1.1 	A bill for an act
1.2 	relating to human services; establishing the work
1.3 	participation rate enhancement program; amending
1.4 	Minnesota Statutes 2004, sections 119B.011, by adding
1.5 	a subdivision; 119B.05, subdivision 1; 256J.021;
1.6 	256J.08, subdivision 65; 256J.521, subdivision 1;
1.7 	256J.626, subdivisions 1, 2, 3, 4, 7; proposing coding
1.8 	for new law in Minnesota Statutes, chapter 256J.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2004, section 119B.011, is
1.11 	amended by adding a subdivision to read:
1.12 		Subd. 23.Work participation rate enhancement
1.13 	program. "Work participation rate enhancement program" means
1.14 	the program established under section 256J.575.

1.15 	Sec. 2. Minnesota Statutes 2004, section 119B.05,
1.16 	subdivision 1, is amended to read:
1.17 		Subdivision 1.Eligible participants.  Families eligible
1.18 	for child care assistance under the MFIP child care program are:
1.19 	(1) MFIP participants who are employed or in job search and
1.20 	meet the requirements of section 119B.10;
1.21 	(2) persons who are members of transition year families
1.22 	under section 119B.011, subdivision 20, and meet the
1.23 	requirements of section 119B.10;
1.24 	(3) families who are participating in employment
1.25 	orientation or job search, or other employment or training
1.26 	activities that are included in an approved employability
1.27 	development plan under section 256J.95;
2.1 	(4) MFIP families who are participating in work job search,
2.2 	job support, employment, or training activities as required in
2.3 	their employment plan, or in appeals, hearings, assessments, or
2.4 	orientations according to chapter 256J;
2.5 	(5) MFIP families who are participating in social services
2.6 	activities under chapter 256J as required in their employment
2.7 	plan approved according to chapter 256J;
2.8 	(6) families who are participating in services or
2.9 	activities that are included in an approved family stabilization
2.10 	plan under section 256J.575;
2.11 	(7) families who are participating in programs as required
2.12 	in tribal contracts under section 119B.02, subdivision 2, or
2.13 	256.01, subdivision 2; and
2.14 	(7) (8) families who are participating in the transition
2.15 	year extension under section 119B.011, subdivision 20a.

2.16 	Sec. 3. Minnesota Statutes 2004, section 256J.021, is
2.17 	amended to read:
2.18 	256J.021 SEPARATE STATE PROGRAM PROGRAMS FOR USE OF STATE
2.19 	MONEY.
2.20 	(a) Beginning October 1, 2001, and each year thereafter,
2.21 	the commissioner of human services must treat MFIP expenditures
2.22 	made to or on behalf of any minor child under section 256J.02,
2.23 	subdivision 2, clause (1), who is a resident of this state under
2.24 	section 256J.12, and who is part of a two-parent eligible
2.25 	household as expenditures under a separately funded state
2.26 	program and report those expenditures to the federal Department
2.27 	of Health and Human Services as separate state program
2.28 	expenditures under Code of Federal Regulations, title 45,
2.29 	section 263.5.
2.30 	(b) Beginning October 1, 2005, and each year thereafter,
2.31 	the commissioner of human services must treat MFIP expenditures
2.32 	made to or on behalf of any minor child under section 256J.02,
2.33 	subdivision 2, clause (1), who is a resident of this state under
2.34 	section 256J.12, and who is part of a household participating in
2.35 	the work participation rate enhancement program under section
2.36 	256J.575 as expenditures under a separately funded state program
3.1 	and report those expenditures to the federal Department of
3.2 	Health and Human Services as separate state program expenditures
3.3 	under Code of Federal Regulations, title 45, section 263.5.

