1.1 	A bill for an act
1.2 	relating to human services; modifying several MFIP and child care provisions; 
1.3 	authorizing subpoena power; modifying eligibility criteria; requiring legislative 
1.4 	approval; modifying co-payments; modifying food support benefits; modifying 
1.5 	single caregiver employment plans; establishing a family stabilization 
1.6 	services program; providing injury protection for community work experience 
1.7 	participants; modifying employment assistance; directing the commissioner to 
1.8 	simplify the food support program; appropriating money;amending Minnesota 
1.9 	Statutes 2006, sections 119B.011, by adding a subdivision; 119B.05, subdivision 
1.10 	1; 119B.09, subdivision 1, by adding a subdivision; 119B.12, subdivision 2, by 
1.11 	adding a subdivision; 256.01, subdivision 4; 256.015, subdivision 7; 256.0471, 
1.12 	subdivision 1; 256.984, subdivision 1; 256J.01, by adding a subdivision; 256J.02, 
1.13 	subdivisions 1, 4; 256J.021; 256J.08, subdivision 65; 256J.20, subdivision 3; 
1.14 	256J.21, subdivision 2; 256J.24, subdivisions 5, 10; 256J.30, subdivision 5; 
1.15 	256J.39, by adding a subdivision; 256J.42, subdivision 1; 256J.425, subdivisions 
1.16 	3, 4; 256J.49, subdivision 13; 256J.521, subdivisions 1, 2, by adding a 
1.17 	subdivision; 256J.53, subdivision 2; 256J.531; 256J.55, subdivision 1; 256J.626, 
1.18 	subdivisions 1, 2, 3, 4, 5, 6; 256J.751, subdivisions 2, 5; 256J.77; 256J.95, 
1.19 	subdivisions 3, 13; proposing coding for new law in Minnesota Statutes, chapters 
1.20 	256D; 256J; repealing Minnesota Statutes 2006, sections 256B.0631; 256J.24, 
1.21 	subdivision 6; 256J.29; 256J.37, subdivisions 3a, 3b; 256J.626, subdivisions 
1.22 	7, 9; 256J.68.
1.23 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.24 	ARTICLE 1
1.25 	PROGRAM INTEGRITY

1.26 	Section 1. Minnesota Statutes 2006, section 256.01, subdivision 4, is amended to read:
1.27 		Subd. 4.Duties as state agency. (a) The state agency shall:
1.28 	(1) supervise the administration of assistance to dependent children under Laws 
1.29 	1937, chapter 438, by the county agencies in an integrated program with other service for 
1.30 	dependent children maintained under the direction of the state agency;
2.1 	(2) may subpoena witnesses and administer oaths, make rules, and take such action 
2.2 	as may be necessary, or desirable for carrying out the provisions of Laws 1937, chapter 
2.3 	438. All rules made by the state agency shall be binding on the counties and shall be 
2.4 	complied with by the respective county agencies;
2.5 	(3)(2) establish adequate standards for personnel employed by the counties and the 
2.6 	state agency in the administration of Laws 1937, chapter 438, and make the necessary 
2.7 	rules to maintain such standards;
2.8 	(4)(3) prescribe the form of and print and supply to the county agencies blanks 
2.9 	for applications, reports, affidavits, and such other forms as it may deem necessary and 
2.10 	advisable;
2.11 	(5)(4) cooperate with the federal government and its public welfare agencies 
2.12 	in any reasonable manner as may be necessary to qualify for federal aid for temporary 
2.13 	assistance for needy families and in conformity with title I of Public Law 104-193, the 
2.14 	Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor 
2.15 	amendments, including the making of such reports and such forms and containing such 
2.16 	information as the Federal Social Security Board may from time to time require, and 
2.17 	comply with such provisions as such board may from time to time find necessary to assure 
2.18 	the correctness and verification of such reports;
2.19 	(6) may cooperate with other state agencies in establishing reciprocal agreements in 
2.20 	instances where a child receiving Minnesota family investment program assistance moves 
2.21 	or contemplates moving into or out of the state, in order that such child may continue to 
2.22 	receive supervised aid from the state moved from until the child shall have resided for 
2.23 	one year in the state moved to;
2.24 	(7)(5) on or before October 1 in each even-numbered year make a biennial report 
2.25 	to the governor concerning the activities of the agency;
2.26 	(8)(6) enter into agreements with other departments of the state as necessary to meet 
2.27 	all requirements of the federal government; and
2.28 	(9)(7) cooperate with the commissioner of education to enforce the requirements 
2.29 	for program integrity and fraud prevention for investigation for child care assistance 
2.30 	under chapter 119B.
2.31 	(b) The state agency may:
2.32 	(1) subpoena witnesses and administer oaths, make rules, and take such action as 
2.33 	may be necessary or desirable for carrying out the provisions of Laws 1937, chapter 438. 
2.34 	All rules made by the state agency shall be binding on the counties and shall be complied 
2.35 	with by the respective county agencies;
3.1 	(2) cooperate with other state agencies in establishing reciprocal agreements in 
3.2 	instances where a child receiving Minnesota family investment program assistance moves 
3.3 	or contemplates moving into or out of the state, in order that the child may continue 
3.4 	to receive supervised aid from the state moved from until the child has resided for one 
3.5 	year in the state moved to; and
3.6 	(3) administer oaths and affirmations, take depositions, certify to official acts, and 
3.7 	issue subpoenas to compel the attendance of individuals and the production of documents 
3.8 	and other personal property necessary in connection with the administration of programs 
3.9 	administered by the Department of Human Services.
3.10 	(c) The fees for service of a subpoena in paragraph (b), clause (3), must be paid in 
3.11 	the same manner as prescribed by law for a service of process issued by a district court. 
3.12 	Witnesses must receive the same fees and mileage as in civil actions.
3.13 	(d) The subpoena in paragraph (b), clause (3), shall be enforceable through the 
3.14 	district court in the district where the subpoena is issued.

3.15 	Sec. 2. Minnesota Statutes 2006, section 256.015, subdivision 7, is amended to read:
3.16 		Subd. 7.Cooperation required. Upon the request of the Department of Human 
3.17 	Services, any state agency or third party payer shall cooperate with the department in 
3.18 	furnishing information to help establish a third party liability. Upon the request of the 
3.19 	Department of Human Services or county child support or human service agencies, any 
3.20 	employer or third party payer shall cooperate in furnishing information about group health 
3.21 	insurance plans or medical benefit plans available to its employees. For purposes of 
3.22 	section 176.191, subdivision 4, the Department of Labor and Industry may allow the 
3.23 	Department of Human Services and county agencies direct access and data matching on 
3.24 	information relating to workers' compensation claims in order to determine whether the 
3.25 	claimant has reported the fact of a pending claim and the amount paid to or on behalf of 
3.26 	the claimant to the Department of Human Services. The Department of Human Services 
3.27 	and county agencies shall limit its use of information gained from agencies, third party 
3.28 	payers, and employers to purposes directly connected with the administration of its public 
3.29 	assistance and child support programs. The provision of information by agencies, third 
3.30 	party payers, and employers to the department under this subdivision is not a violation of 
3.31 	any right of confidentiality or data privacy.

3.32 	Sec. 3. Minnesota Statutes 2006, section 256.0471, subdivision 1, is amended to read:
3.33 		Subdivision 1.Qualifying overpayment. Any overpayment for assistance granted 
3.34 	under chapter 119B, the MFIP program formerly codified under sections 256.031 to 
4.1 	256.0361, and the AFDC program formerly codified under sections 256.72 to 256.871; 
4.2 	chapters 256B, 256D, 256I, 256J, and 256K, and 256L; and the food stamp or food support 
4.3 	program, except agency error claims, become a judgment by operation of law 90 days 
4.4 	after the notice of overpayment is personally served upon the recipient in a manner that 
4.5 	is sufficient under rule 4.03(a) of the Rules of Civil Procedure for district courts, or by 
4.6 	certified mail, return receipt requested. This judgment shall be entitled to full faith and 
4.7 	credit in this and any other state. 

4.8 	Sec. 4. Minnesota Statutes 2006, section 256.984, subdivision 1, is amended to read:
4.9 		Subdivision 1.Declaration. Every application for public assistance under this 
4.10 	chapter or chapters 256B, 256D, 256J, and 256L; child care programs under chapter 119B; 
4.11 	and food stamps or food support under chapter 393 shall be in writing or reduced to 
4.12 	writing as prescribed by the state agency and shall contain the following declaration which 
4.13 	shall be signed by the applicant:
4.14 	"I declare under the penalties of perjury that this application has been examined 
4.15 	by me and to the best of my knowledge is a true and correct statement of every 
4.16 	material point. I understand that a person convicted of perjury may be sentenced 
4.17 	to imprisonment of not more than five years or to payment of a fine of not more 
4.18 	than $10,000, or both."

4.19 	ARTICLE 2
4.20 	CHILDREN AND ECONOMIC ASSISTANCE

4.21 	Section 1. Minnesota Statutes 2006, section 119B.011, is amended by adding a 
4.22 	subdivision to read:
4.23 		Subd. 13a.Family stabilization services program. "Family stabilization services 
4.24 	program" means the program under section 256J.575.

4.25 	Sec. 2. Minnesota Statutes 2006, section 119B.05, subdivision 1, is amended to read:
4.26 		Subdivision 1.Eligible participants. Families eligible for child care assistance 
4.27 	under the MFIP child care program are:
4.28 	(1) MFIP participants who are employed or in job search and meet the requirements 
4.29 	of section 119B.10; 
4.30 	(2) persons who are members of transition year families under section 119B.011, 
4.31 	subdivision 20, and meet the requirements of section 119B.10; 
5.1 	(3) families who are participating in employment orientation or job search, or 
5.2 	other employment or training activities that are included in an approved employability 
5.3 	development plan under section 256J.95; 
5.4 	(4) MFIP families who are participating in work job search, job support, 
5.5 	employment, or training activities as required in their employment plan, or in appeals, 
5.6 	hearings, assessments, or orientations according to chapter 256J;
5.7 	(5) MFIP families who are participating in social services activities under chapter 
5.8 	256J as required in their employment plan approved according to chapter 256J;
5.9 	(6) families who are participating in services or activities that are included in an 
5.10 	approved family stabilization plan under section 256J.575;
5.11 	(7) families who are participating in programs as required in tribal contracts under 
5.12 	section 119B.02, subdivision 2, or 256.01, subdivision 2; and
5.13 	(7) (8)  families who are participating in the transition year extension under section 
5.14 	119B.011, subdivision 20a. 

5.15 	Sec. 3. Minnesota Statutes 2006, section 119B.09, subdivision 1, is amended to read:
5.16 		Subdivision 1.General eligibility requirements for all applicants for child 
5.17 	care assistance. (a) Child care services must be available to families who need child 
5.18 	care to find or keep employment or to obtain the training or education necessary to find 
5.19 	employment and who:
5.20 	(1) have household income less than or equal to 250 percent of the federal poverty 
5.21 	guidelines, adjusted for family size, and meet the requirements of section 119B.05; 
5.22 	receive MFIP assistance; and are participating in employment and training services under 
5.23 	chapter 256J or 256K; or
5.24 	(2) have household income less than or equal to 175 percent of the federal poverty 
5.25 	guidelines, adjusted for family size, at program entry and less than 250 percent of the 
5.26 	federal poverty guidelines, adjusted for family size, at program exit 75 percent of the 
5.27 	state median income.
5.28 	(b) Child care services must be made available as in-kind services.
5.29 	(c) All applicants for child care assistance and families currently receiving child care 
5.30 	assistance must be assisted and required to cooperate in establishment of paternity and 
5.31 	enforcement of child support obligations for all children in the family as a condition 
5.32 	of program eligibility. For purposes of this section, a family is considered to meet the 
5.33 	requirement for cooperation when the family complies with the requirements of section 
5.34 	256.741.

6.1 	Sec. 4. Minnesota Statutes 2006, section 119B.09, is amended by adding a subdivision 
6.2 	to read:
6.3 		Subd. 11.Payment of other child care expenses. Payment, by a source other 
6.4 	than the family, of part or all of a family's child care expenses not payable under this 
6.5 	chapter does not affect the family's eligibility for child care assistance, and the amount 
6.6 	paid is excluded from the family's income if the funds are paid directly to the family's 
6.7 	child care provider on behalf of the family. Child care providers who accept third-party 
6.8 	payments must maintain family-specific documentation of payment source, amount, type 
6.9 	of expenses, and time period covered.

