1.1                          A bill for an act 
  1.2             relating to human services; changing provisions in the 
  1.3             Minnesota family investment program; indexing MFIP 
  1.4             earned income disregard; enhancing employment 
  1.5             services; proposing a performance management system 
  1.6             for MFIP; continuing Minnesota food assistance program 
  1.7             and the food portion of MFIP for legal noncitizens; 
  1.8             changing food stamp employment and training programs; 
  1.9             proposing a TANF administrative cap to counties; 
  1.10            amending Minnesota Statutes 1998, sections 256D.051, 
  1.11            subdivision 2a, and by adding a subdivision; 256D.053, 
  1.12            subdivision 1; 256D.06, subdivision 5; 256J.08, 
  1.13            subdivisions 11, 24, 65, 83, 86a, and by adding 
  1.14            subdivisions; 256J.11, subdivisions 2 and 3; 256J.12, 
  1.15            subdivisions 1a and 2; 256J.14; 256J.20, subdivision 
  1.16            3; 256J.21, subdivisions 2, 3, and 4; 256J.24, 
  1.17            subdivisions 2, 3, 7, 8, 9, and by adding a 
  1.18            subdivision; 256J.26, subdivision 1; 256J.30, 
  1.19            subdivisions 8 and 9; 256J.31, subdivisions 5 and 12; 
  1.20            256J.32, subdivisions 4 and 6; 256J.34, subdivisions 
  1.21            1, 3, and 4; 256J.35; 256J.37, subdivisions 2, 9, and 
  1.22            10; 256J.38, subdivision 4; 256J.39, subdivision 2; 
  1.23            256J.42, subdivisions 1 and 5; 256J.43, subdivision 4; 
  1.24            256J.45, subdivision 1; 256J.46, subdivisions 1, 2, 
  1.25            and 2a; 256J.48, subdivisions 2 and 3; 256J.50, 
  1.26            subdivision 1; 256J.515; 256J.52, subdivisions 1 and 
  1.27            4; 256J.55, subdivision 4; 256J.56; 256J.62, 
  1.28            subdivisions 1, 6, 7, 8, 9, and by adding a 
  1.29            subdivision; 256J.74, subdivision 2; and 256J.76, 
  1.30            subdivisions 1, 2, and 4; proposing coding for new law 
  1.31            in Minnesota Statutes, chapter 256J; repealing 
  1.32            Minnesota Statutes 1998, sections 256D.051, 
  1.33            subdivisions 6 and 19; 256D.053, subdivision 4; 
  1.34            256J.396; and 256J.62, subdivisions 2, 3, and 5. 
  1.35  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.36     Section 1.  Minnesota Statutes 1998, section 256D.051, 
  1.37  subdivision 2a, is amended to read: 
  1.38     Subd. 2a.  [DUTIES OF COMMISSIONER.] In addition to any 
  1.39  other duties imposed by law, the commissioner shall: 
  1.40     (1) based on this section and section 256D.052 and Code of 
  2.1   Federal Regulations, title 7, section 273.7, supervise the 
  2.2   administration of food stamp employment and training services to 
  2.3   county agencies; 
  2.4      (2) disburse money appropriated for food stamp employment 
  2.5   and training services to county agencies based upon the county's 
  2.6   costs as specified in section 256D.06 256D.051, subdivision 6c; 
  2.7      (3) accept and supervise the disbursement of any funds that 
  2.8   may be provided by the federal government or from other sources 
  2.9   for use in this state for food stamp employment and training 
  2.10  services; 
  2.11     (4) cooperate with other agencies including any agency of 
  2.12  the United States or of another state in all matters concerning 
  2.13  the powers and duties of the commissioner under this section and 
  2.14  section 256D.052; and 
  2.15     (5) in cooperation with the commissioner of economic 
  2.16  security, ensure that each component of an employment and 
  2.17  training program carried out under this section is delivered 
  2.18  through a statewide workforce development system, unless the 
  2.19  component is not available locally through such a system. 
  2.20     Sec. 2.  Minnesota Statutes 1998, section 256D.051, is 
  2.21  amended by adding a subdivision to read: 
  2.22     Subd. 6c.  [PROGRAM FUNDING.] Within the limits of 
  2.23  available resources, the commissioner shall reimburse the actual 
  2.24  costs of county agencies and their employment and training 
  2.25  service providers for the provision of food stamp employment and 
  2.26  training services, including participant support services, 
  2.27  direct program services, and program administrative activities.  
  2.28  No more than 15 percent of program funds may be used for 
  2.29  administrative activities.  The county agency may expend county 
  2.30  funds in excess of the limits of this subdivision without state 
  2.31  reimbursement. 
  2.32     Program funds shall be allocated based on the county's 
  2.33  average number of food stamp cases as compared to the statewide 
  2.34  total number of such cases.  The average number of cases shall 
  2.35  be based on counts of cases as of March 31, June 30, September 
  2.36  30, and December 31 of the previous calendar year.  The 
  3.1   commissioner may reallocate unexpended money appropriated under 
  3.2   this section to those county agencies that demonstrate a need 
  3.3   for additional funds. 
  3.4      Sec. 3.  Minnesota Statutes 1998, section 256D.053, 
  3.5   subdivision 1, is amended to read: 
  3.6      Subdivision 1.  [PROGRAM ESTABLISHED.] For the period of 
  3.7   July 1, 1998, to June 30, 1999, The Minnesota food assistance 
  3.8   program is established to provide food assistance to legal 
  3.9   noncitizens residing in this state who are ineligible to 
  3.10  participate in the federal Food Stamp Program solely due to the 
  3.11  provisions of section 402 or 403 of Public Law Number 104-193, 
  3.12  as authorized by Title VII of the 1997 Emergency Supplemental 
  3.13  Appropriations Act, Public Law Number 105-18, and as amended by 
  3.14  Public Law Number 105-185. 
  3.15     Sec. 4.  Minnesota Statutes 1998, section 256D.06, 
  3.16  subdivision 5, is amended to read: 
  3.17     Subd. 5.  Any applicant, otherwise eligible for general 
  3.18  assistance and possibly eligible for maintenance benefits from 
  3.19  any other source shall (a) make application for those benefits 
  3.20  within 30 days of the general assistance application; and (b) 
  3.21  execute an interim assistance authorization agreement on a form 
  3.22  as directed by the commissioner.  The commissioner shall review 
  3.23  a denial of an application for other maintenance benefits and 
  3.24  may require a recipient of general assistance to file an appeal 
  3.25  of the denial if appropriate.  If found eligible for benefits 
  3.26  from other sources, and a payment received from another source 
  3.27  relates to the period during which general assistance was also 
  3.28  being received, the recipient shall be required to reimburse the 
  3.29  county agency for the interim assistance paid.  Reimbursement 
  3.30  shall not exceed the amount of general assistance paid during 
  3.31  the time period to which the other maintenance benefits apply 
  3.32  and shall not exceed the state standard applicable to that time 
  3.33  period.  The commissioner shall adopt rules authorizing county 
  3.34  agencies or other client representatives to retain from the 
  3.35  amount recovered under an interim assistance agreement 25 
  3.36  percent plus actual reasonable fees, costs, and disbursements of 
  4.1   appeals and litigation, of providing special assistance to the 
  4.2   recipient in processing the recipient's claim for maintenance 
  4.3   benefits from another source.  The money retained under this 
  4.4   section shall be from the state share of the recovery.  The 
  4.5   commissioner or the county agency may contract with qualified 
  4.6   persons to provide the special assistance.  The rules adopted by 
  4.7   the commissioner shall include the methods by which county 
  4.8   agencies shall identify, refer, and assist recipients who may be 
  4.9   eligible for benefits under federal programs for the disabled.  
  4.10  This subdivision does not require repayment of per diem payments 
  4.11  made to shelters for battered women pursuant to section 256D.05, 
  4.12  subdivision 3. 
  4.13     Sec. 5.  Minnesota Statutes 1998, section 256J.08, is 
  4.14  amended by adding a subdivision to read: 
  4.15     Subd. 4a.  [APPLICABLE STANDARD.] "Applicable standard" 
  4.16  means the appropriate standard used to determine MFIP benefit 
  4.17  payments for the MFIP unit and applies to the: 
  4.18     (1) transitional standard, sections 256J.08, subdivision 
  4.19  85, and 256J.24, subdivision 5; 
  4.20     (2) family wage level standard, section 256J.24, 
  4.21  subdivision 7; 
  4.22     (3) shared household standard, section 256J.24, subdivision 
  4.23  9; and 
  4.24     (4) interstate payment standard, section 256J.43. 
  4.25     Sec. 6.  Minnesota Statutes 1998, section 256J.08, 
  4.26  subdivision 11, is amended to read: 
  4.27     Subd. 11.  [CAREGIVER.] "Caregiver" means a minor child's 
  4.28  natural or adoptive parent or parents and stepparent who live in 
  4.29  the home with the minor child.  For purposes of determining 
  4.30  eligibility for this program, caregiver also means any of the 
  4.31  following individuals, if adults, who live with and provide care 
  4.32  and support to a minor child when the minor child's natural or 
  4.33  adoptive parent or parents or stepparents do not reside in the 
  4.34  same home:  legal custodian or guardian, grandfather, 
  4.35  grandmother, brother, sister, half-brother, half-sister, 
  4.36  stepbrother, stepsister, uncle, aunt, first cousin or first 
  5.1   cousin once removed, nephew, niece, person of preceding 
  5.2   generation as denoted by prefixes of "great," "great-great," or 
  5.3   "great-great-great," or a spouse of any person named in the 
  5.4   above groups even after the marriage ends by death or divorce. 
  5.5      Sec. 7.  Minnesota Statutes 1998, section 256J.08, 
  5.6   subdivision 24, is amended to read: 
  5.7      Subd. 24.  [DISREGARD.] "Disregard" means earned income 
  5.8   that is not counted when determining initial eligibility or 
  5.9   ongoing eligibility and calculating the amount of the assistance 
  5.10  payment for participants.  The commissioner shall determine the 
  5.11  amount of the disregard according to section 256J.24, 
  5.12  subdivision 10. 
  5.13     Sec. 8.  Minnesota Statutes 1998, section 256J.08, is 
  5.14  amended by adding a subdivision to read: 
  5.15     Subd. 28a.  [ENCUMBRANCE.] "Encumbrance" means a legal 
  5.16  claim against real or personal property that is payable upon the 
  5.17  sale of that property. 
  5.18     Sec. 9.  Minnesota Statutes 1998, section 256J.08, 
  5.19  subdivision 65, is amended to read: 
  5.20     Subd. 65.  [PARTICIPANT.] "Participant" means a person who 
  5.21  is currently receiving cash assistance and or the food portion 
  5.22  available through MFIP-S MFIP as funded by TANF and the food 
  5.23  stamp program.  A person who fails to withdraw or access 
  5.24  electronically any portion of the person's cash and food 
  5.25  assistance payment by the end of the payment month, who makes a 
  5.26  written request for closure before the first of a payment month 
  5.27  and repays cash and food assistance electronically issued for 
  5.28  that payment month within that payment month, or who returns any 
  5.29  uncashed assistance check and food coupons and withdraws from 
  5.30  the program is not a participant.  A person who withdraws a cash 
  5.31  or food assistance payment by electronic transfer or receives 
  5.32  and cashes a cash assistance check or food coupons and is 
  5.33  subsequently determined to be ineligible for assistance for that 
  5.34  period of time is a participant, regardless whether that 
  5.35  assistance is repaid.  The term "participant" includes the 
  5.36  caregiver relative and the minor child whose needs are included 
  6.1   in the assistance payment.  A person in an assistance unit who 
  6.2   does not receive a cash and food assistance payment because the 
  6.3   person has been suspended from MFIP-S or because the person's 
  6.4   need falls below the $10 minimum payment level MFIP is a 
  6.5   participant. 
  6.6      Sec. 10.  Minnesota Statutes 1998, section 256J.08, 
  6.7   subdivision 83, is amended to read: 
  6.8      Subd. 83.  [SIGNIFICANT CHANGE.] "Significant change" means 
  6.9   a decline in gross income of 36 percent the amount of the 
  6.10  disregard as defined in subdivision 24 or more from the income 
  6.11  used to determine the grant for the current month. 
  6.12     Sec. 11.  Minnesota Statutes 1998, section 256J.08, 
  6.13  subdivision 86a, is amended to read: 
  6.14     Subd. 86a.  [UNRELATED MEMBER.] "Unrelated member" means an 
  6.15  individual in the household who does not meet the definition of 
  6.16  an eligible caregiver, but does not include an individual who 
  6.17  provides child care to a child in the assistance unit. 
  6.18     Sec. 12.  Minnesota Statutes 1998, section 256J.11, 
  6.19  subdivision 2, is amended to read: 
  6.20     Subd. 2.  [NONCITIZENS; FOOD PORTION.] (a) For the period 
  6.21  September 1, 1997, to October 31, 1997, noncitizens who do not 
  6.22  meet one of the exemptions in section 412 of the Personal 
  6.23  Responsibility and Work Opportunity Reconciliation Act of 1996, 
  6.24  but were residing in this state as of July 1, 1997, are eligible 
  6.25  for the 6/10 of the average value of food stamps for the same 
  6.26  family size and composition until MFIP-S is operative in the 
  6.27  noncitizen's county of financial responsibility and thereafter, 
  6.28  the 6/10 of the food portion of MFIP-S.  However, federal food 
  6.29  stamp dollars cannot be used to fund the food portion of MFIP-S 
  6.30  benefits for an individual under this subdivision. 
  6.31     (b) For the period November 1, 1997, to June 30, 
  6.32  1999, Notwithstanding Laws 1998, chapter 407, article 6, section 
  6.33  111, noncitizens who do not meet one of the exemptions in 
  6.34  section 412 of the Personal Responsibility and Work Opportunity 
  6.35  Reconciliation Act of 1996, as amended by Public Law Number 
  6.36  105-185, and are receiving cash assistance under the AFDC, 
  7.1   family general assistance, MFIP or MFIP-S programs are eligible 
  7.2   for the average value of food stamps for the same family size 
  7.3   and composition until MFIP-S is operative in the noncitizen's 
  7.4   county of financial responsibility and thereafter, the food 
  7.5   portion of MFIP-S MFIP.  However, federal food stamp dollars 
  7.6   cannot be used to fund the food portion of MFIP-S MFIP benefits 
  7.7   for an individual under this subdivision.  The assistance 
  7.8   provided under this subdivision, which is designated as a 
  7.9   supplement to replace lost benefits under the federal food stamp 
  7.10  program, must be disregarded as income in all programs that do 
  7.11  not count food stamps as income where the commissioner has the 
  7.12  authority to make the income disregard determination for the 
  7.13  program. 
  7.14     (c) The commissioner shall submit a state plan to the 
  7.15  secretary of agriculture to allow the commissioner to purchase 
  7.16  federal Food Stamp Program benefits in an amount equal to the 
  7.17  MFIP-S food portion for each legal noncitizen receiving MFIP-S 
  7.18  assistance who is ineligible to participate in the federal Food 
  7.19  Stamp Program solely due to the provisions of section 402 or 403 
  7.20  of Public Law Number 104-193, as authorized by Title VII of the 
  7.21  1997 Emergency Supplemental Appropriations Act, Public Law 
  7.22  Number 105-18.  The commissioner shall enter into a contract as 
  7.23  necessary with the secretary to use the existing federal Food 
  7.24  Stamp Program benefits delivery system for the purposes of 
  7.25  administering the food portion of MFIP-S under this subdivision. 