3.4 	Sec. 4. Minnesota Statutes 2004, section 256J.08,
3.5 	subdivision 65, is amended to read:
3.6 		Subd. 65.Participant.  "Participant" means a person who
3.7 	is currently receiving cash assistance or the food portion
3.8 	available through MFIP.  A person who fails to withdraw or
3.9 	access electronically any portion of the person's cash and food
3.10 	assistance payment by the end of the payment month, who makes a
3.11 	written request for closure before the first of a payment month
3.12 	and repays cash and food assistance electronically issued for
3.13 	that payment month within that payment month, or who returns any
3.14 	uncashed assistance check and food coupons and withdraws from
3.15 	the program is not a participant.  A person who withdraws a cash
3.16 	or food assistance payment by electronic transfer or receives
3.17 	and cashes an MFIP assistance check or food coupons and is
3.18 	subsequently determined to be ineligible for assistance for that
3.19 	period of time is a participant, regardless whether that
3.20 	assistance is repaid.  The term "participant" includes the
3.21 	caregiver relative and the minor child whose needs are included
3.22 	in the assistance payment.  A person in an assistance unit who
3.23 	does not receive a cash and food assistance payment because the
3.24 	case has been suspended from MFIP is a participant.  A person
3.25 	who receives cash payments under the diversionary work program
3.26 	under section 256J.95 is a participant. A person who receives
3.27 	cash payments under the work participation rate enhancement
3.28 	program under section 256J.575 is a participant.

3.29 	Sec. 5. Minnesota Statutes 2004, section 256J.521,
3.30 	subdivision 1, is amended to read:
3.31 		Subdivision 1.Assessments.  (a) For purposes of MFIP
3.32 	employment services, assessment is a continuing process of
3.33 	gathering information related to employability for the purpose
3.34 	of identifying both participant's strengths and strategies for
3.35 	coping with issues that interfere with employment.  The job
3.36 	counselor must use information from the assessment process to
4.1 	develop and update the employment plan under subdivision 2 or 3,
4.2 	as appropriate, and to determine whether the participant
4.3 	qualifies for a family violence waiver including an employment
4.4 	plan under subdivision 3, and to determine whether the
4.5 	participant should be referred to the work participation rate
4.6 	enhancement program under section 256J.575.
4.7 	(b) The scope of assessment must cover at least the
4.8 	following areas:
4.9 	(1) basic information about the participant's ability to
4.10 	obtain and retain employment, including:  a review of the
4.11 	participant's education level; interests, skills, and abilities;
4.12 	prior employment or work experience; transferable work skills;
4.13 	child care and transportation needs;
4.14 	(2) identification of personal and family circumstances
4.15 	that impact the participant's ability to obtain and retain
4.16 	employment, including:  any special needs of the children, the
4.17 	level of English proficiency, family violence issues, and any
4.18 	involvement with social services or the legal system;
4.19 	(3) the results of a mental and chemical health screening
4.20 	tool designed by the commissioner and results of the brief
4.21 	screening tool for special learning needs.  Screening tools for
4.22 	mental and chemical health and special learning needs must be
4.23 	approved by the commissioner and may only be administered by job
4.24 	counselors or county staff trained in using such screening
4.25 	tools.  The commissioner shall work with county agencies to
4.26 	develop protocols for referrals and follow-up actions after
4.27 	screens are administered to participants, including guidance on
4.28 	how employment plans may be modified based upon outcomes of
4.29 	certain screens.  Participants must be told of the purpose of
4.30 	the screens and how the information will be used to assist the
4.31 	participant in identifying and overcoming barriers to
4.32 	employment.  Screening for mental and chemical health and
4.33 	special learning needs must be completed by participants who are
4.34 	unable to find suitable employment after six weeks of job search
4.35 	under subdivision 2, paragraph (b), and participants who are
4.36 	determined to have barriers to employment under subdivision 2,
5.1 	paragraph (d).  Failure to complete the screens will result in
5.2 	sanction under section 256J.46; and
5.3 	(4) a comprehensive review of participation and progress
5.4 	for participants who have received MFIP assistance and have not
5.5 	worked in unsubsidized employment during the past 12 months.
