HF 161

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to human services; establishing welfare 
  1.3             reform initiatives; amending Minnesota Statutes 1996, 
  1.4             sections 13.46, subdivisions 1 and 2; 13.82, 
  1.5             subdivision 1; 13.99, by adding a subdivision; 84.98, 
  1.6             subdivision 3; 124.17, subdivisions 1d and 1e; 
  1.7             124.175; 124A.02, subdivision 16; 124A.22, subdivision 
  1.8             3; 136A.125, subdivision 2; 196.27; 237.70, 
  1.9             subdivision 4a; 254B.02, subdivision 1; 256.01, 
  1.10            subdivisions 2 and 4a; 256.017, subdivisions 1, 2, and 
  1.11            4; 256.019; 256.025, subdivisions 2 and 4; 256.031, 
  1.12            subdivision 5, and by adding subdivisions; 256.033, 
  1.13            subdivisions 1 and 1a; 256.045, subdivision 3; 
  1.14            256.046; 256.74, subdivision 1; 256.82, subdivisions 1 
  1.15            and 2; 256.871, subdivision 6; 256.935; 256.98, 
  1.16            subdivisions 1, 3, 4, and 8; 256.981; 256.983, 
  1.17            subdivisions 1 and 4; 256.984, subdivision 1; 
  1.18            256.9850; 256.986; 256.9861, subdivisions 1, 2, 4, and 
  1.19            5; 256.998, by adding subdivisions; 256B.055, 
  1.20            subdivision 5, and by adding subdivisions; 256B.056, 
  1.21            subdivisions 1a, 3, and 4; 256B.057, subdivisions 1, 
  1.22            1b, 2a, and 2b; 256B.06, subdivision 4; 256B.0913, 
  1.23            subdivision 14; 256B.19, subdivisions 1, 2a, and 2b; 
  1.24            256D.01, subdivisions 1 and 1a; 256D.02, subdivisions 
  1.25            6 and 12a; 256D.03, subdivisions 2, 2a, 3, and 6; 
  1.26            256D.05, subdivisions 1, 2, 3, 5, 7, and 8; 256D.051, 
  1.27            subdivisions 1a, 2a, 3a, and by adding a subdivision; 
  1.28            256D.0511, subdivision 2; 256D.055; 256D.06, 
  1.29            subdivision 2; 256D.08, subdivisions 1 and 2; 256D.09, 
  1.30            subdivision 6, and by adding a subdivision; 256D.36; 
  1.31            256D.435, subdivision 3; 256D.44, subdivision 5; 
  1.32            256E.03, subdivision 2; 256E.06, subdivisions 1 and 3; 
  1.33            256E.07, subdivision 1; 256E.08, subdivision 3; 
  1.34            256F.04, subdivisions 1 and 2; 256F.05, subdivisions 
  1.35            2, 3, 4, 5, and 8; 256F.06, subdivisions 1 and 2; 
  1.36            256G.01, subdivision 4; 257.3573, subdivision 2; 
  1.37            259.67, subdivision 4; 260.38; 268.0111, subdivisions 
  1.38            5 and 7; 268.0122, subdivision 3; 268.552, subdivision 
  1.39            5; 268.6751, subdivision 1; 268.676, subdivision 1; 
  1.40            268.86, subdivision 2; 268.871, subdivision 1; 268.90, 
  1.41            subdivision 2; 268.916; 268.95, subdivision 4; 
  1.42            270A.03, subdivision 5; 388.23, subdivision 1; 393.07, 
  1.43            subdivisions 6 and 10; and 477A.0122, subdivision 2; 
  1.44            proposing coding for new law in Minnesota Statutes, 
  1.45            chapters 256; and 256B; proposing coding for new law 
  1.46            as Minnesota Statutes, chapters 256J; and 256K; 
  2.1             repealing Minnesota Statutes 1996, sections 256.12, 
  2.2             subdivisions 9, 10, 14, 15, 20, 21, 22, and 23; 
  2.3             256.72; 256.73; 256.7341; 256.7351; 256.7352; 
  2.4             256.7353; 256.7354; 256.7355; 256.7356; 256.7357; 
  2.5             256.7358; 256.7359; 256.736; 256.7365; 256.7366; 
  2.6             256.737; 256.738; 256.7381; 256.7382; 256.7383; 
  2.7             256.7384; 256.7385; 256.7386; 256.7387; 256.7388; 
  2.8             256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 
  2.9             256.745; 256.75; 256.76; 256.78; 256.80; 256.81; 
  2.10            256.82; 256.84; 256.85; 256.86; 256.863; 256.871; 
  2.11            256.8711; 256.879; 256B.041, subdivision 5; 256B.055, 
  2.12            subdivision 3; 256B.062; 256B.19, subdivision 1a; 
  2.13            256D.01, subdivision 1e; 256D.02, subdivisions 5 and 
  2.14            6; 256D.05; 256D.0511, subdivisions 1, 3, 4, and 5; 
  2.15            and 256F.05, subdivisions 5 and 7.  
  2.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.17                             ARTICLE 1 
  2.18           MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 
  2.19     Section 1.  [256J.01] [MINNESOTA FAMILY INVESTMENT 
  2.20  PROGRAM-STATEWIDE.] 
  2.21     Subdivision 1.  [EXPANSION OF MINNESOTA FAMILY INVESTMENT 
  2.22  PROGRAM-STATEWIDE (MFIP-S).] This chapter and chapter 256K may 
  2.23  be cited as the Minnesota family investment program-statewide 
  2.24  (MFIP-S).  MFIP-S is the statewide expansion of the Minnesota 
  2.25  family investment plan authorized under section 256.031 and 
  2.26  Minnesota family investment plan-Ramsey county (MFIP-R) in 
  2.27  section 256.047. 
  2.28     Subd. 2.  [IMPLEMENTATION OF TEMPORARY ASSISTANCE FOR NEEDY 
  2.29  FAMILIES (TANF).] The Personal Responsibility and Work 
  2.30  Opportunity Reconciliation Act of 1996, Public Law Number 
  2.31  104-193, eliminates the entitlement program of aid to families 
  2.32  with dependent children (AFDC) and replaces it with block grants 
  2.33  to states for temporary assistance for needy families (TANF).  
  2.34  TANF provides cash assistance for a limited time to families 
  2.35  with children and to pregnant women.  Minnesota's TANF 
  2.36  assistance will be provided through a statewide expansion of the 
  2.37  MFIP.  The modifications specified in this chapter are necessary 
  2.38  to comply with the new federal law and to improve MFIP. 
  2.39     Subd. 3.  [MISSION STATEMENT.] The goals of the statewide 
  2.40  expansion of MFIP include the goals of MFIP and MFIP-R.  The 
  2.41  statewide expansion of MFIP also includes the additional goals 
  2.42  of Public Law Number 104-193 to reduce dependency on assistance 
  2.43  by preventing out-of-wedlock pregnancies, promoting marriage, 
  3.1   and encouraging the formation and maintenance of two-parent 
  3.2   families. 
  3.3      Subd. 4.  [RELATIONSHIP TO OTHER STATUTES AND 
  3.4   RULES.] MFIP-S replaces eligibility for families with children 
  3.5   and pregnant women under the general assistance program, 
  3.6   governed by sections 256D.01 to 256D.21 and Minnesota Rules, 
  3.7   parts 9500.1200 to 9500.1270.  
  3.8      Subd. 5.  [CHANGES TO WAIVERS.] The commissioner may 
  3.9   negotiate and obtain changes in the federal waivers and terms 
  3.10  and conditions contained in the MFIP, MFIP-R, and MFIP-S 
  3.11  programs.  The commissioner may also terminate federal waivers 
  3.12  by directing so in the applicable state plan. 
  3.13     Subd. 6.  [ADMINISTRATIVE RULES.] Because of the need to 
  3.14  have a flexible and swift means of implementing this program 
  3.15  statewide, the commissioner may adopt rules to implement this 
  3.16  chapter and chapter 256K.  The rules adopted by the commissioner 
  3.17  to implement this program are excluded from the rulemaking 
  3.18  provisions of chapter 14 and from the definition of a rule.  
  3.19  Notwithstanding section 14.386, paragraph (b), the exempt rules 
  3.20  adopted under this section may continue in effect as long as the 
  3.21  program is in operation. 
  3.22     Subd. 7.  [COMPLIANCE SYSTEM.] The commissioner shall 
  3.23  administer a compliance system for the state's temporary 
  3.24  assistance to needy families (TANF) program, the food stamp 
  3.25  program, emergency assistance, general assistance, medical 
  3.26  assistance, general assistance medical care, emergency general 
  3.27  assistance, Minnesota supplemental assistance, preadmission 
  3.28  screening child support program, and alternative care grants 
  3.29  under the powers and authorities named in section 256.01, 
  3.30  subdivision 2.  The purpose of the compliance system is to 
  3.31  permit the commissioner to supervise the administration of 
  3.32  public assistance programs and to enforce timely and accurate 
  3.33  distribution of benefits, completeness of service and efficient 
  3.34  and effective program management and operations, to increase 
  3.35  uniformity and consistency in the administration and delivery of 
  3.36  public assistance programs throughout the state, and to reduce 
  4.1   the possibility of sanction and fiscal disallowances for 
  4.2   noncompliance with federal regulations and state statutes. 
  4.3      Sec. 2.  [256J.02] [FEDERAL TEMPORARY ASSISTANCE TO NEEDY 
  4.4   FAMILIES BLOCK GRANT.] 
  4.5      The commissioner of human services is authorized to 
  4.6   receive, administer, and expend funds available under the 
  4.7   temporary assistance to needy families block grant authorized 
  4.8   under title I of Public Law Number 104-193, the Personal 
  4.9   Responsibility and Work Opportunity Act of 1996. 
  4.10     Sec. 3.  [256J.03] [USE OF MONEY.] 
  4.11     State money appropriated for purposes of this section and 
  4.12  TANF block grant money shall be used for: 
  4.13     (1) financial assistance to or on behalf of any dependent 
  4.14  child who resides in Minnesota under section 256J.11; 
  4.15     (2) employment and training programs under section 256J.27; 
  4.16     (3) emergency financial assistance and services under 
  4.17  section 256J.37; and 
  4.18     (4) program administration under section 256J.01. 
  4.19     Sec. 4.  [256J.04] [CARRY-FORWARD OF FEDERAL MONEY.] 
  4.20     Temporary assistance to needy families block grant money 
  4.21  shall be appropriated for the purposes in section 256J.02 and 
  4.22  shall be available until expended. 
  4.23     Sec. 5.  [256J.05] [AUTHORITY TO TRANSFER.] 
  4.24     Subject to limitations of title I of Public Law Number 
  4.25  104-193, the Personal Responsibility and Work Opportunity Act of 
  4.26  1996, the legislature may transfer money from the TANF block 
  4.27  grant to the child care fund under section 119B.01, or the Title 
  4.28  XX block grant under section 256E.07. 
  4.29     Sec. 6.  [256J.06] [INDIRECT COST LIABILITY.] 
  4.30     Notwithstanding the provisions of section 16A.127, the 
  4.31  statewide and agency indirect cost liability identified as part 
  4.32  of the TANF grant for any current fiscal year shall be limited 
  4.33  to no more than the amount received in fiscal year 1996. 
  4.34     Sec. 7.  [256J.07] [COUNTY ADMINISTRATIVE AID.] 
  4.35     Subdivision 1.  [ADMINISTRATIVE FUNCTIONS.] Beginning July 
  4.36  1, 1997, counties shall receive federal funds from the TANF 
  5.1   block grant for use in supporting eligibility, fraud control, 
  5.2   and other related administrative functions.  The federal funds 
  5.3   available for distribution, as determined by the commissioner, 
  5.4   shall be an amount equal to federal administrative aid 
  5.5   distributed for fiscal year 1996 under titles IV-A and IV-F of 
  5.6   the Social Security Act in effect prior to October 1, 1996.  
  5.7   This amount shall include the amount paid for local 
  5.8   collaboratives under sections 245.4932 and 256F.13, but shall 
  5.9   not include administrative aid associated with child care under 
  5.10  section 119B.05, with emergency assistance intensive family 
  5.11  preservation services under section 256.8711, with 
  5.12  administrative activities as part of the employment and training 
  5.13  services under section 256.736; or with fraud prevention 
  5.14  investigation activities under section 256.983. 
  5.15     Subd. 2.  [ALLOCATION OF COUNTY FUNDS.] The commissioner 
  5.16  shall determine and allocate the funds available to each county, 
  5.17  on a calendar year basis, proportional to the amount paid to 
  5.18  each county for fiscal year 1996, excluding the amount paid for 
  5.19  local collaboratives under sections 245.4932 and 256F.13.  For 
  5.20  the period beginning July 1, 1997, and ending December 31, 1998, 
  5.21  each county shall receive 150 percent of its base year 
  5.22  allocation. 
  5.23     Subd. 3.  [MONTHLY PAYMENTS TO COUNTIES.] The commissioner 
  5.24  shall pay counties monthly as federal funds are available.  The 
  5.25  commissioner may certify the payments for the first three months 
  5.26  of a calendar year. 
  5.27     Subd. 4.  [REPORTING REQUIREMENT.] The commissioner shall 
  5.28  specify requirements for reporting according to section 256.01, 
  5.29  subdivision 2, paragraph (17).  Each county shall be reimbursed 
  5.30  at a rate of 50 percent of eligible expenditures up to the limit 
  5.31  of its allocation. 
  5.32     Sec. 8.  [256J.08] [DEFINITIONS.] 
  5.33     Subdivision 1.  [SCOPE OF DEFINITIONS.] The terms used in 
  5.34  sections 256J.01 to 256J.37 have the following meanings unless 
  5.35  otherwise provided for by text. 
  5.36     Subd. 2.  [AGENCY ERROR.] "Agency error" means an error 
  6.1   that results in an overpayment or underpayment to an assistance 
  6.2   unit and is not caused by an applicant's or participant's 
  6.3   failure to provide adequate, correct, or timely information 
  6.4   about income, property, household composition, or other 
  6.5   circumstances. 
  6.6      Subd. 3.  [APPEAL.] "Appeal" means a written statement from 
  6.7   an applicant or participant who requests a hearing under section 
  6.8   256J.31.  
  6.9      Subd. 4.  [APPLICANT.] "Applicant" means a person who has 
  6.10  submitted to a local agency an application and whose application 
  6.11  has not been acted upon, denied, or voluntarily withdrawn. 
  6.12     Subd. 5.  [APPLICATION.] "Application" means the submission 
  6.13  by or on behalf of a family to the local agency of a completed, 
  6.14  signed, and dated form, prescribed by the commissioner, that 
  6.15  indicates a desire to receive assistance. 
  6.16     Subd. 6.  [ASSIGNMENT OF SUPPORT.] "Assignment of support" 
  6.17  means the transfer of a person's right to child support, private 
  6.18  health care benefits, and spousal maintenance benefits to the 
  6.19  local agency. 
  6.20     Subd. 7.  [ASSISTANCE UNIT OR MFIP-S ASSISTANCE 
  6.21  UNIT.] "Assistance unit" or "MFIP-S assistance unit" means a 
  6.22  group of mandatory or optional people receiving or applying for 
  6.23  MFIP-S benefits together. 
  6.24     Subd. 8.  [AUTHORIZED REPRESENTATIVE.] "Authorized 
  6.25  representative" means a person who is authorized, in writing, by 
  6.26  an applicant or participant to act on the applicant's or 
  6.27  participant's behalf in matters involving the application for 
  6.28  assistance or participation in MFIP-S. 
  6.29     Subd. 9.  [BASIC NEEDS.] "Basic needs" means the minimum 
  6.30  personal requirements of subsistence and is restricted to food, 
  6.31  clothing, shelter, utilities, and other items for which the 
  6.32  loss, or lack of basic needs, is determined by the local agency 
  6.33  to pose a direct, immediate threat to the physical health or 
  6.34  safety of the applicant or participant. 
  6.35     Subd. 10.  [BUDGET MONTH.] "Budget month" means the 
  6.36  calendar month which the local agency uses to determine the 
  7.1   income or circumstances of an assistance unit to calculate the 
  7.2   amount of the assistance payment in the payment month. 
  7.3      Subd. 11.  [CAREGIVER.] "Caregiver" means a minor child's 
  7.4   natural or adoptive parent or parents who live in the home with 
  7.5   the minor child.  For purposes of determining eligibility for 
  7.6   this program, caregiver also means any of the following 
  7.7   individuals, if adults, who live with and provide care and 
  7.8   support to a minor child when the minor child's natural or 
  7.9   adoptive parent or parents do not reside in the same home:  
  7.10  grandfather, grandmother, brother, sister, stepfather, 
  7.11  stepmother, stepbrother, stepsister, uncle, aunt, first cousin, 
  7.12  nephew, niece, person of preceding generation as denoted by 
  7.13  prefixes of "great," "great-great," or "great-great-great," or a 
  7.14  spouse of any person named in the above groups even after the 
  7.15  marriage ends by death or divorce. 
  7.16     Subd. 12.  [CLIENT ERROR.] "Client error" means an error 
  7.17  that results in an overpayment or underpayment and is due to an 
  7.18  applicant's or participant's failure to provide adequate, 
  7.19  correct, or timely information concerning income, property, 
  7.20  household composition, or other circumstances. 
  7.21     Subd. 13.  [COLLATERAL CONTACTS.] "Collateral contacts" 
  7.22  means confirmation of an assistance unit's circumstances by a 
  7.23  person outside the assistance unit. 
  7.24     Subd. 14.  [COMMISSIONER.] "Commissioner" means the 
  7.25  commissioner of the department of human services or the 
  7.26  commissioner's designated representative. 
  7.27     Subd. 15.  [CORRECTIVE PAYMENT.] "Corrective payment" means 
  7.28  an assistance payment that is made to correct an underpayment. 
  7.29     Subd. 16.  [COUNTABLE INCOME.] "Countable income" means 
  7.30  earned and unearned income that is not excluded under section 
  7.31  256J.14, subdivision 2, or disregarded under section 256J.21. 
  7.32     Subd. 17.  [COUNTED EARNINGS.] "Counted earnings" means the 
  7.33  earned income that remains after applicable disregards under 
  7.34  section 256J.15, subdivision 2, have been subtracted from gross 
  7.35  earned income. 
  7.36     Subd. 18.  [COUNTY AGENCY.] "County agency" means the 
  8.1   agency designated by the county board to implement financial 
  8.2   assistance for current programs and for MFIP-S and the agency 
  8.3   responsible for enforcement of child support collection. 
  8.4      Subd. 19.  [COUNTY BOARD.] "County board" means a board of 
  8.5   commissioners, a local services agency as defined in chapter 
  8.6   393, a board established under Joint Powers Act, section 471.59, 
  8.7   or a human services board under chapter 402. 
  8.8      Subd. 20.  [COUNTY OF FINANCIAL RESPONSIBILITY.] "County of 
  8.9   financial responsibility" means the county that has financial 
  8.10  responsibility for providing public assistance as specified in 
  8.11  chapter 256G. 
