1.1                          A bill for an act 
  1.2             relating to human services; establishing the Minnesota 
  1.3             family investment program-statewide, contingent 
  1.4             benefit standards, and the work first program; making 
  1.5             assistance program changes; making technical changes; 
  1.6             changing certain county requirements; establishing the 
  1.7             corps to career community service program and the 
  1.8             citizenship promotion program; requiring a plan for 
  1.9             providing a tribal employment and training program; 
  1.10            requiring a proposal for repayment of post-secondary 
  1.11            education funds; establishing program integrity 
  1.12            initiatives; establishing procedures for overpayment 
  1.13            of assistance and establishing notification 
  1.14            requirements; establishing criminal penalties for 
  1.15            wrongfully obtaining assistance; requiring fraud 
  1.16            prevention investigation programs to be budget 
  1.17            neutral; establishing the presumption of receipt of 
  1.18            benefits for persons who have been issued an 
  1.19            assistance transaction card; establishing recovery of 
  1.20            overpayments and ATM errors; requiring notification to 
  1.21            undocumented persons regarding the release of personal 
  1.22            data; amending Minnesota Statutes 1996, sections 
  1.23            13.46, subdivisions 1 and 2; 13.82, subdivision 1; 
  1.24            84.0887, subdivision 2; 84.98, subdivision 3; 
  1.25            136A.125, subdivision 2; 196.27; 237.70, subdivision 
  1.26            4a; 254B.02, subdivision 1; 256.01, subdivision 4a; 
  1.27            256.017, subdivisions 1, 2, and 4; 256.031, 
  1.28            subdivision 5, and by adding a subdivision; 256.033, 
  1.29            subdivisions 1 and 1a; 256.045, subdivision 3; 
  1.30            256.046; 256.736, subdivision 3a; 256.74, subdivision 
  1.31            1, and by adding a subdivision; 256.81; 256.82, 
  1.32            subdivision 2; 256.935, subdivision 1; 256.9354, by 
  1.33            adding a subdivision; 256.98, subdivisions 1 and 4; 
  1.34            256.981; 256.984, subdivision 1; 256.9850; 256.986; 
  1.35            256.9861, subdivisions 1, 2, and 4; 256B.055, 
  1.36            subdivisions 3, 5, and by adding a subdivision; 
  1.37            256B.056, subdivisions 1a, 3, and 4; 256B.057, 
  1.38            subdivisions 1, 1b, and 2b; 256B.06, subdivision 4; 
  1.39            256B.062; 256D.01, subdivisions 1, 1a, and 1e; 
  1.40            256D.02, subdivisions 6 and 12a; 256D.03, subdivision 
  1.41            3; 256D.05, subdivisions 1, 5, and 8; 256D.051, 
  1.42            subdivisions 1a, 2a, 3a, and by adding a subdivision; 
  1.43            256D.055; 256D.06, subdivisions 2 and 5; 256D.08, 
  1.44            subdivisions 1 and 2; 256D.09, subdivision 6, and by 
  1.45            adding a subdivision; 256D.435, subdivision 3; 
  1.46            256D.44, subdivision 5; 256E.03, subdivision 2; 
  2.1             256E.06, subdivisions 1 and 3; 256E.07, subdivision 1; 
  2.2             256E.08, subdivision 3; 256F.05, subdivision 5; 
  2.3             256G.01, subdivision 4; 257.3573, subdivision 2; 
  2.4             259.67, subdivision 4; 260.38; 268.0111, subdivisions 
  2.5             5 and 7; 268.0122, subdivision 3; 268.552, subdivision 
  2.6             5; 268.6751, subdivision 1; 268.676, subdivision 1; 
  2.7             268.86, subdivision 2; 268.871, subdivision 1; 268.90, 
  2.8             subdivision 2; 268.916; 268.95, subdivision 4; 
  2.9             270A.03, subdivision 5; 375.21, subdivision 1; 388.23, 
  2.10            subdivision 1; 393.07, subdivisions 6 and 10; and 
  2.11            477A.0122, subdivision 2; proposing coding for new law 
  2.12            in Minnesota Statutes, chapters 3; 256; 256B; and 
  2.13            256D; proposing coding for new law as Minnesota 
  2.14            Statutes, chapters 256J; and 256K; repealing Minnesota 
  2.15            Statutes 1996, sections 256.12, subdivisions 9, 10, 
  2.16            14, 15, 19, 20, 21, 22, and 23; 256.72; 256.73, 
  2.17            subdivisions 1, 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 
  2.18            10, and 11; 256.7341; 256.7351; 256.7352; 256.7353; 
  2.19            256.7354; 256.7355; 256.7356; 256.7357; 256.7358; 
  2.20            256.7359; 256.736, subdivision 18; 256.7365, 
  2.21            subdivisions 1, 2, 3, 4, 5, 6, 7, and 9; 256.7366; 
  2.22            256.737; 256.738; 256.7381; 256.7382; 256.7383; 
  2.23            256.7384; 256.7385; 256.7386; 256.7387; 256.7388; 
  2.24            256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 
  2.25            256.745; 256.75; 256.76, subdivision 1; 256.78; 
  2.26            256.80; 256.81; 256.82; 256.84; 256.85; 256.86; 
  2.27            256.863; 256.871; 256.8711; 256.879; 256D.02, 
  2.28            subdivision 5; 256D.0511; and 256D.065. 
  2.29  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.30                             ARTICLE 1 
  2.31           MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 
  2.32     Section 1.  [256J.01] [ESTABLISHING MINNESOTA FAMILY 
  2.33  INVESTMENT PROGRAM-STATEWIDE.] 
  2.34     Subdivision 1.  [IMPLEMENTATION OF MINNESOTA FAMILY 
  2.35  INVESTMENT PROGRAM-STATEWIDE (MFIP-S).] This chapter and chapter 
  2.36  256K may be cited as the Minnesota family investment 
  2.37  program-statewide (MFIP-S).  MFIP-S is the statewide 
  2.38  implementation of components of the Minnesota family investment 
  2.39  plan (MFIP) authorized under section 256.031 and Minnesota 
  2.40  family investment plan-Ramsey county (MFIP-R) in section 256.047.
  2.41     This subdivision is effective January 1, 1998, except the 
  2.42  transitional provision in section 72 applies. 
  2.43     Subd. 2.  [IMPLEMENTATION OF TEMPORARY ASSISTANCE FOR NEEDY 
  2.44  FAMILIES (TANF).] The Personal Responsibility and Work 
  2.45  Opportunity Reconciliation Act of 1996, Public Law Number 
  2.46  104-193, eliminates the aid to families with dependent children 
  2.47  (AFDC) program and replaces it with a program of block grants to 
  2.48  states for temporary assistance for needy families (TANF).  TANF 
  2.49  provides cash assistance for a limited time to families with 
  3.1   children and to pregnant women.  Minnesota's TANF assistance 
  3.2   will be provided through a statewide expansion of MFIP.  The 
  3.3   modifications specified in this chapter are necessary to comply 
  3.4   with the new federal law and to improve MFIP.  Eligible 
  3.5   applicants and recipients of AFDC, family general assistance, 
  3.6   and food stamps will be converted to the MFIP-S program.  The 
  3.7   conversion to MFIP-S must be made by January 1, 1998, and may be 
  3.8   made earlier at county option. 
  3.9      Subd. 3.  [RELATIONSHIP TO OTHER STATUTES AND 
  3.10  RULES.] MFIP-S replaces eligibility for families with children 
  3.11  and pregnant women under the general assistance program, 
  3.12  governed by sections 256D.01 to 256D.21 and Minnesota Rules, 
  3.13  parts 9500.1200 to 9500.1270. 
  3.14     This subdivision is effective January 1, 1998, except the 
  3.15  transitional provision in section 72 applies. 
  3.16     Subd. 4.  [CHANGES TO WAIVERS.] The commissioner of human 
  3.17  services may negotiate and obtain changes in the federal waivers 
  3.18  and terms and conditions contained in MFIP, MFIP-R, and MFIP-S.  
  3.19  The commissioner may also terminate federal waivers by directing 
  3.20  so in the applicable state plan. 
  3.21     Subd. 5.  [COMPLIANCE SYSTEM.] The commissioner shall 
  3.22  administer a compliance system for the state's temporary 
  3.23  assistance for needy families (TANF) program, the food stamp 
  3.24  program, emergency assistance, general assistance, medical 
  3.25  assistance, general assistance medical care, emergency general 
  3.26  assistance, Minnesota supplemental aid, preadmission screening, 
  3.27  child support program, and alternative care grants under the 
  3.28  powers and authorities named in section 256.01, subdivision 2.  
  3.29  The purpose of the compliance system is to permit the 
  3.30  commissioner to supervise the administration of public 
  3.31  assistance programs and to enforce timely and accurate 
  3.32  distribution of benefits, completeness of service and efficient 
  3.33  and effective program management and operations, to increase 
  3.34  uniformity and consistency in the administration and delivery of 
  3.35  public assistance programs throughout the state, and to reduce 
  3.36  the possibility of sanction and fiscal disallowances for 
  4.1   noncompliance with federal regulations and state statutes. 
  4.2      Sec. 2.  [256J.02] [FEDERAL TEMPORARY ASSISTANCE FOR NEEDY 
  4.3   FAMILIES BLOCK GRANT.] 
  4.4      Subdivision 1.  [COMMISSIONER'S AUTHORITY TO ADMINISTER 
  4.5   BLOCK GRANT FUNDS.] The commissioner of human services is 
  4.6   authorized to receive, administer, and expend funds available 
  4.7   under the TANF block grant authorized under title I of Public 
  4.8   Law Number 104-193, the Personal Responsibility and Work 
  4.9   Opportunity Reconciliation Act of 1996. 
  4.10     Subd. 2.  [USE OF MONEY.] State money appropriated for 
  4.11  purposes of this section and TANF block grant money must be used 
  4.12  for: 
  4.13     (1) financial assistance to or on behalf of any minor child 
  4.14  who is a resident of this state under section 256J.12; 
  4.15     (2) employment and training services under this chapter or 
  4.16  chapter 256K; 
  4.17     (3) emergency financial assistance and services under 
  4.18  section 256J.48; 
  4.19     (4) diversionary assistance under section 256J.47; and 
  4.20     (5) program administration under this chapter. 
  4.21     Subd. 3.  [CARRY FORWARD OF FEDERAL MONEY.] Temporary 
  4.22  assistance for needy families block grant money must be 
  4.23  appropriated for the purposes in this section and is available 
  4.24  until expended. 
  4.25     Subd. 4.  [AUTHORITY TO TRANSFER.] Subject to limitations 
  4.26  of title I of Public Law Number 104-193, the Personal 
  4.27  Responsibility and Work Opportunity Reconciliation Act of 1996, 
  4.28  the legislature may transfer money from the TANF block grant to 
  4.29  the child care fund under section 119B.02, or the Title XX block 
  4.30  grant under section 256E.07. 
  4.31     Subd. 5.  [INDIRECT COST LIABILITY.] Notwithstanding the 
  4.32  provisions of section 16A.127, the statewide and agency indirect 
  4.33  cost liability identified as part of the TANF grant for any 
  4.34  current fiscal year shall be limited to no more than the amount 
  4.35  received in fiscal year 1996. 
  4.36     Sec. 3.  [256J.06] [COMMUNITY INVOLVEMENT.] 
  5.1      The MFIP-S program must be administered in a way that, in 
  5.2   addition to the county agency, other sectors in the community 
  5.3   such as employers from the public and private sectors, 
  5.4   not-for-profit organizations, educational and social service 
  5.5   agencies, program participants, labor unions, and neighborhood 
  5.6   associations are involved. 
  5.7      Sec. 4.  [256J.08] [DEFINITIONS.] 
  5.8      Subdivision 1.  [SCOPE OF DEFINITIONS.] The terms used in 
  5.9   this chapter have the following meanings unless otherwise 
  5.10  provided for by text. 
  5.11     Subd. 2.  [ABSENT PARENT.] "Absent parent" means a minor 
  5.12  child's parent who does not live in the same home as the child. 
  5.13     Subd. 3.  [AGENCY ERROR.] "Agency error" means an error 
  5.14  that results in an overpayment or underpayment to an assistance 
  5.15  unit and is not caused by an applicant's or participant's 
  5.16  failure to provide adequate, correct, or timely information 
  5.17  about income, property, household composition, or other 
  5.18  circumstances. 
  5.19     Subd. 4.  [APPEAL.] "Appeal" means a written statement from 
  5.20  an applicant or participant who requests a hearing under section 
  5.21  256J.31.  
  5.22     Subd. 5.  [APPLICANT.] "Applicant" means a person who has 
  5.23  submitted to a county agency an application and whose 
  5.24  application has not been acted upon, denied, or voluntarily 
  5.25  withdrawn. 
  5.26     Subd. 6.  [APPLICATION.] "Application" means the submission 
  5.27  by or on behalf of a family to a county agency of a completed, 
  5.28  signed, and dated form, prescribed by the commissioner, that 
  5.29  indicates the desire to receive assistance. 
  5.30     Subd. 7.  [ASSISTANCE UNIT OR MFIP-S ASSISTANCE 
  5.31  UNIT.] "Assistance unit" or "MFIP-S assistance unit" means a 
  5.32  group of mandatory or optional people receiving or applying for 
  5.33  MFIP-S benefits together. 
  5.34     Subd. 8.  [AUTHORIZED REPRESENTATIVE.] "Authorized 
  5.35  representative" means a person who is authorized, in writing, by 
  5.36  an applicant or participant to act on the applicant's or 
  6.1   participant's behalf in matters involving the application for 
  6.2   assistance or participation in MFIP-S. 
  6.3      Subd. 9.  [BASIC NEEDS.] "Basic needs" means the minimum 
  6.4   personal requirements of subsistence and is restricted to food, 
  6.5   clothing, shelter, utilities, and other items for which the 
  6.6   loss, or lack of basic needs, is determined by the county agency 
  6.7   to pose a direct, immediate threat to the physical health or 
  6.8   safety of the applicant or participant. 
  6.9      Subd. 10.  [BUDGET MONTH.] "Budget month" means the 
  6.10  calendar month which the county agency uses to determine the 
  6.11  income or circumstances of an assistance unit to calculate the 
  6.12  amount of the assistance payment in the payment month. 
  6.13     Subd. 11.  [CAREGIVER.] "Caregiver" means a minor child's 
  6.14  natural or adoptive parent or parents who live in the home with 
  6.15  the minor child.  For purposes of determining eligibility for 
  6.16  this program, caregiver also means any of the following 
  6.17  individuals, if adults, who live with and provide care and 
  6.18  support to a minor child when the minor child's natural or 
  6.19  adoptive parent or parents do not reside in the same home:  
  6.20  legal custodians, grandfather, grandmother, brother, sister, 
  6.21  stepfather, stepmother, stepbrother, stepsister, uncle, aunt, 
  6.22  first cousin, nephew, niece, person of preceding generation as 
  6.23  denoted by prefixes of "great," "great-great," or 
  6.24  "great-great-great," or a spouse of any person named in the 
  6.25  above groups even after the marriage ends by death or divorce. 
  6.26     Subd. 12.  [CLIENT ERROR.] "Client error" means an error 
  6.27  that results in an overpayment or underpayment and is due to an 
  6.28  applicant's or participant's failure to provide adequate, 
  6.29  correct, or timely information concerning income, property, 
  6.30  household composition, or other circumstances. 
  6.31     Subd. 13.  [COMMISSIONER.] "Commissioner" means the 
  6.32  commissioner of human services or the commissioner's designated 
  6.33  representative. 
  6.34     Subd. 14.  [CORRECTIVE PAYMENT.] "Corrective payment" means 
  6.35  an assistance payment that is made to correct an underpayment. 
  6.36     Subd. 15.  [COUNTABLE INCOME.] "Countable income" means 
  7.1   earned and unearned income that is not excluded under section 
  7.2   256J.21, subdivision 2, or disregarded under section 256J.21, 
  7.3   subdivision 3. 
  7.4      Subd. 16.  [COUNTED EARNINGS.] "Counted earnings" means the 
  7.5   earned income that remains after applicable disregards under 
  7.6   section 256J.21, subdivision 4, have been subtracted from gross 
  7.7   earned income. 
  7.8      Subd. 17.  [COUNTY AGENCY.] "County agency" means the 
  7.9   agency designated by the county board to implement financial 
  7.10  assistance for current programs and for MFIP-S and the agency 
  7.11  responsible for enforcement of child support collection, and a 
  7.12  county or multicounty agency that is authorized under sections 
  7.13  393.01, subdivision 7, and 393.07, subdivision 2, to administer 
  7.14  MFIP-S. 
  7.15     Subd. 18.  [COUNTY BOARD.] "County board" means a board of 
  7.16  commissioners, a local services agency as defined in chapter 
  7.17  393, a board established under Joint Powers Act, section 471.59, 
  7.18  or a human services board under chapter 402. 
  7.19     Subd. 19.  [COUNTY OF FINANCIAL RESPONSIBILITY.] "County of 
  7.20  financial responsibility" means the county that has financial 
  7.21  responsibility for providing public assistance as specified in 
  7.22  chapter 256G. 
  7.23     Subd. 20.  [COUNTY OF RESIDENCE.] "County of residence" 
  7.24  means the county where the caregiver has established a home. 
  7.25     Subd. 21.  [DATE OF APPLICATION.] "Date of application" 
  7.26  means the date on which the county agency receives an 
  7.27  applicant's signed application. 
  7.28     Subd. 22.  [DEEM.] "Deem" means to treat all or part of the 
  7.29  income of an individual who is not in the assistance unit, but 
  7.30  who is financially responsible for members of the assistance 
  7.31  unit, as if it were income available to the assistance unit. 
  7.32     Subd. 23.  [DEPARTMENT.] "Department" means the Minnesota 
  7.33  department of human services. 
  7.34     Subd. 24.  [DISREGARD.] "Disregard" means earned income 
  7.35  that is not counted when determining initial eligibility or 
  7.36  ongoing eligibility and calculating the amount of the assistance 
  8.1   payment for participants. 
  8.2      Subd. 25.  [DOCUMENTATION.] "Documentation" means a written 
  8.3   statement or record that substantiates or validates an assertion 
  8.4   made by a person or an action taken by a person, agency, or 
  8.5   entity. 
  8.6      Subd. 26.  [EARNED INCOME.] "Earned income" means cash or 
  8.7   in-kind income earned through the receipt of wages, salary, 
  8.8   commissions, profit from employment activities, net profit from 
  8.9   self-employment activities, payments made by an employer for 
  8.10  regularly accrued vacation or sick leave, and any other profit 
  8.11  from activity earned through effort or labor. 
  8.12     Subd. 27.  [EARNED INCOME TAX CREDIT.] "Earned income tax 
  8.13  credit" means the payment which can be obtained by a qualified 
  8.14  person from an employer or from the Internal Revenue Service as 
  8.15  provided by section 290.0671 and United States Code, title 26, 
  8.16  subtitle A, chapter 1, subchapter A, part 4, subpart C, section 
  8.17  32. 
  8.18     Subd. 28.  [EMERGENCY.] "Emergency" means a situation or a 
  8.19  set of circumstances that causes or threatens to cause 
  8.20  destitution to a minor child.  
  8.21     Subd. 29.  [EQUITY VALUE.] "Equity value" means the amount 
  8.22  of equity in real or personal property owned by a person and is 
  8.23  determined by subtracting any outstanding encumbrances from the 
  8.24  fair market value. 
  8.25     Subd. 30.  [EXCLUDED TIME.] "Excluded time" has the meaning 
  8.26  given in section 256G.02. 
  8.27     Subd. 31.  [EXPEDITED ISSUANCE OF THE FOOD STAMP 
  8.28  PORTION.] "Expedited issuance of the food stamp portion" means 
  8.29  the issuance of the food stamp portion to eligible assistance 
  8.30  units on the day of application as provided in section 393.07, 
  8.31  subdivision 10a. 
  8.32     Subd. 32.  [FAIR HEARING OR HEARING.] "Fair hearing" or 
  8.33  "hearing" means the evidentiary hearing conducted by the 
  8.34  department appeals referee to resolve disputes as specified in 
  8.35  sections 256.045 and 256J.40. 
  8.36     Subd. 33.  [FAIR MARKET VALUE.] "Fair market value" means 
  9.1   the price that an item of a particular make, model, size, 
  9.2   material, or condition would sell for on the open market in the 
  9.3   particular geographic area. 
  9.4      Subd. 34.  [FAMILY.] "Family" includes: 
  9.5      (1) the following individuals who live together:  a minor 
  9.6   child or a group of minor children related to each other as 
  9.7   siblings, half siblings, stepsiblings, or adoptive siblings, 
  9.8   together with their natural, adoptive parents, stepparents, or 
  9.9   caregiver as defined in subdivision 11; and 
  9.10     (2) a pregnant woman with no other children. 
  9.11     Subd. 35.  [FAMILY WAGE LEVEL.] "Family wage level" means 
  9.12  109 percent of the transitional standard. 
  9.13     Subd. 36.  [FEDERAL INSURANCE CONTRIBUTION ACT OR 
  9.14  FICA.] "Federal Insurance Contribution Act" or "FICA" means the 
  9.15  federal law under United States Code, title 26, subtitle C, 
  9.16  chapter 21, subchapter A, sections 3101 to 3126, that requires 
  9.17  withholding or direct payment from earned income. 
  9.18     Subd. 37.  [FINANCIAL CASE RECORD.] "Financial case record" 
  9.19  means an assistance unit's financial eligibility file. 
  9.20     Subd. 38.  [FULL-TIME STUDENT.] "Full-time student" means a 
  9.21  person who is enrolled in a graded or ungraded primary, 
  9.22  intermediate, secondary, GED preparatory, trade, technical, 
  9.23  vocational, or post-secondary school, and who meets the school's 
  9.24  standard for full-time attendance. 
  9.25     Subd. 39.  [GENERAL EDUCATIONAL DEVELOPMENT OR 
  9.26  GED.] "General educational development" or "GED" means the 
  9.27  general educational development certification issued by the 
  9.28  Minnesota board of education as an equivalent to a secondary 
  9.29  school diploma under Minnesota Rules, part 3500.3100, subpart 4. 
  9.30     Subd. 40.  [GROSS EARNED INCOME.] "Gross earned income" 
  9.31  means earned income from employment before mandatory and 
  9.32  voluntary payroll deductions.  Gross earned income includes 
  9.33  salaries, wages, tips, gratuities, commissions, incentive 
  9.34  payments from work or training programs, payments made by an 
  9.35  employer for regularly accrued vacation or sick leave, and 
  9.36  profits from other activity earned by an individual's effort or 
 10.1   labor.  Gross earned income includes uniform and meal allowances 
 10.2   if federal income tax is deducted from the allowance.  Gross 
 10.3   earned income includes flexible work benefits received from an 
 10.4   employer if the employee has the option of receiving the benefit 
 10.5   or benefits in cash. 
 10.6      Subd. 41.  [GROSS INCOME.] "Gross income" is the sum of 
 10.7   gross earned income and unearned income. 
 10.8      Subd. 42.  [GROSS RECEIPTS.] "Gross receipts" means the 
 10.9   money received by a business before the expenses of the business 
 10.10  are deducted. 
 10.11     Subd. 43.  [HALF-TIME STUDENT.] "Half-time student" means a 
 10.12  person who is enrolled in a graded or ungraded primary, 
 10.13  intermediate, secondary, GED preparatory, trade, technical, 
 10.14  vocational, or post-secondary school, and who meets the school's 
 10.15  standard of half-time attendance. 
 10.16     Subd. 44.  [HOME.] "Home" means the primary place of 
 10.17  residence used by a person as the base for day-to-day living and 
 10.18  does not include locations used as mail drops. 
 10.19     Subd. 45.  [HOMESTEAD.] "Homestead" means the home that is 
 10.20  owned by, and is the usual residence of, the assistance unit 
 10.21  together with the surrounding property which is not separated 
 10.22  from the home by intervening property owned by others.  Public 
 10.23  rights-of-way, such as roads which run through the surrounding 
 10.24  property and separate it from the home, do not affect the 
 10.25  exemption of the property.  Homestead includes an asset that is 
 10.26  not real property that the assistance unit uses as a home, such 
 10.27  as a vehicle. 
 10.28     Subd. 46.  [HOUSEHOLD.] "Household" means a group of 
 10.29  persons who live together. 
 10.30     Subd. 47.  [INCOME.] "Income" means cash or in-kind 
 10.31  benefit, whether earned or unearned, received by or available to 
 10.32  an applicant or participant that is not an asset under section 
 10.33  256J.20. 
 10.34     Subd. 48.  [INITIAL ELIGIBILITY.] "Initial eligibility" 
 10.35  means the determination of eligibility for an MFIP-S applicant. 
 10.36     Subd. 49.  [IN-KIND INCOME.] "In-kind income" means income, 
 11.1   benefits, or payments which are provided in a form other than 
 11.2   money or liquid assets, including the forms of goods, produce, 
 11.3   services, privileges, or payments made on behalf of an applicant 
 11.4   or participant by a third party. 
 11.5      Subd. 50.  [INQUIRY.] "Inquiry" means a communication to a 
 11.6   county agency through mail, telephone, or in person, by which a 
 11.7   person or authorized representative requests information about 
 11.8   public assistance.  The county agency shall also treat as an 
 11.9   inquiry any communication in which a person requesting 
 11.10  assistance offers information about the person's family 
 11.11  circumstances that indicates that eligibility for public 
 11.12  assistance may exist. 
 11.13     Subd. 51.  [LEGALLY AVAILABLE.] "Legally available" means a 
 11.14  person's right under the law to secure, possess, dispose of, or 
 11.15  control income or property. 
 11.16     Subd. 52.  [LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM OR 
 11.17  LIHEAP.] "Low-income home energy assistance program" or "LIHEAP" 
 11.18  means the program authorized under United States Code, title 42, 
 11.19  chapter 94, subchapter II, sections 8621 to 8629, and 
 11.20  administered by the Minnesota department of economic security. 
 11.21     Subd. 53.  [LUMP SUM.] "Lump sum" means nonrecurring income 
 11.22  that is not excluded in section 256J.21. 
 11.23     Subd. 54.  [MEDICAL ASSISTANCE.] "Medical Assistance" means 
 11.24  the program established under chapter 256B and Title XIX of the 
 11.25  Social Security Act. 
 11.26     Subd. 55.  [MFIP-S HOUSEHOLD REPORT FORM.] "MFIP-S 
 11.27  household report form" means a form prescribed by the 
 11.28  commissioner that a participant uses to report information to a 
 11.29  county agency about changes in income and other circumstances. 
 11.30     Subd. 56.  [MIGRANT WORKER.] "Migrant worker" means a 
 11.31  person who travels away from home on a regular basis, usually 
 11.32  with a group of other laborers, to seek employment in an 
 11.33  agriculturally related activity. 
 11.34     Subd. 57.  [MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 
 11.35  OR MFIP-S.] "Minnesota family investment program-statewide" or 
 11.36  "MFIP-S" means the assistance program authorized in this chapter 
 12.1   and chapter 256K. 
 12.2      Subd. 58.  [MINNESOTA SUPPLEMENTAL AID OR MSA.] "Minnesota 
 12.3   supplemental aid" or "MSA" means the program established under 
 12.4   sections 256D.33 to 256D.54. 
 12.5      Subd. 59.  [MINOR CAREGIVER.] "Minor caregiver" means a 
 12.6   person who: 
 12.7      (1) is under the age of 18; 
 12.8      (2) has never been married or otherwise legally 
 12.9   emancipated; and 
 12.10     (3) is either the natural parent of a minor child living in 
 12.11  the same household or is eligible for assistance paid to a 
 12.12  pregnant woman. 
 12.13     Subd. 60.  [MINOR CHILD.] "Minor child" means a child who 
 12.14  is living in the same home of a parent or other caregiver, is 
 12.15  either less than 18 years of age or is under the age of 19 years 
 12.16  and is regularly attending as a full-time student and is 
 12.17  expected to complete a high school or a secondary level course 
 12.18  of vocational or technical training designed to fit students for 
 12.19  gainful employment before reaching age 19. 
 12.20     Subd. 61.  [MONTHLY INCOME TEST.] "Monthly income test" 
 12.21  means the test used to determine ongoing eligibility and the 
 12.22  assistance payment amount according to section 256J.21. 
 12.23     Subd. 62.  [NONRECURRING INCOME.] "Nonrecurring income" 
 12.24  means a form of income which is received: 
 12.25     (1) only one time or is not of a continuous nature; or 
 12.26     (2) in a prospective payment month but is no longer 
 12.27  received in the corresponding retrospective payment month. 
 12.28     Subd. 63.  [OVERPAYMENT.] "Overpayment" means the portion 
 12.29  of an assistance payment issued by the county agency that is 
 12.30  greater than the amount for which the assistance unit is 
 12.31  eligible. 
 12.32     Subd. 64.  [PARENT.] "Parent" means a child's biological or 
 12.33  adoptive parent who is legally obligated to support that child. 
 12.34     Subd. 65.  [PARTICIPANT.] "Participant" means a person who 
 12.35  is currently receiving cash assistance and the food portion 
 12.36  available through MFIP-S as funded by TANF and the food stamp 
 13.1   program.  A person who fails to withdraw or access 
 13.2   electronically any portion of his or her cash assistance payment 
 13.3   by the end of the payment month or who returns any uncashed 
 13.4   assistance check and withdraws from the program is not a 
 13.5   participant.  A person who withdraws a cash assistance payment 
 13.6   by electronic transfer or receives and cashes a cash assistance 
 13.7   check and is subsequently determined to be ineligible for 
 13.8   assistance for that period of time is a participant, regardless 
 13.9   of whether that assistance is repaid.  The term "participant" 
 13.10  includes the caregiver relative and the minor child whose needs 
 13.11  are included in the assistance payment.  A person in an 
 13.12  assistance unit who does not receive a cash assistance payment 
 13.13  because he or she has been suspended from MFIP-S or because his 
 13.14  or her need falls below the $10 minimum payment level is a 
 13.15  participant. 
 13.16     Subd. 66.  [PAYEE.] "Payee" means a person to whom an 
 13.17  assistance payment is made payable. 
 13.18     Subd. 67.  [PAYMENT MONTH.] "Payment month" means the 
 13.19  calendar month for which the assistance payment is paid. 
 13.20     Subd. 68.  [PERSONAL PROPERTY.] "Personal property" means 
 13.21  an item of value that is not real property, including the value 
 13.22  of a contract for deed held by a seller, assets held in trust on 
 13.23  behalf of members of an assistance unit, cash surrender value of 
 13.24  life insurance, value of a prepaid burial, savings account, 
 13.25  value of stocks and bonds, and value of retirement accounts. 
 13.26     Subd. 69.  [PROBABLE FRAUD.] "Probable fraud" means the 
 13.27  level of evidence that, if proven as fact, would establish that 
 13.28  assistance has been wrongfully obtained. 
 13.29     Subd. 70.  [PROFESSIONAL CERTIFICATION.] "Professional 
 13.30  certification" means: 
 13.31     (1) a statement about a person's illness, injury, or 
 13.32  incapacity that is signed by a licensed physician, psychological 
 13.33  practitioner, or licensed psychologist, qualified by 
 13.34  professional training and experience to diagnose and certify the 
 13.35  person's condition; or 
 13.36     (2) a statement about an incapacity involving a spinal 
 14.1   subluxation condition that is signed by a licensed chiropractor 
 14.2   qualified by professional training and experience to diagnose 
 14.3   and certify the condition. 
 14.4      Subd. 71.  [PROSPECTIVE BUDGETING.] "Prospective budgeting" 
 14.5   means a method of determining the amount of the assistance 
 14.6   payment in which the budget month and payment month are the same.
 14.7      Subd. 72.  [PROTECTIVE PAYEE.] "Protective payee" means a 
 14.8   person other than the caregiver of an assistance unit who 
 14.9   receives the monthly assistance payment on behalf of an 
 14.10  assistance unit and is responsible to provide for the basic 
 14.11  needs of the assistance unit to the extent of that payment. 
 14.12     Subd. 73.  [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 
 14.13  means a person: 
 14.14     (1) who was lawfully admitted for permanent residence 
 14.15  pursuant to United States Code, title 8; 
 14.16     (2) who was admitted to the United States as a refugee 
 14.17  pursuant to United States Code, title 8; section 1157; 
 14.18     (3) whose deportation is being withheld pursuant to United 
 14.19  States Code, title 8, section 1253(h); 
 14.20     (4) who was paroled for a period of at least one year 
 14.21  pursuant to United States Code, title 8, section 1182(d)(5); 
 14.22     (5) who was granted conditional entry pursuant to United 
 14.23  State Code, title 8, section 1153(a)(7); 
 14.24     (6) who was granted asylum pursuant to United States Code, 
 14.25  title 8, section 1158; or 
 14.26     (7) determined to be a battered noncitizen by the United 
 14.27  States Attorney General according to the Illegal Immigration 
 14.28  Reform and Immigrant Responsibility Act of 1996, Title V of the 
 14.29  Omnibus Consolidated Appropriations Act, Public Law Number 
 14.30  104-200. 
 14.31     Subd. 74.  [REAL PROPERTY.] "Real property" means land and 
 14.32  all buildings, structures, and improvements, or other fixtures 
 14.33  on the land, belonging or appertaining to the land, and all 
 14.34  mines, minerals, fossils, and trees on or under the land. 
 14.35     Subd. 75.  [REASONABLE COMPENSATION.] "Reasonable 
 14.36  compensation" means the value received in exchange for property 
 15.1   transferred to another owner that is consistent with fair market 
 15.2   value and equals or exceeds the seller's equity in the property, 
 15.3   reduced by costs incurred in the sale. 
 15.4      Subd. 76.  [RECERTIFICATION.] "Recertification" means the 
 15.5   periodic review of eligibility factors to determine an 
 15.6   assistance unit's continued eligibility. 
 15.7      Subd. 77.  [RECOUPMENT.] "Recoupment" means the action of 
 15.8   the county agency to reduce a family's monthly assistance 
 15.9   payment to recover overpayments caused by client or agency error 
 15.10  and overpayments received while an appeal is pending. 
 15.11     Subd. 78.  [RECOVERY.] "Recovery" means actions taken by a 
 15.12  county agency to reclaim the value of overpayments through 
 15.13  voluntary repayment, recoupment from the assistance payment, 
 15.14  court action, revenue recapture, or federal tax refund offset 
 15.15  program (FRTOP). 
 15.16     Subd. 79.  [RECURRING INCOME.] "Recurring income" means a 
 15.17  form of income which is: 
 15.18     (1) received periodically, and may be received irregularly 
 15.19  when receipt can be anticipated even though the date of receipt 
 15.20  cannot be predicted; and 
 15.21     (2) from the same source or of the same type that is 
 15.22  received and budgeted in a prospective month and is received in 
 15.23  one or both of the first two retrospective months. 
 15.24     Subd. 80.  [REEMPLOYMENT INSURANCE.] "Reemployment 
 15.25  insurance" means the insurance benefit paid to an unemployed 
 15.26  worker under sections 268.03 to 268.23. 
 15.27     Subd. 81.  [RETROSPECTIVE BUDGETING.] "Retrospective 
 15.28  budgeting" means a method of determining the amount of the 
 15.29  assistance payment in which the payment month is the second 
 15.30  month after the budget month. 
 15.31     Subd. 82.  [SANCTION.] "Sanction" means the reduction of a 
 15.32  family's assistance payment by a specified percentage of the 
 15.33  applicable transitional standard because:  a nonexempt 
 15.34  participant fails to comply with the requirements of sections 
 15.35  256J.52 to 256J.55; a parental caregiver fails without good 
 15.36  cause to cooperate with the child support enforcement 
 16.1   requirements; or a participant fails to comply with the 
 16.2   insurance, tort liability, or other requirements of this chapter.
 16.3      Subd. 83.  [SIGNIFICANT CHANGE.] "Significant change" means 
 16.4   a decline in gross income of 35 percent or more from the income 
 16.5   used to determine the grant for the current month. 
 16.6      Subd. 84.  [SUPPLEMENTAL SECURITY INCOME OR 
 16.7   SSI.] "Supplemental Security Income" or "SSI" means the program 
 16.8   authorized under title XVI of the Social Security Act. 
 16.9      Subd. 85.  [TRANSITIONAL STANDARD.] "Transitional standard" 
 16.10  means the basic standard for a family with no other income or a 
 16.11  nonworking family and is a combination of the cash assistance 
 16.12  needs and food assistance needs for a family of that size. 
 16.13     Subd. 86.  [UNEARNED INCOME.] "Unearned income" means 
 16.14  income received by a person that does not meet the definition of 
 16.15  earned income.  Unearned income includes income from a contract 
 16.16  for deed, interest, dividends, reemployment insurance, 
 16.17  disability insurance payments, veterans benefits, pension 
 16.18  payments, return on capital investment, insurance payments or 
 16.19  settlements, severance payments, and payments for illness or 
 16.20  disability whether the premium payments are made in whole or in 
 16.21  part by an employer or participant. 
 16.22     Subd. 87.  [VENDOR.] "Vendor" means a provider of goods or 
 16.23  services. 
 16.24     Subd. 88.  [VENDOR PAYMENT.] "Vendor payment" means a 
 16.25  payment authorized by a county agency to a vendor. 
 16.26     Subd. 89.  [VERIFICATION.] "Verification" means the process 
 16.27  a county agency uses to establish the accuracy or completeness 
 16.28  of information from an applicant, participant, third party, or 
 16.29  other source as that information relates to program eligibility 
 16.30  or an assistance payment. 
 16.31     Subdivisions 1 to 89 are effective January 1, 1998, except 
 16.32  the transitional provision in section 72 applies. 
 16.33     Sec. 5.  [256J.09] [APPLYING FOR ASSISTANCE.] 
 16.34     Subdivision 1.  [WHERE TO APPLY.] A person must apply for 
 16.35  assistance at the county agency in the county where that person 
 16.36  lives. 
 17.1      Subd. 2.  [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 
 17.2   INFORMATION.] A county agency must inform a person who inquires 
 17.3   about assistance about eligibility requirements for assistance 
 17.4   and how to apply for assistance, including diversionary 
 17.5   assistance and emergency assistance.  A county agency must offer 
 17.6   the person brochures developed or approved by the commissioner 
 17.7   that describe how to apply for assistance. 
 17.8      Subd. 3.  [SUBMITTING THE APPLICATION FORM.] A county 
 17.9   agency must offer, in person or by mail, the application forms 
 17.10  prescribed by the commissioner as soon as a person makes a 
 17.11  written or oral inquiry.  At that time, the county agency must 
 17.12  inform the person that assistance begins with the date the 
 17.13  signed application is received by the county agency or the date 
 17.14  all eligibility criteria are met, whichever is later.  The 
 17.15  county agency must inform the applicant that any delay in 
 17.16  submitting the application will reduce the amount of assistance 
 17.17  paid for the month of application.  A county agency must inform 
 17.18  a person that the person may submit the application before an 
 17.19  interview appointment.  To apply for assistance, a person must 
 17.20  submit a signed application to the county agency.  Upon receipt 
 17.21  of a signed application, the county agency must stamp the date 
 17.22  of receipt on the face of the application.  The county agency 
 17.23  must process the application within the time period required 
 17.24  under subdivision 5.  An applicant may withdraw the application 
 17.25  at any time by giving written or oral notice to the county 
 17.26  agency.  The county agency must issue a written notice 
 17.27  confirming the withdrawal.  The notice must inform the applicant 
 17.28  of the county agency's understanding that the applicant has 
 17.29  withdrawn the application and no longer wants to pursue it.  
 17.30  When, within ten days of the date of the agency's notice, an 
 17.31  applicant informs a county agency, in writing, that the 
 17.32  applicant does not wish to withdraw the application, the county 
 17.33  agency must reinstate the application and finish processing the 
 17.34  application. 
 17.35     Subd. 4.  [VERIFICATION OF INFORMATION ON APPLICATION.] A 
 17.36  county agency must verify information provided by an applicant 
 18.1   as required in section 256J.32. 
 18.2      Subd. 5.  [PROCESSING APPLICATIONS.] Upon receiving an 
 18.3   application, a county agency must determine the applicant's 
 18.4   eligibility, approve or deny the application, inform the 
 18.5   applicant of its decision according to the notice provisions in 
 18.6   section 256J.31, and, if eligible issue, the assistance payment 
 18.7   to the applicant.  When a county agency is unable to process an 
 18.8   application within 30 days, the county agency must inform the 
 18.9   applicant of the reason for the delay in writing.  When an 
 18.10  applicant establishes the inability to provide required 
 18.11  verifications within the 30-day processing period, the county 
 18.12  agency may not use the expiration of that period as the basis 
 18.13  for denial. 
 18.14     Subd. 6.  [INVALID REASON FOR DELAY.] A county agency must 
 18.15  not delay a decision on eligibility or delay issuing the 
 18.16  assistance payment except to establish state residence by: 
 18.17     (1) treating the 30-day processing period as a waiting 
 18.18  period; 
 18.19     (2) delaying approval or issuance of the assistance payment 
 18.20  pending the decision of the county board; or 
 18.21     (3) awaiting the result of a referral to a county agency in 
 18.22  another county when the county receiving the application does 
 18.23  not believe it is the county of financial responsibility. 
 18.24     Subd. 7.  [CHANGES IN RESIDENCE DURING APPLICATION.] The 
 18.25  requirements in subdivisions 5 and 6 apply without regard to the 
 18.26  length of time that an applicant remains, or intends to remain, 
 18.27  a resident of the county in which the application is made.  When 
 18.28  an applicant leaves the county where application was made but 
 18.29  remains in the state, section 256J.75 applies and the county 
 18.30  agency may request additional information from the applicant 
 18.31  about changes in circumstances related to the move. 
 18.32     Subd. 8.  [ADDITIONAL APPLICATIONS.] Until a county agency 
 18.33  issues notice of approval or denial, additional applications 
 18.34  submitted by an applicant are void.  However, an application for 
 18.35  monthly assistance and an application for emergency assistance 
 18.36  or emergency general assistance may exist concurrently.  More 
 19.1   than one application for monthly assistance, emergency 
 19.2   assistance, or emergency general assistance may exist 
 19.3   concurrently when the county agency decisions on one or more 
 19.4   earlier applications have been appealed to the commissioner, and 
 19.5   the applicant asserts that a change in circumstances has 
 19.6   occurred that would allow eligibility.  A county agency must 
 19.7   require additional application forms or supplemental forms as 
 19.8   prescribed by the commissioner when a payee's name changes, or 
 19.9   when a caregiver requests the addition of another person to the 
 19.10  assistance unit.  
 19.11     Subd. 9.  [ADDENDUM TO AN EXISTING APPLICATION.] An 
 19.12  addendum to an existing application must be used to add persons 
 19.13  to an assistance unit regardless of whether the persons being 
 19.14  added are required to be in the assistance unit.  When a person 
 19.15  is added by addendum to an assistance unit, eligibility for that 
 19.16  person begins on the first of the month the addendum was filed 
 19.17  except as provided in section 256J.74, subdivision 2, clause (1).
 19.18     Subd. 10.  [APPLICANTS WHO DO NOT MEET ELIGIBILITY 
 19.19  REQUIREMENTS FOR MFIP-S.] When an applicant is not eligible for 
 19.20  MFIP-S because the applicant does not meet eligibility 
 19.21  requirements, the county agency must determine whether the 
 19.22  applicant is eligible for food stamps, medical assistance, 
 19.23  diversionary assistance, or has a need for emergency assistance 
 19.24  when the applicant meets the eligibility requirements for those 
 19.25  programs. 
 19.26     Section 5 is effective January 1, 1998, except the 
 19.27  transitional provision in section 72 applies. 
 19.28     Sec. 6.  [256J.10] [MFIP-S ELIGIBILITY REQUIREMENTS.] 
 19.29     To be eligible for MFIP-S, applicants must meet the general 
 19.30  eligibility requirements in sections 256J.11 to 256J.15, the 
 19.31  property limitations in section 256J.20, and the income 
 19.32  limitations in section 256J.21. 
 19.33     Section 6 is effective January 1, 1998, except the 
 19.34  transitional provision in section 72 applies. 
 19.35     Sec. 7.  [256J.11] [CITIZENSHIP.] 
 19.36     Subdivision 1.  [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To 
 20.1   be eligible for AFDC or MFIP-S, whichever is in effect, a member 
 20.2   of the assistance unit must be a citizen of the United States, a 
 20.3   qualified noncitizen as defined in section 256J.08, or a 
 20.4   noncitizen who is otherwise residing lawfully in the United 
 20.5   States. 
 20.6      (b) A qualified noncitizen who entered the United States on 
 20.7   or after August 22, 1996, is eligible for MFIP-S.  However, TANF 
 20.8   dollars cannot be used to fund the MFIP-S benefits for an 
 20.9   individual under this paragraph for a period of five years after 
 20.10  the date of entry unless the qualified noncitizen meets one of 
 20.11  the following criteria: 
 20.12     (1) was admitted to the United States as a refugee under 
 20.13  United States Code, title 8, section 1157; 
 20.14     (2) was granted asylum under United States Code, title 8, 
 20.15  section 1158; 
 20.16     (3) was granted withholding of deportation under the United 
 20.17  States Code, title 8, section 1253(h); 
 20.18     (4) is a veteran of the United States Armed Forces with an 
 20.19  honorable discharge for a reason other than noncitizen status, 
 20.20  or is a spouse or unmarried minor dependent child of the same; 
 20.21  or 
 20.22     (5) is an individual on active duty in the United States 
 20.23  Armed Forces, other than for training, or is a spouse or 
 20.24  unmarried minor dependent child of the same. 
 20.25     (c) A person who is not a qualified noncitizen but who is 
 20.26  otherwise residing lawfully in the United States is eligible for 
 20.27  MFIP-S.  However, TANF dollars cannot be used to fund the MFIP-S 
 20.28  benefits for an individual under this paragraph. 
 20.29     (d) For purposes of this subdivision, a nonimmigrant in one 
 20.30  or more of the classes listed in United States Code, title 8, 
 20.31  section 1101(a)(15), or an undocumented immigrant who resides in 
 20.32  the United States without the approval or acquiescence of the 
 20.33  Immigration and Naturalization Service, is not eligible for 
 20.34  MFIP-S. 
 20.35     Subd. 2.  [NONCITIZENS INELIGIBLE FOR MFIP-S FOOD PORTION.] 
 20.36  Noncitizens who do not meet one of the exemptions in section 412 
 21.1   of the Personal Responsibility and Work Opportunity 
 21.2   Reconciliation Act of 1996 are eligible for the food portion of 
 21.3   MFIP-S.  However, federal food stamp dollars cannot be used to 
 21.4   fund the food portion of MFIP-S benefits for an individual under 
 21.5   this subdivision. 
 21.6      Sec. 8.  [256J.12] [MINNESOTA RESIDENCE.] 
 21.7      Subdivision 1.  [SIMPLE RESIDENCY.] To be eligible for AFDC 
 21.8   or MFIP-S, whichever is in effect, a family must have 
 21.9   established residency in this state which means the family is 
 21.10  present in the state and intends to remain here.  Subd. 1a.  
 21.11  [30-DAY RESIDENCY REQUIREMENT.] A family is considered to have 
 21.12  established residency in this state only when a child or 
 21.13  caregiver has resided in this state for at least 30 days with 
 21.14  the intention of making a permanent home here and not for any 
 21.15  temporary purpose.  Notwithstanding section 256G.03, time spent 
 21.16  in a shelter for battered women shall count toward satisfying 
 21.17  the 30 day residency requirement. 
 21.18     Subd. 2.  [HARDSHIP EXCEPTION.] (a) A county shall waive 
 21.19  the 30-day residency requirement where unusual hardship would 
 21.20  result from denial of assistance. 
 21.21     (b) For purposes of this section, unusual hardship means a 
 21.22  family: 
 21.23     (1) is without alternative shelter; or 
 21.24     (2) is without available resources for food. 
 21.25     (c) For purposes of this subdivision, the following 
 21.26  definitions apply (1) "metropolitan statistical area" is as 
 21.27  defined by the U.S. Census Bureau; (2) "alternative shelter" 
 21.28  includes any shelter that is located within the metropolitan 
 21.29  statistical area containing the county and for which the family 
 21.30  is eligible, provided the family does not have to travel more 
 21.31  than 20 miles to reach the shelter and has access to 
 21.32  transportation to the shelter.  Clause (2) does not apply to 
 21.33  counties in the Minneapolis-St. Paul metropolitan statistical 
 21.34  area. 
 21.35     Subd. 3.  [PAYMENT PLAN FOR NEW RESIDENTS.] Assistance paid 
 21.36  to an eligible family in which all members have resided in this 
 22.1   state for fewer than 12 calendar months shall be at the standard 
 22.2   and in the form specified in section 256J.43. 
 22.3      Subd. 4.  [SEVERABILITY CLAUSE.] If any subdivision in this 
 22.4   section is enjoined from implementation or found 
 22.5   unconstitutional by any court of competent jurisdiction, the 
 22.6   remaining subdivisions shall remain valid and shall be given 
 22.7   full effect. 
 22.8      Sec. 9.  [256J.13] [MINOR CHILD IN ASSISTANCE UNIT; 
 22.9   PHYSICAL PRESENCE.] 
 22.10     Subdivision 1.  [MINOR CHILD OR PREGNANT WOMAN.] The 
 22.11  assistance unit must include at least one minor child or a 
 22.12  pregnant woman.  If a minor child is a recipient of Supplemental 
 22.13  Security Income or Minnesota supplemental aid, the assistance 
 22.14  unit is eligible for MFIP-S, but the needs of the minor child 
 22.15  receiving Supplemental Security Income or Minnesota supplemental 
 22.16  aid must not be taken into account when the county agency 
 22.17  determines the amount of assistance to be paid to the assistance 
 22.18  unit. 
 22.19     Subd. 2.  [PHYSICAL PRESENCE.] A minor child and a 
 22.20  caregiver must live together except as provided in the following 
 22.21  paragraphs: 
 22.22     (a) The physical presence requirement is met when a minor 
 22.23  child is required to live away from the caregiver's home to meet 
 22.24  the need for educational curricula that cannot be met by, but is 
 22.25  approved by, the local public school district, the home is 
 22.26  maintained for the minor child's return during periodic school 
 22.27  vacations, and the caregiver continues to maintain 
 22.28  responsibility for the support and care of the minor child. 
 22.29     (b) The physical presence requirement is met when a 
 22.30  caregiver or minor child is away from the home due to illness, 
 22.31  hospitalization, vacation, incarceration, or other short-term 
 22.32  absences, when the home is maintained for the return of the 
 22.33  absent family member, the absence is not expected to last more 
 22.34  than 30 days beyond the month of departure, and the conditions 
 22.35  of clause (1), (2), or (3) apply: 
 22.36     (1) when the minor child and caregiver lived together 
 23.1   immediately prior to the absence, the caregiver continues to 
 23.2   maintain responsibility for the support and care of the minor 
 23.3   child, and the absence is reported at the time of application; 
 23.4      (2) when the pregnant mother is hospitalized or out of the 
 23.5   home due to the pregnancy; or 
 23.6      (3) when the newborn child and mother are hospitalized at 
 23.7   the time of birth. 
 23.8      (c) The absence of a caregiver or minor child does not 
 23.9   affect eligibility for the month of departure when the caregiver 
 23.10  or minor child received assistance for that month and lived 
 23.11  together immediately prior to the absence.  Eligibility also 
 23.12  exists in the following month when the absence ends on or before 
 23.13  the tenth day of that month. 
 23.14     Section 9 is effective January 1, 1998, except the 
 23.15  transitional provision in section 72 applies. 
 23.16     Sec. 10.  [256J.14] [ELIGIBILITY FOR PARENTING OR PREGNANT 
 23.17  MINORS.] 
 23.18     Subdivision 1.  [DEFINITIONS.] The definitions in this 
 23.19  subdivision only apply to this section. 
 23.20     (a) "Household of a parent, legal guardian, or other adult 
 23.21  relative" means the place of residence of: 
 23.22     (i) a natural or adoptive parent; 
 23.23     (ii) a legal guardian according to appointment or 
 23.24  acceptance under section 260.242, 525.615, or 525.6165, and 
 23.25  related laws; or 
 23.26     (iii) a relative caregiver. 
 23.27     (b) "Adult-supervised supportive living arrangement" means 
 23.28  a private family setting which assumes responsibility for the 
 23.29  care and control of the minor parent and minor child, or other 
 23.30  living arrangement, not including a public institution, licensed 
 23.31  by the commissioner of human services which ensures that the 
 23.32  minor parent receives adult supervision and supportive services, 
 23.33  such as counseling, guidance, independent living skills 
 23.34  training, or supervision. 
 23.35     Subd. 2.  [RESTRICTIONS ON PLACE OF RESIDENCE.] A minor 
 23.36  parent and the minor child who is in the care of the minor 
 24.1   parent must reside in the household of a parent, legal guardian, 
 24.2   or other appropriate adult relative, or in an adult-supervised 
 24.3   supportive living arrangement in order to receive MFIP-S unless: 
 24.4      (1) the minor parent has no living parent or legal guardian 
 24.5   or other appropriate adult relative whose whereabouts is known; 
 24.6      (2) no living parent or legal guardian of the minor parent 
 24.7   or other appropriate adult relative allows the minor parent to 
 24.8   live in the parent's or legal guardian's home; 
 24.9      (3) the minor parent lived apart from the minor parent's 
 24.10  own parent, legal guardian, or other appropriate adult relative 
 24.11  for a period of at least one year before either the birth of the 
 24.12  minor child or the minor parent's application for MFIP-S; or 
 24.13     (4) the physical or emotional health or safety of the minor 
 24.14  parent or minor child would be jeopardized if the minor parent 
 24.15  and the minor child resided in the same residence with the minor 
 24.16  parent's parent, legal guardian, or other appropriate adult 
 24.17  relative. 
 24.18     Subd. 3.  [NOTICE TO MINOR APPLICANTS REQUIRED.] Minor 
 24.19  applicants must be informed orally and in writing about the 
 24.20  eligibility requirements and their rights and obligations under 
 24.21  the MFIP-S program.  The county must advise the minor of the 
 24.22  possible exemptions and specifically ask whether one or more of 
 24.23  these exemptions is applicable.  If the minor alleges one or 
 24.24  more of these exemptions, then the county must assist the minor 
 24.25  in obtaining the necessary verifications to determine whether or 
 24.26  not these exemptions apply. 
 24.27     Subd. 4.  [REFERRAL TO CHILD PROTECTION SERVICES.] If the 
 24.28  county worker has reason to suspect that the physical or 
 24.29  emotional health or safety of the minor parent or minor child 
 24.30  would be jeopardized if they resided with the minor parent's 
 24.31  parent or legal guardian, then the county worker must make a 
 24.32  referral to child protective services to determine if 
 24.33  subdivision 2, clause (4), applies.  A new determination by the 
 24.34  county worker is not necessary if one has been made within the 
 24.35  last six months, unless there has been a significant change in 
 24.36  circumstances which justifies a new referral and determination. 
 25.1      Subd. 5.  [RESIDENTS IN SUPPORTIVE LIVING ARRANGEMENTS.] If 
 25.2   a minor parent is not living with a parent or legal guardian due 
 25.3   to subdivision 2, clause (1), (2), or (4), the minor parent must 
 25.4   reside, when possible, in a living arrangement that meets the 
 25.5   definition of an adult-supervised supportive living arrangement. 
 25.6      Subd. 6.  [PROTECTIVE PAYMENT.] When a minor parent and 
 25.7   minor child live with another adult relative, or in an 
 25.8   adult-supervised supportive living arrangement, MFIP-S must be 
 25.9   paid, when possible, in the form of a protective payment on 
 25.10  behalf of the minor parent and minor child according to section 
 25.11  256J.39, subdivisions 2 to 4. 
 25.12     Section 10 is effective January 1, 1998, except the 
 25.13  transitional provision in section 72 applies. 
 25.14     Sec. 11.  [256J.15] [OTHER ELIGIBILITY CONDITIONS.] 
 25.15     Subdivision 1.  [ELIGIBILITY WHEN THERE IS SHARED, COURT 
 25.16  ORDERED, AND OTHER CUSTODY ARRANGEMENTS.] The language of a 
 25.17  court order that specifies joint legal or physical custody does 
 25.18  not preclude a determination that a parent is absent.  Absence 
 25.19  must be determined based on the actual facts of the absence 
 25.20  according to paragraphs (a) to (c).  
 25.21     (a) When a minor child spends time in each of the parents' 
 25.22  homes within a payment month, the minor child's home shall be 
 25.23  considered the home in which the majority of the minor child's 
 25.24  time is spent.  When this time is exactly equal within a payment 
 25.25  month, or when the parents alternately live in the minor child's 
 25.26  home within a payment month, the minor child's home shall be 
 25.27  with that parent who is applying for MFIP, unless the minor 
 25.28  child's needs for the full payment month have already been met 
 25.29  through the provision of assistance to the other parent for that 
 25.30  month.  
 25.31     (b) When the physical custody of a minor child alternates 
 25.32  between parents for periods of at least one payment month, each 
 25.33  parent shall be eligible for assistance for any full payment 
 25.34  months the minor child's home is with that parent, except under 
 25.35  the conditions in paragraph (c).  
 25.36     (c) When a minor child's home is with one parent for the 
 26.1   majority of time in each month for at least nine consecutive 
 26.2   calendar months, and that minor child visits or vacations with 
 26.3   the other parent under section 256J.13, the minor child's home 
 26.4   remains with the first parent even when the stay with the second 
 26.5   parent is for all or the majority of the months in the period of 
 26.6   the temporary absence. 
 26.7      Subd. 2.  [ELIGIBILITY DURING LABOR DISPUTES.] To receive 
 26.8   assistance under MFIP-S, a member of an assistance unit who is 
 26.9   on strike must have been an MFIP-S participant on the day before 
 26.10  the strike, or have been eligible for MFIP-S on the day before 
 26.11  the strike. 
 26.12     The county agency must count the striker's prestrike 
 26.13  earnings as current earnings.  When a member of an assistance 
 26.14  unit who is not in the bargaining unit that voted for the strike 
 26.15  does not cross the picket line for fear of personal injury, the 
 26.16  assistance unit member is not a striker.  Except for a member of 
 26.17  an assistance unit who is not in the bargaining unit that voted 
 26.18  for the strike and who does not cross the picket line for fear 
 26.19  of personal injury, a significant change cannot be invoked as a 
 26.20  result of a labor dispute. 
 26.21     This subdivision is effective January 1, 1998, except the 
 26.22  transitional provision in section 72 applies. 
 26.23     Sec. 12.  [256J.20] [PROPERTY LIMITATIONS.] 
 26.24     Subdivision 1.  [PROPERTY OWNERSHIP PROVISIONS.] The county 
 26.25  agency must apply paragraphs (a) to (d) to real and personal 
 26.26  property.  The county agency must use the equity value of 
 26.27  legally available real and personal property, except property 
 26.28  excluded in subdivisions 2 and 3, to determine whether an 
 26.29  applicant or participant is eligible for assistance. 
 26.30     (a) When real or personal property is jointly owned by two 
 26.31  or more persons, the county agency shall assume that each person 
 26.32  owns an equal share, except that either person owns the entire 
 26.33  sum of a joint personal checking or savings account.  When an 
 26.34  applicant or participant documents greater or lesser ownership, 
 26.35  the county agency must use that greater or lesser share to 
 26.36  determine the equity value held by the applicant or 
 27.1   participant.  Other types of ownership must be evaluated 
 27.2   according to law. 
 27.3      (b) Real or personal property owned by the applicant or 
 27.4   participant must be presumed legally available to the applicant 
 27.5   or participant unless the applicant or participant documents 
 27.6   that the property is not legally available to the applicant or 
 27.7   participant.  When real or personal property is not legally 
 27.8   available, its equity value must not be applied against the 
 27.9   limits of subdivisions 2 and 3. 
 27.10     (c) An applicant must disclose whether the applicant has 
 27.11  transferred real or personal property valued in excess of the 
 27.12  property limits in subdivisions 2 and 3 for which reasonable 
 27.13  compensation was not received within one year prior to 
 27.14  application.  A participant must disclose all transfers of 
 27.15  property valued in excess of these limits, according to the 
 27.16  reporting requirements in section 256J.30, subdivision 9.  When 
 27.17  a transfer of real or personal property without reasonable 
 27.18  compensation has occurred: 
 27.19     (1) the person who transferred the property must provide 
 27.20  the property's description, information needed to determine the 
 27.21  property's equity value, the names of the persons who received 
 27.22  the property, and the circumstances of and reasons for the 
 27.23  transfer; and 
 27.24     (2) when the transferred property can be reasonably 
 27.25  reacquired, or when reasonable compensation can be secured, the 
 27.26  property is presumed legally available to the applicant or 
 27.27  participant. 
 27.28     (d) A participant may build the equity value of real and 
 27.29  personal property to the limits in subdivisions 2 and 3. 
 27.30     Subd. 2.  [REAL PROPERTY LIMITATIONS.] Ownership of real 
 27.31  property by an applicant or participant is subject to the 
 27.32  limitations in paragraphs (a) and (b). 
 27.33     (a) A county agency shall exclude the homestead of an 
 27.34  applicant or participant according to clauses (1) to (4): 
 27.35     (1) an applicant or participant who is purchasing real 
 27.36  property through a contract for deed and using that property as 
 28.1   a home is considered the owner of real property; 
 28.2      (2) the total amount of land that can be excluded under 
 28.3   this subdivision is limited to surrounding property which is not 
 28.4   separated from the home by intervening property owned by 
 28.5   others.  Additional property must be assessed as to its legal 
 28.6   and actual availability according to subdivision 1; 
 28.7      (3) when real property that has been used as a home by a 
 28.8   participant is sold, the county agency must treat the cash 
 28.9   proceeds from the sale as excluded property for six months when 
 28.10  the participant intends to reinvest the proceeds in another home 
 28.11  and maintains those proceeds, unused for other purposes, in a 
 28.12  separate account; and 
 28.13     (4) when the homestead is jointly owned, but the client 
 28.14  does not reside in it because of legal separation, pending 
 28.15  divorce; or battering or abuse by the spouse or partner, the 
 28.16  homestead is excluded. 
 28.17     (b) The equity value of real property that is not excluded 
 28.18  under paragraph (a) and which is legally available must be 
 28.19  applied against the limits in subdivision 3.  When the equity 
 28.20  value of the real property exceeds the limits under subdivision 
 28.21  3, the applicant or participant may qualify to receive 
 28.22  assistance when the applicant or participant continues to make a 
 28.23  good faith effort to sell the property and signs a legally 
 28.24  binding agreement to repay the amount of assistance, less child 
 28.25  support collected by the agency.  Repayment must be made within 
 28.26  five working days after the property is sold.  Repayment to the 
 28.27  county agency must be in the amount of assistance received or 
 28.28  the proceeds of the sale, whichever is less. 
 28.29     Subd. 3.  [OTHER PROPERTY LIMITATIONS.] To be eligible for 
 28.30  MFIP-S, the equity value of all nonexcluded real and personal 
 28.31  property of the assistance unit must not exceed $2,000 for 
 28.32  applicant families and $5,000 for ongoing recipient families.  
 28.33  The value of clauses (1) to (17) must be excluded when 
 28.34  determining the equity value of real and personal property: 
 28.35     (1) for each working member of the assistance unit, a 
 28.36  licensed automobile, truck, or van each with a fair market value 
 29.1   no greater than the amount excluded under the food stamp 
 29.2   program, provided that each assistance unit is allowed to 
 29.3   exclude at least one vehicle subject to the value limit in this 
 29.4   clause.  The value of special equipment for a handicapped member 
 29.5   of the assistance unit is excluded.  The fair market value of a 
 29.6   vehicle is the value listed in the N.A.D.A. Official Used Car 
 29.7   Guide, Midwest Edition, for newer model cars.  Amounts in excess 
 29.8   of the exclusion are counted against the property limits 
 29.9   specified in this subdivision; 
 29.10     (2) the value of life insurance policies for members of the 
 29.11  assistance unit; 
 29.12     (3) one burial plot per member of an assistance unit; 
 29.13     (4) the value of personal property needed to produce earned 
 29.14  income, including tools, implements, farm animals, inventory, 
 29.15  business loans, business checking and savings accounts used 
 29.16  exclusively for the operation of a self-employment business, and 
 29.17  any motor vehicles if the vehicles are essential for the 
 29.18  self-employment business; 
 29.19     (5) the value of personal property not otherwise specified 
 29.20  which is commonly used by household members in day-to-day living 
 29.21  such as clothing, necessary household furniture, equipment, and 
 29.22  other basic maintenance items essential for daily living; 
 29.23     (6) the value of real and personal property owned by a 
 29.24  recipient of Social Security Income or Minnesota supplemental 
 29.25  aid; 
 29.26     (7) the value of corrective payments, but only for the 
 29.27  month in which the payment is received and for the following 
 29.28  month; 
 29.29     (8) a mobile home used by an applicant or participant as 
 29.30  the applicant's or participant's home; 
 29.31     (9) money in a separate escrow account that is needed to 
 29.32  pay real estate taxes or insurance and that is used for this 
 29.33  purpose; 
 29.34     (10) money held in escrow to cover employee FICA, employee 
 29.35  tax withholding, sales tax withholding, employee worker 
 29.36  compensation, business insurance, property rental, property 
 30.1   taxes, and other costs that are paid at least annually, but less 
 30.2   often than monthly; 
 30.3      (11) monthly assistance and emergency assistance payments 
 30.4   for the current month's needs; 
 30.5      (12) the value of school loans, grants, or scholarships for 
 30.6   the period they are intended to cover; 
 30.7      (13) payments listed in section 256J.21, subdivision 2, 
 30.8   clause (9), which are held in escrow for a period not to exceed 
 30.9   three months to replace or repair personal or real property; 
 30.10     (14) income received in a budget month through the end of 
 30.11  the budget month; 
 30.12     (15) savings of a minor child or a minor parent that are 
 30.13  set aside in a separate account designated specifically for 
 30.14  future education or employment costs; 
 30.15     (16) the earned income tax credit and Minnesota working 
 30.16  family credit in the month received the following month; 
 30.17     (17) payments excluded under federal law as long as those 
 30.18  payments are held in a separate account from any nonexcluded 
 30.19  funds; and 
 30.20     (18) money received by a participant of the corps to career 
 30.21  program under section 84.0887, subdivision 2, paragraph (b), as 
 30.22  a postservice benefit under the federal Americorps Act. 
 30.23     Section 12 is effective January 1, 1998, except the 
 30.24  transitional provision in section 72 applies. 
 30.25     Sec. 13.  [256J.21] [INCOME LIMITATIONS.] 
 30.26     Subdivision 1.  [INCOME INCLUSIONS.] To determine MFIP-S 
 30.27  eligibility, the county agency must evaluate income received by 
 30.28  members of an assistance unit, or by other persons whose income 
 30.29  is considered available to the assistance unit.  All payments, 
 30.30  unless specifically excluded in subdivision 2, must be counted 
 30.31  as income. 
 30.32     Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
 30.33  excluded in determining a family's available income: 
 30.34     (1) payments for basic care, difficulty of care, and 
 30.35  clothing allowances received for providing family foster care to 
 30.36  children or adults under Minnesota Rules, parts 9545.0010 to 
 31.1   9545.0260 and 9555.5050 to 9555.6265, and payments received and 
 31.2   used for care and maintenance of a third-party beneficiary who 
 31.3   is not a household member; 
 31.4      (2) reimbursements for employment training received through 
 31.5   the Job Training Partnership Act, United States Code, title 29, 
 31.6   chapter 19, sections 1501 to 1792b; 
 31.7      (3) reimbursement for out-of-pocket expenses incurred while 
 31.8   performing volunteer services, jury duty, or employment; 
 31.9      (4) all educational assistance, except the county agency 
 31.10  must count graduate student teaching assistantships, 
 31.11  fellowships, and other similar paid work as earned income and, 
 31.12  after allowing deductions for any unmet and necessary 
 31.13  educational expenses, must count as unearned income all 
 31.14  scholarships or grants awarded to graduate students that do not 
 31.15  require teaching or research; 
 31.16     (5) loans, regardless of purpose, from public or private 
 31.17  lending institutions, governmental lending institutions, or 
 31.18  governmental agencies; 
 31.19     (6) loans from private individuals, regardless of purpose, 
 31.20  provided an applicant or participant documents that the lender 
 31.21  expects repayment; 
 31.22     (7) state and federal income tax refunds; 
 31.23     (8) state and federal earned income credits; 
 31.24     (9) funds received for reimbursement, replacement, or 
 31.25  rebate of personal or real property when these payments are made 
 31.26  by public agencies, awarded by a court, solicited through public 
 31.27  appeal, or made as a grant by a federal agency, state or local 
 31.28  government, or disaster assistance organizations, subsequent to 
 31.29  a presidential declaration of disaster; 
 31.30     (10) the portion of an insurance settlement that is used to 
 31.31  pay medical, funeral, and burial expenses, or to repair or 
 31.32  replace insured property; 
 31.33     (11) reimbursements for medical expenses that cannot be 
 31.34  paid by Medical Assistance; 
 31.35     (12) payments by a vocational rehabilitation program 
 31.36  administered by the state under chapter 268A, except those 
 32.1   payments that are for current living expenses; 
 32.2      (13) in-kind income, including any payments directly made 
 32.3   by a third party to a provider of goods and services; 
 32.4      (14) assistance payments to correct underpayments, but only 
 32.5   for the month in which the payment is received; 
 32.6      (15) emergency assistance payments; 
 32.7      (16) funeral and cemetery payments as provided by section 
 32.8   256.935; 
 32.9      (17) nonrecurring cash gifts of $30 or less, not exceeding 
 32.10  $30 per participant in a calendar month; 
 32.11     (18) any form of energy assistance payment made through 
 32.12  LIHEAP, payments made directly to energy providers by other 
 32.13  public and private agencies, and any form of credit or rebate 
 32.14  payment issued by energy providers; 
 32.15     (19) Supplemental Security Income, including retroactive 
 32.16  payments; 
 32.17     (20) Minnesota supplemental aid, including retroactive 
 32.18  payments; 
 32.19     (21) proceeds from the sale of real or personal property; 
 32.20     (22) adoption assistance payments under section 259.67; 
 32.21     (23) state-funded family subsidy program payments made 
 32.22  under section 252.32 to help families care for children with 
 32.23  mental retardation or related conditions; 
 32.24     (24) interest payments and dividends from property that is 
 32.25  not excluded from and that does not exceed the asset limit; 
 32.26     (25) rent rebates; 
 32.27     (26) income earned by a minor caregiver or minor child who 
 32.28  has not attained the age of 20 and is at least a half-time 
 32.29  student; 
 32.30     (27) MFIP-S child care payments under section 119B.05; 
 32.31     (28) all other payments made through MFIP-S to support a 
 32.32  caregiver's pursuit of greater self-support; 
 32.33     (29) income a participant receives related to shared living 
 32.34  expenses; 
 32.35     (30) reverse mortgages; 
 32.36     (31) benefits provided by the Child Nutrition Act of 1966, 
 33.1   United States Code, title 42, chapter 13A, sections 1771 to 
 33.2   1790; 
 33.3      (32) benefits provided by the women, infants, and children 
 33.4   (WIC) nutrition program, United States Code, title 42, chapter 
 33.5   13A, section 1786; 
 33.6      (33) benefits from the National School Lunch Act, United 
 33.7   States Code, title 42, chapter 13, sections 1751 to 1769e; 
 33.8      (34) relocation assistance for displaced persons under the 
 33.9   Uniform Relocation Assistance and Real Property Acquisition 
 33.10  Policies Act of 1970, United States Code, title 42, chapter 61, 
 33.11  subchapter II, section 4636, or the National Housing Act, United 
 33.12  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
 33.13     (35) benefits from the Trade Act of 1974, United States 
 33.14  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
 33.15     (36) war reparations payments to Japanese Americans and 
 33.16  Aleuts under United States Code, title 50, sections 1989 to 
 33.17  1989d; 
 33.18     (37) payments to veterans or their dependents as a result 
 33.19  of legal settlements regarding Agent Orange or other chemical 
 33.20  exposure under Public Law Number 101-239, section 10405, 
 33.21  paragraph (a)(2)(E); 
 33.22     (38) security utility deposit refunds; 
 33.23     (39) 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; and 
 33.29     (40) income that is otherwise specifically excluded from 
 33.30  MFIP-S consideration in federal law, state law, or federal 
 33.31  regulation. 
