1.1A bill for an act1.2relating to human services; modifying TANF maintenance of effort programs;1.3amending Laws 2007, chapter 147, article 19, section 3, subdivision 1.1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.5    Section 1. Laws 2007, chapter 147, article 19, section 3, subdivision 1, is amended to 1.6read:

1.7Subdivision 1. Total Appropriation$ 5,294,627,000 $ 5,695,458,000 

1.8Appropriations by Fund 1.92008 2009 1.101.11General 4,614,727,000 4,940,293,0004,931,459,0001.121.13State Government 
                  		Special Revenue 549,000 565,000 1.14Health Care Access 426,628,000 492,759,000 1.151.16Federal TANF 250,537,000 260,051,000268,885,0001.17Lottery Prize Fund 2,185,000 1,790,000 

1.18The amounts that may be spent for each 1.19purpose are specified in the following 1.20subdivisions. 1.21Receipts for Systems Projects.1.22Appropriations and federal receipts for 1.23information system projects for MAXIS, 1.24PRISM, MMIS, and SSIS must be deposited 1.25in the state system account authorized in 2.1Minnesota Statutes, section 
         256.014. Money 2.2appropriated for computer projects approved 2.3by the Minnesota Office of Enterprise 2.4Technology, funded by the legislature, and 2.5approved by the commissioner of finance, 2.6may be transferred from one project to 2.7another and from development to operations 2.8as the commissioner of human services 2.9considers necessary. Any unexpended 2.10balance in the appropriation for these 2.11projects does not cancel but is available for 2.12ongoing development and operations. 2.13Pay for Performance. (a) Of the general 2.14fund appropriation, $272,000 each year 2.15is available to the commissioner of 2.16human services only under the following 2.17circumstances: 2.18(1) $272,000 shall be made available by the 2.19commissioner of finance on January 1, 2009, 2.20only after notification by the commissioner 2.21of human services to the commissioner of 2.22finance and to the chairs of the relevant house 2.23of representatives and senate finance and 2.24policy committees that the average number 2.25of days from the receipt of a MinnesotaCare 2.26application at the state processing unit until 2.27the initial eligibility determination of the 2.28application was 30 days or less during the 2.29period October 1, 2007, to September 30, 2.302008. Applications transferred from counties 2.31to the state processing unit are excluded from 2.32this calculation; and 2.33(2) $272,000 shall be made available by the 2.34commissioner of finance on January 1, 2009, 2.35only after notification by the commissioner 3.1of human services to the commissioner of 3.2finance and to the chairs of the relevant 3.3house of representatives and senate finance 3.4and policy committees that the commissioner 3.5initiated a separate treatment program for 3.6persons in the Minnesota sex offenders 3.7program who are between the ages of 18 and 3.825 by January 1, 2008. 3.9(b) Regardless of whether these 3.10appropriations are made available to 3.11the commissioner of human services, they 3.12shall be part of base level funding for the 3.13biennium beginning July 1, 2009. 3.14Purchasing Alliance Fund Transfer.3.15On September 1, 2007, any remaining 3.16balance in the purchasing alliance stop-loss 3.17fund account established under Minnesota 3.18Statutes, section 
         256.956, shall transfer to 3.19the general fund. 3.20Nonfederal Share Transfers. The 3.21nonfederal share of activities for which 3.22federal administrative reimbursement is 3.23appropriated to the commissioner may be 3.24transferred to the special revenue fund. 3.25TANF Maintenance of Effort. (a) In order 3.26to meet the basic MOE requirements of the 3.27TANF block grant specified under Code 3.28of Federal Regulations, title 45, section 3.29263.1, the commissioner may only report 3.30nonfederal money expended for allowable 3.31activities listed in the following clauses as 3.32TANF/MOE expenditures: 3.33(1) MFIP cash, diversionary work program, 3.34and food assistance benefits under Minnesota 3.35Statutes, chapter 256J; 4.1(2) the child care assistance programs 4.2under Minnesota Statutes, sections 
         119B.034.3and 
         119B.05, and county child care 4.4administrative costs under Minnesota 4.5Statutes, section 
         119B.15; 4.6(3) state and county MFIP administrative 4.7costs under Minnesota Statutes, chapters 4.8256J and 256K; 4.9(4) state, county, and tribal MFIP 4.10employment services under Minnesota 4.11Statutes, chapters 256J and 256K; 4.12(5) expenditures made on behalf of 4.13noncitizen MFIP recipients who qualify 4.14for the medical assistance without federal 4.15financial participation program under 4.16Minnesota Statutes, section 