  8.12     Subd. 21.  [COUNTY OF RESIDENCE.] "County of residence" 
  8.13  means the county where the caregiver has established a home. 
  8.14     Subd. 22.  [DATE OF APPLICATION.] "Date of application" 
  8.15  means the date on which the local agency receives an applicant's 
  8.16  signed application. 
  8.17     Subd. 23.  [DEEM.] "Deem" means to treat all or part of the 
  8.18  income of an individual who is not in the assistance unit, but 
  8.19  who is financially responsible for members of the assistance 
  8.20  unit, as if it were income available to the assistance unit. 
  8.21     Subd. 24.  [DEPARTMENT.] "Department" means the Minnesota 
  8.22  department of human services. 
  8.23     Subd. 25.  [DISREGARD.] "Disregard" means earned income 
  8.24  that is not counted when determining initial eligibility or 
  8.25  ongoing eligibility and calculating the amount of the assistance 
  8.26  payment for participants. 
  8.27     Subd. 26.  [DOCUMENTATION.] "Documentation" means a written 
  8.28  statement or record that substantiates or validates an assertion 
  8.29  made by a person or an action taken by a person, agency, or 
  8.30  entity. 
  8.31     Subd. 27.  [EARNED INCOME.] "Earned income" means cash or 
  8.32  in-kind income earned through the receipt of wages, salary, 
  8.33  commissions, profit from employment activities, net profit from 
  8.34  self-employment activities, payments made by an employer for 
  8.35  regularly accrued vacation or sick leave, and any other profit 
  8.36  from activity earned through effort or labor. 
  9.1      Subd. 28.  [EARNED INCOME CREDIT.] "Earned income credit" 
  9.2   means the payment which can be obtained by a qualified person 
  9.3   from an employer or from the Internal Revenue Service as 
  9.4   provided by section 290.0671 and United States Code, title 26, 
  9.5   subtitle A, chapter 1, subchapter A, part 4, subpart C, section 
  9.6   32. 
  9.7      Subd. 29.  [EMERGENCY.] "Emergency" means a situation or a 
  9.8   set of circumstances that causes or threatens to cause 
  9.9   destitution to a minor child.  
  9.10     Subd. 30.  [ENCUMBRANCE.] "Encumbrance" means a legal claim 
  9.11  against real or personal property that is payable upon the sale 
  9.12  of that property. 
  9.13     Subd. 31.  [EQUITY VALUE.] "Equity value" means the amount 
  9.14  of equity in real or personal property owned by a person and is 
  9.15  determined by subtracting any outstanding encumbrances from the 
  9.16  fair market value. 
  9.17     Subd. 32.  [EXCLUDED TIME.] "Excluded time" has the meaning 
  9.18  given in section 256G.02. 
  9.19     Subd. 33.  [EXPEDITED ISSUANCE OF THE FOOD STAMP 
  9.20  PORTION.] "Expedited issuance of the food stamp portion" means 
  9.21  the issuance of the food stamp portion to eligible assistance 
  9.22  units on the day of application as provided in section 393.07, 
  9.23  subdivision 10a. 
  9.24     Subd. 34.  [FAIR HEARING OR HEARING.] "Fair hearing" or 
  9.25  "hearing" means the evidentiary hearing conducted by the 
  9.26  department appeals referee to resolve disputes as specified in 
  9.27  section 256.045. 
  9.28     Subd. 35.  [FAIR MARKET VALUE.] "Fair market value" means 
  9.29  the price that an item of a particular make, model, size, 
  9.30  material, or condition would sell for on the open market in the 
  9.31  particular geographic area. 
  9.32     Subd. 36.  [FAMILY.] "Family" includes: 
  9.33     (1) the following individuals who live together:  a minor 
  9.34  child or a group of minor children related to each other as 
  9.35  siblings, half siblings, stepsiblings, or adoptive siblings, 
  9.36  together with their natural, adoptive parents, stepparents, or 
 10.1   caregiver as defined in subdivision 11; and 
 10.2      (2) a pregnant woman with no other children. 
 10.3      Subd. 37.  [FAMILY WAGE LEVEL.] "Family wage level" means 
 10.4   110 percent of the transitional standard. 
 10.5      Subd. 38.  [FEDERAL INSURANCE CONTRIBUTION ACT OR 
 10.6   FICA.] "Federal Insurance Contribution Act" or "FICA" means the 
 10.7   federal law under United States Code, title 26, subtitle C, 
 10.8   chapter 21, subchapter A, sections 3101 to 3126, that requires 
 10.9   withholding or direct payment from earned income. 
 10.10     Subd. 39.  [FINANCIAL CASE RECORD.] "Financial case record" 
 10.11  means an assistance unit's financial eligibility file. 
 10.12     Subd. 40.  [FINANCIALLY RESPONSIBLE HOUSEHOLD 
 10.13  MEMBERS.] "Financially responsible household members" means 
 10.14  spouses, parents of minor children and minor caregivers, and 
 10.15  stepparents of minor children. 
 10.16     Subd. 41.  [FULL-TIME STUDENT.] "Full-time student" means a 
 10.17  person who is enrolled in a graded or ungraded primary, 
 10.18  intermediate, secondary, GED preparatory, trade, technical, 
 10.19  vocational, or post-secondary school, and who meets the school's 
 10.20  standard for full-time attendance. 
 10.21     Subd. 42.  [GENERAL EDUCATIONAL DEVELOPMENT OR 
 10.22  GED.] "General educational development" or "GED" means the 
 10.23  general educational development certification issued by the 
 10.24  Minnesota board of education as an equivalent to a secondary 
 10.25  school diploma under Minnesota Rules, part 3500.3100, subpart 4. 
 10.26     Subd. 43.  [GROSS EARNED INCOME.] "Gross earned income" 
 10.27  means earned income from employment before mandatory and 
 10.28  voluntary payroll deductions.  Gross earned income includes 
 10.29  salaries, wages, tips, gratuities, commissions, incentive 
 10.30  payments from work or training programs, payments made by an 
 10.31  employer for regularly accrued vacation or sick leave, and 
 10.32  profits from other activity earned by an individual's effort or 
 10.33  labor.  Gross earned income includes uniform and meal allowances 
 10.34  if federal income tax is deducted from the allowance.  Gross 
 10.35  earned income includes flexible work benefits received from an 
 10.36  employer if the employee has the option of receiving the benefit 
 11.1   or benefits in cash. 
 11.2      Subd. 44.  [GROSS INCOME.] "Gross income" is the sum of 
 11.3   gross earned income and unearned income. 
 11.4      Subd. 45.  [GROSS RECEIPTS.] "Gross receipts" means the 
 11.5   money received by a business before the expenses of the business 
 11.6   are deducted. 
 11.7      Subd. 46.  [HALF-TIME STUDENT.] "Half-time student" means a 
 11.8   person who is enrolled in a graded or ungraded primary, 
 11.9   intermediate, secondary, GED preparatory, trade, technical, 
 11.10  vocational, or post-secondary school, and who meets the school's 
 11.11  standard of half-time attendance. 
 11.12     Subd. 47.  [HOME.] "Home" means the primary place of 
 11.13  residence used by a person as the base for day-to-day living and 
 11.14  does not include locations used as mail drops. 
 11.15     Subd. 48.  [HOMELESS INDIVIDUAL.] "Homeless individual" 
 11.16  means an individual who lacks a fixed and regular nighttime 
 11.17  residence or an individual whose primary nighttime residence is: 
 11.18     (1) a supervised shelter designed to provide temporary 
 11.19  accommodations such as a welfare hotel or congregate shelter; 
 11.20     (2) a halfway house or similar institution that provides 
 11.21  temporary residence for individuals intended to be 
 11.22  institutionalized; 
 11.23     (3) a temporary accommodation in the residence of another 
 11.24  individual; or 
 11.25     (4) a place not designed for, or ordinarily used as, a 
 11.26  regular sleeping accommodation for persons such as a hallway, 
 11.27  lobby, bus station, or under highway bridges and overpasses. 
 11.28     Subd. 49.  [HOMESTEAD.] "Homestead" means the home that is 
 11.29  owned by, and is the usual residence of, the assistance unit 
 11.30  together with the surrounding property which is not separated 
 11.31  from the home by intervening property owned by others.  Public 
 11.32  rights-of-way, such as roads which run through the surrounding 
 11.33  property and separate it from the home, do not affect the 
 11.34  exemption of the property.  Homestead includes an asset that is 
 11.35  not real property that the assistance unit uses as a home, such 
 11.36  as a vehicle. 
 12.1      Subd. 50.  [HOUSEHOLD.] "Household" means a group of 
 12.2   persons who live together. 
 12.3      Subd. 51.  [INCOME.] "Income" means cash or in-kind 
 12.4   benefit, whether earned or unearned, received by or available to 
 12.5   an applicant or participant that is not an asset under section 
 12.6   256J.13. 
 12.7      Subd. 52.  [INITIAL ELIGIBILITY.] "Initial eligibility" 
 12.8   means the determination of eligibility for an MFIP-S applicant. 
 12.9      Subd. 53.  [INITIAL INCOME TEST.] "Initial income test" 
 12.10  means the test used to determine initial eligibility which 
 12.11  compares countable income to the transitional standard according 
 12.12  to section 256J.14. 
 12.13     Subd. 54.  [IN-KIND INCOME.] "In-kind income" means income, 
 12.14  benefits, or payments which are provided in a form other than 
 12.15  money or liquid assets, including the forms of goods, produce, 
 12.16  services, privileges, or payments made on behalf of an applicant 
 12.17  or participant by a third party. 
 12.18     Subd. 55.  [INQUIRY.] "Inquiry" means a communication to a 
 12.19  local agency through mail, telephone, or in person, by which a 
 12.20  person or authorized representative requests information about 
 12.21  public assistance.  The local agency shall also treat as an 
 12.22  inquiry any communication in which a person requesting 
 12.23  assistance offers information about the person's family 
 12.24  circumstances that indicates that eligibility for public 
 12.25  assistance may exist. 
 12.26     Subd. 56.  [LEGALLY AVAILABLE.] "Legally available" means a 
 12.27  person's right under the law to secure, possess, dispose of, or 
 12.28  control income or property. 
 12.29     Subd. 57.  [LOCAL AGENCY.] "Local agency" means a county or 
 12.30  multicounty agency that is authorized under sections 393.01, 
 12.31  subdivision 7, and 393.07, subdivision 2, to administer MFIP-S. 
 12.32     Subd. 58.  [LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM OR 
 12.33  LIHEAP.] "Low-income home energy assistance program" or "LIHEAP" 
 12.34  means the program authorized under United States Code, title 42, 
 12.35  chapter 94, subchapter II, sections 8621 to 8629, and 
 12.36  administered by the Minnesota department of jobs and training. 
 13.1      Subd. 59.  [LUMP SUM.] "Lump sum" means nonrecurring income 
 13.2   that is not excluded in section 256J.14. 
 13.3      Subd. 60.  [MAXIMUM SHELTER DEDUCTION.] "Maximum shelter 
 13.4   deduction" means the amount designated by the United States 
 13.5   Department of Agriculture under Code of Federal Regulations, 
 13.6   title 7, as the maximum deduction from income allowed for 
 13.7   shelter costs when calculating food stamp benefits. 
 13.8      Subd. 61.  [MEDICAL ASSISTANCE.] "Medical assistance" means 
 13.9   the program established under chapter 256B and Title XIX of the 
 13.10  Social Security Act. 
 13.11     Subd. 62.  [MFIP-S HOUSEHOLD REPORT FORM.] "MFIP-S 
 13.12  household report form" means a form prescribed by the 
 13.13  commissioner that a participant uses to report information to a 
 13.14  local agency about changes in income and other circumstances. 
 13.15     Subd. 63.  [MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 
 13.16  OR MFIP-S.] "Minnesota family investment program-statewide" or 
 13.17  "MFIP-S" means the assistance program authorized in this chapter 
 13.18  and chapter 256K. 
 13.19     Subd. 64.  [MINNESOTA SUPPLEMENTAL AID OR MSA.] "Minnesota 
 13.20  supplemental aid" or "MSA" means the program established under 
 13.21  sections 256D.33 to 256D.54. 
 13.22     Subd. 65.  [MINOR CAREGIVER.] "Minor caregiver" means a 
 13.23  person who: 
 13.24     (1) is under the age of 18; 
 13.25     (2) has never been married or otherwise legally 
 13.26  emancipated; 
 13.27     (3) is either the natural parent of a minor child living in 
 13.28  the same household; or 
 13.29     (4) is eligible for assistance paid to a pregnant woman. 
 13.30     Subd. 66.  [MINOR CHILD.] "Minor child" means a child who 
 13.31  is living in the same home of a parent or other caregiver, is 
 13.32  either less than 18 years of age or is under the age of 19 years 
 13.33  and is regularly attending as a full-time student and is 
 13.34  expected to complete a high school or a secondary level course 
 13.35  of vocational or technical training designed to fit students for 
 13.36  gainful employment. 
 14.1      Subd. 67.  [MONTHLY INCOME TEST.] "Monthly income test" 
 14.2   means the test used to determine ongoing eligibility and the 
 14.3   assistance payment amount according to section 256J.14. 
 14.4      Subd. 68.  [NONRECURRING INCOME.] "Nonrecurring income" 
 14.5   means a form of income which is received: 
 14.6      (1) only one time or is not of a continuous nature; or 
 14.7      (2) in a prospective payment month but is no longer 
 14.8   received in the corresponding retrospective payment month. 
 14.9      Subd. 69.  [OVERPAYMENT.] "Overpayment" means the portion 
 14.10  of an assistance payment issued by the local agency that is 
 14.11  greater than the amount for which the assistance unit is 
 14.12  eligible. 
 14.13     Subd. 70.  [PARENT.] "Parent" means a child's biological or 
 14.14  adoptive parent who is legally obligated to support that child. 
 14.15     Subd. 71.  [PARTICIPANT.] "Participant" means a person 
 14.16  receiving benefits through MFIP-S and includes the caregiver and 
 14.17  all members of the assistance unit. 
 14.18     Subd. 72.  [PAYEE.] "Payee" means a person to whom an 
 14.19  assistance payment is made payable. 
 14.20     Subd. 73.  [PAYMENT MONTH.] "Payment month" means the 
 14.21  calendar month for which the assistance payment is paid. 
 14.22     Subd. 74.  [PERSONAL PROPERTY.] "Personal property" means 
 14.23  an item of value that is not real property, including the value 
 14.24  of a contract for deed held by a seller, assets held in trust on 
 14.25  behalf of members of an assistance unit, cash surrender value of 
 14.26  life insurance, value of a prepaid burial, savings account, 
 14.27  value of stocks and bonds, and value of retirement accounts. 
 14.28     Subd. 75.  [PROBABLE FRAUD.] "Probable fraud" means the 
 14.29  level of evidence that, if proven as fact, would establish that 
 14.30  assistance has been wrongfully obtained. 
 14.31     Subd. 76.  [PROSPECTIVE BUDGETING.] "Prospective budgeting" 
 14.32  means a method of determining the amount of the assistance 
 14.33  payment in which the budget month and payment month are the same.
 14.34     Subd. 77.  [PROTECTIVE PAYEE.] "Protective payee" means a 
 14.35  person other than the caregiver of an assistance unit who 
 14.36  receives the monthly assistance payment on behalf of an 
 15.1   assistance unit and is responsible to provide for the basic 
 15.2   needs of the assistance unit to the extent of that payment. 
 15.3      Subd. 78.  [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 
 15.4   means a person: 
 15.5      (1) who was lawfully admitted for permanent residence under 
 15.6   the Immigration and Nationality Act (INA); 
 15.7      (2) who was admitted to the United States as a refugee 
 15.8   under section 207 of the INA; 
 15.9      (3) whose deportation is being withheld under section 
 15.10  243(h) of the INA; 
 15.11     (4) who was paroled under section 212(d)(5) of the INA; 
 15.12     (5) who was granted conditional entry pursuant to section 
 15.13  203(A)(7) of the INA as in effect prior to April 1, 1980; 
 15.14     (6) who was granted asylum under section 208 of the INA; or 
 15.15     (7) who has been battered or subjected to extreme cruelty, 
 15.16  and has been determined by the United States Attorney General to 
 15.17  be qualified under section 431(c) of the Personal Responsibility 
 15.18  and Work Opportunity Reconcilement of 1996, as long as the 
 15.19  individual responsible for such battery or cruelty does not 
 15.20  reside in the same household. 
 15.21     Subd. 79.  [REAL PROPERTY.] "Real property" means land and 
 15.22  all buildings, structures, and improvements, or other fixtures 
 15.23  on the land, belonging or appertaining to the land, and all 
 15.24  mines, minerals, fossils, and trees on or under the land. 
 15.25     Subd. 80.  [REASONABLE COMPENSATION.] "Reasonable 
 15.26  compensation" means the value received in exchange for property 
 15.27  transferred to another owner that is consistent with fair market 
 15.28  value and equals or exceeds the seller's equity in the property, 
 15.29  reduced by costs incurred in the sale. 
 15.30     Subd. 81.  [RECERTIFICATION.] "Recertification" means the 
 15.31  periodic review of eligibility factors to determine an 
 15.32  assistance unit's continued eligibility. 
 15.33     Subd. 82.  [RECOUPMENT.] "Recoupment" means the action of 
 15.34  the local agency to reduce a family's monthly assistance payment 
 15.35  to recover overpayments caused by client error and overpayments 
 15.36  received while an appeal is pending. 
 16.1      Subd. 83.  [RECOVERY.] "Recovery" means actions taken by a 
 16.2   local agency to reclaim the value of overpayments through 
 16.3   voluntary repayment, recoupment from the assistance payment, 
 16.4   court action revenue recapture, or federal tax refund offset 
 16.5   program (FRTOP). 
 16.6      Subd. 84.  [RECURRING INCOME.] "Recurring income" means a 
 16.7   form of income which is: 
 16.8      (1) received periodically, and may be received irregularly 
 16.9   when receipt can be anticipated even though the date of receipt 
 16.10  cannot be predicted; and 
 16.11     (2) from the same source or of the same type that is 
 16.12  received and budgeted in a prospective month and is received in 
 16.13  one or both of the first two retrospective months. 
 16.14     Subd. 85.  [RETROSPECTIVE BUDGETING.] "Retrospective 
 16.15  budgeting" means a method of determining the amount of the 
 16.16  assistance payment in which the payment month is the second 
 16.17  month after the budget month. 
 16.18     Subd. 86.  [SANCTION.] "Sanction" means the reduction of a 
 16.19  family's assistance payment of the applicable transitional 
 16.20  standard because the nonexempt parental caregiver fails to 
 16.21  develop or comply with the terms of an employment plan or to 
 16.22  cooperate with child support enforcement, cost-effective 
 16.23  insurance, or tort liability. 
