1.1                          A bill for an act 
  1.2             relating to human services; making technical changes 
  1.3             to cross-references in statutes; amending Minnesota 
  1.4             Statutes 1998, sections 13.46, subdivisions 1 and 2; 
  1.5             16D.02, subdivision 3; 16D.13, subdivision 3; 84.98, 
  1.6             subdivision 3; 119A.54; 119B.01, subdivisions 2, 10, 
  1.7             12, 13, 15, and 16; 119B.02, subdivision 1; 119B.03, 
  1.8             subdivisions 3 and 4; 119B.05, subdivision 1; 119B.07; 
  1.9             119B.075; 119B.08, subdivision 3; 119B.09, 
  1.10            subdivisions 1, 3, and 7; 119B.14; 119B.15; 136A.125, 
  1.11            subdivision 2; 145.415, subdivision 3; 196.27; 237.70, 
  1.12            subdivision 4a; 245.4871, subdivision 25; 254B.02, 
  1.13            subdivision 1; 256.01, subdivisions 2 and 4; 256.017, 
  1.14            subdivisions 1, 2, and 4; 256.019; 256.025, 
  1.15            subdivision 2; 256.046, subdivision 1; 256.0471, 
  1.16            subdivision 1; 256.741, subdivisions 1 and 2; 256.82, 
  1.17            subdivision 2; 256.935, subdivision 1; 256.98, 
  1.18            subdivisions 1 and 8; 256.981; 256.983, subdivision 4; 
  1.19            256.9861, subdivision 5; 256B.031, subdivisions 4 and 
  1.20            5; 256B.69, subdivision 5a; 256C.21; 256C.23, 
  1.21            subdivision 1; 256D.01, subdivisions 1a and 1e; 
  1.22            256D.05, subdivisions 1, 3, and 5; 256D.051, 
  1.23            subdivision 3a; 256D.055; 256D.23, subdivision 1; 
  1.24            256D.435, subdivision 3; 256D.44, subdivision 5; 
  1.25            256E.03, subdivision 2; 256E.06, subdivisions 1 and 3; 
  1.26            256E.07, subdivision 1; 256E.08, subdivision 3; 
  1.27            256F.05, subdivisions 3 and 8; 256F.10, subdivision 6; 
  1.28            256F.13, subdivision 3; 256G.01, subdivision 4; 
  1.29            256G.03, subdivision 2; 256J.01, subdivision 1; 
  1.30            256J.11, subdivisions 1 and 2; 256J.12, subdivision 1; 
  1.31            256J.21, subdivision 3; 256J.26, subdivisions 1, 2, 3, 
  1.32            and 4; 256J.42, subdivisions 1 and 5; 256J.43, 
  1.33            subdivision 1; 256J.50, subdivision 3a; 256J.62, 
  1.34            subdivisions 3, 6, and 7; 256J.76, subdivision 1; 
  1.35            256K.01, subdivisions 2, 3, and 8; 256K.015; 256K.02; 
  1.36            256K.03, subdivisions 1 and 12; 256K.04, subdivision 
  1.37            2; 256K.05, subdivision 2; 256K.06; 256K.07; 256K.08, 
  1.38            subdivision 1; 256L.11, subdivision 4; 257.33, 
  1.39            subdivision 2; 257.3573, subdivision 2; 257.60; 
  1.40            257.85, subdivisions 3, 5, 7, and 11; 259.67, 
  1.41            subdivision 4; 260.38; 261.063; 268.0111, subdivisions 
  1.42            5 and 7; 268.0122, subdivision 3; 268.552, subdivision 
  1.43            5; 268.672, subdivision 6; 268.86, subdivision 2; 
  1.44            268.871, subdivision 1; 268.90, subdivision 2; 268.95, 
  1.45            subdivision 4; 275.065, subdivision 5a; 290.067, 
  1.46            subdivision 1; 290A.03, subdivision 7; 393.07, 
  2.1             subdivision 6; 462A.205, subdivision 2; 462A.222, 
  2.2             subdivision 1a; 473.129, subdivision 8; 477A.0122, 
  2.3             subdivision 2; 501B.89, subdivision 2; 518.171, 
  2.4             subdivision 1; 518.551, subdivision 5; 518.57, 
  2.5             subdivision 3; 518.614, subdivision 3; 518.64, 
  2.6             subdivision 2; 548.13; 550.136, subdivision 6; 
  2.7             550.143, subdivision 3; 550.37, subdivision 14; 
  2.8             551.05, subdivision 1a; 551.06, subdivision 6; 
  2.9             570.025, subdivision 6; 570.026, subdivision 2; 
  2.10            571.72, subdivision 8; 571.912; 571.925; 571.931, 
  2.11            subdivision 6; 571.932, subdivision 2; and 583.22, 
  2.12            subdivision 7b; repealing Minnesota Statutes 1998, 
  2.13            sections 119B.01, subdivision 12a; 119B.05, 
  2.14            subdivision 6; 126C.05, subdivision 4; 126C.06; 
  2.15            256.031, subdivision 1a; 256.736; 256.74, subdivision 
  2.16            1c; 256.9850; 256J.62, subdivision 5; 268.871, 
  2.17            subdivision 5; and 290A.22; Minnesota Rules, parts 
  2.18            9500.2000; 9500.2020; 9500.2060; 9500.2100; 9500.2140; 
  2.19            9500.2180; 9500.2220; 9500.2260; 9500.2300; 9500.2340; 
  2.20            9500.2380; 9500.2420; 9500.2440; 9500.2480; 9500.2500; 
  2.21            9500.2520; 9500.2560; 9500.2580; 9500.2600; 9500.2620; 
  2.22            9500.2640; 9500.2680; 9500.2700; 9500.2720; 9500.2722; 
  2.23            9500.2724; 9500.2726; 9500.2728; 9500.2730; 9500.2740; 
  2.24            9500.2760; 9500.2780; 9500.2800; 9500.2820; 9500.2860; 
  2.25            and 9500.2880. 
  2.26  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.27     Section 1.  Minnesota Statutes 1998, section 13.46, 
  2.28  subdivision 1, is amended to read: 
  2.29     Subdivision 1.  [DEFINITIONS.] As used in this section: 
  2.30     (a) "Individual" means an individual according to section 
  2.31  13.02, subdivision 8, but does not include a vendor of services. 
  2.32     (b) "Program" includes all programs for which authority is 
  2.33  vested in a component of the welfare system according to statute 
  2.34  or federal law, including, but not limited to, the aid to 
  2.35  families with dependent children program formerly codified in 
  2.36  sections 256.72 to 256.87, Minnesota family investment 
  2.37  program-statewide, medical assistance, general assistance, 
  2.38  general assistance medical care, and child support collections.  
  2.39     (c) "Welfare system" includes the department of human 
  2.40  services, local social services agencies, county welfare 
  2.41  agencies, the public authority responsible for child support 
  2.42  enforcement, human services boards, community mental health 
  2.43  center boards, state hospitals, state nursing homes, the 
  2.44  ombudsman for mental health and mental retardation, and persons, 
  2.45  agencies, institutions, organizations, and other entities under 
  2.46  contract to any of the above agencies to the extent specified in 
  2.47  the contract. 
  2.48     (d) "Mental health data" means data on individual clients 
  3.1   and patients of community mental health centers, established 
  3.2   under section 245.62, mental health divisions of counties and 
  3.3   other providers under contract to deliver mental health 
  3.4   services, or the ombudsman for mental health and mental 
  3.5   retardation. 
  3.6      (e) "Fugitive felon" means a person who has been convicted 
  3.7   of a felony and who has escaped from confinement or violated the 
  3.8   terms of probation or parole for that offense. 
  3.9      Sec. 2.  Minnesota Statutes 1998, section 13.46, 
  3.10  subdivision 2, is amended to read: 
  3.11     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
  3.12  a statute specifically provides a different classification, data 
  3.13  on individuals collected, maintained, used, or disseminated by 
  3.14  the welfare system is private data on individuals, and shall not 
  3.15  be disclosed except:  
  3.16     (1) according to section 13.05; 
  3.17     (2) according to court order; 
  3.18     (3) according to a statute specifically authorizing access 
  3.19  to the private data; 
  3.20     (4) to an agent of the welfare system, including a law 
  3.21  enforcement person, attorney, or investigator acting for it in 
  3.22  the investigation or prosecution of a criminal or civil 
  3.23  proceeding relating to the administration of a program; 
  3.24     (5) to personnel of the welfare system who require the data 
  3.25  to determine eligibility, amount of assistance, and the need to 
  3.26  provide services of additional programs to the individual; 
  3.27     (6) to administer federal funds or programs; 
  3.28     (7) between personnel of the welfare system working in the 
  3.29  same program; 
  3.30     (8) the amounts of cash public assistance and relief paid 
  3.31  to welfare recipients in this state, including their names, 
  3.32  social security numbers, income, addresses, and other data as 
  3.33  required, upon request by the department of revenue to 
  3.34  administer the property tax refund law, supplemental housing 
  3.35  allowance, early refund of refundable tax credits, and the 
  3.36  income tax.  "Refundable tax credits" means the dependent care 
  4.1   credit under section 290.067, the Minnesota working family 
  4.2   credit under section 290.0671, the property tax refund under 
  4.3   section 290A.04, and, if the required federal waiver or waivers 
  4.4   are granted, the federal earned income tax credit under section 
  4.5   32 of the Internal Revenue Code; 
  4.6      (9) between the department of human services and the 
  4.7   Minnesota department of economic security for the purpose of 
  4.8   monitoring the eligibility of the data subject for reemployment 
  4.9   insurance, for any employment or training program administered, 
  4.10  supervised, or certified by that agency, for the purpose of 
  4.11  administering any rehabilitation program, whether alone or in 
  4.12  conjunction with the welfare system, or to monitor and evaluate 
  4.13  the statewide Minnesota family investment program by exchanging 
  4.14  data on recipients and former recipients of food stamps, cash 
  4.15  assistance under chapter 256, 256D, 256J, or 256K, child care 
  4.16  assistance under chapter 119B, or medical programs under chapter 
  4.17  256B, 256D, or 256L; 
  4.18     (10) to appropriate parties in connection with an emergency 
  4.19  if knowledge of the information is necessary to protect the 
  4.20  health or safety of the individual or other individuals or 
  4.21  persons; 
  4.22     (11) data maintained by residential programs as defined in 
  4.23  section 245A.02 may be disclosed to the protection and advocacy 
  4.24  system established in this state according to Part C of Public 
  4.25  Law Number 98-527 to protect the legal and human rights of 
  4.26  persons with mental retardation or other related conditions who 
  4.27  live in residential facilities for these persons if the 
  4.28  protection and advocacy system receives a complaint by or on 
  4.29  behalf of that person and the person does not have a legal 
  4.30  guardian or the state or a designee of the state is the legal 
  4.31  guardian of the person; 
  4.32     (12) to the county medical examiner or the county coroner 
  4.33  for identifying or locating relatives or friends of a deceased 
  4.34  person; 
  4.35     (13) data on a child support obligor who makes payments to 
  4.36  the public agency may be disclosed to the higher education 
  5.1   services office to the extent necessary to determine eligibility 
  5.2   under section 136A.121, subdivision 2, clause (5); 
  5.3      (14) participant social security numbers and names 
  5.4   collected by the telephone assistance program may be disclosed 
  5.5   to the department of revenue to conduct an electronic data match 
  5.6   with the property tax refund database to determine eligibility 
  5.7   under section 237.70, subdivision 4a; 
  5.8      (15) the current address of a recipient of aid to families 
  5.9   with dependent children or Minnesota family investment 
  5.10  program-statewide may be disclosed to law enforcement officers 
  5.11  who provide the name of the recipient and notify the agency that:
  5.12     (i) the recipient: 
  5.13     (A) is a fugitive felon fleeing to avoid prosecution, or 
  5.14  custody or confinement after conviction, for a crime or attempt 
  5.15  to commit a crime that is a felony under the laws of the 
  5.16  jurisdiction from which the individual is fleeing; or 
  5.17     (B) is violating a condition of probation or parole imposed 
  5.18  under state or federal law; 
  5.19     (ii) the location or apprehension of the felon is within 
  5.20  the law enforcement officer's official duties; and 
  5.21     (iii)  the request is made in writing and in the proper 
  5.22  exercise of those duties; 
  5.23     (16) the current address of a recipient of general 
  5.24  assistance or general assistance medical care may be disclosed 
  5.25  to probation officers and corrections agents who are supervising 
  5.26  the recipient and to law enforcement officers who are 
  5.27  investigating the recipient in connection with a felony level 
  5.28  offense; 
  5.29     (17) information obtained from food stamp applicant or 
  5.30  recipient households may be disclosed to local, state, or 
  5.31  federal law enforcement officials, upon their written request, 
  5.32  for the purpose of investigating an alleged violation of the 
  5.33  Food Stamp Act, according to Code of Federal Regulations, title 
  5.34  7, section 272.1(c); 
  5.35     (18) the address, social security number, and, if 
  5.36  available, photograph of any member of a household receiving 
  6.1   food stamps shall be made available, on request, to a local, 
  6.2   state, or federal law enforcement officer if the officer 
  6.3   furnishes the agency with the name of the member and notifies 
  6.4   the agency that:  
  6.5      (i) the member: 
  6.6      (A) is fleeing to avoid prosecution, or custody or 
  6.7   confinement after conviction, for a crime or attempt to commit a 
  6.8   crime that is a felony in the jurisdiction the member is 
  6.9   fleeing; 
  6.10     (B) is violating a condition of probation or parole imposed 
  6.11  under state or federal law; or 
  6.12     (C) has information that is necessary for the officer to 
  6.13  conduct an official duty related to conduct described in subitem 
  6.14  (A) or (B); 
  6.15     (ii) locating or apprehending the member is within the 
  6.16  officer's official duties; and 
  6.17     (iii) the request is made in writing and in the proper 
  6.18  exercise of the officer's official duty; 
  6.19     (19) certain information regarding child support obligors 
  6.20  who are in arrears may be made public according to section 
  6.21  518.575; 
  6.22     (20) data on child support payments made by a child support 
  6.23  obligor and data on the distribution of those payments excluding 
  6.24  identifying information on obligees may be disclosed to all 
  6.25  obligees to whom the obligor owes support, and data on the 
  6.26  enforcement actions undertaken by the public authority, the 
  6.27  status of those actions, and data on the income of the obligor 
  6.28  or obligee may be disclosed to the other party; 
  6.29     (21) data in the work reporting system may be disclosed 
  6.30  under section 256.998, subdivision 7; 
  6.31     (22) to the department of children, families, and learning 
  6.32  for the purpose of matching department of children, families, 
  6.33  and learning student data with public assistance data to 
  6.34  determine students eligible for free and reduced price meals, 
  6.35  meal supplements, and free milk according to United States Code, 
  6.36  title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 
  7.1   produce accurate numbers of students receiving aid to families 
  7.2   with dependent children or assistance from the Minnesota family 
  7.3   investment program-statewide program as required by section 
  7.4   126C.06; to allocate federal and state funds that are 
  7.5   distributed based on income of the student's family; and to 
  7.6   verify receipt of energy assistance for the telephone assistance 
  7.7   plan; 
  7.8      (23) the current address and telephone number of program 
  7.9   recipients and emergency contacts may be released to the 
  7.10  commissioner of health or a local board of health as defined in 
  7.11  section 145A.02, subdivision 2, when the commissioner or local 
  7.12  board of health has reason to believe that a program recipient 
  7.13  is a disease case, carrier, suspect case, or at risk of illness, 
  7.14  and the data are necessary to locate the person; 
  7.15     (24) to other state agencies, statewide systems, and 
  7.16  political subdivisions of this state, including the attorney 
  7.17  general, and agencies of other states, interstate information 
  7.18  networks, federal agencies, and other entities as required by 
  7.19  federal regulation or law for the administration of the child 
  7.20  support enforcement program; 
  7.21     (25) to personnel of public assistance programs as defined 
  7.22  in section 256.741, for access to the child support system 
  7.23  database for the purpose of administration, including monitoring 
  7.24  and evaluation of those public assistance programs; or 
  7.25     (26) to monitor and evaluate the statewide Minnesota family 
  7.26  investment program by exchanging data between the departments of 
  7.27  human services and children, families, and learning, on 
  7.28  recipients and former recipients of food stamps, cash assistance 
  7.29  under chapter 256, 256D, 256J, or 256K, child care assistance 
  7.30  under chapter 119B, or medical programs under chapter 256B, 
  7.31  256D, or 256L.  
  7.32     (b) Information on persons who have been treated for drug 
  7.33  or alcohol abuse may only be disclosed according to the 
  7.34  requirements of Code of Federal Regulations, title 42, sections 
  7.35  2.1 to 2.67. 
  7.36     (c) Data provided to law enforcement agencies under 
  8.1   paragraph (a), clause (15), (16), (17), or (18), or paragraph 
  8.2   (b), are investigative data and are confidential or protected 
  8.3   nonpublic while the investigation is active.  The data are 
  8.4   private after the investigation becomes inactive under section 
  8.5   13.82, subdivision 5, paragraph (a) or (b). 
  8.6      (d) Mental health data shall be treated as provided in 
  8.7   subdivisions 7, 8, and 9, but is not subject to the access 
  8.8   provisions of subdivision 10, paragraph (b). 
  8.9      Sec. 3.  Minnesota Statutes 1998, section 16D.02, 
  8.10  subdivision 3, is amended to read: 
  8.11     Subd. 3.  [DEBT.] "Debt" means an amount owed to the state 
  8.12  directly, or through a state agency, on account of a fee, duty, 
  8.13  lease, direct loan, loan insured or guaranteed by the state, 
  8.14  rent, service, sale of real or personal property, overpayment, 
  8.15  fine, assessment, penalty, restitution, damages, interest, tax, 
  8.16  bail bond, forfeiture, reimbursement, liability owed, an 
  8.17  assignment to the state including assignments under sections 
  8.18  256.72 to 256.87 section 256.741, the Social Security Act, or 
  8.19  other state or federal law, recovery of costs incurred by the 
  8.20  state, or any other source of indebtedness to the state.  Debt 
  8.21  also includes amounts owed to individuals as a result of civil, 
  8.22  criminal, or administrative action brought by the state or a 
  8.23  state agency pursuant to its statutory authority or for which 
  8.24  the state or state agency acts in a fiduciary capacity in 
  8.25  providing collection services in accordance with the regulations 
  8.26  adopted under the Social Security Act at Code of Federal 
  8.27  Regulations, title 45, section 302.33.  Debt also includes an 
  8.28  amount owed to the courts or University of Minnesota for which 
  8.29  the commissioner provides collection services pursuant to 
  8.30  contract. 
  8.31     Sec. 4.  Minnesota Statutes 1998, section 16D.13, 
  8.32  subdivision 3, is amended to read: 
  8.33     Subd. 3.  [EXCLUSION.] A state agency may not charge 
  8.34  interest under this section on overpayments of assistance 
  8.35  benefits under the programs formerly codified in sections 
  8.36  256.031 to 256.0361, 256.72 to 256.87, and under chapters 256D 
  9.1   and 256I, or the federal food stamp program.  Notwithstanding 
  9.2   this prohibition, any debts that have been reduced to judgment 
  9.3   under these programs are subject to the interest charges 
  9.4   provided under section 549.09. 
  9.5      Sec. 5.  Minnesota Statutes 1998, section 84.98, 
  9.6   subdivision 3, is amended to read: 
  9.7      Subd. 3.  [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 
  9.8   PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 
  9.9   determining economic, social, physical, or educational 
  9.10  disadvantage shall be determined as provided in this subdivision.
  9.11     (b) Economically disadvantaged are persons who meet the 
  9.12  criteria for disadvantaged established by the department of 
  9.13  economic security or persons receiving services provided by the 
  9.14  department of human services such as welfare payments, food 
  9.15  stamps, aid to families with dependent children or Minnesota 
  9.16  family investment program-statewide program.  
  9.17     (c) Socially disadvantaged are persons who have been 
  9.18  classified as persons in need of supervision by the court system.
  9.19     (d) Physically disadvantaged are persons who have been 
  9.20  identified as having special needs by public agencies that deal 
  9.21  with employment for the disabled. 
  9.22     (e) Educationally disadvantaged are persons who have 
  9.23  dropped out of school or are at risk of dropping out of school 
  9.24  and persons with learning disabilities or in need of special 
  9.25  education classes.  
  9.26     Sec. 6.  Minnesota Statutes 1998, section 119A.54, is 
  9.27  amended to read: 
  9.28     119A.54 [REPORTS.] 
  9.29     Each grantee shall submit an annual report to the 
  9.30  commissioner of children, families, and learning on the format 
  9.31  designated by the commissioner, including program information 
  9.32  report data.  By January 1 of each year, the commissioner shall 
  9.33  prepare an annual report to the health and human services policy 
  9.34  committee of the house of representatives and the health and 
  9.35  family services security committee of the senate concerning the 
  9.36  uses and impact of head start supplemental funding, including a 
 10.1   summary of innovative programs and the results of innovative 
 10.2   programs and an evaluation of the coordination of head start 
 10.3   programs with employment and training services provided to AFDC 
 10.4   and MFIP-S MFIP recipients. 
 10.5      Sec. 7.  Minnesota Statutes 1998, section 119B.01, 
 10.6   subdivision 2, is amended to read: 
 10.7      Subd. 2.  [APPLICANT.] "Child care fund applicants" means 
 10.8   all parents, stepparents, legal guardians, or eligible 
 10.9   relative caretakers caregivers who reside in the household that 
 10.10  applies for child care assistance under the child care fund. 
 10.11     Sec. 8.  Minnesota Statutes 1998, section 119B.01, 
 10.12  subdivision 10, is amended to read: 
 10.13     Subd. 10.  [FAMILY.] "Family" means parents, stepparents, 
 10.14  guardians and their spouses, or other eligible 
 10.15  relative caretakers caregivers and their spouses, and their 
 10.16  blood related dependent children and adoptive siblings under the 
 10.17  age of 18 years living in the same home including children 
 10.18  temporarily absent from the household in settings such as 
 10.19  schools, foster care, and residential treatment facilities.  
 10.20  When a minor parent or parents and his, her, or their child or 
 10.21  children are living with other relatives, and the minor parent 
 10.22  or parents apply for a child care subsidy, "family" means only 
 10.23  the minor parent or parents and the child or children.  An adult 
 10.24  may be considered a dependent member of the family unit if 50 
 10.25  percent of the adult's support is being provided by the parents, 
 10.26  stepparents, guardians and their spouses, or eligible 
 10.27  relative caretakers caregivers and their spouses, residing in 
 10.28  the same household.  An adult age 18 who is a full-time high 
 10.29  school student and can reasonably be expected to graduate before 
 10.30  age 19 may be considered a dependent member of the family unit. 
 10.31     Sec. 9.  Minnesota Statutes 1998, section 119B.01, 
 10.32  subdivision 12, is amended to read: 
 10.33     Subd. 12.  [INCOME.] "Income" means earned or unearned 
 10.34  income received by all family members, including public 
 10.35  assistance cash benefits, unless specifically excluded.  The 
 10.36  following are excluded from income:  funds used to pay for 
 11.1   health insurance premiums for family members, Supplemental 
 11.2   Security Income, scholarships, work-study income, and grants 
 11.3   that cover costs for tuition, fees, books, and educational 
 11.4   supplies; student loans for tuition, fees, books, supplies, and 
 11.5   living expenses; earned income tax credits; in-kind income such 
 11.6   as food stamps, energy assistance, medical assistance, and 
 11.7   housing subsidies; earned income of full or part-time secondary 
 11.8   school students up to the age of 19, including summer 
 11.9   employment; grant awards under the family subsidy program; 
 11.10  nonrecurring lump sum income only to the extent that it is 
 11.11  earmarked and used for the purpose for which it is paid; and any 
 11.12  income assigned to the public authority according to section 
 11.13  256.74 or 256.741, if enacted. 
 11.14     Sec. 10.  Minnesota Statutes 1998, section 119B.01, 
 11.15  subdivision 13, is amended to read: 
 11.16     Subd. 13.  [PROVIDER.] "Provider" means a child care 
 11.17  license holder who operates a family day care home, a group 
 11.18  family day care home, a day care center, a nursery school, a day 
 11.19  nursery, an extended day school age child care program; a legal 
 11.20  nonlicensed extended day school age child care program which 
 11.21  operates under the auspices of a local school board that has 
 11.22  adopted school age child care standards which meet or exceed 
 11.23  standards recommended by the state department of children, 
 11.24  families, and learning, or a legal nonlicensed caregiver who is 
 11.25  at least 18 years of age, and who is not a member of the AFDC 
 11.26  Minnesota family investment program assistance unit.  
 11.27     Sec. 11.  Minnesota Statutes 1998, section 119B.01, 
 11.28  subdivision 15, is amended to read: 
 11.29     Subd. 15.  [AFDC MINNESOTA FAMILY INVESTMENT PROGRAM AND 
 11.30  WORK FIRST PROGRAM.] "AFDC" means the aid to families with 
 11.31  dependent children program under sections 256.72 to 256.87; The 
 11.32  MFIP Minnesota family investment program under sections 256.031 
 11.33  to 256.0361 and 256.0475 to 256.049; the MFIP-S program under 
 11.34  chapter 256J; and the work first program under chapter 256K, 
 11.35  whichever program is in effect are the state's programs which 
 11.36  are required under title I, Public Law Number 104-193 of the 
 12.1   Personal Responsibility and Work Opportunity Reconciliation Act 
 12.2   of 1996. 
 12.3      Sec. 12.  Minnesota Statutes 1998, section 119B.01, 
 12.4   subdivision 16, is amended to read: 
 12.5      Subd. 16.  [TRANSITION YEAR FAMILIES.] "Transition year 
 12.6   families" means families who have received AFDC assistance under 
 12.7   the Minnesota family investment program, or who were eligible to 
 12.8   receive AFDC assistance under the Minnesota family investment 
 12.9   program after choosing to discontinue receipt of the cash 
 12.10  portion of MFIP-S MFIP assistance under section 256J.31, 
 12.11  subdivision 12, for at least three of the last six months before 
 12.12  losing eligibility for AFDC the Minnesota family investment 
 12.13  program due to increased hours of employment, or increased 
 12.14  income from employment or child or spousal support. 
 12.15     Sec. 13.  Minnesota Statutes 1998, section 119B.02, 
 12.16  subdivision 1, is amended to read: 
 12.17     Subdivision 1.  [CHILD CARE SERVICES.] The commissioner 
 12.18  shall develop standards for county and human services boards to 
 12.19  provide child care services to enable eligible families to 
 12.20  participate in employment, training, or education programs.  
 12.21  Within the limits of available appropriations, the commissioner 
 12.22  shall distribute money to counties to reduce the costs of child 
 12.23  care for eligible families.  The commissioner shall adopt rules 
 12.24  to govern the program in accordance with this section.  The 
 12.25  rules must establish a sliding schedule of fees for parents 
 12.26  receiving child care services.  The rules shall provide that 
 12.27  funds received as a lump sum payment of child support arrearages 
 12.28  shall not be counted as income to a family in the month received 
 12.29  but shall be prorated over the 12 months following receipt and 
 12.30  added to the family income during those months.  In the rules 
 12.31  adopted under this section, county and human services boards 
 12.32  shall be authorized to establish policies for payment of child 
 12.33  care spaces for absent children, when the payment is required by 
 12.34  the child's regular provider.  The rules shall not set a maximum 
 12.35  number of days for which absence payments can be made, but 
 12.36  instead shall direct the county agency to set limits and pay for 
 13.1   absences according to the prevailing market practice in the 
 13.2   county.  County policies for payment of absences shall be 
 13.3   subject to the approval of the commissioner.  The commissioner 
 13.4   shall maximize the use of federal money in section 256.736 under 
 13.5   title I and title IV, Public Law Number 104-193 of the Personal 
 13.6   Responsibility and Work Opportunity Reconciliation Act of 1996 
 13.7   and other programs that provide federal or state reimbursement 
 13.8   for child care services for low-income families who are in 
 13.9   education, training, job search, or other activities allowed 
 13.10  under those programs.  Money appropriated under this section 
 13.11  must be coordinated with the programs that provide federal 
 13.12  reimbursement for child care services to accomplish this 
 13.13  purpose.  Federal reimbursement obtained must be allocated to 
 13.14  the county that spent money for child care that is federally 
 13.15  reimbursable under programs that provide federal reimbursement 
 13.16  for child care services.  The counties shall use the federal 
 13.17  money to expand child care services.  The commissioner may adopt 
 13.18  rules under chapter 14 to implement and coordinate federal 
 13.19  program requirements. 
 13.20     Sec. 14.  Minnesota Statutes 1998, section 119B.03, 
 13.21  subdivision 3, is amended to read: 
 13.22     Subd. 3.  [ELIGIBLE RECIPIENTS.] Families that meet the 
 13.23  eligibility requirements under sections 119B.09, except AFDC 
 13.24  recipients, MFIP recipients, and transition year families, and 
 13.25  119B.10 are eligible for child care assistance under the basic 
 13.26  sliding fee program.  Families enrolled in the basic sliding fee 
 13.27  program shall be continued until they are no longer eligible.  
 13.28  Child care assistance provided through the child care fund is 
 13.29  considered assistance to the parent. 
 13.30     Sec. 15.  Minnesota Statutes 1998, section 119B.03, 
 13.31  subdivision 4, is amended to read: 
 13.32     Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
 13.33  care assistance under the basic sliding fee program must be 
 13.34  given to eligible non-AFDC non-Minnesota family investment 
 13.35  program families who do not have a high school or general 
 13.36  equivalency diploma or who need remedial and basic skill courses 
 14.1   in order to pursue employment or to pursue education leading to 
 14.2   employment.  Within this priority, the following subpriorities 
 14.3   must be used: 
 14.4      (1) child care needs of minor parents; 
 14.5      (2) child care needs of parents under 21 years of age; and 
 14.6      (3) child care needs of other parents within the priority 
 14.7   group described in this paragraph. 
 14.8      (b) Second priority must be given to parents who have 
 14.9   completed their AFDC Minnesota family investment program 
 14.10  transition year. 
 14.11     (c) Third priority must be given to families who are 
 14.12  eligible for portable basic sliding fee assistance through the 
 14.13  portability pool under subdivision 9. 
 14.14     Sec. 16.  Minnesota Statutes 1998, section 119B.05, 
 14.15  subdivision 1, is amended to read: 
 14.16     Subdivision 1.  [ELIGIBLE RECIPIENTS.] Families eligible 
 14.17  for child care assistance under the AFDC Minnesota family 
 14.18  investment program child care program are: 
 14.19     (1) persons receiving services under sections 256.031 to 
 14.20  256.0361 and 256.047 to 256.048; 
 14.21     (2) AFDC Minnesota family investment program recipients who 
 14.22  are employed or in job search and meet the requirements of 
 14.23  section 119B.10; 
 14.24     (3) (2) persons who are members of transition year families 
 14.25  under section 119B.01, subdivision 16; 
 14.26     (4) members of the control group for the STRIDE evaluation 
 14.27  conducted by the Manpower Demonstration Research Corporation; 
 14.28     (5) AFDC caretakers who are participating in the STRIDE and 
 14.29  non-STRIDE AFDC child care program; 
 14.30     (6) (3) families who are participating in employment 
 14.31  orientation or job search, or other employment or training 
 14.32  activities that are included in an approved employability 
 14.33  development plan under chapter 256K; and 
 14.34     (7) (4) MFIP-S MFIP families who are participating in work 
 14.35  activities as required in their job search support or employment 
 14.36  plan, or in appeals, hearings, assessments, or orientations 
 15.1   according to chapter 256J.  Child care assistance to support 
 15.2   work activities as described in section 256J.49 must be 
 15.3   available according to sections 119A.54, 119B.01, subdivision 8, 
 15.4   124D.13, 256E.08, and 611A.32 and titles IVA, IVB, IVE, and XX 
 15.5   of the Social Security Act. 
 15.6      Sec. 17.  Minnesota Statutes 1998, section 119B.07, is 
 15.7   amended to read: 
 15.8      119B.07 [USE OF MONEY.] 
 15.9      Money for persons listed in sections 119B.03, subdivision 
 15.10  3, and 119B.05, subdivision 1, shall be used to reduce the costs 
 15.11  of child care for students, including the costs of child care 
 15.12  for students while employed if enrolled in an eligible education 
 15.13  program at the same time and making satisfactory progress 
 15.14  towards completion of the program.  Counties may not limit the 
 15.15  duration of child care subsidies for a person in an employment 
 15.16  or educational program, except when the person is found to be 
 15.17  ineligible under the child care fund eligibility standards.  Any 
 15.18  limitation must be based on a person's employability plan in the 
 15.19  case of an AFDC a Minnesota family investment program recipient, 
 15.20  and county policies included in the child care allocation plan.  
 15.21  The maximum length of time a student is eligible for child care 
 15.22  assistance under the child care fund for education and training 
 15.23  is no more than the time necessary to complete the credit 
 15.24  requirements for an associate or baccalaureate degree as 
 15.25  determined by the educational institution, excluding basic or 
 15.26  remedial education programs needed to prepare for post-secondary 
 15.27  education or employment.  To be eligible, the student must be in 
 15.28  good standing and be making satisfactory progress toward the 
 15.29  degree.  Time limitations for child care assistance do not apply 
 15.30  to basic or remedial educational programs needed to prepare for 
 15.31  post-secondary education or employment.  These programs 
 15.32  include:  high school, general equivalency diploma, and English 
 15.33  as a second language.  Programs exempt from this time limit must 
 15.34  not run concurrently with a post-secondary program.  High school 
 15.35  students who are participating in a post-secondary options 
 15.36  program and who receive a high school diploma issued by the 
 16.1   school district are exempt from the time limitations while 
 16.2   pursuing a high school diploma.  Financially eligible students 
 16.3   who have received child care assistance for one academic year 
 16.4   shall be provided child care assistance in the following 
 16.5   academic year if funds allocated under sections 119B.03 and 
 16.6   119B.05 are available.  If an AFDC a Minnesota family investment 
 16.7   program recipient who is receiving AFDC Minnesota family 
 16.8   investment program child care assistance under this chapter 
 16.9   moves to another county, continues to participate in educational 
 16.10  or training programs authorized in their employability 
 16.11  development plans, and continues to be eligible for AFDC the 
 16.12  Minnesota family investment program child care assistance under 
 16.13  this chapter, the AFDC caretaker Minnesota family investment 
 16.14  program caregiver must receive continued child care assistance 
 16.15  from the county responsible for their current employability 
 16.16  development plan, without interruption. 
 16.17     Sec. 18.  Minnesota Statutes 1998, section 119B.075, is 
 16.18  amended to read: 
 16.19     119B.075 [RESERVE ACCOUNT.] 
 16.20     A reserve account must be created within the general fund 
 16.21  for all unexpended basic sliding fee child care, TANF child 
 16.22  care, or other child care funds under the jurisdiction of the 
 16.23  commissioner.  Any funds for those purposes that are unexpended 
 16.24  at the end of a biennium must be deposited in this reserve 
 16.25  account, and may be appropriated on an ongoing basis by the 
 16.26  commissioner for basic sliding fee child care or TANF MFIP child 
 16.27  care. 
 16.28     Sec. 19.  Minnesota Statutes 1998, section 119B.08, 
 16.29  subdivision 3, is amended to read: 
 16.30     Subd. 3.  [CHILD CARE FUND PLAN.] Effective January 1, 
 16.31  1992, the county will include the plan required under this 
 16.32  subdivision in its biennial community social services plan 
 16.33  required in this section, for the group described in section 
 16.34  256E.03, subdivision 2, paragraph (h).  The commissioner shall 
 16.35  establish the dates by which the county must submit these 
 16.36  plans.  The county and designated administering agency shall 
 17.1   submit to the commissioner an annual child care fund allocation 
 17.2   plan.  The plan shall include: 
 17.3      (1) a narrative of the total program for child care 
 17.4   services, including all policies and procedures that affect 
 17.5   eligible families and are used to administer the child care 
 17.6   funds; 
 17.7      (2) the methods used by the county to inform eligible 
 17.8   groups of the availability of child care assistance and related 
 17.9   services; 
 17.10     (3) the provider rates paid for all children by provider 
 17.11  type; 
 17.12     (4) the county prioritization policy for all eligible 
 17.13  groups under the basic sliding fee program and AFDC the 
 17.14  Minnesota family investment program and child care program; and 
 17.15     (5) other information as requested by the department to 
 17.16  ensure compliance with the child care fund statutes and rules 
 17.17  promulgated by the commissioner. 
 17.18     The commissioner shall notify counties within 60 days of 
 17.19  the date the plan is submitted whether the plan is approved or 
 17.20  the corrections or information needed to approve the plan.  The 
 17.21  commissioner shall withhold a county's allocation until it has 
 17.22  an approved plan.  Plans not approved by the end of the second 
 17.23  quarter after the plan is due may result in a 25 percent 
 17.24  reduction in allocation.  Plans not approved by the end of the 
 17.25  third quarter after the plan is due may result in a 100 percent 
 17.26  reduction in the allocation to the county.  Counties are to 
 17.27  maintain services despite any reduction in their allocation due 
 17.28  to plans not being approved. 
 17.29     Sec. 20.  Minnesota Statutes 1998, section 119B.09, 
 17.30  subdivision 1, is amended to read: 
 17.31     Subdivision 1.  [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 
 17.32  APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 
 17.33  must be available to families who need child care to find or 
 17.34  keep employment or to obtain the training or education necessary 
 17.35  to find employment and who: 
 17.36     (1) meet the requirements of section 119B.05; receive aid 
 18.1   to families with dependent children, assistance under MFIP-S, 
 18.2   MFIP or work first, whichever is in effect; and are receiving 
 18.3   participating in employment and training services under section 
 18.4   256.736 or chapter 256J or 256K; 
 18.5      (2) have household income below the eligibility levels for 
 18.6   aid to families with dependent children Minnesota family 
 18.7   investment program; or 
 18.8      (3) have household income within a range established by the 
 18.9   commissioner. 
 18.10     (b) Child care services for the families receiving aid to 
 18.11  families with dependent children Minnesota family investment 
 18.12  program assistance must be made available as in-kind services, 
 18.13  to cover any difference between the actual cost and the amount 
 18.14  disregarded under the aid to families with dependent children 
 18.15  program.  Child care services to families whose incomes are 
 18.16  below the threshold of eligibility for aid to families with 
 18.17  dependent children Minnesota family investment program, but are 
 18.18  not AFDC caretakers MFIP caregivers, must be made available with 
 18.19  the same copayment required of AFDC caretakers or MFIP-S MFIP 
 18.20  caregivers. 
 18.21     (c) All applicants for child care assistance and families 
 18.22  currently receiving child care assistance must be assisted and 
 18.23  required to cooperate in establishment of paternity and 
 18.24  enforcement of child support obligations as a condition of 
 18.25  program eligibility.  For purposes of this section, a family is 
 18.26  considered to meet the requirement for cooperation when the 
 18.27  family complies with the requirements of section 256.741, if 
 18.28  enacted. 
 18.29     Sec. 21.  Minnesota Statutes 1998, section 119B.09, 
 18.30  subdivision 3, is amended to read: 
 18.31     Subd. 3.  [PRIORITIES; ALLOCATIONS.] If a county projects 
 18.32  that its child care allocation is insufficient to meet the needs 
 18.33  of all eligible groups, it may prioritize among the groups that 
 18.34  remain to be served after the county has complied with the 
 18.35  priority requirements of section 119B.03.  Counties that have 
 18.36  established a priority for non-AFDC non-Minnesota family 
 19.1   investment program families beyond those established under 
 19.2   section 119B.03 must submit the policy in the annual allocation 
 19.3   plan. 
 19.4      Sec. 22.  Minnesota Statutes 1998, section 119B.09, 
 19.5   subdivision 7, is amended to read: 
 19.6      Subd. 7.  [ELIGIBILITY FOR ASSISTANCE.] The date of 
 19.7   eligibility for child care assistance under this chapter is the 
 19.8   later of the date the application was signed; the beginning date 
 19.9   of employment, education, or training; or the date a 
 19.10  determination has been made that the applicant is a participant 
 19.11  in employment and training services under Minnesota Rules, part 
 19.12  3400.0080, subpart 2a, section 256.736, or chapter 256J or 
 19.13  256K.  The date of eligibility for the basic sliding fee at-home 
 19.14  infant child care program is the later of the date the infant is 
 19.15  born or, in a county with a basic sliding fee wait list, the 
 19.16  date the family applies for at-home infant child care.  Payment 
 19.17  ceases for a family under the at-home infant child care program 
 19.18  when a family has used a total of 12 months of assistance as 
 19.19  specified under section 119B.061.  Payment of child care 
 19.20  assistance for employed persons on AFDC MFIP is effective the 
 19.21  date of employment or the date of AFDC MFIP eligibility, 
 19.22  whichever is later.  Payment of child care assistance for MFIP-S 
 19.23  MFIP or work first participants in employment and training 
 19.24  services is effective the date of commencement of the services 
 19.25  or the date of MFIP-S MFIP or work first eligibility, whichever 
 19.26  is later.  Payment of child care assistance for transition year 
 19.27  child care must be made retroactive to the date of eligibility 
 19.28  for transition year child care. 
 19.29     Sec. 23.  Minnesota Statutes 1998, section 119B.14, is 
 19.30  amended to read: 
 19.31     119B.14 [EXTENSION OF EMPLOYMENT OPPORTUNITIES.] 