 33.32     (b) When determining income of members of the family who do 
 33.33  not elect to be included in the assistance unit, the county 
 33.34  agency shall count the remaining income after disregarding: 
 33.35     (1) all income of the minor parent's parent when 
 33.36  determining the grant for the minor parent in households that 
 34.1   include a minor parent living with a parent on MFIP-S with other 
 34.2   dependent children.  The standard of need for the minor parent 
 34.3   is equal to the standard of need available if the minor parent's 
 34.4   parent was not a recipient of MFIP-S; and 
 34.5      (2) income of the minor parent's parent equal to 200 
 34.6   percent of the federal poverty guideline for a family size not 
 34.7   including the minor parent and the minor parent's child in 
 34.8   households that include a minor parent living with a parent not 
 34.9   on MFIP-S when determining the grant for the minor parent.  The 
 34.10  remainder of income is deemed under Code of Federal Regulations, 
 34.11  title 45, section 233.20(a)(3)(xviii) in effect on August 21, 
 34.12  1996. 
 34.13     Subd. 3.  [INITIAL INCOME TEST.] The county agency shall 
 34.14  determine initial eligibility by considering all earned and 
 34.15  unearned income that is not excluded under subdivision 2.  To be 
 34.16  eligible for MFIP-S, the assistance unit's countable income 
 34.17  minus the disregards in paragraphs (a) and (b) must be below the 
 34.18  transitional standard of assistance according to section 256J.24 
 34.19  for that size assistance unit. 
 34.20     (a) The initial eligibility determination must disregard 
 34.21  the following items: 
 34.22     (1) the employment disregard is 18 percent of the gross 
 34.23  earned income whether or not the member is working full time or 
 34.24  part time; 
 34.25     (2) dependent care costs must be deducted from gross earned 
 34.26  income for the actual amount paid for dependent care up to the 
 34.27  maximum disregard allowed under this chapter and chapter 119B; 
 34.28  and 
 34.29     (3) all payments made according to a court order for the 
 34.30  support of children not living in the assistance unit's 
 34.31  household shall be disregarded from the income of the person 
 34.32  with the legal obligation to pay support, provided that, if 
 34.33  there has been a change in the financial circumstances of the 
 34.34  person with the legal obligation to pay support since the 
 34.35  support order was entered, the person with the legal obligation 
 34.36  to pay support has petitioned for a modification of the support 
 35.1   order. 
 35.2      (b) Notwithstanding paragraph (a), when determining initial 
 35.3   eligibility for applicants who have received AFDC, family 
 35.4   general assistance, MFIP, MFIP-R, work first, or MFIP-S in this 
 35.5   state within four months of the most recent application for 
 35.6   MFIP-S, the employment disregard is 35 percent of the gross 
 35.7   earned income. 
 35.8      After initial eligibility is established, the assistance 
 35.9   payment calculation is based on the monthly income test. 
 35.10     Subd. 4.  [MONTHLY INCOME TEST AND DETERMINATION OF 
 35.11  ASSISTANCE PAYMENT.] The county agency shall determine ongoing 
 35.12  eligibility and the assistance payment amount according to the 
 35.13  monthly income test.  To be eligible for MFIP-S, the result of 
 35.14  the computations in paragraphs (a) to (d) must be at least one 
 35.15  dollar. 
 35.16     (a) Apply a 35 percent income disregard to gross earnings 
 35.17  and subtract this amount from the family wage level.  If the 
 35.18  difference is equal to or greater than the transitional 
 35.19  standard, the assistance payment is equal to the transitional 
 35.20  standard.  If the difference is less than the transitional 
 35.21  standard, the assistance payment is equal to the difference.  
 35.22  The employment disregard in this paragraph must be deducted 
 35.23  every month there is earned income. 
 35.24     (b) All payments made according to a court order for the 
 35.25  support of children not living in the assistance unit's 
 35.26  household shall be disregarded from the income of the person 
 35.27  with the legal obligation to pay support, provided that, if 
 35.28  there has been a change in the financial circumstances of the 
 35.29  person with the legal obligation to pay support since the 
 35.30  support order was entered, the person with the legal obligation 
 35.31  to pay support has petitioned for a modification of the support 
 35.32  order. 
 35.33     (c) Subtract unearned income dollar for dollar from the 
 35.34  transitional standard to determine the assistance payment amount.
 35.35     (d) When income is both earned and unearned, the amount of 
 35.36  the assistance payment must be determined by first treating 
 36.1   gross earned income as specified in paragraph (a).  After 
 36.2   determining the amount of the assistance payment under paragraph 
 36.3   (a), unearned income must be subtracted from that amount dollar 
 36.4   for dollar to determine the assistance payment amount. 
 36.5      (e) When the monthly income is greater than the 
 36.6   transitional or family wage level standard after applicable 
 36.7   deductions and the income will only exceed the standard for one 
 36.8   month, the county agency must suspend the assistance payment for 
 36.9   the payment month. 
 36.10     Subd. 5.  [DISTRIBUTION OF INCOME.] The income of all 
 36.11  members of the assistance unit must be counted.  Income may also 
 36.12  be deemed from ineligible persons to the assistance unit.  
 36.13  Income must be attributed to the person who earns it or to the 
 36.14  assistance unit according to paragraphs (a) to (c). 
 36.15     (a) Funds distributed from a trust, whether from the 
 36.16  principal holdings or sale of trust property or from the 
 36.17  interest and other earnings of the trust holdings, must be 
 36.18  considered income when the income is legally available to an 
 36.19  applicant or participant.  Trusts are presumed legally available 
 36.20  unless an applicant or participant can document that the trust 
 36.21  is not legally available. 
 36.22     (b) Income from jointly owned property must be divided 
 36.23  equally among property owners unless the terms of ownership 
 36.24  provide for a different distribution. 
 36.25     (c) Deductions are not allowed from the gross income of a 
 36.26  financially responsible household member or by the members of an 
 36.27  assistance unit to meet a current or prior debt. 
 36.28     Section 13 is effective January 1, 1998, except the 
 36.29  transitional provision in section 72 applies. 
 36.30     Sec. 14.  [256J.24] [FAMILY COMPOSITION AND ASSISTANCE 
 36.31  STANDARDS.] 
 36.32     Subdivision 1.  [MFIP-S ASSISTANCE UNIT.] An MFIP-S 
 36.33  assistance unit is either a group of individuals with at least 
 36.34  one minor child who live together whose needs, assets, and 
 36.35  income are considered together and who receive MFIP-S 
 36.36  assistance, or a pregnant woman who receives MFIP-S assistance.  
 37.1   Individuals identified in subdivision 2 must be included in the 
 37.2   MFIP-S assistance unit.  Individuals identified in subdivision 3 
 37.3   must be excluded from the assistance unit.  Individuals 
 37.4   identified in subdivision 4 may be included in the assistance 
 37.5   unit at their option.  Individuals not included in the 
 37.6   assistance unit who are identified in section 256J.37, 
 37.7   subdivision 1 or 2, must have their income considered when 
 37.8   determining eligibility and benefits for an MFIP-S assistance 
 37.9   unit.  All assistance unit members, whether mandatory or 
 37.10  elective, who live together and for whom one caregiver or two 
 37.11  caregivers apply must be included in a single assistance unit. 
 37.12     Subd. 2.  [MANDATORY ASSISTANCE UNIT COMPOSITION.] When the 
 37.13  following individuals live together, they must be included in 
 37.14  the assistance unit: 
 37.15     (1) a minor child; 
 37.16     (2) the minor child's siblings, half-siblings, and 
 37.17  step-siblings; and 
 37.18     (3) the minor child's natural, adoptive parents, and 
 37.19  stepparents. 
 37.20     Subd. 3.  [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 
 37.21  ASSISTANCE UNIT.] The following individuals must be excluded 
 37.22  from an assistance unit: 
 37.23     (1) individuals receiving Supplemental Security Income or 
 37.24  Minnesota supplemental aid; 
 37.25     (2) individuals living at home while performing 
 37.26  court-imposed, unpaid community service work due to a criminal 
 37.27  conviction; 
 37.28     (3) individuals disqualified from the food stamp program or 
 37.29  MFIP-S, until the disqualification ends; and 
 37.30     (4) children on whose behalf foster care payments under 
 37.31  title IV-E of the Social Security Act are made, except as 
 37.32  provided in section 256J.74, subdivision 2. 
 37.33     Subd. 4.  [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 
 37.34  ASSISTANCE UNIT.] The minor child's eligible caregiver may 
 37.35  choose to be in the assistance unit, if the caregiver is not 
 37.36  required to be in the assistance unit under subdivision 2.  If 
 38.1   the relative caregiver chooses to be in the assistance unit, 
 38.2   that person's spouse must also be in the unit. 
 38.3      Subd. 5.  [MFIP-S TRANSITIONAL STANDARD.] The following 
 38.4   table represents the MFIP-S transitional standard table when all 
 38.5   members of the assistance unit are eligible for both food and 
 38.6   cash assistance. 
 38.7        Number of Eligible People          Standard 
 38.8                      1                      $344
 38.9                      2                      $596
 38.10                     3                      $747 
 38.11                     4                      $884 
 38.12                     5                    $1,003 
 38.13                     6                    $1,140 
 38.14                     7                    $1,246 
 38.15                     8                    $1,373 
 38.16                     9                    $1,498 
 38.17                    10                    $1,618 
 38.18               over 10          add $118 per additional member. 
 38.19     The commissioner shall annually publish in the State 
 38.20  Register the transitional standard for an assistance unit size 1 
 38.21  to 10. 
 38.22     Subd. 6.  [APPLICATION OF ASSISTANCE STANDARDS.] The 
 38.23  standards apply to the number of eligible persons in the 
 38.24  assistance unit. 
 38.25     Subd. 6a.  [ASSISTANCE VENDOR PAID IF CHILD BORN TO 
 38.26  RECIPIENT.] If a woman receiving assistance as a caregiver of an 
 38.27  MFIP-S assistance unit delivers a child born at least ten months 
 38.28  after the woman begins receiving MFIP-S assistance, benefits 
 38.29  paid to the assistance unit under this section shall be vendor 
 38.30  paid for rent and utilities up to the amount of the MFIP-S 
 38.31  grant.  The residual amount of the grant after vendor payment, 
 38.32  if any, shall be paid to the caregiver. 
 38.33     Subd. 7.  [FAMILY WAGE LEVEL STANDARD.] The family wage 
 38.34  level standard is 109 percent of the transitional standard under 
 38.35  subdivision 5 and is the standard used when there is earned 
 38.36  income in the assistance unit.  As specified in section 256J.21, 
 39.1   earned income is subtracted from the family wage level to 
 39.2   determine the amount of the assistance payment.  Assistance 
 39.3   payments may not exceed the transitional standard for the 
 39.4   assistance unit. 
 39.5      Section 14 is effective January 1, 1998, except the 
 39.6   transitional provision in section 72 applies. 
 39.7      Sec. 15.  [256J.25] [RETURN OF UTILITY DEPOSIT.] 
 39.8      A county may require that assistance paid under MFIP-S in 
 39.9   the form of a utility deposit less any amount retained to 
 39.10  satisfy outstanding utility costs be returned to the county when 
 39.11  the person vacates the premises or be paid for the person's new 
 39.12  housing unit as a vendor payment. 
 39.13     Section 15 is effective January 1, 1998, except the 
 39.14  transitional provision in section 72 applies. 
 39.15     Sec. 16.  [256J.26] [PERSONS INELIGIBLE.] 
 39.16     Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 
 39.17  an applicant has been convicted of a drug offense after July 1, 
 39.18  1997, the assistance unit is ineligible for AFDC or MFIP-S 
 39.19  benefits until five years after the applicant has completed 
 39.20  terms of the court-ordered sentence.  This subdivision also 
 39.21  applies to persons who receive food stamps under section 115 of 
 39.22  the Personal Responsibility and Work Opportunity Reconciliation 
 39.23  Act of 1996. 
 39.24     (b) For the purposes of this subdivision, "drug offense" 
 39.25  means a conviction that occurred after July 1, 1997, of sections 
 39.26  152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
 39.27  means a conviction in another jurisdiction of the possession, 
 39.28  use, or distribution of a controlled substance, or conspiracy to 
 39.29  commit any of these offenses, if the offense occurred after July 
 39.30  1, 1997, and the conviction is a felony offense in that 
 39.31  jurisdiction, or in the case of New Jersey, a high misdemeanor. 
 39.32     Subd. 2.  [PAROLE VIOLATORS.] An individual violating a 
 39.33  condition of probation or parole or supervised release imposed 
 39.34  under federal law or the law of any state is ineligible to 
 39.35  receive AFDC or MFIP-S. 
 39.36     Subd. 3.  [FLEEING FELONS.] An individual who is fleeing to 
 40.1   avoid prosecution, or custody, or confinement after conviction 
 40.2   for a crime that is a felony under the laws of the jurisdiction 
 40.3   from which the individual flees, or in the case of New Jersey, 
 40.4   is a high misdemeanor, is ineligible to receive AFDC or MFIP-S. 
 40.5      Subd. 4.  [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 
 40.6   FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 
 40.7   individual who is convicted in federal or state court of having 
 40.8   made a fraudulent statement or representation with respect to 
 40.9   the place of residence of the individual in order to receive 
 40.10  assistance simultaneously from two or more states is ineligible 
 40.11  to receive AFDC or MFIP-S for ten years beginning on the date of 
 40.12  the conviction. 
 40.13     Sec. 17.  [256J.28] [PROVISIONS RELATED SPECIFICALLY TO 
 40.14  FOOD STAMP ASSISTANCE.] 
 40.15     Subdivision 1.  [EXPEDITED ISSUANCE OF FOOD STAMP 
 40.16  ASSISTANCE.] The following households are entitled to expedited 
 40.17  issuance of food stamp assistance: 
 40.18     (1) households with less than $150 in monthly gross income 
 40.19  provided their liquid assets do not exceed $100; 
 40.20     (2) migrant or seasonal farm worker households who are 
 40.21  destitute as defined in Code of Federal Regulations, title 7, 
 40.22  subtitle B, chapter 2, subchapter C, part 273, section 273.10, 
 40.23  paragraph (e)(3), provided their liquid assets do not exceed 
 40.24  $100; and 
 40.25     (3) eligible households whose combined monthly gross income 
 40.26  and liquid assets are less than the household's monthly rent or 
 40.27  mortgage and utilities. 
 40.28     The benefits issued through expedited issuance of food 
 40.29  stamp assistance shall not be paid in cash, and must be deducted 
 40.30  from the amount of the full monthly MFIP-S assistance payment 
 40.31  and a supplemental payment for the difference must be issued. 
 40.32     Subd. 2.  [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 
 40.33  ASSISTANCE UNIT.] For household members who purchase and prepare 
 40.34  food with the MFIP-S assistance unit but are not part of the 
 40.35  assistance unit, the county agency must determine a separate 
 40.36  food stamp benefit based on regulations agreed upon with the 
 41.1   United States department of agriculture. 
 41.2      This subdivision does not apply to optional members who 
 41.3   have chosen not to be in the assistance unit. 
 41.4      Fair hearing requirements for persons who receive food 
 41.5   stamps under this subdivision are governed by section 256.045, 
 41.6   and Code of Federal Regulations, title 7, subtitle B, chapter 
 41.7   II, part 273, section 273.15. 
 41.8      This subdivision is effective January 1, 1998, except the 
 41.9   transitional provision in section 72 applies. 
 41.10     Subd. 3.  [INCOME DISREGARD FOR CERTAIN PROGRAMS, FOOD 
 41.11  ASSISTANCE PORTION OF ASSISTANCE PAYMENT.] The portion of the 
 41.12  MFIP-S assistance payment that is designated by the commissioner 
 41.13  as the food assistance portion of the assistance payment must be 
 41.14  disregarded as income in the following programs: 
 41.15     (1) housing subsidy programs; 
 41.16     (2) low-income home energy assistance program; 
 41.17     (3) Supplemental Security Income, when determining interim 
 41.18  assistance amount; and 
 41.19     (4) other programs that do not count food stamps as income. 
 41.20     For the purposes of this subdivision, the food assistance 
 41.21  portion of the assistance payment means a predetermined portion 
 41.22  of the MFIP-S assistance payment that may be received in 
 41.23  point-of-purchase sites or as food stamps.  The predetermined 
 41.24  portion of the assistance payment varies by family profile, 
 41.25  which is based on family size. 
 41.26     This subdivision is effective January 1, 1998, except the 
 41.27  transitional provision in section 72 applies. 
 41.28     Sec. 18.  [256J.30] [APPLICANT AND PARTICIPANT REQUIREMENTS 
 41.29  AND RESPONSIBILITIES.] 
 41.30     Subdivision 1.  [APPLICANT REPORTING REQUIREMENTS.] An 
 41.31  applicant must provide information on an application form and 
 41.32  supplemental forms about the applicant's circumstances which 
 41.33  affect MFIP-S eligibility or the assistance payment.  An 
 41.34  applicant must report changes identified in subdivision 9 while 
 41.35  the application is pending.  When an applicant does not 
 41.36  accurately report information on an application, both an 
 42.1   overpayment and a referral for a fraud investigation may 
 42.2   result.  When an applicant does not provide information or 
 42.3   documentation, the receipt of the assistance payment may be 
 42.4   delayed or the application may be denied depending on the type 
 42.5   of information required and its effect on eligibility. 
 42.6      Subd. 2.  [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 
 42.7   applicant or participant must apply for and follow through with 
 42.8   appealing any denials of eligibility for benefits from other 
 42.9   programs for which the applicant or participant is potentially 
 42.10  eligible and which would, if received, offset assistance 
 42.11  payments.  An applicant's or participant's failure to complete 
 42.12  application for these benefits without good cause results in 
 42.13  denial or termination of assistance.  Good cause for failure to 
 42.14  apply for these benefits is allowed when circumstances beyond 
 42.15  the control of the applicant or participant prevent the 
 42.16  applicant or participant from making an application. 
 42.17     Subd. 3.  [RESPONSIBILITY TO INQUIRE.] An applicant or 
 42.18  participant who does not know or is unsure whether a given 
 42.19  change in circumstances will affect the applicant's or 
 42.20  participant's MFIP-S eligibility or assistance payment must 
 42.21  contact the county agency for information.  
 42.22     Subd. 4.  [PARTICIPANT'S COMPLETION OF RECERTIFICATION OF 
 42.23  ELIGIBILITY FORM.] A participant must complete forms prescribed 
 42.24  by the commissioner which are required for recertification of 
 42.25  eligibility according to section 256J.32, subdivision 6. 
 42.26     Subd. 5.  [MONTHLY MFIP-S HOUSEHOLD REPORTS.] Each 
 42.27  assistance unit with a member who has earned income or a recent 
 42.28  work history, and each assistance unit that has income allocated 
 42.29  to it from a financially responsible person, must complete a 
 42.30  monthly MFIP-S household report form.  "Recent work history" 
 42.31  means the individual received earned income in the report month 
 42.32  or any of the previous three calendar months even if the 
 42.33  earnings are excluded.  To be complete, the MFIP-S household 
 42.34  report form must be signed and dated by the caregivers no 
 42.35  earlier than the last day of the reporting period.  All 
 42.36  questions required to determine assistance payment eligibility 
 43.1   must be answered, and documentation of earned income must be 
 43.2   included. 
 43.3      Subd. 6.  [SIX-MONTH MFIP-S HOUSEHOLD REPORT.] Assistance 
 43.4   units that are not required to report monthly under subdivision 
 43.5   5 must complete an MFIP-S household report form every six 
 43.6   months.  To be complete, the MFIP-S household report form must 
 43.7   be signed and dated by the caregiver or caregivers no earlier 
 43.8   than the last day of the reporting period.  All questions 
 43.9   required to determine assistance payment eligibility must be 
 43.10  answered and documentation of earned income must be included. 
 43.11     Subd. 7.  [DUE DATE OF MFIP-S HOUSEHOLD REPORT.] An MFIP-S 
 43.12  household report form must be received by the county agency by 
 43.13  the eighth calendar day of the month following the reporting 
 43.14  period covered by the form.  When the eighth calendar day of the 
 43.15  month falls on a weekend or holiday, the MFIP-S household report 
 43.16  form must be received by the county agency by the first working 
 43.17  day that follows the eighth calendar day.  The county agency 
 43.18  must send a notice of termination because of a late or 
 43.19  incomplete MFIP-S household report form. 
 43.20     Subd. 8.  [LATE MFIP-S HOUSEHOLD REPORT FORMS.] Paragraphs 
 43.21  (a) to (d) apply to the reporting requirements in subdivision 7. 
 43.22     (a) When a caregiver submits an incomplete MFIP-S household 
 43.23  report form before the last working day of the month on which a 
 43.24  ten-day notice of termination can be issued, the county agency 
 43.25  must return the incomplete form on or before the ten-day notice 
 43.26  deadline or any previously sent ten-day notice of termination is 
 43.27  invalid. 
 43.28     (b) When a complete MFIP-S household report form is not 
 43.29  received by a county agency before the last ten days of the 
 43.30  month in which the form is due, the county agency must send a 
 43.31  notice of proposed termination of assistance.  When a caregiver 
 43.32  submits an incomplete form on or after the date a notice of 
 43.33  proposed termination has been sent, the termination is valid 
 43.34  unless the caregiver submits a complete form before the end of 
 43.35  the month. 
 43.36     (c) An assistance unit required to submit an MFIP-S 
 44.1   household report form is considered to have continued its 
 44.2   application for assistance if a complete MFIP-S household report 
 44.3   form is received within a calendar month after the month in 
 44.4   which assistance was received and assistance shall be paid for 
 44.5   the period beginning with the first day of the month in which 
 44.6   the report was due. 
 44.7      (d) A county agency must allow good cause exemptions from 
 44.8   the reporting requirements under subdivisions 5 and 6 when any 
 44.9   of the following factors cause a caregiver to fail to provide 
 44.10  the county agency with a completed MFIP-S household report form 
 44.11  before the end of the month in which the form is due: 
 44.12     (1) an employer delays completion of employment 
 44.13  verification; 
 44.14     (2) a county agency does not help a caregiver complete the 
 44.15  MFIP-S household report form when the caregiver asks for help; 
 44.16     (3) a caregiver does not receive an MFIP-S household report 
 44.17  form due to mistake on the part of the department or the county 
 44.18  agency or due to a reported change in address; 
 44.19     (4) a caregiver is ill, or physically or mentally 
 44.20  incapacitated; or 
 44.21     (5) some other circumstance occurs that a caregiver could 
 44.22  not avoid with reasonable care that prevents the caregiver from 
 44.23  providing a completed MFIP-S household report form before the 
 44.24  end of the month in which the form is due. 
 44.25     Subd. 9.  [CHANGES THAT MUST BE REPORTED.] A caregiver must 
 44.26  report the changes or anticipated changes specified in clauses 
 44.27  (1) to (16) within ten days of the date they occur, within ten 
 44.28  days of the date the caregiver learns that the change will 
 44.29  occur, at the time of the periodic recertification of 
 44.30  eligibility under section 256J.32, subdivision 6, or within 
 44.31  eight calendar days of a reporting period as in subdivision 5 or 
 44.32  6, whichever occurs first.  A caregiver must report other 
 44.33  changes at the time of the periodic recertification of 
 44.34  eligibility under section 256J.32, subdivision 6, or at the end 
 44.35  of a reporting period under subdivision 5 or 6, as applicable.  
 44.36  A caregiver must make these reports in writing or in person to 
 45.1   the county agency.  When a county agency could have reduced or 
 45.2   terminated assistance for one or more payment months if a delay 
 45.3   in reporting a change specified under clauses (1) to (16) had 
 45.4   not occurred, the county agency must determine whether a timely 
 45.5   notice under section 256J.31, subdivision 4, could have been 
 45.6   issued on the day that the change occurred.  When a timely 
 45.7   notice could have been issued, each month's overpayment 
 45.8   subsequent to that notice must be considered a client error 
 45.9   overpayment under section 256J.38.  Changes in circumstances 
 45.10  which must be reported within ten days must also be reported on 
 45.11  the MFIP-S household report form for the reporting period in 
 45.12  which those changes occurred.  Within ten days, a caregiver must 
 45.13  report: 
 45.14     (1) a change in initial employment; 
 45.15     (2) a change in initial receipt of unearned income; 
 45.16     (3) a recurring change in unearned income; 
 45.17     (4) a nonrecurring change of unearned income that exceeds 
 45.18  $30; 
 45.19     (5) the receipt of a lump sum; 
 45.20     (6) an increase in assets that may cause the assistance 
 45.21  unit to exceed asset limits; 
 45.22     (7) a change in the physical or mental status of an 
 45.23  incapacitated member of the assistance unit if the physical or 
 45.24  mental status is the basis of an exemption from the MFIP-S 
 45.25  employment and training services component; 
 45.26     (8) a change in employment status; 
 45.27     (9) a change in household composition, including births, 
 45.28  returns to and departures from the home of assistance unit 
 45.29  members and financially responsible persons, or a change in the 
 45.30  custody of a minor child; 
 45.31     (10) a change in health insurance coverage; 
 45.32     (11) the marriage or divorce of an assistance unit member; 
 45.33     (12) the death of a parent, minor child, or financially 
 45.34  responsible person; 
 45.35     (13) a change in address or living quarters of the 
 45.36  assistance unit; 
 46.1      (14) the sale, purchase, or other transfer of property; 
 46.2      (15) a change in school attendance of a custodial parent or 
 46.3   an employed child; and 
 46.4      (16) filing a lawsuit, a workers' compensation claim, or a 
 46.5   monetary claim against a third party. 
 46.6      Subd. 10.  [COOPERATION WITH HEALTH CARE BENEFITS.] (a) The 
 46.7   caregiver of a minor child must cooperate with the county agency 
 46.8   to identify and provide information to assist the county agency 
 46.9   in pursuing third-party liability for medical services. 
 46.10     (b) A caregiver must assign to the department any rights to 
 46.11  health insurance policy benefits the caregiver has during the 
 46.12  period of MFIP-S eligibility. 
 46.13     (c) A caregiver must identify any third party who may be 
 46.14  liable for care and services available under the medical 
 46.15  assistance program on behalf of the applicant or participant and 
 46.16  all other assistance unit members. 
 46.17     (d) When a participant refuses to assign the rights to the 
 46.18  department, or when a participant refuses to identify any third 
 46.19  party who may be liable for care and services, the recipient 
 46.20  must be sanctioned as provided in section 256J.46.  The 
 46.21  recipient is also ineligible for medical assistance for a 
 46.22  minimum of one month and until the recipient cooperates with the 
 46.23  requirements of this subdivision. 
 46.24     Subd. 11.  [REQUIREMENT TO ASSIGN SUPPORT AND MAINTENANCE 
 46.25  RIGHTS.] To be eligible for MFIP-S, the caregiver must assign 
 46.26  all rights to child support and spousal maintenance benefits 
 46.27  according to section 256.74, subdivision 5, and section 256.741, 
 46.28  if enacted. 
 46.29     Subd. 12.  [REQUIREMENT TO PROVIDE SOCIAL SECURITY 
 46.30  NUMBERS.] Each member of the assistance unit must provide the 
 46.31  member's social security number to the county agency except for 
 46.32  members of the assistance unit who are qualified aliens 
 46.33  according to the Illegal Immigration Reform and Immigration 
 46.34  Responsibility Act of 1996, Title V of the Omnibus Consolidated 
 46.35  Appropriations Act, Public Law Number 104-200.  When a social 
 46.36  security number is not provided to the county agency for 
 47.1   verification, this requirement is satisfied when each member of 
 47.2   the assistance unit cooperates with the procedures for 
 47.3   verification of numbers, issuance of duplicate cards, and 
 47.4   issuance of new numbers which have been established jointly 
 47.5   between the Social Security Administration and the commissioner. 
 47.6      Section 18 is effective January 1, 1998, except the 
 47.7   transitional provision in section 72 applies. 
 47.8      Sec. 19.  [256J.31] [APPLICANT AND PARTICIPANT RIGHTS AND 
 47.9   COUNTY AGENCY RESPONSIBILITIES.] 
 47.10     Subdivision 1.  [RIGHT TO INFORMATION.] An applicant or 
 47.11  participant has the right to obtain from the county agency 
 47.12  information about the benefits, requirements, restrictions, and 
 47.13  appeal provisions of public assistance programs. 
 47.14     Subd. 2.  [RIGHT TO AUTHORIZED REPRESENTATIVE.] An 
 47.15  applicant or participant has the right to designate an 
 47.16  authorized representative to act on the applicant's or 
 47.17  participant's behalf.  An applicant or participant has the right 
 47.18  to be assisted or represented by an authorized representative in 
 47.19  eligibility determinations, recertification, conciliation 
 47.20  conferences, the fair hearing process, and any other contacts 
 47.21  with the county agency or the department.  When a county agency 
 47.22  determines that it is necessary for a person to assist an 
 47.23  applicant or participant, the county agency must designate a 
 47.24  staff member to assist the applicant or participant.  Upon a 
 47.25  request from an applicant or participant, a county agency must 
 47.26  provide addresses and telephone numbers of organizations that 
 47.27  provide legal services at low cost or no cost to low-income 
 47.28  persons. 
 47.29     Subd. 3.  [RIGHT OF APPLICANT TO NOTICE.] A county agency 
 47.30  must notify an applicant of the disposition of the applicant's 
 47.31  application.  The notice must be in writing and on forms 
 47.32  prescribed by the commissioner.  The county agency must mail the 
 47.33  notice to the last known mailing address provided by the 
 47.34  applicant.  When an application is denied, the county agency 
 47.35  must notify the applicant in writing of the reasons for the 
 47.36  denial, of the right to appeal, and of the right to reapply for 
 48.1   assistance. 
 48.2      Subd. 4.  [PARTICIPANT'S RIGHT TO NOTICE.] A county agency 
 48.3   must give a participant written notice of all adverse actions 
 48.4   affecting the participant including payment reductions, 
 48.5   suspensions, terminations, and use of protective, vendor, or 
 48.6   two-party payments.  The notice of adverse action must be on a 
 48.7   form prescribed or approved by the commissioner and must be 
 48.8   mailed to the last known mailing address provided by the 
 48.9   participant.  The county agency must state on the notice of 
 48.10  adverse action the action it intends to take, the reasons for 
 48.11  the action, the participant's right to appeal the action, the 
 48.12  conditions under which assistance can be continued pending an 
 48.13  appeal decision, and the related consequences of the action. 
 48.14     Subd. 5.  [MAILING OF NOTICE.] The notice of adverse action 
 48.15  shall be issued according to paragraphs (a) to (c). 
 48.16     (a) A county agency shall mail a notice of adverse action 
 48.17  at least ten days before the effective date of the adverse 
 48.18  action, except as provided in paragraphs (b) and (c). 
 48.19     (b) A county agency must mail a notice of adverse action at 
 48.20  least five days before the effective date of the adverse action 
 48.21  when the county agency has factual information that requires an 
 48.22  action to reduce, suspend, or terminate assistance based on 
 48.23  probable fraud. 
 48.24     (c) A county agency shall mail a notice of adverse action 
 48.25  before or on the effective date of the adverse action when the 
 48.26  county agency: 
 48.27     (1) receives the caregiver's signed monthly MFIP-S 
 48.28  household report form that includes information that requires 
 48.29  payment reduction, suspension, or termination; 
 48.30     (2) is informed of the death of a participant or the payee; 
 48.31     (3) receives a signed statement from the caregiver that 
 48.32  assistance is no longer wanted; 
 48.33     (4) receives a signed statement from the caregiver that 
 48.34  provides information that requires the termination or reduction 
 48.35  of assistance; 
 48.36     (5) verifies that a member of the assistance unit is absent 
 49.1   from the home and does not meet temporary absence provisions in 
 49.2   section 256J.13; 
 49.3      (6) verifies that a member of the assistance unit has 
 49.4   entered a regional treatment center or a licensed residential 
 49.5   facility for medical or psychological treatment or 
 49.6   rehabilitation; 
 49.7      (7) verifies that a member of an assistance unit has been 
 49.8   placed in foster care, and the provisions of section 256J.13, 
 49.9   subdivision 2, paragraph (b), do not apply; or 
 49.10     (8) cannot locate a caregiver. 
 49.11     Subd. 6.  [APPEAL RIGHTS.] An applicant, participant, or 
 49.12  former participant has the right to request a fair hearing when 
 49.13  aggrieved by an action or inaction of a county agency.  A 
 49.14  request for a fair hearing and rights pending a fair hearing are 
 49.15  set as specified in section 256J.40. 
 49.16     Subd. 7.  [CASE RECORDS AVAILABLE.] A county agency must 
 49.17  make financial case records available to the participant or 
 49.18  former participant as soon as possible but no later than the 
 49.19  fifth business day following the date of the request.  When the 
 49.20  participant or former participant asks for photocopies of 
 49.21  material from the financial case record, the county agency must 
 49.22  provide one copy of each page at no cost. 
 49.23     Subd. 8.  [RIGHT TO MANAGE AFFAIRS.] Except for protective 
 49.24  payment provisions authorized under section 256J.39, 
 49.25  participants have the right to manage their own affairs. 
 49.26     Subd. 9.  [RIGHT TO PROTECTION.] Minor caregivers have the 
 49.27  right to protection.  The county agency must refer a minor 
 49.28  caregiver to the social service unit within 30 days of the date 
 49.29  the application is approved.  The social service unit must 
 49.30  assist the caregiver who is less than 18 years of age to develop 
 49.31  a plan as specified in section 256J.54. 
 49.32     Subd. 10.  [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 
 49.33  earnings of a caregiver who is participating in full or 
 49.34  part-time employment or training shall be protected from 
 49.35  garnishment.  This protection for earnings shall extend for a 
 49.36  period of six months from the date of termination from MFIP-S. 
 50.1      Subd. 11.  [RESPONSIBILITY TO RETAIN CASE RECORDS.] The 
 50.2   county agency must retain financial case records and employment 
 50.3   and training service records for MFIP-S cases according to 
 50.4   chapter 13. 
 50.5      Section 19 is effective January 1, 1998, except the 
 50.6   transitional provision in section 72 applies. 
 50.7      Sec. 20.  [256J.315] [COUNTY AND TRIBAL COOPERATION.] 
 50.8      The county agency must cooperate with tribal governments in 
 50.9   the implementation of MFIP-S to ensure that the program meets 
 50.10  the special needs of persons living on Indian reservations.  
 50.11  This cooperation must include, but is not limited to, the 
 50.12  sharing of MFIP-S duties including initial screening, 
 50.13  orientation, assessments, and provision of employment and 
 50.14  training services.  The county agency shall encourage tribal 
 50.15  governments to assume duties related to MFIP-S and shall work 
 50.16  cooperatively with tribes that have assumed responsibility for a 
 50.17  portion of the MFIP-S program to expand tribal responsibilities, 
 50.18  if that expansion is requested by the tribe. 
 50.19     Section 20 is effective January 1, 1998, except the 
 50.20  transitional provision in section 72 applies. 
 50.21     Sec. 21.  [256J.32] [DOCUMENTING, VERIFYING, AND 
 50.22  RECERTIFYING ELIGIBILITY.] 
 50.23     Subdivision 1.  [VERIFICATION OF INFORMATION.] A county 
 50.24  agency must only require verification of information necessary 
 50.25  to determine MFIP-S eligibility and the amount of the assistance 
 50.26  payment. 
 50.27     Subd. 2.  [DOCUMENTATION.] The applicant or participant 
 50.28  must document the information required under subdivisions 4 to 6 
 50.29  or authorize the county agency to verify the information.  The 
 50.30  applicant or participant has the burden of providing documentary 
 50.31  evidence to verify eligibility.  The county agency shall assist 
 50.32  the applicant or participant in obtaining required documents 
 50.33  when the applicant or participant is unable to do so.  When an 
 50.34  applicant or participant and the county agency are unable to 
 50.35  obtain documents needed to verify information, the county agency 
 50.36  may accept an affidavit from an applicant or participant as 
 51.1   sufficient documentation. 
 51.2      Subd. 3.  [CONTACTING THIRD PARTIES.] A county agency must 
 51.3   not request information about an applicant or participant that 
 51.4   is not of public record from a source other than county 
 51.5   agencies, the department, or the United States Department of 
 51.6   Health and Human Services without the person's prior written 
 51.7   consent.  An applicant's signature on an application form 
 51.8   constitutes consent for contact with the sources specified on 
 51.9   the application.  A county agency may use a single consent form 
 51.10  to contact a group of similar sources, such as banks or 
 51.11  insurance agencies, but the sources to be contacted must be 
 51.12  identified by the county agency prior to requesting an 
 51.13  applicant's consent. 
 51.14     Subd. 4.  [FACTORS TO BE VERIFIED.] The county agency shall 
 51.15  verify the following at application: 
 51.16     (1) identity of adults; 
 51.17     (2) presence of the minor child in the home, if 
 51.18  questionable; 
 51.19     (3) relationship of a minor child to caregivers in the 
 51.20  assistance unit; 
 51.21     (4) age, if necessary to determine MFIP-S eligibility; 
 51.22     (5) immigration status; 
 51.23     (6) social security number in accordance with the 
 51.24  requirements of section 256J.30, subdivision 12; 
 51.25     (7) income; 
 51.26     (8) self-employment expenses used as a deduction; 
 51.27     (9) source and purpose of deposits and withdrawals from 
 51.28  business accounts; 
 51.29     (10) spousal support and child support payments made to 
 51.30  persons outside the household; 
 51.31     (11) real property; 
 51.32     (12) vehicles; 
 51.33     (13) checking and savings accounts; 
 51.34     (14) savings certificates, savings bonds, stocks, and 
 51.35  individual retirement accounts; 
 51.36     (15) pregnancy, if related to eligibility; 
 52.1      (16) inconsistent information, if related to eligibility; 
 52.2      (17) medical insurance; 
 52.3      (18) anticipated graduation date of an 18-year-old; 
 52.4      (19) burial accounts; 
 52.5      (20) school attendance, if related to eligibility; and 
 52.6      (21) residence. 
 52.7      Subd. 5.  [VERIFICATION OF IMMIGRATION STATUS.] An 
 52.8   applicant's written authorization is required before the county 
 52.9   agency contacts the Immigration and Naturalization Service to 
 52.10  verify immigration status under subdivision 4, clause (5).  
 52.11  However, refusal to provide such authorization is grounds for a 
 52.12  finding of ineligibility if the applicant fails to produce proof 
 52.13  of eligible immigration status.  
 52.14     Subd. 5a.  [INCONSISTENT INFORMATION.] When the county 
 52.15  agency verifies inconsistent information under subdivision 4, 
 52.16  clause (16), or under subdivision 6, clause (4), the reason for 
 52.17  verifying the information must be documented in the financial 
 52.18  case record. 
 52.19     Subd. 6.  [RECERTIFICATION.] The county agency shall 
 52.20  recertify eligibility in an annual face-to-face interview with 
 52.21  the participant and verify the following: 
 52.22     (1) presence of the minor child in the home, if 
 52.23  questionable; 
 52.24     (2) income, including self-employment expenses used as a 
 52.25  deduction or deposits or withdrawals from business accounts; 
 52.26     (3) assets, when the value is within $200 of the asset 
 52.27  limit; and 
 52.28     (4) inconsistent information, if related to eligibility. 
 52.29     Section 21 is effective January 1, 1998, except the 
 52.30  transitional provision in section 72 applies. 
 52.31     Sec. 22.  [256J.33] [PROSPECTIVE AND RETROSPECTIVE 
 52.32  DETERMINATION OF MFIP-S ELIGIBILITY.] 
 52.33     Subdivision 1.  [DETERMINATION OF ELIGIBILITY.] A county 
 52.34  agency must determine MFIP-S eligibility prospectively for a 
 52.35  payment month based on retrospectively assessing income and the 
 52.36  county agency's best estimate of the circumstances that will 
 53.1   exist in the payment month. 
 53.2      Except as described in section 256J.34, subdivision 1, when 
 53.3   prospective eligibility exists, a county agency must calculate 
 53.4   the amount of the assistance payment using retrospective 
 53.5   budgeting.  To determine MFIP-S eligibility and the assistance 
 53.6   payment amount, a county agency must apply countable income, 
 53.7   described in section 256J.37, subdivisions 3 to 10, received by 
 53.8   members of an assistance unit or by other persons whose income 
 53.9   is counted for the assistance unit, described under section 
 53.10  256J.21 and 256J.37, subdivisions 1 and 2. 
 53.11     This income must be applied to the transitional standard or 
 53.12  family wage standard subject to this section and sections 
 53.13  256J.34 to 256J.36.  Income received in a calendar month and not 
 53.14  otherwise excluded under section 256J.21, subdivision 2, must be 
 53.15  applied to the needs of an assistance unit. 
 53.16     Subd. 2.  [PROSPECTIVE ELIGIBILITY.] A county agency must 
 53.17  determine whether the eligibility requirements that pertain to 
 53.18  an assistance unit, including those in sections 256J.10 to 
 53.19  256J.15 and 256J.20, will be met prospectively for the payment 
 53.20  month.  Except for the provisions in section 256J.34, 
 53.21  subdivision 1, the income test will be applied retrospectively. 
 53.22     Subd. 3.  [RETROSPECTIVE ELIGIBILITY.] After the first two 
 53.23  months of MFIP-S eligibility, a county agency must continue to 
 53.24  determine whether an assistance unit is prospectively eligible 
 53.25  for the payment month by looking at all factors other than 
 53.26  income and then determining whether the assistance unit is 
 53.27  retrospectively income eligible by applying the monthly income 
 53.28  test to the income from the budget month.  When the monthly 
 53.29  income test is not satisfied, the assistance payment must be 
 53.30  suspended when ineligibility exists for one month or ended when 
 53.31  ineligibility exists for more than one month. 
 53.32     Subd. 4.  [MONTHLY INCOME TEST.] A county agency must apply 
 53.33  the monthly income test retrospectively for each month of MFIP-S 
 53.34  eligibility.  An assistance unit is not eligible when the 
 53.35  countable income equals or exceeds the transitional standard or 
 53.36  the family wage level for the assistance unit.  The income 
 54.1   applied against the monthly income test must include: 
 54.2      (1) gross earned income from employment, prior to mandatory 
 54.3   payroll deductions, voluntary payroll deductions, wage 
 54.4   authorizations, and after the disregards in section 256J.21, 
 54.5   subdivision 3, and the allocations in section 256J.36, unless 
 54.6   the employment income is specifically excluded under section 
 54.7   256J.21, subdivision 2; 
 54.8      (2) gross earned income from self-employment less 
 54.9   deductions for self-employment expenses in section 256J.37, 
 54.10  subdivision 5, but prior to any reductions for personal or 
 54.11  business state and federal income taxes, personal FICA, personal 
 54.12  health and life insurance, and after the disregards in section 
 54.13  256J.21, subdivision 3, and the allocations in section 256J.36; 
 54.14     (3) unearned income after deductions for allowable expenses 
 54.15  in section 256J.37, subdivision 9, and allocations in section 
 54.16  256J.36, unless the income has been specifically excluded in 
 54.17  section 256J.21, subdivision 2; 
 54.18     (4) gross earned income from employment as determined under 
 54.19  clause (1) which is received by a member of an assistance unit 
 54.20  who is a minor child and less than a half-time student; 
 54.21     (5) child support and spousal support received or 
 54.22  anticipated to be received by an assistance unit; 
 54.23     (6) the income of a parent when that parent is not included 
 54.24  in the assistance unit; 
 54.25     (7) the income of an eligible relative and the relative's 
 54.26  spouse who seek to be included in the assistance unit; and 
 54.27     (8) the unearned income of a minor child included in the 
 54.28  assistance unit. 
 54.29     Subd. 5.  [WHEN TO TERMINATE ASSISTANCE.] When an 
 54.30  assistance unit is ineligible for MFIP-S assistance for two 
 54.31  consecutive months, the county agency must terminate MFIP-S 
 54.32  assistance. 
 54.33     Section 22 is effective January 1, 1998, except the 
 54.34  transitional provision in section 72 applies. 
 54.35     Sec. 23.  [256J.34] [CALCULATING PAYMENTS; SIGNIFICANT 
 54.36  CHANGE; INCOME AVERAGING.] 
 55.1      Subdivision 1.  [PROSPECTIVE BUDGETING.] A county agency 
 55.2   must use prospective budgeting to calculate the assistance 
 55.3   payment amount for the first two months for an applicant who has 
 55.4   not received assistance in this state for at least one payment 
 55.5   month preceding the first month of payment under a current 
 55.6   application.  Prospective budgeting is not subject to 
 55.7   overpayments or underpayments unless fraud is determined under 
 55.8   section 256.98. 
 55.9      (a) The county agency must apply the income received or 
 55.10  anticipated in the first month of MFIP-S eligibility against the 
 55.11  need of the first month.  The county agency must apply the 
 55.12  income received or anticipated in the second month against the 
 55.13  need of the second month. 
 55.14     (b) When the assistance payment for any part of the first 
 55.15  two months is based on anticipated income, the county agency 
 55.16  must base the initial assistance payment amount on the 
 55.17  information available at the time the initial assistance payment 
 55.18  is made. 
 55.19     (c) The county agency must determine the assistance payment 
 55.20  amount for the first two months of MFIP-S eligibility by 
 55.21  budgeting both recurring and nonrecurring income for those two 
 55.22  months. 
 55.23     (d) The county agency must budget the child support income 
 55.24  received or anticipated to be received by an assistance unit to 
 55.25  determine the assistance payment amount from the month of 
 55.26  application through the date in which MFIP-S eligibility is 
 55.27  determined and assistance is authorized.  Child support income 
 55.28  which has been budgeted to determine the assistance payment in 
 55.29  the initial two months is considered nonrecurring income.  An 
 55.30  assistance unit must forward any payment of child support to the 
 55.31  child support enforcement unit of the county agency following 
 55.32  the date in which assistance is authorized. 
 55.33     Subd. 2.  [RETROSPECTIVE BUDGETING.] The county agency must 
 55.34  use retrospective budgeting to calculate the monthly assistance 
 55.35  payment amount after the payment for the first two months has 
 55.36  been made under subdivision 1. 
 56.1      Subd. 3.  [ADDITIONAL USES OF RETROSPECTIVE 
 56.2   BUDGETING.] Notwithstanding subdivision 1, the county agency 
 56.3   must use retrospective budgeting to calculate the monthly 
 56.4   assistance payment amount for the first two months under 
 56.5   paragraphs (a) and (b). 
 56.6      (a) The county agency must use retrospective budgeting to 
 56.7   determine the amount of the assistance payment in the first two 
 56.8   months of MFIP-S eligibility: 
 56.9      (1) when an assistance unit applies for assistance for the 
 56.10  same month for which assistance has been interrupted, the 
 56.11  interruption in eligibility is less than one payment month, the 
 56.12  assistance payment for the preceding month was issued in this 
 56.13  state, and the assistance payment for the immediately preceding 
 56.14  month was determined retrospectively; or 
 56.15     (2) when a person applies in order to be added to an 
 56.16  assistance unit, that assistance unit has received assistance in 
 56.17  this state for at least the two preceding months, and that 
 56.18  person has been living with and has been financially responsible 
 56.19  for one or more members of that assistance unit for at least the 
 56.20  two preceding months. 
 56.21     (b) Except as provided in clauses (1) to (4), the county 
 56.22  agency must use retrospective budgeting and apply income 
 56.23  received in the budget month by an assistance unit and by a 
 56.24  financially responsible household member who is not included in 
 56.25  the assistance unit against the appropriate transitional or 
 56.26  family wage level standard to determine the assistance payment 
 56.27  to be issued for the payment month. 
 56.28     (1) When a source of income ends prior to the third payment 
 56.29  month, that income is not considered in calculating the 
 56.30  assistance payment for that month.  When a source of income ends 
 56.31  prior to the fourth payment month, that income is not considered 
 56.32  when determining the assistance payment for that month. 
 56.33     (2) When a member of an assistance unit or a financially 
 56.34  responsible household member leaves the household of the 
 56.35  assistance unit, the income of that departed household member is 
 56.36  not budgeted retrospectively for any full payment month in which 
 57.1   that household member does not live with that household and is 
 57.2   not included in the assistance unit. 
 57.3      (3) When an individual is removed from an assistance unit 
 57.4   because the individual is no longer a minor child, the income of 
 57.5   that individual is not budgeted retrospectively for payment 
 57.6   months in which that individual is not a member of the 
 57.7   assistance unit, except that income of an ineligible child in 
 57.8   the household must continue to be budgeted retrospectively 
 57.9   against the child's needs when the parent or parents of that 
 57.10  child request allocation of their income against any unmet needs 
 57.11  of that ineligible child. 
 57.12     (4) When a person ceases to have financial responsibility 
 57.13  for one or more members of an assistance unit, the income of 
 57.14  that person is not budgeted retrospectively for the payment 
 57.15  months which follow the month in which financial responsibility 
 57.16  ends. 
 57.17     Subd. 4.  [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 
 57.18  agency must recalculate the assistance payment when an 
 57.19  assistance unit experiences a significant change, as defined in 
 57.20  section 256J.08, resulting in a reduction in the gross income 
 57.21  received in the payment month from the gross income received in 
 57.22  the budget month.  The county agency must issue a supplemental 
 57.23  assistance payment based on the county agency's best estimate of 
 57.24  the assistance unit's income and circumstances for the payment 
 57.25  month.  Budget adjustments that result from significant changes 
 57.26  are limited to two in a 12-month period regardless of the reason 
 57.27  for the change.  Budget adjustments due to a significant change 
 57.28  in the amount of direct support received must not be made after 
 57.29  the date the assistance unit is required to forward support to 
 57.30  the child support enforcement unit under subdivision 1, 
 57.31  paragraph (d). 
 57.32     Subd. 5.  [INCOME AVERAGING FOR PARTICIPANTS PAID WEEKLY OR 
 57.33  BIWEEKLY.] For the purposes of stabilizing assistance payments, 
 57.34  the county agency may average income for participants paid 
 57.35  weekly or biweekly.  Monthly income may be computed by adding 
 57.36  income from all paychecks, dividing the sum by the number of 
 58.1   paychecks, and multiplying the results by 4.3 if paychecks are 
 58.2   weekly or 2.16 if paychecks are biweekly.  The county agency may 
 58.3   not use income averaging unless discussed with the participant 
 58.4   and requested by the participant. 
 58.5      Section 23 is effective January 1, 1998, except the 
 58.6   transitional provision in section 72 applies. 
 58.7      Sec. 24.  [256J.35] [AMOUNT OF ASSISTANCE PAYMENT.] 
 58.8      Except as provided in paragraphs (a) to (c), the amount of 
 58.9   an assistance payment is equal to the difference between the 
 58.10  transitional standard or the family wage level in section 
 58.11  256J.24 and countable income. 
 58.12     (a) When MFIP-S eligibility exists for the month of 
 58.13  application, the amount of the assistance payment for the month 
 58.14  of application must be prorated from the date of application or 
 58.15  the date all other eligibility factors are met for that 
 58.16  applicant, whichever is later.  This provision applies when an 
 58.17  applicant loses at least one day of MFIP-S eligibility. 
 58.18     (b) MFIP-S overpayments to an assistance unit must be 
 58.19  recouped according to section 256J.38, subdivision 4. 
 58.20     (c) An initial assistance payment must not be made to an 
 58.21  applicant who is not eligible on the date payment is made. 
 58.22     Section 24 is effective January 1, 1998, except the 
 58.23  transitional provision in section 72 applies. 
 58.24     Sec. 25.  [256J.36] [ALLOCATION FOR UNMET NEED OF OTHER 
 58.25  HOUSEHOLD MEMBERS.] 
 58.26     Except as prohibited in paragraphs (a) and (b), an 
 58.27  allocation of income is allowed to meet the unmet need of an 
 58.28  ineligible spouse or an ineligible child under the age of 21 for 
 58.29  whom the caregiver is financially responsible who also lives 
 58.30  with the caregiver.  An allocation is allowed from the 
 58.31  caregiver's income to meet the need of an ineligible or excluded 
 58.32  person.  That allocation is allowed in an amount up to the 
 58.33  difference between the MFIP-S family allowance for the 
 58.34  assistance unit when that excluded or ineligible person is 
 58.35  included in the assistance unit and the MFIP-S family allowance 
 58.36  for the assistance unit when the excluded or ineligible person 
 59.1   is not included in the assistance unit.  These allocations must 
 59.2   be deducted from the caregiver's counted earnings and from 
 59.3   unearned income subject to paragraphs (a) and (b). 
 59.4      (a) Income of a minor child in the assistance unit must not 
 59.5   be allocated to meet the need of a person who is not a member of 
 59.6   the assistance unit, including the child's parent, even when 
 59.7   that parent is the payee of the child's income. 
 59.8      (b) Income of an assistance unit must not be allocated to 
 59.9   meet the needs of a person ineligible for failure to cooperate 
 59.10  with program requirements including child support requirements, 
 59.11  a person ineligible due to fraud, or a relative caregiver and 
 59.12  his or her spouse who opt out of the assistance unit. 
 59.13     Section 25 is effective January 1, 1998, except the 
 59.14  transitional provision in section 72 applies. 
 59.15     Sec. 26.  [256J.37] [TREATMENT OF INCOME AND LUMP SUMS.] 
 59.16     Subdivision 1.  [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 
 59.17  MEMBERS.] (a) The income of ineligible household members must be 
 59.18  deemed after allowing the following disregards: 
 59.19     (1) the first 18 percent of the excluded family member's 
 59.20  gross earned income; 
 59.21     (2) amounts the ineligible person actually paid to 
 59.22  individuals not living in the same household but whom the 
 59.23  ineligible person claims as dependents for determining federal 
 59.24  personal income tax liability; 
 59.25     (3) child or spousal support paid to a person who lives 
 59.26  outside of the household; and 
 59.27     (4) an amount for the needs of other persons who live in 
 59.28  the household but are not included in the assistance unit and 
 59.29  are or could be claimed by an ineligible person as dependents 
 59.30  for determining federal personal income tax liability.  This 
 59.31  amount is equal to the difference between the MFIP-S need 
 59.32  standard when the excluded person is included in the assistance 
 59.33  unit and the MFIP-S need standard when the excluded person is 
 59.34  not included in the assistance unit. 
 59.35     This subdivision is effective January 1, 1998, except the 
 59.36  transitional provision in section 72 applies. 
 60.1      Subd. 2.  [DEEMED INCOME OF SPONSOR OF NONCITIZENS.] (a) 
 60.2   All income of a sponsor, or sponsor's spouse, who executed an 
 60.3   affidavit of support for a noncitizen must be deemed to be 
 60.4   unearned income of the noncitizen as specified in the Personal 
 60.5   Responsibility and Work Opportunity Reconciliation Act of 1996 
 60.6   and any implementing regulations.  For purposes of this 
 60.7   subdivision "sponsor" means an individual or organization.  
 60.8      (b) The income of a sponsor who executed an affidavit of 
 60.9   support for a noncitizen prior to the promulgation of the 
 60.10  affidavit of support under the Personal Responsibility and Work 
 60.11  Opportunity Reconciliation Act of 1996, must be deemed to be 
 60.12  unearned income of the noncitizen after allowing the following 
 60.13  exclusions: 
 60.14     (1) 20 percent of the combined gross earned income of the 
 60.15  sponsor and the sponsor's spouse up to a maximum of $175 per 
 60.16  month; 
 60.17     (2) an amount for the needs of the sponsor, the sponsor's 
 60.18  spouse, and other individuals, living in the sponsor's home, who 
 60.19  could be claimed by the sponsor or the sponsor's spouse as 
 60.20  dependents for determining federal personal income tax 
 60.21  liability, which is equal to the MFIP-S need standard for a 
 60.22  comparable family unit; 
 60.23     (3) amounts the sponsor and the sponsor's spouse actually 
 60.24  paid to individuals not living in the same household but whom 
 60.25  the sponsor or the sponsor's spouse claim as dependents for 
 60.26  determining federal personal income tax liability; and 
 60.27     (4) child or spousal support paid by the sponsor or 
 60.28  sponsor's spouse to a person who lives outside of the sponsor's 
 60.29  household. 
 60.30     Subd. 3.  [EARNED INCOME OF WAGE, SALARY, AND CONTRACTUAL 
 60.31  EMPLOYEES.] The county agency must include gross earned income 
 60.32  less any disregards in the initial and monthly income test.  
 60.33  Gross earned income received by persons employed on a 
 60.34  contractual basis must be prorated over the period covered by 
 60.35  the contract even when payments are received over a lesser 
 60.36  period of time. 
 61.1      This subdivision is effective January 1, 1998, except the 
 61.2   transitional provision in section 72 applies. 
 61.3      Subd. 4.  [SELF-EMPLOYMENT.] Self-employed individuals are 
 61.4   those who are responsible for their own work schedule and do not 
 61.5   have coverage under an employer's liability insurance or 
 61.6   workers' compensation.  Self-employed individuals generally work 
 61.7   for themselves rather than an employer.  However, individuals 
 61.8   employed in some types of services may be self-employed even if 
 61.9   they have an employer or work out of another's business 
 61.10  location.  For example, real estate sales people, individuals 
 61.11  who work for commission sales, manufacturer's representatives, 
 61.12  and independent contractors may be self-employed.  Self-employed 
 61.13  individuals may or may not have FICA deducted from the check 
 61.14  issued to them by an employer or another party. 
 61.15     Self-employed individuals may own a business singularly or 
 61.16  in partnership.  Individuals operating more than one 
 61.17  self-employment business may use the loss from one business to 
 61.18  offset self-employment income from another business.  A loss 
 61.19  from a self-employment business may not offset income earned 
 61.20  under subdivision 3. 
 61.21     This subdivision is effective January 1, 1998, except the 
 61.22  transitional provision in section 72 applies. 
 61.23     Subd. 5.  [SELF-EMPLOYMENT EARNINGS.] (a) The county agency 
 61.24  must determine self-employment income as provided in this 
 61.25  paragraph. The county agency must subtract allowable business 
 61.26  expenses from total gross receipts.  Allowable business expenses 
 61.27  include: 
 61.28     (1) interest on mortgages and loans; 
 61.29     (2) employee wages, except for persons who are part of the 
 61.30  assistance unit or whose income is deemed to the participant; 
 61.31     (3) FICA funds paid on employees' wages, payment of 
 61.32  employee workers' compensation, and reemployment insurance; 
 61.33     (4) livestock and veterinary or breeding fees; 
 61.34     (5) raw material; 
 61.35     (6) seed and fertilizer; 
 61.36     (7) maintenance and repairs that are not capital 
 62.1   expenditures; 
 62.2      (8) tax return preparation fees; 
 62.3      (9) license fees, professional fees, franchise fees, and 
 62.4   professional dues; 
 62.5      (10) tools and supplies that are not capital expenditures; 
 62.6      (11) fuel and transportation expenses other than fuel costs 
 62.7   covered by the flat rate transportation deduction; 
 62.8      (12) advertising costs; 
 62.9      (13) meals eaten when required to be away from the local 
 62.10  work site; 
 62.11     (14) property expenses such as rent, insurance, taxes, and 
 62.12  utilities; 
 62.13     (15) postage; 
 62.14     (16) purchase cost of inventory at time of sale; 
 62.15     (17) loss from another self-employment business; 
 62.16     (18) attorney's fees allowed by the Internal Revenue 
 62.17  Service; and 
 62.18     (19) tuition for classes necessary to maintain or improve 
 62.19  job skills or required by law to maintain job status or salary 
 62.20  as allowed by the Internal Revenue Service. 
 62.21     (b) The county agency shall not allow a deduction for the 
 62.22  following expenses: 
 62.23     (1) purchases of capital assets; 
 62.24     (2) payments on the principals of loans for capital assets; 
 62.25     (3) depreciation; 
 62.26     (4) amortization; 
 62.27     (5) the wholesale costs of items purchased, processed, or 
 62.28  manufactured which are unsold inventory; 
 62.29     (6) transportation costs that exceed the maximum standard 
 62.30  mileage rate allowed for use of a personal car in the Internal 
 62.31  Revenue Code; 
 62.32     (7) costs, in any amount, for mileage between an 
 62.33  applicant's or participant's home and place of employment; 
 62.34     (8) salaries and other employment deductions made for 
 62.35  members of an assistance unit or persons who live in the 
 62.36  household for whom an employer is legally responsible; 
 63.1      (9) monthly expenses in excess of $71 for each roomer; 
 63.2      (10) monthly expenses in excess of the Thrifty Food Plan 
 63.3   amount for one person for each boarder.  For purposes of this 
 63.4   clause and clause (11), "Thrifty Food Plan" has the meaning 
 63.5   given it in Code of Federal Regulations. 
 63.6      (11) monthly expenses in excess of the roomer rate plus the 
 63.7   Thrifty Food Plan amount for one person for each 
 63.8   roomer-boarder.  If there is more than one boarder or 
 63.9   roomer-boarder, the total number of boarders must be used as the 
 63.10  unit size to determine the Thrifty Food Plan amount; 
 63.11     (12) an amount greater than actual expenses or two percent 
 63.12  of the estimated market value on a county tax assessment form, 
 63.13  whichever is greater, as a deduction for upkeep and repair 
 63.14  against rental income; 
 63.15     (13) expenses not allowed by the Internal Revenue Code; 
 63.16     (14) expenses in excess of 60 percent of gross receipts for 
 63.17  in-home child care unless a higher amount can be documented; and 
 63.18     (15) expenses that are reimbursed under the child and adult 
 63.19  care food program as authorized under the National School Lunch 
 63.20  Act, United States Code, title 42, section 1766. 
 63.21     This subdivision is effective January 1, 1998, except the 
 63.22  transitional provision in section 72 applies. 
 63.23     Subd. 6.  [SELF-EMPLOYMENT BUDGET PERIOD.] The 
 63.24  self-employment budget period begins in the month of application 
 63.25  or in the first month of self-employment.  Gross receipts must 
 63.26  be budgeted in the month received.  Expenses must be budgeted 
 63.27  against gross receipts in the month the expenses are paid, 
 63.28  except for paragraphs (a) to (c). 
 63.29     (a) The purchase cost of inventory items, including 
 63.30  materials which are processed or manufactured, must be deducted 
 63.31  as an expense at the time payment is received for the sale of 
 63.32  the inventory items. 
 63.33     (b) A 12-month rolling average based on clauses (1) to (3) 
 63.34  must be used to budget monthly income. 
 63.35     (1) For a business in operation for at least 12 months, the 
 63.36  county agency shall use the average monthly self-employment 
 64.1   income from the most current income tax return for the taxable 
 64.2   year before the month of application.  The county agency shall 
 64.3   determine a new monthly average by adding in the actual 
 64.4   self-employment income and expenses from the previous month and 
 64.5   dropping the first month from the averaging period. 
 64.6      (2) For a business in operation for less than 12 months, 
 64.7   the county agency shall compute the average for the number of 
 64.8   months the business has been in operation to determine a monthly 
 64.9   average.  When data are available for 12 or more months, average 
 64.10  monthly self-employment income is determined under clause (1). 
 64.11     (3) If the business undergoes a major change, the county 
 64.12  agency shall compute a new rolling average beginning with the 
 64.13  first month of the major change.  For the purpose of this 
 64.14  clause, "major change" means a change that affects the nature 
 64.15  and scale of the business and is not merely the result of normal 
 64.16  business fluctuations. 
 64.17     (c) For seasonal self-employment, the participant may 
 64.18  choose whether to use actual income in the month of receipt and 
 64.19  expenses in the month incurred or the rolling average method of 
 64.20  computation.  The choice must be made once per year at the time 
 64.21  of application or recertification.  For the purpose of this 
 64.22  paragraph, seasonal means working six or less months per year. 
 64.23     This subdivision is effective January 1, 1998, except the 
 64.24  transitional provision in section 72 applies. 
 64.25     Subd. 7.  [FARM INCOME.] Farm income is the difference 
 64.26  between gross receipts and operating expenses.  The county 
 64.27  agency must not allow a deduction for expenses listed in 
 64.28  subdivision 5, paragraph (b).  Gross receipts include sales, 
 64.29  rents, subsidies, soil conservation payments, production derived 
 64.30  from livestock, and income from home-produced food.  
 64.31     This subdivision is effective January 1, 1998, except the 
 64.32  transitional provision in section 72 applies. 
 64.33     Subd. 8.  [RENTAL INCOME.] The county agency must treat 
 64.34  income from rental property as earned or unearned income.  
 64.35  Income from rental property is unearned income unless the 
 64.36  assistance unit spends an average of ten hours per week on 
 65.1   maintenance or management of the property.  When the owner 
 65.2   spends more than ten hours per week on maintenance or repairs, 
 65.3   the earnings are considered self-employment earnings.  An amount 
 65.4   must be deducted for upkeep and repairs, as limited by 
 65.5   subdivision 5, paragraph (b), clause (12), real estate taxes, 
 65.6   insurance, utilities, and interest on principal payments.  When 
 65.7   the applicant or participant lives on the rental property, 
 65.8   expenses for upkeep, taxes, insurance, utilities, and interest 
 65.9   must be divided by the number of rooms to determine expense per 
 65.10  room and expenses deducted must be deducted only for the number 
 65.11  of rooms rented. 
 65.12     This subdivision is effective January 1, 1998, except the 
 65.13  transitional provision in section 72 applies. 
 65.14     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
 65.15  apply unearned income, including housing subsidies as specified 
 65.16  in paragraph (b), to the transitional standard.  When 
 65.17  determining the amount of unearned income, the county agency 
 65.18  must deduct the costs necessary to secure payments of unearned 
 65.19  income.  These costs include legal fees, medical fees, and 
 65.20  mandatory deductions such as federal and state income taxes. 
 65.21     (b) Effective January 1, 1998, the county agency shall 
 65.22  count $100 of the value of public and assisted rental subsidies 
 65.23  provided by the Department of Housing and Urban Development 
 65.24  (HUD) through state or local housing authorities, as unearned 
 65.25  income.  The full amount of the subsidy must be counted as 
 65.26  unearned income when the subsidy is less than $100. 
 65.27     This subdivision is effective January 1, 1998, except the 
 65.28  transitional provision in section 72 applies. 
 65.29     Subd. 10.  [TREATMENT OF LUMP SUMS.] The county agency must 
 65.30  treat lump-sum payments as earned or unearned income.  If the 
 65.31  lump-sum payment is included in the category of income 
 65.32  identified in subdivision 9, it must be treated as unearned 
 65.33  income.  A lump sum is counted as income in the month received 
 65.34  and budgeted either prospectively or retrospectively depending 
 65.35  on the budget cycle at the time of receipt.  When an individual 
 65.36  receives a lump-sum payment, that lump sum must be combined with 
 66.1   all other earned and unearned income received in the same budget 
 66.2   month, and it must be applied according to paragraphs (a) to (c).
 66.3   A lump sum may not be carried over into subsequent months.  Any 
 66.4   funds that remain in the third month after the month of receipt 
 66.5   are counted in the asset limit. 
 66.6      (a) For a lump sum received by an applicant during the 
 66.7   first two months, prospective budgeting is used to determine the 
 66.8   payment and the lump sum must be combined with other earned or 
 66.9   unearned income received and budgeted in that prospective month. 
 66.10     (b) For a lump sum received by a participant after the 
 66.11  first two months of MFIP-S eligibility, the lump sum must be 
 66.12  combined with other income received in that budget month, and 
 66.13  the combined amount must be applied retrospectively against the 
 66.14  applicable payment month. 
