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; establishing a truancy prevention pilot project; 
  1.23            creating a child care assistance reserve account; 
  1.24            establishing asset requirement for MinnesotaCare; 
  1.25            imposing criminal and civil penalties; amending 
  1.26            Minnesota Statutes 1996, sections 13.46, subdivisions 
  1.27            1 and 2; 13.82, subdivision 1; 84.0887, subdivision 2; 
  1.28            84.98, subdivision 3; 136A.125, subdivision 2; 196.27; 
  1.29            237.70, subdivision 4a; 254B.02, subdivision 1; 
  1.30            256.01, subdivision 4a; 256.017, subdivisions 1, 2, 
  1.31            and 4; 256.031, subdivision 5, and by adding a 
  1.32            subdivision; 256.033, subdivisions 1 and 1a; 256.045, 
  1.33            subdivision 3; 256.046; 256.736, subdivision 3a; 
  1.34            256.74, subdivision 1, and by adding a subdivision; 
  1.35            256.81; 256.82, subdivision 2; 256.935, subdivision 1; 
  1.36            256.9354, by adding a subdivision; 256.98, 
  1.37            subdivisions 1 and 4; 256.981; 256.984, subdivision 1; 
  1.38            256.9850; 256.986; 256.9861, subdivisions 1, 2, and 4; 
  1.39            256B.055, subdivisions 3, 5, and by adding a 
  1.40            subdivision; 256B.056, subdivisions 1a, 3, and 4; 
  1.41            256B.057, subdivisions 1, 1b, and 2b; 256B.06, 
  1.42            subdivision 4, and by adding a subdivision; 256B.062; 
  1.43            256D.01, subdivisions 1, 1a, and 1e; 256D.02, 
  1.44            subdivisions 6 and 12a; 256D.03, subdivision 3; 
  1.45            256D.05, subdivisions 1, 5, and 8; 256D.051, 
  1.46            subdivisions 1a, 2a, 3a, and by adding a subdivision; 
  2.1             256D.055; 256D.06, subdivisions 2 and 5; 256D.08, 
  2.2             subdivisions 1 and 2; 256D.09, subdivision 6, and by 
  2.3             adding a subdivision; 256D.435, subdivision 3; 
  2.4             256D.44, subdivision 5; 256E.03, subdivision 2; 
  2.5             256E.06, subdivisions 1 and 3; 256E.07, subdivision 1; 
  2.6             256E.08, subdivision 3; 256F.05, subdivision 5; 
  2.7             256G.01, subdivision 4; 257.3573, subdivision 2; 
  2.8             259.67, subdivision 4; 260.38; 261.063; 268.0111, 
  2.9             subdivisions 5 and 7; 268.0122, subdivision 3; 
  2.10            268.552, subdivision 5; 268.6751, subdivision 1; 
  2.11            268.676, subdivision 1; 268.86, subdivision 2; 
  2.12            268.871, subdivision 1; 268.90, subdivision 2; 
  2.13            268.916; 268.95, subdivision 4; 270A.03, subdivision 
  2.14            5; 375.21, subdivision 1; 388.23, subdivision 1; 
  2.15            393.07, subdivisions 6 and 10; and 477A.0122, 
  2.16            subdivision 2; proposing coding for new law in 
  2.17            Minnesota Statutes, chapters 3; 256; 256B; and 256D; 
  2.18            proposing coding for new law as Minnesota Statutes, 
  2.19            chapters 256J; and 256K; repealing Minnesota Statutes 
  2.20            1996, sections 256.12, subdivisions 9, 10, 14, 15, 19, 
  2.21            20, 21, 22, and 23; 256.72; 256.73, subdivisions 1, 
  2.22            1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 10, and 11; 
  2.23            256.7341; 256.7351; 256.7352; 256.7353; 256.7354; 
  2.24            256.7355; 256.7356; 256.7357; 256.7358; 256.7359; 
  2.25            256.736, subdivision 18; 256.7365, subdivisions 1, 2, 
  2.26            3, 4, 5, 6, 7, and 9; 256.7366; 256.737; 256.738; 
  2.27            256.7381; 256.7382; 256.7383; 256.7384; 256.7385; 
  2.28            256.7386; 256.7387; 256.7388; 256.739; 256.74, 
  2.29            subdivisions 1, 1a, 1b, 2, and 6; 256.745; 256.75; 
  2.30            256.76, subdivision 1; 256.78; 256.80; 256.81; 256.82; 
  2.31            256.84; 256.85; 256.86; 256.863; 256.871; 256.8711; 
  2.32            256.879; 256D.02, subdivision 5; 256D.0511; and 
  2.33            256D.065. 
  2.34  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.35                             ARTICLE 1 
  2.36           MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 
  2.37     Section 1.  [256J.01] [ESTABLISHING MINNESOTA FAMILY 
  2.38  INVESTMENT PROGRAM-STATEWIDE.] 
  2.39     Subdivision 1.  [IMPLEMENTATION OF MINNESOTA FAMILY 
  2.40  INVESTMENT PROGRAM-STATEWIDE (MFIP-S).] This chapter and chapter 
  2.41  256K may be cited as the Minnesota family investment 
  2.42  program-statewide (MFIP-S).  MFIP-S is the statewide 
  2.43  implementation of components of the Minnesota family investment 
  2.44  plan (MFIP) authorized under section 256.031 and Minnesota 
  2.45  family investment plan-Ramsey county (MFIP-R) in section 256.047.
  2.46     Subd. 2.  [IMPLEMENTATION OF TEMPORARY ASSISTANCE FOR NEEDY 
  2.47  FAMILIES (TANF).] The Personal Responsibility and Work 
  2.48  Opportunity Reconciliation Act of 1996, Public Law Number 
  2.49  104-193, eliminates the aid to families with dependent children 
  2.50  (AFDC) program and replaces it with a program of block grants to 
  2.51  states for temporary assistance for needy families (TANF).  TANF 
  2.52  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. 2a.  [LIMIT ON PARTICIPATION.] The MFIP-S program is 
  3.10  not an entitlement and expenditures for this program shall be 
  3.11  within the limits of the forecast. 
  3.12     Subd. 3.  [RELATIONSHIP TO OTHER STATUTES AND 
  3.13  RULES.] MFIP-S replaces eligibility for families with children 
  3.14  and pregnant women under the general assistance program, 
  3.15  governed by sections 256D.01 to 256D.21 and Minnesota Rules, 
  3.16  parts 9500.1200 to 9500.1270. 
  3.17     Subd. 4.  [CHANGES TO WAIVERS.] The commissioner of human 
  3.18  services may negotiate and obtain changes in the federal waivers 
  3.19  and terms and conditions contained in MFIP, MFIP-R, and MFIP-S.  
  3.20  The commissioner may also terminate federal waivers by directing 
  3.21  so in the applicable state plan. 
  3.22     Subd. 5.  [COMPLIANCE SYSTEM.] The commissioner shall 
  3.23  administer a compliance system for the state's temporary 
  3.24  assistance for needy families (TANF) program, the food stamp 
  3.25  program, emergency assistance, general assistance, medical 
  3.26  assistance, general assistance medical care, emergency general 
  3.27  assistance, Minnesota supplemental aid, preadmission screening, 
  3.28  child support program, and alternative care grants under the 
  3.29  powers and authorities named in section 256.01, subdivision 2.  
  3.30  The purpose of the compliance system is to permit the 
  3.31  commissioner to supervise the administration of public 
  3.32  assistance programs and to enforce timely and accurate 
  3.33  distribution of benefits, completeness of service and efficient 
  3.34  and effective program management and operations, to increase 
  3.35  uniformity and consistency in the administration and delivery of 
  3.36  public assistance programs throughout the state, and to reduce 
  4.1   the possibility of sanction and fiscal disallowances for 
  4.2   noncompliance with federal regulations and state statutes. 
  4.3      Sec. 2.  [256J.02] [FEDERAL TEMPORARY ASSISTANCE FOR NEEDY 
  4.4   FAMILIES BLOCK GRANT.] 
  4.5      Subdivision 1.  [COMMISSIONER'S AUTHORITY TO ADMINISTER 
  4.6   BLOCK GRANT FUNDS.] The commissioner of human services is 
  4.7   authorized to receive, administer, and expend funds available 
  4.8   under the TANF block grant authorized under title I of Public 
  4.9   Law Number 104-193, the Personal Responsibility and Work 
  4.10  Opportunity Reconciliation Act of 1996. 
  4.11     Subd. 2.  [USE OF MONEY.] State money appropriated for 
  4.12  purposes of this section and TANF block grant money must be used 
  4.13  for: 
  4.14     (1) financial assistance to or on behalf of any minor child 
  4.15  who is a resident of this state under section 256J.12; 
  4.16     (2) employment and training services under this chapter or 
  4.17  chapter 256K; 
  4.18     (3) emergency financial assistance and services under 
  4.19  section 256J.48; 
  4.20     (4) diversionary assistance under section 256J.47; and 
  4.21     (5) program administration under this chapter. 
  4.22     Subd. 3.  [CARRY FORWARD OF FEDERAL MONEY.] Temporary 
  4.23  assistance for needy families block grant money must be 
  4.24  appropriated for the purposes in this section and is available 
  4.25  until expended. 
  4.26     Subd. 4.  [AUTHORITY TO TRANSFER.] Subject to limitations 
  4.27  of title I of Public Law Number 104-193, the Personal 
  4.28  Responsibility and Work Opportunity Reconciliation Act of 1996, 
  4.29  the legislature may transfer money from the TANF block grant to 
  4.30  the child care fund under section 119B.02, or the Title XX block 
  4.31  grant under section 256E.07. 
  4.32     Subd. 5.  [INDIRECT COST LIABILITY.] Notwithstanding the 
  4.33  provisions of section 16A.127, the statewide and agency indirect 
  4.34  cost liability identified as part of the TANF grant for any 
  4.35  current fiscal year shall be limited to no more than the amount 
  4.36  received in fiscal year 1996. 
  5.1      Sec. 3.  [256J.06] [COMMUNITY INVOLVEMENT.] 
  5.2      The MFIP-S program must be administered in a way that, in 
  5.3   addition to the county agency, other sectors in the community 
  5.4   such as employers from the public and private sectors, 
  5.5   not-for-profit organizations, educational and social service 
  5.6   agencies, program participants, labor unions, and neighborhood 
  5.7   associations are involved. 
  5.8      Sec. 4.  [256J.08] [DEFINITIONS.] 
  5.9      Subdivision 1.  [SCOPE OF DEFINITIONS.] The terms used in 
  5.10  this chapter have the following meanings unless otherwise 
  5.11  provided for by text. 
  5.12     Subd. 2.  [ABSENT PARENT.] "Absent parent" means a minor 
  5.13  child's parent who does not live in the same home as the child. 
  5.14     Subd. 3.  [AGENCY ERROR.] "Agency error" means an error 
  5.15  that results in an overpayment or underpayment to an assistance 
  5.16  unit and is not caused by an applicant's or participant's 
  5.17  failure to provide adequate, correct, or timely information 
  5.18  about income, property, household composition, or other 
  5.19  circumstances. 
  5.20     Subd. 4.  [APPEAL.] "Appeal" means a written statement from 
  5.21  an applicant or participant who requests a hearing under section 
  5.22  256J.31.  
  5.23     Subd. 5.  [APPLICANT.] "Applicant" means a person who has 
  5.24  submitted to a county agency an application and whose 
  5.25  application has not been acted upon, denied, or voluntarily 
  5.26  withdrawn. 
  5.27     Subd. 6.  [APPLICATION.] "Application" means the submission 
  5.28  by or on behalf of a family to a county agency of a completed, 
  5.29  signed, and dated form, prescribed by the commissioner, that 
  5.30  indicates the desire to receive assistance. 
  5.31     Subd. 7.  [ASSISTANCE UNIT OR MFIP-S ASSISTANCE 
  5.32  UNIT.] "Assistance unit" or "MFIP-S assistance unit" means a 
  5.33  group of mandatory or optional people receiving or applying for 
  5.34  MFIP-S benefits together. 
  5.35     Subd. 8.  [AUTHORIZED REPRESENTATIVE.] "Authorized 
  5.36  representative" means a person who is authorized, in writing, by 
  6.1   an applicant or participant to act on the applicant's or 
  6.2   participant's behalf in matters involving the application for 
  6.3   assistance or participation in MFIP-S. 
  6.4      Subd. 9.  [BASIC NEEDS.] "Basic needs" means the minimum 
  6.5   personal requirements of subsistence and is restricted to food, 
  6.6   clothing, shelter, utilities, and other items for which the 
  6.7   loss, or lack of basic needs, is determined by the county agency 
  6.8   to pose a direct, immediate threat to the physical health or 
  6.9   safety of the applicant or participant. 
  6.10     Subd. 10.  [BUDGET MONTH.] "Budget month" means the 
  6.11  calendar month which the county agency uses to determine the 
  6.12  income or circumstances of an assistance unit to calculate the 
  6.13  amount of the assistance payment in the payment month. 
  6.14     Subd. 11.  [CAREGIVER.] "Caregiver" means a minor child's 
  6.15  natural or adoptive parent or parents who live in the home with 
  6.16  the minor child.  For purposes of determining eligibility for 
  6.17  this program, caregiver also means any of the following 
  6.18  individuals, if adults, who live with and provide care and 
  6.19  support to a minor child when the minor child's natural or 
  6.20  adoptive parent or parents do not reside in the same home:  
  6.21  legal custodians, grandfather, grandmother, brother, sister, 
  6.22  stepfather, stepmother, stepbrother, stepsister, uncle, aunt, 
  6.23  first cousin, nephew, niece, person of preceding generation as 
  6.24  denoted by prefixes of "great," "great-great," or 
  6.25  "great-great-great," or a spouse of any person named in the 
  6.26  above groups even after the marriage ends by death or divorce. 
  6.27     Subd. 12.  [CLIENT ERROR.] "Client error" means an error 
  6.28  that results in an overpayment or underpayment and is due to an 
  6.29  applicant's or participant's failure to provide adequate, 
  6.30  correct, or timely information concerning income, property, 
  6.31  household composition, or other circumstances. 
  6.32     Subd. 13.  [COMMISSIONER.] "Commissioner" means the 
  6.33  commissioner of human services or the commissioner's designated 
  6.34  representative. 
  6.35     Subd. 14.  [CORRECTIVE PAYMENT.] "Corrective payment" means 
  6.36  an assistance payment that is made to correct an underpayment. 
  7.1      Subd. 15.  [COUNTABLE INCOME.] "Countable income" means 
  7.2   earned and unearned income that is not excluded under section 
  7.3   256J.21, subdivision 2, or disregarded under section 256J.21, 
  7.4   subdivision 3. 
  7.5      Subd. 16.  [COUNTED EARNINGS.] "Counted earnings" means the 
  7.6   earned income that remains after applicable disregards under 
  7.7   section 256J.21, subdivision 4, have been subtracted from gross 
  7.8   earned income. 
  7.9      Subd. 17.  [COUNTY AGENCY.] "County agency" means the 
  7.10  agency designated by the county board to implement financial 
  7.11  assistance for current programs and for MFIP-S and the agency 
  7.12  responsible for enforcement of child support collection, and a 
  7.13  county or multicounty agency that is authorized under sections 
  7.14  393.01, subdivision 7, and 393.07, subdivision 2, to administer 
  7.15  MFIP-S. 
  7.16     Subd. 18.  [COUNTY BOARD.] "County board" means a board of 
  7.17  commissioners, a local services agency as defined in chapter 
  7.18  393, a board established under Joint Powers Act, section 471.59, 
  7.19  or a human services board under chapter 402. 
  7.20     Subd. 19.  [COUNTY OF FINANCIAL RESPONSIBILITY.] "County of 
  7.21  financial responsibility" means the county that has financial 
  7.22  responsibility for providing public assistance as specified in 
  7.23  chapter 256G. 
  7.24     Subd. 20.  [COUNTY OF RESIDENCE.] "County of residence" 
  7.25  means the county where the caregiver has established a home. 
  7.26     Subd. 21.  [DATE OF APPLICATION.] "Date of application" 
  7.27  means the date on which the county agency receives an 
  7.28  applicant's signed application. 
  7.29     Subd. 22.  [DEEM.] "Deem" means to treat all or part of the 
  7.30  income of an individual who is not in the assistance unit, but 
  7.31  who is financially responsible for members of the assistance 
  7.32  unit, as if it were income available to the assistance unit. 
  7.33     Subd. 23.  [DEPARTMENT.] "Department" means the Minnesota 
  7.34  department of human services. 
  7.35     Subd. 24.  [DISREGARD.] "Disregard" means earned income 
  7.36  that is not counted when determining initial eligibility or 
  8.1   ongoing eligibility and calculating the amount of the assistance 
  8.2   payment for participants. 
  8.3      Subd. 25.  [DOCUMENTATION.] "Documentation" means a written 
  8.4   statement or record that substantiates or validates an assertion 
  8.5   made by a person or an action taken by a person, agency, or 
  8.6   entity. 
  8.7      Subd. 26.  [EARNED INCOME.] "Earned income" means cash or 
  8.8   in-kind income earned through the receipt of wages, salary, 
  8.9   commissions, profit from employment activities, net profit from 
  8.10  self-employment activities, payments made by an employer for 
  8.11  regularly accrued vacation or sick leave, and any other profit 
  8.12  from activity earned through effort or labor. 
  8.13     Subd. 27.  [EARNED INCOME TAX CREDIT.] "Earned income tax 
  8.14  credit" means the payment which can be obtained by a qualified 
  8.15  person from an employer or from the Internal Revenue Service as 
  8.16  provided by section 290.0671 and United States Code, title 26, 
  8.17  subtitle A, chapter 1, subchapter A, part 4, subpart C, section 
  8.18  32. 
  8.19     Subd. 28.  [EMERGENCY.] "Emergency" means a situation or a 
  8.20  set of circumstances that causes or threatens to cause 
  8.21  destitution to a minor child.  
  8.22     Subd. 29.  [EQUITY VALUE.] "Equity value" means the amount 
  8.23  of equity in real or personal property owned by a person and is 
  8.24  determined by subtracting any outstanding encumbrances from the 
  8.25  fair market value. 
  8.26     Subd. 30.  [EXCLUDED TIME.] "Excluded time" has the meaning 
  8.27  given in section 256G.02. 
  8.28     Subd. 31.  [EXPEDITED ISSUANCE OF THE FOOD STAMP 
  8.29  PORTION.] "Expedited issuance of the food stamp portion" means 
  8.30  the issuance of the food stamp portion to eligible assistance 
  8.31  units on the day of application as provided in section 393.07, 
  8.32  subdivision 10a. 
  8.33     Subd. 32.  [FAIR HEARING OR HEARING.] "Fair hearing" or 
  8.34  "hearing" means the evidentiary hearing conducted by the 
  8.35  department appeals referee to resolve disputes as specified in 
  8.36  sections 256.045 and 256J.40. 
  9.1      Subd. 33.  [FAIR MARKET VALUE.] "Fair market value" means 
  9.2   the price that an item of a particular make, model, size, 
  9.3   material, or condition would sell for on the open market in the 
  9.4   particular geographic area. 
  9.5      Subd. 34.  [FAMILY.] "Family" includes: 
  9.6      (1) the following individuals who live together:  a minor 
  9.7   child or a group of minor children related to each other as 
  9.8   siblings, half siblings, stepsiblings, or adoptive siblings, 
  9.9   together with their natural, adoptive parents, stepparents, or 
  9.10  caregiver as defined in subdivision 11; and 
  9.11     (2) a pregnant woman with no other children. 
  9.12     Subd. 35.  [FAMILY WAGE LEVEL.] "Family wage level" means 
  9.13  109 percent of the transitional standard. 
  9.14     Subd. 36.  [FEDERAL INSURANCE CONTRIBUTION ACT OR 
  9.15  FICA.] "Federal Insurance Contribution Act" or "FICA" means the 
  9.16  federal law under United States Code, title 26, subtitle C, 
  9.17  chapter 21, subchapter A, sections 3101 to 3126, that requires 
  9.18  withholding or direct payment from earned income. 
  9.19     Subd. 37.  [FINANCIAL CASE RECORD.] "Financial case record" 
  9.20  means an assistance unit's financial eligibility file. 
  9.21     Subd. 38.  [FULL-TIME STUDENT.] "Full-time student" means a 
  9.22  person who is enrolled in a graded or ungraded primary, 
  9.23  intermediate, secondary, GED preparatory, trade, technical, 
  9.24  vocational, or post-secondary school, and who meets the school's 
  9.25  standard for full-time attendance. 
  9.26     Subd. 39.  [GENERAL EDUCATIONAL DEVELOPMENT OR 
  9.27  GED.] "General educational development" or "GED" means the 
  9.28  general educational development certification issued by the 
  9.29  Minnesota board of education as an equivalent to a secondary 
  9.30  school diploma under Minnesota Rules, part 3500.3100, subpart 4. 
  9.31     Subd. 40.  [GROSS EARNED INCOME.] "Gross earned income" 
  9.32  means earned income from employment before mandatory and 
  9.33  voluntary payroll deductions.  Gross earned income includes 
  9.34  salaries, wages, tips, gratuities, commissions, incentive 
  9.35  payments from work or training programs, payments made by an 
  9.36  employer for regularly accrued vacation or sick leave, and 
 10.1   profits from other activity earned by an individual's effort or 
 10.2   labor.  Gross earned income includes uniform and meal allowances 
 10.3   if federal income tax is deducted from the allowance.  Gross 
 10.4   earned income includes flexible work benefits received from an 
 10.5   employer if the employee has the option of receiving the benefit 
 10.6   or benefits in cash. 
 10.7      Subd. 41.  [GROSS INCOME.] "Gross income" is the sum of 
 10.8   gross earned income and unearned income. 
 10.9      Subd. 42.  [GROSS RECEIPTS.] "Gross receipts" means the 
 10.10  money received by a business before the expenses of the business 
 10.11  are deducted. 
 10.12     Subd. 43.  [HALF-TIME STUDENT.] "Half-time student" means a 
 10.13  person who is enrolled in a graded or ungraded primary, 
 10.14  intermediate, secondary, GED preparatory, trade, technical, 
 10.15  vocational, or post-secondary school, and who meets the school's 
 10.16  standard of half-time attendance. 
 10.17     Subd. 44.  [HOME.] "Home" means the primary place of 
 10.18  residence used by a person as the base for day-to-day living and 
 10.19  does not include locations used as mail drops. 
 10.20     Subd. 45.  [HOMESTEAD.] "Homestead" means the home that is 
 10.21  owned by, and is the usual residence of, the assistance unit 
 10.22  together with the surrounding property which is not separated 
 10.23  from the home by intervening property owned by others.  Public 
 10.24  rights-of-way, such as roads which run through the surrounding 
 10.25  property and separate it from the home, do not affect the 
 10.26  exemption of the property.  Homestead includes an asset that is 
 10.27  not real property that the assistance unit uses as a home, such 
 10.28  as a vehicle. 
 10.29     Subd. 46.  [HOUSEHOLD.] "Household" means a group of 
 10.30  persons who live together. 
 10.31     Subd. 47.  [INCOME.] "Income" means cash or in-kind 
 10.32  benefit, whether earned or unearned, received by or available to 
 10.33  an applicant or participant that is not an asset under section 
 10.34  256J.20. 
 10.35     Subd. 48.  [INITIAL ELIGIBILITY.] "Initial eligibility" 
 10.36  means the determination of eligibility for an MFIP-S applicant. 
 11.1      Subd. 49.  [IN-KIND INCOME.] "In-kind income" means income, 
 11.2   benefits, or payments which are provided in a form other than 
 11.3   money or liquid assets, including the forms of goods, produce, 
 11.4   services, privileges, or payments made on behalf of an applicant 
 11.5   or participant by a third party. 
 11.6      Subd. 50.  [INQUIRY.] "Inquiry" means a communication to a 
 11.7   county agency through mail, telephone, or in person, by which a 
 11.8   person or authorized representative requests information about 
 11.9   public assistance.  The county agency shall also treat as an 
 11.10  inquiry any communication in which a person requesting 
 11.11  assistance offers information about the person's family 
 11.12  circumstances that indicates that eligibility for public 
 11.13  assistance may exist. 
 11.14     Subd. 51.  [LEGALLY AVAILABLE.] "Legally available" means a 
 11.15  person's right under the law to secure, possess, dispose of, or 
 11.16  control income or property. 
 11.17     Subd. 52.  [LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM OR 
 11.18  LIHEAP.] "Low-income home energy assistance program" or "LIHEAP" 
 11.19  means the program authorized under United States Code, title 42, 
 11.20  chapter 94, subchapter II, sections 8621 to 8629, and 
 11.21  administered by the Minnesota department of economic security. 
 11.22     Subd. 53.  [LUMP SUM.] "Lump sum" means nonrecurring income 
 11.23  that is not excluded in section 256J.21. 
 11.24     Subd. 54.  [MEDICAL ASSISTANCE.] "Medical Assistance" means 
 11.25  the program established under chapter 256B and Title XIX of the 
 11.26  Social Security Act. 
 11.27     Subd. 55.  [MFIP-S HOUSEHOLD REPORT FORM.] "MFIP-S 
 11.28  household report form" means a form prescribed by the 
 11.29  commissioner that a participant uses to report information to a 
 11.30  county agency about changes in income and other circumstances. 
 11.31     Subd. 56.  [MIGRANT WORKER.] "Migrant worker" means a 
 11.32  person who travels away from home on a regular basis, usually 
 11.33  with a group of other laborers, to seek employment in an 
 11.34  agriculturally related activity. 
 11.35     Subd. 57.  [MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 
 11.36  OR MFIP-S.] "Minnesota family investment program-statewide" or 
 12.1   "MFIP-S" means the assistance program authorized in this chapter 
 12.2   and chapter 256K. 
 12.3      Subd. 58.  [MINNESOTA SUPPLEMENTAL AID OR MSA.] "Minnesota 
 12.4   supplemental aid" or "MSA" means the program established under 
 12.5   sections 256D.33 to 256D.54. 
 12.6      Subd. 59.  [MINOR CAREGIVER.] "Minor caregiver" means a 
 12.7   person who: 
 12.8      (1) is under the age of 18; 
 12.9      (2) has never been married or otherwise legally 
 12.10  emancipated; and 
 12.11     (3) is either the natural parent of a minor child living in 
 12.12  the same household or is eligible for assistance paid to a 
 12.13  pregnant woman. 
 12.14     Subd. 60.  [MINOR CHILD.] "Minor child" means a child who 
 12.15  is living in the same home of a parent or other caregiver, is 
 12.16  either less than 18 years of age or is under the age of 19 years 
 12.17  and is regularly attending as a full-time student and is 
 12.18  expected to complete a high school or a secondary level course 
 12.19  of vocational or technical training designed to fit students for 
 12.20  gainful employment before reaching age 19. 
 12.21     Subd. 61.  [MONTHLY INCOME TEST.] "Monthly income test" 
 12.22  means the test used to determine ongoing eligibility and the 
 12.23  assistance payment amount according to section 256J.21. 
 12.24     Subd. 62.  [NONRECURRING INCOME.] "Nonrecurring income" 
 12.25  means a form of income which is received: 
 12.26     (1) only one time or is not of a continuous nature; or 
 12.27     (2) in a prospective payment month but is no longer 
 12.28  received in the corresponding retrospective payment month. 
 12.29     Subd. 63.  [OVERPAYMENT.] "Overpayment" means the portion 
 12.30  of an assistance payment issued by the county agency that is 
 12.31  greater than the amount for which the assistance unit is 
 12.32  eligible. 
 12.33     Subd. 64.  [PARENT.] "Parent" means a child's biological or 
 12.34  adoptive parent who is legally obligated to support that child. 
 12.35     Subd. 65.  [PARTICIPANT.] "Participant" means a person who 
 12.36  is currently receiving cash assistance and the food portion 
 13.1   available through MFIP-S as funded by TANF and the food stamp 
 13.2   program.  A person who fails to withdraw or access 
 13.3   electronically any portion of his or her cash assistance payment 
 13.4   by the end of the payment month or who returns any uncashed 
 13.5   assistance check and withdraws from the program is not a 
 13.6   participant.  A person who withdraws a cash assistance payment 
 13.7   by electronic transfer or receives and cashes a cash assistance 
 13.8   check and is subsequently determined to be ineligible for 
 13.9   assistance for that period of time is a participant, regardless 
 13.10  of whether that assistance is repaid.  The term "participant" 
 13.11  includes the caregiver relative and the minor child whose needs 
 13.12  are included in the assistance payment.  A person in an 
 13.13  assistance unit who does not receive a cash assistance payment 
 13.14  because he or she has been suspended from MFIP-S or because his 
 13.15  or her need falls below the $10 minimum payment level is a 
 13.16  participant. 
 13.17     Subd. 66.  [PAYEE.] "Payee" means a person to whom an 
 13.18  assistance payment is made payable. 
 13.19     Subd. 67.  [PAYMENT MONTH.] "Payment month" means the 
 13.20  calendar month for which the assistance payment is paid. 
 13.21     Subd. 68.  [PERSONAL PROPERTY.] "Personal property" means 
 13.22  an item of value that is not real property, including the value 
 13.23  of a contract for deed held by a seller, assets held in trust on 
 13.24  behalf of members of an assistance unit, cash surrender value of 
 13.25  life insurance, value of a prepaid burial, savings account, 
 13.26  value of stocks and bonds, and value of retirement accounts. 
 13.27     Subd. 69.  [PROBABLE FRAUD.] "Probable fraud" means the 
 13.28  level of evidence that, if proven as fact, would establish that 
 13.29  assistance has been wrongfully obtained. 
 13.30     Subd. 70.  [PROFESSIONAL CERTIFICATION.] "Professional 
 13.31  certification" means: 
 13.32     (1) a statement about a person's illness, injury, or 
 13.33  incapacity that is signed by a licensed physician, psychological 
 13.34  practitioner, or licensed psychologist, qualified by 
 13.35  professional training and experience to diagnose and certify the 
 13.36  person's condition; or 
 14.1      (2) a statement about an incapacity involving a spinal 
 14.2   subluxation condition that is signed by a licensed chiropractor 
 14.3   qualified by professional training and experience to diagnose 
 14.4   and certify the condition. 
 14.5      Subd. 71.  [PROSPECTIVE BUDGETING.] "Prospective budgeting" 
 14.6   means a method of determining the amount of the assistance 
 14.7   payment in which the budget month and payment month are the same.
 14.8      Subd. 72.  [PROTECTIVE PAYEE.] "Protective payee" means a 
 14.9   person other than the caregiver of an assistance unit who 
 14.10  receives the monthly assistance payment on behalf of an 
 14.11  assistance unit and is responsible to provide for the basic 
 14.12  needs of the assistance unit to the extent of that payment. 
 14.13     Subd. 73.  [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 
 14.14  means a person: 
 14.15     (1) who was lawfully admitted for permanent residence 
 14.16  pursuant to United States Code, title 8; 
 14.17     (2) who was admitted to the United States as a refugee 
 14.18  pursuant to United States Code, title 8; section 1157; 
 14.19     (3) whose deportation is being withheld pursuant to United 
 14.20  States Code, title 8, section 1253(h); 
 14.21     (4) who was paroled for a period of at least one year 
 14.22  pursuant to United States Code, title 8, section 1182(d)(5); 
 14.23     (5) who was granted conditional entry pursuant to United 
 14.24  State Code, title 8, section 1153(a)(7); 
 14.25     (6) who was granted asylum pursuant to United States Code, 
 14.26  title 8, section 1158; or 
 14.27     (7) determined to be a battered noncitizen by the United 
 14.28  States Attorney General according to the Illegal Immigration 
 14.29  Reform and Immigrant Responsibility Act of 1996, Title V of the 
 14.30  Omnibus Consolidated Appropriations Act, Public Law Number 
 14.31  104-200. 
 14.32     Subd. 74.  [REAL PROPERTY.] "Real property" means land and 
 14.33  all buildings, structures, and improvements, or other fixtures 
 14.34  on the land, belonging or appertaining to the land, and all 
 14.35  mines, minerals, fossils, and trees on or under the land. 
 14.36     Subd. 75.  [REASONABLE COMPENSATION.] "Reasonable 
 15.1   compensation" means the value received in exchange for property 
 15.2   transferred to another owner that is consistent with fair market 
 15.3   value and equals or exceeds the seller's equity in the property, 
 15.4   reduced by costs incurred in the sale. 
 15.5      Subd. 76.  [RECERTIFICATION.] "Recertification" means the 
 15.6   periodic review of eligibility factors to determine an 
 15.7   assistance unit's continued eligibility. 
 15.8      Subd. 77.  [RECOUPMENT.] "Recoupment" means the action of 
 15.9   the county agency to reduce a family's monthly assistance 
 15.10  payment to recover overpayments caused by client or agency error 
 15.11  and overpayments received while an appeal is pending. 
 15.12     Subd. 78.  [RECOVERY.] "Recovery" means actions taken by a 
 15.13  county agency to reclaim the value of overpayments through 
 15.14  voluntary repayment, recoupment from the assistance payment, 
 15.15  court action, revenue recapture, or federal tax refund offset 
 15.16  program (FRTOP). 
 15.17     Subd. 79.  [RECURRING INCOME.] "Recurring income" means a 
 15.18  form of income which is: 
 15.19     (1) received periodically, and may be received irregularly 
 15.20  when receipt can be anticipated even though the date of receipt 
 15.21  cannot be predicted; and 
 15.22     (2) from the same source or of the same type that is 
 15.23  received and budgeted in a prospective month and is received in 
 15.24  one or both of the first two retrospective months. 
 15.25     Subd. 80.  [REEMPLOYMENT INSURANCE.] "Reemployment 
 15.26  insurance" means the insurance benefit paid to an unemployed 
 15.27  worker under sections 268.03 to 268.23. 
 15.28     Subd. 81.  [RETROSPECTIVE BUDGETING.] "Retrospective 
 15.29  budgeting" means a method of determining the amount of the 
 15.30  assistance payment in which the payment month is the second 
 15.31  month after the budget month. 
 15.32     Subd. 82.  [SANCTION.] "Sanction" means the reduction of a 
 15.33  family's assistance payment by a specified percentage of the 
 15.34  applicable transitional standard because:  a nonexempt 
 15.35  participant fails to comply with the requirements of sections 
 15.36  256J.52 to 256J.55; a parental caregiver fails without good 
 16.1   cause to cooperate with the child support enforcement 
 16.2   requirements; or a participant fails to comply with the 
 16.3   insurance, tort liability, or other requirements of this chapter.
 16.4      Subd. 83.  [SIGNIFICANT CHANGE.] "Significant change" means 
 16.5   a decline in gross income of 35 percent or more from the income 
 16.6   used to determine the grant for the current month. 
 16.7      Subd. 84.  [SUPPLEMENTAL SECURITY INCOME OR 
 16.8   SSI.] "Supplemental Security Income" or "SSI" means the program 
 16.9   authorized under title XVI of the Social Security Act. 
 16.10     Subd. 85.  [TRANSITIONAL STANDARD.] "Transitional standard" 
 16.11  means the basic standard for a family with no other income or a 
 16.12  nonworking family and is a combination of the cash assistance 
 16.13  needs and food assistance needs for a family of that size. 
 16.14     Subd. 86.  [UNEARNED INCOME.] "Unearned income" means 
 16.15  income received by a person that does not meet the definition of 
 16.16  earned income.  Unearned income includes income from a contract 
 16.17  for deed, interest, dividends, reemployment insurance, 
 16.18  disability insurance payments, veterans benefits, pension 
 16.19  payments, return on capital investment, insurance payments or 
 16.20  settlements, severance payments, and payments for illness or 
 16.21  disability whether the premium payments are made in whole or in 
 16.22  part by an employer or participant. 
 16.23     Subd. 87.  [VENDOR.] "Vendor" means a provider of goods or 
 16.24  services. 
 16.25     Subd. 88.  [VENDOR PAYMENT.] "Vendor payment" means a 
 16.26  payment authorized by a county agency to a vendor. 
 16.27     Subd. 89.  [VERIFICATION.] "Verification" means the process 
 16.28  a county agency uses to establish the accuracy or completeness 
 16.29  of information from an applicant, participant, third party, or 
 16.30  other source as that information relates to program eligibility 
 16.31  or an assistance payment. 
 16.32     Sec. 5.  [256J.09] [APPLYING FOR ASSISTANCE.] 
 16.33     Subdivision 1.  [WHERE TO APPLY.] A person must apply for 
 16.34  assistance at the county agency in the county where that person 
 16.35  lives. 
 16.36     Subd. 2.  [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 
 17.1   INFORMATION.] A county agency must inform a person who inquires 
 17.2   about assistance about eligibility requirements for assistance 
 17.3   and how to apply for assistance, including diversionary 
 17.4   assistance and emergency assistance.  A county agency must offer 
 17.5   the person brochures developed or approved by the commissioner 
 17.6   that describe how to apply for assistance. 
 17.7      Subd. 3.  [SUBMITTING THE APPLICATION FORM.] A county 
 17.8   agency must offer, in person or by mail, the application forms 
 17.9   prescribed by the commissioner as soon as a person makes a 
 17.10  written or oral inquiry.  At that time, the county agency must 
 17.11  inform the person that assistance begins with the date the 
 17.12  signed application is received by the county agency or the date 
 17.13  all eligibility criteria are met, whichever is later.  The 
 17.14  county agency must inform the applicant that any delay in 
 17.15  submitting the application will reduce the amount of assistance 
 17.16  paid for the month of application.  A county agency must inform 
 17.17  a person that the person may submit the application before an 
 17.18  interview appointment.  To apply for assistance, a person must 
 17.19  submit a signed application to the county agency.  Upon receipt 
 17.20  of a signed application, the county agency must stamp the date 
 17.21  of receipt on the face of the application.  The county agency 
 17.22  must process the application within the time period required 
 17.23  under subdivision 5.  An applicant may withdraw the application 
 17.24  at any time by giving written or oral notice to the county 
 17.25  agency.  The county agency must issue a written notice 
 17.26  confirming the withdrawal.  The notice must inform the applicant 
 17.27  of the county agency's understanding that the applicant has 
 17.28  withdrawn the application and no longer wants to pursue it.  
 17.29  When, within ten days of the date of the agency's notice, an 
 17.30  applicant informs a county agency, in writing, that the 
 17.31  applicant does not wish to withdraw the application, the county 
 17.32  agency must reinstate the application and finish processing the 
 17.33  application. 
 17.34     Subd. 4.  [VERIFICATION OF INFORMATION ON APPLICATION.] A 
 17.35  county agency must verify information provided by an applicant 
 17.36  as required in section 256J.32. 
 18.1      Subd. 5.  [PROCESSING APPLICATIONS.] Upon receiving an 
 18.2   application, a county agency must determine the applicant's 
 18.3   eligibility, approve or deny the application, inform the 
 18.4   applicant of its decision according to the notice provisions in 
 18.5   section 256J.31, and, if eligible issue, the assistance payment 
 18.6   to the applicant.  When a county agency is unable to process an 
 18.7   application within 30 days, the county agency must inform the 
 18.8   applicant of the reason for the delay in writing.  When an 
 18.9   applicant establishes the inability to provide required 
 18.10  verifications within the 30-day processing period, the county 
 18.11  agency may not use the expiration of that period as the basis 
 18.12  for denial. 
 18.13     Subd. 6.  [INVALID REASON FOR DELAY.] A county agency must 
 18.14  not delay a decision on eligibility or delay issuing the 
 18.15  assistance payment except to establish state residence by: 
 18.16     (1) treating the 30-day processing period as a waiting 
 18.17  period; 
 18.18     (2) delaying approval or issuance of the assistance payment 
 18.19  pending the decision of the county board; or 
 18.20     (3) awaiting the result of a referral to a county agency in 
 18.21  another county when the county receiving the application does 
 18.22  not believe it is the county of financial responsibility. 
 18.23     Subd. 7.  [CHANGES IN RESIDENCE DURING APPLICATION.] The 
 18.24  requirements in subdivisions 5 and 6 apply without regard to the 
 18.25  length of time that an applicant remains, or intends to remain, 
 18.26  a resident of the county in which the application is made.  When 
 18.27  an applicant leaves the county where application was made but 
 18.28  remains in the state, section 256J.75 applies and the county 
 18.29  agency may request additional information from the applicant 
 18.30  about changes in circumstances related to the move. 
 18.31     Subd. 8.  [ADDITIONAL APPLICATIONS.] Until a county agency 
 18.32  issues notice of approval or denial, additional applications 
 18.33  submitted by an applicant are void.  However, an application for 
 18.34  monthly assistance and an application for emergency assistance 
 18.35  or emergency general assistance may exist concurrently.  More 
 18.36  than one application for monthly assistance, emergency 
 19.1   assistance, or emergency general assistance may exist 
 19.2   concurrently when the county agency decisions on one or more 
 19.3   earlier applications have been appealed to the commissioner, and 
 19.4   the applicant asserts that a change in circumstances has 
 19.5   occurred that would allow eligibility.  A county agency must 
 19.6   require additional application forms or supplemental forms as 
 19.7   prescribed by the commissioner when a payee's name changes, or 
 19.8   when a caregiver requests the addition of another person to the 
 19.9   assistance unit.  
 19.10     Subd. 9.  [ADDENDUM TO AN EXISTING APPLICATION.] An 
 19.11  addendum to an existing application must be used to add persons 
 19.12  to an assistance unit regardless of whether the persons being 
 19.13  added are required to be in the assistance unit.  When a person 
 19.14  is added by addendum to an assistance unit, eligibility for that 
 19.15  person begins on the first of the month the addendum was filed 
 19.16  except as provided in section 256J.74, subdivision 2, clause (1).
 19.17     Subd. 10.  [APPLICANTS WHO DO NOT MEET ELIGIBILITY 
 19.18  REQUIREMENTS FOR MFIP-S.] When an applicant is not eligible for 
 19.19  MFIP-S because the applicant does not meet eligibility 
 19.20  requirements, the county agency must determine whether the 
 19.21  applicant is eligible for food stamps, medical assistance, 
 19.22  diversionary assistance, or has a need for emergency assistance 
 19.23  when the applicant meets the eligibility requirements for those 
 19.24  programs. 
 19.25     Sec. 6.  [256J.10] [MFIP-S ELIGIBILITY REQUIREMENTS.] 
 19.26     To be eligible for MFIP-S, applicants must meet the general 
 19.27  eligibility requirements in sections 256J.11 to 256J.15, the 
 19.28  property limitations in section 256J.20, and the income 
 19.29  limitations in section 256J.21. 
 19.30     Sec. 7.  [256J.11] [CITIZENSHIP.] 
 19.31     Subdivision 1.  [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To 
 19.32  be eligible for AFDC or MFIP-S, whichever is in effect, a member 
 19.33  of the assistance unit must be a citizen of the United States, a 
 19.34  qualified noncitizen as defined in section 256J.08, or a 
 19.35  noncitizen who is otherwise residing lawfully in the United 
 19.36  States. 
 20.1      (b) A qualified noncitizen who entered the United States on 
 20.2   or after August 22, 1996, is eligible for MFIP-S.  However, TANF 
 20.3   dollars cannot be used to fund the MFIP-S benefits for an 
 20.4   individual under this paragraph for a period of five years after 
 20.5   the date of entry unless the qualified noncitizen meets one of 
 20.6   the following criteria: 
 20.7      (1) was admitted to the United States as a refugee under 
 20.8   United States Code, title 8, section 1157; 
 20.9      (2) was granted asylum under United States Code, title 8, 
 20.10  section 1158; 
 20.11     (3) was granted withholding of deportation under the United 
 20.12  States Code, title 8, section 1253(h); 
 20.13     (4) is a veteran of the United States Armed Forces with an 
 20.14  honorable discharge for a reason other than noncitizen status, 
 20.15  or is a spouse or unmarried minor dependent child of the same; 
 20.16  or 
 20.17     (5) is an individual on active duty in the United States 
 20.18  Armed Forces, other than for training, or is a spouse or 
 20.19  unmarried minor dependent child of the same. 
 20.20     (c) A person who is not a qualified noncitizen but who is 
 20.21  otherwise residing lawfully in the United States is eligible for 
 20.22  MFIP-S.  However, TANF dollars cannot be used to fund the MFIP-S 
 20.23  benefits for an individual under this paragraph. 
 20.24     (d) For purposes of this subdivision, a nonimmigrant in one 
 20.25  or more of the classes listed in United States Code, title 8, 
 20.26  section 1101(a)(15), or an undocumented immigrant who resides in 
 20.27  the United States without the approval or acquiescence of the 
 20.28  Immigration and Naturalization Service, is not eligible for 
 20.29  MFIP-S. 
 20.30     Subd. 2.  [NONCITIZENS INELIGIBLE FOR MFIP-S FOOD PORTION.] 
 20.31  Noncitizens who do not meet one of the exemptions in section 412 
 20.32  of the Personal Responsibility and Work Opportunity 
 20.33  Reconciliation Act of 1996, and who were residents of Minnesota 
 20.34  on March 1, 1997, are eligible for the food portion of MFIP-S.  
 20.35  However, federal food stamp dollars cannot be used to fund the 
 20.36  food portion of MFIP-S benefits for an individual under this 
 21.1   subdivision. 
 21.2      Subd. 3.  [BENEFITS FUNDED WITH STATE MONEY.] Legal adult 
 21.3   noncitizens whose benefits are funded entirely with state money 
 21.4   must, as a condition of eligibility: 
 21.5      (1) be enrolled in a literacy class, English as a second 
 21.6   language class, or a citizen class; 
 21.7      (2) be applying for admission to a literacy class, English 
 21.8   as a second language class, and is on a waiting list; 
 21.9      (3) be in the process of applying for a waiver from the 
 21.10  Immigration and Naturalization Service of the English language 
 21.11  or civics requirements of the citizenship test; 
 21.12     (4) have submitted an application for citizenship to the 
 21.13  Immigration and Naturalization Service and is waiting for a 
 21.14  testing date or a subsequent swearing in ceremony; or 
 21.15     (5) have been denied citizenship due to a failure to pass 
 21.16  the test after two attempts or because of an inability to 
 21.17  understand the rights and responsibilities of becoming a United 
 21.18  States citizen, as documented by the Immigration and 
 21.19  Naturalization Service or the county. 
 21.20     Sec. 8.  [256J.12] [MINNESOTA RESIDENCE.] 
 21.21     Subdivision 1.  [SIMPLE RESIDENCY.] To be eligible for AFDC 
 21.22  or MFIP-S, whichever is in effect, a family must have 
 21.23  established residency in this state which means the family is 
 21.24  present in the state and intends to remain here. 
 21.25     Subd. 1a.  [30-DAY RESIDENCY REQUIREMENT.] A family is 
 21.26  considered to have established residency in this state only when 
 21.27  a child or caregiver has resided in this state for at least 30 
 21.28  days with the intention of making a permanent home here and not 
 21.29  for any temporary purpose.  Notwithstanding section 256G.03, 
 21.30  time spent in a shelter for battered women shall count toward 
 21.31  satisfying the 30 day residency requirement. 
 21.32     Subd. 2.  [HARDSHIP EXCEPTION.] (a) A county shall waive 
 21.33  the 30-day residency requirement where unusual hardship would 
 21.34  result from denial of assistance. 
 21.35     (b) For purposes of this section, unusual hardship means a 
 21.36  family: 
 22.1      (1) is without alternative shelter; or 
 22.2      (2) is without available resources for food. 
 22.3      (c) For purposes of this subdivision, the following 
 22.4   definitions apply (1) "metropolitan statistical area" is as 
 22.5   defined by the U.S. Census Bureau; (2) "alternative shelter" 
 22.6   includes any shelter that is located within the metropolitan 
 22.7   statistical area containing the county and for which the family 
 22.8   is eligible, provided the family does not have to travel more 
 22.9   than 20 miles to reach the shelter and has access to 
 22.10  transportation to the shelter.  Clause (2) does not apply to 
 22.11  counties in the Minneapolis-St. Paul metropolitan statistical 
 22.12  area. 
 22.13     Subd. 3.  [PAYMENT PLAN FOR NEW RESIDENTS.] Assistance paid 
 22.14  to an eligible family in which all members have resided in this 
 22.15  state for fewer than 12 consecutive calendar months shall be at 
 22.16  the standard and in the form specified in section 256J.43. 
 22.17     Subd. 4.  [SEVERABILITY CLAUSE.] If any subdivision in this 
 22.18  section is enjoined from implementation or found 
 22.19  unconstitutional by any court of competent jurisdiction, the 
 22.20  remaining subdivisions shall remain valid and shall be given 
 22.21  full effect. 
 22.22     Sec. 9.  [256J.13] [MINOR CHILD IN ASSISTANCE UNIT; 
 22.23  PHYSICAL PRESENCE.] 
 22.24     Subdivision 1.  [MINOR CHILD OR PREGNANT WOMAN.] The 
 22.25  assistance unit must include at least one minor child or a 
 22.26  pregnant woman.  If a minor child is a recipient of Supplemental 
 22.27  Security Income or Minnesota supplemental aid, the assistance 
 22.28  unit is eligible for MFIP-S, but the needs of the minor child 
 22.29  receiving Supplemental Security Income or Minnesota supplemental 
 22.30  aid must not be taken into account when the county agency 
 22.31  determines the amount of assistance to be paid to the assistance 
 22.32  unit. 
 22.33     Subd. 2.  [PHYSICAL PRESENCE.] A minor child and a 
 22.34  caregiver must live together except as provided in the following 
 22.35  paragraphs: 
 22.36     (a) The physical presence requirement is met when a minor 
 23.1   child is required to live away from the caregiver's home to meet 
 23.2   the need for educational curricula that cannot be met by, but is 
 23.3   approved by, the local public school district, the home is 
 23.4   maintained for the minor child's return during periodic school 
 23.5   vacations, and the caregiver continues to maintain 
 23.6   responsibility for the support and care of the minor child. 
 23.7      (b) The physical presence requirement is met when a 
 23.8   caregiver or minor child is away from the home due to illness, 
 23.9   hospitalization, vacation, incarceration, or other short-term 
 23.10  absences, when the home is maintained for the return of the 
 23.11  absent family member, the absence is not expected to last more 
 23.12  than 30 days beyond the month of departure, and the conditions 
 23.13  of clause (1), (2), or (3) apply: 
 23.14     (1) when the minor child and caregiver lived together 
 23.15  immediately prior to the absence, the caregiver continues to 
 23.16  maintain responsibility for the support and care of the minor 
 23.17  child, and the absence is reported at the time of application; 
 23.18     (2) when the pregnant mother is hospitalized or out of the 
 23.19  home due to the pregnancy; or 
 23.20     (3) when the newborn child and mother are hospitalized at 
 23.21  the time of birth. 
 23.22     (c) The absence of a caregiver or minor child does not 
 23.23  affect eligibility for the month of departure when the caregiver 
 23.24  or minor child received assistance for that month and lived 
 23.25  together immediately prior to the absence.  Eligibility also 
 23.26  exists in the following month when the absence ends on or before 
 23.27  the tenth day of that month. 
 23.28     Sec. 10.  [256J.14] [ELIGIBILITY FOR PARENTING OR PREGNANT 
 23.29  MINORS.] 
 23.30     Subdivision 1.  [DEFINITIONS.] The definitions in this 
 23.31  subdivision only apply to this section. 
 23.32     (a) "Household of a parent, legal guardian, or other adult 
 23.33  relative" means the place of residence of: 
 23.34     (i) a natural or adoptive parent; 
 23.35     (ii) a legal guardian according to appointment or 
 23.36  acceptance under section 260.242, 525.615, or 525.6165, and 
 24.1   related laws; or 
 24.2      (iii) a relative caregiver. 
 24.3      (b) "Adult-supervised supportive living arrangement" means 
 24.4   a private family setting which assumes responsibility for the 
 24.5   care and control of the minor parent and minor child, or other 
 24.6   living arrangement, not including a public institution, licensed 
 24.7   by the commissioner of human services which ensures that the 
 24.8   minor parent receives adult supervision and supportive services, 
 24.9   such as counseling, guidance, independent living skills 
 24.10  training, or supervision. 
 24.11     Subd. 2.  [RESTRICTIONS ON PLACE OF RESIDENCE.] A minor 
 24.12  parent and the minor child who is in the care of the minor 
 24.13  parent must reside in the household of a parent, legal guardian, 
 24.14  or other appropriate adult relative, or in an adult-supervised 
 24.15  supportive living arrangement in order to receive MFIP-S unless: 
 24.16     (1) the minor parent has no living parent or legal guardian 
 24.17  or other appropriate adult relative whose whereabouts is known; 
 24.18     (2) no living parent or legal guardian of the minor parent 
 24.19  or other appropriate adult relative allows the minor parent to 
 24.20  live in the parent's or legal guardian's home; 
 24.21     (3) the minor parent lived apart from the minor parent's 
 24.22  own parent, legal guardian, or other appropriate adult relative 
 24.23  for a period of at least one year before either the birth of the 
 24.24  minor child or the minor parent's application for MFIP-S; or 
 24.25     (4) the physical or emotional health or safety of the minor 
 24.26  parent or minor child would be jeopardized if the minor parent 
 24.27  and the minor child resided in the same residence with the minor 
 24.28  parent's parent, legal guardian, or other appropriate adult 
 24.29  relative. 
 24.30     Subd. 2a.  [LIVING EXPENSES.] If the minor parent and the 
 24.31  child who is in the care of the minor parent are residing in a 
 24.32  household described in subdivision 1, paragraph (a), and the 
 24.33  noncustodial parent is also a minor, then the noncustodial 
 24.34  parent or those responsible for the noncustodial parent must pay 
 24.35  half of the living expenses of the child and the custodial minor 
 24.36  parent. 
 25.1      Subd. 3.  [NOTICE TO MINOR APPLICANTS REQUIRED.] Minor 
 25.2   applicants must be informed orally and in writing about the 
 25.3   eligibility requirements and their rights and obligations under 
 25.4   the MFIP-S program.  The county must advise the minor of the 
 25.5   possible exemptions and specifically ask whether one or more of 
 25.6   these exemptions is applicable.  If the minor alleges one or 
 25.7   more of these exemptions, then the county must assist the minor 
 25.8   in obtaining the necessary verifications to determine whether or 
 25.9   not these exemptions apply. 
 25.10     Subd. 4.  [REFERRAL TO CHILD PROTECTION SERVICES.] If the 
 25.11  county worker has reason to suspect that the physical or 
 25.12  emotional health or safety of the minor parent or minor child 
 25.13  would be jeopardized if they resided with the minor parent's 
 25.14  parent or legal guardian, then the county worker must make a 
 25.15  referral to child protective services to determine if 
 25.16  subdivision 2, clause (4), applies.  A new determination by the 
 25.17  county worker is not necessary if one has been made within the 
 25.18  last six months, unless there has been a significant change in 
 25.19  circumstances which justifies a new referral and determination. 
 25.20     Subd. 5.  [RESIDENTS IN SUPPORTIVE LIVING ARRANGEMENTS.] If 
 25.21  a minor parent is not living with a parent or legal guardian due 
 25.22  to subdivision 2, clause (1), (2), or (4), the minor parent must 
 25.23  reside, when possible, in a living arrangement that meets the 
 25.24  definition of an adult-supervised supportive living arrangement. 
 25.25     Subd. 6.  [PROTECTIVE PAYMENT.] When a minor parent and 
 25.26  minor child live with another adult relative, or in an 
 25.27  adult-supervised supportive living arrangement, MFIP-S must be 
 25.28  paid, when possible, in the form of a protective payment on 
 25.29  behalf of the minor parent and minor child according to section 
 25.30  256J.39, subdivisions 2 to 4. 
 25.31     Sec. 11.  [256J.15] [OTHER ELIGIBILITY CONDITIONS.] 
 25.32     Subdivision 1.  [ELIGIBILITY WHEN THERE IS SHARED, COURT 
 25.33  ORDERED, AND OTHER CUSTODY ARRANGEMENTS.] The language of a 
 25.34  court order that specifies joint legal or physical custody does 
 25.35  not preclude a determination that a parent is absent.  Absence 
 25.36  must be determined based on the actual facts of the absence 
 26.1   according to paragraphs (a) to (c).  
 26.2      (a) When a minor child spends time in each of the parents' 
 26.3   homes within a payment month, the minor child's home shall be 
 26.4   considered the home in which the majority of the minor child's 
 26.5   time is spent.  When this time is exactly equal within a payment 
 26.6   month, or when the parents alternately live in the minor child's 
 26.7   home within a payment month, the minor child's home shall be 
 26.8   with that parent who is applying for MFIP, unless the minor 
 26.9   child's needs for the full payment month have already been met 
 26.10  through the provision of assistance to the other parent for that 
 26.11  month.  
 26.12     (b) When the physical custody of a minor child alternates 
 26.13  between parents for periods of at least one payment month, each 
 26.14  parent shall be eligible for assistance for any full payment 
 26.15  months the minor child's home is with that parent, except under 
 26.16  the conditions in paragraph (c).  
 26.17     (c) When a minor child's home is with one parent for the 
 26.18  majority of time in each month for at least nine consecutive 
 26.19  calendar months, and that minor child visits or vacations with 
 26.20  the other parent under section 256J.13, the minor child's home 
 26.21  remains with the first parent even when the stay with the second 
 26.22  parent is for all or the majority of the months in the period of 
 26.23  the temporary absence. 
 26.24     Subd. 2.  [ELIGIBILITY DURING LABOR DISPUTES.] To receive 
 26.25  assistance under MFIP-S, a member of an assistance unit who is 
 26.26  on strike must have been an MFIP-S participant on the day before 
 26.27  the strike, or have been eligible for MFIP-S on the day before 
 26.28  the strike. 
 26.29     The county agency must count the striker's prestrike 
 26.30  earnings as current earnings.  When a member of an assistance 
 26.31  unit who is not in the bargaining unit that voted for the strike 
 26.32  does not cross the picket line for fear of personal injury, the 
 26.33  assistance unit member is not a striker.  Except for a member of 
 26.34  an assistance unit who is not in the bargaining unit that voted 
 26.35  for the strike and who does not cross the picket line for fear 
 26.36  of personal injury, a significant change cannot be invoked as a 
 27.1   result of a labor dispute. 
 27.2      Sec. 12.  [256J.20] [PROPERTY LIMITATIONS.] 
 27.3      Subdivision 1.  [PROPERTY OWNERSHIP PROVISIONS.] (a) The 
 27.4   county agency must apply paragraphs (b) to (e) to real and 
 27.5   personal property.  The county agency must use the equity value 
 27.6   of legally available real and personal property, except property 
 27.7   excluded in subdivisions 2 and 3, to determine whether an 
 27.8   applicant or participant is eligible for assistance. 
 27.9      (b) When real or personal property is jointly owned by two 
 27.10  or more persons, the county agency shall assume that each person 
 27.11  owns an equal share, except that either person owns the entire 
 27.12  sum of a joint personal checking or savings account.  When an 
 27.13  applicant or participant documents greater or lesser ownership, 
 27.14  the county agency must use that greater or lesser share to 
 27.15  determine the equity value held by the applicant or 
 27.16  participant.  Other types of ownership must be evaluated 
 27.17  according to law. 
 27.18     (c) Real or personal property owned by the applicant or 
 27.19  participant must be presumed legally available to the applicant 
 27.20  or participant unless the applicant or participant documents 
 27.21  that the property is not legally available to the applicant or 
 27.22  participant.  When real or personal property is not legally 
 27.23  available, its equity value must not be applied against the 
 27.24  limits of subdivisions 2 and 3. 
 27.25     (d) An applicant must disclose whether the applicant has 
 27.26  transferred real or personal property valued in excess of the 
 27.27  property limits in subdivisions 2 and 3 for which reasonable 
 27.28  compensation was not received within one year prior to 
 27.29  application.  A participant must disclose all transfers of 
 27.30  property valued in excess of these limits, according to the 
 27.31  reporting requirements in section 256J.30, subdivision 9.  When 
 27.32  a transfer of real or personal property without reasonable 
 27.33  compensation has occurred: 
 27.34     (1) the person who transferred the property must provide 
 27.35  the property's description, information needed to determine the 
 27.36  property's equity value, the names of the persons who received 
 28.1   the property, and the circumstances of and reasons for the 
 28.2   transfer; and 
 28.3      (2) when the transferred property can be reasonably 
 28.4   reacquired, or when reasonable compensation can be secured, the 
 28.5   property is presumed legally available to the applicant or 
 28.6   participant. 
 28.7      (e) A participant may build the equity value of real and 
 28.8   personal property to the limits in subdivisions 2 and 3. 
 28.9      Subd. 2.  [REAL PROPERTY LIMITATIONS.] Ownership of real 
 28.10  property by an applicant or participant is subject to the 
 28.11  limitations in paragraphs (a) and (b). 
 28.12     (a) A county agency shall exclude the homestead of an 
 28.13  applicant or participant according to clauses (1) to (4): 
 28.14     (1) an applicant or participant who is purchasing real 
 28.15  property through a contract for deed and using that property as 
 28.16  a home is considered the owner of real property; 
 28.17     (2) the total amount of land that can be excluded under 
 28.18  this subdivision is limited to surrounding property which is not 
 28.19  separated from the home by intervening property owned by 
 28.20  others.  Additional property must be assessed as to its legal 
 28.21  and actual availability according to subdivision 1; 
 28.22     (3) when real property that has been used as a home by a 
 28.23  participant is sold, the county agency must treat the cash 
 28.24  proceeds from the sale as excluded property for six months when 
 28.25  the participant intends to reinvest the proceeds in another home 
 28.26  and maintains those proceeds, unused for other purposes, in a 
 28.27  separate account; and 
 28.28     (4) when the homestead is jointly owned, but the client 
 28.29  does not reside in it because of legal separation, pending 
 28.30  divorce; or battering or abuse by the spouse or partner, the 
 28.31  homestead is excluded. 
 28.32     (b) The equity value of real property that is not excluded 
 28.33  under paragraph (a) and which is legally available must be 
 28.34  applied against the limits in subdivision 3.  When the equity 
 28.35  value of the real property exceeds the limits under subdivision 
 28.36  3, the applicant or participant may qualify to receive 
 29.1   assistance when the applicant or participant continues to make a 
 29.2   good faith effort to sell the property and signs a legally 
 29.3   binding agreement to repay the amount of assistance, less child 
 29.4   support collected by the agency.  Repayment must be made within 
 29.5   five working days after the property is sold.  Repayment to the 
 29.6   county agency must be in the amount of assistance received or 
 29.7   the proceeds of the sale, whichever is less. 
 29.8      Subd. 3.  [OTHER PROPERTY LIMITATIONS.] To be eligible for 
 29.9   MFIP-S, the equity value of all nonexcluded real and personal 
 29.10  property of the assistance unit must not exceed $2,000 for 
 29.11  applicant families and $5,000 for ongoing recipient families.  
 29.12  The value of clauses (1) to (17) must be excluded when 
 29.13  determining the equity value of real and personal property: 
 29.14     (1) for each working member of the assistance unit, a 
 29.15  licensed automobile, truck, or van each with a fair market value 
 29.16  no greater than the amount excluded under the food stamp 
 29.17  program, provided that each assistance unit is allowed to 
 29.18  exclude at least one vehicle subject to the value limit in this 
 29.19  clause.  The value of special equipment for a handicapped member 
 29.20  of the assistance unit is excluded.  The fair market value of a 
 29.21  vehicle is the value listed in the N.A.D.A. Official Used Car 
 29.22  Guide, Midwest Edition, for newer model cars.  Amounts in excess 
 29.23  of the exclusion are counted against the property limits 
 29.24  specified in this subdivision; 
 29.25     (2) the value of life insurance policies for members of the 
 29.26  assistance unit; 
 29.27     (3) one burial plot per member of an assistance unit; 
 29.28     (4) the value of personal property needed to produce earned 
 29.29  income, including tools, implements, farm animals, inventory, 
 29.30  business loans, business checking and savings accounts used 
 29.31  exclusively for the operation of a self-employment business, and 
 29.32  any motor vehicles if the vehicles are essential for the 
 29.33  self-employment business; 
 29.34     (5) the value of personal property not otherwise specified 
 29.35  which is commonly used by household members in day-to-day living 
 29.36  such as clothing, necessary household furniture, equipment, and 
 30.1   other basic maintenance items essential for daily living; 
 30.2      (6) the value of real and personal property owned by a 
 30.3   recipient of Social Security Income or Minnesota supplemental 
 30.4   aid; 
 30.5      (7) the value of corrective payments, but only for the 
 30.6   month in which the payment is received and for the following 
 30.7   month; 
 30.8      (8) a mobile home used by an applicant or participant as 
 30.9   the applicant's or participant's home; 
 30.10     (9) money in a separate escrow account that is needed to 
 30.11  pay real estate taxes or insurance and that is used for this 
 30.12  purpose; 
 30.13     (10) money held in escrow to cover employee FICA, employee 
 30.14  tax withholding, sales tax withholding, employee worker 
 30.15  compensation, business insurance, property rental, property 
 30.16  taxes, and other costs that are paid at least annually, but less 
 30.17  often than monthly; 
 30.18     (11) monthly assistance and emergency assistance payments 
 30.19  for the current month's needs; 
 30.20     (12) the value of school loans, grants, or scholarships for 
 30.21  the period they are intended to cover; 
 30.22     (13) payments listed in section 256J.21, subdivision 2, 
 30.23  clause (9), which are held in escrow for a period not to exceed 
 30.24  three months to replace or repair personal or real property; 
 30.25     (14) income received in a budget month through the end of 
 30.26  the budget month; 
 30.27     (15) savings of a minor child or a minor parent that are 
 30.28  set aside in a separate account designated specifically for 
 30.29  future education or employment costs; 
 30.30     (16) the earned income tax credit and Minnesota working 
 30.31  family credit in the month received the following month; 
 30.32     (17) payments excluded under federal law as long as those 
 30.33  payments are held in a separate account from any nonexcluded 
 30.34  funds; and 
 30.35     (18) money received by a participant of the corps to career 
 30.36  program under section 84.0887, subdivision 2, paragraph (b), as 
 31.1   a postservice benefit under the federal Americorps Act. 
 31.2      Sec. 13.  [256J.21] [INCOME LIMITATIONS.] 
 31.3      Subdivision 1.  [INCOME INCLUSIONS.] To determine MFIP-S 
 31.4   eligibility, the county agency must evaluate income received by 
 31.5   members of an assistance unit, or by other persons whose income 
 31.6   is considered available to the assistance unit.  All payments, 
 31.7   unless specifically excluded in subdivision 2, must be counted 
 31.8   as income. 
 31.9      Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
 31.10  excluded in determining a family's available income: 
 31.11     (1) payments for basic care, difficulty of care, and 
 31.12  clothing allowances received for providing family foster care to 
 31.13  children or adults under Minnesota Rules, parts 9545.0010 to 
 31.14  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
 31.15  used for care and maintenance of a third-party beneficiary who 
 31.16  is not a household member; 
 31.17     (2) reimbursements for employment training received through 
 31.18  the Job Training Partnership Act, United States Code, title 29, 
 31.19  chapter 19, sections 1501 to 1792b; 
 31.20     (3) reimbursement for out-of-pocket expenses incurred while 
 31.21  performing volunteer services, jury duty, or employment; 
 31.22     (4) all educational assistance, except the county agency 
 31.23  must count graduate student teaching assistantships, 
 31.24  fellowships, and other similar paid work as earned income and, 
 31.25  after allowing deductions for any unmet and necessary 
 31.26  educational expenses, must count as unearned income all 
 31.27  scholarships or grants awarded to graduate students that do not 
 31.28  require teaching or research; 
 31.29     (5) loans, regardless of purpose, from public or private 
 31.30  lending institutions, governmental lending institutions, or 
 31.31  governmental agencies; 
 31.32     (6) loans from private individuals, regardless of purpose, 
 31.33  provided an applicant or participant documents that the lender 
 31.34  expects repayment; 
 31.35     (7) state and federal income tax refunds; 
 31.36     (8) state and federal earned income credits; 
 32.1      (9) funds received for reimbursement, replacement, or 
 32.2   rebate of personal or real property when these payments are made 
 32.3   by public agencies, awarded by a court, solicited through public 
 32.4   appeal, or made as a grant by a federal agency, state or local 
 32.5   government, or disaster assistance organizations, subsequent to 
 32.6   a presidential declaration of disaster; 
 32.7      (10) the portion of an insurance settlement that is used to 
 32.8   pay medical, funeral, and burial expenses, or to repair or 
 32.9   replace insured property; 
 32.10     (11) reimbursements for medical expenses that cannot be 
 32.11  paid by Medical Assistance; 
 32.12     (12) payments by a vocational rehabilitation program 
 32.13  administered by the state under chapter 268A, except those 
 32.14  payments that are for current living expenses; 
 32.15     (13) in-kind income, including any payments directly made 
 32.16  by a third party to a provider of goods and services; 
 32.17     (14) assistance payments to correct underpayments, but only 
 32.18  for the month in which the payment is received; 
 32.19     (15) emergency assistance payments; 
 32.20     (16) funeral and cemetery payments as provided by section 
 32.21  256.935; 
 32.22     (17) nonrecurring cash gifts of $30 or less, not exceeding 
 32.23  $30 per participant in a calendar month; 
 32.24     (18) any form of energy assistance payment made through 
 32.25  LIHEAP, payments made directly to energy providers by other 
 32.26  public and private agencies, and any form of credit or rebate 
 32.27  payment issued by energy providers; 
 32.28     (19) Supplemental Security Income, including retroactive 
 32.29  payments; 
 32.30     (20) Minnesota supplemental aid, including retroactive 
 32.31  payments; 
 32.32     (21) proceeds from the sale of real or personal property; 
 32.33     (22) adoption assistance payments under section 259.67; 
 32.34     (23) state-funded family subsidy program payments made 
 32.35  under section 252.32 to help families care for children with 
 32.36  mental retardation or related conditions; 
 33.1      (24) interest payments and dividends from property that is 
 33.2   not excluded from and that does not exceed the asset limit; 
 33.3      (25) rent rebates; 
 33.4      (26) income earned by a minor caregiver or minor child who 
 33.5   has not attained the age of 20 and is at least a half-time 
 33.6   student; 
 33.7      (27) MFIP-S child care payments under section 119B.05; 
 33.8      (28) all other payments made through MFIP-S to support a 
 33.9   caregiver's pursuit of greater self-support; 
 33.10     (29) income a participant receives related to shared living 
 33.11  expenses; 
 33.12     (30) reverse mortgages; 
 33.13     (31) benefits provided by the Child Nutrition Act of 1966, 
 33.14  United States Code, title 42, chapter 13A, sections 1771 to 
 33.15  1790; 
 33.16     (32) benefits provided by the women, infants, and children 
 33.17  (WIC) nutrition program, United States Code, title 42, chapter 
 33.18  13A, section 1786; 
 33.19     (33) benefits from the National School Lunch Act, United 
 33.20  States Code, title 42, chapter 13, sections 1751 to 1769e; 
 33.21     (34) relocation assistance for displaced persons under the 
 33.22  Uniform Relocation Assistance and Real Property Acquisition 
 33.23  Policies Act of 1970, United States Code, title 42, chapter 61, 
 33.24  subchapter II, section 4636, or the National Housing Act, United 
 33.25  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
 33.26     (35) benefits from the Trade Act of 1974, United States 
 33.27  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
 33.28     (36) war reparations payments to Japanese Americans and 
 33.29  Aleuts under United States Code, title 50, sections 1989 to 
 33.30  1989d; 
 33.31     (37) payments to veterans or their dependents as a result 
 33.32  of legal settlements regarding Agent Orange or other chemical 
 33.33  exposure under Public Law Number 101-239, section 10405, 
 33.34  paragraph (a)(2)(E); 
 33.35     (38) security utility deposit refunds; 
 33.36     (39) American Indian tribal land settlements excluded under 
 34.1   Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
 34.2   Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
 34.3   reservations and payments to members of the White Earth Band, 
 34.4   under United States Code, title 25, chapter 9, section 331, and 
 34.5   chapter 16, section 1407; and 
 34.6      (40) income that is otherwise specifically excluded from 
 34.7   MFIP-S consideration in federal law, state law, or federal 
 34.8   regulation. 