 19.32     The county board shall insure ensure that child care 
 19.33  services available to eligible residents are well advertised and 
 19.34  that everyone who receives or applies for aid to families with 
 19.35  dependent children assistance under the Minnesota family 
 19.36  investment program is informed of training and employment 
 20.1   opportunities and programs, including child care assistance and 
 20.2   child care resource and referral services. 
 20.3      Sec. 24.  Minnesota Statutes 1998, section 119B.15, is 
 20.4   amended to read: 
 20.5      119B.15 [ADMINISTRATIVE EXPENSES.] 
 20.6      The commissioner shall use up to 1/21 of the state and 
 20.7   federal funds available for the basic sliding fee program and 
 20.8   1/21 of the state and federal funds available for the AFDC 
 20.9   Minnesota family investment program child care program for 
 20.10  payments to counties for administrative expenses.  
 20.11     Sec. 25.  Minnesota Statutes 1998, section 136A.125, 
 20.12  subdivision 2, is amended to read: 
 20.13     Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
 20.14  a child care grant if the applicant: 
 20.15     (1) is a resident of the state of Minnesota; 
 20.16     (2) has a child 12 years of age or younger, or 14 years of 
 20.17  age or younger who is handicapped as defined in section 125A.02, 
 20.18  and who is receiving or will receive care on a regular basis 
 20.19  from a licensed or legal, nonlicensed caregiver; 
 20.20     (3) is income eligible as determined by the office's 
 20.21  policies and rules, but is not a recipient of assistance from 
 20.22  either aid to families with dependent children or the Minnesota 
 20.23  family investment program-statewide program; 
 20.24     (4) has not earned a baccalaureate degree and has been 
 20.25  enrolled full time less than eight semesters, 12 quarters, or 
 20.26  the equivalent; 
 20.27     (5) is pursuing a nonsectarian program or course of study 
 20.28  that applies to an undergraduate degree, diploma, or 
 20.29  certificate; 
 20.30     (6) is enrolled at least half time in an eligible 
 20.31  institution; and 
 20.32     (7) is in good academic standing and making satisfactory 
 20.33  academic progress. 
 20.34     Sec. 26.  Minnesota Statutes 1998, section 145.415, 
 20.35  subdivision 3, is amended to read: 
 20.36     Subd. 3.  [STATUS.] (1) Unless the abortion is performed to 
 21.1   save the life of the woman or child, or, (2) unless one or both 
 21.2   of the parents of the unborn child agrees within 30 days of the 
 21.3   birth to accept the parental rights and responsibilities for the 
 21.4   child if it survives the abortion, whenever an abortion of a 
 21.5   potentially viable fetus results in a live birth, the child 
 21.6   shall be an abandoned ward of the state and the parents shall 
 21.7   have no parental rights or obligations as if the parental rights 
 21.8   had been terminated pursuant to section 260.221.  The child 
 21.9   shall be provided for pursuant to sections 256.12, subdivision 
 21.10  14 and 256.72 to 256.87 chapter 256J.  
 21.11     Sec. 27.  Minnesota Statutes 1998, section 196.27, is 
 21.12  amended to read: 
 21.13     196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 
 21.14     (a) Payments received by veterans or their dependents 
 21.15  because of settlements between them and the manufacturers of 
 21.16  Agent Orange or other chemical agents, as defined in section 
 21.17  196.21, must not be treated as income (or an available resource) 
 21.18  of the veterans or their dependents for the purposes of any 
 21.19  program of public assistance or benefit program administered by 
 21.20  the department of veterans affairs, the department of human 
 21.21  services, or other agencies of the state or political 
 21.22  subdivisions of the state, except as provided in paragraph (b). 
 21.23     (b) The income and resource exclusion in paragraph (a) does 
 21.24  not apply to the medical assistance, food stamps, aid to 
 21.25  families with dependent children or Minnesota family investment 
 21.26  program-statewide programs until the commissioner of human 
 21.27  services receives formal approval from the United States 
 21.28  Department of Health and Human Services, for the medical 
 21.29  assistance, aid to families with dependent children or Minnesota 
 21.30  family investment program-statewide programs, and from the 
 21.31  United States Department of Agriculture, for the food stamps 
 21.32  program.  The income exclusion does not apply to the Minnesota 
 21.33  supplemental aid program until the commissioner receives formal 
 21.34  federal approval of the exclusion for the medical assistance 
 21.35  program. 
 21.36     Sec. 28.  Minnesota Statutes 1998, section 237.70, 
 22.1   subdivision 4a, is amended to read: 
 22.2      Subd. 4a.  [HOUSEHOLD ELIGIBLE FOR CREDIT.] The telephone 
 22.3   assistance plan must provide telephone assistance credit for a 
 22.4   residential household in Minnesota that meets each of the 
 22.5   following criteria: 
 22.6      (1) has a household member who: 
 22.7      (i) subscribes to local exchange service; and 
 22.8      (ii) is either disabled or 65 years of age or older; 
 22.9      (2) whose household income is 150 percent or less of 
 22.10  federal poverty guidelines or is currently eligible for: 
 22.11     (i) aid to families with dependent children or Minnesota 
 22.12  family investment program-statewide program; 
 22.13     (ii) medical assistance; 
 22.14     (iii) general assistance; 
 22.15     (iv) Minnesota supplemental aid; 
 22.16     (v) food stamps; 
 22.17     (vi) refugee cash assistance or refugee medical assistance; 
 22.18     (vii) energy assistance; or 
 22.19     (viii) supplemental security income; and 
 22.20     (3) who has been certified as eligible for telephone 
 22.21  assistance plan credits. 
 22.22     Sec. 29.  Minnesota Statutes 1998, section 245.4871, 
 22.23  subdivision 25, is amended to read: 
 22.24     Subd. 25.  [MENTAL HEALTH FUNDS.] "Mental health funds" are 
 22.25  funds expended under sections 245.73 and 256E.12, federal mental 
 22.26  health block grant funds, and funds expended under 
 22.27  sections section 256D.06 and 256D.37 to facilities licensed 
 22.28  under Minnesota Rules, parts 9520.0500 to 9520.0690. 
 22.29     Sec. 30.  Minnesota Statutes 1998, section 254B.02, 
 22.30  subdivision 1, is amended to read: 
 22.31     Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
 22.32  The chemical dependency funds appropriated for allocation shall 
 22.33  be placed in a special revenue account.  The commissioner shall 
 22.34  annually transfer funds from the chemical dependency fund to pay 
 22.35  for operation of the drug and alcohol abuse normative evaluation 
 22.36  system and to pay for all costs incurred by adding two positions 
 23.1   for licensing of chemical dependency treatment and 
 23.2   rehabilitation programs located in hospitals for which funds are 
 23.3   not otherwise appropriated.  For each year of the biennium 
 23.4   ending June 30, 1999, the commissioner shall allocate funds to 
 23.5   the American Indian chemical dependency tribal account for 
 23.6   treatment of American Indians by eligible vendors under section 
 23.7   254B.05, equal to the amount allocated in fiscal year 1997.  The 
 23.8   commissioner shall annually divide the money available in the 
 23.9   chemical dependency fund that is not held in reserve by counties 
 23.10  from a previous allocation, or allocated to the American Indian 
 23.11  chemical dependency tribal account.  Six percent of the 
 23.12  remaining money must be reserved for the nonreservation American 
 23.13  Indian chemical dependency allocation for treatment of American 
 23.14  Indians by eligible vendors under section 254B.05, subdivision 
 23.15  1.  The remainder of the money must be allocated among the 
 23.16  counties according to the following formula, using state 
 23.17  demographer data and other data sources determined by the 
 23.18  commissioner: 
 23.19     (a) For purposes of this formula, American Indians and 
 23.20  children under age 14 are subtracted from the population of each 
 23.21  county to determine the restricted population. 
 23.22     (b) The amount of chemical dependency fund expenditures for 
 23.23  entitled persons for services not covered by prepaid plans 
 23.24  governed by section 256B.69 in the previous year is divided by 
 23.25  the amount of chemical dependency fund expenditures for entitled 
 23.26  persons for all services to determine the proportion of exempt 
 23.27  service expenditures for each county. 
 23.28     (c) The prepaid plan months of eligibility is multiplied by 
 23.29  the proportion of exempt service expenditures to determine the 
 23.30  adjusted prepaid plan months of eligibility for each county. 
 23.31     (d) The adjusted prepaid plan months of eligibility is 
 23.32  added to the number of restricted population fee for service 
 23.33  months of eligibility for aid to families with dependent 
 23.34  children, Minnesota family investment program-statewide program, 
 23.35  general assistance, and medical assistance and divided by the 
 23.36  county restricted population to determine county per capita 
 24.1   months of covered service eligibility. 
 24.2      (e) The number of adjusted prepaid plan months of 
 24.3   eligibility for the state is added to the number of fee for 
 24.4   service months of eligibility for aid to families with dependent 
 24.5   children, Minnesota family investment program-statewide program, 
 24.6   general assistance, and medical assistance for the state 
 24.7   restricted population and divided by the state restricted 
 24.8   population to determine state per capita months of covered 
 24.9   service eligibility. 
 24.10     (f) The county per capita months of covered service 
 24.11  eligibility is divided by the state per capita months of covered 
 24.12  service eligibility to determine the county welfare caseload 
 24.13  factor. 
 24.14     (g) The median married couple income for the most recent 
 24.15  three-year period available for the state is divided by the 
 24.16  median married couple income for the same period for each county 
 24.17  to determine the income factor for each county. 
 24.18     (h) The county restricted population is multiplied by the 
 24.19  sum of the county welfare caseload factor and the county income 
 24.20  factor to determine the adjusted population. 
 24.21     (i) $15,000 shall be allocated to each county.  
 24.22     (j) The remaining funds shall be allocated proportional to 
 24.23  the county adjusted population. 
 24.24     Sec. 31.  Minnesota Statutes 1998, section 256.01, 
 24.25  subdivision 2, is amended to read: 
 24.26     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
 24.27  section 241.021, subdivision 2, the commissioner of human 
 24.28  services shall: 
 24.29     (1) Administer and supervise all forms of public assistance 
 24.30  provided for by state law and other welfare activities or 
 24.31  services as are vested in the commissioner.  Administration and 
 24.32  supervision of human services activities or services includes, 
 24.33  but is not limited to, assuring timely and accurate distribution 
 24.34  of benefits, completeness of service, and quality program 
 24.35  management.  In addition to administering and supervising human 
 24.36  services activities vested by law in the department, the 
 25.1   commissioner shall have the authority to: 
 25.2      (a) require county agency participation in training and 
 25.3   technical assistance programs to promote compliance with 
 25.4   statutes, rules, federal laws, regulations, and policies 
 25.5   governing human services; 
 25.6      (b) monitor, on an ongoing basis, the performance of county 
 25.7   agencies in the operation and administration of human services, 
 25.8   enforce compliance with statutes, rules, federal laws, 
 25.9   regulations, and policies governing welfare services and promote 
 25.10  excellence of administration and program operation; 
 25.11     (c) develop a quality control program or other monitoring 
 25.12  program to review county performance and accuracy of benefit 
 25.13  determinations; 
 25.14     (d) require county agencies to make an adjustment to the 
 25.15  public assistance benefits issued to any individual consistent 
 25.16  with federal law and regulation and state law and rule and to 
 25.17  issue or recover benefits as appropriate; 
 25.18     (e) delay or deny payment of all or part of the state and 
 25.19  federal share of benefits and administrative reimbursement 
 25.20  according to the procedures set forth in section 256.017; 
 25.21     (f) make contracts with and grants to public and private 
 25.22  agencies and organizations, both profit and nonprofit, and 
 25.23  individuals, using appropriated funds; and 
 25.24     (g) enter into contractual agreements with federally 
 25.25  recognized Indian tribes with a reservation in Minnesota to the 
 25.26  extent necessary for the tribe to operate a federally approved 
 25.27  family assistance program or any other program under the 
 25.28  supervision of the commissioner.  The commissioner shall consult 
 25.29  with the affected county or counties in the contractual 
 25.30  agreement negotiations, if the county or counties wish to be 
 25.31  included, in order to avoid the duplication of county and tribal 
 25.32  assistance program services.  The commissioner may establish 
 25.33  necessary accounts for the purposes of receiving and disbursing 
 25.34  funds as necessary for the operation of the programs. 
 25.35     (2) Inform county agencies, on a timely basis, of changes 
 25.36  in statute, rule, federal law, regulation, and policy necessary 
 26.1   to county agency administration of the programs. 
 26.2      (3) Administer and supervise all child welfare activities; 
 26.3   promote the enforcement of laws protecting handicapped, 
 26.4   dependent, neglected and delinquent children, and children born 
 26.5   to mothers who were not married to the children's fathers at the 
 26.6   times of the conception nor at the births of the children; 
 26.7   license and supervise child-caring and child-placing agencies 
 26.8   and institutions; supervise the care of children in boarding and 
 26.9   foster homes or in private institutions; and generally perform 
 26.10  all functions relating to the field of child welfare now vested 
 26.11  in the state board of control. 
 26.12     (4) Administer and supervise all noninstitutional service 
 26.13  to handicapped persons, including those who are visually 
 26.14  impaired, hearing impaired, or physically impaired or otherwise 
 26.15  handicapped.  The commissioner may provide and contract for the 
 26.16  care and treatment of qualified indigent children in facilities 
 26.17  other than those located and available at state hospitals when 
 26.18  it is not feasible to provide the service in state hospitals. 
 26.19     (5) Assist and actively cooperate with other departments, 
 26.20  agencies and institutions, local, state, and federal, by 
 26.21  performing services in conformity with the purposes of Laws 
 26.22  1939, chapter 431. 
 26.23     (6) Act as the agent of and cooperate with the federal 
 26.24  government in matters of mutual concern relative to and in 
 26.25  conformity with the provisions of Laws 1939, chapter 431, 
 26.26  including the administration of any federal funds granted to the 
 26.27  state to aid in the performance of any functions of the 
 26.28  commissioner as specified in Laws 1939, chapter 431, and 
 26.29  including the promulgation of rules making uniformly available 
 26.30  medical care benefits to all recipients of public assistance, at 
 26.31  such times as the federal government increases its participation 
 26.32  in assistance expenditures for medical care to recipients of 
 26.33  public assistance, the cost thereof to be borne in the same 
 26.34  proportion as are grants of aid to said recipients. 
 26.35     (7) Establish and maintain any administrative units 
 26.36  reasonably necessary for the performance of administrative 
 27.1   functions common to all divisions of the department. 
 27.2      (8) Act as designated guardian of both the estate and the 
 27.3   person of all the wards of the state of Minnesota, whether by 
 27.4   operation of law or by an order of court, without any further 
 27.5   act or proceeding whatever, except as to persons committed as 
 27.6   mentally retarded.  For children under the guardianship of the 
 27.7   commissioner whose interests would be best served by adoptive 
 27.8   placement, the commissioner may contract with a licensed 
 27.9   child-placing agency to provide adoption services.  A contract 
 27.10  with a licensed child-placing agency must be designed to 
 27.11  supplement existing county efforts and may not replace existing 
 27.12  county programs, unless the replacement is agreed to by the 
 27.13  county board and the appropriate exclusive bargaining 
 27.14  representative or the commissioner has evidence that child 
 27.15  placements of the county continue to be substantially below that 
 27.16  of other counties. 
 27.17     (9) Act as coordinating referral and informational center 
 27.18  on requests for service for newly arrived immigrants coming to 
 27.19  Minnesota. 
 27.20     (10) The specific enumeration of powers and duties as 
 27.21  hereinabove set forth shall in no way be construed to be a 
 27.22  limitation upon the general transfer of powers herein contained. 
 27.23     (11) Establish county, regional, or statewide schedules of 
 27.24  maximum fees and charges which may be paid by county agencies 
 27.25  for medical, dental, surgical, hospital, nursing and nursing 
 27.26  home care and medicine and medical supplies under all programs 
 27.27  of medical care provided by the state and for congregate living 
 27.28  care under the income maintenance programs. 
 27.29     (12) Have the authority to conduct and administer 
 27.30  experimental projects to test methods and procedures of 
 27.31  administering assistance and services to recipients or potential 
 27.32  recipients of public welfare.  To carry out such experimental 
 27.33  projects, it is further provided that the commissioner of human 
 27.34  services is authorized to waive the enforcement of existing 
 27.35  specific statutory program requirements, rules, and standards in 
 27.36  one or more counties.  The order establishing the waiver shall 
 28.1   provide alternative methods and procedures of administration, 
 28.2   shall not be in conflict with the basic purposes, coverage, or 
 28.3   benefits provided by law, and in no event shall the duration of 
 28.4   a project exceed four years.  It is further provided that no 
 28.5   order establishing an experimental project as authorized by the 
 28.6   provisions of this section shall become effective until the 
 28.7   following conditions have been met: 
 28.8      (a) The secretary of health, education, and welfare and 
 28.9   human services of the United States has agreed, for the same 
 28.10  project, to waive state plan requirements relative to statewide 
 28.11  uniformity. 
 28.12     (b) A comprehensive plan, including estimated project 
 28.13  costs, shall be approved by the legislative advisory commission 
 28.14  and filed with the commissioner of administration.  
 28.15     (13) According to federal requirements, establish 
 28.16  procedures to be followed by local welfare boards in creating 
 28.17  citizen advisory committees, including procedures for selection 
 28.18  of committee members. 
 28.19     (14) Allocate federal fiscal disallowances or sanctions 
 28.20  which are based on quality control error rates for the aid to 
 28.21  families with dependent children program formerly codified in 
 28.22  sections 256.72 to 256.87, Minnesota family investment 
 28.23  program-statewide, medical assistance, or food stamp program in 
 28.24  the following manner:  
 28.25     (a) One-half of the total amount of the disallowance shall 
 28.26  be borne by the county boards responsible for administering the 
 28.27  programs.  For the medical assistance, MFIP-S, and the AFDC 
 28.28  programs program formerly codified in sections 256.72 to 256.87, 
 28.29  disallowances shall be shared by each county board in the same 
 28.30  proportion as that county's expenditures for the sanctioned 
 28.31  program are to the total of all counties' expenditures for the 
 28.32  AFDC program formerly codified in sections 256.72 to 
 28.33  256.87, MFIP-S, and medical assistance programs.  For the food 
 28.34  stamp program, sanctions shall be shared by each county board, 
 28.35  with 50 percent of the sanction being distributed to each county 
 28.36  in the same proportion as that county's administrative costs for 
 29.1   food stamps are to the total of all food stamp administrative 
 29.2   costs for all counties, and 50 percent of the sanctions being 
 29.3   distributed to each county in the same proportion as that 
 29.4   county's value of food stamp benefits issued are to the total of 
 29.5   all benefits issued for all counties.  Each county shall pay its 
 29.6   share of the disallowance to the state of Minnesota.  When a 
 29.7   county fails to pay the amount due hereunder, the commissioner 
 29.8   may deduct the amount from reimbursement otherwise due the 
 29.9   county, or the attorney general, upon the request of the 
 29.10  commissioner, may institute civil action to recover the amount 
 29.11  due. 
 29.12     (b) Notwithstanding the provisions of paragraph (a), if the 
 29.13  disallowance results from knowing noncompliance by one or more 
 29.14  counties with a specific program instruction, and that knowing 
 29.15  noncompliance is a matter of official county board record, the 
 29.16  commissioner may require payment or recover from the county or 
 29.17  counties, in the manner prescribed in paragraph (a), an amount 
 29.18  equal to the portion of the total disallowance which resulted 
 29.19  from the noncompliance, and may distribute the balance of the 
 29.20  disallowance according to paragraph (a).  
 29.21     (15) Develop and implement special projects that maximize 
 29.22  reimbursements and result in the recovery of money to the 
 29.23  state.  For the purpose of recovering state money, the 
 29.24  commissioner may enter into contracts with third parties.  Any 
 29.25  recoveries that result from projects or contracts entered into 
 29.26  under this paragraph shall be deposited in the state treasury 
 29.27  and credited to a special account until the balance in the 
 29.28  account reaches $1,000,000.  When the balance in the account 
 29.29  exceeds $1,000,000, the excess shall be transferred and credited 
 29.30  to the general fund.  All money in the account is appropriated 
 29.31  to the commissioner for the purposes of this paragraph. 
 29.32     (16) Have the authority to make direct payments to 
 29.33  facilities providing shelter to women and their children 
 29.34  according to section 256D.05, subdivision 3.  Upon the written 
 29.35  request of a shelter facility that has been denied payments 
 29.36  under section 256D.05, subdivision 3, the commissioner shall 
 30.1   review all relevant evidence and make a determination within 30 
 30.2   days of the request for review regarding issuance of direct 
 30.3   payments to the shelter facility.  Failure to act within 30 days 
 30.4   shall be considered a determination not to issue direct payments.
 30.5      (17) Have the authority to establish and enforce the 
 30.6   following county reporting requirements:  
 30.7      (a) The commissioner shall establish fiscal and statistical 
 30.8   reporting requirements necessary to account for the expenditure 
 30.9   of funds allocated to counties for human services programs.  
 30.10  When establishing financial and statistical reporting 
 30.11  requirements, the commissioner shall evaluate all reports, in 
 30.12  consultation with the counties, to determine if the reports can 
 30.13  be simplified or the number of reports can be reduced. 
 30.14     (b) The county board shall submit monthly or quarterly 
 30.15  reports to the department as required by the commissioner.  
 30.16  Monthly reports are due no later than 15 working days after the 
 30.17  end of the month.  Quarterly reports are due no later than 30 
 30.18  calendar days after the end of the quarter, unless the 
 30.19  commissioner determines that the deadline must be shortened to 
 30.20  20 calendar days to avoid jeopardizing compliance with federal 
 30.21  deadlines or risking a loss of federal funding.  Only reports 
 30.22  that are complete, legible, and in the required format shall be 
 30.23  accepted by the commissioner.  
 30.24     (c) If the required reports are not received by the 
 30.25  deadlines established in clause (b), the commissioner may delay 
 30.26  payments and withhold funds from the county board until the next 
 30.27  reporting period.  When the report is needed to account for the 
 30.28  use of federal funds and the late report results in a reduction 
 30.29  in federal funding, the commissioner shall withhold from the 
 30.30  county boards with late reports an amount equal to the reduction 
 30.31  in federal funding until full federal funding is received.  
 30.32     (d) A county board that submits reports that are late, 
 30.33  illegible, incomplete, or not in the required format for two out 
 30.34  of three consecutive reporting periods is considered 
 30.35  noncompliant.  When a county board is found to be noncompliant, 
 30.36  the commissioner shall notify the county board of the reason the 
 31.1   county board is considered noncompliant and request that the 
 31.2   county board develop a corrective action plan stating how the 
 31.3   county board plans to correct the problem.  The corrective 
 31.4   action plan must be submitted to the commissioner within 45 days 
 31.5   after the date the county board received notice of noncompliance.
 31.6      (e) The final deadline for fiscal reports or amendments to 
 31.7   fiscal reports is one year after the date the report was 
 31.8   originally due.  If the commissioner does not receive a report 
 31.9   by the final deadline, the county board forfeits the funding 
 31.10  associated with the report for that reporting period and the 
 31.11  county board must repay any funds associated with the report 
 31.12  received for that reporting period. 
 31.13     (f) The commissioner may not delay payments, withhold 
 31.14  funds, or require repayment under paragraph (c) or (e) if the 
 31.15  county demonstrates that the commissioner failed to provide 
 31.16  appropriate forms, guidelines, and technical assistance to 
 31.17  enable the county to comply with the requirements.  If the 
 31.18  county board disagrees with an action taken by the commissioner 
 31.19  under paragraph (c) or (e), the county board may appeal the 
 31.20  action according to sections 14.57 to 14.69. 
 31.21     (g) Counties subject to withholding of funds under 
 31.22  paragraph (c) or forfeiture or repayment of funds under 
 31.23  paragraph (e) shall not reduce or withhold benefits or services 
 31.24  to clients to cover costs incurred due to actions taken by the 
 31.25  commissioner under paragraph (c) or (e). 
 31.26     (18) Allocate federal fiscal disallowances or sanctions for 
 31.27  audit exceptions when federal fiscal disallowances or sanctions 
 31.28  are based on a statewide random sample for the foster care 
 31.29  program under title IV-E of the Social Security Act, United 
 31.30  States Code, title 42, in direct proportion to each county's 
 31.31  title IV-E foster care maintenance claim for that period. 
 31.32     (19) Be responsible for ensuring the detection, prevention, 
 31.33  investigation, and resolution of fraudulent activities or 
 31.34  behavior by applicants, recipients, and other participants in 
 31.35  the human services programs administered by the department. 
 31.36     (20) Require county agencies to identify overpayments, 
 32.1   establish claims, and utilize all available and cost-beneficial 
 32.2   methodologies to collect and recover these overpayments in the 
 32.3   human services programs administered by the department. 
 32.4      (21) Have the authority to administer a drug rebate program 
 32.5   for drugs purchased pursuant to the senior citizen drug program 
 32.6   established under section 256.955 after the beneficiary's 
 32.7   satisfaction of any deductible established in the program.  The 
 32.8   commissioner shall require a rebate agreement from all 
 32.9   manufacturers of covered drugs as defined in section 256B.0625, 
 32.10  subdivision 13.  For each drug, the amount of the rebate shall 
 32.11  be equal to the basic rebate as defined for purposes of the 
 32.12  federal rebate program in United States Code, title 42, section 
 32.13  1396r-8(c)(1).  This basic rebate shall be applied to 
 32.14  single-source and multiple-source drugs.  The manufacturers must 
 32.15  provide full payment within 30 days of receipt of the state 
 32.16  invoice for the rebate within the terms and conditions used for 
 32.17  the federal rebate program established pursuant to section 1927 
 32.18  of title XIX of the Social Security Act.  The manufacturers must 
 32.19  provide the commissioner with any information necessary to 
 32.20  verify the rebate determined per drug.  The rebate program shall 
 32.21  utilize the terms and conditions used for the federal rebate 
 32.22  program established pursuant to section 1927 of title XIX of the 
 32.23  Social Security Act. 
 32.24     Sec. 32.  Minnesota Statutes 1998, section 256.01, 
 32.25  subdivision 4, is amended to read: 
 32.26     Subd. 4.  [DUTIES AS STATE AGENCY.] The state agency shall: 
 32.27     (1) supervise the administration of assistance to dependent 
 32.28  children under Laws 1937, chapter 438, by the county agencies in 
 32.29  an integrated program with other service for dependent children 
 32.30  maintained under the direction of the state agency; 
 32.31     (2) may subpoena witnesses and administer oaths, make 
 32.32  rules, and take such action as may be necessary, or desirable 
 32.33  for carrying out the provisions of Laws 1937, chapter 438.  All 
 32.34  rules made by the state agency shall be binding on the counties 
 32.35  and shall be complied with by the respective county agencies; 
 32.36     (3) establish adequate standards for personnel employed by 
 33.1   the counties and the state agency in the administration of Laws 
 33.2   1937, chapter 438, and make the necessary rules to maintain such 
 33.3   standards; 
 33.4      (4) prescribe the form of and print and supply to the 
 33.5   county agencies blanks for applications, reports, affidavits, 
 33.6   and such other forms as it may deem necessary and advisable; 
 33.7      (5) cooperate with the federal government and its public 
 33.8   welfare agencies in any reasonable manner as may be necessary to 
 33.9   qualify for federal aid for aid to dependent children temporary 
 33.10  assistance for needy families and in conformity with the 
 33.11  provisions of Laws 1937, chapter 438 title I, Public Law Number 
 33.12  104-193 of the Personal Responsibility and Work Opportunity 
 33.13  Reconciliation Act of 1996 and successor amendments, including 
 33.14  the making of such reports and such forms and containing such 
 33.15  information as the Federal Social Security Board may from time 
 33.16  to time require, and comply with such provisions as such board 
 33.17  may from time to time find necessary to assure the correctness 
 33.18  and verification of such reports; 
 33.19     (6) may cooperate with other state agencies in establishing 
 33.20  reciprocal agreements in instances where a child receiving aid 
 33.21  to dependent children Minnesota family investment program 
 33.22  assistance moves or contemplates moving into or out of the 
 33.23  state, in order that such child may continue to receive 
 33.24  supervised aid from the state moved from until the child shall 
 33.25  have resided for one year in the state moved to; 
 33.26     (7) on or before October 1 in each even-numbered year make 
 33.27  a biennial report to the governor concerning the activities of 
 33.28  the agency; and 
 33.29     (8) enter into agreements with other departments of the 
 33.30  state as necessary to meet all requirements of the federal 
 33.31  government. 
 33.32     Sec. 33.  Minnesota Statutes 1998, section 256.017, 
 33.33  subdivision 1, is amended to read: 
 33.34     Subdivision 1.  [AUTHORITY AND PURPOSE.] The commissioner 
 33.35  shall administer a compliance system for aid to families with 
 33.36  dependent children, the Minnesota family investment 
 34.1   program-statewide program, the food stamp program, emergency 
 34.2   assistance, general assistance, medical assistance, general 
 34.3   assistance medical care, emergency general assistance, Minnesota 
 34.4   supplemental assistance, preadmission screening, and alternative 
 34.5   care grants under the powers and authorities named in section 
 34.6   256.01, subdivision 2.  The purpose of the compliance system is 
 34.7   to permit the commissioner to supervise the administration of 
 34.8   public assistance programs and to enforce timely and accurate 
 34.9   distribution of benefits, completeness of service and efficient 
 34.10  and effective program management and operations, to increase 
 34.11  uniformity and consistency in the administration and delivery of 
 34.12  public assistance programs throughout the state, and to reduce 
 34.13  the possibility of sanctions and fiscal disallowances for 
 34.14  noncompliance with federal regulations and state statutes. 
 34.15     The commissioner shall utilize training, technical 
 34.16  assistance, and monitoring activities, as specified in section 
 34.17  256.01, subdivision 2, to encourage county agency compliance 
 34.18  with written policies and procedures. 
 34.19     Sec. 34.  Minnesota Statutes 1998, section 256.017, 
 34.20  subdivision 2, is amended to read: 
 34.21     Subd. 2.  [DEFINITIONS.] The following terms have the 
 34.22  meanings given for purposes of this section. 
 34.23     (a) "Administrative penalty" means an adjustment against 
 34.24  the county agency's state and federal benefit and federal 
 34.25  administrative reimbursement when the commissioner determines 
 34.26  that the county agency is not in compliance with the policies 
 34.27  and procedures established by the commissioner. 
 34.28     (b) "Quality control case penalty" means an adjustment 
 34.29  against the county agency's federal administrative reimbursement 
 34.30  and state and federal benefit reimbursement when the 
 34.31  commissioner determines through a quality control review that 
 34.32  the county agency has made incorrect payments, terminations, or 
 34.33  denials of benefits as determined by state quality control 
 34.34  procedures for the aid to families with dependent 
 34.35  children program formerly codified in sections 256.72 to 256.87, 
 34.36  Minnesota family investment program-statewide program, food 
 35.1   stamp, or medical assistance programs, or any other programs for 
 35.2   which the commissioner has developed a quality control system.  
 35.3   Quality control case penalties apply only to agency errors as 
 35.4   defined by state quality control procedures. 
 35.5      (c) "Quality control/quality assurance" means a review 
 35.6   system of a statewide random sample of cases, designed to 
 35.7   provide data on program outcomes and the accuracy with which 
 35.8   state and federal policies are being applied in issuing benefits 
 35.9   and as a fiscal audit to ensure the accuracy of expenditures.  
 35.10  The quality control/quality assurance system is administered by 
 35.11  the department.  For the aid to families with dependent children 
 35.12  program formerly codified in sections 256.72 to 
 35.13  256.87, Minnesota family investment program-statewide, food 
 35.14  stamp, and medical assistance programs, the quality control 
 35.15  system is that required by federal regulation, or those 
 35.16  developed by the commissioner. 
 35.17     Sec. 35.  Minnesota Statutes 1998, section 256.017, 
 35.18  subdivision 4, is amended to read: 
 35.19     Subd. 4.  [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 
 35.20  CASE PENALTY.] (a) The amount of the quality control case 
 35.21  penalty is limited to the amount of the dollar error for the 
 35.22  quality control sample month in a reviewed case as determined by 
 35.23  the state quality control review procedures for the aid to 
 35.24  families with dependent children program formerly codified in 
 35.25  sections 256.72 to 256.87, Minnesota family investment 
 35.26  program-statewide and food stamp programs or for any other 
 35.27  income transfer program for which the commissioner develops a 
 35.28  quality control program. 
 35.29     (b) Payment errors in medical assistance or any other 
 35.30  medical services program for which the department develops a 
 35.31  quality control program are subject to set rate penalties based 
 35.32  on the average cost of the specific quality control error 
 35.33  element for a sample review month for that household size and 
 35.34  status of institutionalization and as determined from state 
 35.35  quality control data in the preceding fiscal year for the 
 35.36  corresponding program. 
 36.1      (c) Errors identified in negative action cases, such as 
 36.2   incorrect terminations or denials of assistance are subject to 
 36.3   set rate penalties based on the average benefit cost of that 
 36.4   household size as determined from state quality control data in 
 36.5   the preceding fiscal year for the corresponding program. 
 36.6      Sec. 36.  Minnesota Statutes 1998, section 256.019, is 
 36.7   amended to read: 
 36.8      256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 
 36.9      When an amount is recovered from any source for assistance 
 36.10  given under the provisions governing public assistance programs 
 36.11  including the aid to families with dependent children program 
 36.12  formerly codified in sections 256.72 to 256.87, MFIP-S MFIP, 
 36.13  general assistance medical care, emergency assistance, general 
 36.14  assistance, and Minnesota supplemental aid, the county may keep 
 36.15  one-half of recovery made by the county agency using any method 
 36.16  other than recoupment.  For medical assistance, if the recovery 
 36.17  is made by a county agency using any method other than 
 36.18  recoupment, the county may keep one-half of the nonfederal share 
 36.19  of the recovery.  This does not apply to recoveries from medical 
 36.20  providers or to recoveries begun by the department of human 
 36.21  services' surveillance and utilization review division, state 
 36.22  hospital collections unit, and the benefit recoveries division 
 36.23  or, by the attorney general's office, or child support 
 36.24  collections.  In the food stamp program, the nonfederal share of 
 36.25  recoveries in the federal tax refund offset program (FTROP) only 
 36.26  will be divided equally between the state agency and the 
 36.27  involved county agency. 
 36.28     Sec. 37.  Minnesota Statutes 1998, section 256.025, 
 36.29  subdivision 2, is amended to read: 
 36.30     Subd. 2.  [COVERED PROGRAMS AND SERVICES.] The procedures 
 36.31  in this section govern payment of county agency expenditures for 
 36.32  benefits and services distributed under the following programs: 
 36.33     (1) the aid to families with dependent children formerly 
 36.34  codified under sections 256.82, subdivision 1, and 256.935, 
 36.35  subdivision 1, for assistance costs incurred prior to July 1, 
 36.36  1997; 
 37.1      (2) medical assistance under sections 256B.041, subdivision 
 37.2   5, and 256B.19, subdivision 1; 
 37.3      (3) general assistance medical care under section 256D.03, 
 37.4   subdivision 6, for assistance costs incurred prior to July 1, 
 37.5   1997; 
 37.6      (4) general assistance under section 256D.03, subdivision 
 37.7   2, for assistance costs incurred prior to July 1, 1997; 
 37.8      (5) work readiness under section 256D.03, subdivision 2, 
 37.9   for assistance costs incurred prior to July 1, 1995; 
 37.10     (6) the emergency assistance formerly codified under 
 37.11  section 256.871, subdivision 6, for assistance costs incurred 
 37.12  prior to July 1, 1997; 
 37.13     (7) Minnesota supplemental aid under section 256D.36, 
 37.14  subdivision 1, for assistance costs incurred prior to July 1, 
 37.15  1997; 
 37.16     (8) preadmission screening and alternative care grants for 
 37.17  assistance costs incurred prior to July 1, 1997; 
 37.18     (9) work readiness services under section 256D.051 for 
 37.19  employment and training services costs incurred prior to July 1, 
 37.20  1995; 
 37.21     (10) case management services under formerly codified in 
 37.22  Minnesota Statutes 1994, section 256.736, subdivision 13 11, for 
 37.23  case management service costs incurred prior to July 1, 1995; 
 37.24     (11) general assistance claims processing, medical 
 37.25  transportation and related costs for costs incurred prior to 
 37.26  July 1, 1997; 
 37.27     (12) medical transportation and related costs for 
 37.28  transportation and related costs incurred prior to July 1, 1997; 
 37.29  and 
 37.30     (13) group residential housing under section 256I.05, 
 37.31  subdivision 8, transferred from programs in clauses (4) and (7), 
 37.32  for assistance costs incurred prior to July 1, 1997. 
 37.33     Sec. 38.  Minnesota Statutes 1998, section 256.046, 
 37.34  subdivision 1, is amended to read: 
 37.35     Subdivision 1.  [HEARING AUTHORITY.] A local agency shall 
 37.36  initiate an administrative fraud disqualification hearing for 
 38.1   individuals accused of wrongfully obtaining assistance or 
 38.2   intentional program violations, in lieu of a criminal action 
 38.3   when it has not been pursued, in the aid to families with 
 38.4   dependent children program formerly codified in sections 256.72 
 38.5   to 256.87, MFIP-S MFIP, child care, general assistance, family 
 38.6   general assistance program formerly codified in section 256D.05, 
 38.7   subdivision 1, clause (15), Minnesota supplemental aid, medical 
 38.8   care, or food stamp programs.  The hearing is subject to the 
 38.9   requirements of section 256.045 and the requirements in Code of 
 38.10  Federal Regulations, title 7, section 273.16, for the food stamp 
 38.11  program and title 45, section 235.112, as of September 30, 1995, 
 38.12  for the cash grant and medical care programs. 
 38.13     Sec. 39.  Minnesota Statutes 1998, section 256.0471, 
 38.14  subdivision 1, is amended to read: 
 38.15     Subdivision 1.  [QUALIFYING OVERPAYMENT.] Any overpayment 
 38.16  for assistance granted under sections section 119B.05, the MFIP 
 38.17  program formerly codified under sections 256.031 to 256.0361, 
 38.18  and the AFDC program formerly codified under sections 256.72 to 
 38.19  256.871; chapters 256B, 256D, 256I, 256J, and 256K; and the food 
 38.20  stamp program, except agency error claims, become a judgment by 
 38.21  operation of law 90 days after the notice of overpayment is 
 38.22  personally served upon the recipient in a manner that is 
 38.23  sufficient under rule 4.03(a) of the Rules of Civil Procedure 
 38.24  for district courts, or by certified mail, return receipt 
 38.25  requested.  This judgment shall be entitled to full faith and 
 38.26  credit in this and any other state. 
 38.27     Sec. 40.  Minnesota Statutes 1998, section 256.741, 
 38.28  subdivision 1, is amended to read: 
 38.29     Subdivision 1.  [PUBLIC ASSISTANCE.] (a) The term "public 
 38.30  assistance" as used in this chapter and chapters 257, 518, and 
 38.31  518C, includes any form of assistance provided under the AFDC 
 38.32  program formerly codified in sections 256.72 to 256.87, MFIP, 
 38.33  and MFIP-R formerly codified under chapter 256, MFIP-S MFIP 
 38.34  under chapter 256J, and work first program under chapter 256K; 
 38.35  child care assistance provided through the child care 
 38.36  fund according to under chapter 119B; any form of medical 
 39.1   assistance under chapter 256B; MinnesotaCare under chapter 256L; 
 39.2   and foster care as provided under title IV-E of the Social 
 39.3   Security Act. 
 39.4      (b) The term "child support agency" as used in this section 
 39.5   refers to the public authority responsible for child support 
 39.6   enforcement. 
 39.7      (c) The term "public assistance agency" as used in this 
 39.8   section refers to a public authority providing public assistance 
 39.9   to an individual. 
 39.10     Sec. 41.  Minnesota Statutes 1998, section 256.741, 
 39.11  subdivision 2, is amended to read: 
 39.12     Subd. 2.  [ASSIGNMENT OF SUPPORT AND MAINTENANCE RIGHTS.] 
 39.13  (a) An individual receiving public assistance in the form of 
 39.14  assistance under any of the following programs:  the AFDC 
 39.15  program formerly codified in sections 256.72 to 256.87, MFIP-S 
 39.16  MFIP under chapter 256J, MFIP-R, and MFIP formerly codified 
 39.17  under chapter 256, and or work first is considered to have 
 39.18  assigned to the state at the time of application all rights to 
 39.19  child support and maintenance from any other person the 
 39.20  applicant or recipient may have in the individual's own behalf 
 39.21  or in the behalf of any other family member for whom application 
 39.22  for public assistance is made.  An assistance unit is ineligible 
 39.23  for aid to families with dependent children or its successor the 
 39.24  Minnesota family investment program unless the caregiver assigns 
 39.25  all rights to child support and spousal maintenance benefits 
 39.26  according to this section. 
 39.27     (1) An assignment made according to this section is 
 39.28  effective as to: 
 39.29     (i) any current child support and current spousal 
 39.30  maintenance; and 
 39.31     (ii) any accrued child support and spousal maintenance 
 39.32  arrears. 
 39.33     (2) An assignment made after September 30, 1997, is 
 39.34  effective as to: 
 39.35     (i) any current child support and current spousal 
 39.36  maintenance; 
 40.1      (ii) any accrued child support and spousal maintenance 
 40.2   arrears collected before October 1, 2000, or the date the 
 40.3   individual terminates assistance, whichever is later; and 
 40.4      (iii) any accrued child support and spousal maintenance 
 40.5   arrears collected under federal tax intercept. 