 66.15     (c) When a lump sum, combined with other income under 
 66.16  paragraphs (a) and (b), is less than the transitional standard 
 66.17  for the applicable payment month, the assistance payment must be 
 66.18  reduced according to the amount of the countable income.  When 
 66.19  the countable income is greater than the transitional standard 
 66.20  or the family wage standard, the assistance payment must be 
 66.21  suspended for the payment month. 
 66.22     This subdivision is effective January 1, 1998, except the 
 66.23  transitional provision in section 72 applies. 
 66.24     Sec. 27.  [256J.38] [CORRECTION OF OVERPAYMENTS AND 
 66.25  UNDERPAYMENTS.] 
 66.26     Subdivision 1.  [SCOPE OF OVERPAYMENT.] When a participant 
 66.27  or former participant receives an overpayment due to agency, 
 66.28  client, or ATM error, or due to assistance received while an 
 66.29  appeal is pending and the participant or former participant is 
 66.30  determined ineligible for assistance or for less assistance than 
 66.31  was received, the county agency must recoup or recover the 
 66.32  overpayment under the conditions of this section. 
 66.33     Subd. 2.  [NOTICE OF OVERPAYMENT.] When a county agency 
 66.34  discovers that a participant or former participant has received 
 66.35  an overpayment for one or more months, the county agency must 
 66.36  notify the participant or former participant of the overpayment 
 67.1   in writing.  A notice of overpayment must specify the reason for 
 67.2   the overpayment, the authority for citing the overpayment, the 
 67.3   time period in which the overpayment occurred, the amount of the 
 67.4   overpayment, and the participant's or former participant's right 
 67.5   to appeal.  No limit applies to the period in which the county 
 67.6   agency is required to recoup or recover an overpayment according 
 67.7   to subdivisions 3 and 4. 
 67.8      Subd. 3.  [RECOVERING OVERPAYMENTS FROM FORMER 
 67.9   PARTICIPANTS.] A county agency must initiate efforts to recover 
 67.10  overpayments paid to a former participant.  Adults and minor 
 67.11  caregivers of an assistance unit at the time an overpayment 
 67.12  occurs, whether receiving assistance or not, are jointly and 
 67.13  individually liable for repayment of the overpayment.  The 
 67.14  county agency must request repayment from the former 
 67.15  participants.  When an agreement for repayment is not completed 
 67.16  within six months of the date of discovery or when there is a 
 67.17  default on an agreement for repayment after six months, the 
 67.18  county agency must initiate recovery consistent with chapter 
 67.19  270A, or section 541.05.  When a person has been convicted of 
 67.20  fraud under section 256.98, recovery must be sought regardless 
 67.21  of the amount of overpayment.  When an overpayment is less than 
 67.22  $35, and is not the result of a fraud conviction under section 
 67.23  256.98, the county agency must not seek recovery under this 
 67.24  subdivision.  The county agency must retain information about 
 67.25  all overpayments regardless of the amount.  When an adult or 
 67.26  minor caregiver reapplies for assistance, the overpayment must 
 67.27  be recouped under subdivision 4. 
 67.28     Subd. 4.  [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 
 67.29  participant may voluntarily repay, in part or in full, an 
 67.30  overpayment even if assistance is reduced under this 
 67.31  subdivision, until the total amount of the overpayment is 
 67.32  repaid.  When an overpayment occurs, the county agency must 
 67.33  recover ten percent of the transitional standard or the amount 
 67.34  of the monthly assistance payment, whichever is less.  
 67.35     Subd. 5.  [RECOVERING AUTOMATIC TELLER MACHINE ERRORS.] For 
 67.36  recipients receiving benefits via electronic benefit transfer, 
 68.1   if the overpayment is a result of an ATM dispensing funds in 
 68.2   error to the recipient, the agency may recover the ATM error by 
 68.3   immediately withdrawing funds from the recipient's electronic 
 68.4   benefit transfer account, up to the amount of the error. 
 68.5      Subd. 6.  [SCOPE OF UNDERPAYMENTS.] A county agency must 
 68.6   issue a corrective payment for underpayments made to a 
 68.7   participant or to a person who would be a participant if an 
 68.8   agency or client error causing the underpayment had not occurred.
 68.9   The county agency must issue the corrective payment according to 
 68.10  subdivision 8. 
 68.11     Subd. 7.  [IDENTIFYING THE UNDERPAYMENT.] An underpayment 
 68.12  may be identified by a county agency, by a participant, by a 
 68.13  former participant, or by a person who would be a participant 
 68.14  except for agency or client error. 
 68.15     Subd. 8.  [ISSUING CORRECTIVE PAYMENTS.] A county agency 
 68.16  must correct an underpayment within seven calendar days after 
 68.17  the underpayment has been identified, by adding the corrective 
 68.18  payment amount to the monthly assistance payment of the 
 68.19  participant or by issuing a separate payment to a participant or 
 68.20  former participant, or by reducing an existing overpayment 
 68.21  balance.  When an underpayment occurs in a payment month and is 
 68.22  not identified until the next payment month or later, the county 
 68.23  agency must first subtract the underpayment from any overpayment 
 68.24  balance before issuing the corrective payment.  The county 
 68.25  agency must not apply an underpayment in a current payment month 
 68.26  against an overpayment balance.  When an underpayment in the 
 68.27  current payment month is identified, the corrective payment must 
 68.28  be issued within seven calendar days after the underpayment is 
 68.29  identified. 
 68.30     Subd. 9.  [APPEALS.] A participant may appeal an 
 68.31  underpayment, an overpayment, and a reduction in an assistance 
 68.32  payment made to recoup the overpayment under subdivision 4.  The 
 68.33  participant's appeal of each issue must be timely under section 
 68.34  256.045.  When an appeal based on the notice issued under 
 68.35  subdivision 2 is not timely, the fact or the amount of that 
 68.36  overpayment must not be considered as a part of a later appeal, 
 69.1   including an appeal of a reduction in an assistance payment to 
 69.2   recoup that overpayment. 
 69.3      This subdivision is effective January 1, 1998, except the 
 69.4   transitional provision in section 72 applies. 
 69.5      Sec. 28.  [256J.39] [PAYMENT PROVISIONS; VENDOR PAYMENTS.] 
 69.6      Subdivision 1.  [PAYMENT POLICY.] The following policies 
 69.7   apply to monthly assistance payments and corrective payments: 
 69.8      (1) Grant payments may be issued in the form of warrants 
 69.9   immediately redeemable in cash, electronic benefits transfer, or 
 69.10  by direct deposit into the recipient's account in a financial 
 69.11  institution. 
 69.12     (2) The commissioner shall mail assistance payment checks 
 69.13  to the address where a caregiver lives unless the county agency 
 69.14  approves an alternate arrangement. 
 69.15     (3) The commissioner shall mail monthly assistance payment 
 69.16  checks within time to allow postal service delivery to occur no 
 69.17  later than the first day of each month.  Monthly assistance 
 69.18  payment checks must be dated the first day of the month.  The 
 69.19  commissioner shall issue electronic benefits transfer payments 
 69.20  so that caregivers have access to the payments no later than the 
 69.21  first of the month.  
 69.22     (4) The commissioner shall issue replacement checks 
 69.23  promptly, but no later than seven calendar days after the 
 69.24  provisions of sections 16A.46; 256.01, subdivision 11; and 
 69.25  471.415 have been met. 
 69.26     Subd. 2.  [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 
 69.27  paying assistance directly to a participant may be used when: 
 69.28     (1) a county agency determines that a vendor payment is the 
 69.29  most effective way to resolve an emergency situation pertaining 
 69.30  to basic needs; 
 69.31     (2) a caregiver makes a written request to the county 
 69.32  agency asking that part or all of the assistance payment be 
 69.33  issued by protective or vendor payments for shelter and utility 
 69.34  service only.  The caregiver may withdraw this request in 
 69.35  writing at any time; 
 69.36     (3) a caregiver has exhibited a continuing pattern of 
 70.1   mismanaging funds as determined by the county agency; 
 70.2      (4) the vendor payment is part of a sanction under section 
 70.3   256J.46, subdivision 2; or 
 70.4      (5) the vendor payment is required under section 256J.24 or 
 70.5   256J.43. 
 70.6      The director of a county agency must approve a proposal for 
 70.7   protective or vendor payment for money mismanagement.  During 
 70.8   the time a protective or vendor payment is being made, the 
 70.9   county agency must provide services designed to alleviate the 
 70.10  causes of the mismanagement. 
 70.11     The continuing need for and method of payment must be 
 70.12  documented and reviewed every 12 months.  The director of a 
 70.13  county agency must approve the continuation of protective or 
 70.14  vendor payments. 
 70.15     When it appears that the need for protective or vendor 
 70.16  payments will continue or is likely to continue beyond two years 
 70.17  because the county agency's efforts have not resulted in 
 70.18  sufficiently improved use of assistance on behalf of the minor 
 70.19  child, judicial appointment of a legal guardian or other legal 
 70.20  representative must be sought by the county agency.  
 70.21     Subd. 3.  [CHOOSING PAYEES FOR PROTECTIVE OR VENDOR 
 70.22  PAYMENTS.] A county agency shall consult with a caregiver 
 70.23  regarding the selection of the form of payment, the selection of 
 70.24  a protective payee, and the distribution of the assistance 
 70.25  payment to meet the various costs incurred by the assistance 
 70.26  unit.  When choosing a protective payee, the county agency shall 
 70.27  notify the caregiver of a consultation date.  If the caregiver 
 70.28  fails to respond to the county agency's request for consultation 
 70.29  by the effective date on the notice, the county agency must 
 70.30  choose a protective payee for that payment month and subsequent 
 70.31  payment months until the caregiver responds to the agency's 
 70.32  request for consultation.  The county agency must notify the 
 70.33  caregiver of the right to appeal the determination that a 
 70.34  protective or vendor payment should be made or continued and to 
 70.35  appeal the selection of the payee.  If a county agency is not 
 70.36  able to find another protective payee, a county agency staff 
 71.1   member may serve as a protective payee.  The following persons 
 71.2   may not serve as protective payees:  a member of the county 
 71.3   board of commissioners; the county agency staff member 
 71.4   determining financial eligibility for the family; special 
 71.5   investigative or resource staff; the staff member handling 
 71.6   accounting or fiscal processes related to the participant; or a 
 71.7   landlord, grocer, or other vendor dealing directly with the 
 71.8   participant. 
 71.9      Subd. 4.  [DISCONTINUING PROTECTIVE OR VENDOR PAYMENTS.] A 
 71.10  county agency shall discontinue protective or vendor payments in 
 71.11  two years or in the month following the county agency's failure 
 71.12  to grant six-month approval to a money management plan, 
 71.13  whichever occurs first.  At least once every 12 months, a county 
 71.14  agency shall review the performance of a protective payee acting 
 71.15  under subdivision 2, clause (3), to determine whether a new 
 71.16  payee should be selected.  When a participant complains about 
 71.17  the performance of a protective payee, a review shall occur 
 71.18  within 30 calendar days. 
 71.19     Section 28 is effective January 1, 1998, except the 
 71.20  transitional provision in section 72 applies. 
 71.21     Sec. 29.  [256J.395] [VENDOR PAYMENT OF RENT AND 
 71.22  UTILITIES.] 
 71.23     (a) When a county is required to provide assistance to a 
 71.24  recipient in vendor form for rent and utilities under chapter 
 71.25  256, 256D, 256J, or 256K, the cost of utilities for a given 
 71.26  family may be assumed to be: 
 71.27     (1) the average of the actual monthly cost of utilities for 
 71.28  that family for the prior 12 months at the family's current 
 71.29  residence, if applicable; 
 71.30     (2) the monthly plan amount, if any, set by the local 
 71.31  utilities for that family at the family's current residence; or 
 71.32     (3) the estimated monthly utility costs for the dwelling in 
 71.33  which the family currently resides. 
 71.34     (b) For purposes of this section, "utility" means any of 
 71.35  the following:  municipal water and sewer service; electric, 
 71.36  gas, or heating fuel service; or wood, if that is the heating 
 72.1   source. 
 72.2      This section is effective July 1, 1997. 
 72.3      Sec. 30.  [256J.40] [FAIR HEARINGS.] 
 72.4      Caregivers receiving a notice of intent to sanction or a 
 72.5   notice of adverse action that includes a sanction, reduction in 
 72.6   benefits, suspension of benefits, denial of benefits, or 
 72.7   termination of benefits may request a fair hearing.  A request 
 72.8   for a fair hearing must be submitted in writing to the county 
 72.9   agency or to the commissioner and must be mailed within 30 days 
 72.10  after a participant or former participant receives written 
 72.11  notice of the agency's action or within 90 days when a 
 72.12  participant or former participant shows good cause for not 
 72.13  submitting the request within 30 days.  A former participant who 
 72.14  receives a notice of adverse action due to an overpayment may 
 72.15  appeal the adverse action according to the requirements in this 
 72.16  section.  Issues that may be appealed are: 
 72.17     (1) the amount of the assistance payment; 
 72.18     (2) a suspension, reduction, denial, or termination of 
 72.19  assistance; 
 72.20     (3) the basis for an overpayment, the calculated amount of 
 72.21  an overpayment, and the level of recoupment; 
 72.22     (4) the eligibility for an assistance payment; and 
 72.23     (5) the use of protective or vendor payments under section 
 72.24  256J.39, subdivision 2, clauses (1) and (3). 
 72.25     A county agency must not reduce, suspend, or terminate 
 72.26  payment when an aggrieved participant requests a fair hearing 
 72.27  prior to the effective date of the adverse action or within ten 
 72.28  days of the mailing of the notice of adverse action, whichever 
 72.29  is later, unless the participant requests in writing not to 
 72.30  receive continued assistance pending a hearing decision.  
 72.31  Assistance issued pending a fair hearing is subject to recovery 
 72.32  under section 256J.38 when as a result of the fair hearing 
 72.33  decision the participant is determined ineligible for assistance 
 72.34  or the amount of the assistance received.  A county agency may 
 72.35  increase or reduce an assistance payment while an appeal is 
 72.36  pending when the circumstances of the participant change and are 
 73.1   not related to the issue on appeal.  The commissioner's order is 
 73.2   binding on a county agency.  No additional notice is required to 
 73.3   enforce the commissioner's order. 
 73.4      A county agency shall reimburse appellants for reasonable 
 73.5   and necessary expenses of attendance at the hearing, such as 
 73.6   child care and transportation costs and for the transportation 
 73.7   expenses of the appellant's witnesses and representatives to and 
 73.8   from the hearing.  Reasonable and necessary expenses do not 
 73.9   include legal fees.  Fair hearings must be conducted at a 
 73.10  reasonable time and date by an impartial referee employed by the 
 73.11  department.  The hearing may be conducted by telephone or at a 
 73.12  site that is readily accessible to persons with disabilities. 
 73.13     The appellant may introduce new or additional evidence 
 73.14  relevant to the issues on appeal.  Recommendations of the 
 73.15  appeals referee and decisions of the commissioner must be based 
 73.16  on evidence in the hearing record and are not limited to a 
 73.17  review of the county agency action.  
 73.18     Section 30 is effective January 1, 1998, except the 
 73.19  transitional provision in section 72 applies. 
 73.20     Sec. 31.  [256J.42] [60-MONTH TIME LIMIT.] 
 73.21     Subdivision 1.  [TIME LIMIT.] (a) An assistance unit in 
 73.22  which any adult caregiver has received 60 months of cash 
 73.23  assistance funded in whole or in part by the TANF block grant is 
 73.24  ineligible to receive MFIP-S.  Any cash assistance funded with 
 73.25  TANF dollars that was received by the unit on or after the date 
 73.26  TANF was implemented, including any assistance received in 
 73.27  states of prior residence, counts toward the 60-month 
 73.28  limitation.  The 60-month limit applies to a minor who is the 
 73.29  head of a household or who is married to the head of a 
 73.30  household.  The 60-month time period does not need to be 
 73.31  consecutive months for this provision to apply.  
 73.32     (b) Months before July 1998 in which individuals receive 
 73.33  assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R 
 73.34  comparison group family under sections 256.031 to 256.0361 or 
 73.35  sections 256.047 to 256.048 are not included in the 60-month 
 73.36  time limit. 
 74.1      Subd. 2.  [ASSISTANCE FROM ANOTHER STATE.] An individual is 
 74.2   ineligible to receive MFIP-S assistance in any month during 
 74.3   which that individual received benefits from another state under 
 74.4   the temporary assistance to needy families block grant 
 74.5   authorized by Title I of Public Law Number 104-193. 
 74.6      Subd. 3.  [ADULTS LIVING ON AN INDIAN RESERVATION.] In 
 74.7   determining the number of months for which an adult has received 
 74.8   assistance under MFIP-S, the county agency must disregard any 
 74.9   month during which the adult lived on an Indian reservation if, 
 74.10  during the month:  
 74.11     (1) at least 1,000 individuals were living on the 
 74.12  reservation; and 
 74.13     (2) at least 50 percent of the adults living on the 
 74.14  reservation were unemployed. 
 74.15     Subd. 4.  [VICTIMS OF DOMESTIC VIOLENCE.] Any cash 
 74.16  assistance received by an assistance unit in a month when a 
 74.17  caregiver is complying with a safety plan under the MFIP-S 
 74.18  employment and training component does not count toward the 
 74.19  60-month limitation on assistance. 
 74.20     Sec. 32.  [256J.43] [INTERSTATE PAYMENT STANDARDS.] 
 74.21     (a) Effective July 1, 1997, the amount of assistance paid 
 74.22  to an eligible family in which all members have resided in this 
 74.23  state for fewer than 12 calendar months shall be the lesser of 
 74.24  either the payment standard that would have been received by the 
 74.25  family from the state of immediate prior residence, or the 
 74.26  amount calculated in accordance with AFDC or MFIP-S standards.  
 74.27  The lesser payment must continue until the family meets the 
 74.28  12-month requirement.  Payment must be calculated by applying 
 74.29  this state's budgeting policies, and the unit's net income must 
 74.30  be deducted from the payment standard in the other state or in 
 74.31  this state, whichever is lower.  Payment shall be made in vendor 
 74.32  form for rent and utilities, up to the limit of the grant 
 74.33  amount, and residual amounts, if any, shall be paid directly to 
 74.34  the assistance unit. 
 74.35     (b) During the first 12 months a family resides in this 
 74.36  state, the number of months that a family is eligible to receive 
 75.1   AFDC or MFIP-S benefits is limited to the number of months the 
 75.2   family would have been eligible to receive similar benefits in 
 75.3   the state of immediate prior residence. 
 75.4      (c) This policy applies whether or not the family received 
 75.5   similar benefits while residing in the state of previous 
 75.6   residence. 
 75.7      (d) When a family moves to this state from another state 
 75.8   where the family has exhausted that state's time limit for 
 75.9   receiving benefits under that state's TANF program, the family 
 75.10  will not be eligible to receive any AFDC or MFIP-S benefits in 
 75.11  this state for 12 months from the date the family moves here. 
 75.12     (e) For the purposes of this section, "state of immediate 
 75.13  prior residence" means: 
 75.14     (1) the state in which the applicant declares the applicant 
 75.15  spent the most time in the 30 days prior to moving to this 
 75.16  state; or 
 75.17     (2) the state in which an applicant who is a migrant worker 
 75.18  maintains a home. 
 75.19     (f) The commissioner shall annually verify and update all 
 75.20  other states' payment standards as they are to be in effect in 
 75.21  July of each year. 
 75.22     (g) Applicants must provide verification of their state of 
 75.23  immediate prior residence, in the form of tax statements, a 
 75.24  driver's license, automobile registration, rent receipts, or 
 75.25  other forms of verification approved by the commissioner. 
 75.26     Sec. 33.  [256J.44] [INITIAL SCREENING OF MFIP-S 
 75.27  APPLICANT.] 
 75.28     Subdivision 1.  [SCREENING.] The county agency, or at 
 75.29  county option, the county's employment and training service 
 75.30  provider as defined in section 256J.49, must screen each 
 75.31  applicant to determine immediate needs and to determine if the 
 75.32  applicant may be eligible for: 
 75.33     (1) another program that is not partially funded through 
 75.34  the federal temporary assistance to needy families block grant 
 75.35  under title I of Public Law Number 104-193, including the 
 75.36  expedited issuance of food stamps under section 256J.28, 
 76.1   subdivision 1.  If the applicant may be eligible for another 
 76.2   program, a county caseworker must provide the appropriate 
 76.3   referral to the program; 
 76.4      (2) the diversionary assistance program under section 
 76.5   256J.47; or 
 76.6      (3) the emergency assistance program under section 256J.48. 
 76.7      The applicant is required to attend the screening.  If the 
 76.8   applicant is not diverted from applying for MFIP-S under clauses 
 76.9   (1) to (3), and if the applicant meets the MFIP-S eligibility 
 76.10  requirements, then an orientation under section 256J.45 and an 
 76.11  initial assessment under section 256J.52 must be completed; or, 
 76.12  in the case of caregivers who are under the age of 20, a plan 
 76.13  under section 256J.54 must be completed. 
 76.14     Subd. 2.  [SUPPORT SERVICES TO ATTEND SCREENING AND 
 76.15  ORIENTATION.] Upon a caregiver's request, the county agency must 
 76.16  arrange for transportation and child care or reimburse 
 76.17  caregivers for transportation and child care expenses necessary 
 76.18  to enable caregivers to attend the initial screening under this 
 76.19  section and the orientation under section 256J.45 if scheduled 
 76.20  on a day other than when the caregiver makes application for 
 76.21  assistance. 
 76.22     Section 33 is effective January 1, 1998, except the 
 76.23  transitional provision in section 72 applies. 
 76.24     Sec. 34.  [256J.45] [ORIENTATION.] 
 76.25     Subdivision 1.  [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 
 76.26  county agency must provide each MFIP-S caregiver with a 
 76.27  face-to-face orientation.  The caregiver must attend the 
 76.28  orientation.  
 76.29     Subd. 2.  [GENERAL INFORMATION.] The MFIP-S orientation 
 76.30  must consist of a presentation that informs caregivers of: 
 76.31     (1) the necessity to obtain immediate employment; 
 76.32     (2) the work incentives under MFIP-S; 
 76.33     (3) the requirement to comply with the employment plan and 
 76.34  other requirements of the employment and training services 
 76.35  component of MFIP-S; 
 76.36     (4) the consequences for failing to comply with the 
 77.1   employment plan and other program requirements; 
 77.2      (5) the rights, responsibilities, and obligations of 
 77.3   participants; 
 77.4      (6) the types and locations of child care services 
 77.5   available through the county agency; 
 77.6      (7) the availability and the benefits of the early 
 77.7   childhood health and developmental screening under sections 
 77.8   123.701 to 123.74; 
 77.9      (8) the caregiver's eligibility for transition year child 
 77.10  care assistance under section 119B.05; 
 77.11     (9) the caregiver's eligibility for extended medical 
 77.12  assistance when the caregiver loses eligibility for MFIP-S due 
 77.13  to increased earnings or increased child or spousal support; and 
 77.14     (10) the caregiver's option to choose an employment and 
 77.15  training provider and information about each provider, including 
 77.16  but not limited to, services offered, program components, job 
 77.17  placement rates, job placement wages, and job retention rates. 
 77.18     Section 34 is effective January 1, 1998, except the 
 77.19  transitional provision in section 72 applies. 
 77.20     Sec. 35. [256J.46] [SANCTIONS.] 
 77.21     Subdivision 1.  [SANCTIONS FOR REFUSAL TO COOPERATE WITH 
 77.22  SUPPORT REQUIREMENTS.] The grant of an MFIP-S caregiver who 
 77.23  refuses to cooperate, as determined by the child support 
 77.24  enforcement agency, with support requirements under section 
 77.25  256J.30, must be reduced by 25 percent, and the assistance 
 77.26  unit's rent and utilities, if any, shall be vendor paid up to 
 77.27  the amount of the reduced MFIP-S grant.  The residual amount of 
 77.28  the grant, if any, must be paid to the caregiver.  A sanction 
 77.29  under this subdivision becomes effective ten days after the 
 77.30  required notice is given.  The sanction must be in effect for a 
 77.31  minimum of one month, and shall be removed only when the 
 77.32  caregiver cooperates with the support requirements.  For 
 77.33  purposes of this subdivision, each month that a participant 
 77.34  fails to comply with a requirement of section 256J.30 shall be 
 77.35  considered a separate occurrence of noncompliance.  A 
 77.36  participant who has had one or more sanctions imposed must 
 78.1   remain in compliance with the provisions of this chapter for 12 
 78.2   months in order for a subsequent sanction to be considered a 
 78.3   first occurrence.  A sanction under this subdivision is not 
 78.4   subject to the notice and supervisory review requirements of 
 78.5   section 256J.57, subdivision 2.  
 78.6      Subd. 1a.  [TRANSITIONAL RULE; SANCTIONS FOR AFDC, FAMILY 
 78.7   GA, STRIDE, ACCESS, MFIP, OR MFIP-R RECIPIENTS.] For purposes of 
 78.8   determining a sanction under subdivision 2, a recipient of 
 78.9   assistance under AFDC, family general assistance, STRIDE, 
 78.10  ACCESS, MFIP, or MFIP-R, who was under a sanction in the month 
 78.11  immediately preceding the receipt of assistance under MFIP-S 
 78.12  shall be considered as having one occurrence of failure to 
 78.13  comply.  A recipient of assistance under AFDC, family general 
 78.14  assistance, STRIDE, ACCESS, MFIP, or MFIP-R, who was under a 
 78.15  sanction in each of the two months immediately preceding the 
 78.16  receipt of assistance under MFIP-S shall be considered as having 
 78.17  two occurrences of failure to comply.  The provisions of section 
 78.18  256J.57 do not apply to sanctions imposed under AFDC, family 
 78.19  general assistance, project STRIDE, ACCESS, MFIP, or MFIP-R. 
 78.20     Subd. 2.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING WITH 
 78.21  PROGRAM REQUIREMENTS.] (a) A participant who fails without good 
 78.22  cause to comply with the requirements of this chapter other than 
 78.23  section 256J.30 shall be subject to a sanction consisting of 
 78.24  reduced MFIP-S assistance as provided in this subdivision.  A 
 78.25  sanction under this subdivision becomes effective ten days after 
 78.26  the required notice is given.  For purposes of this subdivision, 
 78.27  each month that a participant fails to comply with a requirement 
 78.28  of this chapter shall be considered a separate occurrence of 
 78.29  noncompliance.  A participant who has had one or more sanctions 
 78.30  imposed must remain in compliance with the provisions of this 
 78.31  chapter for 12 months in order for a subsequent sanction to be 
 78.32  considered a first occurrence.  
 78.33     (b) Sanctions for noncompliance shall be imposed as 
 78.34  follows, provided the participant is not subject to sanction 
 78.35  under subdivision 1: 
 78.36     (1) For the first occurrence of failure to comply, a 
 79.1   participant's rent and utilities, if any, shall be vendor paid 
 79.2   up to the amount of the MFIP-S grant for which the participant's 
 79.3   assistance unit is eligible.  The residual amount of the grant 
 79.4   after vendor payment, if any, must be reduced by an amount equal 
 79.5   to 25 percent of the applicable transitional standard before it 
 79.6   is paid to the participant.  If the assistance unit is a 
 79.7   two-parent family and both parents are in noncompliance under 
 79.8   this subdivision, the residual amount of the grant, if any, must 
 79.9   be reduced by an additional five percent of the applicable 
 79.10  transitional standard before it is paid to the participant.  The 
 79.11  sanction must be in effect for a minimum of one month, and shall 
 79.12  be removed only when the participant is in compliance.  If the 
 79.13  participant is not paying rent and utilities, the county may opt 
 79.14  to vendor pay other expenses for basic needs, after applying the 
 79.15  required 25 percent reduction. 
 79.16     (2) For a second or subsequent occurrence, the 
 79.17  participant's rent and utilities, if any, shall be vendor paid 
 79.18  up to the amount of the MFIP-S grant for which the participant's 
 79.19  assistance unit is eligible.  The residual amount of the grant 
 79.20  after vendor payment, if any, must be reduced by an amount equal 
 79.21  to 35 percent of the applicable transitional standard before the 
 79.22  residual is paid to the participant.  If the assistance unit is 
 79.23  a two-parent family and both parents are in noncompliance under 
 79.24  this subdivision, the residual amount of the grant, if any, must 
 79.25  be reduced by an additional five percent of the applicable 
 79.26  transitional standard before it is paid to the participant.  The 
 79.27  sanction must be in effect for a minimum of one month, and shall 
 79.28  be removed only when the participant is in compliance.  If the 
 79.29  participant is not paying rent and utilities, the county may opt 
 79.30  to vendor pay other expenses for basic needs, after applying the 
 79.31  required 35 percent reduction. 
 79.32     Subd. 2a.  [DUAL SANCTIONS.] Notwithstanding the provisions 
 79.33  of subdivision 2, for a participant subject to the following 
 79.34  sanctions concurrently: 
 79.35     (1) a sanction for refusal to cooperate with child support 
 79.36  requirements under subdivision 1; and 
 80.1      (2) a sanction for refusal to cooperate with other program 
 80.2   requirements, sanctions shall be imposed in the order and in the 
 80.3   manner prescribed in this subdivision, the participant's grant 
 80.4   must be reduced by 25 percent, and the assistance unit's rent 
 80.5   and utilities shall be vendor paid up to the amount of the 
 80.6   reduced grant, as provided in subdivision 1.  The residual 
 80.7   amount of the grant after vendor payment, if any, must be 
 80.8   reduced by ten percent of the applicable transitional standard 
 80.9   before it is paid to the participant.  If the assistance unit is 
 80.10  a two-parent family and both parents are in noncompliance under 
 80.11  this subdivision, the residual amount of the grant, if any, must 
 80.12  be reduced by an additional five percent of the applicable 
 80.13  transitional standard before it is paid to the participant.  The 
 80.14  sanction must be in effect for a minimum of one month, and shall 
 80.15  be removed only when the participant is in compliance. 
 80.16     Subd. 3.  [EXCEPTIONS DUE TO LACK OF DAY CARE.] 
 80.17  Notwithstanding subdivision 2, the county agency may not reduce 
 80.18  or terminate MFIP-S assistance based on a refusal of a 
 80.19  participant to comply with the requirements of the employment 
 80.20  and training component of MFIP-S if the participant is a single 
 80.21  custodial parent caring for a child who has not attained six 
 80.22  years of age, and the participant has a demonstrated inability, 
 80.23  as determined by the county agency, to obtain needed child care, 
 80.24  for one or more of the following reasons: 
 80.25     (1) unavailability of appropriate child care within a 
 80.26  reasonable distance from the participant's home or work site; 
 80.27     (2) unavailability or unsuitability of informal child care 
 80.28  by a relative or under other arrangements; or 
 80.29     (3) unavailability of appropriate and affordable formal 
 80.30  child care arrangements. 
 80.31     Sec. 36.  [256J.47] [DIVERSIONARY ASSISTANCE PROGRAM.] 
 80.32     Subdivision 1.  [ELIGIBILITY.] A family is eligible to 
 80.33  receive diversionary assistance once every 36 months if: 
 80.34     (1) a family member has resided in this state for at least 
 80.35  30 days; 
 80.36     (2) the caregiver provides verification that the caregiver 
 81.1   has either experienced an unexpected occurrence that makes it 
 81.2   impossible to retain or obtain employment or the caregiver has a 
 81.3   temporary loss of income, which is not due to refusing to accept 
 81.4   or terminating suitable employment as defined in section 
 81.5   256J.49, without good cause, resulting in an emergency; 
 81.6      (3) the caregiver is at risk of MFIP-S eligibility if 
 81.7   diversionary assistance is not provided and household income is 
 81.8   below 140 percent of the federal poverty guidelines; and 
 81.9      (4) the diversionary assistance will resolve the emergency 
 81.10  and divert the family from applying for MFIP-S. 
 81.11     For purposes of this section, diversionary assistance means 
 81.12  a one-time lump-sum payment to an individual or third-party 
 81.13  vendor to prevent long-term receipt of public assistance. 
 81.14     Subd. 2.  [COUNTY AGENCY DUTIES.] County agencies shall: 
 81.15     (1) thoroughly explain to the caregiver the consequences of 
 81.16  receiving diversionary assistance, specifically the resulting 
 81.17  period of ineligibility under subdivision 4 for other assistance 
 81.18  programs; 
 81.19     (2) determine eligibility for diversionary assistance 
 81.20  within five working days of the receipt of the verification 
 81.21  required under subdivision 1; and 
 81.22     (3) verify all information as necessary. 
 81.23     Subd. 3.  [MAXIMUM AMOUNT OF ASSISTANCE.] The maximum 
 81.24  amount of diversionary assistance that may be provided to a 
 81.25  family is equal to the amount of the MFIP-S standard for the 
 81.26  same family size and composition for four months.  The 
 81.27  assistance provided under this program must be based on the 
 81.28  immediate needs of the family.  Counties must strive to provide 
 81.29  the most cost-effective solution to the one-time emergency.  
 81.30  Diversionary assistance is not cost effective if the family's 
 81.31  anticipated income added to the diversion payment will not be 
 81.32  sufficient to cover the family's immediate needs for the period 
 81.33  of ineligibility under subdivision 4, beginning with the month 
 81.34  of application, or another emergency can reasonably be 
 81.35  anticipated within the period of ineligibility. 
 81.36     Subd. 4.  [INELIGIBILITY FOR MFIP-S; EMERGENCY ASSISTANCE; 
 82.1   AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of diversionary 
 82.2   assistance, the family is ineligible for MFIP-S, emergency 
 82.3   assistance, and emergency general assistance for a period of 
 82.4   time.  To determine the period of ineligibility, the county 
 82.5   shall use the following formula:  regardless of household 
 82.6   changes, the county agency must calculate the number of days of 
 82.7   ineligibility by dividing the diversionary assistance issued by 
 82.8   the maximum monthly amount a family of the same size and 
 82.9   composition would have received under MFIP-S, multiplied by 30, 
 82.10  truncating the result.  The ineligibility period begins the date 
 82.11  the diversionary assistance is issued. 
 82.12     Subd. 5.  [DIVERSIONARY ASSISTANCE GRANT; FUNDING] The 
 82.13  commissioner shall distribute diversionary assistance grants to 
 82.14  counties.  The commissioner may use federal block grant funding 
 82.15  or state funding for the grants. 
 82.16     Section 36 is effective January 1, 1998, except the 
 82.17  transitional provision in section 72 applies. 
 82.18     Sec. 37.  [256J.48] [EMERGENCY ASSISTANCE (EA).] 
 82.19     Subdivision 1.  [EMERGENCY FINANCIAL ASSISTANCE.] County 
 82.20  human service agencies shall grant emergency financial 
 82.21  assistance to any needy pregnant woman or needy family with a 
 82.22  child under the age of 21 who is or was within six months prior 
 82.23  to application living with an eligible caregiver relative 
 82.24  specified in section 256J.08. 
 82.25     Except for ongoing special diets, emergency assistance is 
 82.26  available to a family during one 30-day period in a consecutive 
 82.27  12-month period.  A county shall issue assistance for needs that 
 82.28  accrue before that 30-day period only when it is necessary to 
 82.29  resolve emergencies arising or continuing during the 30-day 
 82.30  period of eligibility.  When emergency needs continue, a county 
 82.31  may issue assistance for up to 30 days beyond the initial 30-day 
 82.32  period of eligibility, but only when assistance is authorized 
 82.33  during the initial period. 
 82.34     Subd. 2.  [ELIGIBILITY.] Notwithstanding other eligibility 
 82.35  provisions of this chapter, any family without resources 
 82.36  immediately available to meet emergency needs identified in 
 83.1   subdivision 3 shall be eligible for an emergency grant under the 
 83.2   following conditions: 
 83.3      (1) a family member has resided in this state for at least 
 83.4   30 days; 
 83.5      (2) the family is without resources immediately available 
 83.6   to meet emergency needs; 
 83.7      (3) assistance is necessary to avoid destitution or provide 
 83.8   emergency shelter arrangements; and 
 83.9      (4) the family's destitution or need for shelter or 
 83.10  utilities did not arise because the child or relative caregiver 
 83.11  refused without good cause to accept employment or training for 
 83.12  employment in another state. 
 83.13     Subd. 3.  [EMERGENCY NEEDS.] Emergency needs are limited to 
 83.14  the following: 
 83.15     (a) [RENT.] A county agency may deny assistance to prevent 
 83.16  eviction from rented or leased shelter of an otherwise eligible 
 83.17  applicant when the county agency determines that an applicant's 
 83.18  anticipated income will not cover continued payment for shelter, 
 83.19  subject to conditions in clauses (1) to (3): 
 83.20     (1) a county agency must not deny assistance when an 
 83.21  applicant can document that the applicant is unable to locate 
 83.22  habitable shelter, unless the county agency can document that 
 83.23  one or more habitable shelters are available in the community 
 83.24  that will result in at least a 20 percent reduction in monthly 
 83.25  expense for shelter and that this shelter will be cost-effective 
 83.26  for the applicant; 
 83.27     (2) when no alternative shelter can be identified by either 
 83.28  the applicant or the county agency, the county agency shall not 
 83.29  deny assistance because anticipated income will not cover rental 
 83.30  obligation; and 
 83.31     (3) when cost-effective alternative shelter is identified, 
 83.32  the county agency shall issue assistance for moving expenses as 
 83.33  provided in paragraph (d). 
 83.34     (b) [DEFINITIONS.] For purposes of paragraph (a), the 
 83.35  following definitions apply (1) "metropolitan statistical area" 
 83.36  is as defined by the U.S. Census Bureau; (2) "alternative 
 84.1   shelter" includes any shelter that is located within the 
 84.2   metropolitan statistical area containing the county and for 
 84.3   which the applicant is eligible, provided the applicant does not 
 84.4   have to travel more than 20 miles to reach the shelter and has 
 84.5   access to transportation to the shelter.  Clause (2) does not 
 84.6   apply to counties in the Minneapolis-St. Paul metropolitan 
 84.7   statistical area. 
 84.8      (c) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 
 84.9   agency shall issue assistance for mortgage or contract for deed 
 84.10  arrearages on behalf of an otherwise eligible applicant 
 84.11  according to clauses (1) to (4): 
 84.12     (1) assistance for arrearages must be issued only when a 
 84.13  home is owned, occupied, and maintained by the applicant; 
 84.14     (2) assistance for arrearages must be issued only when no 
 84.15  subsequent foreclosure action is expected within the 12 months 
 84.16  following the issuance; 
 84.17     (3) assistance for arrearages must be issued only when an 
 84.18  applicant has been refused refinancing through a bank or other 
 84.19  lending institution and the amount payable, when combined with 
 84.20  any payments made by the applicant, will be accepted by the 
 84.21  creditor as full payment of the arrearage; 
 84.22     (4) costs paid by a family which are counted toward the 
 84.23  payment requirements in this clause are:  principle and interest 
 84.24  payments on mortgages or contracts for deed, balloon payments, 
 84.25  homeowner's insurance payments, manufactured home lot rental 
 84.26  payments, and tax or special assessment payments related to the 
 84.27  homestead.  Costs which are not counted include closing costs 
 84.28  related to the sale or purchase of real property. 
 84.29     To be eligible for assistance for costs specified in clause 
 84.30  (4) which are outstanding at the time of foreclosure, an 
 84.31  applicant must have paid at least 40 percent of the family's 
 84.32  gross income toward these costs in the month of application and 
 84.33  the 11-month period immediately preceding the month of 
 84.34  application. 
 84.35     When an applicant is eligible under clause (4), a county 
 84.36  agency shall issue assistance up to a maximum of four times the 
 85.1   MFIP-S transitional standard for a comparable assistance unit. 
 85.2      (d) [DAMAGE OR UTILITY DEPOSITS.] A county agency shall 
 85.3   issue assistance for damage or utility deposits when necessary 
 85.4   to alleviate the emergency.  The county may require that 
 85.5   assistance paid in the form of a damage deposit or a utility 
 85.6   deposit, less any amount retained by the landlord to remedy a 
 85.7   tenant's default in payment of rent or other funds due to the 
 85.8   landlord under a rental agreement, or to restore the premises to 
 85.9   the condition at the commencement of the tenancy, ordinary wear 
 85.10  and tear excepted, be returned to the county when the individual 
 85.11  vacates the premises or be paid to the recipient's new landlord 
 85.12  as a vendor payment.  The vendor payment of returned funds shall 
 85.13  not be considered a new use of emergency assistance. 
 85.14     (e) [MOVING EXPENSES.] A county agency shall issue 
 85.15  assistance for expenses incurred when a family must move to a 
 85.16  different shelter according to clauses (1) to (4): 
 85.17     (1) moving expenses include the cost to transport personal 
 85.18  property belonging to a family, the cost for utility connection, 
 85.19  and the cost for securing different shelter; 
 85.20     (2) moving expenses must be paid only when the county 
 85.21  agency determines that a move is cost-effective; 
 85.22     (3) moving expenses must be paid at the request of an 
 85.23  applicant, but only when destitution or threatened destitution 
 85.24  exists; and 
 85.25     (4) moving expenses must be paid when a county agency 
 85.26  denies assistance to prevent an eviction because the county 
 85.27  agency has determined that an applicant's anticipated income 
 85.28  will not cover continued shelter obligation in paragraph (a). 
 85.29     (f) [HOME REPAIRS.] A county agency shall pay for repairs 
 85.30  to the roof, foundation, wiring, heating system, chimney, and 
 85.31  water and sewer system of a home that is owned and lived in by 
 85.32  an applicant. 
 85.33     The applicant shall document, and the county agency shall 
 85.34  verify the need for and method of repair. 
 85.35     The payment must be cost-effective in relation to the 
 85.36  overall condition of the home and in relation to the cost and 
 86.1   availability of alternative housing. 
 86.2      (g) [UTILITY COSTS.] Assistance for utility costs must be 
 86.3   made when an otherwise eligible family has had a termination or 
 86.4   is threatened with a termination of municipal water and sewer 
 86.5   service, electric, gas or heating fuel service, or lacks wood 
 86.6   when that is the heating source, subject to the conditions in 
 86.7   clauses (1) and (2): 
 86.8      (1) a county agency must not issue assistance unless the 
 86.9   county agency receives confirmation from the utility provider 
 86.10  that assistance combined with payment by the applicant will 
 86.11  continue or restore the utility; and 
 86.12     (2) a county agency shall not issue assistance for utility 
 86.13  costs unless a family paid at least eight percent of the 
 86.14  family's gross income toward utility costs due during the 
 86.15  preceding 12 months. 
 86.16     Clauses (1) and (2) must not be construed to prevent the 
 86.17  issuance of assistance when a county agency must take immediate 
 86.18  and temporary action necessary to protect the life or health of 
 86.19  a child. 
 86.20     (h) [SPECIAL DIETS.] A county shall pay for special diets 
 86.21  or dietary items.  The need for special diets or dietary items 
 86.22  must be prescribed by a licensed physician.  Costs for special 
 86.23  diets shall be determined as percentages of the allotment for a 
 86.24  one-person household under the Thrifty Food Plan as defined by 
 86.25  the United States Department of Agriculture.  The types of diets 
 86.26  and the percentages of the Thrifty Food Plan that are covered 
 86.27  are as follows: 
 86.28     (1) high protein diet, at least 80 grams daily, 25 percent 
 86.29  of Thrifty Food Plan; 
 86.30     (2) controlled protein diet, 40 to 60 grams and requires 
 86.31  special products, 100 percent of Thrifty Food Plan; 
 86.32     (3) controlled protein diet, less than 40 grams and 
 86.33  requires special products, 125 percent of Thrifty Food Plan; 
 86.34     (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 
 86.35     (5) high residue diet, 20 percent of Thrifty Food Plan; 
 86.36     (6) pregnancy and lactation diet, 35 percent of Thrifty 
 87.1   Food Plan; 
 87.2      (7) gluten-free diet, 25 percent of Thrifty Food Plan; 
 87.3      (8) lactose-free diet, 25 percent of Thrifty Food Plan; 
 87.4      (9) antidumping diet, 15 percent of Thrifty Food Plan; 
 87.5      (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 
 87.6      (11) ketogenic diet, 25 percent of Thrifty Food Plan. 
 87.7      Subd. 4.  [VENDOR PAYMENTS FOR SHELTER OR UTILITY 
 87.8   COSTS.] If an MFIP-S participant applies for and receives 
 87.9   emergency assistance for shelter and utility costs under 
 87.10  subdivision 3, paragraph (a), (b), (c), or (f), the ongoing 
 87.11  MFIP-S assistance payment shall be in the form of vendor 
 87.12  payments. 
 87.13     Section 37 is effective January 1, 1998, except the 
 87.14  transitional provision in section 72 applies. 
 87.15     Sec. 38.  [256J.49] [EMPLOYMENT AND TRAINING SERVICES; 
 87.16  DEFINITIONS.] 
 87.17     Subdivision 1.  [SCOPE.] The terms used in sections 256J.50 
 87.18  to 256J.72 have the meanings given them in this section. 
 87.19     Subd. 2.  [DOMESTIC VIOLENCE.] "Domestic violence" means: 
 87.20     (1) physical acts that result, or threaten to result in, 
 87.21  physical injury to an individual; 
 87.22     (2) sexual abuse; 
 87.23     (3) sexual activity involving a minor child; 
 87.24     (4) being forced as the caregiver of a minor child to 
 87.25  engage in nonconsensual sexual acts or activities; 
 87.26     (5) threats of, or attempts at, physical or sexual abuse; 
 87.27     (6) mental abuse; or 
 87.28     (7) neglect or deprivation of medical care. 
 87.29     Subd. 3.  [EMPLOYMENT AND TRAINING SERVICES.] "Employment 
 87.30  and training services" means programs, activities and services 
 87.31  that are designed to assist participants in obtaining and 
 87.32  retaining employment. 
 87.33     Subd. 4.  [EMPLOYMENT AND TRAINING SERVICE 
 87.34  PROVIDER.] "Employment and training service provider" means: 
 87.35     (1) a public, private, or nonprofit employment and training 
 87.36  agency certified by the commissioner of economic security under 
 88.1   sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 
 88.2   is approved under section 256J.51 and is included in the county 
 88.3   plan submitted under section 256J.50, subdivision 6; 
 88.4      (2) a public, private, or nonprofit agency that is not 
 88.5   certified by the commissioner under clause (1), but with which a 
 88.6   county has contracted to provide employment and training 
 88.7   services; or 
 88.8      (3) a county agency, if the county has opted to provide 
 88.9   employment and training services.  
 88.10     Notwithstanding section 268.871, an employment and training 
 88.11  services provider meeting this definition may deliver employment 
 88.12  and training services under this chapter. 
 88.13     Subd. 5.  [EMPLOYMENT PLAN.] "Employment plan" means a plan 
 88.14  developed by the job counselor and the participant which 
 88.15  identifies the participant's most direct path to unsubsidized 
 88.16  employment, lists the specific steps that the participant will 
 88.17  take on that path, and includes a timetable for the completion 
 88.18  of each step. 
 88.19     Subd. 6.  [FEDERAL PARTICIPATION STANDARDS.] "Federal 
 88.20  participation standards" means the work participation standards 
 88.21  as specified in title I of Public Law Number 104-193, the 
 88.22  Personal Responsibility and Work Opportunity Reconciliation Act 
 88.23  of 1996. 
 88.24     Subd. 7.  [INTENSIVE ENGLISH AS A SECOND LANGUAGE 
 88.25  PROGRAM.] "Intensive English as a second language program" means 
 88.26  an English as a second language program that offers at least 20 
 88.27  hours of class per week. 
 88.28     Subd. 8.  [JOB COUNSELOR.] "Job counselor" means a staff 
 88.29  person employed by the employment and training services provider 
 88.30  who delivers services as specified in sections 256J.50 to 
 88.31  256J.55. 
 88.32     Subd. 9.  [PARTICIPANT.] "Participant" means a recipient of 
 88.33  MFIP-S assistance who participates or is required to participate 
 88.34  in employment and training services. 
 88.35     Subd. 10.  [PROVIDER.] "Provider" means an employment and 
 88.36  training service provider. 
 89.1      Subd. 11.  [SAFETY PLAN.] "Safety plan" means a plan 
 89.2   developed by a victim of domestic violence with the assistance 
 89.3   of a public agency or a private nonprofit agency, including 
 89.4   agencies that receive designation by the department of 
 89.5   corrections to provide emergency shelter services or support 
 89.6   services under section 611A.32.  A safety plan shall not include 
 89.7   a provision that automatically requires a domestic violence 
 89.8   victim to seek an order of protection, or to attend counseling, 
 89.9   as part of the safety plan. 
 89.10     Subd. 12.  [SUITABLE EMPLOYMENT.] "Suitable employment" 
 89.11  means employment that: 
 89.12     (1) is within the participant's physical and mental 
 89.13  abilities; 
 89.14     (2) pays hourly gross wages of not less than the applicable 
 89.15  state or federal minimum wage; and 
 89.16     (3) meets health and safety standards set by federal, state 
 89.17  and county agencies. 
 89.18     Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
 89.19  activity in a participant's approved employment plan that is 
 89.20  tied to the participant's employment goal .  For purposes of the 
 89.21  MFIP-S program, any activity that is included in a participant's 
 89.22  approved employment plan meets the definition of work activity 
 89.23  as counted under the federal participation standards.  Work 
 89.24  activity includes, but is not limited to: 
 89.25     (1) unsubsidized employment; 
 89.26     (2) subsidized private sector or public sector employment, 
 89.27  including grant diversion as specified in section 256J.69; 
 89.28     (3) work experience, including CWEP as specified in section 
 89.29  256J.67, and including work associated with the refurbishing of 
 89.30  publicly assisted housing if sufficient private sector 
 89.31  employment is not available; 
 89.32     (4) on-the-job training as specified in section 256J.66; 
 89.33     (5) job search, either supervised or unsupervised; 
 89.34     (6) job readiness assistance; 
 89.35     (7) job clubs, including job search workshops; 
 89.36     (8) job placement; 
 90.1      (9) job development; 
 90.2      (10) job-related counseling; 
 90.3      (11) job coaching; 
 90.4      (12) job retention services; 
 90.5      (13) job-specific training or education ; 
 90.6      (14) job skills training directly related to employment; 
 90.7      (15) the self-employment investment demonstration (SEID), 
 90.8   as specified in section 256J.65; 
 90.9      (16) preemployment activities, based on availability and 
 90.10  resources, such as volunteer work, literacy programs and related 
 90.11  activities, citizenship and English as a second language 
 90.12  classes, or participation in dislocated worker services, 
 90.13  chemical dependency treatment, mental health services, peer 
 90.14  group networks, displaced homemaker programs, parenting 
 90.15  education, or other programs designed to help families reach 
 90.16  their employment goals and enhance their ability to care for 
 90.17  their children; 
 90.18     (17) community service programs; 
 90.19     (18) vocational educational training or educational 
 90.20  programs that can reasonably be expected to lead to employment, 
 90.21  as limited by the provisions of section 256J.53; 
 90.22     (19) apprenticeships; 
 90.23     (20) satisfactory attendance in general educational 
 90.24  development diploma classes or an adult diploma program; 
 90.25     (21) satisfactory attendance at secondary school, if the 
 90.26  participant has not received a high school diploma; 
 90.27     (22) adult basic education classes; 
 90.28     (23) internships; 
 90.29     (24) bilingual employment and training services; 
 90.30     (25) providing child care services to a participant who is 
 90.31  working in a community service program; and 
 90.32     (26) activities included in a safety plan that is developed 
 90.33  under section 256J.52, subdivision 6. 
 90.34     Section 38 is effective January 1, 1998, except the 
 90.35  transitional provision in section 72 applies. 
 90.36     Sec. 39.  [256J.50] [COUNTY DUTIES.] 
 91.1      Subdivision 1.  [EMPLOYMENT AND TRAINING SERVICES COMPONENT 
 91.2   OF MFIP-S.] (a) By January 1, 1998, each county must develop and 
 91.3   implement an employment and training services component of 
 91.4   MFIP-S which is designed to put participants on the most direct 
 91.5   path to unsubsidized employment.  Participation in these 
 91.6   services is mandatory for all MFIP-S caregivers, unless the 
 91.7   caregiver is exempt under section 256J.56, and is required 
 91.8   concurrent with the receipt of MFIP-S cash assistance. 
 91.9      (b) A county may provide employment and training services 
 91.10  to MFIP-S caregivers who are exempt from the employment and 
 91.11  training services component but volunteer for the services. 
 91.12     Subd. 2.  [PILOT PROGRAMS.] In counties selected for the 
 91.13  work first or work focused pilot programs, first-time applicants 
 91.14  for assistance must meet the requirements of those programs in 
 91.15  place of the requirements of the MFIP-S program.  A county may, 
 91.16  at its option, discontinue a work first or work focused pilot 
 91.17  program. 
 91.18     Subd. 3.  [TRANSITIONAL RULE; MFIP OR MFIP-R 
 91.19  PARTICIPANT.] A caregiver who was enrolled in MFIP or MFIP-R 
 91.20  immediately before enrolling in MFIP-S, and who was making 
 91.21  satisfactory progress toward the objectives specified in the 
 91.22  caregiver's employment plan, may, with the approval of a job 
 91.23  counselor, continue with the existing employment plan for up to 
 91.24  one year after the caregiver is enrolled in MFIP-S.  The job 
 91.25  counselor may require changes to the plan in order to be 
 91.26  consistent with the time limit. 
 91.27     Subd. 3a.  [TRANSITIONAL RULE; STRIDE, ACCESS.] (a) A 
 91.28  county agency that is not a participant in the MFIP or MFIP-R 
 91.29  field trials under sections 256.031 to 256.0361 shall not enroll 
 91.30  a recipient into project STRIDE or ACCESS after the date that 
 91.31  MFIP-S is implemented in the county.  
 91.32     (b) A caregiver who: 
 91.33     (i) was enrolled in project STRIDE or ACCESS continuously 
 91.34  since March 1, 1997; 
 91.35     (ii) is not a part of an MFIP or MFIP-R comparison group; 
 91.36  and 
 92.1      (iii) who is making satisfactory progress toward the 
 92.2   objectives specified in the caregiver's employment plan, may, 
 92.3   with the approval of the job counselor, continue with the 
 92.4   existing employment plan for up to two years after the caregiver 
 92.5   is enrolled in MFIP-S.  For purposes of the federal 
 92.6   participation standards, the activities in the caregiver's 
 92.7   employment plan are work activities, as that term is defined in 
 92.8   section 256J.49, subdivision 13. 
 92.9      (c) Notwithstanding contrary provisions of section 256.736, 
 92.10  the employability plan of a caregiver who is enrolled in project 
 92.11  STRIDE or ACCESS on or after July 1, 1997, must meet the 
 92.12  requirements of sections 256J.52, subdivisions 4 and 5, and 
 92.13  256J.53, or section 256J.54, if applicable. 
 92.14     Subd. 4.  [SERVICE-PROVIDING AGENCIES.] Counties may select 
 92.15  one or more employment and training service providers, or may 
 92.16  opt to provide services on their own. 
 92.17     Subd. 5.  [COUNTY OPTION FOR EARLY IMPLEMENTATION.] A 
 92.18  county may opt to implement its employment and training services 
 92.19  component of MFIP-S before January 1, 1998.  A county that does 
 92.20  so is eligible for a bonus payment as specified under this 
 92.21  subdivision.  For each participant that is engaged, prior to 
 92.22  January 1, in job search under section 256J.52, subdivision 3, 
 92.23  in activities that are part of an employment plan under section 
 92.24  256J.52, subdivision 5, or in activities that are part of a 
 92.25  safety plan under section 256J.52, subdivision 6, the county is 
 92.26  eligible for a bonus payment of $100.  The commissioner must add 
 92.27  any bonus payments earned under this subdivision to the county's 
 92.28  employment and training services allocation for fiscal year 
 92.29  1998.  Bonus payments must not supplant, and must be in addition 
 92.30  to, a county's allocation under section 256J.62. 
 92.31     Subd. 6.  [COUNTY PLAN.] Each county agency shall prepare 
 92.32  and submit a plan as specified in section 268.88. 
 92.33     Subd. 7.  [COUNTY DUTY TO ENSURE EMPLOYMENT AND TRAINING 
 92.34  CHOICES FOR PARTICIPANTS.] Each county, or group of counties 
 92.35  working cooperatively, shall make available to participants the 
 92.36  choice of at least two employment and training service providers 
 93.1   as defined under section 256J.49, subdivision 4, except in 
 93.2   counties utilizing workforce centers that use multiple 
 93.3   employment providers, offer multiple services options under a 
 93.4   collaborative effort and can document that participants have 
 93.5   choice among employment and training services designed to meet 
 93.6   specialized needs. 
 93.7      Subd. 8.  [EXCEPTION; FINANCIAL HARDSHIP.] Notwithstanding 
 93.8   subdivision 7, a county that demonstrates in the plan required 
 93.9   under subdivision 6 that the provision of alternative employment 
 93.10  and training service providers would result in financial 
 93.11  hardship for the county is not required to make available more 
 93.12  than one employment and training provider. 
 93.13     Section 39 is effective January 1, 1998, except the 
 93.14  transitional provision in section 72 applies. 
 93.15     Sec. 40.  [256J.51] [EMPLOYMENT AND TRAINING SERVICE 
 93.16  PROVIDER; ALTERNATE APPROVAL PROCESS.] 
 93.17     Subdivision 1.  [PROVIDER APPLICATION.] An employment and 
 93.18  training service provider that is not included in a county's 
 93.19  plan under section 256J.50, subdivision 6, because the county 
 93.20  has demonstrated financial hardship under subdivision 7 of that 
 93.21  section, may appeal its exclusion to the commissioner of 
 93.22  economic security under this section. 
 93.23     Subd. 2.  [APPEAL; ALTERNATE APPROVAL.] (a) An employment 
 93.24  and training service provider that is not included by a county 
 93.25  agency in the plan under section 256J.50, subdivision 6, and 
 93.26  that meets the criteria in paragraph (b), may appeal its 
 93.27  exclusion to the commissioner of economic security, and may 
 93.28  request alternative approval by the commissioner of economic 
 93.29  security to provide services in the county.  
 93.30     (b) An employment and training services provider that is 
 93.31  requesting alternative approval must demonstrate to the 
 93.32  commissioner that the provider meets the standards specified in 
 93.33  section 268.871, subdivision 1, paragraph (b), except that the 
 93.34  provider's past experience may be in services and programs 
 93.35  similar to those specified in section 268.871, subdivision 1, 
 93.36  paragraph (b). 
 94.1      Subd. 3.  [COMMISSIONER'S REVIEW.] The commissioner must 
 94.2   act on a request for alternative approval under this section 
 94.3   within 30 days of the receipt of the request.  If after 
 94.4   reviewing the provider's request, and the county's plan 
 94.5   submitted under section 256J.50, subdivision 6, the commissioner 
 94.6   determines that the provider meets the criteria under 
 94.7   subdivision 2, paragraph (b), and that approval of the provider 
 94.8   would not cause financial hardship to the county, the county 
 94.9   must submit a revised plan under subdivision 4 that includes the 
 94.10  approved provider. 
 94.11     Subd. 4.  [REVISED PLAN REQUIRED.] The commissioner of 
 94.12  economic security must notify the county agency when the 
 94.13  commissioner grants an alternative approval to an employment and 
 94.14  training service provider under subdivision 2.  Upon receipt of 
 94.15  the notice, the county agency must submit a revised plan under 
 94.16  section 256J.50, subdivision 6, that includes the approved 
 94.17  provider.  The county has 90 days from the receipt of the 
 94.18  commissioner's notice to submit the revised plan. 
 94.19     Subd. 5.  [REVIEW NOT REQUIRED.] Notwithstanding 
 94.20  subdivision 3, once a county meets the requirements of section 
 94.21  256J.50, subdivision 7, the commissioner may, but is not 
 94.22  required to, act on a request by an employment and training 
 94.23  services provider for alternative approval in that county. 
 94.24     Section 40 is effective January 1, 1998, except the 
 94.25  transitional provision in section 72 applies. 
 94.26     Sec. 41.  [256J.515] [OVERVIEW OF EMPLOYMENT AND TRAINING 
 94.27  SERVICES.] 
 94.28     During the first meeting with participants, job counselors 
 94.29  must provide an overview of employment and training services 
 94.30  that stresses the necessity and opportunity of immediate 
 94.31  employment, outlines the job search resources offered, explains 
 94.32  the requirements to comply with an employment plan and the 
 94.33  consequences for failing to comply, and explains the services 
 94.34  that are available to support job search and work. 
 94.35     Section 41 is effective January 1, 1998, except the 
 94.36  transitional provision in section 72 applies. 
 95.1      Sec. 42.  [256J.52] [ASSESSMENTS; PLANS.] 
 95.2      Subdivision 1.  [APPLICATION LIMITED TO CERTAIN 
 95.3   PARTICIPANTS.] This section applies to participants receiving 
 95.4   MFIP-S assistance who are not exempt under section 256J.56, and 
 95.5   to caregivers who volunteer for employment and training services 
 95.6   under section 256J.50. 
 95.7      Subd. 2.  [INITIAL ASSESSMENT.] (a) The job counselor must, 
 95.8   with the cooperation of the participant, assess the 
 95.9   participant's ability to obtain and retain employment.  This 
 95.10  initial assessment must include a review of the participant's 
 95.11  education level, prior employment or work experience, 
 95.12  transferable work skills, and existing job markets.  
 95.13     (b) In assessing the participant, the job counselor must 
 95.14  determine if the participant needs refresher courses for 
 95.15  professional certification or licensure.  If one or more 
 95.16  refresher courses are needed, the job search support plan under 
 95.17  subdivision 3 must include the courses necessary to obtain the 
 95.18  certification or licensure, in addition to other work 
 95.19  activities, provided the combination of the refresher courses 
 95.20  and other work activities are at least for 40 hours per week.  
 95.21  After obtaining the license or certificate, the participant must 
 95.22  comply with the provisions of subdivision 5. 
 95.23     (c) If a participant can demonstrate to the satisfaction of 
 95.24  the county agency that lack of proficiency in English is a 
 95.25  barrier to obtaining suitable employment, the provider may 
 95.26  include participation in an intensive English as a second 
 95.27  language program, in the participant's employment plan under 
 95.28  subdivision 5.  
 95.29     (d) A participant who, at the time of the initial 
 95.30  assessment under this section, is in an education program that 
 95.31  satisfies the criteria in section 256J.53, may, with the 
 95.32  approval of the job counselor, postpone job search.  The 
 95.33  participant must be assessed under subdivision 4, and an 
 95.34  employment plan that includes completion of the education 
 95.35  program must be developed. 
 95.36     Subd. 3.  [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 
 96.1   after the initial assessment, the job counselor determines that 
 96.2   the participant possesses sufficient skills that the participant 
 96.3   is likely to succeed in obtaining suitable employment, the 
 96.4   participant must conduct job search for a period of up to four 
 96.5   weeks, for the number of hours per week required under federal 
 96.6   participation standards or 30 hours per week, whichever is 
 96.7   greater.  The participant must accept any offer of suitable 
 96.8   employment.  The job counselor and participant must develop a 
 96.9   job search support plan which specifies, at a minimum:  whether 
 96.10  the job search is to be supervised or unsupervised; support 
 96.11  services that will be provided while the participant conducts 
 96.12  job search activities; the refresher courses necessary for 
 96.13  professional certification or licensure, if applicable; and how 
 96.14  frequently the participant must report to the job counselor on 
 96.15  the status of the participant's job search activities. 
 96.16     (b) If at the end of four weeks the participant has not 
 96.17  obtained suitable employment, the job counselor must review the 
 96.18  participant's job search support plan and must either direct the 
 96.19  participant to conduct an additional four weeks of job search or 
 96.20  must conduct a secondary assessment of the participant under 
 96.21  subdivision 4.  A participant shall not be required to conduct 
 96.22  more than a total of eight weeks of job search under this 
 96.23  subdivision. 
 96.24     Subd. 4.  [SECONDARY ASSESSMENT.] (a) The job counselor 
 96.25  must conduct a secondary assessment for those participants who: 
 96.26     (1) in the judgment of the job counselor, have barriers to 
 96.27  obtaining and retaining employment that will not be overcome 
 96.28  with a job search support plan under subdivision 3; or 
 96.29     (2) have completed at least four weeks of job search under 
 96.30  subdivision 3 without obtaining suitable employment; or 
 96.31     (3) have not received a secondary assessment, are working 
 96.32  at least 20 hours per week, and the participant, job counselor, 
 96.33  or county agency requests a secondary assessment. 
 96.34     (b) In the secondary assessment the job counselor must 
 96.35  evaluate the participant's skills and prior work experience, 
 96.36  family circumstances, interests and abilities, need for 
 97.1   preemployment activities, supportive or educational services, 
 97.2   and the extent of any barriers to employment.  The job counselor 
 97.3   must use the information gathered through the secondary 
 97.4   assessment to develop an employment plan under subdivision 5. 
 97.5      Subd. 5.  [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 
 97.6   secondary assessment under subdivision 4, the job counselor and 
 97.7   the participant must develop an employment plan for the 
 97.8   participant that includes specific activities that are designed 
 97.9   to move the participant along the most direct path to 
 97.10  unsubsidized employment.  
 97.11     If the participant has an employment goal which can best be 
 97.12  met with additional education or training and is expected to 
 97.13  result in higher wages than the participant could earn without 
 97.14  the additional education or training, the participant, in 
 97.15  consultation with the job counselor, may propose an employment 
 97.16  plan that includes activities approved under the criteria of 
 97.17  section 256J.53. 
 97.18     The employment plan must list the specific steps that will 
 97.19  be taken to obtain employment and a timetable for completion of 
 97.20  each of the steps.  The job counselor and the participant must 
 97.21  sign the developed plan to indicate agreement between the job 
 97.22  counselor and the participant on the contents of the plan.  
 97.23     (b) For a parent in a two-parent family who is required to 
 97.24  participate in the employment and training services component of 
 97.25  MFIP-S, activities that are considered for the participant's 
 97.26  plan must generally be limited to those listed in section 
 97.27  256J.49, subdivision 12, clauses (1) to (17).  Activities listed 
 97.28  in clauses (18) to (26) of that subdivision may be included on 
 97.29  an exception basis. 
 97.30     Subd. 6.  [SAFETY PLAN.] Notwithstanding subdivisions 1 to 
 97.31  5, a participant who is a victim of domestic violence and who 
 97.32  agrees to develop or has developed a safety plan meeting the 
 97.33  definition under section 256J.49, subdivision 11, is deferred 
 97.34  from the requirements of this section and sections 256J.54 and 
 97.35  256J.55 for a period three months from the date the participant 
 97.36  agreed to develop the plan.  A participant deferred under this 
 98.1   subdivision must submit a safety plan status report to the 
 98.2   county agency on a quarterly basis.  Based on a review of the 
 98.3   status report, the county agency may renew the participant's 
 98.4   deferral each quarter, provided the personal safety of the 
 98.5   participant is still at risk and the participant is complying 
 98.6   with the safety plan.  A participant who is deferred under this 
 98.7   subdivision may be deferred for a total of 12 months under a 
 98.8   safety plan, provided the individual is complying with the terms 
 98.9   of the plan. 
 98.10     Subd. 7.  [MINOR PARENTS; ASSESSMENT.] An MFIP-S caregiver 
 98.11  who is under the age of 20 must be assessed and have a plan 
 98.12  developed as provided in section 256J.54. 
 98.13     Subd. 8.  [REVISION OF PLAN.] If the employee has lost or 
 98.14  quit a job with good cause, the job counselor must ascertain the 
 98.15  reason for the job loss and work with the participant to amend 
 98.16  the job search support plan or employment plan, whichever is in 
 98.17  effect, as necessary to address the problem.  If a job search 
 98.18  support plan is in effect, the participant, county agency, or 
 98.19  job counselor may request a secondary assessment at this time. 
 98.20     Subd. 9.  [SELF-EMPLOYMENT; ANNUAL REVIEW.] If the 
 98.21  participant's work activity includes self-employment, after each 
 98.22  twelve month period of self-employment the job counselor must 
 98.23  review the participant's circumstances to determine if the 
 98.24  participant is making adequate progress towards self-sufficiency.
 98.25     If after the review the job counselor determines that the 
 98.26  participant is not making adequate progress towards 
 98.27  self-sufficiency, the job counselor must work with the 
 98.28  participant to amend the participant's employment plan as 
 98.29  necessary to address the problem.  If no employment plan is in 
 98.30  effect, the participant, county agency, or job counselor may 
 98.31  request a secondary assessment at this time. 
 98.32     Section 42 is effective January 1, 1998, except the 
 98.33  transitional provision in section 72 applies. 
 98.34     Sec. 43.  [256J.53] [POST-SECONDARY EDUCATION; LIMITATIONS 
 98.35  ON APPROVAL, JOB SEARCH REQUIREMENT.] 
 98.36     Subdivision 1.  [LENGTH OF PROGRAM.] In order for a 
 99.1   post-secondary education or training program to be approved work 
 99.2   activity as defined in section 256J.49, subdivision 13, clause 
 99.3   (18), it must be a program lasting 12 months or less, and the 
 99.4   participant must meet the requirements of subdivisions 2 and 3.  
 99.5   A program lasting up to 24 months may be approved on an 
 99.6   exception basis if the conditions specified in subdivisions 2 to 
 99.7   4 are met.  A participant may not be approved for more than a 
 99.8   total of 24 months of post-secondary education or training, 
 99.9   including any months of education or training in a STRIDE or 
 99.10  ACCESS plan that is continued under section 256J.50, subdivision 
 99.11  3a. 