 16.24     Subd. 87.  [SECONDARY SCHOOL.] "Secondary school" means a 
 16.25  secondary school as defined under section 120.05, subdivision 2, 
 16.26  clause (3), or equivalent level technical institute or an 
 16.27  educational program that provides a GED. 
 16.28     Subd. 88.  [SIGNIFICANT CHANGE.] "Significant change" means 
 16.29  a decline in gross income of 38 percent or more from the income 
 16.30  used to determine the grant for the current month. 
 16.31     Subd. 89.  [SUPPLEMENTAL SECURITY INCOME OR 
 16.32  SSI.] "Supplemental Security Income" or "SSI" means the program 
 16.33  authorized under title XVI of the Social Security Act. 
 16.34     Subd. 90.  [TITLE IV-D OF THE SOCIAL SECURITY ACT.] "Title 
 16.35  IV-D of the Social Security Act" means United States Code, title 
 16.36  42, chapter 7, subchapter IV, part D, sections 651 to 669. 
 17.1      Subd. 91.  [TRANSITIONAL STANDARD.] "Transitional standard" 
 17.2   means the basic standard for a family with no other income or a 
 17.3   nonworking family and is a combination of the cash assistance 
 17.4   needs and food assistance needs for a family of that size. 
 17.5      Subd. 92.  [TRANSITIONAL STATUS.] "Transitional status" 
 17.6   means the status of caregivers who are independently pursuing 
 17.7   self-sufficiency or caregivers who are complying with an 
 17.8   employment plan.  
 17.9      Subd. 93.  [UNEARNED INCOME.] "Unearned income" means 
 17.10  income received by a person that does not meet the definition of 
 17.11  earned income.  Unearned income includes income from a contract 
 17.12  for deed, interest, dividends, reemployment insurance, 
 17.13  disability insurance payments, veterans benefits, pension 
 17.14  payments, return on capital investment, insurance payments or 
 17.15  settlements, severance payments, and payments for illness or 
 17.16  disability whether the premium payments are made in whole or in 
 17.17  part by an employer or participant. 
 17.18     Subd. 94.  [REEMPLOYMENT INSURANCE.] "Reemployment 
 17.19  insurance" means the insurance benefit paid to an unemployed 
 17.20  worker under sections 268.03 to 268.23. 
 17.21     Subd. 95.  [VENDOR.] "Vendor" means a provider of goods or 
 17.22  services. 
 17.23     Subd. 96.  [VENDOR PAYMENT.] "Vendor payment" means a 
 17.24  payment authorized by a local agency to a vendor. 
 17.25     Subd. 97.  [VERIFICATION.] "Verification" means the process 
 17.26  a local agency uses to establish the accuracy or completeness of 
 17.27  information from an applicant, participant, third party, or 
 17.28  other source as that information relates to program eligibility 
 17.29  or an assistance payment. 
 17.30     Subd. 98.  [WRONGFULLY OBTAINING ASSISTANCE.] "Wrongfully 
 17.31  obtaining assistance" means: 
 17.32     (1) to obtain or attempt to obtain assistance by means of a 
 17.33  willfully false statement or representation; 
 17.34     (2) to conceal a material fact, to impersonate an applicant 
 17.35  or participant, or to use another fraudulent device that results 
 17.36  in receiving assistance to which a person is not entitled; or 
 18.1      (3) to knowingly aid or abet in buying or in any way 
 18.2   disposing of the property of an applicant or participant in an 
 18.3   attempt to defeat the purposes of this chapter and chapter 256K. 
 18.4      Sec. 9.  [256J.09] [APPLICATION FOR ASSISTANCE.] 
 18.5      Subdivision 1.  [WHERE TO APPLY.] A person must apply for 
 18.6   assistance at the local agency in the county where that person 
 18.7   lives. 
 18.8      Subd. 2.  [LOCAL AGENCY RESPONSIBILITY TO PROVIDE 
 18.9   INFORMATION.] A local agency must inform a person who inquires 
 18.10  about assistance about eligibility requirements for assistance 
 18.11  and how to apply for assistance.  A local agency must offer the 
 18.12  person brochures developed or approved by the commissioner that 
 18.13  describe how to apply for assistance. 
 18.14     Subd. 3.  [APPLICATION FORM AND ACCOMPANYING ADVISORY.] A 
 18.15  local agency must offer, in person or by mail, the application 
 18.16  forms prescribed by the commissioner as soon as a person makes a 
 18.17  written or oral inquiry.  At that time, the local agency must 
 18.18  inform the person that, if the person is found eligible, 
 18.19  assistance begins with the date the signed application is 
 18.20  received by the local agency and that any delay in submitting 
 18.21  the application will reduce the amount of assistance paid for 
 18.22  the month of application.  A local agency must inform a person 
 18.23  that the person may submit the application before an interview 
 18.24  appointment.  To apply for assistance, a person must submit a 
 18.25  signed application to the local agency.  Upon receipt of a 
 18.26  signed application, the local agency must stamp the date of 
 18.27  receipt on the face of the application.  The local agency must 
 18.28  process the application within the time period required under 
 18.29  subdivision 7.  An applicant may withdraw the application at any 
 18.30  time by giving written or oral notice to the local agency.  The 
 18.31  local agency must issue a written notice confirming the 
 18.32  withdrawal.  The notice must inform the applicant of the local 
 18.33  agency's understanding that the applicant has withdrawn the 
 18.34  application and no longer wants to pursue it.  When, within ten 
 18.35  days of the date of the agency's notice, an applicant informs a 
 18.36  local agency, in writing, that the applicant does not wish to 
 19.1   withdraw the application, the local agency must reinstate the 
 19.2   application and finish processing the application. 
 19.3      Subd. 4.  [ASSESSMENT OF AND ISSUANCE FOR INITIAL NEEDS.] 
 19.4   When a person inquires about assistance, a local agency must ask 
 19.5   the person if immediate or emergency needs exist.  When a person 
 19.6   has emergency needs, the local agency must determine that 
 19.7   person's eligibility for emergency assistance or emergency 
 19.8   general assistance unless the person's needs can be met through 
 19.9   other sources or by promptly processing an application for 
 19.10  monthly assistance.  The local agency must also assess 
 19.11  eligibility for expedited issuance of food stamp assistance 
 19.12  which requires priority processing of applications as specified 
 19.13  in subdivision 5. 
 19.14     Subd. 5.  [EXPEDITED ISSUANCE OF FOOD STAMP ASSISTANCE.] 
 19.15  The following households are entitled to expedited issuance of 
 19.16  food stamp assistance: 
 19.17     (1) households with less than $150 in monthly gross income 
 19.18  provided their cash on hand, checking or savings accounts, 
 19.19  savings certificates, and lump-sum payments do not exceed $100; 
 19.20     (2) migrant or seasonal farm worker households who are 
 19.21  destitute as defined in Code of Federal Regulations, title 7, 
 19.22  subtitle B, chapter 2, subchapter C, part 273, section 273.10, 
 19.23  paragraph (e)(3), provided their cash on hand, checking or 
 19.24  savings accounts, savings certificates, and lump-sum payments do 
 19.25  not exceed $100; and 
 19.26     (3) eligible households whose combined monthly gross income 
 19.27  and liquid resources are less than the household's monthly rent 
 19.28  or mortgage and utilities. 
 19.29     When all verifications have been provided, the benefits 
 19.30  issued through expedited issuance of food stamp assistance must 
 19.31  be deducted from the amount of the full monthly MFIP-S 
 19.32  assistance payment and a supplemental payment for the difference 
 19.33  must be issued. 
 19.34     Subd. 6.  [VERIFICATION OF INFORMATION ON APPLICATION.] A 
 19.35  local agency must verify information provided by an applicant as 
 19.36  required in section 256J.15. 
 20.1      Subd. 7.  [PROCESSING APPLICATIONS.] Upon receiving an 
 20.2   application, a local agency must determine the applicant's 
 20.3   eligibility, approve or deny the application, inform the 
 20.4   applicant of its decision according to section 256J.31, and 
 20.5   issue the assistance payment when the applicant is eligible.  
 20.6   When a local agency is unable to process an application within 
 20.7   30 days, the local agency must inform the applicant of the 
 20.8   reason in writing.  When an applicant establishes the inability 
 20.9   to provide required verification within the 30-day processing 
 20.10  period, the local agency may not use the expiration of that 
 20.11  period as the basis for denial. 
 20.12     Subd. 8.  [INVALID REASON FOR DELAY.] A local agency must 
 20.13  not delay a decision on eligibility or delay issuing the 
 20.14  assistance payment except to establish state residence by: 
 20.15     (1) treating the 30-day processing period as a waiting 
 20.16  period; 
 20.17     (2) delaying approval or issuance of the assistance payment 
 20.18  pending the decision of the county board; or 
 20.19     (3) awaiting the result of a referral to a local agency in 
 20.20  another county when the county receiving the application does 
 20.21  not believe it is the county of financial responsibility. 
 20.22     Subd. 9.  [CHANGES IN RESIDENCE DURING APPLICATION.] The 
 20.23  requirements in subdivisions 7 and 8 apply without regard to the 
 20.24  length of time that an applicant remains, or intends to remain, 
 20.25  a resident of the county in which the application is made.  When 
 20.26  an applicant leaves the county where application was made but 
 20.27  remains in the state, section 256J.35 applies and the local 
 20.28  agency may request additional information from the applicant 
 20.29  about changes in circumstances related to the move. 
 20.30     Subd. 10.  [ADDITIONAL APPLICATIONS.] Until a local agency 
 20.31  issues notice of approval or denial, additional applications 
 20.32  submitted by an applicant are void.  However, an application for 
 20.33  monthly assistance and an application for emergency assistance 
 20.34  or emergency general assistance may exist concurrently.  More 
 20.35  than one application for monthly assistance, emergency 
 20.36  assistance, or emergency general assistance may exist 
 21.1   concurrently when the local agency decisions on one or more 
 21.2   earlier applications have been appealed to the commissioner, and 
 21.3   the applicant asserts that a change in circumstances has 
 21.4   occurred that would allow eligibility.  A local agency must 
 21.5   require additional application forms or supplemental forms as 
 21.6   prescribed by the commissioner when a payee's name changes, or 
 21.7   when a caregiver requests the addition of another person to the 
 21.8   assistance unit.  
 21.9      Subd. 11.  [ADDENDUM TO AN EXISTING APPLICATION.] An 
 21.10  addendum to an existing application shall be used to add persons 
 21.11  to an assistance unit regardless of whether the persons being 
 21.12  added are required to be in the assistance unit.  When a person 
 21.13  is added by addendum to an assistance unit, eligibility for that 
 21.14  person begins on the first of the month the addendum was filed 
 21.15  except as provided in section 256J.34, subdivision 2, paragraph 
 21.16  (b). 
 21.17     Subd. 12.  [APPLICANTS WHO DO NOT MEET ELIGIBILITY 
 21.18  REQUIREMENTS FOR MFIP-S.] When an applicant is not eligible for 
 21.19  MFIP-S because the applicant does not meet eligibility 
 21.20  requirements, the local agency must determine whether the 
 21.21  applicant is eligible for food stamps, Medical assistance, or 
 21.22  has a need for emergency assistance and assistance when the 
 21.23  applicant meets the eligibility requirements for those programs. 
 21.24     Subd. 13.  [NOTICE TO APPLICANT WHEN NOT ELIGIBLE FOR 
 21.25  ASSISTANCE.] When an applicant is not eligible for assistance, 
 21.26  the local agency must deny the application and provide the 
 21.27  applicant with notice as required in section 256J.31. 
 21.28     Sec. 10.  [256J.10] [MFIP-S ELIGIBILITY REQUIREMENTS.] 
 21.29     To be eligible for MFIP-S, applicants must meet the general 
 21.30  eligibility requirements in section 256J.11, the property 
 21.31  limitations in section 256J.13, and the income limitations in 
 21.32  section 256J.14. 
 21.33     Sec. 11.  [256J.11] [GENERAL ELIGIBILITY REQUIREMENTS.] 
 21.34     Subdivision 1.  [CITIZENSHIP.] A member of the assistance 
 21.35  unit is a citizen of the United States or a qualified 
 21.36  noncitizen, as defined in section 256J.08. 
 22.1      Subd. 2.  [MINNESOTA RESIDENCE.] (a) A family meets 
 22.2   Minnesota's residency requirement when a child or caregiver has 
 22.3   resided in Minnesota for at least 30 days.  A child or caregiver 
 22.4   relative who has maintained a residence in Minnesota for less 
 22.5   than 30 days is considered to be a Minnesota resident if the 
 22.6   child or the caregiver meets one of the following criteria: 
 22.7      (1) either the minor child or the caregiver relative was 
 22.8   born in Minnesota; 
 22.9      (2) either the minor child or the caregiver relative has, 
 22.10  in the past, resided in Minnesota for at least 12 consecutive 
 22.11  months; 
 22.12     (3) either the minor child or the caregiver relative came 
 22.13  to this state to join a close relative who has resided in this 
 22.14  state for at least 12 consecutive months.  For the purpose of 
 22.15  this section, "close relative" means a parent, grandparent, 
 22.16  brother, sister, spouse, or child; 
 22.17     (4) the caregiver relative came to this state to accept a 
 22.18  bona fide offer of employment and was eligible to accept the 
 22.19  employment; or 
 22.20     (5) the caregiver relative is a migrant worker who entered 
 22.21  the state to seek employment. 
 22.22     (b) A county may waive the 30-day residency requirement in 
 22.23  case of emergency or where unusual hardship would result from 
 22.24  denial of assistance. 
 22.25     (c) A family who moves to Minnesota from another state 
 22.26  shall be paid at the standard required in section 256J.24, 
 22.27  subdivision 6. 
 22.28     Subd. 3.  [MINOR CHILD IN ASSISTANCE UNIT.] The assistance 
 22.29  unit must include at least one minor child or a pregnant woman.  
 22.30  If a minor child is a recipient of SSI or MSA, the assistance 
 22.31  unit is eligible for MFIP-S, but the needs of the minor child 
 22.32  receiving SSI or MSA must not be taken into account when the 
 22.33  local agency determines the amount of the assistance payment to 
 22.34  be paid to the assistance unit. 
 22.35     Subd. 4.  [PHYSICAL PRESENCE.] A minor child and a 
 22.36  caregiver must live together except as provided in paragraphs 
 23.1   (a) to (c). 
 23.2      (a) The physical presence requirement is met when a minor 
 23.3   child is required to live away from the caregiver's home to meet 
 23.4   the need for educational curricula that cannot be met by, but is 
 23.5   approved by, the local public school district, the home is 
 23.6   maintained for the minor child's return during periodic school 
 23.7   vacations, and the caregiver continues to maintain 
 23.8   responsibility for the support and care of the minor child. 
 23.9      (b) The physical presence requirement is met when an 
 23.10  applicant caregiver or applicant minor child is away from the 
 23.11  home due to illness or hospitalization when the home is 
 23.12  maintained for the return of the absent family member, the 
 23.13  absence is not expected to last more than six months beyond the 
 23.14  month of departure, and the conditions of clause (1), (2), or 
 23.15  (3) apply: 
 23.16     (1) when the minor child and caregiver lived together 
 23.17  immediately prior to the absence, the caregiver continues to 
 23.18  maintain responsibility for the support and care of the minor 
 23.19  child, and the absence is reported at the time of application; 
 23.20     (2) when the pregnant mother is hospitalized or out of the 
 23.21  home due to the pregnancy; or 
 23.22     (3) when the newborn child and mother are hospitalized at 
 23.23  the time of birth. 
 23.24     (c) The absence of a caregiver or minor child does not 
 23.25  affect eligibility for the month of departure when the caregiver 
 23.26  or minor child received assistance for that month and lived 
 23.27  together immediately prior to the absence.  Eligibility also 
 23.28  exists in the following month when the absence ends on or before 
 23.29  the tenth day of that month.  A temporary absence of a caregiver 
 23.30  or a minor child which continues beyond the month of departure 
 23.31  must not affect eligibility when the home is maintained for the 
 23.32  return of the absent family member, the caregiver continues to 
 23.33  maintain responsibility for the support and care of the minor 
 23.34  child, and one of clauses (1) to (7) applies: 
 23.35     (1) a participant caregiver or participant child is absent 
 23.36  due to illness or hospitalization, and the absence is expected 
 24.1   to last no more than six months beyond the month of departure; 
 24.2      (2) a participant child is out of the home due to placement 
 24.3   in foster care as defined in section 260.015, subdivision 7, 
 24.4   when the placement will not be paid under title IV-E of the 
 24.5   Social Security Act, and when the absence is expected to last no 
 24.6   more than six months beyond the month of departure; 
 24.7      (3) a participant minor child is out of the home for a 
 24.8   vacation, the vacation is not with an absent parent, and the 
 24.9   absence is expected to last no more than two months beyond the 
 24.10  month of departure; 
 24.11     (4) a participant minor child is out of the home due to a 
 24.12  visit or vacation with an absent parent, the home of the minor 
 24.13  child remains with the caregiver, the absence meets the 
 24.14  conditions of subdivision 4, paragraph (c), and the absence is 
 24.15  expected to last no more than two months beyond the month of 
 24.16  departure; 
 24.17     (5) a participant caregiver is out of the home due to a 
 24.18  death or illness of a relative, incarceration, training, or 
 24.19  employment search and suitable arrangements have been made for 
 24.20  the care of the minor child, or a participant minor child is out 
 24.21  of the home due to incarceration, and the absence is expected to 
 24.22  last no more than two months beyond the month of departure; 
 24.23     (6) a participant caregiver and a participant minor child 
 24.24  are both absent from Minnesota due to a situation described in 
 24.25  clause (5), or vacation, and the absence is expected to last no 
 24.26  more than one month beyond the month of the departure; or 
 24.27     (7) a participant minor child has run away from home, and 
 24.28  another person has not made application for that minor child, 
 24.29  assistance must continue for no more than two months following 
 24.30  the month of departure. 
 24.31     Subd. 5.  [PARENTING OR PREGNANT MINORS; RESTRICTION ON 
 24.32  ASSISTANCE WITH FEDERAL EXCEPTIONS.] (a) The definitions in this 
 24.33  paragraph only apply to this subdivision. 
 24.34     (1) "Household of a parent, legal guardian, or other adult 
 24.35  relative" means the place of residence of: 
 24.36     (i) a natural or adoptive parent; 
 25.1      (ii) a legal guardian according to appointment or 
 25.2   acceptance under section 260.242, 525.615, or 525.6165, and 
 25.3   related laws; or 
 25.4      (iii) a caregiver. 
 25.5      (2) "Adult-supervised supportive living arrangement" means 
 25.6   a private family setting which assumes responsibility for the 
 25.7   care and control of the minor parent and dependent child, or 
 25.8   other living arrangement, not including a public institution, 
 25.9   licensed by the commissioner of human services which ensures 
 25.10  that the minor parent receives adult supervision and supportive 
 25.11  services, such as counseling, guidance, independent living 
 25.12  skills training, or supervision. 