5.6 	The purpose of the review is to determine the need for
5.7 	additional services and supports, including placement in
5.8 	subsidized employment or unpaid work experience under section
5.9 	256J.49, subdivision 13, or referral to the work participation
5.10 	rate enhancement program under section 256J.575.
5.11 	(c) Information gathered during a caregiver's participation
5.12 	in the diversionary work program under section 256J.95 must be
5.13 	incorporated into the assessment process.
5.14 	(d) The job counselor may require the participant to
5.15 	complete a professional chemical use assessment to be performed
5.16 	according to the rules adopted under section 254A.03,
5.17 	subdivision 3, including provisions in the administrative rules
5.18 	which recognize the cultural background of the participant, or a
5.19 	professional psychological assessment as a component of the
5.20 	assessment process, when the job counselor has a reasonable
5.21 	belief, based on objective evidence, that a participant's
5.22 	ability to obtain and retain suitable employment is impaired by
5.23 	a medical condition.  The job counselor may assist the
5.24 	participant with arranging services, including child care
5.25 	assistance and transportation, necessary to meet needs
5.26 	identified by the assessment.  Data gathered as part of a
5.27 	professional assessment must be classified and disclosed
5.28 	according to the provisions in section 13.46.

5.29 	Sec. 6. [256J.575] WORK PARTICIPATION RATE ENHANCEMENT
5.30 	PROGRAM.
5.31 		Subdivision 1.Purpose. (a) The work participation rate
5.32 	enhancement program (WORK PREP) is Minnesota's TANF program to
5.33 	serve families who are not making significant progress within
5.34 	MFIP due to a variety of barriers to employment.
5.35 	(b) The goal of this program is to stabilize and improve
5.36 	the lives of families at risk of long-term welfare dependency or
6.1 	family instability due to employment barriers such as physical
6.2 	disability, mental disability, age, and caring for a disabled
6.3 	household member.  WORK PREP provides services to promote and
6.4 	support families to achieve the greatest possible degree of
6.5 	self-sufficiency.  Counties may provide supportive and other
6.6 	allowable services funded by the MFIP consolidated fund under
6.7 	section 256J.626 to eligible participants.
6.8 		Subd. 2.Definitions. The terms used in this section
6.9 	have the meanings given them in paragraphs (a) to (d).
6.10 	(a) The "work participation rate enhancement program" means
6.11 	the program established under this section.
6.12 	(b) "Case management" means the services provided by or
6.13 	through the county agency to participating families, including
6.14 	assessment, information, referrals, and assistance in the
6.15 	preparation and implementation of a family stabilization plan
6.16 	under subdivision 5.
6.17 	(c) "Family stabilization plan" means a plan developed by a
6.18 	case manager and the participant, which identifies the
6.19 	participant's most appropriate path to unsubsidized employment,
6.20 	family stability, and barrier reduction, taking into account the
6.21 	family's circumstances.
6.22 	(d) "Family stabilization services" means programs,
6.23 	activities, and services in this section that provide
6.24 	participants and their family members with assistance regarding,
6.25 	but not limited to:
6.26 	(1) obtaining and retaining unsubsidized employment;
6.27 	(2) family stability;
6.28 	(3) economic stability; and 
6.29 	(4) barrier reduction.
6.30 	The goal of the program is to achieve the greatest degree
6.31 	of economic self-sufficiency and family well-being possible for
6.32 	the family under the circumstances.
6.33 		Subd. 3.Eligibility. (a) The following MFIP or DWP
6.34 	participants are eligible for the program under this section:
6.35 	(1) a participant identified under section 256J.561,
6.36 	subdivision 2, paragraph (d), who has or is eligible for an
7.1 	employment plan developed under section 256J.521, subdivision 2,
7.2 	paragraph (c);
7.3 	(2) a participant identified under section 256J.95,
7.4 	subdivision 12, paragraph (b), as unlikely to benefit from the
7.5 	diversionary work program;
7.6 	(3) a participant who meets the requirements for or has
7.7 	been granted a hardship extension under section 256J.425,
7.8 	subdivision 2 or 3; and 
7.9 	(4) a participant who is applying for supplemental security
7.10 	income or Social Security disability insurance.