6.10 	Sec. 5. Minnesota Statutes 2006, section 119B.12, subdivision 2, is amended to read:
6.11 		Subd. 2.Parent fee. A family must be assessed a parent fee for each service period
6.12 	according to the schedule under subdivision 3. A family's parent fee must be a fixed 
6.13 	percentage of its annual gross income. Parent fees must apply to families eligible for child 
6.14 	care assistance under sections 119B.03 and 119B.05. Income must be as defined in section 
6.15 	119B.011, subdivision 15. The fixed percent is based on the relationship of the family's 
6.16 	annual gross income to 100 percent of the annual federal poverty guidelines. Parent fees 
6.17 	must begin at 75 percent of the poverty level. The minimum the state median income; 
6.18 	however, for incomes below 100 percent of the poverty level, there are no fees for incomes 
6.19 	at 74 percent of the poverty level and below, and the parent fees for families between 75 
6.20 	percent and 100 percent of poverty level must be $10 $5 per month. Parent fees must 
6.21 	provide for graduated movement to full payment for incomes above 100 percent of the 
6.22 	poverty level must be assessed according to the schedule under subdivision 3. Payment of 
6.23 	part or all of a family's parent fee directly to the family's child care provider on behalf 
6.24 	of the family by a source other than the family shall not affect the family's eligibility for 
6.25 	child care assistance, and the amount paid shall be excluded from the family's income. 
6.26 	Child care providers who accept third-party payments must maintain family specific 
6.27 	documentation of payment source, amount, and time period covered by the payment.

6.28 	Sec. 6. Minnesota Statutes 2006, section 119B.12, is amended by adding a subdivision 
6.29 	to read:
6.30 		Subd. 3.Co-payment fee for families with annual incomes that exceed the 
6.31 	federal poverty level. The monthly family co-payment fee for families with annual 
6.32 	incomes greater than the federal poverty level, adjusted for family size, is determined 
6.33 	as follows:
7.1 	(a) The family's annual gross income is converted into a percentage of state median 
7.2 	income (SMI) for a family of four, adjusted for family size, by dividing the family's annual 
7.3 	gross income by 100 percent of the SMI for a family of four, adjusted for family size. The 
7.4 	percentage must be carried out to the nearest 100th of a percent. 
7.5 	(b) If the family's annual gross income is less than or equal to 75 percent of the 
7.6 	SMI for a family of four, adjusted for family size, the family's monthly co-payment fee 
7.7 	is the fixed percentage established for the family's income range in clauses (1) to (60), 
7.8 	multiplied by the highest possible income within that income range, divided by 12, and 
7.9 	rounded to the nearest whole dollar.
7.10 	(1) Less than 35.01 percent of SMI is 2.20%;
7.11 	(2) 35.01 to 42.00 percent of SMI is 2.70%;
7.12 	(3) 42.01 to 43.00 percent of SMI is 3.75%;
7.13 	(4) 43.01 to 44.00 percent of SMI is 4.00%;
7.14 	(5) 44.01 to 45.00 percent of SMI is 4.25%;
7.15 	(6) 45.01 to 46.00 percent of SMI is 4.50%;
7.16 	(7) 46.01 to 47.00 percent of SMI is 4.75%;
7.17 	(8) 47.01 to 48.00 percent of SMI is 5.00%;
7.18 	(9) 48.01 to 49.00 percent of SMI is 5.25%;
7.19 	(10) 49.01 to 50.00 percent of SMI is 5.50%;
7.20 	(11) 50.01 to 50.50 percent of SMI is 5.75%;
7.21 	(12) 50.51 to 51.00 percent of SMI is 6.00%;
7.22 	(13) 51.01 to 51.50 percent of SMI is 6.25%;
7.23 	(14) 51.51 to 52.00 percent of SMI is 6.50%;
7.24 	(15) 52.01 to 52.50 percent of SMI is 6.75%;
7.25 	(16) 52.51 to 53.00 percent of SMI is 7.00%;
7.26 	(17) 53.01 to 53.50 percent of SMI is 7.25%;
7.27 	(18) 53.51 to 54.00 percent of SMI is 7.50%;
7.28 	(19) 54.01 to 54.50 percent of SMI is 7.75%;
7.29 	(20) 54.51 to 55.00 percent of SMI is 8.00%;
7.30 	(21) 55.01 to 55.50 percent of SMI is 8.30%;
7.31 	(22) 55.51 to 56.00 percent of SMI is 8.60%;
7.32 	(23) 56.01 to 56.50 percent of SMI is 8.90%;
7.33 	(24) 56.51 to 57.00 percent of SMI is 9.20%;
7.34 	(25) 57.01 to 57.50 percent of SMI is 9.50%;
7.35 	(26) 57.51 to 58.00 percent of SMI is 9.80%;
7.36 	(27) 58.01 to 58.50 percent of SMI is 10.10%;
8.1 	(28) 58.51 to 59.00 percent of SMI is 10.40%;
8.2 	(29) 59.01 to 59.50 percent of SMI is 10.70%;
8.3 	(30) 59.51 to 60.00 percent of SMI is 11.00%;
8.4 	(31) 60.01 to 60.50 percent of SMI is 11.30%;
8.5 	(32) 60.51 to 61.00 percent of SMI is 11.60%;
8.6 	(33) 61.01 to 61.50 percent of SMI is 11.90%;
8.7 	(34) 61.51 to 62.00 percent of SMI is 12.20%;
8.8 	(35) 62.01 to 62.50 percent of SMI is 12.50%;
8.9 	(36) 62.51 to 63.00 percent of SMI is 12.80%;
8.10 	(37) 63.01 to 63.50 percent of SMI is 13.10%;
8.11 	(38) 63.51 to 64.00 percent of SMI is 13.40%;
8.12 	(39) 64.01 to 64.50 percent of SMI is 13.70%;
8.13 	(40) 64.51 to 65.00 percent of SMI is 14.00%;
8.14 	(41) 65.01 to 65.50 percent of SMI is 14.30%;
8.15 	(42) 65.51 to 66.00 percent of SMI is 14.60%;
8.16 	(43) 66.01 to 66.50 percent of SMI is 14.90%;
8.17 	(44) 66.51 to 67.00 percent of SMI is 15.20%;
8.18 	(45) 67.01 to 67.50 percent of SMI is 15.50%;
8.19 	(46) 67.51 to 68.00 percent of SMI is 15.80%;
8.20 	(47) 68.01 to 68.50 percent of SMI is 16.10%;
8.21 	(48) 68.51 to 69.00 percent of SMI is 16.40%;
8.22 	(49) 69.01 to 69.50 percent of SMI is 16.70%;
8.23 	(50) 69.51 to 70.00 percent of SMI is 17.00%;
8.24 	(51) 70.01 to 70.50 percent of SMI is 17.30%;
8.25 	(52) 70.51 to 71.00 percent of SMI is 17.60%;
8.26 	(53) 71.01 to 71.50 percent of SMI is 17.90%;
8.27 	(54) 71.51 to 72.00 percent of SMI is 18.20%;
8.28 	(55) 72.01 to 72.50 percent of SMI is 18.50%;
8.29 	(56) 72.51 to 73.00 percent of SMI is 18.80%;
8.30 	(57) 73.01 to 73.50 percent of SMI is 19.10%;
8.31 	(58) 73.51 to 74.00 percent of SMI is 19.40%;
8.32 	(59) 74.01 to 74.50 percent of SMI is 19.70%; and 
8.33 	(60) 74.51 to 75.00 percent of SMI is 20.00%.

8.34 	Sec. 7. [256D.0516] EXPIRATION OF FOOD SUPPORT BENEFITS AND 
8.35 	REPORTING REQUIREMENTS.
9.1 		Subdivision 1.Expiration of food support benefits. Food support benefits shall 
9.2 	not be stored off line or expunged from a recipient's account unless the benefits have not 
9.3 	been accessed for 12 months after the month they were issued.
9.4 		Subd. 2.Food support reporting requirements. The Department of Human 
9.5 	Services shall implement simplified reporting as permitted under the Food Stamp Act of 
9.6 	1977, as amended, and the food stamp regulations in Code of Federal Regulations, title 
9.7 	7, part 273. Food support recipient households required to report periodically shall not 
9.8 	be required to report more often than one time every six months. This provision shall 
9.9 	not apply to households receiving food benefits under the Minnesota family investment 
9.10 	program waiver.

9.11 	Sec. 8. Minnesota Statutes 2006, section 256J.01, is amended by adding a subdivision 
9.12 	to read:
9.13 		Subd. 6.Legislative approval to move programs or activities. The commissioner 
9.14 	shall not move programs or activities funded with MFIP or TANF maintenance of effort 
9.15 	funds to other funding sources without legislative approval.

9.16 	Sec. 9. Minnesota Statutes 2006, section 256J.02, subdivision 1, is amended to read:
9.17 		Subdivision 1.Commissioner's authority to administer block grant funds. The 
9.18 	commissioner of human services is authorized to receive, administer, and expend funds 
9.19 	available under the TANF block grant authorized under title I of Public Law 104-193, the 
9.20 	Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and under 
9.21 	Public Law 109-171, the Deficit Reduction Act of 2005.

9.22 	Sec. 10. Minnesota Statutes 2006, section 256J.02, subdivision 4, is amended to read:
9.23 		Subd. 4.Authority to transfer. Subject to limitations of title I of Public Law 
9.24 	104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, 
9.25 	as amended, and under Public Law 109-171, the Deficit Reduction Act of 2005, the 
9.26 	legislature may transfer money from the TANF block grant to the child care fund under 
9.27 	chapter 119B, or the Title XX block grant.

9.28 	Sec. 11. Minnesota Statutes 2006, section 256J.021, is amended to read:
9.29 	256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY
9.30 	PROGRAMS.
9.31 	(a) Until October 1,  2006 2007, the commissioner of human services must treat 
9.32 	MFIP expenditures made to or on behalf of any minor child under section 256J.02, 
10.1 	subdivision 2, clause (1), who is a resident of this state under section 256J.12, and who is 
10.2 	part of a two-parent eligible household as expenditures under a separately funded state
10.3 	program and report those expenditures to the federal Department of Health and Human 
10.4 	Services as separate state program expenditures under Code of Federal Regulations, title 
10.5 	45, section 263.5  funded with state nonmaintenance of effort funds. 
10.6 	(b) Beginning October 1, 2006 2007, and each year thereafter, the commissioner of 
10.7 	human services must treat MFIP expenditures made to or on behalf of any minor child 
10.8 	under section 256J.02, subdivision 2, clause (1), who is a resident of this state under 
10.9 	section 256J.12, and who is part of a two-parent eligible household, as expenditures under 
10.10 	a separately funded state program. These expenditures shall not count toward the state's 
10.11 	maintenance of effort (MOE) requirements under the federal Temporary Assistance to 
10.12 	Needy Families (TANF) program except if counting certain families would allow the 
10.13 	commissioner to avoid a federal penalty. Families receiving assistance under this section 
10.14 	must comply with all applicable requirements in this chapter.

10.15 	Sec. 12. Minnesota Statutes 2006, section 256J.08, subdivision 65, is amended to read:
10.16 		Subd. 65.Participant. (a) "Participant" means includes any of the following:
10.17 	(1) a person who is currently receiving cash assistance or the food portion available 
10.18 	through MFIP. A person who fails to withdraw or access electronically any portion of the 
10.19 	person's cash and food assistance payment by the end of the payment month, who makes a 
10.20 	written request for closure before the first of a payment month and repays cash and food 
10.21 	assistance electronically issued for that payment month within that payment month, or 
10.22 	who returns any uncashed assistance check and food coupons and withdraws from the 
10.23 	program is not a participant.;
10.24 	(2) a person who withdraws a cash or food assistance payment by electronic transfer 
10.25 	or receives and cashes an MFIP assistance check or food coupons and is subsequently 
10.26 	determined to be ineligible for assistance for that period of time is a participant, regardless 
10.27 	whether that assistance is repaid. The term "participant" includes;
10.28 	(3) the caregiver relative and the minor child whose needs are included in the 
10.29 	assistance payment.;
10.30 	(4) a person in an assistance unit who does not receive a cash and food assistance 
10.31 	payment because the case has been suspended from MFIP is a participant.;
10.32 	(5) a person who receives cash payments under the diversionary work program 
10.33 	under section 256J.95 is a participant.; and
10.34 	(6) a person who receives cash payments under the family stabilization services 
10.35 	program under section 256J.575.
11.1 	(b) "Participant" does not include a person who fails to withdraw or access 
11.2 	electronically any portion of the person's cash and food assistance payment by the end of 
11.3 	the payment month, who makes a written request for closure before the first of a payment 
11.4 	month and repays cash and food assistance electronically issued for that payment month 
11.5 	within that payment month, or who returns any uncashed assistance check and food 
11.6 	coupons and withdraws from the program.