  7.26     Sec. 13.  Minnesota Statutes 1998, section 256J.11, 
  7.27  subdivision 3, is amended to read: 
  7.28     Subd. 3.  [BENEFITS FUNDED WITH STATE MONEY.] Legal adult 
  7.29  noncitizens who have resided in the country for four years or 
  7.30  more as a lawful permanent resident, whose benefits are funded 
  7.31  entirely with state money, and who are under 70 years of age, 
  7.32  must, as a condition of eligibility: 
  7.33     (1) be enrolled in a literacy class, English as a second 
  7.34  language class, or a citizen class; 
  7.35     (2) be applying for admission to a literacy class, English 
  7.36  as a second language class, and is on a waiting list; 
  8.1      (3) be in the process of applying for a waiver from the 
  8.2   Immigration and Naturalization Service of the English language 
  8.3   or civics requirements of the citizenship test; 
  8.4      (4) have submitted an application for citizenship to the 
  8.5   Immigration and Naturalization Service and is waiting for a 
  8.6   testing date or a subsequent swearing in ceremony; or 
  8.7      (5) have been denied citizenship due to a failure to pass 
  8.8   the test after two attempts or because of an inability to 
  8.9   understand the rights and responsibilities of becoming a United 
  8.10  States citizen, as documented by the Immigration and 
  8.11  Naturalization Service or the county. 
  8.12     If the county social service agency determines that a legal 
  8.13  noncitizen subject to the requirements of this subdivision will 
  8.14  require more than one year of English language training, then 
  8.15  the requirements of clause (1) or (2) shall be imposed after the 
  8.16  legal noncitizen has resided in the country for three years.  
  8.17  Individuals who reside in a facility licensed under chapter 
  8.18  144A, 144D, 245A, or 256I are exempt from the requirements of 
  8.19  this subdivision. 
  8.20     Sec. 14.  Minnesota Statutes 1998, section 256J.12, 
  8.21  subdivision 1a, is amended to read: 
  8.22     Subd. 1a.  [30-DAY RESIDENCY REQUIREMENT.] An assistance 
  8.23  unit is considered to have established residency in this state 
  8.24  only when a child or caregiver has resided in this state for at 
  8.25  least 30 consecutive days with the intention of making the 
  8.26  person's home here and not for any temporary purpose.  The birth 
  8.27  of a child in Minnesota to a member of the assistance unit does 
  8.28  not automatically establish the residency in this state under 
  8.29  this subdivision of the other members of the assistance unit.  
  8.30  Time spent in a shelter for battered women shall count toward 
  8.31  satisfying the 30-day residency requirement. 
  8.32     Sec. 15.  Minnesota Statutes 1998, section 256J.12, 
  8.33  subdivision 2, is amended to read: 
  8.34     Subd. 2.  [EXCEPTIONS.] (a) A county shall waive the 30-day 
  8.35  residency requirement where unusual hardship would result from 
  8.36  denial of assistance. 
  9.1      (b) For purposes of this section, unusual hardship means an 
  9.2   assistance unit: 
  9.3      (1) is without alternative shelter; or 
  9.4      (2) is without available resources for food. 
  9.5      (c) For purposes of this subdivision, the following 
  9.6   definitions apply (1) "metropolitan statistical area" is as 
  9.7   defined by the U.S. Census Bureau; (2) "alternative shelter" 
  9.8   includes any shelter that is located within the metropolitan 
  9.9   statistical area containing the county and for which the family 
  9.10  is eligible, provided the assistance unit does not have to 
  9.11  travel more than 20 miles to reach the shelter and has access to 
  9.12  transportation to the shelter.  Clause (2) does not apply to 
  9.13  counties in the Minneapolis-St. Paul metropolitan statistical 
  9.14  area. 
  9.15     (d) Applicants are considered to meet the residency 
  9.16  requirement under subdivision 1a if they once resided in 
  9.17  Minnesota and: 
  9.18     (1) joined the United States armed services, returned to 
  9.19  Minnesota within 30 days of leaving the armed services, and 
  9.20  intend to remain in Minnesota; or 
  9.21     (2) left to attend school in another state, paid 
  9.22  nonresident tuition or Minnesota tuition rates under a 
  9.23  reciprocity agreement, and returned to Minnesota within 30 days 
  9.24  of graduation with the intent to remain in Minnesota. 
  9.25     (e) The 30-day residence requirement is met when: 
  9.26     (1) a minor child or a minor caregiver moves from another 
  9.27  state to the residence of a relative caregiver; and 
  9.28     (2) the minor caregiver applies for and receives family 
  9.29  cash assistance; 
  9.30     (3) the relative caregiver chooses not to be part of the 
  9.31  MFIP-S assistance unit; and 
  9.32     (4) the relative caregiver has resided in Minnesota for at 
  9.33  least 30 days prior to the date the assistance unit applies for 
  9.34  cash assistance.  
  9.35     (f) Ineligible mandatory unit members who have resided in 
  9.36  Minnesota for 12 months immediately before the unit's date of 
 10.1   application establish the other assistance unit members' 
 10.2   eligibility for the MFIP-S transitional standard. 
 10.3      (2) the relative caregiver has resided in Minnesota for at 
 10.4   least 30 consecutive days and:  
 10.5      (i) the minor caregiver applies for and receives MFIP; or 
 10.6      (ii) the relative caregiver applies for assistance for the 
 10.7   minor child but does not choose to be a member of the MFIP 
 10.8   assistance unit. 
 10.9      Sec. 16.  Minnesota Statutes 1998, section 256J.14, is 
 10.10  amended to read: 
 10.11     256J.14 [ELIGIBILITY FOR PARENTING OR PREGNANT MINORS.] 
 10.12     (a) The definitions in this paragraph only apply to this 
 10.13  subdivision. 
 10.14     (1) "Household of a parent, legal guardian, or other adult 
 10.15  relative" means the place of residence of: 
 10.16     (i) a natural or adoptive parent; 
 10.17     (ii) a legal guardian according to appointment or 
 10.18  acceptance under section 260.242, 525.615, or 525.6165, and 
 10.19  related laws; 
 10.20     (iii) a caregiver as defined in section 256J.08, 
 10.21  subdivision 11; or 
 10.22     (iv) an appropriate adult relative designated by a county 
 10.23  agency. 
 10.24     (2) "Adult-supervised supportive living arrangement" means 
 10.25  a private family setting which assumes responsibility for the 
 10.26  care and control of the minor parent and minor child, or other 
 10.27  living arrangement, not including a public institution, licensed 
 10.28  by the commissioner of human services which ensures that the 
 10.29  minor parent receives adult supervision and supportive services, 
 10.30  such as counseling, guidance, independent living skills 
 10.31  training, or supervision. 
 10.32     (b) A minor parent and the minor child who is in the care 
 10.33  of the minor parent must reside in the household of a parent, 
 10.34  legal guardian, other adult relative, or in an adult-supervised 
 10.35  supportive living arrangement in order to receive MFIP-S unless: 
 10.36     (1) the minor parent has no living parent, other adult 
 11.1   relative, or legal guardian whose whereabouts is known; 
 11.2      (2) no living parent, other adult relative, or legal 
 11.3   guardian of the minor parent allows the minor parent to live in 
 11.4   the parent's, other adult relative's, or legal guardian's home; 
 11.5      (3) the minor parent lived apart from the minor parent's 
 11.6   own parent or legal guardian for a period of at least one year 
 11.7   before either the birth of the minor child or the minor parent's 
 11.8   application for MFIP-S; 
 11.9      (4) the physical or emotional health or safety of the minor 
 11.10  parent or minor child would be jeopardized if the minor parent 
 11.11  and the minor child resided in the same residence with the minor 
 11.12  parent's parent, other adult relative, or legal guardian; or 
 11.13     (5) an adult supervised supportive living arrangement is 
 11.14  not available for the minor parent and child in the county in 
 11.15  which the minor parent and child currently reside.  If an adult 
 11.16  supervised supportive living arrangement becomes available 
 11.17  within the county, the minor parent and child must reside in 
 11.18  that arrangement. 
 11.19     (c) Minor applicants must be informed orally and in writing 
 11.20  about the eligibility requirements and their rights and 
 11.21  obligations under the MFIP-S program.  The county must advise 
 11.22  the minor of the possible exemptions and specifically ask 
 11.23  whether one or more of these exemptions is applicable.  If the 
 11.24  minor alleges one or more of these exemptions, then the county 
 11.25  must assist the minor in obtaining the necessary verifications 
 11.26  to determine whether or not these exemptions apply. 
 11.27     (d) If the county worker has reason to suspect that the 
 11.28  physical or emotional health or safety of the minor parent or 
 11.29  minor child would be jeopardized if they resided with the minor 
 11.30  parent's parent, other adult relative, or legal guardian, then 
 11.31  the county worker must make a referral to child protective 
 11.32  services to determine if paragraph (b), clause (4), applies.  A 
 11.33  new determination by the county worker is not necessary if one 
 11.34  has been made within the last six months, unless there has been 
 11.35  a significant change in circumstances which justifies a new 
 11.36  referral and determination. 
 12.1      (e) If a minor parent is not living with a parent, legal 
 12.2   guardian, or other adult relative due to paragraph (b), clause 
 12.3   (1), (2), or (4), the minor parent must reside, when possible, 
 12.4   in a living arrangement that meets the standards of paragraph 
 12.5   (a), clause (2). 
 12.6      (f) When a minor parent and minor child live with a parent, 
 12.7   other adult relative, legal guardian, or in an adult-supervised 
 12.8   supportive Regardless of living arrangement, MFIP-S MFIP must be 
 12.9   paid, when possible, in the form of a protective payment on 
 12.10  behalf of the minor parent and minor child according to section 
 12.11  256J.39, subdivisions 2 to 4. 
 12.12     Sec. 17.  Minnesota Statutes 1998, section 256J.20, 
 12.13  subdivision 3, is amended to read: 
 12.14     Subd. 3.  [OTHER PROPERTY LIMITATIONS.] To be eligible for 
 12.15  MFIP-S MFIP, the equity value of all nonexcluded real and 
 12.16  personal property of the assistance unit must not exceed $2,000 
 12.17  for applicants and $5,000 for ongoing participants.  The value 
 12.18  of assets in clauses (1) to (20) must be excluded when 
 12.19  determining the equity value of real and personal property: 
 12.20     (1) a licensed vehicle up to a loan value of less than or 
 12.21  equal to $7,500.  The county agency shall apply any excess loan 
 12.22  value as if it were equity value to the asset limit described in 
 12.23  this section.  If the assistance unit owns more than one 
 12.24  licensed vehicle, the county agency shall determine the vehicle 
 12.25  with the highest loan value and count only the loan value over 
 12.26  $7,500, excluding:  (i) the value of one vehicle per physically 
 12.27  disabled person when the vehicle is needed to transport the 
 12.28  disabled unit member; this exclusion does not apply to mentally 
 12.29  disabled people; (ii) the value of special equipment for a 
 12.30  handicapped member of the assistance unit; and (iii) any vehicle 
 12.31  used for long-distance travel, other than daily commuting, for 
 12.32  the employment of a unit member. 
 12.33     The county agency shall count the loan value of all other 
 12.34  vehicles and apply this amount as if it were equity value to the 
 12.35  asset limit described in this section.  The value of special 
 12.36  equipment for a handicapped member of the assistance unit is 
 13.1   excluded.  To establish the loan value of vehicles, a county 
 13.2   agency must use the N.A.D.A. Official Used Car Guide, Midwest 
 13.3   Edition, for newer model cars.  When a vehicle is not listed in 
 13.4   the guidebook, or when the applicant or participant disputes the 
 13.5   loan value listed in the guidebook as unreasonable given the 
 13.6   condition of the particular vehicle, the county agency may 
 13.7   require the applicant or participant document the loan value by 
 13.8   securing a written statement from a motor vehicle dealer 
 13.9   licensed under section 168.27, stating the amount that the 
 13.10  dealer would pay to purchase the vehicle.  The county agency 
 13.11  shall reimburse the applicant or participant for the cost of a 
 13.12  written statement that documents a lower loan value; 
 13.13     (2) the value of life insurance policies for members of the 
 13.14  assistance unit; 
 13.15     (3) one burial plot per member of an assistance unit; 
 13.16     (4) the value of personal property needed to produce earned 
 13.17  income, including tools, implements, farm animals, inventory, 
 13.18  business loans, business checking and savings accounts used at 
 13.19  least annually and used exclusively for the operation of a 
 13.20  self-employment business, and any motor vehicles if at least 50 
 13.21  percent of the vehicle's use is to produce income and if the 
 13.22  vehicles are essential for the self-employment business; 
 13.23     (5) the value of personal property not otherwise specified 
 13.24  which is commonly used by household members in day-to-day living 
 13.25  such as clothing, necessary household furniture, equipment, and 
 13.26  other basic maintenance items essential for daily living; 
 13.27     (6) the value of real and personal property owned by a 
 13.28  recipient of Supplemental Security Income or Minnesota 
 13.29  supplemental aid; 
 13.30     (7) the value of corrective payments, but only for the 
 13.31  month in which the payment is received and for the following 
 13.32  month; 
 13.33     (8) a mobile home or other vehicle used by an applicant or 
 13.34  participant as the applicant's or participant's home; 
 13.35     (9) money in a separate escrow account that is needed to 
 13.36  pay real estate taxes or insurance and that is used for this 
 14.1   purpose; 
 14.2      (10) money held in escrow to cover employee FICA, employee 
 14.3   tax withholding, sales tax withholding, employee worker 
 14.4   compensation, business insurance, property rental, property 
 14.5   taxes, and other costs that are paid at least annually, but less 
 14.6   often than monthly; 
 14.7      (11) monthly assistance, emergency assistance, and 
 14.8   diversionary payments for the current month's needs; 
 14.9      (12) the value of school loans, grants, or scholarships for 
 14.10  the period they are intended to cover; 
 14.11     (13) payments listed in section 256J.21, subdivision 2, 
 14.12  clause (9), which are held in escrow for a period not to exceed 
 14.13  three months to replace or repair personal or real property; 
 14.14     (14) income received in a budget month through the end of 
 14.15  the payment month; 
 14.16     (15) savings from earned income of a minor child or a minor 
 14.17  parent that are set aside in a separate account designated 
 14.18  specifically for future education or employment costs; 
 14.19     (16) the federal earned income credit, Minnesota working 
 14.20  family credit, state and federal income tax refunds, state 
 14.21  homeowners and renters credits under chapter 290A, property tax 
 14.22  rebates under Laws 1997, chapter 231, article 1, section 16, and 
 14.23  other federal or state tax rebates in the month received and the 
 14.24  following month; 
 14.25     (17) payments excluded under federal law as long as those 
 14.26  payments are held in a separate account from any nonexcluded 
 14.27  funds; 
 14.28     (18) money received by a participant of the corps to career 
 14.29  program under section 84.0887, subdivision 2, paragraph (b), as 
 14.30  a postservice benefit under the federal Americorps Act; 
 14.31     (19) the assets of children ineligible to receive MFIP-S 
 14.32  MFIP benefits because foster care or adoption assistance 
 14.33  payments are made on their behalf; and 
 14.34     (20) the assets of persons whose income is excluded under 
 14.35  section 256J.21, subdivision 2, clause (43). 