7.11 	(b) Families must meet all other eligibility requirements
7.12 	for MFIP established in this chapter.  Families are eligible for
7.13 	financial assistance to the same extent as if they were
7.14 	participating in MFIP.
7.15 		Subd. 4.Universal participation. All caregivers must
7.16 	participate in family stabilization services as defined in
7.17 	subdivision 2.
7.18 		Subd. 5.Case management; family stabilization plans;
7.19 	coordinated services. (a) The county agency shall provide
7.20 	family stabilization services to families through a case
7.21 	management model.  A case manager shall be assigned to each
7.22 	participating family within 30 days after the family begins to
7.23 	receive financial assistance as a participant of the work
7.24 	participation rate enhancement program.  The case manager, with
7.25 	the full involvement of the family, shall recommend, and the
7.26 	county agency shall establish and modify as necessary, a family
7.27 	stabilization plan for each participating family.
7.28 	(b) The family stabilization plan shall include:
7.29 	(1) each participant's plan for long-term self-sufficiency,
7.30 	including an employment goal where applicable;
7.31 	(2) an assessment of each participant's strengths and
7.32 	barriers, and any special circumstances of the participant's
7.33 	family that impact, or are likely to impact, the participant's
7.34 	progress towards the goals in the plan; and 
7.35 	(3) an identification of the services, supports, education,
7.36 	training, and accommodations needed to overcome any barriers to
8.1 	enable the family to achieve self-sufficiency and to fulfill
8.2 	each caregiver's personal and family responsibilities.
8.3 	(c) The case manager and the participant must meet within
8.4 	30 days of the family's referral to the case manager.  The
8.5 	initial family stabilization plan shall be completed within 30
8.6 	days of the first meeting with the case manager.  The case
8.7 	manager shall establish a schedule for periodic review of the
8.8 	family stabilization plan that includes personal contact with
8.9 	the participant at least once per month.  In addition, the case
8.10 	manager shall review and modify if necessary the plan under the
8.11 	following circumstances:
8.12 	(1) there is a lack of satisfactory progress in achieving
8.13 	the goals of the plan;
8.14 	(2) the participant has lost unsubsidized or subsidized
8.15 	employment;
8.16 	(3) a family member has failed to comply with a family
8.17 	stabilization plan requirement;
8.18 	(4) services required by the plan are unavailable; or 
8.19 	(5) changes to the plan are needed to promote the
8.20 	well-being of the children.
8.21 	(d) Family stabilization plans under this section shall be
8.22 	written for a period of time not to exceed six months.
8.23 		Subd. 6.Cooperation with program requirements. (a) To
8.24 	be eligible, a participant must comply with paragraphs (b) to
8.25 	(f).
8.26 	(b) Participants shall engage in family stabilization plan
8.27 	activities listed in clause (1) or (2) for the number of hours
8.28 	per week that the activities are scheduled and available, unless
8.29 	good cause exists for not doing so, as defined in section
8.30 	256J.57, subdivision 1:
8.31 	(1) in single-parent families with no children under six
8.32 	years of age, the case manager and the participant must develop
8.33 	a family stabilization plan that includes 30 to 35 hours per
8.34 	week of activities; and 
8.35 	(2) in single-parent families with a child under six years
8.36 	of age, the case manager and the participant must develop a
9.1 	family stabilization plan that includes 20 to 35 hours per week
9.2 	of activities.
9.3 	(c) The case manager shall review the participant's
9.4 	progress toward the goals in the family stabilization plan every
9.5 	six months to determine whether conditions have changed,
9.6 	including whether revisions to the plan are needed.