 99.12     Subd. 2.  [DOCUMENTATION SUPPORTING PROGRAM.] In order for 
 99.13  a post-secondary education or training program to be an approved 
 99.14  activity in a participant's employment plan, the participant or 
 99.15  the employment and training service provider must provide 
 99.16  documentation that: 
 99.17     (1) the participant's employment plan identifies specific 
 99.18  goals that can only be met with the additional education or 
 99.19  training; 
 99.20     (2) there are suitable employment opportunities that 
 99.21  requires the specific education or training in the area in which 
 99.22  the participant resides or is willing to reside; 
 99.23     (3) the education or training will result in significantly 
 99.24  higher wages for the participant than the participant could earn 
 99.25  without the education or training; 
 99.26     (4) the participant can meet the requirements for admission 
 99.27  into the program; and 
 99.28     (5) there is a reasonable expectation that the participant 
 99.29  will complete the training program based on such factors as the 
 99.30  participant's MFIP-S assessment, previous education, training, 
 99.31  and work history; current motivation; and changes in previous 
 99.32  circumstances. 
 99.33     Subd. 3.  [SATISFACTORY PROGRESS REQUIRED.] In order for a 
 99.34  post-secondary education or training program to be an approved 
 99.35  activity in a participant's employment plan, the participant 
 99.36  must maintain satisfactory progress in the program.  
100.1   "Satisfactory progress" in an education or training program 
100.2   means the participant remains in good standing after completion 
100.3   of the second grading period, and maintains at least a 
100.4   cumulative grade point average of C or its equivalent while the 
100.5   participant is enrolled in the program, as defined by the 
100.6   education or training institution, and the participant meets the 
100.7   requirements of the participant's employment plan. 
100.8      Subd. 4.  [REPAYMENT OF EMPLOYMENT AND TRAINING 
100.9   ASSISTANCE.] In order for a post-secondary education or training 
100.10  program lasting between 13 and 24 months to be an approved 
100.11  activity in a participant's employment plan, the participant 
100.12  must maintain satisfactory progress in the program and must 
100.13  agree to repay the amount of employment and training funds paid 
100.14  by the county to support the individual's participation in each 
100.15  month of an education or training program after the 12th month 
100.16  of the program.  Assistance obtained by the participant through 
100.17  the federal Pell grant program or other federal or state 
100.18  programs of higher education assistance must be excluded from 
100.19  the amount to be repaid by the participant.  The participant and 
100.20  the county agency must develop a mutually acceptable repayment 
100.21  plan.  The repayment plan must not assess any interest charges 
100.22  on the cost of the funds to be repaid.  The loan is considered 
100.23  to be in repayment status when: 
100.24     (1) the participant completes the program and obtains 
100.25  employment that pays annual wages that are at least equal to 150 
100.26  percent of the federal poverty level; or 
100.27     (2) the participant leaves the program before completion of 
100.28  the program and obtains employment that pays annual wages that 
100.29  are at least equal to 150 percent of the federal poverty level. 
100.30     Subd. 5.  [JOB SEARCH AFTER COMPLETION OF POST-SECONDARY 
100.31  EDUCATION OR TRAINING.] Regardless of the length of the program, 
100.32  if a participant's employment plan includes a post-secondary 
100.33  education or training program, the plan must include the 
100.34  anticipated completion date of the program.  At the time the 
100.35  education or training is completed, the participant must 
100.36  participate in job search.  If after three months of job search 
101.1   the participant does not find a job that is consistent with the 
101.2   participant's employment goals, the participant must accept any 
101.3   offer of suitable employment. 
101.4      Section 43 is effective January 1, 1998, except the 
101.5   transitional provision in section 72 applies. 
101.6      Sec. 44.  [256J.54] [MINOR PARENTS; EMPLOYMENT PLAN.] 
101.7      Subdivision 1.  [ASSESSMENT OF EDUCATIONAL PROGRESS AND 
101.8   NEEDS.] The county agency must document the educational level of 
101.9   each MFIP-S caregiver who is under the age of 20 and determine 
101.10  if the caregiver has obtained a high school diploma or its 
101.11  equivalent.  If the caregiver has not obtained a high school 
101.12  diploma or its equivalent, and is not exempt from the 
101.13  requirement to attend school under subdivision 5, the county 
101.14  agency must complete an individual assessment for the 
101.15  caregiver.  The assessment must be performed as soon as possible 
101.16  but within 30 days of determining MFIP-S eligibility for the 
101.17  caregiver.  The assessment must provide an initial examination 
101.18  of the caregiver's educational progress and needs, literacy 
101.19  level, child care and supportive service needs, family 
101.20  circumstances, skills, and work experience.  In the case of a 
101.21  caregiver under the age of 18, the assessment must also consider 
101.22  the results of either the caregiver's or the caregiver's minor 
101.23  child's child and teen checkup under Minnesota Rules, parts 
101.24  9505.0275 and 9505.1693 to 9505.1748, if available, and the 
101.25  effect of a child's development and educational needs on the 
101.26  caregiver's ability to participate in the program.  The county 
101.27  agency must advise the caregiver that the caregiver's first goal 
101.28  must be to complete an appropriate educational option if one is 
101.29  identified for the caregiver through the assessment and, in 
101.30  consultation with educational agencies, must review the various 
101.31  school completion options with the caregiver and assist in 
101.32  selecting the most appropriate option.  
101.33     Subd. 2.  [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 
101.34  PLAN.] For caregivers who are under age 18, the assessment under 
101.35  subdivision 1 and the employment plan under subdivision 3 must 
101.36  be completed by the social services agency under section 
102.1   257.33.  For caregivers who are age 18 or 19, the assessment 
102.2   under subdivision 1 and the employment plan under subdivision 3 
102.3   must be completed by the job counselor.  The social services 
102.4   agency or the job counselor shall consult with representatives 
102.5   of educational agencies that are required to assist in 
102.6   developing educational plans under section 126.235. 
102.7      Subd. 3.  [EDUCATIONAL OPTION DEVELOPED.] If the job 
102.8   counselor or county social services agency identifies an 
102.9   appropriate educational option, it must develop an employment 
102.10  plan which reflects the identified option.  The plan must 
102.11  specify that participation in an educational activity is 
102.12  required, what school or educational program is most 
102.13  appropriate, the services that will be provided, the activities 
102.14  the caregiver will take part in, including child care and 
102.15  supportive services, the consequences to the caregiver for 
102.16  failing to participate or comply with the specified 
102.17  requirements, and the right to appeal any adverse action.  The 
102.18  employment plan must, to the extent possible, reflect the 
102.19  preferences of the caregiver. 
102.20     Subd. 4.  [NO APPROPRIATE EDUCATIONAL OPTION.] If the job 
102.21  counselor determines that there is no appropriate educational 
102.22  option for a caregiver who is age 18 or 19, the job counselor 
102.23  must develop an employment plan, as defined in section 256J.49, 
102.24  subdivision 5, for the caregiver.  The department plan must 
102.25  require the caregiver to accept any suitable employment. 
102.26     Subd. 5.  [SCHOOL ATTENDANCE REQUIRED.] (a) Notwithstanding 
102.27  the provisions of section 256J.56, minor parents, or 18- or 
102.28  19-year-old parents without a high school diploma or its 
102.29  equivalent must attend school unless: 
102.30     (1) transportation services needed to enable the caregiver 
102.31  to attend school are not available; 
102.32     (2) licensed or legal nonlicensed child care services 
102.33  needed to enable the caregiver to attend school are not 
102.34  available; 
102.35     (3) the caregiver is ill or incapacitated seriously enough 
102.36  to prevent attendance at school; or 
103.1      (4) the caregiver is needed in the home because of the 
103.2   illness or incapacity of another member of the household.  This 
103.3   includes a caregiver of a child who is younger than six weeks of 
103.4   age. 
103.5      (b) The caregiver must be enrolled in a secondary school 
103.6   and meeting the school's attendance requirements.  An enrolled 
103.7   caregiver is considered to be meeting the attendance 
103.8   requirements when the school is not in regular session, 
103.9   including during holiday and summer breaks. 
103.10     Section 44 is effective January 1, 1998, except the 
103.11  transitional provision in section 72 applies. 
103.12     Sec. 45.  [256J.55] [PARTICIPANT REQUIREMENTS, RIGHTS, AND 
103.13  EXPECTATIONS.] 
103.14     Subdivision 1.  [COMPLIANCE WITH EMPLOYMENT PLAN; SUITABLE 
103.15  EMPLOYMENT.] (a) Each MFIP-S participant must comply with the 
103.16  terms of the participant's job search support plan or employment 
103.17  plan.  When the participant has completed the steps listed in 
103.18  the employment plan, the participant must not refuse any offer 
103.19  of suitable employment.  The participant may choose to accept an 
103.20  offer of suitable employment before the participant has 
103.21  completed the steps of the employment plan. 
103.22     (b) For a participant under the age of 20 who is without a 
103.23  high school diploma or general educational development diploma, 
103.24  the requirement to comply with the terms of the employment plan 
103.25  means the participant must meet the requirements of section 
103.26  256J.54. 
103.27     (c) Failure to develop or comply with a job search support 
103.28  plan or employment plan, or quitting suitable employment without 
103.29  good cause, shall result in the imposition of a sanction as 
103.30  specified in sections 256J.57 and 256J.46. 
103.31     (d) Notwithstanding paragraph (a), a participant who has 
103.32  completed a post-secondary education or training program may 
103.33  take up to three months to find a job that is consistent with 
103.34  the participant's employment goal before the participant is 
103.35  required to accept any offer of suitable employment. 
103.36     Subd. 2.  [DUTY TO REPORT.] The participant must inform the 
104.1   job counselor within three working days regarding any changes 
104.2   related to the participant's employment status. 
104.3      Subd. 3.  [MOVE TO A DIFFERENT COUNTY.] MFIP-S applicants 
104.4   or recipients who move to a different county in Minnesota and 
104.5   are required to participate in employment and training services 
104.6   are subject to the requirements of the destination county.  An 
104.7   employment plan that was developed in the county of origin may 
104.8   be continued in the destination county if both the destination 
104.9   county and the participant agree to do so. 
104.10     Subd. 4.  [CHOICE OF PROVIDER.] A participant must be able 
104.11  to choose from at least two employment and training service 
104.12  providers, unless the county has demonstrated to the 
104.13  commissioner that the provision of multiple employment and 
104.14  training service providers would result in financial hardship 
104.15  for the county, or the county is utilizing a workforce center as 
104.16  specified in section 256J.50, subdivision 7. 
104.17     Subd. 5.  [OPTION TO UTILIZE EXISTING PLAN.] If a 
104.18  participant is already complying with a job search support or 
104.19  employment plan that was developed for a different program, the 
104.20  participant may utilize that plan and that program's services, 
104.21  subject to the requirements of subdivision 3, to be in 
104.22  compliance with sections 256J.52 to 256J.57 so long as the plan 
104.23  meets, or is modified to meet, the requirements of those 
104.24  sections. 
104.25     Section 45 is effective January 1, 1998, except the 
104.26  transitional provision in section 72 applies. 
104.27     Sec. 46.  [256J.56] [EMPLOYMENT AND TRAINING SERVICES 
104.28  COMPONENT; EXEMPTIONS.] 
104.29     An MFIP-S caregiver is exempt from the requirements of 
104.30  sections 256J.52 to 256J.55 if the caregiver belongs to any of 
104.31  the following groups: 
104.32     (1) individuals who are age 60 or older; 
104.33     (2) individuals who are suffering from a professionally 
104.34  certified permanent or temporary illness, injury, or incapacity 
104.35  which is expected to continue for more than 30 days and which 
104.36  prevents the person from obtaining or retaining employment.  
105.1   Persons in this category with a temporary illness, injury, or 
105.2   incapacity must be reevaluated every 30 days, unless the 
105.3   certification specifies a different length of time before 
105.4   reevaluation; 
105.5      (3) caregivers whose presence in the home is required 
105.6   because of the professionally certified illness or incapacity of 
105.7   another member in the household; 
105.8      (4) women who are pregnant, if the pregnancy has resulted 
105.9   in a professionally certified incapacity that prevents the woman 
105.10  from obtaining or retaining employment; 
105.11     (5) caregivers of a child under the age of one year who 
105.12  personally provide full-time care for the child.  In two-parent 
105.13  households, only one parent or other relative may qualify for 
105.14  this exemption; 
105.15     (6) individuals employed at least 40 hours per week or at 
105.16  least 30 hours per week and engaged in job search for at least 
105.17  an additional ten hours per week; 
105.18     (7) individuals experiencing a personal or family crisis 
105.19  that is professionally certified to make them incapable of 
105.20  participating in the program, as determined by the county 
105.21  agency.  Persons in this category must be reevaluated every 60 
105.22  days; or 
105.23     (8) second parents in two-parent families, provided the 
105.24  second parent is employed for 20 or more hours per week. 
105.25     A caregiver who is exempt under clause (5) must enroll in 
105.26  and attend an early childhood and family education class, a 
105.27  parenting class, or some similar activity during the period of 
105.28  time the caregiver is exempt under this section. 
105.29     Section 46 is effective January 1, 1998, except the 
105.30  transitional provision in section 72 applies. 
105.31     Sec. 47.  [256J.57] [GOOD CAUSE; FAILURE TO COMPLY; NOTICE; 
105.32  CONCILIATION CONFERENCE.] 
105.33     Subdivision 1.  [GOOD CAUSE FOR FAILURE TO COMPLY.] (a) The 
105.34  county agency shall not impose a sanction under section 256J.46 
105.35  if the county agency or the job counselor determines that the 
105.36  participant has good cause for failing to comply with the 
106.1   requirements of sections 256J.52 to 256J.55.  Good cause exists 
106.2   when: 
106.3      (1) needed child care is not available; 
106.4      (2) the job does not meet the definition of suitable 
106.5   employment under section 256J.49; 
106.6      (3) the participant is ill or injured; 
106.7      (4) a family member is ill or disabled and needs care by 
106.8   the participant that prevents the participant from complying 
106.9   with the employment plan; 
106.10     (5) the participant is unable to secure necessary 
106.11  transportation; 
106.12     (6) the participant is in an emergency situation that 
106.13  prevents compliance with the job search support or employment 
106.14  plan; 
106.15     (7) the schedule of compliance with the job search support 
106.16  or employment plan conflicts with judicial proceedings; 
106.17     (8) the participant is already participating in acceptable 
106.18  work activities; 
106.19     (9) the employment plan requires an educational program for 
106.20  a caregiver under age 20, but the educational program is not 
106.21  available in the school district; 
106.22     (10) activities identified in the job search support or 
106.23  employment plan are not available; 
106.24     (11) the participant is willing to accept suitable 
106.25  employment, but suitable employment is not available; and 
106.26     (12) the participant documents other verifiable impediments 
106.27  to compliance with the job search support or employment plan 
106.28  that are beyond the participant's control. 
106.29     (b) The job search support plan or employment plan of a 
106.30  participant who has been granted a good cause exception under 
106.31  this section must be reviewed by the job counselor or county 
106.32  agency, and must be revised as appropriate to improve the 
106.33  participant's ability to comply with the plan requirements, so 
106.34  that the participant will be less likely to make another good 
106.35  cause claim under this section. 
106.36     Subd. 2.  [NOTICE OF INTENT TO SANCTION.] (a) When a 
107.1   participant fails without good cause to comply with the 
107.2   requirements of sections 256J.52 to 256J.55, the job counselor 
107.3   or the county agency must provide a notice of intent to sanction 
107.4   to the participant specifying the program requirements that were 
107.5   not complied with, informing the participant that the county 
107.6   agency will impose the sanctions specified in section 256J.46, 
107.7   and informing the participant of the opportunity to request a 
107.8   conciliation conference as specified in paragraph (b).  The 
107.9   notice must also state that the participant's continuing 
107.10  noncompliance with the specified requirements for more than one 
107.11  month will result in additional sanctions under section 256J.46, 
107.12  without the need for additional notices or conciliation 
107.13  conferences under this subdivision.  If the job counselor 
107.14  provides the required notice, the job counselor must 
107.15  simultaneously notify the county agency that the participant has 
107.16  failed to comply and request that the county agency impose the 
107.17  sanctions in section 256J.46.  The county must then send a 
107.18  notice of adverse action to the participant informing the 
107.19  participant of the sanction that will be imposed, the reasons 
107.20  for the sanction, the effective date of the sanction, and the 
107.21  participant's right to have a fair hearing under section 256J.40.
107.22     (b) The participant may request a conciliation conference 
107.23  by sending a written request, by making a telephone request, or 
107.24  by making an in-person request.  The request must be received 
107.25  within ten calendar days of the date the county agency mailed 
107.26  the ten-day notice of intent to sanction.  If a timely request 
107.27  for a conciliation is received, the county agency's service 
107.28  provider must conduct the conference within five days of the 
107.29  request.  The job counselor's supervisor, or a designee of the 
107.30  supervisor, must review the outcome of the conciliation 
107.31  conference.  If the conciliation conference resolves the 
107.32  noncompliance, the job counselor must promptly inform the county 
107.33  agency and request withdrawal of the sanction notice. 
107.34     (c) Upon receiving a sanction notice, the participant may 
107.35  request a fair hearing under section 256J.40, without exercising 
107.36  the option of a conciliation conference.  In such cases, the 
108.1   county agency shall not require the participant to engage in a 
108.2   conciliation conference prior to the fair hearing. 
108.3      (d) If the participant requests a fair hearing or a 
108.4   conciliation conference, sanctions will not be imposed until 
108.5   there is a determination of noncompliance.  Sanctions must be 
108.6   imposed as provided in section 256J.46. 
108.7      Section 47 is effective January 1, 1998, except the 
108.8   transitional provision in section 72 applies. 
108.9      Sec. 48.  [256J.60] [COUNTY EMPLOYMENT AND TRAINING 
108.10  PERFORMANCE STANDARDS.] 
108.11     Subdivision 1.  [TWO-STAGE SET OF PERFORMANCE STANDARDS.] 
108.12  The department shall adopt a two-stage set of employment and 
108.13  training services performance standards.  The first-stage 
108.14  standards are mandatory for all counties and are intended to 
108.15  enable the state to achieve the federal participation 
108.16  standards.  The second-stage standards are intended to reward 
108.17  counties for performance that exceeds the mandatory standards.  
108.18  Only those counties that meet the first-stage standards are 
108.19  eligible for the second-stage standards. 
108.20     Subd. 2.  [FIRST-STAGE PERFORMANCE STANDARDS.] Each county 
108.21  must independently meet the federal participation standards.  
108.22  Failure to meet the federal participation standards will result 
108.23  in a sanction as specified in subdivision 3.  Only counties that 
108.24  meet the federal participation standards are eligible for 
108.25  incentives under subdivision 5.  
108.26     Subd. 3.  [APPORTIONMENT OF FEDERAL PARTICIPATION STANDARDS 
108.27  SANCTIONS.] (a) If the state as a whole fails to achieve the 
108.28  federal participation standards specified in section 256J.49, 
108.29  subdivision 6, and is sanctioned by the federal government, the 
108.30  fiscal penalty will be apportioned to the state and the counties 
108.31  using the following method: 
108.32     (1) the full sanction amount shall be multiplied by 50 
108.33  percent.  This is the state's share of the sanction; 
108.34     (2) the nonstate share of the sanction shall be distributed 
108.35  across all counties in direct proportion to their employment and 
108.36  training services allocation for the year for which the sanction 
109.1   was imposed.  For counties that did not meet the federal 
109.2   participation standards, this amount is the fiscal penalty that 
109.3   shall be imposed on those counties; 
109.4      (3) the amount computed in clause (2) shall be divided by 
109.5   two.  This is the fiscal penalty that shall be imposed on 
109.6   counties that met the federal participation standards for the 
109.7   year for which the sanction was imposed; 
109.8      (4) under any circumstance, the sanction applied to any 
109.9   county shall not exceed one-third of its employment and training 
109.10  services allocation for the year for which the sanction was 
109.11  imposed; and 
109.12     (5) after applying clauses (1) to (4), any remaining 
109.13  unattributed portion of the federal sanction shall be assumed by 
109.14  the state. 
109.15     (b) A county that fails to achieve the participation 
109.16  standards specified in section 256J.49, subdivision 6, will be 
109.17  subject to a review of its employment and training services 
109.18  program under section 268.86, subdivision 2.  The commissioners 
109.19  of human services and economic security must work with the 
109.20  county agency to assess and revise the county's programs, in 
109.21  order to improve the county's ability to achieve the 
109.22  participation standards in the following year. 
109.23     (c) If, in a given year, the state as a whole has met the 
109.24  participation standards specified in section 256J.49, 
109.25  subdivision 6, a county for which the given year is the second 
109.26  consecutive year in which the performance standards were not met 
109.27  shall, in addition to a department review of the county program, 
109.28  be subject to a fiscal sanction of an amount equal to 20 percent 
109.29  of the total employment and training services allocation for the 
109.30  second year in which the standards were not met. 
109.31     (d) The sanction, as specified in paragraph (a) or (c), 
109.32  shall be adjusted to account for variations in county 
109.33  demographic and economic conditions.  The commissioner shall 
109.34  develop a method for this adjustment by January 1, 1998. 
109.35     (e) A county may not pay its share of any federal or 
109.36  state-imposed fiscal sanction from the county's employment and 
110.1   training services allocation.  Each county must maintain 
110.2   employment and training services funding at the full allocation 
110.3   level, regardless of any penalties that are imposed. 
110.4      Subd. 4.  [SECOND-STAGE PERFORMANCE STANDARDS.] (a) 
110.5   Beginning July 1, 1998, and each quarter thereafter, the 
110.6   commissioner of human services shall inform all counties of each 
110.7   county's performance on the following measures: 
110.8      (i) MFIP-S caseload reduction; 
110.9      (ii) average placement wage rate; 
110.10     (iii) rate of job retention after three months; 
110.11     (iv) placement rate into unsubsidized jobs; and 
110.12     (v) federal participation requirements as specified in 
110.13  section 256J.49, subdivision 6. 
110.14     (b) By July 1, 1999, the commissioner shall establish 
110.15  performance standards for each of the measures in this 
110.16  subdivision, and recommend to the legislature any changes to the 
110.17  measures specified in this subdivision that would ensure 
110.18  performance standards are developed to achieve the purposes of 
110.19  this section. 
110.20     Subd. 5.  [INCENTIVE FUND.] (a) Beginning July 1, 2000, and 
110.21  in each subsequent state fiscal year, the commissioner shall 
110.22  withhold from allocation to counties five percent of the total 
110.23  annual MFIP-S employment and training services appropriation in 
110.24  an incentive fund to be awarded to counties that have met the 
110.25  standards specified under subdivision 4 during the previous 
110.26  fiscal year. 
110.27     (b) Twenty percent of the total incentive fund shall be 
110.28  reserved for each of the five measures specified in subdivision 
110.29  4.  On July 1, 2000, all counties that have met a given standard 
110.30  during the previous state fiscal year shall share the incentive 
110.31  fund monies for that standard.  Each county's share of a 
110.32  standard's incentive money shall be the same percent as its 
110.33  MFIP-S employment and training services allocation for the 
110.34  previous state fiscal year is of the sum of the allocations to 
110.35  the counties that qualify to share in the incentive for a given 
110.36  measure.  
111.1      (c) At the discretion of the commissioner, during the first 
111.2   two years of the incentive fund, incentive fund money may be 
111.3   used as a contingency fund to cover unanticipated county costs 
111.4   of implementing the employment and training services component 
111.5   of MFIP-S.  
111.6      (d) If no county achieves the second-stage standards, the 
111.7   entire incentive fund, minus any amount expended under paragraph 
111.8   (c), shall be allocated to all counties in direct proportion to 
111.9   their original employment and training services allocation. 
111.10     Section 48 is effective January 1, 1998, except the 
111.11  transitional provision in section 72 applies. 
111.12     Sec. 49.  [256J.61] [REPORTING REQUIREMENTS.] 
111.13     The commissioner of human services, in cooperation with the 
111.14  commissioner of economic security, shall develop reporting 
111.15  requirements for county agencies and employment and training 
111.16  service providers according to section 256.01, subdivision 2, 
111.17  paragraph (17).  Reporting requirements must, to the extent 
111.18  possible, use existing client tracking systems and must be 
111.19  within the limits of funds available.  The requirements must 
111.20  include summary information necessary for state agencies and the 
111.21  legislature to evaluate the effectiveness of the services. 
111.22     Section 49 is effective January 1, 1998, except the 
111.23  transitional provision in section 72 applies. 
111.24     Sec. 50.  [256J.62] [ALLOCATION OF COUNTY EMPLOYMENT AND 
111.25  TRAINING SERVICES BLOCK GRANT.] 
111.26     Subdivision 1.  [ALLOCATION.] Money appropriated for MFIP-S 
111.27  employment and training services must be allocated to counties 
111.28  as specified in this section. 
111.29     Subd. 2.  [GUARANTEED FLOOR.] First, money shall be 
111.30  allocated to counties in an amount equal to the county's 
111.31  guaranteed floor.  The county's guaranteed floor shall be 
111.32  calculated as follows: 
111.33     (1) for fiscal 1998, the guaranteed floor shall be 
111.34  calculated by multiplying the county's STRIDE allocation 
111.35  received for state fiscal year 1997 by 90 percent; 
111.36     (2) for each subsequent fiscal year, the guaranteed floor 
112.1   shall be calculated by multiplying the county's MFIP-S 
112.2   employment and training services allocation received the 
112.3   previous state fiscal year by 90 percent; and 
112.4      (3) if the amount of funds available for allocation is less 
112.5   than the amount allocated to all counties for the previous 
112.6   fiscal year, each county's previous year allocation shall be 
112.7   reduced in proportion to the reduction in statewide funding for 
112.8   the purpose of establishing the guaranteed floor. 
112.9      Subd. 3.  [ALLOCATION OF BALANCE OF FUNDS.] If there remain 
112.10  funds to allocate after establishing each county's guaranteed 
112.11  floor under the provisions in subdivision 2, the balance of 
112.12  funds shall be allocated as follows: 
112.13     (1) for state fiscal year 1998, the remaining funds shall 
112.14  be allocated based on the county's average number of AFDC and 
112.15  family general assistance cases as compared to the statewide 
112.16  total number of cases.  The average number of cases shall be 
112.17  based on counts of AFDC and family general assistance cases as 
112.18  of March 31, June 30, September 30, and December 31 of calendar 
112.19  year 1996; 
112.20     (2) for state fiscal year 1999, the remaining funds shall 
112.21  be allocated based on the county's average number of AFDC, 
112.22  family general assistance, and MFIP-S cases as compared to the 
112.23  statewide total number of cases.  The average number of cases 
112.24  shall be based on counts of AFDC, family general assistance, 
112.25  MFIP-R, MFIP, and MFIP-S cases as of March 31, June 30, 
112.26  September 30, and December 31 of calendar year 1997; and 
112.27     (3) for all subsequent state fiscal years, the remaining 
112.28  funds shall be allocated based on the county's average number of 
112.29  MFIP-S cases as compared to the statewide total number of 
112.30  cases.  The average number of cases must be based on counts of 
112.31  MFIP-S cases as of March 31, June 30, September 30, and December 
112.32  31 of the previous calendar year. 
112.33     Subd. 4.  [ADMINISTRATIVE ACTIVITIES LIMIT.] No more than 
112.34  15 percent of the money allocated under this section may be used 
112.35  for administrative activities. 
112.36     Subd. 4a.  [STRIDE ALLOCATION.] Funds allocated for STRIDE 
113.1   services for state fiscal year 1998 are allocated to county 
113.2   agencies based on the provisions of statute in effect on June 
113.3   30, 1997.  At the time that the AFDC program is replaced by the 
113.4   Temporary Assistance for Needy Families program under title I of 
113.5   Public Law Number 104-193 of the Personal Responsibility and 
113.6   Work Opportunity Reconciliation Act of 1996, any unexpended 
113.7   balance of a county's STRIDE allocation for that fiscal year 
113.8   remains available to the county for operation of MFIP-S 
113.9   employment and training services and for the operation of the 
113.10  STRIDE program for the MFIP and MFIP-R field trial counties for 
113.11  the balance of the fiscal year.  These STRIDE funds shall be 
113.12  included in the calculation of the next year's MFIP-S employment 
113.13  and training allocation under the provisions of subdivision 2. 
113.14     Subd. 5.  [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 
113.15  REFUGEES.] Funds appropriated to cover the costs of bilingual 
113.16  employment and training services to refugees shall be allocated 
113.17  to county agencies as follows: 
113.18     (1) for state fiscal year 1998, the allocation shall be 
113.19  based on the county's proportion of the total statewide number 
113.20  of AFDC refugee cases in the previous fiscal year.  Counties 
113.21  with less than one percent of the statewide number of AFDC, 
113.22  MFIP-R, or MFIP refugee cases shall not receive an allocation of 
113.23  bilingual employment and training services funds; and 
113.24     (2) for each subsequent fiscal year, the allocation shall 
113.25  be based on the county's proportion of the total statewide 
113.26  number of MFIP-S refugee cases in the previous fiscal year.  
113.27  Counties with less than one percent of the statewide number of 
113.28  MFIP-S refugee cases shall not receive an allocation of 
113.29  bilingual employment and training services funds. 
113.30     Subd. 6.  [WORK LITERACY LANGUAGE PROGRAMS.] Funds 
113.31  appropriated to cover the costs of work literacy language 
113.32  programs to non-English speaking participants shall be allocated 
113.33  to county agencies as follows: 
113.34     (1) for state fiscal year 1998, the allocation shall be 
113.35  based on the county's proportion of the total statewide number 
113.36  of AFDC or MFIP cases in the previous fiscal year where the lack 
114.1   of English is a barrier to employment.  Counties with less than 
114.2   two percent of the statewide number of AFDC or MFIP cases where 
114.3   the lack of English is a barrier to employment shall not receive 
114.4   an allocation of the work literacy language program funds; and 
114.5      (2) for each subsequent fiscal year, the allocation shall 
114.6   be based on the county's proportion of the total statewide 
114.7   number of MFIP-S cases in the previous fiscal year where the 
114.8   lack of English is a barrier to employment.  Counties with less 
114.9   than two percent of the statewide number of MFIP-S cases where 
114.10  the lack of English is a barrier to employment shall not receive 
114.11  an allocation of the work literacy language program funds. 
114.12     Subd. 7.  [REALLOCATION.] The commissioner of human 
114.13  services shall review county agency expenditures of MFIP-S 
114.14  employment and training services funds at the end of the third 
114.15  quarter of the first year of the biennium and each quarter after 
114.16  that and may reallocate unencumbered or unexpended money 
114.17  appropriated under this section to those county agencies that 
114.18  can demonstrate a need for additional money. 
114.19     Subd. 8.  [CONTINUATION OF CERTAIN SERVICES.] At county 
114.20  option and with the agreement of the participant, the provider 
114.21  may continue to provide case management, counseling or other 
114.22  support services to a participant following the participant's 
114.23  achievement of the employment goal, regardless of the 
114.24  participant's eligibility for MFIP-S. 
114.25     A county may expend funds for a specific employment and 
114.26  training service for the duration of that service to a 
114.27  participant if the funds are obligated or expended prior to the 
114.28  participant losing MFIP-S eligibility. 
114.29     Section 50 is effective January 1, 1998, except the 
114.30  transitional provision in section 72 applies. 
114.31     Sec. 51.  [256J.645] [INDIAN TRIBE MFIP-S EMPLOYMENT AND 
114.32  TRAINING.] 
114.33     Subdivision 1.  [AUTHORIZATION TO ENTER INTO 
114.34  AGREEMENTS.] The commissioner may enter into agreements with 
114.35  federally recognized Indian tribes with a reservation in the 
114.36  state to provide MFIP-S employment and training services to 
115.1   members of the Indian tribe and to other caregivers who are a 
115.2   part of the tribal member's MFIP-S assistance unit.  For 
115.3   purposes of this section, "Indian tribe" means a tribe, band, 
115.4   nation, or other federally recognized group or community of 
115.5   Indians.  The commissioner may also enter into an agreement with 
115.6   a consortium of Indian tribes providing the governing body of 
115.7   each Indian tribe in the consortium complies with the provisions 
115.8   of this section. 
115.9      Subd. 2.  [TRIBAL REQUIREMENTS.] The Indian tribe must: 
115.10     (1) agree to fulfill the responsibilities provided under 
115.11  the employment and training component of MFIP-S regarding 
115.12  operation of MFIP-S employment and training services, as 
115.13  designated by the commissioner; 
115.14     (2) operate its employment and training services program 
115.15  within a geographic service area not to exceed the counties 
115.16  within which a border of the reservation falls; 
115.17     (3) operate its program in conformity with section 13.46 
115.18  and any applicable federal regulations in the use of data about 
115.19  MFIP-S recipients; 
115.20     (4) coordinate operation of its program with the county 
115.21  agency, Job Training Partnership Act programs, and other support 
115.22  services or employment-related programs in the counties in which 
115.23  the tribal unit's program operates; 
115.24     (5) provide financial and program participant activity 
115.25  recordkeeping and reporting in the manner and using the forms 
115.26  and procedures specified by the commissioner and permit 
115.27  inspection of its program and records by representatives of the 
115.28  state; and 
115.29     (6) have the Indian tribe's employment and training service 
115.30  provider certified by the commissioner of economic security, or 
115.31  approved by the county. 
115.32     Subd. 3.  [FUNDING.] (a) If the commissioner and an Indian 
115.33  tribe are parties to an agreement under this subdivision, the 
115.34  agreement may annually provide to the Indian tribe the funding 
115.35  amount in clause (1) or (2): 
115.36     (1) if the Indian tribe operated a tribal STRIDE program 
116.1   during state fiscal year 1997, the amount to be provided is the 
116.2   amount the Indian tribe received from the state for operation of 
116.3   its tribal STRIDE program in state fiscal year 1997, except that 
116.4   the amount provided for a fiscal year may increase or decrease 
116.5   in the same proportion that the total amount of state funds 
116.6   available for MFIP-S employment and training services increased 
116.7   or decreased that fiscal year.  No additional funds shall be 
116.8   provided to the tribe under this clause for the first year of 
116.9   expansion of MFIP beyond the pilot counties; or 
116.10     (2) if the Indian tribe did not operate a tribal STRIDE 
116.11  program during state fiscal year 1997, the commissioner may 
116.12  provide to the Indian tribe for the first year of operations the 
116.13  amount determined by multiplying the state allocation for MFIP-S 
116.14  employment and training services to each county agency in the 
116.15  Indian tribe's service delivery area by the percentage of MFIP-S 
116.16  recipients in that county who were members of the Indian tribe 
116.17  during the previous state fiscal year.  The resulting amount 
116.18  shall also be the amount that the commissioner may provide to 
116.19  the Indian tribe annually thereafter through an agreement under 
116.20  this subdivision, except that the amount provided for a fiscal 
116.21  year may increase or decrease in the same proportion that the 
116.22  total amount of state funds available for MFIP-S employment and 
116.23  training services increased or decreased that fiscal year.  No 
116.24  additional funds shall be provided to the tribe under this 
116.25  clause for the first year of expansion of MFIP beyond the pilot 
116.26  counties. 
116.27     (b) Indian tribal members receiving MFIP-S benefits and 
116.28  residing in the service area of an Indian tribe operating 
116.29  employment and training services under an agreement with the 
116.30  commissioner must be referred by county agencies in the service 
116.31  area to the Indian tribe for employment and training services. 
116.32     Section 51 is effective January 1, 1998, except the 
116.33  transitional provision in section 72 applies. 
116.34     Sec. 52.  [256J.65] [THE SELF-EMPLOYMENT INVESTMENT 
116.35  DEMONSTRATION PROGRAM (SEID).] 
116.36     (a) A caregiver who enrolls and participates in the SEID 
117.1   program as specified in section 268.95, may, at county option, 
117.2   be exempted from other employment and training participation 
117.3   requirements for a period of up to 24 months, except for the 
117.4   school attendance requirements as specified in section 256J.54.  
117.5      (b) The following income and resource considerations apply 
117.6   to SEID participants:  
117.7      (1) an unencumbered cash reserve fund, composed of proceeds 
117.8   from a SEID business, is not counted against the grant if those 
117.9   funds are reinvested in the business and the value of the 
117.10  business does not exceed $3,000.  The value of the business is 
117.11  determined by deducting outstanding encumbrances from retained 
117.12  business profit; and 
117.13     (2) the purchase of capital equipment and durable goods of 
117.14  an amount up to $3,000 during a 24-month project period is 
117.15  allowed as a business expense. 
117.16     (c) SEID participants are also eligible for employment and 
117.17  training services, including child care assistance and 
117.18  transportation. 
117.19     Section 52 is effective January 1, 1998, except the 
117.20  transitional provision in section 72 applies. 
117.21     Sec. 53.  [256J.66] [ON-THE-JOB TRAINING.] 
117.22     Subdivision 1.  [ESTABLISHING THE ON-THE-JOB TRAINING 
117.23  PROGRAM.] (a) County agencies may develop on-the-job training 
117.24  programs for MFIP-S caregivers who are participating in 
117.25  employment and training services.  A county agency that chooses 
117.26  to provide on-the-job training may make payments to employers 
117.27  for on-the-job training costs that, during the period of the 
117.28  training, must not exceed 50 percent of the wages paid by the 
117.29  employer to the participant.  The payments are deemed to be in 
117.30  compensation for the extraordinary costs associated with 
117.31  training participants under this section and in compensation for 
117.32  the costs associated with the lower productivity of the 
117.33  participants during training. 
117.34     (b) Provision of an on-the-job training program under the 
117.35  Job Training Partnership Act, in and of itself, does not qualify 
117.36  as an on-the-job training program under this section. 
118.1      (c) Participants in on-the-job training shall be 
118.2   compensated by the employer at the same rates, including 
118.3   periodic increases, as similarly situated employees or trainees 
118.4   and in accordance with applicable law, but in no event less than 
118.5   the federal or applicable state minimum wage, whichever is 
118.6   higher. 
118.7      Subd. 2.  [TRAINING AND PLACEMENT.] (a) County agencies 
118.8   shall limit the length of training based on the complexity of 
118.9   the job and the caregiver's previous experience and training.  
118.10  Placement in an on-the-job training position with an employer is 
118.11  for the purpose of training and employment with the same 
118.12  employer who has agreed to retain the person upon satisfactory 
118.13  completion of training. 
118.14     (b) Placement of any participant in an on-the-job training 
118.15  position must be compatible with the participant's assessment 
118.16  and employment plan under section 256J.52. 
118.17     Section 53 is effective January 1, 1998, except the 
118.18  transitional provision in section 72 applies. 
118.19     Sec. 54.  [256J.67] [COMMUNITY WORK EXPERIENCE.] 
118.20     Subdivision 1.  [ESTABLISHING THE COMMUNITY WORK EXPERIENCE 
118.21  PROGRAM.] To the extent of available resources, each county 
118.22  agency may establish and operate a work experience component for 
118.23  MFIP-S caregivers who are participating in employment and 
118.24  training services.  This option for county agencies supersedes 
118.25  the requirement in section 402(a)(1)(B)(iv) of the Social 
118.26  Security Act that caregivers who have received assistance for 
118.27  two months and who are not exempt from work requirements must 
118.28  participate in a work experience program.  The purpose of the 
118.29  work experience component is to enhance the caregiver's 
118.30  employability and self-sufficiency and to provide meaningful, 
118.31  productive work activities.  The county shall only use this 
118.32  program after exhausting all other employment opportunities.  
118.33  The county agency shall not require a caregiver to participate 
118.34  in the community work experience program under this section 
118.35  unless the caregiver has been given an opportunity to 
118.36  participate in other work activities.  The county shall only use 
119.1   this program after exhausting all other employment 
119.2   opportunities.  The county agency shall not require a caregiver 
119.3   to participate in the community work experience program under 
119.4   this section unless the caregiver has been given an opportunity 
119.5   to participate in other work activities. 
119.6      Subd. 2.  [COMMISSIONER'S DUTIES.] The commissioner shall 
119.7   assist counties in the design and implementation of these 
119.8   components.  
119.9      Subd. 3.  [EMPLOYMENT OPTIONS.] (a) Work sites developed 
119.10  under this section are limited to projects that serve a useful 
119.11  public service such as:  health, social service, environmental 
119.12  protection, education, urban and rural development and 
119.13  redevelopment, welfare, recreation, public facilities, public 
119.14  safety, community service, services to aged or disabled 
119.15  citizens, and child care.  To the extent possible, the prior 
119.16  training, skills, and experience of a caregiver must be 
119.17  considered in making appropriate work experience assignments. 
119.18     (b) Structured, supervised volunteer work with an agency or 
119.19  organization, which is monitored by the county service provider, 
119.20  may, with the approval of the county agency, be used as a work 
119.21  experience placement. 
119.22     (c) As a condition of placing a caregiver in a program 
119.23  under this section, the county agency shall first provide the 
119.24  caregiver the opportunity: 
119.25     (1) for placement in suitable subsidized or unsubsidized 
119.26  employment through participation in a job search; or 
119.27     (2) for placement in suitable employment through 
119.28  participation in on-the-job training, if such employment is 
119.29  available. 
119.30     Subd. 4.  [EMPLOYMENT PLAN.] (a) The caretaker's employment 
119.31  plan must include the length of time needed in the work 
119.32  experience program, the need to continue job-seeking activities 
119.33  while participating in work experience, and the caregiver's 
119.34  employment goals. 
119.35     (b) After each six months of a caregiver's participation in 
119.36  a work experience job placement, and at the conclusion of each 
120.1   work experience assignment under this section, the county agency 
120.2   shall reassess and revise, as appropriate, the caregiver's 
120.3   employment plan. 
120.4      (c) A participant may claim good cause under section 
120.5   256J.57 for failing to cooperate with a work experience job 
120.6   placement.  
120.7      (d) The county agency shall limit the maximum number of 
120.8   hours any participant may work under this section to the amount 
120.9   of the applicable MFIP-S transitional standard divided by the 
120.10  applicable federal or state minimum wage, whichever is higher.  
120.11  After a participant has been assigned to a position for nine 
120.12  months, the participant may not continue in that assignment 
120.13  unless the maximum number of hours a participant works is no 
120.14  greater than the amount of the applicable MFIP-S transitional 
120.15  standard divided by the rate of pay for individuals employed in 
120.16  the same or similar occupations by the same employer at the same 
120.17  site. 
120.18     Section 54 is effective January 1, 1998, except the 
120.19  transitional provision in section 72 applies. 
120.20     Sec. 55.  [256J.68] [INJURY PROTECTION FOR WORK EXPERIENCE 
120.21  PARTICIPANTS.] 
120.22     Subdivision 1.  [APPLICABILITY.] Payment of any claims 
120.23  resulting from an alleged injury or death of a person 
120.24  participating in a county or a tribal community work experience 
120.25  program that is operated by the county agency or the tribe and 
120.26  approved by the commissioner must be determined in accordance 
120.27  with this section.  This determination method applies to work 
120.28  experience programs authorized by the commissioner for persons 
120.29  applying for or receiving cash assistance and food stamps, and 
120.30  to the Minnesota parent's fair share program and the community 
120.31  service program under section 518.551, subdivision 5a, in a 
120.32  county with an approved community investment program for 
120.33  obligors. 
120.34     Subd. 2.  [INVESTIGATION OF THE CLAIM.] Claims that are 
120.35  subject to this section must be investigated by the county 
120.36  agency or the tribal program responsible for supervising the 
121.1   work to determine whether the claimed injury occurred, whether 
121.2   the claimed medical expenses are reasonable, and whether the 
121.3   loss is covered by the claimant's insurance.  If insurance 
121.4   coverage is established, the county agency or tribal program 
121.5   shall submit the claim to the appropriate insurance entity for 
121.6   payment.  The investigating county agency or tribal program 
121.7   shall submit all valid claims, in the amount net of any 
121.8   insurance payments, to the department of human services. 
121.9      Subd. 3.  [SUBMISSION OF CLAIM.] The commissioner shall 
121.10  submit all claims for permanent partial disability compensation 
121.11  to the commissioner of labor and industry.  The commissioner of 
121.12  labor and industry shall review all submitted claims and 
121.13  recommend to the department of human services an amount of 
121.14  compensation comparable to that which would be provided under 
121.15  the permanent partial disability compensation schedule of 
121.16  section 176.101, subdivision 2a. 
121.17     Subd. 4.  [CLAIMS LESS THAN $1,000.] The commissioner shall 
121.18  approve a claim of $1,000 or less for payment if appropriated 
121.19  funds are available, if the county agency or tribal program 
121.20  responsible for supervising the work has made the determinations 
121.21  required by this section, and if the work program was operated 
121.22  in compliance with the safety provisions of this section.  The 
121.23  commissioner shall pay the portion of an approved claim of 
121.24  $1,000 or less that is not covered by the claimant's insurance 
121.25  within three months of the date of submission.  On or before 
121.26  February 1 of each year, the commissioner shall submit to the 
121.27  appropriate committees of the senate and the house of 
121.28  representatives a list of claims of $1,000 or less paid during 
121.29  the preceding calendar year and shall be reimbursed by 
121.30  legislative appropriation for any claims that exceed the 
121.31  original appropriation provided to the commissioner to operate 
121.32  this program.  Any unspent money from this appropriation shall 
121.33  carry over to the second year of the biennium, and any unspent 
121.34  money remaining at the end of the second year shall be returned 
121.35  to the state general fund. 
121.36     Subd. 5.  [CLAIMS MORE THAN $1,000.] On or before February 
122.1   1 of each year, the commissioner shall submit to the appropriate 
122.2   committees of the senate and the house of representatives a list 
122.3   of claims in excess of $1,000 and a list of claims of $1,000 or 
122.4   less that were submitted to but not paid by the commissioner, 
122.5   together with any recommendations of appropriate compensation.  
122.6   These claims shall be heard and determined by the appropriate 
122.7   committees of the senate and house of representatives and, if 
122.8   approved, must be paid under the legislative claims procedure. 
122.9      Subd. 6.  [COMPENSATION FOR CERTAIN COSTS.] Compensation 
122.10  paid under this section is limited to reimbursement for 
122.11  reasonable medical expenses and permanent partial disability 
122.12  compensation for disability in like amounts as allowed in 
122.13  section 176.101, subdivision 2a.  Compensation for injuries 
122.14  resulting in death shall include reasonable medical expenses and 
122.15  burial expenses in addition to payment to the participant's 
122.16  estate in an amount up to $200,000.  No compensation shall be 
122.17  paid under this section for pain and suffering, lost wages, or 
122.18  other benefits provided in chapter 176.  Payments made under 
122.19  this section shall be reduced by any proceeds received by the 
122.20  claimant from any insurance policy covering the loss.  For the 
122.21  purposes of this section, "insurance policy" does not include 
122.22  the medical assistance program authorized under chapter 256B or 
122.23  the general assistance medical care program authorized under 
122.24  chapter 256D. 
122.25     Subd. 7.  [EXCLUSIVE PROCEDURE.] The procedure established 
122.26  by this section is exclusive of all other legal, equitable, and 
122.27  statutory remedies against the state, its political 
122.28  subdivisions, or employees of the state or its political 
122.29  subdivisions.  The claimant shall not be entitled to seek 
122.30  damages from any state, county, tribal, or reservation insurance 
122.31  policy or self-insurance program. 
122.32     Subd. 8.  [INVALID CLAIMS.] A claim is not valid for 
122.33  purposes of this section if the county agency responsible for 
122.34  supervising the work cannot verify to the commissioner: 
122.35     (1) that appropriate safety training and information is 
122.36  provided to all persons being supervised by the agency under 
123.1   this section; and 
123.2      (2) that all programs involving work by those persons 
123.3   comply with federal Occupational Safety and Health 
123.4   Administration and state department of labor and industry safety 
123.5   standards.  A claim that is not valid because of failure to 
123.6   verify safety training or compliance with safety standards will 
123.7   not be paid by the department of human services or through the 
123.8   legislative claims process and must be heard, decided, and paid, 
123.9   if appropriate, by the local government unit or tribal JOBS 
123.10  program responsible for supervising the work of the claimant. 
123.11     Section 55 is effective January 1, 1998, except the 
123.12  transitional provision in section 72 applies. 
123.13     Sec. 56.  [256J.69] [GRANT DIVERSION.] 
123.14     Subdivision 1.  [ESTABLISHING THE GRANT DIVERSION 
123.15  PROGRAM.] (a) County agencies may develop grant diversion 
123.16  programs for MFIP-S participants participating in employment and 
123.17  training services.  A county agency that chooses to provide 
123.18  grant diversion may divert to an employer part or all of the 
123.19  MFIP-S cash payment for the participant's assistance unit, in 
123.20  compliance with federal regulations and laws.  Such payments to 
123.21  an employer are to subsidize employment for MFIP-S participants 
123.22  as an alternative to public assistance payments. 
123.23     (b) In addition to diverting the MFIP-S grant to the 
123.24  employer, employment and training funds may be used to subsidize 
123.25  the grant diversion placement. 
123.26     (c) Participants in grant diversion shall be compensated by 
123.27  the employer at the same rates, including periodic increases, as 
123.28  similarly situated employees or trainees and in accordance with 
123.29  applicable law, but in no event less than the federal or 
123.30  applicable state minimum wage, whichever is higher. 
123.31     Subd. 2.  [TRAINING AND PLACEMENT.] (a) County agencies 
123.32  shall limit the length of training to nine months.  Placement in 
123.33  a grant diversion training position with an employer is for the 
123.34  purpose of training and employment with the same employer who 
123.35  has agreed to retain the person upon satisfactory completion of 
123.36  training. 
124.1      (b) Placement of any participant in a grant diversion 
124.2   subsidized training position must be compatible with the 
124.3   assessment and employment plan or employability development plan 
124.4   established for the recipient under section 256J.52 or 256K.03, 
124.5   subdivision 8. 
124.6      Section 56 is effective January 1, 1998, except the 
124.7   transitional provision in section 72 applies. 
124.8      Sec. 57.  [256J.72] [NONDISPLACEMENT IN WORK ACTIVITIES.] 
124.9      Subdivision 1.  [NONDISPLACEMENT PROTECTION.] For job 
124.10  assignments under jobs programs established under chapter 256, 
124.11  256D, 256J, or 256K, the county agency must provide written 
124.12  notification to and obtain the written concurrence of the 
124.13  appropriate exclusive bargaining representatives with respect to 
124.14  job duties covered under collective bargaining agreements and 
124.15  ensure that no work assignment under chapter 256, 256D, 256J, or 
124.16  256K results in: 
124.17     (1) termination, layoff, or reduction of the work hours of 
124.18  an employee for the purpose of hiring an individual under this 
124.19  section; 
124.20     (2) the hiring of an individual if any other person is on 
124.21  layoff, including seasonal layoff, from the same or a 
124.22  substantially equivalent job; 
124.23     (3) any infringement of the promotional opportunities of 
124.24  any currently employed individual; 
124.25     (4) the impairment of existing contract for services of 
124.26  collective bargaining agreements; or 
124.27     (5) a participant filling an established unfilled position 
124.28  vacancy, except for a position filled using grant diversion as 
124.29  provided in section 256J.69 or on-the-job training. 
124.30     The written notification must be provided to the 
124.31  appropriate exclusive bargaining representatives at least 14 
124.32  days in advance of placing recipients in temporary public 
124.33  service employment.  The notice must include the number of 
124.34  individuals involved, their work locations and anticipated hours 
124.35  of work, a summary of the tasks to be performed, and a 
124.36  description of how the individuals will be trained and 
125.1   supervised. 
125.2      Subd. 2.  [DISPUTE RESOLUTION.] (a) If there is a dispute 
125.3   between an exclusive bargaining representative and a county 
125.4   provider or employer over whether job duties are within the 
125.5   scope of a collective bargaining unit, the exclusive bargaining 
125.6   representative, the county, the provider, or the employer may 
125.7   petition the bureau of mediation services to determine if the 
125.8   job duties are within the scope of a collective bargaining unit, 
125.9   and the bureau shall render a binding decision. 
125.10     (b) In the event of a dispute under this section, the 
125.11  parties may: 
125.12     (1) use a grievance and arbitration procedure of an 
125.13  existing collective bargaining agreement to process a dispute 
125.14  over whether a violation of the nondisplacement provisions has 
125.15  occurred; or 
125.16     (2) if no grievance and arbitration procedure is in place, 
125.17  either party may submit the dispute to the bureau.  The 
125.18  commissioner of the bureau of mediation services shall establish 
125.19  a procedure for a neutral, binding resolution of the dispute. 
125.20     Subd. 3.  [STATUS OF PARTICIPANT.] A participant may not 
125.21  work in a temporary public service or community service job for 
125.22  a public employer for more than 67 working days or 536 hours, 
125.23  whichever is greater, as part of a work program established 
125.24  under chapter 256, 256D, 256J, or 256K.  A participant who 
125.25  exceeds the time limits in this subdivision is a public 
125.26  employee, as that term is used in chapter 179A.  Upon the 
125.27  written request of the exclusive bargaining representative, a 
125.28  county or public service employer shall make available to the 
125.29  affected exclusive bargaining representative a report of hours 
125.30  worked by participants in temporary public service or community 
125.31  service jobs. 
125.32     Section 57 is effective January 1, 1998, except the 
125.33  transitional provision in section 72 applies. 
125.34     Sec. 58.  [256J.74] [RELATIONSHIP TO OTHER PROGRAMS.] 
125.35     Subdivision 1.  [SOCIAL SERVICES.] The county agency shall 
125.36  refer a participant for social services that are offered in the 
126.1   county of financial responsibility according to the criteria 
126.2   established by that county agency under Minnesota Rules, parts 
126.3   9550.0010 to 9550.0092.  A payment issued from federal funds 
126.4   under title XX of the Social Security Act, state funds under the 
126.5   Community Social Services Act, federal or state child welfare 
126.6   funds, or county funds in a payment month must not restrict 
126.7   MFIP-S eligibility or reduce the monthly assistance payment for 
126.8   that participant. 
126.9      Subd. 2.  [CONCURRENT ELIGIBILITY, LIMITATIONS.] A county 
126.10  agency must not count an applicant or participant as a member of 
126.11  more than one assistance unit in a given payment month, except 
126.12  as provided in clauses (1) and (2). 
126.13     (1) A participant who is a member of an assistance unit in 
126.14  this state is eligible to be included in a second assistance 
126.15  unit in the first full month that the participant leaves the 
126.16  first assistance unit and lives with a second assistance unit. 
126.17     (2) An applicant whose needs are met through foster care 
126.18  that is reimbursed under title IV-E of the Social Security Act 
126.19  for the first part of an application month is eligible to 
126.20  receive assistance for the remaining part of the month in which 
126.21  the applicant returns home.  Title IV-E payments and adoption 
126.22  assistance payments must be considered prorated payments rather 
126.23  than a duplication of MFIP-S need. 
126.24     Subd. 3.  [EMERGENCY ASSISTANCE, ASSISTANCE UNIT WITH A 
126.25  MINOR CHILD.] An MFIP-S assistance unit with a minor child or a 
126.26  pregnant woman without a minor child is eligible for emergency 
126.27  assistance when the assistance unit meets the requirements in 
126.28  section 256J.48, subdivision 2. 
126.29     Subd. 4.  [MEDICAL ASSISTANCE.] Medical assistance 
126.30  eligibility for MFIP-S participants shall be determined as 
126.31  described in chapter 256B. 
126.32     Section 58 is effective January 1, 1998, except the 
126.33  transitional provision in section 72 applies. 
126.34     Sec. 59.  [256J.75] [COUNTY OF FINANCIAL RESPONSIBILITY 
126.35  POLICIES.] 
126.36     Subdivision 1.  [COUNTY OF FINANCIAL RESPONSIBILITY.] The 
127.1   county of financial responsibility is the county in which a 
127.2   minor child or pregnant woman lives on the date the application 
127.3   is signed, unless subdivision 4 applies.  When more than one 
127.4   county is financially responsible for the members of an 
127.5   assistance unit, financial responsibility must be assigned to a 
127.6   single county beginning the first day of the calendar month 
127.7   after the assistance unit members are required to be in a single 
127.8   assistance unit.  Financial responsibility must be assigned to 
127.9   the county that was initially responsible for the assistance 
127.10  unit member with the earliest date of application.  The county 
127.11  in which the assistance unit is currently residing becomes 
127.12  financially responsible for the entire assistance unit beginning 
127.13  two full calendar months after the month in which financial 
127.14  responsibility was consolidated in one county. 
127.15     Subd. 2.  [CHANGE IN RESIDENCE.] (a) When an assistance 
127.16  unit moves from one county to another and continues to receive 
127.17  assistance, the new county of residence becomes the county of 
127.18  financial responsibility when that assistance unit has lived in 
127.19  that county in nonexcluded status for two full calendar months.  
127.20  "Nonexcluded status" means the period of residence that is not 
127.21  considered excluded time under section 256G.02, subdivision 6.  
127.22  When a minor child moves from one county to another to reside 
127.23  with a different caregiver, the caregiver in the former county 
127.24  is eligible to receive assistance for that child only through 
127.25  the last day of the month of the move.  The caregiver in the new 
127.26  county becomes eligible to receive assistance for the child the 
127.27  first day of the month following the move or the date of 
127.28  application, whichever is later. 
127.29     (b) When an applicant moves from one county to another 
127.30  while the application is pending, the county where application 
127.31  first occurred is the county of financial responsibility until 
127.32  the applicant has lived in the new county for two full calendar 
127.33  months, unless the applicant's move is covered under section 
127.34  256G.02, subdivision 6. 
127.35     Subd. 3.  [RESPONSIBILITY FOR INCORRECT ASSISTANCE 
127.36  PAYMENTS.] A county of residence, when different from the county 
128.1   of financial responsibility, will be charged by the commissioner 
128.2   for the value of incorrect assistance payments and medical 
128.3   assistance paid to or on behalf of a person who was not eligible 
128.4   to receive that amount.  Incorrect payments include payments to 
128.5   an ineligible person or family resulting from decisions, 
128.6   failures to act, miscalculations, or overdue recertification.  
128.7   However, financial responsibility does not accrue for a county 
128.8   when the recertification is overdue at the time the referral is 
128.9   received by the county of residence or when the county of 
128.10  financial responsibility does not act on the recommendation of 
128.11  the county of residence.  When federal or state law requires 
128.12  that medical assistance continue after assistance ends, this 
128.13  subdivision also governs financial responsibility for the 
128.14  extended medical assistance. 
128.15     Subd. 4.  [EXCLUDED TIME.] When an applicant or participant 
128.16  resides in an excluded time facility as described in section 
128.17  256G.02, subdivision 6, the county that is financially 
128.18  responsible for the applicant or participant is the county in 
128.19  which the applicant or participant last resided outside such a 
128.20  facility immediately before entering the facility.  When an 
128.21  applicant or participant has not resided in this state for any 
128.22  time other than excluded time as defined in section 256G.02, 
128.23  subdivision 6, the county that is financially responsible for 
128.24  the applicant or participant is the county in which the 
128.25  applicant or participant resides on the date the application is 
128.26  signed. 
128.27     Section 59 is effective January 1, 1998, except the 
128.28  transitional provision in section 72 applies.  
128.29     Sec. 60.  [256J.76] [COUNTY ADMINISTRATIVE AID.] 
128.30     Subdivision 1.  [ADMINISTRATIVE FUNCTIONS.] Beginning July 
128.31  1, 1997, counties will receive federal funds from the TANF block 
128.32  grant for use in supporting eligibility, fraud control, and 
128.33  other related administrative functions.  The federal funds 
128.34  available for distribution, as determined by the commissioner, 
128.35  must be an amount equal to federal administrative aid 
128.36  distributed for fiscal year 1996 under titles IV-A and IV-F of 
129.1   the Social Security Act in effect prior to October 1, 1996.  
129.2   This amount must include the amount paid for local 
129.3   collaboratives under sections 245.4932 and 256F.13, but must not 
129.4   include administrative aid associated with child care under 
129.5   section 119B.05, with emergency assistance intensive family 
129.6   preservation services under section 256.8711, with 
129.7   administrative activities as part of the employment and training 
129.8   services under section 256.736, or with fraud prevention 
129.9   investigation activities under section 256.983. 
129.10     Subd. 2.  [ALLOCATION OF COUNTY FUNDS.] (a) The 
129.11  commissioner shall determine and allocate the funds available to 
129.12  each county on a calendar year basis. 
129.13     (b) For calendar year 1998, the commissioner shall allocate 
129.14  the funds available under subdivision 1 in proportion to 
129.15  administrative aid paid to each county for fiscal year 1996, 
129.16  excluding any amounts paid for local collaboratives under 
129.17  sections 245.4932 and 256F.13.  For the period from July 1, 
129.18  1997, to December 31, 1997, each county shall receive an 
129.19  additional 50 percent of its calendar year 1998 allocation. 
129.20     (c) For calendar year 1999 and following years, the 
129.21  commissioner shall allocate the funds available under 
129.22  subdivision 1 based on each county's average number of MFIP-S 
129.23  cases as compared to the statewide total number of cases.  The 
129.24  average number of cases must be based on counts of MFIP-S cases 
129.25  as of March 31, June 30, September 30, and December 31 of the 
129.26  preceding calendar year.  
129.27     Subd. 3.  [MONTHLY PAYMENTS TO COUNTIES.] The commissioner 
129.28  shall pay counties monthly as federal funds are available.  The 
129.29  commissioner may certify the payments for the first three months 
129.30  of a calendar year. 
129.31     Subd. 4.  [REPORTING REQUIREMENT.] The commissioner shall 
129.32  specify requirements for reporting according to section 256.01, 
129.33  subdivision 2, paragraph (17).  Each county shall be reimbursed 
129.34  at a rate of 50 percent of eligible expenditures up to the limit 
129.35  of its allocation. 
129.36     Sec. 61.  [256J.77] [COUNTY AID FOR SUPPLEMENTAL HOUSING 
130.1   ASSISTANCE.] 
130.2      Subdivision 1.  [PROGRAM ESTABLISHED.] This section may be 
130.3   cited as the county aid for supplemental housing assistance 
130.4   program (CASHAP).  CASHAP is a statewide program intended to 
130.5   help meet the housing needs of legal noncitizens residing in 
130.6   Minnesota on August 22, 1996, who became ineligible for SSI 
130.7   benefits under the Personal Responsibility and Work Opportunity 
130.8   Reconciliation Act of 1996, Public Law Number 104-193. 
130.9      Subd. 2.  [ALLOCATION OF COUNTY AID FOR HOUSING ASSISTANCE 
130.10  FUNDS.] State funds appropriated for the county aid for 
130.11  supplemental housing assistance program shall be allocated to 
130.12  county agencies as follows: 
130.13     (1) for state fiscal year 1998, the allocation shall be 
130.14  based on the county's proportion of the total statewide number 
130.15  of legal noncitizens residing in Minnesota on August 22, 1996, 
130.16  who became ineligible for SSI benefits under the Personal 
130.17  Responsibility and Work Opportunity Reconciliation Act of 1996, 
130.18  Public Law Number 104-193; and 
130.19     (2) for subsequent fiscal years, the allocation shall be 
130.20  based on the county's proportion of total statewide spending for 
130.21  county aid for supplemental housing assistance in the preceding 
130.22  year. 
130.23     Subd. 3.  [USE OF CASHAP FUNDS.] County agencies may spend 
130.24  CASHAP funds at their discretion to assist with the housing 
130.25  needs of legal noncitizens residing in Minnesota on August 22, 
130.26  1996, who became ineligible for SSI under the Personal 
130.27  Responsibility and Work Opportunity Reconciliation Act of 1996, 
130.28  Public Law Number 104-193. 
130.29     Subd. 4.  [REALLOCATION OF UNUSED FUNDS.] Any CASHAP funds 
130.30  not used by a county at the end of a fiscal year shall be 
130.31  returned to the commissioner and reallocated in the following 
130.32  fiscal year as provided in subdivision 2. 
130.33     Sec. 62.  [NOTICE AND REFERRAL PROCEDURES FOR DOMESTIC 
130.34  VIOLENCE VICTIMS.] 
130.35     The commissioner of human services shall develop procedures 
130.36  for the county agencies and their contractors to identify 
131.1   victims of domestic violence.  The procedures must provide, at a 
131.2   minimum, universal notification to all applicants and recipients 
131.3   of MFIP-S that: 
131.4      (1) referrals to counseling and supportive services are 
131.5   available for victims of domestic violence; 
131.6      (2) nonpermanent resident battered individuals married to 
131.7   U.S. citizens or permanent residents may be eligible to petition 
131.8   for permanent residency under the Violence Against Women Act, 
131.9   and that referrals to appropriate legal services are available; 
131.10  and 
131.11     (3) victims of domestic violence are exempt from the 
131.12  60-month limit on assistance while the individual is complying 
131.13  with an approved safety plan, as defined in section 256J.49, 
131.14  subdivision 11. 
131.15     Notification must be in writing and orally at the time of 
131.16  application and recertification, when the individual is referred 
131.17  to the title IV-D child support agency, and at the beginning of 
131.18  any job training or work placement assistance program. 
131.19     Sec. 63.  [DOMESTIC VIOLENCE; TRAINING PROGRAMS.] 
131.20     The commissioner of human services shall establish 
131.21  mandatory domestic violence and sexual abuse training programs 
131.22  for employees, contractors, subcontractors, and county welfare 
131.23  agencies of the department of human services who work with 
131.24  applicants and recipients.  To the extent possible, the state or 
131.25  local agency shall not refer applicants or recipients to any 
131.26  employer who has not been trained in dealing with issues related 
131.27  to domestic violence and sexual assault. 
131.28     The commissioner shall establish a request for proposals 
131.29  from experts in domestic violence and sexual assault issues to 
131.30  train employees, contractors, and county welfare agency workers 
131.31  on issues of domestic violence and sexual assault.  To the 
131.32  extent possible, the commissioner will integrate training on 
131.33  domestic violence and sexual assault issues with retraining of 
131.34  state and county employees on implementation of the new TANF 
131.35  program. 
131.36     Sec. 64.  [FORECAST OF COSTS REQUIRED.] 
132.1      For the part of the department of human services' budget 
132.2   devoted to assistance to families grants, the commissioner shall 
132.3   forecast the total projected costs of each component activity 
132.4   biannually, as a part of the November and March forecasts.  The 
132.5   total projected costs must also be recognized in the fund 
132.6   balance. 
132.7      Sec. 65.  [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 
132.8      The legislature makes the following findings: 
132.9      (a) The legislature is statutorily required to balance the 
132.10  state budget. 
132.11     (b) The task of balancing the state budget is made 
132.12  difficult in the area of the new federal welfare reform program 
132.13  for needy families due to the dramatic change in program design 
132.14  that this state and all other states must experience, rendering 
132.15  historical data on client behavior, interstate migration, and 
132.16  welfare spending patterns of dubious value. 
132.17     (c) Many states are using the flexibility given to them 
132.18  under the federal welfare reform bill to enact more restrictive 
132.19  programs than Minnesota. 
132.20     (d) Minnesota county human service agencies have reported 
132.21  to the commissioner of human services verified cases of families 
132.22  moving from other states to this state at least in part because 
132.23  this state has higher public assistance benefits. 
132.24     (e) Within the state's limited resources, the legislature 
132.25  wishes to manage funds appropriated under this part to best 
132.26  provide for needy Minnesota families and their children. 
132.27     (f) To that end, the legislature has adopted a policy of 
132.28  requiring families to be in this state for at least 30 days 
132.29  before being eligible for benefits and providing families in 
132.30  which no mandatory member has resided in Minnesota for the 
132.31  previous 12 months a benefit based on the grant they would have 
132.32  received had they applied for benefits in their previous state 
132.33  of residence. 
132.34     (g) Therefore, if the policy designed to make welfare 
132.35  benefits a neutral factor in the decision to move to Minnesota 
132.36  and to best manage the benefit appropriation for needy Minnesota 
133.1   families and their children, while providing a safety net for 
133.2   recent interstate migrants, is enjoined or otherwise prevented 
133.3   from being implemented, the simple residency requirement of 
133.4   section 256J.12 shall continue to be in effect and the 
133.5   commissioner shall do the following:  (1) ratably reduce 
133.6   benefits under AFDC and MFIP-S, but only in an amount sufficient 
133.7   to remain within the forecasted budgets for those programs; 
133.8      (2) notify the fiscal and policy chairs of the house and 
133.9   senate human services committees that the reductions have taken 
133.10  place; and 
133.11     (3) formulate a plan to be presented to the next 
133.12  legislative session. 
133.13     Vendor payments under this paragraph shall be for rent and 
133.14  utilities, up to the limit of the grant amount.  Residual 
133.15  amounts, if any, shall be paid directly to the assistance unit. 
133.16     Sec. 66.  [TRANSFER FUNDING.] 
133.17     Effective July 1, 1997, all funding related to the child 
133.18  care assistance programs under Minnesota Statutes, section 
133.19  256.035, subdivision 8, is transferred to the commissioner of 
133.20  children, families, and learning. 
133.21     Sec. 67.  [SEVERABILITY CLAUSE.] 
133.22     If any provision of this act is enjoined from 
133.23  implementation or found unconstitutional by any court of 
133.24  competent jurisdiction, the remaining provisions shall remain 
133.25  valid and shall be given full effect. 
133.26     Sec. 68.  [TRIBAL EMPLOYMENT AND TRAINING PROGRAM; REPORT.] 
133.27     Subdivision 1.  [AUTHORITY.] The commissioner of human 
133.28  services, in conjunction with Indian tribes in the state, shall 
133.29  develop and present to the legislature a plan for providing 
133.30  state funds in support of a family assistance program 
133.31  administered by Indian tribes who have a reservation in this 
133.32  state and who have federal approval to operate a tribal 
133.33  program.  This plan must identify the primary arrangements 
133.34  needed to effect tribal administration and needed funding, 
133.35  including agreements with a consortium of tribes, that 
133.36  accurately reflects the state funding levels for Indian people 
134.1   as would otherwise be available to MFIP-S program recipients.  
134.2   This plan must be developed consistent with the requirements set 
134.3   forth in the Personal Responsibility and Work Opportunity 
134.4   Reconciliation Act of 1996, Public Law Number 104-193, section 
134.5   412(b)(1)(B).  For purposes of this section, "Indian tribe" 
134.6   means a tribe, band, nation, or other federally recognized group 
134.7   or community of Indians. 