 25.13     (b) A minor parent and the dependent child who is in the 
 25.14  care of the minor parent must reside in the household of a 
 25.15  parent, legal guardian, or other adult relative, or in an 
 25.16  adult-supervised supportive living arrangement in order to 
 25.17  receive MFIP-S unless: 
 25.18     (1) the minor parent has no living parent or legal guardian 
 25.19  whose whereabouts is known; 
 25.20     (2) no living parent or legal guardian of the minor parent 
 25.21  allows the minor parent to live in the parent's or legal 
 25.22  guardian's home; 
 25.23     (3) the minor parent lived apart from the minor parent's 
 25.24  own parent or legal guardian for a period of at least one year 
 25.25  before either the birth of the dependent child or the minor 
 25.26  parent's application for MFIP-S; 
 25.27     (4) the physical or emotional health or safety of the minor 
 25.28  parent or dependent child would be jeopardized if the minor 
 25.29  parent and the dependent child resided in the same residence 
 25.30  with the minor parent's parent or legal guardian; or 
 25.31     (5) the minor parent and dependent child have, on October 
 25.32  1, 1995, been living independently as part of an approved social 
 25.33  services plan for less than one year. 
 25.34     (c) Minor applicants must be informed orally and in writing 
 25.35  about the eligibility requirements and their rights and 
 25.36  obligations under the MFIP-S program.  The county must advise 
 26.1   the minor of the possible exemptions and specifically ask 
 26.2   whether one or more of these exemptions is applicable.  If the 
 26.3   minor alleges one or more of these exemptions, then the county 
 26.4   must assist the minor in obtaining the necessary verifications 
 26.5   to determine whether or not these exemptions apply. 
 26.6      (d) If the county worker has reason to suspect that the 
 26.7   physical or emotional health or safety of the minor parent or 
 26.8   dependent child would be jeopardized if they resided with the 
 26.9   minor parent's parent or legal guardian, then the county worker 
 26.10  must make a referral to child protective services to determine 
 26.11  if paragraph (b), clause (4), applies.  A new determination by 
 26.12  the county worker is not necessary if one has been made within 
 26.13  the last six months, unless there has been a significant change 
 26.14  in circumstances which justifies a new referral and 
 26.15  determination. 
 26.16     (e) If a minor parent is not living with a parent or legal 
 26.17  guardian due to paragraph (b), clause (1), (2), or (4), the 
 26.18  minor parent must reside, when possible, in a living arrangement 
 26.19  that meets the standards of paragraph (a), clause (2). 
 26.20     (f) When a minor parent and dependent child live with 
 26.21  another adult relative, or in an adult-supervised supportive 
 26.22  living arrangement, MFIP-S must be paid, when possible, in the 
 26.23  form of a protective payment on behalf of the minor parent and 
 26.24  dependent child in accordance with section 256J.24, subdivisions 
 26.25  2 to 4. 
 26.26     Subd. 6.  [ELIGIBILITY DURING LABOR DISPUTES.] An 
 26.27  assistance unit with a member on strike must be a participant on 
 26.28  the day before the strike, or have been eligible for MFIP-S on 
 26.29  the day before the strike. 
 26.30     The local agency must count the striker's prestrike 
 26.31  earnings as current earnings.  When a member of an assistance 
 26.32  unit who is not in the bargaining unit that voted for the strike 
 26.33  does not cross the picket line for fear of personal injury, the 
 26.34  assistance unit member is not a striker.  Except for a member of 
 26.35  an assistance unit who is not in the bargaining unit that voted 
 26.36  for the strike and who does not cross the picket line for fear 
 27.1   of personal injury, a significant change cannot be invoked as a 
 27.2   result of a labor dispute. 
 27.3      Subd. 7.  [ASSIGNMENT OF SUPPORT AND MAINTENANCE RIGHTS.] 
 27.4   To be eligible for MFIP-S, the caregiver must assign all rights 
 27.5   to child support and spousal maintenance benefits according to 
 27.6   section 256.74, subdivision 5. 
 27.7      Subd. 8.  [REQUIREMENT TO PROVIDE SOCIAL SECURITY NUMBERS.] 
 27.8   Each member of the assistance unit must provide the member's 
 27.9   social security number to the local agency.  When a social 
 27.10  security number is not provided to the local agency for 
 27.11  verification, this requirement is satisfied when each member of 
 27.12  the assistance unit cooperates with the procedures for 
 27.13  verification of numbers. 
 27.14     Subd. 9.  [SHARED; COURT ORDERED; AND OTHER CUSTODY 
 27.15  ARRANGEMENTS.] The language of a court order that specifies 
 27.16  joint legal or physical custody does not preclude a 
 27.17  determination that a parent is absent.  Absence must be 
 27.18  determined based on the actual facts of the absence according to 
 27.19  paragraphs (a) to (c).  
 27.20     (a) When a minor child spends time in each of the parents' 
 27.21  homes within a payment month, the minor child's home shall be 
 27.22  considered the home in which the majority of the minor child's 
 27.23  time is spent.  When this time is exactly equal within a payment 
 27.24  month, or when the parents alternately live in the minor child's 
 27.25  home within a payment month, the minor child's home shall be 
 27.26  with that parent who is applying for MFIP, unless the minor 
 27.27  child's needs for the full payment month have already been met 
 27.28  through the provision of assistance to the other parent for that 
 27.29  month.  
 27.30     (b) When the physical custody of a minor child alternates 
 27.31  between parents for periods of at least one payment month, each 
 27.32  parent shall be eligible for assistance for any full payment 
 27.33  months the minor child's home is with that parent, except under 
 27.34  the conditions in paragraph (c).  
 27.35     (c) When a minor child's home is with one parent for the 
 27.36  majority of time in each month for at least nine consecutive 
 28.1   calendar months, and that minor child visits or vacations with 
 28.2   the other parent under the provisions of subdivision 4, 
 28.3   paragraph (c), clause (4), the minor child's home shall remain 
 28.4   with the first parent even when the stay with the second parent 
 28.5   is for all or the majority of the months in the period of the 
 28.6   temporary absence. 
 28.7      Sec. 12.  [256J.12] [PROHIBITIONS FROM RECEIVING MFIP-S.] 
 28.8      Subdivision 1.  [TIME LIMITS.] An assistance unit in which 
 28.9   any adult caregiver has received 60 months of cash assistance 
 28.10  funded in whole or in part by the TANF block grant is ineligible 
 28.11  to receive MFIP-S.  Any cash assistance funded with TANF dollars 
 28.12  which was received by the unit on or after the date TANF was 
 28.13  implemented, including any states of prior residence, counts 
 28.14  toward the 60-month limitation.  The 60-month time period does 
 28.15  not need to be consecutive months for this provision to apply.  
 28.16  The state may exempt a family from the application of the 
 28.17  60-month time limit by reason of hardship or if the family 
 28.18  includes an individual who has been battered or subjected to 
 28.19  extreme cruelty.  The number of families who are eligible for 
 28.20  this exemption shall not exceed 20 percent of the average 
 28.21  monthly number of families to which assistance is provided under 
 28.22  MFIP-S. 
 28.23     Subd. 1a.  [ADULTS LIVING ON AN INDIAN RESERVATION.] In 
 28.24  determining the number of months for which an adult has received 
 28.25  assistance under TANF, disregard any month during which the 
 28.26  adult lived on an Indian reservation if, during the month:  
 28.27     (1) at least 1,000 individuals were living on the 
 28.28  reservation; and 
 28.29     (2) at least 50 percent of the adults living on the 
 28.30  reservation were unemployed. 
 28.31     Subd. 2.  [PAROLE VIOLATORS.] An individual violating a 
 28.32  condition of probation or parole imposed under federal or state 
 28.33  law is ineligible to receive MFIP-S. 
 28.34     Subd. 3.  [FLEEING FELONS.] An individual who is fleeing to 
 28.35  avoid prosecution, or custody, or confinement after conviction 
 28.36  for a crime which is a felony under the laws of the state from 
 29.1   which the individual flees, or in the case of New Jersey, is a 
 29.2   high misdemeanor is ineligible to receive MFIP-S. 
 29.3      Subd. 4.  [ASSISTANCE FROM ANOTHER STATE.] An individual 
 29.4   whose needs have been otherwise provided for, in another state, 
 29.5   in whole or part by the TANF block grant during a month is 
 29.6   ineligible to receive MFIP-S. 
 29.7      Subd. 5.  [NONCITIZENS INELIGIBLE FOR MFIP-S FOOD PORTION.] 
 29.8   Noncitizens who do not meet one of the exemptions in section 412 
 29.9   of the Personal Responsibility and Work Opportunity Act of 1996 
 29.10  are not eligible for the food portion of MFIP-S. 
 29.11     Sec. 13.  [256J.13] [PROPERTY LIMITATIONS.] 
 29.12     Subdivision 1.  [PROPERTY OWNERSHIP PROVISIONS.] The local 
 29.13  agency must apply paragraphs (a) to (d) to real and personal 
 29.14  property.  The local agency must use the equity value of legally 
 29.15  available real and personal property, except property excluded 
 29.16  in subdivisions 2 and 3, to determine whether an applicant or 
 29.17  participant is eligible for assistance. 
 29.18     (a) When real or personal property is jointly owned by two 
 29.19  or more persons, the local agency shall assume that each person 
 29.20  owns an equal share, except that either person owns the entire 
 29.21  sum of a joint personal checking or savings account.  When an 
 29.22  applicant or participant documents greater or lesser ownership, 
 29.23  the local agency must use that greater or lesser share to 
 29.24  determine the equity value held by the applicant or 
 29.25  participant.  Other types of ownership must be evaluated 
 29.26  according to law. 
 29.27     (b) Real or personal property owned by the applicant or 
 29.28  participant must be presumed legally available to the applicant 
 29.29  or participant unless the applicant or participant documents 
 29.30  that the property is not legally available to the applicant or 
 29.31  participant.  When real or personal property is not legally 
 29.32  available, its equity value must not be applied against the 
 29.33  limits of subdivisions 2 and 3. 
 29.34     (c) An applicant must disclose whether the applicant has 
 29.35  transferred real or personal property valued in excess of the 
 29.36  property limits in subdivisions 2 and 3 for which reasonable 
 30.1   compensation was not received within one year prior to 
 30.2   application.  A participant must disclose all transfers of 
 30.3   property valued in excess of these limits, according to the 
 30.4   reporting requirements in section 256J.30, subdivision 9.  When 
 30.5   a transfer of real or personal property without reasonable 
 30.6   compensation has occurred, clauses (1) and (2) apply: 
 30.7      (1) the person who transferred the property must provide 
 30.8   the property's description, information needed to determine the 
 30.9   property's equity value, the names of persons who received the 
 30.10  property, and the circumstances of and reasons for the transfer; 
 30.11  and 
 30.12     (2) when the transferred property can be reasonably 
 30.13  reacquired, or when reasonable compensation can be secured, the 
 30.14  property is presumed legally available to the applicant or 
 30.15  participant. 
 30.16     (d) A participant may build the equity value of real and 
 30.17  personal property to the limits in subdivisions 2 and 3. 
 30.18     Subd. 2.  [REAL PROPERTY LIMITATIONS.] Ownership of real 
 30.19  property by an applicant or participant is subject to the 
 30.20  limitations in paragraphs (a) and (b). 
 30.21     (a) A local agency shall exclude the homestead of an 
 30.22  applicant or participant according to clauses (1) to (3).  
 30.23     (1) an applicant or participant who is purchasing real 
 30.24  property through a contract for deed and using that property as 
 30.25  a home is considered the owner of real property; 
 30.26     (2) the total amount of land that can be excluded under 
 30.27  this subdivision is limited to surrounding property which is not 
 30.28  separated from the home by intervening property owned by 
 30.29  others.  Additional property must be assessed as to its legal 
 30.30  and actual availability according to subdivision 1; and 
 30.31     (3) when real property that has been used as a home by a 
 30.32  participant is sold, the local agency must treat the cash 
 30.33  proceeds from the sale as excluded property for six months when 
 30.34  the participant intends to reinvest the proceeds in another home 
 30.35  and maintains those proceeds, unused for other purposes, in a 
 30.36  separate account. 
 31.1      (b) The equity value of real property that is not excluded 
 31.2   under paragraph (a) and which is legally available must be 
 31.3   applied against the limits in subdivision 3.  When the equity 
 31.4   value of the real property exceeds the limits under subdivision 
 31.5   3, the applicant or participant may qualify to receive 
 31.6   assistance for a consecutive nine-month period when the 
 31.7   applicant or participant makes a good faith effort to sell the 
 31.8   property and signs a legally binding agreement to repay the 
 31.9   amount of assistance issued during that nine months, less child 
 31.10  support collected by the agency.  When the property is sold 
 31.11  during the nine-month period, repayment must be made within five 
 31.12  working days after the property is sold.  Repayment to the local 
 31.13  agency must be in the amount of assistance received or the 
 31.14  proceeds of the sale, whichever is less.  If the property is not 
 31.15  sold during the nine-month period, the local agency must 
 31.16  terminate MFIP-S assistance.  When the property is sold, the 
 31.17  former participant must repay the local agency within five 
 31.18  working days after the property is sold.  Repayment to the local 
 31.19  agency must be in the amount of the assistance received or the 
 31.20  proceeds of the sale, whichever is less. 
 31.21     Subd. 3.  [OTHER PROPERTY LIMITATIONS.] To be eligible for 
 31.22  MFIP-S, the equity value of all nonexcluded real and personal 
 31.23  property of the assistance unit must not exceed $2,000 for 
 31.24  applicant families and $5,000 for ongoing recipients.  The value 
 31.25  of paragraphs (1) to (16) must be excluded when determining the 
 31.26  equity value of real and personal property: 
 31.27     (1) the value of one licensed automobile, truck, or van for 
 31.28  each adult in the assistance unit.  Count the equity value of 
 31.29  all other vehicles up to a total equity value and apply this 
 31.30  amount to the resource limit described in this section, 
 31.31  exclusive of the value of special equipment for a handicapped 
 31.32  member of the assistance.  To establish the equity value of 
 31.33  vehicles, a local agency must subtract any outstanding 
 31.34  encumbrances from the loan value listed in the N.A.D.A. Official 
 31.35  Used Car Guide, Midwest Edition, for newer model cars.  The 
 31.36  N.A.D.A. Official Used Car Guide, Midwest Edition, is 
 32.1   incorporated by reference.  When a vehicle is not listed in the 
 32.2   guidebook, or when the applicant or participant disputes the 
 32.3   value listed in the guidebook as unreasonable given the 
 32.4   condition of the particular vehicle, the local agency may 
 32.5   require the applicant or participant to document the value by 
 32.6   securing a written statement from a motor vehicle dealer 
 32.7   licensed under section 168.27, stating the amount that the 
 32.8   dealer would pay to purchase the vehicle.  The local agency 
 32.9   shall reimburse the applicant or participant for the cost of a 
 32.10  written statement that documents a lower value; 
 32.11     (2) the value of life insurance policies for members of the 
 32.12  assistance unit; 
 32.13     (3) one burial plot per member of an assistance unit; 
 32.14     (4) the value of personal property needed to produce earned 
 32.15  income, including tools, implements, farm animals, inventory, 
 32.16  business loans, business checking and savings accounts used 
 32.17  exclusively for the operation of a self-employment business, and 
 32.18  any motor vehicles if the vehicles are essential for the 
 32.19  self-employment business; 
 32.20     (5) the value of personal property not otherwise specified 
 32.21  which is commonly used by household members in day-to-day living 
 32.22  such as clothing, necessary household furniture, equipment, and 
 32.23  other basic maintenance items essential for daily living; 
 32.24     (6) the value of real and personal property owned by a 
 32.25  recipient of SSI or MSA; 
 32.26     (7) the value of corrective payments, but only for the 
 32.27  month in which the payment is received and for the following 
 32.28  month; 
 32.29     (8) a mobile home used by an applicant or participant as 
 32.30  the applicant's or participant's home; 
 32.31     (9) money in a separate escrow account that is needed to 
 32.32  pay real estate taxes or insurance and that is used for this 
 32.33  purpose; 
 32.34     (10) money held in escrow to cover employee FICA, employee 
 32.35  tax withholding, sales tax withholding, employee worker 
 32.36  compensation, business insurance, property rental, property 
 33.1   taxes, and other costs that are paid at least annually, but less 
 33.2   often than monthly; 
 33.3      (11) monthly assistance and emergency assistance payments 
 33.4   for the current month's needs; 
 33.5      (12) the value of school loans, grants, or scholarships for 
 33.6   the period they are intended to cover; 
 33.7      (13) payments listed in section 256J.14, subdivision 2, 
 33.8   clause (9), which are held in escrow for a period not to exceed 
 33.9   three months to replace or repair personal or real property; 
 33.10     (14) income received in a budget month through the end of 
 33.11  the budget month; 
 33.12     (15) the earned income credit and Minnesota working family 
 33.13  credit in the month received and the following month; and 
 33.14     (16) payments excluded under federal law as long as those 
 33.15  payments are held in a separate account from any nonexcluded 
 33.16  funds. 
 33.17     Sec. 14.  [256J.14] [INCOME LIMITATIONS.] 
 33.18     Subdivision 1.  [INCOME INCLUSIONS.] To determine MFIP-S 
 33.19  eligibility, the local agency must evaluate income received by 
 33.20  members of an assistance unit, or by other persons whose income 
 33.21  is considered available to the assistance unit.  All payments, 
 33.22  unless specifically excluded in subdivision 2, must be counted 
 33.23  as income. 