 40.6      (b) An individual receiving public assistance in the form 
 40.7   of medical assistance, including MinnesotaCare, is considered to 
 40.8   have assigned to the state at the time of application all rights 
 40.9   to medical support from any other person the individual may have 
 40.10  in the individual's own behalf or in the behalf of any other 
 40.11  family member for whom medical assistance is provided. 
 40.12     An assignment made after September 30, 1997, is effective 
 40.13  as to any medical support accruing after the date of medical 
 40.14  assistance or MinnesotaCare eligibility. 
 40.15     (c) An individual receiving public assistance in the form 
 40.16  of child care assistance under the child care fund pursuant to 
 40.17  chapter 119B is considered to have assigned to the state at the 
 40.18  time of application all rights to child care support from any 
 40.19  other person the individual may have in the individual's own 
 40.20  behalf or in the behalf of any other family member for whom 
 40.21  child care assistance is provided. 
 40.22     An assignment made according to this paragraph is effective 
 40.23  as to: 
 40.24     (1) any current child care support and any child care 
 40.25  support arrears assigned and accruing after July 1, 1997, that 
 40.26  are collected before October 1, 2000; and 
 40.27     (2) any accrued child care support arrears collected under 
 40.28  federal tax intercept. 
 40.29     Sec. 42.  Minnesota Statutes 1998, section 256.82, 
 40.30  subdivision 2, is amended to read: 
 40.31     Subd. 2.  [FOSTER CARE MAINTENANCE PAYMENTS.] 
 40.32  Notwithstanding subdivision 1, for the purposes of foster care 
 40.33  maintenance payments under title IV-E of the federal Social 
 40.34  Security Act, United States Code, title 42, sections 670 to 676, 
 40.35  during the period beginning July 1, 1985, and ending December 
 40.36  31, 1985, the county paying the maintenance costs shall be 
 41.1   reimbursed for the costs from those federal funds available for 
 41.2   that purpose together with an amount of state funds equal to a 
 41.3   percentage of the difference between the total cost and the 
 41.4   federal funds made available for payment.  This percentage shall 
 41.5   not exceed the percentage specified in subdivision 1 for the aid 
 41.6   to families with dependent children program.  In the event that 
 41.7   the state appropriation for this purpose is less than the state 
 41.8   percentage set in subdivision 1, the reimbursement shall be 
 41.9   ratably reduced to the county.  Beginning January 1, 1986, for 
 41.10  the purpose of foster care maintenance payments under title IV-E 
 41.11  of the Social Security Act, United States Code, title 42, 
 41.12  sections 670 to 676, the county paying the maintenance costs 
 41.13  must be reimbursed for the costs from the federal money 
 41.14  available for the purpose.  Beginning July 1, 1997, for the 
 41.15  purposes of determining a child's eligibility under title IV-E 
 41.16  of the Social Security Act, the placing agency shall use AFDC 
 41.17  requirements in effect on July 16, 1996. 
 41.18     Sec. 43.  Minnesota Statutes 1998, section 256.935, 
 41.19  subdivision 1, is amended to read: 
 41.20     Subdivision 1.  On the death of any person receiving public 
 41.21  assistance through aid to dependent children or MFIP-S MFIP, the 
 41.22  county agency shall pay an amount for funeral expenses not 
 41.23  exceeding the amount paid for comparable services under section 
 41.24  261.035 plus actual cemetery charges.  No funeral expenses shall 
 41.25  be paid if the estate of the deceased is sufficient to pay such 
 41.26  expenses or if the spouse, who was legally responsible for the 
 41.27  support of the deceased while living, is able to pay such 
 41.28  expenses; provided, that the additional payment or donation of 
 41.29  the cost of cemetery lot, interment, religious service, or for 
 41.30  the transportation of the body into or out of the community in 
 41.31  which the deceased resided, shall not limit payment by the 
 41.32  county agency as herein authorized.  Freedom of choice in the 
 41.33  selection of a funeral director shall be granted to persons 
 41.34  lawfully authorized to make arrangements for the burial of any 
 41.35  such deceased recipient.  In determining the sufficiency of such 
 41.36  estate, due regard shall be had for the nature and marketability 
 42.1   of the assets of the estate.  The county agency may grant 
 42.2   funeral expenses where the sale would cause undue loss to the 
 42.3   estate.  Any amount paid for funeral expenses shall be a prior 
 42.4   claim against the estate, as provided in section 524.3-805, and 
 42.5   any amount recovered shall be reimbursed to the agency which 
 42.6   paid the expenses.  The commissioner shall specify requirements 
 42.7   for reports, including fiscal reports, according to section 
 42.8   256.01, subdivision 2, paragraph (17).  The state share shall 
 42.9   pay the entire amount of county agency expenditures.  Benefits 
 42.10  shall be issued to recipients by the state or county subject to 
 42.11  provisions of section 256.017. 
 42.12     Sec. 44.  Minnesota Statutes 1998, section 256.98, 
 42.13  subdivision 1, is amended to read: 
 42.14     Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
 42.15  who commits any of the following acts or omissions with intent 
 42.16  to defeat the purposes of sections 145.891 to 145.897, 
 42.17  256.12, the MFIP program formerly codified in sections 256.031 
 42.18  to 256.361 256.0361, the AFDC program formerly codified in 
 42.19  sections 256.72 to 256.871, 256.9365, 256.94 to 256.966, child 
 42.20  care, MFIP-S, chapter and chapters 256B, 256D, 256J, 256K, or 
 42.21  256L, or all of these sections, is guilty of theft and shall be 
 42.22  sentenced under section 609.52, subdivision 3, clauses (1) to 
 42.23  (5): 
 42.24     (1) obtains or attempts to obtain, or aids or abets any 
 42.25  person to obtain by means of a willfully false statement or 
 42.26  representation, by intentional concealment of any material fact, 
 42.27  or by impersonation or other fraudulent device, assistance or 
 42.28  the continued receipt of assistance, to include child care or 
 42.29  vouchers produced according to sections 145.891 to 145.897 and 
 42.30  MinnesotaCare services according to sections 256.9365, 256.94, 
 42.31  and 256L.01 to 256L.16, to which the person is not entitled or 
 42.32  assistance greater than that to which the person is entitled; 
 42.33     (2) knowingly aids or abets in buying or in any way 
 42.34  disposing of the property of a recipient or applicant of 
 42.35  assistance without the consent of the county agency. 
 42.36     The continued receipt of assistance to which the person is 
 43.1   not entitled or greater than that to which the person is 
 43.2   entitled as a result of any of the acts, failure to act, or 
 43.3   concealment described in this subdivision shall be deemed to be 
 43.4   continuing offenses from the date that the first act or failure 
 43.5   to act occurred. 
 43.6      Sec. 45.  Minnesota Statutes 1998, section 256.98, 
 43.7   subdivision 8, is amended to read: 
 43.8      Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
 43.9   to be guilty of wrongfully obtaining assistance by a federal or 
 43.10  state court or by an administrative hearing determination, or 
 43.11  waiver thereof, through a disqualification consent agreement, or 
 43.12  as part of any approved diversion plan under section 401.065, or 
 43.13  any court-ordered stay which carries with it any probationary or 
 43.14  other conditions, in the aid to families with dependent children 
 43.15  program, the Minnesota family assistance program-statewide 
 43.16  program, the food stamp program, the Minnesota family investment 
 43.17  plan, child care program, the general assistance or family 
 43.18  general assistance program, or the Minnesota supplemental aid 
 43.19  program shall be disqualified from that program.  The needs of 
 43.20  that individual shall not be taken into consideration in 
 43.21  determining the grant level for that assistance unit:  
 43.22     (1) for one year after the first offense; 
 43.23     (2) for two years after the second offense; and 
 43.24     (3) permanently after the third or subsequent offense.  
 43.25     The period of program disqualification shall begin on the 
 43.26  date stipulated on the advance notice of disqualification 
 43.27  without possibility of postponement for administrative stay or 
 43.28  administrative hearing and shall continue through completion 
 43.29  unless and until the findings upon which the sanctions were 
 43.30  imposed are reversed by a court of competent jurisdiction.  The 
 43.31  period for which sanctions are imposed is not subject to 
 43.32  review.  The sanctions provided under this subdivision are in 
 43.33  addition to, and not in substitution for, any other sanctions 
 43.34  that may be provided for by law for the offense involved.  A 
 43.35  disqualification established through hearing or waiver shall 
 43.36  result in the disqualification period beginning immediately 
 44.1   unless the person has become otherwise ineligible for 
 44.2   assistance.  If the person is ineligible for assistance, the 
 44.3   disqualification period begins when the person again meets the 
 44.4   eligibility criteria of the program from which they were 
 44.5   disqualified and makes application for that program. 
 44.6      Sec. 46.  Minnesota Statutes 1998, section 256.981, is 
 44.7   amended to read: 
 44.8      256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 
 44.9      The commissioner of human services shall, to the extent an 
 44.10  appropriation is provided for this purpose, contract with the 
 44.11  county attorney's council or other public or private entity 
 44.12  experienced in providing training for prosecutors to conduct 
 44.13  quarterly workshops and seminars focusing on current aid to 
 44.14  families with dependent children and Minnesota family investment 
 44.15  program-statewide program issues, other income maintenance 
 44.16  program changes, recovery issues, alternative sentencing 
 44.17  methods, use of technical aids for interviews and 
 44.18  interrogations, and other matters affecting prosecution of 
 44.19  welfare fraud cases. 
 44.20     Sec. 47.  Minnesota Statutes 1998, section 256.983, 
 44.21  subdivision 4, is amended to read: 
 44.22     Subd. 4.  [FUNDING.] (a) County agency reimbursement shall 
 44.23  be made through the settlement provisions applicable to the aid 
 44.24  to families with dependent children program formerly codified in 
 44.25  sections 256.72 to 256.87, food stamp program, Minnesota family 
 44.26  investment program-statewide program, and medical assistance 
 44.27  program and other federal and state-funded programs. 
 44.28     (b) The commissioner will maintain program compliance if 
 44.29  for any three consecutive month period, a county agency fails to 
 44.30  comply with fraud prevention investigation program guidelines, 
 44.31  or fails to meet the cost-effectiveness standards developed by 
 44.32  the commissioner.  This result is contingent on the commissioner 
 44.33  providing written notice, including an offer of technical 
 44.34  assistance, within 30 days of the end of the third or subsequent 
 44.35  month of noncompliance.  The county agency shall be required to 
 44.36  submit a corrective action plan to the commissioner within 30 
 45.1   days of receipt of a notice of noncompliance.  Failure to submit 
 45.2   a corrective action plan or, continued deviation from standards 
 45.3   of more than ten percent after submission of a corrective action 
 45.4   plan, will result in denial of funding for each subsequent 
 45.5   month, or billing the county agency for fraud prevention 
 45.6   investigation (FPI) service provided by the commissioner, or 
 45.7   reallocation of program grant funds, or investigative resources, 
 45.8   or both, to other counties.  The denial of funding shall apply 
 45.9   to the general settlement received by the county agency on a 
 45.10  quarterly basis and shall not reduce the grant amount applicable 
 45.11  to the FPI project.  
 45.12     Sec. 48.  Minnesota Statutes 1998, section 256.9861, 
 45.13  subdivision 5, is amended to read: 
 45.14     Subd. 5.  [FUNDING.] (a) State funding shall be made 
 45.15  available contingent on counties submitting a plan that is 
 45.16  approved by the department of human services.  Failure or delay 
 45.17  in obtaining that approval shall not, however, eliminate the 
 45.18  obligation to maintain fraud control efforts at the June 30, 
 45.19  1996, level.  County agency reimbursement shall be made through 
 45.20  the settlement provisions applicable to the AFDC, MFIP-S MFIP, 
 45.21  food stamp, and medical assistance programs.  
 45.22     (b) Should a county agency fail to comply with the 
 45.23  standards set, or fail to meet cost-effectiveness standards 
 45.24  developed by the commissioner for any three-month period, the 
 45.25  commissioner shall deny reimbursement or administrative costs, 
 45.26  after allowing an opportunity to establish compliance.  
 45.27     (c) Any denial of reimbursement under paragraph (b) is 
 45.28  contingent on the commissioner providing written notice, 
 45.29  including an offer of technical assistance, within 30 days of 
 45.30  the end of the third or subsequent months of noncompliance.  The 
 45.31  county agency shall be required to submit a corrective action 
 45.32  plan to the commissioner within 30 days of receipt of a notice 
 45.33  of noncompliance.  Failure to submit a corrective action plan or 
 45.34  continued deviation from standards of more than ten percent 
 45.35  after submission of corrective action plan, will result in 
 45.36  denial of funding for each such month during the grant year, or 
 46.1   billing of the county agency for program integrity reinvestment 
 46.2   project services provided by the commissioner or reallocation of 
 46.3   grant funds to other counties.  The denial of funding shall 
 46.4   apply to the general settlement received by the county agency on 
 46.5   a quarterly basis and shall not reduce the grant amount 
 46.6   applicable to the program integrity reinvestment project. 
 46.7      Sec. 49.  Minnesota Statutes 1998, section 256B.031, 
 46.8   subdivision 4, is amended to read: 
 46.9      Subd. 4.  [PREPAID HEALTH PLAN RATES.] For payments made 
 46.10  during calendar year 1988, the monthly maximum allowable rate 
 46.11  established by the commissioner of human services for payment to 
 46.12  prepaid health plans must not exceed 90 percent of the projected 
 46.13  average monthly per capita fee-for-service medical assistance 
 46.14  costs for state fiscal year 1988 for recipients of the aid to 
 46.15  families with dependent children program formerly codified in 
 46.16  sections 256.72 to 256.87.  The base year for projecting the 
 46.17  average monthly per capita fee-for-service medical assistance 
 46.18  costs is state fiscal year 1986.  A maximum allowable per capita 
 46.19  rate must be established collectively for Anoka, Carver, Dakota, 
 46.20  Hennepin, Ramsey, St. Louis, Scott, and Washington counties.  A 
 46.21  separate maximum allowable per capita rate must be established 
 46.22  collectively for all other counties.  The maximum allowable per 
 46.23  capita rate may be adjusted to reflect utilization differences 
 46.24  among eligible classes of recipients.  For payments made during 
 46.25  calendar year 1989, the maximum allowable rate must be 
 46.26  calculated in the same way as 1988 rates, except the base year 
 46.27  is state fiscal year 1987.  For payments made during calendar 
 46.28  year 1990 and later years, the commissioner shall consult with 
 46.29  an independent actuary in establishing prepayment rates, but 
 46.30  shall retain final control over the rate methodology.  Rates 
 46.31  established for prepaid health plans must be based on the 
 46.32  services that the prepaid health plan provides under contract 
 46.33  with the commissioner.  
 46.34     Sec. 50.  Minnesota Statutes 1998, section 256B.031, 
 46.35  subdivision 5, is amended to read: 
 46.36     Subd. 5.  [FREE CHOICE LIMITED.] (a) The commissioner may 
 47.1   require recipients of aid to families with dependent 
 47.2   children the Minnesota family investment program to enroll in a 
 47.3   prepaid health plan and receive services from or through the 
 47.4   prepaid health plan, with the following exceptions: 
 47.5      (1) recipients who are refugees and whose health services 
 47.6   are reimbursed 100 percent by the federal government; and 
 47.7      (2) recipients who are placed in a foster home or 
 47.8   facility.  If placement occurs before the seventh day prior to 
 47.9   the end of any month, the recipient will be disenrolled from the 
 47.10  recipient's prepaid health plan effective the first day of the 
 47.11  following month.  If placement occurs after the seventh day 
 47.12  before the end of any month, that recipient will be disenrolled 
 47.13  from the prepaid health plan on the first day of the second 
 47.14  month following placement.  The prepaid health plan must provide 
 47.15  all services set forth in subdivision 2 during the interim 
 47.16  period. 
 47.17     Enrollment in a prepaid health plan is mandatory only when 
 47.18  recipients have a choice of at least two prepaid health plans.  
 47.19     (b) Recipients who become eligible on or after December 1, 
 47.20  1987, must choose a health plan within 30 days of the date 
 47.21  eligibility is determined.  At the time of application, the 
 47.22  local agency shall ask the recipient whether the recipient has a 
 47.23  primary health care provider.  If the recipient has not chosen a 
 47.24  health plan within 30 days but has provided the local agency 
 47.25  with the name of a primary health care provider, the local 
 47.26  agency shall determine whether the provider participates in a 
 47.27  prepaid health plan available to the recipient and, if so, the 
 47.28  local agency shall select that plan on the recipient's behalf.  
 47.29  If the recipient has not provided the name of a primary health 
 47.30  care provider who participates in an available prepaid health 
 47.31  plan, commissioner shall randomly assign the recipient to a 
 47.32  health plan.  
 47.33     (c) If possible, the local agency shall ask whether the 
 47.34  recipient has a primary health care provider and the procedures 
 47.35  under paragraph (b) shall apply.  If a recipient does not choose 
 47.36  a prepaid health plan by this date, the commissioner shall 
 48.1   randomly assign the recipient to a health plan.  
 48.2      (d) The commissioner shall request a waiver from the 
 48.3   federal Health Care Financing Administration to limit a 
 48.4   recipient's ability to change health plans to once every six or 
 48.5   12 months.  If such a waiver is obtained, each recipient must be 
 48.6   enrolled in the health plan for a minimum of six or 12 months.  
 48.7   A recipient may change health plans once within the first 60 
 48.8   days after initial enrollment. 
 48.9      (e) Women who are receiving medical assistance due to 
 48.10  pregnancy and later become eligible for aid to families with 
 48.11  dependent children the Minnesota family investment program are 
 48.12  not required to choose a prepaid health plan until 60 days 
 48.13  postpartum.  An infant born as a result of that pregnancy must 
 48.14  be enrolled in a prepaid health plan at the same time as the 
 48.15  mother. 
 48.16     (f) If third-party coverage is available to a recipient 
 48.17  through enrollment in a prepaid health plan through employment, 
 48.18  through coverage by the former spouse, or if a duty of support 
 48.19  has been imposed by law, order, decree, or judgment of a court 
 48.20  under section 518.551, the obligee or recipient shall 
 48.21  participate in the prepaid health plan in which the obligee has 
 48.22  enrolled provided that the commissioner has contracted with the 
 48.23  plan. 
 48.24     Sec. 51.  Minnesota Statutes 1998, section 256B.69, 
 48.25  subdivision 5a, is amended to read: 
 48.26     Subd. 5a.  [MANAGED CARE CONTRACTS.] Managed care contracts 
 48.27  under this section, and sections 256.9363, 256L.12 and 256D.03, 
 48.28  shall be entered into or renewed on a calendar year basis 
 48.29  beginning January 1, 1996.  Managed care contracts which were in 
 48.30  effect on June 30, 1995, and set to renew on July 1, 1995, shall 
 48.31  be renewed for the period July 1, 1995 through December 31, 1995 
 48.32  at the same terms that were in effect on June 30, 1995. 
 48.33     Sec. 52.  Minnesota Statutes 1998, section 256C.21, is 
 48.34  amended to read: 
 48.35     256C.21 [DEAF AND HARD-OF-HEARING SERVICES ACT; CITATION.] 
 48.36     Sections 256C.21 to 256C.27 256C.26 may be cited as the 
 49.1   "Deaf and Hard-of-Hearing Services Act."  
 49.2      Sec. 53.  Minnesota Statutes 1998, section 256C.23, 
 49.3   subdivision 1, is amended to read: 
 49.4      Subdivision 1.  For the purposes of sections 256C.21 to 
 49.5   256C.27 256C.26, the terms defined in this section shall have 
 49.6   the meanings given them, unless the context clearly indicates 
 49.7   otherwise.  
 49.8      Sec. 54.  Minnesota Statutes 1998, section 256D.01, 
 49.9   subdivision 1a, is amended to read: 
 49.10     Subd. 1a.  [STANDARDS.] (a) A principal objective in 
 49.11  providing general assistance is to provide for single adults, 
 49.12  childless couples, or children as defined in section 256D.02, 
 49.13  subdivision 6, ineligible for federal programs who are unable to 
 49.14  provide for themselves.  The minimum standard of assistance 
 49.15  determines the total amount of the general assistance grant 
 49.16  without separate standards for shelter, utilities, or other 
 49.17  needs. 
 49.18     (b) The commissioner shall set the standard of assistance 
 49.19  for an assistance unit consisting of an adult recipient who is 
 49.20  childless and unmarried or living apart from children and spouse 
 49.21  and who does not live with a parent or parents or a legal 
 49.22  custodian.  When the other standards specified in this 
 49.23  subdivision increase, this standard must also be increased by 
 49.24  the same percentage. 
 49.25     (c) For an assistance unit consisting of a single adult who 
 49.26  lives with a parent or parents, the general assistance standard 
 49.27  of assistance is the amount that the aid to families with 
 49.28  dependent children standard of assistance, in effect on July 16, 
 49.29  1996, would increase if the recipient were added as an 
 49.30  additional minor child to an assistance unit consisting of the 
 49.31  recipient's parent and all of that parent's family members, 
 49.32  except that the standard may not exceed the standard for a 
 49.33  general assistance recipient living alone.  Benefits received by 
 49.34  a responsible relative of the assistance unit under the 
 49.35  supplemental security income program, a workers' compensation 
 49.36  program, the Minnesota supplemental aid program, or any other 
 50.1   program based on the responsible relative's disability, and any 
 50.2   benefits received by a responsible relative of the assistance 
 50.3   unit under the social security retirement program, may not be 
 50.4   counted in the determination of eligibility or benefit level for 
 50.5   the assistance unit.  Except as provided below, the assistance 
 50.6   unit is ineligible for general assistance if the available 
 50.7   resources or the countable income of the assistance unit and the 
 50.8   parent or parents with whom the assistance unit lives are such 
 50.9   that a family consisting of the assistance unit's parent or 
 50.10  parents, the parent or parents' other family members and the 
 50.11  assistance unit as the only or additional minor child would be 
 50.12  financially ineligible for general assistance.  For the purposes 
 50.13  of calculating the countable income of the assistance unit's 
 50.14  parent or parents, the calculation methods, income deductions, 
 50.15  exclusions, and disregards used when calculating the countable 
 50.16  income for a single adult or childless couple must be used. 
 50.17     (d) For an assistance unit consisting of a childless 
 50.18  couple, the standards of assistance are the same as the first 
 50.19  and second adult standards of the aid to families with dependent 
 50.20  children program in effect on July 16, 1996.  If one member of 
 50.21  the couple is not included in the general assistance grant, the 
 50.22  standard of assistance for the other is the second adult 
 50.23  standard of the aid to families with dependent children 
 50.24  program as of July 16, 1996. 
 50.25     Sec. 55.  Minnesota Statutes 1998, section 256D.01, 
 50.26  subdivision 1e, is amended to read: 
 50.27     Subd. 1e.  [RULES REGARDING EMERGENCY ASSISTANCE.] The 
 50.28  commissioner shall adopt rules under the terms of sections 
 50.29  256D.01 to 256D.21 for general assistance, to require use of the 
 50.30  emergency program under aid to families with dependent children 
 50.31  or MFIP-S MFIP as the primary financial resource when available. 
 50.32  The commissioner shall adopt rules for eligibility for general 
 50.33  assistance of persons with seasonal income and may attribute 
 50.34  seasonal income to other periods not in excess of one year from 
 50.35  receipt by an applicant or recipient.  General assistance 
 50.36  payments may not be made for foster care, child welfare 
 51.1   services, or other social services.  Vendor payments and 
 51.2   vouchers may be issued only as authorized in sections 256D.05, 
 51.3   subdivision 6, and 256D.09. 
 51.4      Sec. 56.  Minnesota Statutes 1998, section 256D.05, 
 51.5   subdivision 1, is amended to read: 
 51.6      Subdivision 1.  [ELIGIBILITY.] (a) Each assistance unit 
 51.7   with income and resources less than the standard of assistance 
 51.8   established by the commissioner and with a member who is a 
 51.9   resident of the state shall be eligible for and entitled to 
 51.10  general assistance if the assistance unit is: 
 51.11     (1) a person who is suffering from a professionally 
 51.12  certified permanent or temporary illness, injury, or incapacity 
 51.13  which is expected to continue for more than 30 days and which 
 51.14  prevents the person from obtaining or retaining employment; 
 51.15     (2) a person whose presence in the home on a substantially 
 51.16  continuous basis is required because of the professionally 
 51.17  certified illness, injury, incapacity, or the age of another 
 51.18  member of the household; 
 51.19     (3) a person who has been placed in, and is residing in, a 
 51.20  licensed or certified facility for purposes of physical or 
 51.21  mental health or rehabilitation, or in an approved chemical 
 51.22  dependency domiciliary facility, if the placement is based on 
 51.23  illness or incapacity and is according to a plan developed or 
 51.24  approved by the county agency through its director or designated 
 51.25  representative; 
 51.26     (4) a person who resides in a shelter facility described in 
 51.27  subdivision 3; 
 51.28     (5) a person not described in clause (1) or (3) who is 
 51.29  diagnosed by a licensed physician, psychological practitioner, 
 51.30  or other qualified professional, as mentally retarded or 
 51.31  mentally ill, and that condition prevents the person from 
 51.32  obtaining or retaining employment; 
 51.33     (6) a person who has an application pending for, or is 
 51.34  appealing termination of benefits from, the social security 
 51.35  disability program or the program of supplemental security 
 51.36  income for the aged, blind, and disabled, provided the person 
 52.1   has a professionally certified permanent or temporary illness, 
 52.2   injury, or incapacity which is expected to continue for more 
 52.3   than 30 days and which prevents the person from obtaining or 
 52.4   retaining employment; 
 52.5      (7) a person who is unable to obtain or retain employment 
 52.6   because advanced age significantly affects the person's ability 
 52.7   to seek or engage in substantial work; 
 52.8      (8) a person who has been assessed by a vocational 
 52.9   specialist and, in consultation with the county agency, has been 
 52.10  determined to be unemployable for purposes of this clause; a 
 52.11  person is considered employable if there exist positions of 
 52.12  employment in the local labor market, regardless of the current 
 52.13  availability of openings for those positions, that the person is 
 52.14  capable of performing.  The person's eligibility under this 
 52.15  category must be reassessed at least annually.  The county 
 52.16  agency must provide notice to the person not later than 30 days 
 52.17  before annual eligibility under this item ends, informing the 
 52.18  person of the date annual eligibility will end and the need for 
 52.19  vocational assessment if the person wishes to continue 
 52.20  eligibility under this clause.  For purposes of establishing 
 52.21  eligibility under this clause, it is the applicant's or 
 52.22  recipient's duty to obtain any needed vocational assessment; 
 52.23     (9) a person who is determined by the county agency, 
 52.24  according to permanent rules adopted by the commissioner, to be 
 52.25  learning disabled, provided that if a rehabilitation plan for 
 52.26  the person is developed or approved by the county agency, the 
 52.27  person is following the plan; 
 52.28     (10) a child under the age of 18 who is not living with a 
 52.29  parent, stepparent, or legal custodian, and only if:  the child 
 52.30  is legally emancipated or living with an adult with the consent 
 52.31  of an agency acting as a legal custodian; the child is at least 
 52.32  16 years of age and the general assistance grant is approved by 
 52.33  the director of the county agency or a designated representative 
 52.34  as a component of a social services case plan for the child; or 
 52.35  the child is living with an adult with the consent of the 
 52.36  child's legal custodian and the county agency.  For purposes of 
 53.1   this clause, "legally emancipated" means a person under the age 
 53.2   of 18 years who:  (i) has been married; (ii) is on active duty 
 53.3   in the uniformed services of the United States; (iii) has been 
 53.4   emancipated by a court of competent jurisdiction; or (iv) is 
 53.5   otherwise considered emancipated under Minnesota law, and for 
 53.6   whom county social services has not determined that a social 
 53.7   services case plan is necessary, for reasons other than the 
 53.8   child has failed or refuses to cooperate with the county agency 
 53.9   in developing the plan; 
 53.10     (11) until March 31, 1998, a woman in the last trimester of 
 53.11  pregnancy who does not qualify for aid to families with 
 53.12  dependent children.  A woman who is in the last trimester of 
 53.13  pregnancy who is currently receiving aid to families with 
 53.14  dependent children may be granted emergency general assistance 
 53.15  to meet emergency needs; 
 53.16     (12) a person who is eligible for displaced homemaker 
 53.17  services, programs, or assistance under section 268.96, but only 
 53.18  if that person is enrolled as a full-time student; 
 53.19     (13) (12) a person who lives more than four hours 
 53.20  round-trip traveling time from any potential suitable 
 53.21  employment; 
 53.22     (14) (13) a person who is involved with protective or 
 53.23  court-ordered services that prevent the applicant or recipient 
 53.24  from working at least four hours per day; 
 53.25     (15)(i) until March 31, 1998, a family as defined in 
 53.26  section 256D.02, subdivision 5, which is ineligible for the aid 
 53.27  to families with dependent children program; 
 53.28     (ii) unless exempt under section 256D.051, subdivision 3a, 
 53.29  each adult in the unit must participate in and cooperate with 
 53.30  the food stamp employment and training program under section 
 53.31  256D.051 each month that the unit receives general assistance 
 53.32  benefits.  The recipient's participation must begin no later 
 53.33  than the first day of the first full month following the 
 53.34  determination of eligibility for general assistance benefits.  
 53.35  To the extent of available resources, and with the county 
 53.36  agency's consent, the recipient may voluntarily continue to 
 54.1   participate in food stamp employment and training services for 
 54.2   up to three additional consecutive months immediately following 
 54.3   termination of general assistance benefits in order to complete 
 54.4   the provisions of the recipient's employability development 
 54.5   plan.  If an adult member fails without good cause to 
 54.6   participate in or cooperate with the food stamp employment and 
 54.7   training program, the county agency shall concurrently terminate 
 54.8   that person's eligibility for general assistance and food stamps 
 54.9   using the notice, good cause, conciliation and termination 
 54.10  procedures specified in section 256D.051; 
 54.11     (16) (14) a person over age 18 whose primary language is 
 54.12  not English and who is attending high school at least half time; 
 54.13  or 
 54.14     (17) (15) a person whose alcohol and drug addiction is a 
 54.15  material factor that contributes to the person's disability; 
 54.16  applicants who assert this clause as a basis for eligibility 
 54.17  must be assessed by the county agency to determine if they are 
 54.18  amenable to treatment; if the applicant is determined to be not 
 54.19  amenable to treatment, but is otherwise eligible for benefits, 
 54.20  then general assistance must be paid in vendor form, for the 
 54.21  individual's shelter costs up to the limit of the grant amount, 
 54.22  with the residual, if any, paid according to section 256D.09, 
 54.23  subdivision 2a; if the applicant is determined to be amenable to 
 54.24  treatment, then in order to receive benefits, the applicant must 
 54.25  be in a treatment program or on a waiting list and the benefits 
 54.26  must be paid in vendor form, for the individual's shelter costs, 
 54.27  up to the limit of the grant amount, with the residual, if any, 
 54.28  paid according to section 256D.09, subdivision 2a. 
 54.29     (b) As a condition of eligibility under paragraph (a), 
 54.30  clauses (1), (3), (5), (8), and (9), the recipient must complete 
 54.31  an interim assistance agreement and must apply for other 
 54.32  maintenance benefits as specified in section 256D.06, 
 54.33  subdivision 5, and must comply with efforts to determine the 
 54.34  recipient's eligibility for those other maintenance benefits.  
 54.35     (c) The burden of providing documentation for a county 
 54.36  agency to use to verify eligibility for general assistance or 
 55.1   for exemption from the food stamp employment and training 
 55.2   program is upon the applicant or recipient.  The county agency 
 55.3   shall use documents already in its possession to verify 
 55.4   eligibility, and shall help the applicant or recipient obtain 
 55.5   other existing verification necessary to determine eligibility 
 55.6   which the applicant or recipient does not have and is unable to 
 55.7   obtain. 
 55.8      Sec. 57.  Minnesota Statutes 1998, section 256D.05, 
 55.9   subdivision 3, is amended to read: 
 55.10     Subd. 3.  [RESIDENTS OF SHELTER FACILITIES.] 
 55.11  Notwithstanding the provisions of subdivisions 1 and 2, general 
 55.12  assistance payments shall be made for maintenance costs and 
 55.13  security costs which are related to providing 24-hour staff 
 55.14  coverage at the facility incurred as a result of residence in a 
 55.15  secure crisis shelter, a housing network, or other shelter 
 55.16  facilities which provide shelter services to women and their 
 55.17  children who are being or have been assaulted by their spouses, 
 55.18  other male relatives, or other males with whom they are residing 
 55.19  or have resided in the past. 
 55.20     These payments shall be made directly to the shelter 
 55.21  facility from general assistance funds on behalf of women and 
 55.22  their children who are receiving, or who are eligible to 
 55.23  receive, aid to families with dependent children Minnesota 
 55.24  family investment program or general assistance.  
 55.25     In determining eligibility of women and children for 
 55.26  payment of general assistance under this subdivision, the asset 
 55.27  limitations of the aid to families with dependent children 
 55.28  Minnesota family investment program shall be applied.  Payments 
 55.29  to shelter facilities shall not affect the eligibility of 
 55.30  individuals who reside in shelter facilities for aid to families 
 55.31  with dependent children Minnesota family investment program or 
 55.32  general assistance or payments made to individuals who reside in 
 55.33  shelter facilities through aid to families with dependent 
 55.34  children Minnesota family investment program or general 
 55.35  assistance, except when required by federal law or regulation.  
 55.36     Sec. 58.  Minnesota Statutes 1998, section 256D.05, 
 56.1   subdivision 5, is amended to read: 
 56.2      Subd. 5.  [TRANSFERS OF PROPERTY.] The equity value of real 
 56.3   and personal property transferred without reasonable 
 56.4   compensation within 12 months preceding the date of application 
 56.5   for general assistance must be included in determining the 
 56.6   resources of an assistance unit in the same manner as in the aid 
 56.7   to families with dependent children program under chapter 256 or 
 56.8   MFIP-S MFIP under chapter 256J. 
 56.9      Sec. 59.  Minnesota Statutes 1998, section 256D.051, 
 56.10  subdivision 3a, is amended to read: 
 56.11     Subd. 3a.  [PERSONS REQUIRED TO REGISTER FOR AND 
 56.12  PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 
 56.13  (a) To the extent required under Code of Federal Regulations, 
 56.14  title 7, section 273.7(a), each applicant for and recipient of 
 56.15  food stamps is required to register for work as a condition of 
 56.16  eligibility for food stamp benefits.  Applicants and recipients 
 56.17  are registered by signing an application or annual reapplication 
 56.18  for food stamps, and must be informed that they are registering 
 56.19  for work by signing the form.  
 56.20     (b) The commissioner shall determine, within federal 
 56.21  requirements, persons required to participate in the food stamp 
 56.22  employment and training (FSET) program. 
 56.23     (c) The following food stamp recipients are exempt from 
 56.24  mandatory participation in food stamp employment and training 
 56.25  services: 
 56.26     (1) recipients of benefits under the AFDC program, the 
 56.27  MFIP-S, MFIP, and MFIP-R programs program, Minnesota 
 56.28  supplemental aid program, or the general assistance program; 
 56.29     (2) a child; 
 56.30     (3) a recipient over age 55; 
 56.31     (4) a recipient who has a mental or physical illness, 
 56.32  injury, or incapacity which is expected to continue for at least 
 56.33  30 days and which impairs the recipient's ability to obtain or 
 56.34  retain employment as evidenced by professional certification or 
 56.35  the receipt of temporary or permanent disability benefits issued 
 56.36  by a private or government source; 
 57.1      (5) a parent or other household member responsible for the 
 57.2   care of either a dependent child in the household who is under 
 57.3   age six or a person in the household who is professionally 
 57.4   certified as having a physical or mental illness, injury, or 
 57.5   incapacity.  Only one parent or other household member may claim 
 57.6   exemption under this provision; 
 57.7      (6) a recipient receiving unemployment compensation or who 
 57.8   has applied for unemployment compensation and has been required 
 57.9   to register for work with the department of economic security as 
 57.10  part of the unemployment compensation application process; 
 57.11     (7) a recipient participating each week in a drug addiction 
 57.12  or alcohol abuse treatment and rehabilitation program, provided 
 57.13  the operators of the treatment and rehabilitation program, in 
 57.14  consultation with the county agency, recommend that the 
 57.15  recipient not participate in the food stamp employment and 
 57.16  training program; 
 57.17     (8) a recipient employed or self-employed for 30 or more 
 57.18  hours per week at employment paying at least minimum wage, or 
 57.19  who earns wages from employment equal to or exceeding 30 hours 
 57.20  multiplied by the federal minimum wage; or 
 57.21     (9) a student enrolled at least half time in any school, 
 57.22  training program, or institution of higher education.  When 
 57.23  determining if a student meets this criteria, the school's, 
 57.24  program's or institution's criteria for being enrolled half time 
 57.25  shall be used. 
 57.26     Sec. 60.  Minnesota Statutes 1998, section 256D.055, is 
 57.27  amended to read: 
 57.28     256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 
 57.29     The commissioner of human services shall issue a request 
 57.30  for proposals from counties to submit a plan for developing and 
 57.31  implementing a county-designed program.  The plan shall be for 
 57.32  first-time applicants for Minnesota family investment 
 57.33  program-statewide (MFIP-S) and, until March 31, 1998, aid to 
 57.34  families with dependent children and family general assistance 
 57.35  program and must emphasize the importance of becoming employed 
 57.36  and oriented into the work force in order to become 
 58.1   self-sufficient.  The plan must target public assistance 
 58.2   applicants who are most likely to become self-sufficient quickly 
 58.3   with short-term assistance or services such as child care, child 
 58.4   support enforcement, or employment and training services.  
 58.5      The plan may include vendor payments, mandatory job search, 
 58.6   refocusing existing county or provider efforts, or other program 
 58.7   features.  The commissioner may approve a county plan which 
 58.8   allows a county to use other program funding for the county work 
 58.9   focus program in a more flexible manner.  Nothing in this 
 58.10  section shall allow payments made to the public assistance 
 58.11  applicant to be less than the amount the applicant would have 
 58.12  received if the program had not been implemented, or reduce or 
 58.13  eliminate a category of eligible participants from the program 
 58.14  without legislative approval.  
 58.15     The commissioner shall not approve a county plan that would 
 58.16  have an adverse impact on the Minnesota family investment plan 
 58.17  demonstration.  If the plan is approved by the commissioner, the 
 58.18  county may implement the plan.  If the plan is approved by the 
 58.19  commissioner, but a federal waiver is necessary to implement the 
 58.20  plan, the commissioner shall apply for the necessary federal 
 58.21  waivers.  
 58.22     Sec. 61.  Minnesota Statutes 1998, section 256D.23, 
 58.23  subdivision 1, is amended to read: 
 58.24     Subdivision 1.  [PROGRAM ESTABLISHED.] Minnesota residents 
 58.25  who meet the income and resource standards of section 256D.01, 
 58.26  subdivision 1a, but do not qualify for cash benefits under 
 58.27  sections 256D.01 to 256D.22 256D.21, may qualify for a county 
 58.28  payment under this section. 
 58.29     Sec. 62.  Minnesota Statutes 1998, section 256D.435, 
 58.30  subdivision 3, is amended to read: 
 58.31     Subd. 3.  [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 
 58.32  Persons who live with the applicant or recipient, who have unmet 
 58.33  needs and for whom the applicant or recipient has financial 
 58.34  responsibility, must apply for and, if eligible, accept AFDC 
 58.35  Minnesota family investment program and any other federally 
 58.36  funded benefits, including MFIP-S.  
 59.1      Sec. 63.  Minnesota Statutes 1998, section 256D.44, 
 59.2   subdivision 5, is amended to read: 
 59.3      Subd. 5.  [SPECIAL NEEDS.] In addition to the state 
 59.4   standards of assistance established in subdivisions 1 to 4, 
 59.5   payments are allowed for the following special needs of 
 59.6   recipients of Minnesota supplemental aid who are not residents 
 59.7   of a nursing home, a regional treatment center, or a group 
 59.8   residential housing facility. 
 59.9      (a) The county agency shall pay a monthly allowance for 
 59.10  medically prescribed diets payable under the AFDC program or the 
 59.11  Minnesota family investment program-statewide program if the 
 59.12  cost of those additional dietary needs cannot be met through 
 59.13  some other maintenance benefit.  
 59.14     (b) Payment for nonrecurring special needs must be allowed 
 59.15  for necessary home repairs or necessary repairs or replacement 
 59.16  of household furniture and appliances using the payment standard 
 59.17  of the AFDC program in effect on July 16, 1996, for these 
 59.18  expenses, as long as other funding sources are not available.  
 59.19     (c) A fee for guardian or conservator service is allowed at 
 59.20  a reasonable rate negotiated by the county or approved by the 
 59.21  court.  This rate shall not exceed five percent of the 
 59.22  assistance unit's gross monthly income up to a maximum of $100 
 59.23  per month.  If the guardian or conservator is a member of the 
 59.24  county agency staff, no fee is allowed. 
 59.25     (d) The county agency shall continue to pay a monthly 
 59.26  allowance of $68 for restaurant meals for a person who was 
 59.27  receiving a restaurant meal allowance on June 1, 1990, and who 
 59.28  eats two or more meals in a restaurant daily.  The allowance 
 59.29  must continue until the person has not received Minnesota 
 59.30  supplemental aid for one full calendar month or until the 
 59.31  person's living arrangement changes and the person no longer 
 59.32  meets the criteria for the restaurant meal allowance, whichever 
 59.33  occurs first. 