134.8      Subd. 2.  [REPORT TO THE LEGISLATURE.] The plan referred to 
134.9   in subdivision 1 and any resulting proposal for legislation must 
134.10  be presented to the legislature by December 15, 1997. 
134.11     Subd. 3.  [TRIBAL AGREEMENTS.] Once the plan in subdivision 
134.12  1 is presented to and approved by the legislature and signed 
134.13  into law, the commissioner is authorized to enter into 
134.14  agreements with Indian tribes or consortia of tribes consistent 
134.15  with the plan. 
134.16     Subd. 4.  [TRIBAL AND STATE COORDINATION.] The commissioner 
134.17  shall consult with Indian tribes in the state when formulating 
134.18  general policies regarding the implementation of the state's 
134.19  public assistance program operated under title IV-A of the 
134.20  Social Security Act.  The commissioner shall take into 
134.21  consideration circumstances affecting Indians, including 
134.22  circumstances identified by Indian tribes, when designing the 
134.23  state's program.  The state shall provide Indians with equitable 
134.24  access to assistance as provided in the Personal Responsibility 
134.25  and Work Opportunity Reconciliation Act of 1996, Public Law 
134.26  Number 104-193, section 402(a)(5). 
134.27     Subd. 5.  [EMPLOYMENT TRAINING.] Nothing in this section 
134.28  precludes any Indian tribe in this state from participating in 
134.29  employment and training or child care programs otherwise 
134.30  available by law to Indian tribes under: 
134.31     (1) the MFIP program under Minnesota Statutes, sections 
134.32  256.031 to 256.0351, or its successor program; 
134.33     (2) project STRIDE under Minnesota Statutes, section 
134.34  256.736, or its successor program; 
134.35     (3) child care programs for tribal program participants; 
134.36  and 
135.1      (4) the Minnesota injury protection program. 
135.2      Subd. 6.  [TRIBAL SOVEREIGN STATUS.] Nothing in this 
135.3   section shall be construed to waive, modify, expand, or diminish 
135.4   the sovereignty of federally recognized Indian tribes, nor shall 
135.5   any Indian tribes be required in any way to deny their 
135.6   sovereignty or waive their immunities except as mandated by 
135.7   federal law as a requirement of entering into an agreement with 
135.8   the state under this section. 
135.9      Subd. 7.  [PLANNING.] The commissioner of human services 
135.10  shall assist tribes, in a collaborative effort, with the 
135.11  development of the plan under subdivision 1 and efforts 
135.12  associated with such development.  Such efforts shall include, 
135.13  but not be limited to, data collection regarding:  receipt of 
135.14  public assistance by Indians, unemployment rates within tribal 
135.15  service delivery areas, and dissemination of information and 
135.16  research.  The commissioner shall provide technical assistance 
135.17  to tribal welfare reform task force members and tribes regarding 
135.18  the implementation and operation of public assistance programs 
135.19  and assistance to tribes to develop the plan under subdivision 1.
135.20     Sec. 69.  [REPAYMENT OF POST-SECONDARY EDUCATION FUNDS; 
135.21  PROPOSAL REQUIRED.] 
135.22     By February 15, 1998, the commissioner of human services, 
135.23  in consultation with representatives of county agencies, must 
135.24  develop and submit to the legislature a proposal that specifies 
135.25  a methodology for the repayment of funds under Minnesota 
135.26  Statutes 1996, section 256J.53, subdivision 4.  The 
135.27  commissioner's proposal must not apply the methodology 
135.28  retroactively to participants who had a post-secondary education 
135.29  or training program approved under that section before the date 
135.30  that the commissioner's proposal, if enacted, becomes effective. 
135.31     Sec. 70.  [REPEALER.] 
135.32     (a) Minnesota Statutes 1996, sections 256.12, subdivisions 
135.33  9, 10, 14, 15, 19, 20, 21, 22, and 23; 256.72; 256.73, 
135.34  subdivisions 1, 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 10, and 
135.35  11; 256.7341; 256.736, subdivision 18; 256.7365, subdivisions 1, 
135.36  2, 3, 4, 5, 6, 7, and 9; 256.7366; 256.737; 256.738; 256.7381; 
136.1   256.7382; 256.7383; 256.7384; 256.7385; 256.7386; 256.7387; 
136.2   256.7388; 256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 
136.3   256.745; 256.75; 256.76, subdivision 1; 256.78; 256.80; 256.81; 
136.4   256.82; 256.84; 256.85; 256.86; 256.863; 256.871; and 256.879, 
136.5   are repealed effective July 1, 1998. 
136.6      (b) From January 1, 1998, to March 31, 1998, the statutory 
136.7   sections listed in paragraph (a) apply only in counties that 
136.8   operate an MFIP field trial and that continue to provide project 
136.9   STRIDE services to members of the MFIP comparison group, and in 
136.10  those counties that have not completed conversion to MFIP-S 
136.11  employment and training services. 
136.12     (c) From April 1, 1998, through June 30, 1998, the sections 
136.13  listed in paragraph (a) are effective only in counties that 
136.14  operate an MFIP field trial and that continue to provide project 
136.15  STRIDE services to members of the comparison group. 
136.16     Sec. 71.  [NOTICE OF EARLY IMPLEMENTATION.] 
136.17     Notwithstanding any inconsistent provisions of sections 
136.18  256.12, 256.72 to 256.87, and 256D.01 to 256D.21, a county may 
136.19  implement the provisions of chapter 256J or 256K before January 
136.20  1, 1998, if the county submits a written notice to the 
136.21  commissioner of human services that specifies the date of 
136.22  implementation and concisely outlines the county's plan for 
136.23  early implementation.  Upon receipt of a county's notice, the 
136.24  commissioner must review the county's plan for feasibility of 
136.25  implementation.  The commissioner's review must occur in a 
136.26  timely manner.  The commissioner may request modifications to 
136.27  the county's plan to increase its feasibility.  When the 
136.28  commissioner agrees with the county's plan, the commissioner 
136.29  must publish a notice in the state register that specifies the 
136.30  date upon which the MFIP-S program replaces the AFDC and family 
136.31  GA programs in the county. 
136.32     Sec. 72.  [EFFECTIVE DATE.] 
136.33     Subdivision 1.  [GENERAL EFFECTIVE DATE.] Except as 
136.34  specified in subdivision 2, article 1 is effective July 1, 1997. 
136.35     Subd. 2.  [TRANSITION EFFECTIVE DATE.] The sections 
136.36  specified in this article are effective January 1, 1998, except 
137.1   that for counties who elect to begin operation of MFIP-S prior 
137.2   to January 1, 1998, these sections take effect for each county 
137.3   on the date that MFIP-S is implemented in the county. 
137.4                              ARTICLE 2
137.5                          WORK FIRST PROGRAM
137.6      Section 1.  [256K.01] [WORK FIRST PROGRAM.] 
137.7      Subdivision 1.  [CITATION.] Sections 256K.01 to 256K.09 may 
137.8   be cited as the work first program. 
137.9      Subd. 2.  [DEFINITIONS.] As used in sections 256K.01 to 
137.10  256K.09, the following words have the meanings given them. 
137.11     (a) "Applicant" means an individual who has submitted a 
137.12  request for assistance and has never received an AFDC, MFIP-S or 
137.13  a family general assistance grant through the MAXIS computer 
137.14  system as a caregiver, or an applicant whose AFDC, MFIP-S or 
137.15  family general assistance application was denied or benefits 
137.16  were terminated due to noncompliance with work first 
137.17  requirements. 
137.18     (b) "Application date" means the date any Minnesota county 
137.19  agency receives a signed and dated combined application form 
137.20  Part I. 
137.21     (c) "CAF" means a combined application form on which people 
137.22  apply for multiple assistance programs, including:  cash 
137.23  assistance, refugee cash assistance, Minnesota supplemental aid, 
137.24  food stamps, medical assistance, general assistance medical 
137.25  care, emergency assistance, emergency medical assistance, and 
137.26  emergency general assistance medical care. 
137.27     (d) "Caregiver" means a parent or eligible adult, including 
137.28  a pregnant woman, who is part of the assistance unit that has 
137.29  applied for or is receiving an AFDC, MFIP-S, or family general 
137.30  assistance grant.  In a two-parent family, both parents are 
137.31  caregivers. 
137.32     (e) "Child support" means a voluntary or court-ordered 
137.33  payment by absent parents in an assistance unit. 
137.34     (f) "Commissioner" means the commissioner of human services.
137.35     (g) "Department" means the department of human services. 
137.36     (h) "Employability development plan" or "EDP" means a plan 
138.1   developed by the applicant, with advice from the employment 
138.2   advisor, for the purposes of identifying an employment goal, 
138.3   improving work skills through certification or education, 
138.4   training or skills recertification, and which addresses barriers 
138.5   to employment. 
138.6      (i) "EDP status report form" means a program form on which 
138.7   deferred participants indicate what has been achieved in the 
138.8   participant's employability development plan and the types of 
138.9   problems encountered. 
138.10     (j) "Employment advisor" means a program staff member who 
138.11  is qualified to assist the participant to develop a job search 
138.12  or employability development plan, match the participant with 
138.13  existing job openings, refer the participant to employers, and 
138.14  has an extensive knowledge of employers in the area. 
138.15     (k) "Financial specialist" means a program staff member who 
138.16  is trained to explain the benefits offered under the program, 
138.17  determine eligibility for different assistance programs, and 
138.18  broker other resources from employers and the community. 
138.19     (l) "Job network" means individuals that a person may 
138.20  contact to learn more about particular companies, inquire about 
138.21  job leads, or discuss occupational interests and expertise. 
138.22     (m) "Job search allowance" means the amount of financial 
138.23  assistance needed to support job search. 
138.24     (n) "Job search plan" or "JSP" means the specific plan 
138.25  developed by the applicant, with advice from the employment 
138.26  advisor, to secure a job as soon as possible, and focus the 
138.27  scope of the job search process and other activities.  
138.28     (o) "JSP status report form" means a program form on which 
138.29  participants indicate the number of submitted job applications, 
138.30  job interviews held, jobs offered, other outcomes achieved, 
138.31  problems encountered, and the total number of hours spent on job 
138.32  search per week. 
138.33     (p) "Participant" means a recipient who is required to 
138.34  participate in the work first program. 
138.35     (q) "Program" means the work first program. 
138.36     (r) "Provider" means an employment and training agency 
139.1   certified by the commissioner of economic security under section 
139.2   268.871, subdivision 1. 
139.3      (s) "Self-employment" means employment where people work 
139.4   for themselves rather than an employer, are responsible for 
139.5   their own work schedule, and do not have taxes or FICA withheld 
139.6   by an employer. 
139.7      (t) "Self-sufficiency agreement" means the agreement 
139.8   between the county or its representative and the applicant that 
139.9   describes the activities that the applicant must conduct and the 
139.10  necessary services and aid to be furnished by the county to 
139.11  enable the individual to meet the purpose of either the job 
139.12  search plan or employability development plan. 
139.13     (u) "Subsidized job" means a job that is partly reimbursed 
139.14  by the provider for cost of wages for participants in the 
139.15  program. 
139.16     Subd. 3.  [ESTABLISHING WORK FIRST PROGRAM.] The 
139.17  commissioners of human services and economic security may 
139.18  develop and establish pilot projects which require applicants 
139.19  for aid under AFDC, MFIP-S or family general assistance to meet 
139.20  the requirements of the work first program.  The purpose of the 
139.21  program is to: 
139.22     (1) ensure that the participant is working as early as 
139.23  possible; 
139.24     (2) promote greater opportunity for economic self-support, 
139.25  participation, and mobility in the work force; and 
139.26     (3) minimize the risk for long-term welfare dependency. 
139.27     Subd. 4.  [PROGRAM ADMINISTRATION.] The program must be 
139.28  administered in a way that, in addition to the county agency, 
139.29  other sectors in the community such as employers from the public 
139.30  and private sectors, not-for-profit organizations, educational 
139.31  and social service agencies, labor unions, and neighborhood 
139.32  associations are involved. 
139.33     Subd. 5.  [PROGRAM DESIGN.] The program shall meet the 
139.34  following principles: 
139.35     (1) work is the primary means of economic support; 
139.36     (2) the individual's potential is reviewed during the 
140.1   application process to determine how to approach the job market 
140.2   aggressively; 
140.3      (3) public aid such as cash and medical assistance, child 
140.4   care, child support assurance, and other cash benefits are used 
140.5   to support intensive job search and immediate work; and 
140.6      (4) maximum use is made of tax credits to supplement income.
140.7      Subd. 6.  [DUTIES OF COMMISSIONER.] In addition to any 
140.8   other duties imposed by law, the commissioner shall: 
140.9      (1) establish the program according to sections 256K.01 to 
140.10  256K.09 and allocate money as appropriate to pilot counties 
140.11  participating in the program; 
140.12     (2) provide systems development and staff training; 
140.13     (3) accept and supervise the disbursement of any funds that 
140.14  may be provided from other sources for use in the demonstration 
140.15  program; and 
140.16     (4) direct a study to safeguard the interests of children. 
140.17     Subd. 7.  [DUTIES OF COUNTY AGENCY.] The county agency 
140.18  shall: 
140.19     (1) collaborate with the commissioners of human services 
140.20  and economic security and other agencies to develop, implement, 
140.21  and evaluate the demonstration of the work first program; 
140.22     (2) operate the work first program in partnership with 
140.23  private and public employers, local industry councils, labor 
140.24  unions, and employment, educational, and social service 
140.25  agencies, according to subdivision 4; and 
140.26     (3) ensure that program components such as client 
140.27  orientation, immediate job search, job development, creation of 
140.28  temporary public service jobs, job placements, and postplacement 
140.29  follow-up are implemented according to the work first program. 
140.30     Subd. 8.  [DUTIES OF PARTICIPANT.] To be eligible for an 
140.31  AFDC, MFIP-S or family general assistance benefit, a participant 
140.32  shall cooperate with the county agency, the provider, and the 
140.33  participant's employer in all aspects of the program. 
140.34     Sec. 2.  [256K.02] [PROGRAM PARTICIPANTS; PROGRAM 
140.35  EXPECTATIONS.] 
140.36     All applicants selected for participation are expected to 
141.1   meet the requirements under the work first program.  Payments 
141.2   for rent and utilities up to the AFDC, MFIP-S or family general 
141.3   assistance benefits to which the assistance unit is entitled 
141.4   will be vendor paid for as many months as the applicant is 
141.5   eligible or six months, whichever comes first.  The residual 
141.6   amount after vendor payment, if any, will be paid to the 
141.7   applicant, unless it is used as a wage subsidy under section 
141.8   256K.09, subdivision 2. 
141.9      Sec. 3.  [256K.03] [PROGRAM REQUIREMENTS.] 
141.10     Subdivision 1.  [NOTIFICATION OF PROGRAM.] Except for the 
141.11  provisions in this section, the provisions for the AFDC, MFIP-S, 
141.12  and family general assistance application process shall be 
141.13  followed.  Within two days after receipt of a completed combined 
141.14  application form, the county agency must refer to the provider 
141.15  the applicant who meets the conditions under section 256K.02, 
141.16  and notify the applicant in writing of the program including the 
141.17  following provisions: 
141.18     (1) notification that, as part of the application process, 
141.19  applicants are required to attend orientation, to be followed 
141.20  immediately by a job search; 
141.21     (2) the program provider, the date, time, and location of 
141.22  the scheduled program orientation; 
141.23     (3) the procedures for qualifying for and receiving 
141.24  benefits under the program; 
141.25     (4) the immediate availability of supportive services, 
141.26  including, but not limited to, child care, transportation, 
141.27  medical assistance, and other work-related aid; and 
141.28     (5) the rights, responsibilities, and obligations of 
141.29  participants in the program, including, but not limited to, the 
141.30  grounds for exemptions and deferrals, the consequences for 
141.31  refusing or failing to participate fully, and the appeal process.
141.32     Subd. 2.  [PROGRAM ORIENTATION.] The county must give a 
141.33  face-to-face orientation regarding the program to the applicant 
141.34  within five days after the date of application.  The orientation 
141.35  must be designed to inform the applicant of: 
141.36     (1) the importance of locating and obtaining a job as soon 
142.1   as possible; 
142.2      (2) benefits to be provided to support work; 
142.3      (3) the manner by which benefits shall be paid; 
142.4      (4) how other supportive services such as medical 
142.5   assistance, child care, transportation, and other work-related 
142.6   aid shall be available to support job search and work; 
142.7      (5) the consequences for failure without good cause to 
142.8   comply with program requirements; and 
142.9      (6) the appeal process. 
142.10     Subd. 3.  [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 
142.11  SPECIALIST.] At the end of orientation, the provider must assign 
142.12  an employment advisor and a financial specialist to the 
142.13  applicant.  With advice from the employment advisor, the 
142.14  applicant must develop a job search plan based on existing job 
142.15  markets, prior employment, work experience, and transferable 
142.16  work skills, unless exempt under subdivision 5.  A job search 
142.17  must be planned and conducted for a period of up to eight 
142.18  consecutive weeks from the date of application and for at least 
142.19  32 hours per week.  The types of and target number of job 
142.20  openings to be pursued per week must be written in the job 
142.21  search plan.  The following activities may be included in the 
142.22  job search plan: 
142.23     (1) motivational counseling; 
142.24     (2) job networking or training on how to locate job 
142.25  openings; 
142.26     (3) development of a personal resume; and 
142.27     (4) information on how to conduct job interviews and 
142.28  establish a personal job network. 
142.29     Following the development of the job search plan or the 
142.30  employability development plan under subdivision 8, the 
142.31  financial specialist must interview the applicant to determine 
142.32  eligibility for and the extent of benefits under sections 
142.33  256K.06 and 256K.07 to support the job search or employability 
142.34  development plan.  The provider must attach to the appropriate 
142.35  plan the summary of the necessary enabling services and benefits 
142.36  to be furnished by the provider.  The provider or its 
143.1   representative and the applicant must sign the plan, with its 
143.2   attachment, to indicate a self-sufficiency agreement between the 
143.3   provider and the participant. 
143.4      Subd. 4.  [IMMEDIATE JOB SEARCH.] An applicant must be 
143.5   required to begin job search within seven days after the date of 
143.6   application for at least 32 hours per week for up to eight 
143.7   weeks, unless exempt under subdivision 5 or deferred under 
143.8   subdivision 8.  For an applicant who is working at least 20 
143.9   hours per week, job search shall consist of 12 hours per week 
143.10  for up to eight weeks.  Within the first five days of job 
143.11  search, the applicant is required to initiate informational 
143.12  contacts with prospective employers, generate additional job 
143.13  leads from the job network, review references and experiences 
143.14  from previous employment, and carry out the other activities 
143.15  under the job search plan developed under subdivision 3. 
143.16     Subd. 5.  [EXEMPTION CATEGORIES.] (a) The applicant will be 
143.17  exempt from the job search requirements and development of a job 
143.18  search plan and an employability development plan under 
143.19  subdivisions 3, 4, and 8 if the applicant belongs to any of the 
143.20  following groups: 
143.21     (1) caregivers under age 20 who have not completed a high 
143.22  school education and are attending high school on a full-time 
143.23  basis; 
143.24     (2) individuals who are age 60 or older; 
143.25     (3) individuals who are suffering from a professionally 
143.26  certified permanent or temporary illness, injury, or incapacity 
143.27  which is expected to continue for more than 30 days and which 
143.28  prevents the person from obtaining or retaining employment; 
143.29     (4) caregivers whose presence in the home is needed because 
143.30  of illness or incapacity of another member in the household; 
143.31     (5) women who are pregnant, if it has been medically 
143.32  verified that the child is expected to be born within the next 
143.33  six months; 
143.34     (6) caregivers or other caregiver relatives of a child 
143.35  under the age of three who personally provide full-time care for 
143.36  the child; 
144.1      (7) individuals employed at least 30 hours per week; 
144.2      (8) individuals for whom participation would require a 
144.3   round trip commuting time by available transportation of more 
144.4   than two hours, excluding transporting of children for child 
144.5   care; 
144.6      (9) individuals for whom lack of proficiency in English is 
144.7   a barrier to employment, provided such individuals are 
144.8   participating in an intensive program which lasts no longer than 
144.9   six months and is designed to remedy their language deficiency; 
144.10     (10) individuals who, because of advanced age or lack of 
144.11  ability, are incapable of gaining proficiency in English, as 
144.12  determined by the county social worker, shall continue to be 
144.13  exempt under this subdivision and are not subject to the 
144.14  requirement that they be participating in a language program; 
144.15     (11) individuals under such duress that they are incapable 
144.16  of participating in the program, as determined by the county 
144.17  social worker; or 
144.18     (12) individuals in need of refresher courses for purposes 
144.19  of obtaining professional certification or licensure. 
144.20     (b) In a two-parent family, only one caregiver may be 
144.21  exempted under paragraph (a), clauses (4) and (6). 
144.22     Subd. 6.  [COUNTY DUTIES.] The county must act on the 
144.23  application within 30 days of the application date.  If the 
144.24  applicant is not eligible, the application will be denied and 
144.25  the county must notify the applicant of the denial in writing.  
144.26  An applicant whose application has been denied may be allowed to 
144.27  complete the job search plan; however, supportive services will 
144.28  not be provided. 
144.29     Subd. 7.  [JOB SEARCH PLAN STATUS REPORT.] The applicant or 
144.30  participant must submit a completed job search plan status 
144.31  report form to the employment advisor every two weeks during the 
144.32  job search process, with the first completed form due 21 days 
144.33  after the date of application. 
144.34     Subd. 8.  [EMPLOYABILITY DEVELOPMENT PLAN.] At the 
144.35  discretion and approval of the employment advisor, the applicant 
144.36  may be deferred from the requirement to conduct at least 32 
145.1   hours of job search per week for up to eight consecutive weeks, 
145.2   if during the development of the job search plan, the applicant 
145.3   is determined to: 
145.4      (1) not have worked within the past 12 months and not have 
145.5   a high school or a general equivalency diploma provided the 
145.6   applicant agrees to develop and carry out an employability 
145.7   development plan instead of job search, and concurrently work 
145.8   for at least 16 hours per week in a temporary public service 
145.9   job.  The employability development plan must include the 
145.10  employment goals and specific outcomes the participant must 
145.11  achieve; 
145.12     (2) be within six months of completing any post-secondary 
145.13  training program, provided that the applicant agrees to develop 
145.14  and carry out an employability development plan instead of a job 
145.15  search, and concurrently work for a minimum number of hours per 
145.16  week in a temporary public service job.  The employability 
145.17  development plan must include the employment goal and specific 
145.18  outcomes that the participant must achieve.  The applicant that 
145.19  is deferred under this subdivision may choose to work in a job 
145.20  other than a public service job for a minimum number of hours 
145.21  per week rather than in a temporary public service job.  For 
145.22  individuals who are participating in an educational program 
145.23  under this clause, and who are attending school full time as 
145.24  determined by the institution, there is no work requirement.  
145.25  For individuals participating in an educational program on a 
145.26  part-time basis as determined by the institution, the minimum 
145.27  number of hours that a participant must work shall be decreased 
145.28  as the participant increases the number of credit hours taken, 
145.29  except that the participant shall not be required to work more 
145.30  than eight hours per week. 
145.31     During vacation periods of one month or more, the 16-hour 
145.32  per week minimum work requirement shall apply.  The applicant 
145.33  may be deferred for up to six months.  At the end of the 
145.34  deferment period, the participant must develop a job search plan 
145.35  and conduct at least 32 hours of job search per week for up to 
145.36  eight consecutive weeks, and submit reports as required under 
146.1   subdivisions 3 and 4; or 
146.2      (3) be in treatment for chemical dependency, be a victim of 
146.3   domestic abuse, or be homeless, provided that the applicant 
146.4   agrees to develop an employability development plan instead of a 
146.5   job search plan, and immediately follow through with the 
146.6   activities in the employability development plan.  The 
146.7   employability development plan must include specific outcomes 
146.8   that the applicant must achieve for the duration of the 
146.9   employability development plan and activities which are needed 
146.10  to address the issues identified.  Under this clause, the 
146.11  applicant may be deferred for up to eight weeks. 
146.12     Subd. 9.  [EDP STATUS REPORT.] The participant who is 
146.13  deferred from job search under subdivision 8 must submit a 
146.14  completed employability development plan status report form to 
146.15  the employment advisor every 14 days as long as the participant 
146.16  continues to be deferred, with the first completed form due 21 
146.17  days after the date of application. 
146.18     Subd. 10.  [JOB OFFER.] The participant must not refuse any 
146.19  job offer, provided that the job is within the participant's 
146.20  physical and mental abilities, pays hourly gross wages of not 
146.21  less than the applicable state or federal minimum wage, and 
146.22  meets health and safety standards set by federal, state, and 
146.23  county agencies.  If a job is offered, the participant must 
146.24  inform the provider immediately to redetermine eligibility for 
146.25  and extent of benefits and services to support work.  To enhance 
146.26  job retention, the provider may provide services such as 
146.27  motivational counseling or on-site problem solving for up to six 
146.28  months.  The participant who has completed at least six months 
146.29  of work in a nonsubsidized job shall be encouraged to 
146.30  participate in a training program that would improve the 
146.31  participant's ability to obtain a job that pays a higher wage. 
146.32     Subd. 11.  [DUTY TO REPORT.] The participant must 
146.33  immediately inform the provider regarding any changes related to 
146.34  the participant's employment status. 
146.35     Subd. 12.  [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 
146.36  SERVICE JOB.] (a) If after the completion of the maximum eight 
147.1   weeks of job search the participant has failed to secure a 
147.2   nonsubsidized or a subsidized job for at least 32 hours per 
147.3   week, or does not earn a net income from self-employment that is 
147.4   equal to at least the AFDC, MFIP-S or family general assistance 
147.5   monthly grant for the household size, whichever is applicable, 
147.6   the participant is required to work in a temporary public 
147.7   service job for up to 67 working days for (1) at least 32 hours 
147.8   per week, or (2) a period equivalent to the result of dividing 
147.9   the monthly grant amount which the participant would otherwise 
147.10  receive, by the federal hourly minimum wage, or applicable 
147.11  hourly state minimum wage, or the hourly rate of pay for 
147.12  individuals employed in the same occupation at the site, 
147.13  whichever is highest.  If the result is more than 128 hours per 
147.14  month, the participant's requirement to work in a temporary 
147.15  public service job shall not be more than 32 hours per week. 
147.16     (b) Within seven days from the date of application, the 
147.17  participant who is deferred under subdivision 8, clause (1) or 
147.18  (2), and is participating in an educational program on a 
147.19  part-time basis must work in a temporary public service job as 
147.20  required under subdivision 8, clause (2). 
147.21     (c) The provider shall strive to match the profile of the 
147.22  participant with the needs of the employers that are 
147.23  participating in a temporary jobs program under section 256K.05. 
147.24     Sec. 4.  [256K.04] [JOB DEVELOPMENT AND SUBSIDY.] 
147.25     Subdivision 1.  [JOB INVENTORY.] The provider must develop 
147.26  an inventory of job openings including full-time, part-time, 
147.27  permanent, temporary or seasonal, and training positions in 
147.28  partnership with private and public employers, local industry 
147.29  councils, and employment agencies.  To the extent possible, the 
147.30  inventory must include specific information regarding job 
147.31  openings, must be updated on a weekly basis, and must be 
147.32  available to all participants on a daily basis. 
147.33     Subd. 2.  [JOB SUBSIDY.] The county may use all or part of 
147.34  the AFDC, MFIP-S or family general assistance benefit as a 
147.35  subsidy to employers for the purpose of providing work 
147.36  experience or training to the participant who has completed the 
148.1   job search plan, provided that: 
148.2      (1) the job to be subsidized is permanent and full time, 
148.3   and pays an hourly rate of at least $6 per hour; 
148.4      (2) the employer agrees to retain the participant after 
148.5   satisfactory completion of the work experience or training 
148.6   period; and 
148.7      (3) the participant has first tried to secure a 
148.8   nonsubsidized job by following the job search plan.  
148.9      The subsidy may be available for up to six months. 
148.10     Sec. 5.  [256K.05] [TEMPORARY JOBS PROGRAM.] 
148.11     Subdivision 1.  [PROGRAM ESTABLISHED.] The provider must 
148.12  establish and operate a program to provide temporary jobs to 
148.13  participants who, after eight weeks of job search, are not hired 
148.14  into a nonsubsidized or a subsidized job, or are deferred under 
148.15  section 256K.03, subdivision 8.  The temporary jobs to be 
148.16  created under this section must be public service jobs that 
148.17  serve a useful public service such as:  health, social service, 
148.18  environmental protection, education, urban and rural development 
148.19  and redevelopment, welfare, recreation, public facilities, 
148.20  public safety, community service, services to the aged or 
148.21  disabled citizens, and child care. 
148.22     Subd. 2.  [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 
148.23  JOBS.] The provider must assign the participant who (1) is 
148.24  within completion of the required eight weeks of job search and 
148.25  has failed to secure a nonsubsidized or a subsidized job for at 
148.26  least 32 hours per week, or (2) does not earn a net income from 
148.27  self-employment that is equal to at least the AFDC, MFIP-S or 
148.28  family general assistance monthly grant for the household size, 
148.29  whichever is applicable, to a temporary public service job.  The 
148.30  assignment must be made seven days before the end of the job 
148.31  search and be based on section 256K.03, subdivision 12.  The 
148.32  participant that is deferred under section 256K.03, subdivision 
148.33  8, will be assigned by the provider to a temporary public 
148.34  service job within seven days after the application. 
148.35     Subd. 3.  [PARTICIPANT'S STATUS.] The participant who is 
148.36  working in a temporary public service job under this section is 
149.1   not considered an employee for the purposes of unemployment 
149.2   insurance compensation, retirement, or civil service laws, and 
149.3   shall not perform work ordinarily performed by a public employee.
149.4      Subd. 4.  [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 
149.5   discretion of the provider, the participant who is working in a 
149.6   temporary public service job under section 256K.03, subdivision 
149.7   12, may be required to continue to look for a job for up to 
149.8   eight hours per week in addition to working.  The participant 
149.9   who is working at least 20 hours per week but less than 32 hours 
149.10  per week in a nonsubsidized or subsidized job may be required to 
149.11  look for a job for up to 20 hours per week in lieu of work in 
149.12  the temporary public service job so that the total hours of work 
149.13  and job search is not more than 40 hours per week. 
149.14     Subd. 5.  [EXCUSED ABSENCES.] The participant who is 
149.15  working in a temporary public service job may be allowed excused 
149.16  absences from the assigned temporary job site up to eight hours 
149.17  per month.  For purposes of this subdivision, "excused absence" 
149.18  means absence due to temporary illness or injury of the 
149.19  caregiver or a member of the caregiver's family, the 
149.20  unavailability of licensed child care or unavailability of 
149.21  transportation needed to go to and from the work site, a job 
149.22  interview, or a nonmedical emergency.  For purposes of this 
149.23  subdivision, "emergency" means a sudden, unexpected occurrence 
149.24  or situation of a serious or urgent nature that requires action. 
149.25     Subd. 6.  [MOVE TO A DIFFERENT COUNTY.] If the applicant or 
149.26  recipient who is required to participate in the work first 
149.27  program moves to a different county in this state, the benefits 
149.28  and enabling services agreed upon in the self-sufficiency 
149.29  agreement shall be provided by the pilot county where the 
149.30  applicant or recipient originated, provided the move was part of 
149.31  the job search or employability development plan.  If the 
149.32  applicant or recipient is moving to a different county for 
149.33  failure to comply with the requirements of the work first 
149.34  program, the applicant or recipient will not be eligible for 
149.35  MFIP-S in this state for at least six months from the date of 
149.36  the move. 
150.1      Sec. 6.  [256K.06] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 
150.2   RENT AND UTILITIES VENDOR PAYMENT.] 
150.3      Payments for rent and utilities up to the amount of AFDC, 
150.4   MFIP-S, or family general assistance benefits to which the 
150.5   assistance unit is entitled shall be provided in the form of 
150.6   vendor payments for as many months as the applicant is eligible 
150.7   or six months, whichever comes first.  The residual amount after 
150.8   vendor payment, if any, will be paid to the AFDC, MFIP-S or 
150.9   family general assistance recipient, unless it is used as a wage 
150.10  subsidy under section 256K.09, subdivision 2.  This provision 
150.11  shall apply to all applicants including those meeting the 
150.12  exemption categories under section 256K.03, subdivision 5, or 
150.13  deferral categories under section 256K.03, subdivision 8.  To 
150.14  the extent needed, a job search allowance shall be provided for 
150.15  up to eight weeks to cover expenses related to the job search.  
150.16  Before the job search allowance is issued, it must be approved 
150.17  by the employment advisor and financial specialist, and clearly 
150.18  described in the job search plan. 
150.19     Sec. 7.  [256K.07] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 
150.20  ASSISTANCE, AND CHILD CARE.] 
150.21     The participant shall be treated as an AFDC, MFIP-S or 
150.22  family general assistance recipient, whichever is applicable, 
150.23  for food stamps, medical assistance, and child care eligibility 
150.24  purposes.  The participant who leaves the program as a result of 
150.25  increased earnings from employment shall be eligible for 
150.26  transitional Medical Assistance and child care without regard to 
150.27  AFDC, MFIP-S or family general assistance receipt in three of 
150.28  the six months preceding ineligibility. 
150.29     Sec. 8.  [256K.08] [SANCTIONS AND APPEAL PROCESS.] 
150.30     Subdivision 1.  [GOOD CAUSE.] (a) For purposes of this 
150.31  subdivision, "good cause" means absence due to temporary illness 
150.32  or injury of the participant or a member of the participant's 
150.33  family, the unavailability of licensed child care or 
150.34  unavailability of transportation needed to attend orientation or 
150.35  conduct job search, or a nonmedical emergency as defined under 
150.36  section 256K.05, subdivision 5. 
151.1      (b) The applicant who is required, but fails, without good 
151.2   cause, to participate in orientation, complete the job search 
151.3   plan or employability development plan, and comply with the job 
151.4   search requirements under section 256K.03, prior to being 
151.5   eligible for AFDC, MFIP-S or family general assistance shall be 
151.6   denied benefits.  The applicant will not be eligible for 
151.7   benefits in this state for at least six months. 
151.8      (c) If, after receiving a written warning from the county, 
151.9   the participant fails, without good cause, to conduct at least 
151.10  32 hours of job search per week in any given two-week period, 
151.11  the participant will be immediately required to work for at 
151.12  least 16 hours per week in a temporary public service job.  The 
151.13  required 32 hours per week of job search will be reduced to 16 
151.14  hours. 
151.15     (d) If the participant who is deferred under section 
151.16  256K.03, subdivision 8, fails to comply with the activities 
151.17  described in the employability development plan, the participant 
151.18  will lose the deferment status, provided that the participant 
151.19  has received at least two written warnings from the provider. 
151.20     (e) If the participant refuses to work in a temporary 
151.21  public service job, or is terminated from a temporary public 
151.22  service job for failure to work, benefits to the assistance unit 
151.23  shall be terminated and the participant shall not be eligible 
151.24  for aid under the MFIP-S program for at least six months from 
151.25  the date of refusal or termination.  If the participant, before 
151.26  completing at least four consecutive months of employment, 
151.27  voluntarily quits or is terminated from a nonsubsidized or a 
151.28  subsidized job, the participant shall immediately be assigned to 
151.29  work in a temporary public service job for at least 32 hours per 
151.30  week for up to 67 working days unless the participant is hired 
151.31  or rehired into a nonsubsidized or subsidized job. 
151.32     Subd. 2.  [NOTICE OF SANCTIONS.] If the county determines 
151.33  that the participant has failed or refused without good cause, 
151.34  as defined in subdivision 1, to cooperate with the program 
151.35  requirements, the county shall inform the participant in writing 
151.36  of its intent to impose an applicable sanction listed under 
152.1   subdivision 1 and the opportunity to have a conciliation 
152.2   conference upon request and within five days of the notice 
152.3   before a sanction is imposed. 
152.4      Sec. 9.  [256K.09] [FUNDING.] 
152.5      Subdivision 1.  [LEVERAGING GRANT AMOUNT TO SECURE OTHER 
152.6   FUNDS.] The county agency or the provider, in cooperation with 
152.7   the department, may leverage the grant amount to secure other 
152.8   funds from employers, foundations, and the community for the 
152.9   purpose of developing additional components to benefit children 
152.10  and improve the program. 
152.11     Subd. 2.  [EMPLOYER REIMBURSEMENT.] The employer shall be 
152.12  reimbursed for wages paid to participants under section 256K.04, 
152.13  subdivision 2. 
152.14     Sec. 10.  [REPEALER.] 
152.15     Minnesota Statutes 1996, sections 256.7351; 256.7352; 
152.16  256.7353; 256.7354; 256.7355; 256.7356; 256.7357; 256.7358; and 
152.17  256.7359, are repealed. 
152.18     Sec. 11.  [EFFECTIVE DATE.] 
152.19     Article 2 is effective July 1, 1997. 
152.20                             ARTICLE 3
152.21                     ASSISTANCE PROGRAM CHANGES
152.22     Section 1.  Minnesota Statutes 1996, section 256.01, 
152.23  subdivision 2, is amended to read: 
152.24     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
152.25  section 241.021, subdivision 2, the commissioner of human 
152.26  services shall: 
152.27     (1) Administer and supervise all forms of public assistance 
152.28  provided for by state law and other welfare activities or 
152.29  services as are vested in the commissioner.  Administration and 
152.30  supervision of human services activities or services includes, 
152.31  but is not limited to, assuring timely and accurate distribution 
152.32  of benefits, completeness of service, and quality program 
152.33  management.  In addition to administering and supervising human 
152.34  services activities vested by law in the department, the 
152.35  commissioner shall have the authority to: 
152.36     (a) require county agency participation in training and 
153.1   technical assistance programs to promote compliance with 
153.2   statutes, rules, federal laws, regulations, and policies 
153.3   governing human services; 
153.4      (b) monitor, on an ongoing basis, the performance of county 
153.5   agencies in the operation and administration of human services, 
153.6   enforce compliance with statutes, rules, federal laws, 
153.7   regulations, and policies governing welfare services and promote 
153.8   excellence of administration and program operation; 
153.9      (c) develop a quality control program or other monitoring 
153.10  program to review county performance and accuracy of benefit 
153.11  determinations; 
153.12     (d) require county agencies to make an adjustment to the 
153.13  public assistance benefits issued to any individual consistent 
153.14  with federal law and regulation and state law and rule and to 
153.15  issue or recover benefits as appropriate; 
153.16     (e) delay or deny payment of all or part of the state and 
153.17  federal share of benefits and administrative reimbursement 
153.18  according to the procedures set forth in section 256.017; and 
153.19     (f) make contracts with and grants to public and private 
153.20  agencies and organizations, both profit and nonprofit, and 
153.21  individuals, using appropriated funds. 
153.22     (2) Inform county agencies, on a timely basis, of changes 
153.23  in statute, rule, federal law, regulation, and policy necessary 
153.24  to county agency administration of the programs. 
153.25     (3) Administer and supervise all child welfare activities; 
153.26  promote the enforcement of laws protecting handicapped, 
153.27  dependent, neglected and delinquent children, and children born 
153.28  to mothers who were not married to the children's fathers at the 
153.29  times of the conception nor at the births of the children; 
153.30  license and supervise child-caring and child-placing agencies 
153.31  and institutions; supervise the care of children in boarding and 
153.32  foster homes or in private institutions; and generally perform 
153.33  all functions relating to the field of child welfare now vested 
153.34  in the state board of control. 
153.35     (4) Administer and supervise all noninstitutional service 
153.36  to handicapped persons, including those who are visually 
154.1   impaired, hearing impaired, or physically impaired or otherwise 
154.2   handicapped.  The commissioner may provide and contract for the 
154.3   care and treatment of qualified indigent children in facilities 
154.4   other than those located and available at state hospitals when 
154.5   it is not feasible to provide the service in state hospitals. 
154.6      (5) Assist and actively cooperate with other departments, 
154.7   agencies and institutions, local, state, and federal, by 
154.8   performing services in conformity with the purposes of Laws 
154.9   1939, chapter 431. 
154.10     (6) Act as the agent of and cooperate with the federal 
154.11  government in matters of mutual concern relative to and in 
154.12  conformity with the provisions of Laws 1939, chapter 431, 
154.13  including the administration of any federal funds granted to the 
154.14  state to aid in the performance of any functions of the 
154.15  commissioner as specified in Laws 1939, chapter 431, and 
154.16  including the promulgation of rules making uniformly available 
154.17  medical care benefits to all recipients of public assistance, at 
154.18  such times as the federal government increases its participation 
154.19  in assistance expenditures for medical care to recipients of 
154.20  public assistance, the cost thereof to be borne in the same 
154.21  proportion as are grants of aid to said recipients. 
154.22     (7) Establish and maintain any administrative units 
154.23  reasonably necessary for the performance of administrative 
154.24  functions common to all divisions of the department. 
154.25     (8) Act as designated guardian of both the estate and the 
154.26  person of all the wards of the state of Minnesota, whether by 
154.27  operation of law or by an order of court, without any further 
154.28  act or proceeding whatever, except as to persons committed as 
154.29  mentally retarded.  
154.30     (9) Act as coordinating referral and informational center 
154.31  on requests for service for newly arrived immigrants coming to 
154.32  Minnesota. 
154.33     (10) The specific enumeration of powers and duties as 
154.34  hereinabove set forth shall in no way be construed to be a 
154.35  limitation upon the general transfer of powers herein contained. 
154.36     (11) Establish county, regional, or statewide schedules of 
155.1   maximum fees and charges which may be paid by county agencies 
155.2   for medical, dental, surgical, hospital, nursing and nursing 
155.3   home care and medicine and medical supplies under all programs 
155.4   of medical care provided by the state and for congregate living 
155.5   care under the income maintenance programs. 
155.6      (12) Have the authority to conduct and administer 
155.7   experimental projects to test methods and procedures of 
155.8   administering assistance and services to recipients or potential 
155.9   recipients of public welfare.  To carry out such experimental 
155.10  projects, it is further provided that the commissioner of human 
155.11  services is authorized to waive the enforcement of existing 
155.12  specific statutory program requirements, rules, and standards in 
155.13  one or more counties.  The order establishing the waiver shall 
155.14  provide alternative methods and procedures of administration, 
155.15  shall not be in conflict with the basic purposes, coverage, or 
155.16  benefits provided by law, and in no event shall the duration of 
155.17  a project exceed four years.  It is further provided that no 
155.18  order establishing an experimental project as authorized by the 
155.19  provisions of this section shall become effective until the 
155.20  following conditions have been met: 
155.21     (a) The proposed comprehensive plan, including estimated 
155.22  project costs and the proposed order establishing the waiver, 
155.23  shall be filed with the secretary of the senate and chief clerk 
155.24  of the house of representatives at least 60 days prior to its 
155.25  effective date. 
155.26     (b) The secretary of health, education, and welfare of the 
155.27  United States has agreed, for the same project, to waive state 
155.28  plan requirements relative to statewide uniformity. 
155.29     (c) A comprehensive plan, including estimated project 
155.30  costs, shall be approved by the legislative advisory commission 
155.31  and filed with the commissioner of administration.  
155.32     (13) In accordance with federal requirements, establish 
155.33  procedures to be followed by local welfare boards in creating 
155.34  citizen advisory committees, including procedures for selection 
155.35  of committee members. 
155.36     (14) Allocate federal fiscal disallowances or sanctions 
156.1   which are based on quality control error rates for the aid to 
156.2   families with dependent children, medical assistance, or food 
156.3   stamp program in the following manner:  
156.4      (a) One-half of the total amount of the disallowance shall 
156.5   be borne by the county boards responsible for administering the 
156.6   programs.  For the medical assistance and AFDC programs, 
156.7   disallowances shall be shared by each county board in the same 
156.8   proportion as that county's expenditures for the sanctioned 
156.9   program are to the total of all counties' expenditures for the 
156.10  AFDC and medical assistance programs.  For the food stamp 
156.11  program, sanctions shall be shared by each county board, with 50 
156.12  percent of the sanction being distributed to each county in the 
156.13  same proportion as that county's administrative costs for food 
156.14  stamps are to the total of all food stamp administrative costs 
156.15  for all counties, and 50 percent of the sanctions being 
156.16  distributed to each county in the same proportion as that 
156.17  county's value of food stamp benefits issued are to the total of 
156.18  all benefits issued for all counties.  Each county shall pay its 
156.19  share of the disallowance to the state of Minnesota.  When a 
156.20  county fails to pay the amount due hereunder, the commissioner 
156.21  may deduct the amount from reimbursement otherwise due the 
156.22  county, or the attorney general, upon the request of the 
156.23  commissioner, may institute civil action to recover the amount 
156.24  due. 
156.25     (b) Notwithstanding the provisions of paragraph (a), if the 
156.26  disallowance results from knowing noncompliance by one or more 
156.27  counties with a specific program instruction, and that knowing 
156.28  noncompliance is a matter of official county board record, the 
156.29  commissioner may require payment or recover from the county or 
156.30  counties, in the manner prescribed in paragraph (a), an amount 
156.31  equal to the portion of the total disallowance which resulted 
156.32  from the noncompliance, and may distribute the balance of the 
156.33  disallowance according to paragraph (a).  
156.34     (15) Develop and implement special projects that maximize 
156.35  reimbursements and result in the recovery of money to the 
156.36  state.  For the purpose of recovering state money, the 
157.1   commissioner may enter into contracts with third parties.  Any 
157.2   recoveries that result from projects or contracts entered into 
157.3   under this paragraph shall be deposited in the state treasury 
157.4   and credited to a special account until the balance in the 
157.5   account reaches $1,000,000.  When the balance in the account 
157.6   exceeds $1,000,000, the excess shall be transferred and credited 
157.7   to the general fund.  All money in the account is appropriated 
157.8   to the commissioner for the purposes of this paragraph. 
157.9      (16) Have the authority to make direct payments to 
157.10  facilities providing shelter to women and their children 
157.11  pursuant to section 256D.05, subdivision 3.  Upon the written 
157.12  request of a shelter facility that has been denied payments 
157.13  under section 256D.05, subdivision 3, the commissioner shall 
157.14  review all relevant evidence and make a determination within 30 
157.15  days of the request for review regarding issuance of direct 
157.16  payments to the shelter facility.  Failure to act within 30 days 
157.17  shall be considered a determination not to issue direct payments.
157.18     (17) Have the authority to establish and enforce the 
157.19  following county reporting requirements:  
157.20     (a) The commissioner shall establish fiscal and statistical 
157.21  reporting requirements necessary to account for the expenditure 
157.22  of funds allocated to counties for human services programs.  
157.23  When establishing financial and statistical reporting 
157.24  requirements, the commissioner shall evaluate all reports, in 
157.25  consultation with the counties, to determine if the reports can 
157.26  be simplified or the number of reports can be reduced. 
157.27     (b) The county board shall submit monthly or quarterly 
157.28  reports to the department as required by the commissioner.  
157.29  Monthly reports are due no later than 15 working days after the 
157.30  end of the month.  Quarterly reports are due no later than 30 
157.31  calendar days after the end of the quarter, unless the 
157.32  commissioner determines that the deadline must be shortened to 
157.33  20 calendar days to avoid jeopardizing compliance with federal 
157.34  deadlines or risking a loss of federal funding.  Only reports 
157.35  that are complete, legible, and in the required format shall be 
157.36  accepted by the commissioner.  
158.1      (c) If the required reports are not received by the 
158.2   deadlines established in clause (b), the commissioner may delay 
158.3   payments and withhold funds from the county board until the next 
158.4   reporting period.  When the report is needed to account for the 
158.5   use of federal funds and the late report results in a reduction 
158.6   in federal funding, the commissioner shall withhold from the 
158.7   county boards with late reports an amount equal to the reduction 
158.8   in federal funding until full federal funding is received.  
158.9      (d) A county board that submits reports that are late, 
158.10  illegible, incomplete, or not in the required format for two out 
158.11  of three consecutive reporting periods is considered 
158.12  noncompliant.  When a county board is found to be noncompliant, 
158.13  the commissioner shall notify the county board of the reason the 
158.14  county board is considered noncompliant and request that the 
158.15  county board develop a corrective action plan stating how the 
158.16  county board plans to correct the problem.  The corrective 
158.17  action plan must be submitted to the commissioner within 45 days 
158.18  after the date the county board received notice of noncompliance.
158.19     (e) The final deadline for fiscal reports or amendments to 
158.20  fiscal reports is one year after the date the report was 
158.21  originally due.  If the commissioner does not receive a report 
158.22  by the final deadline, the county board forfeits the funding 
158.23  associated with the report for that reporting period and the 
158.24  county board must repay any funds associated with the report 
158.25  received for that reporting period. 
158.26     (f) The commissioner may not delay payments, withhold 
158.27  funds, or require repayment under paragraph (c) or (e) if the 
158.28  county demonstrates that the commissioner failed to provide 
158.29  appropriate forms, guidelines, and technical assistance to 
158.30  enable the county to comply with the requirements.  If the 
158.31  county board disagrees with an action taken by the commissioner 
158.32  under paragraph (c) or (e), the county board may appeal the 
158.33  action according to sections 14.57 to 14.69. 
158.34     (g) Counties subject to withholding of funds under 
158.35  paragraph (c) or forfeiture or repayment of funds under 
158.36  paragraph (e) shall not reduce or withhold benefits or services 
159.1   to clients to cover costs incurred due to actions taken by the 
159.2   commissioner under paragraph (c) or (e). 
159.3      (18) (17) Allocate federal fiscal disallowances or 
159.4   sanctions for audit exceptions when federal fiscal disallowances 
159.5   or sanctions are based on a statewide random sample for the 
159.6   foster care program under title IV-E of the Social Security Act, 
159.7   United States Code, title 42, in direct proportion to each 
159.8   county's title IV-E foster care maintenance claim for that 
159.9   period. 
159.10     Sec. 2.  Minnesota Statutes 1996, section 256.031, is 
159.11  amended by adding a subdivision to read: 
159.12     Subd. 6.  [END OF FIELD TRIALS.] Upon agreement with the 
159.13  federal government, the field trials of the Minnesota family 
159.14  investment plan will end June 30, 1998.  Families in the 
159.15  comparison group under subdivision 3, paragraph (d), clause (i), 
159.16  receiving aid to families with dependent children under sections 
159.17  256.72 to 256.87, and STRIDE services under section 256.736 will 
159.18  continue in those programs until June 30, 1998.  After June 30, 
159.19  1998, families who cease receiving assistance under the 
159.20  Minnesota family investment plan and comparison group families 
159.21  who cease receiving assistance under AFDC and STRIDE who are 
159.22  eligible for the Minnesota family investment program-statewide 
159.23  (MFIP-S), medical assistance, general assistance medical care, 
159.24  or the food stamp program shall be placed with their consent on 
159.25  the programs for which they are eligible. 
159.26     Sec. 3.  Minnesota Statutes 1996, section 256.033, 
159.27  subdivision 1, is amended to read: 
159.28     Subdivision 1.  [ELIGIBILITY CONDITIONS.] (a) A family is 
159.29  entitled to assistance under the Minnesota family investment 
159.30  plan if the family is assigned to a test group in the evaluation 
159.31  as provided in section 256.031, subdivision 3, paragraph (d), 
159.32  and: 
159.33     (1) the family meets the definition of assistance unit 
159.34  under section 256.032, subdivision 1a; 
159.35     (2) the family's resources not excluded under subdivision 3 
159.36  do not exceed $2,000; 
160.1      (3) the family can verify citizenship or lawful resident 
160.2   alien status; and 
160.3      (4) the family provides or applies for a social security 
160.4   number for each member of the family receiving assistance under 
160.5   the family investment plan. 
160.6      (b) A family is eligible for the family investment plan if 
160.7   the net income is less than the transitional standard as defined 
160.8   in section 256.032, subdivision 13, for that size and 
160.9   composition of family.  In determining available net income, the 
160.10  provisions in subdivision 2 shall apply. 
160.11     (c) Upon application, a family is initially eligible for 
160.12  the family investment plan if the family's gross income does not 
160.13  exceed the applicable transitional standard of assistance for 
160.14  that family as defined under section 256.032, subdivision 13, 
160.15  after deducting: 
160.16     (1) 18 percent to cover taxes; and 
160.17     (2) actual dependent care costs up to the maximum 
160.18  disregarded under United States Code, title 42, section 
160.19  602(a)(8)(A)(iii); and 
160.20     (3) $50 of child support collected in that month. 
160.21     (d) A family can remain eligible for the program if: 
160.22     (1) it meets the conditions in subdivision 1a; and 
160.23     (2) its income is below the transitional standard in 
160.24  section 256.032, subdivision 13, allowing for income exclusions 
160.25  in subdivision 2 and after applying the family investment plan 
160.26  treatment of earnings under subdivision 1a. 
160.27     Sec. 4.  Minnesota Statutes 1996, section 256.033, 
160.28  subdivision 1a, is amended to read: 
160.29     Subd. 1a.  [TREATMENT OF INCOME FOR THE PURPOSES OF 
160.30  CONTINUED ELIGIBILITY.] To help families during their transition 
160.31  from the Minnesota family investment plan to self-sufficiency, 
160.32  the following income supports are available: 
160.33     (a) The $30 and one-third and $90 disregards allowed under 
160.34  section 256.74, subdivision 1, and the 20 percent earned income 
160.35  deduction allowed under the federal Food Stamp Act of 1977, as 
160.36  amended, are replaced with a single disregard of not less than 
161.1   35 percent of gross earned income to cover taxes and other 
161.2   work-related expenses and to reward the earning of income.  This 
161.3   single disregard is available for the entire time a family 
161.4   receives assistance through the Minnesota family investment plan.
161.5      (b) The dependent care deduction, as prescribed under 
161.6   section 256.74, subdivision 1, and United States Code, title 7, 
161.7   section 2014(e), is replaced for families with earned income who 
161.8   need assistance with dependent care with an entitlement to a 
161.9   dependent care subsidy from money appropriated for the Minnesota 
161.10  family investment plan. 
161.11     (c) The family wage level, as defined in section 256.032, 
161.12  subdivision 8, allows families to supplement earned income with 
161.13  assistance received through the Minnesota family investment 
161.14  plan.  If, after earnings are adjusted according to the 
161.15  disregard described in paragraph (a), earnings have raised 
161.16  family income to a level equal to or greater than the family 
161.17  wage level, the amount of assistance received through the 
161.18  Minnesota family investment plan must be reduced. 
161.19     (d) The first $50 of any timely support payment for a month 
161.20  received by the public agency responsible for child support 
161.21  enforcement shall be paid to the family and disregarded in 
161.22  determining eligibility and the amount of assistance in 
161.23  accordance with United States Code, title 42, sections 
161.24  602(a)(8)(A)(vi) and 657(b)(1).  This paragraph applies 
161.25  regardless of whether the caregiver is in transitional status, 
161.26  is exempt from developing or complying with the terms of a 
161.27  family support agreement, or has had a sanction imposed under 
161.28  subdivision 3.  
161.29     Sec. 5.  Minnesota Statutes 1996, section 256.736, 
161.30  subdivision 3a, is amended to read: 
161.31     Subd. 3a.  [PARTICIPATION.] (a) Except as provided under 
161.32  paragraphs (b) and (c), Participation in employment and training 
161.33  services under this section is limited to the following 
161.34  recipients:  
161.35     (1) caretakers who are required to participate in a job 
161.36  search under subdivision 14; 
162.1      (2) custodial parents who are subject to the school 
162.2   attendance or case management participation requirements under 
162.3   subdivision 3b; 
162.4      (3) caretakers whose participation in employment and 
162.5   training services began prior to May 1, 1990, if the caretaker's 
162.6   AFDC eligibility has not been interrupted for 30 days or more 
162.7   and the caretaker's employability development plan has not been 
162.8   completed; 
162.9      (4) recipients who are members of a family in which the 
162.10  youngest child is within two years of being ineligible for AFDC 
162.11  due to age; 
162.12     (5) custodial parents under the age of 24 who:  (i) have 
162.13  not completed a high school education and who, at the time of 
162.14  application for AFDC, were not enrolled in high school or in a 
162.15  high school equivalency program; or (ii) have had little or no 
162.16  work experience in the preceding year; 
162.17     (6) recipients who have received AFDC for 36 or more months 
162.18  out of the last 60 months; 
162.19     (7) recipients who are participants in the self-employment 
162.20  investment demonstration project under section 268.95; and 
162.21     (8) recipients who participate in the new chance research 
162.22  and demonstration project under contract with the department of 
162.23  human services and 
162.24     (3) after the county agency assures the availability of 
162.25  employment and training services for recipients identified under 
162.26  clauses (1) and (2), and to the extent of available resources, 
162.27  any other AFDC recipient. 
162.28     (b) If the commissioner determines that participation of 
162.29  persons listed in paragraph (a) in employment and training 
162.30  services is insufficient either to meet federal performance 
162.31  targets or to fully utilize funds appropriated under this 
162.32  section, the commissioner may, after notifying the chairs of the 
162.33  senate family services committee, the house health and human 
162.34  services committee, the family services division of the senate 
162.35  family services and health care committees, and the human 
162.36  services division of the house health and human services 
163.1   committee, permit additional groups of recipients to participate 
163.2   until the next meeting of the legislative advisory commission, 
163.3   after which the additional groups may continue to enroll for 
163.4   participation unless the legislative advisory commission 
163.5   disapproves the continued enrollment.  The commissioner shall 
163.6   allow participation of additional groups in the following order 
163.7   only as needed to meet performance targets or fully utilize 
163.8   funding for employment and training services under this section: 
163.9      (1) recipients who have received 24 or more months of AFDC 
163.10  out of the previous 48 months; and 
163.11     (2) recipients who have not completed a high school 
163.12  education or a high school equivalency program. 
163.13     (c) To the extent of money appropriated specifically for 
163.14  this paragraph, the commissioner may permit AFDC caretakers who 
163.15  are not eligible for participation in employment and training 
163.16  services under the provisions of paragraph (a) or (b) to 
163.17  participate.  Money must be allocated to county agencies based 
163.18  on the county's percentage of participants statewide in services 
163.19  under this section in the prior calendar year.  Caretakers must 
163.20  be selected on a first-come, first-served basis from a waiting 
163.21  list of caretakers who volunteer to participate.  The 
163.22  commissioner may, on a quarterly basis, reallocate unused 
163.23  allocations to county agencies that have sufficient volunteers.  
163.24  If funding under this paragraph is discontinued in future fiscal 
163.25  years, caretakers who began participating under this paragraph 
163.26  must be deemed eligible under paragraph (a), clause (3). 
163.27     (d) Participants who are eligible and enroll in the STRIDE 
163.28  program under one of the categories of this subdivision are 
163.29  required to cooperate with the assessment and employability plan 
163.30  development and to meet the terms of their employability plan.  
163.31  Failure to comply, without good cause, shall result in the 
163.32  imposition of sanctions as specified in subdivision 4, clause 
163.33  (6). 
163.34     Sec. 6.  Minnesota Statutes 1996, section 256.74, 
163.35  subdivision 1, is amended to read: 
163.36     Subdivision 1.  [AMOUNT.] The amount of assistance which 
164.1   shall be granted to or on behalf of any dependent child and 
164.2   parent or other needy eligible relative caring for the dependent 
164.3   child shall be determined by the county agency in accordance 
164.4   with according to rules promulgated by the commissioner and 
164.5   shall be sufficient, when added to all other income and support 
164.6   available to the child, to provide the child with a reasonable 
164.7   subsistence compatible with decency and health.  To the extent 
164.8   permissible under federal law, an eligible relative caretaker or 
164.9   parent shall have the option to include in the assistance unit 
164.10  the needs, income, and resources of the following essential 
164.11  persons who are not otherwise eligible for AFDC because they do 
164.12  not qualify as a caretaker or as a dependent child: 
164.13     (1) a parent or relative caretaker's spouse and 
164.14  stepchildren; or 
164.15     (2) blood or legally adopted relatives who are under the 
164.16  age of 18 or under the age of 19 years who are regularly 
164.17  attending as a full-time student, and are expected to complete 
164.18  before or during the month of their 19th birthday, a high school 
164.19  or secondary level course of vocational or technical training 
164.20  designed to prepare students for gainful employment.  The amount 
164.21  shall be based on the method of budgeting required in Public Law 
164.22  Number 97-35, section 2315, United States Code, title 42, 
164.23  section 602, as amended and federal regulations at Code of 
164.24  Federal Regulations, title 45, section 233.  Nonrecurring lump 
164.25  sum income received by an AFDC family must be budgeted in the 
164.26  normal retrospective cycle.  When the family's income, after 
164.27  application of the applicable disregards, exceeds the need 
164.28  standard for the family because of receipt of earned or unearned 
164.29  lump sum income, the family will be ineligible for the full 
164.30  number of months derived by dividing the sum of the lump sum 
164.31  income and other income by the monthly need standard for a 
164.32  family of that size.  Any income remaining from this calculation 
164.33  is income in the first month following the period of 
164.34  ineligibility.  The first month of ineligibility is the payment 
164.35  month that corresponds with the budget month in which the lump 
164.36  sum income was received.  For purposes of applying the lump sum 
165.1   provision, family includes those persons defined in the Code of 
165.2   Federal Regulations, title 45, section 233.20(a)(3)(ii)(F).  A 
165.3   period of ineligibility must be shortened when the standard of 
165.4   need increases and the amount the family would have received 
165.5   also changes, an amount is documented as stolen, an amount is 
165.6   unavailable because a member of the family left the household 
165.7   with that amount and has not returned, an amount is paid by the 
165.8   family during the period of ineligibility to cover a cost that 
165.9   would otherwise qualify for emergency assistance, or the family 
165.10  incurs and pays for medical expenses which would have been 
165.11  covered by medical assistance if eligibility existed.  In making 
165.12  its determination the county agency shall disregard the 
165.13  following from family income:  
165.14     (1) all the earned income of each dependent child applying 
165.15  for AFDC if the child is a full-time student and all of the 
165.16  earned income of each dependent child receiving AFDC who is a 
165.17  full-time student or is a part-time student who is not a 
165.18  full-time employee.  A student is one who is attending a school, 
165.19  college, or university, or a course of vocational or technical 
165.20  training designed to fit students for gainful employment and 
165.21  includes a participant in the Job Corps program under the Job 
165.22  Training Partnership Act (JTPA).  The county agency shall also 
165.23  disregard all income of each dependent child applying for or 
165.24  receiving AFDC when the income is derived from a program carried 
165.25  out under JTPA, except that disregard of earned income may not 
165.26  exceed six months per calendar year; 
165.27     (2) all educational assistance, except the county agency 
165.28  shall count graduate student teaching assistantships, 
165.29  fellowships, and other similar paid work as earned income and, 
165.30  after allowing deductions for any unmet and necessary 
165.31  educational expenses, shall count scholarships or grants awarded 
165.32  to graduate students that do not require teaching or research as 
165.33  unearned income; 
165.34     (3) the first $90 of each individual's earned income.  For 
165.35  self-employed persons, the expenses directly related to 
165.36  producing goods and services and without which the goods and 
166.1   services could not be produced shall be disregarded 
166.2   pursuant according to rules promulgated by the commissioner; 
166.3      (4) thirty dollars plus one-third of each individual's 
166.4   earned income for individuals found otherwise eligible to 
166.5   receive aid or who have received aid in one of the four months 
166.6   before the month of application.  With respect to any month, the 
166.7   county welfare agency shall not disregard under this clause any 
166.8   earned income of any person who has:  (a) reduced earned income 
166.9   without good cause within 30 days preceding any month in which 
166.10  an assistance payment is made; (b) refused without good cause to 
166.11  accept an offer of suitable employment; (c) left employment or 
166.12  reduced earnings without good cause and applied for assistance 
166.13  so as to be able later to return to employment with the 
166.14  advantage of the income disregard; or (d) (c) failed without 
166.15  good cause to make a timely report of earned income in 
166.16  accordance with according to rules promulgated by the 
166.17  commissioner of human services.  Persons who are already 
166.18  employed and who apply for assistance shall have their needs 
166.19  computed with full account taken of their earned and other 
166.20  income.  If earned and other income of the family is less than 
166.21  need, as determined on the basis of public assistance standards, 
166.22  the county agency shall determine the amount of the grant by 
166.23  applying the disregard of income provisions.  The county agency 
166.24  shall not disregard earned income for persons in a family if the 
166.25  total monthly earned and other income exceeds their needs, 
166.26  unless for any one of the four preceding months their needs were 
166.27  met in whole or in part by a grant payment.  The disregard of 
166.28  $30 and one-third of earned income in this clause shall be 
166.29  applied to the individual's income for a period not to exceed 
166.30  four consecutive months.  Any month in which the individual 
166.31  loses this disregard because of the provisions of subclauses (a) 
166.32  to (d) shall be considered as one of the four months.  An 
166.33  additional $30 work incentive must be available for an 
166.34  eight-month period beginning in the month following the last 
166.35  month of the combined $30 and one-third work incentive.  This 
166.36  period must be in effect whether or not the person has earned 
167.1   income or is eligible for AFDC.  To again qualify for the earned 
167.2   income disregards under this clause, the individual must not be 
167.3   a recipient of aid for a period of 12 consecutive months.  When 
167.4   an assistance unit becomes ineligible for aid due to the fact 
167.5   that these disregards are no longer applied to income, the 
167.6   assistance unit shall be eligible for medical assistance 
167.7   benefits for a 12-month period beginning with the first month of 
167.8   AFDC ineligibility; 
167.9      (5) an amount equal to the actual expenditures for the care 
167.10  of each dependent child or incapacitated individual living in 
167.11  the same home and receiving aid, not to exceed:  (a) $175 for 
167.12  each individual age two and older, and $200 for each individual 
167.13  under the age of two.  The dependent care disregard must be 
167.14  applied after all other disregards under this subdivision have 
167.15  been applied; 
167.16     (6) the first $50 per assistance unit of the monthly 
167.17  support obligation collected by the support and recovery (IV-D) 
167.18  unit.  The first $50 of periodic support payments collected by 
167.19  the public authority responsible for child support enforcement 
167.20  from a person with a legal obligation to pay support for a 
167.21  member of the assistance unit must be paid to the assistance 
167.22  unit within 15 days after the end of the month in which the 
167.23  collection of the periodic support payments occurred and must be 
167.24  disregarded when determining the amount of assistance.  A review 
167.25  of a payment decision under this clause must be requested within 
167.26  30 days after receiving the notice of collection of assigned 
167.27  support or within 90 days after receiving the notice if good 
167.28  cause can be shown for not making the request within the 30-day 
167.29  limit; 
167.30     (7) that portion of an insurance settlement earmarked and 
167.31  used to pay medical expenses, funeral and burial costs, or to 
167.32  repair or replace insured property; and 
167.33     (8) (7) all earned income tax credit payments received by 
167.34  the family as a refund of federal income taxes or made as 
167.35  advance payments by an employer.  
167.36     All payments made pursuant according to a court order for 
168.1   the support of children not living in the assistance unit's 
168.2   household shall be disregarded from the income of the person 
168.3   with the legal obligation to pay support, provided that, if 
168.4   there has been a change in the financial circumstances of the 
168.5   person with the legal obligation to pay support since the 
168.6   support order was entered, the person with the legal obligation 
168.7   to pay support has petitioned for a modification of the support 
168.8   order. 
168.9      Sec. 7.  Minnesota Statutes 1996, section 256.74, is 
168.10  amended by adding a subdivision to read: 
168.11     Subd. 1c.  [MFIP AND MFIP-R COMPARISON GROUP 
168.12  FAMILIES.] Notwithstanding subdivision 1, the limitations of 
168.13  this subdivision apply to MFIP and MFIP-R comparison group 
168.14  families under sections 256.031 to 256.0361.  The disregard of 
168.15  thirty dollars plus one-third of earned income in this 
168.16  subdivision shall be applied to the individual's income for a 
168.17  period not to exceed four consecutive months.  Any month in 
168.18  which the individual loses this disregard because of the 
168.19  provisions of subclauses (a) to (c) of subdivision 1 shall be 
168.20  considered as one of the four months.  An additional $30 work 
168.21  incentive must be available for an eight month period beginning 
168.22  in the month following the last month of the combined $30 and 
168.23  one-third work incentive.  This period must be in effect whether 
168.24  or not the person has earned income or is eligible for AFDC.  To 
168.25  again qualify for the earned income disregards under this 
168.26  subdivision, the individual must not be a recipient of and for a 
168.27  period of 12 consecutive months.  When an assistance unit 
168.28  becomes ineligible for aid due to the fact that these disregards 
168.29  are no longer applied to income, the assistance unit shall be 
168.30  eligible for medical assistance benefits for a 12 month period 
168.31  beginning with the first month of AFDC ineligibility. 
168.32     Sec. 8.  Minnesota Statutes 1996, section 256.81, is 
168.33  amended to read: 
168.34     256.81 [COUNTY AGENCY, DUTIES.] 
168.35     (1) The county agency shall keep such records, accounts, 
168.36  and statistics in relation to aid to families with dependent 
169.1   children as the state agency shall prescribe.  
169.2      (2) Each grant of aid to families with dependent children 
169.3   shall be paid to the recipient by the county agency unless paid 
169.4   by the state agency.  Payment must be in the form of a warrant 
169.5   immediately redeemable in cash, electronic benefits transfer, or 
169.6   by direct deposit into the recipient's account in a financial 
169.7   institution, except in those instances in which the county 
169.8   agency, subject to the rules of the state agency, determines 
169.9   that payments for care shall be made to an individual other than 
169.10  the parent or relative with whom the dependent child is living 
169.11  or to vendors of goods and services for the benefit of the child 
169.12  because such parent or relative is unable to properly manage the 
169.13  funds in the best interests and welfare of the child.  There is 
169.14  a presumption of mismanagement of funds whenever a recipient is 
169.15  more than 30 days in arrears on payment of rent, except when the 
169.16  recipient has withheld rent to enforce the recipient's right to 
169.17  withhold the rent in accordance with federal, state, or local 
169.18  housing laws.  In cases of mismanagement based solely on failure 
169.19  to pay rent, the county may vendor the rent payments to the 
169.20  landlord.  At the request of a recipient, the state or county 
169.21  may make payments directly to vendors of goods and services, but 
169.22  only for goods and services appropriate to maintain the health 
169.23  and safety of the child, as determined by the county.  