 33.24     Subd. 2.  [INCOME EXCLUSIONS.] The following shall be 
 33.25  excluded in determining a family's available income: 
 33.26     (1) payments for basic care, difficulty of care, and 
 33.27  clothing allowances received for providing family foster care to 
 33.28  children or adults under Minnesota Rules, parts 9545.0010 to 
 33.29  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
 33.30  used for care and maintenance of a third-party beneficiary who 
 33.31  is not a household member; 
 33.32     (2) reimbursements for employment training received through 
 33.33  the Job Training Partnership Act, United States Code, title 29, 
 33.34  chapter 19, sections 1501 to 1792b; 
 33.35     (3) reimbursement for out-of-pocket expenses incurred while 
 33.36  performing volunteer services, jury duty, or employment; 
 34.1      (4) all educational grants and loans, including income from 
 34.2   work-study programs; 
 34.3      (5) loans, regardless of purpose, from public or private 
 34.4   lending institutions, governmental lending institutions, or 
 34.5   governmental agencies; 
 34.6      (6) loans from private individuals, regardless of purpose, 
 34.7   provided an applicant or participant documents that the lender 
 34.8   expects repayment; 
 34.9      (7) state and federal income tax refunds; 
 34.10     (8) state and federal earned income credits; 
 34.11     (9) funds received for reimbursement, replacement, or 
 34.12  rebate of personal or real property when these payments are made 
 34.13  by public agencies, awarded by a court, solicited through public 
 34.14  appeal, or made as a grant by a federal agency, state or local 
 34.15  government, or disaster assistance organizations, subsequent to 
 34.16  a presidential declaration of disaster; 
 34.17     (10) the portion of an insurance settlement that is used to 
 34.18  pay medical, funeral, and burial expenses, or to repair or 
 34.19  replace insured property; 
 34.20     (11) reimbursements for medical expenses which cannot be 
 34.21  paid by medical assistance; 
 34.22     (12) payments by a vocational rehabilitation program 
 34.23  administered by the state under chapter 268A, except those 
 34.24  payments that are for current living expenses; 
 34.25     (13) in-kind income, including any payments directly made 
 34.26  by a third party to a provider of goods and services; 
 34.27     (14) assistance payments to correct underpayments, but only 
 34.28  for the month in which the payment is received; 
 34.29     (15) emergency assistance payments; 
 34.30     (16) funeral and cemetery payments as provided by section 
 34.31  256.935; 
 34.32     (17) nonrecurring cash gifts of $30 or less, not exceeding 
 34.33  $30 per participant in a calendar month; 
 34.34     (18) any form of energy assistance payment made by LIHEAP, 
 34.35  payments made directly to energy providers by other public and 
 34.36  private agencies, benefits issued by energy providers when the 
 35.1   Minnesota department of economic security determines that those 
 35.2   payments qualify under Code of Federal Regulations, title 45, 
 35.3   subtitle B, chapter II, part 233, section 233.53, and any form 
 35.4   of credit or rebate payment issued by energy providers; 
 35.5      (19) SSI, including retroactive payments; 
 35.6      (20) MSA, including retroactive payments; 
 35.7      (21) proceeds from the sale of real or personal property; 
 35.8      (22) payments for subsidized adoptions as provided by 
 35.9   section 259.67; 
 35.10     (23) state-funded family subsidy program payments made 
 35.11  under section 252.32 to help families care for children with 
 35.12  mental retardation or related conditions; 
 35.13     (24) interest payments and dividends from property that is 
 35.14  not excluded from and that does not exceed the asset limit; 
 35.15     (25) income that is otherwise specifically excluded from 
 35.16  the MFIP-S program consideration in federal law, state law, or 
 35.17  federal regulation; 
 35.18     (26) rent rebates; 
 35.19     (27) income earned by a minor caregiver or minor child who 
 35.20  is at least a half-time student; 
 35.21     (28) MFIP-S child care payments; 
 35.22     (29) all other payments made through MFIP-S to support a 
 35.23  caregiver's pursuit of greater self-support; 
 35.24     (30) income a participant receives related to shared living 
 35.25  expenses; 
 35.26     (31) reverse mortgages; 
 35.27     (32) benefits provided by the Child Nutrition Act of 1966, 
 35.28  United States Code, title 42, chapter 13A, sections 1771 to 
 35.29  1790; 
 35.30     (33) benefits provided by the women, infants, and children 
 35.31  (WIC) nutrition program, United States Code, title 42, chapter 
 35.32  13A, section 1786; 
 35.33     (34) benefits from the National School Lunch Act, United 
 35.34  States Code, title 42, chapter 13, sections 1751 to 1769e; 
 35.35     (35) relocation assistance for displaced persons under the 
 35.36  Uniform Relocation Assistance and Real Property Acquisition 
 36.1   Policies Act of 1970, United States Code, title 42, chapter 61, 
 36.2   subchapter II, section 4636, or the National Housing Act, United 
 36.3   States Code, title 12, chapter 13, sections 1701 to 1750jj; 
 36.4      (36) benefits from the Trade Act of 1974, United States 
 36.5   Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
 36.6      (37) war reparations payments to Japanese Americans and 
 36.7   Aleuts under United States Code, title 50, sections 1989 to 
 36.8   1989d; 
 36.9      (38) payments to veterans or their dependents as a result 
 36.10  of legal settlements regarding Agent Orange or other chemical 
 36.11  exposure under Public Law Number 101-239, section 10405, 
 36.12  paragraph (a)(2)(E); 
 36.13     (39) security and utility deposit refunds; and 
 36.14     (40) American Indian tribal land settlements excluded under 
 36.15  Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
 36.16  Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
 36.17  reservations and payments to members of the White Earth Band, 
 36.18  under United States Code, title 25, chapter 9, section 331, and 
 36.19  chapter 16, section 1407. 
 36.20     Subd. 3.  [INITIAL INCOME TEST.] The local agency shall 
 36.21  determine initial eligibility by considering all earned and 
 36.22  unearned income that is not excluded under subdivision 2.  To be 
 36.23  eligible for MFIP-S, the assistance unit's countable income 
 36.24  minus the disregards in paragraphs (a) to (c) must be below the 
 36.25  transitional standard of assistance according to section 256J.16 
 36.26  for that size assistance unit. 
 36.27     (a) When determining initial eligibility and when 
 36.28  determining income deemed from members who do not elect to be 
 36.29  included in the assistance unit, the employment disregard is 18 
 36.30  percent of the gross earned income whether or not the member is 
 36.31  working full time or part time. 
 36.32     (b) When determining initial eligibility, dependent care 
 36.33  costs must be deducted from gross earned income for the actual 
 36.34  amount paid for dependent care up to the maximum disregard 
 36.35  allowed under this chapter and chapter 119B. 
 36.36     (c) Notwithstanding paragraph (a), when determining initial 
 37.1   eligibility for participants who have received AFDC, family 
 37.2   general assistance, or MFIP-S in Minnesota within four months of 
 37.3   the most recent application for MFIP-S, the employment disregard 
 37.4   is 38 percent of the gross earned income. 
 37.5      After initial eligibility is established, the assistance 
 37.6   payment calculation is based on the monthly income test. 
 37.7      Subd. 4.  [MONTHLY INCOME TEST AND DETERMINATION OF 
 37.8   ASSISTANCE PAYMENT.] The local agency shall determine ongoing 
 37.9   eligibility and the assistance payment amount according to the 
 37.10  monthly income test.  To be eligible for MFIP-S, the result of 
 37.11  the computations in paragraphs (a) to (d) must be at least one 
 37.12  dollar. 
 37.13     (a) Apply a 38 percent income disregard to gross earnings 
 37.14  and subtract this amount from the family wage level.  If the 
 37.15  difference is equal to or greater than the transitional 
 37.16  standard, the assistance payment is equal to the transitional 
 37.17  standard.  If the difference is less than the transitional 
 37.18  standard, the assistance payment is equal to the difference.  
 37.19  The employment disregard in this paragraph must be deducted 
 37.20  every month there is earned income. 
 37.21     (b) Subtract unearned income dollar for dollar from the 
 37.22  transitional standard to determine assistance payment amount. 
 37.23     (c) When income is both earned and unearned, the amount of 
 37.24  the assistance payment must be determined by first treating 
 37.25  gross earned income as specified in paragraph (a).  After 
 37.26  determining the amount of the assistance payment under paragraph 
 37.27  (a), unearned income must be subtracted from that amount dollar 
 37.28  for dollar to determine the assistance payment amount. 
 37.29     (d) When the monthly income is greater than the 
 37.30  transitional or family wage level standard after applicable 
 37.31  deductions and the income will only exceed the standard for one 
 37.32  month, the local agency must suspend the assistance payment for 
 37.33  the payment month. 
 37.34     Subd. 5.  [DISTRIBUTION OF INCOME.] The income of all 
 37.35  members of the assistance unit must be counted.  Income may also 
 37.36  be deemed from ineligible household members to the assistance 
 38.1   unit.  Income must be attributed to the person who earns it or 
 38.2   to the assistance unit according to paragraphs (a) to (c). 
 38.3      (a) Funds distributed from a trust, whether from the 
 38.4   principal holdings or sale of trust property or from the 
 38.5   interest and other earnings of the trust holdings, must be 
 38.6   considered income when the income is legally available to an 
 38.7   applicant or participant.  Trusts are presumed legally available 
 38.8   unless an applicant or participant can document that the trust 
 38.9   is not legally available. 
 38.10     (b) Income from jointly owned property must be divided 
 38.11  equally among property owners unless the terms of ownership 
 38.12  provide for a different distribution. 
 38.13     (c) Deductions are not allowed from the gross income of a 
 38.14  financially responsible household member or by the members of an 
 38.15  assistance unit to meet a current or prior debt. 
 38.16     Subd. 6.  [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 
 38.17  MEMBERS.] (a) Ineligible household members shall deem their 
 38.18  income after allowing the following disregards: 
 38.19     (1) the first 18 percent of the excluded family member's 
 38.20  gross earned income; 
 38.21     (2) an amount for the needs of the ineligible household 
 38.22  member, which is equal to the difference between the current 
 38.23  grant and the grant if the ineligible household member was 
 38.24  included in the assistance unit; and 
 38.25     (3) an amount for the needs of other persons who live in 
 38.26  the household but are ineligible for MFIP-S.  The amount 
 38.27  attributed to the needs of this person is the same as in clause 
 38.28  (2). 
 38.29     (b) Local agencies shall not allow income disregards for 
 38.30  persons who are ineligible for MFIP-S as a result of a 
 38.31  court-ordered disqualification, a pretrial diversion, or a 
 38.32  disqualification consent agreement for public assistance fraud. 
 38.33     Subd. 7.  [DEEMED INCOME OF SPONSOR OF NONCITIZENS.] (a) 
 38.34  All income of a sponsor, or sponsor's spouse, who executed an 
 38.35  affidavit of support for a noncitizen shall be deemed to be 
 38.36  unearned income of the noncitizen as specified in the Personal 
 39.1   Responsibility and Work Opportunity Act of 1996 and subsequently 
 39.2   set out in federal rules. 
 39.3      Subd. 8.  [EARNED INCOME OF WAGE AND SALARY EMPLOYEES.] The 
 39.4   local agency must include gross earned income less any 
 39.5   disregards in the initial and monthly income test.  Gross earned 
 39.6   income received by persons employed on a contractual basis must 
 39.7   be prorated over the period covered by the contract even when 
 39.8   payments are received over a lesser period of time. 
 39.9      Subd. 9.  [SELF-EMPLOYMENT.] Self-employed individuals are 
 39.10  individuals who: 
 39.11     (1) work for themselves rather than an employer; 
 39.12     (2) do not have federal or state income taxes or FICA 
 39.13  withheld from payments made to them; 
 39.14     (3) are responsible for their own work schedule; and 
 39.15     (4) do not have coverage under employers' liability 
 39.16  insurance or workers' compensation. 
 39.17     Self-employed individuals may own a business singularly or 
 39.18  in partnership.  Individuals operating more than one 
 39.19  self-employment business may use the loss from one business to 
 39.20  offset self-employment income from another business.  A loss 
 39.21  from a self-employment business may not offset income earned 
 39.22  under subdivision 8. 
 39.23     Subd. 10.  [SELF-EMPLOYMENT EARNINGS.] The local agency 
 39.24  must determine self-employment income according to the following:
 39.25     (a) Subtract allowable business expenses from total gross 
 39.26  receipts.  Allowable business expenses include: 
 39.27     (1) interest on mortgages and loans; 
 39.28     (2) employee wages, except for persons who are part of the 
 39.29  assistance unit or whose income is deemed to the participant; 
 39.30     (3) FICA funds paid on employees' wages, payment of 
 39.31  employee workers' compensation, and reemployment insurance; 
 39.32     (4) livestock and veterinary or breeding fees; 
 39.33     (5) raw material; 
 39.34     (6) seed and fertilizer; 
 39.35     (7) maintenance and repairs which are not capital 
 39.36  expenditures; 
 40.1      (8) tax return preparation fees; 
 40.2      (9) license fees, professional fees, franchise fees, and 
 40.3   professional dues; 
 40.4      (10) tools and supplies that are not capital expenditures; 
 40.5      (11) fuel and transportation expenses other than fuel costs 
 40.6   covered by the flat rate transportation rate deduction; 
 40.7      (12) advertising costs; 
 40.8      (13) meals eaten when required to be away from the local 
 40.9   work site; 
 40.10     (14) property expenses such as rent, insurance, taxes, and 
 40.11  utilities; 
 40.12     (15) postage; 
 40.13     (16) purchase cost of inventory at time of sale; 
 40.14     (17) loss from another self-employment business; 
 40.15     (18) attorney's fees allowed by the Internal Revenue 
 40.16  Service; and 
 40.17     (19) tuition for classes necessary to maintain or improve 
 40.18  job skills or required by law to maintain job status or salary 
 40.19  as allowed by the Internal Revenue Service. 
 40.20     (b) The local agency shall not allow a deduction for the 
 40.21  following expenses: 
 40.22     (1) purchases of capital assets; 
 40.23     (2) payments on the principals of loans for capital assets; 
 40.24     (3) depreciation; 
 40.25     (4) amortization; 
 40.26     (5) the wholesale costs of items purchased, processed, or 
 40.27  manufactured which are unsold inventory; 
 40.28     (6) transportation costs that exceed the maximum standard 
 40.29  mileage rate allowed for use of a personal car in the Internal 
 40.30  Revenue Code; 
 40.31     (7) costs, in any amount, for mileage between an 
 40.32  applicant's or participant's home and place of employment; 
 40.33     (8) salaries and other employment deductions made for 
 40.34  members of an assistance unit or persons who live in the 
 40.35  household for whom an employer is legally responsible; 
 40.36     (9) monthly expenses in excess of $71 for each roomer; 
 41.1      (10) monthly expenses in excess of the Thrifty Food Plan 
 41.2   amount for one person for each boarder.  For purposes of this 
 41.3   clause and clause (11), "Thrifty Food Plan" has the meaning 
 41.4   given it in Code of Federal Regulations. 
 41.5      (11) monthly expenses in excess of the roomer rate plus the 
 41.6   Thrifty Food Plan amount for one person for each 
 41.7   roomer-boarder.  If there is more than one boarder or 
 41.8   roomer-boarder, use the total number of boarders as the unit 
 41.9   size to determine the Thrifty Food Plan amount; 
 41.10     (12) an amount greater than actual expenses or two percent 
 41.11  of the estimated market value on a county tax assessment form, 
 41.12  whichever is greater, as a deduction for upkeep and repair 
 41.13  against rental income; 
 41.14     (13) expenses not allowed by the Internal Revenue Code; and 
 41.15     (14) expenses in excess of 60 percent of gross receipts for 
 41.16  in-home child care unless a higher amount can be documented.  
 41.17  Funds that are received from the Minnesota child care food 
 41.18  program as authorized under the National School Lunch Act, 
 41.19  United States Code, title 42, are excluded. 
 41.20     Subd. 11.  [SELF-EMPLOYMENT BUDGET PERIOD.] The 
 41.21  self-employment budget period begins in the month of application 
 41.22  or in the first month of self-employment.  Gross receipts must 
 41.23  be budgeted in the month received.  Expenses must be budgeted 
 41.24  against gross receipts in the month the expenses are paid, 
 41.25  except for paragraphs (a) to (c). 
 41.26     (a) The purchase cost of inventory items, including 
 41.27  materials which are processed or manufactured, must be deducted 
 41.28  as an expense at the time payment is received for the sale of 
 41.29  the inventory items. 
 41.30     (b) A 12-month rolling average based on clauses (1) to (3) 
 41.31  must be used to budget monthly income. 
 41.32     (1) For a business in operation for at least 12 months, the 
 41.33  local agency shall use the average monthly self-employment 
 41.34  income from the most current income tax report for the 12 months 
 41.35  before the month of application.  The local agency shall 
 41.36  determine a new monthly average by adding in the actual 
 42.1   self-employment income and expenses from the previous month and 
 42.2   dropping the first month from the averaging period. 
 42.3      (2) For a business in operation for less than 12 months, 
 42.4   the local agency shall compute the average for the number of 
 42.5   months the business has been in operation to determine a monthly 
 42.6   average.  When data are available for 12 or more months, average 
 42.7   monthly self-employment income is determined under clause (1). 
 42.8      (3) If the business undergoes a major change, the local 
 42.9   agency shall compute a new rolling average beginning with the 
 42.10  first month of the major change.  For the purpose of this 
 42.11  clause, "major change" means a change that affects the nature 
 42.12  and scale of the business and is not merely the result of normal 
 42.13  business fluctuations. 
 42.14     (c) For seasonal self-employment, the caregiver may choose 
 42.15  whether to use actual income in the month of receipt and 
 42.16  expenses in the month incurred or the rolling average method of 
 42.17  computation.  The choice must be made once per year at the time 
 42.18  of application or recertification.  For the purpose of this 
 42.19  paragraph, "seasonal" means working six or less months per year. 
 42.20     Subd. 12.  [FARM INCOME.] Farm income is the difference 
 42.21  between gross receipts and operating expenses, subject to 
 42.22  subdivision 10, paragraph (b).  Gross receipts include sales, 
 42.23  rents, subsidies, soil conservation payments, production derived 
 42.24  from livestock, and income from home-produced food.  
 42.25     Subd. 13.  [RENTAL INCOME.] The local agency must treat 
 42.26  income from rental property as earned or unearned income.  
 42.27  Income from rental property is unearned income unless the 
 42.28  assistance unit spends an average of ten hours per week on 
 42.29  maintenance or management of the property.  When the owner 
 42.30  spends more than ten hours per week on maintenance or repairs, 
 42.31  the earnings are considered self-employment earnings.  An amount 
 42.32  must be deducted for upkeep and repairs for real estate taxes, 
 42.33  insurance, utilities, and interest on principal payments.  When 
 42.34  the applicant or participant lives on the rental property, 
 42.35  expenses for upkeep, taxes, insurance, utilities, and interest 
 42.36  must be divided by the number of rooms to determine expense per 
 43.1   room and expenses deducted must be deducted only for the number 
 43.2   of rooms rented. 
 43.3      Subd. 14.  [UNEARNED INCOME.] (a) The local agency must 
 43.4   apply unearned income, including housing subsidies as in 
 43.5   paragraph (b), to the transitional standard.  When determining 
 43.6   the amount of unearned income, the local agency must deduct the 
 43.7   costs necessary to secure payments of unearned income.  These 
 43.8   costs include legal fees, medical fees, and mandatory deductions 
 43.9   such as federal and state income taxes. 
 43.10     (b) The local agency shall count $100 of the value of 
 43.11  public and assisted housing subsidies provided by the Department 
 43.12  of Housing and Urban Development (HUD), or by state or local 
 43.13  housing authorities, as unearned income.  The full amount of the 
 43.14  subsidy shall be counted as unearned income when the subsidy is 
 43.15  less than $100. 
 43.16     Subd. 15.  [TREATMENT OF LUMP SUMS.] The local agency must 
 43.17  treat lump-sum payments as earned or unearned income.  If the 
 43.18  lump-sum payment is included in the category of income 
 43.19  identified in subdivision 14, it must be treated as unearned 
 43.20  income.  A lump sum is counted as income in the month received 
 43.21  and budgeted either prospectively or retrospectively depending 
 43.22  on the budget cycle at the time of receipt.  When an individual 
 43.23  receives a lump-sum payment, that lump sum must be combined with 
 43.24  all other earned and unearned income received in the same budget 
 43.25  month, and it must be applied according to paragraphs (a) to (c).