 59.34     (e) A fee of ten percent of the recipient's gross income or 
 59.35  $25, whichever is less, is allowed for representative payee 
 59.36  services provided by an agency that meets the requirements under 
 60.1   SSI regulations to charge a fee for representative payee 
 60.2   services.  This special need is available to all recipients of 
 60.3   Minnesota supplemental aid regardless of their living 
 60.4   arrangement. 
 60.5      Sec. 64.  Minnesota Statutes 1998, section 256E.03, 
 60.6   subdivision 2, is amended to read: 
 60.7      Subd. 2.  (a) "Community social services" means services 
 60.8   provided or arranged for by county boards to fulfill the 
 60.9   responsibilities prescribed in section 256E.08, subdivision 1, 
 60.10  to the following groups of persons: 
 60.11     (1) families with children under age 18, who are 
 60.12  experiencing child dependency, neglect or abuse, and also 
 60.13  pregnant adolescents, adolescent parents under the age of 18 and 
 60.14  their children, and other adolescents; 
 60.15     (2) persons, including adolescents, who are under the 
 60.16  guardianship of the commissioner of human services as dependent 
 60.17  and neglected wards; 
 60.18     (3) adults who are in need of protection and vulnerable as 
 60.19  defined in section 626.5572; 
 60.20     (4) persons age 60 and over who are experiencing difficulty 
 60.21  living independently and are unable to provide for their own 
 60.22  needs; 
 60.23     (5) emotionally disturbed children and adolescents, 
 60.24  chronically and acutely mentally ill persons who are unable to 
 60.25  provide for their own needs or to independently engage in 
 60.26  ordinary community activities; 
 60.27     (6) persons with mental retardation as defined in section 
 60.28  252A.02, subdivision 2, or with related conditions as defined in 
 60.29  section 252.27, subdivision 1a, who are unable to provide for 
 60.30  their own needs or to independently engage in ordinary community 
 60.31  activities; 
 60.32     (7) drug dependent and intoxicated persons, including 
 60.33  adolescents, as defined in section 254A.02, subdivisions 5 and 
 60.34  7, and persons, including adolescents, at risk of harm to self 
 60.35  or others due to the ingestion of alcohol or other drugs; 
 60.36     (8) parents whose income is at or below 70 percent of the 
 61.1   state median income and who are in need of child care services 
 61.2   in order to secure or retain employment or to obtain the 
 61.3   training or education necessary to secure employment; 
 61.4      (9) children and adolescents involved in or at risk of 
 61.5   involvement with criminal activity; and 
 61.6      (10) other groups of persons who, in the judgment of the 
 61.7   county board, are in need of social services. 
 61.8      (b) Except as provided in section 256E.08, subdivision 5, 
 61.9   community social services do not include public assistance 
 61.10  programs known as aid to families with dependent children, the 
 61.11  Minnesota family investment program-statewide program, Minnesota 
 61.12  supplemental aid, medical assistance, general assistance, 
 61.13  general assistance medical care, or community health services 
 61.14  authorized by sections 145A.09 to 145A.13.  
 61.15     Sec. 65.  Minnesota Statutes 1998, section 256E.06, 
 61.16  subdivision 1, is amended to read: 
 61.17     Subdivision 1.  [FORMULA.] The commissioner of human 
 61.18  services shall distribute community social service aids to each 
 61.19  county board in an amount determined according to the following 
 61.20  formula: 
 61.21     In calendar year 1982 and thereafter: 
 61.22     (a) One-third shall be distributed on the basis of the 
 61.23  average unduplicated number of persons who receive AFDC, 
 61.24  Minnesota family investment program-statewide program 
 61.25  assistance, general assistance, and medical assistance per month 
 61.26  in the calendar year two years prior to the year for which funds 
 61.27  are being distributed as reported in the average monthly 
 61.28  caseload reports required under sections 256.01, 256B.04 and 
 61.29  256D.04, and certified by the commissioner of human services; 
 61.30  and 
 61.31     (b) One-third shall be distributed on the basis of the 
 61.32  number of persons residing in the county as determined by the 
 61.33  most recent data of the state demographer; 
 61.34     (c) One-third shall be distributed on the basis of the 
 61.35  number of persons residing in the county who are 65 years old or 
 61.36  older as determined by the most recent data of the state 
 62.1   demographer. 
 62.2      Sec. 66.  Minnesota Statutes 1998, section 256E.06, 
 62.3   subdivision 3, is amended to read: 
 62.4      Subd. 3.  [PAYMENTS TO COUNTIES.] The commissioner of human 
 62.5   services shall make payments for community social services to 
 62.6   each county in four installments per year.  The commissioner of 
 62.7   human services may certify the payments for the first three 
 62.8   months of a calendar year based on estimates of the unduplicated 
 62.9   number of persons receiving AFDC, Minnesota family investment 
 62.10  program-statewide program, general assistance and medical 
 62.11  assistance for the prior year.  The following three payments 
 62.12  shall be adjusted to reflect the actual unduplicated number of 
 62.13  persons who received AFDC, Minnesota family investment 
 62.14  program-statewide program, general assistance and medical 
 62.15  assistance as required by subdivision 1.  The commissioner shall 
 62.16  ensure that the pertinent payment of the allotment for that 
 62.17  quarter is made to each county on the first working day after 
 62.18  the end of each quarter of the calendar year, except for the 
 62.19  last quarter of the calendar year.  The commissioner shall 
 62.20  ensure that each county receives its payment of the allotment 
 62.21  for that quarter no later than the last working day of that 
 62.22  quarter.  This scheduling of payments does not require 
 62.23  compliance with subdivision 10.  
 62.24     Sec. 67.  Minnesota Statutes 1998, section 256E.07, 
 62.25  subdivision 1, is amended to read: 
 62.26     Subdivision 1.  [FORMULA.] In federal fiscal year 1985 and 
 62.27  subsequent years, money for social services that is received 
 62.28  from the federal government to reimburse counties for social 
 62.29  service expenditures according to title XX of the Social 
 62.30  Security Act shall be allocated to each county according to the 
 62.31  following formula:  
 62.32     (a) Two-thirds shall be allocated on the basis of the 
 62.33  annual average number of unduplicated active monthly caseloads 
 62.34  in each county in the following programs:  aid to families with 
 62.35  dependent children, Minnesota family investment 
 62.36  program-statewide program, medical assistance, general 
 63.1   assistance, supplementary security income, and Minnesota 
 63.2   supplemental aid.  
 63.3      (b) One-third shall be allocated on the basis of the number 
 63.4   of persons residing in the county as determined by the most 
 63.5   recent estimate of the state demographer.  
 63.6      (c) The commissioner shall allocate to the counties 
 63.7   according to this section the total money received from the 
 63.8   federal government for social services according to title XX of 
 63.9   the Social Security Act, except that portion of the state's 
 63.10  allocation which the legislature authorizes for administrative 
 63.11  purposes and for migrant day care. 
 63.12     Sec. 68.  Minnesota Statutes 1998, section 256E.08, 
 63.13  subdivision 3, is amended to read: 
 63.14     Subd. 3.  [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 
 63.15  The county board may designate itself, a human services board, 
 63.16  or a local social services agency to perform the functions of 
 63.17  local social services agencies as prescribed in chapter 393 and 
 63.18  assigned to county agencies in other law which pertains to the 
 63.19  administration of income maintenance programs known as aid to 
 63.20  families with dependent children, Minnesota family investment 
 63.21  program-statewide program, general assistance, Minnesota 
 63.22  supplemental aid, medical assistance, general assistance medical 
 63.23  care, and emergency assistance.  
 63.24     Sec. 69.  Minnesota Statutes 1998, section 256F.05, 
 63.25  subdivision 3, is amended to read: 
 63.26     Subd. 3.  [GRANT FORMULA.] (a) The amount of money 
 63.27  allocated to counties under subdivision 2 shall first be 
 63.28  allocated in amounts equal to each county's guaranteed floor 
 63.29  according to paragraph (b), and second, any remaining available 
 63.30  funds allocated as follows: 
 63.31     (1) 50 percent of the funds shall be allocated based on the 
 63.32  population of the county under age 19 years as compared to the 
 63.33  state as a whole as determined by the most recent data from the 
 63.34  state demographer's office; 
 63.35     (2) 20 percent of funds shall be allocated based on the 
 63.36  county's percentage share of the unduplicated number of families 
 64.1   who received family preservation services under section 256F.03, 
 64.2   subdivision 5, paragraphs (a), (b), (c), and (e), in the most 
 64.3   recent calendar year available as determined by the 
 64.4   commissioner; 
 64.5      (3) ten percent of the funds shall be allocated based on 
 64.6   the county's percentage share of the unduplicated number of 
 64.7   children in substitute care in the most recent calendar year 
 64.8   available as determined by the commissioner; 
 64.9      (4) ten percent of the funds shall be allocated based on 
 64.10  the county's percentage share of the number of determined 
 64.11  maltreatment reports in the most recent calendar year available 
 64.12  as determined by the commissioner; 
 64.13     (5) five percent of the funds shall be allocated based on 
 64.14  the county's percentage share of the number of American Indian 
 64.15  children under age 18 residing in the county in the most recent 
 64.16  calendar year as determined by the commissioner; and 
 64.17     (6) five percent of the funds shall be allocated based on 
 64.18  the county's percentage share of the number of children of color 
 64.19  receiving children's case management services as defined by the 
 64.20  commissioner based on the most recent data as determined by the 
 64.21  commissioner. 
 64.22     (b) Each county's grant guaranteed floor shall be 
 64.23  calculated as follows: 
 64.24     (1) 90 percent of the county's allocation received in the 
 64.25  preceding calendar year or $25,000, whichever is greater; and 
 64.26     (2) when the amounts of funds available for allocation is 
 64.27  less than the amount available in the previous year, each 
 64.28  county's previous year allocation shall be reduced in proportion 
 64.29  to the reduction in the statewide funding, for the purpose of 
 64.30  establishing the guaranteed floor. 
 64.31     (c) The commissioner shall regularly review the use of 
 64.32  family preservation fund allocations by county.  The 
 64.33  commissioner may reallocate unexpended or unencumbered money at 
 64.34  any time among those counties that have expended or are 
 64.35  projected to expend their full allocation. 
 64.36     (d) For the period of July 1, 1997, to December 31, 1998, 
 65.1   only, each county shall receive an 18-month allocation.  For the 
 65.2   purposes of determining the guaranteed floor for this 18-month 
 65.3   allocation, the allocation received in the preceding calendar 
 65.4   year shall be determined by the commissioner based on the 
 65.5   funding previously distributed separately under sections 
 65.6   256.8711 and 256F.04. 
 65.7      Sec. 70.  Minnesota Statutes 1998, section 256F.05, 
 65.8   subdivision 8, is amended to read: 
 65.9      Subd. 8.  [USES OF FAMILY PRESERVATION FUND GRANTS.] (a) A 
 65.10  county which has not demonstrated that year that its family 
 65.11  preservation core services are developed as provided in 
 65.12  subdivision 1a, must use its family preservation fund grant 
 65.13  exclusively for family preservation services defined in section 
 65.14  256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 
 65.15     (b) A county which has demonstrated that year that its 
 65.16  family preservation core services are developed becomes eligible 
 65.17  either to continue using its family preservation fund grant as 
 65.18  provided in paragraph (a), or to exercise the expanded service 
 65.19  option under paragraph (c). 
 65.20     (c) The expanded service option permits an eligible county 
 65.21  to use its family preservation fund grant for child welfare 
 65.22  preventive services.  For purposes of this section, child 
 65.23  welfare preventive services are those services directed toward a 
 65.24  specific child or family that further the goals of section 
 65.25  256F.01 and include assessments, family preservation services, 
 65.26  service coordination, community-based treatment, crisis nursery 
 65.27  services when the parents retain custody and there is no 
 65.28  voluntary placement agreement with a child-placing agency, 
 65.29  respite care except when it is provided under a medical 
 65.30  assistance waiver, home-based services, and other related 
 65.31  services.  For purposes of this section, child welfare 
 65.32  preventive services shall not include shelter care or other 
 65.33  placement services under the authority of the court or public 
 65.34  agency to address an emergency.  To exercise this option, an 
 65.35  eligible county must notify the commissioner in writing of its 
 65.36  intention to do so no later than 30 days into the quarter during 
 66.1   which it intends to begin or in its county plan, as provided in 
 66.2   section 256F.04, subdivision 2.  Effective with the first day of 
 66.3   that quarter, the county must maintain its base level of 
 66.4   expenditures for child welfare preventive services and use the 
 66.5   family preservation fund to expand them.  The base level of 
 66.6   expenditures for a county shall be that established under 
 66.7   section 256F.10, subdivision 7.  For counties which have no such 
 66.8   base established, a comparable base shall be established with 
 66.9   the base year being the calendar year ending at least two 
 66.10  calendar quarters before the first calendar quarter in which the 
 66.11  county exercises its expanded service option.  The commissioner 
 66.12  shall, at the request of the counties, reduce, suspend, or 
 66.13  eliminate either or both of a county's obligations to continue 
 66.14  the base level of expenditures and to expand child welfare 
 66.15  preventive services under extraordinary circumstances.  
 66.16     (d) Notwithstanding paragraph (a), a county that is 
 66.17  participating in the child protection assessments or 
 66.18  investigations community collaboration pilot program under 
 66.19  section 626.5560 626.556, or in the concurrent permanency 
 66.20  planning pilot program under section 257.0711, may use its 
 66.21  family preservation fund grant for those programs. 
 66.22     Sec. 71.  Minnesota Statutes 1998, section 256F.10, 
 66.23  subdivision 6, is amended to read: 
 66.24     Subd. 6.  [DISTRIBUTION OF NEW FEDERAL REVENUE.] (a) Except 
 66.25  for portion set aside in paragraph (b), the federal funds earned 
 66.26  under this section and section 256B.094 by counties shall be 
 66.27  paid to each county based on its earnings, and must be used by 
 66.28  each county to expand preventive child welfare services. 
 66.29  If a county chooses to be a provider of child welfare targeted 
 66.30  case management and if that county also joins a local children's 
 66.31  mental health collaborative as authorized by the 1993 
 66.32  legislature, then the federal reimbursement received by the 
 66.33  county for providing child welfare targeted case management 
 66.34  services to children served by the local collaborative shall be 
 66.35  transferred by the county to the integrated fund.  The federal 
 66.36  reimbursement transferred to the integrated fund by the county 
 67.1   must not be used for residential care other than respite care 
 67.2   described under subdivision 7, paragraph (d). 
 67.3      (b) The commissioner shall set aside a portion of the 
 67.4   federal funds earned under this section to repay the special 
 67.5   revenue maximization account under section 256.01, subdivision 
 67.6   2, clause (15).  The repayment is limited to: 
 67.7      (1) the costs of developing and implementing this section 
 67.8   and sections 256.8711 and 256B.094 and 256J.48; 
 67.9      (2) programming the information systems; and 
 67.10     (3) the lost federal revenue for the central office claim 
 67.11  directly caused by the implementation of these sections. 
 67.12     Any unexpended funds from the set aside under this 
 67.13  paragraph shall be distributed to counties according to 
 67.14  paragraph (a). 
 67.15     Sec. 72.  Minnesota Statutes 1998, section 256F.13, 
 67.16  subdivision 3, is amended to read: 
 67.17     Subd. 3.  [WAIVER OF RULE REQUIREMENTS.] (a)  [REQUESTING 
 67.18  WAIVERS OF STATE OR FEDERAL RULES.] Local family services 
 67.19  collaboratives, including collaboratives in Becker, Cass, and 
 67.20  Ramsey counties, shall be encouraged to seek waivers of state or 
 67.21  federal rules, as necessary to carry out the purposes of this 
 67.22  section.  For purposes of this section, "family services 
 67.23  collaborative" has the meaning given it in section 121.8355, 
 67.24  subdivision 1a. 
 67.25     (b)  [WAIVER OF STATE RULES.] In order to receive a waiver 
 67.26  of the requirements of any state rule, the collaborative shall 
 67.27  submit a request for a variance to the appropriate 
 67.28  commissioner.  The request shall contain assurances that the 
 67.29  waiver will not affect client entitlements to services, will not 
 67.30  abridge any rights guaranteed to the client by state or federal 
 67.31  law, and will not jeopardize the health or safety of the 
 67.32  client.  The commissioner shall grant or deny all waiver 
 67.33  requests within 30 days of receiving those requests, by notice 
 67.34  to the collaborative and published notice in the State Register. 
 67.35     (c)  [WAIVER OF FEDERAL RULES.] A local collaborative 
 67.36  seeking a waiver from a federal rule shall submit a request, in 
 68.1   writing, to the appropriate commissioner who shall submit the 
 68.2   waiver request to the relevant policy committees of the 
 68.3   legislature.  If the legislative committees approve the request, 
 68.4   they shall direct the appropriate state agency to make a 
 68.5   reasonable effort to negotiate a waiver of the federal rule.  If 
 68.6   the legislative committees deny the request for a waiver, they 
 68.7   shall jointly notify the local collaborative of the reason for 
 68.8   denying the waiver.  If a waiver request is approved for 
 68.9   submission to federal authorities, the commissioner shall submit 
 68.10  all necessary materials to the appropriate federal authorities.  
 68.11  The commissioner shall notify the collaborative and the 
 68.12  legislative committees of the outcome of the federal waiver 
 68.13  request.  In every instance in which a federal waiver is 
 68.14  granted, the commissioner shall publish notice of receipt of the 
 68.15  waiver in the State Register. 
 68.16     Sec. 73.  Minnesota Statutes 1998, section 256G.01, 
 68.17  subdivision 4, is amended to read: 
 68.18     Subd. 4.  [ADDITIONAL COVERAGE.] The provisions in sections 
 68.19  256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 
 68.20  subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 
 68.21  subdivisions 1 to 3, apply to the following programs:  the aid 
 68.22  to families with dependent children program formerly codified in 
 68.23  sections 256.72 to 256.87, Minnesota family investment 
 68.24  program-statewide program; medical assistance; general 
 68.25  assistance; the family general assistance program formerly 
 68.26  codified in sections 256D.01 to 256D.23; general assistance 
 68.27  medical care; and Minnesota supplemental aid. 
 68.28     Sec. 74.  Minnesota Statutes 1998, section 256G.03, 
 68.29  subdivision 2, is amended to read: 
 68.30     Subd. 2.  [NO DURATIONAL TEST.] Except as otherwise 
 68.31  provided in sections 256.73, subdivisions 1 and 1b 256J.75; 
 68.32  256B.056, subdivision 1; 256D.02, subdivision 12a, and 256J.12 
 68.33  for purposes of this chapter, no waiting period is required 
 68.34  before securing county or state residence.  A person cannot, 
 68.35  however, gain residence while physically present in an excluded 
 68.36  time facility unless otherwise specified in this chapter or in a 
 69.1   federal regulation controlling a federally funded human service 
 69.2   program.  Interstate migrants who enter a shelter for battered 
 69.3   women directly from another state can gain residency while in 
 69.4   the facility provided the person can provide documentation that 
 69.5   the person is a victim of domestic abuse as defined in section 
 69.6   256J.49, subdivision 2, and the county determines that the 
 69.7   placement is appropriate; and the commissioner of human services 
 69.8   is authorized to make per diem payments under section 256D.05, 
 69.9   subdivision 3, on behalf of such individuals. 
 69.10     Sec. 75.  Minnesota Statutes 1998, section 256J.01, 
 69.11  subdivision 1, is amended to read: 
 69.12     Subdivision 1.  [IMPLEMENTATION OF MINNESOTA FAMILY 
 69.13  INVESTMENT PROGRAM-STATEWIDE (MFIP-S) PROGRAM (MFIP).] This 
 69.14  chapter and chapter 256K may be cited as the Minnesota family 
 69.15  investment program-statewide (MFIP-S) program (MFIP).  MFIP-S 
 69.16  MFIP is the statewide implementation of components of the 
 69.17  Minnesota family investment plan (MFIP) authorized under and 
 69.18  formerly codified in section 256.031 and Minnesota family 
 69.19  investment plan-Ramsey county (MFIP-R) formerly codified in 
 69.20  section 256.047. 
 69.21     Sec. 76.  Minnesota Statutes 1998, section 256J.11, 
 69.22  subdivision 1, is amended to read: 
 69.23     Subdivision 1.  [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To 
 69.24  be eligible for AFDC or MFIP-S MFIP, whichever is in effect, a 
 69.25  member of the assistance unit must be a citizen of the United 
 69.26  States, a qualified noncitizen as defined in section 256J.08, or 
 69.27  a noncitizen who is otherwise residing lawfully in the United 
 69.28  States. 
 69.29     (b) A qualified noncitizen who entered the United States on 
 69.30  or after August 22, 1996, is eligible for MFIP-S MFIP.  However, 
 69.31  TANF dollars cannot be used to fund the MFIP-S MFIP benefits for 
 69.32  an individual under this paragraph for a period of five years 
 69.33  after the date of entry unless the qualified noncitizen meets 
 69.34  one of the following criteria: 
 69.35     (1) was admitted to the United States as a refugee under 
 69.36  United States Code, title 8, section 1157; 
 70.1      (2) was granted asylum under United States Code, title 8, 
 70.2   section 1158; 
 70.3      (3) was granted withholding of deportation under the United 
 70.4   States Code, title 8, section 1253(h); 
 70.5      (4) is a veteran of the United States Armed Forces with an 
 70.6   honorable discharge for a reason other than noncitizen status, 
 70.7   or is a spouse or unmarried minor dependent child of the same; 
 70.8   or 
 70.9      (5) is an individual on active duty in the United States 
 70.10  Armed Forces, other than for training, or is a spouse or 
 70.11  unmarried minor dependent child of the same. 
 70.12     (c) A person who is not a qualified noncitizen but who is 
 70.13  otherwise residing lawfully in the United States is eligible for 
 70.14  MFIP-S MFIP.  However, TANF dollars cannot be used to fund the 
 70.15  MFIP-S MFIP benefits for an individual under this paragraph. 
 70.16     (d) For purposes of this subdivision, a nonimmigrant in one 
 70.17  or more of the classes listed in United States Code, title 8, 
 70.18  section 1101(a)(15), or an undocumented immigrant who resides in 
 70.19  the United States without the approval or acquiescence of the 
 70.20  Immigration and Naturalization Service, is not eligible for 
 70.21  MFIP-S. 
 70.22     Sec. 77.  Minnesota Statutes 1998, section 256J.11, 
 70.23  subdivision 2, is amended to read: 
 70.24     Subd. 2.  [NONCITIZENS; FOOD PORTION.] (a) For the period 
 70.25  September 1, 1997, to October 31, 1997, noncitizens who do not 
 70.26  meet one of the exemptions in section 412 of the Personal 
 70.27  Responsibility and Work Opportunity Reconciliation Act of 1996, 
 70.28  but were residing in this state as of July 1, 1997, are eligible 
 70.29  for the 6/10 of the average value of food stamps for the same 
 70.30  family size and composition until MFIP-S is operative in the 
 70.31  noncitizen's county of financial responsibility and thereafter, 
 70.32  the 6/10 of the food portion of MFIP-S.  However, federal food 
 70.33  stamp dollars cannot be used to fund the food portion of MFIP-S 
 70.34  benefits for an individual under this subdivision. 
 70.35     (b) (a) For the period November 1, 1997, to June 30, 1999, 
 70.36  noncitizens who do not meet one of the exemptions in section 412 
 71.1   of the Personal Responsibility and Work Opportunity 
 71.2   Reconciliation Act of 1996, and are receiving cash assistance 
 71.3   under the AFDC, family general assistance, MFIP or MFIP-S 
 71.4   programs are eligible for the average value of food stamps for 
 71.5   the same family size and composition until MFIP-S MFIP is 
 71.6   operative in the noncitizen's county of financial responsibility 
 71.7   and thereafter, the food portion of MFIP-S MFIP.  However, 
 71.8   federal food stamp dollars cannot be used to fund the food 
 71.9   portion of MFIP-S MFIP benefits for an individual under this 
 71.10  subdivision.  The assistance provided under this subdivision, 
 71.11  which is designated as a supplement to replace lost benefits 
 71.12  under the federal food stamp program, must be disregarded as 
 71.13  income in all programs that do not count food stamps as income 
 71.14  where the commissioner has the authority to make the income 
 71.15  disregard determination for the program. 
 71.16     (c) (b) The commissioner shall submit a state plan to the 
 71.17  secretary of agriculture to allow the commissioner to purchase 
 71.18  federal Food Stamp Program benefits in an amount equal to the 
 71.19  MFIP-S MFIP food portion for each legal noncitizen receiving 
 71.20  MFIP-S MFIP assistance who is ineligible to participate in the 
 71.21  federal Food Stamp Program solely due to the provisions of 
 71.22  section 402 or 403 of Public Law Number 104-193, as authorized 
 71.23  by Title VII of the 1997 Emergency Supplemental Appropriations 
 71.24  Act, Public Law Number 105-18.  The commissioner shall enter 
 71.25  into a contract as necessary with the secretary to use the 
 71.26  existing federal Food Stamp Program benefits delivery system for 
 71.27  the purposes of administering the food portion of MFIP-S MFIP 
 71.28  under this subdivision. 
 71.29     Sec. 78.  Minnesota Statutes 1998, section 256J.12, 
 71.30  subdivision 1, is amended to read: 
 71.31     Subdivision 1.  [SIMPLE RESIDENCY.] To be eligible for AFDC 
 71.32  or MFIP-S MFIP, whichever is in effect, an assistance unit must 
 71.33  have established residency in this state which means the 
 71.34  assistance unit is present in the state and intends to remain 
 71.35  here.  A person who lives in this state and who entered this 
 71.36  state with a job commitment or to seek employment in this state, 
 72.1   whether or not that person is currently employed, meets the 
 72.2   criteria in this subdivision.  
 72.3      Sec. 79.  Minnesota Statutes 1998, section 256J.21, 
 72.4   subdivision 3, is amended to read: 
 72.5      Subd. 3.  [INITIAL INCOME TEST.] The county agency shall 
 72.6   determine initial eligibility by considering all earned and 
 72.7   unearned income that is not excluded under subdivision 2.  To be 
 72.8   eligible for MFIP-S MFIP, the assistance unit's countable income 
 72.9   minus the disregards in paragraphs (a) and (b) must be below the 
 72.10  transitional standard of assistance according to section 256J.24 
 72.11  for that size assistance unit. 
 72.12     (a) The initial eligibility determination must disregard 
 72.13  the following items: 
 72.14     (1) the employment disregard is 18 percent of the gross 
 72.15  earned income whether or not the member is working full time or 
 72.16  part time; 
 72.17     (2) dependent care costs must be deducted from gross earned 
 72.18  income for the actual amount paid for dependent care up to a 
 72.19  maximum of $200 per month for each child less than two years of 
 72.20  age, and $175 per month for each child two years of age and 
 72.21  older under this chapter and chapter 119B; 
 72.22     (3) all payments made according to a court order for 
 72.23  spousal support or the support of children not living in the 
 72.24  assistance unit's household shall be disregarded from the income 
 72.25  of the person with the legal obligation to pay support, provided 
 72.26  that, if there has been a change in the financial circumstances 
 72.27  of the person with the legal obligation to pay support since the 
 72.28  support order was entered, the person with the legal obligation 
 72.29  to pay support has petitioned for a modification of the support 
 72.30  order; and 
 72.31     (4) an allocation for the unmet need of an ineligible 
 72.32  spouse or an ineligible child under the age of 21 for whom the 
 72.33  caregiver is financially responsible and who lives with the 
 72.34  caregiver according to section 256J.36. 
 72.35     (b) Notwithstanding paragraph (a), when determining initial 
 72.36  eligibility for applicant units when at least one member has 
 73.1   received AFDC, family general assistance, MFIP, MFIP-R, or work 
 73.2   first, or MFIP-S in this state within four months of the most 
 73.3   recent application for MFIP-S MFIP, the employment disregard for 
 73.4   all unit members is 36 percent of the gross earned income. 
 73.5      After initial eligibility is established, the assistance 
 73.6   payment calculation is based on the monthly income test. 
 73.7      Sec. 80.  Minnesota Statutes 1998, section 256J.26, 
 73.8   subdivision 1, is amended to read: 
 73.9      Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) 
 73.10  Applicants or participants who have been convicted of a drug 
 73.11  offense after July 1, 1997, may, if otherwise eligible, receive 
 73.12  AFDC or MFIP-S MFIP benefits subject to the following conditions:
 73.13     (1) Benefits for the entire assistance unit must be paid in 
 73.14  vendor form for shelter and utilities during any time the 
 73.15  applicant is part of the assistance unit. 
 73.16     (2) The convicted applicant or participant shall be subject 
 73.17  to random drug testing as a condition of continued eligibility 
 73.18  and following any positive test for an illegal controlled 
 73.19  substance is subject to the following sanctions: 
 73.20     (i) for failing a drug test the first time, the 
 73.21  participant's grant shall be reduced by ten percent of the 
 73.22  MFIP-S MFIP transitional standard, the shared household 
 73.23  standard, or the interstate transitional standard, whichever is 
 73.24  applicable prior to making vendor payments for shelter and 
 73.25  utility costs; or 
 73.26     (ii) for failing a drug test two or more times, the 
 73.27  residual amount of the participant's grant after making vendor 
 73.28  payments for shelter and utility costs, if any, must be reduced 
 73.29  by an amount equal to 30 percent of the MFIP-S MFIP transitional 
 73.30  standard, the shared household standard, or the interstate 
 73.31  transitional standard, whichever is applicable. 
 73.32     (b) Applicants or participants who have been convicted of a 
 73.33  drug offense after July 1, 1997, may, if otherwise eligible, 
 73.34  receive food stamps if the convicted applicant or participant is 
 73.35  subject to random drug testing as a condition of continued 
 73.36  eligibility.  Following a positive test for an illegal 
 74.1   controlled substance, the applicant is subject to the following 
 74.2   sanctions: 
 74.3      (1) for failing a drug test the first time, food stamps 
 74.4   shall be reduced by ten percent of the applicable food stamp 
 74.5   allotment; and 
 74.6      (2) for failing a drug test two or more times, food stamps 
 74.7   shall be reduced by an amount equal to 30 percent of the 
 74.8   applicable food stamp allotment.  
 74.9      (c) For the purposes of this subdivision, "drug offense" 
 74.10  means a conviction that occurred after July 1, 1997, of sections 
 74.11  152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
 74.12  means a conviction in another jurisdiction of the possession, 
 74.13  use, or distribution of a controlled substance, or conspiracy to 
 74.14  commit any of these offenses, if the offense occurred after July 
 74.15  1, 1997, and the conviction is a felony offense in that 
 74.16  jurisdiction, or in the case of New Jersey, a high misdemeanor. 
 74.17     Sec. 81.  Minnesota Statutes 1998, section 256J.26, 
 74.18  subdivision 2, is amended to read: 
 74.19     Subd. 2.  [PAROLE VIOLATORS.] An individual violating a 
 74.20  condition of probation or parole or supervised release imposed 
 74.21  under federal law or the law of any state is disqualified from 
 74.22  receiving AFDC or MFIP-S MFIP. 
 74.23     Sec. 82.  Minnesota Statutes 1998, section 256J.26, 
 74.24  subdivision 3, is amended to read: 
 74.25     Subd. 3.  [FLEEING FELONS.] An individual who is fleeing to 
 74.26  avoid prosecution, or custody, or confinement after conviction 
 74.27  for a crime that is a felony under the laws of the jurisdiction 
 74.28  from which the individual flees, or in the case of New Jersey, 
 74.29  is a high misdemeanor, is disqualified from receiving AFDC or 
 74.30  MFIP-S MFIP. 
 74.31     Sec. 83.  Minnesota Statutes 1998, section 256J.26, 
 74.32  subdivision 4, is amended to read: 
 74.33     Subd. 4.  [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 
 74.34  FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 
 74.35  individual who is convicted in federal or state court of having 
 74.36  made a fraudulent statement or representation with respect to 
 75.1   the place of residence of the individual in order to receive 
 75.2   assistance simultaneously from two or more states is 
 75.3   disqualified from receiving AFDC or MFIP-S MFIP for ten years 
 75.4   beginning on the date of the conviction. 
 75.5      Sec. 84.  Minnesota Statutes 1998, section 256J.42, 
 75.6   subdivision 1, is amended to read: 
 75.7      Subdivision 1.  [TIME LIMIT.] (a) Except for the exemptions 
 75.8   in this section and in section 256J.11, subdivision 2, an 
 75.9   assistance unit in which any adult caregiver has received 60 
 75.10  months of cash assistance funded in whole or in part by the TANF 
 75.11  block grant in this or any other state or United States 
 75.12  territory, MFIP-S MFIP, the AFDC program formerly codified in 
 75.13  sections 256.72 to 256.87, or the family general assistance 
 75.14  program formerly codified in sections 256D.01 to 256D.23, funded 
 75.15  in whole or in part by state appropriations, is ineligible to 
 75.16  receive MFIP-S MFIP.  Any cash assistance funded with TANF 
 75.17  dollars in this or any other state or United States territory, 
 75.18  or MFIP-S MFIP assistance funded in whole or in part by state 
 75.19  appropriations, that was received by the unit on or after the 
 75.20  date TANF was implemented, including any assistance received in 
 75.21  states or United States territories of prior residence, counts 
 75.22  toward the 60-month limitation.  The 60-month limit applies to a 
 75.23  minor who is the head of a household or who is married to the 
 75.24  head of a household except under subdivision 5.  The 60-month 
 75.25  time period does not need to be consecutive months for this 
 75.26  provision to apply.  
 75.27     (b) Months before July 1998 in which individuals receive 
 75.28  assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R 
 75.29  comparison group family under formerly codified in sections 
 75.30  256.031 to 256.0361 or sections 256.047 to 256.048 are not 
 75.31  included in the 60-month time limit. 
 75.32     Sec. 85.  Minnesota Statutes 1998, section 256J.42, 
 75.33  subdivision 5, is amended to read: 
 75.34     Subd. 5.  [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 
 75.35  assistance received by an assistance unit does not count toward 
 75.36  the 60-month limit on assistance during a month in which the 
 76.1   caregiver is in the category in section 256J.56, clause (1). The 
 76.2   exemption applies for the period of time the caregiver belongs 
 76.3   to one of the categories specified in this subdivision. 
 76.4      (b) From July 1, 1997, until the date MFIP-S MFIP is 
 76.5   operative in the caregiver's county of financial responsibility, 
 76.6   any cash assistance received by a caregiver who is complying 
 76.7   with sections Minnesota Statutes 1996, section 256.73, 
 76.8   subdivision 5a, and Minnesota Statutes 1998, section 256.736, if 
 76.9   applicable, does not count toward the 60-month limit on 
 76.10  assistance.  Thereafter, any cash assistance received by a minor 
 76.11  caregiver who is complying with the requirements of sections 
 76.12  256J.14 and 256J.54, if applicable, does not count towards the 
 76.13  60-month limit on assistance. 
 76.14     (c) Any diversionary assistance or emergency assistance 
 76.15  received does not count toward the 60-month limit. 
 76.16     (d) Any cash assistance received by an 18- or 19-year-old 
 76.17  caregiver who is complying with the requirements of section 
 76.18  256J.54 does not count toward the 60-month limit. 
 76.19     Sec. 86.  Minnesota Statutes 1998, section 256J.43, 
 76.20  subdivision 1, is amended to read: 
 76.21     Subdivision 1.  [PAYMENT.] (a) Effective July 1, 1997, the 
 76.22  amount of assistance paid to an eligible unit in which all 
 76.23  members have resided in this state for fewer than 12 consecutive 
 76.24  calendar months immediately preceding the date of application 
 76.25  shall be the lesser of either the interstate transitional 
 76.26  standard that would have been received by the assistance unit 
 76.27  from the state of immediate prior residence, or the amount 
 76.28  calculated in accordance with AFDC or MFIP-S MFIP standards.  
 76.29  The lesser payment must continue until the assistance unit meets 
 76.30  the 12-month requirement.  An assistance unit that has not 
 76.31  resided in Minnesota for 12 months from the date of application 
 76.32  is not exempt from the interstate payment provisions solely 
 76.33  because a child is born in Minnesota to a member of the 
 76.34  assistance unit.  Payment must be calculated by applying this 
 76.35  state's budgeting policies, and the unit's net income must be 
 76.36  deducted from the payment standard in the other state or in this 
 77.1   state, whichever is lower.  Payment shall be made in vendor form 
 77.2   for shelter and utilities, up to the limit of the grant amount, 
 77.3   and residual amounts, if any, shall be paid directly to the 
 77.4   assistance unit. 
 77.5      (b) During the first 12 months an assistance unit resides 
 77.6   in this state, the number of months that a unit is eligible to 
 77.7   receive AFDC or MFIP-S MFIP benefits is limited to the number of 
 77.8   months the assistance unit would have been eligible to receive 
 77.9   similar benefits in the state of immediate prior residence. 
 77.10     (c) This policy applies whether or not the assistance unit 
 77.11  received similar benefits while residing in the state of 
 77.12  previous residence. 
 77.13     (d) When an assistance unit moves to this state from 
 77.14  another state where the assistance unit has exhausted that 
 77.15  state's time limit for receiving benefits under that state's 
 77.16  TANF program, the unit will not be eligible to receive any AFDC 
 77.17  or MFIP-S MFIP benefits in this state for 12 months from the 
 77.18  date the assistance unit moves here. 
 77.19     (e) For the purposes of this section, "state of immediate 
 77.20  prior residence" means: 
 77.21     (1) the state in which the applicant declares the applicant 
 77.22  spent the most time in the 30 days prior to moving to this 
 77.23  state; or 
 77.24     (2) the state in which an applicant who is a migrant worker 
 77.25  maintains a home. 
 77.26     (f) The commissioner shall annually verify and update all 
 77.27  other states' payment standards as they are to be in effect in 
 77.28  July of each year. 
 77.29     (g) Applicants must provide verification of their state of 
 77.30  immediate prior residence, in the form of tax statements, a 
 77.31  driver's license, automobile registration, rent receipts, or 
 77.32  other forms of verification approved by the commissioner. 
 77.33     (h) Migrant workers, as defined in section 256J.08, and 
 77.34  their immediate families are exempt from this section, provided 
 77.35  the migrant worker provides verification that the migrant family 
 77.36  worked in this state within the last 12 months and earned at 
 78.1   least $1,000 in gross wages during the time the migrant worker 
 78.2   worked in this state. 
 78.3      Sec. 87.  Minnesota Statutes 1998, section 256J.50, 
 78.4   subdivision 3a, is amended to read: 
 78.5      Subd. 3a.  [TRANSITIONAL RULE; STRIDE, ACCESS.] (a) A 
 78.6   county agency that is not a participant in the MFIP or MFIP-R 
 78.7   field trials under formerly codified in sections 256.031 to 
 78.8   256.0361 shall not enroll a recipient into project STRIDE or 
 78.9   ACCESS after the date that MFIP-S MFIP is implemented in the 
 78.10  county.  
 78.11     (b) A caregiver who: 
 78.12     (i) was enrolled in project STRIDE or ACCESS continuously 
 78.13  since March 1, 1997; 
 78.14     (ii) is not a part of an MFIP or MFIP-R comparison group; 
 78.15  and 
 78.16     (iii) who is making satisfactory progress toward the 
 78.17  objectives specified in the caregiver's employment plan, may, 
 78.18  with the approval of the job counselor, continue with the 
 78.19  existing employment plan for up to two years after the caregiver 
 78.20  is enrolled in MFIP-S MFIP.  For purposes of the federal 
 78.21  participation standards, the activities in the caregiver's 
 78.22  employment plan are work activities, as that term is defined in 
 78.23  section 256J.49, subdivision 13. 
 78.24     (c) Notwithstanding contrary provisions of section 256.736, 
 78.25  the employability plan of a caregiver who is enrolled in project 
 78.26  STRIDE or ACCESS on or after July 1, 1997, must meet the 
 78.27  requirements of section 256J.53. 
 78.28     Sec. 88.  Minnesota Statutes 1998, section 256J.62, 
 78.29  subdivision 3, is amended to read: 
 78.30     Subd. 3.  [ALLOCATION OF BALANCE OF FUNDS.] If there remain 
 78.31  funds to allocate after establishing each county's guaranteed 
 78.32  floor under the provisions in subdivision 2, the balance 
 78.33  of funds shall be allocated as follows: 
 78.34     (1) for state fiscal year 1998, the remaining funds shall 
 78.35  be allocated based on the county's average number of AFDC and 
 78.36  family general assistance cases as compared to the statewide 
 79.1   total number of cases.  The average number of cases shall be 
 79.2   based on counts of AFDC and family general assistance cases as 
 79.3   of March 31, June 30, September 30, and December 31 of calendar 
 79.4   year 1996; 
 79.5      (2) for state fiscal year 1999, the remaining funds shall 
 79.6   be allocated based on the county's average number of AFDC, 
 79.7   family general assistance, MFIP-R, MFIP, and MFIP-S cases as 
 79.8   compared to the statewide total number of cases.  The average 
 79.9   number of cases shall be based on counts of AFDC, family general 
 79.10  assistance, MFIP-R, MFIP, and MFIP-S cases as of March 31, June 
 79.11  30, September 30, and December 31 of calendar year 1997; and 
 79.12     (3) for all subsequent state fiscal years, the remaining 
 79.13  funds shall be allocated based on the county's average number of 
 79.14  MFIP-S MFIP cases as compared to the statewide total number of 
 79.15  cases.  The average number of cases must be based on counts of 
 79.16  MFIP-S MFIP cases as of March 31, June 30, September 30, and 
 79.17  December 31 of the previous calendar year. 
 79.18     Sec. 89.  Minnesota Statutes 1998, section 256J.62, 
 79.19  subdivision 6, is amended to read: 
 79.20     Subd. 6.  [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 
 79.21  REFUGEES.] Funds appropriated to cover the costs of bilingual 
 79.22  employment and training services to refugees shall be allocated 
 79.23  to county agencies as follows: 
 79.24     (1) for state fiscal year 1998, the allocation shall be 
 79.25  based on the county's proportion of the total statewide number 
 79.26  of AFDC refugee cases in the previous fiscal year.  Counties 
 79.27  with less than one percent of the statewide number of AFDC, 
 79.28  MFIP-R, or MFIP refugee cases shall not receive an allocation of 
 79.29  bilingual employment and training services funds; and 
 79.30     (2) for each subsequent fiscal year, the allocation shall 
 79.31  be based on the county's proportion of the total statewide 
 79.32  number of MFIP-S MFIP refugee cases in the previous fiscal year. 