169.24     (3) The state or county may ask the recipient to give 
169.25  written consent authorizing the state or county to provide 
169.26  advance notice to a vendor before vendor payments of rent are 
169.27  reduced or terminated.  Whenever possible under state and 
169.28  federal laws and regulations and if the recipient consents, the 
169.29  state or county shall provide at least 30 days notice to vendors 
169.30  before vendor payments of rent are reduced or terminated.  If 30 
169.31  days notice cannot be given, the state or county shall notify 
169.32  the vendor within three working days after the date the state or 
169.33  county becomes aware that vendor payments of rent will be 
169.34  reduced or terminated.  When the county notifies a vendor that 
169.35  vendor payments of rent will be reduced or terminated, the 
169.36  county shall include in the notice that it is illegal to 
170.1   discriminate on the grounds that a person is receiving public 
170.2   assistance and the penalties for violation.  The county shall 
170.3   also notify the recipient that it is illegal to discriminate on 
170.4   the grounds that a person is receiving public assistance and the 
170.5   procedures for filing a complaint.  The county agency may 
170.6   develop procedures, including using the MAXIS system, to 
170.7   implement vendor notice and may charge vendors a fee not 
170.8   exceeding $5 to cover notification costs. 
170.9      (4) A vendor payment arrangement is not a guarantee that a 
170.10  vendor will be paid by the state or county for rent, goods, or 
170.11  services furnished to a recipient, and the state and county are 
170.12  not liable for any damages claimed by a vendor due to failure of 
170.13  the state or county to pay or to notify the vendor on behalf of 
170.14  a recipient, except under a specific written agreement between 
170.15  the state or county and the vendor or when the state or county 
170.16  has provided a voucher guaranteeing payment under certain 
170.17  conditions.  
170.18     (5) The county shall be paid from state and federal funds 
170.19  available therefor the amount provided for in section 256.82.  
170.20     (6) Federal funds available for administrative purposes 
170.21  shall be distributed between the state and the counties in the 
170.22  same proportion that expenditures were made except as provided 
170.23  for in section 256.017. 
170.24     (7) The affected county may require that assistance paid 
170.25  under the AFDC emergency assistance program in the form of a 
170.26  utility deposit or rental unit damage deposit, less any amount 
170.27  retained by the landlord to remedy a tenant's default in payment 
170.28  of rent or other funds due to the landlord pursuant to a rental 
170.29  agreement, or to restore the premises to the condition at the 
170.30  commencement of the tenancy, ordinary wear and tear excepted, be 
170.31  returned to the county when the individual vacates the premises 
170.32  or paid to the recipient's new landlord as a vendor payment.  
170.33  The vendor payment of returned funds shall not be considered a 
170.34  new use of emergency assistance. 
170.35     Section 8 is effective July 1, 1997. 
170.36     Sec. 9.  Minnesota Statutes 1996, section 256.82, 
171.1   subdivision 2, is amended to read: 
171.2      Subd. 2.  [FOSTER CARE MAINTENANCE PAYMENTS.] 
171.3   Notwithstanding subdivision 1, for the purposes of foster care 
171.4   maintenance payments under Title IV-E of the federal Social 
171.5   Security Act, United States Code, title 42, sections 670 to 676, 
171.6   during the period beginning July 1, 1985, and ending December 
171.7   31, 1985, the county paying the maintenance costs shall be 
171.8   reimbursed for the costs from those federal funds available for 
171.9   that purpose together with an amount of state funds equal to a 
171.10  percentage of the difference between the total cost and the 
171.11  federal funds made available for payment.  This percentage shall 
171.12  not exceed the percentage specified in subdivision 1 for the aid 
171.13  to families with dependent children program.  In the event that 
171.14  the state appropriation for this purpose is less than the state 
171.15  percentage set in subdivision 1, the reimbursement shall be 
171.16  ratably reduced to the county.  Beginning January 1, 1986, for 
171.17  the purpose of foster care maintenance payments under Title IV-E 
171.18  of the Social Security Act, United States Code, title 42, 
171.19  sections 670 to 676, the county paying the maintenance costs 
171.20  must be reimbursed for the costs from the federal money 
171.21  available for the purpose.  Beginning July 1, 1997, for the 
171.22  purposes of determining a child's eligibility under title IV-E 
171.23  of the Social Security Act, the placing agency shall use AFDC 
171.24  requirements as specified in federal law. 
171.25     Sec. 10.  Minnesota Statutes 1996, section 256.9354, is 
171.26  amended by adding a subdivision to read: 
171.27     Subd. 8.  [SPONSOR'S INCOME AND RESOURCES DEEMED 
171.28  AVAILABLE.] When determining eligibility for any federal or 
171.29  state benefits under sections 256.9351 to 256.9363 and 256.9366 
171.30  to 256.9369, the income and resources of all noncitizens shall 
171.31  be deemed to include their sponsors' income and resources as 
171.32  defined in the Personal Responsibility and Work Opportunity 
171.33  Reconciliation Act of 1996, title IV, Public Law Number 104-193, 
171.34  sections 421 and 422. 
171.35     Sec. 11.  Minnesota Statutes 1996, section 256B.055, 
171.36  subdivision 3, is amended to read: 
172.1      Subd. 3.  [AFDC FAMILIES.] Until January 1, 1998, medical 
172.2   assistance may be paid for a person who is eligible for or 
172.3   receiving, or who would be eligible for, except for excess 
172.4   income or assets, public assistance under the aid to families 
172.5   with dependent children program in effect as of July 16, 1996, 
172.6   as required by the Personal Responsibility and Work Opportunity 
172.7   Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193.  
172.8      Sec. 12.  Minnesota Statutes 1996, section 256B.055, is 
172.9   amended by adding a subdivision to read: 
172.10     Subd. 3a.  [MFIP-S FAMILIES; FAMILIES ELIGIBLE UNDER PRIOR 
172.11  AFDC RULES.] (a) Beginning January 1, 1998, or on the date that 
172.12  MFIP-S is implemented in counties which choose the MFIP-S early 
172.13  implementation option under section 256J.50, medical assistance 
172.14  may be paid for a person receiving public assistance under the 
172.15  MFIP-S program. 
172.16     (b) Beginning January 1, 1998, or on the date that MFIP-S 
172.17  is implemented in counties which elect to implement MFIP-S 
172.18  earlier under section 256J.50, medical assistance may be paid 
172.19  for a person who would have been eligible for public assistance 
172.20  under the income and resource standards and deprivation 
172.21  requirements, or who would have been eligible but for excess 
172.22  income or assets, under the state's AFDC plan in effect as of 
172.23  July 16, 1996, as required by the Personal Responsibility and 
172.24  Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
172.25  Number 104-193. 
172.26     Sec. 13.  Minnesota Statutes 1996, section 256B.055, 
172.27  subdivision 5, is amended to read: 
172.28     Subd. 5.  [PREGNANT WOMEN; DEPENDENT UNBORN CHILD.] Medical 
172.29  assistance may be paid for a pregnant woman who has written 
172.30  verification of a positive pregnancy test from a physician or 
172.31  licensed registered nurse, who meets the other eligibility 
172.32  criteria of this section and who would be categorically eligible 
172.33  for assistance under the aid to families with dependent children 
172.34  program state's AFDC plan in effect as of July 16, 1996, as 
172.35  required by the Personal Responsibility and Work Opportunity 
172.36  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
173.1   if the child had been born and was living with the woman.  For 
173.2   purposes of this subdivision, a woman is considered pregnant for 
173.3   60 days postpartum. 
173.4      Sec. 14.  Minnesota Statutes 1996, section 256B.056, 
173.5   subdivision 1a, is amended to read: 
173.6      Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
173.7   specifically required by state law or rule or federal law or 
173.8   regulation, the methodologies used in counting income and assets 
173.9   to determine eligibility for medical assistance for persons 
173.10  whose eligibility category is based on blindness, disability, or 
173.11  age of 65 or more years, the methodologies for the supplemental 
173.12  security income program shall be used, except that payments made 
173.13  pursuant according to a court order for the support of children 
173.14  shall be excluded from income in an amount not to exceed the 
173.15  difference between the applicable income standard used in the 
173.16  state's medical assistance program for aged, blind, and disabled 
173.17  persons and the applicable income standard used in the state's 
173.18  medical assistance program for families with children.  
173.19  Exclusion of court-ordered child support payments is subject to 
173.20  the condition that if there has been a change in the financial 
173.21  circumstances of the person with the legal obligation to pay 
173.22  support since the support order was entered, the person with the 
173.23  legal obligation to pay support has petitioned for modification 
173.24  of the support order.  For families and children, which includes 
173.25  all other eligibility categories, the methodologies for the aid 
173.26  to families with dependent children program under section 256.73 
173.27  under the state's AFDC plan in effect as of July 16, 1996, as 
173.28  required by the Personal Responsibility and Work Opportunity 
173.29  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
173.30  shall be used.  Effective upon federal approval, in-kind 
173.31  contributions to, and payments made on behalf of, a recipient, 
173.32  by an obligor, in satisfaction of or in addition to a temporary 
173.33  or permanent order for child support or maintenance, shall be 
173.34  considered income to the recipient.  For these purposes, a 
173.35  "methodology" does not include an asset or income standard, or 
173.36  accounting method, or method of determining effective dates. 
174.1      Sec. 15.  Minnesota Statutes 1996, section 256B.056, 
174.2   subdivision 3, is amended to read: 
174.3      Subd. 3.  [ASSET LIMITATIONS.] To be eligible for medical 
174.4   assistance, a person must not individually own more than $3,000 
174.5   in assets, or if a member of a household with two family 
174.6   members, (husband and wife, or parent and child), the household 
174.7   must not own more than $6,000 in assets, plus $200 for each 
174.8   additional legal dependent.  In addition to these maximum 
174.9   amounts, an eligible individual or family may accrue interest on 
174.10  these amounts, but they must be reduced to the maximum at the 
174.11  time of an eligibility redetermination.  The accumulation of the 
174.12  clothing and personal needs allowance pursuant according to 
174.13  section 256B.35 must also be reduced to the maximum at the time 
174.14  of the eligibility redetermination.  The value of assets that 
174.15  are not considered in determining eligibility for medical 
174.16  assistance is the value of those assets that are excluded by the 
174.17  aid to families with dependent children program excluded under 
174.18  the AFDC state plan as of July 16, 1996, as required by the 
174.19  Personal Responsibility and Work Opportunity Reconciliation Act 
174.20  of 1996 (PRWORA), Public Law Number 104-193, for families and 
174.21  children, and the supplemental security income program for aged, 
174.22  blind, and disabled persons, with the following exceptions: 
174.23     (a) Household goods and personal effects are not considered.
174.24     (b) Capital and operating assets of a trade or business 
174.25  that the local agency determines are necessary to the person's 
174.26  ability to earn an income are not considered. 
174.27     (c) Motor vehicles are excluded to the same extent excluded 
174.28  by the supplemental security income program. 
174.29     (d) Assets designated as burial expenses are excluded to 
174.30  the same extent excluded by the supplemental security income 
174.31  program. 
174.32     Sec. 16.  Minnesota Statutes 1996, section 256B.056, 
174.33  subdivision 4, is amended to read: 
174.34     Subd. 4.  [INCOME.] To be eligible for medical assistance, 
174.35  a person must not have, or anticipate receiving, semiannual 
174.36  income in excess of 120 percent of the income standards by 
175.1   family size used in under the aid to families with dependent 
175.2   children program state plan as of July 16, 1996, as required by 
175.3   the Personal Responsibility and Work Opportunity Reconciliation 
175.4   Act of 1996 (PRWORA), Public Law Number 104-193, except that 
175.5   families and children may have an income up to 133-1/3 percent 
175.6   of the AFDC income standard.  In computing income to determine 
175.7   eligibility of persons who are not residents of long-term care 
175.8   facilities, the commissioner shall disregard increases in income 
175.9   as required by Public Law Numbers 94-566, section 503; 99-272; 
175.10  and 99-509.  Veterans aid and attendance benefits are considered 
175.11  income to the recipient. 
175.12     Sec. 17.  Minnesota Statutes 1996, section 256B.057, 
175.13  subdivision 1, is amended to read: 
175.14     Subdivision 1.  [PREGNANT WOMEN AND INFANTS.] (a) An infant 
175.15  less than one year of age or a pregnant woman who has written 
175.16  verification of a positive pregnancy test from a physician or 
175.17  licensed registered nurse, is eligible for medical assistance if 
175.18  countable family income is equal to or less than 275 percent of 
175.19  the federal poverty guideline for the same family size.  For 
175.20  purposes of this subdivision, "countable family income" means 
175.21  the amount of income considered available using the methodology 
175.22  of the AFDC program under the state's AFDC plan as of July 16, 
175.23  1996, as required by the Personal Responsibility and Work 
175.24  Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
175.25  Number 104-193, except for the earned income disregard and 
175.26  employment deductions.  An amount equal to the amount of earned 
175.27  income exceeding 275 percent of the federal poverty guideline, 
175.28  up to a maximum of the amount by which the combined total of 185 
175.29  percent of the federal poverty guideline plus the earned income 
175.30  disregards and deductions of the AFDC program under the state's 
175.31  AFDC plan as of July 16, 1996, as required by the Personal 
175.32  Responsibility and Work Opportunity Reconciliation Act of 1996 
175.33  (PRWORA), Public Law Number 104-193, exceeds 275 percent of the 
175.34  federal poverty guideline will be deducted for pregnant women 
175.35  and infants less than one year of age.  Eligibility for a 
175.36  pregnant woman or infant less than one year of age under this 
176.1   subdivision must be determined without regard to asset standards 
176.2   established in section 256B.056, subdivision 3.  
176.3      (b) An infant born on or after January 1, 1991, to a woman 
176.4   who was eligible for and receiving medical assistance on the 
176.5   date of the child's birth shall continue to be eligible for 
176.6   medical assistance without redetermination until the child's 
176.7   first birthday, as long as the child remains in the woman's 
176.8   household. 
176.9      Sec. 18.  Minnesota Statutes 1996, section 256B.057, 
176.10  subdivision 1b, is amended to read: 
176.11     Subd. 1b.  [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 
176.12  This subdivision supersedes subdivision 1 as long as the 
176.13  Minnesota health care reform waiver remains in effect.  When the 
176.14  waiver expires, the commissioner of human services shall publish 
176.15  a notice in the State Register and notify the revisor of 
176.16  statutes.  An infant less than two years of age or a pregnant 
176.17  woman who has written verification of a positive pregnancy test 
176.18  from a physician or licensed registered nurse, is eligible for 
176.19  medical assistance if countable family income is equal to or 
176.20  less than 275 percent of the federal poverty guideline for the 
176.21  same family size.  For purposes of this subdivision, "countable 
176.22  family income" means the amount of income considered available 
176.23  using the methodology of the AFDC program under the state's AFDC 
176.24  plan as of July 16, 1996, as required by the Personal 
176.25  Responsibility and Work Opportunity Reconciliation Act of 1996 
176.26  (PRWORA), Public Law Number 104-193, except for the earned 
176.27  income disregard and employment deductions.  An amount equal to 
176.28  the amount of earned income exceeding 275 percent of the federal 
176.29  poverty guideline, up to a maximum of the amount by which the 
176.30  combined total of 185 percent of the federal poverty guideline 
176.31  plus the earned income disregards and deductions of the AFDC 
176.32  program under the state's AFDC plan as of July 16, 1996, as 
176.33  required by the Personal Responsibility and Work Opportunity 
176.34  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
176.35  exceeds 275 percent of the federal poverty guideline will be 
176.36  deducted for pregnant women and infants less than two years of 
177.1   age.  Eligibility for a pregnant woman or infant less than two 
177.2   years of age under this subdivision must be determined without 
177.3   regard to asset standards established in section 256B.056, 
177.4   subdivision 3.  
177.5      (b) An infant born on or after January 1, 1991, to a woman 
177.6   who was eligible for and receiving medical assistance on the 
177.7   date of the child's birth shall continue to be eligible for 
177.8   medical assistance without redetermination until the child's 
177.9   second birthday, as long as the child remains in the woman's 
177.10  household. 
177.11     Sec. 19.  Minnesota Statutes 1996, section 256B.057, 
177.12  subdivision 2b, is amended to read: 
177.13     Subd. 2b.  [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS; 
177.14  EXPANSION.] This subdivision supersedes subdivision 2a as long 
177.15  as the Minnesota health care reform waiver remains in effect.  
177.16  When the waiver expires, this subdivision expires and the 
177.17  commissioner of human services shall publish a notice in the 
177.18  State Register and notify the revisor of statutes.  Eligibility 
177.19  for medical assistance for a person under age 21, and the 
177.20  person's parents or relative caretakers as defined in the aid to 
177.21  families with dependent children program according to chapter 
177.22  256, who are eligible under section 256B.055, subdivision 
177.23  3 under the state's AFDC plan in effect as of July 16, 1996, as 
177.24  required by the Personal Responsibility and Work Opportunity 
177.25  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
177.26  and who live in the same household as the person eligible under 
177.27  age 21, must be determined without regard to asset standards 
177.28  established in section 256B.056. 
177.29     Sec. 20.  Minnesota Statutes 1996, section 256B.06, 
177.30  subdivision 4, is amended to read: 
177.31     Subd. 4.  [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 
177.32  medical assistance is limited to citizens of the United 
177.33  States and aliens lawfully admitted for permanent residence or 
177.34  otherwise permanently residing in the United States under the 
177.35  color of law.  Aliens who are seeking legalization under the 
177.36  Immigration Reform and Control Act of 1986, Public Law Number 
178.1   99-603, who are under age 18, over age 65, blind, disabled, or 
178.2   Cuban or Haitian, and who meet the eligibility requirements of 
178.3   medical assistance under subdivision 1 and sections 256B.055 to 
178.4   256B.062 are eligible to receive medical assistance.  Pregnant 
178.5   women who are aliens seeking legalization under the Immigration 
178.6   Reform and Control Act of 1986, Public Law Number 99-603, and 
178.7   who meet the eligibility requirements of medical assistance 
178.8   under subdivision 1 are eligible for payment of care and 
178.9   services through the period of pregnancy and six weeks 
178.10  postpartum.  Payment shall also be made for care and services 
178.11  that are furnished to an alien, regardless of immigration 
178.12  status, who otherwise meets the eligibility requirements of this 
178.13  section if such care and services are necessary for the 
178.14  treatment of an emergency medical condition, except for organ 
178.15  transplants and related care and services.  For purposes of this 
178.16  subdivision, the term "emergency medical condition" means a 
178.17  medical condition, including labor and delivery, that if not 
178.18  immediately treated could cause a person physical or mental 
178.19  disability, continuation of severe pain, or death., qualified 
178.20  noncitizens as defined in this subdivision, and other persons 
178.21  residing lawfully in the United States. 
178.22     (b) "Qualified noncitizen" means a person who meets one of 
178.23  the following immigration criteria: 
178.24     (1) admitted for lawful permanent residence according to 
178.25  United States Code, title 8; 
178.26     (2) admitted to the United States as a refugee according to 
178.27  United States Code, title 8, section 1157; 
178.28     (3) granted asylum according to United States Code, title 
178.29  8, section 1158; 
178.30     (4) granted withholding of deportation according to United 
178.31  States Code, title 8, section 1253(h); 
178.32     (5) paroled for a period of at least one year according to 
178.33  United States Code, title 8, section 1182(d)(5); 
178.34     (6) granted conditional entrant status according to United 
178.35  States Code, title 8, section 1153(a)(7); or 
178.36     (7) determined to be a battered noncitizen by the United 
179.1   States Attorney General according to the Illegal Immigration 
179.2   Reform and Immigrant Responsibility Act of 1996, title V of the 
179.3   Omnibus Consolidated Appropriations Bill, Public Law Number 
179.4   104-200. 
179.5      (c) All qualified noncitizens who were residing in the 
179.6   United States before August 22, 1996, who otherwise meet the 
179.7   eligibility requirements of chapter 256B, are eligible for 
179.8   medical assistance with federal financial participation. 
179.9      (d) All qualified noncitizens who entered the United States 
179.10  on or after August 22, 1996, and who otherwise meet the 
179.11  eligibility requirements of chapter 256B, are eligible for 
179.12  medical assistance with federal financial participation through 
179.13  November 30, 1996. 
179.14     Beginning December 1, 1996, qualified noncitizens who 
179.15  entered the United States on or after August 22, 1996, and who 
179.16  otherwise meet the eligibility requirements of chapter 256B are 
179.17  eligible for medical assistance with federal participation for 
179.18  five years if they meet one of the following criteria: 
179.19     (i) refugees admitted to the United States according to 
179.20  United States Code, title 8, section 1157; 
179.21     (ii) persons granted asylum according to United States 
179.22  Code, title 8, section 1158; 
179.23     (iii) persons granted withholding of deportation according 
179.24  to United States code, title 8, section 1253(h); 
179.25     (iv) veterans of the United States Armed Forces with an 
179.26  honorable discharge for a reason other than noncitizen status, 
179.27  their spouses and unmarried minor dependent children; or 
179.28     (v) persons on active duty in the United States Armed 
179.29  Forces, other than for training, their spouses and unmarried 
179.30  minor dependent children. 
179.31     Beginning December 1, 1996, qualified noncitizens who do 
179.32  not meet one of the criteria in items (i) to (v) are eligible 
179.33  for medical assistance without federal financial participation 
179.34  as described in paragraph (j). 
179.35     (e) Noncitizens who are not qualified noncitizens as 
179.36  defined in paragraph (b), who are lawfully residing in the 
180.1   United States and who otherwise meet the eligibility 
180.2   requirements of chapter 256B, are eligible for medical 
180.3   assistance under clauses (1) to (3).  These individuals must 
180.4   cooperate with the Immigration and Naturalization Service to 
180.5   pursue any applicable immigration status, including citizenship, 
180.6   that would qualify them for medical assistance with federal 
180.7   financial participation. 
180.8      (1) Persons who were medical assistance recipients on 
180.9   August 22, 1996, are eligible for medical assistance with 
180.10  federal financial participation through December 31, 1996. 
180.11     (2) Beginning January 1, 1997, persons described in clause 
180.12  (1) are eligible for medical assistance without federal 
180.13  financial participation as described in paragraph (j). 
180.14     (3) Beginning December 1, 1996, persons residing in the 
180.15  United States prior to August 22, 1996, who were not receiving 
180.16  medical assistance and persons who arrived on or after August 
180.17  22, 1996, are eligible for medical assistance without federal 
180.18  financial participation as described in paragraph (j). 
180.19     (f) Nonimmigrants who otherwise meet the eligibility 
180.20  requirements of chapter 256B are eligible for the benefits as 
180.21  provided in paragraphs (h) and (i).  For purposes of this 
180.22  subdivision, a "nonimmigrant" is a person in one of the classes 
180.23  listed in United States Code, title 8, section 1101(a)(15). 
180.24     (g) When determining eligibility for any federal or state 
180.25  benefits under this subdivision, the income and resources of all 
180.26  noncitizens shall be deemed to include their sponsors' income 
180.27  and resources as required under the Personal Responsibility and 
180.28  Work Opportunity Reconciliation Act of 1996, title IV, Public 
180.29  Law Number 104-193, sections 421 and 422.  For purposes of this 
180.30  subdivision "sponsor" means an individual or organization.  
180.31     (h) Payment shall also be made for care and services that 
180.32  are furnished to noncitizens, regardless of immigration status, 
180.33  who otherwise meet the eligibility requirements of chapter 256B, 
180.34  if such care and services are necessary for the treatment of an 
180.35  emergency medical condition, except for organ transplants and 
180.36  related care and services and routine prenatal care.  For 
181.1   purposes of this subdivision, the term "emergency medical 
181.2   condition" means a medical condition that meets the requirements 
181.3   of United States Code, title 42, section 1396b(v). 
181.4      (i) Pregnant noncitizens who are undocumented or 
181.5   nonimmigrants, who otherwise meet the eligibility requirements 
181.6   of chapter 256B, are eligible for medical assistance payment 
181.7   without federal financial participation for care and services 
181.8   through the period of pregnancy, except for labor and delivery, 
181.9   and 60 days postpartum. 
181.10     (j) Qualified noncitizens as described in paragraph (d), 
181.11  and all other noncitizens lawfully residing in the United States 
181.12  as described in paragraph (e), who are ineligible for medical 
181.13  assistance with federal financial participation and who 
181.14  otherwise meet the eligibility requirements of chapter 256B and 
181.15  of this paragraph, are eligible for medical assistance without 
181.16  federal financial participation.  Qualified noncitizens as 
181.17  described in paragraph (d) are only eligible for medical 
181.18  assistance without federal financial participation for five 
181.19  years from their date of entry into the United States.  
181.20     (k) The commissioner shall submit to the legislature by 
181.21  December 31, 1998, a report on the number of recipients and cost 
181.22  of coverage of care and services made according to paragraphs 
181.23  (i) and (j). 
181.24     Sec. 21.  Minnesota Statutes 1996, section 256B.062, is 
181.25  amended to read: 
181.26     256B.062 [CONTINUED ELIGIBILITY.] 
181.27     Medical assistance may be paid for persons who received aid 
181.28  to families with dependent children in at least three of the six 
181.29  months preceding the month in which the person became ineligible 
181.30  for aid to families with dependent children, if the 
181.31  ineligibility was due to an increase in hours of employment or 
181.32  employment income or due to the loss of an earned income 
181.33  disregard.  A person who is eligible for extended medical 
181.34  assistance is entitled to six months of assistance without 
181.35  reapplication, unless the assistance unit ceases to include a 
181.36  dependent child.  For a person under 21 years of age, medical 
182.1   assistance may not be discontinued within the six-month period 
182.2   of extended eligibility until it has been determined that the 
182.3   person is not otherwise eligible for medical assistance.  
182.4   Medical assistance may be continued for an additional six months 
182.5   if the person meets all requirements for the additional six 
182.6   months, according to Title XIX of the Social Security Act, as 
182.7   amended by section 303 of the Family Support Act of 1988, Public 
182.8   Law Number 100-485.  This section is repealed effective January 
182.9   1, 1998.  
182.10     Sec. 22.  [256B.0635] [CONTINUED ELIGIBILITY IN SPECIAL 
182.11  CIRCUMSTANCES.] 
182.12     Subdivision 1.  [INCREASED EMPLOYMENT.] Beginning January 
182.13  1, 1998, or on the date that MFIP-S is implemented in counties 
182.14  which elect to implement MFIP-S earlier under section 256J.50, 
182.15  medical assistance may be paid for persons who received MFIP-S 
182.16  or medical assistance for families and children in at least 
182.17  three of six months preceding the month in which the person 
182.18  became ineligible for MFIP-S or medical assistance, if the 
182.19  ineligibility was due to an increase in hours of employment or 
182.20  employment income or due to the loss of an earned income 
182.21  disregard.  In addition, to receive continued assistance under 
182.22  this section, persons who received medical assistance for 
182.23  families and children but did not receive MFIP-S must have had 
182.24  income less than or equal to the assistance standard for their 
182.25  family size under the state's AFDC plan in effect as of July 16, 
182.26  1996, as required by the Personal Responsibility and Work 
182.27  Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
182.28  Number 104-193, at the time medical assistance eligibility 
182.29  began.  A person who is eligible for extended medical assistance 
182.30  is entitled to six months of assistance without reapplication, 
182.31  unless the assistance unit ceases to include a dependent child.  
182.32  For a person under 21 years of age, medical assistance may not 
182.33  be discontinued within the six-month period of extended 
182.34  eligibility until it has been determined that the person is not 
182.35  otherwise eligible for medical assistance.  Medical assistance 
182.36  may be continued for an additional six months if the person 
183.1   meets all requirements for the additional six months, according 
183.2   to Title XIX of the Social Security Act, as amended by section 
183.3   303 of the Family Support Act of 1988, Public Law Number 100-485.
183.4      Subd. 2.  [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 
183.5   January 1, 1998, or on the date that MFIP-S is implemented in 
183.6   counties which elect to implement MFIP-S earlier under section 
183.7   256J.50, medical assistance may be paid for persons who received 
183.8   MFIP-S or medical assistance for families and children in at 
183.9   least three of the six months preceding the month in which the 
183.10  person became ineligible for MFIP-S or medical assistance, if 
183.11  the ineligibility was the result of the collection of child or 
183.12  spousal support under part D of title IV.  In addition, to 
183.13  receive continued assistance under this section, persons who 
183.14  received medical assistance for families and children but did 
183.15  not receive MFIP-S must have had income less than or equal to 
183.16  the assistance standard for their family size under the state's 
183.17  AFDC plan in effect as of July 16, 1996, as required by the 
183.18  Personal Responsibility and Work Opportunity Reconciliation Act 
183.19  of 1996 (PRWORA), Public Law Number 104-193, at the time medical 
183.20  assistance eligibility began.  A person who is eligible for 
183.21  extended medical assistance under this subdivision is entitled 
183.22  to four months of assistance without reapplication, unless the 
183.23  assistance unit ceases to include a dependent child.  For a 
183.24  person under 21 years of age, medical assistance may not be 
183.25  discontinued within the four-month period of extended 
183.26  eligibility until it has been determined that the person is not 
183.27  otherwise eligible for medical assistance. 
183.28     Sec. 23.  Minnesota Statutes 1996, section 256D.01, 
183.29  subdivision 1, is amended to read: 
183.30     Subdivision 1.  [POLICY.] The objectives of sections 
183.31  256D.01 to 256D.21 are to provide a sound administrative 
183.32  structure for public assistance programs; to maximize the use of 
183.33  federal money for public assistance purposes; to provide an 
183.34  integrated public assistance program for all persons eligible 
183.35  households in the state without adequate income or resources to 
183.36  maintain a subsistence reasonably compatible with decency and 
184.1   health; and to provide services to help employable and 
184.2   potentially employable persons prepare for and attain 
184.3   self-sufficiency and obtain permanent work. 
184.4      It is declared to be the policy of this state that persons 
184.5   eligible households unable to provide for themselves and not 
184.6   otherwise provided for by law and who meet the eligibility 
184.7   requirements of sections 256D.01 to 256D.21 are entitled to 
184.8   receive grants of general assistance necessary to maintain a 
184.9   subsistence reasonably compatible with decency and health.  
184.10  Providing this assistance is a matter of public concern and a 
184.11  necessity in promoting the public health and welfare. 
184.12     Section 23 is effective January 1, 1998. 
184.13     Sec. 24.  Minnesota Statutes 1996, section 256D.01, 
184.14  subdivision 1a, is amended to read: 
184.15     Subd. 1a.  [STANDARDS.] (a) A principal objective in 
184.16  providing general assistance is to provide for persons single 
184.17  adults or childless couples ineligible for federal programs who 
184.18  are unable to provide for themselves.  The minimum standard of 
184.19  assistance determines the total amount of the general assistance 
184.20  grant without separate standards for shelter, utilities, or 
184.21  other needs. 
184.22     (b) The commissioner shall set the standard of assistance 
184.23  for an assistance unit consisting of an adult recipient who is 
184.24  childless and unmarried or living apart from children and spouse 
184.25  and who does not live with a parent or parents or a legal 
184.26  custodian.  When the other standards specified in this 
184.27  subdivision increase, this standard must also be increased by 
184.28  the same percentage. 
184.29     (c) For an assistance unit consisting of a single adult who 
184.30  lives with a parent or parents, the general assistance standard 
184.31  of assistance is the amount that the aid to families with 
184.32  dependent children standard of assistance, in effect on July 16, 
184.33  1996, would increase if the recipient were added as an 
184.34  additional minor child to an assistance unit consisting of the 
184.35  recipient's parent and all of that parent's family members, 
184.36  except that the standard may not exceed the standard for a 
185.1   general assistance recipient living alone.  Benefits received by 
185.2   a responsible relative of the assistance unit under the 
185.3   supplemental security income program, a workers' compensation 
185.4   program, the Minnesota supplemental aid program, or any other 
185.5   program based on the responsible relative's disability, and any 
185.6   benefits received by a responsible relative of the assistance 
185.7   unit under the social security retirement program, may not be 
185.8   counted in the determination of eligibility or benefit level for 
185.9   the assistance unit.  Except as provided below, the assistance 
185.10  unit is ineligible for general assistance if the available 
185.11  resources or the countable income of the assistance unit and the 
185.12  parent or parents with whom the assistance unit lives are such 
185.13  that a family consisting of the assistance unit's parent or 
185.14  parents, the parent or parents' other family members and the 
185.15  assistance unit as the only or additional minor child would be 
185.16  financially ineligible for general assistance.  For the purposes 
185.17  of calculating the countable income of the assistance unit's 
185.18  parent or parents, the calculation methods, income deductions, 
185.19  exclusions, and disregards used when calculating the countable 
185.20  income for a single adult or childless couple must be used. 
185.21     (d) For an assistance unit consisting of a childless 
185.22  couple, the standards of assistance are the same as the first 
185.23  and second adult standards of the aid to families with dependent 
185.24  children program in effect on July 16, 1996.  If one member of 
185.25  the couple is not included in the general assistance grant, the 
185.26  standard of assistance for the other is the second adult 
185.27  standard of the aid to families with dependent children program. 
185.28     (e) For an assistance unit consisting of all members of a 
185.29  family, the standards of assistance are the same as the 
185.30  standards of assistance that apply to a family under the aid to 
185.31  families with dependent children program if that family had the 
185.32  same number of parents and children as the assistance unit under 
185.33  general assistance and if all members of that family were 
185.34  eligible for the aid to families with dependent children 
185.35  program.  If one or more members of the family are not included 
185.36  in the assistance unit for general assistance, the standards of 
186.1   assistance for the remaining members are the same as the 
186.2   standards of assistance that apply to an assistance unit 
186.3   composed of the entire family, less the standards of assistance 
186.4   for a family of the same number of parents and children as those 
186.5   members of the family who are not in the assistance unit for 
186.6   general assistance.  In no case shall the standard for family 
186.7   members who are in the assistance unit for general assistance, 
186.8   when combined with the standard for family members who are not 
186.9   in the general assistance unit, total more than the standard for 
186.10  the entire family if all members were in an AFDC assistance 
186.11  unit.  A child may not be excluded from the assistance unit 
186.12  unless income intended for its benefit is received from a 
186.13  federally aided categorical assistance program or supplemental 
186.14  security income.  The income of a child who is excluded from the 
186.15  assistance unit may not be counted in the determination of 
186.16  eligibility or benefit level for the assistance unit. 
186.17     (f) An assistance unit consisting of one or more members of 
186.18  a family must have its grant determined using the policies and 
186.19  procedures of the aid to families with dependent children 
186.20  program, except that, until June 30, 1995, in cases where a 
186.21  county agency has developed or approved a case plan that 
186.22  includes reunification with the children, foster care 
186.23  maintenance payments made under state or local law for a child 
186.24  who is temporarily absent from the assistance unit must not be 
186.25  considered income to the child and the payments must not be 
186.26  counted in the determination of the eligibility or benefit level 
186.27  of the assistance unit.  Otherwise, the standard of assistance 
186.28  must be determined according to paragraph (e); the first $50 of 
186.29  total child support received by an assistance unit in a month 
186.30  must be excluded and the balance counted as unearned income. 
186.31     Section 24 is effective January 1, 1998. 
186.32     Sec. 25.  Minnesota Statutes 1996, section 256D.01, 
186.33  subdivision 1e, is amended to read: 
186.34     Subd. 1e.  [RULES REGARDING EMERGENCY ASSISTANCE.] In order 
186.35  to maximize the use of federal funds, The commissioner shall 
186.36  adopt rules, to the extent permitted by federal law, for 
187.1   eligibility for the emergency assistance program under aid to 
187.2   families with dependent children, and under the terms of 
187.3   sections 256D.01 to 256D.21 for general assistance, to require 
187.4   use of the emergency program under aid to families with 
187.5   dependent children or MFIP-S as the primary financial resource 
187.6   when available.  The commissioner shall adopt rules for 
187.7   eligibility for general assistance of persons with seasonal 
187.8   income and may attribute seasonal income to other periods not in 
187.9   excess of one year from receipt by an applicant or recipient.  
187.10  General assistance payments may not be made for foster care, 
187.11  child welfare services, or other social services.  Vendor 
187.12  payments and vouchers may be issued only as authorized in 
187.13  sections 256D.05, subdivision 6, and 256D.09. 
187.14     Sec. 26.  Minnesota Statutes 1996, section 256D.02, 
187.15  subdivision 6, is amended to read: 
187.16     Subd. 6.  "Child" means an adult or minor child or 
187.17  emancipated minor or, until December 31, 1997, the minor child 
187.18  of an individual. 
187.19     Sec. 27.  Minnesota Statutes 1996, section 256D.02, 
187.20  subdivision 12a, is amended to read: 
187.21     Subd. 12a.  [RESIDENT.] (a) For purposes of eligibility for 
187.22  general assistance and general assistance medical care, a person 
187.23  must be a resident of this state.  
187.24     (b) A "resident" is a person living in the state for at 
187.25  least 30 days with the intention of making the person's home 
187.26  here and not for any temporary purpose.  Notwithstanding section 
187.27  256G.03, time spent in a shelter for battered women shall count 
187.28  toward satisfying the 30-day residency requirement.  All 
187.29  applicants for these programs are required to demonstrate the 
187.30  requisite intent and can do so in any of the following ways: 
187.31     (1) by showing that the applicant maintains a residence at 
187.32  a verified address, other than a place of public accommodation.  
187.33  An applicant may verify a residence address by presenting a 
187.34  valid state driver's license, a state identification card, a 
187.35  voter registration card, a rent receipt, a statement by the 
187.36  landlord, apartment manager, or homeowner verifying that the 
188.1   individual is residing at the address, or other form of 
188.2   verification approved by the commissioner; or 
188.3      (2) by verifying residence in accordance with according to 
188.4   Minnesota Rules, part 9500.1219, subpart 3, item C. 
188.5      (b) (c) An applicant who has been in the state for less 
188.6   than 30 days shall be considered a resident if the applicant can 
188.7   provide documentation: 
188.8      (1) that the applicant was born in the state; 
188.9      (2) that the applicant has been a long-time resident of the 
188.10  state or was formerly a resident of the state for at least 365 
188.11  days and is returning to the state from a temporary absence, as 
188.12  those terms are defined in rules adopted by the commissioner; 
188.13     (3) that the applicant has come to the state to join a 
188.14  close relative which, for purposes of this subdivision, means a 
188.15  parent, grandparent, brother, sister, spouse, or child; or 
188.16     (4) that the applicant has come to this state to accept a 
188.17  bona fide offer of employment for which the applicant is 
188.18  eligible.  
188.19     For general assistance medical care, a county agency shall 
188.20  waive the 30-day residency requirement in cases of emergencies, 
188.21  including medical emergencies, or where unusual hardship would 
188.22  result from denial of general assistance medical care.  For 
188.23  general assistance, a county may shall waive the 30-day 
188.24  residency requirement in cases of emergencies, including medical 
188.25  emergencies, or where unusual hardship would result from denial 
188.26  of general assistance.  For purposes of this subdivision, 
188.27  "unusual hardship" means the applicant is without shelter or is 
188.28  without available resources for food. 
188.29     The county agency must report to the commissioner within 30 
188.30  days on any waiver granted under this section.  The county shall 
188.31  not deny an application solely because the applicant does not 
188.32  meet at least one of the criteria in this subdivision, but shall 
188.33  continue to process the application and leave the application 
188.34  pending until the residency requirement is met or until 
188.35  eligibility or ineligibility is established. 
188.36     (d) For purposes of paragraph (c), the following 
189.1   definitions apply (1) "metropolitan statistical area" is as 
189.2   defined by the U.S. Census Bureau; (2) "shelter" includes any 
189.3   shelter that is located within the metropolitan statistical area 
189.4   containing the county and for which the applicant is eligible, 
189.5   provided the applicant does not have to travel more than 20 
189.6   miles to reach the shelter and has access to transportation to 
189.7   the shelter.  Clause (2) does not apply to counties in the 
189.8   Minneapolis-St. Paul metropolitan statistical area. 
189.9      (e) For purposes of eligibility for emergency general 
189.10  assistance, the 30-day residency requirement in paragraph (b) 
189.11  shall not be waived. 
189.12     (f) If any provision of this subdivision is enjoined from 
189.13  implementation or found unconstitutional by any court of 
189.14  competent jurisdiction, the remaining provisions shall remain 
189.15  valid and shall be given full effect. 
189.16     Section 27 is effective July 1, 1997. 
189.17     Sec. 28.  [256D.024] [PERSONS PROHIBITED FROM RECEIVING 
189.18  GENERAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, MINNESOTA 
189.19  SUPPLEMENTAL AID.] 
189.20     Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 
189.21  an applicant has been convicted of a drug offense after July 1, 
189.22  1997, the assistance unit is ineligible for benefits under this 
189.23  chapter until five years after the applicant has completed terms 
189.24  of the court-ordered sentence. 
189.25     (b) For the purposes of this subdivision, "drug offense" 
189.26  means a conviction that occurred after July 1, 1997, of sections 
189.27  152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
189.28  means a conviction in another jurisdiction of the possession, 
189.29  use, or distribution of a controlled substance, or conspiracy to 
189.30  commit any of these offenses, if the offense occurred after July 
189.31  1, 1997, and the conviction is a felony offense in that 
189.32  jurisdiction, or in the case of New Jersey, a high misdemeanor. 
189.33     Subd. 2.  [PAROLE VIOLATORS.] An individual violating a 
189.34  condition of probation or parole or supervised release imposed 
189.35  under federal law or the law of any state is ineligible to 
189.36  receive benefits under this chapter. 
190.1      Subd. 3.  [FLEEING FELONS.] An individual who is fleeing to 
190.2   avoid prosecution, or custody, or confinement after conviction 
190.3   for a crime that is a felony under the laws of the jurisdiction 
190.4   from which the individual flees, or in the case of New Jersey, 
190.5   is a high misdemeanor, is ineligible to receive benefits under 
190.6   this chapter. 
190.7      Subd. 4.  [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 
190.8   FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 
190.9   individual who is convicted in federal or state court of having 
190.10  made a fraudulent statement or representation with respect to 
190.11  the place of residence of the individual in order to receive 
190.12  assistance simultaneously from two or more states is ineligible 
190.13  to receive benefits under this chapter for ten years beginning 
190.14  on the date of the conviction. 
190.15     Sec. 29.  Minnesota Statutes 1996, section 256D.03, 
190.16  subdivision 3, is amended to read: 
190.17     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
190.18  (a) General assistance medical care may be paid for any person 
190.19  who is not eligible for medical assistance under chapter 256B, 
190.20  including eligibility for medical assistance based on a 
190.21  spenddown of excess income according to section 256B.056, 
190.22  subdivision 5, and: 
190.23     (1) who is receiving assistance under section 256D.05, or 
190.24  who is having a payment made on the person's behalf under 
190.25  sections 256I.01 to 256I.06; or 
190.26     (2)(i) who is a resident of Minnesota; and whose equity in 
190.27  assets is not in excess of $1,000 per assistance unit.  No asset 
190.28  test shall be applied to children and their parents living in 
190.29  the same household.  Exempt assets, the reduction of excess 
190.30  assets, and the waiver of excess assets must conform to the 
190.31  medical assistance program in chapter 256B, with the following 
190.32  exception:  the maximum amount of undistributed funds in a trust 
190.33  that could be distributed to or on behalf of the beneficiary by 
190.34  the trustee, assuming the full exercise of the trustee's 
190.35  discretion under the terms of the trust, must be applied toward 
190.36  the asset maximum; and 
191.1      (ii) who has countable income not in excess of the 
191.2   assistance standards established in section 256B.056, 
191.3   subdivision 4, or whose excess income is spent down pursuant 
191.4   according to section 256B.056, subdivision 5, using a six-month 
191.5   budget period, except that a one-month budget period must be 
191.6   used for recipients residing in a long-term care facility.  The 
191.7   method for calculating earned income disregards and deductions 
191.8   for a person who resides with a dependent child under age 21 
191.9   shall be as specified in section 256.74, subdivision 1 follow 
191.10  section 256B.056.  However, if a disregard of $30 and one-third 
191.11  of the remainder described in section 256.74, subdivision 1, 
191.12  clause (4), has been applied to the wage earner's income, the 
191.13  disregard shall not be applied again until the wage earner's 
191.14  income has not been considered in an eligibility determination 
191.15  for general assistance, general assistance medical care, medical 
191.16  assistance, or aid to families with dependent children or MFIP-S 
191.17  for 12 consecutive months.  The earned income and work expense 
191.18  deductions for a person who does not reside with a dependent 
191.19  child under age 21 shall be the same as the method used to 
191.20  determine eligibility for a person under section 256D.06, 
191.21  subdivision 1, except the disregard of the first $50 of earned 
191.22  income is not allowed; or 
191.23     (3) who would be eligible for medical assistance except 
191.24  that the person resides in a facility that is determined by the 
191.25  commissioner or the federal health care financing administration 
191.26  to be an institution for mental diseases. 
191.27     (b) Eligibility is available for the month of application, 
191.28  and for three months prior to application if the person was 
191.29  eligible in those prior months.  A redetermination of 
191.30  eligibility must occur every 12 months. 
191.31     (c) General assistance medical care is not available for a 
191.32  person in a correctional facility unless the person is detained 
191.33  by law for less than one year in a county correctional or 
191.34  detention facility as a person accused or convicted of a crime, 
191.35  or admitted as an inpatient to a hospital on a criminal hold 
191.36  order, and the person is a recipient of general assistance 
192.1   medical care at the time the person is detained by law or 
192.2   admitted on a criminal hold order and as long as the person 
192.3   continues to meet other eligibility requirements of this 
192.4   subdivision.  
192.5      (d) General assistance medical care is not available for 
192.6   applicants or recipients who do not cooperate with the county 
192.7   agency to meet the requirements of medical assistance. 
192.8      (e) In determining the amount of assets of an individual, 
192.9   there shall be included any asset or interest in an asset, 
192.10  including an asset excluded under paragraph (a), that was given 
192.11  away, sold, or disposed of for less than fair market value 
192.12  within the 60 months preceding application for general 
192.13  assistance medical care or during the period of eligibility.  
192.14  Any transfer described in this paragraph shall be presumed to 
192.15  have been for the purpose of establishing eligibility for 
192.16  general assistance medical care, unless the individual furnishes 
192.17  convincing evidence to establish that the transaction was 
192.18  exclusively for another purpose.  For purposes of this 
192.19  paragraph, the value of the asset or interest shall be the fair 
192.20  market value at the time it was given away, sold, or disposed 
192.21  of, less the amount of compensation received.  For any 
192.22  uncompensated transfer, the number of months of ineligibility, 
192.23  including partial months, shall be calculated by dividing the 
192.24  uncompensated transfer amount by the average monthly per person 
192.25  payment made by the medical assistance program to skilled 
192.26  nursing facilities for the previous calendar year.  The 
192.27  individual shall remain ineligible until this fixed period has 
192.28  expired.  The period of ineligibility may exceed 30 months, and 
192.29  a reapplication for benefits after 30 months from the date of 
192.30  the transfer shall not result in eligibility unless and until 
192.31  the period of ineligibility has expired.  The period of 
192.32  ineligibility begins in the month the transfer was reported to 
192.33  the county agency, or if the transfer was not reported, the 
192.34  month in which the county agency discovered the transfer, 
192.35  whichever comes first.  For applicants, the period of 
192.36  ineligibility begins on the date of the first approved 
193.1   application. 
193.2      (f) When determining eligibility for any state benefits 
193.3   under this subdivision, the income and resources of all 
193.4   noncitizens shall be deemed to include their sponsor's income 
193.5   and resources as defined in the Personal Responsibility and Work 
193.6   Opportunity Reconciliation Act of 1996, title IV, Public Law 
193.7   Number 104-193, section 421. 
193.8      (f) (g)(1) Beginning October 1, 1993, An undocumented alien 
193.9   noncitizen or a nonimmigrant is ineligible for general 
193.10  assistance medical care other than emergency services.  For 
193.11  purposes of this subdivision, a nonimmigrant is an individual in 
193.12  one or more of the classes listed in United States Code, title 
193.13  8, section 1101(a)(15), and an undocumented alien noncitizen is 
193.14  an individual who resides in the United States without the 
193.15  approval or acquiescence of the Immigration and Naturalization 
193.16  Service. 
193.17     (2) This subdivision does not apply to a child under age 
193.18  18, to a Cuban or Haitian entrant as defined in Public Law 
193.19  Number 96-422, section 501(e)(1) or (2)(a), or to an alien a 
193.20  noncitizen who is aged, blind, or disabled as defined in United 
193.21  States Code, title 42, section 1382c(a)(1) Code of Federal 
193.22  Regulations, title 42, sections 435.520, 435.530, 435.531, 
193.23  435.540, and 435.541, who cooperates with the Immigration and 
193.24  Naturalization Service to pursue any applicable immigration 
193.25  status, including citizenship, that would qualify the individual 
193.26  for medical assistance with federal financial participation. 
193.27     (3) For purposes of paragraph (f), "emergency services" has 
193.28  the meaning given in Code of Federal Regulations, title 42, 
193.29  section 440.255(b)(1), except that it also means services 
193.30  rendered because of suspected or actual pesticide poisoning. 
193.31     (4) Notwithstanding any other provision of law, a 
193.32  noncitizen who is ineligible for medical assistance due to the 
193.33  deeming of a sponsor's income and resources, is ineligible for 
193.34  general assistance medical care. 
193.35     Sec. 30.  Minnesota Statutes 1996, section 256D.05, 
193.36  subdivision 1, is amended to read: 
194.1      Subdivision 1.  [ELIGIBILITY.] (a) Each person or family 
194.2   whose assistance unit with income and resources are less than 
194.3   the standard of assistance established by the commissioner 
194.4   and with a member who is a resident of the state shall be 
194.5   eligible for and entitled to general assistance if the person or 
194.6   family assistance unit is: 
194.7      (1) a person who is suffering from a professionally 
194.8   certified permanent or temporary illness, injury, or incapacity 
194.9   which is expected to continue for more than 30 days and which 
194.10  prevents the person from obtaining or retaining employment; 
194.11     (2) a person whose presence in the home on a substantially 
194.12  continuous basis is required because of the professionally 
194.13  certified illness, injury, incapacity, or the age of another 
194.14  member of the household; 
194.15     (3) a person who has been placed in, and is residing in, a 
194.16  licensed or certified facility for purposes of physical or 
194.17  mental health or rehabilitation, or in an approved chemical 
194.18  dependency domiciliary facility, if the placement is based on 
194.19  illness or incapacity and is pursuant according to a plan 
194.20  developed or approved by the county agency through its director 
194.21  or designated representative or in a facility which has been 
194.22  designated by the commissioner of corrections as a battered 
194.23  women's shelter; 
194.24     (4) a person who resides in a shelter facility described in 
194.25  subdivision 3; 
194.26     (5) a person not described in clause (1) or (3) who is 
194.27  diagnosed by a licensed physician, psychological practitioner, 
194.28  or other qualified professional, as mentally retarded or 
194.29  mentally ill, and that condition prevents the person from 
194.30  obtaining or retaining employment; 
194.31     (6) (5) a person who has an application pending for, or is 
194.32  appealing termination of benefits from, the social security 
194.33  disability program or the program of supplemental security 
194.34  income for the aged, blind, and disabled, provided the person 
194.35  has a professionally certified permanent or temporary illness, 
194.36  injury, or incapacity which is expected to continue for more 
195.1   than 30 days and which prevents the person from obtaining or 
195.2   retaining employment; 
195.3      (7) (6) a person who is unable to obtain or retain 
195.4   employment because advanced age significantly affects the 
195.5   person's ability to seek or engage in substantial work; 
195.6      (8) (7) a person who has been assessed by a vocational 
195.7   specialist and, in consultation with the county agency, has been 
195.8   determined to be unemployable for purposes of this item, clause; 
195.9   a person is considered employable if there exist positions of 
195.10  employment in the local labor market, regardless of the current 
195.11  availability of openings for those positions, that the person is 
195.12  capable of performing.  The person's eligibility under this 
195.13  category must be reassessed at least annually.  The county 
195.14  agency must provide notice to the person not later than 30 days 
195.15  before annual eligibility under this item ends, informing the 
195.16  person of the date annual eligibility will end and the need for 
195.17  vocational assessment if the person wishes to continue 
195.18  eligibility under this clause.  For purposes of establishing 
195.19  eligibility under this clause, it is the applicant's or 
195.20  recipient's duty to obtain any needed vocational assessment; 
195.21     (9) (8) a person who is determined by the county agency, in 
195.22  accordance with according to permanent rules adopted by the 
195.23  commissioner, to be learning disabled, provided that if a 
195.24  rehabilitation plan for the person is developed or approved by 
195.25  the county agency, the person is following the plan; 
195.26     (10) (9) a child under the age of 18 who is not living with 
195.27  a parent, stepparent, or legal custodian, but and only if:  the 
195.28  child is legally emancipated or living with an adult with the 
195.29  consent of an agency acting as a legal custodian; the child is 
195.30  at least 16 years of age and the general assistance grant is 
195.31  approved by the director of the county agency or a designated 
195.32  representative as a component of a social services case plan for 
195.33  the child; or the child is living with an adult with the consent 
195.34  of the child's legal custodian and the county agency.  For 
195.35  purposes of this clause, "legally emancipated" means a person 
195.36  under the age of 18 years who:  (i) has been married; (ii) is on 
196.1   active duty in the uniformed services of the United States; 
196.2   (iii) has been emancipated by a court of competent jurisdiction; 
196.3   or (iv) is otherwise considered emancipated under Minnesota law, 
196.4   and for whom county social services has not determined that a 
196.5   social services case plan is necessary, for reasons other 
196.6   than that the child has failed or refuses to cooperate with the 
196.7   county agency in developing the plan; 
196.8      (11) (10) until January 1, 1998, a woman in the last 
196.9   trimester of pregnancy who does not qualify for aid to families 
196.10  with dependent children.  A woman who is in the last trimester 
196.11  of pregnancy who is currently receiving aid to families with 
196.12  dependent children may be granted emergency general assistance 
196.13  to meet emergency needs; 
196.14     (12) (11) a person who is eligible for displaced homemaker 
196.15  services, programs, or assistance under section 268.96, but only 
196.16  if that person is enrolled as a full-time student; 
196.17     (13) (12) a person who lives more than two hours round-trip 
196.18  traveling time from any potential suitable employment; 
196.19     (14) (13) a person who is involved with protective or 
196.20  court-ordered services that prevent the applicant or recipient 
196.21  from working at least four hours per day; 
196.22     (15) (14) until January 1, 1998, (i) a family as defined in 
196.23  section 256D.02, subdivision 5, which is ineligible for the aid 
196.24  to families with dependent children program. 
196.25     (ii) unless exempt under section 256D.051, subdivision 3a, 
196.26  each adult in the unit must participate in and cooperate with 
196.27  the food stamp employment and training program under section 
196.28  256D.051 each month that the unit receives general assistance 
196.29  benefits.  The recipient's participation must begin no later 
196.30  than the first day of the first full month following the 
196.31  determination of eligibility for general assistance benefits.  
196.32  To the extent of available resources, and with the county 
196.33  agency's consent, the recipient may voluntarily continue to 
196.34  participate in food stamp employment and training services for 
196.35  up to three additional consecutive months immediately following 
196.36  termination of general assistance benefits in order to complete 
197.1   the provisions of the recipient's employability development 
197.2   plan.  If an adult member fails without good cause to 
197.3   participate in or cooperate with the food stamp employment and 
197.4   training program, the county agency shall concurrently terminate 
197.5   that person's eligibility for general assistance and food stamps 
197.6   for two months or until compliance is achieved, whichever is 
197.7   shorter, using the notice, good cause, conciliation and 
197.8   termination procedures specified in section 256D.051; or 
197.9      (16) (15) a person over age 18 whose primary language is 
197.10  not English and who is attending high school at least half time; 
197.11     (16) a person under the age of 18 who suffers from 
197.12  maladaptive behavior in the personal and behavior function area, 
197.13  which for purposes of this section, is defined in the Code of 
197.14  Federal Regulations and has the meaning given to these terms as 
197.15  of August 21, 1996; or 
197.16     (17) a person whose alcohol and drug addiction is a 
197.17  material factor that contributes to the person's disability so 
197.18  long as the person is receiving treatment from a licensed 
197.19  chemical dependency provider, or is on a waiting list to receive 
197.20  such treatment. 
197.21     (b) Persons or families who are not Assistance units that 
197.22  do not include a state residents resident but who are otherwise 
197.23  eligible for general assistance may receive emergency general 
197.24  assistance to meet emergency needs. 
197.25     (c) As a condition of eligibility under paragraph (a), 
197.26  clauses (1), (3), (5) (4), (8) (7), and (9) (8), the 
197.27  recipient must complete an interim assistance agreement and must 
197.28  apply for other maintenance benefits as specified in section 
197.29  256D.06, subdivision 5, and must comply with efforts to 
197.30  determine the recipient's eligibility for those other 
197.31  maintenance benefits.  
197.32     (d) The burden of providing documentation for a county 
197.33  agency to use to verify eligibility for general assistance or 
197.34  for exemption from the food stamp employment and training 
197.35  program is upon the applicant or recipient.  The county agency 
197.36  shall use documents already in its possession to verify 
198.1   eligibility, and shall help the applicant or recipient obtain 
198.2   other existing verification necessary to determine eligibility 
198.3   which the applicant or recipient does not have and is unable to 
198.4   obtain. 
198.5      Sec. 31.  Minnesota Statutes 1996, section 256D.05, 
198.6   subdivision 5, is amended to read: 
198.7      Subd. 5.  [TRANSFERS OF PROPERTY.] The equity value of real 
198.8   and personal property transferred without reasonable 
198.9   compensation within 12 months preceding the date of application 
198.10  for general assistance must be included in determining the 
198.11  resources of an assistance unit in the same manner as in the aid 
198.12  to families with dependent children program under chapter 256 or 
198.13  MFIP-S under chapter 256J. 
198.14     Sec. 32.  Minnesota Statutes 1996, section 256D.05, 
198.15  subdivision 8, is amended to read: 
198.16     Subd. 8.  [PERSONS INELIGIBLE CITIZENSHIP.] (a) Beginning 
198.17  October 1, 1993, an undocumented alien or a nonimmigrant is 
198.18  ineligible for general assistance benefits.  For purposes of 
198.19  this subdivision, a nonimmigrant is an individual in one or more 
198.20  of the classes listed in United States Code, title 8, section 
198.21  1101(a)(15), and an undocumented alien is an individual who 
198.22  resides in the United States without the approval or 
198.23  acquiescence of the Immigration and Naturalization Service. 
198.24     (b) This subdivision does not apply to a child under age 
198.25  18, to a Cuban or Haitian entrant as defined in Public Law 
198.26  Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 
198.27  is aged, blind, or disabled as defined in United States Code, 
198.28  title 42, section 1382c(a)(1).  Effective July 1, 1997, 
198.29  citizenship requirements for applicants and recipients under 
198.30  sections 256D.01 to 256D.21 shall be determined the same as 
198.31  under section 256J.11.  The income of sponsors of noncitizens 
198.32  shall be deemed available to general assistance and general 
198.33  assistance medical care applicants and recipients according to 
198.34  the Personal Responsibility and Work Opportunity Reconciliation 
198.35  Act of 1996, Public Law Number 104-193, Title IV, section 421.  
198.36  For purposes of this subdivision "sponsor" means an individual 
199.1   or organization.  
199.2      Sec. 33.  Minnesota Statutes 1996, section 256D.051, 
199.3   subdivision 1a, is amended to read: 
199.4      Subd. 1a.  [NOTICES; CONCILIATION CONFERENCE; AND 
199.5   SANCTIONS.] (a) At the time the county agency notifies the 
199.6   household that it is eligible for food stamps, the county agency 
199.7   must inform all mandatory employment and training services 
199.8   participants as identified in subdivision 1 in the household 
199.9   that they must comply with all food stamp employment and 
199.10  training program requirements each month, including the 
199.11  requirement to attend an initial orientation to the food stamp 
199.12  employment and training program and that food stamp eligibility 
199.13  will end unless the participants comply with the requirements 
199.14  specified in the notice.  
199.15     (b) A participant who fails without good cause to comply 
199.16  with food stamp employment and training program requirements of 
199.17  this section, including attendance at orientation, will lose 
199.18  food stamp eligibility for two months or until the county agency 
199.19  determines that the participant has complied with the program 
199.20  requirements, whichever is shorter. the following periods: 
199.21     (1) for the first occurrence, for one month or until the 
199.22  person complies with the requirements not previously complied 
199.23  with, whichever is longer; 
199.24     (2) for the second occurrence, for three months or until 
199.25  the person complies with the requirements not previously 
199.26  complied with, whichever is longer; or 
199.27     (3) for the third and any subsequent occurrence, for six 
199.28  months or until the person complies with the requirements not 
199.29  previously complied with, whichever is longer. 
199.30     If the participant is not the food stamp head of household, 
199.31  the person shall be considered an ineligible household member 
199.32  for food stamp purposes.  If the participant is the food stamp 
199.33  head of household, the entire household is ineligible for food 
199.34  stamps as provided in Code of Federal Regulations, title 7, 
199.35  section 273.7(g).  "Good cause" means circumstances beyond the 
199.36  control of the participant, such as illness or injury, illness 
200.1   or injury of another household member requiring the 
200.2   participant's presence, a household emergency, or the inability 
200.3   to obtain child care for children between the ages of six and 12 
200.4   or to obtain transportation needed in order for the participant 
200.5   to meet the food stamp employment and training program 
200.6   participation requirements. 
200.7      (c) The county agency shall mail or hand deliver a notice 
200.8   to the participant not later than five days after determining 
200.9   that the participant has failed without good cause to comply 
200.10  with food stamp employment and training program requirements 
200.11  which specifies the requirements that were not complied with, 
200.12  the factual basis for the determination of noncompliance, and 
200.13  the right to reinstate eligibility upon a showing of good 
200.14  cause or the for failure to meet the requirements,.  The notice 
200.15  must ask the reason for the noncompliance, and must identify the 
200.16  participant's appeal rights.  The notice must request that the 
200.17  participant inform the county agency if the participant believes 
200.18  that good cause existed for the failure to comply, must offer 
200.19  the participant a conciliation conference as provided in 
200.20  paragraph (d), and must state that the county agency intends to 
200.21  terminate eligibility for food stamp benefits due to failure to 
200.22  comply with food stamp employment and training program 
200.23  requirements. 
200.24     (d) The county agency must offer a conciliation conference 
200.25  to participants who have failed to comply with food stamp 
200.26  employment and training program requirements.  The purpose of 
200.27  the conference is to determine the cause for noncompliance, to 
200.28  attempt to resolve the problem causing the noncompliance so that 
200.29  all requirements are complied with, and to determine if good 
200.30  cause for noncompliance was present.  The conciliation period 
200.31  shall run for ten working days from the date of the notice 
200.32  required in paragraph (c).  Information about how to request a 
200.33  conciliation conference must be specified in the notice required 
200.34  in paragraph (c).  If the county agency determines that the 
200.35  participant, during the conciliation period, complied with all 
200.36  food stamp employment and training program requirements that the 
201.1   recipient was required to comply with prior to and during the 
201.2   conciliation period, or if the county agency determines that 
201.3   good cause for failing to comply with the requirements was 
201.4   present, a sanction on the participant's or household's food 
201.5   stamp eligibility shall not be imposed. 
201.6      (e) If the county agency determines that the participant 
201.7   did not comply during the conciliation period month with all 
201.8   food stamp employment and training program requirements that 
201.9   were in effect prior to and during the conciliation period, and 
201.10  if the county agency determines that good cause was not present, 
201.11  the county must provide a ten-day notice of termination of food 
201.12  stamp benefits.  The termination notice must be issued following 
201.13  the last day of the conciliation period.  The amount of food 
201.14  stamps that are withheld from the household and determination of 
201.15  the impact of the sanction on other household members is 
201.16  governed by Code of Federal Regulations, title 7, section 273.7. 
201.17     (f) (e) The participant may appeal the termination of food 
201.18  stamp benefits under the provisions of section 256.045. 
201.19     Sec. 34.  Minnesota Statutes 1996, section 256D.051, 
201.20  subdivision 2a, is amended to read: 
201.21     Subd. 2a.  [DUTIES OF COMMISSIONER.] In addition to any 
201.22  other duties imposed by law, the commissioner shall: 
201.23     (1) based on this section and section 256D.052 and Code of 
201.24  Federal Regulations, title 7, section 273.7, supervise the 
201.25  administration of food stamp employment and training services to 
201.26  county agencies; 
201.27     (2) disburse money appropriated for food stamp employment 
201.28  and training services to county agencies based upon the county's 
201.29  costs as specified in section 256D.06; 
201.30     (3) accept and supervise the disbursement of any funds that 
201.31  may be provided by the federal government or from other sources 
201.32  for use in this state for food stamp employment and training 
201.33  services; and 
201.34     (4) cooperate with other agencies including any agency of 
201.35  the United States or of another state in all matters concerning 
201.36  the powers and duties of the commissioner under this section and 
202.1   section 256D.052; and 
202.2      (5) in cooperation with the commissioner of economic 
202.3   security, ensure that each component of an employment and 
202.4   training program carried out under this section is delivered 
202.5   through a statewide workforce development system, unless the 
202.6   component is not available locally through such a system. 
202.7      Sec. 35.  Minnesota Statutes 1996, section 256D.051, 
202.8   subdivision 3a, is amended to read: 
202.9      Subd. 3a.  [PERSONS REQUIRED TO REGISTER FOR AND 
202.10  PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 
202.11  (a) To the extent required under Code of Federal Regulations, 
202.12  title 7, section 273.7(a), each applicant for and recipient of 
202.13  food stamps is required to register for work as a condition of 
202.14  eligibility for food stamp benefits.  Applicants and recipients 
202.15  are registered by signing an application or annual reapplication 
202.16  for food stamps, and must be informed that they are registering 
202.17  for work by signing the form.  
202.18     (b) The commissioner shall determine, within federal 
202.19  requirements, persons required to participate in the food stamp 
202.20  employment and training (FSET) program. 
202.21     (c) The following food stamp recipients are exempt from 
202.22  mandatory participation in food stamp employment and training 
202.23  services: 
202.24     (1) recipients of benefits under the AFDC program, MFIP-S 
202.25  program, Minnesota supplemental aid program, or the general 
202.26  assistance program, except that an adult who receives general 
202.27  assistance under section 256D.05, subdivision 1, paragraph (b), 
202.28  is not exempt unless that person qualifies under one of the 
202.29  remaining exemption provisions in this paragraph; 
202.30     (2) a child; 
202.31     (3) a recipient over age 55; 
202.32     (4) a recipient who has a mental or physical illness, 
202.33  injury, or incapacity which is expected to continue for at least 
202.34  30 days and which impairs the recipient's ability to obtain or 
202.35  retain employment as evidenced by professional certification or 
202.36  the receipt of temporary or permanent disability benefits issued 
203.1   by a private or government source; 
203.2      (5) a parent or other household member responsible for the 
203.3   care of either a dependent child in the household who is under 
203.4   age six or a person in the household who is professionally 
203.5   certified as having a physical or mental illness, injury, or 
203.6   incapacity.  Only one parent or other household member may claim 
203.7   exemption under this provision; 
203.8      (6) a recipient receiving unemployment compensation or who 
203.9   has applied for unemployment compensation and has been required 
203.10  to register for work with the department of economic security as 
203.11  part of the unemployment compensation application process; 
203.12     (7) a recipient participating each week in a drug addiction 
203.13  or alcohol abuse treatment and rehabilitation program, provided 
203.14  the operators of the treatment and rehabilitation program, in 
203.15  consultation with the county agency, recommend that the 
203.16  recipient not participate in the food stamp employment and 
203.17  training program; 
203.18     (8) a recipient employed or self-employed for 30 or more 
203.19  hours per week at employment paying at least minimum wage, or 
203.20  who earns wages from employment equal to or exceeding 30 hours 
203.21  multiplied by the federal minimum wage; or 
203.22     (9) a student enrolled at least half time in any school, 
203.23  training program, or institution of higher education.  When 
203.24  determining if a student meets this criteria, the school's, 
203.25  program's or institution's criteria for being enrolled half time 
203.26  shall be used.; or 
203.27     (10) a recipient residing with and responsible for the care 
203.28  of a minor child. 
203.29     Sec. 36.  Minnesota Statutes 1996, section 256D.051, is 
203.30  amended by adding a subdivision to read: 
203.31     Subd. 18.  [WORK EXPERIENCE PLACEMENTS.] (a) To the extent 
203.32  of available resources, each county agency must establish and 
203.33  operate a work experience component in the food stamp employment 
203.34  and training program for recipients who are subject to a federal 
203.35  limit of three months of food stamp eligibility in any 36-month 
203.36  period.  The purpose of the work experience component is to 
204.1   enhance the participant's employability, self-sufficiency, and 
204.2   to provide meaningful, productive work activities. 
204.3      (b) The commissioner shall assist counties in the design 
204.4   and implementation of these components.  The commissioner must 
204.5   ensure that job placements under a work experience component 
204.6   comply with section 256J.72.  Written or oral concurrence with 
204.7   job duties of persons placed under the community work experience 
204.8   program shall be obtained from the appropriate exclusive 
204.9   bargaining representative. 
204.10     (c) Worksites developed under this section are limited to 
204.11  projects that serve a useful public service such as health, 
204.12  social service, environmental protection, education, urban and 
204.13  rural development and redevelopment, welfare, recreation, public 
204.14  facilities, public safety, community service, services to aged 
204.15  or disabled citizens, and child care.  To the extent possible, 
204.16  the prior training, skills, and experience of a recipient must 
204.17  be used in making appropriate work experience assignments. 