 43.26  There is no carryover into subsequent months.  Any funds that 
 43.27  remain in the third month after the month of receipt are counted 
 43.28  in the asset limit. 
 43.29     (a) For a lump sum received by an applicant during the 
 43.30  first two months, prospective budgeting is used to determine the 
 43.31  payment and the lump sum must be combined with other earned or 
 43.32  unearned income received and budgeted in that prospective month. 
 43.33     (b) For a lump sum received by a participant after the 
 43.34  first two months of MFIP-S eligibility, the lump sum must be 
 43.35  combined with other income received in that budget month, and 
 43.36  the combined amount must be applied retrospectively against the 
 44.1   applicable payment month. 
 44.2      (c) When a lump sum, combined with other income according 
 44.3   to paragraphs (a) and (b), is less than the transitional 
 44.4   standard for the applicable payment month, the assistance 
 44.5   payment is reduced according to the amount of the countable 
 44.6   income.  When the countable income is greater than the 
 44.7   transitional standard or the family wage standard, the 
 44.8   assistance payment is suspended for the payment month. 
 44.9      Sec. 15.  [256J.15] [DOCUMENTING, VERIFYING, AND 
 44.10  RECERTIFYING ELIGIBILITY.] 
 44.11     Subdivision 1.  [VERIFICATION OF INFORMATION.] A local 
 44.12  agency must only require verification of information necessary 
 44.13  to determine MFIP-S eligibility and the amount of the assistance 
 44.14  payment. 
 44.15     Subd. 2.  [DOCUMENTATION.] The applicant or participant 
 44.16  must document the information in subdivision 4 or authorize the 
 44.17  local agency to verify it.  The applicant or participant has the 
 44.18  burden of providing documentary evidence to verify eligibility.  
 44.19  The local agency shall assist the applicant or participant in 
 44.20  obtaining required documents when the applicant or participant 
 44.21  is unable to do so.  When an applicant or participant and the 
 44.22  local agency are unable to obtain documents needed to verify 
 44.23  information, the local agency may accept an affidavit from an 
 44.24  applicant or participant as sufficient documentation. 
 44.25     Subd. 3.  [CONTACTING THIRD PARTIES.] A local agency must 
 44.26  not request information about an applicant or participant which 
 44.27  is not of public record from a source other than local agencies, 
 44.28  the department, or the United States Department of Health and 
 44.29  Human Services without the person's prior written consent.  An 
 44.30  applicant's signature on an application form shall constitute 
 44.31  this consent for contact with the sources specified on that 
 44.32  form.  A local agency may use a single consent form to contact a 
 44.33  group of similar sources, such as banks or insurance agencies, 
 44.34  but the sources to be contacted must be identified by the local 
 44.35  agency prior to requesting an applicant's consent. 
 44.36     Subd. 4.  [FACTORS TO BE VERIFIED.] The local agency shall 
 45.1   verify the following at application: 
 45.2      (1) identity of adults; 
 45.3      (2) presence of the minor child in the home, if 
 45.4   questionable; 
 45.5      (3) relationship of a minor child to caregivers in the 
 45.6   assistance unit; 
 45.7      (4) age, if necessary to determine MFIP-S eligibility; 
 45.8      (5) immigration status; 
 45.9      (6) social security number; 
 45.10     (7) income; 
 45.11     (8) self-employment expenses used as a deduction; 
 45.12     (9) source and purpose of deposits and withdrawals from 
 45.13  business accounts; 
 45.14     (10) spousal support and child support payments to persons 
 45.15  outside the household; 
 45.16     (11) real property; 
 45.17     (12) vehicles; 
 45.18     (13) checking and savings accounts; 
 45.19     (14) savings certificates, savings bonds, stocks, and 
 45.20  individual retirement accounts; 
 45.21     (15) cash surrender value of life insurance; 
 45.22     (16) inconsistent information, if related to eligibility; 
 45.23     (17) medical insurance; 
 45.24     (18) anticipated graduation date of an 18-year-old; 
 45.25     (19) burial accounts; 
 45.26     (20) school attendance, if related to eligibility; and 
 45.27     (21) residence. 
 45.28     Subd. 5.  [RECERTIFICATION.] The local agency shall 
 45.29  recertify eligibility in an annual face-to-face interview with 
 45.30  the participant and verify the following: 
 45.31     (1) presence of the minor child in the home, if 
 45.32  questionable; 
 45.33     (2) income, including self-employment expenses used as a 
 45.34  deduction or deposits or withdrawals from business accounts; 
 45.35     (3) checking and savings accounts; 
 45.36     (4) other property when the value is within $200 of the 
 46.1   asset limit; and 
 46.2      (5) inconsistent information, if related to eligibility.  
 46.3      Sec. 16.  [256J.16] [FAMILY COMPOSITION AND ASSISTANCE 
 46.4   STANDARDS.] 
 46.5      Subdivision 1.  [MFIP-S ASSISTANCE UNIT.] An MFIP-S 
 46.6   assistance unit is either a group of individuals with at least 
 46.7   one minor child who live together whose needs, assets, and 
 46.8   income are considered together and who receive assistance from 
 46.9   MFIP-S, or a pregnant woman who receives assistance from 
 46.10  MFIP-S.  Individuals identified in subdivision 2 must be 
 46.11  included in the MFIP-S assistance unit.  Individuals identified 
 46.12  in subdivision 3 must be excluded from the assistance unit.  
 46.13  Individuals identified in subdivision 4 may be included in the 
 46.14  assistance unit at their option.  Individuals not included in 
 46.15  the assistance unit who are identified in subdivision 3, clauses 
 46.16  (2) to (4), must have their income considered when determining 
 46.17  eligibility and benefits for an MFIP-S assistance unit.  All 
 46.18  assistance unit members, whether mandatory or elective, who live 
 46.19  together and for whom one caregiver or two caregivers apply must 
 46.20  be included in a single assistance unit. 
 46.21     Subd. 2.  [MANDATORY ASSISTANCE UNIT COMPOSITION.] When the 
 46.22  following individuals live together, they must be included in 
 46.23  the assistance unit: 
 46.24     (1) a minor child; 
 46.25     (2) the minor child's siblings, half-siblings, and 
 46.26  step-siblings; and 
 46.27     (3) the minor child's natural, adoptive parents, and 
 46.28  stepparents. 
 46.29     Subd. 3.  [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 
 46.30  ASSISTANCE UNIT.] The following individuals must be excluded 
 46.31  from an assistance unit: 
 46.32     (1) individuals receiving SSI or MSA; 
 46.33     (2) individuals living at home while performing 
 46.34  court-imposed, unpaid community service work due to a criminal 
 46.35  conviction; 
 46.36     (3) individuals disqualified from the food stamp program or 
 47.1   AFDC due to noncompliance with quality control requirements or 
 47.2   who are under a fraud disqualification until the period of 
 47.3   disqualification ends; and 
 47.4      (4) individuals disqualified from MFIP-S, until the 
 47.5   disqualification ends. 
 47.6      Subd. 4.  [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 
 47.7   ASSISTANCE UNIT.] The minor child's eligible relative caregiver 
 47.8   may choose to be in the assistance unit.  If the relative 
 47.9   caregiver chooses to be in the assistance unit, that person's 
 47.10  spouse must also be in the unit. 
 47.11     Subd. 5.  [MFIP-S TRANSITIONAL STANDARD.] The following 
 47.12  table represents the MFIP-S transitional standard table. 
 47.13       Number of               
 47.14       Eligible People      Standard 
 47.15            1                 $ 344
 47.16            2                 $ 596
 47.17            3                 $ 747 
 47.18            4                 $ 884 
 47.19            5                 $1003 
 47.20            6                 $1140 
 47.21            7                 $1246 
 47.22            8                 $1373 
 47.23            9                 $1498 
 47.24           10                 $1618 
 47.25           over 10            add $118 per additional member 
 47.26     Subd. 6.  [APPLICATION OF ASSISTANCE STANDARDS.] The 
 47.27  standards apply to the number of eligible persons in the 
 47.28  assistance unit. 
 47.29     Subd. 7.  [FAMILY WAGE LEVEL STANDARD.] The family wage 
 47.30  level standard is 110 percent of the transitional standard under 
 47.31  subdivision 5 and is the standard used when there is earned 
 47.32  income in the assistance unit.  Earned income is subtracted from 
 47.33  the family wage level as specified in section 256J.15 to 
 47.34  determine the amount of the assistance payment.  Assistance 
 47.35  payments may not exceed the transitional standard for the 
 47.36  assistance unit. 
 48.1      Subd. 8.  [PUBLICATION OF TRANSITIONAL STANDARD.] The 
 48.2   department of human services shall annually publish in the State 
 48.3   Register the transitional standard for an assistance unit size 1 
 48.4   to 10. 
 48.5      Sec. 17.  [256J.17] [DETERMINATION OF MFIP-S ELIGIBILITY 
 48.6   AND ASSISTANCE PAYMENT.] 
 48.7      A local agency must determine MFIP-S eligibility 
 48.8   prospectively for a payment month based on retrospectively 
 48.9   assessing income and the local agency's best estimate of the 
 48.10  circumstances that will exist in the payment month. 
 48.11     Except as described in section 256J.19, subdivision 1, when 
 48.12  prospective eligibility exists, a local agency must calculate 
 48.13  the amount of the assistance payment using retrospective 
 48.14  budgeting.  To determine MFIP-S eligibility and the assistance 
 48.15  payment amount, a local agency must apply countable income, 
 48.16  described in section 256J.14, subdivisions 8 to 15, received by 
 48.17  members of an assistance unit by other persons whose income is 
 48.18  counted for the assistance unit, described under section 
 48.19  256J.14, subdivision 5. 
 48.20     This income must be applied to the transitional standard or 
 48.21  family wage standard subject to sections 256J.18 to 256J.22.  
 48.22  Income received in a calendar month and not otherwise excluded 
 48.23  under section 256J.14, subdivision 2, must be applied to the 
 48.24  needs of an assistance unit. 
 48.25     Sec. 18.  [256J.18] [MFIP-S ELIGIBILITY TESTS.] 
 48.26     Subdivision 1.  [PROSPECTIVE ELIGIBILITY.] A local agency 
 48.27  must determine whether the eligibility requirements that pertain 
 48.28  to an assistance unit, including those in sections 256J.11 and 
 48.29  256J.13, will be met prospectively for the payment month.  
 48.30  Except for the provisions in section 256J.19, subdivision 1, the 
 48.31  income test will be applied retrospectively. 
 48.32     Subd. 2.  [RETROSPECTIVE ELIGIBILITY.] After the first two 
 48.33  months of MFIP-S eligibility, a local agency must continue to 
 48.34  determine whether an assistance unit is prospectively eligible 
 48.35  for the payment month by looking at all factors other than 
 48.36  income and then determine whether the assistance unit is 
 49.1   retrospectively income eligible by applying the monthly income 
 49.2   test to the income from the budget month.  When the monthly 
 49.3   income test is not satisfied, the assistance payment must be 
 49.4   suspended when ineligibility exists for one month or ended when 
 49.5   ineligibility exists for more than one month. 
 49.6      Subd. 3.  [MONTHLY INCOME TEST.] A local agency must apply 
 49.7   the monthly income test retrospectively for each month of MFIP-S 
 49.8   eligibility.  An assistance unit is not eligible when the 
 49.9   countable income equals or exceeds the transitional standard or 
 49.10  the family wage level for the assistance unit.  The income 
 49.11  applied against the monthly income test must include: 
 49.12     (1) gross earned income from employment, prior to mandatory 
 49.13  payroll deductions, voluntary payroll deductions, wage 
 49.14  authorizations, and after the disregards in section 256J.21 and 
 49.15  the allocations in section 256J.20, unless the employment income 
 49.16  is specifically excluded under section 256J.14, subdivision 2; 
 49.17     (2) gross earned income from self-employment less 
 49.18  deductions for self-employment expenses in section 256J.14, 
 49.19  subdivision 10, but prior to any reductions for personal or 
 49.20  business state and federal income taxes, personal FICA, personal 
 49.21  health and life insurance, and after the disregards in section 
 49.22  256J.21, and the allocations in section 256J.20; 
 49.23     (3) unearned income after deductions for allowable expenses 
 49.24  in section 256J.14, and allocations in section 256J.20, unless 
 49.25  the income has been specifically excluded in section 256J.14, 
 49.26  subdivision 2; 
 49.27     (4) gross earned income from employment as determined under 
 49.28  clause (1) which is received by a member of an assistance unit 
 49.29  who is a minor child and less than a half-time student; 
 49.30     (5) child support and spousal support received or 
 49.31  anticipated to be received by an assistance unit; 
 49.32     (6) the income of a parent even when that parent has opted 
 49.33  not to be included in the assistance unit; 
 49.34     (7) the income of an eligible relative who seeks to be 
 49.35  included in the assistance unit; and 
 49.36     (8) the unearned income of a minor child included in the 
 50.1   assistance unit. 
 50.2      Subd. 4.  [WHEN TO TERMINATE.] When an assistance unit is 
 50.3   ineligible for MFIP-S assistance for two consecutive months, the 
 50.4   local agency must terminate MFIP-S assistance. 
 50.5      Sec. 19.  [256J.19] [CALCULATING PAYMENTS.] 
 50.6      Subdivision 1.  [PROSPECTIVE BUDGETING.] A local agency 
 50.7   must use prospective budgeting to calculate the assistance 
 50.8   payment amount for the first two months for an applicant who has 
 50.9   not received assistance in Minnesota for at least one payment 
 50.10  month preceding the first month of payment under a current 
 50.11  application.  Prospective budgeting is not subject to 
 50.12  overpayments or underpayments. 
 50.13     (a) The local agency must apply the income received or 
 50.14  anticipated in the first month of MFIP-S eligibility against the 
 50.15  need of the first month.  The local agency must apply the income 
 50.16  received or anticipated in the second month against the need of 
 50.17  the second month. 
 50.18     (b) When the assistance payment for any part of the first 
 50.19  two months is based on anticipated income, the local agency must 
 50.20  base the initial assistance payment amount on the information 
 50.21  available at the time the initial assistance payment is made. 
 50.22     (c) The local agency must determine the assistance payment 
 50.23  amount for the first two months of MFIP-S eligibility by 
 50.24  budgeting both recurring and nonrecurring income for those two 
 50.25  months. 
 50.26     (d) The local agency must budget the child support income 
 50.27  received or anticipated to be received by an assistance unit to 
 50.28  determine the assistance payment amount from the month of 
 50.29  application through the date in which MFIP-S eligibility is 
 50.30  determined and assistance is authorized.  Child support income 
 50.31  which has been budgeted to determine the assistance payment in 
 50.32  the initial two months is considered nonrecurring income.  An 
 50.33  assistance unit must forward any payment of child support to the 
 50.34  child support enforcement unit of the local agency following the 
 50.35  date in which assistance is authorized. 
 50.36     Subd. 2.  [RETROSPECTIVE BUDGETING.] The local agency must 
 51.1   use retrospective budgeting to calculate the monthly assistance 
 51.2   payment amount after the payment for the first two months has 
 51.3   been made under subdivision 1. 
 51.4      Subd. 3.  [ADDITIONAL USES OF RETROSPECTIVE 
 51.5   BUDGETING.] Notwithstanding subdivision 1, the local agency must 
 51.6   use retrospective budgeting to calculate the monthly assistance 
 51.7   payment amount for the first two months under paragraphs (a) and 
 51.8   (b). 
 51.9      (a) The local agency must use retrospective budgeting to 
 51.10  determine the amount of the assistance payment in the first two 
 51.11  months of MFIP-S eligibility: 
 51.12     (1) when an assistance unit applies for assistance for the 
 51.13  same month for which assistance has been interrupted, the 
 51.14  interruption in eligibility is less than one payment month, the 
 51.15  assistance payment for the preceding month was issued in 
 51.16  Minnesota, and the assistance payment for the immediately 
 51.17  preceding month was determined retrospectively; or 
 51.18     (2) when a person applies to be added to an assistance 
 51.19  unit, that assistance unit has received assistance in Minnesota 
 51.20  for at least the two preceding months, and that person has been 
 51.21  living with and has been financially responsible for one or more 
 51.22  members of that assistance unit for at least the two preceding 
 51.23  months. 
 51.24     (b) Except as provided in clauses (1) to (4), the local 
 51.25  agency must use retrospective budgeting and apply income 
 51.26  received in the budget month by an assistance unit and by a 
 51.27  financially responsible household member who is not included in 
 51.28  the assistance unit against the appropriate transitional or 
 51.29  family wage level standard to determine the assistance payment 
 51.30  to be issued for the payment month. 
 51.31     (1) When a source of income ends prior to the third payment 
 51.32  month, that income is not considered in calculating the 
 51.33  assistance payment for that month.  When a source of income ends 
 51.34  prior to the fourth payment month, that income is not considered 
 51.35  when determining the assistance payment for that month. 
 51.36     (2) When a member of an assistance unit or a financially 
 52.1   responsible household member leaves the household of the 
 52.2   assistance unit, the income of that departed household member is 
 52.3   not budgeted retrospectively for any full payment month in which 
 52.4   that household member does not live with that household and is 
 52.5   not included in the assistance unit. 
 52.6      (3) When an individual is removed from an assistance unit 
 52.7   because the individual is no longer a minor child, the income of 
 52.8   that individual is not budgeted retrospectively for payment 
 52.9   months in which that individual is not a member of the 
 52.10  assistance unit, except that income of an ineligible child in 
 52.11  the household must continue to be budgeted retrospectively 
 52.12  against the child's needs when the parent or parents of that 
 52.13  child request allocation of their income against any unmet needs 
 52.14  of that ineligible child. 
 52.15     (4) When a person ceases to have financial responsibility 
 52.16  for one or more members of an assistance unit, the income of 
 52.17  that person is not budgeted retrospectively for the payment 
 52.18  months which follow the month in which financial responsibility 
 52.19  ends. 
 52.20     Subd. 4.  [SIGNIFICANT CHANGE IN GROSS INCOME.] The local 
 52.21  agency must recalculate the assistance payment when an 
 52.22  assistance unit experiences a significant change resulting in a 
 52.23  reduction in the gross income received in the payment month from 
 52.24  the gross income received in the budget month.  The local agency 
 52.25  must issue a supplemental assistance payment based on the local 
 52.26  agency's best estimate of the assistance unit's income and 
 52.27  circumstances for the payment month.  Budget adjustments that 
 52.28  result from significant changes are limited to two times per 
 52.29  year regardless of the reason for the change.  Budget 
 52.30  adjustments due to a significant change in the amount of direct 
 52.31  support received must not be made after the date the assistance 
 52.32  unit is required to forward support to the child support 
 52.33  enforcement unit under subdivision 1, paragraph (d). 
