1.1                          A bill for an act 
  1.2             relating to welfare; providing exemptions from and 
  1.3             extensions of the 60-month time limit on MFIP 
  1.4             assistance; indexing the MFIP exit level at 130 
  1.5             percent of the federal poverty guidelines; allowing 24 
  1.6             months of education; providing cash bonuses to MFIP 
  1.7             recipients who meet certain goals; amending Minnesota 
  1.8             Statutes 2000, sections 256J.21, subdivision 2; 
  1.9             256J.24, subdivision 10; 256J.42, subdivision 5; 
  1.10            256J.49, subdivision 12; 256J.52, subdivision 2; 
  1.11            256J.53, subdivisions 1, 2, 3; proposing coding for 
  1.12            new law in Minnesota Statutes, chapter 256J; repealing 
  1.13            Minnesota Statutes 2000, section 256J.53, subdivision 
  1.14            4. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 2000, section 256J.21, 
  1.17  subdivision 2, is amended to read: 
  1.18     Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
  1.19  excluded in determining a family's available income: 
  1.20     (1) payments for basic care, difficulty of care, and 
  1.21  clothing allowances received for providing family foster care to 
  1.22  children or adults under Minnesota Rules, parts 9545.0010 to 
  1.23  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
  1.24  used for care and maintenance of a third-party beneficiary who 
  1.25  is not a household member; 
  1.26     (2) reimbursements for employment training received through 
  1.27  the Job Training Partnership Act, United States Code, title 29, 
  1.28  chapter 19, sections 1501 to 1792b; 
  1.29     (3) reimbursement for out-of-pocket expenses incurred while 
  1.30  performing volunteer services, jury duty, employment, or 
  2.1   informal carpooling arrangements directly related to employment; 
  2.2      (4) all educational assistance, except the county agency 
  2.3   must count graduate student teaching assistantships, 
  2.4   fellowships, and other similar paid work as earned income and, 
  2.5   after allowing deductions for any unmet and necessary 
  2.6   educational expenses, shall count scholarships or grants awarded 
  2.7   to graduate students that do not require teaching or research as 
  2.8   unearned income; 
  2.9      (5) loans, regardless of purpose, from public or private 
  2.10  lending institutions, governmental lending institutions, or 
  2.11  governmental agencies; 
  2.12     (6) loans from private individuals, regardless of purpose, 
  2.13  provided an applicant or participant documents that the lender 
  2.14  expects repayment; 
  2.15     (7)(i) state income tax refunds; and 
  2.16     (ii) federal income tax refunds; 
  2.17     (8)(i) federal earned income credits; 
  2.18     (ii) Minnesota working family credits; 
  2.19     (iii) state homeowners and renters credits under chapter 
  2.20  290A; and 
  2.21     (iv) federal or state tax rebates; 
  2.22     (9) funds received for reimbursement, replacement, or 
  2.23  rebate of personal or real property when these payments are made 
  2.24  by public agencies, awarded by a court, solicited through public 
  2.25  appeal, or made as a grant by a federal agency, state or local 
  2.26  government, or disaster assistance organizations, subsequent to 
  2.27  a presidential declaration of disaster; 
  2.28     (10) the portion of an insurance settlement that is used to 
  2.29  pay medical, funeral, and burial expenses, or to repair or 
  2.30  replace insured property; 
  2.31     (11) reimbursements for medical expenses that cannot be 
  2.32  paid by medical assistance; 
  2.33     (12) payments by a vocational rehabilitation program 
  2.34  administered by the state under chapter 268A, except those 
  2.35  payments that are for current living expenses; 
  2.36     (13) in-kind income, including any payments directly made 
  3.1   by a third party to a provider of goods and services; 
  3.2      (14) assistance payments to correct underpayments, but only 
  3.3   for the month in which the payment is received; 
  3.4      (15) emergency assistance payments; 
  3.5      (16) funeral and cemetery payments as provided by section 
  3.6   256.935; 
  3.7      (17) nonrecurring cash gifts of $30 or less, not exceeding 
  3.8   $30 per participant in a calendar month; 
  3.9      (18) any form of energy assistance payment made through 
  3.10  Public Law Number 97-35, Low-Income Home Energy Assistance Act 
  3.11  of 1981, payments made directly to energy providers by other 
  3.12  public and private agencies, and any form of credit or rebate 