11.7 	Sec. 13. Minnesota Statutes 2006, section 256J.20, subdivision 3, is amended to read:
11.8 		Subd. 3.Other property limitations. To be eligible for MFIP, the equity value of 
11.9 	all nonexcluded real and personal property of the assistance unit must not exceed $2,000 
11.10 	for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to 
11.11 	(19) must be excluded when determining the equity value of real and personal property:
11.12 	(1) a licensed vehicle up to a loan value of less than or equal to $7,500. The county 
11.13 	agency shall apply any excess loan value as if it were equity value to the asset limit 
11.14 	described in this section. If the assistance unit owns more than one licensed vehicle, 
11.15 	the county agency shall determine the vehicle with the highest loan value and count 
11.16 	only the loan value over $7,500, excluding: (i) the value of one vehicle per physically 
11.17 	disabled person when the vehicle is needed to transport the disabled unit member; this 
11.18 	exclusion does not apply to mentally disabled people; (ii) the value of special equipment 
11.19 	for a disabled member of the assistance unit; and (iii) also exclude any vehicle used for 
11.20 	long-distance travel, other than daily commuting, for the employment of a unit member.
11.21 	The county agency shall count the loan value of all other vehicles and apply this 
11.22 	amount as if it were equity value to the asset limit described in this section. To establish the 
11.23 	loan value of vehicles, a county agency must use the N.A.D.A. Official Used Car Guide, 
11.24 	Midwest Edition, for newer model cars. When a vehicle is not listed in the guidebook, 
11.25 	or when the applicant or participant disputes the loan value listed in the guidebook as 
11.26 	unreasonable given the condition of the particular vehicle, the county agency may require 
11.27 	the applicant or participant document the loan value by securing a written statement from 
11.28 	a motor vehicle dealer licensed under section 168.27, stating the amount that the dealer 
11.29 	would pay to purchase the vehicle. The county agency shall reimburse the applicant or 
11.30 	participant for the cost of a written statement that documents a lower loan value; 
11.31 	(2) the value of life insurance policies for members of the assistance unit;
11.32 	(3) one burial plot per member of an assistance unit;
11.33 	(4) the value of personal property needed to produce earned income, including 
11.34 	tools, implements, farm animals, inventory, business loans, business checking and 
11.35 	savings accounts used at least annually and used exclusively for the operation of a 
12.1 	self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use 
12.2 	is to produce income and if the vehicles are essential for the self-employment business;
12.3 	(5) the value of personal property not otherwise specified which is commonly 
12.4 	used by household members in day-to-day living such as clothing, necessary household 
12.5 	furniture, equipment, and other basic maintenance items essential for daily living;
12.6 	(6) the value of real and personal property owned by a recipient of Supplemental 
12.7 	Security Income or Minnesota supplemental aid;
12.8 	(7) the value of corrective payments, but only for the month in which the payment 
12.9 	is received and for the following month;
12.10 	(8) a mobile home or other vehicle used by an applicant or participant as the 
12.11 	applicant's or participant's home;
12.12 	(9) money in a separate escrow account that is needed to pay real estate taxes or 
12.13 	insurance and that is used for this purpose;
12.14 	(10) money held in escrow to cover employee FICA, employee tax withholding, 
12.15 	sales tax withholding, employee worker compensation, business insurance, property rental, 
12.16 	property taxes, and other costs that are paid at least annually, but less often than monthly;
12.17 	(11) monthly assistance payments for the current month's or short-term emergency 
12.18 	needs under section 256J.626, subdivision 2; 
12.19 	(12) the value of school loans, grants, or scholarships for the period they are 
12.20 	intended to cover;
12.21 	(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held 
12.22 	in escrow for a period not to exceed three months to replace or repair personal or real 
12.23 	property; 
12.24 	(14) income received in a budget month through the end of the payment month;
12.25 	(15) savings from earned income of a minor child or a minor parent that are set aside 
12.26 	in a separate account designated specifically for future education or employment costs;
12.27 	(16) the federal earned income credit, Minnesota working family credit, state and 
12.28 	federal income tax refunds, state homeowners and renters credits under chapter 290A, 
12.29 	property tax rebates and other federal or state tax rebates in the month received and the 
12.30 	following month;
12.31 	(17) payments excluded under federal law as long as those payments are held in a 
12.32 	separate account from any nonexcluded funds;
12.33 	(18) the assets of children ineligible to receive MFIP benefits because foster care or 
12.34 	adoption assistance payments are made on their behalf; and
12.35 	(19) the assets of persons whose income is excluded under section 256J.21, 
12.36 	subdivision 2, clause (43). 

13.1 	Sec. 14. Minnesota Statutes 2006, section 256J.21, subdivision 2, is amended to read:
13.2 		Subd. 2.Income exclusions. The following must be excluded in determining a 
13.3 	family's available income:
13.4 	(1) payments for basic care, difficulty of care, and clothing allowances received for 
13.5 	providing family foster care to children or adults under Minnesota Rules, parts 9555.5050 
13.6 	to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments received and used 
13.7 	for care and maintenance of a third-party beneficiary who is not a household member;
13.8 	(2) reimbursements for employment training received through the Workforce 
13.9 	Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;
13.10 	(3) reimbursement for out-of-pocket expenses incurred while performing volunteer 
13.11 	services, jury duty, employment, or informal carpooling arrangements directly related to 
13.12 	employment;
13.13 	(4) all educational assistance, except the county agency must count graduate student 
13.14 	teaching assistantships, fellowships, and other similar paid work as earned income and, 
13.15 	after allowing deductions for any unmet and necessary educational expenses, shall 
13.16 	count scholarships or grants awarded to graduate students that do not require teaching 
13.17 	or research as unearned income;
13.18 	(5) loans, regardless of purpose, from public or private lending institutions, 
13.19 	governmental lending institutions, or governmental agencies;
13.20 	(6) loans from private individuals, regardless of purpose, provided an applicant or 
13.21 	participant documents that the lender expects repayment;
13.22 	(7)(i) state income tax refunds; and
13.23 	(ii) federal income tax refunds;
13.24 	(8)(i) federal earned income credits;
13.25 	(ii) Minnesota working family credits;
13.26 	(iii) state homeowners and renters credits under chapter 290A; and
13.27 	(iv) federal or state tax rebates;
13.28 	(9) funds received for reimbursement, replacement, or rebate of personal or real 
13.29 	property when these payments are made by public agencies, awarded by a court, solicited 
13.30 	through public appeal, or made as a grant by a federal agency, state or local government, 
13.31 	or disaster assistance organizations, subsequent to a presidential declaration of disaster;
13.32 	(10) the portion of an insurance settlement that is used to pay medical, funeral, and 
13.33 	burial expenses, or to repair or replace insured property;
13.34 	(11) reimbursements for medical expenses that cannot be paid by medical assistance;
13.35 	(12) payments by a vocational rehabilitation program administered by the state 
13.36 	under chapter 268A, except those payments that are for current living expenses;
14.1 	(13) in-kind income, including any payments directly made by a third party to a 
14.2 	provider of goods and services;
14.3 	(14) assistance payments to correct underpayments, but only for the month in which 
14.4 	the payment is received;
14.5 	(15) payments for short-term emergency needs under section 256J.626, subdivision 
14.6 	2;
14.7 	(16) funeral and cemetery payments as provided by section 256.935;
14.8 	(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in 
14.9 	a calendar month;
14.10 	(18) any form of energy assistance payment made through Public Law 97-35, 
14.11 	Low-Income Home Energy Assistance Act of 1981, payments made directly to energy 
14.12 	providers by other public and private agencies, and any form of credit or rebate payment 
14.13 	issued by energy providers;
14.14 	(19) Supplemental Security Income (SSI), including retroactive SSI payments and 
14.15 	other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;
14.16 	(20) Minnesota supplemental aid, including retroactive payments;
14.17 	(21) proceeds from the sale of real or personal property;
14.18 	(22) state adoption assistance payments under section 259.67, and up to an equal 
14.19 	amount of county adoption assistance payments;
14.20 	(23) state-funded family subsidy program payments made under section 252.32
14.21 	to help families care for children with developmental disabilities, consumer support 
14.22 	grant funds under section 256.476, and resources and services for a disabled household 
14.23 	member under one of the home and community-based waiver services programs under 
14.24 	chapter 256B;
14.25 	(24) interest payments and dividends from property that is not excluded from and 
14.26 	that does not exceed the asset limit;
14.27 	(25) rent rebates;
14.28 	(26) income earned by a minor caregiver, minor child through age 6, or a minor 
14.29 	child who is at least a half-time student in an approved elementary or secondary education 
14.30 	program;
14.31 	(27) income earned by a caregiver under age 20 who is at least a half-time student in 
14.32 	an approved elementary or secondary education program;
14.33 	(28) MFIP child care payments under section 119B.05;
14.34 	(29) all other payments made through MFIP to support a caregiver's pursuit of 
14.35 	greater economic stability;
14.36 	(30) income a participant receives related to shared living expenses;
15.1 	(31) reverse mortgages;
15.2 	(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title 
15.3 	42, chapter 13A, sections 1771 to 1790;
15.4 	(33) benefits provided by the women, infants, and children (WIC) nutrition program, 
15.5 	United States Code, title 42, chapter 13A, section 1786;
15.6 	(34) benefits from the National School Lunch Act, United States Code, title 42, 
15.7 	chapter 13, sections 1751 to 1769e;
15.8 	(35) relocation assistance for displaced persons under the Uniform Relocation 
15.9 	Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title 
15.10 	42, chapter 61, subchapter II, section 4636, or the National Housing Act, United States 
15.11 	Code, title 12, chapter 13, sections 1701 to 1750jj;
15.12 	(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter 
15.13 	12, part 2, sections 2271 to 2322;
15.14 	(37) war reparations payments to Japanese Americans and Aleuts under United 
15.15 	States Code, title 50, sections 1989 to 1989d;
15.16 	(38) payments to veterans or their dependents as a result of legal settlements 
15.17 	regarding Agent Orange or other chemical exposure under Public Law 101-239, section 
15.18 	10405, paragraph (a)(2)(E);
15.19 	(39) income that is otherwise specifically excluded from MFIP consideration in 
15.20 	federal law, state law, or federal regulation;
15.21 	(40) security and utility deposit refunds;
15.22 	(41) American Indian tribal land settlements excluded under Public Laws 98-123, 
15.23 	98-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech 
15.24 	Lake, and Mille Lacs reservations and payments to members of the White Earth Band, 
15.25 	under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;
15.26 	(42) all income of the minor parent's parents and stepparents when determining the 
15.27 	grant for the minor parent in households that include a minor parent living with parents or 
15.28 	stepparents on MFIP with other children;
15.29 	(43) income of the minor parent's parents and stepparents equal to 200 percent of the 
15.30 	federal poverty guideline for a family size not including the minor parent and the minor 
15.31 	parent's child in households that include a minor parent living with parents or stepparents 
15.32 	not on MFIP when determining the grant for the minor parent. The remainder of income is 
15.33 	deemed as specified in section 256J.37, subdivision 1b;
15.34 	(44) payments made to children eligible for relative custody assistance under section 
15.35 	257.85;
16.1 	(45) vendor payments for goods and services made on behalf of a client unless the 
16.2 	client has the option of receiving the payment in cash; and
16.3 	(46) the principal portion of a contract for deed payment.; and
16.4 	(47) cash payments to individuals enrolled for full-time service as a volunteer under 
16.5 	AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps 
16.6 	National, and AmeriCorps NCCC.

16.7 	Sec. 15. Minnesota Statutes 2006, section 256J.24, subdivision 5, is amended to read:
16.8 		Subd. 5.MFIP transitional standard. (a) The MFIP transitional standard is based 
16.9 	on the number of persons in the assistance unit eligible for both food and cash assistance 
16.10 	unless the restrictions in subdivision 6 on the birth of a child apply. The following table 
16.11 	represents the transitional standards effective October 1, 2004.

16.12
16.13	Number of Eligible 
People
	Transitional 
Standard
	Cash Portion
	Food Portion

16.14	1
	$379:
	$250
	$129
	
16.15	2
	$675:
	$437
	$238
	
16.16	3
	$876:
	$532
	$344
	
16.17	4
	$1,036:
	$621
	$415
	
16.18	5
	$1,180:
	$697
	$483
	
16.19	6
	$1,350:
	$773
	$577
	
16.20	7
	$1,472:
	$850
	$622
	
16.21	8
	$1,623:
	$916
	$707
	
16.22	9
	$1,772:
	$980
	$792
	
16.23	10
	$1,915:
	$1,035
	$880
	
16.24	over 10
	add $142:
	$53
	$89
	
16.25	per additional member.
			