 34.9      (b) When determining income of members of the family who do 
 34.10  not elect to be included in the assistance unit, the county 
 34.11  agency shall count the remaining income after disregarding: 
 34.12     (1) all income of the minor parent's parent when 
 34.13  determining the grant for the minor parent in households that 
 34.14  include a minor parent living with a parent on MFIP-S with other 
 34.15  dependent children.  The standard of need for the minor parent 
 34.16  is equal to the standard of need available if the minor parent's 
 34.17  parent was not a recipient of MFIP-S; and 
 34.18     (2) income of the minor parent's parent equal to 200 
 34.19  percent of the federal poverty guideline for a family size not 
 34.20  including the minor parent and the minor parent's child in 
 34.21  households that include a minor parent living with a parent not 
 34.22  on MFIP-S when determining the grant for the minor parent.  The 
 34.23  remainder of income is deemed under Code of Federal Regulations, 
 34.24  title 45, section 233.20(a)(3)(xviii) in effect on August 21, 
 34.25  1996. 
 34.26     Subd. 3.  [INITIAL INCOME TEST.] The county agency shall 
 34.27  determine initial eligibility by considering all earned and 
 34.28  unearned income that is not excluded under subdivision 2.  To be 
 34.29  eligible for MFIP-S, the assistance unit's countable income 
 34.30  minus the disregards in paragraphs (a) and (b) must be below the 
 34.31  transitional standard of assistance according to section 256J.24 
 34.32  for that size assistance unit. 
 34.33     (a) The initial eligibility determination must disregard 
 34.34  the following items: 
 34.35     (1) the employment disregard is 18 percent of the gross 
 34.36  earned income whether or not the member is working full time or 
 35.1   part time; 
 35.2      (2) dependent care costs must be deducted from gross earned 
 35.3   income for the actual amount paid for dependent care up to the 
 35.4   maximum disregard allowed under this chapter and chapter 119B; 
 35.5   and 
 35.6      (3) all payments made according to a court order for the 
 35.7   support of children not living in the assistance unit's 
 35.8   household shall be disregarded from the income of the person 
 35.9   with the legal obligation to pay support, provided that, if 
 35.10  there has been a change in the financial circumstances of the 
 35.11  person with the legal obligation to pay support since the 
 35.12  support order was entered, the person with the legal obligation 
 35.13  to pay support has petitioned for a modification of the support 
 35.14  order. 
 35.15     (b) Notwithstanding paragraph (a), when determining initial 
 35.16  eligibility for applicants who have received AFDC, family 
 35.17  general assistance, MFIP, MFIP-R, work first, or MFIP-S in this 
 35.18  state within four months of the most recent application for 
 35.19  MFIP-S, the employment disregard is 35 percent of the gross 
 35.20  earned income. 
 35.21     After initial eligibility is established, the assistance 
 35.22  payment calculation is based on the monthly income test. 
 35.23     Subd. 4.  [MONTHLY INCOME TEST AND DETERMINATION OF 
 35.24  ASSISTANCE PAYMENT.] The county agency shall determine ongoing 
 35.25  eligibility and the assistance payment amount according to the 
 35.26  monthly income test.  To be eligible for MFIP-S, the result of 
 35.27  the computations in paragraphs (a) to (d) must be at least one 
 35.28  dollar. 
 35.29     (a) Apply a 35 percent income disregard to gross earnings 
 35.30  and subtract this amount from the family wage level.  If the 
 35.31  difference is equal to or greater than the transitional 
 35.32  standard, the assistance payment is equal to the transitional 
 35.33  standard.  If the difference is less than the transitional 
 35.34  standard, the assistance payment is equal to the difference.  
 35.35  The employment disregard in this paragraph must be deducted 
 35.36  every month there is earned income. 
 36.1      (b) All payments made according to a court order for the 
 36.2   support of children not living in the assistance unit's 
 36.3   household shall be disregarded from the income of the person 
 36.4   with the legal obligation to pay support, provided that, if 
 36.5   there has been a change in the financial circumstances of the 
 36.6   person with the legal obligation to pay support since the 
 36.7   support order was entered, the person with the legal obligation 
 36.8   to pay support has petitioned for a modification of the support 
 36.9   order. 
 36.10     (c) Subtract unearned income dollar for dollar from the 
 36.11  transitional standard to determine the assistance payment amount.
 36.12     (d) When income is both earned and unearned, the amount of 
 36.13  the assistance payment must be determined by first treating 
 36.14  gross earned income as specified in paragraph (a).  After 
 36.15  determining the amount of the assistance payment under paragraph 
 36.16  (a), unearned income must be subtracted from that amount dollar 
 36.17  for dollar to determine the assistance payment amount. 
 36.18     (e) When the monthly income is greater than the 
 36.19  transitional or family wage level standard after applicable 
 36.20  deductions and the income will only exceed the standard for one 
 36.21  month, the county agency must suspend the assistance payment for 
 36.22  the payment month. 
 36.23     Subd. 5.  [DISTRIBUTION OF INCOME.] The income of all 
 36.24  members of the assistance unit must be counted.  Income may also 
 36.25  be deemed from ineligible persons to the assistance unit.  
 36.26  Income must be attributed to the person who earns it or to the 
 36.27  assistance unit according to paragraphs (a) to (c). 
 36.28     (a) Funds distributed from a trust, whether from the 
 36.29  principal holdings or sale of trust property or from the 
 36.30  interest and other earnings of the trust holdings, must be 
 36.31  considered income when the income is legally available to an 
 36.32  applicant or participant.  Trusts are presumed legally available 
 36.33  unless an applicant or participant can document that the trust 
 36.34  is not legally available. 
 36.35     (b) Income from jointly owned property must be divided 
 36.36  equally among property owners unless the terms of ownership 
 37.1   provide for a different distribution. 
 37.2      (c) Deductions are not allowed from the gross income of a 
 37.3   financially responsible household member or by the members of an 
 37.4   assistance unit to meet a current or prior debt. 
 37.5      Sec. 14.  [256J.24] [FAMILY COMPOSITION AND ASSISTANCE 
 37.6   STANDARDS.] 
 37.7      Subdivision 1.  [MFIP-S ASSISTANCE UNIT.] An MFIP-S 
 37.8   assistance unit is either a group of individuals with at least 
 37.9   one minor child who live together whose needs, assets, and 
 37.10  income are considered together and who receive MFIP-S 
 37.11  assistance, or a pregnant woman who receives MFIP-S assistance.  
 37.12  Individuals identified in subdivision 2 must be included in the 
 37.13  MFIP-S assistance unit.  Individuals identified in subdivision 3 
 37.14  must be excluded from the assistance unit.  Individuals 
 37.15  identified in subdivision 4 may be included in the assistance 
 37.16  unit at their option.  Individuals not included in the 
 37.17  assistance unit who are identified in section 256J.37, 
 37.18  subdivision 1 or 2, must have their income considered when 
 37.19  determining eligibility and benefits for an MFIP-S assistance 
 37.20  unit.  All assistance unit members, whether mandatory or 
 37.21  elective, who live together and for whom one caregiver or two 
 37.22  caregivers apply must be included in a single assistance unit. 
 37.23     Subd. 2.  [MANDATORY ASSISTANCE UNIT COMPOSITION.] When the 
 37.24  following individuals live together, they must be included in 
 37.25  the assistance unit: 
 37.26     (1) a minor child; 
 37.27     (2) the minor child's siblings, half-siblings, and 
 37.28  step-siblings; and 
 37.29     (3) the minor child's natural, adoptive parents, and 
 37.30  stepparents. 
 37.31     Subd. 3.  [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 
 37.32  ASSISTANCE UNIT.] The following individuals must be excluded 
 37.33  from an assistance unit: 
 37.34     (1) individuals receiving Supplemental Security Income or 
 37.35  Minnesota supplemental aid; 
 37.36     (2) individuals living at home while performing 
 38.1   court-imposed, unpaid community service work due to a criminal 
 38.2   conviction; 
 38.3      (3) individuals disqualified from the food stamp program or 
 38.4   MFIP-S, until the disqualification ends; and 
 38.5      (4) children on whose behalf foster care payments under 
 38.6   title IV-E of the Social Security Act are made, except as 
 38.7   provided in section 256J.74, subdivision 2. 
 38.8      Subd. 4.  [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 
 38.9   ASSISTANCE UNIT.] The minor child's eligible caregiver may 
 38.10  choose to be in the assistance unit, if the caregiver is not 
 38.11  required to be in the assistance unit under subdivision 2.  If 
 38.12  the relative caregiver chooses to be in the assistance unit, 
 38.13  that person's spouse must also be in the unit. 
 38.14     Subd. 5.  [MFIP-S TRANSITIONAL STANDARD.] The following 
 38.15  table represents the MFIP-S transitional standard table when all 
 38.16  members of the assistance unit are eligible for both food and 
 38.17  cash assistance. 
 38.18       Number of Eligible People          Standard 
 38.19                     1                      $344
 38.20                     2                      $596
 38.21                     3                      $747 
 38.22                     4                      $884 
 38.23                     5                    $1,003 
 38.24                     6                    $1,140 
 38.25                     7                    $1,246 
 38.26                     8                    $1,373 
 38.27                     9                    $1,498 
 38.28                    10                    $1,618 
 38.29               over 10          add $118 per additional member. 
 38.30     The commissioner shall annually publish in the State 
 38.31  Register the transitional standard for an assistance unit size 1 
 38.32  to 10. 
 38.33     Subd. 6.  [APPLICATION OF ASSISTANCE STANDARDS.] The 
 38.34  standards apply to the number of eligible persons in the 
 38.35  assistance unit. 
 38.36     Subd. 6a.  [ASSISTANCE VENDOR PAID IF CHILD BORN TO 
 39.1   RECIPIENT.] If a woman receiving assistance as a caregiver of an 
 39.2   MFIP-S assistance unit delivers a child born at least ten months 
 39.3   after the woman begins receiving MFIP-S assistance, benefits 
 39.4   paid to the assistance unit under this section shall be vendor 
 39.5   paid for rent and utilities up to the amount of the MFIP-S 
 39.6   grant.  The residual amount of the grant after vendor payment, 
 39.7   if any, shall be paid to the caregiver. 
 39.8      Subd. 7.  [FAMILY WAGE LEVEL STANDARD.] The family wage 
 39.9   level standard is 109 percent of the transitional standard under 
 39.10  subdivision 5 and is the standard used when there is earned 
 39.11  income in the assistance unit.  As specified in section 256J.21, 
 39.12  earned income is subtracted from the family wage level to 
 39.13  determine the amount of the assistance payment.  Assistance 
 39.14  payments may not exceed the transitional standard for the 
 39.15  assistance unit. 
 39.16     Sec. 15.  [256J.25] [RETURN OF UTILITY DEPOSIT.] 
 39.17     A county may require that assistance paid under MFIP-S in 
 39.18  the form of a utility deposit less any amount retained to 
 39.19  satisfy outstanding utility costs be returned to the county when 
 39.20  the person vacates the premises or be paid for the person's new 
 39.21  housing unit as a vendor payment. 
 39.22     Sec. 16.  [256J.26] [PERSONS INELIGIBLE.] 
 39.23     Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 
 39.24  an applicant has been convicted of a drug offense after July 1, 
 39.25  1997, the assistance unit is ineligible for AFDC or MFIP-S 
 39.26  benefits until five years after the applicant has completed 
 39.27  terms of the court-ordered sentence.  This subdivision also 
 39.28  applies to persons who receive food stamps under section 115 of 
 39.29  the Personal Responsibility and Work Opportunity Reconciliation 
 39.30  Act of 1996.  Persons subject to the limitations imposed by this 
 39.31  section who become eligible for assistance under this chapter 
 39.32  shall be subject to random drug testing as a condition of 
 39.33  continued eligibility and shall lose eligibility for benefits 
 39.34  beginning the month following any positive test result for an 
 39.35  illegal controlled substance.  
 39.36     (b) For the purposes of this subdivision, "drug offense" 
 40.1   means a conviction that occurred after July 1, 1997, of sections 
 40.2   152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
 40.3   means a conviction in another jurisdiction of the possession, 
 40.4   use, or distribution of a controlled substance, or conspiracy to 
 40.5   commit any of these offenses, if the offense occurred after July 
 40.6   1, 1997, and the conviction is a felony offense in that 
 40.7   jurisdiction, or in the case of New Jersey, a high misdemeanor. 
 40.8      Subd. 2.  [PAROLE VIOLATORS.] An individual violating a 
 40.9   condition of probation or parole or supervised release imposed 
 40.10  under federal law or the law of any state is ineligible to 
 40.11  receive AFDC or MFIP-S. 
 40.12     Subd. 3.  [FLEEING FELONS.] An individual who is fleeing to 
 40.13  avoid prosecution, or custody, or confinement after conviction 
 40.14  for a crime that is a felony under the laws of the jurisdiction 
 40.15  from which the individual flees, or in the case of New Jersey, 
 40.16  is a high misdemeanor, is ineligible to receive AFDC or MFIP-S. 
 40.17     Subd. 4.  [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 
 40.18  FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 
 40.19  individual who is convicted in federal or state court of having 
 40.20  made a fraudulent statement or representation with respect to 
 40.21  the place of residence of the individual in order to receive 
 40.22  assistance simultaneously from two or more states is ineligible 
 40.23  to receive AFDC or MFIP-S for ten years beginning on the date of 
 40.24  the conviction. 
 40.25     Sec. 17.  [256J.28] [PROVISIONS RELATED SPECIFICALLY TO 
 40.26  FOOD STAMP ASSISTANCE.] 
 40.27     Subdivision 1.  [EXPEDITED ISSUANCE OF FOOD STAMP 
 40.28  ASSISTANCE.] The following households are entitled to expedited 
 40.29  issuance of food stamp assistance: 
 40.30     (1) households with less than $150 in monthly gross income 
 40.31  provided their liquid assets do not exceed $100; 
 40.32     (2) migrant or seasonal farm worker households who are 
 40.33  destitute as defined in Code of Federal Regulations, title 7, 
 40.34  subtitle B, chapter 2, subchapter C, part 273, section 273.10, 
 40.35  paragraph (e)(3), provided their liquid assets do not exceed 
 40.36  $100; and 
 41.1      (3) eligible households whose combined monthly gross income 
 41.2   and liquid assets are less than the household's monthly rent or 
 41.3   mortgage and utilities. 
 41.4      The benefits issued through expedited issuance of food 
 41.5   stamp assistance shall not be paid in cash, and must be deducted 
 41.6   from the amount of the full monthly MFIP-S assistance payment 
 41.7   and a supplemental payment for the difference must be issued. 
 41.8      Subd. 2.  [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 
 41.9   ASSISTANCE UNIT.] (a) For household members who purchase and 
 41.10  prepare food with the MFIP-S assistance unit but are not part of 
 41.11  the assistance unit, the county agency must determine a separate 
 41.12  food stamp benefit based on regulations agreed upon with the 
 41.13  United States department of agriculture. 
 41.14     (b) This subdivision does not apply to optional members who 
 41.15  have chosen not to be in the assistance unit. 
 41.16     (c) Fair hearing requirements for persons who receive food 
 41.17  stamps under this subdivision are governed by section 256.045, 
 41.18  and Code of Federal Regulations, title 7, subtitle B, chapter 
 41.19  II, part 273, section 273.15. 
 41.20     Subd. 3.  [INCOME DISREGARD FOR CERTAIN PROGRAMS, FOOD 
 41.21  ASSISTANCE PORTION OF ASSISTANCE PAYMENT.] The portion of the 
 41.22  MFIP-S assistance payment that is designated by the commissioner 
 41.23  as the food assistance portion of the assistance payment must be 
 41.24  disregarded as income in the following programs: 
 41.25     (1) housing subsidy programs; 
 41.26     (2) low-income home energy assistance program; 
 41.27     (3) Supplemental Security Income, when determining interim 
 41.28  assistance amount; and 
 41.29     (4) other programs that do not count food stamps as income. 
 41.30     For the purposes of this subdivision, the food assistance 
 41.31  portion of the assistance payment means a predetermined portion 
 41.32  of the MFIP-S assistance payment that may be received in 
 41.33  point-of-purchase sites or as food stamps.  The predetermined 
 41.34  portion of the assistance payment varies by family profile, 
 41.35  which is based on family size. 
 41.36     Sec. 18.  [256J.30] [APPLICANT AND PARTICIPANT REQUIREMENTS 
 42.1   AND RESPONSIBILITIES.] 
 42.2      Subdivision 1.  [APPLICANT REPORTING REQUIREMENTS.] An 
 42.3   applicant must provide information on an application form and 
 42.4   supplemental forms about the applicant's circumstances which 
 42.5   affect MFIP-S eligibility or the assistance payment.  An 
 42.6   applicant must report changes identified in subdivision 9 while 
 42.7   the application is pending.  When an applicant does not 
 42.8   accurately report information on an application, both an 
 42.9   overpayment and a referral for a fraud investigation may 
 42.10  result.  When an applicant does not provide information or 
 42.11  documentation, the receipt of the assistance payment may be 
 42.12  delayed or the application may be denied depending on the type 
 42.13  of information required and its effect on eligibility. 
 42.14     Subd. 2.  [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 
 42.15  applicant or participant must apply for and follow through with 
 42.16  appealing any denials of eligibility for benefits from other 
 42.17  programs for which the applicant or participant is potentially 
 42.18  eligible and which would, if received, offset assistance 
 42.19  payments.  An applicant's or participant's failure to complete 
 42.20  application for these benefits without good cause results in 
 42.21  denial or termination of assistance.  Good cause for failure to 
 42.22  apply for these benefits is allowed when circumstances beyond 
 42.23  the control of the applicant or participant prevent the 
 42.24  applicant or participant from making an application. 
 42.25     Subd. 3.  [RESPONSIBILITY TO INQUIRE.] An applicant or 
 42.26  participant who does not know or is unsure whether a given 
 42.27  change in circumstances will affect the applicant's or 
 42.28  participant's MFIP-S eligibility or assistance payment must 
 42.29  contact the county agency for information.  
 42.30     Subd. 4.  [PARTICIPANT'S COMPLETION OF RECERTIFICATION OF 
 42.31  ELIGIBILITY FORM.] A participant must complete forms prescribed 
 42.32  by the commissioner which are required for recertification of 
 42.33  eligibility according to section 256J.32, subdivision 6. 
 42.34     Subd. 5.  [MONTHLY MFIP-S HOUSEHOLD REPORTS.] Each 
 42.35  assistance unit with a member who has earned income or a recent 
 42.36  work history, and each assistance unit that has income allocated 
 43.1   to it from a financially responsible person, must complete a 
 43.2   monthly MFIP-S household report form.  "Recent work history" 
 43.3   means the individual received earned income in the report month 
 43.4   or any of the previous three calendar months even if the 
 43.5   earnings are excluded.  To be complete, the MFIP-S household 
 43.6   report form must be signed and dated by the caregivers no 
 43.7   earlier than the last day of the reporting period.  All 
 43.8   questions required to determine assistance payment eligibility 
 43.9   must be answered, and documentation of earned income must be 
 43.10  included. 
 43.11     Subd. 6.  [SIX-MONTH MFIP-S HOUSEHOLD REPORT.] Assistance 
 43.12  units that are not required to report monthly under subdivision 
 43.13  5 must complete an MFIP-S household report form every six 
 43.14  months.  To be complete, the MFIP-S household report form must 
 43.15  be signed and dated by the caregiver or caregivers no earlier 
 43.16  than the last day of the reporting period.  All questions 
 43.17  required to determine assistance payment eligibility must be 
 43.18  answered and documentation of earned income must be included. 
 43.19     Subd. 7.  [DUE DATE OF MFIP-S HOUSEHOLD REPORT.] An MFIP-S 
 43.20  household report form must be received by the county agency by 
 43.21  the eighth calendar day of the month following the reporting 
 43.22  period covered by the form.  When the eighth calendar day of the 
 43.23  month falls on a weekend or holiday, the MFIP-S household report 
 43.24  form must be received by the county agency by the first working 
 43.25  day that follows the eighth calendar day.  The county agency 
 43.26  must send a notice of termination because of a late or 
 43.27  incomplete MFIP-S household report form. 
 43.28     Subd. 8.  [LATE MFIP-S HOUSEHOLD REPORT FORMS.] Paragraphs 
 43.29  (a) to (d) apply to the reporting requirements in subdivision 7. 
 43.30     (a) When a caregiver submits an incomplete MFIP-S household 
 43.31  report form before the last working day of the month on which a 
 43.32  ten-day notice of termination can be issued, the county agency 
 43.33  must return the incomplete form on or before the ten-day notice 
 43.34  deadline or any previously sent ten-day notice of termination is 
 43.35  invalid. 
 43.36     (b) When a complete MFIP-S household report form is not 
 44.1   received by a county agency before the last ten days of the 
 44.2   month in which the form is due, the county agency must send a 
 44.3   notice of proposed termination of assistance.  When a caregiver 
 44.4   submits an incomplete form on or after the date a notice of 
 44.5   proposed termination has been sent, the termination is valid 
 44.6   unless the caregiver submits a complete form before the end of 
 44.7   the month. 
 44.8      (c) An assistance unit required to submit an MFIP-S 
 44.9   household report form is considered to have continued its 
 44.10  application for assistance if a complete MFIP-S household report 
 44.11  form is received within a calendar month after the month in 
 44.12  which assistance was received and assistance shall be paid for 
 44.13  the period beginning with the first day of the month in which 
 44.14  the report was due. 
 44.15     (d) A county agency must allow good cause exemptions from 
 44.16  the reporting requirements under subdivisions 5 and 6 when any 
 44.17  of the following factors cause a caregiver to fail to provide 
 44.18  the county agency with a completed MFIP-S household report form 
 44.19  before the end of the month in which the form is due: 
 44.20     (1) an employer delays completion of employment 
 44.21  verification; 
 44.22     (2) a county agency does not help a caregiver complete the 
 44.23  MFIP-S household report form when the caregiver asks for help; 
 44.24     (3) a caregiver does not receive an MFIP-S household report 
 44.25  form due to mistake on the part of the department or the county 
 44.26  agency or due to a reported change in address; 
 44.27     (4) a caregiver is ill, or physically or mentally 
 44.28  incapacitated; or 
 44.29     (5) some other circumstance occurs that a caregiver could 
 44.30  not avoid with reasonable care that prevents the caregiver from 
 44.31  providing a completed MFIP-S household report form before the 
 44.32  end of the month in which the form is due. 
 44.33     Subd. 9.  [CHANGES THAT MUST BE REPORTED.] A caregiver must 
 44.34  report the changes or anticipated changes specified in clauses 
 44.35  (1) to (16) within ten days of the date they occur, within ten 
 44.36  days of the date the caregiver learns that the change will 
 45.1   occur, at the time of the periodic recertification of 
 45.2   eligibility under section 256J.32, subdivision 6, or within 
 45.3   eight calendar days of a reporting period as in subdivision 5 or 
 45.4   6, whichever occurs first.  A caregiver must report other 
 45.5   changes at the time of the periodic recertification of 
 45.6   eligibility under section 256J.32, subdivision 6, or at the end 
 45.7   of a reporting period under subdivision 5 or 6, as applicable.  
 45.8   A caregiver must make these reports in writing or in person to 
 45.9   the county agency.  When a county agency could have reduced or 
 45.10  terminated assistance for one or more payment months if a delay 
 45.11  in reporting a change specified under clauses (1) to (16) had 
 45.12  not occurred, the county agency must determine whether a timely 
 45.13  notice under section 256J.31, subdivision 4, could have been 
 45.14  issued on the day that the change occurred.  When a timely 
 45.15  notice could have been issued, each month's overpayment 
 45.16  subsequent to that notice must be considered a client error 
 45.17  overpayment under section 256J.38.  Changes in circumstances 
 45.18  which must be reported within ten days must also be reported on 
 45.19  the MFIP-S household report form for the reporting period in 
 45.20  which those changes occurred.  Within ten days, a caregiver must 
 45.21  report: 
 45.22     (1) a change in initial employment; 
 45.23     (2) a change in initial receipt of unearned income; 
 45.24     (3) a recurring change in unearned income; 
 45.25     (4) a nonrecurring change of unearned income that exceeds 
 45.26  $30; 
 45.27     (5) the receipt of a lump sum; 
 45.28     (6) an increase in assets that may cause the assistance 
 45.29  unit to exceed asset limits; 
 45.30     (7) a change in the physical or mental status of an 
 45.31  incapacitated member of the assistance unit if the physical or 
 45.32  mental status is the basis of an exemption from the MFIP-S 
 45.33  employment and training services component; 
 45.34     (8) a change in employment status; 
 45.35     (9) a change in household composition, including births, 
 45.36  returns to and departures from the home of assistance unit 
 46.1   members and financially responsible persons, or a change in the 
 46.2   custody of a minor child; 
 46.3      (10) a change in health insurance coverage; 
 46.4      (11) the marriage or divorce of an assistance unit member; 
 46.5      (12) the death of a parent, minor child, or financially 
 46.6   responsible person; 
 46.7      (13) a change in address or living quarters of the 
 46.8   assistance unit; 
 46.9      (14) the sale, purchase, or other transfer of property; 
 46.10     (15) a change in school attendance of a custodial parent or 
 46.11  an employed child; and 
 46.12     (16) filing a lawsuit, a workers' compensation claim, or a 
 46.13  monetary claim against a third party. 
 46.14     Subd. 10.  [COOPERATION WITH HEALTH CARE BENEFITS.] (a) The 
 46.15  caregiver of a minor child must cooperate with the county agency 
 46.16  to identify and provide information to assist the county agency 
 46.17  in pursuing third-party liability for medical services. 
 46.18     (b) A caregiver must assign to the department any rights to 
 46.19  health insurance policy benefits the caregiver has during the 
 46.20  period of MFIP-S eligibility. 
 46.21     (c) A caregiver must identify any third party who may be 
 46.22  liable for care and services available under the medical 
 46.23  assistance program on behalf of the applicant or participant and 
 46.24  all other assistance unit members. 
 46.25     (d) When a participant refuses to assign the rights to the 
 46.26  department, or when a participant refuses to identify any third 
 46.27  party who may be liable for care and services, the recipient 
 46.28  must be sanctioned as provided in section 256J.46.  The 
 46.29  recipient is also ineligible for medical assistance for a 
 46.30  minimum of one month and until the recipient cooperates with the 
 46.31  requirements of this subdivision. 
 46.32     Subd. 11.  [REQUIREMENT TO ASSIGN SUPPORT AND MAINTENANCE 
 46.33  RIGHTS.] To be eligible for MFIP-S, the caregiver must assign 
 46.34  all rights to child support and spousal maintenance benefits 
 46.35  according to section 256.74, subdivision 5, and section 256.741, 
 46.36  if enacted. 
 47.1      Subd. 12.  [REQUIREMENT TO PROVIDE SOCIAL SECURITY 
 47.2   NUMBERS.] Each member of the assistance unit must provide the 
 47.3   member's social security number to the county agency except for 
 47.4   members of the assistance unit who are qualified aliens 
 47.5   according to the Illegal Immigration Reform and Immigration 
 47.6   Responsibility Act of 1996, Title V of the Omnibus Consolidated 
 47.7   Appropriations Act, Public Law Number 104-200.  When a social 
 47.8   security number is not provided to the county agency for 
 47.9   verification, this requirement is satisfied when each member of 
 47.10  the assistance unit cooperates with the procedures for 
 47.11  verification of numbers, issuance of duplicate cards, and 
 47.12  issuance of new numbers which have been established jointly 
 47.13  between the Social Security Administration and the commissioner. 
 47.14     Sec. 19.  [256J.31] [APPLICANT AND PARTICIPANT RIGHTS AND 
 47.15  COUNTY AGENCY RESPONSIBILITIES.] 
 47.16     Subdivision 1.  [RIGHT TO INFORMATION.] An applicant or 
 47.17  participant has the right to obtain from the county agency 
 47.18  information about the benefits, requirements, restrictions, and 
 47.19  appeal provisions of public assistance programs. 
 47.20     Subd. 2.  [RIGHT TO AUTHORIZED REPRESENTATIVE.] An 
 47.21  applicant or participant has the right to designate an 
 47.22  authorized representative to act on the applicant's or 
 47.23  participant's behalf.  An applicant or participant has the right 
 47.24  to be assisted or represented by an authorized representative in 
 47.25  eligibility determinations, recertification, conciliation 
 47.26  conferences, the fair hearing process, and any other contacts 
 47.27  with the county agency or the department.  When a county agency 
 47.28  determines that it is necessary for a person to assist an 
 47.29  applicant or participant, the county agency must designate a 
 47.30  staff member to assist the applicant or participant.  Upon a 
 47.31  request from an applicant or participant, a county agency must 
 47.32  provide addresses and telephone numbers of organizations that 
 47.33  provide legal services at low cost or no cost to low-income 
 47.34  persons. 
 47.35     Subd. 3.  [RIGHT OF APPLICANT TO NOTICE.] A county agency 
 47.36  must notify an applicant of the disposition of the applicant's 
 48.1   application.  The notice must be in writing and on forms 
 48.2   prescribed by the commissioner.  The county agency must mail the 
 48.3   notice to the last known mailing address provided by the 
 48.4   applicant.  When an application is denied, the county agency 
 48.5   must notify the applicant in writing of the reasons for the 
 48.6   denial, of the right to appeal, and of the right to reapply for 
 48.7   assistance. 
 48.8      Subd. 4.  [PARTICIPANT'S RIGHT TO NOTICE.] A county agency 
 48.9   must give a participant written notice of all adverse actions 
 48.10  affecting the participant including payment reductions, 
 48.11  suspensions, terminations, and use of protective, vendor, or 
 48.12  two-party payments.  The notice of adverse action must be on a 
 48.13  form prescribed or approved by the commissioner and must be 
 48.14  mailed to the last known mailing address provided by the 
 48.15  participant.  The county agency must state on the notice of 
 48.16  adverse action the action it intends to take, the reasons for 
 48.17  the action, the participant's right to appeal the action, the 
 48.18  conditions under which assistance can be continued pending an 
 48.19  appeal decision, and the related consequences of the action. 
 48.20     Subd. 5.  [MAILING OF NOTICE.] The notice of adverse action 
 48.21  shall be issued according to paragraphs (a) to (c). 
 48.22     (a) A county agency shall mail a notice of adverse action 
 48.23  at least ten days before the effective date of the adverse 
 48.24  action, except as provided in paragraphs (b) and (c). 
 48.25     (b) A county agency must mail a notice of adverse action at 
 48.26  least five days before the effective date of the adverse action 
 48.27  when the county agency has factual information that requires an 
 48.28  action to reduce, suspend, or terminate assistance based on 
 48.29  probable fraud. 
 48.30     (c) A county agency shall mail a notice of adverse action 
 48.31  before or on the effective date of the adverse action when the 
 48.32  county agency: 
 48.33     (1) receives the caregiver's signed monthly MFIP-S 
 48.34  household report form that includes information that requires 
 48.35  payment reduction, suspension, or termination; 
 48.36     (2) is informed of the death of a participant or the payee; 
 49.1      (3) receives a signed statement from the caregiver that 
 49.2   assistance is no longer wanted; 
 49.3      (4) receives a signed statement from the caregiver that 
 49.4   provides information that requires the termination or reduction 
 49.5   of assistance; 
 49.6      (5) verifies that a member of the assistance unit is absent 
 49.7   from the home and does not meet temporary absence provisions in 
 49.8   section 256J.13; 
 49.9      (6) verifies that a member of the assistance unit has 
 49.10  entered a regional treatment center or a licensed residential 
 49.11  facility for medical or psychological treatment or 
 49.12  rehabilitation; 
 49.13     (7) verifies that a member of an assistance unit has been 
 49.14  placed in foster care, and the provisions of section 256J.13, 
 49.15  subdivision 2, paragraph (b), do not apply; or 
 49.16     (8) cannot locate a caregiver. 
 49.17     Subd. 6.  [APPEAL RIGHTS.] An applicant, participant, or 
 49.18  former participant has the right to request a fair hearing when 
 49.19  aggrieved by an action or inaction of a county agency.  A 
 49.20  request for a fair hearing and rights pending a fair hearing are 
 49.21  set as specified in section 256J.40. 
 49.22     Subd. 7.  [CASE RECORDS AVAILABLE.] A county agency must 
 49.23  make financial case records available to the participant or 
 49.24  former participant as soon as possible but no later than the 
 49.25  fifth business day following the date of the request.  When the 
 49.26  participant or former participant asks for photocopies of 
 49.27  material from the financial case record, the county agency must 
 49.28  provide one copy of each page at no cost. 
 49.29     Subd. 8.  [RIGHT TO MANAGE AFFAIRS.] Except for protective 
 49.30  payment provisions authorized under section 256J.39, 
 49.31  participants have the right to manage their own affairs. 
 49.32     Subd. 9.  [RIGHT TO PROTECTION.] Minor caregivers have the 
 49.33  right to protection.  The county agency must refer a minor 
 49.34  caregiver to the social service unit within 30 days of the date 
 49.35  the application is approved.  The social service unit must 
 49.36  assist the caregiver who is less than 18 years of age to develop 
 50.1   a plan as specified in section 256J.54. 
 50.2      Subd. 10.  [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 
 50.3   earnings of a caregiver who is participating in full or 
 50.4   part-time employment or training shall be protected from 
 50.5   garnishment.  This protection for earnings shall extend for a 
 50.6   period of six months from the date of termination from MFIP-S. 
 50.7      Subd. 11.  [RESPONSIBILITY TO RETAIN CASE RECORDS.] The 
 50.8   county agency must retain financial case records and employment 
 50.9   and training service records for MFIP-S cases according to 
 50.10  chapter 13. 
 50.11     Sec. 20.  [256J.315] [COUNTY AND TRIBAL COOPERATION.] 
 50.12     The county agency must cooperate with tribal governments in 
 50.13  the implementation of MFIP-S to ensure that the program meets 
 50.14  the special needs of persons living on Indian reservations.  
 50.15  This cooperation must include, but is not limited to, the 
 50.16  sharing of MFIP-S duties including initial screening, 
 50.17  orientation, assessments, and provision of employment and 
 50.18  training services.  The county agency shall encourage tribal 
 50.19  governments to assume duties related to MFIP-S and shall work 
 50.20  cooperatively with tribes that have assumed responsibility for a 
 50.21  portion of the MFIP-S program to expand tribal responsibilities, 
 50.22  if that expansion is requested by the tribe. 
 50.23     Sec. 21.  [256J.32] [DOCUMENTING, VERIFYING, AND 
 50.24  RECERTIFYING ELIGIBILITY.] 
 50.25     Subdivision 1.  [VERIFICATION OF INFORMATION.] A county 
 50.26  agency must only require verification of information necessary 
 50.27  to determine MFIP-S eligibility and the amount of the assistance 
 50.28  payment. 
 50.29     Subd. 2.  [DOCUMENTATION.] The applicant or participant 
 50.30  must document the information required under subdivisions 4 to 6 
 50.31  or authorize the county agency to verify the information.  The 
 50.32  applicant or participant has the burden of providing documentary 
 50.33  evidence to verify eligibility.  The county agency shall assist 
 50.34  the applicant or participant in obtaining required documents 
 50.35  when the applicant or participant is unable to do so.  When an 
 50.36  applicant or participant and the county agency are unable to 
 51.1   obtain documents needed to verify information, the county agency 
 51.2   may accept an affidavit from an applicant or participant as 
 51.3   sufficient documentation. 
 51.4      Subd. 3.  [CONTACTING THIRD PARTIES.] A county agency must 
 51.5   not request information about an applicant or participant that 
 51.6   is not of public record from a source other than county 
 51.7   agencies, the department, or the United States Department of 
 51.8   Health and Human Services without the person's prior written 
 51.9   consent.  An applicant's signature on an application form 
 51.10  constitutes consent for contact with the sources specified on 
 51.11  the application.  A county agency may use a single consent form 
 51.12  to contact a group of similar sources, such as banks or 
 51.13  insurance agencies, but the sources to be contacted must be 
 51.14  identified by the county agency prior to requesting an 
 51.15  applicant's consent. 
 51.16     Subd. 4.  [FACTORS TO BE VERIFIED.] The county agency shall 
 51.17  verify the following at application: 
 51.18     (1) identity of adults; 
 51.19     (2) presence of the minor child in the home, if 
 51.20  questionable; 
 51.21     (3) relationship of a minor child to caregivers in the 
 51.22  assistance unit; 
 51.23     (4) age, if necessary to determine MFIP-S eligibility; 
 51.24     (5) immigration status; 
 51.25     (6) social security number in accordance with the 
 51.26  requirements of section 256J.30, subdivision 12; 
 51.27     (7) income; 
 51.28     (8) self-employment expenses used as a deduction; 
 51.29     (9) source and purpose of deposits and withdrawals from 
 51.30  business accounts; 
 51.31     (10) spousal support and child support payments made to 
 51.32  persons outside the household; 
 51.33     (11) real property; 
 51.34     (12) vehicles; 
 51.35     (13) checking and savings accounts; 
 51.36     (14) savings certificates, savings bonds, stocks, and 
 52.1   individual retirement accounts; 
 52.2      (15) pregnancy, if related to eligibility; 
 52.3      (16) inconsistent information, if related to eligibility; 
 52.4      (17) medical insurance; 
 52.5      (18) anticipated graduation date of an 18-year-old; 
 52.6      (19) burial accounts; 
 52.7      (20) school attendance, if related to eligibility; and 
 52.8      (21) residence. 
 52.9      Subd. 5.  [VERIFICATION OF IMMIGRATION STATUS.] An 
 52.10  applicant's written authorization is required before the county 
 52.11  agency contacts the Immigration and Naturalization Service to 
 52.12  verify immigration status under subdivision 4, clause (5).  
 52.13  However, refusal to provide such authorization is grounds for a 
 52.14  finding of ineligibility if the applicant fails to produce proof 
 52.15  of eligible immigration status.  
 52.16     Subd. 5a.  [INCONSISTENT INFORMATION.] When the county 
 52.17  agency verifies inconsistent information under subdivision 4, 
 52.18  clause (16), or under subdivision 6, clause (4), the reason for 
 52.19  verifying the information must be documented in the financial 
 52.20  case record. 
 52.21     Subd. 6.  [RECERTIFICATION.] The county agency shall 
 52.22  recertify eligibility in an annual face-to-face interview with 
 52.23  the participant and verify the following: 
 52.24     (1) presence of the minor child in the home, if 
 52.25  questionable; 
 52.26     (2) income, including self-employment expenses used as a 
 52.27  deduction or deposits or withdrawals from business accounts; 
 52.28     (3) assets, when the value is within $200 of the asset 
 52.29  limit; and 
 52.30     (4) inconsistent information, if related to eligibility. 
 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     Sec. 23.  [256J.34] [CALCULATING PAYMENTS; SIGNIFICANT 
 54.34  CHANGE; INCOME AVERAGING.] 
 54.35     Subdivision 1.  [PROSPECTIVE BUDGETING.] A county agency 
 54.36  must use prospective budgeting to calculate the assistance 
 55.1   payment amount for the first two months for an applicant who has 
 55.2   not received assistance in this state for at least one payment 
 55.3   month preceding the first month of payment under a current 
 55.4   application.  Prospective budgeting is not subject to 
 55.5   overpayments or underpayments unless fraud is determined under 
 55.6   section 256.98. 
 55.7      (a) The county agency must apply the income received or 
 55.8   anticipated in the first month of MFIP-S eligibility against the 
 55.9   need of the first month.  The county agency must apply the 
 55.10  income received or anticipated in the second month against the 
 55.11  need of the second month. 
 55.12     (b) When the assistance payment for any part of the first 
 55.13  two months is based on anticipated income, the county agency 
 55.14  must base the initial assistance payment amount on the 
 55.15  information available at the time the initial assistance payment 
 55.16  is made. 
 55.17     (c) The county agency must determine the assistance payment 
 55.18  amount for the first two months of MFIP-S eligibility by 
 55.19  budgeting both recurring and nonrecurring income for those two 
 55.20  months. 
 55.21     (d) The county agency must budget the child support income 
 55.22  received or anticipated to be received by an assistance unit to 
 55.23  determine the assistance payment amount from the month of 
 55.24  application through the date in which MFIP-S eligibility is 
 55.25  determined and assistance is authorized.  Child support income 
 55.26  which has been budgeted to determine the assistance payment in 
 55.27  the initial two months is considered nonrecurring income.  An 
 55.28  assistance unit must forward any payment of child support to the 
 55.29  child support enforcement unit of the county agency following 
 55.30  the date in which assistance is authorized. 
 55.31     Subd. 2.  [RETROSPECTIVE BUDGETING.] The county agency must 
 55.32  use retrospective budgeting to calculate the monthly assistance 
 55.33  payment amount after the payment for the first two months has 
 55.34  been made under subdivision 1. 
 55.35     Subd. 3.  [ADDITIONAL USES OF RETROSPECTIVE 
 55.36  BUDGETING.] Notwithstanding subdivision 1, the county agency 
 56.1   must use retrospective budgeting to calculate the monthly 
 56.2   assistance payment amount for the first two months under 
 56.3   paragraphs (a) and (b). 
 56.4      (a) The county agency must use retrospective budgeting to 
 56.5   determine the amount of the assistance payment in the first two 
 56.6   months of MFIP-S eligibility: 
 56.7      (1) when an assistance unit applies for assistance for the 
 56.8   same month for which assistance has been interrupted, the 
 56.9   interruption in eligibility is less than one payment month, the 
 56.10  assistance payment for the preceding month was issued in this 
 56.11  state, and the assistance payment for the immediately preceding 
 56.12  month was determined retrospectively; or 
 56.13     (2) when a person applies in order to be added to an 
 56.14  assistance unit, that assistance unit has received assistance in 
 56.15  this state for at least the two preceding months, and that 
 56.16  person has been living with and has been financially responsible 
 56.17  for one or more members of that assistance unit for at least the 
 56.18  two preceding months. 
 56.19     (b) Except as provided in clauses (1) to (4), the county 
 56.20  agency must use retrospective budgeting and apply income 
 56.21  received in the budget month by an assistance unit and by a 
 56.22  financially responsible household member who is not included in 
 56.23  the assistance unit against the appropriate transitional or 
 56.24  family wage level standard to determine the assistance payment 
 56.25  to be issued for the payment month. 
 56.26     (1) When a source of income ends prior to the third payment 
 56.27  month, that income is not considered in calculating the 
 56.28  assistance payment for that month.  When a source of income ends 
 56.29  prior to the fourth payment month, that income is not considered 
 56.30  when determining the assistance payment for that month. 
 56.31     (2) When a member of an assistance unit or a financially 
 56.32  responsible household member leaves the household of the 
 56.33  assistance unit, the income of that departed household member is 
 56.34  not budgeted retrospectively for any full payment month in which 
 56.35  that household member does not live with that household and is 
 56.36  not included in the assistance unit. 
 57.1      (3) When an individual is removed from an assistance unit 
 57.2   because the individual is no longer a minor child, the income of 
 57.3   that individual is not budgeted retrospectively for payment 
 57.4   months in which that individual is not a member of the 
 57.5   assistance unit, except that income of an ineligible child in 
 57.6   the household must continue to be budgeted retrospectively 
 57.7   against the child's needs when the parent or parents of that 
 57.8   child request allocation of their income against any unmet needs 
 57.9   of that ineligible child. 
 57.10     (4) When a person ceases to have financial responsibility 
 57.11  for one or more members of an assistance unit, the income of 
 57.12  that person is not budgeted retrospectively for the payment 
 57.13  months which follow the month in which financial responsibility 
 57.14  ends. 
 57.15     Subd. 4.  [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 
 57.16  agency must recalculate the assistance payment when an 
 57.17  assistance unit experiences a significant change, as defined in 
 57.18  section 256J.08, resulting in a reduction in the gross income 
 57.19  received in the payment month from the gross income received in 
 57.20  the budget month.  The county agency must issue a supplemental 
 57.21  assistance payment based on the county agency's best estimate of 
 57.22  the assistance unit's income and circumstances for the payment 
 57.23  month.  Budget adjustments that result from significant changes 
 57.24  are limited to two in a 12-month period regardless of the reason 
 57.25  for the change.  Budget adjustments due to a significant change 
 57.26  in the amount of direct support received must not be made after 
 57.27  the date the assistance unit is required to forward support to 
 57.28  the child support enforcement unit under subdivision 1, 
 57.29  paragraph (d). 
 57.30     Subd. 5.  [INCOME AVERAGING FOR PARTICIPANTS PAID WEEKLY OR 
 57.31  BIWEEKLY.] For the purposes of stabilizing assistance payments, 
 57.32  the county agency may average income for participants paid 
 57.33  weekly or biweekly.  Monthly income may be computed by adding 
 57.34  income from all paychecks, dividing the sum by the number of 
 57.35  paychecks, and multiplying the results by 4.3 if paychecks are 
 57.36  weekly or 2.16 if paychecks are biweekly.  The county agency may 
 58.1   not use income averaging unless discussed with the participant 
 58.2   and requested by the participant. 
 58.3      Sec. 24.  [256J.35] [AMOUNT OF ASSISTANCE PAYMENT.] 
 58.4      Except as provided in paragraphs (a) to (c), the amount of 
 58.5   an assistance payment is equal to the difference between the 
 58.6   transitional standard or the family wage level in section 
 58.7   256J.24 and countable income. 
 58.8      (a) When MFIP-S eligibility exists for the month of 
 58.9   application, the amount of the assistance payment for the month 
 58.10  of application must be prorated from the date of application or 
 58.11  the date all other eligibility factors are met for that 
 58.12  applicant, whichever is later.  This provision applies when an 
 58.13  applicant loses at least one day of MFIP-S eligibility. 
 58.14     (b) MFIP-S overpayments to an assistance unit must be 
 58.15  recouped according to section 256J.38, subdivision 4. 
 58.16     (c) An initial assistance payment must not be made to an 
 58.17  applicant who is not eligible on the date payment is made. 
 58.18     Sec. 25.  [256J.36] [ALLOCATION FOR UNMET NEED OF OTHER 
 58.19  HOUSEHOLD MEMBERS.] 
 58.20     Except as prohibited in paragraphs (a) and (b), an 
 58.21  allocation of income is allowed to meet the unmet need of an 
 58.22  ineligible spouse or an ineligible child under the age of 21 for 
 58.23  whom the caregiver is financially responsible who also lives 
 58.24  with the caregiver.  An allocation is allowed from the 
 58.25  caregiver's income to meet the need of an ineligible or excluded 
 58.26  person.  That allocation is allowed in an amount up to the 
 58.27  difference between the MFIP-S family allowance for the 
 58.28  assistance unit when that excluded or ineligible person is 
 58.29  included in the assistance unit and the MFIP-S family allowance 
 58.30  for the assistance unit when the excluded or ineligible person 
 58.31  is not included in the assistance unit.  These allocations must 
 58.32  be deducted from the caregiver's counted earnings and from 
 58.33  unearned income subject to paragraphs (a) and (b). 
 58.34     (a) Income of a minor child in the assistance unit must not 
 58.35  be allocated to meet the need of a person who is not a member of 
 58.36  the assistance unit, including the child's parent, even when 
 59.1   that parent is the payee of the child's income. 
 59.2      (b) Income of an assistance unit must not be allocated to 
 59.3   meet the needs of a person ineligible for failure to cooperate 
 59.4   with program requirements including child support requirements, 
 59.5   a person ineligible due to fraud, or a relative caregiver and 
 59.6   his or her spouse who opt out of the assistance unit. 
 59.7      Sec. 26.  [256J.37] [TREATMENT OF INCOME AND LUMP SUMS.] 
 59.8      Subdivision 1.  [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 
 59.9   MEMBERS.] (a) The income of ineligible household members must be 
 59.10  deemed after allowing the following disregards: 
 59.11     (1) the first 18 percent of the excluded family member's 
 59.12  gross earned income; 
 59.13     (2) amounts the ineligible person actually paid to 
 59.14  individuals not living in the same household but whom the 
 59.15  ineligible person claims as dependents for determining federal 
 59.16  personal income tax liability; 
 59.17     (3) child or spousal support paid to a person who lives 
 59.18  outside of the household; and 
 59.19     (4) an amount for the needs of other persons who live in 
 59.20  the household but are not included in the assistance unit and 
 59.21  are or could be claimed by an ineligible person as dependents 
 59.22  for determining federal personal income tax liability.  This 
 59.23  amount is equal to the difference between the MFIP-S need 
 59.24  standard when the excluded person is included in the assistance 
 59.25  unit and the MFIP-S need standard when the excluded person is 
 59.26  not included in the assistance unit. 
 59.27     Subd. 2.  [DEEMED INCOME OF SPONSOR OF NONCITIZENS.] (a) 
 59.28  All income of a sponsor, or sponsor's spouse, who executed an 
 59.29  affidavit of support for a noncitizen must be deemed to be 
 59.30  unearned income of the noncitizen as specified in the Personal 
 59.31  Responsibility and Work Opportunity Reconciliation Act of 1996 
 59.32  and any implementing regulations.  For purposes of this 
 59.33  subdivision "sponsor" means an individual or organization.  
 59.34     (b) The income of a sponsor who executed an affidavit of 
 59.35  support for a noncitizen prior to the promulgation of the 
 59.36  affidavit of support under the Personal Responsibility and Work 
 60.1   Opportunity Reconciliation Act of 1996, must be deemed to be 
 60.2   unearned income of the noncitizen after allowing the following 
 60.3   exclusions: 
 60.4      (1) 20 percent of the combined gross earned income of the 
 60.5   sponsor and the sponsor's spouse up to a maximum of $175 per 
 60.6   month; 
 60.7      (2) an amount for the needs of the sponsor, the sponsor's 
 60.8   spouse, and other individuals, living in the sponsor's home, who 
 60.9   could be claimed by the sponsor or the sponsor's spouse as 
 60.10  dependents for determining federal personal income tax 
 60.11  liability, which is equal to the MFIP-S need standard for a 
 60.12  comparable family unit; 
 60.13     (3) amounts the sponsor and the sponsor's spouse actually 
 60.14  paid to individuals not living in the same household but whom 
 60.15  the sponsor or the sponsor's spouse claim as dependents for 
 60.16  determining federal personal income tax liability; and 
 60.17     (4) child or spousal support paid by the sponsor or 
 60.18  sponsor's spouse to a person who lives outside of the sponsor's 
 60.19  household. 
 60.20     Subd. 3.  [EARNED INCOME OF WAGE, SALARY, AND CONTRACTUAL 
 60.21  EMPLOYEES.] The county agency must include gross earned income 
 60.22  less any disregards in the initial and monthly income test.  
 60.23  Gross earned income received by persons employed on a 
 60.24  contractual basis must be prorated over the period covered by 
 60.25  the contract even when payments are received over a lesser 
 60.26  period of time. 
 60.27     Subd. 4.  [SELF-EMPLOYMENT.] Self-employed individuals are 
 60.28  those who are responsible for their own work schedule and do not 
 60.29  have coverage under an employer's liability insurance or 
 60.30  workers' compensation.  Self-employed individuals generally work 
 60.31  for themselves rather than an employer.  However, individuals 
 60.32  employed in some types of services may be self-employed even if 
 60.33  they have an employer or work out of another's business 
 60.34  location.  For example, real estate sales people, individuals 
 60.35  who work for commission sales, manufacturer's representatives, 
 60.36  and independent contractors may be self-employed.  Self-employed 
 61.1   individuals may or may not have FICA deducted from the check 
 61.2   issued to them by an employer or another party. 
 61.3      Self-employed individuals may own a business singularly or 
 61.4   in partnership.  Individuals operating more than one 
 61.5   self-employment business may use the loss from one business to 
 61.6   offset self-employment income from another business.  A loss 
 61.7   from a self-employment business may not offset income earned 
 61.8   under subdivision 3. 
 61.9      Subd. 5.  [SELF-EMPLOYMENT EARNINGS.] (a) The county agency 
 61.10  must determine self-employment income as provided in this 
 61.11  paragraph. The county agency must subtract allowable business 
 61.12  expenses from total gross receipts.  Allowable business expenses 
 61.13  include: 
 61.14     (1) interest on mortgages and loans; 
 61.15     (2) employee wages, except for persons who are part of the 
 61.16  assistance unit or whose income is deemed to the participant; 
 61.17     (3) FICA funds paid on employees' wages, payment of 
 61.18  employee workers' compensation, and reemployment insurance; 
 61.19     (4) livestock and veterinary or breeding fees; 
 61.20     (5) raw material; 
 61.21     (6) seed and fertilizer; 
 61.22     (7) maintenance and repairs that are not capital 
 61.23  expenditures; 
 61.24     (8) tax return preparation fees; 
 61.25     (9) license fees, professional fees, franchise fees, and 
 61.26  professional dues; 
 61.27     (10) tools and supplies that are not capital expenditures; 
 61.28     (11) fuel and transportation expenses other than fuel costs 
 61.29  covered by the flat rate transportation deduction; 
 61.30     (12) advertising costs; 
 61.31     (13) meals eaten when required to be away from the local 
 61.32  work site; 
 61.33     (14) property expenses such as rent, insurance, taxes, and 
 61.34  utilities; 
 61.35     (15) postage; 
 61.36     (16) purchase cost of inventory at time of sale; 
 62.1      (17) loss from another self-employment business; 
 62.2      (18) attorney's fees allowed by the Internal Revenue 
 62.3   Service; and 
 62.4      (19) tuition for classes necessary to maintain or improve 
 62.5   job skills or required by law to maintain job status or salary 
 62.6   as allowed by the Internal Revenue Service. 
 62.7      (b) The county agency shall not allow a deduction for the 
 62.8   following expenses: 
 62.9      (1) purchases of capital assets; 
 62.10     (2) payments on the principals of loans for capital assets; 
 62.11     (3) depreciation; 
 62.12     (4) amortization; 
 62.13     (5) the wholesale costs of items purchased, processed, or 
 62.14  manufactured which are unsold inventory; 
 62.15     (6) transportation costs that exceed the maximum standard 
 62.16  mileage rate allowed for use of a personal car in the Internal 
 62.17  Revenue Code; 
 62.18     (7) costs, in any amount, for mileage between an 
 62.19  applicant's or participant's home and place of employment; 
 62.20     (8) salaries and other employment deductions made for 
 62.21  members of an assistance unit or persons who live in the 
 62.22  household for whom an employer is legally responsible; 
 62.23     (9) monthly expenses in excess of $71 for each roomer; 
 62.24     (10) monthly expenses in excess of the Thrifty Food Plan 
 62.25  amount for one person for each boarder.  For purposes of this 
 62.26  clause and clause (11), "Thrifty Food Plan" has the meaning 
 62.27  given it in Code of Federal Regulations. 
 62.28     (11) monthly expenses in excess of the roomer rate plus the 
 62.29  Thrifty Food Plan amount for one person for each 
 62.30  roomer-boarder.  If there is more than one boarder or 
 62.31  roomer-boarder, the total number of boarders must be used as the 
 62.32  unit size to determine the Thrifty Food Plan amount; 
 62.33     (12) an amount greater than actual expenses or two percent 
 62.34  of the estimated market value on a county tax assessment form, 
 62.35  whichever is greater, as a deduction for upkeep and repair 
 62.36  against rental income; 
 63.1      (13) expenses not allowed by the Internal Revenue Code; 
 63.2      (14) expenses in excess of 60 percent of gross receipts for 
 63.3   in-home child care unless a higher amount can be documented; and 
 63.4      (15) expenses that are reimbursed under the child and adult 
 63.5   care food program as authorized under the National School Lunch 
 63.6   Act, United States Code, title 42, section 1766. 
 63.7      Subd. 6.  [SELF-EMPLOYMENT BUDGET PERIOD.] The 
 63.8   self-employment budget period begins in the month of application 
 63.9   or in the first month of self-employment.  Gross receipts must 
 63.10  be budgeted in the month received.  Expenses must be budgeted 
 63.11  against gross receipts in the month the expenses are paid, 
 63.12  except for paragraphs (a) to (c). 
 63.13     (a) The purchase cost of inventory items, including 
 63.14  materials which are processed or manufactured, must be deducted 
 63.15  as an expense at the time payment is received for the sale of 
 63.16  the inventory items. 
 63.17     (b) A 12-month rolling average based on clauses (1) to (3) 
 63.18  must be used to budget monthly income. 
 63.19     (1) For a business in operation for at least 12 months, the 
 63.20  county agency shall use the average monthly self-employment 
 63.21  income from the most current income tax return for the taxable 
 63.22  year before the month of application.  The county agency shall 
 63.23  determine a new monthly average by adding in the actual 
 63.24  self-employment income and expenses from the previous month and 
 63.25  dropping the first month from the averaging period. 
 63.26     (2) For a business in operation for less than 12 months, 
 63.27  the county agency shall compute the average for the number of 
 63.28  months the business has been in operation to determine a monthly 
 63.29  average.  When data are available for 12 or more months, average 
 63.30  monthly self-employment income is determined under clause (1). 
 63.31     (3) If the business undergoes a major change, the county 
 63.32  agency shall compute a new rolling average beginning with the 
 63.33  first month of the major change.  For the purpose of this 
 63.34  clause, "major change" means a change that affects the nature 
 63.35  and scale of the business and is not merely the result of normal 
 63.36  business fluctuations. 
 64.1      (c) For seasonal self-employment, the participant may 
 64.2   choose whether to use actual income in the month of receipt and 
 64.3   expenses in the month incurred or the rolling average method of 
 64.4   computation.  The choice must be made once per year at the time 
 64.5   of application or recertification.  For the purpose of this 
 64.6   paragraph, seasonal means working six or less months per year. 
 64.7      Subd. 7.  [FARM INCOME.] Farm income is the difference 
 64.8   between gross receipts and operating expenses.  The county 
 64.9   agency must not allow a deduction for expenses listed in 
 64.10  subdivision 5, paragraph (b).  Gross receipts include sales, 
 64.11  rents, subsidies, soil conservation payments, production derived 
 64.12  from livestock, and income from home-produced food.  
 64.13     Subd. 8.  [RENTAL INCOME.] The county agency must treat 
 64.14  income from rental property as earned or unearned income.  
 64.15  Income from rental property is unearned income unless the 
 64.16  assistance unit spends an average of ten hours per week on 
 64.17  maintenance or management of the property.  When the owner 
 64.18  spends more than ten hours per week on maintenance or repairs, 
 64.19  the earnings are considered self-employment earnings.  An amount 
 64.20  must be deducted for upkeep and repairs, as limited by 
 64.21  subdivision 5, paragraph (b), clause (12), real estate taxes, 
 64.22  insurance, utilities, and interest on principal payments.  When 
 64.23  the applicant or participant lives on the rental property, 
 64.24  expenses for upkeep, taxes, insurance, utilities, and interest 
 64.25  must be divided by the number of rooms to determine expense per 
 64.26  room and expenses deducted must be deducted only for the number 
 64.27  of rooms rented. 
 64.28     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
 64.29  apply unearned income, including housing subsidies as specified 
 64.30  in paragraph (b), to the transitional standard.  When 
 64.31  determining the amount of unearned income, the county agency 
 64.32  must deduct the costs necessary to secure payments of unearned 
 64.33  income.  These costs include legal fees, medical fees, and 
 64.34  mandatory deductions such as federal and state income taxes. 
 64.35     (b) Effective January 1, 1998, the county agency shall 
 64.36  count $100 of the value of public and assisted rental subsidies 
 65.1   provided by the Department of Housing and Urban Development 
 65.2   (HUD) through state or local housing authorities, as unearned 
 65.3   income.  The full amount of the subsidy must be counted as 
 65.4   unearned income when the subsidy is less than $100. 
 65.5      Subd. 10.  [TREATMENT OF LUMP SUMS.] The county agency must 
 65.6   treat lump-sum payments as earned or unearned income.  If the 
 65.7   lump-sum payment is included in the category of income 
 65.8   identified in subdivision 9, it must be treated as unearned 
 65.9   income.  A lump sum is counted as income in the month received 
 65.10  and budgeted either prospectively or retrospectively depending 
 65.11  on the budget cycle at the time of receipt.  When an individual 
 65.12  receives a lump-sum payment, that lump sum must be combined with 
 65.13  all other earned and unearned income received in the same budget 
 65.14  month, and it must be applied according to paragraphs (a) to (c).
 65.15  A lump sum may not be carried over into subsequent months.  Any 
 65.16  funds that remain in the third month after the month of receipt 
 65.17  are counted in the asset limit. 
 65.18     (a) For a lump sum received by an applicant during the 
 65.19  first two months, prospective budgeting is used to determine the 
 65.20  payment and the lump sum must be combined with other earned or 
 65.21  unearned income received and budgeted in that prospective month. 
 65.22     (b) For a lump sum received by a participant after the 
 65.23  first two months of MFIP-S eligibility, the lump sum must be 
 65.24  combined with other income received in that budget month, and 
 65.25  the combined amount must be applied retrospectively against the 
 65.26  applicable payment month. 
 65.27     (c) When a lump sum, combined with other income under 
 65.28  paragraphs (a) and (b), is less than the transitional standard 
 65.29  for the applicable payment month, the assistance payment must be 
 65.30  reduced according to the amount of the countable income.  When 
 65.31  the countable income is greater than the transitional standard 
 65.32  or the family wage standard, the assistance payment must be 
 65.33  suspended for the payment month. 
 65.34     Sec. 27.  [256J.38] [CORRECTION OF OVERPAYMENTS AND 
 65.35  UNDERPAYMENTS.] 
 65.36     Subdivision 1.  [SCOPE OF OVERPAYMENT.] When a participant 
 66.1   or former participant receives an overpayment due to agency, 
 66.2   client, or ATM error, or due to assistance received while an 
 66.3   appeal is pending and the participant or former participant is 
 66.4   determined ineligible for assistance or for less assistance than 
 66.5   was received, the county agency must recoup or recover the 
 66.6   overpayment under the conditions of this section. 
 66.7      Subd. 2.  [NOTICE OF OVERPAYMENT.] When a county agency 
 66.8   discovers that a participant or former participant has received 
 66.9   an overpayment for one or more months, the county agency must 
 66.10  notify the participant or former participant of the overpayment 
 66.11  in writing.  A notice of overpayment must specify the reason for 
 66.12  the overpayment, the authority for citing the overpayment, the 
 66.13  time period in which the overpayment occurred, the amount of the 
 66.14  overpayment, and the participant's or former participant's right 
 66.15  to appeal.  No limit applies to the period in which the county 
 66.16  agency is required to recoup or recover an overpayment according 
 66.17  to subdivisions 3 and 4. 
 66.18     Subd. 3.  [RECOVERING OVERPAYMENTS FROM FORMER 
 66.19  PARTICIPANTS.] A county agency must initiate efforts to recover 
 66.20  overpayments paid to a former participant.  Adults and minor 
 66.21  caregivers of an assistance unit at the time an overpayment 
 66.22  occurs, whether receiving assistance or not, are jointly and 
 66.23  individually liable for repayment of the overpayment.  The 
 66.24  county agency must request repayment from the former 
 66.25  participants.  When an agreement for repayment is not completed 
 66.26  within six months of the date of discovery or when there is a 
 66.27  default on an agreement for repayment after six months, the 
 66.28  county agency must initiate recovery consistent with chapter 
 66.29  270A, or section 541.05.  When a person has been convicted of 
 66.30  fraud under section 256.98, recovery must be sought regardless 
 66.31  of the amount of overpayment.  When an overpayment is less than 
 66.32  $35, and is not the result of a fraud conviction under section 
 66.33  256.98, the county agency must not seek recovery under this 
 66.34  subdivision.  The county agency must retain information about 
 66.35  all overpayments regardless of the amount.  When an adult or 
 66.36  minor caregiver reapplies for assistance, the overpayment must 
 67.1   be recouped under subdivision 4. 
 67.2      Subd. 4.  [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 
 67.3   participant may voluntarily repay, in part or in full, an 
 67.4   overpayment even if assistance is reduced under this 
 67.5   subdivision, until the total amount of the overpayment is 
 67.6   repaid.  When an overpayment occurs, the county agency must 
 67.7   recover ten percent of the transitional standard or the amount 
 67.8   of the monthly assistance payment, whichever is less.  
 67.9      Subd. 5.  [RECOVERING AUTOMATIC TELLER MACHINE ERRORS.] For 
 67.10  recipients receiving benefits via electronic benefit transfer, 
 67.11  if the overpayment is a result of an ATM dispensing funds in 
 67.12  error to the recipient, the agency may recover the ATM error by 
 67.13  immediately withdrawing funds from the recipient's electronic 
 67.14  benefit transfer account, up to the amount of the error. 
 67.15     Subd. 6.  [SCOPE OF UNDERPAYMENTS.] A county agency must 
 67.16  issue a corrective payment for underpayments made to a 
 67.17  participant or to a person who would be a participant if an 
 67.18  agency or client error causing the underpayment had not occurred.
 67.19  The county agency must issue the corrective payment according to 
 67.20  subdivision 8. 
 67.21     Subd. 7.  [IDENTIFYING THE UNDERPAYMENT.] An underpayment 
 67.22  may be identified by a county agency, by a participant, by a 
 67.23  former participant, or by a person who would be a participant 
 67.24  except for agency or client error. 
 67.25     Subd. 8.  [ISSUING CORRECTIVE PAYMENTS.] A county agency 
 67.26  must correct an underpayment within seven calendar days after 
 67.27  the underpayment has been identified, by adding the corrective 
 67.28  payment amount to the monthly assistance payment of the 
 67.29  participant or by issuing a separate payment to a participant or 
 67.30  former participant, or by reducing an existing overpayment 
 67.31  balance.  When an underpayment occurs in a payment month and is 
 67.32  not identified until the next payment month or later, the county 
 67.33  agency must first subtract the underpayment from any overpayment 
 67.34  balance before issuing the corrective payment.  The county 
 67.35  agency must not apply an underpayment in a current payment month 
 67.36  against an overpayment balance.  When an underpayment in the 
 68.1   current payment month is identified, the corrective payment must 
 68.2   be issued within seven calendar days after the underpayment is 
 68.3   identified. 
 68.4      Subd. 9.  [APPEALS.] A participant may appeal an 
 68.5   underpayment, an overpayment, and a reduction in an assistance 
 68.6   payment made to recoup the overpayment under subdivision 4.  The 
 68.7   participant's appeal of each issue must be timely under section 
 68.8   256.045.  When an appeal based on the notice issued under 
 68.9   subdivision 2 is not timely, the fact or the amount of that 
 68.10  overpayment must not be considered as a part of a later appeal, 
 68.11  including an appeal of a reduction in an assistance payment to 
 68.12  recoup that overpayment. 
 68.13     Sec. 28.  [256J.39] [PAYMENT PROVISIONS; VENDOR PAYMENTS.] 
 68.14     Subdivision 1.  [PAYMENT POLICY.] The following policies 
 68.15  apply to monthly assistance payments and corrective payments: 
 68.16     (1) Grant payments may be issued in the form of warrants 
 68.17  immediately redeemable in cash, electronic benefits transfer, or 
 68.18  by direct deposit into the recipient's account in a financial 
 68.19  institution. 
 68.20     (2) The commissioner shall mail assistance payment checks 
 68.21  to the address where a caregiver lives unless the county agency 
 68.22  approves an alternate arrangement. 
 68.23     (3) The commissioner shall mail monthly assistance payment 
 68.24  checks within time to allow postal service delivery to occur no 
 68.25  later than the first day of each month.  Monthly assistance 
 68.26  payment checks must be dated the first day of the month.  The 
 68.27  commissioner shall issue electronic benefits transfer payments 
 68.28  so that caregivers have access to the payments no later than the 
 68.29  first of the month.  
 68.30     (4) The commissioner shall issue replacement checks 
 68.31  promptly, but no later than seven calendar days after the 
 68.32  provisions of sections 16A.46; 256.01, subdivision 11; and 
 68.33  471.415 have been met. 
 68.34     Subd. 2.  [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 
 68.35  paying assistance directly to a participant may be used when: 
 68.36     (1) a county agency determines that a vendor payment is the 
 69.1   most effective way to resolve an emergency situation pertaining 
 69.2   to basic needs; 
 69.3      (2) a caregiver makes a written request to the county 
 69.4   agency asking that part or all of the assistance payment be 
 69.5   issued by protective or vendor payments for shelter and utility 
 69.6   service only.  The caregiver may withdraw this request in 
 69.7   writing at any time; 
 69.8      (3) a caregiver has exhibited a continuing pattern of 
 69.9   mismanaging funds as determined by the county agency; 
 69.10     (4) the vendor payment is part of a sanction under section 
 69.11  256J.46, subdivision 2; or 
 69.12     (5) the vendor payment is required under section 256J.24 or 
 69.13  256J.43. 