 79.33  Counties with less than one percent of the statewide number of 
 79.34  MFIP-S MFIP refugee cases shall not receive an allocation of 
 79.35  bilingual employment and training services funds. 
 79.36     Sec. 90.  Minnesota Statutes 1998, section 256J.62, 
 80.1   subdivision 7, is amended to read: 
 80.2      Subd. 7.  [WORK LITERACY LANGUAGE PROGRAMS.] Funds 
 80.3   appropriated to cover the costs of work literacy language 
 80.4   programs to non-English-speaking recipients shall be allocated 
 80.5   to county agencies as follows: 
 80.6      (1) for state fiscal year 1998, the allocation shall be 
 80.7   based on the county's proportion of the total statewide number 
 80.8   of AFDC or MFIP cases in the previous fiscal year where the lack 
 80.9   of English is a barrier to employment.  Counties with less than 
 80.10  two percent of the statewide number of AFDC or MFIP cases where 
 80.11  the lack of English is a barrier to employment shall not receive 
 80.12  an allocation of the work literacy language program funds; and 
 80.13     (2) for each subsequent fiscal year, the allocation shall 
 80.14  be based on the county's proportion of the total statewide 
 80.15  number of MFIP-S MFIP cases in the previous fiscal year where 
 80.16  the lack of English is a barrier to employment.  Counties with 
 80.17  less than two percent of the statewide number of MFIP-S MFIP 
 80.18  cases where the lack of English is a barrier to employment shall 
 80.19  not receive an allocation of the work literacy language program 
 80.20  funds. 
 80.21     Sec. 91.  Minnesota Statutes 1998, section 256J.76, 
 80.22  subdivision 1, is amended to read: 
 80.23     Subdivision 1.  [ADMINISTRATIVE FUNCTIONS.] Beginning July 
 80.24  1, 1997, counties will receive federal funds from the TANF block 
 80.25  grant for use in supporting eligibility, fraud control, and 
 80.26  other related administrative functions.  The federal funds 
 80.27  available for distribution, as determined by the commissioner, 
 80.28  must be an amount equal to federal administrative aid 
 80.29  distributed for fiscal year 1996 under titles IV-A and IV-F of 
 80.30  the Social Security Act in effect prior to October 1, 1996.  
 80.31  This amount must include the amount paid for local 
 80.32  collaboratives under sections 245.4932 and 256F.13, but must not 
 80.33  include administrative aid associated with child care under 
 80.34  section 119B.05, with emergency assistance intensive family 
 80.35  preservation services under section 256.8711 256F.05, with 
 80.36  administrative activities as part of the employment and training 
 81.1   services under section 256.736 this chapter or chapter 256K, or 
 81.2   with fraud prevention investigation activities under section 
 81.3   256.983. 
 81.4      Sec. 92.  Minnesota Statutes 1998, section 256K.01, 
 81.5   subdivision 2, is amended to read: 
 81.6      Subd. 2.  [DEFINITIONS.] As used in sections 256K.01 to 
 81.7   256K.09, the following words have the meanings given them. 
 81.8      (a) "Applicant" means an individual who has submitted a 
 81.9   request for assistance and has never received an AFDC grant as 
 81.10  formerly codified in sections 256.72 to 256.87, MFIP-S and MFIP 
 81.11  grant, or a family general assistance grant as formerly codified 
 81.12  in sections 256D.01 to 256D.23 through the MAXIS computer system 
 81.13  as a caregiver, or an applicant whose application under the 
 81.14  former AFDC program codified in sections 256.72 to 
 81.15  256.87, MFIP-S MFIP, or the former family general assistance 
 81.16  application program codified in sections 256D.01 to 256D.23 was 
 81.17  denied or benefits were terminated due to noncompliance with 
 81.18  work first program requirements. 
 81.19     (b) "Application date" means the date any Minnesota county 
 81.20  agency receives a signed and dated combined application form 
 81.21  Part I. 
 81.22     (c) "CAF" means a combined application form on which people 
 81.23  apply for multiple assistance programs, including:  cash 
 81.24  assistance, refugee cash assistance, Minnesota supplemental aid, 
 81.25  food stamps, medical assistance, general assistance medical 
 81.26  care, emergency assistance, emergency medical assistance, and 
 81.27  emergency general assistance medical care. 
 81.28     (d) "Caregiver" means a parent or eligible adult, including 
 81.29  a pregnant woman, who is part of the assistance unit that has 
 81.30  applied for or is receiving an AFDC, MFIP-S, or family general 
 81.31  assistance an MFIP grant.  In a two-parent family, both parents 
 81.32  are caregivers. 
 81.33     (e) "Child support" means a voluntary or court-ordered 
 81.34  payment by absent parents in an assistance unit. 
 81.35     (f) "Commissioner" means the commissioner of human services.
 81.36     (g) "Department" means the department of human services. 
 82.1      (h) "Employability development plan" or "EDP" means a plan 
 82.2   developed by the applicant, with advice from the employment 
 82.3   advisor, for the purposes of identifying an employment goal, 
 82.4   improving work skills through certification or education, 
 82.5   training or skills recertification, and which addresses barriers 
 82.6   to employment. 
 82.7      (i) "EDP status report form" means a program form on which 
 82.8   deferred participants indicate what has been achieved in the 
 82.9   participant's employability development plan and the types of 
 82.10  problems encountered. 
 82.11     (j) "Employment advisor" means a program staff member who 
 82.12  is qualified to assist the participant to develop a job search 
 82.13  or employability development plan, match the participant with 
 82.14  existing job openings, refer the participant to employers, and 
 82.15  has an extensive knowledge of employers in the area. 
 82.16     (k) "Financial specialist" means a program staff member who 
 82.17  is trained to explain the benefits offered under the program, 
 82.18  determine eligibility for different assistance programs, and 
 82.19  broker other resources from employers and the community. 
 82.20     (l) "Job network" means individuals that a person may 
 82.21  contact to learn more about particular companies, inquire about 
 82.22  job leads, or discuss occupational interests and expertise. 
 82.23     (m) "Job search allowance" means the amount of financial 
 82.24  assistance needed to support job search. 
 82.25     (n) "Job search plan" or "JSP" means the specific plan 
 82.26  developed by the applicant, with advice from the employment 
 82.27  advisor, to secure a job as soon as possible, and focus the 
 82.28  scope of the job search process and other activities.  
 82.29     (o) "JSP status report form" means a program form on which 
 82.30  participants indicate the number of submitted job applications, 
 82.31  job interviews held, jobs offered, other outcomes achieved, 
 82.32  problems encountered, and the total number of hours spent on job 
 82.33  search per week. 
 82.34     (p) "Participant" means a recipient who is required to 
 82.35  participate in the work first program. 
 82.36     (q) "Program" means the work first program. 
 83.1      (r) "Provider" means an employment and training agency 
 83.2   certified by the commissioner of economic security under section 
 83.3   268.871, subdivision 1. 
 83.4      (s) "Self-employment" means employment where people work 
 83.5   for themselves rather than an employer, are responsible for 
 83.6   their own work schedule, and do not have taxes or FICA withheld 
 83.7   by an employer. 
 83.8      (t) "Self-sufficiency agreement" means the agreement 
 83.9   between the county or its representative and the applicant that 
 83.10  describes the activities that the applicant must conduct and the 
 83.11  necessary services and aid to be furnished by the county to 
 83.12  enable the individual to meet the purpose of either the job 
 83.13  search plan or employability development plan. 
 83.14     (u) "Subsidized job" means a job that is partly reimbursed 
 83.15  by the provider for cost of wages for participants in the 
 83.16  program. 
 83.17     Sec. 93.  Minnesota Statutes 1998, section 256K.01, 
 83.18  subdivision 3, is amended to read: 
 83.19     Subd. 3.  [ESTABLISHING WORK FIRST PROGRAM.] The 
 83.20  commissioners of human services and economic security may 
 83.21  develop and establish pilot projects which require applicants 
 83.22  for aid under AFDC, MFIP-S or family general assistance MFIP to 
 83.23  meet the requirements of the work first program.  The purpose of 
 83.24  the program is to: 
 83.25     (1) ensure that the participant is working as early as 
 83.26  possible; 
 83.27     (2) promote greater opportunity for economic self-support, 
 83.28  participation, and mobility in the work force; and 
 83.29     (3) minimize the risk for long-term welfare dependency. 
 83.30     Sec. 94.  Minnesota Statutes 1998, section 256K.01, 
 83.31  subdivision 8, is amended to read: 
 83.32     Subd. 8.  [DUTIES OF PARTICIPANT.] To be eligible for an 
 83.33  AFDC, MFIP-S or family general assistance MFIP benefit, a 
 83.34  participant shall cooperate with the county agency, the 
 83.35  provider, and the participant's employer in all aspects of the 
 83.36  program. 
 84.1      Sec. 95.  Minnesota Statutes 1998, section 256K.015, is 
 84.2   amended to read: 
 84.3      256K.015 [ELIGIBILITY FOR WORK FIRST.] 
 84.4      To be eligible for work first, an applicant must meet the 
 84.5   eligibility requirements of AFDC or MFIP-S, whichever is in 
 84.6   effect in the county, MFIP, to the extent that those 
 84.7   requirements are not inconsistent with this chapter. 
 84.8      Sec. 96.  Minnesota Statutes 1998, section 256K.02, is 
 84.9   amended to read: 
 84.10     256K.02 [PROGRAM PARTICIPANTS; PROGRAM EXPECTATIONS.] 
 84.11     All applicants selected for participation are expected to 
 84.12  meet the requirements under the work first program.  Payments 
 84.13  for rent and utilities up to the AFDC, MFIP-S, or family general 
 84.14  assistance program MFIP benefits to which the assistance unit is 
 84.15  entitled will be vendor paid for as many months as the applicant 
 84.16  is eligible or six months, whichever comes first.  The residual 
 84.17  amount after vendor payment, if any, will be paid to the 
 84.18  recipient, unless it is used as a wage subsidy under section 
 84.19  256K.04, subdivision 2. 
 84.20     Sec. 97.  Minnesota Statutes 1998, section 256K.03, 
 84.21  subdivision 1, is amended to read: 
 84.22     Subdivision 1.  [NOTIFICATION OF PROGRAM.] Except for the 
 84.23  provisions in this section, the provisions for the AFDC, MFIP-S, 
 84.24  and family general assistance MFIP application process shall be 
 84.25  followed.  Within two days after receipt of a completed combined 
 84.26  application form, the county agency must refer to the provider 
 84.27  the applicant who meets the conditions under section 256K.02, 
 84.28  and notify the applicant in writing of the program including the 
 84.29  following provisions: 
 84.30     (1) notification that, as part of the application process, 
 84.31  applicants are required to attend orientation, to be followed 
 84.32  immediately by a job search; 
 84.33     (2) the program provider, the date, time, and location of 
 84.34  the scheduled program orientation; 
 84.35     (3) the procedures for qualifying for and receiving 
 84.36  benefits under the program; 
 85.1      (4) the immediate availability of supportive services, 
 85.2   including, but not limited to, child care, transportation, 
 85.3   medical assistance, and other work-related aid; and 
 85.4      (5) the rights, responsibilities, and obligations of 
 85.5   participants in the program, including, but not limited to, the 
 85.6   grounds for exemptions and deferrals, the consequences for 
 85.7   refusing or failing to participate fully, and the appeal process.
 85.8      Sec. 98.  Minnesota Statutes 1998, section 256K.03, 
 85.9   subdivision 12, is amended to read: 
 85.10     Subd. 12.  [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 
 85.11  SERVICE JOB.] (a) If after the completion of the maximum eight 
 85.12  weeks of job search the participant has failed to secure a 
 85.13  nonsubsidized or a subsidized job for at least 32 hours per 
 85.14  week, or does not earn a net income from self-employment that is 
 85.15  equal to at least the AFDC, MFIP-S or family general assistance 
 85.16  MFIP monthly grant for the household size, whichever is 
 85.17  applicable, the participant is required to work in a temporary 
 85.18  public service job for up to 67 working days for (1) at least 32 
 85.19  hours per week, or (2) a period equivalent to the result of 
 85.20  dividing the monthly grant amount which the participant would 
 85.21  otherwise receive, by the federal hourly minimum wage, or 
 85.22  applicable hourly state minimum wage, or the hourly rate of pay 
 85.23  for individuals employed in the same occupation at the site, 
 85.24  whichever is highest.  If the result is more than 128 hours per 
 85.25  month, the participant's requirement to work in a temporary 
 85.26  public service job shall not be more than 32 hours per week. 
 85.27     (b) Within seven days from the date of application, the 
 85.28  participant who is deferred under subdivision 8, clause (1) or 
 85.29  (2), and is participating in an educational program on a 
 85.30  part-time basis must work in a temporary public service job as 
 85.31  required under subdivision 8, clause (2). 
 85.32     (c) The provider shall strive to match the profile of the 
 85.33  participant with the needs of the employers that are 
 85.34  participating in a temporary jobs program under section 256K.05. 
 85.35     Sec. 99.  Minnesota Statutes 1998, section 256K.04, 
 85.36  subdivision 2, is amended to read: 
 86.1      Subd. 2.  [JOB SUBSIDY.] The county may use all or part of 
 86.2   the AFDC, MFIP-S or family general assistance MFIP benefit as a 
 86.3   subsidy to employers for the purpose of providing work 
 86.4   experience or training to the participant who has completed the 
 86.5   job search plan, provided that: 
 86.6      (1) the job to be subsidized is permanent and full time, 
 86.7   and pays an hourly rate of at least $6 per hour; 
 86.8      (2) the employer agrees to retain the participant after 
 86.9   satisfactory completion of the work experience or training 
 86.10  period; and 
 86.11     (3) the participant has first tried to secure a 
 86.12  nonsubsidized job by following the job search plan.  
 86.13     The subsidy may be available for up to six months. 
 86.14     Sec. 100.  Minnesota Statutes 1998, section 256K.05, 
 86.15  subdivision 2, is amended to read: 
 86.16     Subd. 2.  [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE JOBS.] 
 86.17  The provider must assign the participant who (1) is within 
 86.18  completion of the required eight weeks of job search and has 
 86.19  failed to secure a nonsubsidized or a subsidized job for at 
 86.20  least 32 hours per week, or (2) does not earn a net income from 
 86.21  self-employment that is equal to at least the AFDC, MFIP-S or 
 86.22  family general assistance MFIP monthly grant for the household 
 86.23  size, whichever is applicable, to a temporary public service 
 86.24  job.  The assignment must be made seven days before the end of 
 86.25  the job search and be based on section 256K.03, subdivision 12.  
 86.26  The participant that is deferred under section 256K.03, 
 86.27  subdivision 8, will be assigned by the provider to a temporary 
 86.28  public service job within seven days after the application. 
 86.29     Sec. 101.  Minnesota Statutes 1998, section 256K.06, is 
 86.30  amended to read: 
 86.31     256K.06 [TRANSITIONAL BENEFITS TO SUPPORT WORK; RENT AND 
 86.32  UTILITIES VENDOR PAYMENT.] 
 86.33     Payments for rent and utilities up to the amount of AFDC, 
 86.34  MFIP-S, or family general assistance benefits to which the 
 86.35  assistance unit is entitled shall be provided in the form of 
 86.36  vendor payments for as many months as the applicant is eligible 
 87.1   or six months, whichever comes first.  The residual amount after 
 87.2   vendor payment, if any, will be paid to the AFDC, MFIP-S, or 
 87.3   family general assistance MFIP recipient, unless it is used as a 
 87.4   wage subsidy under section 256K.04, subdivision 2.  This 
 87.5   provision shall apply to all applicants including those meeting 
 87.6   the exemption categories under section 256K.03, subdivision 5, 
 87.7   or deferral categories under section 256K.03, subdivision 8.  To 
 87.8   the extent needed, a job search allowance shall be provided for 
 87.9   up to eight weeks to cover expenses related to the job search.  
 87.10  Before the job search allowance is issued, it must be approved 
 87.11  by the employment advisor and financial specialist, and clearly 
 87.12  described in the job search plan. 
 87.13     Sec. 102.  Minnesota Statutes 1998, section 256K.07, is 
 87.14  amended to read: 
 87.15     256K.07 [ELIGIBILITY FOR FOOD STAMPS, MEDICAL ASSISTANCE, 
 87.16  AND CHILD CARE.] 
 87.17     The participant shall be treated as an AFDC, MFIP-S, or 
 87.18  family general assistance MFIP recipient, whichever is 
 87.19  applicable, for food stamps, medical assistance, and child care 
 87.20  eligibility purposes.  The participant who leaves the program as 
 87.21  a result of increased earnings from employment shall be eligible 
 87.22  for transitional medical assistance and child care without 
 87.23  regard to AFDC, MFIP-S, or family general assistance MFIP 
 87.24  receipt in three of the six months preceding ineligibility. 
 87.25     Sec. 103.  Minnesota Statutes 1998, section 256K.08, 
 87.26  subdivision 1, is amended to read: 
 87.27     Subdivision 1.  [GOOD CAUSE.] (a) For purposes of this 
 87.28  subdivision, "good cause" means absence due to temporary illness 
 87.29  or injury of the participant or a member of the participant's 
 87.30  family, the unavailability of appropriate child care or 
 87.31  unavailability of transportation needed to attend orientation or 
 87.32  conduct job search, or a nonmedical emergency as defined under 
 87.33  section 256K.05, subdivision 5. 
 87.34     (b) The applicant who is required, but fails, without good 
 87.35  cause, to participate in orientation, complete the job search 
 87.36  plan or employability development plan, and comply with the job 
 88.1   search requirements under section 256K.03, prior to being 
 88.2   eligible for AFDC, MFIP-S, or family general assistance MFIP 
 88.3   shall be denied benefits.  The applicant will not be eligible 
 88.4   for benefits in this state for at least six months. 
 88.5      (c) If, after receiving a written warning from the county, 
 88.6   the participant fails, without good cause, to conduct at least 
 88.7   32 hours of job search per week in any given two-week period, 
 88.8   the participant will be immediately required to work for at 
 88.9   least 16 hours per week in a temporary public service job.  The 
 88.10  required 32 hours per week of job search will be reduced to 16 
 88.11  hours. 
 88.12     (d) If the participant who is deferred under section 
 88.13  256K.03, subdivision 8, fails to comply with the activities 
 88.14  described in the employability development plan, the participant 
 88.15  will lose the deferment status, provided that the participant 
 88.16  has received at least two written warnings from the provider. 
 88.17     (e) If the participant refuses to work in a temporary 
 88.18  public service job, or is terminated from a temporary public 
 88.19  service job for failure to work, benefits to the assistance unit 
 88.20  shall be terminated and the participant shall not be eligible 
 88.21  for aid under the MFIP-S MFIP program for at least six months 
 88.22  from the date of refusal or termination.  If the participant, 
 88.23  before completing at least four consecutive months of 
 88.24  employment, voluntarily quits or is terminated from a 
 88.25  nonsubsidized or a subsidized job, the participant shall 
 88.26  immediately be assigned to work in a temporary public service 
 88.27  job for at least 32 hours per week for up to 67 working days 
 88.28  unless the participant is hired or rehired into a nonsubsidized 
 88.29  or subsidized job. 
 88.30     Sec. 104.  Minnesota Statutes 1998, section 256L.11, 
 88.31  subdivision 4, is amended to read: 
 88.32     Subd. 4.  [DEFINITION OF MEDICAL ASSISTANCE RATE FOR 
 88.33  INPATIENT HOSPITAL SERVICES.] The "medical assistance rate," as 
 88.34  used in this section to apply to rates for providing inpatient 
 88.35  hospital services, means the rates established under sections 
 88.36  256.9685 to 256.9695 for providing inpatient hospital services 
 89.1   to medical assistance recipients who receive aid to families 
 89.2   with dependent children Minnesota family investment program 
 89.3   assistance. 
 89.4      Sec. 105.  Minnesota Statutes 1998, section 257.33, 
 89.5   subdivision 2, is amended to read: 
 89.6      Subd. 2.  [MINOR PARENTS AND THEIR CHILDREN.] (a) Every 
 89.7   birth to a minor shall be reported by the hospital where the 
 89.8   birth occurs, within three working days after the birth.  The 
 89.9   hospital shall make the report to the county social services 
 89.10  agency in the county in which the minor mother resides and shall 
 89.11  notify the minor that the report has been made.  The county 
 89.12  social services agency shall contact any minor mother who does 
 89.13  not have a case manager who resides in the county and determine 
 89.14  whether she has a plan for herself and her child.  The plan must 
 89.15  consider: 
 89.16     (1) the age of the minor parent; 
 89.17     (2) the involvement of the minor's parents or of other 
 89.18  adults who provide active, ongoing guidance, support, and 
 89.19  supervision; 
 89.20     (3) the involvement of the father of the minor's child, 
 89.21  including steps being taken to establish paternity, if 
 89.22  appropriate; 
 89.23     (4) a decision of the minor to keep and raise her child or 
 89.24  place the child for adoption; 
 89.25     (5) completion of high school or GED; 
 89.26     (6) current economic support of the minor parent and child 
 89.27  and plans for economic self-sufficiency; 
 89.28     (7) parenting skills of the minor parent; 
 89.29     (8) living arrangement of the minor parent and child; 
 89.30     (9) child care and transportation needed for education, 
 89.31  training, or employment; 
 89.32     (10) ongoing health care; and 
 89.33     (11) other services as needed to address personal or family 
 89.34  problems or to facilitate the personal growth and development 
 89.35  and economic self-sufficiency of the minor parent and child. 
 89.36     (b) If the minor parent does not have a plan for herself 
 90.1   and child, the county social services agency shall work with her 
 90.2   to develop a plan and shall provide case management services as 
 90.3   needed to assure the resources and services are available to 
 90.4   meet the plan requirements. 
 90.5      (c) If the minor parent refuses to plan for herself and her 
 90.6   child or fails, without good cause, to follow through on an 
 90.7   agreed upon plan, the county social services agency may file a 
 90.8   petition under section 260.131 seeking an order for protective 
 90.9   supervision under section 260.191, subdivision 1, clause (a), on 
 90.10  the grounds that the minor parent's child is dependent due to 
 90.11  the state of immaturity of the minor parent.  A contract with a 
 90.12  minor parent under section 256.736, subdivision 
 90.13  11(a)(4) 256J.54, subdivision 2, is an "agreed upon plan" for 
 90.14  purposes of this section. 
 90.15     Sec. 106.  Minnesota Statutes 1998, section 257.3573, 
 90.16  subdivision 2, is amended to read: 
 90.17     Subd. 2.  [INAPPROPRIATE EXPENDITURES.] Indian child 
 90.18  welfare grant money must not be used for: 
 90.19     (1) child day care necessary solely because of employment 
 90.20  or training for employment of a parent or other relative with 
 90.21  whom the child is living; 
 90.22     (2) foster care maintenance or difficulty of care payments; 
 90.23     (3) residential facility payments; 
 90.24     (4) adoption assistance payments; 
 90.25     (5) public assistance payments for aid to families with 
 90.26  dependent children, Minnesota family investment 
 90.27  program-statewide program assistance, supplemental aid, medical 
 90.28  assistance, general assistance, general assistance medical care, 
 90.29  or community health services authorized by sections 145A.01 to 
 90.30  145A.14; or 
 90.31     (6) administrative costs for income maintenance staff.  
 90.32     Sec. 107.  Minnesota Statutes 1998, section 257.60, is 
 90.33  amended to read: 
 90.34     257.60 [PARTIES.] 
 90.35     The child may be made a party to the action.  If the child 
 90.36  is a minor and is made a party, a general guardian or a guardian 
 91.1   ad litem shall be appointed by the court to represent the 
 91.2   child.  The child's mother or father may not represent the child 
 91.3   as guardian or otherwise.  The biological mother, each man 
 91.4   presumed to be the father under section 257.55, and each man 
 91.5   alleged to be the biological father, shall be made parties or, 
 91.6   if not subject to the jurisdiction of the court, shall be given 
 91.7   notice of the action in a manner prescribed by the court and 
 91.8   shall be given an opportunity to be heard.  The public agency 
 91.9   responsible for support enforcement is joined as a party in each 
 91.10  case in which rights are assigned under section 256.74, 
 91.11  subdivision 5 256.741, and in each case in which the public 
 91.12  agency is providing services pursuant to an application for 
 91.13  child support services.  A person who may bring an action under 
 91.14  section 257.57 may be made a party to the action.  The court may 
 91.15  align the parties.  The child shall be made a party whenever: 
 91.16     (1) the child is a minor and the case involves a compromise 
 91.17  under section 257.64, subdivision 1, or a lump sum payment under 
 91.18  section 257.66, subdivision 4, in which case the commissioner of 
 91.19  human services shall also be made a party subject to department 
 91.20  of human services rules relating to paternity suit settlements; 
 91.21  or 
 91.22     (2) the child is a minor and the action is to declare the 
 91.23  nonexistence of the father and child relationship; or 
 91.24     (3) an action to declare the existence of the father and 
 91.25  child relationship is brought by a man presumed to be the father 
 91.26  under section 257.55, or a man who alleges to be the father, and 
 91.27  the mother of the child denies the existence of the father and 
 91.28  child relationship. 
 91.29     Sec. 108.  Minnesota Statutes 1998, section 257.85, 
 91.30  subdivision 3, is amended to read: 
 91.31     Subd. 3.  [DEFINITIONS.] For purposes of this section, the 
 91.32  terms defined in this subdivision have the meanings given them. 
 91.33     (a) "AFDC or MFIP standard" means the monthly standard of 
 91.34  need used to calculate assistance under the AFDC program, the 
 91.35  transitional standard used to calculate assistance under the 
 91.36  MFIP-S program, or, if neither of those is applicable, the 
 92.1   analogous transitional standard used to calculate assistance 
 92.2   under the MFIP or MFIP-R programs. 
 92.3      (b) "Local agency" means the local social service agency 
 92.4   with legal custody of a child prior to the transfer of permanent 
 92.5   legal and physical custody to a relative. 
 92.6      (c) "Permanent legal and physical custody" means permanent 
 92.7   legal and physical custody ordered by a Minnesota juvenile court 
 92.8   under section 260.191, subdivision 3b. 
 92.9      (d) "Relative" means an individual, other than a parent, 
 92.10  who is related to a child by blood, marriage, or adoption. 
 92.11     (e) "Relative custodian" means a relative of a child for 
 92.12  whom the relative has permanent legal and physical custody.  
 92.13  When siblings, including half-siblings and step-siblings, are 
 92.14  placed together in the permanent legal and physical custody of a 
 92.15  relative of one of the siblings, the person receiving permanent 
 92.16  legal and physical custody of the siblings is considered a 
 92.17  relative custodian of all of the siblings for purposes of this 
 92.18  section. 
 92.19     (f) "Relative custody assistance agreement" means an 
 92.20  agreement entered into between a local agency and the relative 
 92.21  of a child who has been or will be awarded permanent legal and 
 92.22  physical custody of the child. 
 92.23     (g) "Relative custody assistance payment" means a monthly 
 92.24  cash grant made to a relative custodian pursuant to a relative 
 92.25  custody assistance agreement and in an amount calculated under 
 92.26  subdivision 7. 
 92.27     (h) "Remains in the physical custody of the relative 
 92.28  custodian" means that the relative custodian is providing 
 92.29  day-to-day care for the child and that the child lives with the 
 92.30  relative custodian; absence from the relative custodian's home 
 92.31  for a period of more than 120 days raises a presumption that the 
 92.32  child no longer remains in the physical custody of the relative 
 92.33  custodian. 
 92.34     Sec. 109.  Minnesota Statutes 1998, section 257.85, 
 92.35  subdivision 5, is amended to read: 
 92.36     Subd. 5.  [RELATIVE CUSTODY ASSISTANCE AGREEMENT.] (a) A 
 93.1   relative custody assistance agreement will not be effective, 
 93.2   unless it is signed by the local agency and the relative 
 93.3   custodian no later than 30 days after the date of the order 
 93.4   establishing permanent legal and physical custody with the 
 93.5   relative, except that a local agency may enter into a relative 
 93.6   custody assistance agreement with a relative custodian more than 
 93.7   30 days after the date of the order if it certifies that the 
 93.8   delay in entering the agreement was through no fault of the 
 93.9   relative custodian.  There must be a separate agreement for each 
 93.10  child for whom the relative custodian is receiving relative 
 93.11  custody assistance. 
 93.12     (b) Regardless of when the relative custody assistance 
 93.13  agreement is signed by the local agency and relative custodian, 
 93.14  the effective date of the agreement shall be the date of the 
 93.15  order establishing permanent legal and physical custody. 
 93.16     (c) If MFIP-S MFIP is not the applicable program for a 
 93.17  child at the time that a relative custody assistance agreement 
 93.18  is entered on behalf of the child, when MFIP-S MFIP becomes the 
 93.19  applicable program, if the relative custodian had been receiving 
 93.20  custody assistance payments calculated based upon a different 
 93.21  program, the amount of relative custody assistance payment under 
 93.22  subdivision 7 shall be recalculated under the MFIP-S MFIP 
 93.23  program. 
 93.24     (d) The relative custody assistance agreement shall be in a 
 93.25  form specified by the commissioner and shall include provisions 
 93.26  relating to the following: 
 93.27     (1) the responsibilities of all parties to the agreement; 
 93.28     (2) the payment terms, including the financial 
 93.29  circumstances of the relative custodian, the needs of the child, 
 93.30  the amount and calculation of the relative custody assistance 
 93.31  payments, and that the amount of the payments shall be 
 93.32  reevaluated annually; 
 93.33     (3) the effective date of the agreement, which shall also 
 93.34  be the anniversary date for the purpose of submitting the annual 
 93.35  affidavit under subdivision 8; 
 93.36     (4) that failure to submit the affidavit as required by 
 94.1   subdivision 8 will be grounds for terminating the agreement; 
 94.2      (5) the agreement's expected duration, which shall not 
 94.3   extend beyond the child's eighteenth birthday; 
 94.4      (6) any specific known circumstances that could cause the 
 94.5   agreement or payments to be modified, reduced, or terminated and 
 94.6   the relative custodian's appeal rights under subdivision 9; 
 94.7      (7) that the relative custodian must notify the local 
 94.8   agency within 30 days of any of the following: 
 94.9      (i) a change in the child's status; 
 94.10     (ii) a change in the relationship between the relative 
 94.11  custodian and the child; 
 94.12     (iii) a change in composition or level of income of the 
 94.13  relative custodian's family; 
 94.14     (iv) a change in eligibility or receipt of benefits under 
 94.15  AFDC, MFIP-S, MFIP or other assistance program; and 
 94.16     (v) any other change that could affect eligibility for or 
 94.17  amount of relative custody assistance; 
 94.18     (8) that failure to provide notice of a change as required 
 94.19  by clause (7) will be grounds for terminating the agreement; 
 94.20     (9) that the amount of relative custody assistance is 
 94.21  subject to the availability of state funds to reimburse the 
 94.22  local agency making the payments; 
 94.23     (10) that the relative custodian may choose to temporarily 
 94.24  stop receiving payments under the agreement at any time by 
 94.25  providing 30 days' notice to the local agency and may choose to 
 94.26  begin receiving payments again by providing the same notice but 
 94.27  any payments the relative custodian chooses not to receive are 
 94.28  forfeit; and 
 94.29     (11) that the local agency will continue to be responsible 
 94.30  for making relative custody assistance payments under the 
 94.31  agreement regardless of the relative custodian's place of 
 94.32  residence. 
 94.33     Sec. 110.  Minnesota Statutes 1998, section 257.85, 
 94.34  subdivision 7, is amended to read: 
 94.35     Subd. 7.  [AMOUNT OF RELATIVE CUSTODY ASSISTANCE PAYMENTS.] 
 94.36  (a) The amount of a monthly relative custody assistance payment 
 95.1   shall be determined according to the provisions of this 
 95.2   paragraph. 
 95.3      (1) The total maximum assistance rate is equal to the base 
 95.4   assistance rate plus, if applicable, the supplemental assistance 
 95.5   rate. 
 95.6      (i) The base assistance rate is equal to the maximum amount 
 95.7   that could be received as basic maintenance for a child of the 
 95.8   same age under the adoption assistance program. 
 95.9      (ii) The local agency shall determine whether the child has 
 95.10  physical, mental, emotional, or behavioral disabilities that 
 95.11  require care, supervision, or structure beyond that ordinarily 
 95.12  provided in a family setting to children of the same age such 
 95.13  that the child would be eligible for supplemental maintenance 
 95.14  payments under the adoption assistance program if an adoption 
 95.15  assistance agreement were entered on the child's behalf.  If the 
 95.16  local agency determines that the child has such a disability, 
 95.17  the supplemental assistance rate shall be the maximum amount of 
 95.18  monthly supplemental maintenance payment that could be received 
 95.19  on behalf of a child of the same age, disabilities, and 
 95.20  circumstances under the adoption assistance program. 
 95.21     (2) The net maximum assistance rate is equal to the total 
 95.22  maximum assistance rate from clause (1) less the following 
 95.23  offsets: 
 95.24     (i) if the child is or will be part of an assistance unit 
 95.25  receiving an AFDC, MFIP-S, or other MFIP grant, the portion of 
 95.26  the AFDC or MFIP standard relating to the child; 
 95.27     (ii) Supplemental Security Income payments received by or 
 95.28  on behalf of the child; 
 95.29     (iii) veteran's benefits received by or on behalf of the 
 95.30  child; and 
 95.31     (iv) any other income of the child, including child support 
 95.32  payments made on behalf of the child. 
 95.33     (3) The relative custody assistance payment to be made to 
 95.34  the relative custodian shall be a percentage of the net maximum 
 95.35  assistance rate calculated in clause (2) based upon the gross 
 95.36  income of the relative custodian's family, including the child 
 96.1   for whom the relative has permanent legal and physical custody.  
 96.2   In no case shall the amount of the relative custody assistance 
 96.3   payment exceed that which the child could qualify for under the 
 96.4   adoption assistance program if an adoption assistance agreement 
 96.5   were entered on the child's behalf.  The relative custody 
 96.6   assistance payment shall be calculated as follows: 
 96.7      (i) if the relative custodian's gross family income is less 
 96.8   than or equal to 200 percent of federal poverty guidelines, the 
 96.9   relative custody assistance payment shall be the full amount of 
 96.10  the net maximum assistance rate; 
 96.11     (ii) if the relative custodian's gross family income is 
 96.12  greater than 200 percent and less than or equal to 225 percent 
 96.13  of federal poverty guidelines, the relative custody assistance 
 96.14  payment shall be 80 percent of the net maximum assistance rate; 
 96.15     (iii) if the relative custodian's gross family income is 
 96.16  greater than 225 percent and less than or equal to 250 percent 
 96.17  of federal poverty guidelines, the relative custody assistance 
 96.18  payment shall be 60 percent of the net maximum assistance rate; 
 96.19     (iv) if the relative custodian's gross family income is 
 96.20  greater than 250 percent and less than or equal to 275 percent 
 96.21  of federal poverty guidelines, the relative custody assistance 
 96.22  payment shall be 40 percent of the net maximum assistance rate; 
 96.23     (v) if the relative custodian's gross family income is 
 96.24  greater than 275 percent and less than or equal to 300 percent 
 96.25  of federal poverty guidelines, the relative custody assistance 
 96.26  payment shall be 20 percent of the net maximum assistance rate; 
 96.27  or 
 96.28     (vi) if the relative custodian's gross family income is 
 96.29  greater than 300 percent of federal poverty guidelines, no 
 96.30  relative custody assistance payment shall be made. 
 96.31     (b) This paragraph specifies the provisions pertaining to 
 96.32  the relationship between relative custody assistance and AFDC, 
 96.33  MFIP-S, or other MFIP programs: 
 96.34     (1) the relative custodian of a child for whom the relative 
 96.35  is receiving relative custody assistance is expected to seek 
 96.36  whatever assistance is available for the child through the AFDC, 
 97.1   MFIP-S, or other MFIP programs program.  If a relative custodian 
 97.2   fails to apply for assistance through AFDC, MFIP-S, or other the 
 97.3   MFIP program for which the child is eligible, the child's 
 97.4   portion of the AFDC or MFIP standard will be calculated as if 
 97.5   application had been made and assistance received; 
 97.6      (2) the portion of the AFDC or MFIP standard relating to 
 97.7   each child for whom relative custody assistance is being 
 97.8   received shall be calculated as follows: 
 97.9      (i) determine the total AFDC or MFIP standard for the 
 97.10  assistance unit; 
 97.11     (ii) determine the amount that the AFDC or MFIP standard 
 97.12  would have been if the assistance unit had not included the 
 97.13  children for whom relative custody assistance is being received; 
 97.14     (iii) subtract the amount determined in item (ii) from the 
 97.15  amount determined in item (i); and 
 97.16     (iv) divide the result in item (iii) by the number of 
 97.17  children for whom relative custody assistance is being received 
 97.18  that are part of the assistance unit; or 
 97.19     (3) if a child for whom relative custody assistance is 
 97.20  being received is not eligible for assistance through the AFDC, 
 97.21  MFIP-S, or other MFIP programs program, the portion of AFDC or 
 97.22  MFIP standard relating to that child shall be equal to zero. 
 97.23     Sec. 111.  Minnesota Statutes 1998, section 257.85, 
 97.24  subdivision 11, is amended to read: 
 97.25     Subd. 11.  [FINANCIAL CONSIDERATIONS.] (a) Payment of 
 97.26  relative custody assistance under a relative custody assistance 
 97.27  agreement is subject to the availability of state funds and 
 97.28  payments may be reduced or suspended on order of the 
 97.29  commissioner if insufficient funds are available. 
 97.30     (b) Upon receipt from a local agency of a claim for 
 97.31  reimbursement, the commissioner shall reimburse the local agency 
 97.32  in an amount equal to 100 percent of the relative custody 
 97.33  assistance payments provided to relative custodians.  The local 
 97.34  agency may not seek and the commissioner shall not provide 
 97.35  reimbursement for the administrative costs associated with 
 97.36  performing the duties described in subdivision 4. 
 98.1      (c) For the purposes of determining eligibility or payment 
 98.2   amounts under the AFDC program, MFIP-S, and other MFIP programs 
 98.3   as of July 16, 1996, relative custody assistance payments shall 
 98.4   be considered excluded income. 
 98.5      Sec. 112.  Minnesota Statutes 1998, section 259.67, 
 98.6   subdivision 4, is amended to read: 
 98.7      Subd. 4.  [ELIGIBILITY CONDITIONS.] (a) The placing agency 
 98.8   shall use the AFDC requirements as specified in federal law as 
 98.9   of July 16, 1996, when determining the child's eligibility for 
 98.10  adoption assistance under title IV-E of the Social Security 
 98.11  Act.  If the child does not qualify, the placing agency shall 
 98.12  certify a child as eligible for state funded adoption assistance 
 98.13  only if the following criteria are met:  
 98.14     (1) Due to the child's characteristics or circumstances it 
 98.15  would be difficult to provide the child an adoptive home without 
 98.16  adoption assistance.  
 98.17     (2)(i) A placement agency has made reasonable efforts to 
 98.18  place the child for adoption without adoption assistance, but 
 98.19  has been unsuccessful; or 
 98.20     (ii) the child's licensed foster parents desire to adopt 
 98.21  the child and it is determined by the placing agency that the 
 98.22  adoption is in the best interest of the child. 
 98.23     (3) The child has been a ward of the commissioner or a 
 98.24  Minnesota-licensed child-placing agency.  
 98.25     (b) For purposes of this subdivision, the characteristics 
 98.26  or circumstances that may be considered in determining whether a 
 98.27  child is a child with special needs under United States Code, 
 98.28  title 42, chapter 7, subchapter IV, part E, or meets the 
 98.29  requirements of paragraph (a), clause (1), are the following: 
 98.30     (1) The child is a member of a sibling group to be placed 
 98.31  as one unit in which at least one sibling is older than 15 
 98.32  months of age or is described in clause (2) or (3). 
 98.33     (2) The child has documented physical, mental, emotional, 
 98.34  or behavioral disabilities. 
 98.35     (3) The child has a high risk of developing physical, 
 98.36  mental, emotional, or behavioral disabilities. 
 99.1      (c) When a child's eligibility for adoption assistance is 
 99.2   based upon the high risk of developing physical, mental, 
 99.3   emotional, or behavioral disabilities, payments shall not be 
 99.4   made under the adoption assistance agreement unless and until 
 99.5   the potential disability manifests itself as documented by an 
 99.6   appropriate health care professional. 
