  are registered by signing an application or annual reapplication 
181.35  for food stamps, and must be informed that they are registering 
181.36  for work by signing the form.  
182.1      (b) The commissioner shall determine, within federal 
182.2   requirements, persons required to participate in the food stamp 
182.3   employment and training (FSET) program. 
182.4      (c) The following food stamp recipients are exempt from 
182.5   mandatory participation in food stamp employment and training 
182.6   services: 
182.7      (1) recipients of benefits under the AFDC program in effect 
182.8   until December 1, 1997, Minnesota supplemental aid program, or 
182.9   the general assistance program, except that an adult who 
182.10  receives general assistance under section 256D.05, subdivision 
182.11  1, paragraph (b), is not exempt unless that person qualifies 
182.12  under one of the remaining exemption provisions in this 
182.13  paragraph; 
182.14     (2) a child; 
182.15     (3) a recipient over age 55; 
182.16     (4) a recipient who has a mental or physical illness, 
182.17  injury, or incapacity which is expected to continue for at least 
182.18  30 days and which impairs the recipient's ability to obtain or 
182.19  retain employment as evidenced by professional certification or 
182.20  the receipt of temporary or permanent disability benefits issued 
182.21  by a private or government source; 
182.22     (5) a parent or other household member responsible for the 
182.23  care of either a dependent child in the household who is under 
182.24  age six or a person in the household who is professionally 
182.25  certified as having a physical or mental illness, injury, or 
182.26  incapacity.  Only one parent or other household member may claim 
182.27  exemption under this provision; 
182.28     (6) a recipient receiving unemployment compensation or who 
182.29  has applied for unemployment compensation and has been required 
182.30  to register for work with the department of economic security as 
182.31  part of the unemployment compensation application process; 
182.32     (7) a recipient participating each week in a drug addiction 
182.33  or alcohol abuse treatment and rehabilitation program, provided 
182.34  the operators of the treatment and rehabilitation program, in 
182.35  consultation with the county agency, recommend that the 
182.36  recipient not participate in the food stamp employment and 
183.1   training program; 
183.2      (8) a recipient employed or self-employed for 30 or more 
183.3   hours per week at employment paying at least minimum wage, or 
183.4   who earns wages from employment equal to or exceeding 30 hours 
183.5   multiplied by the federal minimum wage; or 
183.6      (9) a student enrolled at least half time in any school, 
183.7   training program, or institution of higher education.  When 
183.8   determining if a student meets this criteria, the school's, 
183.9   program's or institution's criteria for being enrolled half time 
183.10  shall be used. 
183.11     Sec. 37.  Minnesota Statutes 1996, section 256D.051, is 
183.12  amended by adding a subdivision to read: 
183.13     Subd. 18.  [WORK EXPERIENCE PLACEMENTS.] (a) To the extent 
183.14  of available resources, each county agency must establish and 
183.15  operate a work experience component in the food stamp employment 
183.16  and training program for recipients who are subject to a federal 
183.17  limit of three months of food stamp eligibility in any 36-month 
183.18  period.  The purpose of the work experience component is to 
183.19  enhance the participant's employability, self-sufficiency, and 
183.20  to provide meaningful, productive work activities. 
183.21     (b) The commissioner shall assist counties in the design 
183.22  and implementation of these components.  The commissioner must 
183.23  ensure that job placements under a work experience component 
183.24  comply with section 256J.72.  Written or oral concurrence with 
183.25  job duties of persons placed under the community work experience 
183.26  program shall be obtained from the appropriate exclusive 
183.27  bargaining representative. 
183.28     (c) Worksites developed under this section are limited to 
183.29  projects that serve a useful public service such as health, 
183.30  social service, environmental protection, education, urban and 
183.31  rural development and redevelopment, welfare, recreation, public 
183.32  facilities, public safety, community service, services to aged 
183.33  or disabled citizens, and child care.  To the extent possible, 
183.34  the prior training, skills, and experience of a recipient must 
183.35  be used in making appropriate work experience assignments. 
183.36     (d) Structured, supervised volunteer work with an agency or 
184.1   organization that is monitored by the county service provider 
184.2   may, with the approval of the county agency, be used as a work 
184.3   experience placement. 
184.4      (e) As a condition of placing a person receiving food 
184.5   stamps in a program under this subdivision, the county agency 
184.6   shall first provide the recipient the opportunity: 
184.7      (1) for placement in suitable subsidized or unsubsidized 
184.8   employment through participation in job search under section 
184.9   256D.051; or 
184.10     (2) for placement in suitable employment through 
184.11  participation in on-the-job training, if such employment is 
184.12  available. 
184.13     (f) The county agency shall limit the maximum monthly 
184.14  number of hours that any participant may work in a work 
184.15  experience placement to a number equal to the amount of the 
184.16  family's monthly food stamp allotment divided by the greater of 
184.17  the federal minimum wage or the applicable state minimum wage.  
184.18     After a participant has been assigned to a position for 
184.19  nine months, the participant may not continue in that assignment 
184.20  unless the maximum number of hours a participant works is no 
184.21  greater than the amount of the food stamp benefit divided by the 
184.22  rate of pay for individuals employed in the same or similar 
184.23  occupations by the same employer at the same site. 
184.24     (g) The participant's employability development plan must 
184.25  include the length of time needed in the work experience 
184.26  program, the need to continue job seeking activities while 
184.27  participating in work experience, and the participant's 
184.28  employment goals. 
184.29     (h) After each six months of a recipient's participation in 
184.30  a work experience job placement, and at the conclusion of each 
184.31  work experience assignment under this section, the county agency 
184.32  shall reassess and revise, as appropriate, the participant's 
184.33  employability development plan. 
184.34     (i) A participant has good cause for failure to cooperate 
184.35  with a work experience job placement if, in the judgment of the 
184.36  employment and training service provider, the reason for failure 
185.1   is reasonable and justified.  Good cause for purposes of this 
185.2   section is defined in section 256D.051, subdivision 1a, 
185.3   paragraph (b). 
185.4      (j) A recipient who has failed without good cause to 
185.5   participate in or comply with the work experience job placement 
185.6   shall be terminated from participation in work experience job 
185.7   activities.  If the recipient is not exempt from mandatory food 
185.8   stamp employment and training program participation under 
185.9   section 256D.051, subdivision 3a, the recipient will be assigned 
185.10  to other mandatory program activities.  If the recipient is 
185.11  exempt from mandatory participation but is participating as a 
185.12  volunteer, the person shall be terminated from the food stamp 
185.13  employment and training program. 
185.14     Sec. 38.  [256D.0512] [BUDGETING LUMP SUMS.] 
185.15     Nonrecurring lump-sum income received by a recipient of 
185.16  general assistance must be budgeted in the normal retrospective 
185.17  cycle. 
185.18     Sec. 39.  Minnesota Statutes 1996, section 256D.055, is 
185.19  amended to read: 
185.20     256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 
185.21     The commissioner of human services shall issue a request 
185.22  for proposals from counties to submit a plan for developing and 
185.23  implementing a county-designed program.  The plan shall be for 
185.24  first-time applicants for aid to families with dependent 
185.25  children (AFDC) and family general assistance (FGA) Minnesota 
185.26  family investment program-statewide (MFIP-S) and must emphasize 
185.27  the importance of becoming employed and oriented into the work 
185.28  force in order to become self-sufficient.  The plan must target 
185.29  public assistance applicants who are most likely to become 
185.30  self-sufficient quickly with short-term assistance or services 
185.31  such as child care, child support enforcement, or employment and 
185.32  training services.  
185.33     The plan may include vendor payments, mandatory job search, 
185.34  refocusing existing county or provider efforts, or other program 
185.35  features.  The commissioner may approve a county plan which 
185.36  allows a county to use other program funding for the county work 
186.1   focus program in a more flexible manner.  Nothing in this 
186.2   section shall allow payments made to the public assistance 
186.3   applicant to be less than the amount the applicant would have 
186.4   received if the program had not been implemented, or reduce or 
186.5   eliminate a category of eligible participants from the program 
186.6   without legislative approval.  
186.7      The commissioner shall not approve a county plan that would 
186.8   have an adverse impact on the Minnesota family investment plan 
186.9   demonstration.  If the plan is approved by the commissioner, the 
186.10  county may implement the plan.  If the plan is approved by the 
186.11  commissioner, but a federal waiver is necessary to implement the 
186.12  plan, the commissioner shall apply for the necessary federal 
186.13  waivers.  
186.14     Sec. 40.  [256D.057] [SUPPLEMENT FOR CERTAIN NONCITIZENS.] 
186.15     For an assistance unit that contains an adult or a minor 
186.16  legal noncitizen who was residing in this state as of July 1, 
186.17  1997, and lost eligibility for the federal food stamp and 
186.18  Supplemental Security Income programs under the provisions of 
186.19  title IV of Public Law Number 104-193, the standard is $63 for 
186.20  each legal noncitizen under this section, provided the legal 
186.21  adult noncitizen in the assistance unit: 
186.22     (1) is enrolled in a literacy class, English as a second 
186.23  language class, or a citizenship class; 
186.24     (2) is applying for admission to a literacy class, English 
186.25  as a second language class, or a citizenship class, and is 
186.26  enrolled within 60 days of receiving the increased grant amount 
186.27  under this paragraph; 
186.28     (3) is in the process of applying for a waiver from the 
186.29  Immigration and Naturalization Service of the English language 
186.30  or civics requirement of the citizenship test; 
186.31     (4) has submitted an application for citizenship to the 
186.32  Immigration and Naturalization Service and is waiting for a 
186.33  testing date or a subsequent swearing in ceremony; or 
186.34     (5) has been denied citizenship due to a failure to pass 
186.35  the test after two attempts or due to a denial of the 
186.36  application for naturalization because of an inability to 
187.1   understand the rights and responsibilities of becoming a citizen.
187.2      Sec. 41.  Minnesota Statutes 1996, section 256D.06, 
187.3   subdivision 2, is amended to read: 
187.4      Subd. 2.  Notwithstanding the provisions of subdivision 1, 
187.5   a grant of general assistance shall be made to an eligible 
187.6   individual, single adult, married couple, or family for an 
187.7   emergency need, as defined in rules promulgated by the 
187.8   commissioner, where the recipient requests temporary assistance 
187.9   not exceeding 30 days if an emergency situation appears to exist 
187.10  and the individual is ineligible for the program of emergency 
187.11  assistance under aid to families with dependent children and is 
187.12  not a recipient of aid to families with dependent children at 
187.13  the time of application hereunder, and the individual or family 
187.14  is ineligible for emergency assistance under MFIP-S and is not a 
187.15  participant of MFIP-S.  If an applicant or recipient relates 
187.16  facts to the county agency which may be sufficient to constitute 
187.17  an emergency situation, the county agency shall advise the 
187.18  person of the procedure for applying for assistance pursuant 
187.19  according to this subdivision.  
187.20     Sec. 42.  Minnesota Statutes 1996, section 256D.06, 
187.21  subdivision 5, is amended to read: 
187.22     Subd. 5.  Any applicant, otherwise eligible for general 
187.23  assistance and possibly eligible for maintenance benefits from 
187.24  any other source shall (a) make application for those benefits 
187.25  within 30 days of the general assistance application; and (b) 
187.26  execute an interim assistance authorization agreement on a form 
187.27  as directed by the commissioner.  If found eligible for benefits 
187.28  from other sources, and a payment received from another source 
187.29  relates to the period during which general assistance was also 
187.30  being received, the recipient shall be required to reimburse the 
187.31  county agency for the interim assistance paid.  Reimbursement 
187.32  shall not exceed the amount of general assistance paid during 
187.33  the time period to which the other maintenance benefits apply 
187.34  and shall not exceed the state standard applicable to that time 
187.35  period.  The commissioner shall adopt rules authorizing county 
187.36  agencies or other client representatives to retain from the 
188.1   amount recovered under an interim assistance agreement 25 
188.2   percent plus actual reasonable fees, costs, and disbursements of 
188.3   appeals and litigation, of providing special assistance to the 
188.4   recipient in processing the recipient's claim for maintenance 
188.5   benefits from another source.  The money retained under this 
188.6   section shall be from the state share of the recovery.  The 
188.7   commissioner or the county agency may contract with qualified 
188.8   persons to provide the special assistance.  The rules adopted by 
188.9   the commissioner shall include the methods by which county 
188.10  agencies shall identify, refer, and assist recipients who may be 
188.11  eligible for benefits under federal programs for the disabled.  
188.12  This subdivision does not require repayment of per diem payments 
188.13  made to shelters for battered women pursuant to section 256D.05, 
188.14  subdivision 3. 
188.15     Sec. 43.  [256D.066] [INTERSTATE PAYMENT STANDARDS.] 
188.16     (a) Effective July 1, 1997, the amount of assistance paid 
188.17  to an eligible assistance unit in which all members have resided 
188.18  in this state for less than 12 calendar months shall be the 
188.19  lesser of either the payment standard that would have been 
188.20  received by the assistance unit from the state of immediate 
188.21  prior residence, or the amount calculated in accordance with 
188.22  this chapter.  The lesser payment shall continue until the 
188.23  assistance unit meets the 12-month requirement.  Payment shall 
188.24  be calculated by applying this state's budgeting policies and 
188.25  the unit's net income shall be deducted from the payment 
188.26  standard in the other state or in this state, whichever is 
188.27  lower.  The county agency may, at its option, make vendor 
188.28  payments under this paragraph for rent and utilities, with the 
188.29  remainder, if any, paid to the unit. 
188.30     (b) During the first 12 months an assistance unit resides 
188.31  in this state, the number of months that the unit is eligible to 
188.32  receive general assistance benefits is limited to the number of 
188.33  months the unit would have been eligible to receive similar 
188.34  benefits in the state of immediate prior residence. 
188.35     (c) This policy applies whether or not the unit received 
188.36  similar benefits while residing in the state of previous 
189.1   residence. 
189.2      (d) When a unit moves to this state from another state 
189.3   where the unit has exhausted that state's time limit for 
189.4   receiving similar benefits, the unit will not be eligible to 
189.5   receive any general assistance benefits in this state for 12 
189.6   months from the date the unit moves here. 
189.7      (e) For the purposes of this subdivision, "state of 
189.8   immediate prior residence" means: 
189.9      (i) the state in which the applicant declares the applicant 
189.10  spent the most time in the 30 days prior to moving to this 
189.11  state; or 
189.12     (ii) the applicant is in the migrant work stream and the 
189.13  applicant maintains a home in another state. 