 14.36     Sec. 18.  Minnesota Statutes 1998, section 256J.21, 
 15.1   subdivision 2, is amended to read: 
 15.2      Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
 15.3   excluded in determining a family's available income: 
 15.4      (1) payments for basic care, difficulty of care, and 
 15.5   clothing allowances received for providing family foster care to 
 15.6   children or adults under Minnesota Rules, parts 9545.0010 to 
 15.7   9545.0260 and 9555.5050 to 9555.6265, and payments received and 
 15.8   used for care and maintenance of a third-party beneficiary who 
 15.9   is not a household member; 
 15.10     (2) reimbursements for employment training received through 
 15.11  the Job Training Partnership Act, United States Code, title 29, 
 15.12  chapter 19, sections 1501 to 1792b; 
 15.13     (3) reimbursement for out-of-pocket expenses incurred while 
 15.14  performing volunteer services, jury duty, or employment, or 
 15.15  informal carpooling arrangements directly related to employment; 
 15.16     (4) all educational assistance, except the county agency 
 15.17  must count graduate student teaching assistantships, 
 15.18  fellowships, and other similar paid work as earned income and, 
 15.19  after allowing deductions for any unmet and necessary 
 15.20  educational expenses, shall count scholarships or grants awarded 
 15.21  to graduate students that do not require teaching or research as 
 15.22  unearned income; 
 15.23     (5) loans, regardless of purpose, from public or private 
 15.24  lending institutions, governmental lending institutions, or 
 15.25  governmental agencies; 
 15.26     (6) loans from private individuals, regardless of purpose, 
 15.27  provided an applicant or participant documents that the lender 
 15.28  expects repayment; 
 15.29     (7)(i) state income tax refunds; and 
 15.30     (ii) federal income tax refunds; 
 15.31     (8)(i) federal earned income credits; 
 15.32     (ii) Minnesota working family credits; 
 15.33     (iii) state homeowners and renters credits under chapter 
 15.34  290A; and 
 15.35     (iv) property tax rebates under Laws 1997, chapter 231, 
 15.36  article 1, section 16; and 
 16.1      (v) other federal or state tax rebates; 
 16.2      (9) funds received for reimbursement, replacement, or 
 16.3   rebate of personal or real property when these payments are made 
 16.4   by public agencies, awarded by a court, solicited through public 
 16.5   appeal, or made as a grant by a federal agency, state or local 
 16.6   government, or disaster assistance organizations, subsequent to 
 16.7   a presidential declaration of disaster; 
 16.8      (10) the portion of an insurance settlement that is used to 
 16.9   pay medical, funeral, and burial expenses, or to repair or 
 16.10  replace insured property; 
 16.11     (11) reimbursements for medical expenses that cannot be 
 16.12  paid by medical assistance; 
 16.13     (12) payments by a vocational rehabilitation program 
 16.14  administered by the state under chapter 268A, except those 
 16.15  payments that are for current living expenses; 
 16.16     (13) in-kind income, including any payments directly made 
 16.17  by a third party to a provider of goods and services; 
 16.18     (14) assistance payments to correct underpayments, but only 
 16.19  for the month in which the payment is received; 
 16.20     (15) emergency assistance payments; 
 16.21     (16) funeral and cemetery payments as provided by section 
 16.22  256.935; 
 16.23     (17) nonrecurring cash gifts of $30 or less, not exceeding 
 16.24  $30 per participant in a calendar month; 
 16.25     (18) any form of energy assistance payment made through 
 16.26  Public Law Number 97-35, Low-Income Home Energy Assistance Act 
 16.27  of 1981, payments made directly to energy providers by other 
 16.28  public and private agencies, and any form of credit or rebate 
 16.29  payment issued by energy providers; 
 16.30     (19) Supplemental Security Income, including retroactive 
 16.31  payments; 
 16.32     (20) Minnesota supplemental aid, including retroactive 
 16.33  payments; 
 16.34     (21) proceeds from the sale of real or personal property; 
 16.35     (22) adoption assistance payments under section 259.67; 
 16.36     (23) state-funded family subsidy program payments made 
 17.1   under section 252.32 to help families care for children with 
 17.2   mental retardation or related conditions; 
 17.3      (24) interest payments and dividends from property that is 
 17.4   not excluded from and that does not exceed the asset limit; 
 17.5      (25) rent rebates; 
 17.6      (26) income earned by a minor caregiver or minor child, 
 17.7   birth through age 6 or a minor child, who is at least a 
 17.8   half-time student in an approved elementary or secondary 
 17.9   education program; 
 17.10     (27) income earned by a caregiver under age 20 who is at 
 17.11  least a half-time student in an approved secondary education 
 17.12  program; 
 17.13     (28) MFIP-S MFIP child care payments under section 119B.05; 
 17.14     (29) all other payments made through MFIP-S MFIP to support 
 17.15  a caregiver's pursuit of greater self-support; 
 17.16     (30) income a participant receives related to shared living 
 17.17  expenses; 
 17.18     (31) reverse mortgages; 
 17.19     (32) benefits provided by the Child Nutrition Act of 1966, 
 17.20  United States Code, title 42, chapter 13A, sections 1771 to 
 17.21  1790; 
 17.22     (33) benefits provided by the women, infants, and children 
 17.23  (WIC) nutrition program, United States Code, title 42, chapter 
 17.24  13A, section 1786; 
 17.25     (34) benefits from the National School Lunch Act, United 
 17.26  States Code, title 42, chapter 13, sections 1751 to 1769e; 
 17.27     (35) relocation assistance for displaced persons under the 
 17.28  Uniform Relocation Assistance and Real Property Acquisition 
 17.29  Policies Act of 1970, United States Code, title 42, chapter 61, 
 17.30  subchapter II, section 4636, or the National Housing Act, United 
 17.31  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
 17.32     (36) benefits from the Trade Act of 1974, United States 
 17.33  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
 17.34     (37) war reparations payments to Japanese Americans and 
 17.35  Aleuts under United States Code, title 50, sections 1989 to 
 17.36  1989d; 
 18.1      (38) payments to veterans or their dependents as a result 
 18.2   of legal settlements regarding Agent Orange or other chemical 
 18.3   exposure under Public Law Number 101-239, section 10405, 
 18.4   paragraph (a)(2)(E); 
 18.5      (39) income that is otherwise specifically excluded from 
 18.6   the MFIP-S program MFIP consideration in federal law, state law, 
 18.7   or federal regulation; 
 18.8      (40) security and utility deposit refunds; 
 18.9      (41) American Indian tribal land settlements excluded under 
 18.10  Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
 18.11  Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
 18.12  reservations and payments to members of the White Earth Band, 
 18.13  under United States Code, title 25, chapter 9, section 331, and 
 18.14  chapter 16, section 1407; 
 18.15     (42) all income of the minor parent's parent parents and 
 18.16  stepparent stepparents when determining the grant for the minor 
 18.17  parent in households that include a minor parent living with a 
 18.18  parent parents or stepparent stepparents on MFIP-S MFIP with 
 18.19  other children; and 
 18.20     (43) income of the minor parent's parent parents and 
 18.21  stepparent stepparents equal to 200 percent of the federal 
 18.22  poverty guideline for a family size not including the minor 
 18.23  parent and the minor parent's child in households that include a 
 18.24  minor parent living with a parent parents or stepparent 
 18.25  stepparents not on MFIP-S MFIP when determining the grant for 
 18.26  the minor parent.  The remainder of income is deemed as 
 18.27  specified in section 256J.37, subdivision 1b; 
 18.28     (44) payments made to children eligible for relative 
 18.29  custody assistance under section 257.85; 
 18.30     (45) vendor payments for goods and services made on behalf 
 18.31  of a client unless the client has the option of receiving the 
 18.32  payment in cash; and 
 18.33     (46) the principal portion of a contract for deed payment. 
 18.34     Sec. 19.  Minnesota Statutes 1998, section 256J.21, 
 18.35  subdivision 3, is amended to read: 
 18.36     Subd. 3.  [INITIAL INCOME TEST.] The county agency shall 
 19.1   determine initial eligibility by considering all earned and 
 19.2   unearned income that is not excluded under subdivision 2.  To be 
 19.3   eligible for MFIP-S MFIP, the assistance unit's countable income 
 19.4   minus the disregards in paragraphs (a) and (b) must be below the 
 19.5   transitional applicable standard of assistance according to 
 19.6   section 256J.24 for that size assistance unit. 
 19.7      (a) The initial eligibility determination must disregard 
 19.8   the following items: 
 19.9      (1) the employment disregard is 18 percent of the gross 
 19.10  earned income whether or not the member is working full time or 
 19.11  part time; 
 19.12     (2) dependent care costs must be deducted from gross earned 
 19.13  income for the actual amount paid for dependent care up to a 
 19.14  maximum of $200 per month for each child less than two years of 
 19.15  age, and $175 per month for each child two years of age and 
 19.16  older under this chapter and chapter 119B; 
 19.17     (3) all payments made according to a court order for 
 19.18  spousal support or the support of children not living in the 
 19.19  assistance unit's household shall be disregarded from the income 
 19.20  of the person with the legal obligation to pay support, provided 
 19.21  that, if there has been a change in the financial circumstances 
 19.22  of the person with the legal obligation to pay support since the 
 19.23  support order was entered, the person with the legal obligation 
 19.24  to pay support has petitioned for a modification of the support 
 19.25  order; and 
 19.26     (4) an allocation for the unmet need of an ineligible 
 19.27  spouse or an ineligible child under the age of 21 for whom the 
 19.28  caregiver is financially responsible and who lives with the 
 19.29  caregiver according to section 256J.36. 
 19.30     (b) Notwithstanding paragraph (a), when determining initial 
 19.31  eligibility for applicant units when at least one member has 
 19.32  received AFDC, family general assistance, MFIP, MFIP-R, work 
 19.33  first, or MFIP-S MFIP in this state within four months of the 
 19.34  most recent application for MFIP-S MFIP, apply the employment 
 19.35  disregard as defined in section 256J.08, subdivision 24, for all 
 19.36  unit members is 36 percent of the gross earned income. 
 20.1      After initial eligibility is established, the assistance 
 20.2   payment calculation is based on the monthly income test. 
 20.3      Sec. 20.  Minnesota Statutes 1998, section 256J.21, 
 20.4   subdivision 4, is amended to read: 
 20.5      Subd. 4.  [MONTHLY INCOME TEST AND DETERMINATION OF 
 20.6   ASSISTANCE PAYMENT.] The county agency shall determine ongoing 
 20.7   eligibility and the assistance payment amount according to the 
 20.8   monthly income test.  To be eligible for MFIP-S MFIP, the result 
 20.9   of the computations in paragraphs (a) to (e) must be at least $1.
 20.10     (a) Apply a 36 percent an income disregard as defined in 
 20.11  section 256J.08, subdivision 24, to gross earnings and subtract 
 20.12  this amount from the family wage level.  If the difference is 
 20.13  equal to or greater than the transitional applicable MFIP 
 20.14  standard, the assistance payment is equal to the transitional 
 20.15  applicable MFIP standard.  If the difference is less than 
 20.16  the transitional applicable MFIP standard, the assistance 
 20.17  payment is equal to the difference.  The employment disregard in 
 20.18  this paragraph must be deducted every month there is earned 
 20.19  income. 
 20.20     (b) All payments made according to a court order for 
 20.21  spousal support or the support of children not living in the 
 20.22  assistance unit's household must be disregarded from the income 
 20.23  of the person with the legal obligation to pay support, provided 
 20.24  that, if there has been a change in the financial circumstances 
 20.25  of the person with the legal obligation to pay support since the 
 20.26  support order was entered, the person with the legal obligation 
 20.27  to pay support has petitioned for a modification of the court 
 20.28  order. 
 20.29     (c) An allocation for the unmet need of an ineligible 
 20.30  spouse or an ineligible child under the age of 21 for whom the 
 20.31  caregiver is financially responsible and who lives with the 
 20.32  caregiver must be made according to section 256J.36. 
 20.33     (d) Subtract unearned income dollar for dollar from the 
 20.34  transitional standard to determine the assistance payment amount.
 20.35     (e) When income is both earned and unearned, the amount of 
 20.36  the assistance payment must be determined by first treating 
 21.1   gross earned income as specified in paragraph (a).  After 
 21.2   determining the amount of the assistance payment under paragraph 
 21.3   (a), unearned income must be subtracted from that amount dollar 
 21.4   for dollar to determine the assistance payment amount. 
 21.5      (f) When the monthly income is greater than the 
 21.6   transitional or family wage level applicable MFIP standard after 
 21.7   applicable deductions and the income will only exceed the 
 21.8   standard for one month, the county agency must suspend the 
 21.9   assistance payment for the payment month. 
 21.10     Sec. 21.  Minnesota Statutes 1998, section 256J.24, 
 21.11  subdivision 2, is amended to read: 
 21.12     Subd. 2.  [MANDATORY ASSISTANCE UNIT COMPOSITION.] Except 
 21.13  for minor caregivers and their children who must be in a 
 21.14  separate assistance unit from the other persons in the 
 21.15  household, when the following individuals live together, they 
 21.16  must be included in the assistance unit: 
 21.17     (1) a minor child, including a pregnant minor; 
 21.18     (2) the minor child's minor siblings, minor half-siblings, 
 21.19  and minor step-siblings; 
 21.20     (3) the minor child's natural parents, adoptive parents, 
 21.21  and stepparents; and 
 21.22     (4) the spouse of a pregnant woman.  
 21.23     Sec. 22.  Minnesota Statutes 1998, section 256J.24, 
 21.24  subdivision 3, is amended to read: 
 21.25     Subd. 3.  [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 
 21.26  ASSISTANCE UNIT.] (a) The following individuals who are part of 
 21.27  the assistance unit determined under subdivision 2 are 
 21.28  ineligible to receive MFIP-S MFIP: 
 21.29     (1) individuals receiving Supplemental Security Income or 
 21.30  Minnesota supplemental aid; 
 21.31     (2) individuals living at home while performing 
 21.32  court-imposed, unpaid community service work due to a criminal 
 21.33  conviction; 
 21.34     (3) individuals disqualified from the food stamp program or 
 21.35  MFIP-S MFIP, until the disqualification ends; 
 21.36     (4) (3) children on whose behalf federal, state or local 
 22.1   foster care payments are made, except as provided in sections 
 22.2   256J.13, subdivision 2, and 256J.74, subdivision 2; and 
 22.3      (5) (4) children receiving ongoing monthly adoption 
 22.4   assistance payments under section 259.67.  
 22.5      (b) The exclusion of a person under this subdivision does 
 22.6   not alter the mandatory assistance unit composition. 
 22.7      Sec. 23.  Minnesota Statutes 1998, section 256J.24, 
 22.8   subdivision 7, is amended to read: 
 22.9      Subd. 7.  [FAMILY WAGE LEVEL STANDARD.] The family wage 
 22.10  level standard is 110 percent of the transitional standard under 
 22.11  subdivision 5 and is the standard used when there is earned 
 22.12  income in the assistance unit.  As specified in section 256J.21, 
 22.13  earned income is subtracted from the family wage level to 
 22.14  determine the amount of the assistance payment.  Not including 
 22.15  the family wage level standard, assistance payments may not 
 22.16  exceed the shared household standard or the 
 22.17  transitional applicable standard for the assistance unit, 
 22.18  whichever is less. 
 22.19     Sec. 24.  Minnesota Statutes 1998, section 256J.24, 
 22.20  subdivision 8, is amended to read: 
 22.21     Subd. 8.  [ASSISTANCE PAID TO ELIGIBLE ASSISTANCE UNITS.] 
 22.22  Except for assistance units with nonparental caregivers, 
 22.23  payments for shelter up to the amount of the cash portion 
 22.24  of MFIP-S MFIP benefits for which the assistance unit is 
 22.25  eligible shall be vendor paid for as many months as the 
 22.26  assistance unit is eligible or six months, whichever comes 
 22.27  first.  The residual amount of the grant after vendor payment, 
 22.28  if any, must be paid to the MFIP-S MFIP caregiver. 
 22.29     Sec. 25.  Minnesota Statutes 1998, section 256J.24, 
 22.30  subdivision 9, is amended to read: 
 22.31     Subd. 9.  [SHARED HOUSEHOLD STANDARD; MFIP-S MFIP.] (a) 
 22.32  Except as prohibited in paragraph (b), the county agency must 
 22.33  use the shared household standard when the household includes 
 22.34  one or more unrelated members, as that term is defined in 
 22.35  section 256J.08, subdivision 86a.  The county agency must use 
 22.36  the shared household standard, unless a member of the assistance 
 23.1   unit is a victim of domestic violence and has an approved safety 
 23.2   plan, regardless of the number of unrelated members in the 
 23.3   household. 