 69.14     The director of a county agency must approve a proposal for 
 69.15  protective or vendor payment for money mismanagement.  During 
 69.16  the time a protective or vendor payment is being made, the 
 69.17  county agency must provide services designed to alleviate the 
 69.18  causes of the mismanagement. 
 69.19     The continuing need for and method of payment must be 
 69.20  documented and reviewed every 12 months.  The director of a 
 69.21  county agency must approve the continuation of protective or 
 69.22  vendor payments. 
 69.23     When it appears that the need for protective or vendor 
 69.24  payments will continue or is likely to continue beyond two years 
 69.25  because the county agency's efforts have not resulted in 
 69.26  sufficiently improved use of assistance on behalf of the minor 
 69.27  child, judicial appointment of a legal guardian or other legal 
 69.28  representative must be sought by the county agency.  
 69.29     Subd. 3.  [CHOOSING PAYEES FOR PROTECTIVE OR VENDOR 
 69.30  PAYMENTS.] A county agency shall consult with a caregiver 
 69.31  regarding the selection of the form of payment, the selection of 
 69.32  a protective payee, and the distribution of the assistance 
 69.33  payment to meet the various costs incurred by the assistance 
 69.34  unit.  When choosing a protective payee, the county agency shall 
 69.35  notify the caregiver of a consultation date.  If the caregiver 
 69.36  fails to respond to the county agency's request for consultation 
 70.1   by the effective date on the notice, the county agency must 
 70.2   choose a protective payee for that payment month and subsequent 
 70.3   payment months until the caregiver responds to the agency's 
 70.4   request for consultation.  The county agency must notify the 
 70.5   caregiver of the right to appeal the determination that a 
 70.6   protective or vendor payment should be made or continued and to 
 70.7   appeal the selection of the payee.  If a county agency is not 
 70.8   able to find another protective payee, a county agency staff 
 70.9   member may serve as a protective payee.  The following persons 
 70.10  may not serve as protective payees:  a member of the county 
 70.11  board of commissioners; the county agency staff member 
 70.12  determining financial eligibility for the family; special 
 70.13  investigative or resource staff; the staff member handling 
 70.14  accounting or fiscal processes related to the participant; or a 
 70.15  landlord, grocer, or other vendor dealing directly with the 
 70.16  participant. 
 70.17     Subd. 4.  [DISCONTINUING PROTECTIVE OR VENDOR PAYMENTS.] A 
 70.18  county agency shall discontinue protective or vendor payments in 
 70.19  two years or in the month following the county agency's failure 
 70.20  to grant six-month approval to a money management plan, 
 70.21  whichever occurs first.  At least once every 12 months, a county 
 70.22  agency shall review the performance of a protective payee acting 
 70.23  under subdivision 2, clause (3), to determine whether a new 
 70.24  payee should be selected.  When a participant complains about 
 70.25  the performance of a protective payee, a review shall occur 
 70.26  within 30 calendar days. 
 70.27     Sec. 29.  [256J.395] [VENDOR PAYMENT OF RENT AND 
 70.28  UTILITIES.] 
 70.29     (a) When a county is required to provide assistance to a 
 70.30  recipient in vendor form for rent and utilities under chapter 
 70.31  256, 256D, 256J, or 256K, the cost of utilities for a given 
 70.32  family may be assumed to be: 
 70.33     (1) the average of the actual monthly cost of utilities for 
 70.34  that family for the prior 12 months at the family's current 
 70.35  residence, if applicable; 
 70.36     (2) the monthly plan amount, if any, set by the local 
 71.1   utilities for that family at the family's current residence; or 
 71.2      (3) the estimated monthly utility costs for the dwelling in 
 71.3   which the family currently resides. 
 71.4      (b) For purposes of this section, "utility" means any of 
 71.5   the following:  municipal water and sewer service; electric, 
 71.6   gas, or heating fuel service; or wood, if that is the heating 
 71.7   source. 
 71.8      This section is effective July 1, 1997. 
 71.9      Sec. 30.  [256J.40] [FAIR HEARINGS.] 
 71.10     Caregivers receiving a notice of intent to sanction or a 
 71.11  notice of adverse action that includes a sanction, reduction in 
 71.12  benefits, suspension of benefits, denial of benefits, or 
 71.13  termination of benefits may request a fair hearing.  A request 
 71.14  for a fair hearing must be submitted in writing to the county 
 71.15  agency or to the commissioner and must be mailed within 30 days 
 71.16  after a participant or former participant receives written 
 71.17  notice of the agency's action or within 90 days when a 
 71.18  participant or former participant shows good cause for not 
 71.19  submitting the request within 30 days.  A former participant who 
 71.20  receives a notice of adverse action due to an overpayment may 
 71.21  appeal the adverse action according to the requirements in this 
 71.22  section.  Issues that may be appealed are: 
 71.23     (1) the amount of the assistance payment; 
 71.24     (2) a suspension, reduction, denial, or termination of 
 71.25  assistance; 
 71.26     (3) the basis for an overpayment, the calculated amount of 
 71.27  an overpayment, and the level of recoupment; 
 71.28     (4) the eligibility for an assistance payment; and 
 71.29     (5) the use of protective or vendor payments under section 
 71.30  256J.39, subdivision 2, clauses (1) and (3). 
 71.31     A county agency must not reduce, suspend, or terminate 
 71.32  payment when an aggrieved participant requests a fair hearing 
 71.33  prior to the effective date of the adverse action or within ten 
 71.34  days of the mailing of the notice of adverse action, whichever 
 71.35  is later, unless the participant requests in writing not to 
 71.36  receive continued assistance pending a hearing decision.  
 72.1   Assistance issued pending a fair hearing is subject to recovery 
 72.2   under section 256J.38 when as a result of the fair hearing 
 72.3   decision the participant is determined ineligible for assistance 
 72.4   or the amount of the assistance received.  A county agency may 
 72.5   increase or reduce an assistance payment while an appeal is 
 72.6   pending when the circumstances of the participant change and are 
 72.7   not related to the issue on appeal.  The commissioner's order is 
 72.8   binding on a county agency.  No additional notice is required to 
 72.9   enforce the commissioner's order. 
 72.10     A county agency shall reimburse appellants for reasonable 
 72.11  and necessary expenses of attendance at the hearing, such as 
 72.12  child care and transportation costs and for the transportation 
 72.13  expenses of the appellant's witnesses and representatives to and 
 72.14  from the hearing.  Reasonable and necessary expenses do not 
 72.15  include legal fees.  Fair hearings must be conducted at a 
 72.16  reasonable time and date by an impartial referee employed by the 
 72.17  department.  The hearing may be conducted by telephone or at a 
 72.18  site that is readily accessible to persons with disabilities. 
 72.19     The appellant may introduce new or additional evidence 
 72.20  relevant to the issues on appeal.  Recommendations of the 
 72.21  appeals referee and decisions of the commissioner must be based 
 72.22  on evidence in the hearing record and are not limited to a 
 72.23  review of the county agency action.  
 72.24     Sec. 31.  [256J.42] [60-MONTH TIME LIMIT.] 
 72.25     Subdivision 1.  [TIME LIMIT.] (a) An assistance unit in 
 72.26  which any adult caregiver has received 60 months of cash 
 72.27  assistance funded in whole or in part by the TANF block grant, 
 72.28  or MFIP-S assistance funded in whole or in part by state 
 72.29  appropriations, is ineligible to receive MFIP-S.  Any cash 
 72.30  assistance funded with TANF dollars, or MFIP-S assistance funded 
 72.31  in whole or in part by state appropriations, that was received 
 72.32  by the unit on or after the date TANF was implemented, including 
 72.33  any assistance received in states of prior residence, counts 
 72.34  toward the 60-month limitation.  The 60-month limit applies to a 
 72.35  minor who is the head of a household or who is married to the 
 72.36  head of a household.  The 60-month time period does not need to 
 73.1   be consecutive months for this provision to apply.  
 73.2      (b) Months before July 1998 in which individuals receive 
 73.3   assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R 
 73.4   comparison group family under sections 256.031 to 256.0361 or 
 73.5   sections 256.047 to 256.048 are not included in the 60-month 
 73.6   time limit. 
 73.7      Subd. 2.  [ASSISTANCE FROM ANOTHER STATE.] An individual is 
 73.8   ineligible to receive MFIP-S assistance in any month during 
 73.9   which that individual received benefits from another state under 
 73.10  the temporary assistance to needy families block grant 
 73.11  authorized by Title I of Public Law Number 104-193. 
 73.12     Subd. 3.  [ADULTS LIVING ON AN INDIAN RESERVATION.] In 
 73.13  determining the number of months for which an adult has received 
 73.14  assistance under MFIP-S, the county agency must disregard any 
 73.15  month during which the adult lived on an Indian reservation if, 
 73.16  during the month:  
 73.17     (1) at least 1,000 individuals were living on the 
 73.18  reservation; and 
 73.19     (2) at least 50 percent of the adults living on the 
 73.20  reservation were unemployed. 
 73.21     Subd. 4.  [VICTIMS OF DOMESTIC VIOLENCE.] Any cash 
 73.22  assistance received by an assistance unit in a month when a 
 73.23  caregiver is complying with a safety plan under the MFIP-S 
 73.24  employment and training component does not count toward the 
 73.25  60-month limitation on assistance. 
 73.26     Sec. 32.  [256J.43] [INTERSTATE PAYMENT STANDARDS.] 
 73.27     (a) Effective July 1, 1997, the amount of assistance paid 
 73.28  to an eligible family in which all members have resided in this 
 73.29  state for fewer than 12 calendar months shall be the lesser of 
 73.30  either the payment standard that would have been received by the 
 73.31  family from the state of immediate prior residence, or the 
 73.32  amount calculated in accordance with AFDC or MFIP-S standards.  
 73.33  The lesser payment must continue until the family meets the 
 73.34  12-month requirement.  Payment must be calculated by applying 
 73.35  this state's budgeting policies, and the unit's net income must 
 73.36  be deducted from the payment standard in the other state or in 
 74.1   this state, whichever is lower.  Payment shall be made in vendor 
 74.2   form for rent and utilities, up to the limit of the grant 
 74.3   amount, and residual amounts, if any, shall be paid directly to 
 74.4   the assistance unit. 
 74.5      (b) During the first 12 months a family resides in this 
 74.6   state, the number of months that a family is eligible to receive 
 74.7   AFDC or MFIP-S benefits is limited to the number of months the 
 74.8   family would have been eligible to receive similar benefits in 
 74.9   the state of immediate prior residence. 
 74.10     (c) This policy applies whether or not the family received 
 74.11  similar benefits while residing in the state of previous 
 74.12  residence. 
 74.13     (d) When a family moves to this state from another state 
 74.14  where the family has exhausted that state's time limit for 
 74.15  receiving benefits under that state's TANF program, the family 
 74.16  will not be eligible to receive any AFDC or MFIP-S benefits in 
 74.17  this state for 12 months from the date the family moves here. 
 74.18     (e) For the purposes of this section, "state of immediate 
 74.19  prior residence" means: 
 74.20     (1) the state in which the applicant declares the applicant 
 74.21  spent the most time in the 30 days prior to moving to this 
 74.22  state; or 
 74.23     (2) the state in which an applicant who is a migrant worker 
 74.24  maintains a home. 
 74.25     (f) The commissioner shall annually verify and update all 
 74.26  other states' payment standards as they are to be in effect in 
 74.27  July of each year. 
 74.28     (g) Applicants must provide verification of their state of 
 74.29  immediate prior residence, in the form of tax statements, a 
 74.30  driver's license, automobile registration, rent receipts, or 
 74.31  other forms of verification approved by the commissioner. 
 74.32     Sec. 33.  [256J.44] [INITIAL SCREENING OF MFIP-S 
 74.33  APPLICANT.] 
 74.34     Subdivision 1.  [SCREENING.] The county agency, or at 
 74.35  county option, the county's employment and training service 
 74.36  provider as defined in section 256J.49, must screen each 
 75.1   applicant to determine immediate needs and to determine if the 
 75.2   applicant may be eligible for: 
 75.3      (1) another program that is not partially funded through 
 75.4   the federal temporary assistance to needy families block grant 
 75.5   under title I of Public Law Number 104-193, including the 
 75.6   expedited issuance of food stamps under section 256J.28, 
 75.7   subdivision 1.  If the applicant may be eligible for another 
 75.8   program, a county caseworker must provide the appropriate 
 75.9   referral to the program; 
 75.10     (2) the diversionary assistance program under section 
 75.11  256J.47; or 
 75.12     (3) the emergency assistance program under section 256J.48. 
 75.13     The applicant is required to attend the screening.  If the 
 75.14  applicant is not diverted from applying for MFIP-S under clauses 
 75.15  (1) to (3), and if the applicant meets the MFIP-S eligibility 
 75.16  requirements, then an orientation under section 256J.45 and an 
 75.17  initial assessment under section 256J.52 must be completed; or, 
 75.18  in the case of caregivers who are under the age of 20, a plan 
 75.19  under section 256J.54 must be completed. 
 75.20     Subd. 2.  [SUPPORT SERVICES TO ATTEND SCREENING AND 
 75.21  ORIENTATION.] Upon a caregiver's request, the county agency must 
 75.22  arrange for transportation and child care or reimburse 
 75.23  caregivers for transportation and child care expenses necessary 
 75.24  to enable caregivers to attend the initial screening under this 
 75.25  section and the orientation under section 256J.45 if scheduled 
 75.26  on a day other than when the caregiver makes application for 
 75.27  assistance. 
 75.28     Sec. 34.  [256J.45] [ORIENTATION.] 
 75.29     Subdivision 1.  [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 
 75.30  county agency must provide each MFIP-S caregiver with a 
 75.31  face-to-face orientation.  The caregiver must attend the 
 75.32  orientation.  
 75.33     Subd. 2.  [GENERAL INFORMATION.] The MFIP-S orientation 
 75.34  must consist of a presentation that informs caregivers of: 
 75.35     (1) the necessity to obtain immediate employment; 
 75.36     (2) the work incentives under MFIP-S; 
 76.1      (3) the requirement to comply with the employment plan and 
 76.2   other requirements of the employment and training services 
 76.3   component of MFIP-S; 
 76.4      (4) the consequences for failing to comply with the 
 76.5   employment plan and other program requirements; 
 76.6      (5) the rights, responsibilities, and obligations of 
 76.7   participants; 
 76.8      (6) the types and locations of child care services 
 76.9   available through the county agency; 
 76.10     (7) the availability and the benefits of the early 
 76.11  childhood health and developmental screening under sections 
 76.12  123.701 to 123.74; 
 76.13     (8) the caregiver's eligibility for transition year child 
 76.14  care assistance under section 119B.05; 
 76.15     (9) the caregiver's eligibility for extended medical 
 76.16  assistance when the caregiver loses eligibility for MFIP-S due 
 76.17  to increased earnings or increased child or spousal support; and 
 76.18     (10) the caregiver's option to choose an employment and 
 76.19  training provider and information about each provider, including 
 76.20  but not limited to, services offered, program components, job 
 76.21  placement rates, job placement wages, and job retention rates. 
 76.22     Sec. 35. [256J.46] [SANCTIONS.] 
 76.23     Subdivision 1.  [SANCTIONS FOR REFUSAL TO COOPERATE WITH 
 76.24  SUPPORT REQUIREMENTS.] The grant of an MFIP-S caregiver who 
 76.25  refuses to cooperate, as determined by the child support 
 76.26  enforcement agency, with support requirements under section 
 76.27  256J.30, must be reduced by 25 percent, and the assistance 
 76.28  unit's rent and utilities, if any, shall be vendor paid up to 
 76.29  the amount of the reduced MFIP-S grant.  The residual amount of 
 76.30  the grant, if any, must be paid to the caregiver.  A sanction 
 76.31  under this subdivision becomes effective ten days after the 
 76.32  required notice is given.  The sanction must be in effect for a 
 76.33  minimum of one month, and shall be removed only when the 
 76.34  caregiver cooperates with the support requirements.  For 
 76.35  purposes of this subdivision, each month that a participant 
 76.36  fails to comply with a requirement of section 256J.30 shall be 
 77.1   considered a separate occurrence of noncompliance.  A 
 77.2   participant who has had one or more sanctions imposed must 
 77.3   remain in compliance with the provisions of this chapter for 12 
 77.4   months in order for a subsequent sanction to be considered a 
 77.5   first occurrence.  A sanction under this subdivision is not 
 77.6   subject to the notice and supervisory review requirements of 
 77.7   section 256J.57, subdivision 2.  
 77.8      Subd. 1a.  [TRANSITIONAL RULE; SANCTIONS FOR AFDC, FAMILY 
 77.9   GA, STRIDE, ACCESS, MFIP, OR MFIP-R RECIPIENTS.] For purposes of 
 77.10  determining a sanction under subdivision 2, a recipient of 
 77.11  assistance under AFDC, family general assistance, STRIDE, 
 77.12  ACCESS, MFIP, or MFIP-R, who was under a sanction in the month 
 77.13  immediately preceding the receipt of assistance under MFIP-S 
 77.14  shall be considered as having one occurrence of failure to 
 77.15  comply.  A recipient of assistance under AFDC, family general 
 77.16  assistance, STRIDE, ACCESS, MFIP, or MFIP-R, who was under a 
 77.17  sanction in each of the two months immediately preceding the 
 77.18  receipt of assistance under MFIP-S shall be considered as having 
 77.19  two occurrences of failure to comply.  The provisions of section 
 77.20  256J.57 do not apply to sanctions imposed under AFDC, family 
 77.21  general assistance, project STRIDE, ACCESS, MFIP, or MFIP-R. 
 77.22     Subd. 2.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING WITH 
 77.23  PROGRAM REQUIREMENTS.] (a) A participant who fails without good 
 77.24  cause to comply with the requirements of this chapter other than 
 77.25  section 256J.30 shall be subject to a sanction consisting of 
 77.26  reduced MFIP-S assistance as provided in this subdivision.  A 
 77.27  sanction under this subdivision becomes effective ten days after 
 77.28  the required notice is given.  For purposes of this subdivision, 
 77.29  each month that a participant fails to comply with a requirement 
 77.30  of this chapter shall be considered a separate occurrence of 
 77.31  noncompliance.  A participant who has had one or more sanctions 
 77.32  imposed must remain in compliance with the provisions of this 
 77.33  chapter for 12 months in order for a subsequent sanction to be 
 77.34  considered a first occurrence.  
 77.35     (b) Sanctions for noncompliance shall be imposed as 
 77.36  follows, provided the participant is not subject to sanction 
 78.1   under subdivision 1: 
 78.2      (1) For the first occurrence of failure to comply, a 
 78.3   participant's rent and utilities, if any, shall be vendor paid 
 78.4   up to the amount of the MFIP-S grant for which the participant's 
 78.5   assistance unit is eligible.  The residual amount of the grant 
 78.6   after vendor payment, if any, must be reduced by an amount equal 
 78.7   to 25 percent of the applicable transitional standard before it 
 78.8   is paid to the participant.  If the assistance unit is a 
 78.9   two-parent family and both parents are in noncompliance under 
 78.10  this subdivision, the residual amount of the grant, if any, must 
 78.11  be reduced by an additional five percent of the applicable 
 78.12  transitional standard before it is paid to the participant.  The 
 78.13  sanction must be in effect for a minimum of one month, and shall 
 78.14  be removed only when the participant is in compliance.  If the 
 78.15  participant is not paying rent and utilities, the county may opt 
 78.16  to vendor pay other expenses for basic needs, after applying the 
 78.17  required 25 percent reduction. 
 78.18     (2) For a second occurrence, the participant's rent and 
 78.19  utilities, if any, shall be vendor paid up to the amount of the 
 78.20  MFIP-S grant for which the participant's assistance unit is 
 78.21  eligible.  The residual amount of the grant after vendor 
 78.22  payment, if any, must be reduced by an amount equal to 35 
 78.23  percent of the applicable transitional standard before the 
 78.24  residual is paid to the participant.  If the assistance unit is 
 78.25  a two-parent family and both parents are in noncompliance under 
 78.26  this subdivision, the residual amount of the grant, if any, must 
 78.27  be reduced by an additional five percent of the applicable 
 78.28  transitional standard before it is paid to the participant.  The 
 78.29  sanction must be in effect for a minimum of one month, and shall 
 78.30  be removed only when the participant is in compliance.  If the 
 78.31  participant is not paying rent and utilities, the county may opt 
 78.32  to vendor pay other expenses for basic needs, after applying the 
 78.33  required 35 percent reduction. 
 78.34     (3) For a third or subsequent occurrence, the assistance 
 78.35  unit's grant must be reduced by an amount equal to 50 percent of 
 78.36  the applicable transitional standard before the residual is paid 
 79.1   to the participant.  If the assistance unit is a two-parent 
 79.2   family and both parents are in noncompliance under this 
 79.3   subdivision, the residual amount of the grant, if any, must be 
 79.4   reduced by an additional five percent of the applicable 
 79.5   transitional standard before it is paid to the participant.  The 
 79.6   sanction must be in effect for a minimum of one month, and shall 
 79.7   be removed only when the participant is in compliance. 
 79.8      Subd. 2a.  [DUAL SANCTIONS.] (a) Notwithstanding the 
 79.9   provisions of subdivision 2, for a participant subject to the 
 79.10  following sanctions concurrently: 
 79.11     (1) a sanction for refusal to cooperate with child support 
 79.12  requirements under subdivision 1; and 
 79.13     (2) a sanction for refusal to cooperate with other program 
 79.14  requirements, sanctions shall be imposed in the order and in the 
 79.15  manner prescribed in this subdivision, the participant's grant 
 79.16  must be reduced by 25 percent, and the assistance unit's rent 
 79.17  and utilities shall be vendor paid up to the amount of the 
 79.18  reduced grant, as provided in subdivision 1.  The residual 
 79.19  amount of the grant after vendor payment, if any, must be 
 79.20  reduced by ten percent of the applicable transitional standard 
 79.21  before it is paid to the participant.  If the assistance unit is 
 79.22  a two-parent family and both parents are in noncompliance under 
 79.23  this subdivision, the residual amount of the grant, if any, must 
 79.24  be reduced by an additional five percent of the applicable 
 79.25  transitional standard before it is paid to the participant.  The 
 79.26  sanction must be in effect for a minimum of one month, and shall 
 79.27  be removed only when the participant is in compliance. 
 79.28     (b) Notwithstanding paragraph (a), for a participant 
 79.29  subject to the following sanctions concurrently: 
 79.30     (1) a sanction for refusal to cooperate with child support 
 79.31  requirements under subdivision 1; and 
 79.32     (2) sanctions for at least three occurrences of failure to 
 79.33  comply with other program requirements, the assistance unit's 
 79.34  grant must be reduced by an amount equal to 50 percent of the 
 79.35  MFIP-S grant for which the participant's assistance unit is 
 79.36  eligible.  The sanction must be in effect for a minimum of one 
 80.1   month, and shall be removed only when the participant is in 
 80.2   compliance. 
 80.3      Subd. 3.  [EXCEPTIONS DUE TO LACK OF DAY CARE.] 
 80.4   Notwithstanding subdivision 2, the county agency may not reduce 
 80.5   or terminate MFIP-S assistance based on a refusal of a 
 80.6   participant to comply with the requirements of the employment 
 80.7   and training component of MFIP-S if the participant is a single 
 80.8   custodial parent caring for a child who has not attained six 
 80.9   years of age, and the participant has a demonstrated inability, 
 80.10  as determined by the county agency, to obtain needed child care, 
 80.11  for one or more of the following reasons: 
 80.12     (1) unavailability of appropriate child care within a 
 80.13  reasonable distance from the participant's home or work site; 
 80.14     (2) unavailability or unsuitability of informal child care 
 80.15  by a relative or under other arrangements; or 
 80.16     (3) unavailability of appropriate and affordable formal 
 80.17  child care arrangements. 
 80.18     Sec. 36.  [256J.47] [DIVERSIONARY ASSISTANCE PROGRAM.] 
 80.19     Subdivision 1.  [ELIGIBILITY.] A family is eligible to 
 80.20  receive diversionary assistance once every 36 months if: 
 80.21     (1) a family member has resided in this state for at least 
 80.22  30 days; 
 80.23     (2) the caregiver provides verification that the caregiver 
 80.24  has either experienced an unexpected occurrence that makes it 
 80.25  impossible to retain or obtain employment or the caregiver has a 
 80.26  temporary loss of income, which is not due to refusing to accept 
 80.27  or terminating suitable employment as defined in section 
 80.28  256J.49, without good cause, resulting in an emergency; 
 80.29     (3) the caregiver is at risk of MFIP-S eligibility if 
 80.30  diversionary assistance is not provided and household income is 
 80.31  below 140 percent of the federal poverty guidelines; and 
 80.32     (4) the diversionary assistance will resolve the emergency 
 80.33  and divert the family from applying for MFIP-S. 
 80.34     For purposes of this section, diversionary assistance means 
 80.35  a one-time lump-sum payment to an individual or third-party 
 80.36  vendor to prevent long-term receipt of public assistance. 
 81.1      Subd. 2.  [COUNTY AGENCY DUTIES.] County agencies shall: 
 81.2      (1) thoroughly explain to the caregiver the consequences of 
 81.3   receiving diversionary assistance, specifically the resulting 
 81.4   period of ineligibility under subdivision 4 for other assistance 
 81.5   programs; 
 81.6      (2) determine eligibility for diversionary assistance 
 81.7   within five working days of the receipt of the verification 
 81.8   required under subdivision 1; and 
 81.9      (3) verify all information as necessary. 
 81.10     Subd. 3.  [MAXIMUM AMOUNT OF ASSISTANCE.] The maximum 
 81.11  amount of diversionary assistance that may be provided to a 
 81.12  family is equal to the amount of the MFIP-S standard for the 
 81.13  same family size and composition for four months.  The 
 81.14  assistance provided under this program must be based on the 
 81.15  immediate needs of the family.  Counties must strive to provide 
 81.16  the most cost-effective solution to the one-time emergency.  
 81.17  Diversionary assistance is not cost effective if the family's 
 81.18  anticipated income added to the diversion payment will not be 
 81.19  sufficient to cover the family's immediate needs for the period 
 81.20  of ineligibility under subdivision 4, beginning with the month 
 81.21  of application, or another emergency can reasonably be 
 81.22  anticipated within the period of ineligibility. 
 81.23     Subd. 4.  [INELIGIBILITY FOR MFIP-S; EMERGENCY ASSISTANCE; 
 81.24  AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of diversionary 
 81.25  assistance, the family is ineligible for MFIP-S, emergency 
 81.26  assistance, and emergency general assistance for a period of 
 81.27  time.  To determine the period of ineligibility, the county 
 81.28  shall use the following formula:  regardless of household 
 81.29  changes, the county agency must calculate the number of days of 
 81.30  ineligibility by dividing the diversionary assistance issued by 
 81.31  the maximum monthly amount a family of the same size and 
 81.32  composition would have received under MFIP-S, multiplied by 30, 
 81.33  truncating the result.  The ineligibility period begins the date 
 81.34  the diversionary assistance is issued. 
 81.35     Subd. 5.  [DIVERSIONARY ASSISTANCE GRANT; FUNDING] The 
 81.36  commissioner shall distribute diversionary assistance grants to 
 82.1   counties.  The commissioner may use federal block grant funding 
 82.2   or state funding for the grants. 
 82.3      Sec. 37.  [256J.48] [EMERGENCY ASSISTANCE (EA).] 
 82.4      Subdivision 1.  [EMERGENCY FINANCIAL ASSISTANCE.] County 
 82.5   human service agencies shall grant emergency financial 
 82.6   assistance to any needy pregnant woman or needy family with a 
 82.7   child under the age of 21 who is or was within six months prior 
 82.8   to application living with an eligible caregiver relative 
 82.9   specified in section 256J.08. 
 82.10     Except for ongoing special diets, emergency assistance is 
 82.11  available to a family during one 30-day period in a consecutive 
 82.12  12-month period.  A county shall issue assistance for needs that 
 82.13  accrue before that 30-day period only when it is necessary to 
 82.14  resolve emergencies arising or continuing during the 30-day 
 82.15  period of eligibility.  When emergency needs continue, a county 
 82.16  may issue assistance for up to 30 days beyond the initial 30-day 
 82.17  period of eligibility, but only when assistance is authorized 
 82.18  during the initial period. 
 82.19     Subd. 2.  [ELIGIBILITY.] Notwithstanding other eligibility 
 82.20  provisions of this chapter, any family without resources 
 82.21  immediately available to meet emergency needs identified in 
 82.22  subdivision 3 shall be eligible for an emergency grant under the 
 82.23  following conditions: 
 82.24     (1) a family member has resided in this state for at least 
 82.25  30 days; 
 82.26     (2) the family is without resources immediately available 
 82.27  to meet emergency needs; 
 82.28     (3) assistance is necessary to avoid destitution or provide 
 82.29  emergency shelter arrangements; and 
 82.30     (4) the family's destitution or need for shelter or 
 82.31  utilities did not arise because the child or relative caregiver 
 82.32  refused without good cause to accept employment or training for 
 82.33  employment in another state. 
 82.34     Subd. 3.  [EMERGENCY NEEDS.] Emergency needs are limited to 
 82.35  the following: 
 82.36     (a) [RENT.] A county agency may deny assistance to prevent 
 83.1   eviction from rented or leased shelter of an otherwise eligible 
 83.2   applicant when the county agency determines that an applicant's 
 83.3   anticipated income will not cover continued payment for shelter, 
 83.4   subject to conditions in clauses (1) to (3): 
 83.5      (1) a county agency must not deny assistance when an 
 83.6   applicant can document that the applicant is unable to locate 
 83.7   habitable shelter, unless the county agency can document that 
 83.8   one or more habitable shelters are available in the community 
 83.9   that will result in at least a 20 percent reduction in monthly 
 83.10  expense for shelter and that this shelter will be cost-effective 
 83.11  for the applicant; 
 83.12     (2) when no alternative shelter can be identified by either 
 83.13  the applicant or the county agency, the county agency shall not 
 83.14  deny assistance because anticipated income will not cover rental 
 83.15  obligation; and 
 83.16     (3) when cost-effective alternative shelter is identified, 
 83.17  the county agency shall issue assistance for moving expenses as 
 83.18  provided in paragraph (d). 
 83.19     (b) [DEFINITIONS.] For purposes of paragraph (a), the 
 83.20  following definitions apply (1) "metropolitan statistical area" 
 83.21  is as defined by the U.S. Census Bureau; (2) "alternative 
 83.22  shelter" includes any shelter that is located within the 
 83.23  metropolitan statistical area containing the county and for 
 83.24  which the applicant is eligible, provided the applicant does not 
 83.25  have to travel more than 20 miles to reach the shelter and has 
 83.26  access to transportation to the shelter.  Clause (2) does not 
 83.27  apply to counties in the Minneapolis-St. Paul metropolitan 
 83.28  statistical area. 
 83.29     (c) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 
 83.30  agency shall issue assistance for mortgage or contract for deed 
 83.31  arrearages on behalf of an otherwise eligible applicant 
 83.32  according to clauses (1) to (4): 
 83.33     (1) assistance for arrearages must be issued only when a 
 83.34  home is owned, occupied, and maintained by the applicant; 
 83.35     (2) assistance for arrearages must be issued only when no 
 83.36  subsequent foreclosure action is expected within the 12 months 
 84.1   following the issuance; 
 84.2      (3) assistance for arrearages must be issued only when an 
 84.3   applicant has been refused refinancing through a bank or other 
 84.4   lending institution and the amount payable, when combined with 
 84.5   any payments made by the applicant, will be accepted by the 
 84.6   creditor as full payment of the arrearage; 
 84.7      (4) costs paid by a family which are counted toward the 
 84.8   payment requirements in this clause are:  principle and interest 
 84.9   payments on mortgages or contracts for deed, balloon payments, 
 84.10  homeowner's insurance payments, manufactured home lot rental 
 84.11  payments, and tax or special assessment payments related to the 
 84.12  homestead.  Costs which are not counted include closing costs 
 84.13  related to the sale or purchase of real property. 
 84.14     To be eligible for assistance for costs specified in clause 
 84.15  (4) which are outstanding at the time of foreclosure, an 
 84.16  applicant must have paid at least 40 percent of the family's 
 84.17  gross income toward these costs in the month of application and 
 84.18  the 11-month period immediately preceding the month of 
 84.19  application. 
 84.20     When an applicant is eligible under clause (4), a county 
 84.21  agency shall issue assistance up to a maximum of four times the 
 84.22  MFIP-S transitional standard for a comparable assistance unit. 
 84.23     (d) [DAMAGE OR UTILITY DEPOSITS.] A county agency shall 
 84.24  issue assistance for damage or utility deposits when necessary 
 84.25  to alleviate the emergency.  The county may require that 
 84.26  assistance paid in the form of a damage deposit or a utility 
 84.27  deposit, less any amount retained by the landlord to remedy a 
 84.28  tenant's default in payment of rent or other funds due to the 
 84.29  landlord under a rental agreement, or to restore the premises to 
 84.30  the condition at the commencement of the tenancy, ordinary wear 
 84.31  and tear excepted, be returned to the county when the individual 
 84.32  vacates the premises or be paid to the recipient's new landlord 
 84.33  as a vendor payment.  The vendor payment of returned funds shall 
 84.34  not be considered a new use of emergency assistance. 
 84.35     (e) [MOVING EXPENSES.] A county agency shall issue 
 84.36  assistance for expenses incurred when a family must move to a 
 85.1   different shelter according to clauses (1) to (4): 
 85.2      (1) moving expenses include the cost to transport personal 
 85.3   property belonging to a family, the cost for utility connection, 
 85.4   and the cost for securing different shelter; 
 85.5      (2) moving expenses must be paid only when the county 
 85.6   agency determines that a move is cost-effective; 
 85.7      (3) moving expenses must be paid at the request of an 
 85.8   applicant, but only when destitution or threatened destitution 
 85.9   exists; and 
 85.10     (4) moving expenses must be paid when a county agency 
 85.11  denies assistance to prevent an eviction because the county 
 85.12  agency has determined that an applicant's anticipated income 
 85.13  will not cover continued shelter obligation in paragraph (a). 
 85.14     (f) [HOME REPAIRS.] A county agency shall pay for repairs 
 85.15  to the roof, foundation, wiring, heating system, chimney, and 
 85.16  water and sewer system of a home that is owned and lived in by 
 85.17  an applicant. 
 85.18     The applicant shall document, and the county agency shall 
 85.19  verify the need for and method of repair. 
 85.20     The payment must be cost-effective in relation to the 
 85.21  overall condition of the home and in relation to the cost and 
 85.22  availability of alternative housing. 
 85.23     (g) [UTILITY COSTS.] Assistance for utility costs must be 
 85.24  made when an otherwise eligible family has had a termination or 
 85.25  is threatened with a termination of municipal water and sewer 
 85.26  service, electric, gas or heating fuel service, or lacks wood 
 85.27  when that is the heating source, subject to the conditions in 
 85.28  clauses (1) and (2): 
 85.29     (1) a county agency must not issue assistance unless the 
 85.30  county agency receives confirmation from the utility provider 
 85.31  that assistance combined with payment by the applicant will 
 85.32  continue or restore the utility; and 
 85.33     (2) a county agency shall not issue assistance for utility 
 85.34  costs unless a family paid at least eight percent of the 
 85.35  family's gross income toward utility costs due during the 
 85.36  preceding 12 months. 
 86.1      Clauses (1) and (2) must not be construed to prevent the 
 86.2   issuance of assistance when a county agency must take immediate 
 86.3   and temporary action necessary to protect the life or health of 
 86.4   a child. 
 86.5      (h) [SPECIAL DIETS.] A county shall pay for special diets 
 86.6   or dietary items.  The need for special diets or dietary items 
 86.7   must be prescribed by a licensed physician.  Costs for special 
 86.8   diets shall be determined as percentages of the allotment for a 
 86.9   one-person household under the Thrifty Food Plan as defined by 
 86.10  the United States Department of Agriculture.  The types of diets 
 86.11  and the percentages of the Thrifty Food Plan that are covered 
 86.12  are as follows: 
 86.13     (1) high protein diet, at least 80 grams daily, 25 percent 
 86.14  of Thrifty Food Plan; 
 86.15     (2) controlled protein diet, 40 to 60 grams and requires 
 86.16  special products, 100 percent of Thrifty Food Plan; 
 86.17     (3) controlled protein diet, less than 40 grams and 
 86.18  requires special products, 125 percent of Thrifty Food Plan; 
 86.19     (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 
 86.20     (5) high residue diet, 20 percent of Thrifty Food Plan; 
 86.21     (6) pregnancy and lactation diet, 35 percent of Thrifty 
 86.22  Food Plan; 
 86.23     (7) gluten-free diet, 25 percent of Thrifty Food Plan; 
 86.24     (8) lactose-free diet, 25 percent of Thrifty Food Plan; 
 86.25     (9) antidumping diet, 15 percent of Thrifty Food Plan; 
 86.26     (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 
 86.27     (11) ketogenic diet, 25 percent of Thrifty Food Plan. 
 86.28     Subd. 4.  [VENDOR PAYMENTS FOR SHELTER OR UTILITY 
 86.29  COSTS.] If an MFIP-S participant applies for and receives 
 86.30  emergency assistance for shelter and utility costs under 
 86.31  subdivision 3, paragraph (a), (b), (c), or (f), the ongoing 
 86.32  MFIP-S assistance payment shall be in the form of vendor 
 86.33  payments. 
 86.34     Sec. 38.  [256J.49] [EMPLOYMENT AND TRAINING SERVICES; 
 86.35  DEFINITIONS.] 
 86.36     Subdivision 1.  [SCOPE.] The terms used in sections 256J.50 
 87.1   to 256J.72 have the meanings given them in this section. 
 87.2      Subd. 2.  [DOMESTIC VIOLENCE.] "Domestic violence" means: 
 87.3      (1) physical acts that result, or threaten to result in, 
 87.4   physical injury to an individual; 
 87.5      (2) sexual abuse; 
 87.6      (3) sexual activity involving a minor child; 
 87.7      (4) being forced as the caregiver of a minor child to 
 87.8   engage in nonconsensual sexual acts or activities; 
 87.9      (5) threats of, or attempts at, physical or sexual abuse; 
 87.10     (6) mental abuse; or 
 87.11     (7) neglect or deprivation of medical care. 
 87.12     Subd. 3.  [EMPLOYMENT AND TRAINING SERVICES.] "Employment 
 87.13  and training services" means programs, activities and services 
 87.14  that are designed to assist participants in obtaining and 
 87.15  retaining employment. 
 87.16     Subd. 4.  [EMPLOYMENT AND TRAINING SERVICE 
 87.17  PROVIDER.] "Employment and training service provider" means: 
 87.18     (1) a public, private, or nonprofit employment and training 
 87.19  agency certified by the commissioner of economic security under 
 87.20  sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 
 87.21  is approved under section 256J.51 and is included in the county 
 87.22  plan submitted under section 256J.50, subdivision 6; or 
 87.23     (2) a county agency, if the county has opted to provide 
 87.24  employment and training services and has been certified by the 
 87.25  commissioner of economic security under sections 268.0122, 
 87.26  subdivision 3, and 268.871, subdivision 1, or is approved under 
 87.27  section 256J.51 and is included in the county plan submitted 
 87.28  under section 256J.50, subdivision 6.  
 87.29     Subd. 5.  [EMPLOYMENT PLAN.] "Employment plan" means a plan 
 87.30  developed by the job counselor and the participant which 
 87.31  identifies the participant's most direct path to unsubsidized 
 87.32  employment, lists the specific steps that the participant will 
 87.33  take on that path, and includes a timetable for the completion 
 87.34  of each step. 
 87.35     Subd. 6.  [FEDERAL PARTICIPATION STANDARDS.] "Federal 
 87.36  participation standards" means the work participation standards 
 88.1   as specified in title I of Public Law Number 104-193, the 
 88.2   Personal Responsibility and Work Opportunity Reconciliation Act 
 88.3   of 1996. 
 88.4      Subd. 7.  [INTENSIVE ENGLISH AS A SECOND LANGUAGE 
 88.5   PROGRAM.] "Intensive English as a second language program" means 
 88.6   an English as a second language program that offers at least 20 
 88.7   hours of class per week. 
 88.8      Subd. 8.  [JOB COUNSELOR.] "Job counselor" means a staff 
 88.9   person employed by the employment and training services provider 
 88.10  who delivers services as specified in sections 256J.50 to 
 88.11  256J.55. 
 88.12     Subd. 9.  [PARTICIPANT.] "Participant" means a recipient of 
 88.13  MFIP-S assistance who participates or is required to participate 
 88.14  in employment and training services. 
 88.15     Subd. 10.  [PROVIDER.] "Provider" means an employment and 
 88.16  training service provider. 
 88.17     Subd. 11.  [SAFETY PLAN.] "Safety plan" means a plan 
 88.18  developed by a victim of domestic violence with the assistance 
 88.19  of a public agency or a private nonprofit agency, including 
 88.20  agencies that receive designation by the department of 
 88.21  corrections to provide emergency shelter services or support 
 88.22  services under section 611A.32.  A safety plan shall not include 
 88.23  a provision that automatically requires a domestic violence 
 88.24  victim to seek an order of protection, or to attend counseling, 
 88.25  as part of the safety plan. 
 88.26     Subd. 12.  [SUITABLE EMPLOYMENT.] "Suitable employment" 
 88.27  means employment that: 
 88.28     (1) is within the participant's physical and mental 
 88.29  abilities; 
 88.30     (2) pays hourly gross wages of not less than the applicable 
 88.31  state or federal minimum wage; and 
 88.32     (3) meets health and safety standards set by federal, state 
 88.33  and county agencies. 
 88.34     Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
 88.35  activity in a participant's approved employment plan that is 
 88.36  tied to the participant's employment goal .  For purposes of the 
 89.1   MFIP-S program, any activity that is included in a participant's 
 89.2   approved employment plan meets the definition of work activity 
 89.3   as counted under the federal participation standards.  Work 
 89.4   activity includes, but is not limited to: 
 89.5      (1) unsubsidized employment; 
 89.6      (2) subsidized private sector or public sector employment, 
 89.7   including grant diversion as specified in section 256J.69; 
 89.8      (3) work experience, including CWEP as specified in section 
 89.9   256J.67, and including work associated with the refurbishing of 
 89.10  publicly assisted housing if sufficient private sector 
 89.11  employment is not available; 
 89.12     (4) on-the-job training as specified in section 256J.66; 
 89.13     (5) job search, either supervised or unsupervised; 
 89.14     (6) job readiness assistance; 
 89.15     (7) job clubs, including job search workshops; 
 89.16     (8) job placement; 
 89.17     (9) job development; 
 89.18     (10) job-related counseling; 
 89.19     (11) job coaching; 
 89.20     (12) job retention services; 
 89.21     (13) job-specific training or education ; 
 89.22     (14) job skills training directly related to employment; 
 89.23     (15) the self-employment investment demonstration (SEID), 
 89.24  as specified in section 256J.65; 
 89.25     (16) preemployment activities, based on availability and 
 89.26  resources, such as volunteer work, literacy programs and related 
 89.27  activities, citizenship and English as a second language 
 89.28  classes, or participation in dislocated worker services, 
 89.29  chemical dependency treatment, mental health services, peer 
 89.30  group networks, displaced homemaker programs, parenting 
 89.31  education, or other programs designed to help families reach 
 89.32  their employment goals and enhance their ability to care for 
 89.33  their children; 
 89.34     (17) community service programs; 
 89.35     (18) vocational educational training or educational 
 89.36  programs that can reasonably be expected to lead to employment, 
 90.1   as limited by the provisions of section 256J.53; 
 90.2      (19) apprenticeships; 
 90.3      (20) satisfactory attendance in general educational 
 90.4   development diploma classes or an adult diploma program; 
 90.5      (21) satisfactory attendance at secondary school, if the 
 90.6   participant has not received a high school diploma; 
 90.7      (22) adult basic education classes; 
 90.8      (23) internships; 
 90.9      (24) bilingual employment and training services; 
 90.10     (25) providing child care services to a participant who is 
 90.11  working in a community service program; and 
 90.12     (26) activities included in a safety plan that is developed 
 90.13  under section 256J.52, subdivision 6. 
 90.14     Sec. 39.  [256J.50] [COUNTY DUTIES.] 
 90.15     Subdivision 1.  [EMPLOYMENT AND TRAINING SERVICES COMPONENT 
 90.16  OF MFIP-S.] (a) By January 1, 1998, each county must develop and 
 90.17  implement an employment and training services component of 
 90.18  MFIP-S which is designed to put participants on the most direct 
 90.19  path to unsubsidized employment.  Participation in these 
 90.20  services is mandatory for all MFIP-S caregivers, unless the 
 90.21  caregiver is exempt under section 256J.56, and is required 
 90.22  concurrent with the receipt of MFIP-S cash assistance. 
 90.23     (b) A county may provide employment and training services 
 90.24  to MFIP-S caregivers who are exempt from the employment and 
 90.25  training services component but volunteer for the services. 
 90.26     Subd. 2.  [PILOT PROGRAMS.] In counties selected for the 
 90.27  work first or work focused pilot programs, first-time applicants 
 90.28  for assistance must meet the requirements of those programs in 
 90.29  place of the requirements of the MFIP-S program.  A county may, 
 90.30  at its option, discontinue a work first or work focused pilot 
 90.31  program. 
 90.32     Subd. 3.  [TRANSITIONAL RULE; MFIP OR MFIP-R 
 90.33  PARTICIPANT.] A caregiver who was enrolled in MFIP or MFIP-R 
 90.34  immediately before enrolling in MFIP-S, and who was making 
 90.35  satisfactory progress toward the objectives specified in the 
 90.36  caregiver's employment plan, may, with the approval of a job 
 91.1   counselor, continue with the existing employment plan for up to 
 91.2   one year after the caregiver is enrolled in MFIP-S.  The job 
 91.3   counselor may require changes to the plan in order to be 
 91.4   consistent with the time limit. 
 91.5      Subd. 3a.  [TRANSITIONAL RULE; STRIDE, ACCESS.] (a) A 
 91.6   county agency that is not a participant in the MFIP or MFIP-R 
 91.7   field trials under sections 256.031 to 256.0361 shall not enroll 
 91.8   a recipient into project STRIDE or ACCESS after the date that 
 91.9   MFIP-S is implemented in the county.  
 91.10     (b) A caregiver who: 
 91.11     (i) was enrolled in project STRIDE or ACCESS continuously 
 91.12  since March 1, 1997; 
 91.13     (ii) is not a part of an MFIP or MFIP-R comparison group; 
 91.14  and 
 91.15     (iii) who is making satisfactory progress toward the 
 91.16  objectives specified in the caregiver's employment plan, may, 
 91.17  with the approval of the job counselor, continue with the 
 91.18  existing employment plan for up to two years after the caregiver 
 91.19  is enrolled in MFIP-S.  For purposes of the federal 
 91.20  participation standards, the activities in the caregiver's 
 91.21  employment plan are work activities, as that term is defined in 
 91.22  section 256J.49, subdivision 13. 
 91.23     (c) Notwithstanding contrary provisions of section 256.736, 
 91.24  the employability plan of a caregiver who is enrolled in project 
 91.25  STRIDE or ACCESS on or after July 1, 1997, must meet the 
 91.26  requirements of sections 256J.52, subdivisions 4 and 5, and 
 91.27  256J.53, or section 256J.54, if applicable. 
 91.28     Subd. 4.  [SERVICE-PROVIDING AGENCIES.] Counties may select 
 91.29  one or more employment and training service providers, or may 
 91.30  opt to provide services on their own. 
 91.31     Subd. 5.  [COUNTY OPTION FOR EARLY IMPLEMENTATION.] A 
 91.32  county may opt to implement its employment and training services 
 91.33  component of MFIP-S before January 1, 1998.  A county that does 
 91.34  so is eligible for a bonus payment as specified under this 
 91.35  subdivision.  For each participant that is engaged, prior to 
 91.36  January 1, in job search under section 256J.52, subdivision 3, 
 92.1   in activities that are part of an employment plan under section 
 92.2   256J.52, subdivision 5, or in activities that are part of a 
 92.3   safety plan under section 256J.52, subdivision 6, the county is 
 92.4   eligible for a bonus payment of $100.  The commissioner must add 
 92.5   any bonus payments earned under this subdivision to the county's 
 92.6   employment and training services allocation for fiscal year 
 92.7   1998.  Bonus payments must not supplant, and must be in addition 
 92.8   to, a county's allocation under section 256J.62. 
 92.9      Subd. 6.  [COUNTY PLAN.] Each county agency shall prepare 
 92.10  and submit a plan as specified in section 268.88. 
 92.11     Subd. 7.  [COUNTY DUTY TO ENSURE EMPLOYMENT AND TRAINING 
 92.12  CHOICES FOR PARTICIPANTS.] Each county, or group of counties 
 92.13  working cooperatively, shall make available to participants the 
 92.14  choice of at least two employment and training service providers 
 92.15  as defined under section 256J.49, subdivision 4, except in 
 92.16  counties utilizing workforce centers that use multiple 
 92.17  employment providers, offer multiple services options under a 
 92.18  collaborative effort and can document that participants have 
 92.19  choice among employment and training services designed to meet 
 92.20  specialized needs. 
 92.21     Subd. 8.  [EXCEPTION; FINANCIAL HARDSHIP.] Notwithstanding 
 92.22  subdivision 7, a county that demonstrates in the plan required 
 92.23  under subdivision 6 that the provision of alternative employment 
 92.24  and training service providers would result in financial 
 92.25  hardship for the county is not required to make available more 
 92.26  than one employment and training provider. 
 92.27     Sec. 40.  [256J.51] [EMPLOYMENT AND TRAINING SERVICE 
 92.28  PROVIDER; ALTERNATE APPROVAL PROCESS.] 
 92.29     Subdivision 1.  [PROVIDER APPLICATION.] An employment and 
 92.30  training service provider that is not included in a county's 
 92.31  plan under section 256J.50, subdivision 6, because the county 
 92.32  has demonstrated financial hardship under subdivision 7 of that 
 92.33  section, may appeal its exclusion to the commissioner of 
 92.34  economic security under this section. 
 92.35     Subd. 2.  [APPEAL; ALTERNATE APPROVAL.] (a) An employment 
 92.36  and training service provider that is not included by a county 
 93.1   agency in the plan under section 256J.50, subdivision 6, and 
 93.2   that meets the criteria in paragraph (b), may appeal its 
 93.3   exclusion to the commissioner of economic security, and may 
 93.4   request alternative approval by the commissioner of economic 
 93.5   security to provide services in the county.  
 93.6      (b) An employment and training services provider that is 
 93.7   requesting alternative approval must demonstrate to the 
 93.8   commissioner that the provider meets the standards specified in 
 93.9   section 268.871, subdivision 1, paragraph (b), except that the 
 93.10  provider's past experience may be in services and programs 
 93.11  similar to those specified in section 268.871, subdivision 1, 
 93.12  paragraph (b). 
 93.13     Subd. 3.  [COMMISSIONER'S REVIEW.] The commissioner must 
 93.14  act on a request for alternative approval under this section 
 93.15  within 30 days of the receipt of the request.  If after 
 93.16  reviewing the provider's request, and the county's plan 
 93.17  submitted under section 256J.50, subdivision 6, the commissioner 
 93.18  determines that the provider meets the criteria under 
 93.19  subdivision 2, paragraph (b), and that approval of the provider 
 93.20  would not cause financial hardship to the county, the county 
 93.21  must submit a revised plan under subdivision 4 that includes the 
 93.22  approved provider. 
 93.23     Subd. 4.  [REVISED PLAN REQUIRED.] The commissioner of 
 93.24  economic security must notify the county agency when the 
 93.25  commissioner grants an alternative approval to an employment and 
 93.26  training service provider under subdivision 2.  Upon receipt of 
 93.27  the notice, the county agency must submit a revised plan under 
 93.28  section 256J.50, subdivision 6, that includes the approved 
 93.29  provider.  The county has 90 days from the receipt of the 
 93.30  commissioner's notice to submit the revised plan. 
 93.31     Subd. 5.  [REVIEW NOT REQUIRED.] Notwithstanding 
 93.32  subdivision 3, once a county meets the requirements of section 
 93.33  256J.50, subdivision 7, the commissioner may, but is not 
 93.34  required to, act on a request by an employment and training 
 93.35  services provider for alternative approval in that county. 
 93.36     Sec. 41.  [256J.515] [OVERVIEW OF EMPLOYMENT AND TRAINING 
 94.1   SERVICES.] 
 94.2      During the first meeting with participants, job counselors 
 94.3   must provide an overview of employment and training services 
 94.4   that stresses the necessity and opportunity of immediate 
 94.5   employment, outlines the job search resources offered, explains 
 94.6   the requirements to comply with an employment plan and the 
 94.7   consequences for failing to comply, and explains the services 
 94.8   that are available to support job search and work. 
 94.9      Sec. 42.  [256J.52] [ASSESSMENTS; PLANS.] 
 94.10     Subdivision 1.  [APPLICATION LIMITED TO CERTAIN 
 94.11  PARTICIPANTS.] This section applies to participants receiving 
 94.12  MFIP-S assistance who are not exempt under section 256J.56, and 
 94.13  to caregivers who volunteer for employment and training services 
 94.14  under section 256J.50. 
 94.15     Subd. 2.  [INITIAL ASSESSMENT.] (a) The job counselor must, 
 94.16  with the cooperation of the participant, assess the 
 94.17  participant's ability to obtain and retain employment.  This 
 94.18  initial assessment must include a review of the participant's 
 94.19  education level, prior employment or work experience, 
 94.20  transferable work skills, and existing job markets.  
 94.21     (b) In assessing the participant, the job counselor must 
 94.22  determine if the participant needs refresher courses for 
 94.23  professional certification or licensure.  If one or more 
 94.24  refresher courses are needed, the job search support plan under 
 94.25  subdivision 3 must include the courses necessary to obtain the 
 94.26  certification or licensure, in addition to other work 
 94.27  activities, provided the combination of the refresher courses 
 94.28  and other work activities are at least for 40 hours per week.  
 94.29  After obtaining the license or certificate, the participant must 
 94.30  comply with the provisions of subdivision 5. 
 94.31     (c) If a participant can demonstrate to the satisfaction of 
 94.32  the county agency that lack of proficiency in English is a 
 94.33  barrier to obtaining suitable employment, the provider may 
 94.34  include participation in an intensive English as a second 
 94.35  language program, in the participant's employment plan under 
 94.36  subdivision 5.  
 95.1      (d) A participant who, at the time of the initial 
 95.2   assessment under this section, is in an education program that 
 95.3   satisfies the criteria in section 256J.53, may, with the 
 95.4   approval of the job counselor, postpone job search.  The 
 95.5   participant must be assessed under subdivision 4, and an 
 95.6   employment plan that includes completion of the education 
 95.7   program must be developed. 
 95.8      (e) A participant who, at the time of the initial 
 95.9   assessment, presents a plan that includes farming as a 
 95.10  self-employed work activity must have an employment plan 
 95.11  developed under subdivision 5 that includes the farming as an 
 95.12  approved work activity. 
 95.13     Subd. 3.  [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 
 95.14  after the initial assessment, the job counselor determines that 
 95.15  the participant possesses sufficient skills that the participant 
 95.16  is likely to succeed in obtaining suitable employment, the 
 95.17  participant must conduct job search for a period of up to four 
 95.18  weeks, for the number of hours per week required under federal 
 95.19  participation standards or 30 hours per week, whichever is 
 95.20  greater.  The participant must accept any offer of suitable 
 95.21  employment.  The job counselor and participant must develop a 
 95.22  job search support plan which specifies, at a minimum:  whether 
 95.23  the job search is to be supervised or unsupervised; support 
 95.24  services that will be provided while the participant conducts 
 95.25  job search activities; the refresher courses necessary for 
 95.26  professional certification or licensure, if applicable; and how 
 95.27  frequently the participant must report to the job counselor on 
 95.28  the status of the participant's job search activities. 
 95.29     (b) If at the end of four weeks the participant has not 
 95.30  obtained suitable employment, the job counselor must review the 
 95.31  participant's job search support plan and must either direct the 
 95.32  participant to conduct an additional four weeks of job search or 
 95.33  must conduct a secondary assessment of the participant under 
 95.34  subdivision 4.  A participant shall not be required to conduct 
 95.35  more than a total of eight weeks of job search under this 
 95.36  subdivision. 
 96.1      Subd. 4.  [SECONDARY ASSESSMENT.] (a) The job counselor 
 96.2   must conduct a secondary assessment for those participants who: 
 96.3      (1) in the judgment of the job counselor, have barriers to 
 96.4   obtaining and retaining employment that will not be overcome 
 96.5   with a job search support plan under subdivision 3; or 
 96.6      (2) have completed at least four weeks of job search under 
 96.7   subdivision 3 without obtaining suitable employment; or 
 96.8      (3) have not received a secondary assessment, are working 
 96.9   at least 20 hours per week, and the participant, job counselor, 
 96.10  or county agency requests a secondary assessment. 
 96.11     (b) In the secondary assessment the job counselor must 
 96.12  evaluate the participant's skills and prior work experience, 
 96.13  family circumstances, interests and abilities, need for 
 96.14  preemployment activities, supportive or educational services, 
 96.15  and the extent of any barriers to employment.  The job counselor 
 96.16  must use the information gathered through the secondary 
 96.17  assessment to develop an employment plan under subdivision 5. 
 96.18     Subd. 5.  [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 
 96.19  secondary assessment under subdivision 4, the job counselor and 
 96.20  the participant must develop an employment plan for the 
 96.21  participant that includes specific activities that are designed 
 96.22  to move the participant along the most direct path to 
 96.23  unsubsidized employment.  
 96.24     If the participant has an employment goal which can best be 
 96.25  met with additional education or training and is expected to 
 96.26  result in higher wages than the participant could earn without 
 96.27  the additional education or training, the participant, in 
 96.28  consultation with the job counselor, may propose an employment 
 96.29  plan that includes activities approved under the criteria of 
 96.30  section 256J.53. 
 96.31     The employment plan must list the specific steps that will 
 96.32  be taken to obtain employment and a timetable for completion of 
 96.33  each of the steps.  The job counselor and the participant must 
 96.34  sign the developed plan to indicate agreement between the job 
 96.35  counselor and the participant on the contents of the plan.  
 96.36     (b) For a parent in a two-parent family who is required to 
 97.1   participate in the employment and training services component of 
 97.2   MFIP-S, activities that are considered for the participant's 
 97.3   plan must generally be limited to those listed in section 
 97.4   256J.49, subdivision 12, clauses (1) to (17), (22), and (24).  
 97.5   Activities listed in clauses (18) to (21), (23), (25), and (26) 
 97.6   of that subdivision may be included on an exception basis. 
 97.7      Subd. 6.  [SAFETY PLAN.] Notwithstanding subdivisions 1 to 
 97.8   5, a participant who is a victim of domestic violence and who 
 97.9   agrees to develop or has developed a safety plan meeting the 
 97.10  definition under section 256J.49, subdivision 11, is deferred 
 97.11  from the requirements of this section and sections 256J.54 and 
 97.12  256J.55 for a period three months from the date the participant 
 97.13  agreed to develop the plan.  A participant deferred under this 
 97.14  subdivision must submit a safety plan status report to the 
 97.15  county agency on a quarterly basis.  Based on a review of the 
 97.16  status report, the county agency may renew the participant's 
 97.17  deferral each quarter, provided the personal safety of the 
 97.18  participant is still at risk and the participant is complying 
 97.19  with the safety plan.  A participant who is deferred under this 
 97.20  subdivision may be deferred for a total of 12 months under a 
 97.21  safety plan, provided the individual is complying with the terms 
 97.22  of the plan. 
 97.23     Subd. 7.  [MINOR PARENTS; ASSESSMENT.] An MFIP-S caregiver 
 97.24  who is under the age of 20 must be assessed and have a plan 
 97.25  developed as provided in section 256J.54. 
 97.26     Subd. 8.  [REVISION OF PLAN.] If the employee has lost or 
 97.27  quit a job with good cause, the job counselor must ascertain the 
 97.28  reason for the job loss and work with the participant to amend 
 97.29  the job search support plan or employment plan, whichever is in 
 97.30  effect, as necessary to address the problem.  If a job search 
 97.31  support plan is in effect, the participant, county agency, or 
 97.32  job counselor may request a secondary assessment at this time. 
 97.33     Subd. 9.  [SELF-EMPLOYMENT; ANNUAL REVIEW.] If the 
 97.34  participant's work activity includes self-employment, after each 
 97.35  twelve month period of self-employment the job counselor must 
 97.36  review the participant's circumstances to determine if the 
 98.1   participant is making adequate progress towards self-sufficiency.
 98.2      If after the review the job counselor determines that the 
 98.3   participant is not making adequate progress towards 
 98.4   self-sufficiency, the job counselor must work with the 
 98.5   participant to amend the participant's employment plan as 
 98.6   necessary to address the problem.  If no employment plan is in 
 98.7   effect, the participant, county agency, or job counselor may 
 98.8   request a secondary assessment at this time. 
 98.9      Sec. 43.  [256J.53] [POST-SECONDARY EDUCATION; LIMITATIONS 
 98.10  ON APPROVAL, JOB SEARCH REQUIREMENT.] 
 98.11     Subdivision 1.  [LENGTH OF PROGRAM.] In order for a 
 98.12  post-secondary education or training program to be approved work 
 98.13  activity as defined in section 256J.49, subdivision 13, clause 
 98.14  (18), it must be a program lasting 12 months or less, and the 
 98.15  participant must meet the requirements of subdivisions 2 and 3.  
 98.16  A program lasting up to 24 months may be approved on an 
 98.17  exception basis if the conditions specified in subdivisions 2 to 
 98.18  4 are met.  A participant may not be approved for more than a 
 98.19  total of 24 months of post-secondary education or training, 
 98.20  including any months of education or training in a STRIDE or 
 98.21  ACCESS plan that is continued under section 256J.50, subdivision 
 98.22  3a. 
 98.23     Subd. 2.  [DOCUMENTATION SUPPORTING PROGRAM.] In order for 
 98.24  a post-secondary education or training program to be an approved 
 98.25  activity in a participant's employment plan, the participant or 
 98.26  the employment and training service provider must provide 
 98.27  documentation that: 
 98.28     (1) the participant's employment plan identifies specific 
 98.29  goals that can only be met with the additional education or 
 98.30  training; 
 98.31     (2) there are suitable employment opportunities that 
 98.32  requires the specific education or training in the area in which 
 98.33  the participant resides or is willing to reside; 
 98.34     (3) the education or training will result in significantly 
 98.35  higher wages for the participant than the participant could earn 
 98.36  without the education or training; 
 99.1      (4) the participant can meet the requirements for admission 
 99.2   into the program; and 
 99.3      (5) there is a reasonable expectation that the participant 
 99.4   will complete the training program based on such factors as the 
 99.5   participant's MFIP-S assessment, previous education, training, 
 99.6   and work history; current motivation; and changes in previous 
 99.7   circumstances. 
 99.8      Subd. 3.  [SATISFACTORY PROGRESS REQUIRED.] In order for a 
 99.9   post-secondary education or training program to be an approved 
 99.10  activity in a participant's employment plan, the participant 
 99.11  must maintain satisfactory progress in the program.  
 99.12  "Satisfactory progress" in an education or training program 
 99.13  means the participant remains in good standing after completion 
 99.14  of the second grading period, and maintains at least a 
 99.15  cumulative grade point average of C or its equivalent while the 
 99.16  participant is enrolled in the program, as defined by the 
 99.17  education or training institution, and the participant meets the 
 99.18  requirements of the participant's employment plan. 
 99.19     Subd. 4.  [REPAYMENT OF EMPLOYMENT AND TRAINING 
 99.20  ASSISTANCE.] In order for a post-secondary education or training 
 99.21  program lasting between 13 and 24 months to be an approved 
 99.22  activity in a participant's employment plan, the participant 
 99.23  must maintain satisfactory progress in the program and must 
 99.24  agree to repay the amount of employment and training funds paid 
 99.25  by the county to support the individual's participation in each 
 99.26  month of an education or training program after the 12th month 
 99.27  of the program.  Assistance obtained by the participant through 
 99.28  the federal Pell grant program or other federal or state 
 99.29  programs of higher education assistance must be excluded from 
 99.30  the amount to be repaid by the participant.  The participant and 
 99.31  the county agency must develop a mutually acceptable repayment 
 99.32  plan.  The repayment plan must not assess any interest charges 
 99.33  on the cost of the funds to be repaid.  The loan is considered 
 99.34  to be in repayment status when: 
 99.35     (1) the participant completes the program and obtains 
 99.36  employment that pays annual wages that are at least equal to 150 
100.1   percent of the federal poverty level; or 
100.2      (2) the participant leaves the program before completion of 
100.3   the program and obtains employment that pays annual wages that 
100.4   are at least equal to 150 percent of the federal poverty level. 
100.5      Subd. 5.  [JOB SEARCH AFTER COMPLETION OF POST-SECONDARY 
100.6   EDUCATION OR TRAINING.] Regardless of the length of the program, 
100.7   if a participant's employment plan includes a post-secondary 
100.8   education or training program, the plan must include the 
100.9   anticipated completion date of the program.  At the time the 
100.10  education or training is completed, the participant must 
100.11  participate in job search.  If after three months of job search 
100.12  the participant does not find a job that is consistent with the 
100.13  participant's employment goals, the participant must accept any 
100.14  offer of suitable employment. 
100.15     Sec. 44.  [256J.54] [MINOR PARENTS; EMPLOYMENT PLAN.] 
100.16     Subdivision 1.  [ASSESSMENT OF EDUCATIONAL PROGRESS AND 
100.17  NEEDS.] The county agency must document the educational level of 
100.18  each MFIP-S caregiver who is under the age of 20 and determine 
100.19  if the caregiver has obtained a high school diploma or its 
100.20  equivalent.  If the caregiver has not obtained a high school 
100.21  diploma or its equivalent, and is not exempt from the 
100.22  requirement to attend school under subdivision 5, the county 
100.23  agency must complete an individual assessment for the 
100.24  caregiver.  The assessment must be performed as soon as possible 
100.25  but within 30 days of determining MFIP-S eligibility for the 
100.26  caregiver.  The assessment must provide an initial examination 
100.27  of the caregiver's educational progress and needs, literacy 
100.28  level, child care and supportive service needs, family 
100.29  circumstances, skills, and work experience.  In the case of a 
100.30  caregiver under the age of 18, the assessment must also consider 
100.31  the results of either the caregiver's or the caregiver's minor 
100.32  child's child and teen checkup under Minnesota Rules, parts 
100.33  9505.0275 and 9505.1693 to 9505.1748, if available, and the 
100.34  effect of a child's development and educational needs on the 
100.35  caregiver's ability to participate in the program.  The county 
100.36  agency must advise the caregiver that the caregiver's first goal 
101.1   must be to complete an appropriate educational option if one is 
101.2   identified for the caregiver through the assessment and, in 
101.3   consultation with educational agencies, must review the various 
101.4   school completion options with the caregiver and assist in 
101.5   selecting the most appropriate option.  
101.6      Subd. 2.  [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 
101.7   PLAN.] For caregivers who are under age 18, the assessment under 
101.8   subdivision 1 and the employment plan under subdivision 3 must 
101.9   be completed by the social services agency under section 
101.10  257.33.  For caregivers who are age 18 or 19, the assessment 
101.11  under subdivision 1 and the employment plan under subdivision 3 
101.12  must be completed by the job counselor.  The social services 
101.13  agency or the job counselor shall consult with representatives 
101.14  of educational agencies that are required to assist in 
101.15  developing educational plans under section 126.235. 
101.16     Subd. 3.  [EDUCATIONAL OPTION DEVELOPED.] If the job 
101.17  counselor or county social services agency identifies an 
101.18  appropriate educational option, it must develop an employment 
101.19  plan which reflects the identified option.  The plan must 
101.20  specify that participation in an educational activity is 
101.21  required, what school or educational program is most 
101.22  appropriate, the services that will be provided, the activities 
101.23  the caregiver will take part in, including child care and 
101.24  supportive services, the consequences to the caregiver for 
101.25  failing to participate or comply with the specified 
101.26  requirements, and the right to appeal any adverse action.  The 
101.27  employment plan must, to the extent possible, reflect the 
101.28  preferences of the caregiver. 
101.29     Subd. 4.  [NO APPROPRIATE EDUCATIONAL OPTION.] If the job 
101.30  counselor determines that there is no appropriate educational 
101.31  option for a caregiver who is age 18 or 19, the job counselor 
101.32  must develop an employment plan, as defined in section 256J.49, 
101.33  subdivision 5, for the caregiver.  The department plan must 
101.34  require the caregiver to accept any suitable employment. 
101.35     Subd. 5.  [SCHOOL ATTENDANCE REQUIRED.] (a) Notwithstanding 
101.36  the provisions of section 256J.56, minor parents, or 18- or 
102.1   19-year-old parents without a high school diploma or its 
102.2   equivalent must attend school unless: 
102.3      (1) transportation services needed to enable the caregiver 
102.4   to attend school are not available; 
102.5      (2) licensed or legal nonlicensed child care services 
102.6   needed to enable the caregiver to attend school are not 
102.7   available; 
102.8      (3) the caregiver is ill or incapacitated seriously enough 
102.9   to prevent attendance at school; or 
102.10     (4) the caregiver is needed in the home because of the 
102.11  illness or incapacity of another member of the household.  This 
102.12  includes a caregiver of a child who is younger than six weeks of 
102.13  age. 
102.14     (b) The caregiver must be enrolled in a secondary school 
102.15  and meeting the school's attendance requirements.  An enrolled 
102.16  caregiver is considered to be meeting the attendance 
102.17  requirements when the school is not in regular session, 
102.18  including during holiday and summer breaks. 
102.19     Sec. 45.  [256J.55] [PARTICIPANT REQUIREMENTS, RIGHTS, AND 
102.20  EXPECTATIONS.] 
102.21     Subdivision 1.  [COMPLIANCE WITH EMPLOYMENT PLAN; SUITABLE 
102.22  EMPLOYMENT.] (a) Each MFIP-S participant must comply with the 
102.23  terms of the participant's job search support plan or employment 
102.24  plan.  When the participant has completed the steps listed in 
102.25  the employment plan, the participant must not refuse any offer 
102.26  of suitable employment.  The participant may choose to accept an 
102.27  offer of suitable employment before the participant has 
102.28  completed the steps of the employment plan. 