189.14     Sec. 44.  Minnesota Statutes 1996, section 256D.08, 
189.15  subdivision 1, is amended to read: 
189.16     Subdivision 1.  In determining eligibility of a family, 
189.17  single adult or married couple, or individual there shall be 
189.18  excluded the following resources shall be excluded: 
189.19     (1) real or personal property or liquid assets which do not 
189.20  exceed those permitted under the federally aided assistance 
189.21  program known as aid to families with dependent children $1,000; 
189.22  and 
189.23     (2) other property which has been determined, in accordance 
189.24  with and subject according to limitations contained in rules 
189.25  promulgated by the commissioner, to be essential to the family 
189.26  or individual a single adult or married couple as a means of 
189.27  self-support or self-care or which is producing income that is 
189.28  being used for the support of the individual or family single 
189.29  adult or married couple.  The commissioner shall further provide 
189.30  by rule the conditions for those situations in which property 
189.31  not excluded under this subdivision may be retained by 
189.32  the family or individual single adult or married couple where 
189.33  there is a reasonable probability that in the foreseeable future 
189.34  the property will be used for the self-support of the individual 
189.35  or family single adult or married couple; and 
189.36     (3) payments, made pursuant according to litigation and 
190.1   subsequent appropriation by the United States Congress, of funds 
190.2   to compensate members of Indian tribes for the taking of tribal 
190.3   land by the federal government. 
190.4      Sec. 45.  Minnesota Statutes 1996, section 256D.08, 
190.5   subdivision 2, is amended to read: 
190.6      Subd. 2.  Notwithstanding any other provision of sections 
190.7   256D.01 to 256D.21, the commissioner shall provide by rule for 
190.8   the exclusion of property from the determination of eligibility 
190.9   for general assistance when it appears likely that the need for 
190.10  general assistance will not exceed 30 days or an undue hardship 
190.11  would be imposed on an individual or family a single adult or 
190.12  married couple by the forced disposal of the property.  
190.13     Sec. 46.  Minnesota Statutes 1996, section 256D.09, is 
190.14  amended by adding a subdivision to read: 
190.15     Subd. 2b.  [VENDOR PAYMENTS FOR DISABLED DRUG ADDICTS AND 
190.16  ALCOHOLICS.] If at any time there is verification that the 
190.17  client's disability is dependent upon the client's continued 
190.18  drug addiction or alcoholism, general assistance for rent and 
190.19  utilities must be made in the form of vendor payments. 
190.20     Verification of drug addiction or alcoholism can be 
190.21  received from: 
190.22     (1) denial of Social Security benefits based on drug 
190.23  addiction or alcoholism; 
190.24     (2) a statement from the state medical review team that the 
190.25  person's disability is dependent upon continued drug addiction 
190.26  or alcoholism; or 
190.27     (3) a doctor's statement that the person's disability is 
190.28  dependent upon continued drug addiction or alcoholism. 
190.29     Sec. 47.  Minnesota Statutes 1996, section 256D.435, 
190.30  subdivision 3, is amended to read: 
190.31     Subd. 3.  [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 
190.32  Persons who live with the applicant or recipient, who have unmet 
190.33  needs and for whom the applicant or recipient has financial 
190.34  responsibility, must apply for and, if eligible, accept AFDC 
190.35  MFIP-S and other federally funded benefits.  
190.36     Sec. 48.  Minnesota Statutes 1996, section 256D.44, 
191.1   subdivision 5, is amended to read: 
191.2      Subd. 5.  [SPECIAL NEEDS.] In addition to the state 
191.3   standards of assistance established in subdivisions 1 to 4, 
191.4   payments are allowed for the following special needs of 
191.5   recipients of Minnesota supplemental aid who are not residents 
191.6   of a nursing home, a regional treatment center, or a group 
191.7   residential housing facility:. 
191.8      (a) The county agency shall pay a monthly allowance for 
191.9   medically prescribed diets payable under the AFDC program 
191.10  Minnesota family investment program-statewide if the cost of 
191.11  those additional dietary needs cannot be met through some other 
191.12  maintenance benefit.  
191.13     (b) Payment for nonrecurring special needs must be allowed 
191.14  for necessary home repairs or necessary repairs or replacement 
191.15  of household furniture and appliances using the payment standard 
191.16  of the AFDC program in effect on January 1, 1996, for these 
191.17  expenses, as long as other funding sources are not available.  
191.18     (c) A fee for guardian or conservator service is allowed at 
191.19  a reasonable rate negotiated by the county or approved by the 
191.20  court.  This rate shall not exceed five percent of the 
191.21  assistance unit's gross monthly income up to a maximum of $100 
191.22  per month.  If the guardian or conservator is a member of the 
191.23  county agency staff, no fee is allowed. 
191.24     (d) The county agency shall continue to pay a monthly 
191.25  allowance of $68 for restaurant meals for a person who was 
191.26  receiving a restaurant meal allowance on June 1, 1990, and who 
191.27  eats two or more meals in a restaurant daily.  The allowance 
191.28  must continue until the person has not received Minnesota 
191.29  supplemental aid for one full calendar month or until the 
191.30  person's living arrangement changes and the person no longer 
191.31  meets the criteria for the restaurant meal allowance, whichever 
191.32  occurs first. 
191.33     (e) A fee of ten percent of the recipient's gross income or 
191.34  $25, whichever is less, is allowed for representative payee 
191.35  services provided by an agency that meets the requirements under 
191.36  SSI regulations to charge a fee for representative payee 
192.1   services.  This special need is available to all recipients of 
192.2   Minnesota supplemental aid regardless of their living 
192.3   arrangement. 
192.4      Sec. 49.  Minnesota Statutes 1996, section 256F.04, 
192.5   subdivision 1, is amended to read: 
192.6      Subdivision 1.  [FAMILY PRESERVATION FUND.] The 
192.7   commissioner shall establish a family preservation fund to 
192.8   assist counties in providing placement prevention and family 
192.9   reunification services.  This fund shall include a basic grant 
192.10  for family preservation services, a placement earnings grant 
192.11  under section 256.8711, subdivision 6b, paragraph (a), and a 
192.12  development grant under section 256.8711, subdivision 6a, to 
192.13  assist counties in developing and expanding their family 
192.14  preservation core services as defined in section 256F.03, 
192.15  subdivision 10.  Beginning with calendar year 1998, after each 
192.16  annual or quarterly calculation, these three component grants 
192.17  shall be added together and treated as a single family 
192.18  preservation grant. 
192.19     Sec. 50.  Minnesota Statutes 1996, section 256F.04, 
192.20  subdivision 2, is amended to read: 
192.21     Subd. 2.  [FORMS AND INSTRUCTIONS.] The commissioner shall 
192.22  provide necessary forms and instructions to the counties for 
192.23  their community social services plan, as required in section 
192.24  256E.09, that incorporate the information necessary to apply for 
192.25  a family preservation fund grant, and to exercise county options 
192.26  under section 256F.05, subdivisions 7, paragraph (a), or 
192.27  subdivision 8, paragraph (c).  
192.28     Sec. 51.  Minnesota Statutes 1996, section 256F.05, 
192.29  subdivision 2, is amended to read: 
192.30     Subd. 2.  [MONEY AVAILABLE FOR THE BASIC GRANT FAMILY 
192.31  PRESERVATION.] Money appropriated for family preservation under 
192.32  sections 256F.04 to 256F.07, together with an amount as 
192.33  determined by the commissioner of title IV-B funds distributed 
192.34  to Minnesota according to the Social Security Act, United States 
192.35  Code, title 42, chapter 7, subchapter IV, part B, section 621, 
192.36  must be distributed to counties on a calendar year basis 
193.1   according to the formula in subdivision 3. 
193.2      Sec. 52.  Minnesota Statutes 1996, section 256F.05, 
193.3   subdivision 3, is amended to read: 
193.4      Subd. 3.  [BASIC GRANT FORMULA.] (a) The amount of money 
193.5   allocated to counties under subdivision 2 shall first be 
193.6   allocated in amounts equal to each county's guaranteed floor 
193.7   according to paragraph (b), and second, any remaining available 
193.8   funds allocated as follows: 
193.9      (1) 90 50 percent of the funds shall be allocated based on 
193.10  the population of the county under age 19 years as compared to 
193.11  the state as a whole as determined by the most recent data from 
193.12  the state demographer's office; and 
193.13     (2) ten 20 percent of funds shall be allocated based on the 
193.14  county's percentage share of the unduplicated number of families 
193.15  who received family preservation services under section 256F.03, 
193.16  subdivision 5, paragraphs (a), (b), (c), and (e), in the most 
193.17  recent calendar year available as determined by the 
193.18  commissioner; 
193.19     (3) ten percent of the funds shall be allocated based on 
193.20  the county's percentage share of the unduplicated number of 
193.21  children in substitute care in the most recent calendar year 
193.22  available as determined by the commissioner; 
193.23     (4) ten percent of the funds shall be allocated based on 
193.24  the county's percentage share of the number of determined 
193.25  maltreatment reports in the most recent calendar year available 
193.26  as determined by the commissioner; 
193.27     (5) five percent of the funds shall be allocated based on 
193.28  the county's percentage share of the number of American Indian 
193.29  children under age 18 residing in the county in the most recent 
193.30  calendar year as determined by the commissioner; and 
193.31     (6) five percent of the funds shall be allocated based on 
193.32  the county's percentage share of the number of minority children 
193.33  of color receiving children's case management services as 
193.34  defined by the commissioner based on the most recent data as 
193.35  determined by the commissioner. 
193.36     (b) Each county's basic grant guaranteed floor shall be 
194.1   calculated as follows: 
194.2      (1) 90 percent of the county's allocation received in the 
194.3   preceding calendar year.  For calendar year 1996 only, the 
194.4   allocation received in the preceding calendar year shall be 
194.5   determined by the commissioner based on the funding previously 
194.6   distributed as separate grants under sections 256F.04 to 256F.07 
194.7   or $25,000, whichever is greater; and 
194.8      (2) when the amounts of funds available for allocation is 
194.9   less than the amount available in the previous year, each 
194.10  county's previous year allocation shall be reduced in proportion 
194.11  to the reduction in the statewide funding, for the purpose of 
194.12  establishing the guaranteed floor. 
194.13     (c) The commissioner shall regularly review the use of 
194.14  family preservation fund allocations by county.  The 
194.15  commissioner may reallocate unexpended or unencumbered money at 
194.16  any time among those counties that have expended or are 
194.17  projected to expend their full allocation. 
194.18     (d) For the period from July 1, 1997, to December 31, 1998, 
194.19  only, each county shall receive an 18-month allocation.  For the 
194.20  purposes of determining the guaranteed floor for this 18-month 
194.21  allocation, the allocation received in the preceding calendar 
194.22  year shall be determined by the commissioner based on the 
194.23  funding previously distributed separately under sections 
194.24  256.8711 and 256F.04. 
194.25     Sec. 53.  Minnesota Statutes 1996, section 256F.05, 
194.26  subdivision 4, is amended to read: 
194.27     Subd. 4.  [PAYMENTS.] The commissioner shall make grant 
194.28  payments to each county whose biennial community social services 
194.29  plan has been approved under section 256F.04, subdivision 2.  
194.30  The basic grant under subdivisions 2 and 3 and the development 
194.31  grant under section 256.8711, subdivision 6a, shall be paid to 
194.32  counties in four installments per year.  The commissioner may 
194.33  certify the payments for the first three months of a calendar 
194.34  year.  Subsequent payments shall be based on reported 
194.35  expenditures and may be adjusted for anticipated spending 
194.36  patterns.  The placement earnings grant under section 256.8711, 
195.1   subdivision 6b, paragraph (a), shall be based on earnings and 
195.2   coordinated with the other payments.  In calendar years 1996 and 
195.3   1997, the placement earnings grant and the development grant 
195.4   shall be distributed separately from the basic grant, except as 
195.5   provided in subdivision 7, paragraph (a).  Beginning with 
195.6   calendar year 1998, after each annual or quarterly calculation, 
195.7   these three component grants shall be added together into a 
195.8   single family preservation fund grant and treated as a single 
195.9   grant. 
195.10     Sec. 54.  Minnesota Statutes 1996, section 256F.05, 
195.11  subdivision 8, is amended to read: 
195.12     Subd. 8.  [USES OF FAMILY PRESERVATION FUND GRANTS.] For 
195.13  both basic grants and single family preservation fund grants:  
195.14  (a) A county which has not demonstrated that year that its 
195.15  family preservation core services are developed as provided in 
195.16  subdivision 1a, must use its family preservation fund grant 
195.17  exclusively for family preservation services defined in section 
195.18  256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 
195.19     (b) A county which has demonstrated that year that its 
195.20  family preservation core services are developed becomes eligible 
195.21  either to continue using its family preservation fund grant as 
195.22  provided in paragraph (a), or to exercise the expanded service 
195.23  option under paragraph (c). 
195.24     (c) The expanded service option permits an eligible county 
195.25  to use its family preservation fund grant for child welfare 
195.26  preventative preventive services as defined in section 256F.10, 
195.27  subdivision 7, paragraph (d).  For purposes of this section, 
195.28  child welfare preventive services are those services directed 
195.29  toward a specific child or family that further the goals of 
195.30  section 256F.01 and include assessments, family preservation 
195.31  services, service coordination, community-based treatment, 
195.32  crisis nursery services when the parents retain custody and 
195.33  there is no voluntary placement agreement with a child-placing 
195.34  agency, respite care except when it is provided under a medical 
195.35  assistance waiver, home-based services, and other related 
195.36  services.  For purposes of this section, child welfare 
196.1   preventive services shall not include shelter care or other 
196.2   placement services under the authority of the court or public 
196.3   agency to address an emergency.  To exercise this option, an 
196.4   eligible county must notify the commissioner in writing of its 
196.5   intention to do so no later than 30 days into the quarter during 
196.6   which it intends to begin or in its county plan, as provided in 
196.7   section 256F.04, subdivision 2.  Effective with the first day of 
196.8   that quarter, the county must maintain its base level of 
196.9   expenditures for child welfare preventative preventive services 
196.10  and use the family preservation fund to expand them.  The base 
196.11  level of expenditures for a county shall be that established 
196.12  under section 256F.10, subdivision 7.  For counties which have 
196.13  no such base established, a comparable base shall be established 
196.14  with the base year being the calendar year ending at least two 
196.15  calendar quarters before the first calendar quarter in which the 
196.16  county exercises its expanded service option.  The commissioner 
196.17  shall, at the request of the counties, reduce, suspend, or 
196.18  eliminate either or both of a county's obligations to continue 
196.19  the base level of expenditures and to expand child welfare 
196.20  preventative preventive services based on conditions described 
196.21  in section 256F.10, subdivision 7, paragraph (b) or (c) under 
196.22  extraordinary circumstances.  