 23.4      (b) The county agency must not use the shared household 
 23.5   standard when all unrelated members are one of the following: 
 23.6      (1) a recipient of public assistance benefits, including 
 23.7   food stamps, Supplemental Security Income, adoption assistance, 
 23.8   relative custody assistance, or foster care payments; 
 23.9      (2) a roomer or boarder, or a person to whom the assistance 
 23.10  unit is paying room or board; 
 23.11     (3) a minor; 
 23.12     (4) a minor caregiver living with the minor caregiver's 
 23.13  parents or in an approved supervised living arrangement; or 
 23.14     (5) a caregiver who is not the parent of the minor child in 
 23.15  the assistance unit; or 
 23.16     (6) an individual who provides child care to a child in the 
 23.17  MFIP assistance unit. 
 23.18     (c) The shared household standard must be discontinued if 
 23.19  it is not approved by the United States Department of 
 23.20  Agriculture under the MFIP-S MFIP waiver. 
 23.21     Sec. 26.  Minnesota Statutes 1998, section 256J.24, is 
 23.22  amended by adding a subdivision to read: 
 23.23     Subd. 10.  [MFIP EXIT LEVEL.] In state fiscal years 2000 
 23.24  and 2001, the commissioner shall adjust the MFIP earned income 
 23.25  disregard to ensure that participants do not lose eligibility 
 23.26  for MFIP until their income reaches at least 120 percent of the 
 23.27  federal poverty guidelines in effect in October of each fiscal 
 23.28  year.  Adjustments to the disregard shall be based on a 
 23.29  household size of three and shall be implemented at the same 
 23.30  time as the October food stamp cost-of-living adjustment is 
 23.31  reflected in the food portion of MFIP transitional standard as 
 23.32  required under subdivision 5a. 
 23.33     Sec. 27.  Minnesota Statutes 1998, section 256J.26, 
 23.34  subdivision 1, is amended to read: 
 23.35     Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) 
 23.36  Applicants or participants who have been convicted of a drug 
 24.1   offense committed after July 1, 1997, may, if otherwise 
 24.2   eligible, receive AFDC or MFIP-S MFIP benefits subject to the 
 24.3   following conditions: 
 24.4      (1) Benefits for the entire assistance unit must be paid in 
 24.5   vendor form for shelter and utilities during any time the 
 24.6   applicant is part of the assistance unit. 
 24.7      (2) The convicted applicant or participant shall be subject 
 24.8   to random drug testing as a condition of continued eligibility 
 24.9   and following any positive test for an illegal controlled 
 24.10  substance is subject to the following sanctions: 
 24.11     (i) for failing a drug test the first time, the 
 24.12  participant's grant shall be reduced by ten percent of the 
 24.13  MFIP-S transitional applicable MFIP standard, the shared 
 24.14  household standard, or the interstate transitional standard, 
 24.15  whichever is applicable prior to making vendor payments for 
 24.16  shelter and utility costs; or 
 24.17     (ii) for failing a drug test two or more times, the 
 24.18  residual amount of the participant's grant after making vendor 
 24.19  payments for shelter and utility costs, if any, must be reduced 
 24.20  by an amount equal to 30 percent of the MFIP-S transitional 
 24.21  standard, the shared household standard, or the interstate 
 24.22  transitional standard, whichever is applicable MFIP standard. 
 24.23     (3) A participant who fails an initial drug test and is 
 24.24  under a sanction due to other MFIP program requirements is 
 24.25  subject to the sanction in clause (2)(ii). 
 24.26     (b) Applicants requesting only food stamps or participants 
 24.27  receiving only food stamps, who have been convicted of a drug 
 24.28  offense that occurred after July 1, 1997, may, if otherwise 
 24.29  eligible, receive food stamps if the convicted applicant or 
 24.30  participant is subject to random drug testing as a condition of 
 24.31  continued eligibility.  Following a positive test for an illegal 
 24.32  controlled substance, the applicant is subject to the following 
 24.33  sanctions: 
 24.34     (1) for failing a drug test the first time, food stamps 
 24.35  shall be reduced by ten percent of the applicable food stamp 
 24.36  allotment; and 
 25.1      (2) for failing a drug test two or more times, food stamps 
 25.2   shall be reduced by an amount equal to 30 percent of the 
 25.3   applicable food stamp allotment.  
 25.4      (c) For the purposes of this subdivision, "drug offense" 
 25.5   means a conviction an offense that occurred after July 1, 1997, 
 25.6   of sections 152.021 to 152.025, 152.0261, or 152.096.  Drug 
 25.7   offense also means a conviction in another jurisdiction of the 
 25.8   possession, use, or distribution of a controlled substance, or 
 25.9   conspiracy to commit any of these offenses, if the offense 
 25.10  occurred after July 1, 1997, and the conviction is a felony 
 25.11  offense in that jurisdiction, or in the case of New Jersey, a 
 25.12  high misdemeanor. 
 25.13     Sec. 28.  Minnesota Statutes 1998, section 256J.30, 
 25.14  subdivision 8, is amended to read: 
 25.15     Subd. 8.  [LATE MFIP-S MFIP HOUSEHOLD REPORT FORMS.] 
 25.16  Paragraphs (a) to (d) apply to the reporting requirements in 
 25.17  subdivision 7. 
 25.18     (a) When a caregiver submits the county agency receives an 
 25.19  incomplete MFIP-S MFIP household report form before the last 
 25.20  working day of the month on which a ten-day prior to the 
 25.21  issuance of a notice of termination can be issued, the county 
 25.22  agency must return the incomplete form on or before the ten-day 
 25.23  date the notice deadline is issued or any previously sent 
 25.24  ten-day the notice of termination is invalid. 
 25.25     (b) When a complete MFIP-S household report form is not 
 25.26  received by a county agency before the last ten days of the 
 25.27  month in which the form is due, the county agency must send A 
 25.28  notice of proposed termination of assistance will be sent to the 
 25.29  assistance unit if a complete MFIP household report form is not 
 25.30  received by a county agency before the notice date, which must 
 25.31  be at least ten days before the end of the month.  When a 
 25.32  caregiver submits an incomplete form on or after the date a 
 25.33  notice of proposed termination has been sent, the termination is 
 25.34  valid unless the caregiver submits a complete form before the 
 25.35  end of the month. 
 25.36     (c) An assistance unit required to submit an MFIP-S MFIP 
 26.1   household report form is considered to have continued its 
 26.2   application for assistance if a complete MFIP-S MFIP household 
 26.3   report form is received within a calendar month after the month 
 26.4   in which assistance was received the form was due and assistance 
 26.5   shall be paid for the period beginning with the first day of the 
 26.6   month in which the report was due that calendar month. 
 26.7      (d) A county agency must allow good cause exemptions from 
 26.8   the reporting requirements under subdivisions 5 and 6 when any 
 26.9   of the following factors cause a caregiver to fail to provide 
 26.10  the county agency with a completed MFIP-S MFIP household report 
 26.11  form before the end of the month in which the form is due: 
 26.12     (1) an employer delays completion of employment 
 26.13  verification; 
 26.14     (2) a county agency does not help a caregiver complete the 
 26.15  MFIP-S MFIP household report form when the caregiver asks for 
 26.16  help; 
 26.17     (3) a caregiver does not receive an MFIP-S MFIP household 
 26.18  report form due to mistake on the part of the department or the 
 26.19  county agency or due to a reported change in address; 
 26.20     (4) a caregiver is ill, or physically or mentally 
 26.21  incapacitated; or 
 26.22     (5) some other circumstance occurs that a caregiver could 
 26.23  not avoid with reasonable care which prevents the caregiver from 
 26.24  providing a completed MFIP-S MFIP household report form before 
 26.25  the end of the month in which the form is due. 
 26.26     Sec. 29.  Minnesota Statutes 1998, section 256J.30, 
 26.27  subdivision 9, is amended to read: 
 26.28     Subd. 9.  [CHANGES THAT MUST BE REPORTED.] A caregiver must 
 26.29  report the changes or anticipated changes specified in clauses 
 26.30  (1) to (16) within ten days of the date they occur, within ten 
 26.31  days of the date the caregiver learns that the change will 
 26.32  occur, at the time of the periodic recertification of 
 26.33  eligibility under section 256J.32, subdivision 6, or within 
 26.34  eight calendar days of a reporting period as in subdivision 5 or 
 26.35  6, whichever occurs first.  A caregiver must report other 
 26.36  changes at the time of the periodic recertification of 
 27.1   eligibility under section 256J.32, subdivision 6, or at the end 
 27.2   of a reporting period under subdivision 5 or 6, as applicable.  
 27.3   A caregiver must make these reports in writing to the county 
 27.4   agency.  When a county agency could have reduced or terminated 
 27.5   assistance for one or more payment months if a delay in 
 27.6   reporting a change specified under clauses (1) to (16) had not 
 27.7   occurred, the county agency must determine whether a timely 
 27.8   notice under section 256J.31, subdivision 4, could have been 
 27.9   issued on the day that the change occurred.  When a timely 
 27.10  notice could have been issued, each month's overpayment 
 27.11  subsequent to that notice must be considered a client error 
 27.12  overpayment under section 256J.38.  Calculation of overpayments 
 27.13  for late reporting under clause (17) is specified in section 
 27.14  256J.09, subdivision 9.  Changes in circumstances which must be 
 27.15  reported within ten days must also be reported on the MFIP-S 
 27.16  MFIP household report form for the reporting period in which 
 27.17  those changes occurred.  Within ten days, a caregiver must 
 27.18  report: 
 27.19     (1) a change in initial employment; 
 27.20     (2) a change in initial receipt of unearned income; 
 27.21     (3) a recurring change in unearned income; 
 27.22     (4) a nonrecurring change of unearned income that exceeds 
 27.23  $30; 
 27.24     (5) the receipt of a lump sum; 
 27.25     (6) an increase in assets that may cause the assistance 
 27.26  unit to exceed asset limits; 
 27.27     (7) a change in the physical or mental status of an 
 27.28  incapacitated member of the assistance unit if the physical or 
 27.29  mental status is the basis of exemption from an MFIP-S work and 
 27.30  training MFIP employment services program; 
 27.31     (8) a change in employment status; 
 27.32     (9) a change in household composition, including births, 
 27.33  returns to and departures from the home of assistance unit 
 27.34  members and financially responsible persons, or a change in the 
 27.35  custody of a minor child information to discontinue an exception 
 27.36  under 256J.24, subdivision 9, if questionable; 
 28.1      (10) a change in health insurance coverage; 
 28.2      (11) the marriage or divorce of an assistance unit member; 
 28.3      (12) the death of a parent, minor child, or financially 
 28.4   responsible person; 
 28.5      (13) a change in address or living quarters of the 
 28.6   assistance unit; 
 28.7      (14) the sale, purchase, or other transfer of property; 
 28.8      (15) a change in school attendance of a custodial parent or 
 28.9   an employed child; and 
 28.10     (16) filing a lawsuit, a workers' compensation claim, or a 
 28.11  monetary claim against a third party; and 
 28.12     (17) a change in household composition, including births, 
 28.13  returns to and departures from the home of assistance unit 
 28.14  members and financially responsible persons, or a change in the 
 28.15  custody of a minor child. 
 28.16     Sec. 30.  Minnesota Statutes 1998, section 256J.31, 
 28.17  subdivision 5, is amended to read: 
 28.18     Subd. 5.  [MAILING OF NOTICE.] The notice of adverse action 
 28.19  shall be issued according to paragraphs (a) to (c) (d). 
 28.20     (a) A county agency shall mail a notice of adverse action 
 28.21  must be mailed at least ten days before the effective date of 
 28.22  the adverse action, except as provided in paragraphs (b) and (c) 
 28.23  to (d). 
 28.24     (b) A county agency must mail a notice of adverse action at 
 28.25  least five days before the effective date of the adverse action 
 28.26  when the county agency has factual information that requires an 
 28.27  action to reduce, suspend, or terminate assistance based on 
 28.28  probable fraud. 
 28.29     (c) A county agency shall mail A notice of adverse action 
 28.30  before or on the effective date of the adverse action must be 
 28.31  mailed no later than four working days before the end of the 
 28.32  month when the county agency: 
 28.33     (1) receives the caregiver's signed monthly MFIP-S 
 28.34  household report form that includes information that requires 
 28.35  payment reduction, suspension, or termination; 
 28.36     (2) is informed of the death of a participant the only 
 29.1   caregiver or the payee in an assistance unit; 
 29.2      (3) (2) receives a signed statement from the caregiver that 
 29.3   assistance is no longer wanted; 
 29.4      (4) receives a signed statement from the caregiver that 
 29.5   provides information that requires the termination or reduction 
 29.6   of assistance (3) has factual information to reduce, suspend, or 
 29.7   terminate assistance based on the failure to timely report 
 29.8   changes; 
 29.9      (5) verifies that a member of the assistance unit is absent 
 29.10  from the home and does not meet temporary absence provisions in 
 29.11  section 256J.13; 
 29.12     (6) (4) verifies that a member of the assistance unit has 
 29.13  entered a regional treatment center or a licensed residential 
 29.14  facility for medical or psychological treatment or 
 29.15  rehabilitation; 
 29.16     (7) (5) verifies that a member of an assistance unit has 
 29.17  been removed from the home as a result of a judicial 
 29.18  determination or placed in foster care, and the provisions of 
 29.19  section 256J.13, subdivision 2, paragraph (c), clause (2), do 
 29.20  not apply; 
 29.21     (8) verifies that a member of an assistance unit has been 
 29.22  approved to receive assistance by another state; or 
 29.23     (9) (6) cannot locate a caregiver. 
 29.24     (c) A notice of adverse action must be mailed for a payment 
 29.25  month when the caregiver makes a written request for closure 
 29.26  before the first of that payment month. 
 29.27     (d) A notice of adverse action must be mailed before the 
 29.28  effective date of the adverse action when the county agency 
 29.29  receives the caregiver's signed and completed MFIP household 
 29.30  report form or recertification form that includes information 
 29.31  that requires payment reduction, suspension, or termination. 
 29.32     Sec. 31.  Minnesota Statutes 1998, section 256J.31, 
 29.33  subdivision 12, is amended to read: 
 29.34     Subd. 12.  [RIGHT TO DISCONTINUE CASH ASSISTANCE.] A 
 29.35  participant who is not in vendor payment status may discontinue 
 29.36  receipt of the cash assistance portion of MFIP-S MFIP assistance 
 30.1   grant and retain eligibility for child care assistance under 
 30.2   section 119B.05 and for medical assistance under sections 
 30.3   256B.055, subdivision 3a, and 256B.0635.  For the months a 
 30.4   participant chooses to discontinue the receipt of the cash 
 30.5   portion of the MFIP grant, the assistance unit accrues months of 
 30.6   eligibility to be applied toward eligibility for child care 
 30.7   under section 119B.05 and for medical assistance under sections 
 30.8   256B.055, subdivision 3a, and 256B.0635. 
 30.9      Sec. 32.  Minnesota Statutes 1998, section 256J.32, 
 30.10  subdivision 4, is amended to read: 
 30.11     Subd. 4.  [FACTORS TO BE VERIFIED.] The county agency shall 
 30.12  verify the following at application: 
 30.13     (1) identity of adults; 
 30.14     (2) presence of the minor child in the home, if 
 30.15  questionable; 
 30.16     (3) relationship of a minor child to caregivers in the 
 30.17  assistance unit; 
 30.18     (4) age, if necessary to determine MFIP-S MFIP eligibility; 
 30.19     (5) immigration status; 
 30.20     (6) social security number according to the requirements of 
 30.21  section 256J.30, subdivision 12; 
 30.22     (7) income; 
 30.23     (8) self-employment expenses used as a deduction; 
 30.24     (9) source and purpose of deposits and withdrawals from 
 30.25  business accounts; 
 30.26     (10) spousal support and child support payments made to 
 30.27  persons outside the household; 
 30.28     (11) real property; 
 30.29     (12) vehicles; 
 30.30     (13) checking and savings accounts; 
 30.31     (14) savings certificates, savings bonds, stocks, and 
 30.32  individual retirement accounts; 
 30.33     (15) pregnancy, if related to eligibility; 
 30.34     (16) inconsistent information, if related to eligibility; 
 30.35     (17) medical insurance; 
 30.36     (18) anticipated graduation date of an 18-year-old; 
 31.1      (19) burial accounts; 
 31.2      (20) (19) school attendance, if related to eligibility; 
 31.3      (21) (20) residence; 
 31.4      (22) (21) a claim of domestic violence if used as a basis 
 31.5   for a deferral or exemption from the 60-month time limit in 
 31.6   section 256J.42 or employment and training services requirements 
 31.7   in section 256J.56; and 
 31.8      (23) (22) disability if used as an exemption from 
 31.9   employment and training services requirements under section 
 31.10  256J.56; and 
 31.11     (23) information needed to establish an exception under 
 31.12  section 256J.24, subdivision 9. 