204.18     (d) Structured, supervised volunteer work with an agency or 
204.19  organization that is monitored by the county service provider 
204.20  may, with the approval of the county agency, be used as a work 
204.21  experience placement. 
204.22     (e) As a condition of placing a person receiving food 
204.23  stamps in a program under this subdivision, the county agency 
204.24  shall first provide the recipient the opportunity: 
204.25     (1) for placement in suitable subsidized or unsubsidized 
204.26  employment through participation in job search under section 
204.27  256D.051; or 
204.28     (2) for placement in suitable employment through 
204.29  participation in on-the-job training, if such employment is 
204.30  available. 
204.31     (f) The county agency shall limit the maximum monthly 
204.32  number of hours that any participant may work in a work 
204.33  experience placement to a number equal to the amount of the 
204.34  family's monthly food stamp allotment divided by the greater of 
204.35  the federal minimum wage or the applicable state minimum wage.  
204.36  After a participant has been assigned to a position for nine 
205.1   months, the participant may not continue in that assignment 
205.2   unless the maximum number of hours a participant works is no 
205.3   greater than the amount of the participant's food stamp 
205.4   allotment divided by the rate of pay for individuals employed in 
205.5   the same or similar occupations by the same employer at the same 
205.6   site. 
205.7      (g) The participant's employability development plan must 
205.8   include the length of time needed in the work experience 
205.9   program, the need to continue job seeking activities while 
205.10  participating in work experience, and the participant's 
205.11  employment goals. 
205.12     (h) After each six months of a recipient's participation in 
205.13  a work experience job placement, and at the conclusion of each 
205.14  work experience assignment under this section, the county agency 
205.15  shall reassess and revise, as appropriate, the participant's 
205.16  employability development plan. 
205.17     (i) A participant may claim good cause under section 
205.18  256J.57 for failure to cooperate with a work experience job 
205.19  placement.  
205.20     (j) A recipient who has failed without good cause to 
205.21  participate in or comply with the work experience job placement 
205.22  shall be terminated from participation in work experience job 
205.23  activities.  If the recipient is not exempt from mandatory food 
205.24  stamp employment and training program participation under 
205.25  section 256D.051, subdivision 3a, the recipient will be assigned 
205.26  to other mandatory program activities.  If the recipient is 
205.27  exempt from mandatory participation but is participating as a 
205.28  volunteer, the person shall be terminated from the food stamp 
205.29  employment and training program. 
205.30     Sec. 37.  [256D.0512] [BUDGETING LUMP SUMS.] 
205.31     Nonrecurring lump-sum income received by a recipient of 
205.32  general assistance must be budgeted in the normal retrospective 
205.33  cycle. 
205.34     Sec. 38.  Minnesota Statutes 1996, section 256D.055, is 
205.35  amended to read: 
205.36     256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 
206.1      The commissioner of human services shall issue a request 
206.2   for proposals from counties to submit a plan for developing and 
206.3   implementing a county-designed program.  The plan shall be for 
206.4   first-time applicants for aid to families with dependent 
206.5   children (AFDC) and family general assistance (FGA) Minnesota 
206.6   family investment program-statewide (MFIP-S) and, until January 
206.7   1, 1998, aid to families with dependent children (AFDC) and 
206.8   family general assistance and must emphasize the importance of 
206.9   becoming employed and oriented into the work force in order to 
206.10  become self-sufficient.  The plan must target public assistance 
206.11  applicants who are most likely to become self-sufficient quickly 
206.12  with short-term assistance or services such as child care, child 
206.13  support enforcement, or employment and training services.  
206.14     The plan may include vendor payments, mandatory job search, 
206.15  refocusing existing county or provider efforts, or other program 
206.16  features.  The commissioner may approve a county plan which 
206.17  allows a county to use other program funding for the county work 
206.18  focus program in a more flexible manner.  Nothing in this 
206.19  section shall allow payments made to the public assistance 
206.20  applicant to be less than the amount the applicant would have 
206.21  received if the program had not been implemented, or reduce or 
206.22  eliminate a category of eligible participants from the program 
206.23  without legislative approval.  
206.24     The commissioner shall not approve a county plan that would 
206.25  have an adverse impact on the Minnesota family investment plan 
206.26  demonstration.  If the plan is approved by the commissioner, the 
206.27  county may implement the plan.  If the plan is approved by the 
206.28  commissioner, but a federal waiver is necessary to implement the 
206.29  plan, the commissioner shall apply for the necessary federal 
206.30  waivers.  
206.31     Sec. 39.  [256D.057] [SUPPLEMENT FOR CERTAIN DISABLED 
206.32  NONCITIZENS.] 
206.33     (a) For an assistance unit that contains an adult or a 
206.34  minor legal noncitizen who was residing in this state as of 
206.35  March 1, 1997, and lost eligibility for the federal Food Stamp 
206.36  and Supplemental Security Income programs under the provisions 
207.1   of title IV of Public Law Number 104-193, the amount of 
207.2   assistance that the unit is eligible for under section 256D.06 
207.3   shall be increased by an amount equal to the value of the food 
207.4   stamps that the assistance unit would have been eligible for if 
207.5   the noncitizen were a citizen, for each legal noncitizen, 
207.6   provided the legal adult noncitizen in the assistance unit is: 
207.7      (1) enrolled in a literacy class, English as a second 
207.8   language class, or a citizenship class; 
207.9      (2) applying for admission to a literacy class, English as 
207.10  a second language class, or a citizenship class, and is on a 
207.11  waiting list; 
207.12     (3) in the process of applying for a waiver from the 
207.13  Immigration and Naturalization Service of the English language 
207.14  or civics requirements of the citizenship test; 
207.15     (4) has submitted an application for citizenship to the 
207.16  Immigration and Naturalization Service and is waiting for a 
207.17  testing date or a subsequent swearing in ceremony; or 
207.18     (5) has been denied citizenship due to a failure to pass 
207.19  the test after two attempts or because of an inability to 
207.20  understand the rights and responsibilities of becoming a United 
207.21  States citizen, as documented by the Immigration and 
207.22  Naturalization Service or the county. 
207.23     (b) For the period from July 1, 1997, to February 28, 1998, 
207.24  an assistance unit shall receive a transitional amount of $100 
207.25  per month for each legal noncitizen who qualifies for assistance 
207.26  under paragraph (a). 
207.27     Section 37 is effective July 1, 1997. 
207.28     Sec. 40.  Minnesota Statutes 1996, section 256D.06, 
207.29  subdivision 2, is amended to read: 
207.30     Subd. 2.  Notwithstanding the provisions of subdivision 1, 
207.31  a grant of general assistance shall be made to an eligible 
207.32  individual, single adult, married couple, or family for an 
207.33  emergency need, as defined in rules promulgated by the 
207.34  commissioner, where the recipient requests temporary assistance 
207.35  not exceeding 30 days if an emergency situation appears to exist 
207.36  and (a) until January 1, 1998, the individual is ineligible for 
208.1   the program of emergency assistance under aid to families with 
208.2   dependent children and is not a recipient of aid to families 
208.3   with dependent children at the time of application hereunder; or 
208.4   (b) the individual or family is (i) ineligible for MFIP-S or is 
208.5   not a participant of MFIP-S; and (ii) is ineligible for 
208.6   emergency assistance under section 256J.48.  If an applicant or 
208.7   recipient relates facts to the county agency which may be 
208.8   sufficient to constitute an emergency situation, the county 
208.9   agency shall advise the person of the procedure for applying for 
208.10  assistance pursuant according to this subdivision.  
208.11     Sec. 41.  Minnesota Statutes 1996, section 256D.06, 
208.12  subdivision 5, is amended to read: 
208.13     Subd. 5.  Any applicant, otherwise eligible for general 
208.14  assistance and possibly eligible for maintenance benefits from 
208.15  any other source shall (a) make application for those benefits 
208.16  within 30 days of the general assistance application; and (b) 
208.17  execute an interim assistance authorization agreement on a form 
208.18  as directed by the commissioner.  If found eligible for benefits 
208.19  from other sources, and a payment received from another source 
208.20  relates to the period during which general assistance was also 
208.21  being received, the recipient shall be required to reimburse the 
208.22  county agency for the interim assistance paid.  Reimbursement 
208.23  shall not exceed the amount of general assistance paid during 
208.24  the time period to which the other maintenance benefits apply 
208.25  and shall not exceed the state standard applicable to that time 
208.26  period.  The commissioner shall adopt rules authorizing county 
208.27  agencies or other client representatives to retain from the 
208.28  amount recovered under an interim assistance agreement 25 
208.29  percent plus actual reasonable fees, costs, and disbursements of 
208.30  appeals and litigation, of providing special assistance to the 
208.31  recipient in processing the recipient's claim for maintenance 
208.32  benefits from another source.  The money retained under this 
208.33  section shall be from the state share of the recovery.  The 
208.34  commissioner or the county agency may contract with qualified 
208.35  persons to provide the special assistance.  The rules adopted by 
208.36  the commissioner shall include the methods by which county 
209.1   agencies shall identify, refer, and assist recipients who may be 
209.2   eligible for benefits under federal programs for the disabled.  
209.3   This subdivision does not require repayment of per diem payments 
209.4   made to shelters for battered women pursuant to section 256D.05, 
209.5   subdivision 3. 
209.6      Sec. 42.  [256D.066] [INTERSTATE PAYMENT STANDARDS.] 
209.7      (a) Effective July 1, 1997, the amount of assistance paid 
209.8   to an eligible assistance unit in which all members have resided 
209.9   in this state for less than 12 calendar months shall be the 
209.10  lesser of either the payment standard that would have been 
209.11  received by the assistance unit from the state of immediate 
209.12  prior residence, or the amount calculated in accordance with 
209.13  this chapter.  The lesser payment shall continue until the 
209.14  assistance unit meets the 12-month requirement.  Payment shall 
209.15  be calculated by applying this state's budgeting policies and 
209.16  the unit's net income shall be deducted from the payment 
209.17  standard in the other state or in this state, whichever is 
209.18  lower.  At county option, payment shall be made in vendor form 
209.19  for rent and utilities, up to the limit of the grant amount, and 
209.20  residual amounts, if any, shall be paid directly to the 
209.21  assistance unit. 
209.22     (b) During the first 12 months an assistance unit resides 
209.23  in this state, the number of months that the unit is eligible to 
209.24  receive general assistance benefits is limited to the number of 
209.25  months the unit would have been eligible to receive similar 
209.26  benefits in the state of immediate prior residence. 
209.27     (c) This policy applies whether or not the unit received 
209.28  similar benefits while residing in the state of previous 
209.29  residence. 
209.30     (d) When a unit moves to this state from another state 
209.31  where the unit has exhausted that state's time limit for 
209.32  receiving similar benefits, the unit will not be eligible to 
209.33  receive any general assistance benefits in this state for 12 
209.34  months from the date the unit moves here. 
209.35     (e) Applicants must provide verification of their state of 
209.36  immediate prior residence, in the form of tax statements, a 
210.1   driver's license, automobile registration, rent receipts, or 
210.2   other forms of verification approved by the commissioner. 
210.3      (f) For the purposes of this subdivision, "state of 
210.4   immediate prior residence" means: 
210.5      (i) the state in which the applicant declares the applicant 
210.6   spent the most time in the 30 days prior to moving to this 
210.7   state; or 
210.8      (ii) the applicant is in the migrant work stream and the 
210.9   applicant maintains a home in another state. 
210.10     Sec. 43.  Minnesota Statutes 1996, section 256D.08, 
210.11  subdivision 1, is amended to read: 
210.12     Subdivision 1.  In determining eligibility of a family, 
210.13  married couple, or individual there shall be excluded an 
210.14  assistance unit, the following resources shall be excluded: 
210.15     (1) real or personal property or liquid assets which do not 
210.16  exceed those permitted under the federally aided assistance 
210.17  program known as aid to families with dependent children $1,000; 
210.18  and 
210.19     (2) other property which has been determined, in accordance 
210.20  with and subject according to limitations contained in rules 
210.21  promulgated by the commissioner, to be essential to the family 
210.22  or individual the assistance unit as a means of self-support or 
210.23  self-care or which is producing income that is being used for 
210.24  the support of the individual or family assistance unit.  The 
210.25  commissioner shall further provide by rule the conditions for 
210.26  those situations in which property not excluded under this 
210.27  subdivision may be retained by the family or individual 
210.28  assistance unit where there is a reasonable probability that in 
210.29  the foreseeable future the property will be used for the 
210.30  self-support of the individual or family assistance unit; and 
210.31     (3) payments, made pursuant according to litigation and 
210.32  subsequent appropriation by the United States Congress, of funds 
210.33  to compensate members of Indian tribes for the taking of tribal 
210.34  land by the federal government. 
210.35     Sec. 44.  Minnesota Statutes 1996, section 256D.08, 
210.36  subdivision 2, is amended to read: 
211.1      Subd. 2.  Notwithstanding any other provision of sections 
211.2   256D.01 to 256D.21, the commissioner shall provide by rule for 
211.3   the exclusion of property from the determination of eligibility 
211.4   for general assistance when it appears likely that the need for 
211.5   general assistance will not exceed 30 days or an undue hardship 
211.6   would be imposed on an individual or family an assistance unit 
211.7   by the forced disposal of the property.  
211.8      Sec. 45.  Minnesota Statutes 1996, section 256D.09, is 
211.9   amended by adding a subdivision to read: 
211.10     Subd. 2b.  [DISABILITY VERIFICATION; DRUG OR ALCOHOL 
211.11  DEPENDENCY.] If at any time there is verification that the 
211.12  client's disability is dependent upon their continued drug 
211.13  addiction or alcoholism, general assistance for rent and 
211.14  utilities must be made in the form of vendor payments. 
211.15     Verification of drug addiction or alcoholism can be 
211.16  received from: 
211.17     (1) denial of social security benefits based on drug 
211.18  addiction or alcoholism; 
211.19     (2) a statement from the state medical review team that the 
211.20  person's disability is dependent upon continued drug addiction 
211.21  or alcoholism; or 
211.22     (3) a doctor's statement that the person's disability is 
211.23  dependent upon continued drug addiction or alcoholism. 
211.24     Sec. 46.  Minnesota Statutes 1996, section 256D.435, 
211.25  subdivision 3, is amended to read: 
211.26     Subd. 3.  [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 
211.27  Persons who live with the applicant or recipient, who have unmet 
211.28  needs and for whom the applicant or recipient has financial 
211.29  responsibility, must apply for and, if eligible, accept AFDC and 
211.30  other any federally funded benefits, including MFIP-S.  
211.31     Sec. 47.  Minnesota Statutes 1996, section 256D.44, 
211.32  subdivision 5, is amended to read: 
211.33     Subd. 5.  [SPECIAL NEEDS.] In addition to the state 
211.34  standards of assistance established in subdivisions 1 to 4, 
211.35  payments are allowed for the following special needs of 
211.36  recipients of Minnesota supplemental aid who are not residents 
212.1   of a nursing home, a regional treatment center, or a group 
212.2   residential housing facility:. 
212.3      (a) The county agency shall pay a monthly allowance for 
212.4   medically prescribed diets payable under the AFDC program or 
212.5   Minnesota family investment program-statewide if the cost of 
212.6   those additional dietary needs cannot be met through some other 
212.7   maintenance benefit.  
212.8      (b) Payment for nonrecurring special needs must be allowed 
212.9   for necessary home repairs or necessary repairs or replacement 
212.10  of household furniture and appliances using the payment standard 
212.11  of the AFDC program in effect on July 16, 1996, for these 
212.12  expenses, as long as other funding sources are not available.  
212.13     (c) A fee for guardian or conservator service is allowed at 
212.14  a reasonable rate negotiated by the county or approved by the 
212.15  court.  This rate shall not exceed five percent of the 
212.16  assistance unit's gross monthly income up to a maximum of $100 
212.17  per month.  If the guardian or conservator is a member of the 
212.18  county agency staff, no fee is allowed. 
212.19     (d) The county agency shall continue to pay a monthly 
212.20  allowance of $68 for restaurant meals for a person who was 
212.21  receiving a restaurant meal allowance on June 1, 1990, and who 
212.22  eats two or more meals in a restaurant daily.  The allowance 
212.23  must continue until the person has not received Minnesota 
212.24  supplemental aid for one full calendar month or until the 
212.25  person's living arrangement changes and the person no longer 
212.26  meets the criteria for the restaurant meal allowance, whichever 
212.27  occurs first. 
212.28     (e) A fee of ten percent of the recipient's gross income or 
212.29  $25, whichever is less, is allowed for representative payee 
212.30  services provided by an agency that meets the requirements under 
212.31  SSI regulations to charge a fee for representative payee 
212.32  services.  This special need is available to all recipients of 
212.33  Minnesota supplemental aid regardless of their living 
212.34  arrangement. 
212.35     Sec. 48.  Minnesota Statutes 1996, section 259.67, 
212.36  subdivision 4, is amended to read: 
213.1      Subd. 4.  [ELIGIBILITY CONDITIONS.] (a) The placing agency 
213.2   shall determine use the AFDC requirements as specified in 
213.3   federal law, when determining the child's eligibility for 
213.4   adoption assistance under title IV-E of the Social Security 
213.5   Act.  If the child does not qualify, the placing agency shall 
213.6   certify a child as eligible for state funded adoption assistance 
213.7   only if the following criteria are met:  
213.8      (1) Due to the child's characteristics or circumstances it 
213.9   would be difficult to provide the child an adoptive home without 
213.10  adoption assistance.  
213.11     (2)(i) A placement agency has made reasonable efforts to 
213.12  place the child for adoption without adoption assistance, but 
213.13  has been unsuccessful; or 
213.14     (ii) the child's licensed foster parents desire to adopt 
213.15  the child and it is determined by the placing agency that the 
213.16  adoption is in the best interest of the child. 
213.17     (3) The child has been a ward of the commissioner or a 
213.18  Minnesota-licensed child-placing agency.  
213.19     (b) For purposes of this subdivision, the characteristics 
213.20  or circumstances that may be considered in determining whether a 
213.21  child is a child with special needs under United States Code, 
213.22  title 42, chapter 7, subchapter IV, part E, or meets the 
213.23  requirements of paragraph (a), clause (1), are the following: 
213.24     (1) The child is a member of a sibling group to be placed 
213.25  as one unit in which at least one sibling is older than 15 
213.26  months of age or is described in clause (2) or (3). 
213.27     (2) The child has documented physical, mental, emotional, 
213.28  or behavioral disabilities. 
213.29     (3) The child has a high risk of developing physical, 
213.30  mental, emotional, or behavioral disabilities. 
213.31     (c) When a child's eligibility for adoption assistance is 
213.32  based upon the high risk of developing physical, mental, 
213.33  emotional, or behavioral disabilities, payments shall not be 
213.34  made under the adoption assistance agreement unless and until 
213.35  the potential disability manifests itself as documented by an 
213.36  appropriate health care professional. 
214.1      Sec. 49.  [TRANSFER OF RESPONSIBILITIES FOR PROVIDING 
214.2   SECURE CRISIS SHELTER.] 
214.3      All of the powers, duties, and functions of the 
214.4   commissioner of human services relating to the operation and 
214.5   funding of shelters for battered women are transferred to the 
214.6   commissioner of corrections in accordance with Minnesota 
214.7   Statutes, section 15.039, except for personnel transfers under 
214.8   section 15.039, subdivision 7. 
214.9      Sec. 50.  [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 
214.10     The legislature makes the following findings: 
214.11     (a) The legislature is statutorily required to balance the 
214.12  state budget. 
214.13     (b) The task of balancing the state budget is made 
214.14  difficult in the area of the new federal welfare reform program 
214.15  for the needy due to the dramatic change in program design that 
214.16  this state and all other states must experience, rendering 
214.17  historical data on client behavior, interstate migration, and 
214.18  welfare spending patterns of dubious value. 
214.19     (c) Many states have more restrictive or nonexistent state 
214.20  welfare programs to aid needy individuals without children. 
214.21     (d) Within the state's limited resources, the legislature 
214.22  wishes to manage funds appropriated under this part to best 
214.23  provide for needy Minnesotans. 
214.24     (e) To that end, the legislature has adopted a policy in 
214.25  Minnesota Statutes, section 256D.066, of providing households of 
214.26  needy individuals or couples without children in which no 
214.27  mandatory member has resided in Minnesota for the previous 12 
214.28  months a benefit based on the grant the household would have 
214.29  received had it applied for benefits in its previous state of 
214.30  residence. 
214.31     (f) Therefore, if the policy designed to make welfare 
214.32  benefits a neutral factor in the decision to move to Minnesota 
214.33  and to best manage the benefit appropriation for needy 
214.34  Minnesotans, while providing a safety net for recent interstate 
214.35  migrants, is enjoined or otherwise prevented from being 
214.36  implemented, the commissioner shall continue to require that 
215.1   applicants meet the simple residency requirement of presence in 
215.2   the state with the intent to make a permanent home here, and 
215.3   shall ratably reduce the benefit standards for all assistance 
215.4   units, from the standards in Minnesota Statutes, section 
215.5   256D.01, but only in an amount sufficient to remain within the 
215.6   forecasted budgets for those programs. In the event the 
215.7   commissioner is required to ratably reduce benefits under this 
215.8   section, the commissioner shall notify the fiscal and policy 
215.9   chairs of the house and senate human services committees that 
215.10  the reductions have taken place and shall formulate a plan to be 
215.11  presented to the next legislative session. 
215.12     At county option, these benefits shall be paid in vendor 
215.13  form for rent and utilities, up to the limit of the grant 
215.14  amount.  The residual amount, if any, shall be paid directly to 
215.15  the assistance unit. 
215.16     Sec. 51.  [REPEALER.] 
215.17     Minnesota Statutes 1996, sections 256.8711; 256D.02, 
215.18  subdivision 5; 256D.0511; and 256D.065 are repealed. 
215.19     Sec. 52.  [EFFECTIVE DATES.] 
215.20     Sections 23 and 24 are effective January 1, 1998. 
215.21                             ARTICLE 4
215.22                TECHNICAL CHANGES; CROSS REFERENCES 
215.23     Section 1.  Minnesota Statutes 1996, section 13.46, 
215.24  subdivision 1, is amended to read: 
215.25     Subdivision 1.  [DEFINITIONS.] As used in this section: 
215.26     (a) "Individual" means an individual pursuant according to 
215.27  section 13.02, subdivision 8, but does not include a vendor of 
215.28  services. 
215.29     (b) "Program" includes all programs for which authority is 
215.30  vested in a component of the welfare system pursuant according 
215.31  to statute or federal law, including, but not limited to, aid to 
215.32  families with dependent children, Minnesota family investment 
215.33  program-statewide, medical assistance, general assistance, work 
215.34  readiness, general assistance medical care, and child support 
215.35  collections.  
215.36     (c) "Welfare system" includes the department of human 
216.1   services, local social services agencies, county welfare 
216.2   agencies, the public authority responsible for child support 
216.3   enforcement, human services boards, community mental health 
216.4   center boards, state hospitals, state nursing homes, the 
216.5   ombudsman for mental health and mental retardation, and persons, 
216.6   agencies, institutions, organizations, and other entities under 
216.7   contract to any of the above agencies to the extent specified in 
216.8   the contract. 
216.9      (d) "Mental health data" means data on individual clients 
216.10  and patients of community mental health centers, established 
216.11  under section 245.62, mental health divisions of counties and 
216.12  other providers under contract to deliver mental health 
216.13  services, or the ombudsman for mental health and mental 
216.14  retardation. 
216.15     (e) "Fugitive felon" means a person who has been convicted 
216.16  of a felony and who has escaped from confinement or violated the 
216.17  terms of probation or parole for that offense. 
216.18     Sec. 2.  Minnesota Statutes 1996, section 13.46, 
216.19  subdivision 2, is amended to read: 
216.20     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
216.21  a statute specifically provides a different classification, data 
216.22  on individuals collected, maintained, used, or disseminated by 
216.23  the welfare system is private data on individuals, and shall not 
216.24  be disclosed except:  
216.25     (1) pursuant according to section 13.05; 
216.26     (2) pursuant according to court order; 
216.27     (3) pursuant according to a statute specifically 
216.28  authorizing access to the private data; 
216.29     (4) to an agent of the welfare system, including a law 
216.30  enforcement person, attorney, or investigator acting for it in 
216.31  the investigation or prosecution of a criminal or civil 
216.32  proceeding relating to the administration of a program; 
216.33     (5) to personnel of the welfare system who require the data 
216.34  to determine eligibility, amount of assistance, and the need to 
216.35  provide services of additional programs to the individual; 
216.36     (6) to administer federal funds or programs; 
217.1      (7) between personnel of the welfare system working in the 
217.2   same program; 
217.3      (8) the amounts of cash public assistance and relief paid 
217.4   to welfare recipients in this state, including their names, 
217.5   social security numbers, income, addresses, and other data as 
217.6   required, upon request by the department of revenue to 
217.7   administer the property tax refund law, supplemental housing 
217.8   allowance, early refund of refundable tax credits, and the 
217.9   income tax.  "Refundable tax credits" means the dependent care 
217.10  credit under section 290.067, the Minnesota working family 
217.11  credit under section 290.0671, the property tax refund under 
217.12  section 290A.04, and, if the required federal waiver or waivers 
217.13  are granted, the federal earned income tax credit under section 
217.14  32 of the Internal Revenue Code; 
217.15     (9) to the Minnesota department of economic security for 
217.16  the purpose of monitoring the eligibility of the data subject 
217.17  for reemployment insurance, for any employment or training 
217.18  program administered, supervised, or certified by that agency, 
217.19  or for the purpose of administering any rehabilitation program, 
217.20  whether alone or in conjunction with the welfare system, and to 
217.21  verify receipt of energy assistance for the telephone assistance 
217.22  plan; 
217.23     (10) to appropriate parties in connection with an emergency 
217.24  if knowledge of the information is necessary to protect the 
217.25  health or safety of the individual or other individuals or 
217.26  persons; 
217.27     (11) data maintained by residential programs as defined in 
217.28  section 245A.02 may be disclosed to the protection and advocacy 
217.29  system established in this state pursuant according to Part C of 
217.30  Public Law Number 98-527 to protect the legal and human rights 
217.31  of persons with mental retardation or other related conditions 
217.32  who live in residential facilities for these persons if the 
217.33  protection and advocacy system receives a complaint by or on 
217.34  behalf of that person and the person does not have a legal 
217.35  guardian or the state or a designee of the state is the legal 
217.36  guardian of the person; 
218.1      (12) to the county medical examiner or the county coroner 
218.2   for identifying or locating relatives or friends of a deceased 
218.3   person; 
218.4      (13) data on a child support obligor who makes payments to 
218.5   the public agency may be disclosed to the higher education 
218.6   services office to the extent necessary to determine eligibility 
218.7   under section 136A.121, subdivision 2, clause (5); 
218.8      (14) participant social security numbers and names 
218.9   collected by the telephone assistance program may be disclosed 
218.10  to the department of revenue to conduct an electronic data match 
218.11  with the property tax refund database to determine eligibility 
218.12  under section 237.70, subdivision 4a; 
218.13     (15) the current address of a recipient of aid to families 
218.14  with dependent children or Minnesota family investment 
218.15  program-statewide may be disclosed to law enforcement officers 
218.16  who provide the name and social security number of the recipient 
218.17  and satisfactorily demonstrate that:  (i) the recipient is a 
218.18  fugitive felon, including the grounds for this determination; 
218.19  (ii) the location or apprehension of the felon is within the law 
218.20  enforcement officer's official duties; and (iii) the request is 
218.21  made in writing and in the proper exercise of those duties; 
218.22     (16) the current address of a recipient of general 
218.23  assistance, work readiness, or general assistance medical care 
218.24  may be disclosed to probation officers and corrections agents 
218.25  who are supervising the recipient, and to law enforcement 
218.26  officers who are investigating the recipient in connection with 
218.27  a felony level offense; 
218.28     (17) information obtained from food stamp applicant or 
218.29  recipient households may be disclosed to local, state, or 
218.30  federal law enforcement officials, upon their written request, 
218.31  for the purpose of investigating an alleged violation of the 
218.32  food stamp act, in accordance with according to Code of Federal 
218.33  Regulations, title 7, section 272.1(c); 
218.34     (18) data on a child support obligor who is in arrears may 
218.35  be disclosed for purposes of publishing the data pursuant 
218.36  according to section 518.575; 
219.1      (19) data on child support payments made by a child support 
219.2   obligor may be disclosed to the obligee; 
219.3      (20) data in the work reporting system may be disclosed 
219.4   under section 256.998, subdivision 7; 
219.5      (21) to the department of children, families, and learning 
219.6   for the purpose of matching department of children, families, 
219.7   and learning student data with public assistance data to 
219.8   determine students eligible for free and reduced price meals, 
219.9   meal supplements, and free milk pursuant according to United 
219.10  States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
219.11  and 1773; to produce accurate numbers of students receiving aid 
219.12  to families with dependent children or Minnesota family 
219.13  investment program-statewide as required by section 124.175; and 
219.14  to allocate federal and state funds that are distributed based 
219.15  on income of the student's family; or 
219.16     (22) the current address and telephone number of program 
219.17  recipients and emergency contacts may be released to the 
219.18  commissioner of health or a local board of health as defined in 
219.19  section 145A.02, subdivision 2, when the commissioner or local 
219.20  board of health has reason to believe that a program recipient 
219.21  is a disease case, carrier, suspect case, or at risk of illness, 
219.22  and the data are necessary to locate the person. 
219.23     (b) Information on persons who have been treated for drug 
219.24  or alcohol abuse may only be disclosed in accordance with 
219.25  according to the requirements of Code of Federal Regulations, 
219.26  title 42, sections 2.1 to 2.67. 
219.27     (c) Data provided to law enforcement agencies under 
219.28  paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
219.29  investigative data and are confidential or protected nonpublic 
219.30  while the investigation is active.  The data are private after 
219.31  the investigation becomes inactive under section 13.82, 
219.32  subdivision 5, paragraph (a) or (b). 
219.33     (d) Mental health data shall be treated as provided in 
219.34  subdivisions 7, 8, and 9, but is not subject to the access 
219.35  provisions of subdivision 10, paragraph (b). 
219.36     Sec. 3.  Minnesota Statutes 1996, section 84.98, 
220.1   subdivision 3, is amended to read: 
220.2      Subd. 3.  [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 
220.3   PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 
220.4   determining economic, social, physical, or educational 
220.5   disadvantage shall be determined as provided in this subdivision.
220.6      (b) Economically disadvantaged are persons who meet the 
220.7   criteria for disadvantaged established by the department of 
220.8   economic security or persons receiving services provided by the 
220.9   department of human services such as welfare payments, food 
220.10  stamps, and aid to families with dependent children or Minnesota 
220.11  family investment program-statewide.  
220.12     (c) Socially disadvantaged are persons who have been 
220.13  classified as persons in need of supervision by the court system.
220.14     (d) Physically disadvantaged are persons who have been 
220.15  identified as having special needs by public agencies that deal 
220.16  with employment for the disabled. 
220.17     (e) Educationally disadvantaged are persons who have 
220.18  dropped out of school or are at risk of dropping out of school 
220.19  and persons with learning disabilities or in need of special 
220.20  education classes.  
220.21     Sec. 4.  Minnesota Statutes 1996, section 136A.125, 
220.22  subdivision 2, is amended to read: 
220.23     Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
220.24  a child care grant if the applicant: 
220.25     (1) is a resident of the state of Minnesota; 
220.26     (2) has a child 12 years of age or younger, or 14 years of 
220.27  age or younger who is handicapped as defined in section 120.03, 
220.28  and who is receiving or will receive care on a regular basis 
220.29  from a licensed or legal, nonlicensed caregiver; 
220.30     (3) is income eligible as determined by the office's 
220.31  policies and rules, but is not a recipient of assistance from 
220.32  either aid to families with dependent children or Minnesota 
220.33  family investment program-statewide; 
220.34     (4) has not earned a baccalaureate degree and has been 
220.35  enrolled full time less than eight semesters, 12 quarters, or 
220.36  the equivalent; 
221.1      (5) is pursuing a nonsectarian program or course of study 
221.2   that applies to an undergraduate degree, diploma, or 
221.3   certificate; 
221.4      (6) is enrolled at least half time in an eligible 
221.5   institution; and 
221.6      (7) is in good academic standing and making satisfactory 
221.7   academic progress. 
221.8      Sec. 5.  Minnesota Statutes 1996, section 196.27, is 
221.9   amended to read: 
221.10     196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 
221.11     (a) Payments received by veterans or their dependents 
221.12  because of settlements between them and the manufacturers of 
221.13  Agent Orange or other chemical agents, as defined in section 
221.14  196.21, must not be treated as income (or an available resource) 
221.15  of the veterans or their dependents for the purposes of any 
221.16  program of public assistance or benefit program administered by 
221.17  the department of veterans affairs, the department of human 
221.18  services, or other agencies of the state or political 
221.19  subdivisions of the state, except as provided in paragraph (b). 
221.20     (b) The income and resource exclusion in paragraph (a) does 
221.21  not apply to the medical assistance, food stamps, or aid to 
221.22  families with dependent children or Minnesota family investment 
221.23  program-statewide programs until the commissioner of human 
221.24  services receives formal approval from the United States 
221.25  Department of Health and Human Services, for the medical 
221.26  assistance and, aid to families with dependent children or 
221.27  Minnesota family investment program-statewide programs, and from 
221.28  the United States Department of Agriculture, for the food stamps 
221.29  program.  The income exclusion does not apply to the Minnesota 
221.30  supplemental aid program until the commissioner receives formal 
221.31  federal approval of the exclusion for the medical assistance 
221.32  program. 
221.33     Sec. 6.  Minnesota Statutes 1996, section 237.70, 
221.34  subdivision 4a, is amended to read: 
221.35     Subd. 4a.  [HOUSEHOLDS ELIGIBLE FOR CREDITS.] The telephone 
221.36  assistance plan must provide telephone assistance credit for a 
222.1   residential household in Minnesota that meets each of the 
222.2   following criteria: 
222.3      (1) has a household member who: 
222.4      (i) subscribes to local exchange service; and 
222.5      (ii) is either disabled or 65 years of age or older; 
222.6      (2) whose household income is 150 percent or less of 
222.7   federal poverty guidelines or is currently eligible for: 
222.8      (i) aid to families with dependent children or Minnesota 
222.9   family investment program-statewide; 
222.10     (ii) medical assistance; 
222.11     (iii) general assistance; 
222.12     (iv) Minnesota supplemental aid; 
222.13     (v) food stamps; 
222.14     (vi) refugee cash assistance or refugee medical assistance; 
222.15     (vii) energy assistance; or 
222.16     (viii) supplemental security income; and 
222.17     (3) who has been certified as eligible for telephone 
222.18  assistance plan credits. 
222.19     Sec. 7.  Minnesota Statutes 1996, section 254B.02, 
222.20  subdivision 1, is amended to read: 
222.21     Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
222.22  The chemical dependency funds appropriated for allocation shall 
222.23  be placed in a special revenue account.  For the fiscal year 
222.24  beginning July 1, 1987, funds shall be transferred to operate 
222.25  the vendor payment, invoice processing, and collections system 
222.26  for one year.  The commissioner shall annually transfer funds 
222.27  from the chemical dependency fund to pay for operation of the 
222.28  drug and alcohol abuse normative evaluation system and to pay 
222.29  for all costs incurred by adding two positions for licensing of 
222.30  chemical dependency treatment and rehabilitation programs 
222.31  located in hospitals for which funds are not otherwise 
222.32  appropriated.  The commissioner shall annually divide the money 
222.33  available in the chemical dependency fund that is not held in 
222.34  reserve by counties from a previous allocation.  Twelve percent 
222.35  of the remaining money must be reserved for treatment of 
222.36  American Indians by eligible vendors under section 254B.05.  The 
223.1   remainder of the money must be allocated among the counties 
223.2   according to the following formula, using state demographer data 
223.3   and other data sources determined by the commissioner: 
223.4      (a) For purposes of this formula, American Indians and 
223.5   children under age 14 are subtracted from the population of each 
223.6   county to determine the restricted population. 
223.7      (b) The amount of chemical dependency fund expenditures for 
223.8   entitled persons for services not covered by prepaid plans 
223.9   governed by section 256B.69 in the previous year is divided by 
223.10  the amount of chemical dependency fund expenditures for entitled 
223.11  persons for all services to determine the proportion of exempt 
223.12  service expenditures for each county. 
223.13     (c) The prepaid plan months of eligibility is multiplied by 
223.14  the proportion of exempt service expenditures to determine the 
223.15  adjusted prepaid plan months of eligibility for each county. 
223.16     (d) The adjusted prepaid plan months of eligibility is 
223.17  added to the number of restricted population fee for service 
223.18  months of eligibility for aid to families with dependent 
223.19  children, Minnesota family investment program-statewide, general 
223.20  assistance, and medical assistance and divided by the county 
223.21  restricted population to determine county per capita months of 
223.22  covered service eligibility. 
223.23     (e) The number of adjusted prepaid plan months of 
223.24  eligibility for the state is added to the number of fee for 
223.25  service months of eligibility for aid to families with dependent 
223.26  children, Minnesota family investment program-statewide, general 
223.27  assistance, and medical assistance for the state restricted 
223.28  population and divided by the state restricted population to 
223.29  determine state per capita months of covered service eligibility.
223.30     (f) The county per capita months of covered service 
223.31  eligibility is divided by the state per capita months of covered 
223.32  service eligibility to determine the county welfare caseload 
223.33  factor. 
223.34     (g) The median married couple income for the most recent 
223.35  three-year period available for the state is divided by the 
223.36  median married couple income for the same period for each county 
224.1   to determine the income factor for each county. 
224.2      (h) The county restricted population is multiplied by the 
224.3   sum of the county welfare caseload factor and the county income 
224.4   factor to determine the adjusted population. 
224.5      (i) $15,000 shall be allocated to each county.  
224.6      (j) The remaining funds shall be allocated proportional to 
224.7   the county adjusted population. 
224.8      Sec. 8.  Minnesota Statutes 1996, section 256.01, 
224.9   subdivision 4a, is amended to read: 
224.10     Subd. 4a.  [TECHNICAL ASSISTANCE FOR IMMUNIZATION 
224.11  REMINDERS.] The state agency shall provide appropriate technical 
224.12  assistance to county agencies to develop methods to have county 
224.13  financial workers remind and encourage recipients of aid to 
224.14  families with dependent children, Minnesota family investment 
224.15  program-statewide, the Minnesota family investment plan, medical 
224.16  assistance, family general assistance, or food stamps whose 
224.17  assistance unit includes at least one child under the age of 
224.18  five to have each young child immunized against childhood 
224.19  diseases.  The state agency must examine the feasibility of 
224.20  utilizing the capacity of a statewide computer system to assist 
224.21  county agency financial workers in performing this function at 
224.22  appropriate intervals. 
224.23     Sec. 9.  Minnesota Statutes 1996, section 256.017, 
224.24  subdivision 1, is amended to read: 
224.25     Subdivision 1.  [AUTHORITY AND PURPOSE.] The commissioner 
224.26  shall administer a compliance system for aid to families with 
224.27  dependent children, Minnesota family investment 
224.28  program-statewide, the food stamp program, emergency assistance, 
224.29  general assistance, work readiness, medical assistance, general 
224.30  assistance medical care, emergency general assistance, Minnesota 
224.31  supplemental assistance, preadmission screening, and alternative 
224.32  care grants under the powers and authorities named in section 
224.33  256.01, subdivision 2.  The purpose of the compliance system is 
224.34  to permit the commissioner to supervise the administration of 
224.35  public assistance programs and to enforce timely and accurate 
224.36  distribution of benefits, completeness of service and efficient 
225.1   and effective program management and operations, to increase 
225.2   uniformity and consistency in the administration and delivery of 
225.3   public assistance programs throughout the state, and to reduce 
225.4   the possibility of sanctions and fiscal disallowances for 
225.5   noncompliance with federal regulations and state statutes. 
225.6      The commissioner shall utilize training, technical 
225.7   assistance, and monitoring activities, as specified in section 
225.8   256.01, subdivision 2, to encourage county agency compliance 
225.9   with written policies and procedures. 
225.10     Sec. 10.  Minnesota Statutes 1996, section 256.017, 
225.11  subdivision 4, is amended to read: 
225.12     Subd. 4.  [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 
225.13  CASE PENALTY.] (a) The amount of the quality control case 
225.14  penalty is limited to the amount of the dollar error for the 
225.15  quality control sample month in a reviewed case as determined by 
225.16  the state quality control review procedures for the aid to 
225.17  families with dependent children, Minnesota family investment 
225.18  program-statewide and food stamp programs or for any other 
225.19  income transfer program for which the commissioner develops a 
225.20  quality control program. 
225.21     (b) Payment errors in medical assistance or any other 
225.22  medical services program for which the department develops a 
225.23  quality control program are subject to set rate penalties based 
225.24  on the average cost of the specific quality control error 
225.25  element for a sample review month for that household size and 
225.26  status of institutionalization and as determined from state 
225.27  quality control data in the preceding fiscal year for the 
225.28  corresponding program. 
225.29     (c) Errors identified in negative action cases, such as 
225.30  incorrect terminations or denials of assistance are subject to 
225.31  set rate penalties based on the average benefit cost of that 
225.32  household size as determined from state quality control data in 
225.33  the preceding fiscal year for the corresponding program. 
225.34     Sec. 11.  Minnesota Statutes 1996, section 256.031, 
225.35  subdivision 5, is amended to read: 
225.36     Subd. 5.  [FEDERAL WAIVERS.] In accordance with According 
226.1   to sections 256.031 to 256.0361 and federal laws authorizing the 
226.2   program, the commissioner shall seek waivers of federal 
226.3   requirements of:  United States Code, title 42, section 601 et 
226.4   seq., and United States Code, title 7, section 2011 et seq., 
226.5   needed to implement the Minnesota family investment plan in a 
226.6   manner consistent with the goals and objectives of the program.  
226.7   The commissioner shall seek terms from the federal government 
226.8   that are consistent with the goals of the Minnesota family 
226.9   investment plan.  The commissioner shall also seek terms from 
226.10  the federal government that will maximize federal financial 
226.11  participation so that the extra costs to the state of 
226.12  implementing the program are minimized, to the extent that those 
226.13  terms are consistent with the goals of the Minnesota family 
226.14  investment plan.  An agreement with the federal government under 
226.15  this section shall provide that the agreements may be canceled 
226.16  by the state or federal government upon 180 days' notice or 
226.17  immediately upon mutual agreement.  If the agreement is 
226.18  canceled, families which cease receiving assistance under the 
226.19  Minnesota family investment plan who are eligible for the aid to 
226.20  families with dependent children, Minnesota family investment 
226.21  program-statewide, general assistance, medical assistance, 
226.22  general assistance medical care, or the food stamp program must 
226.23  be placed with their consent on the programs for which they are 
226.24  eligible. 
226.25     Sec. 12.  Minnesota Statutes 1996, section 256.046, 
226.26  subdivision 1, is amended to read: 
226.27     Subdivision 1.  [HEARING AUTHORITY.] A local agency may 
226.28  initiate an administrative fraud disqualification hearing for 
226.29  individuals accused of wrongfully obtaining assistance or 
226.30  intentional program violations in the aid to families with 
226.31  dependent children, Minnesota family investment 
226.32  program-statewide or food stamp programs.  The hearing is 
226.33  subject to the requirements of section 256.045 and the 
226.34  requirements in Code of Federal Regulations, title 7, section 
226.35  273.16, for the food stamp program and title 45, section 
226.36  235.112, for the aid to families with dependent children program.
227.1      Sec. 13.  Minnesota Statutes 1996, section 256.935, 
227.2   subdivision 1, is amended to read: 
227.3      Subdivision 1.  On the death of any person receiving public 
227.4   assistance through aid to dependent children or MFIP-S, the 
227.5   county agency shall pay an amount for funeral expenses not 
227.6   exceeding the amount paid for comparable services under section 
227.7   261.035 plus actual cemetery charges.  No funeral expenses shall 
227.8   be paid if the estate of the deceased is sufficient to pay such 
227.9   expenses or if the spouse, who was legally responsible for the 
227.10  support of the deceased while living, is able to pay such 
227.11  expenses; provided, that the additional payment or donation of 
227.12  the cost of cemetery lot, interment, religious service, or for 
227.13  the transportation of the body into or out of the community in 
227.14  which the deceased resided, shall not limit payment by the 
227.15  county agency as herein authorized.  Freedom of choice in the 
227.16  selection of a funeral director shall be granted to persons 
227.17  lawfully authorized to make arrangements for the burial of any 
227.18  such deceased recipient.  In determining the sufficiency of such 
227.19  estate, due regard shall be had for the nature and marketability 
227.20  of the assets of the estate.  The county agency may grant 
227.21  funeral expenses where the sale would cause undue loss to the 
227.22  estate.  Any amount paid for funeral expenses shall be a prior 
227.23  claim against the estate, as provided in section 524.3-805, and 
227.24  any amount recovered shall be reimbursed to the agency which 
227.25  paid the expenses.  The commissioner shall specify requirements 
227.26  for reports, including fiscal reports, according to section 
227.27  256.01, subdivision 2, paragraph (17).  The state share of 
227.28  county agency expenditures shall be 50 percent and the county 
227.29  share shall be 50 percent.  Benefits shall be issued to 
227.30  recipients by the state or county and funded according to 
227.31  section 256.025, subdivision 3, subject to provisions of section 
227.32  256.017. 
227.33     Beginning July 1, 1991, the state will reimburse counties 
227.34  according to the payment schedule set forth in section 256.025 
227.35  for the county share of county agency expenditures made under 
227.36  this subdivision from January 1, 1991, on.  Payment under this 
228.1   subdivision is subject to the provisions of section 256.017. 
228.2      Sec. 14.  Minnesota Statutes 1996, section 256.981, is 
228.3   amended to read: 
228.4      256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 
228.5      The commissioner of human services shall, to the extent an 
228.6   appropriation is provided for this purpose, contract with the 
228.7   county attorney's council or other public or private entity 
228.8   experienced in providing training for prosecutors to conduct 
228.9   quarterly workshops and seminars focusing on current aid to 
228.10  families with dependent children and Minnesota family investment 
228.11  program-statewide program issues, other income maintenance 
228.12  program changes, recovery issues, alternative sentencing 
228.13  methods, use of technical aids for interviews and 
228.14  interrogations, and other matters affecting prosecution of 
228.15  welfare fraud cases. 
228.16     Sec. 15.  Minnesota Statutes 1996, section 256.9850, is 
228.17  amended to read: 
228.18     256.9850 [IDENTITY VERIFICATION.] 
228.19     The commissioner of human services shall seek from the 
228.20  Secretary of Health and Human Services all necessary waivers of 
228.21  the requirements of the program of AFDC or Minnesota family 
228.22  investment program-statewide, to enable the commissioner to 
228.23  establish a statewide program to test the effectiveness of 
228.24  identity verification systems in the electronic benefit transfer 
228.25  systems in the state AFDC program or Minnesota family investment 
228.26  program-statewide.  Identity verification provisions shall be 
228.27  added to the statewide requests for proposal on the expansion of 
228.28  electronic benefit transfer systems in the AFDC program or 
228.29  Minnesota family investment program-statewide. 
228.30     Sec. 16.  Minnesota Statutes 1996, section 256E.03, 
228.31  subdivision 2, is amended to read: 
228.32     Subd. 2.  (a) "Community social services" means services 
228.33  provided or arranged for by county boards to fulfill the 
228.34  responsibilities prescribed in section 256E.08, subdivision 1, 
228.35  to the following groups of persons: 
228.36     (1) families with children under age 18, who are 
229.1   experiencing child dependency, neglect or abuse, and also 
229.2   pregnant adolescents, adolescent parents under the age of 18, 
229.3   and their children; 
229.4      (2) persons who are under the guardianship of the 
229.5   commissioner of human services as dependent and neglected wards; 
229.6      (3) adults who are in need of protection and vulnerable as 
229.7   defined in section 626.5572; 
229.8      (4) persons age 60 and over who are experiencing difficulty 
229.9   living independently and are unable to provide for their own 
229.10  needs; 
229.11     (5) emotionally disturbed children and adolescents, 
229.12  chronically and acutely mentally ill persons who are unable to 
229.13  provide for their own needs or to independently engage in 
229.14  ordinary community activities; 
229.15     (6) persons with mental retardation as defined in section 
229.16  252A.02, subdivision 2, or with related conditions as defined in 
229.17  section 252.27, subdivision 1a, who are unable to provide for 
229.18  their own needs or to independently engage in ordinary community 
229.19  activities; 
229.20     (7) drug dependent and intoxicated persons as defined in 
229.21  section 254A.02, subdivisions 5 and 7, and persons at risk of 
229.22  harm to self or others due to the ingestion of alcohol or other 
229.23  drugs; 
229.24     (8) parents whose income is at or below 70 percent of the 
229.25  state median income and who are in need of child care services 
229.26  in order to secure or retain employment or to obtain the 
229.27  training or education necessary to secure employment; and 
229.28     (9) other groups of persons who, in the judgment of the 
229.29  county board, are in need of social services. 
229.30     (b) Except as provided in section 256E.08, subdivision 5, 
229.31  community social services do not include public assistance 
229.32  programs known as aid to families with dependent children, 
229.33  Minnesota family investment program-statewide, Minnesota 
229.34  supplemental aid, medical assistance, general assistance, 
229.35  general assistance medical care, or community health services 
229.36  authorized by sections 145A.09 to 145A.13.  
230.1      Sec. 17.  Minnesota Statutes 1996, section 256E.06, 
230.2   subdivision 1, is amended to read: 
230.3      Subdivision 1.  [FORMULA.] The commissioner of human 
230.4   services shall distribute community social service aids to each 
230.5   county board in an amount determined according to the following 
230.6   formula: 
230.7      In calendar year 1982 and thereafter: 
230.8      (a) One-third shall be distributed on the basis of the 
230.9   average unduplicated number of persons who receive AFDC, 
230.10  Minnesota family investment program-statewide, general 
230.11  assistance, and medical assistance per month in the calendar 
230.12  year two years prior to the year for which funds are being 
230.13  distributed as reported in the average monthly caseload reports 
230.14  required under sections 256.01, 256B.04 and 256D.04, and 
230.15  certified by the commissioner of human services; and 
230.16     (b) One-third shall be distributed on the basis of the 
230.17  number of persons residing in the county as determined by the 
230.18  most recent data of the state demographer; 
230.19     (c) One-third shall be distributed on the basis of the 
230.20  number of persons residing in the county who are 65 years old or 
230.21  older as determined by the most recent data of the state 
230.22  demographer. 
230.23     Sec. 18.  Minnesota Statutes 1996, section 256E.06, 
230.24  subdivision 3, is amended to read: 
230.25     Subd. 3.  [PAYMENTS TO COUNTIES.] The commissioner of human 
230.26  services shall make payments for community social services to 
230.27  each county in four installments per year.  The commissioner of 
230.28  human services may certify the payments for the first three 
230.29  months of a calendar year based on estimates of the unduplicated 
230.30  number of persons receiving AFDC, Minnesota family investment 
230.31  program-statewide, general assistance and medical assistance for 
230.32  the prior year.  The following three payments shall be adjusted 
230.33  to reflect the actual unduplicated number of persons who 
230.34  received AFDC, Minnesota family investment program-statewide, 
230.35  general assistance and medical assistance as required by 
230.36  subdivision 1.  The commissioner shall ensure that the pertinent 
231.1   payment of the allotment for that quarter is made to each county 
231.2   on the first working day after the end of each quarter of the 
231.3   calendar year, except for the last quarter of the calendar 
231.4   year.  The commissioner shall ensure that each county receives 
231.5   its payment of the allotment for that quarter no later than the 
231.6   last working day of that quarter.  This scheduling of payments 
231.7   does not require compliance with subdivision 10.  
231.8      Sec. 19.  Minnesota Statutes 1996, section 256E.07, 
231.9   subdivision 1, is amended to read: 
231.10     Subdivision 1.  [FORMULA.] In federal fiscal year 1985 and 
231.11  subsequent years, money for social services that is received 
231.12  from the federal government to reimburse counties for social 
231.13  service expenditures pursuant according to title XX of the 
231.14  Social Security Act shall be allocated to each county according 
231.15  to the following formula:  
231.16     (a) Two-thirds shall be allocated on the basis of the 
231.17  annual average number of unduplicated active monthly caseloads 
231.18  in each county in the following programs:  aid to families with 
231.19  dependent children, Minnesota family investment 
231.20  program-statewide, medical assistance, general assistance, 
231.21  supplementary security income, and Minnesota supplemental aid.  
231.22     (b) One-third shall be allocated on the basis of the number 
231.23  of persons residing in the county as determined by the most 
231.24  recent estimate of the state demographer.  
231.25     (c) The commissioner shall allocate to the counties 
231.26  pursuant according to this section the total money received from 
231.27  the federal government for social services pursuant according to 
231.28  title XX of the Social Security Act, except that portion of the 
231.29  state's allocation which the legislature authorizes for 
231.30  administrative purposes and for migrant day care. 
231.31     Sec. 20.  Minnesota Statutes 1996, section 256E.08, 
231.32  subdivision 3, is amended to read: 
231.33     Subd. 3.  [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 
231.34  The county board may designate itself, a human services board, 
231.35  or a local social services agency to perform the functions of 
231.36  local social services agencies as prescribed in chapter 393 and 
232.1   assigned to county agencies in other law which pertains to the 
232.2   administration of income maintenance programs known as aid to 
232.3   families with dependent children, Minnesota family investment 
232.4   program-statewide, general assistance, Minnesota supplemental 
232.5   aid, medical assistance, general assistance medical care, and 
232.6   emergency assistance.  
232.7      Sec. 21.  Minnesota Statutes 1996, section 256F.05, 
232.8   subdivision 5, is amended to read: 
232.9      Subd. 5.  [INAPPROPRIATE EXPENDITURES.] Family preservation 
232.10  fund basic, placement earnings, and development grant money must 
232.11  not be used for: 
232.12     (1) child day care necessary solely because of the 
232.13  employment or training to prepare for employment, of a parent or 
232.14  other relative with whom the child is living; 
232.15     (2) residential facility payments; 
232.16     (3) adoption assistance payments; 
232.17     (4) public assistance payments for aid to families with 
232.18  dependent children, Minnesota family investment 
232.19  program-statewide, supplemental aid, medical assistance, general 
232.20  assistance, general assistance medical care, or community health 
232.21  services authorized by sections 145A.09 to 145A.13; or 
232.22     (5) administrative costs for local social services agency 
232.23  public assistance staff.  
232.24     Sec. 22.  Minnesota Statutes 1996, section 256G.01, 
232.25  subdivision 4, is amended to read: 
232.26     Subd. 4.  [ADDITIONAL COVERAGE.] The provisions in sections 
232.27  256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 
232.28  subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 
232.29  subdivisions 1 to 3, apply to the following programs:  aid to 
232.30  families with dependent children, Minnesota family investment 
232.31  program-statewide; medical assistance; general assistance; 
232.32  family general assistance; general assistance medical care; and 
232.33  Minnesota supplemental aid. 
232.34     Sec. 23.  Minnesota Statutes 1996, section 257.3573, 
232.35  subdivision 2, is amended to read: 
232.36     Subd. 2.  [INAPPROPRIATE EXPENDITURES.] Indian child 
233.1   welfare grant money must not be used for: 
233.2      (1) child day care necessary solely because of employment 
233.3   or training for employment of a parent or other relative with 
233.4   whom the child is living; 
233.5      (2) foster care maintenance or difficulty of care payments; 
233.6      (3) residential facility payments; 
233.7      (4) adoption assistance payments; 
233.8      (5) public assistance payments for aid to families with 
233.9   dependent children, Minnesota family investment 
233.10  program-statewide, supplemental aid, medical assistance, general 
233.11  assistance, general assistance medical care, or community health 
233.12  services authorized by sections 145A.01 to 145A.14; or 
233.13     (6) administrative costs for income maintenance staff.  
233.14     Sec. 24.  Minnesota Statutes 1996, section 260.38, is 
233.15  amended to read: 
233.16     260.38 [COST, PAYMENT.] 
233.17     In addition to the usual care and services given by public 
233.18  and private agencies, the necessary cost incurred by the 
233.19  commissioner of human services in providing care for such child 
233.20  shall be paid by the county committing such child which, subject 
233.21  to uniform rules established by the commissioner of human 
233.22  services, may receive a reimbursement not exceeding one-half of 
233.23  such costs from funds made available for this purpose by the 
233.24  legislature during the period beginning July 1, 1985, and ending 
233.25  December 31, 1985.  Beginning January 1, 1986, the necessary 
233.26  cost incurred by the commissioner of human services in providing 
233.27  care for the child must be paid by the county committing the 
233.28  child.  Where such child is eligible to receive a grant of aid 
233.29  to families with dependent children, Minnesota family investment 
233.30  program-statewide or supplemental security income for the aged, 
233.31  blind, and disabled, or a foster care maintenance payment under 
233.32  Title IV-E of the Social Security Act, United States Code, title 
233.33  42, sections 670 to 676, the child's needs shall be met through 
233.34  these programs.  
233.35     Sec. 25.  Minnesota Statutes 1996, section 268.0111, 
233.36  subdivision 5, is amended to read: 
234.1      Subd. 5.  [INCOME MAINTENANCE AND SUPPORT SERVICES.] 
234.2   "Income maintenance and support services" means programs through 
234.3   which the state or its subdivisions provide direct financial or 
234.4   in-kind support to unemployed or underemployed persons, 
234.5   including reemployment insurance, aid to families with dependent 
234.6   children, Minnesota family investment program-statewide, general 
234.7   assistance, work readiness assistance, food stamps, energy 
234.8   assistance, disability determinations, and child care.  Income 
234.9   maintenance and support services do not include medical 
234.10  assistance, aging services, social services, community social 
234.11  services, mental health services, or services for the 
234.12  emotionally disturbed, the mentally retarded, or residents of 
234.13  nursing homes. 
234.14     Sec. 26.  Minnesota Statutes 1996, section 268.0111, 
234.15  subdivision 7, is amended to read: 
234.16     Subd. 7.  [PUBLIC ASSISTANCE.] "Public assistance" means 
234.17  aid to families with dependent children, Minnesota family 
234.18  investment program-statewide and general assistance, and work 
234.19  readiness.  
234.20     Sec. 27.  Minnesota Statutes 1996, section 268.0122, 
234.21  subdivision 3, is amended to read: 
234.22     Subd. 3.  [DUTIES AS A STATE AGENCY.] The commissioner 
234.23  shall: 
234.24     (1) administer the unemployment insurance laws and related 
234.25  programs; 
234.26     (2) administer the aspects of aid to families with 
234.27  dependent children, Minnesota family investment 
234.28  program-statewide, general assistance, work readiness, and food 
234.29  stamps that relate to employment and training services, subject 
234.30  to the contract under section 268.86, subdivision 2; 
234.31     (3) administer wage subsidies and the discretionary 
234.32  employment and training fund; 
234.33     (4) administer a national system of public employment 
234.34  offices as prescribed by United States Code, title 29, chapter 
234.35  4B, the Wagner-Peyser Act, and other federal employment and 
234.36  training programs; 
235.1      (5) cooperate with the federal government and its 
235.2   employment and training agencies in any reasonable manner as 
235.3   necessary to qualify for federal aid for employment and training 
235.4   services and money; 
235.5      (6) enter into agreements with other departments of the 
235.6   state and local units of government as necessary; 
235.7      (7) certify employment and training service providers and 
235.8   decertify service providers that fail to comply with performance 
235.9   criteria according to standards established by the commissioner; 
235.10     (8) provide consistent, integrated employment and training 
235.11  services across the state; 
235.12     (9) establish the standards for all employment and training 
235.13  services administered under this chapter; 
235.14     (10) develop standards for the contents and structure of 
235.15  the local service unit plans and plans for Indian tribe 
235.16  employment and training services; 
235.17     (11) provide current state and substate labor market 
235.18  information and forecasts, in cooperation with other agencies; 
235.19     (12) identify underserved populations, unmet service needs, 
235.20  and funding requirements; 
235.21     (13) consult with the council for the blind on matters 
235.22  pertaining to programs and services for the blind and visually 
235.23  impaired; and 
235.24     (14) enter into agreements with Indian tribes as necessary 
235.25  to provide employment and training services as funds become 
235.26  available. 
235.27     Sec. 28.  Minnesota Statutes 1996, section 268.552, 
235.28  subdivision 5, is amended to read: 
235.29     Subd. 5.  [ALLOCATION TO APPLICANTS.] Priority for 
235.30  subsidies shall be in the following order: 
235.31     (1) applicants living in households with no other income 
235.32  source; 
235.33     (2) applicants whose incomes and resources are less than 
235.34  the standard for eligibility for general assistance or work 
235.35  readiness; and 
235.36     (3) applicants who are eligible for aid to families with 
236.1   dependent children or Minnesota family investment 
236.2   program-statewide. 
236.3      Sec. 29.  Minnesota Statutes 1996, section 268.6751, 
236.4   subdivision 1, is amended to read: 
236.5      Subdivision 1.  [WAGE SUBSIDIES.] Wage subsidy money must 
236.6   be allocated to local service units in the following manner: 
236.7      (a) The commissioner shall allocate 87.5 percent of the 
236.8   funds available for allocation to local service units for wage 
236.9   subsidy programs as follows:  the proportion of the wage subsidy 
236.10  money available to each local service unit must be based on the 
236.11  number of unemployed persons in the local service unit for the 
236.12  most recent six-month period and the number of work readiness 
236.13  assistance cases and aid to families with dependent children and 
236.14  Minnesota family investment program-statewide cases in the local 
236.15  service unit for the most recent six-month period. 
236.16     (b) Five percent of the money available for wage subsidy 
236.17  programs must be allocated at the discretion of the commissioner.
236.18     (c) Seven and one-half percent of the money available for 
236.19  wage subsidy programs must be allocated at the discretion of the 
236.20  commissioner to provide jobs for residents of federally 
236.21  recognized Indian reservations.  
236.22     (d) By December 31 of each fiscal year, providers and local 
236.23  service units receiving wage subsidy money shall report to the 
236.24  commissioner on the use of allocated funds.  The commissioner 
236.25  shall reallocate uncommitted funds for each fiscal year 
236.26  according to the formula in paragraph (a). 
236.27     Sec. 30.  Minnesota Statutes 1996, section 268.676, 
236.28  subdivision 1, is amended to read: 
236.29     Subdivision 1.  [AMONG JOB APPLICANTS.] At least 80 percent 
236.30  of funds allocated among eligible job applicants statewide must 
236.31  be allocated to: 
236.32     (1) applicants living in households with no other income 
236.33  source; 
236.34     (2) applicants whose incomes and resources are less than 
236.35  the standards for eligibility for general assistance or work 
236.36  readiness; 
237.1      (3) applicants who are eligible for aid to families with 
237.2   dependent children or Minnesota family investment 
237.3   program-statewide; and 
237.4      (4) applicants who live in a farm household who demonstrate 
237.5   severe household financial need. 
237.6      Sec. 31.  Minnesota Statutes 1996, section 268.86, 
237.7   subdivision 2, is amended to read: 
237.8      Subd. 2.  [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 
237.9   commissioner and the commissioner of human services shall enter 
237.10  into a written contract for the design, delivery, and 
237.11  administration of employment and training services for 
237.12  applicants for or recipients of food stamps or, aid to families 
237.13  with dependent children and work readiness or Minnesota family 
237.14  investment program-statewide, including AFDC and MFIP-S 
237.15  employment and training programs, and general assistance or work 
237.16  readiness grant diversion.  The contract must address: 
237.17     (1) specific roles and responsibilities of each department; 
237.18     (2) assignment and supervision of staff for interagency 
237.19  activities including any necessary interagency employee mobility 
237.20  agreements under the administrative procedures of the department 
237.21  of employee relations; 
237.22     (3) mechanisms for determining the conditions under which 
237.23  individuals participate in services, their rights and 
237.24  responsibilities while participating, and the standards by which 
237.25  the services must be administered; 
237.26     (4) procedures for providing technical assistance to local 
237.27  service units, Indian tribes, and employment and training 
237.28  service providers; 
237.29     (5) access to appropriate staff for ongoing development and 
237.30  interpretation of policy, rules, and program standards; 
237.31     (6) procedures for reimbursing appropriate agencies for 
237.32  administrative expenses; and 
237.33     (7) procedures for accessing available federal funds. 
237.34     Sec. 32.  Minnesota Statutes 1996, section 268.871, 
237.35  subdivision 1, is amended to read: 
237.36     Subdivision 1.  [RESPONSIBILITY AND CERTIFICATION.] (a) 
238.1   Unless prohibited by federal law or otherwise determined by 
238.2   state law, a local service unit is responsible for the delivery 
238.3   of employment and training services.  After February 1, 1988, 
238.4   employment and training services must be delivered by certified 
238.5   employment and training service providers.  
238.6      (b) The local service unit's employment and training 
238.7   service provider must meet the certification standards in this 
238.8   subdivision in order to be certified to deliver any of the 
238.9   following employment and training services and programs:  wage 
238.10  subsidies; work readiness; work readiness and general assistance 
238.11  grant diversion; food stamp employment and training programs; 
238.12  community work experience programs; AFDC or MFIP-S job search; 
238.13  AFDC or MFIP-S grant diversion; AFDC or MFIP-S on-the-job 
238.14  training; and AFDC or MFIP-S case management.  
238.15     (c) The commissioner shall certify a local service unit's 
238.16  service provider to provide these employment and training 
238.17  services and programs if the commissioner determines that the 
238.18  provider has:  
238.19     (1) past experience in direct delivery of the programs 
238.20  specified in paragraph (b); 
238.21     (2) staff capabilities and qualifications, including 
238.22  adequate staff to provide timely and effective services to 
238.23  clients, and proven staff experience in providing specific 
238.24  services such as assessments, career planning, job development, 
238.25  job placement, support services, and knowledge of community 
238.26  services and educational resources; 
238.27     (3) demonstrated effectiveness in providing services to 
238.28  public assistance recipients and other economically 
238.29  disadvantaged clients; and 
238.30     (4) demonstrated administrative capabilities, including 
238.31  adequate fiscal and accounting procedures, financial management 
238.32  systems, participant data systems, and record retention 
238.33  procedures. 
238.34     (d) When the only service provider that meets the criterion 
238.35  in paragraph (c), clause (1), has been decertified, pursuant 
238.36  according to subdivision 1a, in that local service unit, the 
239.1   following criteria shall be substituted:  past experience in 
239.2   direct delivery of multiple, coordinated, nonduplicative 
239.3   services, including outreach, assessments, identification of 
239.4   client barriers, employability development plans, and provision 
239.5   or referral to support services. 
239.6      (e) The commissioner shall certify providers of the 
239.7   Minnesota family investment plan case management services as 
239.8   defined in section 256.032, subdivision 3.  Providers must meet 
239.9   the standards defined in paragraph (c), except that past 
239.10  experience under paragraph (c), clause (1), must be in services 
239.11  and programs similar to those specified in section 256.032, 
239.12  subdivision 3.  
239.13     Employment and training service providers shall be 
239.14  certified by the commissioner for two fiscal years beginning 
239.15  July 1, 1991, and every second year thereafter. 
239.16     Sec. 33.  Minnesota Statutes 1996, section 268.90, 
239.17  subdivision 2, is amended to read: 
239.18     Subd. 2.  [EMPLOYMENT CONDITIONS.] (a) An eligible 
239.19  nonprofit or public employer may not terminate, lay off, or 
239.20  reduce the regular working hours of an employee for the purpose 
239.21  of hiring an individual with money available under this 
239.22  program.  An eligible employer may not hire an individual with 
239.23  money available through this program if any other person is on 
239.24  layoff from the same or a substantially equivalent job. 
239.25     (b) Community investment program participants are employees 
239.26  of the project employer within the meaning of workers' 
239.27  compensation laws, personal income tax, and the federal 
239.28  insurance contribution act, but not retirement or civil service 
239.29  laws. 
239.30     (c) Each project and job must comply with all applicable 
239.31  affirmative action, fair labor, health, safety, and 
239.32  environmental standards. 
239.33     (d) Individuals employed under the community investment 
239.34  program must be paid a wage at the same wage rates as work site 
239.35  or employees doing comparable work in that locality, unless 
239.36  otherwise specified in law. 
240.1      (e) Recipients of aid to families with dependent 
240.2   children or Minnesota family investment program-statewide who 
240.3   are eligible on the basis of an unemployed parent may not have 
240.4   available more than 100 hours a month.  All employees are 
240.5   limited to 32 hours or four days a week, so that they can 
240.6   continue to seek full-time private sector employment, unless 
240.7   otherwise specified in law. 
240.8      (f) The commissioner shall establish, by rule, the terms 
240.9   and conditions governing the participation of appropriate public 
240.10  assistance recipients.  The rules must, at a minimum, establish 
240.11  the procedures by which the minimum and maximum number of work 
240.12  hours and maximum allowable travel distances are determined, the 
240.13  amounts and methods by which work expenses will be paid, and the 
240.14  manner in which support services will be provided.  The rules 
240.15  must also provide for periodic reviews of clients continuing 
240.16  employment in community investment programs. 
240.17     (g) Participation in a community investment program by a 
240.18  recipient of aid to families with dependent children, Minnesota 
240.19  family investment program-statewide or general assistance is 
240.20  voluntary; however, work readiness registrants may be required 
240.21  to participate.  
240.22     Sec. 34.  Minnesota Statutes 1996, section 268.916, is 
240.23  amended to read: 
240.24     268.916 [REPORTS.] 
240.25     Each grantee shall submit an annual report to the 
240.26  commissioner on the format designated by the commissioner, 
240.27  including program information report data.  By January 1 of each 
240.28  year, the commissioner shall prepare an annual report to the 
240.29  health and human services committee of the house of 
240.30  representatives and the family services committee of the senate 
240.31  concerning the uses and impact of head start supplemental 
240.32  funding, including a summary of innovative programs and the 
240.33  results of innovative programs and an evaluation of the 
240.34  coordination of head start programs with employment and training 
240.35  services provided to AFDC and MFIP-S recipients. 