 99.7      Sec. 113.  Minnesota Statutes 1998, section 260.38, is 
 99.8   amended to read: 
 99.9      260.38 [COST, PAYMENT.] 
 99.10     In addition to the usual care and services given by public 
 99.11  and private agencies, the necessary cost incurred by the 
 99.12  commissioner of human services in providing care for such child 
 99.13  shall be paid by the county committing such child which, subject 
 99.14  to uniform rules established by the commissioner of human 
 99.15  services, may receive a reimbursement not exceeding one-half of 
 99.16  such costs from funds made available for this purpose by the 
 99.17  legislature during the period beginning July 1, 1985, and ending 
 99.18  December 31, 1985.  Beginning January 1, 1986, the necessary 
 99.19  cost incurred by the commissioner of human services in providing 
 99.20  care for the child must be paid by the county committing the 
 99.21  child.  Where such child is eligible to receive a grant of aid 
 99.22  to families with dependent children, Minnesota family investment 
 99.23  program-statewide program or supplemental security income for 
 99.24  the aged, blind, and disabled, or a foster care maintenance 
 99.25  payment under title IV-E of the Social Security Act, United 
 99.26  States Code, title 42, sections 670 to 676, the child's needs 
 99.27  shall be met through these programs.  
 99.28     Sec. 114.  Minnesota Statutes 1998, section 261.063, is 
 99.29  amended to read: 
 99.30     261.063 [TAX LEVY FOR SOCIAL SECURITY MEASURES; DUTIES OF 
 99.31  COUNTY BOARD.] 
 99.32     The board of county commissioners of each county shall 
 99.33  annually levy taxes and fix a rate sufficient to produce the 
 99.34  full amount required for poor relief, general assistance, aid to 
 99.35  dependent children Minnesota family investment program, county 
 99.36  share of county and state supplemental aid to supplemental 
100.1   security income applicants or recipients, and any other social 
100.2   security measures wherein there is now or may hereafter be 
100.3   county participation, sufficient to produce the full amount 
100.4   necessary for each such item, including administrative expenses, 
100.5   for the ensuing year, within the time fixed by law in addition 
100.6   to all other tax levies and tax rates, however fixed or 
100.7   determined, and any commissioner who shall fail to comply 
100.8   herewith shall be guilty of a gross misdemeanor and shall be 
100.9   immediately removed from office by the governor.  
100.10     Sec. 115.  Minnesota Statutes 1998, section 268.0111, 
100.11  subdivision 5, is amended to read: 
100.12     Subd. 5.  [INCOME MAINTENANCE AND SUPPORT SERVICES.] 
100.13  "Income maintenance and support services" means programs through 
100.14  which the state or its subdivisions provide direct financial or 
100.15  in-kind support to unemployed or underemployed persons, 
100.16  including reemployment insurance, aid to families with dependent 
100.17  children, Minnesota family investment program-statewide program, 
100.18  general assistance, food stamps, energy assistance, disability 
100.19  determinations, and child care.  Income maintenance and support 
100.20  services do not include medical assistance, aging services, 
100.21  social services, community social services, mental health 
100.22  services, or services for the emotionally disturbed, the 
100.23  mentally retarded, or residents of nursing homes. 
100.24     Sec. 116.  Minnesota Statutes 1998, section 268.0111, 
100.25  subdivision 7, is amended to read: 
100.26     Subd. 7.  [PUBLIC ASSISTANCE.] "Public assistance" 
100.27  means aid to families with dependent children, Minnesota family 
100.28  investment program-statewide, program and general assistance.  
100.29     Sec. 117.  Minnesota Statutes 1998, section 268.0122, 
100.30  subdivision 3, is amended to read: 
100.31     Subd. 3.  [DUTIES AS STATE AGENCY.] The commissioner shall: 
100.32     (1) administer the reemployment insurance benefits laws and 
100.33  related programs; 
100.34     (2) administer the aspects of aid to families with 
100.35  dependent children, Minnesota family investment 
100.36  program-statewide program, general assistance, and food stamps 
101.1   that relate to employment and training services, subject to the 
101.2   contract under section 268.86, subdivision 2; 
101.3      (3) administer wage subsidies and the discretionary 
101.4   employment and training fund; 
101.5      (4) administer a national system of public employment 
101.6   offices as prescribed by United States Code, title 29, chapter 
101.7   4B, the Wagner-Peyser Act, and other federal employment and 
101.8   training programs; 
101.9      (5) cooperate with the federal government and its 
101.10  employment and training agencies in any reasonable manner as 
101.11  necessary to qualify for federal aid for employment and training 
101.12  services and money; 
101.13     (6) enter into agreements with other departments of the 
101.14  state and local units of government as necessary; 
101.15     (7) certify employment and training service providers and 
101.16  decertify service providers that fail to comply with performance 
101.17  criteria according to standards established by the commissioner; 
101.18     (8) provide consistent, integrated employment and training 
101.19  services across the state; 
101.20     (9) establish the standards for all employment and training 
101.21  services administered under this chapter; 
101.22     (10) develop standards for the contents and structure of 
101.23  the local service unit plans and plans for Indian tribe 
101.24  employment and training services; 
101.25     (11) provide current state and substate labor market 
101.26  information and forecasts, in cooperation with other agencies; 
101.27     (12) identify underserved populations, unmet service needs, 
101.28  and funding requirements; 
101.29     (13) consult with the council for the blind on matters 
101.30  pertaining to programs and services for the blind and visually 
101.31  impaired; and 
101.32     (14) enter into agreements with Indian tribes as necessary 
101.33  to provide employment and training services as funds become 
101.34  available. 
101.35     Sec. 118.  Minnesota Statutes 1998, section 268.552, 
101.36  subdivision 5, is amended to read: 
102.1      Subd. 5.  [ALLOCATION TO APPLICANTS.] Priority for 
102.2   subsidies shall be in the following order: 
102.3      (1) applicants living in households with no other income 
102.4   source; 
102.5      (2) applicants whose incomes and resources are less than 
102.6   the standard for eligibility for general assistance; and 
102.7      (3) applicants who are eligible for aid to families with 
102.8   dependent children or Minnesota family investment 
102.9   program-statewide program. 
102.10     Sec. 119.  Minnesota Statutes 1998, section 268.672, 
102.11  subdivision 6, is amended to read: 
102.12     Subd. 6.  [ELIGIBLE JOB APPLICANT.] "Eligible job 
102.13  applicant" means a person who:  
102.14     (1) has attempted to secure a nonsubsidized job by 
102.15  completing comprehensive job readiness and is: 
102.16     (i) a temporary assistance for needy families 
102.17  (TANF) Minnesota family investment program recipient who is 
102.18  making good faith efforts to comply with the family support 
102.19  agreement a job search support plan as defined under 
102.20  section 256.032, subdivision 7a 256J.52, subdivision 3, or an 
102.21  employment plan as defined under section 256J.52, subdivision 5, 
102.22  but has failed to find suitable employment; or 
102.23     (ii) a family general assistance recipient; 
102.24     (2) is a member of a household supported only by: 
102.25     (i) a low-income worker; or 
102.26     (ii) a person who is underemployed as that term is defined 
102.27  in section 268.61, subdivision 5; or 
102.28     (3) is a member of a family that is eligible for, but not 
102.29  receiving public assistance. 
102.30     Sec. 120.  Minnesota Statutes 1998, section 268.86, 
102.31  subdivision 2, is amended to read: 
102.32     Subd. 2.  [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 
102.33  commissioner and the commissioner of human services shall enter 
102.34  into a written contract for the design, delivery, and 
102.35  administration of employment and training services for 
102.36  applicants for or recipients of food stamps, aid to families 
103.1   with dependent children or Minnesota family investment 
103.2   program-statewide program, including AFDC and MFIP-S employment 
103.3   and training programs and general assistance.  The contract must 
103.4   address: 
103.5      (1) specific roles and responsibilities of each department; 
103.6      (2) assignment and supervision of staff for interagency 
103.7   activities including any necessary interagency employee mobility 
103.8   agreements under the administrative procedures of the department 
103.9   of employee relations; 
103.10     (3) mechanisms for determining the conditions under which 
103.11  individuals participate in services, their rights and 
103.12  responsibilities while participating, and the standards by which 
103.13  the services must be administered; 
103.14     (4) procedures for providing technical assistance to local 
103.15  service units, Indian tribes, and employment and training 
103.16  service providers; 
103.17     (5) access to appropriate staff for ongoing development and 
103.18  interpretation of policy, rules, and program standards; 
103.19     (6) procedures for reimbursing appropriate agencies for 
103.20  administrative expenses; and 
103.21     (7) procedures for accessing available federal funds. 
103.22     Sec. 121.  Minnesota Statutes 1998, section 268.871, 
103.23  subdivision 1, is amended to read: 
103.24     Subdivision 1.  [RESPONSIBILITY AND CERTIFICATION.] (a) 
103.25  Unless prohibited by federal law or otherwise determined by 
103.26  state law, a local service unit is responsible for the delivery 
103.27  of employment and training services.  After February 1, 1988, 
103.28  employment and training services must be delivered by certified 
103.29  employment and training service providers.  
103.30     (b) The local service unit's employment and training 
103.31  service provider must meet the certification standards in this 
103.32  subdivision in order to be certified to deliver any of the 
103.33  following employment and training services and programs:  wage 
103.34  subsidies; general assistance grant diversion; food stamp 
103.35  employment and training programs; community work experience 
103.36  programs; AFDC or MFIP-S MFIP job search; AFDC or MFIP-S MFIP 
104.1   grant diversion; AFDC or MFIP-S MFIP on-the-job training; and 
104.2   AFDC or MFIP-S MFIP case management.  
104.3      (c) The commissioner shall certify a local service unit's 
104.4   service provider to provide these employment and training 
104.5   services and programs if the commissioner determines that the 
104.6   provider has:  
104.7      (1) past experience in direct delivery of the programs 
104.8   specified in paragraph (b); 
104.9      (2) staff capabilities and qualifications, including 
104.10  adequate staff to provide timely and effective services to 
104.11  clients, and proven staff experience in providing specific 
104.12  services such as assessments, career planning, job development, 
104.13  job placement, support services, and knowledge of community 
104.14  services and educational resources; 
104.15     (3) demonstrated effectiveness in providing services to 
104.16  public assistance recipients and other economically 
104.17  disadvantaged clients; and 
104.18     (4) demonstrated administrative capabilities, including 
104.19  adequate fiscal and accounting procedures, financial management 
104.20  systems, participant data systems, and record retention 
104.21  procedures. 
104.22     (d) When the only service provider that meets the criterion 
104.23  in paragraph (c), clause (1), has been decertified, according to 
104.24  subdivision 1a, in that local service unit, the following 
104.25  criteria shall be substituted:  past experience in direct 
104.26  delivery of multiple, coordinated, nonduplicative services, 
104.27  including outreach, assessments, identification of client 
104.28  barriers, employability development plans, and provision or 
104.29  referral to support services. 
104.30     (e) The commissioner shall certify providers of the 
104.31  Minnesota family investment plan case management services as 
104.32  defined in section 256.032, subdivision 3.  Providers must meet 
104.33  the standards defined in paragraph (c), except that past 
104.34  experience under paragraph (c), clause (1), must be in services 
104.35  and programs similar to those specified in section 256.032, 
104.36  subdivision 3.  
105.1      Employment and training service providers shall be 
105.2   certified by the commissioner for two fiscal years beginning 
105.3   July 1, 1991, and every second year thereafter. 
105.4      Sec. 122.  Minnesota Statutes 1998, section 268.90, 
105.5   subdivision 2, is amended to read: 
105.6      Subd. 2.  [EMPLOYMENT CONDITIONS.] (a) An eligible 
105.7   nonprofit or public employer may not terminate, lay off, or 
105.8   reduce the regular working hours of an employee for the purpose 
105.9   of hiring an individual with money available under this 
105.10  program.  An eligible employer may not hire an individual with 
105.11  money available through this program if any other person is on 
105.12  layoff from the same or a substantially equivalent job. 
105.13     (b) Community investment program participants are employees 
105.14  of the project employer within the meaning of workers' 
105.15  compensation laws, personal income tax, and the Federal 
105.16  Insurance Contribution Act, but not retirement or civil service 
105.17  laws. 
105.18     (c) Each project and job must comply with all applicable 
105.19  affirmative action, fair labor, health, safety, and 
105.20  environmental standards. 
105.21     (d) Individuals employed under the community investment 
105.22  program must be paid a wage at the same wage rates as work site 
105.23  or employees doing comparable work in that locality, unless 
105.24  otherwise specified in law. 
105.25     (e) Recipients of aid to families with dependent children 
105.26  or Minnesota family investment program-statewide who are 
105.27  eligible on the basis of an unemployed parent may not have 
105.28  available more than 100 hours a month.  All employees are 
105.29  limited to 32 hours or four days a week, so that they can 
105.30  continue to seek full-time private sector employment, unless 
105.31  otherwise specified in law. 
105.32     (f) The commissioner shall establish, by rule, the terms 
105.33  and conditions governing the participation of appropriate public 
105.34  assistance recipients.  The rules must, at a minimum, establish 
105.35  the procedures by which the minimum and maximum number of work 
105.36  hours and maximum allowable travel distances are determined, the 
106.1   amounts and methods by which work expenses will be paid, and the 
106.2   manner in which support services will be provided.  The rules 
106.3   must also provide for periodic reviews of clients continuing 
106.4   employment in community investment programs. 
106.5      (g) Participation in a community investment program by a 
106.6   recipient of aid to families with dependent children, Minnesota 
106.7   family investment program-statewide, program assistance or 
106.8   general assistance is voluntary.  
106.9      Sec. 123.  Minnesota Statutes 1998, section 268.95, 
106.10  subdivision 4, is amended to read: 
106.11     Subd. 4.  [PILOT PROGRAM.] The commissioner shall develop a 
106.12  pilot program, in cooperation with the commissioners of trade 
106.13  and economic development and human services, to enable 
106.14  low-income persons to start or expand self-employment 
106.15  opportunities or home-based businesses that are designed to make 
106.16  the individual entrepreneurs economically independent.  The 
106.17  commissioner of human services shall seek necessary waivers from 
106.18  federal regulations to allow recipients of aid to families with 
106.19  dependent children or Minnesota family investment 
106.20  program-statewide program assistance to participate and retain 
106.21  eligibility while establishing a business. 
106.22     Sec. 124.  Minnesota Statutes 1998, section 275.065, 
106.23  subdivision 5a, is amended to read: 
106.24     Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
106.25  population of more than 2,500, county, a metropolitan special 
106.26  taxing district as defined in subdivision 3, paragraph (i), a 
106.27  regional library district established under section 134.201, or 
106.28  school district shall advertise in a newspaper a notice of its 
106.29  intent to adopt a budget and property tax levy or, in the case 
106.30  of a school district, to review its current budget and proposed 
106.31  property taxes payable in the following year, at a public 
106.32  hearing.  The notice must be published not less than two 
106.33  business days nor more than six business days before the hearing.
106.34     The advertisement must be at least one-eighth page in size 
106.35  of a standard-size or a tabloid-size newspaper.  The 
106.36  advertisement must not be placed in the part of the newspaper 
107.1   where legal notices and classified advertisements appear.  The 
107.2   advertisement must be published in an official newspaper of 
107.3   general circulation in the taxing authority.  The newspaper 
107.4   selected must be one of general interest and readership in the 
107.5   community, and not one of limited subject matter.  The 
107.6   advertisement must appear in a newspaper that is published at 
107.7   least once per week.  
107.8      For purposes of this section, the metropolitan special 
107.9   taxing district's advertisement must only be published in the 
107.10  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
107.11     (b) The advertisement for school districts, metropolitan 
107.12  special taxing districts, and regional library districts must be 
107.13  in the following form, except that the notice for a school 
107.14  district may include references to the current budget in regard 
107.15  to proposed property taxes. 
107.16                             "NOTICE OF
107.17                      PROPOSED PROPERTY TAXES
107.18                   (School District/Metropolitan
107.19                  Special Taxing District/Regional
107.20                   Library District) of .........
107.21  The governing body of ........ will soon hold budget hearings 
107.22  and vote on the property taxes for (metropolitan special taxing 
107.23  district/regional library district services that will be 
107.24  provided in (year)/school district services that will be 
107.25  provided in (year) and (year)). 
107.26                     NOTICE OF PUBLIC HEARING:
107.27  All concerned citizens are invited to attend a public hearing 
107.28  and express their opinions on the proposed (school 
107.29  district/metropolitan special taxing district/regional library 
107.30  district) budget and property taxes, or in the case of a school 
107.31  district, its current budget and proposed property taxes, 
107.32  payable in the following year.  The hearing will be held on 
107.33  (Month/Day/Year) at (Time) at (Location, Address)." 
107.34     (c) The advertisement for cities and counties must be in 
107.35  the following form. 
107.36                        "NOTICE OF PROPOSED
108.1                   TOTAL BUDGET AND PROPERTY TAXES
108.2   The (city/county) governing body or board of commissioners will 
108.3   hold a public hearing to discuss the budget and to vote on the 
108.4   amount of property taxes to collect for services the 
108.5   (city/county) will provide in (year). 
108.6      
108.7   SPENDING:  The total budget amounts below compare 
108.8   (city's/county's) (year) total actual budget with the amount the 
108.9   (city/county) proposes to spend in (year). 
108.10     
108.11  (Year) Total          Proposed (Year)          Change from
108.12  Actual Budget             Budget               (Year)-(Year)
108.13     
108.14    $.......              $.......                ...%
108.15     
108.16  TAXES:  The property tax amounts below compare that portion of 
108.17  the current budget levied in property taxes in (city/county) for 
108.18  (year) with the property taxes the (city/county) proposes to 
108.19  collect in (year). 
108.20     
108.21  (Year) Property       Proposed (Year)          Change from
108.22      Taxes              Property Taxes         (Year)-(Year)
108.23     
108.24    $.......              $.......                ...% 
108.25     
108.26                     ATTEND THE PUBLIC HEARING
108.27  All (city/county) residents are invited to attend the public 
108.28  hearing of the (city/county) to express your opinions on the 
108.29  budget and the proposed amount of (year) property taxes.  The 
108.30  hearing will be held on: 
108.31                       (Month/Day/Year/Time)
108.32                         (Location/Address)
108.33  If the discussion of the budget cannot be completed, a time and 
108.34  place for continuing the discussion will be announced at the 
108.35  hearing.  You are also invited to send your written comments to: 
108.36                           (City/County)
109.1                         (Location/Address)"
109.2      (d) For purposes of this subdivision, the budget amounts 
109.3   listed on the advertisement mean: 
109.4      (1) for cities, the total government fund expenditures, as 
109.5   defined by the state auditor under section 471.6965, less any 
109.6   expenditures for improvements or services that are specially 
109.7   assessed or charged under chapter 429, 430, 435, or the 
109.8   provisions of any other law or charter; and 
109.9      (2) for counties, the total government fund expenditures, 
109.10  as defined by the state auditor under section 375.169, less any 
109.11  expenditures for direct payments to recipients or providers for 
109.12  the human service aids listed below: 
109.13     (1) aid to families with dependent children under sections 
109.14  256.82, subdivision 1, and 256.935, subdivision 1 (i) Minnesota 
109.15  family investment program under chapters 256J and 256K; 
109.16     (2) (ii) medical assistance under sections 256B.041, 
109.17  subdivision 5, and 256B.19, subdivision 1; 
109.18     (3) (iii) general assistance medical care under section 
109.19  256D.03, subdivision 6; 
109.20     (4) (iv) general assistance under section 256D.03, 
109.21  subdivision 2; 
109.22     (5) (v) emergency assistance under section 256.871, 
109.23  subdivision 6 256J.48; 
109.24     (6) (vi) Minnesota supplemental aid under section 256D.36, 
109.25  subdivision 1; 
109.26     (7) (vii) preadmission screening under section 256B.0911, 
109.27  and alternative care grants under section 256B.0913; 
109.28     (8) (viii) general assistance medical care claims 
109.29  processing, medical transportation and related costs under 
109.30  section 256D.03, subdivision 4; 
109.31     (9) (ix) medical transportation and related costs under 
109.32  section 256B.0625, subdivisions 17 to 18a; 
109.33     (10) (x) group residential housing under 256I.05, 
109.34  subdivision 8, transferred from programs in clauses (4) (iv) and 
109.35  (6) (vi); or 
109.36     (11) (xi) any successor programs to those listed in clauses 
110.1   (1) (i) to (10) (x). 
110.2      (e) A city with a population of over 500 but not more than 
110.3   2,500 must advertise by posted notice as defined in section 
110.4   645.12, subdivision 1.  The advertisement must be posted at the 
110.5   time provided in paragraph (a).  It must be in the form required 
110.6   in paragraph (b). 
110.7      (f) For purposes of this subdivision, the population of a 
110.8   city is the most recent population as determined by the state 
110.9   demographer under section 4A.02. 
110.10     (g) The commissioner of revenue, subject to the approval of 
110.11  the chairs of the house and senate tax committees, shall 
110.12  prescribe the form and format of the advertisement. 
110.13     Sec. 125.  Minnesota Statutes 1998, section 290.067, 
110.14  subdivision 1, is amended to read: 
110.15     Subdivision 1.  [AMOUNT OF CREDIT.] (a) A taxpayer may take 
110.16  as a credit against the tax due from the taxpayer and a spouse, 
110.17  if any, under this chapter an amount equal to the dependent care 
110.18  credit for which the taxpayer is eligible pursuant to the 
110.19  provisions of section 21 of the Internal Revenue Code subject to 
110.20  the limitations provided in subdivision 2 except that in 
110.21  determining whether the child qualified as a dependent, income 
110.22  received as an aid to families with dependent children a 
110.23  Minnesota family investment program grant or allowance to or on 
110.24  behalf of the child, or as a grant or allowance to or on behalf 
110.25  of the child under the successor program pursuant to Public Law 
110.26  104-193, must not be taken into account in determining whether 
110.27  the child received more than half of the child's support from 
110.28  the taxpayer, and the provisions of section 32(b)(1)(D) of the 
110.29  Internal Revenue Code do not apply. 
110.30     (b) If a child who has not attained the age of six years at 
110.31  the close of the taxable year is cared for at a licensed family 
110.32  day care home operated by the child's parent, the taxpayer is 
110.33  deemed to have paid employment-related expenses.  If the child 
110.34  is 16 months old or younger at the close of the taxable year, 
110.35  the amount of expenses deemed to have been paid equals the 
110.36  maximum limit for one qualified individual under section 21(c) 
111.1   and (d) of the Internal Revenue Code.  If the child is older 
111.2   than 16 months of age but has not attained the age of six years 
111.3   at the close of the taxable year, the amount of expenses deemed 
111.4   to have been paid equals the amount the licensee would charge 
111.5   for the care of a child of the same age for the same number of 
111.6   hours of care.  
111.7      (c) If a married couple: 
111.8      (1) has a child who has not attained the age of one year at 
111.9   the close of the taxable year; 
111.10     (2) files a joint tax return for the taxable year; and 
111.11     (3) does not participate in a dependent care assistance 
111.12  program as defined in section 129 of the Internal Revenue Code, 
111.13  in lieu of the actual employment related expenses paid for that 
111.14  child under paragraph (a) or the deemed amount under paragraph 
111.15  (b), the lesser of (i) the combined earned income of the couple 
111.16  or (ii) $2,400 will be deemed to be the employment related 
111.17  expense paid for that child.  The earned income limitation of 
111.18  section 21(d) of the Internal Revenue Code shall not apply to 
111.19  this deemed amount.  These deemed amounts apply regardless of 
111.20  whether any employment-related expenses have been paid.  
111.21     (d) If the taxpayer is not required and does not file a 
111.22  federal individual income tax return for the tax year, no credit 
111.23  is allowed for any amount paid to any person unless: 
111.24     (1) the name, address, and taxpayer identification number 
111.25  of the person are included on the return claiming the credit; or 
111.26     (2) if the person is an organization described in section 
111.27  501(c)(3) of the Internal Revenue Code and exempt from tax under 
111.28  section 501(a) of the Internal Revenue Code, the name and 
111.29  address of the person are included on the return claiming the 
111.30  credit.  
111.31  In the case of a failure to provide the information required 
111.32  under the preceding sentence, the preceding sentence does not 
111.33  apply if it is shown that the taxpayer exercised due diligence 
111.34  in attempting to provide the information required. 
111.35     In the case of a nonresident, part-year resident, or a 
111.36  person who has earned income not subject to tax under this 
112.1   chapter, the credit determined under section 21 of the Internal 
112.2   Revenue Code must be allocated based on the ratio by which the 
112.3   earned income of the claimant and the claimant's spouse from 
112.4   Minnesota sources bears to the total earned income of the 
112.5   claimant and the claimant's spouse. 
112.6      Sec. 126.  Minnesota Statutes 1998, section 290A.03, 
112.7   subdivision 7, is amended to read: 
112.8      Subd. 7.  [DEPENDENT.] "Dependent" means any person who is 
112.9   considered a dependent under sections 151 and 152 of the 
112.10  Internal Revenue Code.  In the case of a son, stepson, daughter, 
112.11  or stepdaughter of the claimant, amounts received as an aid to 
112.12  families with dependent children a Minnesota family investment 
112.13  program grant, allowance to or on behalf of the child, or as a 
112.14  grant or allowance to or on behalf of the child under the 
112.15  successor program pursuant to Public Law Number 104-193, surplus 
112.16  food, or other relief in kind supplied by a governmental agency 
112.17  must not be taken into account in determining whether the child 
112.18  received more than half of the child's support from the claimant.
112.19     Sec. 127.  Minnesota Statutes 1998, section 393.07, 
112.20  subdivision 6, is amended to read: 
112.21     Subd. 6.  [PURCHASE OF EQUIPMENT TO AID WELFARE 
112.22  RECIPIENTS.] Every local social services agency authorizing 
112.23  braces, crutches, trusses, wheel chairs and hearing aids for use 
112.24  by recipients of supplemental security income for the aged, 
112.25  blind and disabled, aid to families with dependent children or 
112.26  Minnesota family investment program-statewide program and relief 
112.27  shall secure such devices at the lowest cost obtainable 
112.28  conducive to the well being of the recipient and fix the 
112.29  recipient's grant in an amount to cover the cost of the device 
112.30  providing it will be purchased at the lowest cost obtainable, or 
112.31  may make payment for the device directly to the vendor. 
112.32     Sec. 128.  Minnesota Statutes 1998, section 462A.205, 
112.33  subdivision 2, is amended to read: 
112.34     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
112.35  the following terms have the meanings given them. 
112.36     (a) "Caretaker parent" means a parent, relative caretaker, 
113.1   or minor caretaker as defined by the aid to families with 
113.2   dependent children program, sections 256.72 to 256.87, or its 
113.3   successor program Minnesota family investment program, chapter 
113.4   256J. 
113.5      (b) "County agency" means the agency designated by the 
113.6   county board to implement financial assistance for current 
113.7   public assistance programs and for the Minnesota family 
113.8   investment program statewide. 
113.9      (c) "Counties with high average housing costs" means 
113.10  counties whose average federal section 8 fair market rents as 
113.11  determined by the Department of Housing and Urban Development 
113.12  are in the highest one-third of average rents in the state. 
113.13     (d) "Designated rental property" is rental property (1) 
113.14  that is made available by a self-sufficiency program for use by 
113.15  participating families and meets federal section 8 existing 
113.16  quality standards, or (2) that has received federal, state, or 
113.17  local rental rehabilitation assistance since January 1, 1987, 
113.18  and meets federal section 8 existing housing quality standards. 
113.19     (e) "Earned income" for a family receiving rental 
113.20  assistance under this section means cash or in-kind income 
113.21  earned through the receipt of wages, salary, commissions, profit 
113.22  from employment activities, net profit from self-employment 
113.23  activities, payments made by an employer for regularly accrued 
113.24  vacation or sick leave, and any other profit from activity 
113.25  earned through effort or labor. 
113.26     (f) "Family or participating family" means: 
113.27     (1) a family with a caretaker parent who is participating 
113.28  in a self-sufficiency program and with at least one minor child; 
113.29     (2) a family that, at the time it began receiving rent 
113.30  assistance under this section, had a caretaker parent 
113.31  participating in a self-sufficiency program and had at least one 
113.32  minor child; 
113.33     (3) a family with a caretaker parent who is receiving 
113.34  public assistance and has earned income and with at least one 
113.35  minor child; or 
113.36     (4) a family that, at the time it began receiving rent 
114.1   assistance under this section, had a caretaker parent who had 
114.2   earned income and at least one minor child. 
114.3      (g) "Gross family income" for a family receiving rental 
114.4   assistance under this section means the gross amount of the 
114.5   wages, salaries, social security payments, pensions, workers' 
114.6   compensation, reemployment insurance, public assistance 
114.7   payments, alimony, child support, and income from assets 
114.8   received by the family. 
114.9      (h) "Local housing organization" means the agency of local 
114.10  government responsible for administering the Department of 
114.11  Housing and Urban Development's section 8 existing voucher and 
114.12  certificate program or a nonprofit or for-profit organization 
114.13  experienced in housing management. 
114.14     (i) "Public assistance" means aid to families with 
114.15  dependent children, or its successor program, family general 
114.16  assistance, or its successor program, or family work readiness, 
114.17  or its successor the Minnesota family investment program. 
114.18     (j) "Self-sufficiency program" means a program operated by 
114.19  an employment and training service provider as defined in 
114.20  chapter 256J, an employability program administered by a 
114.21  community action agency, or courses of study at an accredited 
114.22  institution of higher education pursued with at least half-time 
114.23  student status. 
114.24     Sec. 129.  Minnesota Statutes 1998, section 462A.222, 
114.25  subdivision 1a, is amended to read: 
114.26     Subd. 1a.  [DETERMINATION OF REGIONAL CREDIT POOLS.] The 
114.27  agency shall divide the annual per capita amount used in 
114.28  determining the state ceiling for low-income housing tax credits 
114.29  provided under section 42 of the Internal Revenue Code of 1986, 
114.30  as amended, into a metropolitan pool and a greater Minnesota 
114.31  pool.  The metropolitan pool shall serve the metropolitan area 
114.32  as defined in section 473.121, subdivision 2.  The greater 
114.33  Minnesota pool shall serve the remaining counties of the state.  
114.34  The percentage of the annual per capita amount allotted to each 
114.35  pool must be determined as follows: 
114.36     (a) The percentage set-aside for projects involving a 
115.1   qualified nonprofit organization as provided in section 42 of 
115.2   the Internal Revenue Code of 1986, as amended, must be deducted 
115.3   from the annual per capita amount used in determining the state 
115.4   ceiling. 
115.5      (b) Of the remaining amount, the metropolitan pool must be 
115.6   allotted a percentage equal to the metropolitan counties' 
115.7   percentage of the total number of state recipients of:  aid to 
115.8   families with dependent children the Minnesota family investment 
115.9   program, general assistance, Minnesota supplemental aid, and 
115.10  supplemental security income in the state, as reported annually 
115.11  by the department of human services.  The greater Minnesota pool 
115.12  must be allotted the amount remaining after the metropolitan 
115.13  pool's percentage has been allotted. 
115.14     The set-aside for qualified nonprofit organizations must be 
115.15  divided between the two regional pools in the same percentage as 
115.16  determined for the credit amounts above. 
115.17     Sec. 130.  Minnesota Statutes 1998, section 473.129, 
115.18  subdivision 8, is amended to read: 
115.19     Subd. 8.  [INSURANCE.] The council may provide for 
115.20  self-insurance or otherwise provide for insurance relating to 
115.21  any of its property, rights, or revenue, workers' compensation, 
115.22  public liability, or any other risk or hazard arising from its 
115.23  activities, and may provide for insuring any of its officers or 
115.24  employees against the risk or hazard at the expense of the 
115.25  council.  If the council provides for self-insurance, against 
115.26  its liability and the liability of its officers, employees, and 
115.27  agents for damages resulting from its torts and those of its 
115.28  officers, employees, and agents, including its obligation to pay 
115.29  basic economic loss benefits under sections 65B.41 to 65B.71, it 
115.30  shall be entitled to deduct from damages and basic economic loss 
115.31  benefits all money paid or payable to the persons seeking 
115.32  damages and benefits from all governmental entities providing 
115.33  medical, hospital, and disability benefits except for payments 
115.34  made under the aid to families with dependent children Minnesota 
115.35  family investment program or medical assistance programs program.
115.36     Sec. 131.  Minnesota Statutes 1998, section 477A.0122, 
116.1   subdivision 2, is amended to read: 
116.2      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
116.3   following definitions apply: 
116.4      (a) "Children in out-of-home placement" means the total 
116.5   unduplicated number of children in out-of-home care as reported 
116.6   according to section 257.0725. 
116.7      (b) "Family preservation programs" means family-based 
116.8   services as defined in section 256F.03, subdivision 5, families 
116.9   first services, parent and child education programs, and day 
116.10  treatment services provided in cooperation with a school 
116.11  district or other programs as defined by the commissioner of 
116.12  human services. 
116.13     (c) "Income maintenance caseload" means average monthly 
116.14  number of AFDC or Minnesota family investment program-statewide 
116.15  program cases for the calendar year. 
116.16     By July 1, 1994, the commissioner of human services shall 
116.17  certify to the commissioner of revenue the number of children in 
116.18  out-of-home placement in 1991 and 1992 for each county and the 
116.19  income maintenance caseload for each county for the most recent 
116.20  year available.  By July 1 of each subsequent year, the 
116.21  commissioner of human services shall certify to the commissioner 
116.22  of revenue the income maintenance caseload for each county for 
116.23  the most recent calendar year available. 
116.24     Sec. 132.  Minnesota Statutes 1998, section 501B.89, 
116.25  subdivision 2, is amended to read: 
116.26     Subd. 2.  [SUPPLEMENTAL TRUSTS FOR PERSONS WITH 
116.27  DISABILITIES.] (a) It is the public policy of this state to 
116.28  enforce supplemental needs trusts as provided in this 
116.29  subdivision. 
116.30     (b) For purposes of this subdivision, a "supplemental needs 
116.31  trust" is a trust created for the benefit of a person with a 
116.32  disability and funded by someone other than the trust 
116.33  beneficiary, the beneficiary's spouse, or anyone obligated to 
116.34  pay any sum for damages or any other purpose to or for the 
116.35  benefit of the trust beneficiary under the terms of a settlement 
116.36  agreement or judgment. 
117.1      (c) For purposes of this subdivision, a "person with a 
117.2   disability" means a person who, prior to creation of a trust 
117.3   which otherwise qualifies as a supplemental needs trust for the 
117.4   person's benefit: 
117.5      (1) is considered to be a person with a disability under 
117.6   the disability criteria specified in Title II or Title XVI of 
117.7   the Social Security Act; or 
117.8      (2) has a physical or mental illness or condition which, in 
117.9   the expected natural course of the illness or condition, either 
117.10  prior to or following creation of the trust, to a reasonable 
117.11  degree of medical certainty, is expected to: 
117.12     (i) last for a continuous period of 12 months or more; and 
117.13     (ii) substantially impair the person's ability to provide 
117.14  for the person's care or custody. 
117.15     Disability may be established conclusively for purposes of 
117.16  this subdivision by the written opinion of a licensed 
117.17  professional who is qualified to diagnose the illness or 
117.18  condition, confirmed by the written opinion of a second licensed 
117.19  professional who is qualified to diagnose the illness or 
117.20  condition. 
117.21     (d) The general purpose of a supplemental needs trust must 
117.22  be to provide for the reasonable living expenses and other basic 
117.23  needs of a person with a disability when benefits from publicly 
117.24  funded benefit programs are not sufficient to provide adequately 
117.25  for those needs.  Subject to the restrictions contained in this 
117.26  paragraph, a supplemental needs trust may authorize 
117.27  distributions to provide for all or any portion of the 
117.28  reasonable living expenses of the beneficiary.  A supplemental 
117.29  needs trust may allow or require distributions only in ways and 
117.30  for purposes that supplement or complement the benefits 
117.31  available under medical assistance, Minnesota supplemental aid, 
117.32  and other publicly funded benefit programs for disabled 
117.33  persons.  A supplemental needs trust must contain provisions 
117.34  that prohibit disbursements that would have the effect of 
117.35  replacing, reducing, or substituting for publicly funded 
117.36  benefits otherwise available to the beneficiary or rendering the 
118.1   beneficiary ineligible for publicly funded benefits. 
118.2      (e) A supplemental needs trust is not enforceable if the 
118.3   trust beneficiary becomes a patient or resident after age 64 in 
118.4   a state institution or nursing facility for six months or more 
118.5   and, due to the beneficiary's medical need for care in an 
118.6   institutional setting, there is no reasonable expectation that 
118.7   the beneficiary will ever be discharged from the institution or 
118.8   facility.  For purposes of this paragraph "reasonable 
118.9   expectation" means that the beneficiary's attending physician 
118.10  has certified that the expectation is reasonable.  For purposes 
118.11  of this paragraph, a beneficiary participating in a group 
118.12  residential program is not deemed to be a patient or resident in 
118.13  a state institution or nursing facility.  
118.14     (f) The trust income and assets of a supplemental needs 
118.15  trust are considered available to the beneficiary for medical 
118.16  assistance purposes to the extent they are considered available 
118.17  to the beneficiary under medical assistance, supplemental 
118.18  security income, or aid to families with dependent 
118.19  children Minnesota family investment program methodology, 
118.20  whichever is used to determine the beneficiary's eligibility for 
118.21  medical assistance.  For other public assistance programs 
118.22  established or administered under state law, assets and income 
118.23  will be considered available to the beneficiary in accordance 
118.24  with the methodology applicable to the program. 
118.25     (g) Nothing in this subdivision requires submission of a 
118.26  supplemental needs trust to a court for interpretation or 
118.27  enforcement. 
118.28     (h) Paragraphs (a) to (g) apply to supplemental needs 
118.29  trusts whenever created, but the limitations and restrictions in 
118.30  paragraphs (c) to (g) apply only to trusts created after June 
118.31  30, 1993.  
118.32     Sec. 133.  Minnesota Statutes 1998, section 518.171, 
118.33  subdivision 1, is amended to read: 
118.34     Subdivision 1.  [ORDER.] Compliance with this section 
118.35  constitutes compliance with a qualified medical child support 
118.36  order as described in the federal Employee Retirement Income 
119.1   Security Act of 1974 (ERISA) as amended by the federal Omnibus 
119.2   Budget Reconciliation Act of 1993 (OBRA).  
119.3      (a) Every child support order must: 
119.4      (1) expressly assign or reserve the responsibility for 
119.5   maintaining medical insurance for the minor children and the 
119.6   division of uninsured medical and dental costs; and 
119.7      (2) contain the names, last known addresses, and social 
119.8   security number of the custodial parent and noncustodial parent, 
119.9   of the dependents unless the court prohibits the inclusion of an 
119.10  address or social security number and orders the custodial 
119.11  parent to provide the address and social security number to the 
119.12  administrator of the health plan.  The court shall order the 
119.13  party with the better group dependent health and dental 
119.14  insurance coverage or health insurance plan to name the minor 
119.15  child as beneficiary on any health and dental insurance plan 
119.16  that is available to the party on: 
119.17     (i) a group basis; 
119.18     (ii) through an employer or union; or 
119.19     (iii) through a group health plan governed under the ERISA 
119.20  and included within the definitions relating to health plans 
119.21  found in section 62A.011, 62A.048, or 62E.06, subdivision 2.  
119.22  "Health insurance" or "health insurance coverage" as used in 
119.23  this section means coverage that is comparable to or better than 
119.24  a number two qualified plan as defined in section 62E.06, 
119.25  subdivision 2.  "Health insurance" or "health insurance 
119.26  coverage" as used in this section does not include medical 
119.27  assistance provided under chapter 256, 256B, 256J, 256K, or 256D.
119.28     (b) If the court finds that dependent health or dental 
119.29  insurance is not available to the obligor or obligee on a group 
119.30  basis or through an employer or union, or that group insurance 
119.31  is not accessible to the obligee, the court may require the 
119.32  obligor (1) to obtain other dependent health or dental 
119.33  insurance, (2) to be liable for reasonable and necessary medical 
119.34  or dental expenses of the child, or (3) to pay no less than $50 
119.35  per month to be applied to the medical and dental expenses of 
119.36  the children or to the cost of health insurance dependent 
120.1   coverage. 
120.2      (c) If the court finds that the available dependent health 
120.3   or dental insurance does not pay all the reasonable and 
120.4   necessary medical or dental expenses of the child, including any 
120.5   existing or anticipated extraordinary medical expenses, and the 
120.6   court finds that the obligor has the financial ability to 
120.7   contribute to the payment of these medical or dental expenses, 
120.8   the court shall require the obligor to be liable for all or a 
120.9   portion of the medical or dental expenses of the child not 
120.10  covered by the required health or dental plan.  Medical and 
120.11  dental expenses include, but are not limited to, necessary 
120.12  orthodontia and eye care, including prescription lenses. 
120.13     (d) Unless otherwise agreed by the parties and approved by 
120.14  the court, if the court finds that the obligee is not receiving 
120.15  public assistance for the child and has the financial ability to 
120.16  contribute to the cost of medical and dental expenses for the 
120.17  child, including the cost of insurance, the court shall order 
120.18  the obligee and obligor to each assume a portion of these 
120.19  expenses based on their proportionate share of their total net 
120.20  income as defined in section 518.54, subdivision 6. 
120.21     (e) Payments ordered under this section are subject to 
120.22  section 518.6111.  An obligee who fails to apply payments 
120.23  received to the medical expenses of the dependents may be found 
120.24  in contempt of this order. 