102.29     (b) For a participant under the age of 20 who is without a 
102.30  high school diploma or general educational development diploma, 
102.31  the requirement to comply with the terms of the employment plan 
102.32  means the participant must meet the requirements of section 
102.33  256J.54. 
102.34     (c) Failure to develop or comply with a job search support 
102.35  plan or employment plan, or quitting suitable employment without 
102.36  good cause, shall result in the imposition of a sanction as 
103.1   specified in sections 256J.57 and 256J.46. 
103.2      (d) Notwithstanding paragraph (a), a participant who has 
103.3   completed a post-secondary education or training program may 
103.4   take up to three months to find a job that is consistent with 
103.5   the participant's employment goal before the participant is 
103.6   required to accept any offer of suitable employment. 
103.7      Subd. 2.  [DUTY TO REPORT.] The participant must inform the 
103.8   job counselor within three working days regarding any changes 
103.9   related to the participant's employment status. 
103.10     Subd. 3.  [MOVE TO A DIFFERENT COUNTY.] MFIP-S applicants 
103.11  or recipients who move to a different county in Minnesota and 
103.12  are required to participate in employment and training services 
103.13  are subject to the requirements of the destination county.  An 
103.14  employment plan that was developed in the county of origin may 
103.15  be continued in the destination county if both the destination 
103.16  county and the participant agree to do so. 
103.17     Subd. 4.  [CHOICE OF PROVIDER.] A participant must be able 
103.18  to choose from at least two employment and training service 
103.19  providers, unless the county has demonstrated to the 
103.20  commissioner that the provision of multiple employment and 
103.21  training service providers would result in financial hardship 
103.22  for the county, or the county is utilizing a workforce center as 
103.23  specified in section 256J.50, subdivision 7. 
103.24     Subd. 5.  [OPTION TO UTILIZE EXISTING PLAN.] If a 
103.25  participant is already complying with a job search support or 
103.26  employment plan that was developed for a different program, the 
103.27  participant may utilize that plan and that program's services, 
103.28  subject to the requirements of subdivision 3, to be in 
103.29  compliance with sections 256J.52 to 256J.57 so long as the plan 
103.30  meets, or is modified to meet, the requirements of those 
103.31  sections. 
103.32     Sec. 46.  [256J.56] [EMPLOYMENT AND TRAINING SERVICES 
103.33  COMPONENT; EXEMPTIONS.] 
103.34     An MFIP-S caregiver is exempt from the requirements of 
103.35  sections 256J.52 to 256J.55 if the caregiver belongs to any of 
103.36  the following groups: 
104.1      (1) individuals who are age 60 or older; 
104.2      (2) individuals who are suffering from a professionally 
104.3   certified permanent or temporary illness, injury, or incapacity 
104.4   which is expected to continue for more than 30 days and which 
104.5   prevents the person from obtaining or retaining employment.  
104.6   Persons in this category with a temporary illness, injury, or 
104.7   incapacity must be reevaluated every 30 days, unless the 
104.8   certification specifies a different length of time before 
104.9   reevaluation; 
104.10     (3) caregivers whose presence in the home is required 
104.11  because of the professionally certified illness or incapacity of 
104.12  another member in the household; 
104.13     (4) women who are pregnant, if the pregnancy has resulted 
104.14  in a professionally certified incapacity that prevents the woman 
104.15  from obtaining or retaining employment; 
104.16     (5) caregivers of a child under the age of one year who 
104.17  personally provide full-time care for the child.  This exemption 
104.18  may be used only once in a lifetime.  In two-parent households, 
104.19  only one parent or other relative may qualify for this 
104.20  exemption; 
104.21     (6) individuals employed at least 40 hours per week or at 
104.22  least 30 hours per week and engaged in job search for at least 
104.23  an additional ten hours per week; 
104.24     (7) individuals experiencing a personal or family crisis 
104.25  that is professionally certified to make them incapable of 
104.26  participating in the program, as determined by the county 
104.27  agency.  Persons in this category must be reevaluated every 60 
104.28  days; or 
104.29     (8) second parents in two-parent families, provided the 
104.30  second parent is employed for 20 or more hours per week. 
104.31     A caregiver who is exempt under clause (5) must enroll in 
104.32  and attend an early childhood and family education class, a 
104.33  parenting class, or some similar activity during the period of 
104.34  time the caregiver is exempt under this section. 
104.35     Sec. 47.  [256J.57] [GOOD CAUSE; FAILURE TO COMPLY; NOTICE; 
104.36  CONCILIATION CONFERENCE.] 
105.1      Subdivision 1.  [GOOD CAUSE FOR FAILURE TO COMPLY.] (a) The 
105.2   county agency shall not impose a sanction under section 256J.46 
105.3   if the county agency or the job counselor determines that the 
105.4   participant has good cause for failing to comply with the 
105.5   requirements of sections 256J.52 to 256J.55.  Good cause exists 
105.6   when: 
105.7      (1) needed child care is not available; 
105.8      (2) the job does not meet the definition of suitable 
105.9   employment under section 256J.49; 
105.10     (3) the participant is ill or injured; 
105.11     (4) a family member is ill or disabled and needs care by 
105.12  the participant that prevents the participant from complying 
105.13  with the employment plan; 
105.14     (5) the participant is unable to secure necessary 
105.15  transportation; 
105.16     (6) the participant is in an emergency situation that 
105.17  prevents compliance with the job search support or employment 
105.18  plan; 
105.19     (7) the schedule of compliance with the job search support 
105.20  or employment plan conflicts with judicial proceedings; 
105.21     (8) the participant is already participating in acceptable 
105.22  work activities; 
105.23     (9) the employment plan requires an educational program for 
105.24  a caregiver under age 20, but the educational program is not 
105.25  available in the school district; 
105.26     (10) activities identified in the job search support or 
105.27  employment plan are not available; 
105.28     (11) the participant is willing to accept suitable 
105.29  employment, but suitable employment is not available; and 
105.30     (12) the participant documents other verifiable impediments 
105.31  to compliance with the job search support or employment plan 
105.32  that are beyond the participant's control. 
105.33     (b) The job search support plan or employment plan of a 
105.34  participant who has been granted a good cause exception under 
105.35  this section must be reviewed by the job counselor or county 
105.36  agency, and must be revised as appropriate to improve the 
106.1   participant's ability to comply with the plan requirements, so 
106.2   that the participant will be less likely to make another good 
106.3   cause claim under this section. 
106.4      Subd. 2.  [NOTICE OF INTENT TO SANCTION.] (a) When a 
106.5   participant fails without good cause to comply with the 
106.6   requirements of sections 256J.52 to 256J.55, the job counselor 
106.7   or the county agency must provide a notice of intent to sanction 
106.8   to the participant specifying the program requirements that were 
106.9   not complied with, informing the participant that the county 
106.10  agency will impose the sanctions specified in section 256J.46, 
106.11  and informing the participant of the opportunity to request a 
106.12  conciliation conference as specified in paragraph (b).  The 
106.13  notice must also state that the participant's continuing 
106.14  noncompliance with the specified requirements for more than one 
106.15  month will result in additional sanctions under section 256J.46, 
106.16  without the need for additional notices or conciliation 
106.17  conferences under this subdivision.  If the job counselor 
106.18  provides the required notice, the job counselor must 
106.19  simultaneously notify the county agency that the participant has 
106.20  failed to comply and request that the county agency impose the 
106.21  sanctions in section 256J.46.  The county must then send a 
106.22  notice of adverse action to the participant informing the 
106.23  participant of the sanction that will be imposed, the reasons 
106.24  for the sanction, the effective date of the sanction, and the 
106.25  participant's right to have a fair hearing under section 256J.40.
106.26     (b) The participant may request a conciliation conference 
106.27  by sending a written request, by making a telephone request, or 
106.28  by making an in-person request.  The request must be received 
106.29  within ten calendar days of the date the county agency mailed 
106.30  the ten-day notice of intent to sanction.  If a timely request 
106.31  for a conciliation is received, the county agency's service 
106.32  provider must conduct the conference within five days of the 
106.33  request.  The job counselor's supervisor, or a designee of the 
106.34  supervisor, must review the outcome of the conciliation 
106.35  conference.  If the conciliation conference resolves the 
106.36  noncompliance, the job counselor must promptly inform the county 
107.1   agency and request withdrawal of the sanction notice. 
107.2      (c) Upon receiving a sanction notice, the participant may 
107.3   request a fair hearing under section 256J.40, without exercising 
107.4   the option of a conciliation conference.  In such cases, the 
107.5   county agency shall not require the participant to engage in a 
107.6   conciliation conference prior to the fair hearing. 
107.7      (d) If the participant requests a fair hearing or a 
107.8   conciliation conference, sanctions will not be imposed until 
107.9   there is a determination of noncompliance.  Sanctions must be 
107.10  imposed as provided in section 256J.46. 
107.11     Sec. 48.  [256J.60] [COUNTY EMPLOYMENT AND TRAINING 
107.12  PERFORMANCE STANDARDS.] 
107.13     Subdivision 1.  [TWO-STAGE SET OF PERFORMANCE STANDARDS.] 
107.14  The department shall adopt a two-stage set of employment and 
107.15  training services performance standards.  The first-stage 
107.16  standards are mandatory for all counties and are intended to 
107.17  enable the state to achieve the federal participation 
107.18  standards.  The second-stage standards are intended to reward 
107.19  counties for performance that exceeds the mandatory standards.  
107.20  Only those counties that meet the first-stage standards are 
107.21  eligible for the second-stage standards. 
107.22     Subd. 2.  [FIRST-STAGE PERFORMANCE STANDARDS.] Each county 
107.23  must independently meet the federal participation standards.  
107.24  Failure to meet the federal participation standards will result 
107.25  in a sanction as specified in subdivision 3.  Only counties that 
107.26  meet the federal participation standards are eligible for 
107.27  incentives under subdivision 5.  
107.28     Subd. 3.  [APPORTIONMENT OF FEDERAL PARTICIPATION STANDARDS 
107.29  SANCTIONS.] (a) If the state as a whole fails to achieve the 
107.30  federal participation standards specified in section 256J.49, 
107.31  subdivision 6, and is sanctioned by the federal government, the 
107.32  fiscal penalty will be apportioned to the state and the counties 
107.33  using the following method: 
107.34     (1) the full sanction amount shall be multiplied by 50 
107.35  percent.  This is the state's share of the sanction; 
107.36     (2) the nonstate share of the sanction shall be distributed 
108.1   across all counties in direct proportion to their employment and 
108.2   training services allocation for the year for which the sanction 
108.3   was imposed.  For counties that did not meet the federal 
108.4   participation standards, this amount is the fiscal penalty that 
108.5   shall be imposed on those counties; 
108.6      (3) the amount computed in clause (2) shall be divided by 
108.7   two.  This is the fiscal penalty that shall be imposed on 
108.8   counties that met the federal participation standards for the 
108.9   year for which the sanction was imposed; 
108.10     (4) under any circumstance, the sanction applied to any 
108.11  county shall not exceed one-third of its employment and training 
108.12  services allocation for the year for which the sanction was 
108.13  imposed; and 
108.14     (5) after applying clauses (1) to (4), any remaining 
108.15  unattributed portion of the federal sanction shall be assumed by 
108.16  the state. 
108.17     (b) A county that fails to achieve the participation 
108.18  standards specified in section 256J.49, subdivision 6, will be 
108.19  subject to a review of its employment and training services 
108.20  program under section 268.86, subdivision 2.  The commissioners 
108.21  of human services and economic security must work with the 
108.22  county agency to assess and revise the county's programs, in 
108.23  order to improve the county's ability to achieve the 
108.24  participation standards in the following year. 
108.25     (c) If, in a given year, the state as a whole has met the 
108.26  participation standards specified in section 256J.49, 
108.27  subdivision 6, a county for which the given year is the second 
108.28  consecutive year in which the performance standards were not met 
108.29  shall, in addition to a department review of the county program, 
108.30  be subject to a fiscal sanction of an amount equal to 20 percent 
108.31  of the total employment and training services allocation for the 
108.32  second year in which the standards were not met. 
108.33     (d) The sanction, as specified in paragraph (a) or (c), 
108.34  shall be adjusted to account for variations in county 
108.35  demographic and economic conditions.  The commissioner shall 
108.36  develop a method for this adjustment by January 1, 1998. 
109.1      (e) A county may not pay its share of any federal or 
109.2   state-imposed fiscal sanction from the county's employment and 
109.3   training services allocation.  Each county must maintain 
109.4   employment and training services funding at the full allocation 
109.5   level, regardless of any penalties that are imposed. 
109.6      Subd. 4.  [SECOND-STAGE PERFORMANCE STANDARDS.] (a) 
109.7   Beginning July 1, 1998, and each quarter thereafter, the 
109.8   commissioner of human services shall inform all counties of each 
109.9   county's performance on the following measures: 
109.10     (i) MFIP-S caseload reduction; 
109.11     (ii) average placement wage rate; 
109.12     (iii) rate of job retention after three months; 
109.13     (iv) placement rate into unsubsidized jobs; and 
109.14     (v) federal participation requirements as specified in 
109.15  section 256J.49, subdivision 6. 
109.16     (b) By July 1, 1999, the commissioner shall establish 
109.17  performance standards for each of the measures in this 
109.18  subdivision, and recommend to the legislature any changes to the 
109.19  measures specified in this subdivision that would ensure 
109.20  performance standards are developed to achieve the purposes of 
109.21  this section. 
109.22     Subd. 5.  [INCENTIVE FUND.] (a) Beginning July 1, 2000, and 
109.23  in each subsequent state fiscal year, the commissioner shall 
109.24  withhold from allocation to counties five percent of the total 
109.25  annual MFIP-S employment and training services appropriation in 
109.26  an incentive fund to be awarded to counties that have met the 
109.27  standards specified under subdivision 4 during the previous 
109.28  fiscal year. 
109.29     (b) Twenty percent of the total incentive fund shall be 
109.30  reserved for each of the five measures specified in subdivision 
109.31  4.  On July 1, 2000, all counties that have met a given standard 
109.32  during the previous state fiscal year shall share the incentive 
109.33  fund monies for that standard.  Each county's share of a 
109.34  standard's incentive money shall be the same percent as its 
109.35  MFIP-S employment and training services allocation for the 
109.36  previous state fiscal year is of the sum of the allocations to 
110.1   the counties that qualify to share in the incentive for a given 
110.2   measure.  
110.3      (c) At the discretion of the commissioner, during the first 
110.4   two years of the incentive fund, incentive fund money may be 
110.5   used as a contingency fund to cover unanticipated county costs 
110.6   of implementing the employment and training services component 
110.7   of MFIP-S.  
110.8      (d) If no county achieves the second-stage standards, the 
110.9   entire incentive fund, minus any amount expended under paragraph 
110.10  (c), shall be allocated to all counties in direct proportion to 
110.11  their original employment and training services allocation. 
110.12     Sec. 49.  [256J.61] [REPORTING REQUIREMENTS.] 
110.13     The commissioner of human services, in cooperation with the 
110.14  commissioner of economic security, shall develop reporting 
110.15  requirements for county agencies and employment and training 
110.16  service providers according to section 256.01, subdivision 2, 
110.17  paragraph (17).  Reporting requirements must, to the extent 
110.18  possible, use existing client tracking systems and must be 
110.19  within the limits of funds available.  The requirements must 
110.20  include summary information necessary for state agencies and the 
110.21  legislature to evaluate the effectiveness of the services. 
110.22     Sec. 50.  [256J.62] [ALLOCATION OF COUNTY EMPLOYMENT AND 
110.23  TRAINING SERVICES BLOCK GRANT.] 
110.24     Subdivision 1.  [ALLOCATION.] Money appropriated for MFIP-S 
110.25  employment and training services must be allocated to counties 
110.26  as specified in this section. 
110.27     Subd. 2.  [GUARANTEED FLOOR.] First, money shall be 
110.28  allocated to counties in an amount equal to the county's 
110.29  guaranteed floor.  The county's guaranteed floor shall be 
110.30  calculated as follows: 
110.31     (1) for fiscal 1998, the guaranteed floor shall be 
110.32  calculated by multiplying the county's STRIDE allocation 
110.33  received for state fiscal year 1997 by 90 percent; 
110.34     (2) for each subsequent fiscal year, the guaranteed floor 
110.35  shall be calculated by multiplying the county's MFIP-S 
110.36  employment and training services allocation received the 
111.1   previous state fiscal year by 90 percent; and 
111.2      (3) if the amount of funds available for allocation is less 
111.3   than the amount allocated to all counties for the previous 
111.4   fiscal year, each county's previous year allocation shall be 
111.5   reduced in proportion to the reduction in statewide funding for 
111.6   the purpose of establishing the guaranteed floor. 
111.7      Subd. 3.  [ALLOCATION OF BALANCE OF FUNDS.] If there remain 
111.8   funds to allocate after establishing each county's guaranteed 
111.9   floor under the provisions in subdivision 2, the balance of 
111.10  funds shall be allocated as follows: 
111.11     (1) for state fiscal year 1998, the remaining funds shall 
111.12  be allocated based on the county's average number of AFDC and 
111.13  family general assistance cases as compared to the statewide 
111.14  total number of cases.  The average number of cases shall be 
111.15  based on counts of AFDC and family general assistance cases as 
111.16  of March 31, June 30, September 30, and December 31 of calendar 
111.17  year 1996; 
111.18     (2) for state fiscal year 1999, the remaining funds shall 
111.19  be allocated based on the county's average number of AFDC, 
111.20  family general assistance, and MFIP-S cases as compared to the 
111.21  statewide total number of cases.  The average number of cases 
111.22  shall be based on counts of AFDC, family general assistance, 
111.23  MFIP-R, MFIP, and MFIP-S cases as of March 31, June 30, 
111.24  September 30, and December 31 of calendar year 1997; and 
111.25     (3) for all subsequent state fiscal years, the remaining 
111.26  funds shall be allocated based on the county's average number of 
111.27  MFIP-S cases as compared to the statewide total number of 
111.28  cases.  The average number of cases must be based on counts of 
111.29  MFIP-S cases as of March 31, June 30, September 30, and December 
111.30  31 of the previous calendar year. 
111.31     Subd. 4.  [ADMINISTRATIVE ACTIVITIES LIMIT.] No more than 
111.32  15 percent of the money allocated under this section may be used 
111.33  for administrative activities. 
111.34     Subd. 4a.  [STRIDE ALLOCATION.] Funds allocated for STRIDE 
111.35  services for state fiscal year 1998 are allocated to county 
111.36  agencies based on the provisions of statute in effect on June 
112.1   30, 1997.  At the time that the AFDC program is replaced by the 
112.2   Temporary Assistance for Needy Families program under title I of 
112.3   Public Law Number 104-193 of the Personal Responsibility and 
112.4   Work Opportunity Reconciliation Act of 1996, any unexpended 
112.5   balance of a county's STRIDE allocation for that fiscal year 
112.6   remains available to the county for operation of MFIP-S 
112.7   employment and training services and for the operation of the 
112.8   STRIDE program for the MFIP and MFIP-R field trial counties for 
112.9   the balance of the fiscal year.  These STRIDE funds shall be 
112.10  included in the calculation of the next year's MFIP-S employment 
112.11  and training allocation under the provisions of subdivision 2. 
112.12     Subd. 5.  [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 
112.13  REFUGEES.] Funds appropriated to cover the costs of bilingual 
112.14  employment and training services to refugees shall be allocated 
112.15  to county agencies as follows: 
112.16     (1) for state fiscal year 1998, the allocation shall be 
112.17  based on the county's proportion of the total statewide number 
112.18  of AFDC refugee cases in the previous fiscal year.  Counties 
112.19  with less than one percent of the statewide number of AFDC, 
112.20  MFIP-R, or MFIP refugee cases shall not receive an allocation of 
112.21  bilingual employment and training services funds; and 
112.22     (2) for each subsequent fiscal year, the allocation shall 
112.23  be based on the county's proportion of the total statewide 
112.24  number of MFIP-S refugee cases in the previous fiscal year.  
112.25  Counties with less than one percent of the statewide number of 
112.26  MFIP-S refugee cases shall not receive an allocation of 
112.27  bilingual employment and training services funds. 
112.28     Subd. 6.  [WORK LITERACY LANGUAGE PROGRAMS.] Funds 
112.29  appropriated to cover the costs of work literacy language 
112.30  programs to non-English speaking participants shall be allocated 
112.31  to county agencies as follows: 
112.32     (1) for state fiscal year 1998, the allocation shall be 
112.33  based on the county's proportion of the total statewide number 
112.34  of AFDC or MFIP cases in the previous fiscal year where the lack 
112.35  of English is a barrier to employment.  Counties with less than 
112.36  two percent of the statewide number of AFDC or MFIP cases where 
113.1   the lack of English is a barrier to employment shall not receive 
113.2   an allocation of the work literacy language program funds; and 
113.3      (2) for each subsequent fiscal year, the allocation shall 
113.4   be based on the county's proportion of the total statewide 
113.5   number of MFIP-S cases in the previous fiscal year where the 
113.6   lack of English is a barrier to employment.  Counties with less 
113.7   than two percent of the statewide number of MFIP-S cases where 
113.8   the lack of English is a barrier to employment shall not receive 
113.9   an allocation of the work literacy language program funds. 
113.10     Subd. 7.  [REALLOCATION.] The commissioner of human 
113.11  services shall review county agency expenditures of MFIP-S 
113.12  employment and training services funds at the end of the third 
113.13  quarter of the first year of the biennium and each quarter after 
113.14  that and may reallocate unencumbered or unexpended money 
113.15  appropriated under this section to those county agencies that 
113.16  can demonstrate a need for additional money. 
113.17     Subd. 8.  [CONTINUATION OF CERTAIN SERVICES.] At county 
113.18  option and with the agreement of the participant, the provider 
113.19  may continue to provide case management, counseling or other 
113.20  support services to a participant following the participant's 
113.21  achievement of the employment goal, regardless of the 
113.22  participant's eligibility for MFIP-S. 
113.23     A county may expend funds for a specific employment and 
113.24  training service for the duration of that service to a 
113.25  participant if the funds are obligated or expended prior to the 
113.26  participant losing MFIP-S eligibility. 
113.27     Sec. 51.  [256J.645] [INDIAN TRIBE MFIP-S EMPLOYMENT AND 
113.28  TRAINING.] 
113.29     Subdivision 1.  [AUTHORIZATION TO ENTER INTO 
113.30  AGREEMENTS.] The commissioner may enter into agreements with 
113.31  federally recognized Indian tribes with a reservation in the 
113.32  state to provide MFIP-S employment and training services to 
113.33  members of the Indian tribe and to other caregivers who are a 
113.34  part of the tribal member's MFIP-S assistance unit.  For 
113.35  purposes of this section, "Indian tribe" means a tribe, band, 
113.36  nation, or other federally recognized group or community of 
114.1   Indians.  The commissioner may also enter into an agreement with 
114.2   a consortium of Indian tribes providing the governing body of 
114.3   each Indian tribe in the consortium complies with the provisions 
114.4   of this section. 
114.5      Subd. 2.  [TRIBAL REQUIREMENTS.] The Indian tribe must: 
114.6      (1) agree to fulfill the responsibilities provided under 
114.7   the employment and training component of MFIP-S regarding 
114.8   operation of MFIP-S employment and training services, as 
114.9   designated by the commissioner; 
114.10     (2) operate its employment and training services program 
114.11  within a geographic service area not to exceed the counties 
114.12  within which a border of the reservation falls; 
114.13     (3) operate its program in conformity with section 13.46 
114.14  and any applicable federal regulations in the use of data about 
114.15  MFIP-S recipients; 
114.16     (4) coordinate operation of its program with the county 
114.17  agency, Job Training Partnership Act programs, and other support 
114.18  services or employment-related programs in the counties in which 
114.19  the tribal unit's program operates; 
114.20     (5) provide financial and program participant activity 
114.21  recordkeeping and reporting in the manner and using the forms 
114.22  and procedures specified by the commissioner and permit 
114.23  inspection of its program and records by representatives of the 
114.24  state; and 
114.25     (6) have the Indian tribe's employment and training service 
114.26  provider certified by the commissioner of economic security, or 
114.27  approved by the county. 
114.28     Subd. 3.  [FUNDING.] (a) If the commissioner and an Indian 
114.29  tribe are parties to an agreement under this subdivision, the 
114.30  agreement may annually provide to the Indian tribe the funding 
114.31  amount in clause (1) or (2): 
114.32     (1) if the Indian tribe operated a tribal STRIDE program 
114.33  during state fiscal year 1997, the amount to be provided is the 
114.34  amount the Indian tribe received from the state for operation of 
114.35  its tribal STRIDE program in state fiscal year 1997, except that 
114.36  the amount provided for a fiscal year may increase or decrease 
115.1   in the same proportion that the total amount of state funds 
115.2   available for MFIP-S employment and training services increased 
115.3   or decreased that fiscal year.  No additional funds shall be 
115.4   provided to the tribe under this clause for the first year of 
115.5   expansion of MFIP beyond the pilot counties; or 
115.6      (2) if the Indian tribe did not operate a tribal STRIDE 
115.7   program during state fiscal year 1997, the commissioner may 
115.8   provide to the Indian tribe for the first year of operations the 
115.9   amount determined by multiplying the state allocation for MFIP-S 
115.10  employment and training services to each county agency in the 
115.11  Indian tribe's service delivery area by the percentage of MFIP-S 
115.12  recipients in that county who were members of the Indian tribe 
115.13  during the previous state fiscal year.  The resulting amount 
115.14  shall also be the amount that the commissioner may provide to 
115.15  the Indian tribe annually thereafter through an agreement under 
115.16  this subdivision, except that the amount provided for a fiscal 
115.17  year may increase or decrease in the same proportion that the 
115.18  total amount of state funds available for MFIP-S employment and 
115.19  training services increased or decreased that fiscal year.  No 
115.20  additional funds shall be provided to the tribe under this 
115.21  clause for the first year of expansion of MFIP beyond the pilot 
115.22  counties. 
115.23     (b) Indian tribal members receiving MFIP-S benefits and 
115.24  residing in the service area of an Indian tribe operating 
115.25  employment and training services under an agreement with the 
115.26  commissioner must be referred by county agencies in the service 
115.27  area to the Indian tribe for employment and training services. 
115.28     Sec. 52.  [256J.65] [THE SELF-EMPLOYMENT INVESTMENT 
115.29  DEMONSTRATION PROGRAM (SEID).] 
115.30     (a) A caregiver who enrolls and participates in the SEID 
115.31  program as specified in section 268.95, may, at county option, 
115.32  be exempted from other employment and training participation 
115.33  requirements for a period of up to 24 months, except for the 
115.34  school attendance requirements as specified in section 256J.54.  
115.35     (b) The following income and resource considerations apply 
115.36  to SEID participants:  
116.1      (1) an unencumbered cash reserve fund, composed of proceeds 
116.2   from a SEID business, is not counted against the grant if those 
116.3   funds are reinvested in the business and the value of the 
116.4   business does not exceed $3,000.  The value of the business is 
116.5   determined by deducting outstanding encumbrances from retained 
116.6   business profit; and 
116.7      (2) the purchase of capital equipment and durable goods of 
116.8   an amount up to $3,000 during a 24-month project period is 
116.9   allowed as a business expense. 
116.10     (c) SEID participants are also eligible for employment and 
116.11  training services, including child care assistance and 
116.12  transportation. 
116.13     Sec. 53.  [256J.66] [ON-THE-JOB TRAINING.] 
116.14     Subdivision 1.  [ESTABLISHING THE ON-THE-JOB TRAINING 
116.15  PROGRAM.] (a) County agencies may develop on-the-job training 
116.16  programs for MFIP-S caregivers who are participating in 
116.17  employment and training services.  A county agency that chooses 
116.18  to provide on-the-job training may make payments to employers 
116.19  for on-the-job training costs that, during the period of the 
116.20  training, must not exceed 50 percent of the wages paid by the 
116.21  employer to the participant.  The payments are deemed to be in 
116.22  compensation for the extraordinary costs associated with 
116.23  training participants under this section and in compensation for 
116.24  the costs associated with the lower productivity of the 
116.25  participants during training. 
116.26     (b) Provision of an on-the-job training program under the 
116.27  Job Training Partnership Act, in and of itself, does not qualify 
116.28  as an on-the-job training program under this section. 
116.29     (c) Participants in on-the-job training shall be 
116.30  compensated by the employer at the same rates, including 
116.31  periodic increases, as similarly situated employees or trainees 
116.32  and in accordance with applicable law, but in no event less than 
116.33  the federal or applicable state minimum wage, whichever is 
116.34  higher. 
116.35     Subd. 2.  [TRAINING AND PLACEMENT.] (a) County agencies 
116.36  shall limit the length of training based on the complexity of 
117.1   the job and the caregiver's previous experience and training.  
117.2   Placement in an on-the-job training position with an employer is 
117.3   for the purpose of training and employment with the same 
117.4   employer who has agreed to retain the person upon satisfactory 
117.5   completion of training. 
117.6      (b) Placement of any participant in an on-the-job training 
117.7   position must be compatible with the participant's assessment 
117.8   and employment plan under section 256J.52. 
117.9      Sec. 54.  [256J.67] [COMMUNITY WORK EXPERIENCE.] 
117.10     Subdivision 1.  [ESTABLISHING THE COMMUNITY WORK EXPERIENCE 
117.11  PROGRAM.] To the extent of available resources, each county 
117.12  agency may establish and operate a work experience component for 
117.13  MFIP-S caregivers who are participating in employment and 
117.14  training services.  This option for county agencies supersedes 
117.15  the requirement in section 402(a)(1)(B)(iv) of the Social 
117.16  Security Act that caregivers who have received assistance for 
117.17  two months and who are not exempt from work requirements must 
117.18  participate in a work experience program.  The purpose of the 
117.19  work experience component is to enhance the caregiver's 
117.20  employability and self-sufficiency and to provide meaningful, 
117.21  productive work activities.  The county shall only use this 
117.22  program after exhausting all other employment opportunities.  
117.23  The county agency shall not require a caregiver to participate 
117.24  in the community work experience program under this section 
117.25  unless the caregiver has been given an opportunity to 
117.26  participate in other work activities.  The county shall only use 
117.27  this program after exhausting all other employment 
117.28  opportunities.  The county agency shall not require a caregiver 
117.29  to participate in the community work experience program under 
117.30  this section unless the caregiver has been given an opportunity 
117.31  to participate in other work activities. 
117.32     Subd. 2.  [COMMISSIONER'S DUTIES.] The commissioner shall 
117.33  assist counties in the design and implementation of these 
117.34  components.  
117.35     Subd. 3.  [EMPLOYMENT OPTIONS.] (a) Work sites developed 
117.36  under this section are limited to projects that serve a useful 
118.1   public service such as:  health, social service, environmental 
118.2   protection, education, urban and rural development and 
118.3   redevelopment, welfare, recreation, public facilities, public 
118.4   safety, community service, services to aged or disabled 
118.5   citizens, and child care.  To the extent possible, the prior 
118.6   training, skills, and experience of a caregiver must be 
118.7   considered in making appropriate work experience assignments. 
118.8      (b) Structured, supervised volunteer work with an agency or 
118.9   organization, which is monitored by the county service provider, 
118.10  may, with the approval of the county agency, be used as a work 
118.11  experience placement. 
118.12     (c) As a condition of placing a caregiver in a program 
118.13  under this section, the county agency shall first provide the 
118.14  caregiver the opportunity: 
118.15     (1) for placement in suitable subsidized or unsubsidized 
118.16  employment through participation in a job search; or 
118.17     (2) for placement in suitable employment through 
118.18  participation in on-the-job training, if such employment is 
118.19  available. 
118.20     Subd. 4.  [EMPLOYMENT PLAN.] (a) The caretaker's employment 
118.21  plan must include the length of time needed in the work 
118.22  experience program, the need to continue job-seeking activities 
118.23  while participating in work experience, and the caregiver's 
118.24  employment goals. 
118.25     (b) After each six months of a caregiver's participation in 
118.26  a work experience job placement, and at the conclusion of each 
118.27  work experience assignment under this section, the county agency 
118.28  shall reassess and revise, as appropriate, the caregiver's 
118.29  employment plan. 
118.30     (c) A participant may claim good cause under section 
118.31  256J.57 for failing to cooperate with a work experience job 
118.32  placement.  
118.33     (d) The county agency shall limit the maximum number of 
118.34  hours any participant may work under this section to the amount 
118.35  of the applicable MFIP-S transitional standard divided by the 
118.36  applicable federal or state minimum wage, whichever is higher.  
119.1   After a participant has been assigned to a position for nine 
119.2   months, the participant may not continue in that assignment 
119.3   unless the maximum number of hours a participant works is no 
119.4   greater than the amount of the applicable MFIP-S transitional 
119.5   standard divided by the rate of pay for individuals employed in 
119.6   the same or similar occupations by the same employer at the same 
119.7   site. 
119.8      Sec. 55.  [256J.68] [INJURY PROTECTION FOR WORK EXPERIENCE 
119.9   PARTICIPANTS.] 
119.10     Subdivision 1.  [APPLICABILITY.] Payment of any claims 
119.11  resulting from an alleged injury or death of a person 
119.12  participating in a county or a tribal community work experience 
119.13  program that is operated by the county agency or the tribe and 
119.14  approved by the commissioner must be determined in accordance 
119.15  with this section.  This determination method applies to work 
119.16  experience programs authorized by the commissioner for persons 
119.17  applying for or receiving cash assistance and food stamps, and 
119.18  to the Minnesota parent's fair share program and the community 
119.19  service program under section 518.551, subdivision 5a, in a 
119.20  county with an approved community investment program for 
119.21  obligors. 
119.22     Subd. 2.  [INVESTIGATION OF THE CLAIM.] Claims that are 
119.23  subject to this section must be investigated by the county 
119.24  agency or the tribal program responsible for supervising the 
119.25  work to determine whether the claimed injury occurred, whether 
119.26  the claimed medical expenses are reasonable, and whether the 
119.27  loss is covered by the claimant's insurance.  If insurance 
119.28  coverage is established, the county agency or tribal program 
119.29  shall submit the claim to the appropriate insurance entity for 
119.30  payment.  The investigating county agency or tribal program 
119.31  shall submit all valid claims, in the amount net of any 
119.32  insurance payments, to the department of human services. 
119.33     Subd. 3.  [SUBMISSION OF CLAIM.] The commissioner shall 
119.34  submit all claims for permanent partial disability compensation 
119.35  to the commissioner of labor and industry.  The commissioner of 
119.36  labor and industry shall review all submitted claims and 
120.1   recommend to the department of human services an amount of 
120.2   compensation comparable to that which would be provided under 
120.3   the permanent partial disability compensation schedule of 
120.4   section 176.101, subdivision 2a. 
120.5      Subd. 4.  [CLAIMS LESS THAN $1,000.] The commissioner shall 
120.6   approve a claim of $1,000 or less for payment if appropriated 
120.7   funds are available, if the county agency or tribal program 
120.8   responsible for supervising the work has made the determinations 
120.9   required by this section, and if the work program was operated 
120.10  in compliance with the safety provisions of this section.  The 
120.11  commissioner shall pay the portion of an approved claim of 
120.12  $1,000 or less that is not covered by the claimant's insurance 
120.13  within three months of the date of submission.  On or before 
120.14  February 1 of each year, the commissioner shall submit to the 
120.15  appropriate committees of the senate and the house of 
120.16  representatives a list of claims of $1,000 or less paid during 
120.17  the preceding calendar year and shall be reimbursed by 
120.18  legislative appropriation for any claims that exceed the 
120.19  original appropriation provided to the commissioner to operate 
120.20  this program.  Any unspent money from this appropriation shall 
120.21  carry over to the second year of the biennium, and any unspent 
120.22  money remaining at the end of the second year shall be returned 
120.23  to the state general fund. 
120.24     Subd. 5.  [CLAIMS MORE THAN $1,000.] On or before February 
120.25  1 of each year, the commissioner shall submit to the appropriate 
120.26  committees of the senate and the house of representatives a list 
120.27  of claims in excess of $1,000 and a list of claims of $1,000 or 
120.28  less that were submitted to but not paid by the commissioner, 
120.29  together with any recommendations of appropriate compensation.  
120.30  These claims shall be heard and determined by the appropriate 
120.31  committees of the senate and house of representatives and, if 
120.32  approved, must be paid under the legislative claims procedure. 
120.33     Subd. 6.  [COMPENSATION FOR CERTAIN COSTS.] Compensation 
120.34  paid under this section is limited to reimbursement for 
120.35  reasonable medical expenses and permanent partial disability 
120.36  compensation for disability in like amounts as allowed in 
121.1   section 176.101, subdivision 2a.  Compensation for injuries 
121.2   resulting in death shall include reasonable medical expenses and 
121.3   burial expenses in addition to payment to the participant's 
121.4   estate in an amount up to $200,000.  No compensation shall be 
121.5   paid under this section for pain and suffering, lost wages, or 
121.6   other benefits provided in chapter 176.  Payments made under 
121.7   this section shall be reduced by any proceeds received by the 
121.8   claimant from any insurance policy covering the loss.  For the 
121.9   purposes of this section, "insurance policy" does not include 
121.10  the medical assistance program authorized under chapter 256B or 
121.11  the general assistance medical care program authorized under 
121.12  chapter 256D. 
121.13     Subd. 7.  [EXCLUSIVE PROCEDURE.] The procedure established 
121.14  by this section is exclusive of all other legal, equitable, and 
121.15  statutory remedies against the state, its political 
121.16  subdivisions, or employees of the state or its political 
121.17  subdivisions.  The claimant shall not be entitled to seek 
121.18  damages from any state, county, tribal, or reservation insurance 
121.19  policy or self-insurance program. 
121.20     Subd. 8.  [INVALID CLAIMS.] A claim is not valid for 
121.21  purposes of this section if the county agency responsible for 
121.22  supervising the work cannot verify to the commissioner: 
121.23     (1) that appropriate safety training and information is 
121.24  provided to all persons being supervised by the agency under 
121.25  this section; and 
121.26     (2) that all programs involving work by those persons 
121.27  comply with federal Occupational Safety and Health 
121.28  Administration and state department of labor and industry safety 
121.29  standards.  A claim that is not valid because of failure to 
121.30  verify safety training or compliance with safety standards will 
121.31  not be paid by the department of human services or through the 
121.32  legislative claims process and must be heard, decided, and paid, 
121.33  if appropriate, by the local government unit or tribal JOBS 
121.34  program responsible for supervising the work of the claimant. 
121.35     Sec. 56.  [256J.69] [GRANT DIVERSION.] 
121.36     Subdivision 1.  [ESTABLISHING THE GRANT DIVERSION 
122.1   PROGRAM.] (a) County agencies may develop grant diversion 
122.2   programs for MFIP-S participants participating in employment and 
122.3   training services.  A county agency that chooses to provide 
122.4   grant diversion may divert to an employer part or all of the 
122.5   MFIP-S cash payment for the participant's assistance unit, in 
122.6   compliance with federal regulations and laws.  Such payments to 
122.7   an employer are to subsidize employment for MFIP-S participants 
122.8   as an alternative to public assistance payments. 
122.9      (b) In addition to diverting the MFIP-S grant to the 
122.10  employer, employment and training funds may be used to subsidize 
122.11  the grant diversion placement. 
122.12     (c) Participants in grant diversion shall be compensated by 
122.13  the employer at the same rates, including periodic increases, as 
122.14  similarly situated employees or trainees and in accordance with 
122.15  applicable law, but in no event less than the federal or 
122.16  applicable state minimum wage, whichever is higher. 
122.17     Subd. 2.  [TRAINING AND PLACEMENT.] (a) County agencies 
122.18  shall limit the length of training to nine months.  Placement in 
122.19  a grant diversion training position with an employer is for the 
122.20  purpose of training and employment with the same employer who 
122.21  has agreed to retain the person upon satisfactory completion of 
122.22  training. 
122.23     (b) Placement of any participant in a grant diversion 
122.24  subsidized training position must be compatible with the 
122.25  assessment and employment plan or employability development plan 
122.26  established for the recipient under section 256J.52 or 256K.03, 
122.27  subdivision 8. 
122.28     Sec. 57.  [256J.72] [NONDISPLACEMENT IN WORK ACTIVITIES.] 
122.29     Subdivision 1.  [NONDISPLACEMENT PROTECTION.] For job 
122.30  assignments under jobs programs established under chapter 256, 
122.31  256D, 256J, or 256K, the county agency must provide written 
122.32  notification to and obtain the written concurrence of the 
122.33  appropriate exclusive bargaining representatives with respect to 
122.34  job duties covered under collective bargaining agreements and 
122.35  ensure that no work assignment under chapter 256, 256D, 256J, or 
122.36  256K results in: 
123.1      (1) termination, layoff, or reduction of the work hours of 
123.2   an employee for the purpose of hiring an individual under this 
123.3   section; 
123.4      (2) the hiring of an individual if any other person is on 
123.5   layoff, including seasonal layoff, from the same or a 
123.6   substantially equivalent job; 
123.7      (3) any infringement of the promotional opportunities of 
123.8   any currently employed individual; 
123.9      (4) the impairment of existing contract for services of 
123.10  collective bargaining agreements; or 
123.11     (5) a participant filling an established unfilled position 
123.12  vacancy, except for a position filled using grant diversion as 
123.13  provided in section 256J.69 or on-the-job training. 
123.14     The written notification must be provided to the 
123.15  appropriate exclusive bargaining representatives at least 14 
123.16  days in advance of placing recipients in temporary public 
123.17  service employment.  The notice must include the number of 
123.18  individuals involved, their work locations and anticipated hours 
123.19  of work, a summary of the tasks to be performed, and a 
123.20  description of how the individuals will be trained and 
123.21  supervised. 
123.22     Subd. 2.  [DISPUTE RESOLUTION.] (a) If there is a dispute 
123.23  between an exclusive bargaining representative and a county 
123.24  provider or employer over whether job duties are within the 
123.25  scope of a collective bargaining unit, the exclusive bargaining 
123.26  representative, the county, the provider, or the employer may 
123.27  petition the bureau of mediation services to determine if the 
123.28  job duties are within the scope of a collective bargaining unit, 
123.29  and the bureau shall render a binding decision. 
123.30     (b) In the event of a dispute under this section, the 
123.31  parties may: 
123.32     (1) use a grievance and arbitration procedure of an 
123.33  existing collective bargaining agreement to process a dispute 
123.34  over whether a violation of the nondisplacement provisions has 
123.35  occurred; or 
123.36     (2) if no grievance and arbitration procedure is in place, 
124.1   either party may submit the dispute to the bureau.  The 
124.2   commissioner of the bureau of mediation services shall establish 
124.3   a procedure for a neutral, binding resolution of the dispute. 
124.4      Subd. 3.  [STATUS OF PARTICIPANT.] A participant may not 
124.5   work in a temporary public service or community service job for 
124.6   a public employer for more than 67 working days or 536 hours, 
124.7   whichever is greater, as part of a work program established 
124.8   under chapter 256, 256D, 256J, or 256K.  A participant who 
124.9   exceeds the time limits in this subdivision is a public 
124.10  employee, as that term is used in chapter 179A.  Upon the 
124.11  written request of the exclusive bargaining representative, a 
124.12  county or public service employer shall make available to the 
124.13  affected exclusive bargaining representative a report of hours 
124.14  worked by participants in temporary public service or community 
124.15  service jobs. 
124.16     Sec. 58.  [256J.74] [RELATIONSHIP TO OTHER PROGRAMS.] 
124.17     Subdivision 1.  [SOCIAL SERVICES.] The county agency shall 
124.18  refer a participant for social services that are offered in the 
124.19  county of financial responsibility according to the criteria 
124.20  established by that county agency under Minnesota Rules, parts 
124.21  9550.0010 to 9550.0092.  A payment issued from federal funds 
124.22  under title XX of the Social Security Act, state funds under the 
124.23  Community Social Services Act, federal or state child welfare 
124.24  funds, or county funds in a payment month must not restrict 
124.25  MFIP-S eligibility or reduce the monthly assistance payment for 
124.26  that participant. 
124.27     Subd. 2.  [CONCURRENT ELIGIBILITY, LIMITATIONS.] A county 
124.28  agency must not count an applicant or participant as a member of 
124.29  more than one assistance unit in a given payment month, except 
124.30  as provided in clauses (1) and (2). 
124.31     (1) A participant who is a member of an assistance unit in 
124.32  this state is eligible to be included in a second assistance 
124.33  unit in the first full month that the participant leaves the 
124.34  first assistance unit and lives with a second assistance unit. 
124.35     (2) An applicant whose needs are met through foster care 
124.36  that is reimbursed under title IV-E of the Social Security Act 
125.1   for the first part of an application month is eligible to 
125.2   receive assistance for the remaining part of the month in which 
125.3   the applicant returns home.  Title IV-E payments and adoption 
125.4   assistance payments must be considered prorated payments rather 
125.5   than a duplication of MFIP-S need. 
125.6      Subd. 3.  [EMERGENCY ASSISTANCE, ASSISTANCE UNIT WITH A 
125.7   MINOR CHILD.] An MFIP-S assistance unit with a minor child or a 
125.8   pregnant woman without a minor child is eligible for emergency 
125.9   assistance when the assistance unit meets the requirements in 
125.10  section 256J.48, subdivision 2. 
125.11     Subd. 4.  [MEDICAL ASSISTANCE.] Medical assistance 
125.12  eligibility for MFIP-S participants shall be determined as 
125.13  described in chapter 256B. 
125.14     Sec. 59.  [256J.75] [COUNTY OF FINANCIAL RESPONSIBILITY 
125.15  POLICIES.] 
125.16     Subdivision 1.  [COUNTY OF FINANCIAL RESPONSIBILITY.] The 
125.17  county of financial responsibility is the county in which a 
125.18  minor child or pregnant woman lives on the date the application 
125.19  is signed, unless subdivision 4 applies.  When more than one 
125.20  county is financially responsible for the members of an 
125.21  assistance unit, financial responsibility must be assigned to a 
125.22  single county beginning the first day of the calendar month 
125.23  after the assistance unit members are required to be in a single 
125.24  assistance unit.  Financial responsibility must be assigned to 
125.25  the county that was initially responsible for the assistance 
125.26  unit member with the earliest date of application.  The county 
125.27  in which the assistance unit is currently residing becomes 
125.28  financially responsible for the entire assistance unit beginning 
125.29  two full calendar months after the month in which financial 
125.30  responsibility was consolidated in one county. 
125.31     Subd. 2.  [CHANGE IN RESIDENCE.] (a) When an assistance 
125.32  unit moves from one county to another and continues to receive 
125.33  assistance, the new county of residence becomes the county of 
125.34  financial responsibility when that assistance unit has lived in 
125.35  that county in nonexcluded status for two full calendar months.  
125.36  "Nonexcluded status" means the period of residence that is not 
126.1   considered excluded time under section 256G.02, subdivision 6.  
126.2   When a minor child moves from one county to another to reside 
126.3   with a different caregiver, the caregiver in the former county 
126.4   is eligible to receive assistance for that child only through 
126.5   the last day of the month of the move.  The caregiver in the new 
126.6   county becomes eligible to receive assistance for the child the 
126.7   first day of the month following the move or the date of 
126.8   application, whichever is later. 
126.9      (b) When an applicant moves from one county to another 
126.10  while the application is pending, the county where application 
126.11  first occurred is the county of financial responsibility until 
126.12  the applicant has lived in the new county for two full calendar 
126.13  months, unless the applicant's move is covered under section 
126.14  256G.02, subdivision 6. 
126.15     Subd. 3.  [RESPONSIBILITY FOR INCORRECT ASSISTANCE 
126.16  PAYMENTS.] A county of residence, when different from the county 
126.17  of financial responsibility, will be charged by the commissioner 
126.18  for the value of incorrect assistance payments and medical 
126.19  assistance paid to or on behalf of a person who was not eligible 
126.20  to receive that amount.  Incorrect payments include payments to 
126.21  an ineligible person or family resulting from decisions, 
126.22  failures to act, miscalculations, or overdue recertification.  
126.23  However, financial responsibility does not accrue for a county 
126.24  when the recertification is overdue at the time the referral is 
126.25  received by the county of residence or when the county of 
126.26  financial responsibility does not act on the recommendation of 
126.27  the county of residence.  When federal or state law requires 
126.28  that medical assistance continue after assistance ends, this 
126.29  subdivision also governs financial responsibility for the 
126.30  extended medical assistance. 
126.31     Subd. 4.  [EXCLUDED TIME.] When an applicant or participant 
126.32  resides in an excluded time facility as described in section 
126.33  256G.02, subdivision 6, the county that is financially 
126.34  responsible for the applicant or participant is the county in 
126.35  which the applicant or participant last resided outside such a 
126.36  facility immediately before entering the facility.  When an 
127.1   applicant or participant has not resided in this state for any 
127.2   time other than excluded time as defined in section 256G.02, 
127.3   subdivision 6, the county that is financially responsible for 
127.4   the applicant or participant is the county in which the 
127.5   applicant or participant resides on the date the application is 
127.6   signed. 
127.7      Sec. 60.  [256J.76] [COUNTY ADMINISTRATIVE AID.] 
127.8      Subdivision 1.  [ADMINISTRATIVE FUNCTIONS.] Beginning July 
127.9   1, 1997, counties will receive federal funds from the TANF block 
127.10  grant for use in supporting eligibility, fraud control, and 
127.11  other related administrative functions.  The federal funds 
127.12  available for distribution, as determined by the commissioner, 
127.13  must be an amount equal to federal administrative aid 
127.14  distributed for fiscal year 1996 under titles IV-A and IV-F of 
127.15  the Social Security Act in effect prior to October 1, 1996.  
127.16  This amount must include the amount paid for local 
127.17  collaboratives under sections 245.4932 and 256F.13, but must not 
127.18  include administrative aid associated with child care under 
127.19  section 119B.05, with emergency assistance intensive family 
127.20  preservation services under section 256.8711, with 
127.21  administrative activities as part of the employment and training 
127.22  services under section 256.736, or with fraud prevention 
127.23  investigation activities under section 256.983. 
127.24     Subd. 2.  [ALLOCATION OF COUNTY FUNDS.] (a) The 
127.25  commissioner shall determine and allocate the funds available to 
127.26  each county on a calendar year basis. 
127.27     (b) For calendar year 1998 and following years, the 
127.28  commissioner shall allocate the funds available under 
127.29  subdivision 1 in proportion to administrative aid paid to each 
127.30  county for fiscal year 1996, excluding any amounts paid for 
127.31  local collaboratives under sections 245.4932 and 256F.13.  For 
127.32  the period from July 1, 1997, to December 31, 1997, each county 
127.33  shall receive an additional 50 percent of its calendar year 1998 
127.34  allocation. 
127.35     Subd. 3.  [MONTHLY PAYMENTS TO COUNTIES.] The commissioner 
127.36  shall pay counties monthly as federal funds are available.  The 
128.1   commissioner may certify the payments for the first three months 
128.2   of a calendar year. 
128.3      Subd. 4.  [REPORTING REQUIREMENT.] The commissioner shall 
128.4   specify requirements for reporting according to section 256.01, 
128.5   subdivision 2, paragraph (17).  Each county shall be reimbursed 
128.6   at a rate of 50 percent of eligible expenditures up to the limit 
128.7   of its allocation. 
128.8      Sec. 61.  [256J.77] [COUNTY AID FOR SUPPLEMENTAL HOUSING 
128.9   ASSISTANCE.] 
128.10     Subdivision 1.  [PROGRAM ESTABLISHED.] This section may be 
128.11  cited as the county aid for supplemental housing assistance 
128.12  program (CASHAP).  CASHAP is a statewide program intended to 
128.13  help meet the housing needs of legal noncitizens residing in 
128.14  Minnesota on August 22, 1996, who became ineligible for SSI 
128.15  benefits under the Personal Responsibility and Work Opportunity 
128.16  Reconciliation Act of 1996, Public Law Number 104-193. 
128.17     Subd. 2.  [ALLOCATION OF COUNTY AID FOR HOUSING ASSISTANCE 
128.18  FUNDS.] State funds appropriated for the county aid for 
128.19  supplemental housing assistance program shall be allocated to 
128.20  county agencies as follows: 
128.21     (1) for state fiscal year 1998, the allocation shall be 
128.22  based on the county's proportion of the total statewide number 
128.23  of legal noncitizens residing in Minnesota on August 22, 1996, 
128.24  who became ineligible for SSI benefits under the Personal 
128.25  Responsibility and Work Opportunity Reconciliation Act of 1996, 
128.26  Public Law Number 104-193; and 
128.27     (2) for subsequent fiscal years, the allocation shall be 
128.28  based on the county's proportion of total statewide spending for 
128.29  county aid for supplemental housing assistance in the preceding 
128.30  year. 
128.31     Subd. 3.  [USE OF CASHAP FUNDS.] County agencies may spend 
128.32  CASHAP funds at their discretion to assist with the housing 
128.33  needs of legal noncitizens residing in Minnesota on August 22, 
128.34  1996, who became ineligible for SSI under the Personal 
128.35  Responsibility and Work Opportunity Reconciliation Act of 1996, 
128.36  Public Law Number 104-193. 
129.1      Subd. 4.  [REALLOCATION OF UNUSED FUNDS.] Any CASHAP funds 
129.2   not used by a county at the end of a fiscal year shall be 
129.3   returned to the commissioner and reallocated in the following 
129.4   fiscal year as provided in subdivision 2. 
129.5      Sec. 62.  [256J.775] [TRUANCY PREVENTION PROGRAM.] 
129.6      Subdivision 1.  [PILOT PROJECTS.] The commissioner of human 
129.7   services, in consultation with the commissioner of the 
129.8   department of children, families, and learning, shall develop a 
129.9   truancy prevention pilot program to prevent tardiness and ensure 
129.10  school attendance of children receiving assistance under 
129.11  chapters 256, 256J and 256K.  The pilot program shall be 
129.12  developed in at least two school districts, one rural and one 
129.13  urban.  The pilots shall be developed in collaboration with 
129.14  local school districts and county social service agencies and 
129.15  shall serve families on public assistance whose children are 
129.16  under the age of 13 and are subject to the compulsory attendance 
129.17  requirements of section 120.101, and are frequently tardy or are 
129.18  not attending school regularly, as defined by the local school 
129.19  district.  The program shall require the local schools to refer 
129.20  such families to county social service agencies for an 
129.21  assessment and development of a corrective action plan to ensure 
129.22  punctual and regular school attendance by the children in the 
129.23  family.  Families that fail to follow the corrective action plan 
129.24  shall be reported to the county agency and shall have future 
129.25  grants of assistance paid in vendor form under section 256J.39.  
129.26  Families for whom a vendor payment plan has been in effect for 
129.27  at least two months and whose elementary school children 
129.28  continue to arrive late or regularly miss school shall be 
129.29  subject to sanctions under section 256J.46.  Vendor payments and 
129.30  sanctions shall continue until the children demonstrate 
129.31  satisfactory attendance as defined by the local school.  The 
129.32  commissioner of human services may at its discretion expand the 
129.33  program to other districts with the districts' agreement and 
129.34  shall present a report to the legislature by November 30, 1998, 
129.35  on the success of the implementation of the pilot projects 
129.36  authorized by this section. 
130.1      Subd. 2.  [TRANSFER OF ATTENDANCE DATA.] Notwithstanding 
130.2   the requirements of section 13.32, the commissioners of 
130.3   children, families, and learning and human services shall 
130.4   develop procedures to implement the transmittal of data on 
130.5   student attendance to county social services agencies to 
130.6   implement the program authorized by this section. 
130.7      Sec. 63.  [NOTICE AND REFERRAL PROCEDURES FOR DOMESTIC 
130.8   VIOLENCE VICTIMS.] 
130.9      The commissioner of human services shall develop procedures 
130.10  for the county agencies and their contractors to identify 
130.11  victims of domestic violence.  The procedures must provide, at a 
130.12  minimum, universal notification to all applicants and recipients 
130.13  of MFIP-S that: 
130.14     (1) referrals to counseling and supportive services are 
130.15  available for victims of domestic violence; 
130.16     (2) nonpermanent resident battered individuals married to 
130.17  U.S. citizens or permanent residents may be eligible to petition 
130.18  for permanent residency under the Violence Against Women Act, 
130.19  and that referrals to appropriate legal services are available; 
130.20  and 
130.21     (3) victims of domestic violence are exempt from the 
130.22  60-month limit on assistance while the individual is complying 
130.23  with an approved safety plan, as defined in section 256J.49, 
130.24  subdivision 11. 
130.25     Notification must be in writing and orally at the time of 
130.26  application and recertification, when the individual is referred 
130.27  to the title IV-D child support agency, and at the beginning of 
130.28  any job training or work placement assistance program. 
130.29     Sec. 64.  [DOMESTIC VIOLENCE; TRAINING PROGRAMS.] 
130.30     The commissioner of human services shall establish 
130.31  mandatory domestic violence and sexual abuse training programs 
130.32  for employees, contractors, subcontractors, and county welfare 
130.33  agencies of the department of human services who work with 
130.34  applicants and recipients.  To the extent possible, the state or 
130.35  local agency shall not refer applicants or recipients to any 
130.36  employer who has not been trained in dealing with issues related 
131.1   to domestic violence and sexual assault. 
131.2      The commissioner shall establish a request for proposals 
131.3   from experts in domestic violence and sexual assault issues to 
131.4   train employees, contractors, and county welfare agency workers 
131.5   on issues of domestic violence and sexual assault.  To the 
131.6   extent possible, the commissioner will integrate training on 
131.7   domestic violence and sexual assault issues with retraining of 
131.8   state and county employees on implementation of the new TANF 
131.9   program. 
131.10     Sec. 65.  [FORECAST OF COSTS REQUIRED.] 
131.11     For the part of the department of human services' budget 
131.12  devoted to assistance to families grants, the commissioner shall 
131.13  forecast the total projected costs of each component activity 
131.14  biannually, as a part of the November and March forecasts.  The 
131.15  total projected costs must also be recognized in the fund 
131.16  balance. 
131.17     Sec. 66.  [TOTAL HOUSEHOLD INCOME COUNTED.] 
131.18     Notwithstanding any provision of Minnesota Statutes, 
131.19  chapter 256J, to the contrary, eligibility for assistance under 
131.20  Minnesota Statutes, chapter 256J, the Minnesota family 
131.21  investment program-statewide, must count income from all 
131.22  unrelated individuals living in the household in order to 
131.23  qualify for MFIP-S assistance. 
131.24     Sec. 67.  [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 
131.25     The legislature makes the following findings: 
131.26     (a) The legislature is statutorily required to balance the 
131.27  state budget. 
131.28     (b) The task of balancing the state budget is made 
131.29  difficult in the area of the new federal welfare reform program 
131.30  for needy families due to the dramatic change in program design 
131.31  that this state and all other states must experience, rendering 
131.32  historical data on client behavior, interstate migration, and 
131.33  welfare spending patterns of dubious value. 
131.34     (c) Many states are using the flexibility given to them 
131.35  under the federal welfare reform bill to enact more restrictive 
131.36  programs than Minnesota. 
132.1      (d) Minnesota county human service agencies have reported 
132.2   to the commissioner of human services verified cases of families 
132.3   moving from other states to this state at least in part because 
132.4   this state has higher public assistance benefits. 
132.5      (e) Within the state's limited resources, the legislature 
132.6   wishes to manage funds appropriated under this part to best 
132.7   provide for needy Minnesota families and their children. 
132.8      (f) To that end, the legislature has adopted a policy of 
132.9   requiring families to be in this state for at least 30 days 
132.10  before being eligible for benefits and providing families in 
132.11  which no mandatory member has resided in Minnesota for the 
132.12  previous 12 months a benefit based on the grant they would have 
132.13  received had they applied for benefits in their previous state 
132.14  of residence. 
132.15     (g) Therefore, if the policy designed to make welfare 
132.16  benefits a neutral factor in the decision to move to Minnesota 
132.17  and to best manage the benefit appropriation for needy Minnesota 
132.18  families and their children, while providing a safety net for 
132.19  recent interstate migrants, is enjoined or otherwise prevented 
132.20  from being implemented, the simple residency requirement of 
132.21  section 256J.12 shall continue to be in effect and the 
132.22  commissioner shall do the following:  (1) ratably reduce 
132.23  benefits under AFDC and MFIP-S, but only in an amount sufficient 
132.24  to remain within the forecasted budgets for those programs; 
132.25     (2) notify the fiscal and policy chairs of the house and 
132.26  senate human services committees that the reductions have taken 
132.27  place; and 
132.28     (3) formulate a plan to be presented to the next 
132.29  legislative session. 
132.30     Vendor payments under this paragraph shall be for rent and 
132.31  utilities, up to the limit of the grant amount.  Residual 
132.32  amounts, if any, shall be paid directly to the assistance unit. 
132.33     Sec. 68.  [TRANSFER FUNDING.] 
132.34     Effective July 1, 1997, all funding related to the child 
132.35  care assistance programs under Minnesota Statutes, section 
132.36  256.035, subdivision 8, is transferred to the commissioner of 
133.1   children, families, and learning. 
133.2      Sec. 69.  [SEVERABILITY CLAUSE.] 
133.3      If any provision of this act is enjoined from 
133.4   implementation or found unconstitutional by any court of 
133.5   competent jurisdiction, the remaining provisions shall remain 
133.6   valid and shall be given full effect. 
133.7      Sec. 70.  [TRIBAL EMPLOYMENT AND TRAINING PROGRAM; REPORT.] 
133.8      Subdivision 1.  [AUTHORITY.] The commissioner of human 
133.9   services, in conjunction with Indian tribes in the state, shall 
133.10  develop and present to the legislature a plan for providing 
133.11  state funds in support of a family assistance program 
133.12  administered by Indian tribes who have a reservation in this 
133.13  state and who have federal approval to operate a tribal 
133.14  program.  This plan must identify the primary arrangements 
133.15  needed to effect tribal administration and needed funding, 
133.16  including agreements with a consortium of tribes, that 
133.17  accurately reflects the state funding levels for Indian people 
133.18  as would otherwise be available to MFIP-S program recipients.  
133.19  This plan must be developed consistent with the requirements set 
133.20  forth in the Personal Responsibility and Work Opportunity 
133.21  Reconciliation Act of 1996, Public Law Number 104-193, section 
133.22  412(b)(1)(B).  For purposes of this section, "Indian tribe" 
133.23  means a tribe, band, nation, or other federally recognized group 
133.24  or community of Indians. 
133.25     Subd. 2.  [REPORT TO THE LEGISLATURE.] The plan referred to 
133.26  in subdivision 1 and any resulting proposal for legislation must 
133.27  be presented to the legislature by December 15, 1997. 
133.28     Subd. 3.  [TRIBAL AGREEMENTS.] Once the plan in subdivision 
133.29  1 is presented to and approved by the legislature and signed 
133.30  into law, the commissioner is authorized to enter into 
133.31  agreements with Indian tribes or consortia of tribes consistent 
133.32  with the plan. 
133.33     Subd. 4.  [TRIBAL AND STATE COORDINATION.] The commissioner 
133.34  shall consult with Indian tribes in the state when formulating 
133.35  general policies regarding the implementation of the state's 
133.36  public assistance program operated under title IV-A of the 
134.1   Social Security Act.  The commissioner shall take into 
134.2   consideration circumstances affecting Indians, including 
134.3   circumstances identified by Indian tribes, when designing the 
134.4   state's program.  The state shall provide Indians with equitable 
134.5   access to assistance as provided in the Personal Responsibility 
134.6   and Work Opportunity Reconciliation Act of 1996, Public Law 
134.7   Number 104-193, section 402(a)(5). 
134.8      Subd. 5.  [EMPLOYMENT TRAINING.] Nothing in this section 
134.9   precludes any Indian tribe in this state from participating in 
134.10  employment and training or child care programs otherwise 
134.11  available by law to Indian tribes under: 
134.12     (1) the MFIP program under Minnesota Statutes, sections 
134.13  256.031 to 256.0351, or its successor program; 
134.14     (2) project STRIDE under Minnesota Statutes, section 
134.15  256.736, or its successor program; 
134.16     (3) child care programs for tribal program participants; 
134.17  and 
134.18     (4) the Minnesota injury protection program. 
134.19     Subd. 6.  [TRIBAL SOVEREIGN STATUS.] Nothing in this 
134.20  section shall be construed to waive, modify, expand, or diminish 
134.21  the sovereignty of federally recognized Indian tribes, nor shall 
134.22  any Indian tribes be required in any way to deny their 
134.23  sovereignty or waive their immunities except as mandated by 
134.24  federal law as a requirement of entering into an agreement with 
134.25  the state under this section. 
134.26     Subd. 7.  [PLANNING.] The commissioner of human services 
134.27  shall assist tribes, in a collaborative effort, with the 
134.28  development of the plan under subdivision 1 and efforts 
134.29  associated with such development.  Such efforts shall include, 
134.30  but not be limited to, data collection regarding:  receipt of 
134.31  public assistance by Indians, unemployment rates within tribal 
134.32  service delivery areas, and dissemination of information and 
134.33  research.  The commissioner shall provide technical assistance 
134.34  to tribal welfare reform task force members and tribes regarding 
134.35  the implementation and operation of public assistance programs 
134.36  and assistance to tribes to develop the plan under subdivision 1.
135.1      Sec. 71.  [REPAYMENT OF POST-SECONDARY EDUCATION FUNDS; 
135.2   PROPOSAL REQUIRED.] 
135.3      By February 15, 1998, the commissioner of human services, 
135.4   in consultation with representatives of county agencies, must 
135.5   develop and submit to the legislature a proposal that specifies 
135.6   a methodology for the repayment of funds under Minnesota 
135.7   Statutes 1996, section 256J.53, subdivision 4.  The 
135.8   commissioner's proposal must not apply the methodology 
135.9   retroactively to participants who had a post-secondary education 
135.10  or training program approved under that section before the date 
135.11  that the commissioner's proposal, if enacted, becomes effective. 
135.12     Sec. 72.  [UNEXPENDED CHILD CARE FUNDS.] 
135.13     There shall be created in the general fund a child care 
135.14  assistance reserve account.  All unexpended child care 
135.15  assistance grant funds for the biennium ending June 30, 1999 
135.16  must not cancel to the general fund but shall be transferred to 
135.17  the child care assistance reserve account.  Amounts remaining in 
135.18  this reserve account do not cancel. 
135.19     Sec. 73.  [REPEALER.] 
135.20     (a) Minnesota Statutes 1996, sections 256.12, subdivisions 
135.21  9, 10, 14, 15, 19, 20, 21, 22, and 23; 256.72; 256.73, 
135.22  subdivisions 1, 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 10, and 
135.23  11; 256.7341; 256.736, subdivision 18; 256.7365, subdivisions 1, 
135.24  2, 3, 4, 5, 6, 7, and 9; 256.7366; 256.737; 256.738; 256.7381; 
135.25  256.7382; 256.7383; 256.7384; 256.7385; 256.7386; 256.7387; 
135.26  256.7388; 256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 
135.27  256.745; 256.75; 256.76, subdivision 1; 256.78; 256.80; 256.81; 
135.28  256.82; 256.84; 256.85; 256.86; 256.863; 256.871; and 256.879, 
135.29  are repealed effective July 1, 1998. 
135.30     (b) From January 1, 1998, to March 31, 1998, the statutory 
135.31  sections listed in paragraph (a) apply only in counties that 
135.32  operate an MFIP field trial and that continue to provide project 
135.33  STRIDE services to members of the MFIP comparison group, and in 
135.34  those counties that have not completed conversion to MFIP-S 
135.35  employment and training services. 
135.36     (c) From April 1, 1998, through June 30, 1998, the sections 
136.1   listed in paragraph (a) are effective only in counties that 
136.2   operate an MFIP field trial and that continue to provide project 
136.3   STRIDE services to members of the comparison group. 
136.4      Sec. 74.  [NOTICE OF EARLY IMPLEMENTATION.] 
136.5      Notwithstanding any inconsistent provisions of sections 
136.6   256.12, 256.72 to 256.87, and 256D.01 to 256D.21, a county may 
136.7   implement the provisions of chapter 256J or 256K before January 
136.8   1, 1998, if the county submits a written notice to the 
136.9   commissioner of human services that specifies the date of 
136.10  implementation and concisely outlines the county's plan for 
136.11  early implementation.  Upon receipt of a county's notice, the 
136.12  commissioner must review the county's plan for feasibility of 
136.13  implementation.  The commissioner's review must occur in a 
136.14  timely manner.  The commissioner may request modifications to 
136.15  the county's plan to increase its feasibility.  When the 
136.16  commissioner agrees with the county's plan, the commissioner 
136.17  must publish a notice in the state register that specifies the 
136.18  date upon which the MFIP-S program replaces the AFDC and family 
136.19  GA programs in the county. 
136.20     Sec. 75.  [EFFECTIVE DATE.] 
136.21     Subdivision 1.  [GENERAL EFFECTIVE DATE.] Except as 
136.22  specified in subdivision 2, article 1 is effective July 1, 1997. 
136.23     Subd. 2.  [TRANSITION EFFECTIVE DATE.] Sections 1, 
136.24  subdivisions 1 and 3; 4 to 6; 9 and 10; 11, subdivision 2; 12 
136.25  and 13; 22 to 25; 26, subdivisions 3 and 4 to 10; 27, 
136.26  subdivision 9; 28; 30; 33 and 34; and 36 to 59, are effective 
136.27  January 1, 1998, except that for counties who elect to begin 
136.28  operation of MFIP-S prior to January 1, 1998, these sections 
136.29  take effect for each county on the date that MFIP-S is 
136.30  implemented in the county. 
136.31                             ARTICLE 2
136.32                         WORK FIRST PROGRAM
136.33     Section 1.  [256K.01] [WORK FIRST PROGRAM.] 
136.34     Subdivision 1.  [CITATION.] Sections 256K.01 to 256K.09 may 
136.35  be cited as the work first program. 
136.36     Subd. 2.  [DEFINITIONS.] As used in sections 256K.01 to 
137.1   256K.09, the following words have the meanings given them. 