  3.13  payment issued by energy providers; 
  3.14     (19) Supplemental Security Income, including retroactive 
  3.15  payments; 
  3.16     (20) Minnesota supplemental aid, including retroactive 
  3.17  payments; 
  3.18     (21) proceeds from the sale of real or personal property; 
  3.19     (22) adoption assistance payments under section 259.67; 
  3.20     (23) state-funded family subsidy program payments made 
  3.21  under section 252.32 to help families care for children with 
  3.22  mental retardation or related conditions, consumer support grant 
  3.23  funds under section 256.476, and resources and services for a 
  3.24  disabled household member under one of the home and 
  3.25  community-based waiver services programs under chapter 256B; 
  3.26     (24) interest payments and dividends from property that is 
  3.27  not excluded from and that does not exceed the asset limit; 
  3.28     (25) rent rebates; 
  3.29     (26) income earned by a minor caregiver, minor child 
  3.30  through age 6, or a minor child who is at least a half-time 
  3.31  student in an approved elementary or secondary education 
  3.32  program; 
  3.33     (27) income earned by a caregiver under age 20 who is at 
  3.34  least a half-time student in an approved elementary or secondary 
  3.35  education program; 
  3.36     (28) MFIP child care payments under section 119B.05; 
  4.1      (29) all other payments made through MFIP to support a 
  4.2   caregiver's pursuit of greater self-support; 
  4.3      (30) income a participant receives related to shared living 
  4.4   expenses; 
  4.5      (31) reverse mortgages; 
  4.6      (32) benefits provided by the Child Nutrition Act of 1966, 
  4.7   United States Code, title 42, chapter 13A, sections 1771 to 
  4.8   1790; 
  4.9      (33) benefits provided by the women, infants, and children 
  4.10  (WIC) nutrition program, United States Code, title 42, chapter 
  4.11  13A, section 1786; 
  4.12     (34) benefits from the National School Lunch Act, United 
  4.13  States Code, title 42, chapter 13, sections 1751 to 1769e; 
  4.14     (35) relocation assistance for displaced persons under the 
  4.15  Uniform Relocation Assistance and Real Property Acquisition 
  4.16  Policies Act of 1970, United States Code, title 42, chapter 61, 
  4.17  subchapter II, section 4636, or the National Housing Act, United 
  4.18  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
  4.19     (36) benefits from the Trade Act of 1974, United States 
  4.20  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
  4.21     (37) war reparations payments to Japanese Americans and 
  4.22  Aleuts under United States Code, title 50, sections 1989 to 
  4.23  1989d; 
  4.24     (38) payments to veterans or their dependents as a result 
  4.25  of legal settlements regarding Agent Orange or other chemical 
  4.26  exposure under Public Law Number 101-239, section 10405, 
  4.27  paragraph (a)(2)(E); 
  4.28     (39) income that is otherwise specifically excluded from 
  4.29  MFIP consideration in federal law, state law, or federal 
  4.30  regulation; 
  4.31     (40) security and utility deposit refunds; 
  4.32     (41) American Indian tribal land settlements excluded under 
  4.33  Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
  4.34  Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
  4.35  reservations and payments to members of the White Earth Band, 
  4.36  under United States Code, title 25, chapter 9, section 331, and 
  5.1   chapter 16, section 1407; 
  5.2      (42) all income of the minor parent's parents and 
  5.3   stepparents when determining the grant for the minor parent in 
  5.4   households that include a minor parent living with parents or 
  5.5   stepparents on MFIP with other children; and 
  5.6      (43) income of the minor parent's parents and stepparents 
  5.7   equal to 200 percent of the federal poverty guideline for a 
  5.8   family size not including the minor parent and the minor 
  5.9   parent's child in households that include a minor parent living 
  5.10  with parents or stepparents not on MFIP when determining the 
  5.11  grant for the minor parent.  The remainder of income is deemed 
  5.12  as specified in section 256J.37, subdivision 1b; 
  5.13     (44) payments made to children eligible for relative 
  5.14  custody assistance under section 257.85; 
  5.15     (45) vendor payments for goods and services made on behalf 
  5.16  of a client unless the client has the option of receiving the 
  5.17  payment in cash; and 
  5.18     (46) the principal portion of a contract for deed payment; 
  5.19  and 
  5.20     (47) participant performance bonuses under section 256J.555.