         256B.06, 4.17subdivision 4
         , paragraphs (d), (e), and (j); 4.18and 4.19(6) qualifying working family credit 4.20expenditures under Minnesota Statutes, 4.21section 
         290.0671. 4.22(b) The commissioner shall ensure that 4.23sufficient qualified nonfederal expenditures 4.24are made each year to meet the state's 4.25TANF/MOE requirements. For the activities 4.26listed in paragraph (a), clauses (2) to 4.27(6), the commissioner may only report 4.28expenditures that are excluded from the 4.29definition of assistance under Code of 4.30Federal Regulations, title 45, section 
         260.31. 4.31(c) The commissioner shall ensure that the 4.32MOE used by the commissioner of finance 4.33for the February and November forecasts 4.34required under Minnesota Statutes, section 4.3516A.103
         , contains expenditures under 5.1paragraph (a), clause (1), equal to at least 16 5.2percent of the total required under Code of 5.3Federal Regulations, title 45, section 263.1. 5.4(d) For the federal fiscal year beginning 5.5October 1, 2007, the commissioner may not 5.6claim an amount of TANF/MOE in excess of 5.7the 75 percent standard in Code of Federal 5.8Regulations, title 45, section 263.1(a)(2), 5.9except:5.10(1) to the extent necessary to meet the 80 5.11percent standard under Code of Federal 5.12Regulations, title 45, section 263.1(a)(1), 5.13if it is determined by the commissioner 5.14that the state will not meet the TANF work 5.15participation target rate for the current year;5.16(2) to provide any additional amounts under 5.17Code of Federal Regulations, title 45, section 5.18264.5, that relate to replacement of TANF 5.19funds due to the operation of TANF penalties; 5.20(3) to provide any additional amounts that 5.21may contribute to avoiding or reducing 5.22TANF work participation penalties through 5.23the operation of the excess MOE provisions 5.24of Code of Federal Regulations, title 45, 5.25section 261.43(a)(2); and 5.26(4) for the purposes of clauses (1) to (3), 5.27the commissioner may supplement the 5.28MOE claim with working family credit 5.29expenditures to the extent such expenditures 5.30or other qualified expenditures are otherwise 5.31available after considering the expenditures 5.32allowed in this section.5.33(e) If allowable by the federal Office of 5.34Family Assistance, the commissioner may 5.35claim excess MOE with respect to federal 6.1fiscal years 2006 and 2007 to the extent 6.2that working family credit expenditures are 6.3otherwise available to supplement the state's 6.4MOE claim for those years after considering 6.5the expenditures allowed in this subdivision. 6.6If other qualified expenditures are 6.7available, the commissioner may use those 6.8expenditures as excess MOE and shall 6.9report those expenditures to the chairs of 6.10the senate and house of representatives 6.11Finance Committees, the senate Health and 6.12Human Services Budget Division, and house 6.13of representatives Health Care and Human 6.14Services Finance Division by April 15, 2008.6.15(f)  Minnesota Statutes, section 
         256.011, 6.16subdivision 3
         , which requires that federal 6.17grants or aids secured or obtained under that 6.18subdivision be used to reduce any direct 6.19appropriations provided by law, does not 6.20apply if the grants or aids are federal TANF 6.21funds.6.22(e) (g) Notwithstanding any contrary 6.23provision in this article, this rider expires 6.24June 30, 2011. 6.25Working Family Credit Expenditures as 6.26TANF/MOE. The commissioner may claim 6.27as TANF/MOE up to $6,707,000 per year 6.28for fiscal year 2008 through fiscal year 2011. 6.29Notwithstanding any contrary provision in 6.30this article, this rider expires June 30, 2011. 6.31Additional Working Family Credit 6.32Expenditures to be Claimed for 6.33TANF/MOE. In addition to the amounts 6.34provided in this section, the commissioner 7.1may count the following amounts of working 7.2family credit expenditure as TANF/MOE: 7.3(1) fiscal year 2008, $11,097,000; 7.4(2) fiscal year 2009, $25,401,000; 7.5(3) fiscal year 2010, $20,398,000; and 7.6(4) fiscal year 2011, $19,841,000. 7.7Notwithstanding any contrary provision in 7.8this article, this rider expires June 30, 2011. 7.9Capitation Rate Increase. Of the health care 7.10access fund appropriations to the University 7.11of Minnesota in the higher education 7.12omnibus appropriation bill, $2,157,000 in 7.13fiscal year 2008 and $2,157,000 in fiscal year 7.142009 are to be used to increase the capitation 7.15payments under Minnesota Statutes, section 7.16256B.69
         . 7.17EFFECTIVE DATE.This section is effective the day following final enactment.