240.36     Sec. 35.  Minnesota Statutes 1996, section 268.95, 
241.1   subdivision 4, is amended to read: 
241.2      Subd. 4.  [PILOT PROGRAM.] The commissioner shall develop a 
241.3   pilot program, in cooperation with the commissioners of trade 
241.4   and economic development and human services, to enable 
241.5   low-income persons to start or expand self-employment 
241.6   opportunities or home-based businesses that are designed to make 
241.7   the individual entrepreneurs economically independent.  The 
241.8   commissioner of human services shall seek necessary waivers from 
241.9   federal regulations to allow recipients of aid to families with 
241.10  dependent children or Minnesota family investment 
241.11  program-statewide to participate and retain eligibility while 
241.12  establishing a business. 
241.13     Sec. 36.  Minnesota Statutes 1996, section 393.07, 
241.14  subdivision 6, is amended to read: 
241.15     Subd. 6.  [PURCHASE OF EQUIPMENT TO AID WELFARE 
241.16  RECIPIENTS.] Every local social services agency authorizing 
241.17  braces, crutches, trusses, wheel chairs and hearing aids for use 
241.18  by recipients of supplemental security income for the aged, 
241.19  blind and disabled, aid to families with dependent children or 
241.20  Minnesota family investment program-statewide and relief shall 
241.21  secure such devices at the lowest cost obtainable conducive to 
241.22  the well being of the recipient and fix the recipient's grant in 
241.23  an amount to cover the cost of the device providing it will be 
241.24  purchased at the lowest cost obtainable, or may make payment for 
241.25  the device directly to the vendor. 
241.26     Sec. 37.  Minnesota Statutes 1996, section 477A.0122, 
241.27  subdivision 2, is amended to read: 
241.28     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
241.29  following definitions apply: 
241.30     (a) "Children in out-of-home placement" means the total 
241.31  unduplicated number of children in out-of-home care as reported 
241.32  pursuant according to section 257.0725. 
241.33     (b) "Family preservation programs" means family-based 
241.34  services as defined in section 256F.03, subdivision 5, families 
241.35  first services, parent and child education programs, and day 
241.36  treatment services provided in cooperation with a school 
242.1   district or other programs as defined by the commissioner of 
242.2   human services. 
242.3      (c) "Income maintenance caseload" means average monthly 
242.4   number of AFDC or Minnesota family investment program-statewide 
242.5   cases for the calendar year. 
242.6      By July 1, 1994, the commissioner of human services shall 
242.7   certify to the commissioner of revenue the number of children in 
242.8   out-of-home placement in 1991 and 1992 for each county and the 
242.9   income maintenance caseload for each county for the most recent 
242.10  year available.  By July 1 of each subsequent year, the 
242.11  commissioner of human services shall certify to the commissioner 
242.12  of revenue the income maintenance caseload for each county for 
242.13  the most recent calendar year available. 
242.14     Sec. 38.  [REVISOR INSTRUCTION.] 
242.15     The revisor of statutes shall identify in Minnesota 
242.16  Statutes and Minnesota Rules all references to aid to families 
242.17  with dependent children and AFDC, and to Minnesota Statutes, 
242.18  section 256.12, or any of the sections of Minnesota Statutes 
242.19  from sections 256.72 to 256.87.  
242.20     The revisor shall prepare a report by January 1, 1998, for 
242.21  the 1998 legislature showing where these references are located. 
242.22     Sec. 39.  [EFFECTIVE DATE.] 
242.23     Sections 1 to 37 are effective July 1, 1997. 
242.24                             ARTICLE 5
242.25                      CORPS TO CAREER PROGRAM
242.26     Section 1.  Minnesota Statutes 1996, section 84.0887, 
242.27  subdivision 2, is amended to read: 
242.28     Subd. 2.  [ADDITIONAL SERVICES; CORPS TO CAREER COMMUNITY 
242.29  SERVICE.] (a) In addition to services under subdivision 1, youth 
242.30  corps programs may coordinate with or provide services to: 
242.31     (1) making public facilities accessible to individuals with 
242.32  disabilities; 
242.33     (2) federal, state, local, and regional governmental 
242.34  agencies; 
242.35     (3) nursing homes, hospices, senior centers, hospitals, 
242.36  local libraries, parks, recreational facilities, child and adult 
243.1   day care centers, programs servicing individuals with 
243.2   disabilities, and schools; 
243.3      (4) law enforcement agencies, and penal and probation 
243.4   systems; 
243.5      (5) private nonprofit organizations that primarily focus on 
243.6   social service such as community action agencies; 
243.7      (6) activities that focus on the rehabilitation or 
243.8   improvement of public facilities, neighborhood improvements, 
243.9   literacy training that benefits educationally disadvantaged 
243.10  individuals, weatherization of and basic repairs to low-income 
243.11  housing including housing occupied by older adults, activities 
243.12  that focus on drug and alcohol abuse education, prevention, and 
243.13  treatment; and 
243.14     (7) any other nonpartisan civic activities and services 
243.15  that the commissioner determines to be of a substantial social 
243.16  benefit in meeting unmet human, educational, or environmental 
243.17  needs, particularly needs related to poverty, or in the 
243.18  community where volunteer service is to be performed. 
243.19     (b) Youth and young adults may provide full-time or 
243.20  part-time youth community service in a program known as "corps 
243.21  to career" if the individual: 
243.22     (1) is an unemployed high school dropout and is a parent of 
243.23  a minor member of an assistance unit under the AFDC, MFIP, or 
243.24  MFIP-R programs under chapter 256, or under the MFIP-S program 
243.25  under chapter 256J, or is a person who is a member of an 
243.26  assistance unit under the AFDC, MFIP, or MFIP-R programs under 
243.27  chapter 256, or under the MFIP-S program under chapter 256J; 
243.28     (2) agrees to only use the individual's postservice benefit 
243.29  under the federal Americorps Act to complete a customized job 
243.30  training program that requires 20 percent of the individual's 
243.31  time to be spent in the corps to career program and that is 
243.32  consistent with the work requirements of the employment and 
243.33  training services component of the MFIP-S program under chapter 
243.34  256J or, if a customized job training program is unavailable, 
243.35  agrees to use the postservice benefit consistent with the 
243.36  federal education award; and 
244.1      (3) during the entire time the individual completes the 
244.2   individual's job training program, resides within an enterprise 
244.3   zone as defined in section 469.303. 
244.4      To be eligible under this paragraph, any individual who 
244.5   receives assistance under clause (1) after MFIP-S has been 
244.6   implemented in the individual's county of financial 
244.7   responsibility, and who meets the requirements in clauses (2) 
244.8   and (3), also must meet the requirements of the employment and 
244.9   training services component of the MFIP-S program under chapter 
244.10  256J.  
244.11     (c) The commissioner of the department of natural resources 
244.12  shall ensure that the corps to career program will not decrease 
244.13  employment opportunities that would be available without the 
244.14  program; will not displace current employees including any 
244.15  partial displacement in the form of reduced hours of work other 
244.16  than overtime, wages, employment benefits, or regular seasonal 
244.17  work; will not impair existing labor agreements; and will not 
244.18  result in the substitution of project funding for preexisting 
244.19  funds or sources of funds for ongoing work. 
244.20     Sec. 2.  [EFFECTIVE DATE.] 
244.21     This article is effective July 1, 1997. 
244.22                             ARTICLE 6
244.23                       CITIZENSHIP PROMOTION
244.24     Section 1.  [3.9228] [CITIZENSHIP PROMOTION PROGRAM.] 
244.25     Subdivision 1.  [CREATION.] The citizenship promotion 
244.26  program is created as a statewide program.  The purpose of the 
244.27  program is to provide assistance to legal immigrants to obtain 
244.28  citizenship status.  The program consists of public education 
244.29  and information, group application workshops, citizenship and 
244.30  English for citizenship classes, and video citizenship 
244.31  instruction. 
244.32     Subd. 2.  [PUBLIC EDUCATION AND INFORMATION.] The public 
244.33  education program must include the preparation and distribution 
244.34  of information about citizenship eligibility requirements, how 
244.35  to apply, what testing requirements are, and where citizenship 
244.36  assistance can be obtained.  Community meetings must be held to 
245.1   provide the same information and to respond to questions. 
245.2      Subd. 3.  [GROUP APPLICATION WORKSHOPS.] Group workshops 
245.3   must be held on a periodic basis.  The workshops must provide 
245.4   individualized advice about applying for citizenship and provide 
245.5   an overview of the citizenship process.  Participants must be 
245.6   screened for English proficiency and, upon request, enrolled in 
245.7   citizenship application workshops. 
245.8      Subd. 4.  [CITIZENSHIP AND ENGLISH CLASSES.] The program 
245.9   must support and supplement existing English for citizenship 
245.10  classes.  Classes must also be supported and offered in native 
245.11  languages for those able to take a citizenship test in their 
245.12  native language.  Tuition may be charged for classes, 
245.13  scholarships provided for needy students, interpreters provided, 
245.14  and transportation and child care assistance provided for 
245.15  hardship applicants. 
245.16     Subd. 5.  [VIDEO INSTRUCTION.] The program must develop and 
245.17  produce a television series to provide citizenship education and 
245.18  make available videotapes of the classes. 
245.19     Subd. 6.  [ADMINISTRATION.] The executive directors of the 
245.20  councils on Black Minnesotans, Asian-Pacific Minnesotans, and 
245.21  Chicano-Latino affairs shall jointly administer the citizenship 
245.22  promotion program.  The directors shall jointly hire and 
245.23  supervise staff to coordinate the program.  The staff shall 
245.24  process applications for grants, act as a clearinghouse to 
245.25  promote the exchange of information, expertise, and best 
245.26  practices among citizenship promotion programs and 
245.27  organizations, and develop resources to assist in the operation 
245.28  of community-based programs.  The staff shall organize an 
245.29  advisory committee of representatives of ethnic and geographic 
245.30  groups of legal immigrants.  
245.31     Subd. 7.  [GRANTS.] The directors shall make grants to 
245.32  nonprofit organizations and government agencies to operate 
245.33  citizenship promotion programs under this section.  The staff 
245.34  shall consult with the advisory committee about the appropriate 
245.35  selection of grantees and about what policies should be adopted 
245.36  to ensure that the goals of the citizenship promotion programs 
246.1   are attained.  In awarding grants, the directors must consider 
246.2   the quality of programs operated by proposed applicants, 
246.3   including the program's prior success in enabling immigrants to 
246.4   become citizens.  Grant applicants must identify the measures by 
246.5   which their success with the grant funds will be evaluated, 
246.6   including the numbers of immigrants who are expected to become 
246.7   citizens.  In awarding grants, the councils shall ensure 
246.8   reasonable access to citizenship programs in all regions of 
246.9   Minnesota. 
246.10     Sec. 2.  [EFFECTIVE DATE.] 
246.11     This article is effective the day following final enactment.
246.12                             ARTICLE 7
246.13                   PROGRAM INTEGRITY INITIATIVES 
246.14     Section 1.  Minnesota Statutes 1996, section 13.82, 
246.15  subdivision 1, is amended to read: 
246.16     Subdivision 1.  [APPLICATION.] This section shall apply to 
246.17  agencies which carry on a law enforcement function, including 
246.18  but not limited to municipal police departments, county sheriff 
246.19  departments, fire departments, the bureau of criminal 
246.20  apprehension, the Minnesota state patrol, the board of peace 
246.21  officer standards and training, the department of commerce, and 
246.22  the department of labor and industry fraud investigation unit, 
246.23  and the program integrity section and county human services 
246.24  agency client and provider fraud prevention and control units 
246.25  operated or supervised by the department of human services.  
246.26     Sec. 2.  Minnesota Statutes 1996, section 256.01, 
246.27  subdivision 2, is amended to read: 
246.28     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
246.29  section 241.021, subdivision 2, the commissioner of human 
246.30  services shall: 
246.31     (1) Administer and supervise all forms of public assistance 
246.32  provided for by state law and other welfare activities or 
246.33  services as are vested in the commissioner.  Administration and 
246.34  supervision of human services activities or services includes, 
246.35  but is not limited to, assuring timely and accurate distribution 
246.36  of benefits, completeness of service, and quality program 
247.1   management.  In addition to administering and supervising human 
247.2   services activities vested by law in the department, the 
247.3   commissioner shall have the authority to: 
247.4      (a) require county agency participation in training and 
247.5   technical assistance programs to promote compliance with 
247.6   statutes, rules, federal laws, regulations, and policies 
247.7   governing human services; 
247.8      (b) monitor, on an ongoing basis, the performance of county 
247.9   agencies in the operation and administration of human services, 
247.10  enforce compliance with statutes, rules, federal laws, 
247.11  regulations, and policies governing welfare services and promote 
247.12  excellence of administration and program operation; 
247.13     (c) develop a quality control program or other monitoring 
247.14  program to review county performance and accuracy of benefit 
247.15  determinations; 
247.16     (d) require county agencies to make an adjustment to the 
247.17  public assistance benefits issued to any individual consistent 
247.18  with federal law and regulation and state law and rule and to 
247.19  issue or recover benefits as appropriate; 
247.20     (e) delay or deny payment of all or part of the state and 
247.21  federal share of benefits and administrative reimbursement 
247.22  according to the procedures set forth in section 256.017; and 
247.23     (f) make contracts with and grants to public and private 
247.24  agencies and organizations, both profit and nonprofit, and 
247.25  individuals, using appropriated funds. 
247.26     (2) Inform county agencies, on a timely basis, of changes 
247.27  in statute, rule, federal law, regulation, and policy necessary 
247.28  to county agency administration of the programs. 
247.29     (3) Administer and supervise all child welfare activities; 
247.30  promote the enforcement of laws protecting handicapped, 
247.31  dependent, neglected and delinquent children, and children born 
247.32  to mothers who were not married to the children's fathers at the 
247.33  times of the conception nor at the births of the children; 
247.34  license and supervise child-caring and child-placing agencies 
247.35  and institutions; supervise the care of children in boarding and 
247.36  foster homes or in private institutions; and generally perform 
248.1   all functions relating to the field of child welfare now vested 
248.2   in the state board of control. 
248.3      (4) Administer and supervise all noninstitutional service 
248.4   to handicapped persons, including those who are visually 
248.5   impaired, hearing impaired, or physically impaired or otherwise 
248.6   handicapped.  The commissioner may provide and contract for the 
248.7   care and treatment of qualified indigent children in facilities 
248.8   other than those located and available at state hospitals when 
248.9   it is not feasible to provide the service in state hospitals. 
248.10     (5) Assist and actively cooperate with other departments, 
248.11  agencies and institutions, local, state, and federal, by 
248.12  performing services in conformity with the purposes of Laws 
248.13  1939, chapter 431. 
248.14     (6) Act as the agent of and cooperate with the federal 
248.15  government in matters of mutual concern relative to and in 
248.16  conformity with the provisions of Laws 1939, chapter 431, 
248.17  including the administration of any federal funds granted to the 
248.18  state to aid in the performance of any functions of the 
248.19  commissioner as specified in Laws 1939, chapter 431, and 
248.20  including the promulgation of rules making uniformly available 
248.21  medical care benefits to all recipients of public assistance, at 
248.22  such times as the federal government increases its participation 
248.23  in assistance expenditures for medical care to recipients of 
248.24  public assistance, the cost thereof to be borne in the same 
248.25  proportion as are grants of aid to said recipients. 
248.26     (7) Establish and maintain any administrative units 
248.27  reasonably necessary for the performance of administrative 
248.28  functions common to all divisions of the department. 
248.29     (8) Act as designated guardian of both the estate and the 
248.30  person of all the wards of the state of Minnesota, whether by 
248.31  operation of law or by an order of court, without any further 
248.32  act or proceeding whatever, except as to persons committed as 
248.33  mentally retarded.  
248.34     (9) Act as coordinating referral and informational center 
248.35  on requests for service for newly arrived immigrants coming to 
248.36  Minnesota. 
249.1      (10) The specific enumeration of powers and duties as 
249.2   hereinabove set forth shall in no way be construed to be a 
249.3   limitation upon the general transfer of powers herein contained. 
249.4      (11) Establish county, regional, or statewide schedules of 
249.5   maximum fees and charges which may be paid by county agencies 
249.6   for medical, dental, surgical, hospital, nursing and nursing 
249.7   home care and medicine and medical supplies under all programs 
249.8   of medical care provided by the state and for congregate living 
249.9   care under the income maintenance programs. 
249.10     (12) Have the authority to conduct and administer 
249.11  experimental projects to test methods and procedures of 
249.12  administering assistance and services to recipients or potential 
249.13  recipients of public welfare.  To carry out such experimental 
249.14  projects, it is further provided that the commissioner of human 
249.15  services is authorized to waive the enforcement of existing 
249.16  specific statutory program requirements, rules, and standards in 
249.17  one or more counties.  The order establishing the waiver shall 
249.18  provide alternative methods and procedures of administration, 
249.19  shall not be in conflict with the basic purposes, coverage, or 
249.20  benefits provided by law, and in no event shall the duration of 
249.21  a project exceed four years.  It is further provided that no 
249.22  order establishing an experimental project as authorized by the 
249.23  provisions of this section shall become effective until the 
249.24  following conditions have been met: 
249.25     (a) The proposed comprehensive plan, including estimated 
249.26  project costs and the proposed order establishing the waiver, 
249.27  shall be filed with the secretary of the senate and chief clerk 
249.28  of the house of representatives at least 60 days prior to its 
249.29  effective date. 
249.30     (b) The secretary of health, education, and welfare of the 
249.31  United States has agreed, for the same project, to waive state 
249.32  plan requirements relative to statewide uniformity. 
249.33     (c) A comprehensive plan, including estimated project 
249.34  costs, shall be approved by the legislative advisory commission 
249.35  and filed with the commissioner of administration.  
249.36     (13) In accordance with According to federal requirements, 
250.1   establish procedures to be followed by local welfare boards in 
250.2   creating citizen advisory committees, including procedures for 
250.3   selection of committee members. 
250.4      (14) Allocate federal fiscal disallowances or sanctions 
250.5   which are based on quality control error rates for the aid to 
250.6   families with dependent children, Minnesota family investment 
250.7   program-statewide, medical assistance, or food stamp program in 
250.8   the following manner:  
250.9      (a) One-half of the total amount of the disallowance shall 
250.10  be borne by the county boards responsible for administering the 
250.11  programs.  For the medical assistance, MFIP-S, and AFDC 
250.12  programs, disallowances shall be shared by each county board in 
250.13  the same proportion as that county's expenditures for the 
250.14  sanctioned program are to the total of all counties' 
250.15  expenditures for the AFDC, MFIP-S, and medical assistance 
250.16  programs.  For the food stamp program, sanctions shall be shared 
250.17  by each county board, with 50 percent of the sanction being 
250.18  distributed to each county in the same proportion as that 
250.19  county's administrative costs for food stamps are to the total 
250.20  of all food stamp administrative costs for all counties, and 50 
250.21  percent of the sanctions being distributed to each county in the 
250.22  same proportion as that county's value of food stamp benefits 
250.23  issued are to the total of all benefits issued for all 
250.24  counties.  Each county shall pay its share of the disallowance 
250.25  to the state of Minnesota.  When a county fails to pay the 
250.26  amount due hereunder, the commissioner may deduct the amount 
250.27  from reimbursement otherwise due the county, or the attorney 
250.28  general, upon the request of the commissioner, may institute 
250.29  civil action to recover the amount due. 
250.30     (b) Notwithstanding the provisions of paragraph (a), if the 
250.31  disallowance results from knowing noncompliance by one or more 
250.32  counties with a specific program instruction, and that knowing 
250.33  noncompliance is a matter of official county board record, the 
250.34  commissioner may require payment or recover from the county or 
250.35  counties, in the manner prescribed in paragraph (a), an amount 
250.36  equal to the portion of the total disallowance which resulted 
251.1   from the noncompliance, and may distribute the balance of the 
251.2   disallowance according to paragraph (a).  
251.3      (15) Develop and implement special projects that maximize 
251.4   reimbursements and result in the recovery of money to the 
251.5   state.  For the purpose of recovering state money, the 
251.6   commissioner may enter into contracts with third parties.  Any 
251.7   recoveries that result from projects or contracts entered into 
251.8   under this paragraph shall be deposited in the state treasury 
251.9   and credited to a special account until the balance in the 
251.10  account reaches $1,000,000.  When the balance in the account 
251.11  exceeds $1,000,000, the excess shall be transferred and credited 
251.12  to the general fund.  All money in the account is appropriated 
251.13  to the commissioner for the purposes of this paragraph. 
251.14     (16) Have the authority to make direct payments to 
251.15  facilities providing shelter to women and their children 
251.16  pursuant according to section 256D.05, subdivision 3.  Upon the 
251.17  written request of a shelter facility that has been denied 
251.18  payments under section 256D.05, subdivision 3, the commissioner 
251.19  shall review all relevant evidence and make a determination 
251.20  within 30 days of the request for review regarding issuance of 
251.21  direct payments to the shelter facility.  Failure to act within 
251.22  30 days shall be considered a determination not to issue direct 
251.23  payments. 
251.24     (17) Have the authority to establish and enforce the 
251.25  following county reporting requirements:  
251.26     (a) The commissioner shall establish fiscal and statistical 
251.27  reporting requirements necessary to account for the expenditure 
251.28  of funds allocated to counties for human services programs.  
251.29  When establishing financial and statistical reporting 
251.30  requirements, the commissioner shall evaluate all reports, in 
251.31  consultation with the counties, to determine if the reports can 
251.32  be simplified or the number of reports can be reduced. 
251.33     (b) The county board shall submit monthly or quarterly 
251.34  reports to the department as required by the commissioner.  
251.35  Monthly reports are due no later than 15 working days after the 
251.36  end of the month.  Quarterly reports are due no later than 30 
252.1   calendar days after the end of the quarter, unless the 
252.2   commissioner determines that the deadline must be shortened to 
252.3   20 calendar days to avoid jeopardizing compliance with federal 
252.4   deadlines or risking a loss of federal funding.  Only reports 
252.5   that are complete, legible, and in the required format shall be 
252.6   accepted by the commissioner.  
252.7      (c) If the required reports are not received by the 
252.8   deadlines established in clause (b), the commissioner may delay 
252.9   payments and withhold funds from the county board until the next 
252.10  reporting period.  When the report is needed to account for the 
252.11  use of federal funds and the late report results in a reduction 
252.12  in federal funding, the commissioner shall withhold from the 
252.13  county boards with late reports an amount equal to the reduction 
252.14  in federal funding until full federal funding is received.  
252.15     (d) A county board that submits reports that are late, 
252.16  illegible, incomplete, or not in the required format for two out 
252.17  of three consecutive reporting periods is considered 
252.18  noncompliant.  When a county board is found to be noncompliant, 
252.19  the commissioner shall notify the county board of the reason the 
252.20  county board is considered noncompliant and request that the 
252.21  county board develop a corrective action plan stating how the 
252.22  county board plans to correct the problem.  The corrective 
252.23  action plan must be submitted to the commissioner within 45 days 
252.24  after the date the county board received notice of noncompliance.
252.25     (e) The final deadline for fiscal reports or amendments to 
252.26  fiscal reports is one year after the date the report was 
252.27  originally due.  If the commissioner does not receive a report 
252.28  by the final deadline, the county board forfeits the funding 
252.29  associated with the report for that reporting period and the 
252.30  county board must repay any funds associated with the report 
252.31  received for that reporting period. 
252.32     (f) The commissioner may not delay payments, withhold 
252.33  funds, or require repayment under paragraph (c) or (e) if the 
252.34  county demonstrates that the commissioner failed to provide 
252.35  appropriate forms, guidelines, and technical assistance to 
252.36  enable the county to comply with the requirements.  If the 
253.1   county board disagrees with an action taken by the commissioner 
253.2   under paragraph (c) or (e), the county board may appeal the 
253.3   action according to sections 14.57 to 14.69. 
253.4      (g) Counties subject to withholding of funds under 
253.5   paragraph (c) or forfeiture or repayment of funds under 
253.6   paragraph (e) shall not reduce or withhold benefits or services 
253.7   to clients to cover costs incurred due to actions taken by the 
253.8   commissioner under paragraph (c) or (e). 
253.9      (18) Allocate federal fiscal disallowances or sanctions for 
253.10  audit exceptions when federal fiscal disallowances or sanctions 
253.11  are based on a statewide random sample for the foster care 
253.12  program under title IV-E of the Social Security Act, United 
253.13  States Code, title 42, in direct proportion to each county's 
253.14  title IV-E foster care maintenance claim for that period. 
253.15     (19) Be responsible for ensuring the detection, prevention, 
253.16  investigation, and resolution of fraudulent activities or 
253.17  behavior by applicants, recipients, and other participants in 
253.18  the human services programs administered by the department. 
253.19     (20) Require county agencies to identify overpayments, 
253.20  establish claims and utilize all available and cost-beneficial 
253.21  methodologies to collect and recover these overpayments in the 
253.22  human services programs administered by the department. 
253.23     Sec. 3.  Minnesota Statutes 1996, section 256.017, 
253.24  subdivision 2, is amended to read: 
253.25     Subd. 2.  [DEFINITIONS.] The following terms have the 
253.26  meanings given for the purpose purposes of this section. 
253.27     (a) "Administrative penalty" means an adjustment against 
253.28  the county agency's state and federal benefit and federal 
253.29  administrative reimbursement when the commissioner determines 
253.30  that the county agency is not in compliance with the policies 
253.31  and procedures established by the commissioner. 
253.32     (b) "Quality control case penalty" means an adjustment 
253.33  against the county agency's federal administrative reimbursement 
253.34  and state and federal benefit reimbursement when the 
253.35  commissioner determines through a quality control review that 
253.36  the county agency has made incorrect payments, terminations, or 
254.1   denials of benefits as determined by state quality control 
254.2   procedures for the aid to families with dependent children in 
254.3   effect until January 1, 1998, Minnesota family investment 
254.4   program-statewide, food stamp, or medical assistance programs, 
254.5   or any other programs for which the commissioner has developed a 
254.6   quality control system.  Quality control case penalties apply 
254.7   only to agency errors as defined by state quality control 
254.8   procedures. 
254.9      (c) "Quality control/quality assurance" means a review 
254.10  system of a statewide random sample of cases, designed to 
254.11  provide data on program outcomes and the accuracy with which 
254.12  state and federal policies are being applied in issuing benefits 
254.13  and as a fiscal audit to ensure the accuracy of expenditures.  
254.14  The quality control/quality assurance system is administered by 
254.15  the department.  For the aid to families with dependent children 
254.16  in effect until January 1, 1998, Minnesota family investment 
254.17  program-statewide, food stamp, and medical assistance programs, 
254.18  the quality control system is that required by federal 
254.19  regulation, or those developed by the commissioner. 
254.20     Sec. 4.  Minnesota Statutes 1996, section 256.019, is 
254.21  amended to read: 
254.22     256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 
254.23     When an amount is recovered from any source for assistance 
254.24  given under the provisions governing public assistance programs 
254.25  including aid to families with dependent children, MFIP-S, 
254.26  general assistance medical care, emergency assistance, general 
254.27  assistance, work readiness, and Minnesota supplemental aid, 
254.28  there shall be paid to the United States the amount due under 
254.29  the terms of the Social Security Act and the balance must be 
254.30  paid into the treasury of the state or county in accordance with 
254.31  current rates of financial participation; except the county may 
254.32  keep one-half of any recovery made by the county agency using 
254.33  any method other than recoupment.  For medical assistance, if 
254.34  the recovery is made by a county agency using any method other 
254.35  than recoupment, the county may keep one-half of the nonfederal 
254.36  share of the recovery.  This does not apply to recoveries from 
255.1   medical providers or to recoveries begun by the department of 
255.2   human services' surveillance and utilization review division, 
255.3   state hospital collections unit, and the benefit recoveries 
255.4   division or, by the attorney general's office, or child support 
255.5   collections.  In the food stamp program, the non-federal share 
255.6   of recoveries in the federal tax refund offset program (FTROP) 
255.7   only will be divided equally between the state agency and the 
255.8   involved county agency. 
255.9      Sec. 5.  Minnesota Statutes 1996, section 256.045, 
255.10  subdivision 3, is amended to read: 
255.11     Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
255.12  hearings are available for the following:  (1) any person 
255.13  applying for, receiving or having received public assistance, 
255.14  medical care, or a program of social services granted by the 
255.15  state agency or a county agency under sections 252.32, 256.031 
255.16  to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E, 
255.17  261, or the federal Food Stamp Act whose application for 
255.18  assistance is denied, not acted upon with reasonable promptness, 
255.19  or whose assistance is suspended, reduced, terminated, or 
255.20  claimed to have been incorrectly paid; (2) any patient or 
255.21  relative aggrieved by an order of the commissioner under section 
255.22  252.27; (3) a party aggrieved by a ruling of a prepaid health 
255.23  plan; (4) any individual or facility determined by a lead agency 
255.24  to have maltreated a vulnerable adult under section 626.557 
255.25  after they have exercised their right to administrative 
255.26  reconsideration under section 626.557; (5) any person whose 
255.27  claim for foster care payment pursuant according to a placement 
255.28  of the child resulting from a child protection assessment under 
255.29  section 626.556 is denied or not acted upon with reasonable 
255.30  promptness, regardless of funding source; (6) any person to whom 
255.31  a right of appeal pursuant according to this section is given by 
255.32  other provision of law; or (7) an applicant aggrieved by an 
255.33  adverse decision to an application for a hardship waiver under 
255.34  section 256B.15.  The failure to exercise the right to an 
255.35  administrative reconsideration shall not be a bar to a hearing 
255.36  under this section if federal law provides an individual the 
256.1   right to a hearing to dispute a finding of maltreatment.  
256.2   Individuals and organizations specified in this section may 
256.3   contest the specified action, decision, or final disposition 
256.4   before the state agency by submitting a written request for a 
256.5   hearing to the state agency within 30 days after receiving 
256.6   written notice of the action, decision, or final disposition, or 
256.7   within 90 days of such written notice if the applicant, 
256.8   recipient, patient, or relative shows good cause why the request 
256.9   was not submitted within the 30-day time limit. 
256.10     The hearing for an individual or facility under clause (4) 
256.11  is the only administrative appeal to the final lead agency 
256.12  disposition specifically, including a challenge to the accuracy 
256.13  and completeness of data under section 13.04.  Hearings 
256.14  requested under clause (4) apply only to incidents of 
256.15  maltreatment that occur on or after October 1, 1995.  Hearings 
256.16  requested by nursing assistants in nursing homes alleged to have 
256.17  maltreated a resident prior to October 1, 1995, shall be held as 
256.18  a contested case proceeding under the provisions of chapter 14. 
256.19     For purposes of this section, bargaining unit grievance 
256.20  procedures are not an administrative appeal. 
256.21     The scope of hearings involving claims to foster care 
256.22  payments under clause (5) shall be limited to the issue of 
256.23  whether the county is legally responsible for a child's 
256.24  placement under court order or voluntary placement agreement 
256.25  and, if so, the correct amount of foster care payment to be made 
256.26  on the child's behalf and shall not include review of the 
256.27  propriety of the county's child protection determination or 
256.28  child placement decision. 
256.29     (b) Except for a prepaid health plan, a vendor of medical 
256.30  care as defined in section 256B.02, subdivision 7, or a vendor 
256.31  under contract with a county agency to provide social services 
256.32  under section 256E.08, subdivision 4, is not a party and may not 
256.33  request a hearing under this section, except if assisting a 
256.34  recipient as provided in subdivision 4. 
256.35     (c) An applicant or recipient is not entitled to receive 
256.36  social services beyond the services included in the amended 
257.1   community social services plan developed under section 256E.081, 
257.2   subdivision 3, if the county agency has met the requirements in 
257.3   section 256E.081. 
257.4      (d) The commissioner may summarily affirm the county or 
257.5   state agency's proposed action without a hearing when the sole 
257.6   issue is an automatic change due to a change in state or federal 
257.7   law. 
257.8      Sec. 6.  Minnesota Statutes 1996, section 256.046, is 
257.9   amended to read: 
257.10     256.046 [ADMINISTRATIVE FRAUD DISQUALIFICATION HEARINGS.] 
257.11     Subdivision 1.  [HEARING AUTHORITY.] A local agency may 
257.12  shall initiate an administrative fraud disqualification hearing 
257.13  for individuals accused of wrongfully obtaining assistance or 
257.14  intentional program violations, in lieu of a criminal action, in 
257.15  the aid to families with dependent children in effect until 
257.16  January 1, 1998, MFIP-S, child care, general assistance, family 
257.17  general assistance, Minnesota supplemental aid, medical care, or 
257.18  food stamp programs.  The hearing is subject to the requirements 
257.19  of section 256.045 and the requirements in Code of Federal 
257.20  Regulations, title 7, section 273.16, for the food stamp program 
257.21  and title 45, section 235.112, as of September 30, 1995, for the 
257.22  aid to families with dependent children program cash grant and 
257.23  medical care programs. 
257.24     Subd. 2.  [COMBINED HEARING.] The referee may combine a 
257.25  fair hearing and administrative fraud disqualification hearing 
257.26  into a single hearing if the factual issues arise out of the 
257.27  same, or related, circumstances and the individual receives 
257.28  prior notice that the hearings will be combined.  If the 
257.29  administrative fraud disqualification hearing and fair hearing 
257.30  are combined, the time frames for administrative fraud 
257.31  disqualification hearings set forth specified in Code of Federal 
257.32  Regulations, title 7, section 273.16, and title 45, section 
257.33  235.112, as of September 30, 1995, apply.  If the individual 
257.34  accused of wrongfully obtaining assistance is charged under 
257.35  section 256.98 for the same act or acts which are the subject of 
257.36  the hearing, the individual may request that the hearing be 
258.1   delayed until the criminal charge is decided by the court or 
258.2   withdrawn. 
258.3      Sec. 7.  [256.0471] [OVERPAYMENTS BECOME JUDGMENTS BY 
258.4   OPERATION OF LAW.] 
258.5      Subdivision 1.  [QUALIFYING OVERPAYMENT.] Except for agency 
258.6   error claims, any overpayment for assistance granted under 
258.7   sections 256.031 to 256.0361, 256.72 to 256.871, and 256H.05; 
258.8   chapters 256B, 256D, 256I, 256J, and 256K; and the food stamp 
258.9   program; becomes a judgment by operation of law 90 days after 
258.10  the notice of overpayment is personally served upon the 
258.11  recipient in a manner that is sufficient under rule 4.03(a) of 
258.12  the Rules of Civil Procedure or by certified mail, return 
258.13  receipt requested.  This judgment shall be entitled to full 
258.14  faith and credit in this and any other state. 
258.15     Subd. 2.  [OVERPAYMENTS INCLUDED.] This section is limited 
258.16  to overpayments for which notification is issued within the time 
258.17  period specified under section 541.05. 
258.18     Subd. 3.  [NOTIFICATION REQUIREMENTS.] A judgment is only 
258.19  obtained after: 
258.20     (1) a notice of overpayment has been personally served on 
258.21  the recipient or former recipient in a manner sufficient under 
258.22  rule 4.03(a) of the Rules of Civil Procedure for district 
258.23  courts, or mailed to the recipient or former recipient by 
258.24  certified mail, return receipt requested; and 
258.25     (2) the time period under section 256.045, subdivision 3, 
258.26  has elapsed without a request for a hearing, or a hearing 
258.27  decision has been rendered under section 256.045 or 256.046 
258.28  which concludes the existence of an overpayment that meets the 
258.29  requirements of this section. 
258.30     Subd. 4.  [NOTICE OF OVERPAYMENT.] The notice of 
258.31  overpayment shall include the amount and cause of the 
258.32  overpayment, appeal rights, and an explanation of the 
258.33  consequences of the judgment that will be established if an 
258.34  appeal is not filed timely or if the administrative hearing 
258.35  decision establishes that there is an overpayment which 
258.36  qualifies for judgment. 
259.1      Subd. 5.  [JUDGMENTS ENTERED AND DOCKETED.] A judgment 
259.2   shall be entered and docketed under section 548.09 only after at 
259.3   least three months have elapsed since: 
259.4      (1) the notice of overpayment was served on the recipient 
259.5   under subdivision 3; and 
259.6      (2) the last time a monthly recoupment was applied to the 
259.7   overpayment. 
259.8      Subd. 6.  [DOCKETING OF OVERPAYMENTS.] On or after the date 
259.9   an unpaid overpayment becomes a judgment by operation of law 
259.10  under subdivision 1, the agency or public authority may file 
259.11  with the court administrator: 
259.12     (1) a statement identifying, or a copy of, the overpayment 
259.13  notice which provides for an appeal process and requires payment 
259.14  of the overpayment; 
259.15     (2) proof of service of the notice of overpayment; 
259.16     (3) an affidavit of default, stating the full name, 
259.17  occupation, place of residence, and last name of the debtor; the 
259.18  name and post office address of the agency or public authority; 
259.19  the date or dates the overpayment was incurred; the program that 
259.20  was overpaid; and the total amount of the judgment; and 
259.21     (4) an affidavit of service of a notice of entry of 
259.22  judgment made by first class mail at the address where the 
259.23  debtor was served with the notice of overpayment.  Service is 
259.24  completed upon mailing in the manner designated. 
259.25     Subd. 7.  [DOES NOT IMPEDE OTHER METHODS.] Nothing in this 
259.26  section shall be construed to impede or restrict alternative 
259.27  recovery methods for these overpayments or overpayments which do 
259.28  not meet the requirements of this section. 
259.29     Sec. 8.  Minnesota Statutes 1996, section 256.98, 
259.30  subdivision 1, is amended to read: 
259.31     Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
259.32  who commits any of the following acts or omissions with intent 
259.33  to defeat the purposes of sections 145.891 to 145.897, 256.12, 
259.34  256.031 to 256.0361, 256.72 to 256.871, 256.9351 to 256.966, 
259.35  child care, MFIP-S, chapter 256B, 256D, 256J, or 256K, or all of 
259.36  these sections, is guilty of theft and shall be sentenced under 
260.1   section 609.52, subdivision 3, clauses (1) to (5): 
260.2      (1) obtains, or attempts to obtain, or aids or abets any 
260.3   person to obtain by means of a willfully false statement or 
260.4   representation, by intentional concealment of a any material 
260.5   fact, or by impersonation or other fraudulent device, assistance 
260.6   or the continued receipt of assistance, including, but not 
260.7   limited to, child care or vouchers produced according to 
260.8   sections 145.891 to 145.897 and MinnesotaCare services according 
260.9   to sections 256.9351 to 256.966, to which the person is not 
260.10  entitled or assistance greater than that to which the person is 
260.11  entitled, or who; or 
260.12     (2) knowingly aids or abets in buying or in any way 
260.13  disposing of the property of a recipient or applicant of 
260.14  assistance without the consent of the county agency with intent 
260.15  to defeat the purposes of sections 256.12, 256.031 to 256.0361, 
260.16  256.72 to 256.871, and chapter 256B, or all of these sections is 
260.17  guilty of theft and shall be sentenced pursuant to section 
260.18  609.52, subdivision 3, clauses (2), (3)(a) and (c), (4), and (5).
260.19     The continued receipt of assistance to which the person is 
260.20  not entitled or greater than that to which the person is 
260.21  entitled as a result of any of the acts, failure to act, or 
260.22  concealment described in this subdivision shall be deemed to be 
260.23  continuing offenses from the date that the first act or failure 
260.24  to act occurred. 
260.25     Sec. 9.  Minnesota Statutes 1996, section 256.98, 
260.26  subdivision 4, is amended to read: 
260.27     Subd. 4.  [RECOVERY OF ASSISTANCE.] The amount of 
260.28  assistance determined to have been incorrectly paid is 
260.29  recoverable from: 
260.30     (1) the recipient or the recipient's estate by the county 
260.31  or the state as a debt due the county or the state or both in 
260.32  proportion to the contribution of each.; and 
260.33     (2) any person found to have taken independent action to 
260.34  establish eligibility for, conspired with, or aided and abetted, 
260.35  any recipient of public assistance found to have been 
260.36  incorrectly paid. 
261.1      Sec. 10.  Minnesota Statutes 1996, section 256.98, 
261.2   subdivision 8, is amended to read: 
261.3      Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
261.4   to be guilty of wrongfully obtaining assistance by a federal or 
261.5   state court or by an administrative hearing determination, or 
261.6   waiver thereof, through a disqualification consent agreement, or 
261.7   as part of any approved diversion plan under section 401.065, or 
261.8   any court ordered stay which carries with it any probationary or 
261.9   other conditions, in the aid to families with dependent children 
261.10  program, the Minnesota family assistance program-statewide, the 
261.11  food stamp program, the Minnesota family investment plan, child 
261.12  care program, the general assistance or family general 
261.13  assistance program, or the Minnesota supplemental aid program, 
261.14  or the work readiness program shall be disqualified from that 
261.15  program.  The needs of that individual shall not be taken into 
261.16  consideration in determining the grant level for that assistance 
261.17  unit:  
261.18     (1) for six months one year after the first offense; 
261.19     (2) for 12 months two years after the second offense; and 
261.20     (3) permanently after the third or subsequent offense.  
261.21     The period of program disqualification shall begin on the 
261.22  date stipulated on the advance notice of disqualification 
261.23  without possibility of postponement for administrative stay or 
261.24  administrative hearing and shall continue through completion 
261.25  unless and until the findings upon which the sanctions were 
261.26  imposed are reversed by a court of competent jurisdiction.  The 
261.27  period for which sanctions are imposed is not subject to 
261.28  review.  The sanctions provided under this subdivision are in 
261.29  addition to, and not in substitution for, any other sanctions 
261.30  that may be provided for by law for the offense involved.  A 
261.31  disqualification established through hearing or waiver shall 
261.32  result in the disqualification period beginning immediately 
261.33  unless the person has become otherwise ineligible for 
261.34  assistance.  If the person is ineligible for assistance, the 
261.35  disqualification period begins when the person again meets the 
261.36  eligibility criteria of the program from which they were 
262.1   disqualified and makes application for that program. 
262.2      Sec. 11.  Minnesota Statutes 1996, section 256.983, 
262.3   subdivision 1, is amended to read: 
262.4      Subdivision 1.  [PROGRAMS ESTABLISHED.] Within the limits 
262.5   of available appropriations, and to the extent required or 
262.6   authorized by applicable federal regulations, the commissioner 
262.7   of human services shall require the establishment maintenance of 
262.8   budget neutral fraud prevention investigation programs in the 
262.9   seven counties participating in the fraud prevention 
262.10  investigation pilot project established under this section, and 
262.11  in 11 additional Minnesota counties with the largest aid to 
262.12  families with dependent children program caseloads as of July 1, 
262.13  1991.  If funds are sufficient, the commissioner may also extend 
262.14  fraud prevention investigation programs to:  (1) other 
262.15  counties that have welfare fraud control programs already in 
262.16  place based on enhanced funding contracts covering the fraud 
262.17  investigation function; and (2) counties that have the largest 
262.18  AFDC caseloads as of July 1, 1994, and are not currently 
262.19  participating in the fraud prevention investigation pilot 
262.20  project.  The pilot project may be expanded provided the 
262.21  expansion is budget neutral to the state. 
262.22     Sec. 12.  Minnesota Statutes 1996, section 256.983, 
262.23  subdivision 4, is amended to read: 
262.24     Subd. 4.  [FUNDING.] (a) Every involved county agency shall 
262.25  either have in place or obtain an approved contract which meets 
262.26  all federal requirements necessary to obtain enhanced federal 
262.27  funding for its welfare fraud control and fraud prevention 
262.28  investigation programs.  County agency reimbursement shall be 
262.29  made through the settlement provisions applicable to the aid to 
262.30  families with dependent children and program, food 
262.31  stamp programs program, Minnesota family investment 
262.32  program-statewide, and medical assistance program and other 
262.33  federal and state funded programs. 
262.34     (b) After allowing an opportunity to establish compliance, 
262.35  The commissioner will deny administrative reimbursement maintain 
262.36  program compliance if for any three-month three consecutive 
263.1   month period during any grant year, a county agency fails to 
263.2   comply with fraud prevention investigation program guidelines, 
263.3   or fails to meet the cost-effectiveness standards developed by 
263.4   the commissioner.  This result is contingent on the commissioner 
263.5   providing written notice, including an offer of technical 
263.6   assistance, within 30 days of the end of the third or subsequent 
263.7   month of noncompliance.  The county agency shall be required to 
263.8   submit a corrective action plan to the commissioner within 30 
263.9   days of receipt of a notice of noncompliance.  Failure to submit 
263.10  a corrective action plan or, continued deviation from standards 
263.11  of more than ten percent after submission of a corrective action 
263.12  plan, will result in denial of funding for each subsequent month 
263.13  during the grant year, or billing the county agency for fraud 
263.14  prevention investigation (FPI) service provided by the 
263.15  commissioner or reallocation of program grant funds, or 
263.16  investigative resources, or both, to other counties.  The denial 
263.17  of funding shall apply to the general settlement received by the 
263.18  county agency on a quarterly basis and shall not reduce the 
263.19  grant amount applicable to the FPI project.  
263.20     Sec. 13.  Minnesota Statutes 1996, section 256.984, 
263.21  subdivision 1, is amended to read: 
263.22     Subdivision 1.  [DECLARATION.] Every application for public 
263.23  assistance under this chapter or chapters 256B, 256D, 256K, or 
263.24  MFIP-S or food stamps under chapter 393 shall be in writing or 
263.25  reduced to writing as prescribed by the state agency and shall 
263.26  contain the following declaration which shall be signed by the 
263.27  applicant: 
263.28     "I declare under the penalties of perjury that this 
263.29     application has been examined by me and to the best of my 
263.30     knowledge is a true and correct statement of every material 
263.31     point.  I understand that a person convicted of perjury may 
263.32     be sentenced to imprisonment of not more than five years or 
263.33     to payment of a fine of not more than $10,000, or both." 
263.34     Sec. 14.  Minnesota Statutes 1996, section 256.986, is 
263.35  amended to read: 
263.36     256.986 [COUNTY COORDINATION OF FRAUD CONTROL ACTIVITIES.] 
264.1      (a) The county agency shall prepare and submit to the 
264.2   commissioner of human services by January 1 April 30 of each 
264.3   state fiscal year a plan to coordinate county duties related to 
264.4   the prevention, investigation, and prosecution of fraud in 
264.5   public assistance programs.  Plans may be submitted on a 
264.6   voluntary basis prior to January 1, 1996.  Each county must 
264.7   submit its first annual plan prior to January 1, 1997 April 30, 
264.8   1998. 
264.9      (b) Within the limits of appropriations specifically made 
264.10  available for this purpose, the commissioner may make grants to 
264.11  counties submitting plans under paragraph (a) to implement 
264.12  coordination activities. 
264.13     Sec. 15.  Minnesota Statutes 1996, section 256.9861, 
264.14  subdivision 1, is amended to read: 
264.15     Subdivision 1.  [PROGRAM ESTABLISHED.] Within the limits of 
264.16  available state and federal appropriations, and to the extent 
264.17  required or authorized by applicable federal regulations, the 
264.18  commissioner of human services shall make funding available to 
264.19  county agencies for the establishment of program integrity 
264.20  reinvestment initiatives.  The project shall initially be 
264.21  limited to those county agencies participating in federally 
264.22  funded optional fraud control programs as of January 1, 
264.23  1995 fraud control efforts and require the maintenance of county 
264.24  efforts and financial contribution that were in place during 
264.25  fiscal year 1996.  
264.26     Sec. 16.  Minnesota Statutes 1996, section 256.9861, 
264.27  subdivision 2, is amended to read: 
264.28     Subd. 2.  [COUNTY PROPOSALS.] Each included county shall 
264.29  develop and submit annual funding, staffing, and operating grant 
264.30  proposals to the commissioner no later than April 30 of each 
264.31  year for the purpose of allocating federal and state funding and 
264.32  appropriations.  For the first operating year only, the proposal 
264.33  shall be submitted no later than October 30.  Each proposal 
264.34  shall provide information on: 
264.35     (1) the staffing and funding of the fraud investigation and 
264.36  prosecution operations; 
265.1      (2) job descriptions for agency fraud control staff; 
265.2      (3) contracts covering outside investigative agencies; 
265.3      (4) operational methods to integrate the use of fraud 
265.4   prevention investigation techniques; and 
265.5      (5) implementation and utilization of administrative 
265.6   disqualification hearings and diversions into by the existing 
265.7   county fraud control and prosecution procedures.  
265.8      Sec. 17.  Minnesota Statutes 1996, section 256.9861, 
265.9   subdivision 4, is amended to read: 
265.10     Subd. 4.  [STANDARDS.] The commissioner shall, after 
265.11  consultation with the involved counties, establish standards 
265.12  governing the performance levels of involved county 
265.13  investigative units based on grant agreements negotiated with 
265.14  the involved county agencies.  The standards shall take into 
265.15  consideration and may include investigative caseloads, grant 
265.16  savings levels, the comparison of fraud prevention and 
265.17  prosecution directed investigations, utilization levels of 
265.18  administrative disqualification hearings, the timely reporting 
265.19  and implementation of disqualifications, and the timeliness 
265.20  of the submission of statistical reports received from 
265.21  prosecutors.  
265.22     Sec. 18.  Minnesota Statutes 1996, section 256.9861, 
265.23  subdivision 5, is amended to read: 
265.24     Subd. 5.  [FUNDING.] (a) Grant funds are intended to help 
265.25  offset the reduction in federal financial participation to 50 
265.26  percent and may be apportioned to the participating counties 
265.27  whenever feasible, and within the commissioner's discretion, to 
265.28  achieve this goal.  State funding shall be made available 
265.29  contingent on counties submitting a plan that is approved by the 
265.30  department of human services.  Failure or delay in obtaining 
265.31  that approval shall not, however, eliminate the obligation to 
265.32  maintain fraud control efforts at the January 1, 1995 June 30, 
265.33  1996, level.  Additional counties may be added to the project to 
265.34  the extent that funds are subsequently made available.  Every 
265.35  involved county must meet all federal requirements necessary to 
265.36  obtain federal funding for its welfare fraud control and 
266.1   prevention programs.  County agency reimbursement shall be made 
266.2   through the settlement provisions applicable to the AFDC and, 
266.3   MFIP-S, food stamp and medical assistance programs.  
266.4      (b) Should a county agency fail to comply with the 
266.5   standards set, or fail to meet cost-effectiveness standards 
266.6   developed by the commissioner for three months during any grant 
266.7   year any three-month period, the commissioner shall deny 
266.8   reimbursement or administrative costs, after allowing an 
266.9   opportunity to establish compliance.  
266.10     (c) Any denial of reimbursement under paragraph (b) is 
266.11  contingent on the commissioner providing written notice, 
266.12  including an offer of technical assistance, within 30 days of 
266.13  the end of the third or subsequent months of noncompliance.  The 
266.14  county agency shall be required to submit a corrective action 
266.15  plan to the commissioner within 30 days of receipt of a notice 
266.16  of noncompliance.  Failure to submit a corrective action plan or 
266.17  continued deviation from standards of more than ten percent 
266.18  after submission of corrective action plan, will result in 
266.19  denial of funding for each such month during the grant year, or 
266.20  billing of the county agency for program integrity reinvestment 
266.21  project services provided by the commissioner or reallocation of 
266.22  grant funds to other counties.  The denial of funding shall 
266.23  apply to the general settlement received by the county agency on 
266.24  a quarterly basis and shall not reduce the grant amount 
266.25  applicable to the program integrity reinvestment project. 
266.26     Sec. 19.  [256.9863] [ASSISTANCE TRANSACTION CARD; 
266.27  PRESUMPTION OF RECEIPT OF BENEFITS.] 
266.28     Any person in whose name an assistance transaction card has 
266.29  been issued shall be presumed to have received the benefit of 
266.30  all transactions involving that card.  This presumption applies 
266.31  in all situations unless the card in question has been reported 
266.32  lost or stolen by the cardholder.  This presumption may be 
266.33  overcome by a preponderance of evidence indicating that the card 
266.34  was neither used by nor with the consent of the cardholder.  
266.35  Overcoming this presumption does not create any new or 
266.36  additional payment obligation not otherwise established in law, 
267.1   rule, or regulation. 
267.2      Sec. 20.  [256.9864] [REPORTS BY RECIPIENT.] 
267.3      (a) An assistance unit with a recent work history or with 
267.4   earned income shall report monthly to the county agency on 
267.5   income received and other circumstances affecting eligibility or 
267.6   assistance amounts.  All other assistance units shall report on 
267.7   income and other circumstances affecting eligibility and 
267.8   assistance amounts as specified by the state agency. 
267.9      (b) An assistance unit required to submit a report on the 
267.10  form designated by the commissioner and within ten days of the 
267.11  due date or the date of the significant change, whichever is 
267.12  later, or otherwise report significant changes which would 
267.13  affect eligibility or assistance amounts, is considered to have 
267.14  continued its application for assistance effective the date the 
267.15  required report is received by the county agency, if a complete 
267.16  report is received within a calendar month in which assistance 
267.17  was received, except that no assistance shall be paid for the 
267.18  period beginning with the end of the month in which the report 
267.19  was due and ending with the date the report was received by the 
267.20  county agency. 
267.21     Sec. 21.  [256.9865] [RECOVERY OF OVERPAYMENTS AND ATM 
267.22  ERRORS.] 
267.23     Subdivision 1.  [OBLIGATION TO RECOVER.] If an amount of 
267.24  MFIP-S assistance is paid to a recipient in excess of the 
267.25  payment due, it shall be recoverable by the county agency.  This 
267.26  recovery authority also extends to preexisting claims or newly 
267.27  discovered claims established under the AFDC program in effect 
267.28  on January 1, 1997.  The agency shall give written notice to the 
267.29  recipient of its intention to recover the overpayment.  County 
267.30  agency efforts and financial contributions shall be maintained 
267.31  at the level in place during fiscal year 1996. 
267.32     Subd. 2.  [VOLUNTARY REPAYMENTS.] Overpayments may also be 
267.33  voluntarily repaid, in part or in full, by the individual, in 
267.34  addition to the aid reductions in subdivision 2, to include 
267.35  further voluntary reductions in the grant level agreed to in 
267.36  writing by the individual, until the total amount of the 
268.1   overpayment is repaid. 
268.2      Subd. 3.  [CLOSED CASE RECOVERIES.] The county agency shall 
268.3   make reasonable efforts to recover overpayments to persons no 
268.4   longer on assistance according to standards adopted by rule by 
268.5   the commissioner of human services.  The county agency need not 
268.6   attempt to recover overpayments of less than $35 paid to an 
268.7   individual no longer on assistance unless the individual has 
268.8   been convicted of fraud under section 256.98. 
268.9      Sec. 22.  [256.9866] [COMMUNITY SERVICE AS A COUNTY 
268.10  OBLIGATION.] 
268.11     Community service shall be an acceptable sentencing option 
268.12  but shall not reduce the state or federal share of any amount to 
268.13  be repaid or any subsequent recovery.  Any reduction or offset 
268.14  of any such amount ordered by a court shall be treated as 
268.15  follows: 
268.16     (1) any reduction in an overpayment amount, to include the 
268.17  amount ordered as restitution, shall not reduce the underlying 
268.18  amount established as an overpayment by the state or county 
268.19  agency; 
268.20     (2) total overpayments shall continue as a debt owed and 
268.21  may be recovered by any civil or administrative means otherwise 
268.22  available to the state or county agency; and 
268.23     (3) any amount ordered to be offset against any overpayment 
268.24  shall be deducted from the county share only of any recovery and 
268.25  shall be based on the prevailing state minimum wage.  To the 
268.26  extent that any deduction is in fact made against any state or 
268.27  county share, it shall be reimbursed from the county share of 
268.28  payments to be made under section 256.025. 
268.29     Sec. 23.  Minnesota Statutes 1996, section 256D.09, 
268.30  subdivision 6, is amended to read: 
268.31     Subd. 6.  [RECOVERY OF OVERPAYMENTS.] (a) If an amount of 
268.32  general assistance or family general assistance is paid to a 
268.33  recipient in excess of the payment due, it shall be recoverable 
268.34  by the county agency.  The agency shall give written notice to 
268.35  the recipient of its intention to recover the overpayment. 
268.36     (b) When an overpayment occurs, the county agency shall 
269.1   recover the overpayment from a current recipient by reducing the 
269.2   amount of aid payable to the assistance unit of which the 
269.3   recipient is a member, for one or more monthly assistance 
269.4   payments, until the overpayment is repaid.  All county agencies 
269.5   in the state shall reduce the assistance payment by three 
269.6   percent of the assistance unit's standard of need in nonfraud 
269.7   cases and ten percent where fraud has occurred, or the amount of 
269.8   the monthly payment, whichever is less, for all overpayments. 
269.9   whether or not the overpayment is due solely to agency error.  
269.10  The amount of this reduction is ten percent, if the overpayment 
269.11  is due solely to having wrongfully obtained assistance, whether 
269.12  based on: 
269.13     (1) a court order; 
269.14     (2) the finding of an administrative fraud disqualification 
269.15  hearing or the waiver of such a hearing; or 
269.16     (3) a confession or judgment containing an admission of an 
269.17  intentional program violation. 
269.18     (c) In cases when there is both an overpayment and 
269.19  underpayment, the county agency shall offset one against the 
269.20  other in correcting the payment. 
269.21     (d) Overpayments may also be voluntarily repaid, in part or 
269.22  in full, by the individual, in addition to the aid reductions 
269.23  provided in this subdivision, to include further voluntary 
269.24  reductions in the grant level agreed to in writing by the 
269.25  individual, until the total amount of the overpayment is repaid. 
269.26     (e) The county agency shall make reasonable efforts to 
269.27  recover overpayments to persons no longer on assistance under 
269.28  standards adopted in rule by the commissioner of human 
269.29  services.  The county agency need not attempt to recover 
269.30  overpayments of less than $35 paid to an individual no longer on 
269.31  assistance if the individual does not receive assistance again 
269.32  within three years, unless the individual has been convicted of 
269.33  violating section 256.98. 
269.34     Sec. 24.  Minnesota Statutes 1996, section 270A.03, 
269.35  subdivision 5, is amended to read: 
269.36     Subd. 5.  [DEBT.] "Debt" means a legal obligation of a 
270.1   natural person to pay a fixed and certain amount of money, which 
270.2   equals or exceeds $25 and which is due and payable to a claimant 
270.3   agency.  The term includes criminal fines imposed under section 
270.4   609.10 or 609.125 and restitution.  A debt may arise under a 
270.5   contractual or statutory obligation, a court order, or other 
270.6   legal obligation, but need not have been reduced to judgment.  
270.7      A debt does not include includes any legal obligation of a 
270.8   current recipient of assistance which is based on overpayment of 
270.9   an assistance grant where that payment is based on a client 
270.10  waiver or an administrative or judicial finding of an 
270.11  intentional program violation, or where the debt is owed to a 
270.12  program wherein the debtor is not a client at the time 
270.13  notification is provided to initiate recovery under this chapter.
270.14     A debt does not include any legal obligation to pay a 
270.15  claimant agency for medical care, including hospitalization if 
270.16  the income of the debtor at the time when the medical care was 
270.17  rendered does not exceed the following amount: 
270.18     (1) for an unmarried debtor, an income of $6,400 or less; 
270.19     (2) for a debtor with one dependent, an income of $8,200 or 
270.20  less; 
270.21     (3) for a debtor with two dependents, an income of $9,700 
270.22  or less; 
270.23     (4) for a debtor with three dependents, an income of 
270.24  $11,000 or less; 
270.25     (5) for a debtor with four dependents, an income of $11,600 
270.26  or less; and 
270.27     (6) for a debtor with five or more dependents, an income of 
270.28  $12,100 or less.  
270.29     The income amounts in this subdivision shall be adjusted 
270.30  for inflation for debts incurred in calendar years 1991 and 
270.31  thereafter.  The dollar amount of each income level that applied 
270.32  to debts incurred in the prior year shall be increased in the 
270.33  same manner as provided in section 290.06, subdivision 2d, for 
270.34  the expansion of the tax rate brackets. 
270.35     Sec. 25.  Minnesota Statutes 1996, section 375.21, 
270.36  subdivision 1, is amended to read: 
271.1      Subdivision 1.  [PROCEDURE, CONDITIONS.] When required by 
271.2   the dollar limitations of section 471.345, a contract for work 
271.3   or labor, or to purchase furniture, fixtures, or other property, 
271.4   or to construct or repair roads, bridges, or buildings shall be 
271.5   made by a county board only after advertising for bids or 
271.6   proposals in a qualified legal newspaper of the county.  For the 
271.7   purchase of property or for work and labor, two weeks published 
271.8   notice that proposals will be received, stating the time and 
271.9   place, shall be given.  For the construction or repair of roads, 
271.10  bridges, or buildings, three weeks published notice shall be 
271.11  given.  The notice shall state the time and place of awarding 
271.12  the contract and contain a brief description of the work.  Every 
271.13  contract shall be awarded to the lowest responsible bidder and 
271.14  duly executed in writing.  The county may, by board resolution, 
271.15  determine a wage rate that must be met or exceeded for a bidder 
271.16  to be a responsible bidder.  The wage rate may be calculated so 
271.17  that it is sufficient, on a full-time basis, to allow the 
271.18  bidder's employees to live without public assistance.  The 
271.19  person to whom a contract is awarded for work or labor or for 
271.20  the construction or repair of roads, bridges, or buildings shall 
271.21  give a sufficient bond to the board for its faithful 
271.22  performance.  If no satisfactory bid is received, the board may 
271.23  readvertise.  
271.24     An advertised standard requirement price contract for 
271.25  supplies or services established by competitive bids may contain 
271.26  an escalation clause and may provide for a negotiated price 
271.27  increase or decrease.  The escalation or negotiated change shall 
271.28  be based upon a demonstrable industrywide or regional increase 
271.29  or decrease in the vendor's costs.  
271.30     Every contract made without compliance with this section is 
271.31  void.  
271.32     In case of an emergency arising from the destruction or 
271.33  impassability of roads or bridges by floods, rain or snow, or 
271.34  other casualty, or from the breaking or damaging of any property 
271.35  in the county, if the public health, safety, or welfare would 
271.36  suffer by delay, contracts for purchase or repairs may be made 
272.1   without advertising for bids, but in that case the action of the 
272.2   board shall be recorded in its official proceedings. 
272.3      Sec. 26.  Minnesota Statutes 1996, section 388.23, 
272.4   subdivision 1, is amended to read: 
272.5      Subdivision 1.  [AUTHORITY.] The county attorney, or any 
272.6   deputy or assistant county attorney whom the county attorney 
272.7   authorizes in writing, has the authority to subpoena and require 
272.8   the production of any records of telephone companies, cellular 
272.9   phone companies, paging companies, electric companies, gas 
272.10  companies, water utilities, chemical suppliers, hotels and 
272.11  motels, pawn shops, airlines, buses, taxis, and other entities 
272.12  engaged in the business of transporting people, and freight 
272.13  companies, warehousing companies, self-service storage 
272.14  facilities, package delivery companies, and other entities 
272.15  engaged in the businesses of transport, storage, or delivery, 
272.16  and records of the existence of safe deposit box account numbers 
272.17  and customer savings and checking account numbers maintained by 
272.18  financial institutions and safe deposit companies, insurance 
272.19  records relating to the monetary payment or settlement of 
272.20  claims, and wage and employment records of an applicant or 
272.21  recipient of public assistance who is the subject of a welfare 
272.22  fraud investigation relating to eligibility information for 
272.23  public assistance programs.  Subpoenas may only be issued for 
272.24  records that are relevant to an ongoing legitimate law 
272.25  enforcement investigation.  Administrative subpoenas may only be 
272.26  issued in welfare fraud cases if there is probable cause to 
272.27  believe a crime has been committed.  This provision applies only 
272.28  to the records of business entities and does not extend to 
272.29  private individuals or their dwellings.  Subpoenas may only be 
272.30  served by peace officers as defined by section 626.84, 
272.31  subdivision 1, paragraph (c). 
272.32     Sec. 27.  Minnesota Statutes 1996, section 393.07, 
272.33  subdivision 10, is amended to read: 
272.34     Subd. 10.  [FEDERAL FOOD STAMP PROGRAM AND THE MATERNAL AND 
272.35  CHILD NUTRITION ACT.] (a) The local social services agency shall 
272.36  establish and administer the food stamp program pursuant 
273.1   according to rules of the commissioner of human services, the 
273.2   supervision of the commissioner as specified in section 256.01, 
273.3   and all federal laws and regulations.  The commissioner of human 
273.4   services shall monitor food stamp program delivery on an ongoing 
273.5   basis to ensure that each county complies with federal laws and 
273.6   regulations.  Program requirements to be monitored include, but 
273.7   are not limited to, number of applications, number of approvals, 
273.8   number of cases pending, length of time required to process each 
273.9   application and deliver benefits, number of applicants eligible 
273.10  for expedited issuance, length of time required to process and 
273.11  deliver expedited issuance, number of terminations and reasons 
273.12  for terminations, client profiles by age, household composition 
273.13  and income level and sources, and the use of phone certification 
273.14  and home visits.  The commissioner shall determine the 
273.15  county-by-county and statewide participation rate.  
273.16     (b) On July 1 of each year, the commissioner of human 
273.17  services shall determine a statewide and county-by-county food 
273.18  stamp program participation rate.  The commissioner may 
273.19  designate a different agency to administer the food stamp 
273.20  program in a county if the agency administering the program 
273.21  fails to increase the food stamp program participation rate 
273.22  among families or eligible individuals, or comply with all 
273.23  federal laws and regulations governing the food stamp program.  
273.24  The commissioner shall review agency performance annually to 
273.25  determine compliance with this paragraph. 
273.26     (c) A person who commits any of the following acts has 
273.27  violated section 256.98 or 609.821, or both, and is subject to 
273.28  both the criminal and civil penalties provided under those 
273.29  sections: 
273.30     (1) obtains or attempts to obtain, or aids or abets any 
273.31  person to obtain by means of a willfully false willful statement 
273.32  or representation misrepresentation, or intentional concealment 
273.33  of a material fact, food stamps or vouchers issued according to 
273.34  sections 145.891 to 145.897 to which the person is not entitled 
273.35  or in an amount greater than that to which that person is 
273.36  entitled or which specify nutritional supplements to which that 
274.1   person is not entitled; or 
274.2      (2) presents or causes to be presented, coupons or vouchers 
274.3   issued according to sections 145.891 to 145.897 for payment or 
274.4   redemption knowing them to have been received, transferred or 
274.5   used in a manner contrary to existing state or federal law; or 
274.6      (3) willfully uses, possesses, or transfers food stamp 
274.7   coupons or, authorization to purchase cards or vouchers issued 
274.8   according to sections 145.891 to 145.897 in any manner contrary 
274.9   to existing state or federal law, rules, or regulations; or 
274.10     (4) buys or sells food stamp coupons, authorization to 
274.11  purchase cards or, other assistance transaction devices, 
274.12  vouchers issued according to sections 145.891 to 145.897, or any 
274.13  food obtained through the redemption of vouchers issued 
274.14  according to sections 145.891 to 145.897 for cash or 
274.15  consideration other than eligible food. 
274.16     (d) A peace officer or welfare fraud investigator may 
274.17  confiscate food stamps, authorization to purchase cards, or 
274.18  other assistance transaction devices found in the possession of 
274.19  any person who is neither a recipient of the food stamp program 
274.20  nor otherwise authorized to possess and use such materials.  
274.21  Confiscated property shall be disposed of as the commissioner 
274.22  may direct and consistent with state and federal food stamp 
274.23  law.  The confiscated property must be retained for a period of 
274.24  not less than 30 days to allow any affected person to appeal the 
274.25  confiscation under section 256.045. 
274.26     (e) Food stamp overpayment claims which are due in whole or 
274.27  in part to client error shall be established by the county 
274.28  agency for a period of six years from the date of any resultant 
274.29  overpayment.  
274.30     (f) With regard to the federal tax revenue offset program 
274.31  only, recovery incentives authorized by the federal food and 
274.32  consumer service shall be retained at the rate of 50 percent by 
274.33  the state agency and 50 percent by the certifying county agency. 
274.34     (g) A peace officer, welfare fraud investigator, federal 
274.35  law enforcement official, or the commissioner of health may 
274.36  confiscate vouchers found in the possession of any person who is 
275.1   neither issued vouchers under sections 145.891 to 145.897, nor 
275.2   otherwise authorized to possess and use such vouchers.  
275.3   Confiscated property shall be disposed of as the commissioner of 
275.4   health may direct and consistent with state and federal law.  
275.5   The confiscated property must be retained for a period of not 
275.6   less than 30 days. 
275.7      Sec. 28.  [FUNDING AVAILABILITY.] 
275.8      Unexpended funds appropriated for the provision of program 
275.9   integrity activities for fiscal year 1998 will also be available 
275.10  to the commissioner to fund fraud prevention and control 
275.11  initiatives and do not cancel but are available to the 
275.12  commissioner for these purposes for fiscal year 1999.  
275.13  Unexpended funds may be transferred between the fraud prevention 
275.14  investigation program and fraud control programs to promote the 
275.15  provisions of sections 256.983 and 256.9861. 
275.16     Sec. 29.  [UNDOCUMENTED PERSONS NOTIFICATION.] 
275.17     County agencies in consultation with the department of 
275.18  human services shall provide notification to undocumented 
275.19  persons regarding the release of personal data and develop 
275.20  protocols regarding the release or sharing of data about 
275.21  undocumented persons with the Immigration and Naturalization 
275.22  Service (INS) according to sections 404, 434, and 411A of the 
275.23  Personal Responsibility and Work Opportunity Reconciliation Act 
275.24  of 1996. 
275.25     Sec. 30.  [EFFECTIVE DATE.] 
275.26     Sections 1 to 28 are effective July 1, 1997.