  5.21     Sec. 2.  Minnesota Statutes 2000, section 256J.24, 
  5.22  subdivision 10, is amended to read: 
  5.23     Subd. 10.  [MFIP EXIT LEVEL.] (a) In state fiscal years 
  5.24  2000 and 2001, The commissioner shall adjust the MFIP earned 
  5.25  income disregard to ensure that most participants do not lose 
  5.26  eligibility for MFIP until their income reaches at least 120 130 
  5.27  percent of the federal poverty guidelines in effect in October 
  5.28  of each fiscal year.  The adjustment to the disregard shall be 
  5.29  based on a household size of three, and the resulting earned 
  5.30  income disregard percentage must be applied to all household 
  5.31  sizes.  The adjustment under this subdivision must be 
  5.32  implemented at the same time as the October food stamp 
  5.33  cost-of-living adjustment is reflected in the food portion of 
  5.34  MFIP transitional standard as required under subdivision 5a. 
  5.35     (b) In state fiscal year 2002 and thereafter, the earned 
  5.36  income disregard percentage must be the same as the percentage 
  6.1   implemented in October 2000. 
  6.2      Sec. 3.  Minnesota Statutes 2000, section 256J.42, 
  6.3   subdivision 5, is amended to read: 
  6.4      Subd. 5.  [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 
  6.5   assistance received by an assistance unit does not count toward 
  6.6   the 60-month limit on assistance during a month in which the 
  6.7   caregiver (1) is in the a category in section 256J.56, paragraph 
  6.8   (a), clause (1); (2) is earning income and participating in work 
  6.9   activities, as defined in section 256J.49, subdivision 13, for 
  6.10  at least 40 hours per week for a two-parent family, or 20 hours 
  6.11  per week for a single-parent family with a child age six years 
  6.12  or younger, unless the individualized plan requires fewer hours 
  6.13  of work activities, then it is the number of hours required in 
  6.14  the plan; or (3) is in an education or training program, 
  6.15  including, but not limited to, English as a second language 
  6.16  (ESL) program, in which the combination of work activities and 
  6.17  education are for at least 40 hours per week for a two-parent 
  6.18  family, or 20 hours per week for a single-parent family with a 
  6.19  child age six years or younger, unless the individualized plan 
  6.20  requires fewer hours of work activities, then it is the number 
  6.21  of hours required in the plan. 
  6.22     (b) From July 1, 1997, until the date MFIP is operative in 
  6.23  the caregiver's county of financial responsibility, any cash 
  6.24  assistance received by a caregiver who is complying with 
  6.25  Minnesota Statutes 1996, section 256.73, subdivision 5a, and 
  6.26  Minnesota Statutes 1998, section 256.736, if applicable, does 
  6.27  not count toward the 60-month limit on assistance.  Thereafter, 
  6.28  any cash assistance received by a minor caregiver who is 
  6.29  complying with the requirements of sections 256J.14 and 256J.54, 
  6.30  if applicable, does not count towards the 60-month limit on 
  6.31  assistance. 
  6.32     (c) Any diversionary assistance or emergency assistance 
  6.33  received does not count toward the 60-month limit. 