9.7 	(d) When the participant has increased participation in
9.8 	work-related activities sufficient to meet the federal
9.9 	participation requirements of TANF, the county agency shall
9.10 	refer the participant to the MFIP program and assign the
9.11 	participant to a job counselor.  The participant and the job
9.12 	counselor must meet within 15 days of referral to MFIP to
9.13 	develop an employment plan under section 256J.521.  No
9.14 	reapplication is necessary and financial assistance shall
9.15 	continue without interruption.
9.16 	(e) Participants who have not increased their participation
9.17 	in work activities sufficient to meet the federal participation
9.18 	requirements of TANF may request a referral to the MFIP program
9.19 	and assignment to a job counselor after 12 months in the program.
9.20 	(f) A participant's requirement to comply with any or all
9.21 	family stabilization plan requirements under this subdivision
9.22 	shall be excused when the case management services, training and
9.23 	educational services, and family support services identified in
9.24 	the participant's family stabilization plan are unavailable for
9.25 	reasons beyond the control of the participant, including when
9.26 	money appropriated is not sufficient to provide the services.
9.27 		Subd. 7.Sanctions. (a) The financial assistance grant
9.28 	of a participating family shall be reduced, according to section
9.29 	256J.46, if a participating adult fails without good cause to
9.30 	comply or continue to comply with the family stabilization plan
9.31 	requirements in this subdivision, unless compliance has been
9.32 	excused under subdivision 6, paragraph (f).
9.33 	(b) Given the purpose of the work participation rate
9.34 	enhancement program in this section and the nature of the
9.35 	underlying family circumstances that act as barriers to both
9.36 	employment and full compliance with program requirements,
10.1 	sanctions are appropriate only when it is clear that there is
10.2 	both ability to comply and willful noncompliance on the part of
10.3 	the participant.
10.4 	(c) Prior to the imposition of a sanction, the county
10.5 	agency must review the participant's case to determine if the
10.6 	family stabilization plan is still appropriate and meet with the
10.7 	participants face-to-face.  The participant may bring an
10.8 	advocate to the face-to-face meeting.  If a face-to-face meeting
10.9 	is not conducted, the county agency must send the participant a
10.10 	written notice that includes the information required under
10.11 	clause (1):
10.12 	(1) during the face-to-face meeting, the county agency must:
10.13 	(i) determine whether the continued noncompliance can be
10.14 	explained and mitigated by providing a needed family
10.15 	stabilization service, as defined in subdivision 2, paragraph
10.16 	(d);
10.17 	(ii) determine whether the participant qualifies for a good
10.18 	cause exception under section 256J.57, or if the sanction is for
10.19 	noncooperation with child support requirements, determine if the
10.20 	participant qualifies for a good cause exemption under section
10.21 	256.741, subdivision 10;
10.22 	(iii) determine whether activities in the family
10.23 	stabilization plan are appropriate based on the family's
10.24 	circumstances;
10.25 	(iv) explain the consequences of continuing noncompliance;
10.26 	(v) identify other resources that may be available to the
10.27 	participant to meet the needs of the family; and 
10.28 	(vi) inform the participant of the right to appeal under
10.29 	section 256J.40; and 
10.30 	(2) if the lack of an identified activity or service can
10.31 	explain the noncompliance, the county must work with the
10.32 	participant to provide the identified activity.
10.33 	(d) After the requirements of paragraph (c) are met and
10.34 	prior to imposition of a sanction, the county agency shall
10.35 	provide a notice of intent to sanction under section 256J.57,
10.36 	subdivision 2, and, when applicable, a notice of adverse action
11.1 	as provided in section 256J.31.
11.2 	(e) Section 256J.57 applies to this section except to the
11.3 	extent that it is modified by this subdivision.