196.23     (d) Each county's placement earnings and development grant 
196.24  shall be determined under section 256.8711, but after each 
196.25  annual or quarterly calculation, if added to that county's basic 
196.26  grant, the three component grants shall be treated as a single 
196.27  family preservation fund grant. 
196.28     Sec. 55.  Minnesota Statutes 1996, section 256F.06, 
196.29  subdivision 1, is amended to read: 
196.30     Subdivision 1.  [RESPONSIBILITIES.] A county board may, 
196.31  alone or in combination with other county boards, apply for a 
196.32  family preservation fund grant as provided in section 256F.04, 
196.33  subdivision 2.  Upon approval of the grant, the county board may 
196.34  contract for or directly provide family-based and other eligible 
196.35  services.  A county board may contract with or directly provide 
196.36  eligible services to children and families through a local 
197.1   collaborative. 
197.2      Sec. 56.  Minnesota Statutes 1996, section 256F.06, 
197.3   subdivision 2, is amended to read: 
197.4      Subd. 2.  [DEVELOPING FAMILY PRESERVATION CORE SERVICES.] A 
197.5   county board shall endeavor to develop and expand its family 
197.6   preservation core services.  When a county can demonstrate that 
197.7   its family preservation core services are developed as provided 
197.8   in section 256F.05, subdivision 1a, a county board becomes 
197.9   eligible to exercise the expanded service option under section 
197.10  256F.05, subdivision 8, paragraph (c).  For calendar years 1996 
197.11  and 1997, the county board also becomes eligible to request that 
197.12  its basic, placement earnings, and development grants be added 
197.13  into a single grant under section 256F.05, subdivision 7, 
197.14  paragraph (a). 
197.15     Sec. 57.  Minnesota Statutes 1996, section 256G.02, 
197.16  subdivision 6, is amended to read: 
197.17     Subd. 6.  [EXCLUDED TIME.] "Excluded time" means: 
197.18     (a) any period an applicant spends in a hospital, 
197.19  sanitarium, nursing home, shelter other than an emergency 
197.20  shelter, halfway house, foster home, semi-independent living 
197.21  domicile or services program, residential facility offering 
197.22  care, board and lodging facility or other institution for the 
197.23  hospitalization or care of human beings, as defined in section 
197.24  144.50, 144A.01, or 245A.02, subdivision 14; maternity home, 
197.25  battered women's shelter, or correctional facility; or any 
197.26  facility based on an emergency hold under sections 253B.05, 
197.27  subdivisions 1 and 2, and 253B.07, subdivision 6; 
197.28     (b) any period an applicant spends on a placement basis in 
197.29  a training and habilitation program, including a rehabilitation 
197.30  facility or work or employment program as defined in section 
197.31  268A.01; or receiving personal care assistant services pursuant 
197.32  to section 256B.0627, subdivision 4; semi-independent living 
197.33  services provided under section 252.275, and Minnesota Rules, 
197.34  parts 9525.0500 to 9525.0660; day training and habilitation 
197.35  programs, and community-based services and assisted living 
197.36  services; and 
198.1      (c) any placement for a person with an indeterminate 
198.2   commitment, including independent living. 
198.3      Sec. 58.  Minnesota Statutes 1996, section 259.67, 
198.4   subdivision 4, is amended to read: 
198.5      Subd. 4.  [ELIGIBILITY CONDITIONS.] (a) The placing agency 
198.6   shall determine use the AFDC requirements in effect on June 1, 
198.7   1995, when determining the child's eligibility for adoption 
198.8   assistance under title IV-E of the Social Security Act.  If the 
198.9   child does not qualify, the placing agency shall certify a child 
198.10  as eligible for state funded adoption assistance only if the 
198.11  following criteria are met:  
198.12     (1) Due to the child's characteristics or circumstances it 
198.13  would be difficult to provide the child an adoptive home without 
198.14  adoption assistance.  
198.15     (2)(i) A placement agency has made reasonable efforts to 
198.16  place the child for adoption without adoption assistance, but 
198.17  has been unsuccessful; or 
198.18     (ii) the child's licensed foster parents desire to adopt 
198.19  the child and it is determined by the placing agency that the 
198.20  adoption is in the best interest of the child. 
198.21     (3) The child has been a ward of the commissioner or a 
198.22  Minnesota-licensed child-placing agency.  
198.23     (b) For purposes of this subdivision, the characteristics 
198.24  or circumstances that may be considered in determining whether a 
198.25  child is a child with special needs under United States Code, 
198.26  title 42, chapter 7, subchapter IV, part E, or meets the 
198.27  requirements of paragraph (a), clause (1), are the following: 
198.28     (1) The child is a member of a sibling group to be placed 
198.29  as one unit in which at least one sibling is older than 15 
198.30  months of age or is described in clause (2) or (3). 
198.31     (2) The child has documented physical, mental, emotional, 
198.32  or behavioral disabilities. 
198.33     (3) The child has a high risk of developing physical, 
198.34  mental, emotional, or behavioral disabilities. 
198.35     (c) When a child's eligibility for adoption assistance is 
198.36  based upon the high risk of developing physical, mental, 
199.1   emotional, or behavioral disabilities, payments shall not be 
199.2   made under the adoption assistance agreement unless and until 
199.3   the potential disability manifests itself as documented by an 
199.4   appropriate health care professional. 
199.5      Sec. 59.  [TRANSFER OF RESPONSIBILITIES FOR PROVIDING 
199.6   SECURE CRISIS SHELTER.] 
199.7      In state fiscal year 2000, all of the powers, duties, and 
199.8   functions of the commissioner of human services relating to the 
199.9   operation and funding of shelters for battered women are 
199.10  transferred to the commissioner of corrections in accordance 
199.11  with Minnesota Statutes, section 15.039, except for personnel 
199.12  transfers under Minnesota Statutes, section 15.039, subdivision 
199.13  7. 
199.14     Sec. 60.  [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 
199.15     The legislature makes the following findings: 
199.16     (a) The legislature is statutorily required to balance the 
199.17  state budget. 
199.18     (b) The task of balancing the state budget is made 
199.19  difficult in the area of the new federal welfare reform program 
199.20  for the needy due to the dramatic change in program design that 
199.21  this state and all other states must experience, rendering 
199.22  historical data on client behavior, interstate migration, and 
199.23  welfare spending patterns of dubious value. 
199.24     (c) Many states have more restrictive or nonexistent state 
199.25  welfare programs to aid needy individuals without children. 
199.26     (d) Within the state's limited resources, the legislature 
199.27  wishes to manage funds appropriated under this part to best 
199.28  provide for needy Minnesotans. 
199.29     (e) To that end, the legislature has adopted a policy in 
199.30  Minnesota Statutes, section 256D.066, of providing households of 
199.31  needy individuals or couples without children in which no 
199.32  mandatory member has resided in Minnesota for the previous 12 
199.33  months a benefit based on the grant the household would have 
199.34  received had it applied for benefits in its previous state of 
199.35  residence. 
199.36     (f) Therefore, if the policy designed to make welfare 
200.1   benefits a neutral factor in the decision to move to Minnesota 
200.2   and to best manage the benefit appropriation for needy 
200.3   Minnesotans, while providing a safety net for recent interstate 
200.4   migrants, is enjoined or otherwise prevented from being 
200.5   implemented, the following benefit standards replace those in 
200.6   Minnesota Statutes, section 256D.01: 
200.7                ELIGIBLE PERSONS            MONTHLY STANDARD 
200.8            Minor not living with parent,              $116 
200.9            stepparent, or legal custodian 
200.10           Married couple with no children            $121 
200.11           First Adult Standard                       $ 87 
200.12           Second Adult Standard                      $ 34 
200.13           If one adult of a married couple is not
200.14           included in the GA unit for any reason,
200.15           use the second adult standard for the
200.16           remaining member. 
200.17           One adult not living with parent;          $ 94 
200.18           one adult living with parent(s) who have no 
200.19           minor children; or an emancipated minor 
200.20           One adult living with parent(s) 
200.21               and the parent's one minor child         $ 44 
200.22               and the parent's two minor children      $ 41 
200.23               and the parent's three minor children    $ 35 
200.24               and the parent's four minor children     $ 35 
200.25               and the parent's five minor children     $ 36 
200.26               and the parent's six minor children      $ 31 
200.27               and the parent's seven minor children    $ 30 
200.28               and the parent's eight minor children    $ 26 
200.29               and the parent's nine minor children     $ 25 
200.30               and the parent's ten minor children      $ 25 
200.31     Sec. 61.  [REPEALER.] 
200.32     Minnesota Statutes 1996, sections 256.8711; 256D.02, 
200.33  subdivision 5; 256D.05, subdivisions 3 and 3a; 256D.0511; 
200.34  256D.065; 256F.05, subdivisions 5 and 7; and 256G.05, 
200.35  subdivision 2, are repealed. 
200.36     Sec. 62.  [EFFECTIVE DATES.] 
200.37     Subdivision 1.  [DATES RELATED TO MFIP FIELD TRIAL.] From 
200.38  January 1, 1998, to March 31, 1998, Minnesota Statutes 1996, 
200.39  sections 256.736, 256.737, 256.738, and 256.739 are effective 
200.40  only in counties that operate an MFIP field trial that continues 
200.41  to provide STRIDE services to members of the MFIP control group 
200.42  and in those counties that have not completed conversion to 
200.43  MFIP-S employment and training services.  From April 1, 1998, to 
200.44  June 30, 1998, these statutes are effective only in counties 
201.1   that operate an MFIP field trial that continues to provide 
201.2   STRIDE services to members of the control group.  These statutes 
201.3   are repealed effective June 30, 1998. 
201.4      Subd. 2.  [GENERAL EFFECTIVE DATE.] Sections 1 to 61 are 
201.5   effective July 1, 1997. 
201.6                              ARTICLE 4
201.7                 TECHNICAL CHANGES; CROSS REFERENCES 
201.8      Section 1.  Minnesota Statutes 1996, section 13.46, 
201.9   subdivision 1, is amended to read: 
201.10     Subdivision 1.  [DEFINITIONS.] As used in this section: 
201.11     (a) "Individual" means an individual pursuant according to 
201.12  section 13.02, subdivision 8, but does not include a vendor of 
201.13  services. 
201.14     (b) "Program" includes all programs for which authority is 
201.15  vested in a component of the welfare system pursuant according 
201.16  to statute or federal law, including, but not limited to, aid to 
201.17  families with dependent children Minnesota family investment 
201.18  program-statewide, medical assistance, general assistance, work 
201.19  readiness, general assistance medical care, and child support 
201.20  collections.  
201.21     (c) "Welfare system" includes the department of human 
201.22  services, local social services agencies, county welfare 
201.23  agencies, the public authority responsible for child support 
201.24  enforcement, human services boards, community mental health 
201.25  center boards, state hospitals, state nursing homes, the 
201.26  ombudsman for mental health and mental retardation, and persons, 
201.27  agencies, institutions, organizations, and other entities under 
201.28  contract to any of the above agencies to the extent specified in 
201.29  the contract. 
201.30     (d) "Mental health data" means data on individual clients 
201.31  and patients of community mental health centers, established 
201.32  under section 245.62, mental health divisions of counties and 
201.33  other providers under contract to deliver mental health 
201.34  services, or the ombudsman for mental health and mental 
201.35  retardation. 
201.36     (e) "Fugitive felon" means a person who has been convicted 
202.1   of a felony and who has escaped from confinement or violated the 
202.2   terms of probation or parole for that offense. 