120.25     Sec. 134.  Minnesota Statutes 1998, section 518.551, 
120.26  subdivision 5, is amended to read: 
120.27     Subd. 5.  [NOTICE TO PUBLIC AUTHORITY; GUIDELINES.] (a) The 
120.28  petitioner shall notify the public authority of all proceedings 
120.29  for dissolution, legal separation, determination of parentage or 
120.30  for the custody of a child, if either party is receiving public 
120.31  assistance or applies for it subsequent to the commencement of 
120.32  the proceeding.  The notice must contain the full names of the 
120.33  parties to the proceeding, their social security account 
120.34  numbers, and their birth dates.  After receipt of the notice, 
120.35  the court shall set child support as provided in this 
120.36  subdivision.  The court may order either or both parents owing a 
121.1   duty of support to a child of the marriage to pay an amount 
121.2   reasonable or necessary for the child's support, without regard 
121.3   to marital misconduct.  The court shall approve a child support 
121.4   stipulation of the parties if each party is represented by 
121.5   independent counsel, unless the stipulation does not meet the 
121.6   conditions of paragraph (i).  In other cases the court shall 
121.7   determine and order child support in a specific dollar amount in 
121.8   accordance with the guidelines and the other factors set forth 
121.9   in paragraph (c) and any departure therefrom.  The court may 
121.10  also order the obligor to pay child support in the form of a 
121.11  percentage share of the obligor's net bonuses, commissions, or 
121.12  other forms of compensation, in addition to, or if the obligor 
121.13  receives no base pay, in lieu of, an order for a specific dollar 
121.14  amount. 
121.15     (b) The court shall derive a specific dollar amount for 
121.16  child support by multiplying the obligor's net income by the 
121.17  percentage indicated by the following guidelines:  
121.18  Net Income Per            Number of Children 
121.19  Month of Obligor 
121.20                1     2     3     4     5     6    7 or 
121.21                                                   more 
121.22  $550 and Below     Order based on the ability of the 
121.23                     obligor to provide support  
121.24                     at these income levels, or at higher  
121.25                     levels, if the obligor has 
121.26                     the earning ability. 
121.27  $551 - 600   16%   19%   22%   25%   28%   30%   32% 
121.28  $601 - 650   17%   21%   24%   27%   29%   32%   34% 
121.29  $651 - 700   18%   22%   25%   28%   31%   34%   36% 
121.30  $701 - 750   19%   23%   27%   30%   33%   36%   38% 
121.31  $751 - 800   20%   24%   28%   31%   35%   38%   40% 
121.32  $801 - 850   21%   25%   29%   33%   36%   40%   42% 
121.33  $851 - 900   22%   27%   31%   34%   38%   41%   44% 
121.34  $901 - 950   23%   28%   32%   36%   40%   43%   46% 
121.35  $951 - 1000  24%   29%   34%   38%   41%   45%   48% 
121.36  $1001- 5000  25%   30%   35%   39%   43%   47%   50% 
122.1   or the amount 
122.2   in effect under
122.3   paragraph (k)
122.4      Guidelines for support for an obligor with a monthly income 
122.5   in excess of the income limit currently in effect under 
122.6   paragraph (k) shall be the same dollar amounts as provided for 
122.7   in the guidelines for an obligor with a monthly income equal to 
122.8   the limit in effect. 
122.9   Net Income defined as: 
122.10           
122.11           Total monthly 
122.12           income less           *(i) Federal Income Tax 
122.13                                *(ii) State Income Tax 
122.14                                (iii) Social Security
122.15                                       Deductions 
122.16                                 (iv) Reasonable
122.17                                       Pension Deductions
122.18           *Standard 
122.19           Deductions apply-      (v) Union Dues 
122.20           use of tax tables     (vi) Cost of Dependent Health
122.21           recommended                 Insurance Coverage  
122.22                                (vii) Cost of Individual or Group
122.23                                       Health/Hospitalization
122.24                                       Coverage or an        
122.25                                       Amount for Actual 
122.26                                       Medical Expenses   
122.27                               (viii) A Child Support or  
122.28                                       Maintenance Order that is
122.29                                       Currently Being Paid. 
122.30     "Net income" does not include: 
122.31     (1) the income of the obligor's spouse, but does include 
122.32  in-kind payments received by the obligor in the course of 
122.33  employment, self-employment, or operation of a business if the 
122.34  payments reduce the obligor's living expenses; or 
122.35     (2) compensation received by a party for employment in 
122.36  excess of a 40-hour work week, provided that: 
123.1      (i) support is nonetheless ordered in an amount at least 
123.2   equal to the guidelines amount based on income not excluded 
123.3   under this clause; and 
123.4      (ii) the party demonstrates, and the court finds, that: 
123.5      (A) the excess employment began after the filing of the 
123.6   petition for dissolution; 
123.7      (B) the excess employment reflects an increase in the work 
123.8   schedule or hours worked over that of the two years immediately 
123.9   preceding the filing of the petition; 
123.10     (C) the excess employment is voluntary and not a condition 
123.11  of employment; 
123.12     (D) the excess employment is in the nature of additional, 
123.13  part-time or overtime employment compensable by the hour or 
123.14  fraction of an hour; and 
123.15     (E) the party's compensation structure has not been changed 
123.16  for the purpose of affecting a support or maintenance obligation.
123.17     The court shall review the work-related and 
123.18  education-related child care costs paid and shall allocate the 
123.19  costs to each parent in proportion to each parent's net income, 
123.20  as determined under this subdivision, after the transfer of 
123.21  child support and spousal maintenance, unless the allocation 
123.22  would be substantially unfair to either parent.  There is a 
123.23  presumption of substantial unfairness if after the sum total of 
123.24  child support, spousal maintenance, and child care costs is 
123.25  subtracted from the noncustodial parent's income, the income is 
123.26  at or below 100 percent of the federal poverty guidelines.  The 
123.27  cost of child care for purposes of this paragraph is 75 percent 
123.28  of the actual cost paid for child care, to reflect the 
123.29  approximate value of state and federal tax credits available to 
123.30  the custodial parent.  The actual cost paid for child care is 
123.31  the total amount received by the child care provider for the 
123.32  child or children of the obligor from the obligee or any public 
123.33  agency.  The court shall require verification of employment or 
123.34  school attendance and documentation of child care expenses from 
123.35  the obligee and the public agency, if applicable.  If child care 
123.36  expenses fluctuate during the year because of seasonal 
124.1   employment or school attendance of the obligee or extended 
124.2   periods of visitation with the obligor, the court shall 
124.3   determine child care expenses based on an average monthly cost.  
124.4   The amount allocated for child care expenses is considered child 
124.5   support but is not subject to a cost-of-living adjustment under 
124.6   section 518.641.  The amount allocated for child care expenses 
124.7   terminates when either party notifies the public authority that 
124.8   the child care costs have ended and without any legal action on 
124.9   the part of either party.  The public authority shall verify the 
124.10  information received under this provision before authorizing 
124.11  termination.  The termination is effective as of the date of the 
124.12  notification.  In other cases where there is a substantial 
124.13  increase or decrease in child care expenses, the parties may 
124.14  modify the order under section 518.64. 
124.15     The court may allow the noncustodial parent to care for the 
124.16  child while the custodial parent is working, as provided in 
124.17  section 518.175, subdivision 8.  Allowing the noncustodial 
124.18  parent to care for the child under section 518.175, subdivision 
124.19  8, is not a reason to deviate from the guidelines. 
124.20     (c) In addition to the child support guidelines, the court 
124.21  shall take into consideration the following factors in setting 
124.22  or modifying child support or in determining whether to deviate 
124.23  from the guidelines: 
124.24     (1) all earnings, income, and resources of the parents, 
124.25  including real and personal property, but excluding income from 
124.26  excess employment of the obligor or obligee that meets the 
124.27  criteria of paragraph (b), clause (2)(ii); 
124.28     (2) the financial needs and resources, physical and 
124.29  emotional condition, and educational needs of the child or 
124.30  children to be supported; 
124.31     (3) the standard of living the child would have enjoyed had 
124.32  the marriage not been dissolved, but recognizing that the 
124.33  parents now have separate households; 
124.34     (4) which parent receives the income taxation dependency 
124.35  exemption and what financial benefit the parent receives from 
124.36  it; 
125.1      (5) the parents' debts as provided in paragraph (d); and 
125.2      (6) the obligor's receipt of public assistance under the 
125.3   AFDC program formerly codified under sections 256.72 to 256.82 
125.4   or 256B.01 to 256B.40 and chapter 256J or 256K.  
125.5      (d) In establishing or modifying a support obligation, the 
125.6   court may consider debts owed to private creditors, but only if: 
125.7      (1) the right to support has not been assigned under 
125.8   section 256.74 256.741; 
125.9      (2) the court determines that the debt was reasonably 
125.10  incurred for necessary support of the child or parent or for the 
125.11  necessary generation of income.  If the debt was incurred for 
125.12  the necessary generation of income, the court shall consider 
125.13  only the amount of debt that is essential to the continuing 
125.14  generation of income; and 
125.15     (3) the party requesting a departure produces a sworn 
125.16  schedule of the debts, with supporting documentation, showing 
125.17  goods or services purchased, the recipient of them, the amount 
125.18  of the original debt, the outstanding balance, the monthly 
125.19  payment, and the number of months until the debt will be fully 
125.20  paid. 
125.21     (e) Any schedule prepared under paragraph (d), clause (3), 
125.22  shall contain a statement that the debt will be fully paid after 
125.23  the number of months shown in the schedule, barring emergencies 
125.24  beyond the party's control.  
125.25     (f) Any further departure below the guidelines that is 
125.26  based on a consideration of debts owed to private creditors 
125.27  shall not exceed 18 months in duration, after which the support 
125.28  shall increase automatically to the level ordered by the court.  
125.29  Nothing in this section shall be construed to prohibit one or 
125.30  more step increases in support to reflect debt retirement during 
125.31  the 18-month period.  
125.32     (g) If payment of debt is ordered pursuant to this section, 
125.33  the payment shall be ordered to be in the nature of child 
125.34  support.  
125.35     (h) Nothing shall preclude the court from receiving 
125.36  evidence on the above factors to determine if the guidelines 
126.1   should be exceeded or modified in a particular case.  
126.2      (i) The guidelines in this subdivision are a rebuttable 
126.3   presumption and shall be used in all cases when establishing or 
126.4   modifying child support.  If the court does not deviate from the 
126.5   guidelines, the court shall make written findings concerning the 
126.6   amount of the obligor's income used as the basis for the 
126.7   guidelines calculation and any other significant evidentiary 
126.8   factors affecting the determination of child support.  If the 
126.9   court deviates from the guidelines, the court shall make written 
126.10  findings giving the amount of support calculated under the 
126.11  guidelines, the reasons for the deviation, and shall 
126.12  specifically address the criteria in paragraph (c) and how the 
126.13  deviation serves the best interest of the child.  The court may 
126.14  deviate from the guidelines if both parties agree and the court 
126.15  makes written findings that it is in the best interests of the 
126.16  child, except that in cases where child support payments are 
126.17  assigned to the public agency under section 256.74 256.741, the 
126.18  court may deviate downward only as provided in paragraph (j).  
126.19  Nothing in this paragraph prohibits the court from deviating in 
126.20  other cases.  The provisions of this paragraph apply whether or 
126.21  not the parties are each represented by independent counsel and 
126.22  have entered into a written agreement.  The court shall review 
126.23  stipulations presented to it for conformity to the guidelines 
126.24  and the court is not required to conduct a hearing, but the 
126.25  parties shall provide the documentation of earnings required 
126.26  under subdivision 5b. 
126.27     (j) If the child support payments are assigned to the 
126.28  public agency under section 256.74 256.741, the court may not 
126.29  deviate downward from the child support guidelines unless the 
126.30  court specifically finds that the failure to deviate downward 
126.31  would impose an extreme hardship on the obligor. 
126.32     (k) The dollar amount of the income limit for application 
126.33  of the guidelines must be adjusted on July 1 of every 
126.34  even-numbered year to reflect cost-of-living changes.  The 
126.35  supreme court shall select the index for the adjustment from the 
126.36  indices listed in section 518.641.  The state court 
127.1   administrator shall make the changes in the dollar amount 
127.2   required by this paragraph available to courts and the public on 
127.3   or before April 30 of the year in which the amount is to change. 
127.4      (l) In establishing or modifying child support, if a child 
127.5   receives a child's insurance benefit under United States Code, 
127.6   title 42, section 402, because the obligor is entitled to old 
127.7   age or disability insurance benefits, the amount of support 
127.8   ordered shall be offset by the amount of the child's benefit.  
127.9   The court shall make findings regarding the obligor's income 
127.10  from all sources, the child support amount calculated under this 
127.11  section, the amount of the child's benefit, and the obligor's 
127.12  child support obligation.  Any benefit received by the child in 
127.13  a given month in excess of the child support obligation shall 
127.14  not be treated as an arrearage payment or a future payment. 
127.15     Sec. 135.  Minnesota Statutes 1998, section 518.57, 
127.16  subdivision 3, is amended to read: 
127.17     Subd. 3.  [SATISFACTION OF CHILD SUPPORT OBLIGATION.] The 
127.18  court may conclude that an obligor has satisfied a child support 
127.19  obligation by providing a home, care, and support for the child 
127.20  while the child is living with the obligor, if the court finds 
127.21  that the child was integrated into the family of the obligor 
127.22  with the consent of the obligee and child support payments were 
127.23  not assigned to the public agency under section 256.74 or 
127.24  256.741. 
127.25     Sec. 136.  Minnesota Statutes 1998, section 518.614, 
127.26  subdivision 3, is amended to read: 
127.27     Subd. 3.  [DUTIES OF PUBLIC AUTHORITY.] Within three 
127.28  working days of receipt of sums released under subdivision 2, 
127.29  the public authority shall remit to the obligee all amounts not 
127.30  assigned under section 256.74 256.741 as current support or 
127.31  maintenance.  The public authority shall also serve a copy of 
127.32  the court's order and the provisions of section 518.6111 and 
127.33  this section on the obligor's employer or other payor of funds 
127.34  unless within 15 days after mailing of the notice of intent to 
127.35  implement income withholding the obligor requests a hearing on 
127.36  the issue of whether payment was in default as of the date of 
128.1   the notice of default and serves notice of the request for 
128.2   hearing on the public authority and the obligee.  The public 
128.3   authority shall instruct the employer or payor of funds pursuant 
128.4   to section 518.6111 as to the effective date on which the next 
128.5   support or maintenance payment is due.  The withholding process 
128.6   must begin on said date and shall reflect the total credits of 
128.7   principal and interest amounts received from the escrow account. 
128.8      Sec. 137.  Minnesota Statutes 1998, section 518.64, 
128.9   subdivision 2, is amended to read: 
128.10     Subd. 2.  [MODIFICATION.] (a) The terms of an order 
128.11  respecting maintenance or support may be modified upon a showing 
128.12  of one or more of the following:  (1) substantially increased or 
128.13  decreased earnings of a party; (2) substantially increased or 
128.14  decreased need of a party or the child or children that are the 
128.15  subject of these proceedings; (3) receipt of assistance 
128.16  under the AFDC program formerly codified under sections 256.72 
128.17  to 256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a 
128.18  change in the cost of living for either party as measured by the 
128.19  federal bureau of statistics, any of which makes the terms 
128.20  unreasonable and unfair; (5) extraordinary medical expenses of 
128.21  the child not provided for under section 518.171; or (6) the 
128.22  addition of work-related or education-related child care 
128.23  expenses of the obligee or a substantial increase or decrease in 
128.24  existing work-related or education-related child care expenses.  
128.25     On a motion to modify support, the needs of any child the 
128.26  obligor has after the entry of the support order that is the 
128.27  subject of a modification motion shall be considered as provided 
128.28  by section 518.551, subdivision 5f. 
128.29     (b) It is presumed that there has been a substantial change 
128.30  in circumstances under paragraph (a) and the terms of a current 
128.31  support order shall be rebuttably presumed to be unreasonable 
128.32  and unfair if: 
128.33     (1) the application of the child support guidelines in 
128.34  section 518.551, subdivision 5, to the current circumstances of 
128.35  the parties results in a calculated court order that is at least 
128.36  20 percent and at least $50 per month higher or lower than the 
129.1   current support order; 
129.2      (2) the medical support provisions of the order established 
129.3   under section 518.171 are not enforceable by the public 
129.4   authority or the custodial parent; 
129.5      (3) health coverage ordered under section 518.171 is not 
129.6   available to the child for whom the order is established by the 
129.7   parent ordered to provide; or 
129.8      (4) the existing support obligation is in the form of a 
129.9   statement of percentage and not a specific dollar amount.  
129.10     (c) On a motion for modification of maintenance, including 
129.11  a motion for the extension of the duration of a maintenance 
129.12  award, the court shall apply, in addition to all other relevant 
129.13  factors, the factors for an award of maintenance under section 
129.14  518.552 that exist at the time of the motion.  On a motion for 
129.15  modification of support, the court:  
129.16     (1) shall apply section 518.551, subdivision 5, and shall 
129.17  not consider the financial circumstances of each party's spouse, 
129.18  if any; and 
129.19     (2) shall not consider compensation received by a party for 
129.20  employment in excess of a 40-hour work week, provided that the 
129.21  party demonstrates, and the court finds, that: 
129.22     (i) the excess employment began after entry of the existing 
129.23  support order; 
129.24     (ii) the excess employment is voluntary and not a condition 
129.25  of employment; 
129.26     (iii) the excess employment is in the nature of additional, 
129.27  part-time employment, or overtime employment compensable by the 
129.28  hour or fractions of an hour; 
129.29     (iv) the party's compensation structure has not been 
129.30  changed for the purpose of affecting a support or maintenance 
129.31  obligation; 
129.32     (v) in the case of an obligor, current child support 
129.33  payments are at least equal to the guidelines amount based on 
129.34  income not excluded under this clause; and 
129.35     (vi) in the case of an obligor who is in arrears in child 
129.36  support payments to the obligee, any net income from excess 
130.1   employment must be used to pay the arrearages until the 
130.2   arrearages are paid in full. 
130.3      (d) A modification of support or maintenance may be made 
130.4   retroactive only with respect to any period during which the 
130.5   petitioning party has pending a motion for modification but only 
130.6   from the date of service of notice of the motion on the 
130.7   responding party and on the public authority if public 
130.8   assistance is being furnished or the county attorney is the 
130.9   attorney of record.  However, modification may be applied to an 
130.10  earlier period if the court makes express findings that:  
130.11     (1) the party seeking modification was precluded from 
130.12  serving a motion by reason of a significant physical or mental 
130.13  disability, a material misrepresentation of another party, or 
130.14  fraud upon the court and that the party seeking modification, 
130.15  when no longer precluded, promptly served a motion; 
130.16     (2) the party seeking modification was a recipient of 
130.17  federal Supplemental Security Income (SSI), Title II Older 
130.18  Americans, Survivor's Disability Insurance (OASDI), other 
130.19  disability benefits, or public assistance based upon need during 
130.20  the period for which retroactive modification is sought; or 
130.21     (3) the order for which the party seeks amendment was 
130.22  entered by default, the party shows good cause for not 
130.23  appearing, and the record contains no factual evidence, or 
130.24  clearly erroneous evidence regarding the individual obligor's 
130.25  ability to pay.  
130.26     The court may provide that a reduction in the amount 
130.27  allocated for child care expenses based on a substantial 
130.28  decrease in the expenses is effective as of the date the 
130.29  expenses decreased. 
130.30     (e) Except for an award of the right of occupancy of the 
130.31  homestead, provided in section 518.63, all divisions of real and 
130.32  personal property provided by section 518.58 shall be final, and 
130.33  may be revoked or modified only where the court finds the 
130.34  existence of conditions that justify reopening a judgment under 
130.35  the laws of this state, including motions under section 518.145, 
130.36  subdivision 2.  The court may impose a lien or charge on the 
131.1   divided property at any time while the property, or subsequently 
131.2   acquired property, is owned by the parties or either of them, 
131.3   for the payment of maintenance or support money, or may 
131.4   sequester the property as is provided by section 518.24. 
131.5      (f) The court need not hold an evidentiary hearing on a 
131.6   motion for modification of maintenance or support. 
131.7      (g) Section 518.14 shall govern the award of attorney fees 
131.8   for motions brought under this subdivision. 
131.9      Sec. 138.  Minnesota Statutes 1998, section 548.13, is 
131.10  amended to read: 
131.11     548.13 [ASSIGNMENT OF JUDGMENT; MODE AND EFFECT.] 
131.12     Every assignment of a judgment shall be in writing, signed 
131.13  and acknowledged by the assignor, except that written notice of 
131.14  assignment shall be sufficient in the case of assignment under 
131.15  section 256.74 256.741.  No assignment shall be valid as against 
131.16  a subsequent purchaser of the judgment in good faith for value, 
131.17  or against a creditor levying upon or attaching the same, unless 
131.18  it is filed with the court administrator and an entry is made in 
131.19  the docket.  When filed and entered, no one but the assignee, 
131.20  the assignee's agent, or attorney, shall be authorized to 
131.21  collect or enforce the judgment; provided, that the lien of an 
131.22  attorney on the judgment shall not be affected by the assignment.
131.23     Sec. 139.  Minnesota Statutes 1998, section 550.136, 
131.24  subdivision 6, is amended to read: 
131.25     Subd. 6.  [EARNINGS EXEMPTION NOTICE.] Before the first 
131.26  levy on earnings under this chapter, the judgment creditor shall 
131.27  serve upon the judgment debtor no less than ten days before the 
131.28  service of the writ of execution, a notice that the writ of 
131.29  execution may be served on the judgment debtor's employer.  The 
131.30  notice must:  (1) be substantially in the form set forth below; 
131.31  (2) be served personally, in the manner of a summons and 
131.32  complaint, or by first class mail to the last known address of 
131.33  the judgment debtor; (3) inform the judgment debtor that an 
131.34  execution levy may be served on the judgment debtor's employer 
131.35  in ten days, and that the judgment debtor may, within that time, 
131.36  cause to be served on the judgment creditor a signed statement 
132.1   under penalties of perjury asserting an entitlement to an 
132.2   exemption from execution; (4) inform the judgment debtor of the 
132.3   earnings exemptions contained in section 550.37, subdivision 14; 
132.4   and (5) advise the judgment debtor of the relief set forth in 
132.5   this chapter to which the debtor may be entitled if a judgment 
132.6   creditor in bad faith disregards a valid claim and the fee, 
132.7   costs, and penalty that may be assessed against a judgment 
132.8   debtor who in bad faith falsely claims an exemption or in bad 
132.9   faith takes action to frustrate the execution process.  The 
132.10  notice requirement of this subdivision does not apply to a levy 
132.11  on earnings being retained by an employer pursuant to a 
132.12  garnishment previously served in compliance with chapter 571.  
132.13     The ten-day notice informing a judgment debtor that a writ 
132.14  of execution may be used to levy the earnings of an individual 
132.15  must be substantially in the following form: 
132.16  STATE OF MINNESOTA                             DISTRICT COURT
132.17  COUNTY OF .............         ........... JUDICIAL DISTRICT
132.18  .............(Judgment Creditor)
132.19  against
132.20                                        EXECUTION EXEMPTION 
132.21  .............(Judgment Debtor)        NOTICE AND NOTICE OF 
132.22  and                                   INTENT TO LEVY ON EARNINGS 
132.23                                        WITHIN TEN DAYS
132.24  .............(Third Party)
132.25     PLEASE TAKE NOTICE that a levy may be served upon your 
132.26  employer or other third parties, without any further court 
132.27  proceedings or notice to you, ten days or more from the date 
132.28  hereof.  Your earnings are completely exempt from execution levy 
132.29  if you are now a recipient of relief based on need, if you have 
132.30  been a recipient of relief within the last six months, or if you 
132.31  have been an inmate of a correctional institution in the last 
132.32  six months. 
132.33     Relief based on need includes Aid to Families with 
132.34  Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA) 
132.35  Minnesota family investment program, Emergency Assistance (EA), 
132.36  work first, Medical Assistance (MA), General Assistance (GA), 
133.1   General Assistance Medical Care (GAMC), Emergency General 
133.2   Assistance (EGA), Work Readiness, Minnesota Supplemental Aid 
133.3   (MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 
133.4   Income (SSI), and Energy Assistance. 
133.5      If you wish to claim an exemption, you should fill out the 
133.6   appropriate form below, sign it, and send it to the judgment 
133.7   creditor's attorney. 
133.8      You may wish to contact the attorney for the judgment 
133.9   creditor in order to arrange for a settlement of the debt or 
133.10  contact an attorney to advise you about exemptions or other 
133.11  rights. 
133.12                             PENALTIES
133.13     (1) Be advised that even if you claim an exemption, an 
133.14     execution levy may still be served on your employer.  If 
133.15     your earnings are levied on after you claim an exemption, 
133.16     you may petition the court for a determination of your 
133.17     exemption.  If the court finds that the judgment creditor 
133.18     disregarded your claim of exemption in bad faith, you will 
133.19     be entitled to costs, reasonable attorney fees, actual 
133.20     damages, and an amount not to exceed $100. 
133.21     (2) HOWEVER, BE WARNED if you claim an exemption, the 
133.22     judgment creditor can also petition the court for a 
133.23     determination of your exemption, and if the court finds 
133.24     that you claimed an exemption in bad faith, you will be 
133.25     assessed costs and reasonable attorney's fees plus an 
133.26     amount not to exceed $100. 
133.27     (3) If after receipt of this notice, you in bad faith take 
133.28     action to frustrate the execution levy, thus requiring the 
133.29     judgment creditor to petition the court to resolve the 
133.30     problem, you will be liable to the judgment creditor for 
133.31     costs and reasonable attorney's fees plus an amount not to 
133.32     exceed $100. 
133.33  DATED:  ............           ........................
133.34                                 (Attorney for Judgment Creditor)
133.35                                 ........................
133.36                                 Address
134.1                                  ........................
134.2                                  Telephone
134.3               JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE
134.4      I hereby claim that my earnings are exempt from execution 
134.5   because: 
134.6      (1) I am presently a recipient of relief based on need. 
134.7      (Specify the program, case number, and the county from 
134.8      which relief is being received.) 
134.9   ................    ......................   ...............
134.10  Program             Case Number (if known)   County
134.11     (2) I am not now receiving relief based on need, but I have 
134.12     received relief based on need within the last six months.  
134.13     (Specify the program, case number, and the county from 
134.14     which relief has been received.) 
134.15  ................    ......................   ...............
134.16  Program             Case Number (if known)   County
134.17     (3) I have been an inmate of a correctional institution 
134.18     within the last six months.  (Specify the correctional 
134.19     institution and location.) 
134.20  ...........................       ..........................
134.21  Correctional Institution          Location
134.22     I hereby authorize any agency that has distributed relief 
134.23  to me or any correctional institution in which I was an inmate 
134.24  to disclose to the above-named judgment creditor or the judgment 
134.25  creditor's attorney only whether or not I am or have been a 
134.26  recipient of relief based on need or an inmate of a correctional 
134.27  institution within the last six months.  I have mailed or 
134.28  delivered a copy of this form to the judgment creditor or 
134.29  judgment creditor's attorney. 
134.30  ...........................          .........................
134.31                                       Debtor
134.32                                       .........................
134.33                                       Address
134.34     Sec. 140.  Minnesota Statutes 1998, section 550.143, 
134.35  subdivision 3, is amended to read: 
134.36     Subd. 3.  [EXEMPTION NOTICE.] If the levy is on funds of a 
135.1   judgment debtor who is a natural person and if the funds to be 
135.2   levied are held on deposit at any financial institution, the 
135.3   judgment creditor or its attorney shall provide the sheriff with 
135.4   two copies of an exemption notice, which must be substantially 
135.5   in the form set forth below.  The sheriff shall serve both 
135.6   copies of the exemption notice on the financial institution, 
135.7   along with the writ of execution.  Failure of the sheriff to 
135.8   serve the exemption notices renders the levy void, and the 
135.9   financial institution shall take no action.  However, if this 
135.10  subdivision is being used to execute on funds that have 
135.11  previously been garnished in compliance with section 571.71, the 
135.12  judgment creditor is not required to serve additional exemption 
135.13  notices.  In that event, the execution levy shall only be 
135.14  effective as to the funds that were subject to the prior 
135.15  garnishment.  Upon receipt of the writ of execution and 
135.16  exemption notices, the financial institution shall retain as 
135.17  much of the amount due under section 550.04 as the financial 
135.18  institution has on deposit owing to the judgment debtor, but not 
135.19  more than 110 percent of the amount remaining due on the 
135.20  judgment.  
135.21  STATE OF MINNESOTA                             DISTRICT COURT
135.22  COUNTY OF ................       .......... JUDICIAL DISTRICT
135.23  .............(Judgment Creditor) 
135.24  .............(Judgment Debtor) 
135.25  TO:  Debtor                                  EXEMPTION NOTICE 
135.26     An order for attachment, garnishment summons, or levy of 
135.27  execution (strike inapplicable language) has been served on 
135.28  ............. (Bank or other financial institution where you 
135.29  have an account.)  
135.30     Your account balance is $........  
135.31     The amount being held is $........  
135.32     However, all or a portion of the funds in your account will 
135.33  normally be exempt from creditors' claims if they are in one of 
135.34  the following categories:  
135.35     (1) relief based on need.  This includes:  Aid to Families 
135.36  with Dependent Children (AFDC), AFDC-Emergency Assistance 
136.1   (AFDC-EA) the Minnesota family investment program, Emergency 
136.2   Assistance (EA), work first program, Medical Assistance (MA), 
136.3   General Assistance (GA), General Assistance Medical Care (GAMC), 
136.4   Emergency General Assistance (EGA), Work Readiness, Minnesota 
136.5   Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA), 
136.6   Supplemental Security Income (SSI), and Energy Assistance; 
136.7      (2) Social Security benefits (Old Age, Survivors, or 
136.8   Disability Insurance); 
136.9      (3) reemployment insurance, workers' compensation, or 
136.10  veterans' benefits; 
136.11     (4) an accident, disability, or retirement pension or 
136.12  annuity; 
136.13     (5) life insurance proceeds; 
136.14     (6) the earnings of your minor child and any child support 
136.15  paid to you; or 
136.16     (7) money from a claim for damage or destruction of exempt 
136.17  property (such as household goods, farm tools, business 
136.18  equipment, a mobile home, or a car).  
136.19     The following funds are also exempt: 
136.20     (8) all earnings of a person in category (1); 
136.21     (9) all earnings of a person who has received relief based 
136.22  on need, or who has been an inmate of a correctional 
136.23  institution, within the last six months; 
136.24     (10) 75 percent of every debtor's after tax earnings; and 
136.25     (11) all of a judgment debtor's after tax earnings below 40 
136.26  times the federal minimum wage. 
136.27     TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:  
136.28     Categories (10) and (11):  20 days 
136.29     Categories (8) and (9):  60 days 
136.30     All others:  no time limit, as long as funds are traceable 
136.31  to the exempt source.  (In tracing funds, the first-in, 
136.32  first-out method is used.  This means money deposited first is 
136.33  spent first.)  The money being sought by the judgment creditor 
136.34  is being held in your account to give you a chance to claim an 
136.35  exemption. 
136.36     TO CLAIM AN EXEMPTION:  
137.1      Fill out, sign, and mail or deliver one copy of the 
137.2   attached exemption claim form to the institution which sent you 
137.3   this notice and mail or deliver one copy to the judgment 
137.4   creditor's attorney.  In the event that there is no attorney for 
137.5   the judgment creditor, then the notice shall be sent directly to 
137.6   the judgment creditor.  The address for the judgment creditor's 
137.7   attorney or the judgment creditor is set forth below.  Both 
137.8   copies must be mailed or delivered on the same day. 
137.9      If the financial institution does not get the exemption 
137.10  claim back from you within 14 days of the date they mailed or 
137.11  gave it to you, they will be free to turn the money over to the 
137.12  sheriff or the judgment creditor.  If you are going to claim an 
137.13  exemption, do so as soon as possible, because your money may be 
137.14  held until it is decided. 
137.15     IF YOU CLAIM AN EXEMPTION:  
137.16     (1) nonexempt money can be turned over to the judgment 
137.17  creditor or sheriff; 
137.18     (2) the financial institution will keep holding the money 
137.19  claimed to be exempt; and 
137.20     (3) seven days after receiving your exemption claim, the 
137.21  financial institution will release the money to you unless 
137.22  before then it receives an objection to your exemption claim.  
137.23     IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 
137.24     the institution will hold the money until a court decides 
137.25  if your exemption claim is valid, BUT ONLY IF the institution 
137.26  gets a copy of your court motion papers asserting the exemption 
137.27  WITHIN TEN DAYS after the objection is mailed or given to you.  
137.28  You may wish to consult an attorney at once if the creditor 
137.29  objects to your exemption claim.  
137.30     MOTION TO DETERMINE EXEMPTION:  
137.31     At any time after your funds have been held, you may ask 
137.32  for a court decision on the validity of your exemption claim by 
137.33  filing a request for hearing which may be obtained at the office 
137.34  of the court administrator of the above court. 
137.35     PENALTIES:  
137.36     If you claim an exemption in bad faith, or if the judgment 
138.1   creditor wrongly objects to an exemption in bad faith, the court 
138.2   may order the person who acted in bad faith to pay costs, actual 
138.3   damages, attorney fees, and an additional amount of up to $100.  
138.4                                 ............................. 
138.5                                 ............................. 
138.6                                 ............................. 
138.7                                 ............................. 
138.8                                 Name and address of (Attorney 
138.9                                 for) Judgment Creditor
138.10     EXEMPTION:  
138.11     (a) Amount of exemption claim.  
138.12     / / I claim ALL the funds being held are exempt.  
138.13     / / I claim SOME of the funds being held are exempt.  
138.14           The exempt amount is $............  
138.15     (b) Basis for exemption.  
138.16     Of the 11 categories listed above, I am in category number 
138.17  ............  (If more than one category applies, you may fill 
138.18  in as many as apply.)  The source of the exempt funds is the 
138.19  following:  
138.20  .............................................................
138.21  .............................................................
138.22  .............................................................
138.23     (If the source is a type of relief based on need, list the 
138.24  case number and county:  
138.25     case number:  ...............; 
138.26     county:  ....................) 
138.27     I hereby authorize any agency that has distributed relief 
138.28  to me or any correctional institution in which I was an inmate 
138.29  to disclose to the above named creditor or its attorney only 
138.30  whether or not I am or have been a recipient of relief based on 
138.31  need or an inmate of a correctional institute within the last 
138.32  six months.  
138.33     I have mailed or delivered a copy of the exemption notice 
138.34  to the judgment creditor or judgment creditor's attorney if 
138.35  represented. 
138.36                               .............................
139.1                                DEBTOR
139.2   DATED:  .............        .............................
139.3                                .............................
139.4                                .............................
139.5                                DEBTOR ADDRESS 
139.6      Sec. 141.  Minnesota Statutes 1998, section 550.37, 
139.7   subdivision 14, is amended to read: 
139.8      Subd. 14.  [PUBLIC ASSISTANCE.] All relief based on need, 
139.9   and the earnings or salary of a person who is a recipient of 
139.10  relief based on need, shall be exempt from all claims of 
139.11  creditors including any contractual setoff or security interest 
139.12  asserted by a financial institution.  For the purposes of this 
139.13  chapter, relief based on need includes AFDC, MFIP, MFIP-R, 
139.14  MFIP-S, work first, general assistance medical care, 
139.15  supplemental security income, medical assistance, Minnesota 
139.16  supplemental assistance, and general assistance.  The salary or 
139.17  earnings of any debtor who is or has been an eligible recipient 
139.18  of relief based on need, or an inmate of a correctional 
139.19  institution shall, upon the debtor's return to private 
139.20  employment or farming after having been an eligible recipient of 
139.21  relief based on need, or an inmate of a correctional 
139.22  institution, be exempt from attachment, garnishment, or levy of 
139.23  execution for a period of six months after the debtor's return 
139.24  to employment or farming and after all public assistance for 
139.25  which eligibility existed has been terminated.  The exemption 
139.26  provisions contained in this subdivision also apply for 60 days 
139.27  after deposit in any financial institution, whether in a single 
139.28  or joint account.  In tracing the funds, the first-in first-out 
139.29  method of accounting shall be used.  The burden of establishing 
139.30  that funds are exempt rests upon the debtor.  Agencies 
139.31  distributing relief and the correctional institutions shall, at 
139.32  the request of creditors, inform them whether or not any debtor 
139.33  has been an eligible recipient of relief based on need, or an 
139.34  inmate of a correctional institution, within the preceding six 
139.35  months. 
139.36     Sec. 142.  Minnesota Statutes 1998, section 551.05, 
140.1   subdivision 1a, is amended to read: 
140.2      Subd. 1a.  [EXEMPTION NOTICE.] If the writ of execution is 
140.3   being used by the attorney to levy funds of a judgment debtor 
140.4   who is a natural person and if the funds to be levied are held 
140.5   on deposit at any financial institution, the attorney for the 
140.6   judgment creditor shall serve with the writ of execution two 
140.7   copies of an exemption notice.  The notice must be substantially 
140.8   in the form set forth below.  Failure of the attorney for the 
140.9   judgment creditor to send the exemption notice renders the 
140.10  execution levy void, and the financial institution shall take no 
140.11  action.  However, if this subdivision is being used to execute 
140.12  on funds that have previously been garnished in compliance with 
140.13  section 571.71, the attorney for judgment creditor is not 
140.14  required to serve an additional exemption notice.  In that 
140.15  event, the execution levy shall only be effective as to the 
140.16  funds that were subject to the prior garnishment.  Upon receipt 
140.17  of the writ of execution and exemption notices, the financial 
140.18  institution shall retain as much of the amount due under section 
140.19  550.04 as the financial institution has on deposit owing to the 
140.20  judgment debtor, but not more than 100 percent of the amount 
140.21  remaining due on the judgment, or $5,000, whichever is less.  
140.22     The notice informing a judgment debtor that an execution 
140.23  levy has been used to attach funds of the judgment debtor to 
140.24  satisfy a claim must be substantially in the following form: 
140.25     
140.26  STATE OF MINNESOTA                             DISTRICT COURT 
140.27  County of ................         .........JUDICIAL DISTRICT 
140.28  ................(Judgment Creditor)
140.29  ................(Judgment Debtor) 
140.30  TO:  Judgment Debtor                 EXEMPTION NOTICE 
140.31     An order for attachment, garnishment summons, or levy of 
140.32  execution (strike inapplicable language) has been served on 
140.33  ............. (bank or other financial institution where you 
140.34  have an account).  
140.35     Your account balance is $........  
140.36     The amount being held is $........  
141.1      However, all or a portion of the funds in your account will 
141.2   normally be exempt from creditors' claims if they are in one of 
141.3   the following categories:  
141.4      (1) relief based on need.  This includes:  Aid to Families 
141.5   with Dependent Children (AFDC), AFDC-Emergency Assistance 
141.6   (AFDC-EA) the Minnesota family investment program (MFIP), work 
141.7   first program, Medical Assistance (MA), General Assistance (GA), 
141.8   General Assistance Medical Care (GAMC), Emergency General 
141.9   Assistance (EGA), Work Readiness, Minnesota Supplemental Aid 
141.10  (MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 
141.11  Income (SSI), and Energy Assistance; 
141.12     (2) Social Security benefits (Old Age, Survivors, or 
141.13  Disability Insurance); 
141.14     (3) reemployment insurance, workers' compensation, or 
141.15  veterans' benefits; 
141.16     (4) an accident, disability, or retirement pension or 
141.17  annuity; 
141.18     (5) life insurance proceeds; 
141.19     (6) the earnings of your minor child and any child support 
141.20  paid to you; or 
141.21     (7) money from a claim for damage or destruction of exempt 
141.22  property (such as household goods, farm tools, business 
141.23  equipment, a mobile home, or a car).  
141.24     The following funds are also exempt: 
141.25     (8) all earnings of a person in category (1); 
141.26     (9) all earnings of a person who has received relief based 
141.27  on need, or who has been an inmate of a correctional 
141.28  institution, within the last six months; 
141.29     (10) 75 percent of every judgment debtor's after tax 
141.30  earnings; or 
141.31     (11) all of a judgment debtor's after tax earnings below 40 
141.32  times the federal minimum wage.  
141.33     TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:  
141.34     Categories (10) and (11):  20 days 
141.35     Categories (8) and (9):  60 days 
141.36     All others:  no time limit, as long as funds are traceable 
142.1   to the exempt source.  (In tracing funds, the first-in, 
142.2   first-out method is used.  This means money deposited first is 
142.3   spent first.)  The money being sought by the judgment creditor 
142.4   is being held in your account to give you a chance to claim an 
142.5   exemption. 
142.6      TO CLAIM AN EXEMPTION:  
142.7      Fill out, sign, and mail or deliver one copy of the 
142.8   attached exemption claim form to the institution which sent you 
142.9   this notice and mail or deliver one copy to the judgment 
142.10  creditor's attorney.  The address for the judgment creditor's 
142.11  attorney is set forth below.  Both copies must be mailed or 
142.12  delivered on the same day.  
142.13     If they do not get the exemption claim back from you within 
142.14  14 days of the date they mailed or gave it to you, they will be 
142.15  free to turn the money over to the attorney for the judgment 
142.16  creditor.  If you are going to claim an exemption, do so as soon 
142.17  as possible, because your money may be held until it is decided. 