16.26 	The commissioner shall annually publish in the State Register the transitional 
16.27 	standard for an assistance unit sizes 1 to 10 including a breakdown of the cash and food 
16.28 	portions.
16.29 	(b) The commissioner shall increase the existing transitional standard by ten percent 
16.30 	effective July 1, 2007, to be distributed in the cash portion of the grant.

16.31 	Sec. 16. Minnesota Statutes 2006, section 256J.24, subdivision 10, is amended to read:
16.32 		Subd. 10.MFIP exit level. The commissioner shall adjust the MFIP earned income 
16.33 	disregard to ensure that most participants do not lose eligibility for MFIP until their 
16.34 	income reaches at least 115 175 percent of the federal poverty guidelines in effect in 
16.35 	October of each fiscal year. The adjustment to the disregard shall be based on a household 
16.36 	size of three, and the resulting earned income disregard percentage must be applied to all 
17.1 	household sizes. The adjustment under this subdivision must be implemented at the same 
17.2 	time as the October food stamp or food support cost-of-living adjustment is reflected in 
17.3 	the food portion of MFIP transitional standard as required under subdivision 5a.

17.4 	Sec. 17. Minnesota Statutes 2006, section 256J.30, subdivision 5, is amended to read:
17.5 		Subd. 5.Monthly MFIP household reports. Each assistance unit with a member 
17.6 	who has earned income or a recent work history, and each assistance unit that has income 
17.7 	deemed to it from a financially responsible person, must complete a monthly an MFIP 
17.8 	household report form every six months. "Recent work history" means the individual 
17.9 	received earned income in the report month or any of the previous three calendar months 
17.10 	even if the earnings are excluded. To be complete, the MFIP household report form must 
17.11 	be signed and dated by the caregivers no earlier than the last day of the reporting period. 
17.12 	All questions required to determine assistance payment eligibility must be answered, and 
17.13 	documentation of earned income must be included.

17.14 	Sec. 18. Minnesota Statutes 2006, section 256J.39, is amended by adding a subdivision 
17.15 	to read:
17.16 		Subd. 1a.Prohibited purchases. MFIP recipients are prohibited from using MFIP 
17.17 	monthly cash assistance payments issued in the form of an electronic benefits transfer to 
17.18 	purchase tobacco products, alcoholic beverages, or lottery tickets.

17.19 	Sec. 19. Minnesota Statutes 2006, section 256J.42, subdivision 1, is amended to read:
17.20 		Subdivision 1.Time limit. (a) Except as otherwise provided for in this section, an 
17.21 	assistance unit in which any adult caregiver has received 60 months of cash assistance 
17.22 	funded in whole or in part by the TANF block grant in this or any other state or 
17.23 	United States territory, or from a tribal TANF program, MFIP, the AFDC program 
17.24 	formerly codified in sections 256.72 to 256.87, or the family general assistance program 
17.25 	formerly codified in sections 256D.01 to 256D.23, funded in whole or in part by state 
17.26 	appropriations, is ineligible to receive MFIP. Any cash assistance funded with TANF 
17.27 	dollars in this or any other state or United States territory, or from a tribal TANF program, 
17.28 	or MFIP assistance funded in whole or in part by state appropriations, that was received 
17.29 	by the unit on or after the date TANF was implemented, including any assistance received 
17.30 	in states or United States territories of prior residence, counts toward the 60-month 
17.31 	limitation. Months during which any cash assistance is received by an assistance unit 
17.32 	with a mandatory member who is disqualified for wrongfully obtaining public assistance 
17.33 	under section 256.98, subdivision 8, counts toward the time limit for the disqualified 
18.1 	member. The 60-month limit applies to a minor caregiver except under subdivision 5. The 
18.2 	60-month time period does not need to be consecutive months for this provision to apply. 
18.3 	(b) The months before July 1998 in which individuals received assistance as part of 
18.4 	the field trials as an MFIP, MFIP-R, or MFIP or MFIP-R comparison group family are 
18.5 	not included in the 60-month time limit.

18.6 	EFFECTIVE DATE. This section is effective October 1, 2007.

18.7 	Sec. 20. Minnesota Statutes 2006, section 256J.425, subdivision 3, is amended to read:
18.8 		Subd. 3.Hard-to-employ participants. An assistance unit subject to the time 
18.9 	limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under 
18.10 	a hardship extension if the participant who reached the time limit belongs to any of the 
18.11 	following groups: 
18.12 	(1) a person who is diagnosed by a licensed physician, psychological practitioner, 
18.13 	or other qualified professional, as developmentally disabled or mentally ill, and that 
18.14 	condition prevents the person from obtaining or retaining unsubsidized employment;
18.15 	(2) a person who:
18.16 	(i) has been assessed by a vocational specialist or the county agency to be 
18.17 	unemployable for purposes of this subdivision; or
18.18 	(ii) has an IQ below 80 who has been assessed by a vocational specialist or a county 
18.19 	agency to be employable, but not at a level that makes the participant eligible for an 
18.20 	extension under subdivision 4. The determination of IQ level must be made by a qualified 
18.21 	professional. In the case of a non-English-speaking person: (A) the determination must 
18.22 	be made by a qualified professional with experience conducting culturally appropriate 
18.23 	assessments, whenever possible; (B) the county may accept reports that identify an 
18.24 	IQ range as opposed to a specific score; (C) these reports must include a statement of 
18.25 	confidence in the results;
18.26 	(3) a person who is determined by a qualified professional to be learning disabled, 
18.27 	and the disability severely limits the person's ability to obtain, perform, or maintain 
18.28 	suitable employment. For purposes of the initial approval of a learning disability 
18.29 	extension, the determination must have been made or confirmed within the previous 12 
18.30 	months. In the case of a non-English-speaking person: (i) the determination must be made 
18.31 	by a qualified professional with experience conducting culturally appropriate assessments, 
18.32 	whenever possible; and (ii) these reports must include a statement of confidence in the 
18.33 	results. If a rehabilitation plan for a participant extended as learning disabled is developed 
18.34 	or approved by the county agency, the plan must be incorporated into the employment 
19.1 	plan. However, a rehabilitation plan does not replace the requirement to develop and 
19.2 	comply with an employment plan under section 256J.521; or
19.3 	(4) a person who has been granted a family violence waiver, and who is complying 
19.4 	with an employment plan under section 256J.521, subdivision 3; or
19.5 	(5) a participant under section 256J.561, subdivision 2, paragraph (d), who is 
19.6 	complying with an employment plan tailored to recognize the special circumstances of 
19.7 	the caregivers and family, including limitations due to illness or disability, and caregiving 
19.8 	needs. 

19.9 	Sec. 21. Minnesota Statutes 2006, section 256J.425, subdivision 4, is amended to read:
19.10 		Subd. 4.Employed participants. (a) An assistance unit subject to the time limit 
19.11 	under section 256J.42, subdivision 1, is eligible to receive assistance under a hardship 
19.12 	extension if the participant who reached the time limit belongs to: 
19.13 	(1) a one-parent assistance unit in which the participant is participating in work 
19.14 	activities for at least 30 hours per week, of which an average of at least 25 hours per week 
19.15 	every month are spent participating in employment;
19.16 	(2) a two-parent assistance unit in which the participants are participating in work 
19.17 	activities for at least 55 hours per week, of which an average of at least 45 hours per week 
19.18 	every month are spent participating in employment; or
19.19 	(3) an assistance unit in which a participant is participating in employment for fewer 
19.20 	hours than those specified in clause (1) or (2), and the participant submits verification from 
19.21 	a qualified professional, in a form acceptable to the commissioner, stating that the number 
19.22 	of hours the participant may work is limited due to illness or disability, as long as the 
19.23 	participant is participating in employment for at least the number of hours specified by the 
19.24 	qualified professional. The participant must be following the treatment recommendations 
19.25 	of the qualified professional providing the verification. The commissioner shall develop a 
19.26 	form to be completed and signed by the qualified professional, documenting the diagnosis 
19.27 	and any additional information necessary to document the functional limitations of the 
19.28 	participant that limit work hours. If the participant is part of a two-parent assistance unit, 
19.29 	the other parent must be treated as a one-parent assistance unit for purposes of meeting the 
19.30 	work requirements under this subdivision.
19.31 	(b) For purposes of this section, employment means:
19.32 	(1) unsubsidized employment under section 256J.49, subdivision 13, clause (1); 
19.33 	(2) subsidized employment under section 256J.49, subdivision 13, clause (2); 
19.34 	(3) on-the-job training under section 256J.49, subdivision 13, clause (2); 
19.35 	(4) an apprenticeship under section 256J.49, subdivision 13, clause (1); 
20.1 	(5) supported work under section 256J.49, subdivision 13, clause (2); 
20.2 	(6) a combination of clauses (1) to (5); or
20.3 	(7) child care under section 256J.49, subdivision 13, clause (7), if it is in combination 
20.4 	with paid employment. 
20.5 	(c) If a participant is complying with a child protection plan under chapter 260C, 
20.6 	the number of hours required under the child protection plan count toward the number 
20.7 	of hours required under this subdivision.
20.8 	(d)(c) The county shall provide the opportunity for subsidized employment to 
20.9 	participants needing that type of employment within available appropriations.
20.10 	(e)(d) To be eligible for a hardship extension for employed participants under this 
20.11 	subdivision, a participant must be in compliance for at least ten out of the 12 months 
20.12 	the participant received MFIP immediately preceding the participant's 61st month on 
20.13 	assistance. If ten or fewer months of eligibility for TANF assistance remain at the time the 
20.14 	participant from another state applies for assistance, the participant must be in compliance 
20.15 	every month.
20.16 	(f)(e) The employment plan developed under section 256J.521, subdivision 2, for 
20.17 	participants under this subdivision must contain at least the minimum number of hours 
20.18 	specified in paragraph (a) for the purpose of meeting the requirements for an extension 
20.19 	under this subdivision. The job counselor and the participant must sign the employment 
20.20 	plan to indicate agreement between the job counselor and the participant on the contents 
20.21 	of the plan. 
20.22 	(g)(f) Participants who fail to meet the requirements in paragraph (a), without 
20.23 	good cause under section 256J.57, shall be sanctioned or permanently disqualified under 
20.24 	subdivision 6. Good cause may only be granted for that portion of the month for which 
20.25 	the good cause reason applies. Participants must meet all remaining requirements in the 
20.26 	approved employment plan or be subject to sanction or permanent disqualification. 
20.27 	(h)(g) If the noncompliance with an employment plan is due to the involuntary loss 
20.28 	of employment, the participant is exempt from the hourly employment requirement under 
20.29 	this subdivision for one month. Participants must meet all remaining requirements in the 
20.30 	approved employment plan or be subject to sanction or permanent disqualification. This 
20.31 	exemption is available to each participant two times in a 12-month period.

20.32 	Sec. 22. Minnesota Statutes 2006, section 256J.49, subdivision 13, is amended to read:
20.33 		Subd. 13.Work activity. "Work activity" means any activity in a participant's 
20.34 	approved employment plan that leads to employment. For purposes of the MFIP program, 
21.1 	this includes activities that meet the definition of work activity under the participation 
21.2 	requirements of TANF. Work activity includes:
21.3 	(1) unsubsidized employment, including work study and paid apprenticeships or 
21.4 	internships;
21.5 	(2) subsidized private sector or public sector employment, including grant diversion 
21.6 	as specified in section 256J.69, on-the-job training as specified in section 256J.66, 
21.7 	the self-employment investment demonstration program (SEID) as specified in section 
21.8 	256J.65, paid work experience, and supported work when a wage subsidy is provided; 
21.9 	(3) unpaid work experience, including community service, volunteer work, 
21.10 	the community work experience program as specified in section 256J.67, unpaid 
21.11 	apprenticeships or internships, and supported work when a wage subsidy is not provided. 
21.12 	Unpaid work performed in return for cash assistance is prohibited and does not count 
21.13 	as a work activity, unless the participant voluntarily agrees, in writing, to engage in 
21.14 	unpaid work in return for cash assistance. The participant may terminate the unpaid 
21.15 	work arrangement, in writing, at any time; 
21.16 	(4) job search including job readiness assistance, job clubs, job placement, 
21.17 	job-related counseling, and job retention services;
21.18 	(5) job readiness education, including English as a second language (ESL) or 
21.19 	functional work literacy classes as limited by the provisions of section 256J.531, 
21.20 	subdivision 2, general educational development (GED) course work, high school 
21.21 	completion, and adult basic education as limited by the provisions of section 256J.531, 
21.22 	subdivision 1; 
21.23 	(6) job skills training directly related to employment, including education and 
21.24 	training that can reasonably be expected to lead to employment, as limited by the 
21.25 	provisions of section 256J.53; 
21.26 	(7) providing child care services to a participant who is working in a community 
21.27 	service program;
21.28 	(8) activities included in the employment plan that is developed under section 
21.29 	256J.521, subdivision 3; and 
21.30 	(9) preemployment activities including chemical and mental health assessments, 
21.31 	treatment, and services; learning disabilities services; child protective services; family 
21.32 	stabilization services; or other programs designed to enhance employability.