 31.13     Sec. 33.  Minnesota Statutes 1998, section 256J.32, 
 31.14  subdivision 6, is amended to read: 
 31.15     Subd. 6.  [RECERTIFICATION.] The county agency shall 
 31.16  recertify eligibility in an annual face-to-face interview with 
 31.17  the participant and verify the following: 
 31.18     (1) presence of the minor child in the home, if 
 31.19  questionable; 
 31.20     (2) income, unless excluded, including self-employment 
 31.21  expenses used as a deduction or deposits or withdrawals from 
 31.22  business accounts; 
 31.23     (3) assets when the value is within $200 of the asset 
 31.24  limit; and 
 31.25     (4) information to establish an exception under section 
 31.26  256J.24, subdivision 9, if questionable; and 
 31.27     (5) inconsistent information, if related to eligibility.  
 31.28     Sec. 34.  Minnesota Statutes 1998, section 256J.34, 
 31.29  subdivision 1, is amended to read: 
 31.30     Subdivision 1.  [PROSPECTIVE BUDGETING.] A county agency 
 31.31  must use prospective budgeting to calculate the assistance 
 31.32  payment amount for the first two months for an applicant who has 
 31.33  not received assistance in this state for at least one payment 
 31.34  month preceding the first month of payment under a current 
 31.35  application.  Notwithstanding subdivision 3, paragraph (a), 
 31.36  clause (2), a county agency must use prospective budgeting for 
 32.1   the first two months for a person who applies to be added to an 
 32.2   assistance unit.  Prospective budgeting is not subject to 
 32.3   overpayments or underpayments unless fraud is determined under 
 32.4   section 256.98. 
 32.5      (a) The county agency must apply the income received or 
 32.6   anticipated in the first month of MFIP-S MFIP eligibility 
 32.7   against the need of the first month.  The county agency must 
 32.8   apply the income received or anticipated in the second month 
 32.9   against the need of the second month. 
 32.10     (b) When the assistance payment for any part of the first 
 32.11  two months is based on anticipated income, the county agency 
 32.12  must base the initial assistance payment amount on the 
 32.13  information available at the time the initial assistance payment 
 32.14  is made. 
 32.15     (c) The county agency must determine the assistance payment 
 32.16  amount for the first two months of MFIP-S MFIP eligibility by 
 32.17  budgeting both recurring and nonrecurring income for those two 
 32.18  months. 
 32.19     (d) The county agency must budget the child support income 
 32.20  received or anticipated to be received by an assistance unit to 
 32.21  determine the assistance payment amount from the month of 
 32.22  application through the date in which MFIP-S MFIP eligibility is 
 32.23  determined and assistance is authorized.  Child support income 
 32.24  which has been budgeted to determine the assistance payment in 
 32.25  the initial two months is considered nonrecurring income.  An 
 32.26  assistance unit must forward any payment of child support to the 
 32.27  child support enforcement unit of the county agency following 
 32.28  the date in which assistance is authorized. 
 32.29     Sec. 35.  Minnesota Statutes 1998, section 256J.34, 
 32.30  subdivision 3, is amended to read: 
 32.31     Subd. 3.  [ADDITIONAL USES OF RETROSPECTIVE BUDGETING.] 
 32.32  Notwithstanding subdivision 1, the county agency must use 
 32.33  retrospective budgeting to calculate the monthly assistance 
 32.34  payment amount for the first two months under paragraphs (a) and 
 32.35  (b). 
 32.36     (a) The county agency must use retrospective budgeting to 
 33.1   determine the amount of the assistance payment in the first two 
 33.2   months of MFIP-S MFIP eligibility: 
 33.3      (1) when an assistance unit applies for assistance for the 
 33.4   same month for which assistance has been interrupted, the 
 33.5   interruption in eligibility is less than one payment month, the 
 33.6   assistance payment for the preceding month was issued in this 
 33.7   state, and the assistance payment for the immediately preceding 
 33.8   month was determined retrospectively; or 
 33.9      (2) when a person applies in order to be added to an 
 33.10  assistance unit, that assistance unit has received assistance in 
 33.11  this state for at least the two preceding months, and that 
 33.12  person has been living with and has been financially responsible 
 33.13  for one or more members of that assistance unit for at least the 
 33.14  two preceding months. 
 33.15     (b) Except as provided in clauses (1) to (4), the county 
 33.16  agency must use retrospective budgeting and apply income 
 33.17  received in the budget month by an assistance unit and by a 
 33.18  financially responsible household member who is not included in 
 33.19  the assistance unit against the appropriate transitional or 
 33.20  family wage level applicable MFIP standard to determine the 
 33.21  assistance payment to be issued for the payment month. 
 33.22     (1) When a source of income ends prior to the third payment 
 33.23  month, that income is not considered in calculating the 
 33.24  assistance payment for that month.  When a source of income ends 
 33.25  prior to the fourth payment month, that income is not considered 
 33.26  when determining the assistance payment for that month. 
 33.27     (2) When a member of an assistance unit or a financially 
 33.28  responsible household member leaves the household of the 
 33.29  assistance unit, the income of that departed household member is 
 33.30  not budgeted retrospectively for any full payment month in which 
 33.31  that household member does not live with that household and is 
 33.32  not included in the assistance unit. 
 33.33     (3) When an individual is removed from an assistance unit 
 33.34  because the individual is no longer a minor child, the income of 
 33.35  that individual is not budgeted retrospectively for payment 
 33.36  months in which that individual is not a member of the 
 34.1   assistance unit, except that income of an ineligible child in 
 34.2   the household must continue to be budgeted retrospectively 
 34.3   against the child's needs when the parent or parents of that 
 34.4   child request allocation of their income against any unmet needs 
 34.5   of that ineligible child. 
 34.6      (4) When a person ceases to have financial responsibility 
 34.7   for one or more members of an assistance unit, the income of 
 34.8   that person is not budgeted retrospectively for the payment 
 34.9   months which follow the month in which financial responsibility 
 34.10  ends. 
 34.11     Sec. 36.  Minnesota Statutes 1998, section 256J.34, 
 34.12  subdivision 4, is amended to read: 
 34.13     Subd. 4.  [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 
 34.14  agency must recalculate the assistance payment when an 
 34.15  assistance unit experiences a significant change, as defined in 
 34.16  section 256J.08, resulting in a reduction in the gross income 
 34.17  received in the payment month from the gross income received in 
 34.18  the budget month.  The county agency must issue a supplemental 
 34.19  assistance payment based on the county agency's best estimate of 
 34.20  the assistance unit's income and circumstances for the payment 
 34.21  month.  Budget adjustments Supplemental assistance payments that 
 34.22  result from significant changes are limited to two in a 12-month 
 34.23  period regardless of the reason for the change.  Budget 
 34.24  adjustments Notwithstanding any other statute or rule of law, 
 34.25  supplementary assistance payments shall not be made when the 
 34.26  significant change in income is the result of receipt of a lump 
 34.27  sum, receipt of an extra paycheck, business fluctuation in 
 34.28  self-employment income, or an assistance unit member's 
 34.29  participation in a strike or other labor action.  Supplementary 
 34.30  assistance payments due to a significant change in the amount of 
 34.31  direct support received must not be made after the date the 
 34.32  assistance unit is required to forward support to the child 
 34.33  support enforcement unit under subdivision 1, paragraph (d). 
 34.34     Sec. 37.  Minnesota Statutes 1998, section 256J.35, is 
 34.35  amended to read: 
 34.36     256J.35 [AMOUNT OF ASSISTANCE PAYMENT.] 
 35.1      Except as provided in paragraphs (a) to (d) (c), the amount 
 35.2   of an assistance payment is equal to the difference between the 
 35.3   transitional standard, shared household standard, interstate 
 35.4   payment standard, or the Minnesota family wage level in section 
 35.5   256J.24, whichever is less, and countable income. 
 35.6      (a) When MFIP-S MFIP eligibility exists for the month of 
 35.7   application, the amount of the assistance payment for the month 
 35.8   of application must be prorated from the date of application or 
 35.9   the date all other eligibility factors are met for that 
 35.10  applicant, whichever is later.  This provision applies when an 
 35.11  applicant loses at least one day of MFIP-S MFIP eligibility. 
 35.12     (b) MFIP-S MFIP overpayments to an assistance unit must be 
 35.13  recouped according to section 256J.38, subdivision 4. 
 35.14     (c) An initial assistance payment must not be made to an 
 35.15  applicant who is not eligible on the date payment is made. 
 35.16     (d) An individual whose needs have been otherwise provided 
 35.17  for in another state, in whole or in part by county, state, or 
 35.18  federal dollars during a month, is ineligible to receive MFIP-S 
 35.19  for the month. 
 35.20     Sec. 38.  Minnesota Statutes 1998, section 256J.37, 
 35.21  subdivision 2, is amended to read: 
 35.22     Subd. 2.  [DEEMED INCOME AND ASSETS OF SPONSOR OF 
 35.23  NONCITIZENS.] 
 35.24     (a) Prior to December 19, 1997, income and assets of a 
 35.25  sponsor and the sponsor's spouse which exceed $1,500, is deemed 
 35.26  to be the income and assets of a non-213A immigrant for a period 
 35.27  of three years.  To determine the amount of income to deem to a 
 35.28  non-213A immigrant, allow the following disregards: 
 35.29     (1) the lesser of 20 percent of the total combined gross 
 35.30  income of the sponsor and the sponsor's spouse or $175; 
 35.31     (2) an amount for the needs for the sponsor and sponsor's 
 35.32  spouse and any other individual living in the same household as 
 35.33  the sponsor who are claimed by the sponsor as dependents for 
 35.34  purposes of determining the sponsor's federal personal income 
 35.35  tax liability but whose needs are not taken into account in 
 35.36  determining MFIP eligibility.  This amount is equal to the 
 36.1   difference between what the MFIP transitional standard is if an 
 36.2   individual is included in the assistance unit and what the MFIP 
 36.3   transitional standard is when an individual is not included in 
 36.4   the assistance unit; 
 36.5      (3) any amounts paid by the sponsor or the sponsor's spouse 
 36.6   to individuals not living in the household who are claimed by 
 36.7   the sponsor or sponsor's spouse for purposes of determining the 
 36.8   sponsor's federal income tax liability; and 
 36.9      (4) any payments of spousal maintenance or child support to 
 36.10  individuals not living in the household. 
 36.11     (b) If a person is a sponsor of two or more non-213A 
 36.12  immigrants who are living in the same home, the income and 
 36.13  assets of the sponsor and sponsor's spouse which is considered 
 36.14  under paragraph (a) shall be divided by the number of sponsored 
 36.15  immigrants, and the result shall be deemed to each sponsored 
 36.16  immigrant. 
 36.17     (c) A non-213A immigrant whose sponsor is or was a public 
 36.18  or private agency shall be ineligible for assistance under MFIP 
 36.19  during a period of three years after the immigrant enters the 
 36.20  United States, unless it is determined that the sponsoring 
 36.21  agency either no longer exists or has become unable to meet the 
 36.22  immigrant's needs. 
 36.23     (d) On or after December 19, 1997, if a noncitizen applies 
 36.24  for or receives MFIP-S MFIP, the county must deem the income and 
 36.25  assets of the noncitizen's sponsor and the sponsor's spouse who 
 36.26  have signed an affidavit of support for the noncitizen as 
 36.27  specified in Public Law Number 104-193, title IV, sections 421 
 36.28  and 422, the Personal Responsibility and Work Opportunity 
 36.29  Reconciliation Act of 1996.  The income of a sponsor and the 
 36.30  sponsor's spouse is considered unearned income of the 
 36.31  noncitizen.  The assets of a sponsor and the sponsor's spouse 
 36.32  are considered available assets of the noncitizen.  
 36.33     Sec. 39.  Minnesota Statutes 1998, section 256J.37, 
 36.34  subdivision 9, is amended to read: 
 36.35     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
 36.36  apply unearned income to the transitional applicable MFIP 
 37.1   standard.  When determining the amount of unearned income, the 
 37.2   county agency must deduct the costs necessary to secure payments 
 37.3   of unearned income.  These costs include legal fees, medical 
 37.4   fees, and mandatory deductions such as federal and state income 
 37.5   taxes. 
 37.6      (b) Effective July 1, 1999, the county agency shall count 
 37.7   $100 of the value of public and assisted rental subsidies 
 37.8   provided through the Department of Housing and Urban Development 
 37.9   (HUD) as unearned income.  The full amount of the subsidy must 
 37.10  be counted as unearned income when the subsidy is less than $100.
 37.11     Sec. 40.  Minnesota Statutes 1998, section 256J.37, 
 37.12  subdivision 10, is amended to read: 
 37.13     Subd. 10.  [TREATMENT OF LUMP SUMS.] (a) The county agency 
 37.14  must treat lump-sum payments as earned or unearned income.  If 
 37.15  the lump-sum payment is included in the category of income 
 37.16  identified in subdivision 9, it must be treated as unearned 
 37.17  income.  A lump sum is counted as income in the month received 
 37.18  and budgeted either prospectively or retrospectively depending 
 37.19  on the budget cycle at the time of receipt.  When an individual 
 37.20  receives a lump-sum payment, that lump sum must be combined with 
 37.21  all other earned and unearned income received in the same budget 
 37.22  month, and it must be applied according to paragraphs (a) to 
 37.23  (c). A lump sum may not be carried over into subsequent months.  
 37.24  Any funds that remain in the third month after the month of 
 37.25  receipt are counted in the asset limit. 
 37.26     (b) For a lump sum received by an applicant during the 
 37.27  first two months, prospective budgeting is used to determine the 
 37.28  payment and the lump sum must be combined with other earned or 
 37.29  unearned income received and budgeted in that prospective month. 
 37.30     (c) For a lump sum received by a participant after the 
 37.31  first two months of MFIP-S MFIP eligibility, the lump sum must 
 37.32  be combined with other income received in that budget month, and 
 37.33  the combined amount must be applied retrospectively against the 
 37.34  applicable payment month. 
 37.35     (d) When a lump sum, combined with other income under 
 37.36  paragraphs (b) and (c), is less than the transitional applicable 
 38.1   standard for the applicable appropriate payment month, the 
 38.2   assistance payment must be reduced according to the amount of 
 38.3   the countable income.  When the countable income is greater than 
 38.4   the transitional applicable standard or the family wage 
 38.5   standard, the assistance payment must be suspended for the 
 38.6   payment month. 
 38.7      Sec. 41.  Minnesota Statutes 1998, section 256J.38, 
 38.8   subdivision 4, is amended to read: 
 38.9      Subd. 4.  [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 
 38.10  participant may voluntarily repay, in part or in full, an 
 38.11  overpayment even if assistance is reduced under this 
 38.12  subdivision, until the total amount of the overpayment is 
 38.13  repaid.  When an overpayment occurs due to fraud, the county 
 38.14  agency must recover ten percent of the transitional applicable 
 38.15  standard or the amount of the monthly assistance payment, 
 38.16  whichever is less.  When a nonfraud overpayment occurs, the 
 38.17  county agency must recover three percent of the transitional 
 38.18  applicable standard or the amount of the monthly assistance 
 38.19  payment, whichever is less.  
 38.20     Sec. 42.  Minnesota Statutes 1998, section 256J.39, 
 38.21  subdivision 2, is amended to read: 
 38.22     Subd. 2.  [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 
 38.23  paying assistance directly to a participant may be used when: 
 38.24     (1) a county agency determines that a vendor payment is the 
 38.25  most effective way to resolve an emergency situation pertaining 
 38.26  to basic needs; 
 38.27     (2) a caregiver makes a written request to the county 
 38.28  agency asking that part or all of the assistance payment be 
 38.29  issued by protective or vendor payments for shelter and utility 
 38.30  service only.  The caregiver may withdraw this request in 
 38.31  writing at any time; 
 38.32     (3) the vendor payment is part of a sanction under section 
 38.33  256J.46; 
 38.34     (4) the vendor payment is required under section 256J.24, 
 38.35  subdivision 8, 256J.26, or 256J.43; 
 38.36     (5) protective payments are required for minor parents 
 39.1   under section 256J.14; or 
 39.2      (6) a caregiver has exhibited a continuing pattern of 
 39.3   mismanaging funds as determined by the county agency. 