 52.34     Subd. 5.  [INCOME AVERAGING FOR PARTICIPANTS PAID WEEKLY OR 
 52.35  BIWEEKLY.] For the purposes of stabilizing assistance payments, 
 52.36  the local agency may average income for participants paid weekly 
 53.1   or biweekly.  Monthly income may be computed by adding income 
 53.2   from all paychecks, dividing the sum by the number of paychecks, 
 53.3   and multiplying the results by 4.3 if paychecks are weekly or 
 53.4   2.16 if paychecks are biweekly.  The local agency may not use 
 53.5   income averaging unless discussed with the participant and 
 53.6   requested by the participant. 
 53.7      Sec. 20.  [256J.20] [ALLOCATION FOR UNMET NEED OF OTHER 
 53.8   HOUSEHOLD MEMBERS.] 
 53.9      Except as prohibited in paragraphs (a) and (b), an 
 53.10  allocation of income is allowed to meet the unmet need of an 
 53.11  ineligible spouse or an ineligible child under the age of 21 for 
 53.12  whom the caregiver is financially responsible who also lives 
 53.13  with the caregiver.  An allocation is allowed from the 
 53.14  caregiver's income to meet the need of an ineligible or excluded 
 53.15  person.  That allocation is allowed in an amount up to the 
 53.16  difference between the MFIP-S family allowance for the 
 53.17  assistance unit when that excluded or ineligible person is 
 53.18  included in the assistance unit and the MFIP-S family allowance 
 53.19  for the assistance unit when the excluded or ineligible person 
 53.20  is not included in the assistance unit.  These allocations must 
 53.21  be deducted from the caregiver's counted earnings and from 
 53.22  unearned income subject to paragraphs (a) and (b). 
 53.23     (a) Income of a minor child in the assistance unit must not 
 53.24  be allocated to meet the need of a person who is not a member of 
 53.25  the assistance unit, including the child's parent, even when 
 53.26  that parent is the payee of the child's income. 
 53.27     (b) Income of an assistance unit must not be allocated to 
 53.28  meet the needs of a person ineligible for failure to cooperate 
 53.29  with program requirements including child support requirements, 
 53.30  a person ineligible due to fraud, or a person who opts out of 
 53.31  the assistance unit. 
 53.32     Sec. 21.  [256J.21] [EMPLOYMENT DISREGARDS.] 
 53.33     To determine MFIP-S eligibility, the local agency shall 
 53.34  apply the following employment disregards. 
 53.35     (a) When determining initial eligibility, the employment 
 53.36  disregard is 18 percent of the gross earned income whether or 
 54.1   not the member is working full time or part time. 
 54.2      (b) When determining initial eligibility, dependent care 
 54.3   costs must be deducted from gross earned income for the actual 
 54.4   amount paid for dependent care or up to the maximum disregard 
 54.5   allowed under chapter 119B. 
 54.6      (c) When determining ongoing eligibility and payment 
 54.7   amount, the employment disregard is 38 percent of the gross 
 54.8   earned income.  The employment disregard in this paragraph is 
 54.9   applied every month there is earned income. 
 54.10     Sec. 22.  [256J.22] [AMOUNT OF ASSISTANCE PAYMENT.] 
 54.11     Except as provided in paragraphs (a) to (c), the amount of 
 54.12  an assistance payment is equal to the difference between the 
 54.13  transitional standard or the family wage level in section 
 54.14  256J.16, subdivision 5, and countable income. 
 54.15     (a) When MFIP-S eligibility exists for the month of 
 54.16  application, the amount of the assistance payment for the month 
 54.17  of application must be prorated from the date of application or 
 54.18  the date all other eligibility factors are met for that 
 54.19  applicant, whichever is later.  This provision applies when an 
 54.20  applicant loses at least one day of MFIP-S eligibility. 
 54.21     (b) MFIP-S overpayments to an assistance unit must be 
 54.22  recouped according to section 256J.23, subdivision 4. 
 54.23     (c) An initial assistance payment must not be made to an 
 54.24  applicant who is not eligible on the date payment is made. 
 54.25     Sec. 23.  [256J.23] [CORRECTION OF OVERPAYMENTS AND 
 54.26  UNDERPAYMENTS.] 
 54.27     Subdivision 1.  [SCOPE OF OVERPAYMENT.] When a participant 
 54.28  or former participant receives an overpayment due to agency, 
 54.29  client, ATM error, or due to assistance received while an appeal 
 54.30  is pending and the participant or former participant is 
 54.31  determined ineligible for assistance or for less assistance than 
 54.32  was received, the local agency must recoup or recover the 
 54.33  overpayment under the conditions of this section. 
 54.34     Subd. 2.  [NOTICE OF OVERPAYMENT.] When a local agency 
 54.35  discovers that a participant or former participant has received 
 54.36  an overpayment for one or more months, the local agency must 
 55.1   notify the participant or former participant of the overpayment 
 55.2   in writing.  A notice of overpayment must specify the reason for 
 55.3   the overpayment, the authority for citing the overpayment, the 
 55.4   time period in which the overpayment occurred, the amount of the 
 55.5   overpayment, and the participant's or former participant's right 
 55.6   to appeal.  No limit applies to the period in which the local 
 55.7   agency is required to recoup or recover an overpayment according 
 55.8   to subdivisions 3 and 4. 
 55.9      Subd. 3.  [RECOVERING OVERPAYMENTS FROM FORMER RECIPIENTS.] 
 55.10  A local agency must initiate efforts to recover overpayments 
 55.11  paid to a former participant.  Adults and minor caregivers of an 
 55.12  assistance unit at the time an overpayment occurs, whether 
 55.13  receiving assistance or not, are jointly and individually liable 
 55.14  for repayment of the overpayment.  The local agency must request 
 55.15  repayment from the former recipients.  When an agreement for 
 55.16  repayment is not completed within six months of the date of 
 55.17  discovery or when there is a default on an agreement for 
 55.18  repayment after six months, the local agency must initiate 
 55.19  recovery consistent with chapter 270A, or section 541.05.  When 
 55.20  a person has been convicted of fraud under section 256.98, 
 55.21  recovery must be sought regardless of the amount of 
 55.22  overpayment.  When an overpayment is less than $35, and is not 
 55.23  the result of a fraud conviction under section 256.98, the local 
 55.24  agency must not seek recovery under this subdivision.  The local 
 55.25  agency must retain information about all overpayments regardless 
 55.26  of the amount.  When an adult or minor caregiver reapplies for 
 55.27  assistance, the overpayment must be recouped under subdivision 4.
 55.28     Subd. 4.  [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 
 55.29  participant may voluntarily repay, in part or in full, an 
 55.30  overpayment even if assistance is reduced under this 
 55.31  subdivision, until the total amount of the overpayment is 
 55.32  repaid.  When an overpayment occurs due to fraud, the local 
 55.33  agency must recover ten percent of the transitional standard or 
 55.34  the amount of the monthly assistance payment, whichever is 
 55.35  less.  When a nonfraud overpayment occurs, the local agency must 
 55.36  recover ten percent of the transitional standard or the amount 
 56.1   of the monthly assistance payment, whichever is less.  
 56.2      Subd. 5.  [RECOVERING AUTOMATIC TELLER MACHINE ERRORS.] For 
 56.3   recipients receiving benefits via electronic benefit transfer, 
 56.4   if the overpayment is a result of an ATM dispensing funds in 
 56.5   error to the recipient, the agency may recover the ATM error by 
 56.6   immediately withdrawing funds from the recipient's electronic 
 56.7   benefit transfer account, up to the amount of the error. 
 56.8      Subd. 6.  [SCOPE OF UNDERPAYMENTS.] A local agency must 
 56.9   issue a corrective payment for underpayments made to a 
 56.10  participant or to a person who would be a participant if an 
 56.11  agency or client error causing the underpayment had not occurred.
 56.12  The local agency must issue the corrective payment according to 
 56.13  subdivision 8. 
 56.14     Subd. 7.  [IDENTIFYING THE UNDERPAYMENT.] An underpayment 
 56.15  may be identified by a local agency, by a participant, by a 
 56.16  former participant, or by a person who would be a participant 
 56.17  except for agency or client error. 
 56.18     Subd. 8.  [ISSUING CORRECTIVE PAYMENTS.] A local agency 
 56.19  must correct an underpayment within seven calendar days after 
 56.20  the underpayment has been identified, by adding the corrective 
 56.21  payment amount to the monthly assistance payment of the 
 56.22  participant or by issuing a separate payment to a participant or 
 56.23  former participant, or by reducing an existing overpayment 
 56.24  balance.  When an underpayment occurs in a payment month and is 
 56.25  not identified until the next payment month or later, the local 
 56.26  agency must first subtract the underpayment from any overpayment 
 56.27  balance before issuing the corrective payment.  The local agency 
 56.28  must not apply an underpayment in a current payment month 
 56.29  against an overpayment balance.  When an underpayment in the 
 56.30  current payment month is identified, the corrective payment must 
 56.31  be issued within seven calendar days after the underpayment is 
 56.32  identified. 
 56.33     Subd. 9.  [APPEALS.] A participant may appeal an 
 56.34  underpayment, an overpayment, and a reduction in an assistance 
 56.35  payment made to recoup the overpayment under subdivision 4.  The 
 56.36  participant's appeal of each issue must be timely under section 
 57.1   256.045.  When an appeal based on the notice issued under 
 57.2   subdivision 2 is not timely, the fact or the amount of that 
 57.3   overpayment must not be considered as a part of a later appeal, 
 57.4   including an appeal of a reduction in an assistance payment to 
 57.5   recoup that overpayment. 
 57.6      Sec. 24.  [256J.24] [PAYMENT PROVISIONS.] 
 57.7      Subdivision 1.  [PAYMENT POLICY.] The following policies 
 57.8   apply to monthly assistance payments and corrective payments: 
 57.9      (a) Grant payments may be issued in the form of warrants 
 57.10  immediately redeemable in cash, electronic benefits, or by 
 57.11  direct deposit into the recipient's account in a financial 
 57.12  institution. 
 57.13     (b) The department shall mail assistance payment checks to 
 57.14  the address where a caretaker lives unless the local agency 
 57.15  approves an alternate arrangement. 
 57.16     (c) The department shall mail monthly assistance payment 
 57.17  checks within time to allow postal service delivery to occur no 
 57.18  later than the first day of each month.  Monthly assistance 
 57.19  payment checks must be dated the first day of the month.  
 57.20     (d) The department shall issue replacement checks promptly, 
 57.21  but no later than seven calendar days after the provisions of 
 57.22  sections 16A.46; 256.01, subdivision 11; and 471.415 have been 
 57.23  met. 
 57.24     (e) When a payment is made by means other than by check, 
 57.25  the time limits in paragraphs (c) and (d) apply.  
 57.26     (f) When the department issues payments in the form of food 
 57.27  coupons, the payments will be issued on a staggered basis 
 57.28  through the first ten mailing days of the month.  Sundays and 
 57.29  federal holidays are not mailing days. 
 57.30     Subd. 2.  [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 
 57.31  paying assistance directly to a participant may be used when a: 
 57.32     (1) local agency determines that a vendor payment is the 
 57.33  most effective way to resolve an emergency situation pertaining 
 57.34  to basic needs; 
 57.35     (2) caregiver makes a written request to the local agency 
 57.36  asking that part or all of the assistance payment be issued by 
 58.1   protective or vendor payments for shelter and utility service 
 58.2   only.  The caregiver may withdraw this request in writing at any 
 58.3   time; or 
 58.4      (3) caregiver has exhibited a continuing pattern of 
 58.5   mismanaging funds as determined by the county agency. 
 58.6      The director of a local agency must approve a proposal for 
 58.7   protective or vendor payment for money mismanagement.  During 
 58.8   the time a protective or vendor payment is being made, the local 
 58.9   agency must provide services designed to alleviate the causes of 
 58.10  the mismanagement. 
 58.11     The continuing need for and method of payment must be 
 58.12  documented and reviewed every 12 months.  The director of a 
 58.13  local agency must approve the continuation of protective or 
 58.14  vendor payments. 
 58.15     When it appears that the need for protective or vendor 
 58.16  payments will continue or is likely to continue beyond two years 
 58.17  because the local agency's efforts have not resulted in 
 58.18  sufficiently improved use of assistance on behalf of the minor 
 58.19  child, judicial appointment of a legal guardian or other legal 
 58.20  representative must be sought by the local agency. 
 58.21     Subd. 3.  [CHOOSING PAYEES FOR PROTECTIVE OR VENDOR 
 58.22  PAYMENTS.] A local agency shall consult with a caregiver 
 58.23  regarding the selection of the form of payment, the selection of 
 58.24  a protective payee, and the distribution of the assistance 
 58.25  payment to meet the various costs incurred by the assistance 
 58.26  unit.  When choosing a protective payee, the local agency shall 
 58.27  notify the caregiver of a consultation date.  If the caregiver 
 58.28  fails to respond to the local agency's request for consultation 
 58.29  by the effective date on the notice, the local agency must 
 58.30  choose a protective payee for that payment month and subsequent 
 58.31  payment months until the caregiver responds to the agency's 
 58.32  request for consultation.  The local agency must notify the 
 58.33  caregiver of the right to appeal the determination that a 
 58.34  protective or vendor payment should be made or continued and to 
 58.35  appeal the selection of the payee.  If a local agency is not 
 58.36  able to find another protective payee, a local agency staff 
 59.1   member may serve as a protective payee.  The following persons 
 59.2   may not serve as protective payees:  a member of the county 
 59.3   board of commissioners; the local agency staff member 
 59.4   determining financial eligibility for the family; special 
 59.5   investigative or resource staff; the staff member handling 
 59.6   accounting or fiscal processes related to the participant; or a 
 59.7   landlord, grocer, or other vendor dealing directly with the 
 59.8   participant. 
 59.9      Subd. 4.  [DISCONTINUING PROTECTIVE OR VENDOR PAYMENTS.] A 
 59.10  local agency shall discontinue protective or vendor payments in 
 59.11  two years or in the month following the local agency's failure 
 59.12  to grant six-month approval to a money management plan, 
 59.13  whichever occurs first.  At least once every 12 months, a local 
 59.14  agency shall review the performance of a protective payee acting 
 59.15  under subdivision 2, clause (3), to determine whether a new 
 59.16  payee should be selected.  When a participant complains about 
 59.17  the performance of a protective payee, a review shall occur 
 59.18  within 30 calendar days. 
 59.19     Subd. 5.  [VENDOR PAYMENTS FOR DRUG OFFENSES.] (a) If an 
 59.20  applicant has been convicted of a drug offense while receiving 
 59.21  assistance or within five years of the date of application for 
 59.22  assistance, the assistance must be issued through vendor 
 59.23  payments as provided in paragraph (c) until the applicant has 
 59.24  completed terms of the court-ordered sentence.  This subdivision 
 59.25  also applies to persons who receive food stamps under section 
 59.26  115 of the Personal Responsibility and Work Opportunity 
 59.27  Reconciliation Act of 1996. 
 59.28     (b) For the purposes of this subdivision, "drug offense" 
 59.29  means a conviction that occurred after August 22, 1996, of 
 59.30  sections 152.021 to 152.025, 152.0261, or 256.096.  Drug offense 
 59.31  also means a conviction in another jurisdiction of the 
 59.32  possession, use, or distribution of a controlled substance, or 
 59.33  conspiracy to commit any of these offenses, if the offense 
 59.34  occurred after August 22, 1996, and the conviction is a felony 
 59.35  offense in that jurisdiction. 
 59.36     (c) The county agency shall consult with the caregiver 
 60.1   regarding the identity of vendors for shelter and utility 
 60.2   payments under this subdivision.  Any balance of the MFIP-S 
 60.3   grant remaining after issuing vendor payments for shelter and 
 60.4   utility needs shall be issued to the caregiver.  If the 
 60.5   caregiver exhibits a pattern of mismanaging funds, the balance 
 60.6   of the MFIP-S grant may be issued under the policy prescribed in 
 60.7   subdivisions 2, clause (3); and 4. 
 60.8      Subd. 6.  [INTERSTATE PAYMENT STANDARDS.] (a) Effective 
 60.9   July 1, 1997, the amount of assistance paid to an eligible 
 60.10  family in which all members have resided in Minnesota for less 
 60.11  than 12 calendar months shall be the lesser of either the 
 60.12  payment standard that would have been received by the family 
 60.13  from the state of immediate prior residence, or the amount 
 60.14  calculated in accordance with MFIP-S.  The lesser payment shall 
 60.15  continue until the family meets the 12-month requirement.  
 60.16  Payment shall be calculated by applying Minnesota's budgeting 
 60.17  policies and the unit's net income shall be deducted from the 
 60.18  payment standard in the other state or in Minnesota, whichever 
 60.19  is lower. 
 60.20     (b) During the first 12 months a family resides in 
 60.21  Minnesota, the number of months that a family is eligible to 
 60.22  receive TANF assistance is limited to the number of months the 
 60.23  family would have been eligible to receive TANF benefits in the 
 60.24  state of immediate prior residence. 
 60.25     (c) This policy applies whether or not the family received 
 60.26  TANF assistance while residing in the state of previous 
 60.27  residence. 
 60.28     (d) When a family moves to Minnesota from another state 
 60.29  where the family has exhausted that state's time limit for 
 60.30  receiving TANF benefits, the family will not be eligible to 
 60.31  receive any MFIP-S benefits in Minnesota for 12 months from the 
 60.32  date the family moves here. 
 60.33     (e) For the purposes of this subdivision, "state of 
 60.34  immediate prior residence" means: 
 60.35     (i) the state in which the applicant declares the applicant 
 60.36  spent the most time in the 30 days prior to moving to Minnesota; 
 61.1   or 
 61.2      (ii) the applicant is in the migrant work stream and the 
 61.3   applicant maintains a home in another state. 
 61.4      (f) This policy also applies to families who did not 
 61.5   receive assistance while residing in a state of previous 
 61.6   residence. 
 61.7      Sec. 25.  [256J.25] [SPECIAL POLICIES.] 
 61.8      Subdivision 1.  [MEDICAL ASSISTANCE.] Medical coverage is 
 61.9   available as described in chapter 256B. 
 61.10     Subd. 2.  [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 
 61.11  ASSISTANCE UNIT.] For household members who purchase and prepare 
 61.12  food with the MFIP-S assistance unit but are not part of the 
 61.13  assistance unit, the local agency must determine a separate food 
 61.14  stamp benefit based on regulations agreed upon with the 
 61.15  department of agriculture. 
 61.16     This subdivision does not apply to optional members who 
 61.17  have chosen not to be in the assistance unit. 