21.33 	Sec. 23. Minnesota Statutes 2006, section 256J.521, subdivision 1, is amended to read:
21.34 		Subdivision 1.Assessments. (a) For purposes of MFIP employment services, 
21.35 	assessment is a continuing process of gathering information related to employability 
22.1 	for the purpose of identifying both participant's strengths and strategies for coping with 
22.2 	issues that interfere with employment. The job counselor must use information from the 
22.3 	assessment process to develop and update the employment plan under subdivision 2 or 3, 
22.4 	as appropriate, and to determine whether the participant qualifies for a family violence 
22.5 	waiver including an employment plan under subdivision 3, and to determine whether the 
22.6 	participant should be referred to the family stabilization services program under section 
22.7 	256J.575.
22.8 	(b) The scope of assessment must cover at least the following areas:
22.9 	(1) basic information about the participant's ability to obtain and retain employment, 
22.10 	including: a review of the participant's education level; interests, skills, and abilities; prior 
22.11 	employment or work experience; transferable work skills; child care and transportation 
22.12 	needs;
22.13 	(2) identification of personal and family circumstances that impact the participant's 
22.14 	ability to obtain and retain employment, including: any special needs of the children, the 
22.15 	level of English proficiency, family violence issues, and any involvement with social 
22.16 	services or the legal system;
22.17 	(3) the results of a mental and chemical health screening tool designed by the 
22.18 	commissioner and results of the brief screening tool for special learning needs. Screening 
22.19 	tools for mental and chemical health and special learning needs must be approved by the 
22.20 	commissioner and may only be administered by job counselors or county staff trained in 
22.21 	using such screening tools. The commissioner shall work with county agencies to develop 
22.22 	protocols for referrals and follow-up actions after screens are administered to participants, 
22.23 	including guidance on how employment plans may be modified based upon outcomes 
22.24 	of certain screens. Participants must be told of the purpose of the screens and how the 
22.25 	information will be used to assist the participant in identifying and overcoming barriers to 
22.26 	employment. Screening for mental and chemical health and special learning needs must 
22.27 	be completed by participants who are unable to find suitable employment after six weeks 
22.28 	of job search under subdivision 2, paragraph (b), and participants who are determined to 
22.29 	have barriers to employment under subdivision 2, paragraph (d). Failure to complete the 
22.30 	screens will result in sanction under section 256J.46; and 
22.31 	(4) a comprehensive review of participation and progress for participants who have 
22.32 	received MFIP assistance and have not worked in unsubsidized employment during the 
22.33 	past 12 months. The purpose of the review is to determine the need for additional services 
22.34 	and supports, including placement in subsidized employment or unpaid work experience 
22.35 	under section 256J.49, subdivision 13, or referral to the family stabilization services 
22.36 	program under section 256J.575. 
23.1 	(c) Information gathered during a caregiver's participation in the diversionary work 
23.2 	program under section 256J.95 must be incorporated into the assessment process. 
23.3 	(d) The job counselor may require the participant to complete a professional chemical 
23.4 	use assessment to be performed according to the rules adopted under section 254A.03, 
23.5 	subdivision 3, including provisions in the administrative rules which recognize the cultural 
23.6 	background of the participant, or a professional psychological assessment as a component 
23.7 	of the assessment process, when the job counselor has a reasonable belief, based on 
23.8 	objective evidence, that a participant's ability to obtain and retain suitable employment 
23.9 	is impaired by a medical condition. The job counselor may assist the participant with 
23.10 	arranging services, including child care assistance and transportation, necessary to meet 
23.11 	needs identified by the assessment. Data gathered as part of a professional assessment 
23.12 	must be classified and disclosed according to the provisions in section 13.46. 

23.13 	Sec. 24. Minnesota Statutes 2006, section 256J.521, subdivision 2, is amended to read:
23.14 		Subd. 2.Employment plan; contents. (a) Based on the assessment under 
23.15 	subdivision 1, the job counselor and the participant must develop an employment plan 
23.16 	that includes participation in activities and hours that meet the requirements of section 
23.17 	256J.55, subdivision 1. The purpose of the employment plan is to identify for each 
23.18 	participant the most direct path to unsubsidized employment and any subsequent steps that 
23.19 	support long-term economic stability. The employment plan should be developed using 
23.20 	the highest level of activity appropriate for the participant. Activities must be chosen from 
23.21 	clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of 
23.22 	preference for activities, priority must be given for activities related to a family violence 
23.23 	waiver when developing the employment plan. The employment plan must also list the 
23.24 	specific steps the participant will take to obtain employment, including steps necessary 
23.25 	for the participant to progress from one level of activity to another, and a timetable for 
23.26 	completion of each step. Levels of activity include: 
23.27 	(1) unsubsidized employment;
23.28 	(2) job search;
23.29 	(3) subsidized employment or unpaid work experience;
23.30 	(4) unsubsidized employment and job readiness education or job skills training;
23.31 	(5) unsubsidized employment or unpaid work experience and activities related to 
23.32 	a family violence waiver or preemployment needs; and
23.33 	(6) activities related to a family violence waiver or preemployment needs.
23.34 	(b) Participants who are determined to possess sufficient skills such that the 
23.35 	participant is likely to succeed in obtaining unsubsidized employment must job search at 
24.1 	least 30 hours per week for up to six weeks and accept any offer of suitable employment. 
24.2 	The remaining hours necessary to meet the requirements of section 256J.55, subdivision 
24.3 	1, may be met through participation in other work activities under section 256J.49, 
24.4 	subdivision 13. The participant's employment plan must specify, at a minimum: (1) 
24.5 	whether the job search is supervised or unsupervised; (2) support services that will 
24.6 	be provided; and (3) how frequently the participant must report to the job counselor. 
24.7 	Participants who are unable to find suitable employment after six weeks must meet 
24.8 	with the job counselor to determine whether other activities in paragraph (a) should be 
24.9 	incorporated into the employment plan. Job search activities which are continued after six 
24.10 	weeks must be structured and supervised. 
24.11 	(c) Beginning July 1, 2004, activities and hourly requirements in the employment 
24.12 	plan may be adjusted as necessary to accommodate the personal and family circumstances 
24.13 	of participants identified under section 256J.561, subdivision 2, paragraph (d). Participants 
24.14 	who no longer meet the provisions of section 256J.561, subdivision 2, paragraph (d), 
24.15 	must meet with the job counselor within ten days of the determination to revise the 
24.16 	employment plan. 
24.17 	(d) Participants who are determined to have barriers to obtaining or retaining 
24.18 	employment that will not be overcome during six weeks of job search under paragraph (b) 
24.19 	must work with the job counselor to develop an employment plan that addresses those 
24.20 	barriers by incorporating appropriate activities from paragraph (a), clauses (1) to (6). 
24.21 	The employment plan must include enough hours to meet the participation requirements 
24.22 	in section 256J.55, subdivision 1, unless a compelling reason to require fewer hours 
24.23 	is noted in the participant's file. 
24.24 	(e) The job counselor and the participant must sign the employment plan to indicate 
24.25 	agreement on the contents. Failure to develop or comply with activities in the plan, or 
24.26 	voluntarily quitting suitable employment without good cause, will result in the imposition 
24.27 	of a sanction under section 256J.46. 
24.28 	(f) Employment plans must be reviewed at least every three months to determine 
24.29 	whether activities and hourly requirements should be revised.  The job counselor is 
24.30 	encouraged to allow participants who are participating in at least 20 hours of work 
24.31 	activities to also participate in employment and training activities in order to meet the 
24.32 	federal hourly participation rates.

24.33 	Sec. 25. Minnesota Statutes 2006, section 256J.521, is amended by adding a 
24.34 	subdivision to read:
25.1 		Subd. 7.Employment plan; nonmaintenance of effort; single caregivers. (a) 
25.2 	When a single caregiver is moved to the nonmaintenance of effort state-funded program 
25.3 	under section 256J.021, paragraphs (a) and (b), the single caregiver shall develop or revise 
25.4 	the employment plan as specified in this subdivision with a job counselor or county. The 
25.5 	plan must address issues interfering with employment, including physical and mental 
25.6 	health, substance use, and social service issues of the caregiver and the caregiver's family. 
25.7 	Job search and employment must also be included in the plan to the extent possible.
25.8 	(b) Counties must coordinate services by ensuring that all workers involved with 
25.9 	the family communicate on a regular basis, and that expectations for the family across 
25.10 	service areas lead to common goals.
25.11 	(c) Activities and hourly requirements in the employment plan may be adjusted as 
25.12 	necessary to accommodate the personal and family circumstances of the participant. 
25.13 	Participants who no longer meet the criteria for the nonmaintenance of effort state-funded 
25.14 	program shall meet with the job counselor or county within ten days of the determination 
25.15 	to revise the employment plan.

25.16 	Sec. 26. Minnesota Statutes 2006, section 256J.53, subdivision 2, is amended to read:
25.17 		Subd. 2.Approval of postsecondary education or training. (a) In order for a 
25.18 	postsecondary education or training program to be an approved activity in an employment 
25.19 	plan, the participant must be working in unsubsidized employment at least 20 hours per 
25.20 	week.
25.21 	(b) Participants seeking approval of a postsecondary education or training plan 
25.22 	must provide documentation that:
25.23 	(1) the employment goal can only be met with the additional education or training;
25.24 	(2) there are suitable employment opportunities that require the specific education or 
25.25 	training in the area in which the participant resides or is willing to reside;
25.26 	(3) the education or training will result in significantly higher wages for the 
25.27 	participant than the participant could earn without the education or training;
25.28 	(4) the participant can meet the requirements for admission into the program; and
25.29 	(5) there is a reasonable expectation that the participant will complete the training 
25.30 	program based on such factors as the participant's MFIP assessment, previous education, 
25.31 	training, and work history; current motivation; and changes in previous circumstances.
25.32 	(c) The hourly unsubsidized employment requirement does not apply for intensive 
25.33 	education or training programs lasting 12 weeks or less when full-time attendance is 
25.34 	required.
26.1 	(d)(b) Participants with an approved employment plan in place on July 1, 2003, 
26.2 	which includes more than 12 months of postsecondary education or training shall be 
26.3 	allowed to complete that plan provided that hourly requirements in section 256J.55, 
26.4 	subdivision 1, and conditions specified in paragraph (b) (a), and subdivisions 3 and 5 are 
26.5 	met. A participant whose case is subsequently closed for three months or less for reasons 
26.6 	other than noncompliance with program requirements and who returns to MFIP shall 
26.7 	be allowed to complete that plan provided that hourly requirements in section 256J.55, 
26.8 	subdivision 1, and conditions specified in paragraph (b) (a) and subdivisions 3 and 5 are 
26.9 	met. 

26.10 	Sec. 27. Minnesota Statutes 2006, section 256J.531, is amended to read:
26.11 	256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.
26.12 		Subdivision 1.Approval of adult basic education. With the exception of classes 
26.13 	related to obtaining a general educational development credential (GED), a participant 
26.14 	must have reading or mathematics proficiency below a ninth grade level in order for adult 
26.15 	basic education classes to be an approved work activity. The employment plan must also 
26.16 	specify that the participant fulfill no more than one-half of the participation requirements 
26.17 	in section 256J.55, subdivision 1, through attending adult basic education or general 
26.18 	educational development classes.
26.19 		Subd. 2.Approval of English as a second language. In order for English as a 
26.20 	second language (ESL) classes to be an approved work activity in an employment plan, a 
26.21 	participant must be below a spoken language proficiency level of SPL6 or its equivalent, 
26.22 	as measured by a nationally recognized test. In approving ESL as a work activity, the job 
26.23 	counselor must give preference to enrollment in a functional work literacy program, 
26.24 	if one is available, over a regular ESL program. A participant may not be approved 
26.25 	for more than a combined total of 24 months of ESL classes while participating in the 
26.26 	diversionary work program and the employment and training services component of 
26.27 	MFIP. The employment plan must also specify that the participant fulfill no more than 
26.28 	one-half of the participation requirements in section 256J.55, subdivision 1, through 
26.29 	attending ESL classes. For participants enrolled in functional work literacy classes, no 
26.30 	more than two-thirds of the participation requirements in section 256J.55, subdivision 1, 
26.31 	may be met through attending functional work literacy classes. 