202.3      Sec. 2.  Minnesota Statutes 1996, section 13.46, 
202.4   subdivision 2, is amended to read: 
202.5      Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
202.6   a statute specifically provides a different classification, data 
202.7   on individuals collected, maintained, used, or disseminated by 
202.8   the welfare system is private data on individuals, and shall not 
202.9   be disclosed except:  
202.10     (1) pursuant according to section 13.05; 
202.11     (2) pursuant according to court order; 
202.12     (3) pursuant according to a statute specifically 
202.13  authorizing access to the private data; 
202.14     (4) to an agent of the welfare system, including a law 
202.15  enforcement person, attorney, or investigator acting for it in 
202.16  the investigation or prosecution of a criminal or civil 
202.17  proceeding relating to the administration of a program; 
202.18     (5) to personnel of the welfare system who require the data 
202.19  to determine eligibility, amount of assistance, and the need to 
202.20  provide services of additional programs to the individual; 
202.21     (6) to administer federal funds or programs; 
202.22     (7) between personnel of the welfare system working in the 
202.23  same program; 
202.24     (8) the amounts of cash public assistance and relief paid 
202.25  to welfare recipients in this state, including their names, 
202.26  social security numbers, income, addresses, and other data as 
202.27  required, upon request by the department of revenue to 
202.28  administer the property tax refund law, supplemental housing 
202.29  allowance, early refund of refundable tax credits, and the 
202.30  income tax.  "Refundable tax credits" means the dependent care 
202.31  credit under section 290.067, the Minnesota working family 
202.32  credit under section 290.0671, the property tax refund under 
202.33  section 290A.04, and, if the required federal waiver or waivers 
202.34  are granted, the federal earned income tax credit under section 
202.35  32 of the Internal Revenue Code; 
202.36     (9) to the Minnesota department of economic security for 
203.1   the purpose of monitoring the eligibility of the data subject 
203.2   for reemployment insurance, for any employment or training 
203.3   program administered, supervised, or certified by that agency, 
203.4   or for the purpose of administering any rehabilitation program, 
203.5   whether alone or in conjunction with the welfare system, and to 
203.6   verify receipt of energy assistance for the telephone assistance 
203.7   plan; 
203.8      (10) to appropriate parties in connection with an emergency 
203.9   if knowledge of the information is necessary to protect the 
203.10  health or safety of the individual or other individuals or 
203.11  persons; 
203.12     (11) data maintained by residential programs as defined in 
203.13  section 245A.02 may be disclosed to the protection and advocacy 
203.14  system established in this state pursuant according to Part C of 
203.15  Public Law Number 98-527 to protect the legal and human rights 
203.16  of persons with mental retardation or other related conditions 
203.17  who live in residential facilities for these persons if the 
203.18  protection and advocacy system receives a complaint by or on 
203.19  behalf of that person and the person does not have a legal 
203.20  guardian or the state or a designee of the state is the legal 
203.21  guardian of the person; 
203.22     (12) to the county medical examiner or the county coroner 
203.23  for identifying or locating relatives or friends of a deceased 
203.24  person; 
203.25     (13) data on a child support obligor who makes payments to 
203.26  the public agency may be disclosed to the higher education 
203.27  services office to the extent necessary to determine eligibility 
203.28  under section 136A.121, subdivision 2, clause (5); 
203.29     (14) participant social security numbers and names 
203.30  collected by the telephone assistance program may be disclosed 
203.31  to the department of revenue to conduct an electronic data match 
203.32  with the property tax refund database to determine eligibility 
203.33  under section 237.70, subdivision 4a; 
203.34     (15) the current address of a recipient of aid to families 
203.35  with dependent children Minnesota family investment 
203.36  program-statewide may be disclosed to law enforcement officers 
204.1   who provide the name and social security number of the recipient 
204.2   and satisfactorily demonstrate that:  (i) the recipient is a 
204.3   fugitive felon, including the grounds for this determination; 
204.4   (ii) the location or apprehension of the felon is within the law 
204.5   enforcement officer's official duties; and (iii) the request is 
204.6   made in writing and in the proper exercise of those duties; 
204.7      (16) the current address of a recipient of general 
204.8   assistance, work readiness, or general assistance medical care 
204.9   may be disclosed to probation officers and corrections agents 
204.10  who are supervising the recipient, and to law enforcement 
204.11  officers who are investigating the recipient in connection with 
204.12  a felony level offense; 
204.13     (17) information obtained from food stamp applicant or 
204.14  recipient households may be disclosed to local, state, or 
204.15  federal law enforcement officials, upon their written request, 
204.16  for the purpose of investigating an alleged violation of the 
204.17  food stamp act, in accordance with according to Code of Federal 
204.18  Regulations, title 7, section 272.1(c); 
204.19     (18) data on a child support obligor who is in arrears may 
204.20  be disclosed for purposes of publishing the data pursuant 
204.21  according to section 518.575; 
204.22     (19) data on child support payments made by a child support 
204.23  obligor may be disclosed to the obligee; 
204.24     (20) data in the work reporting system may be disclosed 
204.25  under section 256.998, subdivision 7; 
204.26     (21) to the department of children, families, and learning 
204.27  for the purpose of matching department of children, families, 
204.28  and learning student data with public assistance data to 
204.29  determine students eligible for free and reduced price meals, 
204.30  meal supplements, and free milk pursuant according to United 
204.31  States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
204.32  and 1773; to produce accurate numbers of students receiving aid 
204.33  to families with dependent children Minnesota family investment 
204.34  program-statewide as required by section 124.175; and to 
204.35  allocate federal and state funds that are distributed based on 
204.36  income of the student's family; or 
205.1      (22) the current address and telephone number of program 
205.2   recipients and emergency contacts may be released to the 
205.3   commissioner of health or a local board of health as defined in 
205.4   section 145A.02, subdivision 2, when the commissioner or local 
205.5   board of health has reason to believe that a program recipient 
205.6   is a disease case, carrier, suspect case, or at risk of illness, 
205.7   and the data are necessary to locate the person. 
205.8      (b) Information on persons who have been treated for drug 
205.9   or alcohol abuse may only be disclosed in accordance with 
205.10  according to the requirements of Code of Federal Regulations, 
205.11  title 42, sections 2.1 to 2.67. 
205.12     (c) Data provided to law enforcement agencies under 
205.13  paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
205.14  investigative data and are confidential or protected nonpublic 
205.15  while the investigation is active.  The data are private after 
205.16  the investigation becomes inactive under section 13.82, 
205.17  subdivision 5, paragraph (a) or (b). 
205.18     (d) Mental health data shall be treated as provided in 
205.19  subdivisions 7, 8, and 9, but is not subject to the access 
205.20  provisions of subdivision 10, paragraph (b). 
205.21     Sec. 3.  Minnesota Statutes 1996, section 84.98, 
205.22  subdivision 3, is amended to read: 
205.23     Subd. 3.  [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 
205.24  PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 
205.25  determining economic, social, physical, or educational 
205.26  disadvantage shall be determined as provided in this subdivision.
205.27     (b) Economically disadvantaged are persons who meet the 
205.28  criteria for disadvantaged established by the department of 
205.29  economic security or persons receiving services provided by the 
205.30  department of human services such as welfare payments, food 
205.31  stamps, and aid to families with dependent children Minnesota 
205.32  family investment program-statewide.  
205.33     (c) Socially disadvantaged are persons who have been 
205.34  classified as persons in need of supervision by the court system.
205.35     (d) Physically disadvantaged are persons who have been 
205.36  identified as having special needs by public agencies that deal 
206.1   with employment for the disabled. 
206.2      (e) Educationally disadvantaged are persons who have 
206.3   dropped out of school or are at risk of dropping out of school 
206.4   and persons with learning disabilities or in need of special 
206.5   education classes.  
206.6      Sec. 4.  Minnesota Statutes 1996, section 124.17, 
206.7   subdivision 1d, is amended to read: 
206.8      Subd. 1d.  [AFDC MFIP-S PUPIL UNITS.] AFDC MFIP-S pupil 
206.9   units for fiscal year 1993 and thereafter must be computed 
206.10  according to this subdivision.  
206.11     (a) The AFDC MFIP-S concentration percentage for a district 
206.12  equals the product of 100 times the ratio of:  
206.13     (1) the number of pupils enrolled in the district from 
206.14  families receiving aid to families with dependent children 
206.15  Minnesota family investment program-statewide according to 
206.16  subdivision 1e; to 
206.17     (2) the number of pupils in average daily membership 
206.18  according to subdivision 1e enrolled in the district. 
206.19     (b) The AFDC MFIP-S pupil weighting factor for a district 
206.20  equals the lesser of one or the quotient obtained by dividing 
206.21  the district's AFDC MFIP-S concentration percentage by 11.5.  
206.22     (c) The AFDC MFIP-S pupil units for a district for fiscal 
206.23  year 1993 and thereafter equals the product of:  
206.24     (1) the number of pupils enrolled in the district from 
206.25  families receiving aid to families with dependent children 
206.26  Minnesota family investment program-statewide according to 
206.27  subdivision 1e; times 
206.28     (2) the AFDC MFIP-S pupil weighting factor for the 
206.29  district; times 
206.30     (3) .67. 
206.31     Sec. 5.  Minnesota Statutes 1996, section 124.17, 
206.32  subdivision 1e, is amended to read: 
206.33     Subd. 1e.  [AFDC MFIP-S PUPIL COUNTS.] AFDC MFIP-S pupil 
206.34  counts and average daily membership for subdivisions 1b and 1d 
206.35  shall be determined according to this subdivision: 
206.36     (a) For districts where the number of pupils from families 
207.1   receiving aid to families with dependent children Minnesota 
207.2   family investment program-statewide has increased over the 
207.3   preceding year for each of the two previous years, the number of 
207.4   pupils enrolled in the district from families receiving aid to 
207.5   families with dependent children Minnesota family investment 
207.6   program-statewide shall be those counted on October 1 of the 
207.7   previous school year.  The average daily membership used shall 
207.8   be from the previous school year. 
207.9      (b) For districts that do not meet the requirement of 
207.10  paragraph (a), the number of pupils enrolled in the district 
207.11  from families receiving aid to families with dependent children 
207.12  Minnesota family investment program-statewide shall be the 
207.13  average number of pupils on October 1 of the second previous 
207.14  school year and October 1 of the previous school year.  The 
207.15  average daily membership used shall be the average number 
207.16  enrolled in the previous school year and the second previous 
207.17  school year. 
207.18     (c) Notwithstanding paragraphs (a) and (b), for charter 
207.19  schools in the first three years of operation, the number of 
207.20  pupils enrolled from families receiving AFDC MFIP-S shall be 
207.21  those counted on October 1 of the current school year.  The 
207.22  average daily membership used shall be from the current school 
207.23  year.  
207.24     Sec. 6.  Minnesota Statutes 1996, section 124.175, is 
207.25  amended to read: 
207.26     124.175 [AFDC PUPIL COUNT.] 
207.27     Each year by March 1, the department of human services 
207.28  shall certify to the department of children, families, and 
207.29  learning, for each school district, the number of pupils from 
207.30  families receiving aid to families with dependent children 
207.31  Minnesota family investment program-statewide who were enrolled 
207.32  in a public school on October 1 of the preceding year.  
207.33     Sec. 7.  Minnesota Statutes 1996, section 124A.02, 
207.34  subdivision 16, is amended to read: 
207.35     Subd. 16.  [PUPIL UNITS, AFDC MFIP-S.] "AFDC MFIP-S pupil 
207.36  units" for fiscal year 1993 and thereafter means pupil units 
208.1   identified in section 124.17, subdivision 1d.  
208.2      Sec. 8.  Minnesota Statutes 1996, section 124A.22, 
208.3   subdivision 3, is amended to read: 
208.4      Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] The 
208.5   compensatory education revenue for each district equals the 
208.6   formula allowance less $300 times the AFDC MFIP-S pupil units 
208.7   computed according to section 124.17, subdivision 1d. 
208.8      Sec. 9.  Minnesota Statutes 1996, section 136A.125, 
208.9   subdivision 2, is amended to read: 
208.10     Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
208.11  a child care grant if the applicant: 
208.12     (1) is a resident of the state of Minnesota; 
208.13     (2) has a child 12 years of age or younger, or 14 years of 
208.14  age or younger who is handicapped as defined in section 120.03, 
208.15  and who is receiving or will receive care on a regular basis 
208.16  from a licensed or legal, nonlicensed caregiver; 
208.17     (3) is income eligible as determined by the office's 
208.18  policies and rules, but is not a recipient of aid to families 
208.19  with dependent children Minnesota family investment 
208.20  program-statewide; 
208.21     (4) has not earned a baccalaureate degree and has been 
208.22  enrolled full time less than eight semesters, 12 quarters, or 
208.23  the equivalent; 
208.24     (5) is pursuing a nonsectarian program or course of study 
208.25  that applies to an undergraduate degree, diploma, or 
208.26  certificate; 
208.27     (6) is enrolled at least half time in an eligible 
208.28  institution; and 
208.29     (7) is in good academic standing and making satisfactory 
208.30  academic progress. 
208.31     Sec. 10.  Minnesota Statutes 1996, section 196.27, is 
208.32  amended to read: 
208.33     196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 
208.34     (a) Payments received by veterans or their dependents 
208.35  because of settlements between them and the manufacturers of 
208.36  Agent Orange or other chemical agents, as defined in section 
209.1   196.21, must not be treated as income (or an available resource) 
209.2   of the veterans or their dependents for the purposes of any 
209.3   program of public assistance or benefit program administered by 
209.4   the department of veterans affairs, the department of human 
209.5   services, or other agencies of the state or political 
209.6   subdivisions of the state, except as provided in paragraph (b). 
209.7      (b) The income and resource exclusion in paragraph (a) does 
209.8   not apply to the medical assistance, food stamps, or aid to 
209.9   families with dependent children Minnesota family investment 
209.10  program-statewide programs until the commissioner of human 
209.11  services receives formal approval from the United States 
209.12  Department of Health and Human Services, for the medical 
209.13  assistance and aid to families with dependent children Minnesota 
209.14  family investment program-statewide programs, and from the 
209.15  United States Department of Agriculture, for the food stamps 
209.16  program.  The income exclusion does not apply to the Minnesota 
209.17  supplemental aid program until the commissioner receives formal 
209.18  federal approval of the exclusion for the medical assistance 
209.19  program. 
209.20     Sec. 11.  Minnesota Statutes 1996, section 237.70, 
209.21  subdivision 4a, is amended to read: 
209.22     Subd. 4a.  [HOUSEHOLDS ELIGIBLE FOR CREDITS.] The telephone 
209.23  assistance plan must provide telephone assistance credit for a 
209.24  residential household in Minnesota that meets each of the 
209.25  following criteria: 
209.26     (1) has a household member who: 
209.27     (i) subscribes to local exchange service; and 
209.28     (ii) is either disabled or 65 years of age or older; 
209.29     (2) whose household income is 150 percent or less of 
209.30  federal poverty guidelines or is currently eligible for: 
209.31     (i) aid to families with dependent children Minnesota 
209.32  family investment program-statewide; 
209.33     (ii) medical assistance; 
209.34     (iii) general assistance; 
209.35     (iv) Minnesota supplemental aid; 
209.36     (v) food stamps; 
210.1      (vi) refugee cash assistance or refugee medical assistance; 
210.2      (vii) energy assistance; or 
210.3      (viii) supplemental security income; and 
210.4      (3) who has been certified as eligible for telephone 
210.5   assistance plan credits. 
210.6      Sec. 12.  Minnesota Statutes 1996, section 254B.02, 
210.7   subdivision 1, is amended to read: 
210.8      Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
210.9   The chemical dependency funds appropriated for allocation shall 
210.10  be placed in a special revenue account.  For the fiscal year 
210.11  beginning July 1, 1987, funds shall be transferred to operate 
210.12  the vendor payment, invoice processing, and collections system 
210.13  for one year.  The commissioner shall annually transfer funds 
210.14  from the chemical dependency fund to pay for operation of the 
210.15  drug and alcohol abuse normative evaluation system and to pay 
210.16  for all costs incurred by adding two positions for licensing of 
210.17  chemical dependency treatment and rehabilitation programs 
210.18  located in hospitals for which funds are not otherwise 
210.19  appropriated.  The commissioner shall annually divide the money 
210.20  available in the chemical dependency fund that is not held in 
210.21  reserve by counties from a previous allocation.  Twelve percent 
210.22  of the remaining money must be reserved for treatment of 
210.23  American Indians by eligible vendors under section 254B.05.  The 
210.24  remainder of the money must be allocated among the counties 
210.25  according to the following formula, using state demographer data 
210.26  and other data sources determined by the commissioner: 
210.27     (a) For purposes of this formula, American Indians and 
210.28  children under age 14 are subtracted from the population of each 
210.29  county to determine the restricted population. 
210.30     (b) The amount of chemical dependency fund expenditures for 
210.31  entitled persons for services not covered by prepaid plans 
210.32  governed by section 256B.69 in the previous year is divided by 
210.33  the amount of chemical dependency fund expenditures for entitled 
210.34  persons for all services to determine the proportion of exempt 
210.35  service expenditures for each county. 