137.2      (a) "Applicant" means an individual who has submitted a 
137.3   request for assistance and has never received an AFDC, MFIP-S or 
137.4   a family general assistance grant through the MAXIS computer 
137.5   system as a caregiver, or an applicant whose AFDC, MFIP-S or 
137.6   family general assistance application was denied or benefits 
137.7   were terminated due to noncompliance with work first 
137.8   requirements. 
137.9      (b) "Application date" means the date any Minnesota county 
137.10  agency receives a signed and dated combined application form 
137.11  Part I. 
137.12     (c) "CAF" means a combined application form on which people 
137.13  apply for multiple assistance programs, including:  cash 
137.14  assistance, refugee cash assistance, Minnesota supplemental aid, 
137.15  food stamps, medical assistance, general assistance medical 
137.16  care, emergency assistance, emergency medical assistance, and 
137.17  emergency general assistance medical care. 
137.18     (d) "Caregiver" means a parent or eligible adult, including 
137.19  a pregnant woman, who is part of the assistance unit that has 
137.20  applied for or is receiving an AFDC, MFIP-S, or family general 
137.21  assistance grant.  In a two-parent family, both parents are 
137.22  caregivers. 
137.23     (e) "Child support" means a voluntary or court-ordered 
137.24  payment by absent parents in an assistance unit. 
137.25     (f) "Commissioner" means the commissioner of human services.
137.26     (g) "Department" means the department of human services. 
137.27     (h) "Employability development plan" or "EDP" means a plan 
137.28  developed by the applicant, with advice from the employment 
137.29  advisor, for the purposes of identifying an employment goal, 
137.30  improving work skills through certification or education, 
137.31  training or skills recertification, and which addresses barriers 
137.32  to employment. 
137.33     (i) "EDP status report form" means a program form on which 
137.34  deferred participants indicate what has been achieved in the 
137.35  participant's employability development plan and the types of 
137.36  problems encountered. 
138.1      (j) "Employment advisor" means a program staff member who 
138.2   is qualified to assist the participant to develop a job search 
138.3   or employability development plan, match the participant with 
138.4   existing job openings, refer the participant to employers, and 
138.5   has an extensive knowledge of employers in the area. 
138.6      (k) "Financial specialist" means a program staff member who 
138.7   is trained to explain the benefits offered under the program, 
138.8   determine eligibility for different assistance programs, and 
138.9   broker other resources from employers and the community. 
138.10     (l) "Job network" means individuals that a person may 
138.11  contact to learn more about particular companies, inquire about 
138.12  job leads, or discuss occupational interests and expertise. 
138.13     (m) "Job search allowance" means the amount of financial 
138.14  assistance needed to support job search. 
138.15     (n) "Job search plan" or "JSP" means the specific plan 
138.16  developed by the applicant, with advice from the employment 
138.17  advisor, to secure a job as soon as possible, and focus the 
138.18  scope of the job search process and other activities.  
138.19     (o) "JSP status report form" means a program form on which 
138.20  participants indicate the number of submitted job applications, 
138.21  job interviews held, jobs offered, other outcomes achieved, 
138.22  problems encountered, and the total number of hours spent on job 
138.23  search per week. 
138.24     (p) "Participant" means a recipient who is required to 
138.25  participate in the work first program. 
138.26     (q) "Program" means the work first program. 
138.27     (r) "Provider" means an employment and training agency 
138.28  certified by the commissioner of economic security under section 
138.29  268.871, subdivision 1. 
138.30     (s) "Self-employment" means employment where people work 
138.31  for themselves rather than an employer, are responsible for 
138.32  their own work schedule, and do not have taxes or FICA withheld 
138.33  by an employer. 
138.34     (t) "Self-sufficiency agreement" means the agreement 
138.35  between the county or its representative and the applicant that 
138.36  describes the activities that the applicant must conduct and the 
139.1   necessary services and aid to be furnished by the county to 
139.2   enable the individual to meet the purpose of either the job 
139.3   search plan or employability development plan. 
139.4      (u) "Subsidized job" means a job that is partly reimbursed 
139.5   by the provider for cost of wages for participants in the 
139.6   program. 
139.7      Subd. 3.  [ESTABLISHING WORK FIRST PROGRAM.] The 
139.8   commissioners of human services and economic security may 
139.9   develop and establish pilot projects which require applicants 
139.10  for aid under AFDC, MFIP-S or family general assistance to meet 
139.11  the requirements of the work first program.  The purpose of the 
139.12  program is to: 
139.13     (1) ensure that the participant is working as early as 
139.14  possible; 
139.15     (2) promote greater opportunity for economic self-support, 
139.16  participation, and mobility in the work force; and 
139.17     (3) minimize the risk for long-term welfare dependency. 
139.18     Subd. 4.  [PROGRAM ADMINISTRATION.] The program must be 
139.19  administered in a way that, in addition to the county agency, 
139.20  other sectors in the community such as employers from the public 
139.21  and private sectors, not-for-profit organizations, educational 
139.22  and social service agencies, labor unions, and neighborhood 
139.23  associations are involved. 
139.24     Subd. 5.  [PROGRAM DESIGN.] The program shall meet the 
139.25  following principles: 
139.26     (1) work is the primary means of economic support; 
139.27     (2) the individual's potential is reviewed during the 
139.28  application process to determine how to approach the job market 
139.29  aggressively; 
139.30     (3) public aid such as cash and medical assistance, child 
139.31  care, child support assurance, and other cash benefits are used 
139.32  to support intensive job search and immediate work; and 
139.33     (4) maximum use is made of tax credits to supplement income.
139.34     Subd. 6.  [DUTIES OF COMMISSIONER.] In addition to any 
139.35  other duties imposed by law, the commissioner shall: 
139.36     (1) establish the program according to sections 256K.01 to 
140.1   256K.09 and allocate money as appropriate to pilot counties 
140.2   participating in the program; 
140.3      (2) provide systems development and staff training; 
140.4      (3) accept and supervise the disbursement of any funds that 
140.5   may be provided from other sources for use in the demonstration 
140.6   program; and 
140.7      (4) direct a study to safeguard the interests of children. 
140.8      Subd. 7.  [DUTIES OF COUNTY AGENCY.] The county agency 
140.9   shall: 
140.10     (1) collaborate with the commissioners of human services 
140.11  and economic security and other agencies to develop, implement, 
140.12  and evaluate the demonstration of the work first program; 
140.13     (2) operate the work first program in partnership with 
140.14  private and public employers, local industry councils, labor 
140.15  unions, and employment, educational, and social service 
140.16  agencies, according to subdivision 4; and 
140.17     (3) ensure that program components such as client 
140.18  orientation, immediate job search, job development, creation of 
140.19  temporary public service jobs, job placements, and postplacement 
140.20  follow-up are implemented according to the work first program. 
140.21     Subd. 8.  [DUTIES OF PARTICIPANT.] To be eligible for an 
140.22  AFDC, MFIP-S or family general assistance benefit, a participant 
140.23  shall cooperate with the county agency, the provider, and the 
140.24  participant's employer in all aspects of the program. 
140.25     Sec. 2.  [256K.015] [ELIGIBILITY FOR WORK FIRST.] 
140.26     To be eligible for work first, an applicant must be 
140.27  determined eligible for AFDC or MFIP-S, whichever is in effect 
140.28  in the county, and must meet all the requirements of AFDC or 
140.29  MFIP-S, whichever is applicable, to the extent that those 
140.30  requirements are not inconsistent with this chapter. 
140.31     Sec. 3.  [256K.02] [PROGRAM PARTICIPANTS; PROGRAM 
140.32  EXPECTATIONS.] 
140.33     All applicants selected for participation are expected to 
140.34  meet the requirements under the work first program.  Payments 
140.35  for rent and utilities up to the AFDC, MFIP-S or family general 
140.36  assistance benefits to which the assistance unit is entitled 
141.1   will be vendor paid for as many months as the applicant is 
141.2   eligible or six months, whichever comes first.  The residual 
141.3   amount after vendor payment, if any, will be paid to the 
141.4   applicant, unless it is used as a wage subsidy under section 
141.5   256K.09, subdivision 2. 
141.6      Sec. 4.  [256K.03] [PROGRAM REQUIREMENTS.] 
141.7      Subdivision 1.  [NOTIFICATION OF PROGRAM.] Except for the 
141.8   provisions in this section, the provisions for the AFDC, MFIP-S, 
141.9   and family general assistance application process shall be 
141.10  followed.  Within two days after receipt of a completed combined 
141.11  application form, the county agency must refer to the provider 
141.12  the applicant who meets the conditions under section 256K.02, 
141.13  and notify the applicant in writing of the program including the 
141.14  following provisions: 
141.15     (1) notification that, as part of the application process, 
141.16  applicants are required to attend orientation, to be followed 
141.17  immediately by a job search; 
141.18     (2) the program provider, the date, time, and location of 
141.19  the scheduled program orientation; 
141.20     (3) the procedures for qualifying for and receiving 
141.21  benefits under the program; 
141.22     (4) the immediate availability of supportive services, 
141.23  including, but not limited to, child care, transportation, 
141.24  medical assistance, and other work-related aid; and 
141.25     (5) the rights, responsibilities, and obligations of 
141.26  participants in the program, including, but not limited to, the 
141.27  grounds for exemptions and deferrals, the consequences for 
141.28  refusing or failing to participate fully, and the appeal process.
141.29     Subd. 2.  [PROGRAM ORIENTATION.] The county must give a 
141.30  face-to-face orientation regarding the program to the applicant 
141.31  within five days after the date of application.  The orientation 
141.32  must be designed to inform the applicant of: 
141.33     (1) the importance of locating and obtaining a job as soon 
141.34  as possible; 
141.35     (2) benefits to be provided to support work; 
141.36     (3) the manner by which benefits shall be paid; 
142.1      (4) how other supportive services such as medical 
142.2   assistance, child care, transportation, and other work-related 
142.3   aid shall be available to support job search and work; 
142.4      (5) the consequences for failure without good cause to 
142.5   comply with program requirements; and 
142.6      (6) the appeal process. 
142.7      Subd. 3.  [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 
142.8   SPECIALIST.] At the end of orientation, the provider must assign 
142.9   an employment advisor and a financial specialist to the 
142.10  applicant.  With advice from the employment advisor, the 
142.11  applicant must develop a job search plan based on existing job 
142.12  markets, prior employment, work experience, and transferable 
142.13  work skills, unless exempt under subdivision 5.  A job search 
142.14  must be planned and conducted for a period of up to eight 
142.15  consecutive weeks from the date of application and for at least 
142.16  32 hours per week.  The types of and target number of job 
142.17  openings to be pursued per week must be written in the job 
142.18  search plan.  The following activities may be included in the 
142.19  job search plan: 
142.20     (1) motivational counseling; 
142.21     (2) job networking or training on how to locate job 
142.22  openings; 
142.23     (3) development of a personal resume; and 
142.24     (4) information on how to conduct job interviews and 
142.25  establish a personal job network. 
142.26     Following the development of the job search plan or the 
142.27  employability development plan under subdivision 8, the 
142.28  financial specialist must interview the applicant to determine 
142.29  eligibility for and the extent of benefits under sections 
142.30  256K.06 and 256K.07 to support the job search or employability 
142.31  development plan.  The provider must attach to the appropriate 
142.32  plan the summary of the necessary enabling services and benefits 
142.33  to be furnished by the provider.  The provider or its 
142.34  representative and the applicant must sign the plan, with its 
142.35  attachment, to indicate a self-sufficiency agreement between the 
142.36  provider and the participant. 
143.1      Subd. 4.  [IMMEDIATE JOB SEARCH.] An applicant must be 
143.2   required to begin job search within seven days after the date of 
143.3   application for at least 32 hours per week for up to eight 
143.4   weeks, unless exempt under subdivision 5 or deferred under 
143.5   subdivision 8.  For an applicant who is working at least 20 
143.6   hours per week, job search shall consist of 12 hours per week 
143.7   for up to eight weeks.  Within the first five days of job 
143.8   search, the applicant is required to initiate informational 
143.9   contacts with prospective employers, generate additional job 
143.10  leads from the job network, review references and experiences 
143.11  from previous employment, and carry out the other activities 
143.12  under the job search plan developed under subdivision 3. 
143.13     Subd. 5.  [EXEMPTION CATEGORIES.] (a) The applicant will be 
143.14  exempt from the job search requirements and development of a job 
143.15  search plan and an employability development plan under 
143.16  subdivisions 3, 4, and 8 if the applicant belongs to any of the 
143.17  following groups: 
143.18     (1) caregivers under age 20 who have not completed a high 
143.19  school education and are attending high school on a full-time 
143.20  basis; 
143.21     (2) individuals who are age 60 or older; 
143.22     (3) individuals who are suffering from a professionally 
143.23  certified permanent or temporary illness, injury, or incapacity 
143.24  which is expected to continue for more than 30 days and which 
143.25  prevents the person from obtaining or retaining employment; 
143.26     (4) caregivers whose presence in the home is needed because 
143.27  of illness or incapacity of another member in the household; 
143.28     (5) women who are pregnant, if it has been medically 
143.29  verified that the child is expected to be born within the next 
143.30  six months; 
143.31     (6) caregivers or other caregiver relatives of a child 
143.32  under the age of three who personally provide full-time care for 
143.33  the child; 
143.34     (7) individuals employed at least 30 hours per week; 
143.35     (8) individuals for whom participation would require a 
143.36  round trip commuting time by available transportation of more 
144.1   than two hours, excluding transporting of children for child 
144.2   care; 
144.3      (9) individuals for whom lack of proficiency in English is 
144.4   a barrier to employment, provided such individuals are 
144.5   participating in an intensive program which lasts no longer than 
144.6   six months and is designed to remedy their language deficiency; 
144.7      (10) individuals who, because of advanced age or lack of 
144.8   ability, are incapable of gaining proficiency in English, as 
144.9   determined by the county social worker, shall continue to be 
144.10  exempt under this subdivision and are not subject to the 
144.11  requirement that they be participating in a language program; 
144.12     (11) individuals under such duress that they are incapable 
144.13  of participating in the program, as determined by the county 
144.14  social worker; or 
144.15     (12) individuals in need of refresher courses for purposes 
144.16  of obtaining professional certification or licensure. 
144.17     (b) In a two-parent family, only one caregiver may be 
144.18  exempted under paragraph (a), clauses (4) and (6). 
144.19     Subd. 6.  [COUNTY DUTIES.] The county must act on the 
144.20  application within 30 days of the application date.  If the 
144.21  applicant is not eligible, the application will be denied and 
144.22  the county must notify the applicant of the denial in writing.  
144.23  An applicant whose application has been denied may be allowed to 
144.24  complete the job search plan; however, supportive services will 
144.25  not be provided. 
144.26     Subd. 7.  [JOB SEARCH PLAN STATUS REPORT.] The applicant or 
144.27  participant must submit a completed job search plan status 
144.28  report form to the employment advisor every two weeks during the 
144.29  job search process, with the first completed form due 21 days 
144.30  after the date of application. 
144.31     Subd. 8.  [EMPLOYABILITY DEVELOPMENT PLAN.] At the 
144.32  discretion and approval of the employment advisor, the applicant 
144.33  may be deferred from the requirement to conduct at least 32 
144.34  hours of job search per week for up to eight consecutive weeks, 
144.35  if during the development of the job search plan, the applicant 
144.36  is determined to: 
145.1      (1) not have worked within the past 12 months and not have 
145.2   a high school or a general equivalency diploma provided the 
145.3   applicant agrees to develop and carry out an employability 
145.4   development plan instead of job search, and concurrently work 
145.5   for at least 16 hours per week in a temporary public service 
145.6   job.  The employability development plan must include the 
145.7   employment goals and specific outcomes the participant must 
145.8   achieve; 
145.9      (2) be within six months of completing any post-secondary 
145.10  training program, provided that the applicant agrees to develop 
145.11  and carry out an employability development plan instead of a job 
145.12  search, and concurrently work for a minimum number of hours per 
145.13  week in a temporary public service job.  The employability 
145.14  development plan must include the employment goal and specific 
145.15  outcomes that the participant must achieve.  The applicant that 
145.16  is deferred under this subdivision may choose to work in a job 
145.17  other than a public service job for a minimum number of hours 
145.18  per week rather than in a temporary public service job.  For 
145.19  individuals who are participating in an educational program 
145.20  under this clause, and who are attending school full time as 
145.21  determined by the institution, there is no work requirement.  
145.22  For individuals participating in an educational program on a 
145.23  part-time basis as determined by the institution, the minimum 
145.24  number of hours that a participant must work shall be decreased 
145.25  as the participant increases the number of credit hours taken, 
145.26  except that the participant shall not be required to work more 
145.27  than eight hours per week. 
145.28     During vacation periods of one month or more, the 16-hour 
145.29  per week minimum work requirement shall apply.  The applicant 
145.30  may be deferred for up to six months.  At the end of the 
145.31  deferment period, the participant must develop a job search plan 
145.32  and conduct at least 32 hours of job search per week for up to 
145.33  eight consecutive weeks, and submit reports as required under 
145.34  subdivisions 3 and 4; or 
145.35     (3) be in treatment for chemical dependency, be a victim of 
145.36  domestic abuse, or be homeless, provided that the applicant 
146.1   agrees to develop an employability development plan instead of a 
146.2   job search plan, and immediately follow through with the 
146.3   activities in the employability development plan.  The 
146.4   employability development plan must include specific outcomes 
146.5   that the applicant must achieve for the duration of the 
146.6   employability development plan and activities which are needed 
146.7   to address the issues identified.  Under this clause, the 
146.8   applicant may be deferred for up to eight weeks. 
146.9      Subd. 9.  [EDP STATUS REPORT.] The participant who is 
146.10  deferred from job search under subdivision 8 must submit a 
146.11  completed employability development plan status report form to 
146.12  the employment advisor every 14 days as long as the participant 
146.13  continues to be deferred, with the first completed form due 21 
146.14  days after the date of application. 
146.15     Subd. 10.  [JOB OFFER.] The participant must not refuse any 
146.16  job offer, provided that the job is within the participant's 
146.17  physical and mental abilities, pays hourly gross wages of not 
146.18  less than the applicable state or federal minimum wage, and 
146.19  meets health and safety standards set by federal, state, and 
146.20  county agencies.  If a job is offered, the participant must 
146.21  inform the provider immediately to redetermine eligibility for 
146.22  and extent of benefits and services to support work.  To enhance 
146.23  job retention, the provider may provide services such as 
146.24  motivational counseling or on-site problem solving for up to six 
146.25  months.  The participant who has completed at least six months 
146.26  of work in a nonsubsidized job shall be encouraged to 
146.27  participate in a training program that would improve the 
146.28  participant's ability to obtain a job that pays a higher wage. 
146.29     Subd. 11.  [DUTY TO REPORT.] The participant must 
146.30  immediately inform the provider regarding any changes related to 
146.31  the participant's employment status. 
146.32     Subd. 12.  [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 
146.33  SERVICE JOB.] (a) If after the completion of the maximum eight 
146.34  weeks of job search the participant has failed to secure a 
146.35  nonsubsidized or a subsidized job for at least 32 hours per 
146.36  week, or does not earn a net income from self-employment that is 
147.1   equal to at least the AFDC, MFIP-S or family general assistance 
147.2   monthly grant for the household size, whichever is applicable, 
147.3   the participant is required to work in a temporary public 
147.4   service job for up to 67 working days for (1) at least 32 hours 
147.5   per week, or (2) a period equivalent to the result of dividing 
147.6   the monthly grant amount which the participant would otherwise 
147.7   receive, by the federal hourly minimum wage, or applicable 
147.8   hourly state minimum wage, or the hourly rate of pay for 
147.9   individuals employed in the same occupation at the site, 
147.10  whichever is highest.  If the result is more than 128 hours per 
147.11  month, the participant's requirement to work in a temporary 
147.12  public service job shall not be more than 32 hours per week. 
147.13     (b) Within seven days from the date of application, the 
147.14  participant who is deferred under subdivision 8, clause (1) or 
147.15  (2), and is participating in an educational program on a 
147.16  part-time basis must work in a temporary public service job as 
147.17  required under subdivision 8, clause (2). 
147.18     (c) The provider shall strive to match the profile of the 
147.19  participant with the needs of the employers that are 
147.20  participating in a temporary jobs program under section 256K.05. 
147.21     Sec. 5.  [256K.04] [JOB DEVELOPMENT AND SUBSIDY.] 
147.22     Subdivision 1.  [JOB INVENTORY.] The provider must develop 
147.23  an inventory of job openings including full-time, part-time, 
147.24  permanent, temporary or seasonal, and training positions in 
147.25  partnership with private and public employers, local industry 
147.26  councils, and employment agencies.  To the extent possible, the 
147.27  inventory must include specific information regarding job 
147.28  openings, must be updated on a weekly basis, and must be 
147.29  available to all participants on a daily basis. 
147.30     Subd. 2.  [JOB SUBSIDY.] The county may use all or part of 
147.31  the AFDC, MFIP-S or family general assistance benefit as a 
147.32  subsidy to employers for the purpose of providing work 
147.33  experience or training to the participant who has completed the 
147.34  job search plan, provided that: 
147.35     (1) the job to be subsidized is permanent and full time, 
147.36  and pays an hourly rate of at least $6 per hour; 
148.1      (2) the employer agrees to retain the participant after 
148.2   satisfactory completion of the work experience or training 
148.3   period; and 
148.4      (3) the participant has first tried to secure a 
148.5   nonsubsidized job by following the job search plan.  
148.6      The subsidy may be available for up to six months. 
148.7      Sec. 6.  [256K.05] [TEMPORARY JOBS PROGRAM.] 
148.8      Subdivision 1.  [PROGRAM ESTABLISHED.] The provider must 
148.9   establish and operate a program to provide temporary jobs to 
148.10  participants who, after eight weeks of job search, are not hired 
148.11  into a nonsubsidized or a subsidized job, or are deferred under 
148.12  section 256K.03, subdivision 8.  The temporary jobs to be 
148.13  created under this section must be public service jobs that 
148.14  serve a useful public service such as:  health, social service, 
148.15  environmental protection, education, urban and rural development 
148.16  and redevelopment, welfare, recreation, public facilities, 
148.17  public safety, community service, services to the aged or 
148.18  disabled citizens, and child care. 
148.19     Subd. 2.  [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 
148.20  JOBS.] The provider must assign the participant who (1) is 
148.21  within completion of the required eight weeks of job search and 
148.22  has failed to secure a nonsubsidized or a subsidized job for at 
148.23  least 32 hours per week, or (2) does not earn a net income from 
148.24  self-employment that is equal to at least the AFDC, MFIP-S or 
148.25  family general assistance monthly grant for the household size, 
148.26  whichever is applicable, to a temporary public service job.  The 
148.27  assignment must be made seven days before the end of the job 
148.28  search and be based on section 256K.03, subdivision 12.  The 
148.29  participant that is deferred under section 256K.03, subdivision 
148.30  8, will be assigned by the provider to a temporary public 
148.31  service job within seven days after the application. 
148.32     Subd. 3.  [PARTICIPANT'S STATUS.] The participant who is 
148.33  working in a temporary public service job under this section is 
148.34  not considered an employee for the purposes of unemployment 
148.35  insurance compensation, retirement, or civil service laws, and 
148.36  shall not perform work ordinarily performed by a public employee.
149.1      Subd. 4.  [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 
149.2   discretion of the provider, the participant who is working in a 
149.3   temporary public service job under section 256K.03, subdivision 
149.4   12, may be required to continue to look for a job for up to 
149.5   eight hours per week in addition to working.  The participant 
149.6   who is working at least 20 hours per week but less than 32 hours 
149.7   per week in a nonsubsidized or subsidized job may be required to 
149.8   look for a job for up to 20 hours per week in lieu of work in 
149.9   the temporary public service job so that the total hours of work 
149.10  and job search is not more than 40 hours per week. 
149.11     Subd. 5.  [EXCUSED ABSENCES.] The participant who is 
149.12  working in a temporary public service job may be allowed excused 
149.13  absences from the assigned temporary job site up to eight hours 
149.14  per month.  For purposes of this subdivision, "excused absence" 
149.15  means absence due to temporary illness or injury of the 
149.16  caregiver or a member of the caregiver's family, the 
149.17  unavailability of licensed child care or unavailability of 
149.18  transportation needed to go to and from the work site, a job 
149.19  interview, or a nonmedical emergency.  For purposes of this 
149.20  subdivision, "emergency" means a sudden, unexpected occurrence 
149.21  or situation of a serious or urgent nature that requires action. 
149.22     Subd. 6.  [MOVE TO A DIFFERENT COUNTY.] If the applicant or 
149.23  recipient who is required to participate in the work first 
149.24  program moves to a different county in this state, the benefits 
149.25  and enabling services agreed upon in the self-sufficiency 
149.26  agreement shall be provided by the pilot county where the 
149.27  applicant or recipient originated, provided the move was part of 
149.28  the job search or employability development plan.  If the 
149.29  applicant or recipient is moving to a different county for 
149.30  failure to comply with the requirements of the work first 
149.31  program, the applicant or recipient will not be eligible for 
149.32  MFIP-S in this state for at least six months from the date of 
149.33  the move. 
149.34     Sec. 7.  [256K.06] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 
149.35  RENT AND UTILITIES VENDOR PAYMENT.] 
149.36     Payments for rent and utilities up to the amount of AFDC, 
150.1   MFIP-S, or family general assistance benefits to which the 
150.2   assistance unit is entitled shall be provided in the form of 
150.3   vendor payments for as many months as the applicant is eligible 
150.4   or six months, whichever comes first.  The residual amount after 
150.5   vendor payment, if any, will be paid to the AFDC, MFIP-S or 
150.6   family general assistance recipient, unless it is used as a wage 
150.7   subsidy under section 256K.09, subdivision 2.  This provision 
150.8   shall apply to all applicants including those meeting the 
150.9   exemption categories under section 256K.03, subdivision 5, or 
150.10  deferral categories under section 256K.03, subdivision 8.  To 
150.11  the extent needed, a job search allowance shall be provided for 
150.12  up to eight weeks to cover expenses related to the job search.  
150.13  Before the job search allowance is issued, it must be approved 
150.14  by the employment advisor and financial specialist, and clearly 
150.15  described in the job search plan. 
150.16     Sec. 8.  [256K.07] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 
150.17  ASSISTANCE, AND CHILD CARE.] 
150.18     The participant shall be treated as an AFDC, MFIP-S or 
150.19  family general assistance recipient, whichever is applicable, 
150.20  for food stamps, medical assistance, and child care eligibility 
150.21  purposes.  The participant who leaves the program as a result of 
150.22  increased earnings from employment shall be eligible for 
150.23  transitional Medical Assistance and child care without regard to 
150.24  AFDC, MFIP-S or family general assistance receipt in three of 
150.25  the six months preceding ineligibility. 
150.26     Sec. 9.  [256K.08] [SANCTIONS AND APPEAL PROCESS.] 
150.27     Subdivision 1.  [GOOD CAUSE.] (a) For purposes of this 
150.28  subdivision, "good cause" means absence due to temporary illness 
150.29  or injury of the participant or a member of the participant's 
150.30  family, the unavailability of appropriate child care or 
150.31  unavailability of transportation needed to attend orientation or 
150.32  conduct job search, or a nonmedical emergency as defined under 
150.33  section 256K.05, subdivision 5. 
150.34     (b) The applicant who is required, but fails, without good 
150.35  cause, to participate in orientation, complete the job search 
150.36  plan or employability development plan, and comply with the job 
151.1   search requirements under section 256K.03, prior to being 
151.2   eligible for AFDC, MFIP-S or family general assistance shall be 
151.3   denied benefits.  The applicant will not be eligible for 
151.4   benefits in this state for at least six months. 
151.5      (c) If, after receiving a written warning from the county, 
151.6   the participant fails, without good cause, to conduct at least 
151.7   32 hours of job search per week in any given two-week period, 
151.8   the participant will be immediately required to work for at 
151.9   least 16 hours per week in a temporary public service job.  The 
151.10  required 32 hours per week of job search will be reduced to 16 
151.11  hours. 
151.12     (d) If the participant who is deferred under section 
151.13  256K.03, subdivision 8, fails to comply with the activities 
151.14  described in the employability development plan, the participant 
151.15  will lose the deferment status, provided that the participant 
151.16  has received at least two written warnings from the provider. 
151.17     (e) If the participant refuses to work in a temporary 
151.18  public service job, or is terminated from a temporary public 
151.19  service job for failure to work, benefits to the assistance unit 
151.20  shall be terminated and the participant shall not be eligible 
151.21  for aid under the MFIP-S program for at least six months from 
151.22  the date of refusal or termination.  If the participant, before 
151.23  completing at least four consecutive months of employment, 
151.24  voluntarily quits or is terminated from a nonsubsidized or a 
151.25  subsidized job, the participant shall immediately be assigned to 
151.26  work in a temporary public service job for at least 32 hours per 
151.27  week for up to 67 working days unless the participant is hired 
151.28  or rehired into a nonsubsidized or subsidized job. 
151.29     Subd. 2.  [NOTICE OF SANCTIONS.] If the county determines 
151.30  that the participant has failed or refused without good cause, 
151.31  as defined in subdivision 1, to cooperate with the program 
151.32  requirements, the county shall inform the participant in writing 
151.33  of its intent to impose an applicable sanction listed under 
151.34  subdivision 1 and the opportunity to have a conciliation 
151.35  conference upon request and within five days of the notice 
151.36  before a sanction is imposed. 
152.1      Sec. 10.  [256K.09] [FUNDING.] 
152.2      Subdivision 1.  [LEVERAGING GRANT AMOUNT TO SECURE OTHER 
152.3   FUNDS.] The county agency or the provider, in cooperation with 
152.4   the department, may leverage the grant amount to secure other 
152.5   funds from employers, foundations, and the community for the 
152.6   purpose of developing additional components to benefit children 
152.7   and improve the program. 
152.8      Subd. 2.  [EMPLOYER REIMBURSEMENT.] The employer shall be 
152.9   reimbursed for wages paid to participants under section 256K.04, 
152.10  subdivision 2. 
152.11     Sec. 11.  [REPEALER.] 
152.12     Minnesota Statutes 1996, sections 256.7351; 256.7352; 
152.13  256.7353; 256.7354; 256.7355; 256.7356; 256.7357; 256.7358; and 
152.14  256.7359, are repealed. 
152.15     Sec. 12.  [EFFECTIVE DATE.] 
152.16     Article 2 is effective July 1, 1997. 
152.17                             ARTICLE 3
152.18                     ASSISTANCE PROGRAM CHANGES
152.19     Section 1.  Minnesota Statutes 1996, section 256.01, 
152.20  subdivision 2, is amended to read: 
152.21     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
152.22  section 241.021, subdivision 2, the commissioner of human 
152.23  services shall: 
152.24     (1) Administer and supervise all forms of public assistance 
152.25  provided for by state law and other welfare activities or 
152.26  services as are vested in the commissioner.  Administration and 
152.27  supervision of human services activities or services includes, 
152.28  but is not limited to, assuring timely and accurate distribution 
152.29  of benefits, completeness of service, and quality program 
152.30  management.  In addition to administering and supervising human 
152.31  services activities vested by law in the department, the 
152.32  commissioner shall have the authority to: 
152.33     (a) require county agency participation in training and 
152.34  technical assistance programs to promote compliance with 
152.35  statutes, rules, federal laws, regulations, and policies 
152.36  governing human services; 
153.1      (b) monitor, on an ongoing basis, the performance of county 
153.2   agencies in the operation and administration of human services, 
153.3   enforce compliance with statutes, rules, federal laws, 
153.4   regulations, and policies governing welfare services and promote 
153.5   excellence of administration and program operation; 
153.6      (c) develop a quality control program or other monitoring 
153.7   program to review county performance and accuracy of benefit 
153.8   determinations; 
153.9      (d) require county agencies to make an adjustment to the 
153.10  public assistance benefits issued to any individual consistent 
153.11  with federal law and regulation and state law and rule and to 
153.12  issue or recover benefits as appropriate; 
153.13     (e) delay or deny payment of all or part of the state and 
153.14  federal share of benefits and administrative reimbursement 
153.15  according to the procedures set forth in section 256.017; and 
153.16     (f) make contracts with and grants to public and private 
153.17  agencies and organizations, both profit and nonprofit, and 
153.18  individuals, using appropriated funds. 
153.19     (2) Inform county agencies, on a timely basis, of changes 
153.20  in statute, rule, federal law, regulation, and policy necessary 
153.21  to county agency administration of the programs. 
153.22     (3) Administer and supervise all child welfare activities; 
153.23  promote the enforcement of laws protecting handicapped, 
153.24  dependent, neglected and delinquent children, and children born 
153.25  to mothers who were not married to the children's fathers at the 
153.26  times of the conception nor at the births of the children; 
153.27  license and supervise child-caring and child-placing agencies 
153.28  and institutions; supervise the care of children in boarding and 
153.29  foster homes or in private institutions; and generally perform 
153.30  all functions relating to the field of child welfare now vested 
153.31  in the state board of control. 
153.32     (4) Administer and supervise all noninstitutional service 
153.33  to handicapped persons, including those who are visually 
153.34  impaired, hearing impaired, or physically impaired or otherwise 
153.35  handicapped.  The commissioner may provide and contract for the 
153.36  care and treatment of qualified indigent children in facilities 
154.1   other than those located and available at state hospitals when 
154.2   it is not feasible to provide the service in state hospitals. 
154.3      (5) Assist and actively cooperate with other departments, 
154.4   agencies and institutions, local, state, and federal, by 
154.5   performing services in conformity with the purposes of Laws 
154.6   1939, chapter 431. 
154.7      (6) Act as the agent of and cooperate with the federal 
154.8   government in matters of mutual concern relative to and in 
154.9   conformity with the provisions of Laws 1939, chapter 431, 
154.10  including the administration of any federal funds granted to the 
154.11  state to aid in the performance of any functions of the 
154.12  commissioner as specified in Laws 1939, chapter 431, and 
154.13  including the promulgation of rules making uniformly available 
154.14  medical care benefits to all recipients of public assistance, at 
154.15  such times as the federal government increases its participation 
154.16  in assistance expenditures for medical care to recipients of 
154.17  public assistance, the cost thereof to be borne in the same 
154.18  proportion as are grants of aid to said recipients. 
154.19     (7) Establish and maintain any administrative units 
154.20  reasonably necessary for the performance of administrative 
154.21  functions common to all divisions of the department. 
154.22     (8) Act as designated guardian of both the estate and the 
154.23  person of all the wards of the state of Minnesota, whether by 
154.24  operation of law or by an order of court, without any further 
154.25  act or proceeding whatever, except as to persons committed as 
154.26  mentally retarded.  
154.27     (9) Act as coordinating referral and informational center 
154.28  on requests for service for newly arrived immigrants coming to 
154.29  Minnesota. 
154.30     (10) The specific enumeration of powers and duties as 
154.31  hereinabove set forth shall in no way be construed to be a 
154.32  limitation upon the general transfer of powers herein contained. 
154.33     (11) Establish county, regional, or statewide schedules of 
154.34  maximum fees and charges which may be paid by county agencies 
154.35  for medical, dental, surgical, hospital, nursing and nursing 
154.36  home care and medicine and medical supplies under all programs 
155.1   of medical care provided by the state and for congregate living 
155.2   care under the income maintenance programs. 
155.3      (12) Have the authority to conduct and administer 
155.4   experimental projects to test methods and procedures of 
155.5   administering assistance and services to recipients or potential 
155.6   recipients of public welfare.  To carry out such experimental 
155.7   projects, it is further provided that the commissioner of human 
155.8   services is authorized to waive the enforcement of existing 
155.9   specific statutory program requirements, rules, and standards in 
155.10  one or more counties.  The order establishing the waiver shall 
155.11  provide alternative methods and procedures of administration, 
155.12  shall not be in conflict with the basic purposes, coverage, or 
155.13  benefits provided by law, and in no event shall the duration of 
155.14  a project exceed four years.  It is further provided that no 
155.15  order establishing an experimental project as authorized by the 
155.16  provisions of this section shall become effective until the 
155.17  following conditions have been met: 
155.18     (a) The proposed comprehensive plan, including estimated 
155.19  project costs and the proposed order establishing the waiver, 
155.20  shall be filed with the secretary of the senate and chief clerk 
155.21  of the house of representatives at least 60 days prior to its 
155.22  effective date. 
155.23     (b) The secretary of health, education, and welfare of the 
155.24  United States has agreed, for the same project, to waive state 
155.25  plan requirements relative to statewide uniformity. 
155.26     (c) A comprehensive plan, including estimated project 
155.27  costs, shall be approved by the legislative advisory commission 
155.28  and filed with the commissioner of administration.  
155.29     (13) In accordance with federal requirements, establish 
155.30  procedures to be followed by local welfare boards in creating 
155.31  citizen advisory committees, including procedures for selection 
155.32  of committee members. 
155.33     (14) Allocate federal fiscal disallowances or sanctions 
155.34  which are based on quality control error rates for the aid to 
155.35  families with dependent children, medical assistance, or food 
155.36  stamp program in the following manner:  
156.1      (a) One-half of the total amount of the disallowance shall 
156.2   be borne by the county boards responsible for administering the 
156.3   programs.  For the medical assistance and AFDC programs, 
156.4   disallowances shall be shared by each county board in the same 
156.5   proportion as that county's expenditures for the sanctioned 
156.6   program are to the total of all counties' expenditures for the 
156.7   AFDC and medical assistance programs.  For the food stamp 
156.8   program, sanctions shall be shared by each county board, with 50 
156.9   percent of the sanction being distributed to each county in the 
156.10  same proportion as that county's administrative costs for food 
156.11  stamps are to the total of all food stamp administrative costs 
156.12  for all counties, and 50 percent of the sanctions being 
156.13  distributed to each county in the same proportion as that 
156.14  county's value of food stamp benefits issued are to the total of 
156.15  all benefits issued for all counties.  Each county shall pay its 
156.16  share of the disallowance to the state of Minnesota.  When a 
156.17  county fails to pay the amount due hereunder, the commissioner 
156.18  may deduct the amount from reimbursement otherwise due the 
156.19  county, or the attorney general, upon the request of the 
156.20  commissioner, may institute civil action to recover the amount 
156.21  due. 
156.22     (b) Notwithstanding the provisions of paragraph (a), if the 
156.23  disallowance results from knowing noncompliance by one or more 
156.24  counties with a specific program instruction, and that knowing 
156.25  noncompliance is a matter of official county board record, the 
156.26  commissioner may require payment or recover from the county or 
156.27  counties, in the manner prescribed in paragraph (a), an amount 
156.28  equal to the portion of the total disallowance which resulted 
156.29  from the noncompliance, and may distribute the balance of the 
156.30  disallowance according to paragraph (a).  
156.31     (15) Develop and implement special projects that maximize 
156.32  reimbursements and result in the recovery of money to the 
156.33  state.  For the purpose of recovering state money, the 
156.34  commissioner may enter into contracts with third parties.  Any 
156.35  recoveries that result from projects or contracts entered into 
156.36  under this paragraph shall be deposited in the state treasury 
157.1   and credited to a special account until the balance in the 
157.2   account reaches $1,000,000.  When the balance in the account 
157.3   exceeds $1,000,000, the excess shall be transferred and credited 
157.4   to the general fund.  All money in the account is appropriated 
157.5   to the commissioner for the purposes of this paragraph. 
157.6      (16) Have the authority to make direct payments to 
157.7   facilities providing shelter to women and their children 
157.8   pursuant to section 256D.05, subdivision 3.  Upon the written 
157.9   request of a shelter facility that has been denied payments 
157.10  under section 256D.05, subdivision 3, the commissioner shall 
157.11  review all relevant evidence and make a determination within 30 
157.12  days of the request for review regarding issuance of direct 
157.13  payments to the shelter facility.  Failure to act within 30 days 
157.14  shall be considered a determination not to issue direct payments.
157.15     (17) Have the authority to establish and enforce the 
157.16  following county reporting requirements:  
157.17     (a) The commissioner shall establish fiscal and statistical 
157.18  reporting requirements necessary to account for the expenditure 
157.19  of funds allocated to counties for human services programs.  
157.20  When establishing financial and statistical reporting 
157.21  requirements, the commissioner shall evaluate all reports, in 
157.22  consultation with the counties, to determine if the reports can 
157.23  be simplified or the number of reports can be reduced. 
157.24     (b) The county board shall submit monthly or quarterly 
157.25  reports to the department as required by the commissioner.  
157.26  Monthly reports are due no later than 15 working days after the 
157.27  end of the month.  Quarterly reports are due no later than 30 
157.28  calendar days after the end of the quarter, unless the 
157.29  commissioner determines that the deadline must be shortened to 
157.30  20 calendar days to avoid jeopardizing compliance with federal 
157.31  deadlines or risking a loss of federal funding.  Only reports 
157.32  that are complete, legible, and in the required format shall be 
157.33  accepted by the commissioner.  
157.34     (c) If the required reports are not received by the 
157.35  deadlines established in clause (b), the commissioner may delay 
157.36  payments and withhold funds from the county board until the next 
158.1   reporting period.  When the report is needed to account for the 
158.2   use of federal funds and the late report results in a reduction 
158.3   in federal funding, the commissioner shall withhold from the 
158.4   county boards with late reports an amount equal to the reduction 
158.5   in federal funding until full federal funding is received.  
158.6      (d) A county board that submits reports that are late, 
158.7   illegible, incomplete, or not in the required format for two out 
158.8   of three consecutive reporting periods is considered 
158.9   noncompliant.  When a county board is found to be noncompliant, 
158.10  the commissioner shall notify the county board of the reason the 
158.11  county board is considered noncompliant and request that the 
158.12  county board develop a corrective action plan stating how the 
158.13  county board plans to correct the problem.  The corrective 
158.14  action plan must be submitted to the commissioner within 45 days 
158.15  after the date the county board received notice of noncompliance.
158.16     (e) The final deadline for fiscal reports or amendments to 
158.17  fiscal reports is one year after the date the report was 
158.18  originally due.  If the commissioner does not receive a report 
158.19  by the final deadline, the county board forfeits the funding 
158.20  associated with the report for that reporting period and the 
158.21  county board must repay any funds associated with the report 
158.22  received for that reporting period. 
158.23     (f) The commissioner may not delay payments, withhold 
158.24  funds, or require repayment under paragraph (c) or (e) if the 
158.25  county demonstrates that the commissioner failed to provide 
158.26  appropriate forms, guidelines, and technical assistance to 
158.27  enable the county to comply with the requirements.  If the 
158.28  county board disagrees with an action taken by the commissioner 
158.29  under paragraph (c) or (e), the county board may appeal the 
158.30  action according to sections 14.57 to 14.69. 
158.31     (g) Counties subject to withholding of funds under 
158.32  paragraph (c) or forfeiture or repayment of funds under 
158.33  paragraph (e) shall not reduce or withhold benefits or services 
158.34  to clients to cover costs incurred due to actions taken by the 
158.35  commissioner under paragraph (c) or (e). 
158.36     (18) (17) Allocate federal fiscal disallowances or 
159.1   sanctions for audit exceptions when federal fiscal disallowances 
159.2   or sanctions are based on a statewide random sample for the 
159.3   foster care program under title IV-E of the Social Security Act, 
159.4   United States Code, title 42, in direct proportion to each 
159.5   county's title IV-E foster care maintenance claim for that 
159.6   period. 
159.7      Sec. 2.  Minnesota Statutes 1996, section 256.031, is 
159.8   amended by adding a subdivision to read: 
159.9      Subd. 6.  [END OF FIELD TRIALS.] Upon agreement with the 
159.10  federal government, the field trials of the Minnesota family 
159.11  investment plan will end June 30, 1998.  Families in the 
159.12  comparison group under subdivision 3, paragraph (d), clause (i), 
159.13  receiving aid to families with dependent children under sections 
159.14  256.72 to 256.87, and STRIDE services under section 256.736 will 
159.15  continue in those programs until June 30, 1998.  After June 30, 
159.16  1998, families who cease receiving assistance under the 
159.17  Minnesota family investment plan and comparison group families 
159.18  who cease receiving assistance under AFDC and STRIDE who are 
159.19  eligible for the Minnesota family investment program-statewide 
159.20  (MFIP-S), medical assistance, general assistance medical care, 
159.21  or the food stamp program shall be placed with their consent on 
159.22  the programs for which they are eligible. 
159.23     Sec. 3.  Minnesota Statutes 1996, section 256.033, 
159.24  subdivision 1, is amended to read: 
159.25     Subdivision 1.  [ELIGIBILITY CONDITIONS.] (a) A family is 
159.26  entitled to assistance under the Minnesota family investment 
159.27  plan if the family is assigned to a test group in the evaluation 
159.28  as provided in section 256.031, subdivision 3, paragraph (d), 
159.29  and: 
159.30     (1) the family meets the definition of assistance unit 
159.31  under section 256.032, subdivision 1a; 
159.32     (2) the family's resources not excluded under subdivision 3 
159.33  do not exceed $2,000; 
159.34     (3) the family can verify citizenship or lawful resident 
159.35  alien status; and 
159.36     (4) the family provides or applies for a social security 
160.1   number for each member of the family receiving assistance under 
160.2   the family investment plan. 
160.3      (b) A family is eligible for the family investment plan if 
160.4   the net income is less than the transitional standard as defined 
160.5   in section 256.032, subdivision 13, for that size and 
160.6   composition of family.  In determining available net income, the 
160.7   provisions in subdivision 2 shall apply. 
160.8      (c) Upon application, a family is initially eligible for 
160.9   the family investment plan if the family's gross income does not 
160.10  exceed the applicable transitional standard of assistance for 
160.11  that family as defined under section 256.032, subdivision 13, 
160.12  after deducting: 
160.13     (1) 18 percent to cover taxes; and 
160.14     (2) actual dependent care costs up to the maximum 
160.15  disregarded under United States Code, title 42, section 
160.16  602(a)(8)(A)(iii); and 
160.17     (3) $50 of child support collected in that month. 
160.18     (d) A family can remain eligible for the program if: 
160.19     (1) it meets the conditions in subdivision 1a; and 
160.20     (2) its income is below the transitional standard in 
160.21  section 256.032, subdivision 13, allowing for income exclusions 
160.22  in subdivision 2 and after applying the family investment plan 
160.23  treatment of earnings under subdivision 1a. 
160.24     Sec. 4.  Minnesota Statutes 1996, section 256.033, 
160.25  subdivision 1a, is amended to read: 
160.26     Subd. 1a.  [TREATMENT OF INCOME FOR THE PURPOSES OF 
160.27  CONTINUED ELIGIBILITY.] To help families during their transition 
160.28  from the Minnesota family investment plan to self-sufficiency, 
160.29  the following income supports are available: 
160.30     (a) The $30 and one-third and $90 disregards allowed under 
160.31  section 256.74, subdivision 1, and the 20 percent earned income 
160.32  deduction allowed under the federal Food Stamp Act of 1977, as 
160.33  amended, are replaced with a single disregard of not less than 
160.34  35 percent of gross earned income to cover taxes and other 
160.35  work-related expenses and to reward the earning of income.  This 
160.36  single disregard is available for the entire time a family 
161.1   receives assistance through the Minnesota family investment plan.
161.2      (b) The dependent care deduction, as prescribed under 
161.3   section 256.74, subdivision 1, and United States Code, title 7, 
161.4   section 2014(e), is replaced for families with earned income who 
161.5   need assistance with dependent care with an entitlement to a 
161.6   dependent care subsidy from money appropriated for the Minnesota 
161.7   family investment plan. 
161.8      (c) The family wage level, as defined in section 256.032, 
161.9   subdivision 8, allows families to supplement earned income with 
161.10  assistance received through the Minnesota family investment 
161.11  plan.  If, after earnings are adjusted according to the 
161.12  disregard described in paragraph (a), earnings have raised 
161.13  family income to a level equal to or greater than the family 
161.14  wage level, the amount of assistance received through the 
161.15  Minnesota family investment plan must be reduced. 
161.16     (d) The first $50 of any timely support payment for a month 
161.17  received by the public agency responsible for child support 
161.18  enforcement shall be paid to the family and disregarded in 
161.19  determining eligibility and the amount of assistance in 
161.20  accordance with United States Code, title 42, sections 
161.21  602(a)(8)(A)(vi) and 657(b)(1).  This paragraph applies 
161.22  regardless of whether the caregiver is in transitional status, 
161.23  is exempt from developing or complying with the terms of a 
161.24  family support agreement, or has had a sanction imposed under 
161.25  subdivision 3.  
161.26     Sec. 5.  Minnesota Statutes 1996, section 256.736, 
161.27  subdivision 3a, is amended to read: 
161.28     Subd. 3a.  [PARTICIPATION.] (a) Except as provided under 
161.29  paragraphs (b) and (c), Participation in employment and training 
161.30  services under this section is limited to the following 
161.31  recipients:  
161.32     (1) caretakers who are required to participate in a job 
161.33  search under subdivision 14; 
161.34     (2) custodial parents who are subject to the school 
161.35  attendance or case management participation requirements under 
161.36  subdivision 3b; 
162.1      (3) caretakers whose participation in employment and 
162.2   training services began prior to May 1, 1990, if the caretaker's 
162.3   AFDC eligibility has not been interrupted for 30 days or more 
162.4   and the caretaker's employability development plan has not been 
162.5   completed; 
162.6      (4) recipients who are members of a family in which the 
162.7   youngest child is within two years of being ineligible for AFDC 
162.8   due to age; 
162.9      (5) custodial parents under the age of 24 who:  (i) have 
162.10  not completed a high school education and who, at the time of 
162.11  application for AFDC, were not enrolled in high school or in a 
162.12  high school equivalency program; or (ii) have had little or no 
162.13  work experience in the preceding year; 
162.14     (6) recipients who have received AFDC for 36 or more months 
162.15  out of the last 60 months; 
162.16     (7) recipients who are participants in the self-employment 
162.17  investment demonstration project under section 268.95; and 
162.18     (8) recipients who participate in the new chance research 
162.19  and demonstration project under contract with the department of 
162.20  human services and 
162.21     (3) after the county agency assures the availability of 
162.22  employment and training services for recipients identified under 
162.23  clauses (1) and (2), and to the extent of available resources, 
162.24  any other AFDC recipient. 
162.25     (b) If the commissioner determines that participation of 
162.26  persons listed in paragraph (a) in employment and training 
162.27  services is insufficient either to meet federal performance 
162.28  targets or to fully utilize funds appropriated under this 
162.29  section, the commissioner may, after notifying the chairs of the 
162.30  senate family services committee, the house health and human 
162.31  services committee, the family services division of the senate 
162.32  family services and health care committees, and the human 
162.33  services division of the house health and human services 
162.34  committee, permit additional groups of recipients to participate 
162.35  until the next meeting of the legislative advisory commission, 
162.36  after which the additional groups may continue to enroll for 
163.1   participation unless the legislative advisory commission 
163.2   disapproves the continued enrollment.  The commissioner shall 
163.3   allow participation of additional groups in the following order 
163.4   only as needed to meet performance targets or fully utilize 
163.5   funding for employment and training services under this section: 
163.6      (1) recipients who have received 24 or more months of AFDC 
163.7   out of the previous 48 months; and 
163.8      (2) recipients who have not completed a high school 
163.9   education or a high school equivalency program. 
163.10     (c) To the extent of money appropriated specifically for 
163.11  this paragraph, the commissioner may permit AFDC caretakers who 
163.12  are not eligible for participation in employment and training 
163.13  services under the provisions of paragraph (a) or (b) to 
163.14  participate.  Money must be allocated to county agencies based 
163.15  on the county's percentage of participants statewide in services 
163.16  under this section in the prior calendar year.  Caretakers must 
163.17  be selected on a first-come, first-served basis from a waiting 
163.18  list of caretakers who volunteer to participate.  The 
163.19  commissioner may, on a quarterly basis, reallocate unused 
163.20  allocations to county agencies that have sufficient volunteers.  
163.21  If funding under this paragraph is discontinued in future fiscal 
163.22  years, caretakers who began participating under this paragraph 
163.23  must be deemed eligible under paragraph (a), clause (3). 
163.24     (d) Participants who are eligible and enroll in the STRIDE 
163.25  program under one of the categories of this subdivision are 
163.26  required to cooperate with the assessment and employability plan 
163.27  development and to meet the terms of their employability plan.  
163.28  Failure to comply, without good cause, shall result in the 
163.29  imposition of sanctions as specified in subdivision 4, clause 
163.30  (6). 
163.31     Sec. 6.  Minnesota Statutes 1996, section 256.74, 
163.32  subdivision 1, is amended to read: 
163.33     Subdivision 1.  [AMOUNT.] The amount of assistance which 
163.34  shall be granted to or on behalf of any dependent child and 
163.35  parent or other needy eligible relative caring for the dependent 
163.36  child shall be determined by the county agency in accordance 
164.1   with according to rules promulgated by the commissioner and 
164.2   shall be sufficient, when added to all other income and support 
164.3   available to the child, to provide the child with a reasonable 
164.4   subsistence compatible with decency and health.  To the extent 
164.5   permissible under federal law, an eligible relative caretaker or 
164.6   parent shall have the option to include in the assistance unit 
164.7   the needs, income, and resources of the following essential 
164.8   persons who are not otherwise eligible for AFDC because they do 
164.9   not qualify as a caretaker or as a dependent child: 
164.10     (1) a parent or relative caretaker's spouse and 
164.11  stepchildren; or 
164.12     (2) blood or legally adopted relatives who are under the 
164.13  age of 18 or under the age of 19 years who are regularly 
164.14  attending as a full-time student, and are expected to complete 
164.15  before or during the month of their 19th birthday, a high school 
164.16  or secondary level course of vocational or technical training 
164.17  designed to prepare students for gainful employment.  The amount 
164.18  shall be based on the method of budgeting required in Public Law 
164.19  Number 97-35, section 2315, United States Code, title 42, 
164.20  section 602, as amended and federal regulations at Code of 
164.21  Federal Regulations, title 45, section 233.  Nonrecurring lump 
164.22  sum income received by an AFDC family must be budgeted in the 
164.23  normal retrospective cycle.  When the family's income, after 
164.24  application of the applicable disregards, exceeds the need 
164.25  standard for the family because of receipt of earned or unearned 
164.26  lump sum income, the family will be ineligible for the full 
164.27  number of months derived by dividing the sum of the lump sum 
164.28  income and other income by the monthly need standard for a 
164.29  family of that size.  Any income remaining from this calculation 
164.30  is income in the first month following the period of 
164.31  ineligibility.  The first month of ineligibility is the payment 
164.32  month that corresponds with the budget month in which the lump 
164.33  sum income was received.  For purposes of applying the lump sum 
164.34  provision, family includes those persons defined in the Code of 
164.35  Federal Regulations, title 45, section 233.20(a)(3)(ii)(F).  A 
164.36  period of ineligibility must be shortened when the standard of 
165.1   need increases and the amount the family would have received 
165.2   also changes, an amount is documented as stolen, an amount is 
165.3   unavailable because a member of the family left the household 
165.4   with that amount and has not returned, an amount is paid by the 
165.5   family during the period of ineligibility to cover a cost that 
165.6   would otherwise qualify for emergency assistance, or the family 
165.7   incurs and pays for medical expenses which would have been 
165.8   covered by medical assistance if eligibility existed.  In making 
165.9   its determination the county agency shall disregard the 
165.10  following from family income:  
165.11     (1) all the earned income of each dependent child applying 
165.12  for AFDC if the child is a full-time student and all of the 
165.13  earned income of each dependent child receiving AFDC who is a 
165.14  full-time student or is a part-time student who is not a 
165.15  full-time employee.  A student is one who is attending a school, 
165.16  college, or university, or a course of vocational or technical 
165.17  training designed to fit students for gainful employment and 
165.18  includes a participant in the Job Corps program under the Job 
165.19  Training Partnership Act (JTPA).  The county agency shall also 
165.20  disregard all income of each dependent child applying for or 
165.21  receiving AFDC when the income is derived from a program carried 
165.22  out under JTPA, except that disregard of earned income may not 
165.23  exceed six months per calendar year; 
165.24     (2) all educational assistance, except the county agency 
165.25  shall count graduate student teaching assistantships, 
165.26  fellowships, and other similar paid work as earned income and, 
165.27  after allowing deductions for any unmet and necessary 
165.28  educational expenses, shall count scholarships or grants awarded 
165.29  to graduate students that do not require teaching or research as 
165.30  unearned income; 
165.31     (3) the first $90 of each individual's earned income.  For 
165.32  self-employed persons, the expenses directly related to 
165.33  producing goods and services and without which the goods and 
165.34  services could not be produced shall be disregarded 
165.35  pursuant according to rules promulgated by the commissioner; 
165.36     (4) thirty dollars plus one-third of each individual's 
166.1   earned income for individuals found otherwise eligible to 
166.2   receive aid or who have received aid in one of the four months 
166.3   before the month of application.  With respect to any month, the 
166.4   county welfare agency shall not disregard under this clause any 
166.5   earned income of any person who has:  (a) reduced earned income 
166.6   without good cause within 30 days preceding any month in which 
166.7   an assistance payment is made; (b) refused without good cause to 
166.8   accept an offer of suitable employment; (c) left employment or 
166.9   reduced earnings without good cause and applied for assistance 
166.10  so as to be able later to return to employment with the 
166.11  advantage of the income disregard; or (d) (c) failed without 
166.12  good cause to make a timely report of earned income in 
166.13  accordance with according to rules promulgated by the 
166.14  commissioner of human services.  Persons who are already 
166.15  employed and who apply for assistance shall have their needs 
166.16  computed with full account taken of their earned and other 
166.17  income.  If earned and other income of the family is less than 
166.18  need, as determined on the basis of public assistance standards, 
166.19  the county agency shall determine the amount of the grant by 
166.20  applying the disregard of income provisions.  The county agency 
166.21  shall not disregard earned income for persons in a family if the 
166.22  total monthly earned and other income exceeds their needs, 
166.23  unless for any one of the four preceding months their needs were 
166.24  met in whole or in part by a grant payment.  The disregard of 
166.25  $30 and one-third of earned income in this clause shall be 
166.26  applied to the individual's income for a period not to exceed 
166.27  four consecutive months.  Any month in which the individual 
166.28  loses this disregard because of the provisions of subclauses (a) 
166.29  to (d) shall be considered as one of the four months.  An 
166.30  additional $30 work incentive must be available for an 
166.31  eight-month period beginning in the month following the last 
166.32  month of the combined $30 and one-third work incentive.  This 
166.33  period must be in effect whether or not the person has earned 
166.34  income or is eligible for AFDC.  To again qualify for the earned 
166.35  income disregards under this clause, the individual must not be 
166.36  a recipient of aid for a period of 12 consecutive months.  When 
167.1   an assistance unit becomes ineligible for aid due to the fact 
167.2   that these disregards are no longer applied to income, the 
167.3   assistance unit shall be eligible for medical assistance 
167.4   benefits for a 12-month period beginning with the first month of 
167.5   AFDC ineligibility; 
167.6      (5) an amount equal to the actual expenditures for the care 
167.7   of each dependent child or incapacitated individual living in 
167.8   the same home and receiving aid, not to exceed:  (a) $175 for 
167.9   each individual age two and older, and $200 for each individual 
167.10  under the age of two.  The dependent care disregard must be 
167.11  applied after all other disregards under this subdivision have 
167.12  been applied; 
167.13     (6) the first $50 per assistance unit of the monthly 
167.14  support obligation collected by the support and recovery (IV-D) 
167.15  unit.  The first $50 of periodic support payments collected by 
167.16  the public authority responsible for child support enforcement 
167.17  from a person with a legal obligation to pay support for a 
167.18  member of the assistance unit must be paid to the assistance 
167.19  unit within 15 days after the end of the month in which the 
167.20  collection of the periodic support payments occurred and must be 
167.21  disregarded when determining the amount of assistance.  A review 
167.22  of a payment decision under this clause must be requested within 
167.23  30 days after receiving the notice of collection of assigned 
167.24  support or within 90 days after receiving the notice if good 
167.25  cause can be shown for not making the request within the 30-day 
167.26  limit; 
167.27     (7) that portion of an insurance settlement earmarked and 
167.28  used to pay medical expenses, funeral and burial costs, or to 
167.29  repair or replace insured property; and 
167.30     (8) (7) all earned income tax credit payments received by 
167.31  the family as a refund of federal income taxes or made as 
167.32  advance payments by an employer.  
167.33     All payments made pursuant according to a court order for 
167.34  the support of children not living in the assistance unit's 
167.35  household shall be disregarded from the income of the person 
167.36  with the legal obligation to pay support, provided that, if 
168.1   there has been a change in the financial circumstances of the 
168.2   person with the legal obligation to pay support since the 
168.3   support order was entered, the person with the legal obligation 
168.4   to pay support has petitioned for a modification of the support 
168.5   order. 
168.6      Sec. 7.  Minnesota Statutes 1996, section 256.74, is 
168.7   amended by adding a subdivision to read: 
168.8      Subd. 1c.  [MFIP AND MFIP-R COMPARISON GROUP 
168.9   FAMILIES.] Notwithstanding subdivision 1, the limitations of 
168.10  this subdivision apply to MFIP and MFIP-R comparison group 
168.11  families under sections 256.031 to 256.0361.  The disregard of 
168.12  thirty dollars plus one-third of earned income in this 
168.13  subdivision shall be applied to the individual's income for a 
168.14  period not to exceed four consecutive months.  Any month in 
168.15  which the individual loses this disregard because of the 
168.16  provisions of subclauses (a) to (c) of subdivision 1 shall be 
168.17  considered as one of the four months.  An additional $30 work 
168.18  incentive must be available for an eight month period beginning 
168.19  in the month following the last month of the combined $30 and 
168.20  one-third work incentive.  This period must be in effect whether 
168.21  or not the person has earned income or is eligible for AFDC.  To 
168.22  again qualify for the earned income disregards under this 
168.23  subdivision, the individual must not be a recipient of and for a 
168.24  period of 12 consecutive months.  When an assistance unit 
168.25  becomes ineligible for aid due to the fact that these disregards 
168.26  are no longer applied to income, the assistance unit shall be 
168.27  eligible for medical assistance benefits for a 12 month period 
168.28  beginning with the first month of AFDC ineligibility. 
168.29     Sec. 8.  Minnesota Statutes 1996, section 256.81, is 
168.30  amended to read: 
168.31     256.81 [COUNTY AGENCY, DUTIES.] 
168.32     (1) The county agency shall keep such records, accounts, 
168.33  and statistics in relation to aid to families with dependent 
168.34  children as the state agency shall prescribe.  
168.35     (2) Each grant of aid to families with dependent children 
168.36  shall be paid to the recipient by the county agency unless paid 
169.1   by the state agency.  Payment must be in the form of a warrant 
169.2   immediately redeemable in cash, electronic benefits transfer, or 
169.3   by direct deposit into the recipient's account in a financial 
169.4   institution, except in those instances in which the county 
169.5   agency, subject to the rules of the state agency, determines 
169.6   that payments for care shall be made to an individual other than 
169.7   the parent or relative with whom the dependent child is living 
169.8   or to vendors of goods and services for the benefit of the child 
169.9   because such parent or relative is unable to properly manage the 
169.10  funds in the best interests and welfare of the child.  There is 
169.11  a presumption of mismanagement of funds whenever a recipient is 
169.12  more than 30 days in arrears on payment of rent, except when the 
169.13  recipient has withheld rent to enforce the recipient's right to 
169.14  withhold the rent in accordance with federal, state, or local 
169.15  housing laws.  In cases of mismanagement based solely on failure 
169.16  to pay rent, the county may vendor the rent payments to the 
169.17  landlord.  At the request of a recipient, the state or county 
169.18  may make payments directly to vendors of goods and services, but 
169.19  only for goods and services appropriate to maintain the health 
169.20  and safety of the child, as determined by the county.  
169.21     (3) The state or county may ask the recipient to give 
169.22  written consent authorizing the state or county to provide 
169.23  advance notice to a vendor before vendor payments of rent are 
169.24  reduced or terminated.  Whenever possible under state and 
169.25  federal laws and regulations and if the recipient consents, the 
169.26  state or county shall provide at least 30 days notice to vendors 
169.27  before vendor payments of rent are reduced or terminated.  If 30 
169.28  days notice cannot be given, the state or county shall notify 
169.29  the vendor within three working days after the date the state or 
169.30  county becomes aware that vendor payments of rent will be 
169.31  reduced or terminated.  When the county notifies a vendor that 
169.32  vendor payments of rent will be reduced or terminated, the 
169.33  county shall include in the notice that it is illegal to 
169.34  discriminate on the grounds that a person is receiving public 
169.35  assistance and the penalties for violation.  The county shall 
169.36  also notify the recipient that it is illegal to discriminate on 
170.1   the grounds that a person is receiving public assistance and the 
170.2   procedures for filing a complaint.  The county agency may 
170.3   develop procedures, including using the MAXIS system, to 
170.4   implement vendor notice and may charge vendors a fee not 
170.5   exceeding $5 to cover notification costs. 
170.6      (4) A vendor payment arrangement is not a guarantee that a 
170.7   vendor will be paid by the state or county for rent, goods, or 
170.8   services furnished to a recipient, and the state and county are 
170.9   not liable for any damages claimed by a vendor due to failure of 
170.10  the state or county to pay or to notify the vendor on behalf of 
170.11  a recipient, except under a specific written agreement between 
170.12  the state or county and the vendor or when the state or county 
170.13  has provided a voucher guaranteeing payment under certain 
170.14  conditions.  
170.15     (5) The county shall be paid from state and federal funds 
170.16  available therefor the amount provided for in section 256.82.  
170.17     (6) Federal funds available for administrative purposes 
170.18  shall be distributed between the state and the counties in the 
170.19  same proportion that expenditures were made except as provided 
170.20  for in section 256.017. 
170.21     (7) The affected county may require that assistance paid 
170.22  under the AFDC emergency assistance program in the form of a 
170.23  utility deposit or rental unit damage deposit, less any amount 
170.24  retained by the landlord to remedy a tenant's default in payment 
170.25  of rent or other funds due to the landlord pursuant to a rental 
170.26  agreement, or to restore the premises to the condition at the 
170.27  commencement of the tenancy, ordinary wear and tear excepted, be 
170.28  returned to the county when the individual vacates the premises 
170.29  or paid to the recipient's new landlord as a vendor payment.  
170.30  The vendor payment of returned funds shall not be considered a 
170.31  new use of emergency assistance. 
170.32     Section 8 is effective July 1, 1997. 
170.33     Sec. 9.  Minnesota Statutes 1996, section 256.82, 
170.34  subdivision 2, is amended to read: 
170.35     Subd. 2.  [FOSTER CARE MAINTENANCE PAYMENTS.] 
170.36  Notwithstanding subdivision 1, for the purposes of foster care 
171.1   maintenance payments under Title IV-E of the federal Social 
171.2   Security Act, United States Code, title 42, sections 670 to 676, 
171.3   during the period beginning July 1, 1985, and ending December 
171.4   31, 1985, the county paying the maintenance costs shall be 
171.5   reimbursed for the costs from those federal funds available for 
171.6   that purpose together with an amount of state funds equal to a 
171.7   percentage of the difference between the total cost and the 
171.8   federal funds made available for payment.  This percentage shall 
171.9   not exceed the percentage specified in subdivision 1 for the aid 
171.10  to families with dependent children program.  In the event that 
171.11  the state appropriation for this purpose is less than the state 
171.12  percentage set in subdivision 1, the reimbursement shall be 
171.13  ratably reduced to the county.  Beginning January 1, 1986, for 
171.14  the purpose of foster care maintenance payments under Title IV-E 
171.15  of the Social Security Act, United States Code, title 42, 
171.16  sections 670 to 676, the county paying the maintenance costs 
171.17  must be reimbursed for the costs from the federal money 
171.18  available for the purpose.  Beginning July 1, 1997, for the 
171.19  purposes of determining a child's eligibility under title IV-E 
171.20  of the Social Security Act, the placing agency shall use AFDC 
171.21  requirements as specified in federal law. 
171.22     Sec. 10.  Minnesota Statutes 1996, section 256.9354, is 
171.23  amended by adding a subdivision to read: 
171.24     Subd. 8.  [SPONSOR'S INCOME AND RESOURCES DEEMED 
171.25  AVAILABLE.] When determining eligibility for any federal or 
171.26  state benefits under sections 256.9351 to 256.9363 and 256.9366 
171.27  to 256.9369, the income and resources of all noncitizens shall 
171.28  be deemed to include their sponsors' income and resources as 
171.29  defined in the Personal Responsibility and Work Opportunity 
171.30  Reconciliation Act of 1996, title IV, Public Law Number 104-193, 
171.31  sections 421 and 422.  For purposes of this section, "sponsor" 
171.32  means an individual or organization.  
171.33     Sec. 11.  [256.9370] [ASSET REQUIREMENT FOR MINNESOTACARE.] 
171.34     Subdivision 1.  [DEFINITIONS.] For purposes of this 
171.35  section, the following definitions apply. 
171.36     (a) "Asset" means cash and other personal property, as well 
172.1   as any real property, that a family or individual owns which has 
172.2   monetary value. 
172.3      (b) "Homestead" means the home that is owned by, and is the 
172.4   usual residence of, the family or individual, together with the 
172.5   surrounding property which is not separated from the home by 
172.6   intervening property owned by others.  Public rights-of-way, 
172.7   such as roads that run through the surrounding property and 
172.8   separate it from the home, will not affect the exemption of the 
172.9   property.  "Usual residence" includes the home from which the 
172.10  family or individual is temporarily absent due to illness, 
172.11  employment, or education, or because the home is temporarily not 
172.12  habitable due to casualty or natural disaster. 
172.13     (c) "Net asset" means the asset's fair market value minus 
172.14  any encumbrances, including, but not limited to, liens and 
172.15  mortgages. 
172.16     Subd. 2.  [LIMIT ON TOTAL ASSETS.] (a) Effective April 1, 
172.17  1997, or upon federal approval, whichever is later, in order to 
172.18  be eligible for the MinnesotaCare program, a household of two or 
172.19  more persons must not own more than $30,000 in total net assets, 
172.20  and a household of one person must not own more than $15,000 in 
172.21  total net assets. 
172.22     (b) For purposes of this subdivision, total net assets 
172.23  include all assets, with the following exceptions: 
172.24     (1) a homestead is not considered; 
172.25     (2) household goods and personal effects are not 
172.26  considered; and 
172.27     (3) capital and operating assets of a trade or business up 
172.28  to $200,000 in net assets are not considered. 