26.32 	EFFECTIVE DATE. This section is effective October 1, 2007.

26.33 	Sec. 28. Minnesota Statutes 2006, section 256J.55, subdivision 1, is amended to read:
27.1 		Subdivision 1.Participation requirements. (a) All caregivers must participate 
27.2 	in employment services under sections 256J.515 to 256J.57 concurrent with receipt of 
27.3 	MFIP assistance. 
27.4 	(b) Until July 1, 2004, participants who meet the requirements of section 256J.56 are 
27.5 	exempt from participation requirements. 
27.6 	(c) Participants under paragraph (a) must develop and comply with an employment 
27.7 	plan under section 256J.521 or section 256J.54 in the case of a participant under the age of 
27.8 	20 who has not obtained a high school diploma or its equivalent. 
27.9 	(d) With the exception of participants under the age of 20 who must meet the 
27.10 	education requirements of section 256J.54, all participants must meet the hourly 
27.11 	participation requirements of TANF or the hourly requirements listed in clauses (1) to 
27.12 	(3), whichever is higher. 
27.13 	(1) In single-parent families with no children under six years of age, the job 
27.14 	counselor and the caregiver must develop an employment plan that includes 30 to 35
27.15 	hours per week of work activities.
27.16 	(2) In single-parent families with a child under six years of age, the job counselor 
27.17 	and the caregiver must develop an employment plan that includes 20 to 35 hours per 
27.18 	week of work activities.
27.19 	(3) In two-parent families, the job counselor and the caregivers must develop 
27.20 	employment plans which result in a combined total of at least 55 hours per week of work 
27.21 	activities.
27.22 	(e) Failure to participate in employment services, including the requirement to 
27.23 	develop and comply with an employment plan, including hourly requirements, without 
27.24 	good cause under section 256J.57, shall result in the imposition of a sanction under section 
27.25 	256J.46. 

27.26 	Sec. 29. [256J.575] FAMILY STABILIZATION SERVICES PROGRAM.
27.27 		Subdivision 1.Purpose. (a) The family stabilization services program is 
27.28 	Minnesota's cash assistance program to serve families who are not making significant 
27.29 	progress within the Minnesota family investment program (MFIP) due to a variety of 
27.30 	barriers to employment.
27.31 	(b) The goal of this program is to stabilize and improve the lives of families at risk 
27.32 	of long-term welfare dependency or family instability due to employment barriers such 
27.33 	as physical disability, mental disability, age, or providing care for a disabled household 
27.34 	member. This program provides services to promote and support families to achieve the 
27.35 	greatest possible degree of self-sufficiency.
28.1 		Subd. 2.Definitions. The terms used in this section have the meanings given them 
28.2 	in paragraphs (a) to (d).
28.3 	(a) "Family stabilization services program" means the program established under 
28.4 	this section.
28.5 	(b) "Case management" means the services provided by or through the county agency 
28.6 	to participating families, including assessment, information, referrals, and assistance in the 
28.7 	preparation and implementation of a family stabilization plan under subdivision 5.
28.8 	(c) "Family stabilization plan" means a plan developed by a case manager and 
28.9 	the participant, which identifies the participant's most appropriate path to unsubsidized 
28.10 	employment, family stability, and barrier reduction, taking into account the family's 
28.11 	circumstances.
28.12 	(d) "Family stabilization services" means programs, activities, and services in this 
28.13 	section that provide participants and their family members with assistance regarding, 
28.14 	but not limited to:
28.15 	(1) obtaining and retaining unsubsidized employment;
28.16 	(2) family stability;
28.17 	(3) economic stability; and
28.18 	(4) barrier reduction.
28.19 	The goal of the program is to achieve the greatest degree of economic self-sufficiency 
28.20 	and family well-being possible for the family under the circumstances.
28.21 		Subd. 3.Eligibility. (a) The following MFIP or diversionary work program (DWP) 
28.22 	participants are eligible for the program under this section:
28.23 	(1) a participant identified under section 256J.561, subdivision 2, paragraph (d), who 
28.24 	has or is eligible for an employment plan developed under section 256J.521, subdivision 
28.25 	2, paragraph (c);
28.26 	(2) a participant identified under section 256J.95, subdivision 12, paragraph (b), as 
28.27 	unlikely to benefit from the DWP;
28.28 	(3) a participant who meets the requirements for or has been granted a hardship 
28.29 	extension under section 256J.425, subdivision 2 or 3;
28.30 	(4) a participant who is applying for supplemental security income or Social Security 
28.31 	disability insurance; and
28.32 	(5) a participant who is a noncitizen who has been in the state for six or fewer months.
28.33 	(b) Families must meet all other eligibility requirements for MFIP established in 
28.34 	this chapter. Families are eligible for financial assistance to the same extent as if they 
28.35 	were participating in MFIP.
29.1 		Subd. 4.Universal participation. All caregivers must participate in family 
29.2 	stabilization services as defined in subdivision 2.
29.3 		Subd. 5.Case management; family stabilization plans; coordinated services.
 29.4 	(a) The county agency shall provide family stabilization services to families through a 
29.5 	case management model. A case manager shall be assigned to each participating family 
29.6 	within 30 days after the family begins to receive financial assistance as a participant of 
29.7 	the family stabilization services program. The case manager, with the full involvement 
29.8 	of the family, shall recommend, and the county agency shall establish and modify as 
29.9 	necessary, a family stabilization plan for each participating family. If a participant is 
29.10 	already assigned to a county case manager or a county-contracted case manager in social 
29.11 	services or disability services, that case manager already assigned is the case manager for 
29.12 	purposes of this program.
29.13 	(b) The family stabilization plan must include:
29.14 	(1) each participant's plan for long-term self-sufficiency, including an employment 
29.15 	goal where applicable;
29.16 	(2) an assessment of each participant's strengths and barriers, and any special 
29.17 	circumstances of the participant's family that impact, or are likely to impact, the 
29.18 	participant's progress towards the goals in the plan; and
29.19 	(3) an identification of the services, supports, education, training, and 
29.20 	accommodations needed to reduce or overcome any barriers to enable the family to 
29.21 	achieve self-sufficiency and to fulfill each caregiver's personal and family responsibilities.
29.22 	(c) The case manager and the participant shall meet within 30 days of the family's 
29.23 	referral to the case manager. The initial family stabilization plan must be completed within 
29.24 	30 days of the first meeting with the case manager. The case manager shall establish a 
29.25 	schedule for periodic review of the family stabilization plan that includes personal contact 
29.26 	with the participant at least once per month. In addition, the case manager shall review 
29.27 	and, if necessary, modify the plan under the following circumstances:
29.28 	(1) there is a lack of satisfactory progress in achieving the goals of the plan;
29.29 	(2) the participant has lost unsubsidized or subsidized employment;
29.30 	(3) a family member has failed or is unable to comply with a family stabilization 
29.31 	plan requirement;
29.32 	(4) services, supports, or other activities required by the plan are unavailable;
29.33 	(5) changes to the plan are needed to promote the well-being of the children; or
29.34 	(6) the participant and case manager determine that the plan is no longer appropriate 
29.35 	for any other reason.
30.1 		Subd. 6.Cooperation with program requirements. (a) To be eligible, a participant 
30.2 	shall comply with paragraphs (b) to (e).
30.3 	(b) Participants shall engage in family stabilization plan services for the appropriate 
30.4 	number of hours per week that the activities are scheduled and available, unless good 
30.5 	cause exists for not doing so, as defined in section 256J.57, subdivision 1. The appropriate 
30.6 	number of hours must be based on the participant's plan.
30.7 	(c) The case manager shall review the participant's progress toward the goals in the 
30.8 	family stabilization plan every six months to determine whether conditions have changed, 
30.9 	including whether revisions to the plan are needed.
30.10 	(d) When the participant has increased participation in work-related activities 
30.11 	sufficient to meet the federal participation requirements of TANF, the county agency shall 
30.12 	refer the participant to the MFIP program and assign the participant to a job counselor. 
30.13 	The participant and the job counselor shall meet within 15 days of referral to the MFIP 
30.14 	program to develop an employment plan under section 256J.521. No reapplication is 
30.15 	necessary and financial assistance continues without interruption.
30.16 	(e) A participant's requirement to comply with any or all family stabilization plan 
30.17 	requirements under this subdivision is excused when the case management services, 
30.18 	training and educational services, and family support services identified in the participant's 
30.19 	family stabilization plan are unavailable for reasons beyond the control of the participant, 
30.20 	including when money appropriated is not sufficient to provide the services.
30.21 		Subd. 7.Sanctions. (a) The financial assistance grant of a participating family is 
30.22 	reduced according to section 256J.46 if a participating adult fails without good cause to 
30.23 	comply or continue to comply with the family stabilization plan requirements in this 
30.24 	subdivision, unless compliance has been excused under subdivision 6, paragraph (e).
30.25 	(b) Given the purpose of the family stabilization services program in this section and 
30.26 	the nature of the underlying family circumstances that act as barriers to both employment 
30.27 	and full compliance with program requirements, sanctions are appropriate only when it is 
30.28 	clear that there is both the ability to comply and willful noncompliance by the participant, 
30.29 	as confirmed by a behavioral health or medical professional.
30.30 	(c) Prior to the imposition of a sanction, the county agency shall review the 
30.31 	participant's case to determine if the family stabilization plan is still appropriate and meet 
30.32 	with the participant face-to-face. The participant may bring an advocate to the face-to-face 
30.33 	meeting. During the face-to-face meeting, the county agency must:
30.34 	(1) determine whether the continued noncompliance can be explained and mitigated 
30.35 	by providing a needed family stabilization service, as defined in subdivision 2, paragraph 
30.36 	(d);
31.1 	(2) determine whether the participant qualifies for a good cause exemption under 
31.2 	section 256J.57, or if the sanction is for noncooperation with child support requirements, 
31.3 	determine if the participant qualifies for a good cause exemption under section 256.741, 
31.4 	subdivision 10;
31.5 	(3) determine whether activities in the family stabilization plan are appropriate 
31.6 	based on the family's circumstances;
31.7 	(4) explain the consequences of continuing noncompliance;
31.8 	(5) identify other resources that may be available to the participant to meet the 
31.9 	needs of the family; and
31.10 	(6) inform the participant of the right to appeal under section 256J.40.
31.11 	If the lack of an identified activity or service can explain the noncompliance, the 
31.12 	county shall work with the participant to provide the identified activity.
31.13 	(d) If the participant fails to come to the face-to-face meeting, the case manager or a 
31.14 	designee shall attempt at least one home visit. If a face-to-face meeting is not conducted, 
31.15 	the county agency shall send the participant a written notice that includes the information 
31.16 	under paragraph (c).
31.17 	(e) After the requirements of paragraphs (c) and (d) are met and prior to imposition 
31.18 	of a sanction, the county agency shall provide a notice of intent to sanction under section 
31.19 	256J.57, subdivision 2, and, when applicable, a notice of adverse action under section 
31.20 	256J.31.
31.21 	(f) Section 256J.57 applies to this section except to the extent that it is modified 
31.22 	by this subdivision.

31.23 	Sec. 30. [256J.621] WORK PARTICIPATION TRANSITIONAL ASSISTANCE 
31.24 	PAYMENT.
31.25 	(a) Upon exiting the diversionary work program (DWP) or upon terminating MFIP 
31.26 	cash assistance with earnings, a participant who is employed and working 24 hours per 
31.27 	week may be eligible for transitional assistance of $100 per month to assist in meeting the 
31.28 	family's basic needs as the participant continues to move toward self-sufficiency.
31.29 	(b) To be eligible for a transitional assistance payment, the participant shall not 
31.30 	receive MFIP cash assistance or diversionary work program assistance during the 
31.31 	month and shall be employed an average of at least 24 hours per week to be determined 
31.32 	prospectively. If a holiday falls on a day during a participant's normal work shift, that 
31.33 	holiday counts as a work shift for purposes of calculating hours. When determining a 
31.34 	monthly average, the week that contains the first of the month is counted in the month 
31.35 	in which the following Friday falls. Transitional assistance is available for a maximum 
32.1 	of 12 months from the date the participant exited the diversionary work program or 
32.2 	terminated MFIP cash assistance.
32.3 	(c) The commissioner shall establish minimal policies and develop forms to verify 
32.4 	eligibility for transitional assistance. The commissioner is authorized to change or 
32.5 	modify the provisions of this section in order to comply with federal rules or regulations 
32.6 	promulgated as a result of federal legislation passed in February 2006.
32.7 	(d) Expenditures on the transitional assistance program are maintenance of effort 
32.8 	state funds. Months in which a participant receives transitional assistance under this 
32.9 	section do not count toward the participant's MFIP 60-month time limit.