  6.34     (d) (c) Any cash assistance received by an 18- or 
  6.35  19-year-old caregiver who is complying with the requirements of 
  6.36  section 256J.54 does not count toward the 60-month limit. 
  7.1      Sec. 4.  [256J.422] [60-MONTH TIME LIMIT REVIEW; EXTENSION; 
  7.2   APPEAL.] 
  7.3      Subdivision 1.  [EXTENSION OF 60-MONTH TIME LIMIT.] At the 
  7.4   end of the participant's eligibility period when TANF assistance 
  7.5   has been exhausted, the participant's time limit will be 
  7.6   extended provided the participant meets the MFIP eligibility 
  7.7   criteria.  Participants must comply with MFIP requirements or be 
  7.8   subject to a sanction.  The county may choose not to provide an 
  7.9   extension for participants if after a face-to-face review, the 
  7.10  participant does not fall under any of the categories in 
  7.11  subdivision 2. 
  7.12     Subd. 2.  [REVIEW.] (a) A county representative may 
  7.13  schedule a face-to-face review with a participant who is nearing 
  7.14  the 60-month time limit on TANF assistance.  The face-to-face 
  7.15  review must be conducted with a county representative, a 
  7.16  representative from a legal rights organization that primarily 
  7.17  represents low-income individuals or an advocate, and the 
  7.18  participant.  The participant may request that a representative 
  7.19  or advocate not be present during the review.  A face-to-face 
  7.20  review with the participant must be conducted before the 
  7.21  participant is denied an extension.  The county representative 
  7.22  makes the final determination regarding the extension of 
  7.23  assistance. 
  7.24     (b) In the face-to-face review, the individuals in 
  7.25  attendance shall determine if: 
  7.26     (1) the participant's plan is inappropriate or it should be 
  7.27  modified in order for the participant to reduce barriers or 
  7.28  achieve goals that will lead to long-term self-sufficiency; 
  7.29     (2) the participant falls under any of the exempt 
  7.30  categories in section 256J.42; 
  7.31     (3) there are other substantial barriers that need to be 
  7.32  addressed, which include, but are not limited to, language 
  7.33  barriers, physical or mental health needs, or learning 
  7.34  disabilities; 
  7.35     (4) there are services that were required to be provided or 
  7.36  necessary in order to fulfill the requirements of the plan that 
  8.1   were unavailable to the participant; 
  8.2      (5) there are educational opportunities that will lead to 
  8.3   self-sufficiency that were not allowed or offered to the 
  8.4   participant; 
  8.5      (6) the participant's plan is appropriate and the 
  8.6   participant is meeting the expectations of the participant's 
  8.7   individualized plan, or in a two-parent family, at least one 
  8.8   participant has an appropriate plan and is meeting the 
  8.9   expectations of that individualized plan; 
  8.10     (7) the employment held by the participant will not provide 
  8.11  a wage of at least 120 percent of the federal poverty guidelines 
  8.12  for the same family size, or in a two-parent family, when at 
  8.13  least one parent is cooperating with the program requirements, 
  8.14  the employment held by the cooperating participant will not 
  8.15  provide a wage of at least 120 percent of the federal poverty 
  8.16  guidelines for the same family size; or 
  8.17     (8) there are other issues that need to be addressed before 
  8.18  the participant is denied an extension. 
  8.19     Subd. 3.  [APPEAL OF COUNTY DECISION.] If the county denies 
  8.20  an extension under subdivision 2, the participant may appeal the 
  8.21  decision under section 256J.40.  Assistance must continue until 
  8.22  the appeal is resolved. 
  8.23     Sec. 5.  Minnesota Statutes 2000, section 256J.49, 
  8.24  subdivision 12, is amended to read: 
  8.25     Subd. 12.  [SUITABLE EMPLOYMENT.] "Suitable employment" 
  8.26  means employment that: 
  8.27     (1) is within the participant's physical and mental 
  8.28  abilities; 
  8.29     (2) pays hourly gross wages of not less than the applicable 
  8.30  state or federal minimum wage and can be expected to lead to 
  8.31  wages sufficient to enable the participant to transition off of 
  8.32  MFIP; 
  8.33     (3) meets health and safety standards set by federal, state 
  8.34  and county agencies; and 
  8.35     (4) complies with federal, state, and local 
  8.36  antidiscrimination laws. 