172.29     (c) If an asset excluded under paragraph (b) has a negative 
172.30  value, the negative value shall be subtracted from the total net 
172.31  assets under paragraph (a). 
172.32     Subd. 3.  [DOCUMENTATION.] Assets owned by the individual 
172.33  or family must be reported.  The commissioner will perform 
172.34  random audits to verify reported assets. 
172.35     Subd. 4.  [PENALTIES.] Individuals or families who are 
172.36  found to have knowingly misreported the amount of their assets 
173.1   as described in this section shall be subject to the penalties 
173.2   in section 256.98.  The commissioner shall present 
173.3   recommendations on additional penalties to the 1998 legislature. 
173.4      Sec. 12.  [256.9371] [PENALTIES.] 
173.5      Whoever obtains or attempts to obtain, or aids or abets any 
173.6   person to obtain by means of a willfully false statement or 
173.7   representation, or by the intentional withholding or concealment 
173.8   of a material fact, or by impersonation, or other fraudulent 
173.9   device: 
173.10     (1) benefits under the MinnesotaCare program to which the 
173.11  person is not entitled; or 
173.12     (2) benefits under the MinnesotaCare program greater than 
173.13  that to which the person is reasonably entitled; 
173.14  shall be considered to have violated section 256.98, and shall 
173.15  be subject to both the criminal and civil penalties provided 
173.16  under that section. 
173.17     Sec. 13.  Minnesota Statutes 1996, section 256B.055, 
173.18  subdivision 3, is amended to read: 
173.19     Subd. 3.  [AFDC FAMILIES.] Until January 1, 1998, medical 
173.20  assistance may be paid for a person who is eligible for or 
173.21  receiving, or who would be eligible for, except for excess 
173.22  income or assets, public assistance under the aid to families 
173.23  with dependent children program in effect as of July 16, 1996, 
173.24  as required by the Personal Responsibility and Work Opportunity 
173.25  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193.  
173.26     Sec. 14.  Minnesota Statutes 1996, section 256B.055, is 
173.27  amended by adding a subdivision to read: 
173.28     Subd. 3a.  [MFIP-S FAMILIES; FAMILIES ELIGIBLE UNDER PRIOR 
173.29  AFDC RULES.] (a) Beginning January 1, 1998, or on the date that 
173.30  MFIP-S is implemented in counties which choose the MFIP-S early 
173.31  implementation option under section 256J.50, medical assistance 
173.32  may be paid for a person receiving public assistance under the 
173.33  MFIP-S program. 
173.34     (b) Beginning January 1, 1998, or on the date that MFIP-S 
173.35  is implemented in counties which elect to implement MFIP-S 
173.36  earlier under section 256J.50, medical assistance may be paid 
174.1   for a person who would have been eligible for public assistance 
174.2   under the income and resource standards and deprivation 
174.3   requirements, or who would have been eligible but for excess 
174.4   income or assets, under the state's AFDC plan in effect as of 
174.5   July 16, 1996, as required by the Personal Responsibility and 
174.6   Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
174.7   Number 104-193. 
174.8      Sec. 15.  Minnesota Statutes 1996, section 256B.055, 
174.9   subdivision 5, is amended to read: 
174.10     Subd. 5.  [PREGNANT WOMEN; DEPENDENT UNBORN CHILD.] Medical 
174.11  assistance may be paid for a pregnant woman who has written 
174.12  verification of a positive pregnancy test from a physician or 
174.13  licensed registered nurse, who meets the other eligibility 
174.14  criteria of this section and who would be categorically eligible 
174.15  for assistance under the aid to families with dependent children 
174.16  program state's AFDC plan in effect as of July 16, 1996, as 
174.17  required by the Personal Responsibility and Work Opportunity 
174.18  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
174.19  if the child had been born and was living with the woman.  For 
174.20  purposes of this subdivision, a woman is considered pregnant for 
174.21  60 days postpartum. 
174.22     Sec. 16.  Minnesota Statutes 1996, section 256B.056, 
174.23  subdivision 1a, is amended to read: 
174.24     Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
174.25  specifically required by state law or rule or federal law or 
174.26  regulation, the methodologies used in counting income and assets 
174.27  to determine eligibility for medical assistance for persons 
174.28  whose eligibility category is based on blindness, disability, or 
174.29  age of 65 or more years, the methodologies for the supplemental 
174.30  security income program shall be used, except that payments made 
174.31  pursuant according to a court order for the support of children 
174.32  shall be excluded from income in an amount not to exceed the 
174.33  difference between the applicable income standard used in the 
174.34  state's medical assistance program for aged, blind, and disabled 
174.35  persons and the applicable income standard used in the state's 
174.36  medical assistance program for families with children.  
175.1   Exclusion of court-ordered child support payments is subject to 
175.2   the condition that if there has been a change in the financial 
175.3   circumstances of the person with the legal obligation to pay 
175.4   support since the support order was entered, the person with the 
175.5   legal obligation to pay support has petitioned for modification 
175.6   of the support order.  For families and children, which includes 
175.7   all other eligibility categories, the methodologies for the aid 
175.8   to families with dependent children program under section 256.73 
175.9   under the state's AFDC plan in effect as of July 16, 1996, as 
175.10  required by the Personal Responsibility and Work Opportunity 
175.11  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
175.12  shall be used.  Effective upon federal approval, in-kind 
175.13  contributions to, and payments made on behalf of, a recipient, 
175.14  by an obligor, in satisfaction of or in addition to a temporary 
175.15  or permanent order for child support or maintenance, shall be 
175.16  considered income to the recipient.  For these purposes, a 
175.17  "methodology" does not include an asset or income standard, or 
175.18  accounting method, or method of determining effective dates. 
175.19     Sec. 17.  Minnesota Statutes 1996, section 256B.056, 
175.20  subdivision 3, is amended to read: 
175.21     Subd. 3.  [ASSET LIMITATIONS.] To be eligible for medical 
175.22  assistance, a person must not individually own more than $3,000 
175.23  in assets, or if a member of a household with two family 
175.24  members, (husband and wife, or parent and child), the household 
175.25  must not own more than $6,000 in assets, plus $200 for each 
175.26  additional legal dependent.  In addition to these maximum 
175.27  amounts, an eligible individual or family may accrue interest on 
175.28  these amounts, but they must be reduced to the maximum at the 
175.29  time of an eligibility redetermination.  The accumulation of the 
175.30  clothing and personal needs allowance pursuant according to 
175.31  section 256B.35 must also be reduced to the maximum at the time 
175.32  of the eligibility redetermination.  The value of assets that 
175.33  are not considered in determining eligibility for medical 
175.34  assistance is the value of those assets that are excluded by the 
175.35  aid to families with dependent children program excluded under 
175.36  the AFDC state plan as of July 16, 1996, as required by the 
176.1   Personal Responsibility and Work Opportunity Reconciliation Act 
176.2   of 1996 (PRWORA), Public Law Number 104-193, for families and 
176.3   children, and the supplemental security income program for aged, 
176.4   blind, and disabled persons, with the following exceptions: 
176.5      (a) Household goods and personal effects are not considered.
176.6      (b) Capital and operating assets of a trade or business 
176.7   that the local agency determines are necessary to the person's 
176.8   ability to earn an income are not considered. 
176.9      (c) Motor vehicles are excluded to the same extent excluded 
176.10  by the supplemental security income program. 
176.11     (d) Assets designated as burial expenses are excluded to 
176.12  the same extent excluded by the supplemental security income 
176.13  program. 
176.14     Sec. 18.  Minnesota Statutes 1996, section 256B.056, 
176.15  subdivision 4, is amended to read: 
176.16     Subd. 4.  [INCOME.] To be eligible for medical assistance, 
176.17  a person must not have, or anticipate receiving, semiannual 
176.18  income in excess of 120 percent of the income standards by 
176.19  family size used in under the aid to families with dependent 
176.20  children program state plan as of July 16, 1996, as required by 
176.21  the Personal Responsibility and Work Opportunity Reconciliation 
176.22  Act of 1996 (PRWORA), Public Law Number 104-193, except that 
176.23  families and children may have an income up to 133-1/3 percent 
176.24  of the AFDC income standard.  In computing income to determine 
176.25  eligibility of persons who are not residents of long-term care 
176.26  facilities, the commissioner shall disregard increases in income 
176.27  as required by Public Law Numbers 94-566, section 503; 99-272; 
176.28  and 99-509.  Veterans aid and attendance benefits are considered 
176.29  income to the recipient. 
176.30     Sec. 19.  Minnesota Statutes 1996, section 256B.057, 
176.31  subdivision 1, is amended to read: 
176.32     Subdivision 1.  [PREGNANT WOMEN AND INFANTS.] (a) An infant 
176.33  less than one year of age or a pregnant woman who has written 
176.34  verification of a positive pregnancy test from a physician or 
176.35  licensed registered nurse, is eligible for medical assistance if 
176.36  countable family income is equal to or less than 275 percent of 
177.1   the federal poverty guideline for the same family size.  For 
177.2   purposes of this subdivision, "countable family income" means 
177.3   the amount of income considered available using the methodology 
177.4   of the AFDC program under the state's AFDC plan as of July 16, 
177.5   1996, as required by the Personal Responsibility and Work 
177.6   Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
177.7   Number 104-193, except for the earned income disregard and 
177.8   employment deductions.  An amount equal to the amount of earned 
177.9   income exceeding 275 percent of the federal poverty guideline, 
177.10  up to a maximum of the amount by which the combined total of 185 
177.11  percent of the federal poverty guideline plus the earned income 
177.12  disregards and deductions of the AFDC program under the state's 
177.13  AFDC plan as of July 16, 1996, as required by the Personal 
177.14  Responsibility and Work Opportunity Reconciliation Act of 1996 
177.15  (PRWORA), Public Law Number 104-193, exceeds 275 percent of the 
177.16  federal poverty guideline will be deducted for pregnant women 
177.17  and infants less than one year of age.  Eligibility for a 
177.18  pregnant woman or infant less than one year of age under this 
177.19  subdivision must be determined without regard to asset standards 
177.20  established in section 256B.056, subdivision 3.  
177.21     (b) An infant born on or after January 1, 1991, to a woman 
177.22  who was eligible for and receiving medical assistance on the 
177.23  date of the child's birth shall continue to be eligible for 
177.24  medical assistance without redetermination until the child's 
177.25  first birthday, as long as the child remains in the woman's 
177.26  household. 
177.27     Sec. 20.  Minnesota Statutes 1996, section 256B.057, 
177.28  subdivision 1b, is amended to read: 
177.29     Subd. 1b.  [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 
177.30  This subdivision supersedes subdivision 1 as long as the 
177.31  Minnesota health care reform waiver remains in effect.  When the 
177.32  waiver expires, the commissioner of human services shall publish 
177.33  a notice in the State Register and notify the revisor of 
177.34  statutes.  An infant less than two years of age or a pregnant 
177.35  woman who has written verification of a positive pregnancy test 
177.36  from a physician or licensed registered nurse, is eligible for 
178.1   medical assistance if countable family income is equal to or 
178.2   less than 275 percent of the federal poverty guideline for the 
178.3   same family size.  For purposes of this subdivision, "countable 
178.4   family income" means the amount of income considered available 
178.5   using the methodology of the AFDC program under the state's AFDC 
178.6   plan as of July 16, 1996, as required by the Personal 
178.7   Responsibility and Work Opportunity Reconciliation Act of 1996 
178.8   (PRWORA), Public Law Number 104-193, except for the earned 
178.9   income disregard and employment deductions.  An amount equal to 
178.10  the amount of earned income exceeding 275 percent of the federal 
178.11  poverty guideline, up to a maximum of the amount by which the 
178.12  combined total of 185 percent of the federal poverty guideline 
178.13  plus the earned income disregards and deductions of the AFDC 
178.14  program under the state's AFDC plan as of July 16, 1996, as 
178.15  required by the Personal Responsibility and Work Opportunity 
178.16  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
178.17  exceeds 275 percent of the federal poverty guideline will be 
178.18  deducted for pregnant women and infants less than two years of 
178.19  age.  Eligibility for a pregnant woman or infant less than two 
178.20  years of age under this subdivision must be determined without 
178.21  regard to asset standards established in section 256B.056, 
178.22  subdivision 3.  
178.23     (b) An infant born on or after January 1, 1991, to a woman 
178.24  who was eligible for and receiving medical assistance on the 
178.25  date of the child's birth shall continue to be eligible for 
178.26  medical assistance without redetermination until the child's 
178.27  second birthday, as long as the child remains in the woman's 
178.28  household. 
178.29     Sec. 21.  Minnesota Statutes 1996, section 256B.057, 
178.30  subdivision 2b, is amended to read: 
178.31     Subd. 2b.  [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS; 
178.32  EXPANSION.] This subdivision supersedes subdivision 2a as long 
178.33  as the Minnesota health care reform waiver remains in effect.  
178.34  When the waiver expires, this subdivision expires and the 
178.35  commissioner of human services shall publish a notice in the 
178.36  State Register and notify the revisor of statutes.  Eligibility 
179.1   for medical assistance for a person under age 21, and the 
179.2   person's parents or relative caretakers as defined in the aid to 
179.3   families with dependent children program according to chapter 
179.4   256, who are eligible under section 256B.055, subdivision 
179.5   3 under the state's AFDC plan in effect as of July 16, 1996, as 
179.6   required by the Personal Responsibility and Work Opportunity 
179.7   Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
179.8   and who live in the same household as the person eligible under 
179.9   age 21, must be determined without regard to asset standards 
179.10  established in section 256B.056. 
179.11     Sec. 22.  Minnesota Statutes 1996, section 256B.06, 
179.12  subdivision 4, is amended to read: 
179.13     Subd. 4.  [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 
179.14  medical assistance is limited to citizens of the United 
179.15  States and aliens lawfully admitted for permanent residence or 
179.16  otherwise permanently residing in the United States under the 
179.17  color of law.  Aliens who are seeking legalization under the 
179.18  Immigration Reform and Control Act of 1986, Public Law Number 
179.19  99-603, who are under age 18, over age 65, blind, disabled, or 
179.20  Cuban or Haitian, and who meet the eligibility requirements of 
179.21  medical assistance under subdivision 1 and sections 256B.055 to 
179.22  256B.062 are eligible to receive medical assistance.  Pregnant 
179.23  women who are aliens seeking legalization under the Immigration 
179.24  Reform and Control Act of 1986, Public Law Number 99-603, and 
179.25  who meet the eligibility requirements of medical assistance 
179.26  under subdivision 1 are eligible for payment of care and 
179.27  services through the period of pregnancy and six weeks 
179.28  postpartum.  Payment shall also be made for care and services 
179.29  that are furnished to an alien, regardless of immigration 
179.30  status, who otherwise meets the eligibility requirements of this 
179.31  section if such care and services are necessary for the 
179.32  treatment of an emergency medical condition, except for organ 
179.33  transplants and related care and services.  For purposes of this 
179.34  subdivision, the term "emergency medical condition" means a 
179.35  medical condition, including labor and delivery, that if not 
179.36  immediately treated could cause a person physical or mental 
180.1   disability, continuation of severe pain, or death., qualified 
180.2   noncitizens as defined in this subdivision, and other persons 
180.3   residing lawfully in the United States. 
180.4      (b) "Qualified noncitizen" means a person who meets one of 
180.5   the following immigration criteria: 
180.6      (1) admitted for lawful permanent residence according to 
180.7   United States Code, title 8; 
180.8      (2) admitted to the United States as a refugee according to 
180.9   United States Code, title 8, section 1157; 
180.10     (3) granted asylum according to United States Code, title 
180.11  8, section 1158; 
180.12     (4) granted withholding of deportation according to United 
180.13  States Code, title 8, section 1253(h); 
180.14     (5) paroled for a period of at least one year according to 
180.15  United States Code, title 8, section 1182(d)(5); 
180.16     (6) granted conditional entrant status according to United 
180.17  States Code, title 8, section 1153(a)(7); or 
180.18     (7) determined to be a battered noncitizen by the United 
180.19  States Attorney General according to the Illegal Immigration 
180.20  Reform and Immigrant Responsibility Act of 1996, title V of the 
180.21  Omnibus Consolidated Appropriations Bill, Public Law Number 
180.22  104-200. 
180.23     (c) All qualified noncitizens who were residing in the 
180.24  United States before August 22, 1996, who otherwise meet the 
180.25  eligibility requirements of chapter 256B, are eligible for 
180.26  medical assistance with federal financial participation. 
180.27     (d) All qualified noncitizens who entered the United States 
180.28  on or after August 22, 1996, and who otherwise meet the 
180.29  eligibility requirements of chapter 256B, are eligible for 
180.30  medical assistance with federal financial participation through 
180.31  November 30, 1996. 
180.32     Beginning December 1, 1996, qualified noncitizens who 
180.33  entered the United States on or after August 22, 1996, and who 
180.34  otherwise meet the eligibility requirements of chapter 256B are 
180.35  eligible for medical assistance with federal participation for 
180.36  five years if they meet one of the following criteria: 
181.1      (i) refugees admitted to the United States according to 
181.2   United States Code, title 8, section 1157; 
181.3      (ii) persons granted asylum according to United States 
181.4   Code, title 8, section 1158; 
181.5      (iii) persons granted withholding of deportation according 
181.6   to United States code, title 8, section 1253(h); 
181.7      (iv) veterans of the United States Armed Forces with an 
181.8   honorable discharge for a reason other than noncitizen status, 
181.9   their spouses and unmarried minor dependent children; or 
181.10     (v) persons on active duty in the United States Armed 
181.11  Forces, other than for training, their spouses and unmarried 
181.12  minor dependent children. 
181.13     Beginning December 1, 1996, qualified noncitizens who do 
181.14  not meet one of the criteria in items (i) to (v) are eligible 
181.15  for medical assistance without federal financial participation 
181.16  as described in paragraph (j). 
181.17     (e) Noncitizens who are not qualified noncitizens as 
181.18  defined in paragraph (b), who are lawfully residing in the 
181.19  United States and who otherwise meet the eligibility 
181.20  requirements of chapter 256B, are eligible for medical 
181.21  assistance under clauses (1) to (3).  These individuals must 
181.22  cooperate with the Immigration and Naturalization Service to 
181.23  pursue any applicable immigration status, including citizenship, 
181.24  that would qualify them for medical assistance with federal 
181.25  financial participation. 
181.26     (1) Persons who were medical assistance recipients on 
181.27  August 22, 1996, are eligible for medical assistance with 
181.28  federal financial participation through December 31, 1996. 
181.29     (2) Beginning January 1, 1997, persons described in clause 
181.30  (1) are eligible for medical assistance without federal 
181.31  financial participation as described in paragraph (j). 
181.32     (3) Beginning December 1, 1996, persons residing in the 
181.33  United States prior to August 22, 1996, who were not receiving 
181.34  medical assistance and persons who arrived on or after August 
181.35  22, 1996, are eligible for medical assistance without federal 
181.36  financial participation as described in paragraph (j). 
182.1      (f) Nonimmigrants who otherwise meet the eligibility 
182.2   requirements of chapter 256B are eligible for the benefits as 
182.3   provided in paragraphs (g) to (i).  For purposes of this 
182.4   subdivision, a "nonimmigrant" is a person in one of the classes 
182.5   listed in United States Code, title 8, section 1101(a)(15). 
182.6      (g) Payment shall also be made for care and services that 
182.7   are furnished to noncitizens, regardless of immigration status, 
182.8   who otherwise meet the eligibility requirements of chapter 256B, 
182.9   if such care and services are necessary for the treatment of an 
182.10  emergency medical condition, except for organ transplants and 
182.11  related care and services and routine prenatal care.  
182.12     (h) For purposes of this subdivision, the term "emergency 
182.13  medical condition" means a medical condition that meets the 
182.14  requirements of United States Code, title 42, section 1396b(v). 
182.15     (i) Pregnant noncitizens who are undocumented or 
182.16  nonimmigrants, who otherwise meet the eligibility requirements 
182.17  of chapter 256B, are eligible for medical assistance payment 
182.18  without federal financial participation for care and services 
182.19  through the period of pregnancy, except for labor and delivery, 
182.20  and 60 days postpartum. 
182.21     (j) Qualified noncitizens as described in paragraph (d), 
182.22  and all other noncitizens lawfully residing in the United States 
182.23  as described in paragraph (e), who are ineligible for medical 
182.24  assistance with federal financial participation and who 
182.25  otherwise meet the eligibility requirements of chapter 256B and 
182.26  of this paragraph, are eligible for medical assistance without 
182.27  federal financial participation.  Qualified noncitizens as 
182.28  described in paragraph (d) are only eligible for medical 
182.29  assistance without federal financial participation for five 
182.30  years from their date of entry into the United States.  
182.31     (k) The commissioner shall submit to the legislature by 
182.32  December 31, 1998, a report on the number of recipients and cost 
182.33  of coverage of care and services made according to paragraphs 
182.34  (i) and (j). 
182.35     (l) To receive medical assistance without federal financial 
182.36  participation under this subdivision, a legal adult noncitizen 
183.1   must: 
183.2      (1) be enrolled in a literacy class, English as a second 
183.3   language class, or a citizen class; 
183.4      (2) be applying for admission to a literacy class, English 
183.5   as a second language class, and is on a waiting list; 
183.6      (3) be in the process of applying for a waiver from the 
183.7   Immigration and Naturalization Service of the English language 
183.8   or civics requirements of the citizenship test; 
183.9      (4) have submitted an application for citizenship to the 
183.10  Immigration and Naturalization Service and is waiting for a 
183.11  testing date or a subsequent swearing in ceremony; or 
183.12     (5) have been denied citizenship due to a failure to pass 
183.13  the test after two attempts or because of an inability to 
183.14  understand the rights and responsibilities of becoming a United 
183.15  States citizen, as documented by the Immigration and 
183.16  Naturalization Service or the county. 
183.17     Sec. 23.  Minnesota Statutes 1996, section 256B.06, is 
183.18  amended by adding a subdivision to read: 
183.19     Subd. 5.  [DEEMING OF SPONSOR INCOME AND RESOURCES.] When 
183.20  determining eligibility for any federal or state funded medical 
183.21  assistance under this section, the income and resources of all 
183.22  noncitizens shall be deemed to include their sponsors' income 
183.23  and resources as required under the Personal Responsibility and 
183.24  Work Opportunity Reconciliation Act of 1996, title IV, Public 
183.25  Law Number 104-193, sections 421 and 422.  For purposes of this 
183.26  subdivision "sponsor" means an individual or organization.  This 
183.27  section is effective the day following final enactment. 
183.28     Sec. 24.  Minnesota Statutes 1996, section 256B.062, is 
183.29  amended to read: 
183.30     256B.062 [CONTINUED ELIGIBILITY.] 
183.31     Medical assistance may be paid for persons who received aid 
183.32  to families with dependent children in at least three of the six 
183.33  months preceding the month in which the person became ineligible 
183.34  for aid to families with dependent children, if the 
183.35  ineligibility was due to an increase in hours of employment or 
183.36  employment income or due to the loss of an earned income 
184.1   disregard.  A person who is eligible for extended medical 
184.2   assistance is entitled to six months of assistance without 
184.3   reapplication, unless the assistance unit ceases to include a 
184.4   dependent child.  For a person under 21 years of age, medical 
184.5   assistance may not be discontinued within the six-month period 
184.6   of extended eligibility until it has been determined that the 
184.7   person is not otherwise eligible for medical assistance.  
184.8   Medical assistance may be continued for an additional six months 
184.9   if the person meets all requirements for the additional six 
184.10  months, according to Title XIX of the Social Security Act, as 
184.11  amended by section 303 of the Family Support Act of 1988, Public 
184.12  Law Number 100-485.  This section is repealed effective January 
184.13  1, 1998.  
184.14     Sec. 25.  [256B.0635] [CONTINUED ELIGIBILITY IN SPECIAL 
184.15  CIRCUMSTANCES.] 
184.16     Subdivision 1.  [INCREASED EMPLOYMENT.] Beginning January 
184.17  1, 1998, or on the date that MFIP-S is implemented in counties 
184.18  which elect to implement MFIP-S earlier under section 256J.50, 
184.19  medical assistance may be paid for persons who received MFIP-S 
184.20  or medical assistance for families and children in at least 
184.21  three of six months preceding the month in which the person 
184.22  became ineligible for MFIP-S or medical assistance, if the 
184.23  ineligibility was due to an increase in hours of employment or 
184.24  employment income or due to the loss of an earned income 
184.25  disregard.  In addition, to receive continued assistance under 
184.26  this section, persons who received medical assistance for 
184.27  families and children but did not receive MFIP-S must have had 
184.28  income less than or equal to the assistance standard for their 
184.29  family size under the state's AFDC plan in effect as of July 16, 
184.30  1996, as required by the Personal Responsibility and Work 
184.31  Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
184.32  Number 104-193, at the time medical assistance eligibility 
184.33  began.  A person who is eligible for extended medical assistance 
184.34  is entitled to six months of assistance without reapplication, 
184.35  unless the assistance unit ceases to include a dependent child.  
184.36  For a person under 21 years of age, medical assistance may not 
185.1   be discontinued within the six-month period of extended 
185.2   eligibility until it has been determined that the person is not 
185.3   otherwise eligible for medical assistance.  Medical assistance 
185.4   may be continued for an additional six months if the person 
185.5   meets all requirements for the additional six months, according 
185.6   to Title XIX of the Social Security Act, as amended by section 
185.7   303 of the Family Support Act of 1988, Public Law Number 100-485.
185.8      Subd. 2.  [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 
185.9   January 1, 1998, or on the date that MFIP-S is implemented in 
185.10  counties which elect to implement MFIP-S earlier under section 
185.11  256J.50, medical assistance may be paid for persons who received 
185.12  MFIP-S or medical assistance for families and children in at 
185.13  least three of the six months preceding the month in which the 
185.14  person became ineligible for MFIP-S or medical assistance, if 
185.15  the ineligibility was the result of the collection of child or 
185.16  spousal support under part D of title IV.  In addition, to 
185.17  receive continued assistance under this section, persons who 
185.18  received medical assistance for families and children but did 
185.19  not receive MFIP-S must have had income less than or equal to 
185.20  the assistance standard for their family size under the state's 
185.21  AFDC plan in effect as of July 16, 1996, as required by the 
185.22  Personal Responsibility and Work Opportunity Reconciliation Act 
185.23  of 1996 (PRWORA), Public Law Number 104-193, at the time medical 
185.24  assistance eligibility began.  A person who is eligible for 
185.25  extended medical assistance under this subdivision is entitled 
185.26  to four months of assistance without reapplication, unless the 
185.27  assistance unit ceases to include a dependent child.  For a 
185.28  person under 21 years of age, medical assistance may not be 
185.29  discontinued within the four-month period of extended 
185.30  eligibility until it has been determined that the person is not 
185.31  otherwise eligible for medical assistance. 
185.32     Sec. 26.  Minnesota Statutes 1996, section 256D.01, 
185.33  subdivision 1, is amended to read: 
185.34     Subdivision 1.  [POLICY.] The objectives of sections 
185.35  256D.01 to 256D.21 are to provide a sound administrative 
185.36  structure for public assistance programs; to maximize the use of 
186.1   federal money for public assistance purposes; to provide an 
186.2   integrated public assistance program for all persons eligible 
186.3   households in the state without adequate income or resources to 
186.4   maintain a subsistence reasonably compatible with decency and 
186.5   health; and to provide services to help employable and 
186.6   potentially employable persons prepare for and attain 
186.7   self-sufficiency and obtain permanent work. 
186.8      It is declared to be the policy of this state that persons 
186.9   eligible households unable to provide for themselves and not 
186.10  otherwise provided for by law and who meet the eligibility 
186.11  requirements of sections 256D.01 to 256D.21 are entitled to 
186.12  receive grants of general assistance necessary to maintain a 
186.13  subsistence reasonably compatible with decency and health.  
186.14  Providing this assistance is a matter of public concern and a 
186.15  necessity in promoting the public health and welfare. 
186.16     Section 23 is effective January 1, 1998. 
186.17     Sec. 27.  Minnesota Statutes 1996, section 256D.01, 
186.18  subdivision 1a, is amended to read: 
186.19     Subd. 1a.  [STANDARDS.] (a) A principal objective in 
186.20  providing general assistance is to provide for persons single 
186.21  adults or childless couples ineligible for federal programs who 
186.22  are unable to provide for themselves.  The minimum standard of 
186.23  assistance determines the total amount of the general assistance 
186.24  grant without separate standards for shelter, utilities, or 
186.25  other needs. 
186.26     (b) The commissioner shall set the standard of assistance 
186.27  for an assistance unit consisting of an adult recipient who is 
186.28  childless and unmarried or living apart from children and spouse 
186.29  and who does not live with a parent or parents or a legal 
186.30  custodian.  When the other standards specified in this 
186.31  subdivision increase, this standard must also be increased by 
186.32  the same percentage. 
186.33     (c) For an assistance unit consisting of a single adult who 
186.34  lives with a parent or parents, the general assistance standard 
186.35  of assistance is the amount that the aid to families with 
186.36  dependent children standard of assistance, in effect on July 16, 
187.1   1996, would increase if the recipient were added as an 
187.2   additional minor child to an assistance unit consisting of the 
187.3   recipient's parent and all of that parent's family members, 
187.4   except that the standard may not exceed the standard for a 
187.5   general assistance recipient living alone.  Benefits received by 
187.6   a responsible relative of the assistance unit under the 
187.7   supplemental security income program, a workers' compensation 
187.8   program, the Minnesota supplemental aid program, or any other 
187.9   program based on the responsible relative's disability, and any 
187.10  benefits received by a responsible relative of the assistance 
187.11  unit under the social security retirement program, may not be 
187.12  counted in the determination of eligibility or benefit level for 
187.13  the assistance unit.  Except as provided below, the assistance 
187.14  unit is ineligible for general assistance if the available 
187.15  resources or the countable income of the assistance unit and the 
187.16  parent or parents with whom the assistance unit lives are such 
187.17  that a family consisting of the assistance unit's parent or 
187.18  parents, the parent or parents' other family members and the 
187.19  assistance unit as the only or additional minor child would be 
187.20  financially ineligible for general assistance.  For the purposes 
187.21  of calculating the countable income of the assistance unit's 
187.22  parent or parents, the calculation methods, income deductions, 
187.23  exclusions, and disregards used when calculating the countable 
187.24  income for a single adult or childless couple must be used. 
187.25     (d) For an assistance unit consisting of a childless 
187.26  couple, the standards of assistance are the same as the first 
187.27  and second adult standards of the aid to families with dependent 
187.28  children program in effect on July 16, 1996.  If one member of 
187.29  the couple is not included in the general assistance grant, the 
187.30  standard of assistance for the other is the second adult 
187.31  standard of the aid to families with dependent children program. 
187.32     (e) For an assistance unit consisting of all members of a 
187.33  family, the standards of assistance are the same as the 
187.34  standards of assistance that apply to a family under the aid to 
187.35  families with dependent children program if that family had the 
187.36  same number of parents and children as the assistance unit under 
188.1   general assistance and if all members of that family were 
188.2   eligible for the aid to families with dependent children 
188.3   program.  If one or more members of the family are not included 
188.4   in the assistance unit for general assistance, the standards of 
188.5   assistance for the remaining members are the same as the 
188.6   standards of assistance that apply to an assistance unit 
188.7   composed of the entire family, less the standards of assistance 
188.8   for a family of the same number of parents and children as those 
188.9   members of the family who are not in the assistance unit for 
188.10  general assistance.  In no case shall the standard for family 
188.11  members who are in the assistance unit for general assistance, 
188.12  when combined with the standard for family members who are not 
188.13  in the general assistance unit, total more than the standard for 
188.14  the entire family if all members were in an AFDC assistance 
188.15  unit.  A child may not be excluded from the assistance unit 
188.16  unless income intended for its benefit is received from a 
188.17  federally aided categorical assistance program or supplemental 
188.18  security income.  The income of a child who is excluded from the 
188.19  assistance unit may not be counted in the determination of 
188.20  eligibility or benefit level for the assistance unit. 
188.21     (f) An assistance unit consisting of one or more members of 
188.22  a family must have its grant determined using the policies and 
188.23  procedures of the aid to families with dependent children 
188.24  program, except that, until June 30, 1995, in cases where a 
188.25  county agency has developed or approved a case plan that 
188.26  includes reunification with the children, foster care 
188.27  maintenance payments made under state or local law for a child 
188.28  who is temporarily absent from the assistance unit must not be 
188.29  considered income to the child and the payments must not be 
188.30  counted in the determination of the eligibility or benefit level 
188.31  of the assistance unit.  Otherwise, the standard of assistance 
188.32  must be determined according to paragraph (e); the first $50 of 
188.33  total child support received by an assistance unit in a month 
188.34  must be excluded and the balance counted as unearned income. 
188.35     Section 24 is effective January 1, 1998. 
188.36     Sec. 28.  Minnesota Statutes 1996, section 256D.01, 
189.1   subdivision 1e, is amended to read: 
189.2      Subd. 1e.  [RULES REGARDING EMERGENCY ASSISTANCE.] In order 
189.3   to maximize the use of federal funds, The commissioner shall 
189.4   adopt rules, to the extent permitted by federal law, for 
189.5   eligibility for the emergency assistance program under aid to 
189.6   families with dependent children, and under the terms of 
189.7   sections 256D.01 to 256D.21 for general assistance, to require 
189.8   use of the emergency program under aid to families with 
189.9   dependent children or MFIP-S as the primary financial resource 
189.10  when available.  The commissioner shall adopt rules for 
189.11  eligibility for general assistance of persons with seasonal 
189.12  income and may attribute seasonal income to other periods not in 
189.13  excess of one year from receipt by an applicant or recipient.  
189.14  General assistance payments may not be made for foster care, 
189.15  child welfare services, or other social services.  Vendor 
189.16  payments and vouchers may be issued only as authorized in 
189.17  sections 256D.05, subdivision 6, and 256D.09. 
189.18     Sec. 29.  Minnesota Statutes 1996, section 256D.02, 
189.19  subdivision 6, is amended to read: 
189.20     Subd. 6.  "Child" means an adult or minor child or 
189.21  emancipated minor or, until December 31, 1997, the minor child 
189.22  of an individual. 
189.23     Sec. 30.  Minnesota Statutes 1996, section 256D.02, 
189.24  subdivision 12a, is amended to read: 
189.25     Subd. 12a.  [RESIDENT.] (a) For purposes of eligibility for 
189.26  general assistance and general assistance medical care, a person 
189.27  must be a resident of this state.  
189.28     (b) A "resident" is a person living in the state for at 
189.29  least 30 days with the intention of making the person's home 
189.30  here and not for any temporary purpose.  Notwithstanding section 
189.31  256G.03, time spent in a shelter for battered women shall count 
189.32  toward satisfying the 30-day residency requirement.  All 
189.33  applicants for these programs are required to demonstrate the 
189.34  requisite intent and can do so in any of the following ways: 
189.35     (1) by showing that the applicant maintains a residence at 
189.36  a verified address, other than a place of public accommodation.  
190.1   An applicant may verify a residence address by presenting a 
190.2   valid state driver's license, a state identification card, a 
190.3   voter registration card, a rent receipt, a statement by the 
190.4   landlord, apartment manager, or homeowner verifying that the 
190.5   individual is residing at the address, or other form of 
190.6   verification approved by the commissioner; or 
190.7      (2) by verifying residence in accordance with according to 
190.8   Minnesota Rules, part 9500.1219, subpart 3, item C. 
190.9      (b) (c) An applicant who has been in the state for less 
190.10  than 30 days shall be considered a resident if the applicant can 
190.11  provide documentation: 
190.12     (1) that the applicant was born in the state; 
190.13     (2) that the applicant has been a long-time resident of the 
190.14  state or was formerly a resident of the state for at least 365 
190.15  days and is returning to the state from a temporary absence, as 
190.16  those terms are defined in rules adopted by the commissioner; 
190.17     (3) that the applicant has come to the state to join a 
190.18  close relative which, for purposes of this subdivision, means a 
190.19  parent, grandparent, brother, sister, spouse, or child; or 
190.20     (4) that the applicant has come to this state to accept a 
190.21  bona fide offer of employment for which the applicant is 
190.22  eligible.  
190.23     For general assistance medical care, a county agency shall 
190.24  waive the 30-day residency requirement in cases of emergencies, 
190.25  including medical emergencies, or where unusual hardship would 
190.26  result from denial of general assistance medical care.  For 
190.27  general assistance, a county may shall waive the 30-day 
190.28  residency requirement in cases of emergencies, including medical 
190.29  emergencies, or where unusual hardship would result from denial 
190.30  of general assistance.  For purposes of this subdivision, 
190.31  "unusual hardship" means the applicant is without shelter or is 
190.32  without available resources for food. 
190.33     The county agency must report to the commissioner within 30 
190.34  days on any waiver granted under this section.  The county shall 
190.35  not deny an application solely because the applicant does not 
190.36  meet at least one of the criteria in this subdivision, but shall 
191.1   continue to process the application and leave the application 
191.2   pending until the residency requirement is met or until 
191.3   eligibility or ineligibility is established. 
191.4      (d) For purposes of paragraph (c), the following 
191.5   definitions apply (1) "metropolitan statistical area" is as 
191.6   defined by the U.S. Census Bureau; (2) "shelter" includes any 
191.7   shelter that is located within the metropolitan statistical area 
191.8   containing the county and for which the applicant is eligible, 
191.9   provided the applicant does not have to travel more than 20 
191.10  miles to reach the shelter and has access to transportation to 
191.11  the shelter.  Clause (2) does not apply to counties in the 
191.12  Minneapolis-St. Paul metropolitan statistical area. 
191.13     (e) For purposes of eligibility for emergency general 
191.14  assistance, the 30-day residency requirement in paragraph (b) 
191.15  shall not be waived. 
191.16     (f) If any provision of this subdivision is enjoined from 
191.17  implementation or found unconstitutional by any court of 
191.18  competent jurisdiction, the remaining provisions shall remain 
191.19  valid and shall be given full effect. 
191.20     Section 27 is effective July 1, 1997. 
191.21     Sec. 31.  [256D.024] [PERSONS PROHIBITED FROM RECEIVING 
191.22  GENERAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, MINNESOTA 
191.23  SUPPLEMENTAL AID.] 
191.24     Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 
191.25  an applicant has been convicted of a drug offense after July 1, 
191.26  1997, the assistance unit is ineligible for benefits under this 
191.27  chapter until five years after the applicant has completed terms 
191.28  of the court-ordered sentence.  Persons subject to the 
191.29  limitations imposed by this section who become eligible for 
191.30  assistance under this chapter shall be subject to random drug 
191.31  testing as a condition of continued eligibility and shall lose 
191.32  eligibility for benefits beginning the month following any 
191.33  positive test result for an illegal controlled substance. 
191.34     (b) For the purposes of this subdivision, "drug offense" 
191.35  means a conviction that occurred after July 1, 1997, of sections 
191.36  152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
192.1   means a conviction in another jurisdiction of the possession, 
192.2   use, or distribution of a controlled substance, or conspiracy to 
192.3   commit any of these offenses, if the offense occurred after July 
192.4   1, 1997, and the conviction is a felony offense in that 
192.5   jurisdiction, or in the case of New Jersey, a high misdemeanor. 
192.6      Subd. 2.  [PAROLE VIOLATORS.] An individual violating a 
192.7   condition of probation or parole or supervised release imposed 
192.8   under federal law or the law of any state is ineligible to 
192.9   receive benefits under this chapter. 
192.10     Subd. 3.  [FLEEING FELONS.] An individual who is fleeing to 
192.11  avoid prosecution, or custody, or confinement after conviction 
192.12  for a crime that is a felony under the laws of the jurisdiction 
192.13  from which the individual flees, or in the case of New Jersey, 
192.14  is a high misdemeanor, is ineligible to receive benefits under 
192.15  this chapter. 
192.16     Subd. 4.  [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 
192.17  FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 
192.18  individual who is convicted in federal or state court of having 
192.19  made a fraudulent statement or representation with respect to 
192.20  the place of residence of the individual in order to receive 
192.21  assistance simultaneously from two or more states is ineligible 
192.22  to receive benefits under this chapter for ten years beginning 
192.23  on the date of the conviction. 
192.24     Sec. 32.  Minnesota Statutes 1996, section 256D.03, 
192.25  subdivision 3, is amended to read: 
192.26     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
192.27  (a) General assistance medical care may be paid for any person 
192.28  who is not eligible for medical assistance under chapter 256B, 
192.29  including eligibility for medical assistance based on a 
192.30  spenddown of excess income according to section 256B.056, 
192.31  subdivision 5, and: 
192.32     (1) who is receiving assistance under section 256D.05, or 
192.33  who is having a payment made on the person's behalf under 
192.34  sections 256I.01 to 256I.06; or 
192.35     (2)(i) who is a resident of Minnesota; and whose equity in 
192.36  assets is not in excess of $1,000 per assistance unit.  No asset 
193.1   test shall be applied to children and their parents living in 
193.2   the same household.  Exempt assets, the reduction of excess 
193.3   assets, and the waiver of excess assets must conform to the 
193.4   medical assistance program in chapter 256B, with the following 
193.5   exception:  the maximum amount of undistributed funds in a trust 
193.6   that could be distributed to or on behalf of the beneficiary by 
193.7   the trustee, assuming the full exercise of the trustee's 
193.8   discretion under the terms of the trust, must be applied toward 
193.9   the asset maximum; and 
193.10     (ii) who has countable income not in excess of the 
193.11  assistance standards established in section 256B.056, 
193.12  subdivision 4, or whose excess income is spent down pursuant 
193.13  according to section 256B.056, subdivision 5, using a six-month 
193.14  budget period, except that a one-month budget period must be 
193.15  used for recipients residing in a long-term care facility.  The 
193.16  method for calculating earned income disregards and deductions 
193.17  for a person who resides with a dependent child under age 21 
193.18  shall be as specified in section 256.74, subdivision 1 follow 
193.19  section 256B.056.  However, if a disregard of $30 and one-third 
193.20  of the remainder described in section 256.74, subdivision 1, 
193.21  clause (4), has been applied to the wage earner's income, the 
193.22  disregard shall not be applied again until the wage earner's 
193.23  income has not been considered in an eligibility determination 
193.24  for general assistance, general assistance medical care, medical 
193.25  assistance, or aid to families with dependent children or MFIP-S 
193.26  for 12 consecutive months.  The earned income and work expense 
193.27  deductions for a person who does not reside with a dependent 
193.28  child under age 21 shall be the same as the method used to 
193.29  determine eligibility for a person under section 256D.06, 
193.30  subdivision 1, except the disregard of the first $50 of earned 
193.31  income is not allowed; or 
193.32     (3) who would be eligible for medical assistance except 
193.33  that the person resides in a facility that is determined by the 
193.34  commissioner or the federal health care financing administration 
193.35  to be an institution for mental diseases. 
193.36     (b) Eligibility is available for the month of application, 
194.1   and for three months prior to application if the person was 
194.2   eligible in those prior months.  A redetermination of 
194.3   eligibility must occur every 12 months. 
194.4      (c) General assistance medical care is not available for a 
194.5   person in a correctional facility unless the person is detained 
194.6   by law for less than one year in a county correctional or 
194.7   detention facility as a person accused or convicted of a crime, 
194.8   or admitted as an inpatient to a hospital on a criminal hold 
194.9   order, and the person is a recipient of general assistance 
194.10  medical care at the time the person is detained by law or 
194.11  admitted on a criminal hold order and as long as the person 
194.12  continues to meet other eligibility requirements of this 
194.13  subdivision.  
194.14     (d) General assistance medical care is not available for 
194.15  applicants or recipients who do not cooperate with the county 
194.16  agency to meet the requirements of medical assistance. 
194.17     (e) In determining the amount of assets of an individual, 
194.18  there shall be included any asset or interest in an asset, 
194.19  including an asset excluded under paragraph (a), that was given 
194.20  away, sold, or disposed of for less than fair market value 
194.21  within the 60 months preceding application for general 
194.22  assistance medical care or during the period of eligibility.  
194.23  Any transfer described in this paragraph shall be presumed to 
194.24  have been for the purpose of establishing eligibility for 
194.25  general assistance medical care, unless the individual furnishes 
194.26  convincing evidence to establish that the transaction was 
194.27  exclusively for another purpose.  For purposes of this 
194.28  paragraph, the value of the asset or interest shall be the fair 
194.29  market value at the time it was given away, sold, or disposed 
194.30  of, less the amount of compensation received.  For any 
194.31  uncompensated transfer, the number of months of ineligibility, 
194.32  including partial months, shall be calculated by dividing the 
194.33  uncompensated transfer amount by the average monthly per person 
194.34  payment made by the medical assistance program to skilled 
194.35  nursing facilities for the previous calendar year.  The 
194.36  individual shall remain ineligible until this fixed period has 
195.1   expired.  The period of ineligibility may exceed 30 months, and 
195.2   a reapplication for benefits after 30 months from the date of 
195.3   the transfer shall not result in eligibility unless and until 
195.4   the period of ineligibility has expired.  The period of 
195.5   ineligibility begins in the month the transfer was reported to 
195.6   the county agency, or if the transfer was not reported, the 
195.7   month in which the county agency discovered the transfer, 
195.8   whichever comes first.  For applicants, the period of 
195.9   ineligibility begins on the date of the first approved 
195.10  application. 
195.11     (f) When determining eligibility for any state benefits 
195.12  under this subdivision, the income and resources of all 
195.13  noncitizens shall be deemed to include their sponsor's income 
195.14  and resources as defined in the Personal Responsibility and Work 
195.15  Opportunity Reconciliation Act of 1996, title IV, Public Law 
195.16  Number 104-193, section 421. 
195.17     (f) (g)(1) Beginning October 1, 1993, An undocumented alien 
195.18  noncitizen or a nonimmigrant is ineligible for general 
195.19  assistance medical care other than emergency services.  For 
195.20  purposes of this subdivision, a nonimmigrant is an individual in 
195.21  one or more of the classes listed in United States Code, title 
195.22  8, section 1101(a)(15), and an undocumented alien noncitizen is 
195.23  an individual who resides in the United States without the 
195.24  approval or acquiescence of the Immigration and Naturalization 
195.25  Service. 
195.26     (2) This subdivision does not apply to a child under age 
195.27  18, to a Cuban or Haitian entrant as defined in Public Law 
195.28  Number 96-422, section 501(e)(1) or (2)(a), or to an alien a 
195.29  noncitizen who is aged, blind, or disabled as defined in United 
195.30  States Code, title 42, section 1382c(a)(1) Code of Federal 
195.31  Regulations, title 42, sections 435.520, 435.530, 435.531, 
195.32  435.540, and 435.541, who cooperates with the Immigration and 
195.33  Naturalization Service to pursue any applicable immigration 
195.34  status, including citizenship, that would qualify the individual 
195.35  for medical assistance with federal financial participation. 
195.36     (3) For purposes of paragraph (f), "emergency services" has 
196.1   the meaning given in Code of Federal Regulations, title 42, 
196.2   section 440.255(b)(1), except that it also means services 
196.3   rendered because of suspected or actual pesticide poisoning. 
196.4      (4) Notwithstanding any other provision of law, a 
196.5   noncitizen who is ineligible for medical assistance due to the 
196.6   deeming of a sponsor's income and resources, is ineligible for 
196.7   general assistance medical care. 
196.8      Sec. 33.  Minnesota Statutes 1996, section 256D.05, 
196.9   subdivision 1, is amended to read: 
196.10     Subdivision 1.  [ELIGIBILITY.] (a) Each person or family 
196.11  whose assistance unit with income and resources are less than 
196.12  the standard of assistance established by the commissioner 
196.13  and with a member who is a resident of the state shall be 
196.14  eligible for and entitled to general assistance if the person or 
196.15  family assistance unit is: 
196.16     (1) a person who is suffering from a professionally 
196.17  certified permanent or temporary illness, injury, or incapacity 
196.18  which is expected to continue for more than 30 days and which 
196.19  prevents the person from obtaining or retaining employment; 
196.20     (2) a person whose presence in the home on a substantially 
196.21  continuous basis is required because of the professionally 
196.22  certified illness, injury, incapacity, or the age of another 
196.23  member of the household; 
196.24     (3) a person who has been placed in, and is residing in, a 
196.25  licensed or certified facility for purposes of physical or 
196.26  mental health or rehabilitation, or in an approved chemical 
196.27  dependency domiciliary facility, if the placement is based on 
196.28  illness or incapacity and is pursuant according to a plan 
196.29  developed or approved by the county agency through its director 
196.30  or designated representative or in a facility which has been 
196.31  designated by the commissioner of corrections as a battered 
196.32  women's shelter; 
196.33     (4) a person who resides in a shelter facility described in 
196.34  subdivision 3; 
196.35     (5) a person not described in clause (1) or (3) who is 
196.36  diagnosed by a licensed physician, psychological practitioner, 
197.1   or other qualified professional, as mentally retarded or 
197.2   mentally ill, and that condition prevents the person from 
197.3   obtaining or retaining employment; 
197.4      (6) (5) a person who has an application pending for, or is 
197.5   appealing termination of benefits from, the social security 
197.6   disability program or the program of supplemental security 
197.7   income for the aged, blind, and disabled, provided the person 
197.8   has a professionally certified permanent or temporary illness, 
197.9   injury, or incapacity which is expected to continue for more 
197.10  than 30 days and which prevents the person from obtaining or 
197.11  retaining employment; 
197.12     (7) (6) a person who is unable to obtain or retain 
197.13  employment because advanced age significantly affects the 
197.14  person's ability to seek or engage in substantial work; 
197.15     (8) (7) a person who has been assessed by a vocational 
197.16  specialist and, in consultation with the county agency, has been 
197.17  determined to be unemployable for purposes of this item, clause; 
197.18  a person is considered employable if there exist positions of 
197.19  employment in the local labor market, regardless of the current 
197.20  availability of openings for those positions, that the person is 
197.21  capable of performing.  The person's eligibility under this 
197.22  category must be reassessed at least annually.  The county 
197.23  agency must provide notice to the person not later than 30 days 
197.24  before annual eligibility under this item ends, informing the 
197.25  person of the date annual eligibility will end and the need for 
197.26  vocational assessment if the person wishes to continue 
197.27  eligibility under this clause.  For purposes of establishing 
197.28  eligibility under this clause, it is the applicant's or 
197.29  recipient's duty to obtain any needed vocational assessment; 
197.30     (9) (8) a person who is determined by the county agency, in 
197.31  accordance with according to permanent rules adopted by the 
197.32  commissioner, to be learning disabled, provided that if a 
197.33  rehabilitation plan for the person is developed or approved by 
197.34  the county agency, the person is following the plan; 
197.35     (10) (9) a child under the age of 18 who is not living with 
197.36  a parent, stepparent, or legal custodian, but and only if:  the 
198.1   child is legally emancipated or living with an adult with the 
198.2   consent of an agency acting as a legal custodian; the child is 
198.3   at least 16 years of age and the general assistance grant is 
198.4   approved by the director of the county agency or a designated 
198.5   representative as a component of a social services case plan for 
198.6   the child; or the child is living with an adult with the consent 
198.7   of the child's legal custodian and the county agency.  For 
198.8   purposes of this clause, "legally emancipated" means a person 
198.9   under the age of 18 years who:  (i) has been married; (ii) is on 
198.10  active duty in the uniformed services of the United States; 
198.11  (iii) has been emancipated by a court of competent jurisdiction; 
198.12  or (iv) is otherwise considered emancipated under Minnesota law, 
198.13  and for whom county social services has not determined that a 
198.14  social services case plan is necessary, for reasons other 
198.15  than that the child has failed or refuses to cooperate with the 
198.16  county agency in developing the plan; 
198.17     (11) (10) until January 1, 1998, a woman in the last 
198.18  trimester of pregnancy who does not qualify for aid to families 
198.19  with dependent children.  A woman who is in the last trimester 
198.20  of pregnancy who is currently receiving aid to families with 
198.21  dependent children may be granted emergency general assistance 
198.22  to meet emergency needs; 
198.23     (12) (11) a person who is eligible for displaced homemaker 
198.24  services, programs, or assistance under section 268.96, but only 
198.25  if that person is enrolled as a full-time student; 
198.26     (13)  a person who lives more than two hours round-trip 
198.27  traveling time from any potential suitable employment; 
198.28     (14) (12) a person who is involved with protective or 
198.29  court-ordered services that prevent the applicant or recipient 
198.30  from working at least four hours per day; 
198.31     (15) (13) until January 1, 1998, (i) a family as defined in 
198.32  section 256D.02, subdivision 5, which is ineligible for the aid 
198.33  to families with dependent children program. 
198.34     (ii) unless exempt under section 256D.051, subdivision 3a, 
198.35  each adult in the unit must participate in and cooperate with 
198.36  the food stamp employment and training program under section 
199.1   256D.051 each month that the unit receives general assistance 
199.2   benefits.  The recipient's participation must begin no later 
199.3   than the first day of the first full month following the 
199.4   determination of eligibility for general assistance benefits.  
199.5   To the extent of available resources, and with the county 
199.6   agency's consent, the recipient may voluntarily continue to 
199.7   participate in food stamp employment and training services for 
199.8   up to three additional consecutive months immediately following 
199.9   termination of general assistance benefits in order to complete 
199.10  the provisions of the recipient's employability development 
199.11  plan.  If an adult member fails without good cause to 
199.12  participate in or cooperate with the food stamp employment and 
199.13  training program, the county agency shall concurrently terminate 
199.14  that person's eligibility for general assistance and food stamps 
199.15  for two months or until compliance is achieved, whichever is 
199.16  shorter, using the notice, good cause, conciliation and 
199.17  termination procedures specified in section 256D.051; or 
199.18     (16) (14) a person over age 18 whose primary language is 
199.19  not English and who is attending high school at least half time; 
199.20     (15) a person under the age of 18 who suffers from 
199.21  maladaptive behavior in the personal and behavior function area, 
199.22  which for purposes of this section, is defined in the Code of 
199.23  Federal Regulations and has the meaning given to these terms as 
199.24  of August 21, 1996; or 
199.25     (16) a person whose alcohol and drug addiction is a 
199.26  material factor that contributes to the person's disability so 
199.27  long as the person is receiving treatment from a licensed 
199.28  chemical dependency provider, or is on a waiting list to receive 
199.29  such treatment. 
199.30     (b) Persons or families who are not Assistance units that 
199.31  do not include a state residents resident but who are otherwise 
199.32  eligible for general assistance may receive emergency general 
199.33  assistance to meet emergency needs. 
199.34     (c) As a condition of eligibility under paragraph (a), 
199.35  clauses (1), (3), (5) (4), (8) (7), and (9) (8), the 
199.36  recipient must complete an interim assistance agreement and must 
200.1   apply for other maintenance benefits as specified in section 
200.2   256D.06, subdivision 5, and must comply with efforts to 
200.3   determine the recipient's eligibility for those other 
200.4   maintenance benefits.  
200.5      (d) The burden of providing documentation for a county 
200.6   agency to use to verify eligibility for general assistance or 
200.7   for exemption from the food stamp employment and training 
200.8   program is upon the applicant or recipient.  The county agency 
200.9   shall use documents already in its possession to verify 
200.10  eligibility, and shall help the applicant or recipient obtain 
200.11  other existing verification necessary to determine eligibility 
200.12  which the applicant or recipient does not have and is unable to 
200.13  obtain. 
200.14     Sec. 34.  Minnesota Statutes 1996, section 256D.05, 
200.15  subdivision 5, is amended to read: 
200.16     Subd. 5.  [TRANSFERS OF PROPERTY.] The equity value of real 
200.17  and personal property transferred without reasonable 
200.18  compensation within 12 months preceding the date of application 
200.19  for general assistance must be included in determining the 
200.20  resources of an assistance unit in the same manner as in the aid 
200.21  to families with dependent children program under chapter 256 or 
200.22  MFIP-S under chapter 256J. 
200.23     Sec. 35.  Minnesota Statutes 1996, section 256D.05, 
200.24  subdivision 8, is amended to read: 
200.25     Subd. 8.  [PERSONS INELIGIBLE CITIZENSHIP.] (a) Beginning 
200.26  October 1, 1993, an undocumented alien or a nonimmigrant is 
200.27  ineligible for general assistance benefits.  For purposes of 
200.28  this subdivision, a nonimmigrant is an individual in one or more 
200.29  of the classes listed in United States Code, title 8, section 
200.30  1101(a)(15), and an undocumented alien is an individual who 
200.31  resides in the United States without the approval or 
200.32  acquiescence of the Immigration and Naturalization Service. 
200.33     (b) This subdivision does not apply to a child under age 
200.34  18, to a Cuban or Haitian entrant as defined in Public Law 
200.35  Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 
200.36  is aged, blind, or disabled as defined in United States Code, 
201.1   title 42, section 1382c(a)(1). (a) Effective July 1, 1997, 
201.2   citizenship requirements for applicants and recipients under 
201.3   sections 256D.01 to 256D.21 shall be determined the same as 
201.4   under section 256J.11, except that applicants and recipients 
201.5   must have been residents of Minnesota on March 1, 1997.  The 
201.6   income of sponsors of noncitizens shall be deemed available to 
201.7   general assistance and general assistance medical care 
201.8   applicants and recipients according to the Personal 
201.9   Responsibility and Work Opportunity Reconciliation Act of 1996, 
201.10  Public Law Number 104-193, Title IV, section 421.  For purposes 
201.11  of this subdivision "sponsor" means an individual or 
201.12  organization.  
201.13     (b) As a condition of eligibility, each legal adult 
201.14  noncitizen in the assistance unit must: 
201.15     (1) be enrolled in a literacy class, English as a second 
201.16  language class, or a citizen class; 
201.17     (2) be applying for admission to a literacy class, English 
201.18  as a second language class, and is on a waiting list; 
201.19     (3) be in the process of applying for a waiver from the 
201.20  Immigration and Naturalization Service of the English language 
201.21  or civics requirements of the citizenship test; 
201.22     (4) have submitted an application for citizenship to the 
201.23  Immigration and Naturalization Service and is waiting for a 
201.24  testing date or a subsequent swearing in ceremony; or 
201.25     (5) have been denied citizenship due to a failure to pass 
201.26  the test after two attempts or because of an inability to 
201.27  understand the rights and responsibilities of becoming a United 
201.28  States citizen, as documented by the Immigration and 
201.29  Naturalization Service or the county. 
201.30     Sec. 36.  Minnesota Statutes 1996, section 256D.051, 
201.31  subdivision 1a, is amended to read: 
201.32     Subd. 1a.  [NOTICES; CONCILIATION CONFERENCE; AND 
201.33  SANCTIONS.] (a) At the time the county agency notifies the 
201.34  household that it is eligible for food stamps, the county agency 
201.35  must inform all mandatory employment and training services 
201.36  participants as identified in subdivision 1 in the household 
202.1   that they must comply with all food stamp employment and 
202.2   training program requirements each month, including the 
202.3   requirement to attend an initial orientation to the food stamp 
202.4   employment and training program and that food stamp eligibility 
202.5   will end unless the participants comply with the requirements 
202.6   specified in the notice.  
202.7      (b) A participant who fails without good cause to comply 
202.8   with food stamp employment and training program requirements of 
202.9   this section, including attendance at orientation, will lose 
202.10  food stamp eligibility for two months or until the county agency 
202.11  determines that the participant has complied with the program 
202.12  requirements, whichever is shorter. the following periods: 
202.13     (1) for the first occurrence, for one month or until the 
202.14  person complies with the requirements not previously complied 
202.15  with, whichever is longer; 
202.16     (2) for the second occurrence, for three months or until 
202.17  the person complies with the requirements not previously 
202.18  complied with, whichever is longer; or 
202.19     (3) for the third and any subsequent occurrence, for six 
202.20  months or until the person complies with the requirements not 
202.21  previously complied with, whichever is longer. 
202.22     If the participant is not the food stamp head of household, 
202.23  the person shall be considered an ineligible household member 
202.24  for food stamp purposes.  If the participant is the food stamp 
202.25  head of household, the entire household is ineligible for food 
202.26  stamps as provided in Code of Federal Regulations, title 7, 
202.27  section 273.7(g).  "Good cause" means circumstances beyond the 
202.28  control of the participant, such as illness or injury, illness 
202.29  or injury of another household member requiring the 
202.30  participant's presence, a household emergency, or the inability 
202.31  to obtain child care for children between the ages of six and 12 
202.32  or to obtain transportation needed in order for the participant 
202.33  to meet the food stamp employment and training program 
202.34  participation requirements. 
202.35     (c) The county agency shall mail or hand deliver a notice 
202.36  to the participant not later than five days after determining 
203.1   that the participant has failed without good cause to comply 
203.2   with food stamp employment and training program requirements 
203.3   which specifies the requirements that were not complied with, 
203.4   the factual basis for the determination of noncompliance, and 
203.5   the right to reinstate eligibility upon a showing of good 
203.6   cause or the for failure to meet the requirements,.  The notice 
203.7   must ask the reason for the noncompliance, and must identify the 
203.8   participant's appeal rights.  The notice must request that the 
203.9   participant inform the county agency if the participant believes 
203.10  that good cause existed for the failure to comply, must offer 
203.11  the participant a conciliation conference as provided in 
203.12  paragraph (d), and must state that the county agency intends to 
203.13  terminate eligibility for food stamp benefits due to failure to 
203.14  comply with food stamp employment and training program 
203.15  requirements. 
203.16     (d) The county agency must offer a conciliation conference 
203.17  to participants who have failed to comply with food stamp 
203.18  employment and training program requirements.  The purpose of 
203.19  the conference is to determine the cause for noncompliance, to 
203.20  attempt to resolve the problem causing the noncompliance so that 
203.21  all requirements are complied with, and to determine if good 
203.22  cause for noncompliance was present.  The conciliation period 
203.23  shall run for ten working days from the date of the notice 
203.24  required in paragraph (c).  Information about how to request a 
203.25  conciliation conference must be specified in the notice required 
203.26  in paragraph (c).  If the county agency determines that the 
203.27  participant, during the conciliation period, complied with all 
203.28  food stamp employment and training program requirements that the 
203.29  recipient was required to comply with prior to and during the 
203.30  conciliation period, or if the county agency determines that 
203.31  good cause for failing to comply with the requirements was 
203.32  present, a sanction on the participant's or household's food 
203.33  stamp eligibility shall not be imposed. 
203.34     (e) If the county agency determines that the participant 
203.35  did not comply during the conciliation period month with all 
203.36  food stamp employment and training program requirements that 
204.1   were in effect prior to and during the conciliation period, and 
204.2   if the county agency determines that good cause was not present, 
204.3   the county must provide a ten-day notice of termination of food 
204.4   stamp benefits.  The termination notice must be issued following 
204.5   the last day of the conciliation period.  The amount of food 
204.6   stamps that are withheld from the household and determination of 
204.7   the impact of the sanction on other household members is 
204.8   governed by Code of Federal Regulations, title 7, section 273.7. 
204.9      (f) (e) The participant may appeal the termination of food 
204.10  stamp benefits under the provisions of section 256.045. 
204.11     Sec. 37.  Minnesota Statutes 1996, section 256D.051, 
204.12  subdivision 2a, is amended to read: 
204.13     Subd. 2a.  [DUTIES OF COMMISSIONER.] In addition to any 
204.14  other duties imposed by law, the commissioner shall: 
204.15     (1) based on this section and section 256D.052 and Code of 
204.16  Federal Regulations, title 7, section 273.7, supervise the 
204.17  administration of food stamp employment and training services to 
204.18  county agencies; 
204.19     (2) disburse money appropriated for food stamp employment 
204.20  and training services to county agencies based upon the county's 
204.21  costs as specified in section 256D.06; 
204.22     (3) accept and supervise the disbursement of any funds that 
204.23  may be provided by the federal government or from other sources 
204.24  for use in this state for food stamp employment and training 
204.25  services; and 
204.26     (4) cooperate with other agencies including any agency of 
204.27  the United States or of another state in all matters concerning 
204.28  the powers and duties of the commissioner under this section and 
204.29  section 256D.052; and 
204.30     (5) in cooperation with the commissioner of economic 
204.31  security, ensure that each component of an employment and 
204.32  training program carried out under this section is delivered 
204.33  through a statewide workforce development system, unless the 
204.34  component is not available locally through such a system. 
204.35     Sec. 38.  Minnesota Statutes 1996, section 256D.051, 
204.36  subdivision 3a, is amended to read: 
205.1      Subd. 3a.  [PERSONS REQUIRED TO REGISTER FOR AND 
205.2   PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 
205.3   (a) To the extent required under Code of Federal Regulations, 
205.4   title 7, section 273.7(a), each applicant for and recipient of 
205.5   food stamps is required to register for work as a condition of 
205.6   eligibility for food stamp benefits.  Applicants and recipients 
205.7   are registered by signing an application or annual reapplication 
205.8   for food stamps, and must be informed that they are registering 
205.9   for work by signing the form.  
205.10     (b) The commissioner shall determine, within federal 
205.11  requirements, persons required to participate in the food stamp 
205.12  employment and training (FSET) program. 
205.13     (c) The following food stamp recipients are exempt from 
205.14  mandatory participation in food stamp employment and training 
205.15  services: 
205.16     (1) recipients of benefits under the AFDC program, MFIP-S 
205.17  program, Minnesota supplemental aid program, or the general 
205.18  assistance program, except that an adult who receives general 
205.19  assistance under section 256D.05, subdivision 1, paragraph (b), 
205.20  is not exempt unless that person qualifies under one of the 
205.21  remaining exemption provisions in this paragraph; 
205.22     (2) a child; 
205.23     (3) a recipient over age 55; 
205.24     (4) a recipient who has a mental or physical illness, 
205.25  injury, or incapacity which is expected to continue for at least 
205.26  30 days and which impairs the recipient's ability to obtain or 
205.27  retain employment as evidenced by professional certification or 
205.28  the receipt of temporary or permanent disability benefits issued 
205.29  by a private or government source; 
205.30     (5) a parent or other household member responsible for the 
205.31  care of either a dependent child in the household who is under 
205.32  age six or a person in the household who is professionally 
205.33  certified as having a physical or mental illness, injury, or 
205.34  incapacity.  Only one parent or other household member may claim 
205.35  exemption under this provision; 
205.36     (6) a recipient receiving unemployment compensation or who 
206.1   has applied for unemployment compensation and has been required 
206.2   to register for work with the department of economic security as 
206.3   part of the unemployment compensation application process; 
206.4      (7) a recipient participating each week in a drug addiction 
206.5   or alcohol abuse treatment and rehabilitation program, provided 
206.6   the operators of the treatment and rehabilitation program, in 
206.7   consultation with the county agency, recommend that the 
206.8   recipient not participate in the food stamp employment and 
206.9   training program; 
206.10     (8) a recipient employed or self-employed for 30 or more 
206.11  hours per week at employment paying at least minimum wage, or 
206.12  who earns wages from employment equal to or exceeding 30 hours 
206.13  multiplied by the federal minimum wage; or 
206.14     (9) a student enrolled at least half time in any school, 
206.15  training program, or institution of higher education.  When 
206.16  determining if a student meets this criteria, the school's, 
206.17  program's or institution's criteria for being enrolled half time 
206.18  shall be used.; or 
206.19     (10) a recipient residing with and responsible for the care 
206.20  of a minor child. 
206.21     Sec. 39.  Minnesota Statutes 1996, section 256D.051, is 
206.22  amended by adding a subdivision to read: 
206.23     Subd. 18.  [WORK EXPERIENCE PLACEMENTS.] (a) To the extent 
206.24  of available resources, each county agency must establish and 
206.25  operate a work experience component in the food stamp employment 
206.26  and training program for recipients who are subject to a federal 
206.27  limit of three months of food stamp eligibility in any 36-month 
206.28  period.  The purpose of the work experience component is to 
206.29  enhance the participant's employability, self-sufficiency, and 
206.30  to provide meaningful, productive work activities. 
206.31     (b) The commissioner shall assist counties in the design 
206.32  and implementation of these components.  The commissioner must 
206.33  ensure that job placements under a work experience component 
206.34  comply with section 256J.72.  Written or oral concurrence with 
206.35  job duties of persons placed under the community work experience 
206.36  program shall be obtained from the appropriate exclusive 
207.1   bargaining representative. 
207.2      (c) Worksites developed under this section are limited to 
207.3   projects that serve a useful public service such as health, 
207.4   social service, environmental protection, education, urban and 
207.5   rural development and redevelopment, welfare, recreation, public 
207.6   facilities, public safety, community service, services to aged 
207.7   or disabled citizens, and child care.  To the extent possible, 
207.8   the prior training, skills, and experience of a recipient must 
207.9   be used in making appropriate work experience assignments. 
207.10     (d) Structured, supervised volunteer work with an agency or 
207.11  organization that is monitored by the county service provider 
207.12  may, with the approval of the county agency, be used as a work 
207.13  experience placement. 
207.14     (e) As a condition of placing a person receiving food 
207.15  stamps in a program under this subdivision, the county agency 
207.16  shall first provide the recipient the opportunity: 
207.17     (1) for placement in suitable subsidized or unsubsidized 
207.18  employment through participation in job search under section 
207.19  256D.051; or 
207.20     (2) for placement in suitable employment through 
207.21  participation in on-the-job training, if such employment is 
207.22  available. 
207.23     (f) The county agency shall limit the maximum monthly 
207.24  number of hours that any participant may work in a work 
207.25  experience placement to a number equal to the amount of the 
207.26  family's monthly food stamp allotment divided by the greater of 
207.27  the federal minimum wage or the applicable state minimum wage.  
207.28  After a participant has been assigned to a position for nine 
207.29  months, the participant may not continue in that assignment 
207.30  unless the maximum number of hours a participant works is no 
207.31  greater than the amount of the participant's food stamp 
207.32  allotment divided by the rate of pay for individuals employed in 
207.33  the same or similar occupations by the same employer at the same 
207.34  site. 
207.35     (g) The participant's employability development plan must 
207.36  include the length of time needed in the work experience 
208.1   program, the need to continue job seeking activities while 
208.2   participating in work experience, and the participant's 
208.3   employment goals. 
208.4      (h) After each six months of a recipient's participation in 
208.5   a work experience job placement, and at the conclusion of each 
208.6   work experience assignment under this section, the county agency 
208.7   shall reassess and revise, as appropriate, the participant's 
208.8   employability development plan. 
208.9      (i) A participant may claim good cause under section 
208.10  256J.57 for failure to cooperate with a work experience job 
208.11  placement.  