11.4 	Sec. 7. [256J.621] WORK PARTICIPATION BONUS.
11.5 	Upon exiting the diversionary work program (DWP) or upon
11.6 	terminating MFIP cash assistance with earnings, a participant
11.7 	shall be eligible for a work participation bonus of $75 per
11.8 	month to assist the household in meeting work-related expenses,
11.9 	including child care, transportation, and clothing, as the
11.10 	participant continues to move toward self-sufficiency.  A
11.11 	participant is eligible for the work participation bonus if the
11.12 	participant is employed and working at least 24 hours a week
11.13 	when the MFIP case is closed.  The participant will receive the
11.14 	work participation bonus in any month that the participant is
11.15 	employed an average of 24 hours per week, for a maximum of 12
11.16 	months upon exiting DWP or MFIP.  The commissioner shall
11.17 	establish policies and forms for verifying the level of
11.18 	employment necessary to qualify for the work participation bonus.

11.19 	Sec. 8. Minnesota Statutes 2004, section 256J.626,
11.20 	subdivision 1, is amended to read:
11.21 		Subdivision 1.Consolidated fund.  The consolidated fund
11.22 	is established to support counties and tribes in meeting their
11.23 	duties under this chapter.  Counties and tribes must use funds
11.24 	from the consolidated fund to develop programs and services that
11.25 	are designed to improve participant outcomes as measured in
11.26 	section 256J.751, subdivision 2, and to provide case management
11.27 	services to participants of the work participation rate
11.28 	enhancement program.  Counties may use the funds for any
11.29 	allowable expenditures under subdivision 2.  Tribes may use the
11.30 	funds for any allowable expenditures under subdivision 2, except
11.31 	those in clauses (1) and (6).

11.32 	Sec. 9. Minnesota Statutes 2004, section 256J.626,
11.33 	subdivision 2, is amended to read:
11.34 		Subd. 2.Allowable expenditures.  (a) The commissioner
11.35 	must restrict expenditures under the consolidated fund to
11.36 	benefits and services allowed under title IV-A of the federal
12.1 	Social Security Act.  Allowable expenditures under the
12.2 	consolidated fund may include, but are not limited to:
12.3 	(1) short-term, nonrecurring shelter and utility needs that
12.4 	are excluded from the definition of assistance under Code of
12.5 	Federal Regulations, title 45, section 260.31, for families who
12.6 	meet the residency requirement in section 256J.12, subdivisions
12.7 	1 and 1a.  Payments under this subdivision are not considered
12.8 	TANF cash assistance and are not counted towards the 60-month
12.9 	time limit;
12.10 	(2) transportation needed to obtain or retain employment or
12.11 	to participate in other approved work activities or activities
12.12 	under a family stabilization plan;
12.13 	(3) direct and administrative costs of staff to deliver
12.14 	employment services for MFIP or ,the diversionary work
12.15 	program, or the work participation rate enhancement program;to
12.16 	administer financial assistance,;and to provide specialized
12.17 	services intended to assist hard-to-employ participants to
12.18 	transition to work or transition from the work participation
12.19 	rate enhancement program to MFIP;
12.20 	(4) costs of education and training including functional
12.21 	work literacy and English as a second language;
12.22 	(5) cost of work supports including tools, clothing, boots,
12.23 	and other work-related expenses;
12.24 	(6) county administrative expenses as defined in Code of
12.25 	Federal Regulations, title 45, section 260(b);
12.26 	(7) services to parenting and pregnant teens;
12.27 	(8) supported work;
12.28 	(9) wage subsidies;
12.29 	(10) child care needed for MFIP or , the diversionary work
12.30 	program, or the work participation rate enhancement program 
12.31 	participants to participate in social services;
12.32 	(11) child care to ensure that families leaving MFIP or
12.33 	diversionary work program will continue to receive child care
12.34 	assistance from the time the family no longer qualifies for
12.35 	transition year child care until an opening occurs under the
12.36 	basic sliding fee child care program; and 
13.1 	(12) services to help noncustodial parents who live in
13.2 	Minnesota and have minor children receiving MFIP or DWP
13.3 	assistance, but do not live in the same household as the child,
13.4 	obtain or retain employment; and 
13.5 	(13) services to help families participating in the work
13.6 	participation rate enhancement program achieve the greatest
13.7 	possible degree of self-sufficiency.