210.36     (c) The prepaid plan months of eligibility is multiplied by 
211.1   the proportion of exempt service expenditures to determine the 
211.2   adjusted prepaid plan months of eligibility for each county. 
211.3      (d) The adjusted prepaid plan months of eligibility is 
211.4   added to the number of restricted population fee for service 
211.5   months of eligibility for aid to families with dependent 
211.6   children Minnesota family investment program-statewide, general 
211.7   assistance, and medical assistance and divided by the county 
211.8   restricted population to determine county per capita months of 
211.9   covered service eligibility. 
211.10     (e) The number of adjusted prepaid plan months of 
211.11  eligibility for the state is added to the number of fee for 
211.12  service months of eligibility for aid to families with dependent 
211.13  children Minnesota family investment program-statewide, general 
211.14  assistance, and medical assistance for the state restricted 
211.15  population and divided by the state restricted population to 
211.16  determine state per capita months of covered service eligibility.
211.17     (f) The county per capita months of covered service 
211.18  eligibility is divided by the state per capita months of covered 
211.19  service eligibility to determine the county welfare caseload 
211.20  factor. 
211.21     (g) The median married couple income for the most recent 
211.22  three-year period available for the state is divided by the 
211.23  median married couple income for the same period for each county 
211.24  to determine the income factor for each county. 
211.25     (h) The county restricted population is multiplied by the 
211.26  sum of the county welfare caseload factor and the county income 
211.27  factor to determine the adjusted population. 
211.28     (i) $15,000 shall be allocated to each county.  
211.29     (j) The remaining funds shall be allocated proportional to 
211.30  the county adjusted population. 
211.31     Sec. 13.  Minnesota Statutes 1996, section 256.01, 
211.32  subdivision 2, is amended to read: 
211.33     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
211.34  section 241.021, subdivision 2, the commissioner of human 
211.35  services shall: 
211.36     (1) Administer and supervise all forms of public assistance 
212.1   provided for by state law and other welfare activities or 
212.2   services as are vested in the commissioner.  Administration and 
212.3   supervision of human services activities or services includes, 
212.4   but is not limited to, assuring timely and accurate distribution 
212.5   of benefits, completeness of service, and quality program 
212.6   management.  In addition to administering and supervising human 
212.7   services activities vested by law in the department, the 
212.8   commissioner shall have the authority to: 
212.9      (a) require county agency participation in training and 
212.10  technical assistance programs to promote compliance with 
212.11  statutes, rules, federal laws, regulations, and policies 
212.12  governing human services; 
212.13     (b) monitor, on an ongoing basis, the performance of county 
212.14  agencies in the operation and administration of human services, 
212.15  enforce compliance with statutes, rules, federal laws, 
212.16  regulations, and policies governing welfare services and promote 
212.17  excellence of administration and program operation; 
212.18     (c) develop a quality control program or other monitoring 
212.19  program to review county performance and accuracy of benefit 
212.20  determinations; 
212.21     (d) require county agencies to make an adjustment to the 
212.22  public assistance benefits issued to any individual consistent 
212.23  with federal law and regulation and state law and rule and to 
212.24  issue or recover benefits as appropriate; 
212.25     (e) delay or deny payment of all or part of the state and 
212.26  federal share of benefits and administrative reimbursement 
212.27  according to the procedures set forth in section 256.017; and 
212.28     (f) make contracts with and grants to public and private 
212.29  agencies and organizations, both profit and nonprofit, and 
212.30  individuals, using appropriated funds. 
212.31     (2) Inform county agencies, on a timely basis, of changes 
212.32  in statute, rule, federal law, regulation, and policy necessary 
212.33  to county agency administration of the programs. 
212.34     (3) Administer and supervise all child welfare activities; 
212.35  promote the enforcement of laws protecting handicapped, 
212.36  dependent, neglected and delinquent children, and children born 
213.1   to mothers who were not married to the children's fathers at the 
213.2   times of the conception nor at the births of the children; 
213.3   license and supervise child-caring and child-placing agencies 
213.4   and institutions; supervise the care of children in boarding and 
213.5   foster homes or in private institutions; and generally perform 
213.6   all functions relating to the field of child welfare now vested 
213.7   in the state board of control. 
213.8      (4) Administer and supervise all noninstitutional service 
213.9   to handicapped persons, including those who are visually 
213.10  impaired, hearing impaired, or physically impaired or otherwise 
213.11  handicapped.  The commissioner may provide and contract for the 
213.12  care and treatment of qualified indigent children in facilities 
213.13  other than those located and available at state hospitals when 
213.14  it is not feasible to provide the service in state hospitals. 
213.15     (5) Assist and actively cooperate with other departments, 
213.16  agencies and institutions, local, state, and federal, by 
213.17  performing services in conformity with the purposes of Laws 
213.18  1939, chapter 431. 
213.19     (6) Act as the agent of and cooperate with the federal 
213.20  government in matters of mutual concern relative to and in 
213.21  conformity with the provisions of Laws 1939, chapter 431, 
213.22  including the administration of any federal funds granted to the 
213.23  state to aid in the performance of any functions of the 
213.24  commissioner as specified in Laws 1939, chapter 431, and 
213.25  including the promulgation of rules making uniformly available 
213.26  medical care benefits to all recipients of public assistance, at 
213.27  such times as the federal government increases its participation 
213.28  in assistance expenditures for medical care to recipients of 
213.29  public assistance, the cost thereof to be borne in the same 
213.30  proportion as are grants of aid to said recipients. 
213.31     (7) Establish and maintain any administrative units 
213.32  reasonably necessary for the performance of administrative 
213.33  functions common to all divisions of the department. 
213.34     (8) Act as designated guardian of both the estate and the 
213.35  person of all the wards of the state of Minnesota, whether by 
213.36  operation of law or by an order of court, without any further 
214.1   act or proceeding whatever, except as to persons committed as 
214.2   mentally retarded.  
214.3      (9) Act as coordinating referral and informational center 
214.4   on requests for service for newly arrived immigrants coming to 
214.5   Minnesota. 
214.6      (10) The specific enumeration of powers and duties as 
214.7   hereinabove set forth shall in no way be construed to be a 
214.8   limitation upon the general transfer of powers herein contained. 
214.9      (11) Establish county, regional, or statewide schedules of 
214.10  maximum fees and charges which may be paid by county agencies 
214.11  for medical, dental, surgical, hospital, nursing and nursing 
214.12  home care and medicine and medical supplies under all programs 
214.13  of medical care provided by the state and for congregate living 
214.14  care under the income maintenance programs. 
214.15     (12) Have the authority to conduct and administer 
214.16  experimental projects to test methods and procedures of 
214.17  administering assistance and services to recipients or potential 
214.18  recipients of public welfare.  To carry out such experimental 
214.19  projects, it is further provided that the commissioner of human 
214.20  services is authorized to waive the enforcement of existing 
214.21  specific statutory program requirements, rules, and standards in 
214.22  one or more counties.  The order establishing the waiver shall 
214.23  provide alternative methods and procedures of administration, 
214.24  shall not be in conflict with the basic purposes, coverage, or 
214.25  benefits provided by law, and in no event shall the duration of 
214.26  a project exceed four years.  It is further provided that no 
214.27  order establishing an experimental project as authorized by the 
214.28  provisions of this section shall become effective until the 
214.29  following conditions have been met: 
214.30     (a) The proposed comprehensive plan, including estimated 
214.31  project costs and the proposed order establishing the waiver, 
214.32  shall be filed with the secretary of the senate and chief clerk 
214.33  of the house of representatives at least 60 days prior to its 
214.34  effective date. 
214.35     (b) The secretary of health, education, and welfare of the 
214.36  United States has agreed, for the same project, to waive state 
215.1   plan requirements relative to statewide uniformity. 
215.2      (c) A comprehensive plan, including estimated project 
215.3   costs, shall be approved by the legislative advisory commission 
215.4   and filed with the commissioner of administration.  
215.5      (13) In accordance with According to federal requirements, 
215.6   establish procedures to be followed by local welfare boards in 
215.7   creating citizen advisory committees, including procedures for 
215.8   selection of committee members. 
215.9      (14) Allocate federal fiscal disallowances or sanctions 
215.10  which are based on quality control error rates for the aid to 
215.11  families with dependent children Minnesota family investment 
215.12  program-statewide, medical assistance, or food stamp program in 
215.13  the following manner:  
215.14     (a) One-half of the total amount of the disallowance shall 
215.15  be borne by the county boards responsible for administering the 
215.16  programs.  For the medical assistance and AFDC MFIP-S programs, 
215.17  disallowances shall be shared by each county board in the same 
215.18  proportion as that county's expenditures for the sanctioned 
215.19  program are to the total of all counties' expenditures for the 
215.20  AFDC MFIP-S and medical assistance programs.  For the food stamp 
215.21  program, sanctions shall be shared by each county board, with 50 
215.22  percent of the sanction being distributed to each county in the 
215.23  same proportion as that county's administrative costs for food 
215.24  stamps are to the total of all food stamp administrative costs 
215.25  for all counties, and 50 percent of the sanctions being 
215.26  distributed to each county in the same proportion as that 
215.27  county's value of food stamp benefits issued are to the total of 
215.28  all benefits issued for all counties.  Each county shall pay its 
215.29  share of the disallowance to the state of Minnesota.  When a 
215.30  county fails to pay the amount due hereunder, the commissioner 
215.31  may deduct the amount from reimbursement otherwise due the 
215.32  county, or the attorney general, upon the request of the 
215.33  commissioner, may institute civil action to recover the amount 
215.34  due. 
215.35     (b) Notwithstanding the provisions of paragraph (a), if the 
215.36  disallowance results from knowing noncompliance by one or more 
216.1   counties with a specific program instruction, and that knowing 
216.2   noncompliance is a matter of official county board record, the 
216.3   commissioner may require payment or recover from the county or 
216.4   counties, in the manner prescribed in paragraph (a), an amount 
216.5   equal to the portion of the total disallowance which resulted 
216.6   from the noncompliance, and may distribute the balance of the 
216.7   disallowance according to paragraph (a).  
216.8      (15) Develop and implement special projects that maximize 
216.9   reimbursements and result in the recovery of money to the 
216.10  state.  For the purpose of recovering state money, the 
216.11  commissioner may enter into contracts with third parties.  Any 
216.12  recoveries that result from projects or contracts entered into 
216.13  under this paragraph shall be deposited in the state treasury 
216.14  and credited to a special account until the balance in the 
216.15  account reaches $1,000,000.  When the balance in the account 
216.16  exceeds $1,000,000, the excess shall be transferred and credited 
216.17  to the general fund.  All money in the account is appropriated 
216.18  to the commissioner for the purposes of this paragraph. 
216.19     (16) Have the authority to make direct payments to 
216.20  facilities providing shelter to women and their children 
216.21  pursuant according to section 256D.05, subdivision 3.  Upon the 
216.22  written request of a shelter facility that has been denied 
216.23  payments under section 256D.05, subdivision 3, the commissioner 
216.24  shall review all relevant evidence and make a determination 
216.25  within 30 days of the request for review regarding issuance of 
216.26  direct payments to the shelter facility.  Failure to act within 
216.27  30 days shall be considered a determination not to issue direct 
216.28  payments. 
216.29     (17) Have the authority to establish and enforce the 
216.30  following county reporting requirements:  
216.31     (a) The commissioner shall establish fiscal and statistical 
216.32  reporting requirements necessary to account for the expenditure 
216.33  of funds allocated to counties for human services programs.  
216.34  When establishing financial and statistical reporting 
216.35  requirements, the commissioner shall evaluate all reports, in 
216.36  consultation with the counties, to determine if the reports can 
217.1   be simplified or the number of reports can be reduced. 
217.2      (b) The county board shall submit monthly or quarterly 
217.3   reports to the department as required by the commissioner.  
217.4   Monthly reports are due no later than 15 working days after the 
217.5   end of the month.  Quarterly reports are due no later than 30 
217.6   calendar days after the end of the quarter, unless the 
217.7   commissioner determines that the deadline must be shortened to 
217.8   20 calendar days to avoid jeopardizing compliance with federal 
217.9   deadlines or risking a loss of federal funding.  Only reports 
217.10  that are complete, legible, and in the required format shall be 
217.11  accepted by the commissioner.  
217.12     (c) If the required reports are not received by the 
217.13  deadlines established in clause (b), the commissioner may delay 
217.14  payments and withhold funds from the county board until the next 
217.15  reporting period.  When the report is needed to account for the 
217.16  use of federal funds and the late report results in a reduction 
217.17  in federal funding, the commissioner shall withhold from the 
217.18  county boards with late reports an amount equal to the reduction 
217.19  in federal funding until full federal funding is received.  
217.20     (d) A county board that submits reports that are late, 
217.21  illegible, incomplete, or not in the required format for two out 
217.22  of three consecutive reporting periods is considered 
217.23  noncompliant.  When a county board is found to be noncompliant, 
217.24  the commissioner shall notify the county board of the reason the 
217.25  county board is considered noncompliant and request that the 
217.26  county board develop a corrective action plan stating how the 
217.27  county board plans to correct the problem.  The corrective 
217.28  action plan must be submitted to the commissioner within 45 days 
217.29  after the date the county board received notice of noncompliance.
217.30     (e) The final deadline for fiscal reports or amendments to 
217.31  fiscal reports is one year after the date the report was 
217.32  originally due.  If the commissioner does not receive a report 
217.33  by the final deadline, the county board forfeits the funding 
217.34  associated with the report for that reporting period and the 
217.35  county board must repay any funds associated with the report 
217.36  received for that reporting period. 
218.1      (f) The commissioner may not delay payments, withhold 
218.2   funds, or require repayment under paragraph (c) or (e) if the 
218.3   county demonstrates that the commissioner failed to provide 
218.4   appropriate forms, guidelines, and technical assistance to 
218.5   enable the county to comply with the requirements.  If the 
218.6   county board disagrees with an action taken by the commissioner 
218.7   under paragraph (c) or (e), the county board may appeal the 
218.8   action according to sections 14.57 to 14.69. 
218.9      (g) Counties subject to withholding of funds under 
218.10  paragraph (c) or forfeiture or repayment of funds under 
218.11  paragraph (e) shall not reduce or withhold benefits or services 
218.12  to clients to cover costs incurred due to actions taken by the 
218.13  commissioner under paragraph (c) or (e). 