208.12     (j) A recipient who has failed without good cause to 
208.13  participate in or comply with the work experience job placement 
208.14  shall be terminated from participation in work experience job 
208.15  activities.  If the recipient is not exempt from mandatory food 
208.16  stamp employment and training program participation under 
208.17  section 256D.051, subdivision 3a, the recipient will be assigned 
208.18  to other mandatory program activities.  If the recipient is 
208.19  exempt from mandatory participation but is participating as a 
208.20  volunteer, the person shall be terminated from the food stamp 
208.21  employment and training program. 
208.22     Sec. 40.  [256D.0510] [FEDERAL WAIVER.] 
208.23     The commissioner of human services shall exercise the 
208.24  authority granted by Public Law Number 104-193, Title VIII, 
208.25  section 824, and request the secretary of the United States 
208.26  Department of Agriculture to grant waivers of the federal food 
208.27  stamp work requirements of section 824, for every county and 
208.28  reservation in which the county or reservation has an 
208.29  unemployment rate over ten percent. 
208.30     Sec. 41.  [256D.0512] [BUDGETING LUMP SUMS.] 
208.31     Nonrecurring lump-sum income received by a recipient of 
208.32  general assistance must be budgeted in the normal retrospective 
208.33  cycle. 
208.34     Sec. 42.  Minnesota Statutes 1996, section 256D.055, is 
208.35  amended to read: 
208.36     256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 
209.1      The commissioner of human services shall issue a request 
209.2   for proposals from counties to submit a plan for developing and 
209.3   implementing a county-designed program.  The plan shall be for 
209.4   first-time applicants for aid to families with dependent 
209.5   children (AFDC) and family general assistance (FGA) Minnesota 
209.6   family investment program-statewide (MFIP-S) and, until January 
209.7   1, 1998, aid to families with dependent children (AFDC) and 
209.8   family general assistance and must emphasize the importance of 
209.9   becoming employed and oriented into the work force in order to 
209.10  become self-sufficient.  The plan must target public assistance 
209.11  applicants who are most likely to become self-sufficient quickly 
209.12  with short-term assistance or services such as child care, child 
209.13  support enforcement, or employment and training services.  
209.14     The plan may include vendor payments, mandatory job search, 
209.15  refocusing existing county or provider efforts, or other program 
209.16  features.  The commissioner may approve a county plan which 
209.17  allows a county to use other program funding for the county work 
209.18  focus program in a more flexible manner.  Nothing in this 
209.19  section shall allow payments made to the public assistance 
209.20  applicant to be less than the amount the applicant would have 
209.21  received if the program had not been implemented, or reduce or 
209.22  eliminate a category of eligible participants from the program 
209.23  without legislative approval.  
209.24     The commissioner shall not approve a county plan that would 
209.25  have an adverse impact on the Minnesota family investment plan 
209.26  demonstration.  If the plan is approved by the commissioner, the 
209.27  county may implement the plan.  If the plan is approved by the 
209.28  commissioner, but a federal waiver is necessary to implement the 
209.29  plan, the commissioner shall apply for the necessary federal 
209.30  waivers.  
209.31     Sec. 43.  [256D.057] [SUPPLEMENT FOR CERTAIN DISABLED 
209.32  NONCITIZENS.] 
209.33     (a) For an assistance unit that contains an adult or a 
209.34  minor legal noncitizen who was residing in this state as of 
209.35  March 1, 1997, and lost eligibility for the federal Food Stamp 
209.36  and Supplemental Security Income programs under the provisions 
210.1   of title IV of Public Law Number 104-193, the amount of 
210.2   assistance that the unit is eligible for under section 256D.06 
210.3   shall be increased by an amount equal to the value of the food 
210.4   stamps that the assistance unit would have been eligible for if 
210.5   the noncitizen were a citizen, for each legal noncitizen, 
210.6   provided the legal adult noncitizen in the assistance unit is: 
210.7      (1) enrolled in a literacy class, English as a second 
210.8   language class, or a citizenship class; 
210.9      (2) applying for admission to a literacy class, English as 
210.10  a second language class, or a citizenship class, and is on a 
210.11  waiting list; 
210.12     (3) in the process of applying for a waiver from the 
210.13  Immigration and Naturalization Service of the English language 
210.14  or civics requirements of the citizenship test; 
210.15     (4) has submitted an application for citizenship to the 
210.16  Immigration and Naturalization Service and is waiting for a 
210.17  testing date or a subsequent swearing in ceremony; or 
210.18     (5) has been denied citizenship due to a failure to pass 
210.19  the test after two attempts or because of an inability to 
210.20  understand the rights and responsibilities of becoming a United 
210.21  States citizen, as documented by the Immigration and 
210.22  Naturalization Service or the county. 
210.23     (b) For the period from July 1, 1997, to February 28, 1998, 
210.24  an assistance unit shall receive a transitional amount of $100 
210.25  per month for each legal noncitizen who qualifies for assistance 
210.26  under paragraph (a). 
210.27     Section 37 is effective July 1, 1997. 
210.28     Sec. 44.  Minnesota Statutes 1996, section 256D.06, 
210.29  subdivision 2, is amended to read: 
210.30     Subd. 2.  Notwithstanding the provisions of subdivision 1, 
210.31  a grant of general assistance shall be made to an eligible 
210.32  individual, single adult, married couple, or family for an 
210.33  emergency need, as defined in rules promulgated by the 
210.34  commissioner, where the recipient requests temporary assistance 
210.35  not exceeding 30 days if an emergency situation appears to exist 
210.36  and (a) until January 1, 1998, the individual is ineligible for 
211.1   the program of emergency assistance under aid to families with 
211.2   dependent children and is not a recipient of aid to families 
211.3   with dependent children at the time of application hereunder; or 
211.4   (b) the individual or family is (i) ineligible for MFIP-S or is 
211.5   not a participant of MFIP-S; and (ii) is ineligible for 
211.6   emergency assistance under section 256J.48.  If an applicant or 
211.7   recipient relates facts to the county agency which may be 
211.8   sufficient to constitute an emergency situation, the county 
211.9   agency shall advise the person of the procedure for applying for 
211.10  assistance pursuant according to this subdivision.  
211.11     Sec. 45.  Minnesota Statutes 1996, section 256D.06, 
211.12  subdivision 5, is amended to read: 
211.13     Subd. 5.  Any applicant, otherwise eligible for general 
211.14  assistance and possibly eligible for maintenance benefits from 
211.15  any other source shall (a) make application for those benefits 
211.16  within 30 days of the general assistance application; and (b) 
211.17  execute an interim assistance authorization agreement on a form 
211.18  as directed by the commissioner.  If found eligible for benefits 
211.19  from other sources, and a payment received from another source 
211.20  relates to the period during which general assistance was also 
211.21  being received, the recipient shall be required to reimburse the 
211.22  county agency for the interim assistance paid.  Reimbursement 
211.23  shall not exceed the amount of general assistance paid during 
211.24  the time period to which the other maintenance benefits apply 
211.25  and shall not exceed the state standard applicable to that time 
211.26  period.  The commissioner shall adopt rules authorizing county 
211.27  agencies or other client representatives to retain from the 
211.28  amount recovered under an interim assistance agreement 25 
211.29  percent plus actual reasonable fees, costs, and disbursements of 
211.30  appeals and litigation, of providing special assistance to the 
211.31  recipient in processing the recipient's claim for maintenance 
211.32  benefits from another source.  The money retained under this 
211.33  section shall be from the state share of the recovery.  The 
211.34  commissioner or the county agency may contract with qualified 
211.35  persons to provide the special assistance.  The rules adopted by 
211.36  the commissioner shall include the methods by which county 
212.1   agencies shall identify, refer, and assist recipients who may be 
212.2   eligible for benefits under federal programs for the disabled.  
212.3   This subdivision does not require repayment of per diem payments 
212.4   made to shelters for battered women pursuant to section 256D.05, 
212.5   subdivision 3. 
212.6      Sec. 46.  [256D.066] [INTERSTATE PAYMENT STANDARDS.] 
212.7      (a) Effective July 1, 1997, the amount of assistance paid 
212.8   to an eligible assistance unit in which all members have resided 
212.9   in this state for less than 12 consecutive calendar months shall 
212.10  be the lesser of either the payment standard that would have 
212.11  been received by the assistance unit from the state of immediate 
212.12  prior residence, or the amount calculated in accordance with 
212.13  this chapter.  The lesser payment shall continue until the 
212.14  assistance unit meets the 12-month requirement.  Payment shall 
212.15  be calculated by applying this state's budgeting policies and 
212.16  the unit's net income shall be deducted from the payment 
212.17  standard in the other state or in this state, whichever is 
212.18  lower.  At county option, payment shall be made in vendor form 
212.19  for rent and utilities, up to the limit of the grant amount, and 
212.20  residual amounts, if any, shall be paid directly to the 
212.21  assistance unit. 
212.22     (b) During the first 12 months an assistance unit resides 
212.23  in this state, the number of months that the unit is eligible to 
212.24  receive general assistance benefits is limited to the number of 
212.25  months the unit would have been eligible to receive similar 
212.26  benefits in the state of immediate prior residence. 
212.27     (c) This policy applies whether or not the unit received 
212.28  similar benefits while residing in the state of previous 
212.29  residence. 
212.30     (d) When a unit moves to this state from another state 
212.31  where the unit has exhausted that state's time limit for 
212.32  receiving similar benefits, the unit will not be eligible to 
212.33  receive any general assistance benefits in this state for 12 
212.34  months from the date the unit moves here. 
212.35     (e) Applicants must provide verification of their state of 
212.36  immediate prior residence, in the form of tax statements, a 
213.1   driver's license, automobile registration, rent receipts, or 
213.2   other forms of verification approved by the commissioner. 
213.3      (f) For the purposes of this subdivision, "state of 
213.4   immediate prior residence" means: 
213.5      (i) the state in which the applicant declares the applicant 
213.6   spent the most time in the 30 days prior to moving to this 
213.7   state; or 
213.8      (ii) the applicant is in the migrant work stream and the 
213.9   applicant maintains a home in another state. 
213.10     Sec. 47.  Minnesota Statutes 1996, section 256D.08, 
213.11  subdivision 1, is amended to read: 
213.12     Subdivision 1.  In determining eligibility of a family, 
213.13  married couple, or individual there shall be excluded an 
213.14  assistance unit, the following resources shall be excluded: 
213.15     (1) real or personal property or liquid assets which do not 
213.16  exceed those permitted under the federally aided assistance 
213.17  program known as aid to families with dependent children $1,000; 
213.18  and 
213.19     (2) other property which has been determined, in accordance 
213.20  with and subject according to limitations contained in rules 
213.21  promulgated by the commissioner, to be essential to the family 
213.22  or individual the assistance unit as a means of self-support or 
213.23  self-care or which is producing income that is being used for 
213.24  the support of the individual or family assistance unit.  The 
213.25  commissioner shall further provide by rule the conditions for 
213.26  those situations in which property not excluded under this 
213.27  subdivision may be retained by the family or individual 
213.28  assistance unit where there is a reasonable probability that in 
213.29  the foreseeable future the property will be used for the 
213.30  self-support of the individual or family assistance unit; and 
213.31     (3) payments, made pursuant according to litigation and 
213.32  subsequent appropriation by the United States Congress, of funds 
213.33  to compensate members of Indian tribes for the taking of tribal 
213.34  land by the federal government. 
213.35     Sec. 48.  Minnesota Statutes 1996, section 256D.08, 
213.36  subdivision 2, is amended to read: 
214.1      Subd. 2.  Notwithstanding any other provision of sections 
214.2   256D.01 to 256D.21, the commissioner shall provide by rule for 
214.3   the exclusion of property from the determination of eligibility 
214.4   for general assistance when it appears likely that the need for 
214.5   general assistance will not exceed 30 days or an undue hardship 
214.6   would be imposed on an individual or family an assistance unit 
214.7   by the forced disposal of the property.  
214.8      Sec. 49.  Minnesota Statutes 1996, section 256D.09, is 
214.9   amended by adding a subdivision to read: 
214.10     Subd. 2b.  [DISABILITY VERIFICATION; DRUG OR ALCOHOL 
214.11  DEPENDENCY.] If at any time there is verification that the 
214.12  client's disability is dependent upon their continued drug 
214.13  addiction or alcoholism, general assistance for rent and 
214.14  utilities must be made in the form of vendor payments. 
214.15     Verification of drug addiction or alcoholism can be 
214.16  received from: 
214.17     (1) denial of social security benefits based on drug 
214.18  addiction or alcoholism; 
214.19     (2) a statement from the state medical review team that the 
214.20  person's disability is dependent upon continued drug addiction 
214.21  or alcoholism; or 
214.22     (3) a doctor's statement that the person's disability is 
214.23  dependent upon continued drug addiction or alcoholism. 
214.24     Sec. 50.  Minnesota Statutes 1996, section 256D.435, 
214.25  subdivision 3, is amended to read: 
214.26     Subd. 3.  [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 
214.27  Persons who live with the applicant or recipient, who have unmet 
214.28  needs and for whom the applicant or recipient has financial 
214.29  responsibility, must apply for and, if eligible, accept AFDC and 
214.30  other any federally funded benefits, including MFIP-S.  
214.31     Sec. 51.  Minnesota Statutes 1996, section 256D.44, 
214.32  subdivision 5, is amended to read: 
214.33     Subd. 5.  [SPECIAL NEEDS.] In addition to the state 
214.34  standards of assistance established in subdivisions 1 to 4, 
214.35  payments are allowed for the following special needs of 
214.36  recipients of Minnesota supplemental aid who are not residents 
215.1   of a nursing home, a regional treatment center, or a group 
215.2   residential housing facility:. 
215.3      (a) The county agency shall pay a monthly allowance for 
215.4   medically prescribed diets payable under the AFDC program or 
215.5   Minnesota family investment program-statewide if the cost of 
215.6   those additional dietary needs cannot be met through some other 
215.7   maintenance benefit.  
215.8      (b) Payment for nonrecurring special needs must be allowed 
215.9   for necessary home repairs or necessary repairs or replacement 
215.10  of household furniture and appliances using the payment standard 
215.11  of the AFDC program in effect on July 16, 1996, for these 
215.12  expenses, as long as other funding sources are not available.  
215.13     (c) A fee for guardian or conservator service is allowed at 
215.14  a reasonable rate negotiated by the county or approved by the 
215.15  court.  This rate shall not exceed five percent of the 
215.16  assistance unit's gross monthly income up to a maximum of $100 
215.17  per month.  If the guardian or conservator is a member of the 
215.18  county agency staff, no fee is allowed. 
215.19     (d) The county agency shall continue to pay a monthly 
215.20  allowance of $68 for restaurant meals for a person who was 
215.21  receiving a restaurant meal allowance on June 1, 1990, and who 
215.22  eats two or more meals in a restaurant daily.  The allowance 
215.23  must continue until the person has not received Minnesota 
215.24  supplemental aid for one full calendar month or until the 
215.25  person's living arrangement changes and the person no longer 
215.26  meets the criteria for the restaurant meal allowance, whichever 
215.27  occurs first. 
215.28     (e) A fee of ten percent of the recipient's gross income or 
215.29  $25, whichever is less, is allowed for representative payee 
215.30  services provided by an agency that meets the requirements under 
215.31  SSI regulations to charge a fee for representative payee 
215.32  services.  This special need is available to all recipients of 
215.33  Minnesota supplemental aid regardless of their living 
215.34  arrangement. 
215.35     Sec. 52.  Minnesota Statutes 1996, section 259.67, 
215.36  subdivision 4, is amended to read: 
216.1      Subd. 4.  [ELIGIBILITY CONDITIONS.] (a) The placing agency 
216.2   shall determine use the AFDC requirements as specified in 
216.3   federal law, when determining the child's eligibility for 
216.4   adoption assistance under title IV-E of the Social Security 
216.5   Act.  If the child does not qualify, the placing agency shall 
216.6   certify a child as eligible for state funded adoption assistance 
216.7   only if the following criteria are met:  
216.8      (1) Due to the child's characteristics or circumstances it 
216.9   would be difficult to provide the child an adoptive home without 
216.10  adoption assistance.  
216.11     (2)(i) A placement agency has made reasonable efforts to 
216.12  place the child for adoption without adoption assistance, but 
216.13  has been unsuccessful; or 
216.14     (ii) the child's licensed foster parents desire to adopt 
216.15  the child and it is determined by the placing agency that the 
216.16  adoption is in the best interest of the child. 
216.17     (3) The child has been a ward of the commissioner or a 
216.18  Minnesota-licensed child-placing agency.  
216.19     (b) For purposes of this subdivision, the characteristics 
216.20  or circumstances that may be considered in determining whether a 
216.21  child is a child with special needs under United States Code, 
216.22  title 42, chapter 7, subchapter IV, part E, or meets the 
216.23  requirements of paragraph (a), clause (1), are the following: 
216.24     (1) The child is a member of a sibling group to be placed 
216.25  as one unit in which at least one sibling is older than 15 
216.26  months of age or is described in clause (2) or (3). 
216.27     (2) The child has documented physical, mental, emotional, 
216.28  or behavioral disabilities. 
216.29     (3) The child has a high risk of developing physical, 
216.30  mental, emotional, or behavioral disabilities. 
216.31     (c) When a child's eligibility for adoption assistance is 
216.32  based upon the high risk of developing physical, mental, 
216.33  emotional, or behavioral disabilities, payments shall not be 
216.34  made under the adoption assistance agreement unless and until 
216.35  the potential disability manifests itself as documented by an 
216.36  appropriate health care professional. 
217.1      Sec. 53.  Minnesota Statutes 1996, section 261.063, is 
217.2   amended to read: 
217.3      261.063 [TAX LEVY FOR SOCIAL SECURITY MEASURES; DUTIES OF 
217.4   COUNTY BOARD.] 
217.5      The board of county commissioners of each county shall may 
217.6   annually levy taxes and fix a rate sufficient to produce the 
217.7   full an amount required for poor relief, general assistance, aid 
217.8   to dependent children, county share of county and state 
217.9   supplemental aid to supplemental security income applicants or 
217.10  recipients, and any other social security measures wherein there 
217.11  is now or may hereafter be county participation, sufficient to 
217.12  produce the full amount necessary for each such item, including 
217.13  administrative expenses, for the ensuing year, within the time 
217.14  fixed by law in addition to all other tax levies and tax rates, 
217.15  however fixed or determined, and any commissioner who shall fail 
217.16  to comply herewith shall be guilty of a gross misdemeanor and 
217.17  shall be immediately removed from office by the governor.  
217.18     Sec. 54.  [REPAYMENT OF PUBLIC ASSISTANCE.] 
217.19     (a) A participant who has received state-funded public 
217.20  assistance must pay back the amount of public assistance 
217.21  received if the participant: 
217.22     (1) achieves self-sufficiency by accepting a job offer 
217.23  which provides net income in excess of 500 percent of the 
217.24  poverty level, as defined by federal law; or 
217.25     (2) receives net income in excess of 500 percent of the 
217.26  poverty level, as defined under federal law. 
217.27     (b) If a participant is required to repay public assistance 
217.28  under paragraph (a), the participant must pay back the state 
217.29  portion of the public assistance received at a rate of 25 
217.30  percent of the net income in excess of 500 percent of the 
217.31  poverty level until the full amount received has been repaid. 
217.32     Sec. 55.  [TRANSFER OF RESPONSIBILITIES FOR PROVIDING 
217.33  SECURE CRISIS SHELTER.] 
217.34     All of the powers, duties, and functions of the 
217.35  commissioner of human services relating to the operation and 
217.36  funding of shelters for battered women are transferred to the 
218.1   commissioner of corrections in accordance with Minnesota 
218.2   Statutes, section 15.039, except for personnel transfers under 
218.3   section 15.039, subdivision 7. 
218.4      Sec. 56.  [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 
218.5      The legislature makes the following findings: 
218.6      (a) The legislature is statutorily required to balance the 
218.7   state budget. 
218.8      (b) The task of balancing the state budget is made 
218.9   difficult in the area of the new federal welfare reform program 
218.10  for the needy due to the dramatic change in program design that 
218.11  this state and all other states must experience, rendering 
218.12  historical data on client behavior, interstate migration, and 
218.13  welfare spending patterns of dubious value. 
218.14     (c) Many states have more restrictive or nonexistent state 
218.15  welfare programs to aid needy individuals without children. 
218.16     (d) Within the state's limited resources, the legislature 
218.17  wishes to manage funds appropriated under this part to best 
218.18  provide for needy Minnesotans. 
218.19     (e) To that end, the legislature has adopted a policy in 
218.20  Minnesota Statutes, section 256D.066, of providing households of 
218.21  needy individuals or couples without children in which no 
218.22  mandatory member has resided in Minnesota for the previous 12 
218.23  months a benefit based on the grant the household would have 
218.24  received had it applied for benefits in its previous state of 
218.25  residence. 
218.26     (f) Therefore, if the policy designed to make welfare 
218.27  benefits a neutral factor in the decision to move to Minnesota 
218.28  and to best manage the benefit appropriation for needy 
218.29  Minnesotans, while providing a safety net for recent interstate 
218.30  migrants, is enjoined or otherwise prevented from being 
218.31  implemented, the commissioner shall continue to require that 
218.32  applicants meet the simple residency requirement of presence in 
218.33  the state with the intent to make a permanent home here, and 
218.34  shall ratably reduce the benefit standards for all assistance 
218.35  units, from the standards in Minnesota Statutes, section 
218.36  256D.01, but only in an amount sufficient to remain within the 
219.1   forecasted budgets for those programs. In the event the 
219.2   commissioner is required to ratably reduce benefits under this 
219.3   section, the commissioner shall notify the fiscal and policy 
219.4   chairs of the house and senate human services committees that 
219.5   the reductions have taken place and shall formulate a plan to be 
219.6   presented to the next legislative session. 
219.7      At county option, these benefits shall be paid in vendor 
219.8   form for rent and utilities, up to the limit of the grant 
219.9   amount.  The residual amount, if any, shall be paid directly to 
219.10  the assistance unit. 
219.11     Sec. 57.  [TOTAL HOUSEHOLD INCOME COUNTED.] 
219.12     Notwithstanding any provision of law to the contrary, 
219.13  eligibility for public assistance, including, but not limited 
219.14  to, AFDC, family general assistance, MFIP and MFIP-S, and 
219.15  general assistance must count income from all unrelated 
219.16  individuals living in the household in order to qualify for any 
219.17  of these public assistance programs. 
219.18     Sec. 58.  [REPEALER.] 
219.19     Minnesota Statutes 1996, sections 256.8711; 256D.02, 
219.20  subdivision 5; 256D.0511; 256D.065; and 261.062 are repealed. 
219.21     Sec. 59.  [EFFECTIVE DATES.] 
219.22     Sections 23 and 24 are effective January 1, 1998. 
219.23                             ARTICLE 4
219.24                TECHNICAL CHANGES; CROSS REFERENCES 
219.25     Section 1.  Minnesota Statutes 1996, section 13.46, 
219.26  subdivision 1, is amended to read: 
219.27     Subdivision 1.  [DEFINITIONS.] As used in this section: 
219.28     (a) "Individual" means an individual pursuant according to 
219.29  section 13.02, subdivision 8, but does not include a vendor of 
219.30  services. 
219.31     (b) "Program" includes all programs for which authority is 
219.32  vested in a component of the welfare system pursuant according 
219.33  to statute or federal law, including, but not limited to, aid to 
219.34  families with dependent children, Minnesota family investment 
219.35  program-statewide, medical assistance, general assistance, work 
219.36  readiness, general assistance medical care, and child support 
220.1   collections.  
220.2      (c) "Welfare system" includes the department of human 
220.3   services, local social services agencies, county welfare 
220.4   agencies, the public authority responsible for child support 
220.5   enforcement, human services boards, community mental health 
220.6   center boards, state hospitals, state nursing homes, the 
220.7   ombudsman for mental health and mental retardation, and persons, 
220.8   agencies, institutions, organizations, and other entities under 
220.9   contract to any of the above agencies to the extent specified in 
220.10  the contract. 
220.11     (d) "Mental health data" means data on individual clients 
220.12  and patients of community mental health centers, established 
220.13  under section 245.62, mental health divisions of counties and 
220.14  other providers under contract to deliver mental health 
220.15  services, or the ombudsman for mental health and mental 
220.16  retardation. 
220.17     (e) "Fugitive felon" means a person who has been convicted 
220.18  of a felony and who has escaped from confinement or violated the 
220.19  terms of probation or parole for that offense. 
220.20     Sec. 2.  Minnesota Statutes 1996, section 13.46, 
220.21  subdivision 2, is amended to read: 
220.22     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
220.23  a statute specifically provides a different classification, data 
220.24  on individuals collected, maintained, used, or disseminated by 
220.25  the welfare system is private data on individuals, and shall not 
220.26  be disclosed except:  
220.27     (1) pursuant according to section 13.05; 
220.28     (2) pursuant according to court order; 
220.29     (3) pursuant according to a statute specifically 
220.30  authorizing access to the private data; 
220.31     (4) to an agent of the welfare system, including a law 
220.32  enforcement person, attorney, or investigator acting for it in 
220.33  the investigation or prosecution of a criminal or civil 
220.34  proceeding relating to the administration of a program; 
220.35     (5) to personnel of the welfare system who require the data 
220.36  to determine eligibility, amount of assistance, and the need to 
221.1   provide services of additional programs to the individual; 
221.2      (6) to administer federal funds or programs; 
221.3      (7) between personnel of the welfare system working in the 
221.4   same program; 
221.5      (8) the amounts of cash public assistance and relief paid 
221.6   to welfare recipients in this state, including their names, 
221.7   social security numbers, income, addresses, and other data as 
221.8   required, upon request by the department of revenue to 
221.9   administer the property tax refund law, supplemental housing 
221.10  allowance, early refund of refundable tax credits, and the 
221.11  income tax.  "Refundable tax credits" means the dependent care 
221.12  credit under section 290.067, the Minnesota working family 
221.13  credit under section 290.0671, the property tax refund under 
221.14  section 290A.04, and, if the required federal waiver or waivers 
221.15  are granted, the federal earned income tax credit under section 
221.16  32 of the Internal Revenue Code; 
221.17     (9) to the Minnesota department of economic security for 
221.18  the purpose of monitoring the eligibility of the data subject 
221.19  for reemployment insurance, for any employment or training 
221.20  program administered, supervised, or certified by that agency, 
221.21  or for the purpose of administering any rehabilitation program, 
221.22  whether alone or in conjunction with the welfare system, and to 
221.23  verify receipt of energy assistance for the telephone assistance 
221.24  plan; 
221.25     (10) to appropriate parties in connection with an emergency 
221.26  if knowledge of the information is necessary to protect the 
221.27  health or safety of the individual or other individuals or 
221.28  persons; 
221.29     (11) data maintained by residential programs as defined in 
221.30  section 245A.02 may be disclosed to the protection and advocacy 
221.31  system established in this state pursuant according to Part C of 
221.32  Public Law Number 98-527 to protect the legal and human rights 
221.33  of persons with mental retardation or other related conditions 
221.34  who live in residential facilities for these persons if the 
221.35  protection and advocacy system receives a complaint by or on 
221.36  behalf of that person and the person does not have a legal 
222.1   guardian or the state or a designee of the state is the legal 
222.2   guardian of the person; 
222.3      (12) to the county medical examiner or the county coroner 
222.4   for identifying or locating relatives or friends of a deceased 
222.5   person; 
222.6      (13) data on a child support obligor who makes payments to 
222.7   the public agency may be disclosed to the higher education 
222.8   services office to the extent necessary to determine eligibility 
222.9   under section 136A.121, subdivision 2, clause (5); 
222.10     (14) participant social security numbers and names 
222.11  collected by the telephone assistance program may be disclosed 
222.12  to the department of revenue to conduct an electronic data match 
222.13  with the property tax refund database to determine eligibility 
222.14  under section 237.70, subdivision 4a; 
222.15     (15) the current address of a recipient of aid to families 
222.16  with dependent children or Minnesota family investment 
222.17  program-statewide may be disclosed to law enforcement officers 
222.18  who provide the name and social security number of the recipient 
222.19  and satisfactorily demonstrate that:  (i) the recipient is a 
222.20  fugitive felon, including the grounds for this determination; 
222.21  (ii) the location or apprehension of the felon is within the law 
222.22  enforcement officer's official duties; and (iii) the request is 
222.23  made in writing and in the proper exercise of those duties; 
222.24     (16) the current address of a recipient of general 
222.25  assistance, work readiness, or general assistance medical care 
222.26  may be disclosed to probation officers and corrections agents 
222.27  who are supervising the recipient, and to law enforcement 
222.28  officers who are investigating the recipient in connection with 
222.29  a felony level offense; 
222.30     (17) information obtained from food stamp applicant or 
222.31  recipient households may be disclosed to local, state, or 
222.32  federal law enforcement officials, upon their written request, 
222.33  for the purpose of investigating an alleged violation of the 
222.34  food stamp act, in accordance with according to Code of Federal 
222.35  Regulations, title 7, section 272.1(c); 
222.36     (18) data on a child support obligor who is in arrears may 
223.1   be disclosed for purposes of publishing the data pursuant 
223.2   according to section 518.575; 
223.3      (19) data on child support payments made by a child support 
223.4   obligor may be disclosed to the obligee; 
223.5      (20) data in the work reporting system may be disclosed 
223.6   under section 256.998, subdivision 7; 
223.7      (21) to the department of children, families, and learning 
223.8   for the purpose of matching department of children, families, 
223.9   and learning student data with public assistance data to 
223.10  determine students eligible for free and reduced price meals, 
223.11  meal supplements, and free milk pursuant according to United 
223.12  States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
223.13  and 1773; to produce accurate numbers of students receiving aid 
223.14  to families with dependent children or Minnesota family 
223.15  investment program-statewide as required by section 124.175; and 
223.16  to allocate federal and state funds that are distributed based 
223.17  on income of the student's family; or 
223.18     (22) the current address and telephone number of program 
223.19  recipients and emergency contacts may be released to the 
223.20  commissioner of health or a local board of health as defined in 
223.21  section 145A.02, subdivision 2, when the commissioner or local 
223.22  board of health has reason to believe that a program recipient 
223.23  is a disease case, carrier, suspect case, or at risk of illness, 
223.24  and the data are necessary to locate the person. 
223.25     (b) Information on persons who have been treated for drug 
223.26  or alcohol abuse may only be disclosed in accordance with 
223.27  according to the requirements of Code of Federal Regulations, 
223.28  title 42, sections 2.1 to 2.67. 
223.29     (c) Data provided to law enforcement agencies under 
223.30  paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
223.31  investigative data and are confidential or protected nonpublic 
223.32  while the investigation is active.  The data are private after 
223.33  the investigation becomes inactive under section 13.82, 
223.34  subdivision 5, paragraph (a) or (b). 
223.35     (d) Mental health data shall be treated as provided in 
223.36  subdivisions 7, 8, and 9, but is not subject to the access 
224.1   provisions of subdivision 10, paragraph (b). 
224.2      Sec. 3.  Minnesota Statutes 1996, section 84.98, 
224.3   subdivision 3, is amended to read: 
224.4      Subd. 3.  [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 
224.5   PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 
224.6   determining economic, social, physical, or educational 
224.7   disadvantage shall be determined as provided in this subdivision.
224.8      (b) Economically disadvantaged are persons who meet the 
224.9   criteria for disadvantaged established by the department of 
224.10  economic security or persons receiving services provided by the 
224.11  department of human services such as welfare payments, food 
224.12  stamps, and aid to families with dependent children or Minnesota 
224.13  family investment program-statewide.  
224.14     (c) Socially disadvantaged are persons who have been 
224.15  classified as persons in need of supervision by the court system.
224.16     (d) Physically disadvantaged are persons who have been 
224.17  identified as having special needs by public agencies that deal 
224.18  with employment for the disabled. 
224.19     (e) Educationally disadvantaged are persons who have 
224.20  dropped out of school or are at risk of dropping out of school 
224.21  and persons with learning disabilities or in need of special 
224.22  education classes.  
224.23     Sec. 4.  Minnesota Statutes 1996, section 136A.125, 
224.24  subdivision 2, is amended to read: 
224.25     Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
224.26  a child care grant if the applicant: 
224.27     (1) is a resident of the state of Minnesota; 
224.28     (2) has a child 12 years of age or younger, or 14 years of 
224.29  age or younger who is handicapped as defined in section 120.03, 
224.30  and who is receiving or will receive care on a regular basis 
224.31  from a licensed or legal, nonlicensed caregiver; 
224.32     (3) is income eligible as determined by the office's 
224.33  policies and rules, but is not a recipient of assistance from 
224.34  either aid to families with dependent children or Minnesota 
224.35  family investment program-statewide; 
224.36     (4) has not earned a baccalaureate degree and has been 
225.1   enrolled full time less than eight semesters, 12 quarters, or 
225.2   the equivalent; 
225.3      (5) is pursuing a nonsectarian program or course of study 
225.4   that applies to an undergraduate degree, diploma, or 
225.5   certificate; 
225.6      (6) is enrolled at least half time in an eligible 
225.7   institution; and 
225.8      (7) is in good academic standing and making satisfactory 
225.9   academic progress. 
225.10     Sec. 5.  Minnesota Statutes 1996, section 196.27, is 
225.11  amended to read: 
225.12     196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 
225.13     (a) Payments received by veterans or their dependents 
225.14  because of settlements between them and the manufacturers of 
225.15  Agent Orange or other chemical agents, as defined in section 
225.16  196.21, must not be treated as income (or an available resource) 
225.17  of the veterans or their dependents for the purposes of any 
225.18  program of public assistance or benefit program administered by 
225.19  the department of veterans affairs, the department of human 
225.20  services, or other agencies of the state or political 
225.21  subdivisions of the state, except as provided in paragraph (b). 
225.22     (b) The income and resource exclusion in paragraph (a) does 
225.23  not apply to the medical assistance, food stamps, or aid to 
225.24  families with dependent children or Minnesota family investment 
225.25  program-statewide programs until the commissioner of human 
225.26  services receives formal approval from the United States 
225.27  Department of Health and Human Services, for the medical 
225.28  assistance and, aid to families with dependent children or 
225.29  Minnesota family investment program-statewide programs, and from 
225.30  the United States Department of Agriculture, for the food stamps 
225.31  program.  The income exclusion does not apply to the Minnesota 
225.32  supplemental aid program until the commissioner receives formal 
225.33  federal approval of the exclusion for the medical assistance 
225.34  program. 
225.35     Sec. 6.  Minnesota Statutes 1996, section 237.70, 
225.36  subdivision 4a, is amended to read: 
226.1      Subd. 4a.  [HOUSEHOLDS ELIGIBLE FOR CREDITS.] The telephone 
226.2   assistance plan must provide telephone assistance credit for a 
226.3   residential household in Minnesota that meets each of the 
226.4   following criteria: 
226.5      (1) has a household member who: 
226.6      (i) subscribes to local exchange service; and 
226.7      (ii) is either disabled or 65 years of age or older; 
226.8      (2) whose household income is 150 percent or less of 
226.9   federal poverty guidelines or is currently eligible for: 
226.10     (i) aid to families with dependent children or Minnesota 
226.11  family investment program-statewide; 
226.12     (ii) medical assistance; 
226.13     (iii) general assistance; 
226.14     (iv) Minnesota supplemental aid; 
226.15     (v) food stamps; 
226.16     (vi) refugee cash assistance or refugee medical assistance; 
226.17     (vii) energy assistance; or 
226.18     (viii) supplemental security income; and 
226.19     (3) who has been certified as eligible for telephone 
226.20  assistance plan credits. 
226.21     Sec. 7.  Minnesota Statutes 1996, section 254B.02, 
226.22  subdivision 1, is amended to read: 
226.23     Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
226.24  The chemical dependency funds appropriated for allocation shall 
226.25  be placed in a special revenue account.  For the fiscal year 
226.26  beginning July 1, 1987, funds shall be transferred to operate 
226.27  the vendor payment, invoice processing, and collections system 
226.28  for one year.  The commissioner shall annually transfer funds 
226.29  from the chemical dependency fund to pay for operation of the 
226.30  drug and alcohol abuse normative evaluation system and to pay 
226.31  for all costs incurred by adding two positions for licensing of 
226.32  chemical dependency treatment and rehabilitation programs 
226.33  located in hospitals for which funds are not otherwise 
226.34  appropriated.  The commissioner shall annually divide the money 
226.35  available in the chemical dependency fund that is not held in 
226.36  reserve by counties from a previous allocation.  Twelve percent 
227.1   of the remaining money must be reserved for treatment of 
227.2   American Indians by eligible vendors under section 254B.05.  The 
227.3   remainder of the money must be allocated among the counties 
227.4   according to the following formula, using state demographer data 
227.5   and other data sources determined by the commissioner: 
227.6      (a) For purposes of this formula, American Indians and 
227.7   children under age 14 are subtracted from the population of each 
227.8   county to determine the restricted population. 
227.9      (b) The amount of chemical dependency fund expenditures for 
227.10  entitled persons for services not covered by prepaid plans 
227.11  governed by section 256B.69 in the previous year is divided by 
227.12  the amount of chemical dependency fund expenditures for entitled 
227.13  persons for all services to determine the proportion of exempt 
227.14  service expenditures for each county. 
227.15     (c) The prepaid plan months of eligibility is multiplied by 
227.16  the proportion of exempt service expenditures to determine the 
227.17  adjusted prepaid plan months of eligibility for each county. 
227.18     (d) The adjusted prepaid plan months of eligibility is 
227.19  added to the number of restricted population fee for service 
227.20  months of eligibility for aid to families with dependent 
227.21  children, Minnesota family investment program-statewide, general 
227.22  assistance, and medical assistance and divided by the county 
227.23  restricted population to determine county per capita months of 
227.24  covered service eligibility. 
227.25     (e) The number of adjusted prepaid plan months of 
227.26  eligibility for the state is added to the number of fee for 
227.27  service months of eligibility for aid to families with dependent 
227.28  children, Minnesota family investment program-statewide, general 
227.29  assistance, and medical assistance for the state restricted 
227.30  population and divided by the state restricted population to 
227.31  determine state per capita months of covered service eligibility.
227.32     (f) The county per capita months of covered service 
227.33  eligibility is divided by the state per capita months of covered 
227.34  service eligibility to determine the county welfare caseload 
227.35  factor. 
227.36     (g) The median married couple income for the most recent 
228.1   three-year period available for the state is divided by the 
228.2   median married couple income for the same period for each county 
228.3   to determine the income factor for each county. 
228.4      (h) The county restricted population is multiplied by the 
228.5   sum of the county welfare caseload factor and the county income 
228.6   factor to determine the adjusted population. 
228.7      (i) $15,000 shall be allocated to each county.  
228.8      (j) The remaining funds shall be allocated proportional to 
228.9   the county adjusted population. 
228.10     Sec. 8.  Minnesota Statutes 1996, section 256.01, 
228.11  subdivision 4a, is amended to read: 
228.12     Subd. 4a.  [TECHNICAL ASSISTANCE FOR IMMUNIZATION 
228.13  REMINDERS.] The state agency shall provide appropriate technical 
228.14  assistance to county agencies to develop methods to have county 
228.15  financial workers remind and encourage recipients of aid to 
228.16  families with dependent children, Minnesota family investment 
228.17  program-statewide, the Minnesota family investment plan, medical 
228.18  assistance, family general assistance, or food stamps whose 
228.19  assistance unit includes at least one child under the age of 
228.20  five to have each young child immunized against childhood 
228.21  diseases.  The state agency must examine the feasibility of 
228.22  utilizing the capacity of a statewide computer system to assist 
228.23  county agency financial workers in performing this function at 
228.24  appropriate intervals. 
228.25     Sec. 9.  Minnesota Statutes 1996, section 256.017, 
228.26  subdivision 1, is amended to read: 
228.27     Subdivision 1.  [AUTHORITY AND PURPOSE.] The commissioner 
228.28  shall administer a compliance system for aid to families with 
228.29  dependent children, Minnesota family investment 
228.30  program-statewide, the food stamp program, emergency assistance, 
228.31  general assistance, work readiness, medical assistance, general 
228.32  assistance medical care, emergency general assistance, Minnesota 
228.33  supplemental assistance, preadmission screening, and alternative 
228.34  care grants under the powers and authorities named in section 
228.35  256.01, subdivision 2.  The purpose of the compliance system is 
228.36  to permit the commissioner to supervise the administration of 
229.1   public assistance programs and to enforce timely and accurate 
229.2   distribution of benefits, completeness of service and efficient 
229.3   and effective program management and operations, to increase 
229.4   uniformity and consistency in the administration and delivery of 
229.5   public assistance programs throughout the state, and to reduce 
229.6   the possibility of sanctions and fiscal disallowances for 
229.7   noncompliance with federal regulations and state statutes. 
229.8      The commissioner shall utilize training, technical 
229.9   assistance, and monitoring activities, as specified in section 
229.10  256.01, subdivision 2, to encourage county agency compliance 
229.11  with written policies and procedures. 
229.12     Sec. 10.  Minnesota Statutes 1996, section 256.017, 
229.13  subdivision 4, is amended to read: 
229.14     Subd. 4.  [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 
229.15  CASE PENALTY.] (a) The amount of the quality control case 
229.16  penalty is limited to the amount of the dollar error for the 
229.17  quality control sample month in a reviewed case as determined by 
229.18  the state quality control review procedures for the aid to 
229.19  families with dependent children, Minnesota family investment 
229.20  program-statewide and food stamp programs or for any other 
229.21  income transfer program for which the commissioner develops a 
229.22  quality control program. 
229.23     (b) Payment errors in medical assistance or any other 
229.24  medical services program for which the department develops a 
229.25  quality control program are subject to set rate penalties based 
229.26  on the average cost of the specific quality control error 
229.27  element for a sample review month for that household size and 
229.28  status of institutionalization and as determined from state 
229.29  quality control data in the preceding fiscal year for the 
229.30  corresponding program. 
229.31     (c) Errors identified in negative action cases, such as 
229.32  incorrect terminations or denials of assistance are subject to 
229.33  set rate penalties based on the average benefit cost of that 
229.34  household size as determined from state quality control data in 
229.35  the preceding fiscal year for the corresponding program. 
229.36     Sec. 11.  Minnesota Statutes 1996, section 256.031, 
230.1   subdivision 5, is amended to read: 
230.2      Subd. 5.  [FEDERAL WAIVERS.] In accordance with According 
230.3   to sections 256.031 to 256.0361 and federal laws authorizing the 
230.4   program, the commissioner shall seek waivers of federal 
230.5   requirements of:  United States Code, title 42, section 601 et 
230.6   seq., and United States Code, title 7, section 2011 et seq., 
230.7   needed to implement the Minnesota family investment plan in a 
230.8   manner consistent with the goals and objectives of the program.  
230.9   The commissioner shall seek terms from the federal government 
230.10  that are consistent with the goals of the Minnesota family 
230.11  investment plan.  The commissioner shall also seek terms from 
230.12  the federal government that will maximize federal financial 
230.13  participation so that the extra costs to the state of 
230.14  implementing the program are minimized, to the extent that those 
230.15  terms are consistent with the goals of the Minnesota family 
230.16  investment plan.  An agreement with the federal government under 
230.17  this section shall provide that the agreements may be canceled 
230.18  by the state or federal government upon 180 days' notice or 
230.19  immediately upon mutual agreement.  If the agreement is 
230.20  canceled, families which cease receiving assistance under the 
230.21  Minnesota family investment plan who are eligible for the aid to 
230.22  families with dependent children, Minnesota family investment 
230.23  program-statewide, general assistance, medical assistance, 
230.24  general assistance medical care, or the food stamp program must 
230.25  be placed with their consent on the programs for which they are 
230.26  eligible. 
230.27     Sec. 12.  Minnesota Statutes 1996, section 256.046, 
230.28  subdivision 1, is amended to read: 
230.29     Subdivision 1.  [HEARING AUTHORITY.] A local agency may 
230.30  initiate an administrative fraud disqualification hearing for 
230.31  individuals accused of wrongfully obtaining assistance or 
230.32  intentional program violations in the aid to families with 
230.33  dependent children, Minnesota family investment 
230.34  program-statewide or food stamp programs.  The hearing is 
230.35  subject to the requirements of section 256.045 and the 
230.36  requirements in Code of Federal Regulations, title 7, section 
231.1   273.16, for the food stamp program and title 45, section 
231.2   235.112, for the aid to families with dependent children program.
231.3      Sec. 13.  Minnesota Statutes 1996, section 256.935, 
231.4   subdivision 1, is amended to read: 
231.5      Subdivision 1.  On the death of any person receiving public 
231.6   assistance through aid to dependent children or MFIP-S, the 
231.7   county agency shall pay an amount for funeral expenses not 
231.8   exceeding the amount paid for comparable services under section 
231.9   261.035 plus actual cemetery charges.  No funeral expenses shall 
231.10  be paid if the estate of the deceased is sufficient to pay such 
231.11  expenses or if the spouse, who was legally responsible for the 
231.12  support of the deceased while living, is able to pay such 
231.13  expenses; provided, that the additional payment or donation of 
231.14  the cost of cemetery lot, interment, religious service, or for 
231.15  the transportation of the body into or out of the community in 
231.16  which the deceased resided, shall not limit payment by the 
231.17  county agency as herein authorized.  Freedom of choice in the 
231.18  selection of a funeral director shall be granted to persons 
231.19  lawfully authorized to make arrangements for the burial of any 
231.20  such deceased recipient.  In determining the sufficiency of such 
231.21  estate, due regard shall be had for the nature and marketability 
231.22  of the assets of the estate.  The county agency may grant 
231.23  funeral expenses where the sale would cause undue loss to the 
231.24  estate.  Any amount paid for funeral expenses shall be a prior 
231.25  claim against the estate, as provided in section 524.3-805, and 
231.26  any amount recovered shall be reimbursed to the agency which 
231.27  paid the expenses.  The commissioner shall specify requirements 
231.28  for reports, including fiscal reports, according to section 
231.29  256.01, subdivision 2, paragraph (17).  The state share of 
231.30  county agency expenditures shall be 50 percent and the county 
231.31  share shall be 50 percent.  Benefits shall be issued to 
231.32  recipients by the state or county and funded according to 
231.33  section 256.025, subdivision 3, subject to provisions of section 
231.34  256.017. 
231.35     Beginning July 1, 1991, the state will reimburse counties 
231.36  according to the payment schedule set forth in section 256.025 
232.1   for the county share of county agency expenditures made under 
232.2   this subdivision from January 1, 1991, on.  Payment under this 
232.3   subdivision is subject to the provisions of section 256.017. 
232.4      Sec. 14.  Minnesota Statutes 1996, section 256.981, is 
232.5   amended to read: 
232.6      256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 
232.7      The commissioner of human services shall, to the extent an 
232.8   appropriation is provided for this purpose, contract with the 
232.9   county attorney's council or other public or private entity 
232.10  experienced in providing training for prosecutors to conduct 
232.11  quarterly workshops and seminars focusing on current aid to 
232.12  families with dependent children and Minnesota family investment 
232.13  program-statewide program issues, other income maintenance 
232.14  program changes, recovery issues, alternative sentencing 
232.15  methods, use of technical aids for interviews and 
232.16  interrogations, and other matters affecting prosecution of 
232.17  welfare fraud cases. 
232.18     Sec. 15.  Minnesota Statutes 1996, section 256.9850, is 
232.19  amended to read: 
232.20     256.9850 [IDENTITY VERIFICATION.] 
232.21     The commissioner of human services shall seek from the 
232.22  Secretary of Health and Human Services all necessary waivers of 
232.23  the requirements of the program of AFDC or Minnesota family 
232.24  investment program-statewide, to enable the commissioner to 
232.25  establish a statewide program to test the effectiveness of 
232.26  identity verification systems in the electronic benefit transfer 
232.27  systems in the state AFDC program or Minnesota family investment 
232.28  program-statewide.  Identity verification provisions shall be 
232.29  added to the statewide requests for proposal on the expansion of 
232.30  electronic benefit transfer systems in the AFDC program or 
232.31  Minnesota family investment program-statewide. 
232.32     Sec. 16.  Minnesota Statutes 1996, section 256E.03, 
232.33  subdivision 2, is amended to read: 
232.34     Subd. 2.  (a) "Community social services" means services 
232.35  provided or arranged for by county boards to fulfill the 
232.36  responsibilities prescribed in section 256E.08, subdivision 1, 
233.1   to the following groups of persons: 
233.2      (1) families with children under age 18, who are 
233.3   experiencing child dependency, neglect or abuse, and also 
233.4   pregnant adolescents, adolescent parents under the age of 18, 
233.5   and their children; 
233.6      (2) persons who are under the guardianship of the 
233.7   commissioner of human services as dependent and neglected wards; 
233.8      (3) adults who are in need of protection and vulnerable as 
233.9   defined in section 626.5572; 
233.10     (4) persons age 60 and over who are experiencing difficulty 
233.11  living independently and are unable to provide for their own 
233.12  needs; 
233.13     (5) emotionally disturbed children and adolescents, 
233.14  chronically and acutely mentally ill persons who are unable to 
233.15  provide for their own needs or to independently engage in 
233.16  ordinary community activities; 
233.17     (6) persons with mental retardation as defined in section 
233.18  252A.02, subdivision 2, or with related conditions as defined in 
233.19  section 252.27, subdivision 1a, who are unable to provide for 
233.20  their own needs or to independently engage in ordinary community 
233.21  activities; 
233.22     (7) drug dependent and intoxicated persons as defined in 
233.23  section 254A.02, subdivisions 5 and 7, and persons at risk of 
233.24  harm to self or others due to the ingestion of alcohol or other 
233.25  drugs; 
233.26     (8) parents whose income is at or below 70 percent of the 
233.27  state median income and who are in need of child care services 
233.28  in order to secure or retain employment or to obtain the 
233.29  training or education necessary to secure employment; and 
233.30     (9) other groups of persons who, in the judgment of the 
233.31  county board, are in need of social services. 
233.32     (b) Except as provided in section 256E.08, subdivision 5, 
233.33  community social services do not include public assistance 
233.34  programs known as aid to families with dependent children, 
233.35  Minnesota family investment program-statewide, Minnesota 
233.36  supplemental aid, medical assistance, general assistance, 
234.1   general assistance medical care, or community health services 
234.2   authorized by sections 145A.09 to 145A.13.  
234.3      Sec. 17.  Minnesota Statutes 1996, section 256E.06, 
234.4   subdivision 1, is amended to read: 
234.5      Subdivision 1.  [FORMULA.] The commissioner of human 
234.6   services shall distribute community social service aids to each 
234.7   county board in an amount determined according to the following 
234.8   formula: 
234.9      In calendar year 1982 and thereafter: 
234.10     (a) One-third shall be distributed on the basis of the 
234.11  average unduplicated number of persons who receive AFDC, 
234.12  Minnesota family investment program-statewide, general 
234.13  assistance, and medical assistance per month in the calendar 
234.14  year two years prior to the year for which funds are being 
234.15  distributed as reported in the average monthly caseload reports 
234.16  required under sections 256.01, 256B.04 and 256D.04, and 
234.17  certified by the commissioner of human services; and 
234.18     (b) One-third shall be distributed on the basis of the 
234.19  number of persons residing in the county as determined by the 
234.20  most recent data of the state demographer; 
234.21     (c) One-third shall be distributed on the basis of the 
234.22  number of persons residing in the county who are 65 years old or 
234.23  older as determined by the most recent data of the state 
234.24  demographer. 
234.25     Sec. 18.  Minnesota Statutes 1996, section 256E.06, 
234.26  subdivision 3, is amended to read: 
234.27     Subd. 3.  [PAYMENTS TO COUNTIES.] The commissioner of human 
234.28  services shall make payments for community social services to 
234.29  each county in four installments per year.  The commissioner of 
234.30  human services may certify the payments for the first three 
234.31  months of a calendar year based on estimates of the unduplicated 
234.32  number of persons receiving AFDC, Minnesota family investment 
234.33  program-statewide, general assistance and medical assistance for 
234.34  the prior year.  The following three payments shall be adjusted 
234.35  to reflect the actual unduplicated number of persons who 
234.36  received AFDC, Minnesota family investment program-statewide, 
235.1   general assistance and medical assistance as required by 
235.2   subdivision 1.  The commissioner shall ensure that the pertinent 
235.3   payment of the allotment for that quarter is made to each county 
235.4   on the first working day after the end of each quarter of the 
235.5   calendar year, except for the last quarter of the calendar 
235.6   year.  The commissioner shall ensure that each county receives 
235.7   its payment of the allotment for that quarter no later than the 
235.8   last working day of that quarter.  This scheduling of payments 
235.9   does not require compliance with subdivision 10.  
235.10     Sec. 19.  Minnesota Statutes 1996, section 256E.07, 
235.11  subdivision 1, is amended to read: 
235.12     Subdivision 1.  [FORMULA.] In federal fiscal year 1985 and 
235.13  subsequent years, money for social services that is received 
235.14  from the federal government to reimburse counties for social 
235.15  service expenditures pursuant according to title XX of the 
235.16  Social Security Act shall be allocated to each county according 
235.17  to the following formula:  
235.18     (a) Two-thirds shall be allocated on the basis of the 
235.19  annual average number of unduplicated active monthly caseloads 
235.20  in each county in the following programs:  aid to families with 
235.21  dependent children, Minnesota family investment 
235.22  program-statewide, medical assistance, general assistance, 
235.23  supplementary security income, and Minnesota supplemental aid.  
235.24     (b) One-third shall be allocated on the basis of the number 
235.25  of persons residing in the county as determined by the most 
235.26  recent estimate of the state demographer.  
235.27     (c) The commissioner shall allocate to the counties 
235.28  pursuant according to this section the total money received from 
235.29  the federal government for social services pursuant according to 
235.30  title XX of the Social Security Act, except that portion of the 
235.31  state's allocation which the legislature authorizes for 
235.32  administrative purposes and for migrant day care. 
235.33     Sec. 20.  Minnesota Statutes 1996, section 256E.08, 
235.34  subdivision 3, is amended to read: 
235.35     Subd. 3.  [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 
235.36  The county board may designate itself, a human services board, 
236.1   or a local social services agency to perform the functions of 
236.2   local social services agencies as prescribed in chapter 393 and 
236.3   assigned to county agencies in other law which pertains to the 
236.4   administration of income maintenance programs known as aid to 
236.5   families with dependent children, Minnesota family investment 
236.6   program-statewide, general assistance, Minnesota supplemental 
236.7   aid, medical assistance, general assistance medical care, and 
236.8   emergency assistance.  
236.9      Sec. 21.  Minnesota Statutes 1996, section 256F.05, 
236.10  subdivision 5, is amended to read: 
236.11     Subd. 5.  [INAPPROPRIATE EXPENDITURES.] Family preservation 
236.12  fund basic, placement earnings, and development grant money must 
236.13  not be used for: 
236.14     (1) child day care necessary solely because of the 
236.15  employment or training to prepare for employment, of a parent or 
236.16  other relative with whom the child is living; 
236.17     (2) residential facility payments; 
236.18     (3) adoption assistance payments; 
236.19     (4) public assistance payments for aid to families with 
236.20  dependent children, Minnesota family investment 
236.21  program-statewide, supplemental aid, medical assistance, general 
236.22  assistance, general assistance medical care, or community health 
236.23  services authorized by sections 145A.09 to 145A.13; or 
236.24     (5) administrative costs for local social services agency 
236.25  public assistance staff.  
236.26     Sec. 22.  Minnesota Statutes 1996, section 256G.01, 
236.27  subdivision 4, is amended to read: 
236.28     Subd. 4.  [ADDITIONAL COVERAGE.] The provisions in sections 
236.29  256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 
236.30  subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 
236.31  subdivisions 1 to 3, apply to the following programs:  aid to 
236.32  families with dependent children, Minnesota family investment 
236.33  program-statewide; medical assistance; general assistance; 
236.34  family general assistance; general assistance medical care; and 
236.35  Minnesota supplemental aid. 
236.36     Sec. 23.  Minnesota Statutes 1996, section 257.3573, 
237.1   subdivision 2, is amended to read: 
237.2      Subd. 2.  [INAPPROPRIATE EXPENDITURES.] Indian child 
237.3   welfare grant money must not be used for: 
237.4      (1) child day care necessary solely because of employment 
237.5   or training for employment of a parent or other relative with 
237.6   whom the child is living; 
237.7      (2) foster care maintenance or difficulty of care payments; 
237.8      (3) residential facility payments; 
237.9      (4) adoption assistance payments; 
237.10     (5) public assistance payments for aid to families with 
237.11  dependent children, Minnesota family investment 
237.12  program-statewide, supplemental aid, medical assistance, general 
237.13  assistance, general assistance medical care, or community health 
237.14  services authorized by sections 145A.01 to 145A.14; or 
237.15     (6) administrative costs for income maintenance staff.  
237.16     Sec. 24.  Minnesota Statutes 1996, section 260.38, is 
237.17  amended to read: 
237.18     260.38 [COST, PAYMENT.] 
237.19     In addition to the usual care and services given by public 
237.20  and private agencies, the necessary cost incurred by the 
237.21  commissioner of human services in providing care for such child 
237.22  shall be paid by the county committing such child which, subject 
237.23  to uniform rules established by the commissioner of human 
237.24  services, may receive a reimbursement not exceeding one-half of 
237.25  such costs from funds made available for this purpose by the 
237.26  legislature during the period beginning July 1, 1985, and ending 
237.27  December 31, 1985.  Beginning January 1, 1986, the necessary 
237.28  cost incurred by the commissioner of human services in providing 
237.29  care for the child must be paid by the county committing the 
237.30  child.  Where such child is eligible to receive a grant of aid 
237.31  to families with dependent children, Minnesota family investment 
237.32  program-statewide or supplemental security income for the aged, 
237.33  blind, and disabled, or a foster care maintenance payment under 
237.34  Title IV-E of the Social Security Act, United States Code, title 
237.35  42, sections 670 to 676, the child's needs shall be met through 
237.36  these programs.  
238.1      Sec. 25.  Minnesota Statutes 1996, section 268.0111, 
238.2   subdivision 5, is amended to read: 
238.3      Subd. 5.  [INCOME MAINTENANCE AND SUPPORT SERVICES.] 
238.4   "Income maintenance and support services" means programs through 
238.5   which the state or its subdivisions provide direct financial or 
238.6   in-kind support to unemployed or underemployed persons, 
238.7   including reemployment insurance, aid to families with dependent 
238.8   children, Minnesota family investment program-statewide, general 
238.9   assistance, work readiness assistance, food stamps, energy 
238.10  assistance, disability determinations, and child care.  Income 
238.11  maintenance and support services do not include medical 
238.12  assistance, aging services, social services, community social 
238.13  services, mental health services, or services for the 
238.14  emotionally disturbed, the mentally retarded, or residents of 
238.15  nursing homes. 
238.16     Sec. 26.  Minnesota Statutes 1996, section 268.0111, 
238.17  subdivision 7, is amended to read: 
238.18     Subd. 7.  [PUBLIC ASSISTANCE.] "Public assistance" means 
238.19  aid to families with dependent children, Minnesota family 
238.20  investment program-statewide and general assistance, and work 
238.21  readiness.  
238.22     Sec. 27.  Minnesota Statutes 1996, section 268.0122, 
238.23  subdivision 3, is amended to read: 
238.24     Subd. 3.  [DUTIES AS A STATE AGENCY.] The commissioner 
238.25  shall: 
238.26     (1) administer the unemployment insurance laws and related 
238.27  programs; 
238.28     (2) administer the aspects of aid to families with 
238.29  dependent children, Minnesota family investment 
238.30  program-statewide, general assistance, work readiness, and food 
238.31  stamps that relate to employment and training services, subject 
238.32  to the contract under section 268.86, subdivision 2; 
238.33     (3) administer wage subsidies and the discretionary 
238.34  employment and training fund; 
238.35     (4) administer a national system of public employment 
238.36  offices as prescribed by United States Code, title 29, chapter 
239.1   4B, the Wagner-Peyser Act, and other federal employment and 
239.2   training programs; 
239.3      (5) cooperate with the federal government and its 
239.4   employment and training agencies in any reasonable manner as 
239.5   necessary to qualify for federal aid for employment and training 
239.6   services and money; 
239.7      (6) enter into agreements with other departments of the 
239.8   state and local units of government as necessary; 
239.9      (7) certify employment and training service providers and 
239.10  decertify service providers that fail to comply with performance 
239.11  criteria according to standards established by the commissioner; 
239.12     (8) provide consistent, integrated employment and training 
239.13  services across the state; 
239.14     (9) establish the standards for all employment and training 
239.15  services administered under this chapter; 
239.16     (10) develop standards for the contents and structure of 
239.17  the local service unit plans and plans for Indian tribe 
239.18  employment and training services; 
239.19     (11) provide current state and substate labor market 
239.20  information and forecasts, in cooperation with other agencies; 
239.21     (12) identify underserved populations, unmet service needs, 
239.22  and funding requirements; 
239.23     (13) consult with the council for the blind on matters 
239.24  pertaining to programs and services for the blind and visually 
239.25  impaired; and 
239.26     (14) enter into agreements with Indian tribes as necessary 
239.27  to provide employment and training services as funds become 
239.28  available. 
239.29     Sec. 28.  Minnesota Statutes 1996, section 268.552, 
239.30  subdivision 5, is amended to read: 
239.31     Subd. 5.  [ALLOCATION TO APPLICANTS.] Priority for 
239.32  subsidies shall be in the following order: 
239.33     (1) applicants living in households with no other income 
239.34  source; 
239.35     (2) applicants whose incomes and resources are less than 
239.36  the standard for eligibility for general assistance or work 
240.1   readiness; and 
240.2      (3) applicants who are eligible for aid to families with 
240.3   dependent children or Minnesota family investment 
240.4   program-statewide. 
240.5      Sec. 29.  Minnesota Statutes 1996, section 268.6751, 
240.6   subdivision 1, is amended to read: 
240.7      Subdivision 1.  [WAGE SUBSIDIES.] Wage subsidy money must 
240.8   be allocated to local service units in the following manner: 
240.9      (a) The commissioner shall allocate 87.5 percent of the 
240.10  funds available for allocation to local service units for wage 
240.11  subsidy programs as follows:  the proportion of the wage subsidy 
240.12  money available to each local service unit must be based on the 
240.13  number of unemployed persons in the local service unit for the 
240.14  most recent six-month period and the number of work readiness 
240.15  assistance cases and aid to families with dependent children and 
240.16  Minnesota family investment program-statewide cases in the local 
240.17  service unit for the most recent six-month period. 
240.18     (b) Five percent of the money available for wage subsidy 
240.19  programs must be allocated at the discretion of the commissioner.
240.20     (c) Seven and one-half percent of the money available for 
240.21  wage subsidy programs must be allocated at the discretion of the 
240.22  commissioner to provide jobs for residents of federally 
240.23  recognized Indian reservations.  
240.24     (d) By December 31 of each fiscal year, providers and local 
240.25  service units receiving wage subsidy money shall report to the 
240.26  commissioner on the use of allocated funds.  The commissioner 
240.27  shall reallocate uncommitted funds for each fiscal year 
240.28  according to the formula in paragraph (a). 
240.29     Sec. 30.  Minnesota Statutes 1996, section 268.676, 
240.30  subdivision 1, is amended to read: 
240.31     Subdivision 1.  [AMONG JOB APPLICANTS.] At least 80 percent 
240.32  of funds allocated among eligible job applicants statewide must 
240.33  be allocated to: 
240.34     (1) applicants living in households with no other income 
240.35  source; 
240.36     (2) applicants whose incomes and resources are less than 
241.1   the standards for eligibility for general assistance or work 
241.2   readiness; 
241.3      (3) applicants who are eligible for aid to families with 
241.4   dependent children or Minnesota family investment 
241.5   program-statewide; and 
241.6      (4) applicants who live in a farm household who demonstrate 
241.7   severe household financial need. 
241.8      Sec. 31.  Minnesota Statutes 1996, section 268.86, 
241.9   subdivision 2, is amended to read: 
241.10     Subd. 2.  [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 
241.11  commissioner and the commissioner of human services shall enter 
241.12  into a written contract for the design, delivery, and 
241.13  administration of employment and training services for 
241.14  applicants for or recipients of food stamps or, aid to families 
241.15  with dependent children and work readiness or Minnesota family 
241.16  investment program-statewide, including AFDC and MFIP-S 
241.17  employment and training programs, and general assistance or work 
241.18  readiness grant diversion.  The contract must address: 
241.19     (1) specific roles and responsibilities of each department; 
241.20     (2) assignment and supervision of staff for interagency 
241.21  activities including any necessary interagency employee mobility 
241.22  agreements under the administrative procedures of the department 
241.23  of employee relations; 
241.24     (3) mechanisms for determining the conditions under which 
241.25  individuals participate in services, their rights and 
241.26  responsibilities while participating, and the standards by which 
241.27  the services must be administered; 
241.28     (4) procedures for providing technical assistance to local 
241.29  service units, Indian tribes, and employment and training 
241.30  service providers; 
241.31     (5) access to appropriate staff for ongoing development and 
241.32  interpretation of policy, rules, and program standards; 
241.33     (6) procedures for reimbursing appropriate agencies for 
241.34  administrative expenses; and 
241.35     (7) procedures for accessing available federal funds. 
241.36     Sec. 32.  Minnesota Statutes 1996, section 268.871, 
242.1   subdivision 1, is amended to read: 
242.2      Subdivision 1.  [RESPONSIBILITY AND CERTIFICATION.] (a) 
242.3   Unless prohibited by federal law or otherwise determined by 
242.4   state law, a local service unit is responsible for the delivery 
242.5   of employment and training services.  After February 1, 1988, 
242.6   employment and training services must be delivered by certified 
242.7   employment and training service providers.  
242.8      (b) The local service unit's employment and training 
242.9   service provider must meet the certification standards in this 
242.10  subdivision in order to be certified to deliver any of the 
242.11  following employment and training services and programs:  wage 
242.12  subsidies; work readiness; work readiness and general assistance 
242.13  grant diversion; food stamp employment and training programs; 
242.14  community work experience programs; AFDC or MFIP-S job search; 
242.15  AFDC or MFIP-S grant diversion; AFDC or MFIP-S on-the-job 
242.16  training; and AFDC or MFIP-S case management.  
242.17     (c) The commissioner shall certify a local service unit's 
242.18  service provider to provide these employment and training 
242.19  services and programs if the commissioner determines that the 
242.20  provider has:  
242.21     (1) past experience in direct delivery of the programs 
242.22  specified in paragraph (b); 
242.23     (2) staff capabilities and qualifications, including 
242.24  adequate staff to provide timely and effective services to 
242.25  clients, and proven staff experience in providing specific 
242.26  services such as assessments, career planning, job development, 
242.27  job placement, support services, and knowledge of community 
242.28  services and educational resources; 
242.29     (3) demonstrated effectiveness in providing services to 
242.30  public assistance recipients and other economically 
242.31  disadvantaged clients; and 
242.32     (4) demonstrated administrative capabilities, including 
242.33  adequate fiscal and accounting procedures, financial management 
242.34  systems, participant data systems, and record retention 
242.35  procedures. 
242.36     (d) When the only service provider that meets the criterion 
243.1   in paragraph (c), clause (1), has been decertified, pursuant 
243.2   according to subdivision 1a, in that local service unit, the 
243.3   following criteria shall be substituted:  past experience in 
243.4   direct delivery of multiple, coordinated, nonduplicative 
243.5   services, including outreach, assessments, identification of 
243.6   client barriers, employability development plans, and provision 
243.7   or referral to support services. 
243.8      (e) The commissioner shall certify providers of the 
243.9   Minnesota family investment plan case management services as 
243.10  defined in section 256.032, subdivision 3.  Providers must meet 
243.11  the standards defined in paragraph (c), except that past 
243.12  experience under paragraph (c), clause (1), must be in services 
243.13  and programs similar to those specified in section 256.032, 
243.14  subdivision 3.  
243.15     Employment and training service providers shall be 
243.16  certified by the commissioner for two fiscal years beginning 
243.17  July 1, 1991, and every second year thereafter. 
243.18     Sec. 33.  Minnesota Statutes 1996, section 268.90, 
243.19  subdivision 2, is amended to read: 
243.20     Subd. 2.  [EMPLOYMENT CONDITIONS.] (a) An eligible 
243.21  nonprofit or public employer may not terminate, lay off, or 
243.22  reduce the regular working hours of an employee for the purpose 
243.23  of hiring an individual with money available under this 
243.24  program.  An eligible employer may not hire an individual with 
243.25  money available through this program if any other person is on 
243.26  layoff from the same or a substantially equivalent job. 
243.27     (b) Community investment program participants are employees 
243.28  of the project employer within the meaning of workers' 
243.29  compensation laws, personal income tax, and the federal 
243.30  insurance contribution act, but not retirement or civil service 
243.31  laws. 
243.32     (c) Each project and job must comply with all applicable 
243.33  affirmative action, fair labor, health, safety, and 
243.34  environmental standards. 
243.35     (d) Individuals employed under the community investment 
243.36  program must be paid a wage at the same wage rates as work site 
244.1   or employees doing comparable work in that locality, unless 
244.2   otherwise specified in law. 
244.3      (e) Recipients of aid to families with dependent 
244.4   children or Minnesota family investment program-statewide who 
244.5   are eligible on the basis of an unemployed parent may not have 
244.6   available more than 100 hours a month.  All employees are 
244.7   limited to 32 hours or four days a week, so that they can 
244.8   continue to seek full-time private sector employment, unless 
244.9   otherwise specified in law. 
244.10     (f) The commissioner shall establish, by rule, the terms 
244.11  and conditions governing the participation of appropriate public 
244.12  assistance recipients.  The rules must, at a minimum, establish 
244.13  the procedures by which the minimum and maximum number of work 
244.14  hours and maximum allowable travel distances are determined, the 
244.15  amounts and methods by which work expenses will be paid, and the 
244.16  manner in which support services will be provided.  The rules 
244.17  must also provide for periodic reviews of clients continuing 
244.18  employment in community investment programs. 
244.19     (g) Participation in a community investment program by a 
244.20  recipient of aid to families with dependent children, Minnesota 
244.21  family investment program-statewide or general assistance is 
244.22  voluntary; however, work readiness registrants may be required 
244.23  to participate.  
244.24     Sec. 34.  Minnesota Statutes 1996, section 268.916, is 
244.25  amended to read: 
244.26     268.916 [REPORTS.] 