13.8 	(b) Administrative costs that are not matched with county
13.9 	funds as provided in subdivision 8 may not exceed 7.5 percent of
13.10 	a county's or 15 percent of a tribe's allocation under this
13.11 	section.  The commissioner shall define administrative costs for
13.12 	purposes of this subdivision.

13.13 	Sec. 10. Minnesota Statutes 2004, section 256J.626,
13.14 	subdivision 3, is amended to read:
13.15 		Subd. 3.Eligibility for services.  Families with a minor
13.16 	child, a pregnant woman, or a noncustodial parent of a minor
13.17 	child receiving assistance, with incomes below 200 percent of
13.18 	the federal poverty guideline for a family of the applicable
13.19 	size, are eligible for services funded under the consolidated
13.20 	fund.  Counties and tribes must give priority to families
13.21 	currently receiving MFIP or , the diversionary work program, or
13.22 	the work participation rate enhancement program,and families at
13.23 	risk of receiving MFIP or diversionary work program.

13.24 	Sec. 11. Minnesota Statutes 2004, section 256J.626,
13.25 	subdivision 4, is amended to read:
13.26 		Subd. 4.County and tribal biennial service agreements.
 13.27 	(a) Effective January 1, 2004, and each two-year period
13.28 	thereafter, each county and tribe must have in place an approved
13.29 	biennial service agreement related to the services and programs
13.30 	in this chapter.  In counties with a city of the first class
13.31 	with a population over 300,000, the county must consider a
13.32 	service agreement that includes a jointly developed plan for the
13.33 	delivery of employment services with the city.  Counties may
13.34 	collaborate to develop multicounty, multitribal, or regional
13.35 	service agreements.
13.36 	(b) The service agreements will be completed in a form
14.1 	prescribed by the commissioner.  The agreement must include:
14.2 	(1) a statement of the needs of the service population and
14.3 	strengths and resources in the community;
14.4 	(2) numerical goals for participant outcomes measures to be
14.5 	accomplished during the biennial period.  The commissioner may
14.6 	identify outcomes from section 256J.751, subdivision 2, as core
14.7 	outcomes for all counties and tribes;
14.8 	(3) strategies the county or tribe will pursue to achieve
14.9 	the outcome targets.  Strategies must include specification of
14.10 	how funds under this section will be used and may include
14.11 	community partnerships that will be established or strengthened;
14.12 	and 
14.13 	(4) strategies the county or tribe will pursue under the
14.14 	work participation rate enhancement program; and 
14.15 	(5) other items prescribed by the commissioner in
14.16 	consultation with counties and tribes.
14.17 	(c) The commissioner shall provide each county and tribe
14.18 	with information needed to complete an agreement, including:
14.19 	(1) information on MFIP cases in the county or tribe; (2)
14.20 	comparisons with the rest of the state; (3) baseline performance
14.21 	on outcome measures; and (4) promising program practices.
14.22 	(d) The service agreement must be submitted to the
14.23 	commissioner by October 15, 2003, and October 15 of each second
14.24 	year thereafter.  The county or tribe must allow a period of not
14.25 	less than 30 days prior to the submission of the agreement to
14.26 	solicit comments from the public on the contents of the
14.27 	agreement.
14.28 	(e) The commissioner must, within 60 days of receiving each
14.29 	county or tribal service agreement, inform the county or tribe
14.30 	if the service agreement is approved.  If the service agreement
14.31 	is not approved, the commissioner must inform the county or
14.32 	tribe of any revisions needed prior to approval.
14.33 	(f) The service agreement in this subdivision supersedes
14.34 	the plan requirements of section 116L.88.