  9.1      Sec. 6.  Minnesota Statutes 2000, section 256J.52, 
  9.2   subdivision 2, is amended to read: 
  9.3      Subd. 2.  [INITIAL ASSESSMENT.] (a) The job counselor must, 
  9.4   with the cooperation of the participant, assess the 
  9.5   participant's ability to obtain and retain employment.  This 
  9.6   initial assessment must include a review of the participant's 
  9.7   education level, prior employment or work experience, 
  9.8   transferable work skills, and existing job markets. 
  9.9      (b) In assessing the participant, the job counselor must 
  9.10  determine if the participant needs refresher courses for 
  9.11  professional certification or licensure, in which case, the job 
  9.12  search plan under subdivision 3 must include the courses 
  9.13  necessary to obtain the certification or licensure, in addition 
  9.14  to other work activities, provided the combination of the 
  9.15  courses and other work activities are at least for 40 hours per 
  9.16  week.  
  9.17     (c) If a participant can demonstrate to the satisfaction of 
  9.18  the county agency that lack of proficiency in English is a 
  9.19  barrier to obtaining suitable employment, the job counselor must 
  9.20  include participation in an intensive English as a second 
  9.21  language program if available or otherwise a regular English as 
  9.22  a second language program in the individual's employment plan 
  9.23  under subdivision 5.  Lack of proficiency in English is not 
  9.24  necessarily a barrier to employment.  
  9.25     (d) The job counselor may shall approve an education or 
  9.26  training plan, and postpone the job search requirement, if less 
  9.27  than 30 percent of the statewide MFIP caseload is participating 
  9.28  in education and training, and if the participant has a proposal 
  9.29  for an education program which: 
  9.30     (1) can be completed within 12 24 months; 
  9.31     (2) meets the criteria of section 256J.53, subdivisions 2, 
  9.32  3, and 5; and 
  9.33     (3) is likely, without additional training, to lead to 
  9.34  monthly employment earnings which, after subtraction of the 
  9.35  earnings disregard under section 256J.21, equal or exceed the 
  9.36  family wage level for the participant's assistance unit. 
 10.1      (e) A participant who, at the time of the initial 
 10.2   assessment, presents a plan that includes farming as a 
 10.3   self-employed work activity must have an employment plan 
 10.4   developed under subdivision 5 that includes the farming as an 
 10.5   approved work activity. 
 10.6      (f) If an education or training program is approved, the 
 10.7   participant must maintain satisfactory progress in the program 
 10.8   as required under section 256J.53, subdivision 3.  The 
 10.9   participant is not limited to one education or training program, 
 10.10  but may participate in post-secondary education or training 
 10.11  programs that meet the criteria in this paragraph, up to a total 
 10.12  of 48 months.  Job search as required under section 256J.53, 
 10.13  subdivision 5, applies to participants approved for an education 
 10.14  program under this section. 
 10.15     Sec. 7.  Minnesota Statutes 2000, section 256J.53, 
 10.16  subdivision 1, is amended to read: 
 10.17     Subdivision 1.  [LENGTH OF PROGRAM.] In order for a 
 10.18  post-secondary education or training program to be approved work 
 10.19  activity as defined in section 256J.49, subdivision 13, clause 
 10.20  (18), it must be a program lasting 12 24 months or less, and the 
 10.21  participant must meet the requirements of subdivisions 2 and 3.  
 10.22  A program lasting up to 24 months may be approved on an 
 10.23  exception basis if the conditions specified in subdivisions 2 to 
 10.24  4 are met.  A participant may not be approved for more than a 
 10.25  total of 24 months of post-secondary education or training. 