244.27     Each grantee shall submit an annual report to the 
244.28  commissioner on the format designated by the commissioner, 
244.29  including program information report data.  By January 1 of each 
244.30  year, the commissioner shall prepare an annual report to the 
244.31  health and human services committee of the house of 
244.32  representatives and the family services committee of the senate 
244.33  concerning the uses and impact of head start supplemental 
244.34  funding, including a summary of innovative programs and the 
244.35  results of innovative programs and an evaluation of the 
244.36  coordination of head start programs with employment and training 
245.1   services provided to AFDC and MFIP-S recipients. 
245.2      Sec. 35.  Minnesota Statutes 1996, section 268.95, 
245.3   subdivision 4, is amended to read: 
245.4      Subd. 4.  [PILOT PROGRAM.] The commissioner shall develop a 
245.5   pilot program, in cooperation with the commissioners of trade 
245.6   and economic development and human services, to enable 
245.7   low-income persons to start or expand self-employment 
245.8   opportunities or home-based businesses that are designed to make 
245.9   the individual entrepreneurs economically independent.  The 
245.10  commissioner of human services shall seek necessary waivers from 
245.11  federal regulations to allow recipients of aid to families with 
245.12  dependent children or Minnesota family investment 
245.13  program-statewide to participate and retain eligibility while 
245.14  establishing a business. 
245.15     Sec. 36.  Minnesota Statutes 1996, section 393.07, 
245.16  subdivision 6, is amended to read: 
245.17     Subd. 6.  [PURCHASE OF EQUIPMENT TO AID WELFARE 
245.18  RECIPIENTS.] Every local social services agency authorizing 
245.19  braces, crutches, trusses, wheel chairs and hearing aids for use 
245.20  by recipients of supplemental security income for the aged, 
245.21  blind and disabled, aid to families with dependent children or 
245.22  Minnesota family investment program-statewide and relief shall 
245.23  secure such devices at the lowest cost obtainable conducive to 
245.24  the well being of the recipient and fix the recipient's grant in 
245.25  an amount to cover the cost of the device providing it will be 
245.26  purchased at the lowest cost obtainable, or may make payment for 
245.27  the device directly to the vendor. 
245.28     Sec. 37.  Minnesota Statutes 1996, section 477A.0122, 
245.29  subdivision 2, is amended to read: 
245.30     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
245.31  following definitions apply: 
245.32     (a) "Children in out-of-home placement" means the total 
245.33  unduplicated number of children in out-of-home care as reported 
245.34  pursuant according to section 257.0725. 
245.35     (b) "Family preservation programs" means family-based 
245.36  services as defined in section 256F.03, subdivision 5, families 
246.1   first services, parent and child education programs, and day 
246.2   treatment services provided in cooperation with a school 
246.3   district or other programs as defined by the commissioner of 
246.4   human services. 
246.5      (c) "Income maintenance caseload" means average monthly 
246.6   number of AFDC or Minnesota family investment program-statewide 
246.7   cases for the calendar year. 
246.8      By July 1, 1994, the commissioner of human services shall 
246.9   certify to the commissioner of revenue the number of children in 
246.10  out-of-home placement in 1991 and 1992 for each county and the 
246.11  income maintenance caseload for each county for the most recent 
246.12  year available.  By July 1 of each subsequent year, the 
246.13  commissioner of human services shall certify to the commissioner 
246.14  of revenue the income maintenance caseload for each county for 
246.15  the most recent calendar year available. 
246.16     Sec. 38.  [REVISOR INSTRUCTION.] 
246.17     The revisor of statutes shall identify in Minnesota 
246.18  Statutes and Minnesota Rules all references to aid to families 
246.19  with dependent children and AFDC, and to Minnesota Statutes, 
246.20  section 256.12, or any of the sections of Minnesota Statutes 
246.21  from sections 256.72 to 256.87.  
246.22     The revisor shall prepare a report by January 1, 1998, for 
246.23  the 1998 legislature showing where these references are located. 
246.24     Sec. 39.  [EFFECTIVE DATE.] 
246.25     Sections 1 to 37 are effective July 1, 1997. 
246.26                             ARTICLE 5
246.27                      CORPS TO CAREER PROGRAM
246.28     Section 1.  Minnesota Statutes 1996, section 84.0887, 
246.29  subdivision 2, is amended to read: 
246.30     Subd. 2.  [ADDITIONAL SERVICES; CORPS TO CAREER COMMUNITY 
246.31  SERVICE.] (a) In addition to services under subdivision 1, youth 
246.32  corps programs may coordinate with or provide services to: 
246.33     (1) making public facilities accessible to individuals with 
246.34  disabilities; 
246.35     (2) federal, state, local, and regional governmental 
246.36  agencies; 
247.1      (3) nursing homes, hospices, senior centers, hospitals, 
247.2   local libraries, parks, recreational facilities, child and adult 
247.3   day care centers, programs servicing individuals with 
247.4   disabilities, and schools; 
247.5      (4) law enforcement agencies, and penal and probation 
247.6   systems; 
247.7      (5) private nonprofit organizations that primarily focus on 
247.8   social service such as community action agencies; 
247.9      (6) activities that focus on the rehabilitation or 
247.10  improvement of public facilities, neighborhood improvements, 
247.11  literacy training that benefits educationally disadvantaged 
247.12  individuals, weatherization of and basic repairs to low-income 
247.13  housing including housing occupied by older adults, activities 
247.14  that focus on drug and alcohol abuse education, prevention, and 
247.15  treatment; and 
247.16     (7) any other nonpartisan civic activities and services 
247.17  that the commissioner determines to be of a substantial social 
247.18  benefit in meeting unmet human, educational, or environmental 
247.19  needs, particularly needs related to poverty, or in the 
247.20  community where volunteer service is to be performed. 
247.21     (b) Youth and young adults may provide full-time or 
247.22  part-time youth community service in a program known as "corps 
247.23  to career" if the individual: 
247.24     (1) is an unemployed high school dropout and is a parent of 
247.25  a minor member of an assistance unit under the AFDC, MFIP, or 
247.26  MFIP-R programs under chapter 256, or under the MFIP-S program 
247.27  under chapter 256J, or is a person who is a member of an 
247.28  assistance unit under the AFDC, MFIP, or MFIP-R programs under 
247.29  chapter 256, or under the MFIP-S program under chapter 256J; 
247.30     (2) agrees to only use the individual's postservice benefit 
247.31  under the federal Americorps Act to complete a customized job 
247.32  training program that requires 20 percent of the individual's 
247.33  time to be spent in the corps to career program and that is 
247.34  consistent with the work requirements of the employment and 
247.35  training services component of the MFIP-S program under chapter 
247.36  256J or, if a customized job training program is unavailable, 
248.1   agrees to use the postservice benefit consistent with the 
248.2   federal education award; and 
248.3      (3) during the entire time the individual completes the 
248.4   individual's job training program, resides within an enterprise 
248.5   zone as defined in section 469.303. 
248.6      To be eligible under this paragraph, any individual who 
248.7   receives assistance under clause (1) after MFIP-S has been 
248.8   implemented in the individual's county of financial 
248.9   responsibility, and who meets the requirements in clauses (2) 
248.10  and (3), also must meet the requirements of the employment and 
248.11  training services component of the MFIP-S program under chapter 
248.12  256J.  
248.13     (c) The commissioner of the department of natural resources 
248.14  shall ensure that the corps to career program will not decrease 
248.15  employment opportunities that would be available without the 
248.16  program; will not displace current employees including any 
248.17  partial displacement in the form of reduced hours of work other 
248.18  than overtime, wages, employment benefits, or regular seasonal 
248.19  work; will not impair existing labor agreements; and will not 
248.20  result in the substitution of project funding for preexisting 
248.21  funds or sources of funds for ongoing work. 
248.22     Sec. 2.  [EFFECTIVE DATE.] 
248.23     This article is effective July 1, 1997. 
248.24                             ARTICLE 6
248.25                       CITIZENSHIP PROMOTION
248.26     Section 1.  [3.9228] [CITIZENSHIP PROMOTION PROGRAM.] 
248.27     Subdivision 1.  [CREATION.] The citizenship promotion 
248.28  program is created as a statewide program.  The purpose of the 
248.29  program is to provide assistance to legal immigrants to obtain 
248.30  citizenship status.  The program consists of public education 
248.31  and information, group application workshops, citizenship and 
248.32  English for citizenship classes, and video citizenship 
248.33  instruction. 
248.34     Subd. 2.  [PUBLIC EDUCATION AND INFORMATION.] The public 
248.35  education program must include the preparation and distribution 
248.36  of information about citizenship eligibility requirements, how 
249.1   to apply, what testing requirements are, and where citizenship 
249.2   assistance can be obtained.  Community meetings must be held to 
249.3   provide the same information and to respond to questions. 
249.4      Subd. 3.  [GROUP APPLICATION WORKSHOPS.] Group workshops 
249.5   must be held on a periodic basis.  The workshops must provide 
249.6   individualized advice about applying for citizenship and provide 
249.7   an overview of the citizenship process.  Participants must be 
249.8   screened for English proficiency and, upon request, enrolled in 
249.9   citizenship application workshops. 
249.10     Subd. 4.  [CITIZENSHIP AND ENGLISH CLASSES.] The program 
249.11  must support and supplement existing English for citizenship 
249.12  classes.  Classes must also be supported and offered in native 
249.13  languages for those able to take a citizenship test in their 
249.14  native language.  Tuition may be charged for classes, 
249.15  scholarships provided for needy students, interpreters provided, 
249.16  and transportation and child care assistance provided for 
249.17  hardship applicants. 
249.18     Subd. 5.  [VIDEO INSTRUCTION.] The program must develop and 
249.19  produce a television series to provide citizenship education and 
249.20  make available videotapes of the classes. 
249.21     Subd. 6.  [ADMINISTRATION.] The executive directors of the 
249.22  councils on Black Minnesotans, Asian-Pacific Minnesotans, and 
249.23  Chicano-Latino affairs shall jointly administer the citizenship 
249.24  promotion program.  The directors shall jointly hire and 
249.25  supervise staff to coordinate the program.  The staff shall 
249.26  process applications for grants, act as a clearinghouse to 
249.27  promote the exchange of information, expertise, and best 
249.28  practices among citizenship promotion programs and 
249.29  organizations, and develop resources to assist in the operation 
249.30  of community-based programs.  The staff shall organize an 
249.31  advisory committee of representatives of ethnic and geographic 
249.32  groups of legal immigrants.  
249.33     Subd. 7.  [GRANTS.] The directors shall make grants to 
249.34  nonprofit organizations and government agencies to operate 
249.35  citizenship promotion programs under this section.  The staff 
249.36  shall consult with the advisory committee about the appropriate 
250.1   selection of grantees and about what policies should be adopted 
250.2   to ensure that the goals of the citizenship promotion programs 
250.3   are attained.  In awarding grants, the directors must consider 
250.4   the quality of programs operated by proposed applicants, 
250.5   including the program's prior success in enabling immigrants to 
250.6   become citizens.  Grant applicants must identify the measures by 
250.7   which their success with the grant funds will be evaluated, 
250.8   including the numbers of immigrants who are expected to become 
250.9   citizens.  In awarding grants, the councils shall ensure 
250.10  reasonable access to citizenship programs in all regions of 
250.11  Minnesota. 
250.12     Sec. 2.  [EFFECTIVE DATE.] 
250.13     This article is effective the day following final enactment.
250.14                             ARTICLE 7
250.15                   PROGRAM INTEGRITY INITIATIVES 
250.16     Section 1.  Minnesota Statutes 1996, section 13.82, 
250.17  subdivision 1, is amended to read: 
250.18     Subdivision 1.  [APPLICATION.] This section shall apply to 
250.19  agencies which carry on a law enforcement function, including 
250.20  but not limited to municipal police departments, county sheriff 
250.21  departments, fire departments, the bureau of criminal 
250.22  apprehension, the Minnesota state patrol, the board of peace 
250.23  officer standards and training, the department of commerce, and 
250.24  the department of labor and industry fraud investigation unit, 
250.25  and the program integrity section and county human services 
250.26  agency client and provider fraud prevention and control units 
250.27  operated or supervised by the department of human services.  
250.28     Sec. 2.  Minnesota Statutes 1996, section 256.01, 
250.29  subdivision 2, is amended to read: 
250.30     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
250.31  section 241.021, subdivision 2, the commissioner of human 
250.32  services shall: 
250.33     (1) Administer and supervise all forms of public assistance 
250.34  provided for by state law and other welfare activities or 
250.35  services as are vested in the commissioner.  Administration and 
250.36  supervision of human services activities or services includes, 
251.1   but is not limited to, assuring timely and accurate distribution 
251.2   of benefits, completeness of service, and quality program 
251.3   management.  In addition to administering and supervising human 
251.4   services activities vested by law in the department, the 
251.5   commissioner shall have the authority to: 
251.6      (a) require county agency participation in training and 
251.7   technical assistance programs to promote compliance with 
251.8   statutes, rules, federal laws, regulations, and policies 
251.9   governing human services; 
251.10     (b) monitor, on an ongoing basis, the performance of county 
251.11  agencies in the operation and administration of human services, 
251.12  enforce compliance with statutes, rules, federal laws, 
251.13  regulations, and policies governing welfare services and promote 
251.14  excellence of administration and program operation; 
251.15     (c) develop a quality control program or other monitoring 
251.16  program to review county performance and accuracy of benefit 
251.17  determinations; 
251.18     (d) require county agencies to make an adjustment to the 
251.19  public assistance benefits issued to any individual consistent 
251.20  with federal law and regulation and state law and rule and to 
251.21  issue or recover benefits as appropriate; 
251.22     (e) delay or deny payment of all or part of the state and 
251.23  federal share of benefits and administrative reimbursement 
251.24  according to the procedures set forth in section 256.017; and 
251.25     (f) make contracts with and grants to public and private 
251.26  agencies and organizations, both profit and nonprofit, and 
251.27  individuals, using appropriated funds. 
251.28     (2) Inform county agencies, on a timely basis, of changes 
251.29  in statute, rule, federal law, regulation, and policy necessary 
251.30  to county agency administration of the programs. 
251.31     (3) Administer and supervise all child welfare activities; 
251.32  promote the enforcement of laws protecting handicapped, 
251.33  dependent, neglected and delinquent children, and children born 
251.34  to mothers who were not married to the children's fathers at the 
251.35  times of the conception nor at the births of the children; 
251.36  license and supervise child-caring and child-placing agencies 
252.1   and institutions; supervise the care of children in boarding and 
252.2   foster homes or in private institutions; and generally perform 
252.3   all functions relating to the field of child welfare now vested 
252.4   in the state board of control. 
252.5      (4) Administer and supervise all noninstitutional service 
252.6   to handicapped persons, including those who are visually 
252.7   impaired, hearing impaired, or physically impaired or otherwise 
252.8   handicapped.  The commissioner may provide and contract for the 
252.9   care and treatment of qualified indigent children in facilities 
252.10  other than those located and available at state hospitals when 
252.11  it is not feasible to provide the service in state hospitals. 
252.12     (5) Assist and actively cooperate with other departments, 
252.13  agencies and institutions, local, state, and federal, by 
252.14  performing services in conformity with the purposes of Laws 
252.15  1939, chapter 431. 
252.16     (6) Act as the agent of and cooperate with the federal 
252.17  government in matters of mutual concern relative to and in 
252.18  conformity with the provisions of Laws 1939, chapter 431, 
252.19  including the administration of any federal funds granted to the 
252.20  state to aid in the performance of any functions of the 
252.21  commissioner as specified in Laws 1939, chapter 431, and 
252.22  including the promulgation of rules making uniformly available 
252.23  medical care benefits to all recipients of public assistance, at 
252.24  such times as the federal government increases its participation 
252.25  in assistance expenditures for medical care to recipients of 
252.26  public assistance, the cost thereof to be borne in the same 
252.27  proportion as are grants of aid to said recipients. 
252.28     (7) Establish and maintain any administrative units 
252.29  reasonably necessary for the performance of administrative 
252.30  functions common to all divisions of the department. 
252.31     (8) Act as designated guardian of both the estate and the 
252.32  person of all the wards of the state of Minnesota, whether by 
252.33  operation of law or by an order of court, without any further 
252.34  act or proceeding whatever, except as to persons committed as 
252.35  mentally retarded.  
252.36     (9) Act as coordinating referral and informational center 
253.1   on requests for service for newly arrived immigrants coming to 
253.2   Minnesota. 
253.3      (10) The specific enumeration of powers and duties as 
253.4   hereinabove set forth shall in no way be construed to be a 
253.5   limitation upon the general transfer of powers herein contained. 
253.6      (11) Establish county, regional, or statewide schedules of 
253.7   maximum fees and charges which may be paid by county agencies 
253.8   for medical, dental, surgical, hospital, nursing and nursing 
253.9   home care and medicine and medical supplies under all programs 
253.10  of medical care provided by the state and for congregate living 
253.11  care under the income maintenance programs. 
253.12     (12) Have the authority to conduct and administer 
253.13  experimental projects to test methods and procedures of 
253.14  administering assistance and services to recipients or potential 
253.15  recipients of public welfare.  To carry out such experimental 
253.16  projects, it is further provided that the commissioner of human 
253.17  services is authorized to waive the enforcement of existing 
253.18  specific statutory program requirements, rules, and standards in 
253.19  one or more counties.  The order establishing the waiver shall 
253.20  provide alternative methods and procedures of administration, 
253.21  shall not be in conflict with the basic purposes, coverage, or 
253.22  benefits provided by law, and in no event shall the duration of 
253.23  a project exceed four years.  It is further provided that no 
253.24  order establishing an experimental project as authorized by the 
253.25  provisions of this section shall become effective until the 
253.26  following conditions have been met: 
253.27     (a) The proposed comprehensive plan, including estimated 
253.28  project costs and the proposed order establishing the waiver, 
253.29  shall be filed with the secretary of the senate and chief clerk 
253.30  of the house of representatives at least 60 days prior to its 
253.31  effective date. 
253.32     (b) The secretary of health, education, and welfare of the 
253.33  United States has agreed, for the same project, to waive state 
253.34  plan requirements relative to statewide uniformity. 
253.35     (c) A comprehensive plan, including estimated project 
253.36  costs, shall be approved by the legislative advisory commission 
254.1   and filed with the commissioner of administration.  
254.2      (13) In accordance with According to federal requirements, 
254.3   establish procedures to be followed by local welfare boards in 
254.4   creating citizen advisory committees, including procedures for 
254.5   selection of committee members. 
254.6      (14) Allocate federal fiscal disallowances or sanctions 
254.7   which are based on quality control error rates for the aid to 
254.8   families with dependent children, Minnesota family investment 
254.9   program-statewide, medical assistance, or food stamp program in 
254.10  the following manner:  
254.11     (a) One-half of the total amount of the disallowance shall 
254.12  be borne by the county boards responsible for administering the 
254.13  programs.  For the medical assistance, MFIP-S, and AFDC 
254.14  programs, disallowances shall be shared by each county board in 
254.15  the same proportion as that county's expenditures for the 
254.16  sanctioned program are to the total of all counties' 
254.17  expenditures for the AFDC, MFIP-S, and medical assistance 
254.18  programs.  For the food stamp program, sanctions shall be shared 
254.19  by each county board, with 50 percent of the sanction being 
254.20  distributed to each county in the same proportion as that 
254.21  county's administrative costs for food stamps are to the total 
254.22  of all food stamp administrative costs for all counties, and 50 
254.23  percent of the sanctions being distributed to each county in the 
254.24  same proportion as that county's value of food stamp benefits 
254.25  issued are to the total of all benefits issued for all 
254.26  counties.  Each county shall pay its share of the disallowance 
254.27  to the state of Minnesota.  When a county fails to pay the 
254.28  amount due hereunder, the commissioner may deduct the amount 
254.29  from reimbursement otherwise due the county, or the attorney 
254.30  general, upon the request of the commissioner, may institute 
254.31  civil action to recover the amount due. 
254.32     (b) Notwithstanding the provisions of paragraph (a), if the 
254.33  disallowance results from knowing noncompliance by one or more 
254.34  counties with a specific program instruction, and that knowing 
254.35  noncompliance is a matter of official county board record, the 
254.36  commissioner may require payment or recover from the county or 
255.1   counties, in the manner prescribed in paragraph (a), an amount 
255.2   equal to the portion of the total disallowance which resulted 
255.3   from the noncompliance, and may distribute the balance of the 
255.4   disallowance according to paragraph (a).  
255.5      (15) Develop and implement special projects that maximize 
255.6   reimbursements and result in the recovery of money to the 
255.7   state.  For the purpose of recovering state money, the 
255.8   commissioner may enter into contracts with third parties.  Any 
255.9   recoveries that result from projects or contracts entered into 
255.10  under this paragraph shall be deposited in the state treasury 
255.11  and credited to a special account until the balance in the 
255.12  account reaches $1,000,000.  When the balance in the account 
255.13  exceeds $1,000,000, the excess shall be transferred and credited 
255.14  to the general fund.  All money in the account is appropriated 
255.15  to the commissioner for the purposes of this paragraph. 
255.16     (16) Have the authority to make direct payments to 
255.17  facilities providing shelter to women and their children 
255.18  pursuant according to section 256D.05, subdivision 3.  Upon the 
255.19  written request of a shelter facility that has been denied 
255.20  payments under section 256D.05, subdivision 3, the commissioner 
255.21  shall review all relevant evidence and make a determination 
255.22  within 30 days of the request for review regarding issuance of 
255.23  direct payments to the shelter facility.  Failure to act within 
255.24  30 days shall be considered a determination not to issue direct 
255.25  payments. 
255.26     (17) Have the authority to establish and enforce the 
255.27  following county reporting requirements:  
255.28     (a) The commissioner shall establish fiscal and statistical 
255.29  reporting requirements necessary to account for the expenditure 
255.30  of funds allocated to counties for human services programs.  
255.31  When establishing financial and statistical reporting 
255.32  requirements, the commissioner shall evaluate all reports, in 
255.33  consultation with the counties, to determine if the reports can 
255.34  be simplified or the number of reports can be reduced. 
255.35     (b) The county board shall submit monthly or quarterly 
255.36  reports to the department as required by the commissioner.  
256.1   Monthly reports are due no later than 15 working days after the 
256.2   end of the month.  Quarterly reports are due no later than 30 
256.3   calendar days after the end of the quarter, unless the 
256.4   commissioner determines that the deadline must be shortened to 
256.5   20 calendar days to avoid jeopardizing compliance with federal 
256.6   deadlines or risking a loss of federal funding.  Only reports 
256.7   that are complete, legible, and in the required format shall be 
256.8   accepted by the commissioner.  
256.9      (c) If the required reports are not received by the 
256.10  deadlines established in clause (b), the commissioner may delay 
256.11  payments and withhold funds from the county board until the next 
256.12  reporting period.  When the report is needed to account for the 
256.13  use of federal funds and the late report results in a reduction 
256.14  in federal funding, the commissioner shall withhold from the 
256.15  county boards with late reports an amount equal to the reduction 
256.16  in federal funding until full federal funding is received.  
256.17     (d) A county board that submits reports that are late, 
256.18  illegible, incomplete, or not in the required format for two out 
256.19  of three consecutive reporting periods is considered 
256.20  noncompliant.  When a county board is found to be noncompliant, 
256.21  the commissioner shall notify the county board of the reason the 
256.22  county board is considered noncompliant and request that the 
256.23  county board develop a corrective action plan stating how the 
256.24  county board plans to correct the problem.  The corrective 
256.25  action plan must be submitted to the commissioner within 45 days 
256.26  after the date the county board received notice of noncompliance.
256.27     (e) The final deadline for fiscal reports or amendments to 
256.28  fiscal reports is one year after the date the report was 
256.29  originally due.  If the commissioner does not receive a report 
256.30  by the final deadline, the county board forfeits the funding 
256.31  associated with the report for that reporting period and the 
256.32  county board must repay any funds associated with the report 
256.33  received for that reporting period. 
256.34     (f) The commissioner may not delay payments, withhold 
256.35  funds, or require repayment under paragraph (c) or (e) if the 
256.36  county demonstrates that the commissioner failed to provide 
257.1   appropriate forms, guidelines, and technical assistance to 
257.2   enable the county to comply with the requirements.  If the 
257.3   county board disagrees with an action taken by the commissioner 
257.4   under paragraph (c) or (e), the county board may appeal the 
257.5   action according to sections 14.57 to 14.69. 
257.6      (g) Counties subject to withholding of funds under 
257.7   paragraph (c) or forfeiture or repayment of funds under 
257.8   paragraph (e) shall not reduce or withhold benefits or services 
257.9   to clients to cover costs incurred due to actions taken by the 
257.10  commissioner under paragraph (c) or (e). 
257.11     (18) Allocate federal fiscal disallowances or sanctions for 
257.12  audit exceptions when federal fiscal disallowances or sanctions 
257.13  are based on a statewide random sample for the foster care 
257.14  program under title IV-E of the Social Security Act, United 
257.15  States Code, title 42, in direct proportion to each county's 
257.16  title IV-E foster care maintenance claim for that period. 
257.17     (19) Be responsible for ensuring the detection, prevention, 
257.18  investigation, and resolution of fraudulent activities or 
257.19  behavior by applicants, recipients, and other participants in 
257.20  the human services programs administered by the department. 
257.21     (20) Require county agencies to identify overpayments, 
257.22  establish claims and utilize all available and cost-beneficial 
257.23  methodologies to collect and recover these overpayments in the 
257.24  human services programs administered by the department. 
257.25     Sec. 3.  Minnesota Statutes 1996, section 256.017, 
257.26  subdivision 2, is amended to read: 
257.27     Subd. 2.  [DEFINITIONS.] The following terms have the 
257.28  meanings given for the purpose purposes of this section. 
257.29     (a) "Administrative penalty" means an adjustment against 
257.30  the county agency's state and federal benefit and federal 
257.31  administrative reimbursement when the commissioner determines 
257.32  that the county agency is not in compliance with the policies 
257.33  and procedures established by the commissioner. 
257.34     (b) "Quality control case penalty" means an adjustment 
257.35  against the county agency's federal administrative reimbursement 
257.36  and state and federal benefit reimbursement when the 
258.1   commissioner determines through a quality control review that 
258.2   the county agency has made incorrect payments, terminations, or 
258.3   denials of benefits as determined by state quality control 
258.4   procedures for the aid to families with dependent children in 
258.5   effect until January 1, 1998, Minnesota family investment 
258.6   program-statewide, food stamp, or medical assistance programs, 
258.7   or any other programs for which the commissioner has developed a 
258.8   quality control system.  Quality control case penalties apply 
258.9   only to agency errors as defined by state quality control 
258.10  procedures. 
258.11     (c) "Quality control/quality assurance" means a review 
258.12  system of a statewide random sample of cases, designed to 
258.13  provide data on program outcomes and the accuracy with which 
258.14  state and federal policies are being applied in issuing benefits 
258.15  and as a fiscal audit to ensure the accuracy of expenditures.  
258.16  The quality control/quality assurance system is administered by 
258.17  the department.  For the aid to families with dependent children 
258.18  in effect until January 1, 1998, Minnesota family investment 
258.19  program-statewide, food stamp, and medical assistance programs, 
258.20  the quality control system is that required by federal 
258.21  regulation, or those developed by the commissioner. 
258.22     Sec. 4.  Minnesota Statutes 1996, section 256.019, is 
258.23  amended to read: 
258.24     256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 
258.25     When an amount is recovered from any source for assistance 
258.26  given under the provisions governing public assistance programs 
258.27  including aid to families with dependent children, MFIP-S, 
258.28  general assistance medical care, emergency assistance, general 
258.29  assistance, work readiness, and Minnesota supplemental aid, 
258.30  there shall be paid to the United States the amount due under 
258.31  the terms of the Social Security Act and the balance must be 
258.32  paid into the treasury of the state or county in accordance with 
258.33  current rates of financial participation; except the county may 
258.34  keep one-half of any recovery made by the county agency using 
258.35  any method other than recoupment.  For medical assistance, if 
258.36  the recovery is made by a county agency using any method other 
259.1   than recoupment, the county may keep one-half of the nonfederal 
259.2   share of the recovery.  This does not apply to recoveries from 
259.3   medical providers or to recoveries begun by the department of 
259.4   human services' surveillance and utilization review division, 
259.5   state hospital collections unit, and the benefit recoveries 
259.6   division or, by the attorney general's office, or child support 
259.7   collections.  In the food stamp program, the non-federal share 
259.8   of recoveries in the federal tax refund offset program (FTROP) 
259.9   only will be divided equally between the state agency and the 
259.10  involved county agency. 
259.11     Sec. 5.  Minnesota Statutes 1996, section 256.045, 
259.12  subdivision 3, is amended to read: 
259.13     Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
259.14  hearings are available for the following:  (1) any person 
259.15  applying for, receiving or having received public assistance, 
259.16  medical care, or a program of social services granted by the 
259.17  state agency or a county agency under sections 252.32, 256.031 
259.18  to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E, 
259.19  261, or the federal Food Stamp Act whose application for 
259.20  assistance is denied, not acted upon with reasonable promptness, 
259.21  or whose assistance is suspended, reduced, terminated, or 
259.22  claimed to have been incorrectly paid; (2) any patient or 
259.23  relative aggrieved by an order of the commissioner under section 
259.24  252.27; (3) a party aggrieved by a ruling of a prepaid health 
259.25  plan; (4) any individual or facility determined by a lead agency 
259.26  to have maltreated a vulnerable adult under section 626.557 
259.27  after they have exercised their right to administrative 
259.28  reconsideration under section 626.557; (5) any person whose 
259.29  claim for foster care payment pursuant according to a placement 
259.30  of the child resulting from a child protection assessment under 
259.31  section 626.556 is denied or not acted upon with reasonable 
259.32  promptness, regardless of funding source; (6) any person to whom 
259.33  a right of appeal pursuant according to this section is given by 
259.34  other provision of law; or (7) an applicant aggrieved by an 
259.35  adverse decision to an application for a hardship waiver under 
259.36  section 256B.15.  The failure to exercise the right to an 
260.1   administrative reconsideration shall not be a bar to a hearing 
260.2   under this section if federal law provides an individual the 
260.3   right to a hearing to dispute a finding of maltreatment.  
260.4   Individuals and organizations specified in this section may 
260.5   contest the specified action, decision, or final disposition 
260.6   before the state agency by submitting a written request for a 
260.7   hearing to the state agency within 30 days after receiving 
260.8   written notice of the action, decision, or final disposition, or 
260.9   within 90 days of such written notice if the applicant, 
260.10  recipient, patient, or relative shows good cause why the request 
260.11  was not submitted within the 30-day time limit. 
260.12     The hearing for an individual or facility under clause (4) 
260.13  is the only administrative appeal to the final lead agency 
260.14  disposition specifically, including a challenge to the accuracy 
260.15  and completeness of data under section 13.04.  Hearings 
260.16  requested under clause (4) apply only to incidents of 
260.17  maltreatment that occur on or after October 1, 1995.  Hearings 
260.18  requested by nursing assistants in nursing homes alleged to have 
260.19  maltreated a resident prior to October 1, 1995, shall be held as 
260.20  a contested case proceeding under the provisions of chapter 14. 
260.21     For purposes of this section, bargaining unit grievance 
260.22  procedures are not an administrative appeal. 
260.23     The scope of hearings involving claims to foster care 
260.24  payments under clause (5) shall be limited to the issue of 
260.25  whether the county is legally responsible for a child's 
260.26  placement under court order or voluntary placement agreement 
260.27  and, if so, the correct amount of foster care payment to be made 
260.28  on the child's behalf and shall not include review of the 
260.29  propriety of the county's child protection determination or 
260.30  child placement decision. 
260.31     (b) Except for a prepaid health plan, a vendor of medical 
260.32  care as defined in section 256B.02, subdivision 7, or a vendor 
260.33  under contract with a county agency to provide social services 
260.34  under section 256E.08, subdivision 4, is not a party and may not 
260.35  request a hearing under this section, except if assisting a 
260.36  recipient as provided in subdivision 4. 
261.1      (c) An applicant or recipient is not entitled to receive 
261.2   social services beyond the services included in the amended 
261.3   community social services plan developed under section 256E.081, 
261.4   subdivision 3, if the county agency has met the requirements in 
261.5   section 256E.081. 
261.6      (d) The commissioner may summarily affirm the county or 
261.7   state agency's proposed action without a hearing when the sole 
261.8   issue is an automatic change due to a change in state or federal 
261.9   law. 
261.10     Sec. 6.  Minnesota Statutes 1996, section 256.046, is 
261.11  amended to read: 
261.12     256.046 [ADMINISTRATIVE FRAUD DISQUALIFICATION HEARINGS.] 
261.13     Subdivision 1.  [HEARING AUTHORITY.] A local agency may 
261.14  shall initiate an administrative fraud disqualification hearing 
261.15  for individuals accused of wrongfully obtaining assistance or 
261.16  intentional program violations, in lieu of a criminal action, in 
261.17  the aid to families with dependent children in effect until 
261.18  January 1, 1998, MFIP-S, child care, general assistance, family 
261.19  general assistance, Minnesota supplemental aid, medical care, or 
261.20  food stamp programs.  The hearing is subject to the requirements 
261.21  of section 256.045 and the requirements in Code of Federal 
261.22  Regulations, title 7, section 273.16, for the food stamp program 
261.23  and title 45, section 235.112, as of September 30, 1995, for the 
261.24  aid to families with dependent children program cash grant and 
261.25  medical care programs. 
261.26     Subd. 2.  [COMBINED HEARING.] The referee may combine a 
261.27  fair hearing and administrative fraud disqualification hearing 
261.28  into a single hearing if the factual issues arise out of the 
261.29  same, or related, circumstances and the individual receives 
261.30  prior notice that the hearings will be combined.  If the 
261.31  administrative fraud disqualification hearing and fair hearing 
261.32  are combined, the time frames for administrative fraud 
261.33  disqualification hearings set forth specified in Code of Federal 
261.34  Regulations, title 7, section 273.16, and title 45, section 
261.35  235.112, as of September 30, 1995, apply.  If the individual 
261.36  accused of wrongfully obtaining assistance is charged under 
262.1   section 256.98 for the same act or acts which are the subject of 
262.2   the hearing, the individual may request that the hearing be 
262.3   delayed until the criminal charge is decided by the court or 
262.4   withdrawn. 
262.5      Sec. 7.  [256.0471] [OVERPAYMENTS BECOME JUDGMENTS BY 
262.6   OPERATION OF LAW.] 
262.7      Subdivision 1.  [QUALIFYING OVERPAYMENT.] Except for agency 
262.8   error claims, any overpayment for assistance granted under 
262.9   sections 256.031 to 256.0361, 256.72 to 256.871, and 256H.05; 
262.10  chapters 256B, 256D, 256I, 256J, and 256K; and the food stamp 
262.11  program; becomes a judgment by operation of law 90 days after 
262.12  the notice of overpayment is personally served upon the 
262.13  recipient in a manner that is sufficient under rule 4.03(a) of 
262.14  the Rules of Civil Procedure or by certified mail, return 
262.15  receipt requested.  This judgment shall be entitled to full 
262.16  faith and credit in this and any other state. 
262.17     Subd. 2.  [OVERPAYMENTS INCLUDED.] This section is limited 
262.18  to overpayments for which notification is issued within the time 
262.19  period specified under section 541.05. 
262.20     Subd. 3.  [NOTIFICATION REQUIREMENTS.] A judgment is only 
262.21  obtained after: 
262.22     (1) a notice of overpayment has been personally served on 
262.23  the recipient or former recipient in a manner sufficient under 
262.24  rule 4.03(a) of the Rules of Civil Procedure for district 
262.25  courts, or mailed to the recipient or former recipient by 
262.26  certified mail, return receipt requested; and 
262.27     (2) the time period under section 256.045, subdivision 3, 
262.28  has elapsed without a request for a hearing, or a hearing 
262.29  decision has been rendered under section 256.045 or 256.046 
262.30  which concludes the existence of an overpayment that meets the 
262.31  requirements of this section. 
262.32     Subd. 4.  [NOTICE OF OVERPAYMENT.] The notice of 
262.33  overpayment shall include the amount and cause of the 
262.34  overpayment, appeal rights, and an explanation of the 
262.35  consequences of the judgment that will be established if an 
262.36  appeal is not filed timely or if the administrative hearing 
263.1   decision establishes that there is an overpayment which 
263.2   qualifies for judgment. 
263.3      Subd. 5.  [JUDGMENTS ENTERED AND DOCKETED.] A judgment 
263.4   shall be entered and docketed under section 548.09 only after at 
263.5   least three months have elapsed since: 
263.6      (1) the notice of overpayment was served on the recipient 
263.7   under subdivision 3; and 
263.8      (2) the last time a monthly recoupment was applied to the 
263.9   overpayment. 
263.10     Subd. 6.  [DOCKETING OF OVERPAYMENTS.] On or after the date 
263.11  an unpaid overpayment becomes a judgment by operation of law 
263.12  under subdivision 1, the agency or public authority may file 
263.13  with the court administrator: 
263.14     (1) a statement identifying, or a copy of, the overpayment 
263.15  notice which provides for an appeal process and requires payment 
263.16  of the overpayment; 
263.17     (2) proof of service of the notice of overpayment; 
263.18     (3) an affidavit of default, stating the full name, 
263.19  occupation, place of residence, and last name of the debtor; the 
263.20  name and post office address of the agency or public authority; 
263.21  the date or dates the overpayment was incurred; the program that 
263.22  was overpaid; and the total amount of the judgment; and 
263.23     (4) an affidavit of service of a notice of entry of 
263.24  judgment made by first class mail at the address where the 
263.25  debtor was served with the notice of overpayment.  Service is 
263.26  completed upon mailing in the manner designated. 
263.27     Subd. 7.  [DOES NOT IMPEDE OTHER METHODS.] Nothing in this 
263.28  section shall be construed to impede or restrict alternative 
263.29  recovery methods for these overpayments or overpayments which do 
263.30  not meet the requirements of this section. 
263.31     Sec. 8.  Minnesota Statutes 1996, section 256.98, 
263.32  subdivision 1, is amended to read: 
263.33     Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
263.34  who commits any of the following acts or omissions with intent 
263.35  to defeat the purposes of sections 145.891 to 145.897, 256.12, 
263.36  256.031 to 256.0361, 256.72 to 256.871, 256.9351 to 256.966, 
264.1   child care, MFIP-S, chapter 256B, 256D, 256J, or 256K, or all of 
264.2   these sections, is guilty of theft and shall be sentenced under 
264.3   section 609.52, subdivision 3, clauses (1) to (5): 
264.4      (1) obtains, or attempts to obtain, or aids or abets any 
264.5   person to obtain by means of a willfully false statement or 
264.6   representation, by intentional concealment of a any material 
264.7   fact, or by impersonation or other fraudulent device, assistance 
264.8   or the continued receipt of assistance, including, but not 
264.9   limited to, child care or vouchers produced according to 
264.10  sections 145.891 to 145.897 and MinnesotaCare services according 
264.11  to sections 256.9351 to 256.966, to which the person is not 
264.12  entitled or assistance greater than that to which the person is 
264.13  entitled, or who; or 
264.14     (2) knowingly aids or abets in buying or in any way 
264.15  disposing of the property of a recipient or applicant of 
264.16  assistance without the consent of the county agency with intent 
264.17  to defeat the purposes of sections 256.12, 256.031 to 256.0361, 
264.18  256.72 to 256.871, and chapter 256B, or all of these sections is 
264.19  guilty of theft and shall be sentenced pursuant to section 
264.20  609.52, subdivision 3, clauses (2), (3)(a) and (c), (4), and (5).
264.21     The continued receipt of assistance to which the person is 
264.22  not entitled or greater than that to which the person is 
264.23  entitled as a result of any of the acts, failure to act, or 
264.24  concealment described in this subdivision shall be deemed to be 
264.25  continuing offenses from the date that the first act or failure 
264.26  to act occurred. 
264.27     Sec. 9.  Minnesota Statutes 1996, section 256.98, 
264.28  subdivision 4, is amended to read: 
264.29     Subd. 4.  [RECOVERY OF ASSISTANCE.] The amount of 
264.30  assistance determined to have been incorrectly paid is 
264.31  recoverable from: 
264.32     (1) the recipient or the recipient's estate by the county 
264.33  or the state as a debt due the county or the state or both in 
264.34  proportion to the contribution of each.; and 
264.35     (2) any person found to have taken independent action to 
264.36  establish eligibility for, conspired with, or aided and abetted, 
265.1   any recipient of public assistance found to have been 
265.2   incorrectly paid. 
265.3      Sec. 10.  Minnesota Statutes 1996, section 256.98, 
265.4   subdivision 8, is amended to read: 
265.5      Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
265.6   to be guilty of wrongfully obtaining assistance by a federal or 
265.7   state court or by an administrative hearing determination, or 
265.8   waiver thereof, through a disqualification consent agreement, or 
265.9   as part of any approved diversion plan under section 401.065, or 
265.10  any court ordered stay which carries with it any probationary or 
265.11  other conditions, in the aid to families with dependent children 
265.12  program, the Minnesota family assistance program-statewide, the 
265.13  food stamp program, the Minnesota family investment plan, child 
265.14  care program, the general assistance or family general 
265.15  assistance program, or the Minnesota supplemental aid program, 
265.16  or the work readiness program shall be disqualified from that 
265.17  program.  The needs of that individual shall not be taken into 
265.18  consideration in determining the grant level for that assistance 
265.19  unit:  
265.20     (1) for six months one year after the first offense; 
265.21     (2) for 12 months two years after the second offense; and 
265.22     (3) permanently after the third or subsequent offense.  
265.23     The period of program disqualification shall begin on the 
265.24  date stipulated on the advance notice of disqualification 
265.25  without possibility of postponement for administrative stay or 
265.26  administrative hearing and shall continue through completion 
265.27  unless and until the findings upon which the sanctions were 
265.28  imposed are reversed by a court of competent jurisdiction.  The 
265.29  period for which sanctions are imposed is not subject to 
265.30  review.  The sanctions provided under this subdivision are in 
265.31  addition to, and not in substitution for, any other sanctions 
265.32  that may be provided for by law for the offense involved.  A 
265.33  disqualification established through hearing or waiver shall 
265.34  result in the disqualification period beginning immediately 
265.35  unless the person has become otherwise ineligible for 
265.36  assistance.  If the person is ineligible for assistance, the 
266.1   disqualification period begins when the person again meets the 
266.2   eligibility criteria of the program from which they were 
266.3   disqualified and makes application for that program. 
266.4      Sec. 11.  Minnesota Statutes 1996, section 256.983, 
266.5   subdivision 1, is amended to read: 
266.6      Subdivision 1.  [PROGRAMS ESTABLISHED.] Within the limits 
266.7   of available appropriations, and to the extent required or 
266.8   authorized by applicable federal regulations, the commissioner 
266.9   of human services shall require the establishment maintenance of 
266.10  budget neutral fraud prevention investigation programs in the 
266.11  seven counties participating in the fraud prevention 
266.12  investigation pilot project established under this section, and 
266.13  in 11 additional Minnesota counties with the largest aid to 
266.14  families with dependent children program caseloads as of July 1, 
266.15  1991.  If funds are sufficient, the commissioner may also extend 
266.16  fraud prevention investigation programs to:  (1) other 
266.17  counties that have welfare fraud control programs already in 
266.18  place based on enhanced funding contracts covering the fraud 
266.19  investigation function; and (2) counties that have the largest 
266.20  AFDC caseloads as of July 1, 1994, and are not currently 
266.21  participating in the fraud prevention investigation pilot 
266.22  project.  The pilot project may be expanded provided the 
266.23  expansion is budget neutral to the state. 
266.24     Sec. 12.  Minnesota Statutes 1996, section 256.983, 
266.25  subdivision 4, is amended to read: 
266.26     Subd. 4.  [FUNDING.] (a) Every involved county agency shall 
266.27  either have in place or obtain an approved contract which meets 
266.28  all federal requirements necessary to obtain enhanced federal 
266.29  funding for its welfare fraud control and fraud prevention 
266.30  investigation programs.  County agency reimbursement shall be 
266.31  made through the settlement provisions applicable to the aid to 
266.32  families with dependent children and program, food 
266.33  stamp programs program, Minnesota family investment 
266.34  program-statewide, and medical assistance program and other 
266.35  federal and state funded programs. 
266.36     (b) After allowing an opportunity to establish compliance, 
267.1   The commissioner will deny administrative reimbursement maintain 
267.2   program compliance if for any three-month three consecutive 
267.3   month period during any grant year, a county agency fails to 
267.4   comply with fraud prevention investigation program guidelines, 
267.5   or fails to meet the cost-effectiveness standards developed by 
267.6   the commissioner.  This result is contingent on the commissioner 
267.7   providing written notice, including an offer of technical 
267.8   assistance, within 30 days of the end of the third or subsequent 
267.9   month of noncompliance.  The county agency shall be required to 
267.10  submit a corrective action plan to the commissioner within 30 
267.11  days of receipt of a notice of noncompliance.  Failure to submit 
267.12  a corrective action plan or, continued deviation from standards 
267.13  of more than ten percent after submission of a corrective action 
267.14  plan, will result in denial of funding for each subsequent month 
267.15  during the grant year, or billing the county agency for fraud 
267.16  prevention investigation (FPI) service provided by the 
267.17  commissioner or reallocation of program grant funds, or 
267.18  investigative resources, or both, to other counties.  The denial 
267.19  of funding shall apply to the general settlement received by the 
267.20  county agency on a quarterly basis and shall not reduce the 
267.21  grant amount applicable to the FPI project.  
267.22     Sec. 13.  Minnesota Statutes 1996, section 256.984, 
267.23  subdivision 1, is amended to read: 
267.24     Subdivision 1.  [DECLARATION.] Every application for public 
267.25  assistance under this chapter or chapters 256B, 256D, 256K, or 
267.26  MFIP-S or food stamps under chapter 393 shall be in writing or 
267.27  reduced to writing as prescribed by the state agency and shall 
267.28  contain the following declaration which shall be signed by the 
267.29  applicant: 
267.30     "I declare under the penalties of perjury that this 
267.31     application has been examined by me and to the best of my 
267.32     knowledge is a true and correct statement of every material 
267.33     point.  I understand that a person convicted of perjury may 
267.34     be sentenced to imprisonment of not more than five years or 
267.35     to payment of a fine of not more than $10,000, or both." 
267.36     Sec. 14.  Minnesota Statutes 1996, section 256.986, is 
268.1   amended to read: 
268.2      256.986 [COUNTY COORDINATION OF FRAUD CONTROL ACTIVITIES.] 
268.3      (a) The county agency shall prepare and submit to the 
268.4   commissioner of human services by January 1 April 30 of each 
268.5   state fiscal year a plan to coordinate county duties related to 
268.6   the prevention, investigation, and prosecution of fraud in 
268.7   public assistance programs.  Plans may be submitted on a 
268.8   voluntary basis prior to January 1, 1996.  Each county must 
268.9   submit its first annual plan prior to January 1, 1997 April 30, 
268.10  1998. 
268.11     (b) Within the limits of appropriations specifically made 
268.12  available for this purpose, the commissioner may make grants to 
268.13  counties submitting plans under paragraph (a) to implement 
268.14  coordination activities. 
268.15     Sec. 15.  Minnesota Statutes 1996, section 256.9861, 
268.16  subdivision 1, is amended to read: 
268.17     Subdivision 1.  [PROGRAM ESTABLISHED.] Within the limits of 
268.18  available state and federal appropriations, and to the extent 
268.19  required or authorized by applicable federal regulations, the 
268.20  commissioner of human services shall make funding available to 
268.21  county agencies for the establishment of program integrity 
268.22  reinvestment initiatives.  The project shall initially be 
268.23  limited to those county agencies participating in federally 
268.24  funded optional fraud control programs as of January 1, 
268.25  1995 fraud control efforts and require the maintenance of county 
268.26  efforts and financial contribution that were in place during 
268.27  fiscal year 1996.  
268.28     Sec. 16.  Minnesota Statutes 1996, section 256.9861, 
268.29  subdivision 2, is amended to read: 
268.30     Subd. 2.  [COUNTY PROPOSALS.] Each included county shall 
268.31  develop and submit annual funding, staffing, and operating grant 
268.32  proposals to the commissioner no later than April 30 of each 
268.33  year for the purpose of allocating federal and state funding and 
268.34  appropriations.  For the first operating year only, the proposal 
268.35  shall be submitted no later than October 30.  Each proposal 
268.36  shall provide information on: 
269.1      (1) the staffing and funding of the fraud investigation and 
269.2   prosecution operations; 
269.3      (2) job descriptions for agency fraud control staff; 
269.4      (3) contracts covering outside investigative agencies; 
269.5      (4) operational methods to integrate the use of fraud 
269.6   prevention investigation techniques; and 
269.7      (5) implementation and utilization of administrative 
269.8   disqualification hearings and diversions into by the existing 
269.9   county fraud control and prosecution procedures.  
269.10     Sec. 17.  Minnesota Statutes 1996, section 256.9861, 
269.11  subdivision 4, is amended to read: 
269.12     Subd. 4.  [STANDARDS.] The commissioner shall, after 
269.13  consultation with the involved counties, establish standards 
269.14  governing the performance levels of involved county 
269.15  investigative units based on grant agreements negotiated with 
269.16  the involved county agencies.  The standards shall take into 
269.17  consideration and may include investigative caseloads, grant 
269.18  savings levels, the comparison of fraud prevention and 
269.19  prosecution directed investigations, utilization levels of 
269.20  administrative disqualification hearings, the timely reporting 
269.21  and implementation of disqualifications, and the timeliness 
269.22  of the submission of statistical reports received from 
269.23  prosecutors.  
269.24     Sec. 18.  Minnesota Statutes 1996, section 256.9861, 
269.25  subdivision 5, is amended to read: 
269.26     Subd. 5.  [FUNDING.] (a) Grant funds are intended to help 
269.27  offset the reduction in federal financial participation to 50 
269.28  percent and may be apportioned to the participating counties 
269.29  whenever feasible, and within the commissioner's discretion, to 
269.30  achieve this goal.  State funding shall be made available 
269.31  contingent on counties submitting a plan that is approved by the 
269.32  department of human services.  Failure or delay in obtaining 
269.33  that approval shall not, however, eliminate the obligation to 
269.34  maintain fraud control efforts at the January 1, 1995 June 30, 
269.35  1996, level.  Additional counties may be added to the project to 
269.36  the extent that funds are subsequently made available.  Every 
270.1   involved county must meet all federal requirements necessary to 
270.2   obtain federal funding for its welfare fraud control and 
270.3   prevention programs.  County agency reimbursement shall be made 
270.4   through the settlement provisions applicable to the AFDC and, 
270.5   MFIP-S, food stamp and medical assistance programs.  
270.6      (b) Should a county agency fail to comply with the 
270.7   standards set, or fail to meet cost-effectiveness standards 
270.8   developed by the commissioner for three months during any grant 
270.9   year any three-month period, the commissioner shall deny 
270.10  reimbursement or administrative costs, after allowing an 
270.11  opportunity to establish compliance.  
270.12     (c) Any denial of reimbursement under paragraph (b) is 
270.13  contingent on the commissioner providing written notice, 
270.14  including an offer of technical assistance, within 30 days of 
270.15  the end of the third or subsequent months of noncompliance.  The 
270.16  county agency shall be required to submit a corrective action 
270.17  plan to the commissioner within 30 days of receipt of a notice 
270.18  of noncompliance.  Failure to submit a corrective action plan or 
270.19  continued deviation from standards of more than ten percent 
270.20  after submission of corrective action plan, will result in 
270.21  denial of funding for each such month during the grant year, or 
270.22  billing of the county agency for program integrity reinvestment 
270.23  project services provided by the commissioner or reallocation of 
270.24  grant funds to other counties.  The denial of funding shall 
270.25  apply to the general settlement received by the county agency on 
270.26  a quarterly basis and shall not reduce the grant amount 
270.27  applicable to the program integrity reinvestment project. 
270.28     Sec. 19.  [256.9863] [ASSISTANCE TRANSACTION CARD; 
270.29  PRESUMPTION OF RECEIPT OF BENEFITS.] 
270.30     Any person in whose name an assistance transaction card has 
270.31  been issued shall be presumed to have received the benefit of 
270.32  all transactions involving that card.  This presumption applies 
270.33  in all situations unless the card in question has been reported 
270.34  lost or stolen by the cardholder.  This presumption may be 
270.35  overcome by a preponderance of evidence indicating that the card 
270.36  was neither used by nor with the consent of the cardholder.  
271.1   Overcoming this presumption does not create any new or 
271.2   additional payment obligation not otherwise established in law, 
271.3   rule, or regulation. 
271.4      Sec. 20.  [256.9864] [REPORTS BY RECIPIENT.] 
271.5      (a) An assistance unit with a recent work history or with 
271.6   earned income shall report monthly to the county agency on 
271.7   income received and other circumstances affecting eligibility or 
271.8   assistance amounts.  All other assistance units shall report on 
271.9   income and other circumstances affecting eligibility and 
271.10  assistance amounts as specified by the state agency. 
271.11     (b) An assistance unit required to submit a report on the 
271.12  form designated by the commissioner and within ten days of the 
271.13  due date or the date of the significant change, whichever is 
271.14  later, or otherwise report significant changes which would 
271.15  affect eligibility or assistance amounts, is considered to have 
271.16  continued its application for assistance effective the date the 
271.17  required report is received by the county agency, if a complete 
271.18  report is received within a calendar month in which assistance 
271.19  was received, except that no assistance shall be paid for the 
271.20  period beginning with the end of the month in which the report 
271.21  was due and ending with the date the report was received by the 
271.22  county agency. 
271.23     Sec. 21.  [256.9865] [RECOVERY OF OVERPAYMENTS AND ATM 
271.24  ERRORS.] 
271.25     Subdivision 1.  [OBLIGATION TO RECOVER.] If an amount of 
271.26  MFIP-S assistance is paid to a recipient in excess of the 
271.27  payment due, it shall be recoverable by the county agency.  This 
271.28  recovery authority also extends to preexisting claims or newly 
271.29  discovered claims established under the AFDC program in effect 
271.30  on January 1, 1997.  The agency shall give written notice to the 
271.31  recipient of its intention to recover the overpayment.  County 
271.32  agency efforts and financial contributions shall be maintained 
271.33  at the level in place during fiscal year 1996. 
271.34     Subd. 2.  [VOLUNTARY REPAYMENTS.] Overpayments may also be 
271.35  voluntarily repaid, in part or in full, by the individual, in 
271.36  addition to the aid reductions in subdivision 2, to include 
272.1   further voluntary reductions in the grant level agreed to in 
272.2   writing by the individual, until the total amount of the 
272.3   overpayment is repaid. 
272.4      Subd. 3.  [CLOSED CASE RECOVERIES.] The county agency shall 
272.5   make reasonable efforts to recover overpayments to persons no 
272.6   longer on assistance according to standards adopted by rule by 
272.7   the commissioner of human services.  The county agency need not 
272.8   attempt to recover overpayments of less than $35 paid to an 
272.9   individual no longer on assistance unless the individual has 
272.10  been convicted of fraud under section 256.98. 
272.11     Sec. 22.  [256.9866] [COMMUNITY SERVICE AS A COUNTY 
272.12  OBLIGATION.] 
272.13     Community service shall be an acceptable sentencing option 
272.14  but shall not reduce the state or federal share of any amount to 
272.15  be repaid or any subsequent recovery.  Any reduction or offset 
272.16  of any such amount ordered by a court shall be treated as 
272.17  follows: 
272.18     (1) any reduction in an overpayment amount, to include the 
272.19  amount ordered as restitution, shall not reduce the underlying 
272.20  amount established as an overpayment by the state or county 
272.21  agency; 
272.22     (2) total overpayments shall continue as a debt owed and 
272.23  may be recovered by any civil or administrative means otherwise 
272.24  available to the state or county agency; and 
272.25     (3) any amount ordered to be offset against any overpayment 
272.26  shall be deducted from the county share only of any recovery and 
272.27  shall be based on the prevailing state minimum wage.  To the 
272.28  extent that any deduction is in fact made against any state or 
272.29  county share, it shall be reimbursed from the county share of 
272.30  payments to be made under section 256.025. 
272.31     Sec. 23.  Minnesota Statutes 1996, section 256D.09, 
272.32  subdivision 6, is amended to read: 
272.33     Subd. 6.  [RECOVERY OF OVERPAYMENTS.] (a) If an amount of 
272.34  general assistance or family general assistance is paid to a 
272.35  recipient in excess of the payment due, it shall be recoverable 
272.36  by the county agency.  The agency shall give written notice to 
273.1   the recipient of its intention to recover the overpayment. 
273.2      (b) When an overpayment occurs, the county agency shall 
273.3   recover the overpayment from a current recipient by reducing the 
273.4   amount of aid payable to the assistance unit of which the 
273.5   recipient is a member, for one or more monthly assistance 
273.6   payments, until the overpayment is repaid.  All county agencies 
273.7   in the state shall reduce the assistance payment by three 
273.8   percent of the assistance unit's standard of need in nonfraud 
273.9   cases and ten percent where fraud has occurred, or the amount of 
273.10  the monthly payment, whichever is less, for all overpayments. 
273.11  whether or not the overpayment is due solely to agency error.  
273.12  The amount of this reduction is ten percent, if the overpayment 
273.13  is due solely to having wrongfully obtained assistance, whether 
273.14  based on: 
273.15     (1) a court order; 
273.16     (2) the finding of an administrative fraud disqualification 
273.17  hearing or the waiver of such a hearing; or 
273.18     (3) a confession or judgment containing an admission of an 
273.19  intentional program violation. 
273.20     (c) In cases when there is both an overpayment and 
273.21  underpayment, the county agency shall offset one against the 
273.22  other in correcting the payment. 
273.23     (d) Overpayments may also be voluntarily repaid, in part or 
273.24  in full, by the individual, in addition to the aid reductions 
273.25  provided in this subdivision, to include further voluntary 
273.26  reductions in the grant level agreed to in writing by the 
273.27  individual, until the total amount of the overpayment is repaid. 
273.28     (e) The county agency shall make reasonable efforts to 
273.29  recover overpayments to persons no longer on assistance under 
273.30  standards adopted in rule by the commissioner of human 
273.31  services.  The county agency need not attempt to recover 
273.32  overpayments of less than $35 paid to an individual no longer on 
273.33  assistance if the individual does not receive assistance again 
273.34  within three years, unless the individual has been convicted of 
273.35  violating section 256.98. 
273.36     Sec. 24.  Minnesota Statutes 1996, section 270A.03, 
274.1   subdivision 5, is amended to read: 
274.2      Subd. 5.  [DEBT.] "Debt" means a legal obligation of a 
274.3   natural person to pay a fixed and certain amount of money, which 
274.4   equals or exceeds $25 and which is due and payable to a claimant 
274.5   agency.  The term includes criminal fines imposed under section 
274.6   609.10 or 609.125 and restitution.  A debt may arise under a 
274.7   contractual or statutory obligation, a court order, or other 
274.8   legal obligation, but need not have been reduced to judgment.  
274.9      A debt does not include includes any legal obligation of a 
274.10  current recipient of assistance which is based on overpayment of 
274.11  an assistance grant where that payment is based on a client 
274.12  waiver or an administrative or judicial finding of an 
274.13  intentional program violation, or where the debt is owed to a 
274.14  program wherein the debtor is not a client at the time 
274.15  notification is provided to initiate recovery under this chapter.
274.16     A debt does not include any legal obligation to pay a 
274.17  claimant agency for medical care, including hospitalization if 
274.18  the income of the debtor at the time when the medical care was 
274.19  rendered does not exceed the following amount: 
274.20     (1) for an unmarried debtor, an income of $6,400 or less; 
274.21     (2) for a debtor with one dependent, an income of $8,200 or 
274.22  less; 
274.23     (3) for a debtor with two dependents, an income of $9,700 
274.24  or less; 
274.25     (4) for a debtor with three dependents, an income of 
274.26  $11,000 or less; 
274.27     (5) for a debtor with four dependents, an income of $11,600 
274.28  or less; and 
274.29     (6) for a debtor with five or more dependents, an income of 
274.30  $12,100 or less.  
274.31     The income amounts in this subdivision shall be adjusted 
274.32  for inflation for debts incurred in calendar years 1991 and 
274.33  thereafter.  The dollar amount of each income level that applied 
274.34  to debts incurred in the prior year shall be increased in the 
274.35  same manner as provided in section 290.06, subdivision 2d, for 
274.36  the expansion of the tax rate brackets. 
275.1      Sec. 25.  Minnesota Statutes 1996, section 375.21, 
275.2   subdivision 1, is amended to read: 
275.3      Subdivision 1.  [PROCEDURE, CONDITIONS.] When required by 
275.4   the dollar limitations of section 471.345, a contract for work 
275.5   or labor, or to purchase furniture, fixtures, or other property, 
275.6   or to construct or repair roads, bridges, or buildings shall be 
275.7   made by a county board only after advertising for bids or 
275.8   proposals in a qualified legal newspaper of the county.  For the 
275.9   purchase of property or for work and labor, two weeks published 
275.10  notice that proposals will be received, stating the time and 
275.11  place, shall be given.  For the construction or repair of roads, 
275.12  bridges, or buildings, three weeks published notice shall be 
275.13  given.  The notice shall state the time and place of awarding 
275.14  the contract and contain a brief description of the work.  Every 
275.15  contract shall be awarded to the lowest responsible bidder and 
275.16  duly executed in writing.  The county may, by board resolution, 
275.17  determine a wage rate that must be met or exceeded for a bidder 
275.18  to be a responsible bidder for each contract let.  The wage rate 
275.19  may be calculated to consider a rate sufficient to allow the 
275.20  bidder's employees to live without public assistance under 
275.21  chapter 256J.  The person to whom a contract is awarded for work 
275.22  or labor or for the construction or repair of roads, bridges, or 
275.23  buildings shall give a sufficient bond to the board for its 
275.24  faithful performance.  If no satisfactory bid is received, the 
275.25  board may readvertise.  
275.26     An advertised standard requirement price contract for 
275.27  supplies or services established by competitive bids may contain 
275.28  an escalation clause and may provide for a negotiated price 
275.29  increase or decrease.  The escalation or negotiated change shall 
275.30  be based upon a demonstrable industrywide or regional increase 
275.31  or decrease in the vendor's costs.  
275.32     Every contract made without compliance with this section is 
275.33  void.  
275.34     In case of an emergency arising from the destruction or 
275.35  impassability of roads or bridges by floods, rain or snow, or 
275.36  other casualty, or from the breaking or damaging of any property 
276.1   in the county, if the public health, safety, or welfare would 
276.2   suffer by delay, contracts for purchase or repairs may be made 
276.3   without advertising for bids, but in that case the action of the 
276.4   board shall be recorded in its official proceedings. 
276.5      Sec. 26.  Minnesota Statutes 1996, section 388.23, 
276.6   subdivision 1, is amended to read: 
276.7      Subdivision 1.  [AUTHORITY.] The county attorney, or any 
276.8   deputy or assistant county attorney whom the county attorney 
276.9   authorizes in writing, has the authority to subpoena and require 
276.10  the production of any records of telephone companies, cellular 
276.11  phone companies, paging companies, electric companies, gas 
276.12  companies, water utilities, chemical suppliers, hotels and 
276.13  motels, pawn shops, airlines, buses, taxis, and other entities 
276.14  engaged in the business of transporting people, and freight 
276.15  companies, warehousing companies, self-service storage 
276.16  facilities, package delivery companies, and other entities 
276.17  engaged in the businesses of transport, storage, or delivery, 
276.18  and records of the existence of safe deposit box account numbers 
276.19  and customer savings and checking account numbers maintained by 
276.20  financial institutions and safe deposit companies, insurance 
276.21  records relating to the monetary payment or settlement of 
276.22  claims, and wage and employment records of an applicant or 
276.23  recipient of public assistance who is the subject of a welfare 
276.24  fraud investigation relating to eligibility information for 
276.25  public assistance programs.  Subpoenas may only be issued for 
276.26  records that are relevant to an ongoing legitimate law 
276.27  enforcement investigation.  Administrative subpoenas may only be 
276.28  issued in welfare fraud cases if there is probable cause to 
276.29  believe a crime has been committed.  This provision applies only 
276.30  to the records of business entities and does not extend to 
276.31  private individuals or their dwellings.  Subpoenas may only be 
276.32  served by peace officers as defined by section 626.84, 
276.33  subdivision 1, paragraph (c). 
276.34     Sec. 27.  Minnesota Statutes 1996, section 393.07, 
276.35  subdivision 10, is amended to read: 
276.36     Subd. 10.  [FEDERAL FOOD STAMP PROGRAM AND THE MATERNAL AND 
277.1   CHILD NUTRITION ACT.] (a) The local social services agency shall 
277.2   establish and administer the food stamp program pursuant 
277.3   according to rules of the commissioner of human services, the 
277.4   supervision of the commissioner as specified in section 256.01, 
277.5   and all federal laws and regulations.  The commissioner of human 
277.6   services shall monitor food stamp program delivery on an ongoing 
277.7   basis to ensure that each county complies with federal laws and 
277.8   regulations.  Program requirements to be monitored include, but 
277.9   are not limited to, number of applications, number of approvals, 
277.10  number of cases pending, length of time required to process each 
277.11  application and deliver benefits, number of applicants eligible 
277.12  for expedited issuance, length of time required to process and 
277.13  deliver expedited issuance, number of terminations and reasons 
277.14  for terminations, client profiles by age, household composition 
277.15  and income level and sources, and the use of phone certification 
277.16  and home visits.  The commissioner shall determine the 
277.17  county-by-county and statewide participation rate.  
277.18     (b) On July 1 of each year, the commissioner of human 
277.19  services shall determine a statewide and county-by-county food 
277.20  stamp program participation rate.  The commissioner may 
277.21  designate a different agency to administer the food stamp 
277.22  program in a county if the agency administering the program 
277.23  fails to increase the food stamp program participation rate 
277.24  among families or eligible individuals, or comply with all 
277.25  federal laws and regulations governing the food stamp program.  
277.26  The commissioner shall review agency performance annually to 
277.27  determine compliance with this paragraph. 
277.28     (c) A person who commits any of the following acts has 
277.29  violated section 256.98 or 609.821, or both, and is subject to 
277.30  both the criminal and civil penalties provided under those 
277.31  sections: 
277.32     (1) obtains or attempts to obtain, or aids or abets any 
277.33  person to obtain by means of a willfully false willful statement 
277.34  or representation misrepresentation, or intentional concealment 
277.35  of a material fact, food stamps or vouchers issued according to 
277.36  sections 145.891 to 145.897 to which the person is not entitled 
278.1   or in an amount greater than that to which that person is 
278.2   entitled or which specify nutritional supplements to which that 
278.3   person is not entitled; or 
278.4      (2) presents or causes to be presented, coupons or vouchers 
278.5   issued according to sections 145.891 to 145.897 for payment or 
278.6   redemption knowing them to have been received, transferred or 
278.7   used in a manner contrary to existing state or federal law; or 
278.8      (3) willfully uses, possesses, or transfers food stamp 
278.9   coupons or, authorization to purchase cards or vouchers issued 
278.10  according to sections 145.891 to 145.897 in any manner contrary 
278.11  to existing state or federal law, rules, or regulations; or 
278.12     (4) buys or sells food stamp coupons, authorization to 
278.13  purchase cards or, other assistance transaction devices, 
278.14  vouchers issued according to sections 145.891 to 145.897, or any 
278.15  food obtained through the redemption of vouchers issued 
278.16  according to sections 145.891 to 145.897 for cash or 
278.17  consideration other than eligible food. 
278.18     (d) A peace officer or welfare fraud investigator may 
278.19  confiscate food stamps, authorization to purchase cards, or 
278.20  other assistance transaction devices found in the possession of 
278.21  any person who is neither a recipient of the food stamp program 
278.22  nor otherwise authorized to possess and use such materials.  
278.23  Confiscated property shall be disposed of as the commissioner 
278.24  may direct and consistent with state and federal food stamp 
278.25  law.  The confiscated property must be retained for a period of 
278.26  not less than 30 days to allow any affected person to appeal the 
278.27  confiscation under section 256.045. 
278.28     (e) Food stamp overpayment claims which are due in whole or 
278.29  in part to client error shall be established by the county 
278.30  agency for a period of six years from the date of any resultant 
278.31  overpayment.  
278.32     (f) With regard to the federal tax revenue offset program 
278.33  only, recovery incentives authorized by the federal food and 
278.34  consumer service shall be retained at the rate of 50 percent by 
278.35  the state agency and 50 percent by the certifying county agency. 
278.36     (g) A peace officer, welfare fraud investigator, federal 
279.1   law enforcement official, or the commissioner of health may 
279.2   confiscate vouchers found in the possession of any person who is 
279.3   neither issued vouchers under sections 145.891 to 145.897, nor 
279.4   otherwise authorized to possess and use such vouchers.  
279.5   Confiscated property shall be disposed of as the commissioner of 
279.6   health may direct and consistent with state and federal law.  
279.7   The confiscated property must be retained for a period of not 
279.8   less than 30 days. 
279.9      Sec. 28.  [FUNDING AVAILABILITY.] 
279.10     Unexpended funds appropriated for the provision of program 
279.11  integrity activities for fiscal year 1998 will also be available 
279.12  to the commissioner to fund fraud prevention and control 
279.13  initiatives and do not cancel but are available to the 
279.14  commissioner for these purposes for fiscal year 1999.  
279.15  Unexpended funds may be transferred between the fraud prevention 
279.16  investigation program and fraud control programs to promote the 
279.17  provisions of sections 256.983 and 256.9861. 
279.18     Sec. 29.  [UNDOCUMENTED PERSONS NOTIFICATION.] 
279.19     County agencies in consultation with the department of 
279.20  human services shall provide notification to undocumented 
279.21  persons regarding the release of personal data and develop 
279.22  protocols regarding the release or sharing of data about 
279.23  undocumented persons with the Immigration and Naturalization 
279.24  Service (INS) according to sections 404, 434, and 411A of the 
279.25  Personal Responsibility and Work Opportunity Reconciliation Act 
279.26  of 1996. 
279.27     Sec. 30.  [EFFECTIVE DATE.] 
279.28     Sections 1 to 28 are effective July 1, 1997.