142.18     IF YOU CLAIM AN EXEMPTION:  
142.19     (1) nonexempt money can be turned over to the judgment 
142.20  creditor or sheriff; 
142.21     (2) the financial institution will keep holding the money 
142.22  claimed to be exempt; and 
142.23     (3) seven days after receiving your exemption claim, the 
142.24  financial institution will release the money to you unless 
142.25  before then it receives an objection to your exemption claim.  
142.26     IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 
142.27     the institution will hold the money until a court decides 
142.28  if your exemption claim is valid, BUT ONLY IF the institution 
142.29  gets a copy of your court motion papers asserting the exemption 
142.30  WITHIN TEN DAYS after the objection is mailed or given to you.  
142.31  You may wish to consult an attorney at once if the judgment 
142.32  creditor objects to your exemption claim.  
142.33     MOTION TO DETERMINE EXEMPTION:  
142.34     At any time after your funds have been held, you may ask 
142.35  for a court decision on the validity of your exemption claim by 
142.36  filing a request for hearing which may be obtained at the office 
143.1   of the court administrator of the above court. 
143.2      PENALTIES:  
143.3      If you claim an exemption in bad faith, or if the judgment 
143.4   creditor wrongly objects to an exemption in bad faith, the court 
143.5   may order the person who acted in bad faith to pay costs, actual 
143.6   damages, attorney fees, and an additional amount of up to $100.  
143.7                                  ............................. 
143.8                                  ............................. 
143.9                                  ............................. 
143.10                                 ............................. 
143.11                                 Name and address of (Attorney 
143.12                                 for) Judgment Creditor 
143.13     EXEMPTION:  
143.14     (a) Amount of exemption claim.  
143.15     / / I claim ALL the funds being held are exempt.  
143.16     / / I claim SOME of the funds being held are exempt.  
143.17           The exempt amount is $............  
143.18     (b) Basis for exemption.  
143.19     Of the 11 categories listed above, I am in category number 
143.20  ............  (If more than one category applies, you may fill 
143.21  in as many as apply.)  The source of the exempt funds is the 
143.22  following:  
143.23  .............................................................
143.24  .............................................................
143.25  .............................................................
143.26     (If the source is a type of relief based on need, list the 
143.27  case number and county:  
143.28     case number:  ...............; 
143.29     county:  ....................) 
143.30     I hereby authorize any agency that has distributed relief 
143.31  to me or any correctional institution in which I was an inmate 
143.32  to disclose to the above named judgment creditor's attorney only 
143.33  whether or not I am or have been a recipient of relief based on 
143.34  need or an inmate of a correctional institute within the last 
143.35  six months.  
143.36     I have mailed or delivered a copy of the exemption notice 
144.1   to the judgment creditor's attorney.  
144.2                                .............................
144.3                                DEBTOR
144.4   DATED:  .............        .............................
144.5                                .............................
144.6                                .............................
144.7                                DEBTOR ADDRESS
144.8      Sec. 143.  Minnesota Statutes 1998, section 551.06, 
144.9   subdivision 6, is amended to read: 
144.10     Subd. 6.  [EARNINGS EXEMPTION NOTICE.] Before the first 
144.11  levy on earnings, the attorney for the judgment creditor shall 
144.12  serve upon the judgment debtor no less than ten days before the 
144.13  service of the writ of execution, a notice that the writ of 
144.14  execution may be served on the judgment debtor's employer.  The 
144.15  notice must:  (1) be substantially in the form set forth below; 
144.16  (2) be served personally, in the manner of a summons and 
144.17  complaint, or by first class mail to the last known address of 
144.18  the judgment debtor; (3) inform the judgment debtor that an 
144.19  execution levy may be served on the judgment debtor's employer 
144.20  in ten days, and that the judgment debtor may, within that time, 
144.21  cause to be served on the judgment creditor's attorney a signed 
144.22  statement under penalties of perjury asserting an entitlement to 
144.23  an exemption from execution; (4) inform the judgment debtor of 
144.24  the earnings exemptions contained in section 550.37, subdivision 
144.25  14; and (5) advise the judgment debtor of the relief set forth 
144.26  in this chapter to which the judgment debtor may be entitled if 
144.27  a judgment creditor in bad faith disregards a valid claim and 
144.28  the fee, costs, and penalty that may be assessed against a 
144.29  judgment debtor who in bad faith falsely claims an exemption or 
144.30  in bad faith takes action to frustrate the execution process.  
144.31  The notice requirement of this subdivision does not apply to a 
144.32  levy on earnings being held by an employer pursuant to a 
144.33  garnishment summons served in compliance with chapter 571.  
144.34     The ten-day notice informing a judgment debtor that a writ 
144.35  of execution may be used to levy the earnings of an individual 
144.36  must be substantially in the following form: 
145.1      
145.2   STATE OF MINNESOTA                             DISTRICT COURT
145.3   COUNTY OF .............         ........... JUDICIAL DISTRICT
145.4   ............(Judgment Creditor)
145.5   against
145.6                                      EXECUTION EXEMPTION 
145.7                                      NOTICE AND NOTICE OF 
145.8   ............(Judgment Debtor)      INTENT TO LEVY ON EARNINGS 
145.9   and                                WITHIN TEN DAYS 
145.10  ............(Third Party)
145.11     PLEASE TAKE NOTICE that a levy may be served upon your 
145.12  employer or other third parties, without any further court 
145.13  proceedings or notice to you, ten days or more from the date 
145.14  hereof.  Your earnings are completely exempt from execution levy 
145.15  if you are now a recipient of relief based on need, if you have 
145.16  been a recipient of relief within the last six months, or if you 
145.17  have been an inmate of a correctional institution in the last 
145.18  six months. 
145.19     Relief based on need includes Aid to Families with 
145.20  Dependent Children (AFDC), AFDC-Emergency Assistance 
145.21  (AFDC-EA) the Minnesota family investment program (MFIP), 
145.22  Emergency Assistance (EA), work first program, Medical 
145.23  Assistance (MA), General Assistance (GA), General Assistance 
145.24  Medical Care (GAMC), Emergency General Assistance (EGA), Work 
145.25  Readiness, Minnesota Supplemental Aid (MSA), MSA Emergency 
145.26  Assistance (MSA-EA), Supplemental Security Income (SSI), and 
145.27  Energy Assistance. 
145.28     If you wish to claim an exemption, you should fill out the 
145.29  appropriate form below, sign it, and send it to the judgment 
145.30  creditor's attorney. 
145.31     You may wish to contact the attorney for the judgment 
145.32  creditor in order to arrange for a settlement of the debt or 
145.33  contact an attorney to advise you about exemptions or other 
145.34  rights. 
145.35                             PENALTIES
145.36     (1) Be advised that even if you claim an exemption, an 
146.1      execution levy may still be served on your employer.  If 
146.2      your earnings are levied on after you claim an exemption, 
146.3      you may petition the court for a determination of your 
146.4      exemption.  If the court finds that the judgment creditor 
146.5      disregarded your claim of exemption in bad faith, you will 
146.6      be entitled to costs, reasonable attorney fees, actual 
146.7      damages, and an amount not to exceed $100. 
146.8      (2) HOWEVER, BE WARNED if you claim an exemption, the 
146.9      judgment creditor can also petition the court for a 
146.10     determination of your exemption, and if the court finds 
146.11     that you claimed an exemption in bad faith, you will be 
146.12     assessed costs and reasonable attorney's fees plus an 
146.13     amount not to exceed $100. 
146.14     (3) If after receipt of this notice, you in bad faith take 
146.15     action to frustrate the execution levy, thus requiring the 
146.16     judgment creditor to petition the court to resolve the 
146.17     problem, you will be liable to the judgment creditor for 
146.18     costs and reasonable attorney's fees plus an amount not to 
146.19     exceed $100. 
146.20  DATED:  ............           ........................
146.21                                 (Attorney for Judgment Creditor)
146.22                                 ........................
146.23                                 Address
146.24                                 ........................
146.25                                 Telephone
146.26              JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE
146.27     I hereby claim that my earnings are exempt from execution 
146.28  because: 
146.29     (1) I am presently a recipient of relief based on need. 
146.30     (Specify the program, case number, and the county from 
146.31     which relief is being received.) 
146.32  ................    ......................   ...............
146.33  Program             Case Number (if known)   County
146.34     (2) I am not now receiving relief based on need, but I have 
146.35     received relief based on need within the last six months.  
146.36     (Specify the program, case number, and the county from 
147.1      which relief has been received.) 
147.2   ................    ......................   ...............
147.3   Program             Case Number (if known)   County
147.4      (3) I have been an inmate of a correctional institution 
147.5      within the last six months.  (Specify the correctional 
147.6      institution and location.) 
147.7   ...........................       ..........................
147.8   Correctional Institution          Location
147.9      I hereby authorize any agency that has distributed relief 
147.10  to me or any correctional institution in which I was an inmate 
147.11  to disclose to the above-named judgment creditor or the judgment 
147.12  creditor's attorney only whether or not I am or have been a 
147.13  recipient of relief based on need or an inmate of a correctional 
147.14  institution within the last six months.  I have mailed or 
147.15  delivered a copy of this form to the creditor or creditor's 
147.16  attorney. 
147.17  DATE: .....................          .........................
147.18                                       Judgment Debtor
147.19                                       .........................
147.20                                       Address
147.21     Sec. 144.  Minnesota Statutes 1998, section 570.025, 
147.22  subdivision 6, is amended to read: 
147.23     Subd. 6.  [NOTICE.] The respondent shall be served with a 
147.24  copy of the preliminary attachment order issued pursuant to this 
147.25  section together with a copy of all pleadings and other 
147.26  documents not previously served, including any affidavits upon 
147.27  which the claimant intends to rely at the subsequent hearing and 
147.28  a transcript of any oral testimony given at the preliminary 
147.29  hearing upon which the claimant intends to rely and a notice of 
147.30  hearing.  Service shall be in the manner prescribed for personal 
147.31  service of a summons unless that service is impracticable or 
147.32  would be ineffective and the court prescribes an alternative 
147.33  method of service calculated to provide actual notice to the 
147.34  respondent. 
147.35     The notice of hearing served upon the respondent shall be 
147.36  signed by claimant or the attorney for claimant and shall 
148.1   provide, at a minimum, the following information in 
148.2   substantially the following language: 
148.3                          NOTICE OF HEARING 
148.4      To:  (the respondent) 
148.5      The (insert name of court) Court has ordered the sheriff to 
148.6   seize some of your property.  The court has directed the sheriff 
148.7   to seize the following specific property:  (insert list of 
148.8   property).  (List other action taken by the court).  Some of 
148.9   your property may be exempt from seizure.  See the exemption 
148.10  notice below. 
148.11     The Court issued this Order based upon the claim of (insert 
148.12  name of claimant) that (insert name of claimant) is entitled to 
148.13  a court order for seizure of your property to secure your 
148.14  payment of any money judgment that (insert name of claimant) may 
148.15  later be obtained against you and that immediate action was 
148.16  necessary. 
148.17     You have the legal right to challenge (insert name of 
148.18  claimant) claims at a court hearing before a judge.  The hearing 
148.19  will be held at the (insert place) on (insert date) at (insert 
148.20  time).  You may attend the court hearing alone or with an 
148.21  attorney.  After you have presented your side of the matter, the 
148.22  court will decide what should be done with your property until 
148.23  the lawsuit against you is finally decided.  
148.24     IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER THE 
148.25  SHERIFF TO KEEP PROPERTY THAT HAS BEEN SEIZED. 
148.26                          EXEMPTION NOTICE 
148.27     An order of attachment is being served upon you.  Some of 
148.28  your property is exempt and cannot be seized.  The following is 
148.29  a list of some of the more common exemptions.  It is not 
148.30  complete and is subject to section 550.37, and other state and 
148.31  federal laws.  If you have questions about an exemption, you 
148.32  should obtain competent legal advice. 
148.33     1.  A homestead or the proceeds from the sale of a 
148.34  homestead. 
148.35     2.  Household furniture, appliances, phonographs, radios, 
148.36  and televisions up to a total current value of $4,500 at the 
149.1   time of attachment. 
149.2      3.  A manufactured (mobile) home used as your home. 
149.3      4.  One motor vehicle currently worth less than $2,000 
149.4   after deducting any security interests. 
149.5      5.  Farm machinery used by someone principally engaged in 
149.6   farming, or tools, machines, or office furniture used in your 
149.7   business or trade.  This exemption is limited to $5,000. 
149.8      6.  Relief based on need.  This includes Aid to Families 
149.9   with Dependent Children (AFDC) Minnesota family investment 
149.10  program, Emergency Assistance (EA), work first program, 
149.11  Supplemental Security Income (SSI), Minnesota Supplemental 
149.12  Assistance, and General Assistance. 
149.13     7.  Social Security benefits. 
149.14     8.  Reemployment insurance, workers' compensation, or 
149.15  veterans' benefits. 
149.16     9.  An accident disability or retirement pension or annuity.
149.17     10.  Life insurance proceeds or the earnings of your minor 
149.18  child and any child support paid to you. 
149.19     11.  Money from a claim for damage or destruction of exempt 
149.20  property (such as household goods, farm tools, business 
149.21  equipment, a manufactured (mobile) home, or a car). 
149.22     Sec. 145.  Minnesota Statutes 1998, section 570.026, 
149.23  subdivision 2, is amended to read: 
149.24     Subd. 2.  [SERVICE.] The claimant's motion to obtain an 
149.25  order of attachment together with the claimant's affidavit and 
149.26  notice of hearing shall be served in the manner prescribed for 
149.27  service of a summons in a civil action in district court unless 
149.28  that service is impracticable or would be ineffective and the 
149.29  court prescribes an alternative method of service calculated to 
149.30  provide actual notice to the respondent.  If the respondent has 
149.31  already appeared in the action, the motion shall be served in 
149.32  the manner prescribed for service of pleadings subsequent to the 
149.33  summons.  The date of hearing shall be fixed in accordance with 
149.34  Rule 6 of the Minnesota Rules of Civil Procedure, unless a 
149.35  different date is fixed by order of the court. 
149.36     The notice of hearing served upon the respondent shall be 
150.1   signed by the claimant or the attorney for the claimant and 
150.2   shall provide, at a minimum, the following information in 
150.3   substantially the following language:  
150.4                          NOTICE OF HEARING 
150.5      TO:  (the respondent) 
150.6      A hearing will be held (insert place) on (insert date) at 
150.7   (insert time) to determine whether the sheriff shall seize 
150.8   nonexempt property belonging to you to secure a judgment that 
150.9   may be entered against you. 
150.10     You may attend the court hearing alone or with an 
150.11  attorney.  After you have presented your side of the matter, the 
150.12  court will decide what should be done with your property until 
150.13  the lawsuit which has been commenced against you is finally 
150.14  decided. 
150.15     If the court directs the sheriff to seize and secure the 
150.16  property while the lawsuit is pending, you may still keep the 
150.17  property until the lawsuit is decided if you file a bond in an 
150.18  amount set by the court. 
150.19     IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER YOUR 
150.20  NONEXEMPT PROPERTY TO BE SEIZED. 
150.21                          EXEMPTION NOTICE 
150.22     Some of your property is exempt and cannot be attached.  
150.23  The following is a list of some of the more common exemptions.  
150.24  It is not complete and is subject to section 550.37, and other 
150.25  state and federal laws.  If you have questions about an 
150.26  exemption you should obtain competent legal advice. 
150.27     1.  A homestead or the proceeds from the sale of a 
150.28  homestead. 
150.29     2.  Household furniture, appliances, phonographs, radios, 
150.30  and televisions up to a total current value of $4,500 at the 
150.31  time of attachment. 
150.32     3.  A manufactured (mobile) home used as your home. 
150.33     4.  One motor vehicle currently worth less than $2,000 
150.34  after deducting any security interests. 
150.35     5.  Farm machinery used by someone principally engaged in 
150.36  farming, or tools, machines, or office furniture used in your 
151.1   business or trade.  This exemption is limited to $5,000. 
151.2      6.  Relief based on need.  This includes Aid to Families 
151.3   with Dependent Children (AFDC) Minnesota family investment 
151.4   program, Emergency Assistance (EA), work first program, 
151.5   Supplemental Security Income (SSI), Minnesota Supplemental 
151.6   Assistance, and General Assistance. 
151.7      7.  Social Security benefits. 
151.8      8.  Reemployment insurance, workers' compensation, or 
151.9   veterans' benefits. 
151.10     9.  An accident disability or retirement pension or annuity.
151.11     10.  Life insurance proceeds or the earnings of your minor 
151.12  child and any child support paid to you. 
151.13     11.  Money from a claim for damage or destruction of exempt 
151.14  property (such as household goods, farm tools, business 
151.15  equipment, a manufactured (mobile) home, or a car). 
151.16     Sec. 146.  Minnesota Statutes 1998, section 571.72, 
151.17  subdivision 8, is amended to read: 
151.18     Subd. 8.  [EXEMPTION NOTICE.] In every garnishment where 
151.19  the debtor is a natural person, the debtor shall be provided 
151.20  with a garnishment exemption notice.  If the creditor is 
151.21  garnishing earnings, the earnings exemption notice provided in 
151.22  section 571.924 must be served ten or more days before the 
151.23  service of the first garnishment summons.  If the creditor is 
151.24  garnishing funds in a financial institution, the exemption 
151.25  notice provided in section 571.912 must be served with the 
151.26  garnishment summons.  In all other cases, the exemption notice 
151.27  must be in the following form and served on the debtor with a 
151.28  copy of the garnishment summons. 
151.29     
151.30  STATE OF MINNESOTA                             DISTRICT COURT
151.31  COUNTY OF ..................    ............JUDICIAL DISTRICT
151.32  .................(Creditor)
151.33  against
151.34  .................(Debtor)                    EXEMPTION NOTICE
151.35  and
151.36  .................(Garnishee)
152.1      A Garnishment Summons is being served upon you.  Some of 
152.2   your property may be exempt and cannot be garnished.  The 
152.3   following is a list of some of the more common exemptions.  It 
152.4   is not complete and is subject to section 550.37 of the 
152.5   Minnesota Statutes and other state and federal laws.  The dollar 
152.6   amounts contained in this list are subject to the provisions of 
152.7   section 550.37, subdivision 4a, at the time of garnishment.  If 
152.8   you have questions about an exemption, you should obtain legal 
152.9   advice. 
152.10     (1) a homestead or the proceeds from the sale of a 
152.11  homestead; 
152.12     (2) household furniture, appliances, phonographs, radios, 
152.13  and televisions up to a total current value of $5,850; 
152.14     (3) a manufactured (mobile) home used as your home; 
152.15     (4) one motor vehicle currently worth less than $2,600 
152.16  after deducting any security interest; 
152.17     (5) farm machinery used by an individual principally 
152.18  engaged in farming, or tools, machines, or office furniture used 
152.19  in your business or trade.  This exemption is limited to 
152.20  $13,000; 
152.21     (6) relief based on need.  This includes: 
152.22     (i) Aid to Families with Dependent Children 
152.23  (AFDC) Minnesota family investment program (MFIP) and work first 
152.24  program; 
152.25     (ii) AFDC-Emergency Assistance (AFDC-EA); 
152.26     (iii) Medical Assistance (MA); 
152.27     (iv) (iii) General Assistance (GA); 
152.28     (v) (iv) General Assistance Medical Care (GAMC); 
152.29     (vi) (v) Emergency General Assistance (EGA); 
152.30     (vii) (vi) Work Readiness, Minnesota Supplemental AID 
152.31  (MSA); 
152.32     (viii) (vii) MSA-Emergency Assistance (MSA-EA); 
152.33     (ix) (viii) Supplemental Security Income (SSI); and 
152.34     (x) (ix) Energy Assistance; and 
152.35     (x) Emergency Assistance (EA); 
152.36     (7) social security benefits; 
153.1      (8) reemployment insurance, workers' compensation, or 
153.2   veteran's benefits; 
153.3      (9) an accident, disability, or retirement pension or 
153.4   annuity; 
153.5      (10) life insurance proceeds; 
153.6      (11) earnings of your minor child; and 
153.7      (12) money from a claim for damage or destruction of exempt 
153.8   property (such as household goods, farm tools, business 
153.9   equipment, a manufactured (mobile) home, or a car). 
153.10     Sec. 147.  Minnesota Statutes 1998, section 571.912, is 
153.11  amended to read: 
153.12     571.912 [FORM OF EXEMPTION NOTICE.] 
153.13     The notice informing a debtor that an order for attachment, 
153.14  garnishment summons, or levy by execution has been used to 
153.15  attach funds of the debtor to satisfy a claim must be 
153.16  substantially in the following form:  
153.17  STATE OF MINNESOTA                            DISTRICT COURT 
153.18  COUNTY OF ................         ........JUDICIAL DISTRICT
153.19  ........................(Creditor)
153.20  ........................(Debtor)
153.21  TO:  Debtor                                EXEMPTION NOTICE
153.22     An order for attachment, garnishment summons, or levy of 
153.23  execution (strike inapplicable language) has been served on 
153.24  ............ (bank or other financial institution) 
153.25  ............... where you have an account.  
153.26     Your account balance is $.............  
153.27     The amount being held is $............  
153.28     However, all or a portion of the funds in your account will 
153.29  normally be exempt from creditors' claims if they are in one of 
153.30  the following categories: 
153.31     (1) relief based on need.  This includes:  Aid to Families 
153.32  with Dependent Children (AFDC), AFDC-Emergency Assistance 
153.33  (AFDC-EA) the Minnesota family investment program (MFIP), 
153.34  Emergency Assistance (EA), work first program, Medical 
153.35  Assistance (MA), General Assistance (GA), General Assistance 
153.36  Medical Care (GAMC), Emergency General Assistance (EGA), Work 
154.1   Readiness, Minnesota Supplemental Aid (MSA), MSA Emergency 
154.2   Assistance (MSA-EA), Supplemental Security Income (SSI), and 
154.3   Energy Assistance; 
154.4      (2) Social Security benefits (Old Age, Survivors, or 
154.5   Disability Insurance); 
154.6      (3) reemployment insurance, workers' compensation, or 
154.7   veterans' benefits; 
154.8      (4) an accident, disability, or retirement pension or 
154.9   annuity; 
154.10     (5) life insurance proceeds; 
154.11     (6) the earnings of your minor child and any child support 
154.12  paid to you; or 
154.13     (7) money from a claim for damage or destruction of exempt 
154.14  property (such as household goods, farm tools, business 
154.15  equipment, a mobile home, or a car).  
154.16     The following funds are also exempt: 
154.17     (8) all earnings of a person in category (1); 
154.18     (9) all earnings of a person who has received relief based 
154.19  on need, or who has been an inmate of a correctional 
154.20  institution, within the last six months; 
154.21     (10) 75 percent of every debtor's after tax earnings; and 
154.22     (11) all of a debtor's after tax earnings below 40 times 
154.23  the federal minimum wage. 
154.24     TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:  
154.25     Categories (10) and (11):  20 days 
154.26     Categories (8) and (9):  60 days 
154.27     All others:  no time limit, as long as funds are traceable 
154.28  to the exempt source.  (In tracing funds, the first-in, 
154.29  first-out method is used.  This means money deposited first is 
154.30  spent first.)  The money being sought by the creditor is being 
154.31  held in your account to give you a chance to claim an exemption. 
154.32     TO CLAIM AN EXEMPTION:  
154.33     Fill out, sign, and mail or deliver one copy of the 
154.34  attached exemption claim form to the institution which sent you 
154.35  this notice and mail or deliver one copy to the creditor's 
154.36  attorney.  In the event that there is no attorney for the 
155.1   creditor, then such notice shall be sent directly to the 
155.2   creditor.  The address for the creditor's attorney or the 
155.3   creditor is set forth below.  Both copies must be mailed or 
155.4   delivered on the same day.  
155.5      If they do not get the exemption claim back from you within 
155.6   14 days of the date they mailed or gave it to you, they will be 
155.7   free to turn the money over to the sheriff or the creditor.  If 
155.8   you are going to claim an exemption, do so as soon as possible, 
155.9   because your money may be held until it is decided. 
155.10     IF YOU CLAIM AN EXEMPTION:  
155.11     (1) nonexempt money can be turned over to the creditor or 
155.12  sheriff; 
155.13     (2) the financial institution will keep holding the money 
155.14  claimed to be exempt; and 
155.15     (3) seven days after receiving your exemption claim, the 
155.16  financial institution will release the money to you unless 
155.17  before then it receives an objection to your exemption claim.  
155.18     IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 
155.19     The institution will hold the money until a court decides 
155.20  if your exemption claim is valid, BUT ONLY IF the institution 
155.21  gets a copy of your court motion papers asserting the exemption 
155.22  WITHIN TEN DAYS after the objection is mailed or given to you.  
155.23  You may wish to consult an attorney at once if the creditor 
155.24  objects to your exemption claim.  
155.25     MOTION TO DETERMINE EXEMPTION:  
155.26     At any time after your funds have been held, you may ask 
155.27  for a court decision on the validity of your exemption claim by 
155.28  filing a request for hearing which may be obtained at the office 
155.29  of the court administrator of the above court. 
155.30     PENALTIES:  
155.31     If you claim an exemption in bad faith, or if the creditor 
155.32  wrongly objects to an exemption in bad faith, the court may 
155.33  order the person who acted in bad faith to pay costs, actual 
155.34  damages, attorney fees, and an additional amount of up to $100.  
155.35                                .............................
155.36                                .............................
156.1                                 ............................. 
156.2                                 ............................. 
156.3                                 Name and address of (Attorney
156.4                                 for) Judgment Creditor
156.5      EXEMPTION:  
156.6      (If you claim an exemption complete the following): 
156.7      (a) Amount of exemption claim.  
156.8      / / I claim ALL the funds being held are exempt.  
156.9      / / I claim SOME of the funds being held are exempt.  
156.10           The exempt amount is $............  
156.11     (b) Basis for exemption.  
156.12     Of the eleven categories listed above, I am in category 
156.13  number ............  (If more than one category applies, you may 
156.14  fill in as many as apply.)  The source of the exempt funds is 
156.15  the following:  
156.16  .............................................................
156.17  .............................................................
156.18  .............................................................
156.19     (If the source is a type of relief based on need, list the 
156.20  case number and county:  
156.21     case number:  ...............; 
156.22     county:  ....................) 
156.23     I hereby authorize any agency that has distributed relief 
156.24  to me or any correctional institution in which I was an inmate 
156.25  to disclose to the above named creditor or its attorney only 
156.26  whether or not I am or have been a recipient of relief based on 
156.27  need or an inmate of a correctional institute within the last 
156.28  six months.  
156.29     I have mailed or delivered a copy of the exemption notice 
156.30  to the creditor's attorney.  
156.31  DATED:  .............        .............................
156.32                               DEBTOR 
156.33                               .............................
156.34                               DEBTOR ADDRESS
156.35     Sec. 148.  Minnesota Statutes 1998, section 571.925, is 
156.36  amended to read: 
157.1      571.925 [FORM OF NOTICE.] 
157.2      The ten-day notice informing a debtor that a garnishment 
157.3   summons may be used to garnish the earnings of an individual 
157.4   must be substantially in the following form: 
157.5   STATE OF MINNESOTA                             DISTRICT COURT
157.6   COUNTY OF .............         ........... JUDICIAL DISTRICT
157.7   ....................(Creditor)
157.8   against
157.9                                      GARNISHMENT EXEMPTION 
157.10  ....................(Debtor)       NOTICE AND NOTICE OF 
157.11  and                                INTENT TO GARNISH EARNINGS 
157.12                                     WITHIN TEN DAYS
157.13  ....................(Garnishee)
157.14     PLEASE TAKE NOTICE that a garnishment summons or levy may 
157.15  be served upon your employer or other third parties, without any 
157.16  further court proceedings or notice to you, ten days or more 
157.17  from the date hereof.  Some or all of your earnings are exempt 
157.18  from garnishment.  If your earnings are garnished, your employer 
157.19  must show you how the amount that is garnished from your 
157.20  earnings was calculated.  You have the right to request a 
157.21  hearing if you claim the garnishment is incorrect. 
157.22     Your earnings are completely exempt from garnishment if you 
157.23  are now a recipient of relief based on need, if you have been a 
157.24  recipient of relief within the last six months, or if you have 
157.25  been an inmate of a correctional institution in the last six 
157.26  months. 
157.27     Relief based on need includes Aid to Families with 
157.28  Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA) 
157.29  the Minnesota family investment program (MFIP), Emergency 
157.30  Assistance (EA), work first program, Medical Assistance (MA), 
157.31  General Assistance (GA), General Assistance Medical Care (GAMC), 
157.32  Emergency General Assistance (EGA), Work Readiness, Minnesota 
157.33  Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA), 
157.34  Supplemental Security Income (SSI), and Energy Assistance. 
157.35     If you wish to claim an exemption, you should fill out the 
157.36  appropriate form below, sign it, and send it to the creditor's 
158.1   attorney and the garnishee. 
158.2      You may wish to contact the attorney for the creditor in 
158.3   order to arrange for a settlement of the debt or contact an 
158.4   attorney to advise you about exemptions or other rights. 
158.5                              PENALTIES
158.6      (1) Be advised that even if you claim an exemption, a 
158.7      garnishment summons may still be served on your employer.  
158.8      If your earnings are garnished after you claim an 
158.9      exemption, you may petition the court for a determination 
158.10     of your exemption.  If the court finds that the creditor 
158.11     disregarded your claim of exemption in bad faith, you will 
158.12     be entitled to costs, reasonable attorney fees, actual 
158.13     damages, and an amount not to exceed $100. 
158.14     (2) HOWEVER, BE WARNED if you claim an exemption, the 
158.15     creditor can also petition the court for a determination of 
158.16     your exemption, and if the court finds that you claimed an 
158.17     exemption in bad faith, you will be assessed costs and 
158.18     reasonable attorney's fees plus an amount not to exceed 
158.19     $100. 
158.20     (3) If after receipt of this notice, you in bad faith take 
158.21     action to frustrate the garnishment, thus requiring the 
158.22     creditor to petition the court to resolve the problem, you 
158.23     will be liable to the creditor for costs and reasonable 
158.24     attorney's fees plus an amount not to exceed $100. 
158.25  DATED:  ............           ........................
158.26                                 (Attorney for) Creditor
158.27                                 ........................
158.28                                 Address
158.29                                 ........................
158.30                                 Telephone
158.31                  DEBTOR'S EXEMPTION CLAIM NOTICE
158.32     I hereby claim that my earnings are exempt from garnishment 
158.33  because: 
158.34     (1) I am presently a recipient of relief based on need. 
158.35     (Specify the program, case number, and the county from 
158.36     which relief is being received.) 
159.1   ................    ......................   ...............
159.2   Program             Case Number (if known)   County
159.3      (2) I am not now receiving relief based on need, but I have 
159.4      received relief based on need within the last six months.  
159.5      (Specify the program, case number, and the county from 
159.6      which relief has been received.) 
159.7   ................    ......................   ...............
159.8   Program             Case Number (if known)   County
159.9      (3) I have been an inmate of a correctional institution 
159.10     within the last six months.  (Specify the correctional 
159.11     institution and location.) 
159.12  ...........................       ..........................
159.13  Correctional Institution          Location
159.14     I hereby authorize any agency that has distributed relief 
159.15  to me or any correctional institution in which I was an inmate 
159.16  to disclose to the above-named creditor or the creditor's 
159.17  attorney only whether or not I am or have been a recipient of 
159.18  relief based on need or an inmate of a correctional institution 
159.19  within the last six months.  I have mailed or delivered a copy 
159.20  of this form to the creditor or creditor's attorney. 
159.21  ...........................          .........................
159.22  Date                                 Debtor
159.23                                       .........................
159.24                                       Address
159.25     Sec. 149.  Minnesota Statutes 1998, section 571.931, 
159.26  subdivision 6, is amended to read: 
159.27     Subd. 6.  [NOTICE.] The debtor shall be served with a copy 
159.28  of the prejudgment garnishment order issued pursuant to this 
159.29  section together with a copy of all pleadings and other 
159.30  documents not previously served, including any affidavits upon 
159.31  which the claimant intends to rely at the subsequent hearing and 
159.32  a transcript of any oral testimony given at the prejudgment 
159.33  garnishment hearing upon which the creditor intends to rely and 
159.34  a notice of hearing.  Service must be in the manner prescribed 
159.35  for personal service of a summons unless that service is 
159.36  impracticable or would be ineffective and the court prescribes 
160.1   an alternative method of service calculated to provide actual 
160.2   notice to the debtor. 
160.3      The notice of hearing served upon the debtor must be signed 
160.4   by the creditor or the attorney for the creditor and must be 
160.5   accompanied by an exemption notice.  The notice of hearing must 
160.6   be accompanied by an exemption notice, and both notices must 
160.7   provide, at a minimum, the following information in 
160.8   substantially the following language: 
160.9                          NOTICE OF HEARING
160.10     TO:  (the debtor) 
160.11     The (insert the name of court) Court has ordered the 
160.12  prejudgment garnishment of some of your property in the 
160.13  possession or control of a third party.  Some of your property 
160.14  may be exempt from seizure.  See the exemption notice below.  
160.15     The Court issued this Order based upon the claim of (insert 
160.16  name of creditor) that (insert name of creditor) is entitled to 
160.17  a court order for garnishment of your property to secure your 
160.18  payment of any money judgment that (insert name of creditor) may 
160.19  later be obtained against you and that immediate action was 
160.20  necessary.  
160.21     You have the legal right to challenge (insert name of 
160.22  creditor) claims at a court hearing before a judge.  The hearing 
160.23  will be held at the (insert place) on (insert date) at (insert 
160.24  time).  You may attend the court hearing alone or with an 
160.25  attorney.  After you have presented your side of the matter, the 
160.26  court will decide what should be done with your property until 
160.27  the lawsuit against you is finally decided.  
160.28     IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER 
160.29  GARNISHMENT OF YOUR PROPERTY. 
160.30                          EXEMPTION NOTICE
160.31     Some of your property may be exempt and cannot be garnished.
160.32  The following is a list of some of the more common exemptions.  
160.33  It is not complete and is subject to section 550.37, and other 
160.34  state and federal laws.  If you have questions about an 
160.35  exemption, you should obtain competent legal advice.  
160.36     (1) A homestead or the proceeds from the sale of a 
161.1   homestead.  
161.2      (2) Household furniture, appliances, phonographs, radios, 
161.3   and televisions up to a total current value of $4,500 at the 
161.4   time of attachment.  
161.5      (3) A manufactured (mobile) home used as your home.  
161.6      (4) One motor vehicle currently worth less than $2,000 
161.7   after deducting any security interests.  
161.8      (5) Farm machinery used by someone principally engaged in 
161.9   farming, or tools, machines, or office furniture used in your 
161.10  business or trade.  This exemption is limited to $10,000.  
161.11     (6) Relief based on need.  This includes:  Aid to Families 
161.12  with Dependent Children (AFDC), AFDC-Emergency Assistance 
161.13  (AFDC-EA) the Minnesota family investment program (MFIP), 
161.14  Emergency Assistance (EA), work first program, Medical 
161.15  Assistance (MA), General Assistance (GA), General Assistance 
161.16  Medical Care (GAMC), Emergency General Assistance (EGA), Work 
161.17  Readiness, Minnesota Supplemental Aid (MSA), MSA Emergency 
161.18  Assistance (MSA-EA), Supplemental Security Income (SSI), and 
161.19  Energy Assistance.  
161.20     (7) Social Security benefits.  
161.21     (8) Reemployment insurance, workers' compensation, or 
161.22  veterans' benefits.  
161.23     (9) An accident, disability or retirement pension or 
161.24  annuity. 
161.25     (10) Life insurance proceeds.  
161.26     (11) The earnings of your minor child.  
161.27     (12) Money from a claim for damage or destruction of exempt 
161.28  property (such as household goods, farm tools, business 
161.29  equipment, a manufactured (mobile) home, or a car).  
161.30     Sec. 150.  Minnesota Statutes 1998, section 571.932, 
161.31  subdivision 2, is amended to read: 
161.32     Subd. 2.  [SERVICE.] The creditor's motion to obtain an 
161.33  order of garnishment together with the creditor's affidavit and 
161.34  notice of hearing must be served in the manner prescribed for 
161.35  service of a summons in a civil action in district court unless 
161.36  that service is impracticable or would be ineffective and the 
162.1   court prescribes an alternative method of service calculated to 
162.2   provide actual notice to the debtor.  If the debtor has already 
162.3   appeared in the action, the motion must be served in the manner 
162.4   prescribed for service of pleadings subsequent to the summons.  
162.5   The date of the hearing must be fixed in accordance with Rule 6 
162.6   of the Minnesota Rules of Civil Procedure for the District 
162.7   Courts, unless a different date is fixed by order of the court.  
162.8      The notice of hearing served upon the debtor shall be 
162.9   signed by the creditor or the attorney for the creditor and 
162.10  shall provide, at a minimum, the following information in 
162.11  substantially the following language: 
162.12                         NOTICE OF HEARING
162.13     TO:  (the debtor) 
162.14     A hearing will be held (insert place) on (insert date) at 
162.15  (insert time) to determine whether nonexempt property belonging 
162.16  to you will be garnished to secure a judgment that may be 
162.17  entered against you.  
162.18     You may attend the court hearing alone or with an attorney. 
162.19  After you have presented your side of the matter, the court will 
162.20  decide whether your property should be garnished until the 
162.21  lawsuit which has been commenced against you is finally decided. 
162.22     If the court directs the issuance of a garnishment summons 
162.23  while the lawsuit is pending, you may still keep the property 
162.24  until the lawsuit is decided if you file a bond in an amount set 
162.25  by the court.  
162.26     IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER YOUR 
162.27  NONEXEMPT PROPERTY TO BE GARNISHED.  
162.28                          EXEMPTION NOTICE
162.29     Some of your property may be exempt and cannot be garnished.
162.30  The following is a list of some of the more common exemptions.  
162.31  It is not complete and is subject to section 550.37, and other 
162.32  state and federal laws.  The dollar amounts contained in this 
162.33  list are subject to the provisions of section 550.37, 
162.34  subdivision 4a, at the time of the garnishment.  If you have 
162.35  questions about an exemption, you should obtain competent legal 
162.36  advice.  
163.1      (1) A homestead or the proceeds from the sale of a 
163.2   homestead.  
163.3      (2) Household furniture, appliances, phonographs, radios, 
163.4   and televisions up to a total current value of $5,850. 
163.5      (3) A manufactured (mobile) home used as your home.  
163.6      (4) One motor vehicle currently worth less than $2,600 
163.7   after deducting any security interests.  
163.8      (5) Farm machinery used by an individual principally 
163.9   engaged in farming, or tools, machines, or office furniture used 
163.10  in your business or trade.  This exemption is limited to $13,000.
163.11     (6) Relief based on need.  This includes:  Aid to Families 
163.12  with Dependent Children (AFDC), AFDC-Emergency Assistance 
163.13  (AFDC-EA) the Minnesota family investment program (MFIP), 
163.14  Emergency Assistance (EA), work first program, Medical 
163.15  Assistance (MA), General Assistance (GA), General Assistance 
163.16  Medical Care (GAMC), Emergency General Assistance (EGA), Work 
163.17  Readiness, Minnesota Supplemental Aid (MSA), MSA Emergency 
163.18  Assistance (MSA-EA), Supplemental Security Income (SSI), and 
163.19  Energy Assistance.  
163.20     (7) Social Security benefits.  
163.21     (8) Reemployment insurance, workers' compensation, or 
163.22  veterans' benefits.  
163.23     (9) An accident, disability or retirement pension or 
163.24  annuity. 
163.25     (10) Life insurance proceeds.  
163.26     (11) The earnings of your minor child.  
163.27     (12) Money from a claim for damage or destruction of exempt 
163.28  property (such as household goods, farm tools, business 
163.29  equipment, a manufactured (mobile) home, or a car).  
163.30     Sec. 151.  Minnesota Statutes 1998, section 583.22, 
163.31  subdivision 7b, is amended to read: 
163.32     Subd. 7b.  [NECESSARY LIVING EXPENSES.] As used in section 
163.33  583.27, "necessary living expenses" means a sum approximately 
163.34  equal to 1-1/2 times the amount to which the family would be 
163.35  entitled if eligible for payments under section 256.74 chapter 
163.36  256J, unless limited by section 583.27, subdivision 1, paragraph 
164.1   (b). 
164.2      Sec. 152.  [REPEALER.] 
164.3      (a) Minnesota Statutes 1998, sections 119B.01, subdivision 
164.4   12a; 119B.05, subdivision 6; 126C.05, subdivision 4; 126C.06; 
164.5   256.031, subdivision 1a; 256.736; 256.74, subdivision 1c; 
164.6   256.9850; 256J.62, subdivision 5; 268.871, subdivision 5; and 
164.7   290A.22, are repealed. 
164.8      (b) Minnesota Rules, parts 9500.2000; 9500.2020; 9500.2060; 
164.9   9500.2100; 9500.2140; 9500.2180; 9500.2220; 9500.2260; 
164.10  9500.2300; 9500.2340; 9500.2380; 9500.2420; 9500.2440; 
164.11  9500.2480; 9500.2500; 9500.2520; 9500.2560; 9500.2580; 
164.12  9500.2600; 9500.2620; 9500.2640; 9500.2680; 9500.2700; 
164.13  9500.2720; 9500.2722; 9500.2724; 9500.2726; 9500.2728; 
164.14  9500.2730; 9500.2740; 9500.2760; 9500.2780; 9500.2800; 
164.15  9500.2820; 9500.2860; and 9500.2880, are repealed.