32.10 	Sec. 31. Minnesota Statutes 2006, section 256J.626, subdivision 1, is amended to read:
32.11 		Subdivision 1.Consolidated fund. The consolidated fund is established to support 
32.12 	counties and tribes in meeting their duties under this chapter. Counties and tribes must use 
32.13 	funds from the consolidated fund to develop programs and services that are designed to 
32.14 	improve participant outcomes as measured in section 256J.751, subdivision 2. Counties 
32.15 	may use the funds for any allowable expenditures under subdivision 2, and to provide case 
32.16 	management services to participants of the family stabilization services program. Tribes 
32.17 	may use the funds for any allowable expenditures under subdivision 2, except those in 
32.18 	subdivision 2, paragraph (a), clauses (1) and (6). 

32.19 	Sec. 32. Minnesota Statutes 2006, section 256J.626, subdivision 2, is amended to read:
32.20 		Subd. 2.Allowable expenditures. (a) The commissioner must restrict expenditures 
32.21 	under the consolidated fund to benefits and services allowed under title IV-A of the federal 
32.22 	Social Security Act. Allowable expenditures under the consolidated fund may include, but 
32.23 	are not limited to:
32.24 	(1) short-term, nonrecurring shelter and utility needs that are excluded from the 
32.25 	definition of assistance under Code of Federal Regulations, title 45, section 260.31, for 
32.26 	families who meet the residency requirement in section 256J.12, subdivisions 1 and 1a. 
32.27 	Payments under this subdivision are not considered TANF cash assistance and are not 
32.28 	counted towards the 60-month time limit; 
32.29 	(2) transportation needed to obtain or retain employment or to participate in other 
32.30 	approved work activities or activities under a family stabilization plan;
32.31 	(3) direct and administrative costs of staff to deliver employment services for 
32.32 	MFIP or,  the diversionary work program, or the family stabilization services program; 
32.33 	 to administer financial assistance,;  and to provide specialized services intended to assist 
33.1 	hard-to-employ participants to transition to work or transition from the family stabilization 
33.2 	services program to MFIP;
33.3 	(4) costs of education and training including functional work literacy and English as 
33.4 	a second language;
33.5 	(5) cost of work supports including tools, clothing, boots, telephone service, and 
33.6 	other work-related expenses;
33.7 	(6) county administrative expenses as defined in Code of Federal Regulations, title 
33.8 	45, section 260(b);
33.9 	(7) services to parenting and pregnant teens;
33.10 	(8) supported work;
33.11 	(9) wage subsidies;
33.12 	(10) child care needed for MFIP or, the  diversionary work program, or the family 
33.13 	stabilization services program  participants to participate in social services;
33.14 	(11) child care to ensure that families leaving MFIP or diversionary work program 
33.15 	will continue to receive child care assistance from the time the family no longer qualifies 
33.16 	for transition year child care until an opening occurs under the basic sliding fee child 
33.17 	care program; and
33.18 	(12) services to help noncustodial parents who live in Minnesota and have minor 
33.19 	children receiving MFIP or DWP assistance, but do not live in the same household as the 
33.20 	child, obtain or retain employment; and
33.21 	(13) services to help families participating in the family stabilization services 
33.22 	program achieve the greatest possible degree of self-sufficiency.
33.23 	(b) Administrative costs that are not matched with county funds as provided in 
33.24 	subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation 
33.25 	under this section. The commissioner shall define administrative costs for purposes of 
33.26 	this subdivision.
33.27 	(c) The commissioner may waive the cap on administrative costs for a county or tribe 
33.28 	that elects to provide an approved supported employment, unpaid work, or community 
33.29 	work experience program for a major segment of the county's or tribe's MFIP population. 
33.30 	The county or tribe must apply for the waiver on forms provided by the commissioner. In 
33.31 	no case shall total administrative costs exceed the TANF limits.

33.32 	Sec. 33. Minnesota Statutes 2006, section 256J.626, subdivision 3, is amended to read:
33.33 		Subd. 3.Eligibility for services. Families with a minor child, a pregnant woman, 
33.34 	or a noncustodial parent of a minor child receiving assistance, with incomes below 200 
33.35 	percent of the federal poverty guideline for a family of the applicable size, are eligible 
34.1 	for services funded under the consolidated fund. Counties and tribes must give priority 
34.2 	to families currently receiving MFIP or, the  diversionary work program, or the family 
34.3 	stabilization services program, and families at risk of receiving MFIP or diversionary 
34.4 	work program.

34.5 	Sec. 34. Minnesota Statutes 2006, section 256J.626, subdivision 4, is amended to read:
34.6 		Subd. 4.County and tribal biennial service agreements. (a) Effective January 1, 
34.7 	2004, and each two-year period thereafter, each county and tribe must have in place an 
34.8 	approved biennial service agreement related to the services and programs in this chapter. 
34.9 	In counties with a city of the first class with a population over 300,000, the county must 
34.10 	consider a service agreement that includes a jointly developed plan for the delivery of 
34.11 	employment services with the city. Counties may collaborate to develop multicounty, 
34.12 	multitribal, or regional service agreements.
34.13 	(b) The service agreements will be completed in a form prescribed by the 
34.14 	commissioner. The agreement must include:
34.15 	(1) a statement of the needs of the service population and strengths and resources 
34.16 	in the community;
34.17 	(2) numerical goals for participant outcomes measures to be accomplished during 
34.18 	the biennial period. The commissioner may identify outcomes from section 256J.751, 
34.19 	subdivision 2, as core outcomes for all counties and tribes; 
34.20 	(3) strategies the county or tribe will pursue to achieve the outcome targets. 
34.21 	Strategies must include specification of how funds under this section will be used and may 
34.22 	include community partnerships that will be established or strengthened; and
34.23 	(4) strategies the county or tribe will pursue under the family stabilization services 
34.24 	program; and 
34.25 	(5) other items prescribed by the commissioner in consultation with counties and 
34.26 	tribes.
34.27 	(c) The commissioner shall provide each county and tribe with information needed 
34.28 	to complete an agreement, including: (1) information on MFIP cases in the county or 
34.29 	tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome 
34.30 	measures; and (4) promising program practices.
34.31 	(d) The service agreement must be submitted to the commissioner by October 15, 
34.32 	2003, and October 15 of each second year thereafter. The county or tribe must allow 
34.33 	a period of not less than 30 days prior to the submission of the agreement to solicit 
34.34 	comments from the public on the contents of the agreement.
35.1 	(e) The commissioner must, within 60 days of receiving each county or tribal service 
35.2 	agreement, inform the county or tribe if the service agreement is approved. If the service 
35.3 	agreement is not approved, the commissioner must inform the county or tribe of any 
35.4 	revisions needed prior to approval.
35.5 	(f) The service agreement in this subdivision supersedes the plan requirements 
35.6 	of section 116L.88. 

35.7 	Sec. 35. Minnesota Statutes 2006, section 256J.626, subdivision 5, is amended to read:
35.8 		Subd. 5.Innovation projects. Beginning January 1, 2005, no more than $3,000,000 
35.9 	of the funds annually appropriated to the commissioner for use in the consolidated 
35.10 	fund shall be available to the commissioner for projects testing innovative approaches 
35.11 	to improving outcomes for MFIP participants, family stabilization services program 
35.12 	participants, and persons at risk of receiving MFIP as detailed in subdivision 3, and 
35.13 	for providing incentives to counties and tribes that exceed performance. Projects shall 
35.14 	be targeted to geographic areas with poor outcomes as specified in section 256J.751, 
35.15 	subdivision 5, or to subgroups within the MFIP case load who are experiencing poor 
35.16 	outcomes. For purposes of an incentive, a county or tribe exceeds performance if the 
35.17 	county or tribe is above the top of the county's or tribe's annualized range of expected 
35.18 	performance on the three-year self-support index under section 256J.751, subdivision 2, 
35.19 	clause (7), and achieves a 50 percent TANF participation rate under section 256J.751, 
35.20 	subdivision 2, clause (7), as averaged across the four quarterly measurements for the most 
35.21 	recent year for which the measurements are available.

35.22 	Sec. 36. Minnesota Statutes 2006, section 256J.626, subdivision 6, is amended to read:
35.23 		Subd. 6.Base allocation to counties and tribes; definitions. (a) For purposes of 
35.24 	this section, the following terms have the meanings given.
35.25 	(1) "2002 historic spending base" means the commissioner's determination of 
35.26 	the sum of the reimbursement related to fiscal year 2002 of county or tribal agency 
35.27 	expenditures for the base programs listed in clause (6), items (i) through (iv), and earnings 
35.28 	related to calendar year 2002 in the base program listed in clause (6), item (v), and the 
35.29 	amount of spending in fiscal year 2002 in the base program listed in clause (6), item (vi), 
35.30 	issued to or on behalf of persons residing in the county or tribal service delivery area.
35.31 	(2) "Adjusted caseload factor" means a factor weighted:
35.32 	(i) 47 percent on the MFIP cases in each county at four points in time in the most 
35.33 	recent 12-month period for which data is available multiplied by the county's caseload 
35.34 	difficulty factor; and
36.1 	(ii) 53 percent on the count of adults on MFIP in each county and tribe at four points 
36.2 	in time in the most recent 12-month period for which data is available multiplied by the 
36.3 	county or tribe's caseload difficulty factor.
36.4 	(3) "Caseload difficulty factor" means a factor determined by the commissioner for 
36.5 	each county and tribe based upon the self-support index described in section 256J.751, 
36.6 	subdivision 2, clause (7).
36.7 	(4) "Initial allocation" means the amount potentially available to each county or tribe 
36.8 	based on the formula in paragraphs (b) through (h).
36.9 	(5) "Final allocation" means the amount available to each county or tribe based on 
36.10 	the formula in paragraphs (b) through (h), after adjustment by subdivision 7.
36.11 	(6) "Base programs" means the:
36.12 	(i) MFIP employment and training services under Minnesota Statutes 2002, section 
36.13 	256J.62, subdivision 1, in effect June 30, 2002;
36.14 	(ii) bilingual employment and training services to refugees under Minnesota Statutes 
36.15 	2002, section 256J.62, subdivision 6, in effect June 30, 2002;
36.16 	(iii) work literacy language programs under Minnesota Statutes 2002, section 
36.17 	256J.62, subdivision 7, in effect June 30, 2002;
36.18 	(iv) supported work program authorized in Laws 2001, First Special Session chapter 
36.19 	9, article 17, section 2, in effect June 30, 2002;
36.20 	(v) administrative aid program under section 256J.76 in effect December 31, 2002; 
36.21 	and
36.22 	(vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48, 
36.23 	in effect June 30, 2002.
36.24 	(b) The commissioner shall:
36.25 	(1) beginning July 1, 2003, determine the initial allocation of funds available under 
36.26 	this section according to clause (2);
36.27 	(2) allocate all of the funds available for the period beginning July 1, 2003, and 
36.28 	ending December 31, 2004, to each county or tribe in proportion to the county's or tribe's 
36.29 	share of the statewide 2002 historic spending base;
36.30 	(3) determine for calendar year 2005 the initial allocation of funds to be made 
36.31 	available under this section in proportion to the county or tribe's initial allocation for the 
36.32 	period of July 1, 2003, to December 31, 2004;
36.33 	(4) determine for calendar year 2006 the initial allocation of funds to be made 
36.34 	available under this section based 90 percent on the proportion of the county or tribe's 
36.35 	share of the statewide 2002 historic spending base and ten percent on the proportion of 
36.36 	the county or tribe's share of the adjusted caseload factor;
37.1 	(5) determine for calendar year 2007 the initial allocation of funds to be made 
37.2 	available under this section based 70 percent on the proportion of the county or tribe's 
37.3 	share of the statewide 2002 historic spending base and 30 percent on the proportion of the 
37.4 	county or tribe's share of the adjusted caseload factor; and
37.5 	(6) determine for calendar year 2008 and subsequent years the initial allocation of 
37.6 	funds to be made available under this section based 50 percent on the proportion of the 
37.7 	county or tribe's share of the statewide 2002 historic spending base and 50 percent on the 
37.8 	proportion of the county or tribe's share of the adjusted caseload factor.
37.9 	(c) With the commencement of a new or expanded tribal TANF program or an 
37.10 	agreement under section 256.01, subdivision 2, paragraph (g), in which some or all of 
37.11 	the responsibilities of particular counties under this section are transferred to a tribe, 
37.12 	the commissioner shall:
37.13 	(1) in the case where all responsibilities under this section are transferred to a tribal 
37.14 	program, determine the percentage of the county's current caseload that is transferring to a 
37.15 	tribal program and adjust the affected county's allocation accordingly; and
37.16 	(2) in the case where a portion of the responsibilities under this section are 
37.17 	transferred to a tribal program, the commissioner shall consult with the affected county or 
37.18 	counties to determine an appropriate adjustment to the allocation.
37.19 	(d) Effective January 1, 2005, counties and tribes will have their final allocations 
37.20 	adjusted based on the performance provisions of subdivision 7.