 39.4      The director of a county agency must approve a proposal for 
 39.5   protective or vendor payment for money mismanagement when there 
 39.6   is a pattern of mismanagement under clause (6).  During the time 
 39.7   a protective or vendor payment is being made, the county agency 
 39.8   must provide services designed to alleviate the causes of the 
 39.9   mismanagement. 
 39.10     The continuing need for and method of payment must be 
 39.11  documented and reviewed every 12 months.  The director of a 
 39.12  county agency must approve the continuation of protective or 
 39.13  vendor payments.  When it appears that the need for protective 
 39.14  or vendor payments will continue or is likely to continue beyond 
 39.15  two years because the county agency's efforts have not resulted 
 39.16  in sufficiently improved use of assistance on behalf of the 
 39.17  minor child, judicial appointment of a legal guardian or other 
 39.18  legal representative must be sought by the county agency. 
 39.19     Sec. 43.  Minnesota Statutes 1998, section 256J.42, 
 39.20  subdivision 1, is amended to read: 
 39.21     Subdivision 1.  [TIME LIMIT.] (a) Except for the exemptions 
 39.22  in this section and in section 256J.11, subdivision 2, an 
 39.23  assistance unit in which any adult caregiver has received 60 
 39.24  months of cash assistance funded in whole or in part by the TANF 
 39.25  block grant in this or any other state or United States 
 39.26  territory, MFIP-S MFIP, AFDC, or family general assistance, 
 39.27  funded in whole or in part by state appropriations, is 
 39.28  ineligible to receive MFIP-S MFIP.  Any cash assistance funded 
 39.29  with TANF dollars in this or any other state or United States 
 39.30  territory, or MFIP-S MFIP assistance funded in whole or in part 
 39.31  by state appropriations, that was received by the unit on or 
 39.32  after the date TANF was implemented, including any assistance 
 39.33  received in states or United States territories of prior 
 39.34  residence, counts toward the 60-month limitation.  The 60-month 
 39.35  limit applies to a minor who is the head of a household or who 
 39.36  is married to the head of a household except under subdivision 
 40.1   5.  The 60-month time period does not need to be consecutive 
 40.2   months for this provision to apply.  
 40.3      (b) The months before July 1998 in which individuals 
 40.4   receive received assistance as part of the field trials as an 
 40.5   MFIP, MFIP-R, or MFIP or MFIP-R comparison group family under 
 40.6   sections 256.031 to 256.0361 or sections 256.047 to 256.048 are 
 40.7   not included in the 60-month time limit. 
 40.8      Sec. 44.  Minnesota Statutes 1998, section 256J.42, 
 40.9   subdivision 5, is amended to read: 
 40.10     Subd. 5.  [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 
 40.11  assistance received by an assistance unit does not count toward 
 40.12  the 60-month limit on assistance during a month in which the 
 40.13  caregiver is in the category in section 256J.56, paragraph (a), 
 40.14  clause (1). The exemption applies for the period of time the 
 40.15  caregiver belongs to one of the categories specified in this 
 40.16  subdivision. 
 40.17     (b) From July 1, 1997, until the date MFIP-S MFIP is 
 40.18  operative in the caregiver's county of financial responsibility, 
 40.19  any cash assistance received by a caregiver who is complying 
 40.20  with sections 256.73, subdivision 5a, and 256.736, if 
 40.21  applicable, does not count toward the 60-month limit on 
 40.22  assistance.  Thereafter, any cash assistance received by a minor 
 40.23  caregiver who is complying with the requirements of sections 
 40.24  256J.14 and 256J.54, if applicable, does not count towards the 
 40.25  60-month limit on assistance. 
 40.26     (c) Any diversionary assistance or emergency assistance 
 40.27  received does not count toward the 60-month limit. 
 40.28     (d) Any cash assistance received by an 18- or 19-year-old 
 40.29  caregiver who is complying with the requirements of section 
 40.30  256J.54 does not count toward the 60-month limit. 
 40.31     Sec. 45.  Minnesota Statutes 1998, section 256J.43, 
 40.32  subdivision 4, is amended to read: 
 40.33     Subd. 4.  [INELIGIBLE MANDATORY UNIT MEMBERS.] Ineligible 
 40.34  mandatory unit members who have resided in Minnesota for 12 
 40.35  months immediately before the unit's date of application 
 40.36  establish the other assistance unit members' eligibility for the 
 41.1   MFIP-S transitional applicable standard.  
 41.2      Sec. 46.  Minnesota Statutes 1998, section 256J.45, 
 41.3   subdivision 1, is amended to read: 
 41.4      Subdivision 1.  [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 
 41.5   county agency must provide each MFIP-S MFIP caregiver who is not 
 41.6   exempt under section 256J.56, paragraph (a), clause (6) or (8), 
 41.7   with a face-to-face orientation.  The caregiver must attend the 
 41.8   orientation.  The county agency must inform the caregiver 
 41.9   caregivers who are not exempt under section 256J.56, paragraph 
 41.10  (a), clause (6) or (8), that failure to attend the orientation 
 41.11  is considered an occurrence of noncompliance with program 
 41.12  requirements, and will result in the imposition of a sanction 
 41.13  under section 256J.46.  If the client complies with the 
 41.14  orientation requirement prior to the first day of the month in 
 41.15  which the grant reduction is proposed to occur, the orientation 
 41.16  sanction shall be lifted.  
 41.17     Sec. 47.  Minnesota Statutes 1998, section 256J.46, 
 41.18  subdivision 1, is amended to read: 
 41.19     Subdivision 1.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 
 41.20  WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 
 41.21  good cause to comply with the requirements of this chapter, and 
 41.22  who is not subject to a sanction under subdivision 2, shall be 
 41.23  subject to a sanction as provided in this subdivision. 
 41.24     A sanction under this subdivision becomes effective the 
 41.25  month following the month in which a required notice is given.  
 41.26  A sanction must not be imposed when a participant comes into 
 41.27  compliance with the requirements for orientation under section 
 41.28  256J.45 or third-party liability for medical services under 
 41.29  section 256J.30, subdivision 10, prior to the effective date of 
 41.30  the sanction.  A sanction must not be imposed when a participant 
 41.31  comes into compliance with the requirements for employment and 
 41.32  training services under sections 256J.49 to 256J.72 ten days 
 41.33  prior to the effective date of the sanction.  For purposes of 
 41.34  this subdivision, each month that a participant fails to comply 
 41.35  with a requirement of this chapter shall be considered a 
 41.36  separate occurrence of noncompliance.  A participant who has had 
 42.1   one or more sanctions imposed must remain in compliance with the 
 42.2   provisions of this chapter for six months in order for a 
 42.3   subsequent occurrence of noncompliance to be considered a first 
 42.4   occurrence.  
 42.5      (b) Sanctions for noncompliance shall be imposed as follows:
 42.6      (1) For the first occurrence of noncompliance by a 
 42.7   participant in a single-parent household or by one participant 
 42.8   in a two-parent household, the assistance unit's grant shall be 
 42.9   reduced by ten percent of the MFIP-S transitional applicable 
 42.10  standard, the shared household standard, or the interstate 
 42.11  transitional standard for an assistance unit of the same size, 
 42.12  whichever is applicable, with the residual grant paid to the 
 42.13  participant.  The reduction in the grant amount must be in 
 42.14  effect for a minimum of one month and shall be removed in the 
 42.15  month following the month that the participant returns to 
 42.16  compliance.  
 42.17     (2) For a second or subsequent occurrence of noncompliance, 
 42.18  or when both participants in a two-parent household are out of 
 42.19  compliance at the same time, the assistance unit's shelter costs 
 42.20  shall be vendor paid up to the amount of the cash portion of the 
 42.21  MFIP-S MFIP grant for which the participant's assistance unit is 
 42.22  eligible.  At county option, the assistance unit's utilities may 
 42.23  also be vendor paid up to the amount of the cash portion of the 
 42.24  MFIP-S MFIP grant remaining after vendor payment of the 
 42.25  assistance unit's shelter costs.  The residual amount of the 
 42.26  grant after vendor payment, if any, must be reduced by an amount 
 42.27  equal to 30 percent of the MFIP-S transitional applicable 
 42.28  standard, the shared household standard, or the interstate 
 42.29  transitional standard for an assistance unit of the same size, 
 42.30  whichever is applicable, before the residual grant is paid to 
 42.31  the assistance unit.  The reduction in the grant amount must be 
 42.32  in effect for a minimum of one month and shall be removed in the 
 42.33  month following the month that a participant in a one-parent 
 42.34  household returns to compliance.  In a two-parent household, the 
 42.35  grant reduction must be in effect for a minimum of one month and 
 42.36  shall be removed in the month following the month both 
 43.1   participants return to compliance.  The vendor payment of 
 43.2   shelter costs and, if applicable, utilities shall be removed six 
 43.3   months after the month in which the participant or participants 
 43.4   return to compliance. 
 43.5      (c) No later than during the second month that a sanction 
 43.6   under paragraph (b), clause (2), is in effect due to 
 43.7   noncompliance with employment services, the participant's case 
 43.8   file must be reviewed to determine if: 
 43.9      (i) the continued noncompliance can be explained and 
 43.10  mitigated by providing a needed preemployment activity, as 
 43.11  defined in section 256J.49, subdivision 13, clause (16); 
 43.12     (ii) the participant qualifies for a good cause exception 
 43.13  under section 256J.57; or 
 43.14     (iii) the participant qualifies for an exemption under 
 43.15  section 256J.56. 
 43.16     If the lack of an identified activity can explain the 
 43.17  noncompliance, the county must work with the participant to 
 43.18  provide the identified activity, and the county must restore the 
 43.19  participant's grant amount to the full amount for which the 
 43.20  assistance unit is eligible.  The grant must be restored 
 43.21  retroactively to the first day of the month in which the 
 43.22  participant was found to lack preemployment activities or to 
 43.23  qualify for an exemption or good cause exception. 
 43.24     If the participant is found to qualify for a good cause 
 43.25  exception or an exemption, the county must restore the 
 43.26  participant's grant to the full amount for which the assistance 
 43.27  unit is eligible.  
 43.28     Sec. 48.  Minnesota Statutes 1998, section 256J.46, 
 43.29  subdivision 2, is amended to read: 
 43.30     Subd. 2.  [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 
 43.31  REQUIREMENTS.] The grant of an MFIP-S MFIP caregiver who refuses 
 43.32  to cooperate, as determined by the child support enforcement 
 43.33  agency, with support requirements under section 256.741, shall 
 43.34  be subject to sanction as specified in this subdivision.  The 
 43.35  assistance unit's grant must be reduced by 25 percent of the 
 43.36  applicable transitional standard.  The residual amount of the 
 44.1   grant, if any, must be paid to the caregiver.  A sanction under 
 44.2   this subdivision becomes effective the first month following the 
 44.3   month in which a required notice is given.  A sanction must not 
 44.4   be imposed when a caregiver comes into compliance with the 
 44.5   requirements under section 256.741 prior to the effective date 
 44.6   of the sanction.  The sanction shall be removed in the month 
 44.7   following the month that the caregiver cooperates with the 
 44.8   support requirements.  Each month that an MFIP-S MFIP caregiver 
 44.9   fails to comply with the requirements of section 256.741 must be 
 44.10  considered a separate occurrence of noncompliance.  An MFIP-S 
 44.11  MFIP caregiver who has had one or more sanctions imposed must 
 44.12  remain in compliance with the requirements of section 256.741 
 44.13  for six months in order for a subsequent sanction to be 
 44.14  considered a first occurrence. 
 44.15     Sec. 49.  Minnesota Statutes 1998, section 256J.46, 
 44.16  subdivision 2a, is amended to read: 
 44.17     Subd. 2a.  [DUAL SANCTIONS.] (a) Notwithstanding the 
 44.18  provisions of subdivisions 1 and 2, for a participant subject to 
 44.19  a sanction for refusal to comply with child support requirements 
 44.20  under subdivision 2 and subject to a concurrent sanction for 
 44.21  refusal to cooperate with other program requirements under 
 44.22  subdivision 1, sanctions shall be imposed in the manner 
 44.23  prescribed in this subdivision. 
 44.24     A participant who has had one or more sanctions imposed 
 44.25  under this subdivision must remain in compliance with the 
 44.26  provisions of this chapter for six months in order for a 
 44.27  subsequent occurrence of noncompliance to be considered a first 
 44.28  occurrence.  Any vendor payment of shelter costs or utilities 
 44.29  under this subdivision must remain in effect for six months 
 44.30  after the month in which the participant is no longer subject to 
 44.31  sanction under subdivision 1. 
 44.32     (b) If the participant was subject to sanction for: 
 44.33     (i) noncompliance under subdivision 1 before being subject 
 44.34  to sanction for noncooperation under subdivision 2; or 
 44.35     (ii) noncooperation under subdivision 2 before being 
 44.36  subject to sanction for noncompliance under subdivision 1; 
 45.1   the participant shall be sanctioned as provided in subdivision 
 45.2   1, paragraph (b), clause (2), and the requirement that the 
 45.3   county conduct a review as specified in subdivision 1, paragraph 
 45.4   (c), remains in effect. 
 45.5      (c) A participant who first becomes subject to sanction 
 45.6   under both subdivisions 1 and 2 in the same month is subject to 
 45.7   sanction as follows: 
 45.8      (i) in the first month of noncompliance and noncooperation, 
 45.9   the participant's grant must be reduced by 25 percent of the 
 45.10  applicable transitional standard, with any residual amount paid 
 45.11  to the participant; 
 45.12     (ii) in the second and subsequent months of noncompliance 
 45.13  and noncooperation, the participant shall be sanctioned as 
 45.14  provided in subdivision 1, paragraph (b), clause (2). 
 45.15     The requirement that the county conduct a review as 
 45.16  specified in subdivision 1, paragraph (c), remains in effect. 
 45.17     (d) A participant remains subject to sanction under 
 45.18  subdivision 2 if the participant: 
 45.19     (i) returns to compliance and is no longer subject to 
 45.20  sanction under subdivision 1; or 
 45.21     (ii) has the sanction under subdivision 1, paragraph (b), 
 45.22  removed upon completion of the review under subdivision 1, 
 45.23  paragraph (c). 
 45.24     A participant remains subject to sanction under subdivision 
 45.25  1, paragraph (b), if the participant cooperates and is no longer 
 45.26  subject to sanction under subdivision 2. 
 45.27     Sec. 50.  Minnesota Statutes 1998, section 256J.48, 
 45.28  subdivision 2, is amended to read: 
 45.29     Subd. 2.  [ELIGIBILITY.] Notwithstanding other eligibility 
 45.30  provisions of this chapter, any family without resources 
 45.31  immediately available to meet emergency needs identified in 
 45.32  subdivision 3 shall be eligible for an emergency grant under the 
 45.33  following conditions: 
 45.34     (1) a family member has resided in this state for at least 
 45.35  30 days; 
 45.36     (2) the family is without resources immediately available 
 46.1   to meet emergency needs; 
 46.2      (3) assistance is necessary to avoid destitution or provide 
 46.3   emergency shelter arrangements; 
 46.4      (4) the family's destitution or need for shelter or 
 46.5   utilities did not arise because the assistance unit is under 
 46.6   sanction, the caregiver is disqualified, or the child or 
 46.7   relative caregiver refused without good cause under section 
 46.8   256J.57 to accept employment or training for employment in this 
 46.9   state or another state; and 
 46.10     (5) at least one child or pregnant woman in the emergency 
 46.11  assistance unit meets MFIP-S MFIP citizenship requirements in 
 46.12  section 256J.11. 