218.14     (18) Allocate federal fiscal disallowances or sanctions for 
218.15  audit exceptions when federal fiscal disallowances or sanctions 
218.16  are based on a statewide random sample for the foster care 
218.17  program under title IV-E of the Social Security Act, United 
218.18  States Code, title 42, in direct proportion to each county's 
218.19  title IV-E foster care maintenance claim for that period. 
218.20     Sec. 14.  Minnesota Statutes 1996, section 256.01, 
218.21  subdivision 4a, is amended to read: 
218.22     Subd. 4a.  [TECHNICAL ASSISTANCE FOR IMMUNIZATION 
218.23  REMINDERS.] The state agency shall provide appropriate technical 
218.24  assistance to county agencies to develop methods to have county 
218.25  financial workers remind and encourage recipients of aid to 
218.26  families with dependent children Minnesota family investment 
218.27  program-statewide, the Minnesota family investment plan, medical 
218.28  assistance, family general assistance, or food stamps whose 
218.29  assistance unit includes at least one child under the age of 
218.30  five to have each young child immunized against childhood 
218.31  diseases.  The state agency must examine the feasibility of 
218.32  utilizing the capacity of a statewide computer system to assist 
218.33  county agency financial workers in performing this function at 
218.34  appropriate intervals. 
218.35     Sec. 15.  Minnesota Statutes 1996, section 256.017, 
218.36  subdivision 1, is amended to read: 
219.1      Subdivision 1.  [AUTHORITY AND PURPOSE.] The commissioner 
219.2   shall administer a compliance system for aid to families with 
219.3   dependent children Minnesota family investment 
219.4   program-statewide, the food stamp program, emergency assistance, 
219.5   general assistance, work readiness, medical assistance, general 
219.6   assistance medical care, emergency general assistance, Minnesota 
219.7   supplemental assistance, preadmission screening, and alternative 
219.8   care grants under the powers and authorities named in section 
219.9   256.01, subdivision 2.  The purpose of the compliance system is 
219.10  to permit the commissioner to supervise the administration of 
219.11  public assistance programs and to enforce timely and accurate 
219.12  distribution of benefits, completeness of service and efficient 
219.13  and effective program management and operations, to increase 
219.14  uniformity and consistency in the administration and delivery of 
219.15  public assistance programs throughout the state, and to reduce 
219.16  the possibility of sanctions and fiscal disallowances for 
219.17  noncompliance with federal regulations and state statutes. 
219.18     The commissioner shall utilize training, technical 
219.19  assistance, and monitoring activities, as specified in section 
219.20  256.01, subdivision 2, to encourage county agency compliance 
219.21  with written policies and procedures. 
219.22     Sec. 16.  Minnesota Statutes 1996, section 256.017, 
219.23  subdivision 4, is amended to read: 
219.24     Subd. 4.  [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 
219.25  CASE PENALTY.] (a) The amount of the quality control case 
219.26  penalty is limited to the amount of the dollar error for the 
219.27  quality control sample month in a reviewed case as determined by 
219.28  the state quality control review procedures for the aid to 
219.29  families with dependent children Minnesota family investment 
219.30  program-statewide and food stamp programs or for any other 
219.31  income transfer program for which the commissioner develops a 
219.32  quality control program. 
219.33     (b) Payment errors in medical assistance or any other 
219.34  medical services program for which the department develops a 
219.35  quality control program are subject to set rate penalties based 
219.36  on the average cost of the specific quality control error 
220.1   element for a sample review month for that household size and 
220.2   status of institutionalization and as determined from state 
220.3   quality control data in the preceding fiscal year for the 
220.4   corresponding program. 
220.5      (c) Errors identified in negative action cases, such as 
220.6   incorrect terminations or denials of assistance are subject to 
220.7   set rate penalties based on the average benefit cost of that 
220.8   household size as determined from state quality control data in 
220.9   the preceding fiscal year for the corresponding program. 
220.10     Sec. 17.  Minnesota Statutes 1996, section 256.019, is 
220.11  amended to read: 
220.12     256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 
220.13     When an amount is recovered from any source for assistance 
220.14  given under the provisions governing public assistance programs 
220.15  including aid to families with dependent children Minnesota 
220.16  family investment program-statewide, emergency assistance, 
220.17  general assistance, work readiness, and Minnesota supplemental 
220.18  aid, there shall be paid to the United States the amount due 
220.19  under the terms of the Social Security Act and the balance must 
220.20  be paid into the treasury of the state or county in accordance 
220.21  with according to current rates of financial participation; 
220.22  except if the recovery is made by a county agency using any 
220.23  method other than recoupment, the county may keep one-half of 
220.24  the nonfederal share of the recovery.  This does not apply to 
220.25  recoveries from medical providers or to recoveries begun by the 
220.26  department of human services' surveillance and utilization 
220.27  review division, state hospital collections unit, and the 
220.28  benefit recoveries division or, by the attorney general's 
220.29  office, or child support collections. 
220.30     Sec. 18.  Minnesota Statutes 1996, section 256.031, 
220.31  subdivision 5, is amended to read: 
220.32     Subd. 5.  [FEDERAL WAIVERS.] In accordance with According 
220.33  to sections 256.031 to 256.0361 and federal laws authorizing the 
220.34  program, the commissioner shall seek waivers of federal 
220.35  requirements of:  United States Code, title 42, section 601 et 
220.36  seq., and United States Code, title 7, section 2011 et seq., 
221.1   needed to implement the Minnesota family investment plan in a 
221.2   manner consistent with the goals and objectives of the program.  
221.3   The commissioner shall seek terms from the federal government 
221.4   that are consistent with the goals of the Minnesota family 
221.5   investment plan.  The commissioner shall also seek terms from 
221.6   the federal government that will maximize federal financial 
221.7   participation so that the extra costs to the state of 
221.8   implementing the program are minimized, to the extent that those 
221.9   terms are consistent with the goals of the Minnesota family 
221.10  investment plan.  An agreement with the federal government under 
221.11  this section shall provide that the agreements may be canceled 
221.12  by the state or federal government upon 180 days' notice or 
221.13  immediately upon mutual agreement.  If the agreement is 
221.14  canceled, families which cease receiving assistance under the 
221.15  Minnesota family investment plan who are eligible for the aid to 
221.16  families with dependent children Minnesota family investment 
221.17  program-statewide, general assistance, medical assistance, 
221.18  general assistance medical care, or the food stamp program must 
221.19  be placed with their consent on the programs for which they are 
221.20  eligible. 
221.21     Sec. 19.  Minnesota Statutes 1996, section 256.046, 
221.22  subdivision 1, is amended to read: 
221.23     Subdivision 1.  [HEARING AUTHORITY.] A local agency may 
221.24  initiate an administrative fraud disqualification hearing for 
221.25  individuals accused of wrongfully obtaining assistance or 
221.26  intentional program violations in the aid to families with 
221.27  dependent children Minnesota family investment program-statewide 
221.28  or food stamp programs.  The hearing is subject to the 
221.29  requirements of section 256.045 and the requirements in Code of 
221.30  Federal Regulations, title 7, section 273.16, for the food stamp 
221.31  program and title 45, section 235.112, for the aid to families 
221.32  with dependent children Minnesota family investment 
221.33  program-statewide program. 
221.34     Sec. 20.  Minnesota Statutes 1996, section 256.935, 
221.35  subdivision 1, is amended to read: 
221.36     Subdivision 1.  On the death of any person receiving public 
222.1   assistance through aid to dependent children MFIP-S, the county 
222.2   agency shall pay an amount for funeral expenses not exceeding 
222.3   the amount paid for comparable services under section 261.035 
222.4   plus actual cemetery charges.  No funeral expenses shall be paid 
222.5   if the estate of the deceased is sufficient to pay such expenses 
222.6   or if the spouse, who was legally responsible for the support of 
222.7   the deceased while living, is able to pay such expenses; 
222.8   provided, that the additional payment or donation of the cost of 
222.9   cemetery lot, interment, religious service, or for the 
222.10  transportation of the body into or out of the community in which 
222.11  the deceased resided, shall not limit payment by the county 
222.12  agency as herein authorized.  Freedom of choice in the selection 
222.13  of a funeral director shall be granted to persons lawfully 
222.14  authorized to make arrangements for the burial of any such 
222.15  deceased recipient.  In determining the sufficiency of such 
222.16  estate, due regard shall be had for the nature and marketability 
222.17  of the assets of the estate.  The county agency may grant 
222.18  funeral expenses where the sale would cause undue loss to the 
222.19  estate.  Any amount paid for funeral expenses shall be a prior 
222.20  claim against the estate, as provided in section 524.3-805, and 
222.21  any amount recovered shall be reimbursed to the agency which 
222.22  paid the expenses.  The commissioner shall specify requirements 
222.23  for reports, including fiscal reports, according to section 
222.24  256.01, subdivision 2, paragraph (17).  The state share of 
222.25  county agency expenditures shall be 50 percent and the county 
222.26  share shall be 50 percent.  Benefits shall be issued to 
222.27  recipients by the state or county and funded according to 
222.28  section 256.025, subdivision 3, subject to provisions of section 
222.29  256.017. 
222.30     Beginning July 1, 1991, the state will reimburse counties 
222.31  according to the payment schedule set forth in section 256.025 
222.32  for the county share of county agency expenditures made under 
222.33  this subdivision from January 1, 1991, on.  Payment under this 
222.34  subdivision is subject to the provisions of section 256.017. 
222.35     Sec. 21.  Minnesota Statutes 1996, section 256.98, 
222.36  subdivision 8, is amended to read: 
223.1      Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
223.2   to be guilty of wrongfully obtaining assistance by a federal or 
223.3   state court or by an administrative hearing determination, or 
223.4   waiver thereof, through a disqualification consent agreement, or 
223.5   as part of any approved diversion plan under section 401.065 in 
223.6   the aid to families with dependent children Minnesota family 
223.7   investment program-statewide program, the food stamp program, 
223.8   the Minnesota family investment plan, the general 
223.9   assistance program, or family general assistance program, the 
223.10  Minnesota supplemental aid program, or the work readiness 
223.11  program shall be disqualified from that program.  The needs of 
223.12  that individual shall not be taken into consideration in 
223.13  determining the grant level for that assistance unit:  
223.14     (1) for six months after the first offense; 
223.15     (2) for 12 months after the second offense; and 
223.16     (3) permanently after the third or subsequent offense.  
223.17     The period of program disqualification shall begin on the 
223.18  date stipulated on the advance notice of disqualification 
223.19  without possibility of postponement for administrative stay or 
223.20  administrative hearing and shall continue through completion 
223.21  unless and until the findings upon which the sanctions were 
223.22  imposed are reversed by a court of competent jurisdiction.  The 
223.23  period for which sanctions are imposed is not subject to 
223.24  review.  The sanctions provided under this subdivision are in 
223.25  addition to, and not in substitution for, any other sanctions 
223.26  that may be provided for by law for the offense involved.  A 
223.27  disqualification established through hearing or waiver shall 
223.28  result in the disqualification period beginning immediately 
223.29  unless the person has become otherwise ineligible for 
223.30  assistance.  If the person is ineligible for assistance, the 
223.31  disqualification period begins when the person again meets the 
223.32  eligibility criteria of the program from which they were 
223.33  disqualified. 
223.34     Sec. 22.  Minnesota Statutes 1996, section 256.981, is 
223.35  amended to read: 
223.36     256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 
224.1      The commissioner of human services shall, to the extent an 
224.2   appropriation is provided for this purpose, contract with the 
224.3   county attorney's council or other public or private entity 
224.4   experienced in providing training for prosecutors to conduct 
224.5   quarterly workshops and seminars focusing on current aid to 
224.6   families with dependent children Minnesota family investment 
224.7   program-statewide program issues, other income maintenance 
224.8   program changes, recovery issues, alternative sentencing 
224.9   methods, use of technical aids for interviews and 
224.10  interrogations, and other matters affecting prosecution of 
224.11  welfare fraud cases. 
224.12     Sec. 23.  Minnesota Statutes 1996, section 256.983, 
224.13  subdivision 1, is amended to read: 
224.14     Subdivision 1.  [PROGRAMS ESTABLISHED.] Within the limits 
224.15  of available appropriations, and to the extent required or 
224.16  authorized by applicable federal regulations, the commissioner 
224.17  of human services shall require the establishment of fraud 
224.18  prevention investigation programs in the seven counties 
224.19  participating in the fraud prevention investigation pilot 
224.20  project established under this section, and in 11 additional 
224.21  Minnesota counties with the largest aid to families with 
224.22  dependent children Minnesota family investment program-statewide 
224.23  program caseloads as of July 1, 1991.  If funds are sufficient, 
224.24  the commissioner may also extend fraud prevention investigation 
224.25  programs to:  (1) other counties that have welfare fraud control 
224.26  programs already in place based on enhanced funding contracts 
224.27  covering the fraud investigation function; and (2) counties that 
224.28  have the largest AFDC caseloads as of July 1, 1994, and are not 
224.29  currently participating in the fraud prevention investigation 
224.30  pilot project.  The pilot project may be expanded provided the 
224.31  expansion is budget neutral to the state. 
224.32     Sec. 24.  Minnesota Statutes 1996, section 256.983, 
224.33  subdivision 4, is amended to read: 
224.34     Subd. 4.  [FUNDING.] (a) Every involved county agency shall 
224.35  either have in place or obtain an approved contract which meets 
224.36  all federal requirements necessary to obtain enhanced federal 
225.1   funding for its welfare fraud control and fraud prevention 
225.2   investigation programs.  County agency reimbursement shall be 
225.3   made through the settlement provisions applicable to the aid to 
225.4   families with dependent children Minnesota family investment 
225.5   program-statewide and food stamp programs. 
225.6      (b) After allowing an opportunity to establish compliance, 
225.7   the commissioner will deny administrative reimbursement if for 
225.8   any three-month period during any grant year, a county agency 
225.9   fails to comply with fraud investigation guidelines, or fails to 
225.10  meet the cost-effectiveness standards developed by the 
225.11  commissioner.  This result is contingent on the commissioner 
225.12  providing written notice, including an offer of technical 
225.13  assistance, within 30 days of the end of the third or subsequent 
225.14  month of noncompliance.  The county agency shall be required to 
225.15  submit a corrective action plan to the commissioner within 30 
225.16  days of receipt of a notice of noncompliance.  Failure to submit 
225.17  a corrective action plan or, continued deviation from standards 
225.18  of more than ten percent after submission of a corrective action 
225.19  plan, will result in denial of funding for each subsequent month 
225.20  during the grant year or billing the county agency for fraud 
225.21  prevention investigation (FPI) service provided by the 
225.22  commissioner.  The denial of funding shall apply to the general 
225.23  settlement received by the county agency on a quarterly basis 
225.24  and shall not reduce the grant amount applicable to the FPI 
225.25  project.  