37.21 	Sec. 37. [256J.678] INJURY PROTECTION FOR COMMUNITY  WORK 
37.22 	EXPERIENCE PARTICIPANTS.
37.23 		Subdivision 1.Authority. The Department of Administration, in consultation with 
37.24 	the Department of Human Services, shall contract with an approved insurance carrier to 
37.25 	provide coverage for injuries or death resulting from a person's participation in paid and 
37.26 	unpaid community work experience programs authorized by the commissioner for persons 
37.27 	applying for or receiving DWP, MFIP, or food stamps, and participating in the Minnesota 
37.28 	parent's fair share program in a county with an approved community investment program 
37.29 	for obligors.
37.30 		Subd. 2.Claims. Claims that are subject to this section must be reported to the 
37.31 	insurance carrier in a format approved by the carrier by the department of the state, county 
37.32 	agency, or tribal program responsible for supervising the work.
37.33 		Subd. 3.Exclusive procedure. The procedure established by this section 
37.34 	is exclusive of all other legal, equitable, and statutory remedies against the state, 
37.35 	employees of the state, or the state's political subdivisions. The claimant is not entitled 
38.1 	to seek damages from any other state, county, tribal, or reservation insurance policy or 
38.2 	self-insurance program.
38.3 		Subd. 4.Requirements for worksites. The department of the state, county agency, 
38.4 	or tribal program responsible for supervising the work shall ensure that no participant is 
38.5 	assigned to a worksite which is in violation of federal Occupational Safety and Health 
38.6 	Administration and state Department of Labor and Industry safety standards or is under 
38.7 	investigation to determine if those violations have occurred. All participants must be 
38.8 	given the same safety information and training given to a paid employee performing 
38.9 	similar work at that worksite.

38.10 	Sec. 38. Minnesota Statutes 2006, section 256J.751, subdivision 2, is amended to read:
38.11 		Subd. 2.Quarterly comparison report. The commissioner shall report quarterly to 
38.12 	all counties on each county's performance on the following measures:
38.13 	(1) percent of MFIP caseload working in paid employment;
38.14 	(2) percent of MFIP caseload receiving only the food portion of assistance;
38.15 	(3) number of MFIP cases that have left assistance;
38.16 	(4) median placement wage rate;
38.17 	(5) caseload by months of TANF assistance;
38.18 	(6) percent of MFIP and diversionary work program (DWP) cases off cash assistance 
38.19 	or working 30 or more hours per week at one-year, two-year, and three-year follow-up 
38.20 	points from a baseline quarter. This measure is called the self-support index. The 
38.21 	commissioner shall report quarterly an expected range of performance for each county, 
38.22 	county grouping, and tribe on the self-support index. The expected range shall be derived 
38.23 	by a statistical methodology developed by the commissioner in consultation with the 
38.24 	counties and tribes. The statistical methodology shall control differences across counties 
38.25 	in economic conditions and demographics of the MFIP and DWP case load; and
38.26 	(7) the MFIP TANF work participation rate, defined as the participation requirements 
38.27 	specified in title 1 of Public Law 104-193 applied to all MFIP cases except child only 
38.28 	cases under Public Law 109-171, the Deficit Reduction Act of 2005.

38.29 	Sec. 39. Minnesota Statutes 2006, section 256J.751, subdivision 5, is amended to read:
38.30 		Subd. 5.Failure to meet federal performance standards. (a) If sanctions occur 
38.31 	for failure to meet the performance standards specified in title 1 of Public Law 104-193 
38.32 	of the Personal Responsibility and Work Opportunity Act of 1996, and under Public 
38.33 	Law 109-171, the Deficit Reduction Act of 2005, the state shall pay 88 percent of the 
38.34 	sanction. The remaining 12 percent of the sanction will be paid by the counties. The 
39.1 	county portion of the sanction will be distributed across all counties in proportion to each 
39.2 	county's percentage of the MFIP average monthly caseload during the period for which 
39.3 	the sanction was applied.
39.4 	(b) If a county fails to meet the performance standards specified in title 1 of Public 
39.5 	Law 104-193 of the Personal Responsibility and Work Opportunity Act of 1996, and 
39.6 	Public Law 109-171, the Deficit Reduction Act of 2005, for any year, the commissioner 
39.7 	shall work with counties to organize a joint state-county technical assistance team to work 
39.8 	with the county. The commissioner shall coordinate any technical assistance with other 
39.9 	departments and agencies including the Departments of Employment and Economic 
39.10 	Development and Education as necessary to achieve the purpose of this paragraph.
39.11 	(c) For state performance measures, a low-performing county is one that:
39.12 	(1) performs below the bottom of their expected range for the measure in subdivision 
39.13 	2, clause (7) (6), in an annualized measurement reported in October of each year; or
39.14 	(2) performs below 40 percent for the measure in subdivision 2, clause (8) (7), as 
39.15 	averaged across the four quarterly measurements for the year, or the ten counties with the 
39.16 	lowest rates if more than ten are below 40 percent.
39.17 	(d) Low-performing counties under paragraph (c) must engage in corrective action 
39.18 	planning as defined by the commissioner. The commissioner may coordinate technical 
39.19 	assistance as specified in paragraph (b) for low-performing counties under paragraph (c).

39.20 	Sec. 40. Minnesota Statutes 2006, section 256J.77, is amended to read:
39.21 	256J.77 AGING EXPIRATION OF CASH BENEFITS.
39.22 	Cash benefits under chapters 256D, 256J, and 256K, except food stamp benefits 
39.23 	under chapter 256D,  by warrants or electronic benefit transfer that have not been accessed 
39.24 	within 90 days of issuance shall be canceled. Cash benefits may be replaced after they are 
39.25 	canceled, for up to one year after the date of issuance, if failure to do so would place the 
39.26 	client or family at risk. For purposes of this section, "accessed" means cashing a warrant 
39.27 	or making at least one withdrawal from benefits deposited in an electronic benefit account.

39.28 	Sec. 41. Minnesota Statutes 2006, section 256J.95, subdivision 3, is amended to read:
39.29 		Subd. 3.Eligibility for diversionary work program. (a) Except for the categories 
39.30 	of family units listed below, all family units who apply for cash benefits and who 
39.31 	meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must 
39.32 	participate in the diversionary work program. Family units that are not eligible for the 
39.33 	diversionary work program include: 
39.34 	(1) child only cases;
40.1 	(2) a single-parent family unit that includes a child under 12 weeks of age. A parent 
40.2 	is eligible for this exception once in a parent's lifetime and is not eligible if the parent 
40.3 	has already used the previously allowed child under age one exemption from MFIP 
40.4 	employment services;
40.5 	(3) a minor parent without a high school diploma or its equivalent;
40.6 	(4) an 18- or 19-year-old caregiver without a high school diploma or its equivalent 
40.7 	who chooses to have an employment plan with an education option;
40.8 	(5) a caregiver age 60 or over;
40.9 	(6) family units with a caregiver who received DWP benefits in the 12 months prior 
40.10 	to the month the family applied for DWP, except as provided in paragraph (c);
40.11 	(7) family units with a caregiver who received MFIP within the 12 months prior to 
40.12 	the month the family unit applied for DWP;
40.13 	(8) a family unit with a caregiver who received 60 or more months of TANF 
40.14 	assistance; and
40.15 	(9) a family unit with a caregiver who is disqualified from DWP or MFIP due to 
40.16 	fraud.
40.17 	(b) A two-parent family must participate in DWP unless both caregivers meet the 
40.18 	criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit 
40.19 	includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8), or (9).
40.20 	(c) Once DWP eligibility is determined, the four months run consecutively. If a 
40.21 	participant leaves the program for any reason and reapplies during the four-month period, 
40.22 	the county must redetermine eligibility for DWP.
40.23 	(d) Newly arrived refugees and asylees as defined in Code of Federal Regulations, 
40.24 	title 45, chapter IV, section 400.13, who (1) have been assigned to a local refugee 
40.25 	resettlement agency, (2) have a case manager, or (3) are enrolled in the federal matching 
40.26 	grant program under United States Code, title 8, chapter 12, section 1522, are exempt from 
40.27 	participating in the diversionary work program and may enroll directly into the family 
40.28 	stabilization services program. Refugees must have the option of being assigned to an 
40.29 	agency that has employees who are familiar with their culture, speak their language, and 
40.30 	have more than one year of experience in assisting refugees in finding employment.

40.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

40.32 	Sec. 42. Minnesota Statutes 2006, section 256J.95, subdivision 13, is amended to read:
40.33 		Subd. 13.Immediate referral to employment services. Within one working day of 
40.34 	determination that the applicant is eligible for the diversionary work program, but before 
40.35 	benefits are issued to or on behalf of the family unit, the county shall refer all caregivers to 
41.1 	employment services. The referral to the DWP employment services must be in writing 
41.2 	and must contain the following information:
41.3 	(1) notification that, as part of the application process, applicants are required to 
41.4 	develop an employment plan or the DWP application will be denied;
41.5 	(2) the employment services provider name and phone number;
41.6 	(3) the date, time, and location of the scheduled employment services interview;
41.7 	(4) (3) the immediate availability of supportive services, including, but not limited 
41.8 	to, child care, transportation, and other work-related aid; and
41.9 	(5) (4) the rights, responsibilities, and obligations of participants in the program, 
41.10 	including, but not limited to, the grounds for good cause, the consequences of refusing or 
41.11 	failing to participate fully with program requirements, and the appeal process.

41.12 	Sec. 43. MINNESOTA FOOD SUPPORT PROGRAM SIMPLIFIED 
41.13 	APPLICATION.
 41.14 	The Department of Human Services shall create a simplified application for the 
41.15 	Minnesota food support program for persons over the age of 60 and persons with 
41.16 	disabilities. The application must be no longer than three pages in length.

41.17 	Sec. 44. SUPPORTED WORK.
 41.18 	Funds appropriated to the commissioner under section 45, subdivision 4, must be 
41.19 	allocated to counties based on the criteria under this section. Supported work under this 
41.20 	section must be modeled after the mental health supported work model, which provides 
41.21 	an intensive continuum of employment assistance, including outreach and recruitment, 
41.22 	program orientation and intake, testing and assessment, job development and marketing, 
41.23 	preworksite training, supported worksite experience, job coaching, and postplacement 
41.24 	follow-up in addition to extensive case management and referral services. 
41.25 	A county is eligible to receive an allocation under section 45, subdivision 4, if:
41.26 	(1) the county is not meeting the federal work participation rate;
41.27 	(2) the county has participants who are required to perform work activities under 
41.28 	Minnesota Statutes, chapter 256J, but are not meeting hourly work requirements; and
41.29 	(3) the county has assessed participants who have completed six weeks of job search 
41.30 	or are required to perform work activities and are not meeting the hourly requirements, 
41.31 	and the county has determined that the participant would benefit from working in a 
41.32 	supported work environment.

41.33 	Sec. 45. APPROPRIATIONS.
 42.1 		Subdivision 1.Work study. $1,500,000 is appropriated from the TANF reserve 
42.2 	account to the Minnesota Office of Higher Education for the biennium beginning July 1, 
42.3 	2007, for work study grants under Minnesota Statutes, section 136A.233, specifically for 
42.4 	low-income individuals who receive assistance under Minnesota Statutes, chapter 256J.
42.5 		Subd. 2.Car loans and car repairs. $3,000,000 is appropriated from the TANF 
42.6 	reserve account to the commissioner of human services for the biennium beginning July 
42.7 	1, 2007, for programs that provide car loans and car repairs to individuals who receive 
42.8 	assistance under Minnesota Statutes, chapter 256J.
42.9 		Subd. 3.Integrated service projects. $3,000,000 is appropriated from the TANF 
42.10 	reserve account to the commissioner of human services for the biennium beginning July 1, 
42.11 	2007, to fund the integrated services project for MFIP families.
42.12 		Subd. 4.Supported work. $....... is appropriated from the TANF reserve account 
42.13 	to the commissioner of human services for the biennium beginning July 1, 2007, for 
42.14 	supported work for MFIP participants. The funds appropriated under this section are 
42.15 	specifically for counties that are not meeting the work participation rates and must be 
42.16 	allocated according to section 1.

42.17 	Sec. 46.  REPEALER.
 42.18 	Minnesota Statutes 2006, sections 256B.0631; 256J.24, subdivision 6; 256J.29; 
42.19 	256J.37, subdivisions 3a and 3b; 256J.626, subdivisions 7 and 9; and 256J.68, are repealed.