 46.13     Sec. 51.  Minnesota Statutes 1998, section 256J.48, 
 46.14  subdivision 3, is amended to read: 
 46.15     Subd. 3.  [EMERGENCY NEEDS.] Emergency needs are limited to 
 46.16  the following: 
 46.17     (a)  [RENT.] A county agency may deny assistance to prevent 
 46.18  eviction from rented or leased shelter of an otherwise eligible 
 46.19  applicant when the county agency determines that an applicant's 
 46.20  anticipated income will not cover continued payment for shelter, 
 46.21  subject to conditions in clauses (1) to (3): 
 46.22     (1) a county agency must not deny assistance when an 
 46.23  applicant can document that the applicant is unable to locate 
 46.24  habitable shelter, unless the county agency can document that 
 46.25  one or more habitable shelters are available in the community 
 46.26  that will result in at least a 20 percent reduction in monthly 
 46.27  expense for shelter and that this shelter will be cost-effective 
 46.28  for the applicant; 
 46.29     (2) when no alternative shelter can be identified by either 
 46.30  the applicant or the county agency, the county agency shall not 
 46.31  deny assistance because anticipated income will not cover rental 
 46.32  obligation; and 
 46.33     (3) when cost-effective alternative shelter is identified, 
 46.34  the county agency shall issue assistance for moving expenses as 
 46.35  provided in paragraph (e). 
 46.36     (b)  [DEFINITIONS.] For purposes of paragraph (a), the 
 47.1   following definitions apply (1) "metropolitan statistical area" 
 47.2   is as defined by the United States Census Bureau; (2) 
 47.3   "alternative shelter" includes any shelter that is located 
 47.4   within the metropolitan statistical area containing the county 
 47.5   and for which the applicant is eligible, provided the applicant 
 47.6   does not have to travel more than 20 miles to reach the shelter 
 47.7   and has access to transportation to the shelter.  Clause (2) 
 47.8   does not apply to counties in the Minneapolis-St. Paul 
 47.9   metropolitan statistical area. 
 47.10     (c)  [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 
 47.11  agency shall issue assistance for mortgage or contract for deed 
 47.12  arrearages on behalf of an otherwise eligible applicant 
 47.13  according to clauses (1) to (4): 
 47.14     (1) assistance for arrearages must be issued only when a 
 47.15  home is owned, occupied, and maintained by the applicant; 
 47.16     (2) assistance for arrearages must be issued only when no 
 47.17  subsequent foreclosure action is expected within the 12 months 
 47.18  following the issuance; 
 47.19     (3) assistance for arrearages must be issued only when an 
 47.20  applicant has been refused refinancing through a bank or other 
 47.21  lending institution and the amount payable, when combined with 
 47.22  any payments made by the applicant, will be accepted by the 
 47.23  creditor as full payment of the arrearage; 
 47.24     (4) costs paid by a family which are counted toward the 
 47.25  payment requirements in this clause are:  principal and interest 
 47.26  payments on mortgages or contracts for deed, balloon payments, 
 47.27  homeowner's insurance payments, manufactured home lot rental 
 47.28  payments, and tax or special assessment payments related to the 
 47.29  homestead.  Costs which are not counted include closing costs 
 47.30  related to the sale or purchase of real property. 
 47.31     To be eligible for assistance for costs specified in clause 
 47.32  (4) which are outstanding at the time of foreclosure, an 
 47.33  applicant must have paid at least 40 percent of the family's 
 47.34  gross income toward these costs in the month of application and 
 47.35  the 11-month period immediately preceding the month of 
 47.36  application. 
 48.1      When an applicant is eligible under clause (4), a county 
 48.2   agency shall issue assistance up to a maximum of four times the 
 48.3   MFIP-S MFIP transitional standard for a comparable assistance 
 48.4   unit. 
 48.5      (d)  [DAMAGE OR UTILITY DEPOSITS.] A county agency shall 
 48.6   issue assistance for damage or utility deposits when necessary 
 48.7   to alleviate the emergency.  The county may require that 
 48.8   assistance paid in the form of a damage deposit, less any amount 
 48.9   retained by the landlord to remedy a tenant's default in payment 
 48.10  of rent or other funds due to the landlord under a rental 
 48.11  agreement, or to restore the premises to the condition at the 
 48.12  commencement of the tenancy, ordinary wear and tear excepted, be 
 48.13  returned to the county when the individual vacates the premises 
 48.14  or be paid to the recipient's new landlord as a vendor payment.  
 48.15  The county may require that assistance paid in the form of a 
 48.16  utility deposit less any amount retained to satisfy outstanding 
 48.17  utility costs be returned to the county when the person vacates 
 48.18  the premises, or be paid for the person's new housing unit as a 
 48.19  vendor payment.  The vendor payment of returned funds shall not 
 48.20  be considered a new use of emergency assistance. 
 48.21     (e)  [MOVING EXPENSES.] A county agency shall issue 
 48.22  assistance for expenses incurred when a family must move to a 
 48.23  different shelter according to clauses (1) to (4): 
 48.24     (1) moving expenses include the cost to transport personal 
 48.25  property belonging to a family, the cost for utility connection, 
 48.26  and the cost for securing different shelter; 
 48.27     (2) moving expenses must be paid only when the county 
 48.28  agency determines that a move is cost-effective; 
 48.29     (3) moving expenses must be paid at the request of an 
 48.30  applicant, but only when destitution or threatened destitution 
 48.31  exists; and 
 48.32     (4) moving expenses must be paid when a county agency 
 48.33  denies assistance to prevent an eviction because the county 
 48.34  agency has determined that an applicant's anticipated income 
 48.35  will not cover continued shelter obligation in paragraph (a). 
 48.36     (f)  [HOME REPAIRS.] A county agency shall pay for repairs 
 49.1   to the roof, foundation, wiring, heating system, chimney, and 
 49.2   water and sewer system of a home that is owned and lived in by 
 49.3   an applicant. 
 49.4      The applicant shall document, and the county agency shall 
 49.5   verify the need for and method of repair. 
 49.6      The payment must be cost-effective in relation to the 
 49.7   overall condition of the home and in relation to the cost and 
 49.8   availability of alternative housing. 
 49.9      (g)  [UTILITY COSTS.] Assistance for utility costs must be 
 49.10  made when an otherwise eligible family has had a termination or 
 49.11  is threatened with a termination of municipal water and sewer 
 49.12  service, electric, gas or heating fuel service, refuse removal 
 49.13  service, or lacks wood when that is the heating source, subject 
 49.14  to the conditions in clauses (1) and (2): 
 49.15     (1) a county agency must not issue assistance unless the 
 49.16  county agency receives confirmation from the utility provider 
 49.17  that assistance combined with payment by the applicant will 
 49.18  continue or restore the utility; and 
 49.19     (2) a county agency shall not issue assistance for utility 
 49.20  costs unless a family paid at least eight percent of the 
 49.21  family's gross income toward utility costs due during the 
 49.22  preceding 12 months. 
 49.23     Clauses (1) and (2) must not be construed to prevent the 
 49.24  issuance of assistance when a county agency must take immediate 
 49.25  and temporary action necessary to protect the life or health of 
 49.26  a child. 
 49.27     (h)  [SPECIAL DIETS.] Effective January 1, 1998, a county 
 49.28  shall pay for special diets or dietary items for MFIP-S MFIP 
 49.29  participants.  Persons receiving emergency assistance funds for 
 49.30  special diets or dietary items are also eligible to receive 
 49.31  emergency assistance for shelter and utility emergencies, if 
 49.32  otherwise eligible.  The need for special diets or dietary items 
 49.33  must be prescribed by a licensed physician.  Costs for special 
 49.34  diets shall be determined as percentages of the allotment for a 
 49.35  one-person household under the Thrifty Food Plan as defined by 
 49.36  the United States Department of Agriculture.  The types of diets 
 50.1   and the percentages of the Thrifty Food Plan that are covered 
 50.2   are as follows: 
 50.3      (1) high protein diet, at least 80 grams daily, 25 percent 
 50.4   of Thrifty Food Plan; 
 50.5      (2) controlled protein diet, 40 to 60 grams and requires 
 50.6   special products, 100 percent of Thrifty Food Plan; 
 50.7      (3) controlled protein diet, less than 40 grams and 
 50.8   requires special products, 125 percent of Thrifty Food Plan; 
 50.9      (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 
 50.10     (5) high residue diet, 20 percent of Thrifty Food Plan; 
 50.11     (6) pregnancy and lactation diet, 35 percent of Thrifty 
 50.12  Food Plan; 
 50.13     (7) gluten-free diet, 25 percent of Thrifty Food Plan; 
 50.14     (8) lactose-free diet, 25 percent of Thrifty Food Plan; 
 50.15     (9) antidumping diet, 15 percent of Thrifty Food Plan; 
 50.16     (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 
 50.17     (11) ketogenic diet, 25 percent of Thrifty Food Plan. 
 50.18     Sec. 52.  Minnesota Statutes 1998, section 256J.50, 
 50.19  subdivision 1, is amended to read: 
 50.20     Subdivision 1.  [EMPLOYMENT AND TRAINING SERVICES COMPONENT 
 50.21  OF MFIP-S MFIP.] (a) By January 1, 1998, each county must 
 50.22  develop and implement an employment and training services 
 50.23  component of MFIP-S MFIP which is designed to put participants 
 50.24  on the most direct path to unsubsidized employment.  
 50.25  Participation in these services is mandatory for all MFIP-S MFIP 
 50.26  caregivers, unless the caregiver is exempt under section 256J.56.
 50.27     (b) A county may provide employment and training services 
 50.28  to MFIP-S caregivers who are exempt from the employment and 
 50.29  training services component but volunteer for the services. A 
 50.30  county must provide employment and training services under 
 50.31  sections 256J.515 to 256J.57 within 30 days after the 
 50.32  caregiver's participation becomes mandatory under subdivision 5. 
 50.33     Sec. 53.  Minnesota Statutes 1998, section 256J.515, is 
 50.34  amended to read: 
 50.35     256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 
 50.36     During the first meeting with participants, job counselors 
 51.1   must ensure that an overview of employment and training services 
 51.2   is provided that: 
 51.3      (1) stresses the necessity and opportunity of immediate 
 51.4   employment; 
 51.5      (2) outlines the job search resources offered; 
 51.6      (3) outlines education or training opportunities available; 
 51.7      (4) describes the range of work activities, including 
 51.8   activities under section 256J.49, subdivision 13, clause (18), 
 51.9   that are allowable under MFIP-S to meet the individual needs of 
 51.10  participants; 
 51.11     (5) explains the requirements to comply with an employment 
 51.12  plan; 
 51.13     (6) explains the consequences for failing to comply; and 
 51.14     (7) explains the services that are available to support job 
 51.15  search and work and education. 
 51.16     Failure to attend the overview of employment and training 
 51.17  services without good cause results in the imposition of a 
 51.18  sanction under section 256J.46. 
 51.19     Sec. 54.  Minnesota Statutes 1998, section 256J.52, 
 51.20  subdivision 1, is amended to read: 
 51.21     Subdivision 1.  [APPLICATION LIMITED TO CERTAIN 
 51.22  PARTICIPANTS.] This section applies to participants receiving 
 51.23  MFIP-S MFIP assistance who are not exempt under section 256J.56, 
 51.24  and to caregivers who volunteer for employment and training 
 51.25  services under section 256J.50. 
 51.26     Sec. 55.  Minnesota Statutes 1998, section 256J.52, 
 51.27  subdivision 4, is amended to read: 
 51.28     Subd. 4.  [SECONDARY ASSESSMENT.] (a) The job counselor 
 51.29  must conduct a secondary assessment for those participants who: 
 51.30     (1) in the judgment of the job counselor, have barriers to 
 51.31  obtaining employment that will not be overcome with a job search 
 51.32  support plan under subdivision 3; 
 51.33     (2) have completed eight weeks of job search under 
 51.34  subdivision 3 without obtaining suitable employment; 
 51.35     (3) have not received a secondary assessment, are working 
 51.36  at least 20 hours per week, and the participant, job counselor, 
 52.1   or county agency requests a secondary assessment; or 
 52.2      (4) have an existing job search plan or employment plan 
 52.3   developed for another program or are already involved in 
 52.4   training or education activities under section 256J.55, 
 52.5   subdivision 5. 
 52.6      (b) In the secondary assessment the job counselor must 
 52.7   evaluate the participant's skills and prior work experience, 
 52.8   family circumstances, interests and abilities, need for 
 52.9   preemployment activities, supportive or educational services, 
 52.10  and the extent of any barriers to employment.  The job counselor 
 52.11  may require the participant complete a professional medical 
 52.12  substance abuse or psychological assessment as a component of 
 52.13  the secondary assessment.  Failure to complete a secondary 
 52.14  assessment shall result in the imposition of a sanction as 
 52.15  specified in sections 256J.46 and 256J.57.  The job counselor 
 52.16  must use the information gathered through the secondary 
 52.17  assessment to develop an employment plan under subdivision 5. 
 52.18     (c) The provider shall make available to participants 
 52.19  information regarding additional vendors or resources which 
 52.20  provide employment and training services that may be available 
 52.21  to the participant under a plan developed under this section.  
 52.22  The information must include a brief summary of services 
 52.23  provided and related performance indicators.  Performance 
 52.24  indicators must include, but are not limited to, the average 
 52.25  time to complete program offerings, placement rates, entry and 
 52.26  average wages, and retention rates.  To be included in the 
 52.27  information given to participants, a vendor or resource must 
 52.28  provide counties with relevant information in the format 
 52.29  required by the county. 
 52.30     Sec. 56.  Minnesota Statutes 1998, section 256J.55, 
 52.31  subdivision 4, is amended to read: 
 52.32     Subd. 4.  [CHOICE OF PROVIDER.] A participant MFIP 
 52.33  caregivers must be able to choose from at least two employment 
 52.34  and training service providers, unless the county has 
 52.35  demonstrated to the commissioner that the provision of multiple 
 52.36  employment and training service providers would result in 
 53.1   financial hardship for the county, or the county is utilizing a 
 53.2   workforce center as specified in section 256J.50, subdivision 
 53.3   8.  Both parents in a two-parent family must choose the same 
 53.4   employment and training service provider unless a special need, 
 53.5   such as bilingual services, is identified but not available 
 53.6   through one service provider. 
 53.7      Sec. 57.  Minnesota Statutes 1998, section 256J.56, is 
 53.8   amended to read: 
 53.9      256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
 53.10  EXEMPTIONS.] 
 53.11     (a) An MFIP-S MFIP caregiver is exempt from the 
 53.12  requirements of sections 256J.52 to 256J.55 if the caregiver 
 53.13  belongs to any of the following groups: 
 53.14     (1) individuals who are age 60 or older; 
 53.15     (2) individuals who are suffering from a professionally 
 53.16  certified permanent or temporary illness, injury, or incapacity 
 53.17  which is expected to continue for more than 30 days and which 
 53.18  prevents the person from obtaining or retaining employment.  
 53.19  Persons in this category with a temporary illness, injury, or 
 53.20  incapacity must be reevaluated at least quarterly.  A caregiver 
 53.21  who is exempt under this clause for 12 continuous months must 
 53.22  apply for supplemental security income or social security 
 53.23  disability benefits as prescribed in section 256J.30, 
 53.24  subdivision 2; 
 53.25     (3) caregivers whose presence in the home is required 
 53.26  because of the professionally certified illness or incapacity of 
 53.27  another member in the assistance unit, a relative in the 
 53.28  household, or a foster child in the household; 
 53.29     (4) women who are pregnant, if the pregnancy has resulted 
 53.30  in a professionally certified incapacity that prevents the woman 
 53.31  from obtaining or retaining employment; 
 53.32     (5) caregivers of a child under the age of one year who 
 53.33  personally provide full-time care for the child.  This exemption 
 53.34  may be used for only 12 months in a lifetime.  In two-parent 
 53.35  households, only one parent or other relative may qualify for 
 53.36  this exemption; 
 54.1      (6) individuals who are single parents, or one parent in a 
 54.2   two-parent family, employed at least 35 hours per week; 
 54.3      (7) individuals experiencing a personal or family crisis 
 54.4   that makes them incapable of participating in the program, as 
 54.5   determined by the county agency.  If the participant does not 
 54.6   agree with the county agency's determination, the participant 
 54.7   may seek professional certification, as defined in section 
 54.8   256J.08, that the participant is incapable of participating in 
 54.9   the program. 