225.26     Sec. 25.  Minnesota Statutes 1996, section 256.9861, 
225.27  subdivision 5, is amended to read: 
225.28     Subd. 5.  [FUNDING.] (a) Grant funds are intended to help 
225.29  offset the reduction in federal financial participation to 50 
225.30  percent and may be apportioned to the participating counties 
225.31  whenever feasible, and within the commissioner's discretion, to 
225.32  achieve this goal.  State funding shall be made available 
225.33  contingent on counties submitting a plan that is approved by the 
225.34  department of human services.  Failure or delay in obtaining 
225.35  that approval shall not, however, eliminate the obligation to 
225.36  maintain fraud control efforts at the January 1, 1995, level.  
226.1   Additional counties may be added to the project to the extent 
226.2   that funds are subsequently made available.  Every involved 
226.3   county must meet all federal requirements necessary to obtain 
226.4   federal funding for its welfare fraud control and prevention 
226.5   programs.  County agency reimbursement shall be made through the 
226.6   settlement provisions applicable to the AFDC Minnesota family 
226.7   investment program-statewide and food stamp programs.  
226.8      (b) Should a county agency fail to comply with the 
226.9   standards set, or fail to meet cost-effectiveness standards 
226.10  developed by the commissioner for three months during any grant 
226.11  year, the commissioner shall deny reimbursement or 
226.12  administrative costs, after allowing an opportunity to establish 
226.13  compliance.  
226.14     (c) Any denial of reimbursement under paragraph (b) is 
226.15  contingent on the commissioner providing written notice, 
226.16  including an offer of technical assistance, within 30 days of 
226.17  the end of the third or subsequent months of noncompliance.  The 
226.18  county agency shall be required to submit a corrective action 
226.19  plan to the commissioner within 30 days of receipt of a notice 
226.20  of noncompliance.  Failure to submit a corrective action plan or 
226.21  continued deviation from standards of more than ten percent 
226.22  after submission of corrective action plan, will result in 
226.23  denial of funding for each such month during the grant year, or 
226.24  billing the county agency for program integrity reinvestment 
226.25  project services provided by the commissioner.  The denial of 
226.26  funding shall apply to the general settlement received by the 
226.27  county agency on a quarterly basis and shall not reduce the 
226.28  grant amount applicable to the program integrity reinvestment 
226.29  project. 
226.30     Sec. 26.  Minnesota Statutes 1996, section 256E.03, 
226.31  subdivision 2, is amended to read: 
226.32     Subd. 2.  (a) "Community social services" means services 
226.33  provided or arranged for by county boards to fulfill the 
226.34  responsibilities prescribed in section 256E.08, subdivision 1, 
226.35  to the following groups of persons: 
226.36     (1) families with children under age 18, who are 
227.1   experiencing child dependency, neglect or abuse, and also 
227.2   pregnant adolescents, adolescent parents under the age of 18, 
227.3   and their children; 
227.4      (2) persons who are under the guardianship of the 
227.5   commissioner of human services as dependent and neglected wards; 
227.6      (3) adults who are in need of protection and vulnerable as 
227.7   defined in section 626.5572; 
227.8      (4) persons age 60 and over who are experiencing difficulty 
227.9   living independently and are unable to provide for their own 
227.10  needs; 
227.11     (5) emotionally disturbed children and adolescents, 
227.12  chronically and acutely mentally ill persons who are unable to 
227.13  provide for their own needs or to independently engage in 
227.14  ordinary community activities; 
227.15     (6) persons with mental retardation as defined in section 
227.16  252A.02, subdivision 2, or with related conditions as defined in 
227.17  section 252.27, subdivision 1a, who are unable to provide for 
227.18  their own needs or to independently engage in ordinary community 
227.19  activities; 
227.20     (7) drug dependent and intoxicated persons as defined in 
227.21  section 254A.02, subdivisions 5 and 7, and persons at risk of 
227.22  harm to self or others due to the ingestion of alcohol or other 
227.23  drugs; 
227.24     (8) parents whose income is at or below 70 percent of the 
227.25  state median income and who are in need of child care services 
227.26  in order to secure or retain employment or to obtain the 
227.27  training or education necessary to secure employment; and 
227.28     (9) other groups of persons who, in the judgment of the 
227.29  county board, are in need of social services. 
227.30     (b) Except as provided in section 256E.08, subdivision 5, 
227.31  community social services do not include public assistance 
227.32  programs known as aid to families with dependent children 
227.33  Minnesota family investment program-statewide, Minnesota 
227.34  supplemental aid, medical assistance, general assistance, 
227.35  general assistance medical care, or community health services 
227.36  authorized by sections 145A.09 to 145A.13.  
228.1      Sec. 27.  Minnesota Statutes 1996, section 256E.06, 
228.2   subdivision 1, is amended to read: 
228.3      Subdivision 1.  [FORMULA.] The commissioner of human 
228.4   services shall distribute community social service aids to each 
228.5   county board in an amount determined according to the following 
228.6   formula: 
228.7      In calendar year 1982 and thereafter: 
228.8      (a) One-third shall be distributed on the basis of the 
228.9   average unduplicated number of persons who receive AFDC 
228.10  Minnesota family investment program-statewide, general 
228.11  assistance, and medical assistance per month in the calendar 
228.12  year two years prior to the year for which funds are being 
228.13  distributed as reported in the average monthly caseload reports 
228.14  required under sections 256.01, 256B.04 and 256D.04, and 
228.15  certified by the commissioner of human services; and 
228.16     (b) One-third shall be distributed on the basis of the 
228.17  number of persons residing in the county as determined by the 
228.18  most recent data of the state demographer; 
228.19     (c) One-third shall be distributed on the basis of the 
228.20  number of persons residing in the county who are 65 years old or 
228.21  older as determined by the most recent data of the state 
228.22  demographer. 
228.23     Sec. 28.  Minnesota Statutes 1996, section 256E.06, 
228.24  subdivision 3, is amended to read: 
228.25     Subd. 3.  [PAYMENTS TO COUNTIES.] The commissioner of human 
228.26  services shall make payments for community social services to 
228.27  each county in four installments per year.  The commissioner of 
228.28  human services may certify the payments for the first three 
228.29  months of a calendar year based on estimates of the unduplicated 
228.30  number of persons receiving AFDC Minnesota family investment 
228.31  program-statewide, general assistance and medical assistance for 
228.32  the prior year.  The following three payments shall be adjusted 
228.33  to reflect the actual unduplicated number of persons who 
228.34  received AFDC Minnesota family investment program-statewide, 
228.35  general assistance and medical assistance as required by 
228.36  subdivision 1.  The commissioner shall ensure that the pertinent 
229.1   payment of the allotment for that quarter is made to each county 
229.2   on the first working day after the end of each quarter of the 
229.3   calendar year, except for the last quarter of the calendar 
229.4   year.  The commissioner shall ensure that each county receives 
229.5   its payment of the allotment for that quarter no later than the 
229.6   last working day of that quarter.  This scheduling of payments 
229.7   does not require compliance with subdivision 10.  
229.8      Sec. 29.  Minnesota Statutes 1996, section 256E.07, 
229.9   subdivision 1, is amended to read: 
229.10     Subdivision 1.  [FORMULA.] In federal fiscal year 1985 and 
229.11  subsequent years, money for social services that is received 
229.12  from the federal government to reimburse counties for social 
229.13  service expenditures pursuant according to title XX of the 
229.14  Social Security Act shall be allocated to each county according 
229.15  to the following formula:  
229.16     (a) Two-thirds shall be allocated on the basis of the 
229.17  annual average number of unduplicated active monthly caseloads 
229.18  in each county in the following programs:  aid to families with 
229.19  dependent children Minnesota family investment 
229.20  program-statewide, medical assistance, general assistance, 
229.21  supplementary security income, and Minnesota supplemental aid.  
229.22     (b) One-third shall be allocated on the basis of the number 
229.23  of persons residing in the county as determined by the most 
229.24  recent estimate of the state demographer.  
229.25     (c) The commissioner shall allocate to the counties 
229.26  pursuant according to this section the total money received from 
229.27  the federal government for social services pursuant according to 
229.28  title XX of the Social Security Act, except that portion of the 
229.29  state's allocation which the legislature authorizes for 
229.30  administrative purposes and for migrant day care. 
229.31     Sec. 30.  Minnesota Statutes 1996, section 256E.08, 
229.32  subdivision 3, is amended to read: 
229.33     Subd. 3.  [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 
229.34  The county board may designate itself, a human services board, 
229.35  or a local social services agency to perform the functions of 
229.36  local social services agencies as prescribed in chapter 393 and 
230.1   assigned to county agencies in other law which pertains to the 
230.2   administration of income maintenance programs known as aid to 
230.3   families with dependent children Minnesota family investment 
230.4   program-statewide, general assistance, Minnesota supplemental 
230.5   aid, medical assistance, general assistance medical care, and 
230.6   emergency assistance.  
230.7      Sec. 31.  Minnesota Statutes 1996, section 256F.05, 
230.8   subdivision 5, is amended to read: 
230.9      Subd. 5.  [INAPPROPRIATE EXPENDITURES.] Family preservation 
230.10  fund basic, placement earnings, and development grant money must 
230.11  not be used for: 
230.12     (1) child day care necessary solely because of the 
230.13  employment or training to prepare for employment, of a parent or 
230.14  other relative with whom the child is living; 
230.15     (2) residential facility payments; 
230.16     (3) adoption assistance payments; 
230.17     (4) public assistance payments for aid to families with 
230.18  dependent children Minnesota family investment 
230.19  program-statewide, supplemental aid, medical assistance, general 
230.20  assistance, general assistance medical care, or community health 
230.21  services authorized by sections 145A.09 to 145A.13; or 
230.22     (5) administrative costs for local social services agency 
230.23  public assistance staff.  
230.24     Sec. 32.  Minnesota Statutes 1996, section 256G.01, 
230.25  subdivision 4, is amended to read: 
230.26     Subd. 4.  [ADDITIONAL COVERAGE.] The provisions in sections 
230.27  256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 
230.28  subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 
230.29  subdivisions 1 to 3, apply to the following programs:  aid to 
230.30  families with dependent children Minnesota family investment 
230.31  program-statewide; medical assistance; general assistance; 
230.32  family general assistance; general assistance medical care; and 
230.33  Minnesota supplemental aid. 
230.34     Sec. 33.  Minnesota Statutes 1996, section 257.3573, 
230.35  subdivision 2, is amended to read: 
230.36     Subd. 2.  [INAPPROPRIATE EXPENDITURES.] Indian child 
231.1   welfare grant money must not be used for: 
231.2      (1) child day care necessary solely because of employment 
231.3   or training for employment of a parent or other relative with 
231.4   whom the child is living; 
231.5      (2) foster care maintenance or difficulty of care payments; 
231.6      (3) residential facility payments; 
231.7      (4) adoption assistance payments; 
231.8      (5) public assistance payments for aid to families with 
231.9   dependent children Minnesota family investment 
231.10  program-statewide, supplemental aid, medical assistance, general 
231.11  assistance, general assistance medical care, or community health 
231.12  services authorized by sections 145A.01 to 145A.14; or 
231.13     (6) administrative costs for income maintenance staff.  
231.14     Sec. 34.  Minnesota Statutes 1996, section 260.38, is 
231.15  amended to read: 
231.16     260.38 [COST, PAYMENT.] 
231.17     In addition to the usual care and services given by public 
231.18  and private agencies, the necessary cost incurred by the 
231.19  commissioner of human services in providing care for such child 
231.20  shall be paid by the county committing such child which, subject 
231.21  to uniform rules established by the commissioner of human 
231.22  services, may receive a reimbursement not exceeding one-half of 
231.23  such costs from funds made available for this purpose by the 
231.24  legislature during the period beginning July 1, 1985, and ending 
231.25  December 31, 1985.  Beginning January 1, 1986, the necessary 
231.26  cost incurred by the commissioner of human services in providing 
231.27  care for the child must be paid by the county committing the 
231.28  child.  Where such child is eligible to receive a grant of aid 
231.29  to families with dependent children Minnesota family investment 
231.30  program-statewide or supplemental security income for the aged, 
231.31  blind, and disabled, or a foster care maintenance payment under 
231.32  Title IV-E of the Social Security Act, United States Code, title 
231.33  42, sections 670 to 676, the child's needs shall be met through 
231.34  these programs.  
231.35     Sec. 35.  Minnesota Statutes 1996, section 268.0111, 
231.36  subdivision 5, is amended to read: 
232.1      Subd. 5.  [INCOME MAINTENANCE AND SUPPORT SERVICES.] 
232.2   "Income maintenance and support services" means programs through 
232.3   which the state or its subdivisions provide direct financial or 
232.4   in-kind support to unemployed or underemployed persons, 
232.5   including reemployment insurance, aid to families with dependent 
232.6   children Minnesota family investment program-statewide, general 
232.7   assistance, work readiness assistance, food stamps, energy 
232.8   assistance, disability determinations, and child care.  Income 
232.9   maintenance and support services do not include medical 
232.10  assistance, aging services, social services, community social 
232.11  services, mental health services, or services for the 
232.12  emotionally disturbed, the mentally retarded, or residents of 
232.13  nursing homes. 
232.14     Sec. 36.  Minnesota Statutes 1996, section 268.0111, 
232.15  subdivision 7, is amended to read: 
232.16     Subd. 7.  [PUBLIC ASSISTANCE.] "Public assistance" 
232.17  means aid to families with dependent children, Minnesota family 
232.18  investment program-statewide and general assistance, and work 
232.19  readiness.  