14.35 	Sec. 12. Minnesota Statutes 2004, section 256J.626,
14.36 	subdivision 7, is amended to read:
15.1 		Subd. 7.Performance base funds.  (a) Beginning calendar
15.2 	year 2005, each county and tribe will be allocated 95 100 
15.3 	percent of their initial calendar year allocation.  Counties and
15.4 	tribes will be allocated additional funds from federal TANF
15.5 	bonus funds the state receives based on performance as follows:
15.6 	(1) for calendar year 2005, a county or tribe that achieves
15.7 	a 30 percent rate or higher on the MFIP participation rate under
15.8 	section 256J.751, subdivision 2, clause (8), as averaged across
15.9 	the four quarterly measurements for the most recent year for
15.10 	which the measurements are available, will receive an additional
15.11 	allocation equal to 2.5 percent of its initial allocation to be
15.12 	determined by the commissioner based upon available funds; and
15.13 	(2) for calendar year 2006, a county or tribe that achieves
15.14 	a 40 percent rate or a five percentage point improvement over
15.15 	the previous year's MFIP participation rate under section
15.16 	256J.751, subdivision 2, clause (8), as averaged across the four
15.17 	quarterly measurements for the most recent year for which the
15.18 	measurements are available, will receive an additional
15.19 	allocation equal to 2.5 percent of its initial allocation to be
15.20 	determined by the commissioner based upon available funds; and
15.21 	(3) for calendar year 2007, a county or tribe that achieves
15.22 	a 50 percent rate or a five percentage point improvement over
15.23 	the previous year's MFIP participation rate under section
15.24 	256J.751, subdivision 2, clause (8), as averaged across the four
15.25 	quarterly measurements for the most recent year for which the
15.26 	measurements are available, will receive an additional
15.27 	allocation equal to 2.5 percent of its initial allocation to be
15.28 	determined by the commissioner based upon available funds; and
15.29 	(4) for calendar year 2008 and yearly thereafter, a county
15.30 	or tribe that achieves a 50 percent MFIP participation rate
15.31 	under section 256J.751, subdivision 2, clause (8), as averaged
15.32 	across the four quarterly measurements for the most recent year
15.33 	for which the measurements are available, will receive an
15.34 	additional allocation equal to 2.5 percent of its initial
15.35 	allocation to be determined by the commissioner based upon
15.36 	available funds; and
16.1 	(5) for calendar years 2005 and thereafter, a county or
16.2 	tribe that performs above the top of its range of expected
16.3 	performance on the three-year self-support index under section
16.4 	256J.751, subdivision 2, clause (7), in both measurements in the
16.5 	preceding year will receive an additional allocation equal to
16.6 	five percent of its initial allocation to be determined by the
16.7 	commissioner based upon available funds; or
16.8 	(6) for calendar years 2005 and thereafter, a county or
16.9 	tribe that performs within its range of expected performance on
16.10 	the three-year self-support index under section 256J.751,
16.11 	subdivision 2, clause (7), in both measurements in the preceding
16.12 	year, or above the top of its range of expected performance in
16.13 	one measurement and within its expected range of performance in
16.14 	the other measurement, will receive an additional allocation
16.15 	equal to 2.5 percent of its initial allocation to be determined
16.16 	by the commissioner based upon available funds.
16.17 	(b) Funds remaining unallocated after the performance-based
16.18 	allocations in paragraph (a) are available to the commissioner
16.19 	for innovation projects under subdivision 5.
16.20 	(c)(1) If available funds are insufficient to meet county
16.21 	and tribal allocations under paragraph (a), the commissioner may
16.22 	make available for allocation funds that are unobligated and
16.23 	available from the innovation projects through the end of the
16.24 	current biennium.
16.25 	(2) If after the application of clause (1) funds remain
16.26 	insufficient to meet county and tribal allocations under
16.27 	paragraph (a), the commissioner must proportionally reduce the
16.28 	allocation of each county and tribe with respect to their
16.29 	maximum allocation available under paragraph (a).