 54.10     Persons in this exemption category must be reevaluated 
 54.11  every 60 days; or 
 54.12     (8) second parents in two-parent families employed for 20 
 54.13  or more hours per week, provided the first parent is employed at 
 54.14  least 35 hours per week. 
 54.15     A caregiver who is exempt under clause (5) must enroll in 
 54.16  and attend an early childhood and family education class, a 
 54.17  parenting class, or some similar activity, if available, during 
 54.18  the period of time the caregiver is exempt under this section.  
 54.19  Notwithstanding section 256J.46, failure to attend the required 
 54.20  activity shall not result in the imposition of a sanction. 
 54.21     (b) The county agency must provide employment and training 
 54.22  services to MFIP-S MFIP caregivers who are exempt under this 
 54.23  section, but who volunteer to participate.  Exempt volunteers 
 54.24  may request approval for any work activity under section 
 54.25  256J.49, subdivision 13.  The hourly participation requirements 
 54.26  for nonexempt caregivers under section 256J.50, subdivision 5, 
 54.27  do not apply to exempt caregivers who volunteer to participate. 
 54.28     Sec. 58.  Minnesota Statutes 1998, section 256J.62, 
 54.29  subdivision 1, is amended to read: 
 54.30     Subdivision 1.  [ALLOCATION.] Money appropriated for MFIP-S 
 54.31  MFIP employment and training services must be allocated to 
 54.32  counties and eligible tribal providers as specified in this 
 54.33  section. 
 54.34     Sec. 59.  Minnesota Statutes 1998, section 256J.62, is 
 54.35  amended by adding a subdivision to read: 
 54.36     Subd. 2a.  [CASELOAD-BASED FUNDS ALLOCATION.] Effective for 
 55.1   state fiscal year 2000, and for all subsequent years, money 
 55.2   shall be allocated to counties and eligible tribal providers 
 55.3   based on their average number of MFIP cases as a proportion of 
 55.4   the statewide total number of MFIP cases:  
 55.5      (1) the average number of cases must be based upon counts 
 55.6   of MFIP cases as of March 31, June 30, September 30, and 
 55.7   December 31 of the previous calendar year, less the number of 
 55.8   child only cases and cases where all the caregivers are age 60 
 55.9   or over.  Two-parent cases, with the exception of those with a 
 55.10  caregiver age 60 or over, will be multiplied by a factor of two; 
 55.11     (2) the MFIP case count for each eligible tribal provider 
 55.12  shall be based upon the number of MFIP cases who are enrolled 
 55.13  in, or are eligible for enrollment in their reservation; and the 
 55.14  case must be an active MFIP case; and the case members must 
 55.15  reside within the tribal program's service delivery area; 
 55.16     (3) MFIP cases counted for determining allocations to 
 55.17  tribal providers shall be removed from the case counts of the 
 55.18  respective counties where they reside to prevent duplicate 
 55.19  counts; and 
 55.20     (4) prior to allocating funds to counties and tribal 
 55.21  providers, $1,000,000 shall be set aside to allow the 
 55.22  commissioner to use these set-aside funds to provide funding to 
 55.23  county or tribal providers who experience an unforeseen influx 
 55.24  of participants or other emergent situations beyond their 
 55.25  control. 
 55.26  Any funds specified in this paragraph that remain unspent by 
 55.27  March 31 of each year shall be reallocated out to county and 
 55.28  tribal providers using the funding formula detailed in clauses 
 55.29  (1) to (4). 
 55.30     Sec. 60.  Minnesota Statutes 1998, section 256J.62, 
 55.31  subdivision 6, is amended to read: 
 55.32     Subd. 6.  [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 
 55.33  REFUGEES.] Funds appropriated to cover the costs of bilingual 
 55.34  employment and training services to refugees shall be allocated 
 55.35  to county agencies as follows: 
 55.36     (1) for state fiscal year 1998, the allocation shall be 
 56.1   based on the county's proportion of the total statewide number 
 56.2   of AFDC refugee cases in the previous fiscal year.  Counties 
 56.3   with less than one percent of the statewide number of AFDC, 
 56.4   MFIP-R, or MFIP refugee cases shall not receive an allocation of 
 56.5   bilingual employment and training services funds; and 
 56.6      (2) for each subsequent fiscal year, the allocation shall 
 56.7   be based on the county's proportion of the total statewide 
 56.8   number of MFIP-S MFIP refugee cases in the previous fiscal year. 
 56.9   Counties with less than one percent of the statewide number of 
 56.10  MFIP-S MFIP refugee cases shall not receive an allocation of 
 56.11  bilingual employment and training services funds. 
 56.12     Sec. 61.  Minnesota Statutes 1998, section 256J.62, 
 56.13  subdivision 7, is amended to read: 
 56.14     Subd. 7.  [WORK LITERACY LANGUAGE PROGRAMS.] Funds 
 56.15  appropriated to cover the costs of work literacy language 
 56.16  programs to non-English-speaking recipients shall be allocated 
 56.17  to county agencies as follows: 
 56.18     (1) for state fiscal year 1998, the allocation shall be 
 56.19  based on the county's proportion of the total statewide number 
 56.20  of AFDC or MFIP cases in the previous fiscal year where the lack 
 56.21  of English is a barrier to employment.  Counties with less than 
 56.22  two percent of the statewide number of AFDC or MFIP cases where 
 56.23  the lack of English is a barrier to employment shall not receive 
 56.24  an allocation of the work literacy language program funds; and 
 56.25     (2) for each subsequent fiscal year, the allocation shall 
 56.26  be based on the county's proportion of the total statewide 
 56.27  number of MFIP-S MFIP cases in the previous fiscal year where 
 56.28  the lack of English is a barrier to employment.  Counties with 
 56.29  less than two percent of the statewide number of MFIP-S MFIP 
 56.30  cases where the lack of English is a barrier to employment shall 
 56.31  not receive an allocation of the work literacy language program 
 56.32  funds. 
 56.33     Sec. 62.  Minnesota Statutes 1998, section 256J.62, 
 56.34  subdivision 8, is amended to read: 
 56.35     Subd. 8.  [REALLOCATION.] The commissioner of human 
 56.36  services shall review county agency expenditures of MFIP-S MFIP 
 57.1   employment and training services funds at the end of the third 
 57.2   quarter of the first year of the biennium and each quarter after 
 57.3   that and may reallocate unencumbered or unexpended money 
 57.4   appropriated under this section to those county agencies that 
 57.5   can demonstrate a need for additional money. 
 57.6      Sec. 63.  Minnesota Statutes 1998, section 256J.62, 
 57.7   subdivision 9, is amended to read: 
 57.8      Subd. 9.  [CONTINUATION OF CERTAIN SERVICES.] At the 
 57.9   request of the caregiver, the county may continue to provide 
 57.10  case management, counseling or other support services to a 
 57.11  participant following the participant's achievement of the 
 57.12  employment goal, for up to six months following termination of 
 57.13  the participant's eligibility for MFIP-S MFIP. 
 57.14     A county may expend funds for a specific employment and 
 57.15  training service for the duration of that service to a 
 57.16  participant if the funds are obligated or expended prior to the 
 57.17  participant losing MFIP-S MFIP eligibility. 
 57.18     Sec. 64.  Minnesota Statutes 1998, section 256J.74, 
 57.19  subdivision 2, is amended to read: 
 57.20     Subd. 2.  [CONCURRENT ELIGIBILITY, LIMITATIONS.] (a) An 
 57.21  individual whose needs have been otherwise provided for in 
 57.22  another state, in whole or in part by county, state, or federal 
 57.23  dollars during a month, is ineligible to receive MFIP for the 
 57.24  month.  
 57.25     (b) A county agency must not count an applicant or 
 57.26  participant as a member of more than one assistance unit in this 
 57.27  state in a given payment month, except as provided in clauses 
 57.28  (1) and (2). 
 57.29     (1) A participant who is a member of an assistance unit in 
 57.30  this state is eligible to be included in a second assistance 
 57.31  unit the first full month after the month the participant joins 
 57.32  the second unit. 
 57.33     (2) An applicant whose needs are met through federal, 
 57.34  state, or local foster care that is reimbursed under title IV-E 
 57.35  of the Social Security Act payments for the first part of an 
 57.36  application month is eligible to receive assistance for the 
 58.1   remaining part of the month in which the applicant returns 
 58.2   home.  Title IV-E Foster care payments and adoption assistance 
 58.3   payments must be considered prorated payments rather than a 
 58.4   duplication of MFIP-S MFIP need. 
 58.5      Sec. 65.  [256J.751] [COUNTY PERFORMANCE MANAGEMENT.] 
 58.6      (a) The commissioner shall report quarterly to all counties 
 58.7   each county's performance on the following measures: 
 58.8      (1) percent of MFIP caseload working in paid employment; 
 58.9      (2) percent of MFIP caseload receiving only the food 
 58.10  portion of assistance; 
 58.11     (3) number of MFIP cases that have left assistance; and 
 58.12     (4) federal participation requirements as specified in 
 58.13  title 1 of Public Law Number 104-193. 
 58.14     (b) By January 1, 2000, the commissioner shall, in 
 58.15  consultation with counties, develop measures for county 
 58.16  performance in addition to those in paragraph (a).  In 
 58.17  developing these measures, the commissioner must consider: 
 58.18     (1) a measure for MFIP cases that leave assistance due to 
 58.19  employment; 
 58.20     (2) job retention after participants leave MFIP; and 
 58.21     (3) participant's earnings at a follow-up point after the 
 58.22  participant has left MFIP. 
 58.23     (c) If sanctions occur for failure to meet the performance 
 58.24  standards specified in title 1 of Public Law Number 104-193 of 
 58.25  the Personal Responsibility and Work Opportunity Act of 1996, 
 58.26  the state shall pay 88 percent of the sanction.  The remaining 
 58.27  12 percent of the sanction will be paid by the counties.  The 
 58.28  county portion of the sanction will be distributed across all 
 58.29  counties in proportion to each county's percentage of the MFIP 
 58.30  average monthly caseload during the period for which the 
 58.31  sanction was applied. 
 58.32     (d) If a county fails to meet the performance standards 
 58.33  specified in title 1 of Public Law Number 104-193 of the 
 58.34  Personal Responsibility and Work Opportunity Act of 1996 for any 
 58.35  year, the commissioner shall work with counties to organize a 
 58.36  joint state-county technical assistance team to work with the 
 59.1   county.  The commissioner shall coordinate any technical 
 59.2   assistance with other departments and agencies including the 
 59.3   departments of economic security and children, families, and 
 59.4   learning as necessary to achieve the purpose of this paragraph. 
 59.5      Sec. 66.  Minnesota Statutes 1998, section 256J.76, 
 59.6   subdivision 1, is amended to read: 
 59.7      Subdivision 1.  [ADMINISTRATIVE FUNCTIONS.] Beginning July 
 59.8   1, 1997, counties will receive federal funds from the TANF block 
 59.9   grant for use in supporting eligibility, fraud control, and 
 59.10  other related administrative functions.  The federal funds 
 59.11  available for distribution, as determined by the commissioner, 
 59.12  must be an amount equal to federal administrative aid 
 59.13  distributed for fiscal year 1996 under titles IV-A and IV-F of 
 59.14  the Social Security Act in effect prior to October 1, 1996.  
 59.15  This amount must include the amount paid for local 
 59.16  collaboratives under sections 245.4932 and 256F.13, but must not 
 59.17  include administrative aid associated with child care under 
 59.18  section 119B.05, with emergency assistance intensive family 
 59.19  preservation services under section 256.8711, with 
 59.20  administrative activities as part of the employment and training 
 59.21  services under section 256.736, or with fraud prevention 
 59.22  investigation activities under section 256.983.  Before January 
 59.23  1, 2000, a county may ask for a review of the commissioner's 
 59.24  determination where the county believes fiscal year 1996 
 59.25  information was inaccurate or incomplete.  By April 1, 2000, the 
 59.26  commissioner must adjust that county's base when the 
 59.27  commissioner has determined that inaccurate or incomplete 
 59.28  information was used to develop that base.  The commissioner 
 59.29  shall make the adjustment starting fiscal year 2000. 
 59.30     Sec. 67.  Minnesota Statutes 1998, section 256J.76, 
 59.31  subdivision 2, is amended to read: 
 59.32     Subd. 2.  [ALLOCATION OF COUNTY FUNDS.] (a) The 
 59.33  commissioner shall determine and allocate the funds available to 
 59.34  each county, on a calendar year basis, proportional to the 
 59.35  amount paid to each county for fiscal year 1996, excluding the 
 59.36  amount paid for local collaboratives under sections 245.4932 and 
 60.1   256F.13.  For the period beginning July 1, 1997, and ending 
 60.2   December 31, 1998, each county shall receive 150 percent of its 
 60.3   base year allocation. 
 60.4      (b) Beginning January 1, 2000, the commissioner shall 
 60.5   allocate funds made available under this section on a calendar 
 60.6   year basis to each county first, in amounts equal to each 
 60.7   county's guaranteed floor as described in clause (1), second, to 
 60.8   provide an allocation of up to $2,000 to each county as provided 
 60.9   for in clause (2), and third, any remaining funds shall be 
 60.10  allocated in proportion to the sum of each county's average 
 60.11  monthly MFIP cases plus ten percent of each county's average 
 60.12  monthly MFIP recipients with budgeted earnings as determined by 
 60.13  the most recent calendar year data available. 
 60.14     (1) Each county's guaranteed floor shall be calculated as 
 60.15  follows: 
 60.16     (i) 90 percent of that county's allocation in the preceding 
 60.17  calendar year; or 
 60.18     (ii) when the amount of funds available is less than the 
 60.19  guaranteed floor, each county's allocation shall be equal to the 
 60.20  previous calendar year allocation reduced by the same percentage 
 60.21  that the statewide allocation was reduced. 
 60.22     (2) Each county shall be allocated up to $2,000.  If, after 
 60.23  application of the guaranteed floor, funds are insufficient to 
 60.24  provide $2,000 per county, each county's allocation under this 
 60.25  clause shall be an equal share of remaining funds available. 
 60.26     Sec. 68.  Minnesota Statutes 1998, section 256J.76, 
 60.27  subdivision 4, is amended to read: 
 60.28     Subd. 4.  [REPORTING REQUIREMENT AND REIMBURSEMENT.] The 
 60.29  commissioner shall specify requirements for reporting according 
 60.30  to section 256.01, subdivision 2, paragraph (17).  Each county 
 60.31  shall be reimbursed at a rate of 50 percent of eligible 
 60.32  expenditures up to the limit of its allocation.  The 
 60.33  commissioner shall regularly review each county's eligible 
 60.34  expenditures compared to its allocation.  The commissioner may 
 60.35  reallocate funds at any time, from counties which have not or 
 60.36  will not have expended their allocations, to counties that have 
 61.1   eligible expenditures in excess of their allocation. 
 61.2      Sec. 69.  [STUDY OF EXTENSIONS TO 60-MONTH LIMIT.] 
 61.3      By January 15, 2000, the commissioner of human services 
 61.4   shall submit to the legislature recommendations regarding how to 
 61.5   implement any extension of assistance to MFIP families that 
 61.6   includes an adult caregiver who has received 60 months of cash 
 61.7   assistance funded in whole or in part by the TANF block grant. 
 61.8      Sec. 70.  [REPEALER.] 
 61.9      Minnesota Statutes 1998, sections 256D.051, subdivisions 6 
 61.10  and 19; 256D.053, subdivision 4; 256J.396; and 256J.62, 
 61.11  subdivisions 2, 3, and 5, are repealed.