 10.26     Sec. 8.  Minnesota Statutes 2000, section 256J.53, 
 10.27  subdivision 2, is amended to read: 
 10.28     Subd. 2.  [DOCUMENTATION SUPPORTING PROGRAM.] (a) In order 
 10.29  for a post-secondary education or training program to be an 
 10.30  approved activity in a participant's employment plan, the 
 10.31  participant or the employment and training service provider must 
 10.32  provide documentation that: 
 10.33     (1) the participant's employment plan identifies specific 
 10.34  goals that can only be met with the additional education or 
 10.35  training; 
 10.36     (2) there are suitable employment opportunities that 
 11.1   require the specific education or training in the area in which 
 11.2   the participant resides or is willing to reside; 
 11.3      (3) the education or training will result in significantly 
 11.4   higher wages for the participant than the participant could earn 
 11.5   without the education or training; 
 11.6      (4) the participant can meet the requirements for admission 
 11.7   into the program; and 
 11.8      (5) there is a reasonable expectation that the participant 
 11.9   will complete the training program based on such factors as the 
 11.10  participant's MFIP-S assessment, previous education, training, 
 11.11  and work history; current motivation; and changes in previous 
 11.12  circumstances. 
 11.13     (b) The job counselor shall approve an education or 
 11.14  training program that meets the requirements under paragraph (a).
 11.15     Sec. 9.  Minnesota Statutes 2000, section 256J.53, 
 11.16  subdivision 3, is amended to read: 
 11.17     Subd. 3.  [SATISFACTORY PROGRESS REQUIRED.] In order for a 
 11.18  post-secondary education or training program to be an approved 
 11.19  activity in a participant's employment plan participant to 
 11.20  continue with post-secondary education or training, the 
 11.21  participant must maintain satisfactory progress in the program.  
 11.22  "Satisfactory progress" in an education or training program 
 11.23  means (1) the participant remains in good standing while the 
 11.24  participant is enrolled in the program, as defined by the 
 11.25  education or training institution, or (2) the participant makes 
 11.26  satisfactory progress as the term is defined in the 
 11.27  participant's employment plan. 
 11.28     Sec. 10.  [256J.555] [PARTICIPANT PERFORMANCE BONUSES.] 
 11.29     A participant enrolled in employment and training services 
 11.30  is eligible to receive cash bonuses if the participant has been 
 11.31  in compliance with all the requirements of the participant's job 
 11.32  search support plan or employment plan for the previous six 
 11.33  months.  A participant may receive each bonus only once.  Income 
 11.34  received from the cash bonuses is excluded in determining MFIP 
 11.35  eligibility and benefits.  Bonuses are available for the 
 11.36  completion of the following goals: 
 12.1      (1) for continuous employment of at least 20 hours per week 
 12.2   for six months, the bonus is $200.  The caregiver is eligible to 
 12.3   receive this bonus if the participant remains on MFIP while 
 12.4   employed or if the participant has exited MFIP as the result of 
 12.5   employment; 
 12.6      (2) for continuous employment of at least 20 hours per week 
 12.7   for 12 months, the bonus is $300.  The caregiver is eligible to 
 12.8   receive this bonus if the participant remains on MFIP while 
 12.9   employed or if the participant has exited MFIP as the result of 
 12.10  employment; 
 12.11     (3) for employment that leads to earnings sufficient for a 
 12.12  caregiver to transition off of MFIP and stay off for six months, 
 12.13  the bonus is $300; 
 12.14     (4) for completion of an English as a second language 
 12.15  program, the bonus is $300; 
 12.16     (5) for completion of a high school diploma or GED, the 
 12.17  bonus is $300; and 
 12.18     (6) for completion of a job skills training program from a 
 12.19  certified provider, the bonus is $300. 
 12.20     Sec. 11.  [REPEALER.] 
 12.21     Minnesota Statutes 2000, section 256J.53, subdivision 4, is 
 12.22  repealed.