232.20     Sec. 37.  Minnesota Statutes 1996, section 268.0122, 
232.21  subdivision 3, is amended to read: 
232.22     Subd. 3.  [DUTIES AS A STATE AGENCY.] The commissioner 
232.23  shall: 
232.24     (1) administer the unemployment insurance laws and related 
232.25  programs; 
232.26     (2) administer the aspects of aid to families with 
232.27  dependent children Minnesota family investment 
232.28  program-statewide, general assistance, work readiness, and food 
232.29  stamps that relate to employment and training services, subject 
232.30  to the contract under section 268.86, subdivision 2; 
232.31     (3) administer wage subsidies and the discretionary 
232.32  employment and training fund; 
232.33     (4) administer a national system of public employment 
232.34  offices as prescribed by United States Code, title 29, chapter 
232.35  4B, the Wagner-Peyser Act, and other federal employment and 
232.36  training programs; 
233.1      (5) cooperate with the federal government and its 
233.2   employment and training agencies in any reasonable manner as 
233.3   necessary to qualify for federal aid for employment and training 
233.4   services and money; 
233.5      (6) enter into agreements with other departments of the 
233.6   state and local units of government as necessary; 
233.7      (7) certify employment and training service providers and 
233.8   decertify service providers that fail to comply with performance 
233.9   criteria according to standards established by the commissioner; 
233.10     (8) provide consistent, integrated employment and training 
233.11  services across the state; 
233.12     (9) establish the standards for all employment and training 
233.13  services administered under this chapter; 
233.14     (10) develop standards for the contents and structure of 
233.15  the local service unit plans and plans for Indian tribe 
233.16  employment and training services; 
233.17     (11) provide current state and substate labor market 
233.18  information and forecasts, in cooperation with other agencies; 
233.19     (12) identify underserved populations, unmet service needs, 
233.20  and funding requirements; 
233.21     (13) consult with the council for the blind on matters 
233.22  pertaining to programs and services for the blind and visually 
233.23  impaired; and 
233.24     (14) enter into agreements with Indian tribes as necessary 
233.25  to provide employment and training services as funds become 
233.26  available. 
233.27     Sec. 38.  Minnesota Statutes 1996, section 268.552, 
233.28  subdivision 5, is amended to read: 
233.29     Subd. 5.  [ALLOCATION TO APPLICANTS.] Priority for 
233.30  subsidies shall be in the following order: 
233.31     (1) applicants living in households with no other income 
233.32  source; 
233.33     (2) applicants whose incomes and resources are less than 
233.34  the standard for eligibility for general assistance or work 
233.35  readiness; and 
233.36     (3) applicants who are eligible for aid to families with 
234.1   dependent children Minnesota family investment program-statewide.
234.2      Sec. 39.  Minnesota Statutes 1996, section 268.6751, 
234.3   subdivision 1, is amended to read: 
234.4      Subdivision 1.  [WAGE SUBSIDIES.] Wage subsidy money must 
234.5   be allocated to local service units in the following manner: 
234.6      (a) The commissioner shall allocate 87.5 percent of the 
234.7   funds available for allocation to local service units for wage 
234.8   subsidy programs as follows:  the proportion of the wage subsidy 
234.9   money available to each local service unit must be based on the 
234.10  number of unemployed persons in the local service unit for the 
234.11  most recent six-month period and the number of work readiness 
234.12  assistance cases and aid to families with dependent children 
234.13  Minnesota family investment program-statewide cases in the local 
234.14  service unit for the most recent six-month period. 
234.15     (b) Five percent of the money available for wage subsidy 
234.16  programs must be allocated at the discretion of the commissioner.
234.17     (c) Seven and one-half percent of the money available for 
234.18  wage subsidy programs must be allocated at the discretion of the 
234.19  commissioner to provide jobs for residents of federally 
234.20  recognized Indian reservations.  
234.21     (d) By December 31 of each fiscal year, providers and local 
234.22  service units receiving wage subsidy money shall report to the 
234.23  commissioner on the use of allocated funds.  The commissioner 
234.24  shall reallocate uncommitted funds for each fiscal year 
234.25  according to the formula in paragraph (a). 
234.26     Sec. 40.  Minnesota Statutes 1996, section 268.676, 
234.27  subdivision 1, is amended to read: 
234.28     Subdivision 1.  [AMONG JOB APPLICANTS.] At least 80 percent 
234.29  of funds allocated among eligible job applicants statewide must 
234.30  be allocated to: 
234.31     (1) applicants living in households with no other income 
234.32  source; 
234.33     (2) applicants whose incomes and resources are less than 
234.34  the standards for eligibility for general assistance or work 
234.35  readiness; 
234.36     (3) applicants who are eligible for aid to families with 
235.1   dependent children Minnesota family investment 
235.2   program-statewide; and 
235.3      (4) applicants who live in a farm household who demonstrate 
235.4   severe household financial need. 
235.5      Sec. 41.  Minnesota Statutes 1996, section 268.86, 
235.6   subdivision 2, is amended to read: 
235.7      Subd. 2.  [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 
235.8   commissioner and the commissioner of human services shall enter 
235.9   into a written contract for the design, delivery, and 
235.10  administration of employment and training services for 
235.11  applicants for or recipients of food stamps or aid to families 
235.12  with dependent children and work readiness Minnesota family 
235.13  investment program-statewide, including AFDC MFIP-S employment 
235.14  and training programs, and general assistance or work readiness 
235.15  grant diversion.  The contract must address: 
235.16     (1) specific roles and responsibilities of each department; 
235.17     (2) assignment and supervision of staff for interagency 
235.18  activities including any necessary interagency employee mobility 
235.19  agreements under the administrative procedures of the department 
235.20  of employee relations; 
235.21     (3) mechanisms for determining the conditions under which 
235.22  individuals participate in services, their rights and 
235.23  responsibilities while participating, and the standards by which 
235.24  the services must be administered; 
235.25     (4) procedures for providing technical assistance to local 
235.26  service units, Indian tribes, and employment and training 
235.27  service providers; 
235.28     (5) access to appropriate staff for ongoing development and 
235.29  interpretation of policy, rules, and program standards; 
235.30     (6) procedures for reimbursing appropriate agencies for 
235.31  administrative expenses; and 
235.32     (7) procedures for accessing available federal funds. 
235.33     Sec. 42.  Minnesota Statutes 1996, section 268.871, 
235.34  subdivision 1, is amended to read: 
235.35     Subdivision 1.  [RESPONSIBILITY AND CERTIFICATION.] (a) 
235.36  Unless prohibited by federal law or otherwise determined by 
236.1   state law, a local service unit is responsible for the delivery 
236.2   of employment and training services.  After February 1, 1988, 
236.3   employment and training services must be delivered by certified 
236.4   employment and training service providers.  
236.5      (b) The local service unit's employment and training 
236.6   service provider must meet the certification standards in this 
236.7   subdivision in order to be certified to deliver any of the 
236.8   following employment and training services and programs:  wage 
236.9   subsidies; work readiness; work readiness and general assistance 
236.10  grant diversion; food stamp employment and training programs; 
236.11  community work experience programs; AFDC MFIP-S job search; AFDC 
236.12  MFIP-S grant diversion; AFDC MFIP-S on-the-job training; and 
236.13  AFDC MFIP-S case management.  
236.14     (c) The commissioner shall certify a local service unit's 
236.15  service provider to provide these employment and training 
236.16  services and programs if the commissioner determines that the 
236.17  provider has:  
236.18     (1) past experience in direct delivery of the programs 
236.19  specified in paragraph (b); 
236.20     (2) staff capabilities and qualifications, including 
236.21  adequate staff to provide timely and effective services to 
236.22  clients, and proven staff experience in providing specific 
236.23  services such as assessments, career planning, job development, 
236.24  job placement, support services, and knowledge of community 
236.25  services and educational resources; 
236.26     (3) demonstrated effectiveness in providing services to 
236.27  public assistance recipients and other economically 
236.28  disadvantaged clients; and 
236.29     (4) demonstrated administrative capabilities, including 
236.30  adequate fiscal and accounting procedures, financial management 
236.31  systems, participant data systems, and record retention 
236.32  procedures. 
236.33     (d) When the only service provider that meets the criterion 
236.34  in paragraph (c), clause (1), has been decertified, pursuant 
236.35  according to subdivision 1a, in that local service unit, the 
236.36  following criteria shall be substituted:  past experience in 
237.1   direct delivery of multiple, coordinated, nonduplicative 
237.2   services, including outreach, assessments, identification of 
237.3   client barriers, employability development plans, and provision 
237.4   or referral to support services. 
237.5      (e) The commissioner shall certify providers of the 
237.6   Minnesota family investment plan case management services as 
237.7   defined in section 256.032, subdivision 3.  Providers must meet 
237.8   the standards defined in paragraph (c), except that past 
237.9   experience under paragraph (c), clause (1), must be in services 
237.10  and programs similar to those specified in section 256.032, 
237.11  subdivision 3.  
237.12     Employment and training service providers shall be 
237.13  certified by the commissioner for two fiscal years beginning 
237.14  July 1, 1991, and every second year thereafter. 
237.15     Sec. 43.  Minnesota Statutes 1996, section 268.90, 
237.16  subdivision 2, is amended to read: 
237.17     Subd. 2.  [EMPLOYMENT CONDITIONS.] (a) An eligible 
237.18  nonprofit or public employer may not terminate, lay off, or 
237.19  reduce the regular working hours of an employee for the purpose 
237.20  of hiring an individual with money available under this 
237.21  program.  An eligible employer may not hire an individual with 
237.22  money available through this program if any other person is on 
237.23  layoff from the same or a substantially equivalent job. 
237.24     (b) Community investment program participants are employees 
237.25  of the project employer within the meaning of workers' 
237.26  compensation laws, personal income tax, and the federal 
237.27  insurance contribution act, but not retirement or civil service 
237.28  laws. 
237.29     (c) Each project and job must comply with all applicable 
237.30  affirmative action, fair labor, health, safety, and 
237.31  environmental standards. 
237.32     (d) Individuals employed under the community investment 
237.33  program must be paid a wage at the same wage rates as work site 
237.34  or employees doing comparable work in that locality, unless 
237.35  otherwise specified in law. 
237.36     (e) Recipients of aid to families with dependent children 
238.1   Minnesota family investment program-statewide who are eligible 
238.2   on the basis of an unemployed parent may not have available more 
238.3   than 100 hours a month.  All employees are limited to 32 hours 
238.4   or four days a week, so that they can continue to seek full-time 
238.5   private sector employment, unless otherwise specified in law. 
238.6      (f) The commissioner shall establish, by rule, the terms 
238.7   and conditions governing the participation of appropriate public 
238.8   assistance recipients.  The rules must, at a minimum, establish 
238.9   the procedures by which the minimum and maximum number of work 
238.10  hours and maximum allowable travel distances are determined, the 
238.11  amounts and methods by which work expenses will be paid, and the 
238.12  manner in which support services will be provided.  The rules 
238.13  must also provide for periodic reviews of clients continuing 
238.14  employment in community investment programs. 
238.15     (g) Participation in a community investment program by a 
238.16  recipient of aid to families with dependent children Minnesota 
238.17  family investment program-statewide or general assistance is 
238.18  voluntary; however, work readiness registrants may be required 
238.19  to participate.  
238.20     Sec. 44.  Minnesota Statutes 1996, section 268.916, is 
238.21  amended to read: 
238.22     268.916 [REPORTS.] 
238.23     Each grantee shall submit an annual report to the 
238.24  commissioner on the format designated by the commissioner, 
238.25  including program information report data.  By January 1 of each 
238.26  year, the commissioner shall prepare an annual report to the 
238.27  health and human services committee of the house of 
238.28  representatives and the family services committee of the senate 
238.29  concerning the uses and impact of head start supplemental 
238.30  funding, including a summary of innovative programs and the 
238.31  results of innovative programs and an evaluation of the 
238.32  coordination of head start programs with employment and training 
238.33  services provided to AFDC MFIP-S recipients. 
238.34     Sec. 45.  Minnesota Statutes 1996, section 268.95, 
238.35  subdivision 4, is amended to read: 
238.36     Subd. 4.  [PILOT PROGRAM.] The commissioner shall develop a 
239.1   pilot program, in cooperation with the commissioners of trade 
239.2   and economic development and human services, to enable 
239.3   low-income persons to start or expand self-employment 
239.4   opportunities or home-based businesses that are designed to make 
239.5   the individual entrepreneurs economically independent.  The 
239.6   commissioner of human services shall seek necessary waivers from 
239.7   federal regulations to allow recipients of aid to families with 
239.8   dependent children Minnesota family investment program-statewide 
239.9   to participate and retain eligibility while establishing a 
239.10  business. 
239.11     Sec. 46.  Minnesota Statutes 1996, section 393.07, 
239.12  subdivision 6, is amended to read: 
239.13     Subd. 6.  [PURCHASE OF EQUIPMENT TO AID WELFARE 
239.14  RECIPIENTS.] Every local social services agency authorizing 
239.15  braces, crutches, trusses, wheel chairs and hearing aids for use 
239.16  by recipients of supplemental security income for the aged, 
239.17  blind and disabled, aid to families with dependent children 
239.18  Minnesota family investment program-statewide and relief shall 
239.19  secure such devices at the lowest cost obtainable conducive to 
239.20  the well being of the recipient and fix the recipient's grant in 
239.21  an amount to cover the cost of the device providing it will be 
239.22  purchased at the lowest cost obtainable, or may make payment for 
239.23  the device directly to the vendor. 
239.24     Sec. 47.  Minnesota Statutes 1996, section 477A.0122, 
239.25  subdivision 2, is amended to read: 
239.26     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
239.27  following definitions apply: 
239.28     (a) "Children in out-of-home placement" means the total 
239.29  unduplicated number of children in out-of-home care as reported 
239.30  pursuant according to section 257.0725. 
239.31     (b) "Family preservation programs" means family-based 
239.32  services as defined in section 256F.03, subdivision 5, families 
239.33  first services, parent and child education programs, and day 
239.34  treatment services provided in cooperation with a school 
239.35  district or other programs as defined by the commissioner of 
239.36  human services. 
240.1      (c) "Income maintenance caseload" means average monthly 
240.2   number of AFDC Minnesota family investment program-statewide 
240.3   cases for the calendar year. 
240.4      By July 1, 1994, the commissioner of human services shall 
240.5   certify to the commissioner of revenue the number of children in 
240.6   out-of-home placement in 1991 and 1992 for each county and the 
240.7   income maintenance caseload for each county for the most recent 
240.8   year available.  By July 1 of each subsequent year, the 
240.9   commissioner of human services shall certify to the commissioner 
240.10  of revenue the income maintenance caseload for each county for 
240.11  the most recent calendar year available. 
240.12     Sec. 48.  [EFFECTIVE DATE.] 
240.13     Sections 1 to 47 are effective December 1, 1997.