 61.18     Fair hearing requirements for persons who receive food 
 61.19  stamps under this subdivision are governed by section 256.045, 
 61.20  and Code of Federal Regulations, title 7, subtitle B, chapter 
 61.21  II, part 273, section 273.15. 
 61.22     Subd. 3.  [INCOME DISREGARD FOR CERTAIN PROGRAMS, FOOD 
 61.23  ASSISTANCE PORTION OF ASSISTANCE PAYMENT.] The portion of the 
 61.24  MFIP-S assistance payment that is designated by the commissioner 
 61.25  as the food assistance portion of the assistance payment must be 
 61.26  disregarded as income in the following programs: 
 61.27     (1) housing subsidy programs; 
 61.28     (2) low-income home energy assistance program; 
 61.29     (3) SSI, when determining interim assistance amount; and 
 61.30     (4) other programs that do not count food stamps as income. 
 61.31     For the purposes of this subdivision, the food assistance 
 61.32  portion of the assistance payment means a predetermined portion 
 61.33  of the MFIP-S assistance payment that may be received in 
 61.34  point-of-purchase sites or as food stamps.  The predetermined 
 61.35  portion of the assistance payment will vary by family profile, 
 61.36  which is based on family size. 
 62.1      Subd. 4.  [RETENTION OF CASE RECORDS.] The local agency 
 62.2   must retain financial case records and employment and training 
 62.3   services records for MFIP-S cases for six years.  Information in 
 62.4   the case records must be maintained according to chapter 13. 
 62.5      Sec. 26.  [256J.26] [MFIP-S ORIENTATION TO FINANCIAL 
 62.6   SERVICES.] 
 62.7      Subdivision 1.  [LOCAL AGENCY TO PROVIDE 
 62.8   ORIENTATION.] Local agencies in MFIP-S counties must provide 
 62.9   MFIP-S orientation to financial assistance and the caregiver 
 62.10  must be given an opportunity for face-to-face interaction with 
 62.11  staff of the local agency or the entity providing the 
 62.12  orientation.  The local agency may not require caregivers to 
 62.13  attend an MFIP-S orientation.  If a caregiver does not attend an 
 62.14  orientation, the local agency must provide written information 
 62.15  to the caregiver about MFIP-S. 
 62.16     Subd. 2.  [GENERAL INFORMATION.] The MFIP-S orientation 
 62.17  must consist of a presentation that informs caregivers of: 
 62.18     (1) work incentives under MFIP-S; 
 62.19     (2) the types and locations of child care services 
 62.20  available through the local agency that are accessible to enable 
 62.21  a caregiver to participate in employment, preemployment, and 
 62.22  training or educational programs; 
 62.23     (3) the child care resource and referral program designated 
 62.24  by the commissioner to provide education and assistance to 
 62.25  select child care services and a referral to the child care 
 62.26  resource and referral when assistance is requested; 
 62.27     (4) the rights, responsibilities, and obligations of 
 62.28  participants; 
 62.29     (5) the consequences for failure to meet requirements; 
 62.30     (6) the expectation that the caregiver will independently 
 62.31  seek self-support and explain the obligation, based on time on 
 62.32  assistance, to develop an employment plan under section 256J.27; 
 62.33     (7) the method of entering educational programs or 
 62.34  employment and training services available through the county; 
 62.35     (8) the availability and the benefits of the early 
 62.36  childhood health and developmental screening under sections 
 63.1   123.701 to 123.74; 
 63.2      (9) the caregiver's eligibility for transition year child 
 63.3   care assistance when the caregiver loses eligibility for MFIP-S 
 63.4   due to increased earnings; and 
 63.5      (10) the caregiver's eligibility for extended medical 
 63.6   assistance when the caregiver loses eligibility for MFIP-S due 
 63.7   to increased earnings or increased child or spousal support. 
 63.8      Subd. 3.  [SUPPORT SERVICES TO ATTEND ORIENTATION.] Upon a 
 63.9   caregiver's request, the local agency must arrange for 
 63.10  transportation and child care or reimburse caregivers for 
 63.11  transportation and child care expenses necessary to enable 
 63.12  caregivers to attend orientation scheduled on a day other than 
 63.13  when the caregiver makes application for assistance. 
 63.14     Sec. 27.  [256J.27] [EMPLOYMENT AND TRAINING SERVICES.] 
 63.15     Subdivision 1.  [EMPLOYMENT AND TRAINING DEFINITIONS.] (a) 
 63.16  "Assessment" means an evaluation of a caregiver's work history, 
 63.17  skills and abilities, interests, education, child care needs, 
 63.18  supportive service needs, and family circumstances. 
 63.19     (b) "Employment and training services" means programs, 
 63.20  activities, and services designed to assist a caregiver in 
 63.21  obtaining and retaining employment. 
 63.22     (c) "Employment and training service provider" means a 
 63.23  public, private, or nonprofit agency certified by the 
 63.24  commissioner of economic security to deliver employment and 
 63.25  training services under sections 268.0122, subdivision 3, and 
 63.26  268.871, subdivision 1. 
 63.27     (d) "Employment plan" means a plan developed by the job 
 63.28  counselor in conjunction with the caregiver, which identifies 
 63.29  the most direct path to employment for the caregiver and the 
 63.30  specific steps that the caregiver will take on that path. 
 63.31     (e) "Job counselor" means a staff person employed by the 
 63.32  county agency's employment and training services provider who 
 63.33  delivers services as specified in subdivision 2. 
 63.34     (f) "Federal participation standards" means the work 
 63.35  participation standards as specified in title 1 of Public Law 
 63.36  Number 104-193 of the Personal Responsibility and Work 
 64.1   Opportunity Act of 1996.  For purposes of MFIP-S, any approved 
 64.2   activity included in the caregiver's employment plan, meets the 
 64.3   definition of work activity as counted under the federal 
 64.4   participation standards. 
 64.5      (g) "Participant" means an MFIP-S caregiver that is 
 64.6   enrolled in MFIP-S employment and training services. 
 64.7      (h) "Suitable employment" means employment which: 
 64.8      (1) is within the recipient's physical and mental capacity; 
 64.9      (2) meets health and safety standards established by the 
 64.10  Occupational Safety and Health Administration and the Department 
 64.11  of Labor and Industry; 
 64.12     (3) pays hourly gross earnings which are not less than the 
 64.13  federal or state minimum wage for that type of employment, 
 64.14  whichever is applicable; 
 64.15     (4) offers a job vacancy which is not the result of a 
 64.16  strike, lockout, or other bona fide labor dispute; 
 64.17     (5) requires a round-trip commuting time from the 
 64.18  recipient's residence of less than two hours by available 
 64.19  transportation, exclusive of the time to transport children to 
 64.20  and from child care; 
 64.21     (6) does not require the recipient to leave children under 
 64.22  age 12 unattended in order to work, or if child care is 
 64.23  required, such care is available; and 
 64.24     (7) does not discriminate at the job site on the basis of 
 64.25  age, sex, race, color, creed, marital status, status with regard 
 64.26  to public assistance, disability, religion, or place of national 
 64.27  origin. 
 64.28     Subd. 2.  [COUNTY RESPONSIBILITIES.] (a) Each county must 
 64.29  develop and provide an employment and training program which is 
 64.30  designed to put participants on the most direct path to 
 64.31  full-time unsubsidized employment.  Participation in these 
 64.32  services is mandatory for all nondeferred MFIP-S caregivers.  
 64.33  For single parent cases, mandatory participation is required 
 64.34  within six months of eligibility determination for cash 
 64.35  assistance.  Each county will decide when, within the first six 
 64.36  months, to require participation.  For two parent cases, 
 65.1   participation is required concurrent with the receipt of MFIP-S 
 65.2   cash assistance.  For parents under the age of 20, without a 
 65.3   high school diploma or its equivalent, participation is required 
 65.4   concurrent with the receipt of MFIP-S cash assistance. 
 65.5      (b) In counties selected for the Work First and Work 
 65.6   Focused programs, first-time applicants shall meet the 
 65.7   requirements of the Work First and Work Focused programs in lieu 
 65.8   of the requirements under MFIP-S. 
 65.9      (c) A caregiver who was enrolled in project STRIDE or 
 65.10  ACCESS on July 1, 1997, and was making satisfactory progress 
 65.11  toward the objectives specified in the caregiver's employment 
 65.12  plan, may continue with the existing employment plan for up to 
 65.13  one year with the approval of a job counselor.  The job 
 65.14  counselor may require changes to the plan in order to be 
 65.15  consistent with the one-year time limit. 
 65.16     (d) Counties may provide employment and training services 
 65.17  to MFIP-S recipients who volunteer before the date upon which 
 65.18  they become mandatory for participation. 
 65.19     (e) As part of the application process, counties must 
 65.20  provide all applicants with a face-to-face orientation to public 
 65.21  assistance and employment and training services that stresses 
 65.22  the necessity and opportunity of immediate employment, outlines 
 65.23  the job search resources offered, explains the requirement to 
 65.24  comply with an employment plan and the consequences for failing 
 65.25  to comply, and explains the services that are available to 
 65.26  support job search and work. 
 65.27     (f) The provider must conduct an assessment of the ability 
 65.28  to obtain employment of all caregivers who are mandatory for 
 65.29  employment and training services. 
 65.30     (g) Based on the assessment, the provider must develop a 
 65.31  written employment plan which outlines the most direct path to 
 65.32  full-time unsubsidized employment, the specific steps that will 
 65.33  be taken to obtain employment, and a timetable for the 
 65.34  completion of each of the steps. 
 65.35     (h) Counties, or their providers, will determine what 
 65.36  services, in addition to the orientation, assessment, and 
 66.1   employment plan, will be provided.  For purposes of MFIP-S, any 
 66.2   approved activity included in the caregiver's employment plan, 
 66.3   meets the definition of work activity as counted under the 
 66.4   federal participation standards.  Within the limitations of 
 66.5   funding, any reasonable service or sequence of services that 
 66.6   leads directly to is allowed.  At the request of a county, the 
 66.7   state will provide assistance in developing services, or service 
 66.8   approaches.  Services that may be provided include, but are not 
 66.9   limited to:  adult basic education; apprenticeships; bilingual 
 66.10  employment and training services; community service; CWEP as 
 66.11  specified in subdivision 17; English as a second language; 
 66.12  general educational development diploma classes; grant diversion 
 66.13  as specified in subdivision 19; job clubs; job coaching; job 
 66.14  placement including part-time employment; job-related 
 66.15  counseling; job retention services; job-specific training or 
 66.16  education, limited to one year; on-the-job training as specified 
 66.17  in subdivision 18; referrals to other social services; SEID; 
 66.18  skills testing; supervised and/or unsupervised job search; and 
 66.19  workshops. 
 66.20     (i) Educational options are limited to one year unless the 
 66.21  job counselor and the participant jointly determine that a 
 66.22  two-year limit would best achieve long-term self-sufficiency. 
 66.23     Subd. 3.  [THE SELF-EMPLOYMENT INVESTMENT DEMONSTRATION 
 66.24  PROGRAM (SEID).] (a) A caregiver who enrolls and participates in 
 66.25  the SEID program as specified in section 268.95, may, at county 
 66.26  option, be exempted from other employment and training 
 66.27  participation requirements for a period of up to 24 months, 
 66.28  except for the school attendance requirements as specified in 
 66.29  subdivision 9.  
 66.30     (b) The following income and resource considerations apply 
 66.31  to SEID participants:  
 66.32     (1) an unencumbered cash reserve fund, composed of proceeds 
 66.33  from a SEID business, is not counted against the grant if those 
 66.34  funds are reinvested in the business and the value of the 
 66.35  business does not exceed $3,000.  The value of the business is 
 66.36  determined by deducting outstanding encumbrances from retained 
 67.1   business profit; and 
 67.2      (2) the purchase of capital equipment and durable goods of 
 67.3   an amount up to $3,000 during a 24-month project period is 
 67.4   allowed as a business expense. 
 67.5      (c) SEID participants are also eligible for employment and 
 67.6   training services, including child care and transportation. 
 67.7      Subd. 4.  [MOVE TO A DIFFERENT COUNTY.] MFIP-S applicants 
 67.8   or recipients who move to a different county in Minnesota and 
 67.9   are required to participate in employment and training services, 
 67.10  are subject to the requirements of the destination county.  An 
 67.11  employment plan that was developed in the county of origin may 
 67.12  be continued in the destination county if both the destination 
 67.13  county and the participant agree to do so. 
 67.14     Subd. 5.  [PARTICIPANT EXPECTATIONS.] All MFIP-S 
 67.15  participants must meet the terms of the employment plan as 
 67.16  specified in subdivision 2, paragraph (g).  For a caregiver 
 67.17  under the age of 20 without a high school diploma or general 
 67.18  educational development diploma, the requirement to participate 
 67.19  in employment and training services means that the caregiver 
 67.20  must meet the educational requirements under subdivision 9.  
 67.21  Failure to develop or comply with the employment plan will 
 67.22  result in the imposition of a sanction as specified in 
 67.23  subdivision 11. 
 67.24     Subd. 6.  [EMPLOYMENT AND TRAINING PERFORMANCE 
 67.25  STANDARDS.] The department shall adopt a two-stage set of 
 67.26  employment and training services performance standards.  The 
 67.27  first-stage standards are mandatory for all counties and are 
 67.28  intended to enable the state to achieve the federal 
 67.29  participation standards.  The second-stage standards are 
 67.30  intended to reward counties for performance that exceeds the 
 67.31  mandatory standards.  Only those counties that meet the 
 67.32  first-stage standards are eligible for the second-stage 
 67.33  incentives. 
 67.34     (a) [FIRST-STAGE PERFORMANCE STANDARDS.] Each county must 
 67.35  independently meet the federal participation standards.  Failure 
 67.36  to meet the federal participation standards will result in a 
 68.1   sanction as specified in paragraph (b).  Only counties that meet 
 68.2   the federal participation standards are eligible for incentives 
 68.3   under paragraph (d). 
 68.4      (b) [DISPOSITION OF SANCTIONS RESULTING FROM THE FAILURE TO 
 68.5   MEET FEDERAL PARTICIPATION STANDARDS.] (1) If the state, as a 
 68.6   whole, fails to achieve the performance standards specified in 
 68.7   paragraph (a), and is sanctioned by the federal government, the 
 68.8   fiscal penalty will be apportioned to the state and the counties 
 68.9   using the following method: 
 68.10     (i) multiply the full sanction amount by 50 percent.  This 
 68.11  is the state's share of the sanction; 
 68.12     (ii) distribute the nonstate share of the sanction across 
 68.13  all counties in direct proportion to their employment and 
 68.14  training services allocation for the year for which the sanction 
 68.15  was imposed.  For counties that did not meet the federal 
 68.16  participation standards, this amount is the fiscal penalty that 
 68.17  is imposed; 
 68.18     (iii) divide the amount computed in item (ii) by two.  This 
 68.19  is the fiscal penalty that is imposed on counties that meet the 
 68.20  federal participation standards; 
 68.21     (iv) under any circumstance, the sanction applied to any 
 68.22  county shall not exceed one-third of its employment and training 
 68.23  services allocation for the year for which the sanction was 
 68.24  imposed; and 
 68.25     (v) after applying items (i) to (iv), any remaining 
 68.26  unattributed portion of the federal sanction will be assumed by 
 68.27  the state. 
 68.28     (2) Counties that fail to achieve the standard specified in 
 68.29  paragraph (a), will be subject to a review of their employment 
 68.30  and training services program under section 268.86, subdivision 
 68.31  2.  The departments of human services and economic security will 
 68.32  work with counties to assess and revise their programs to 
 68.33  improve their ability to achieve the standards in the following 
 68.34  year. 
 68.35     (3) If, in a given year, the state, as a whole, has met the 
 68.36  performance standards specified in paragraph (a), a county for 
 69.1   which the given year is the second consecutive year in which the 
 69.2   performance standards were not met will, in addition to a 
 69.3   department review of the county program, be subject to a fiscal 
 69.4   sanction of an amount equal to 20 percent of the total 
 69.5   employment and training services allocation for the second year 
 69.6   in which the standards were not met. 
 69.7      (4) The sanction, as specified in clause (1) or (3), shall 
 69.8   be adjusted to account for variations in county demographic and 
 69.9   economic conditions.  The department shall develop a method for 
 69.10  this adjustment by January 1, 1998. 
 69.11     (5) A county may not pay its share of any federal or 
 69.12  state-imposed fiscal sanction from the employment and training 
 69.13  services allocation to the county.  Each county must maintain 
 69.14  employment and training services funding at the full allocation 
 69.15  level, regardless of any penalties that are imposed. 
 69.16     (c) [SECOND-STAGE PERFORMANCE STANDARDS.] (1) Beginning 
 69.17  July 1, 1998, and each quarter thereafter, the commissioner of 
 69.18  human services shall inform all counties of each county's 
 69.19  performance on the following measures: 
 69.20     (i) MFIP-S caseload reduction; 
 69.21     (ii) average placement wage rate; 
 69.22     (iii) rate of job retention after three months; 
 69.23     (iv) placement rate into unsubsidized jobs; and 
 69.24     (v) federal participation requirements as specified in 
 69.25  subdivision 1. 
 69.26     (2) By July 1, 1999, the department shall establish 
 69.27  performance standards for each of the measures in this paragraph.
 69.28     (d) [INCENTIVE FUND.] (1) Beginning July 1, 2000, and in 
 69.29  each subsequent state fiscal year, the commissioner shall 
 69.30  withhold from the county allocation process under subdivision 2, 
 69.31  five percent of the total annual MFIP-S employment and training 
 69.32  services appropriation in an incentive fund to be awarded to 
 69.33  counties that have met the standards specified under paragraph 
 69.34  (c), during the previous fiscal year. 
 69.35     (2) Twenty percent of the total incentive fund shall be 
 69.36  reserved for each of the five measures specified in paragraph 
 70.1   (c).  On July 1, 2000, all counties that have met a given 
 70.2   standard during the previous state fiscal year shall share the 
 70.3   incentive for that standard.  Each county's share of an 
 70.4   incentive shall be the same percent as its MFIP-S employment and 
 70.5   training services allocation for the previous state fiscal year 
 70.6   is of the sum of the allocations to the counties that qualify to 
 70.7   share in the incentive for a given measure. 
 70.8      (3) At the discretion of the commissioner, during the first 
 70.9   two years of the incentive fund, the incentive may be used as a 
 70.10  contingency fund to cover unanticipated county costs of 
 70.11  implementing the new employment and training program. 
 70.12     (4) If no county achieves the second-stage standards, the 
 70.13  entire incentive fund, minus any amount used under clause (3), 
 70.14  will be allocated to all counties in direct proportion to their 
 70.15  original employment and training services allocation. 
 70.16     Subd. 7.  [SERVICE-PROVIDING AGENCIES.] Counties may select 
 70.17  one or more employment and training service providers or may opt 
 70.18  to provide services on their own.  Service providers must be 
 70.19  certified by the commissioner of economic security according to 
 70.20  the standards in section 268.871, subdivision 1. 
 70.21     Subd. 8.  [DEFERRALS.] (a) A caregiver is deferred from the 
 70.22  requirement to comply with MFIP-S expectations, for as long as 
 70.23  the condition persists, if the caregiver is: 
 70.24     (1) ill or incapacitated, when the illness or incapacity is 
 70.25  expected to continue for at least 15 days and is professionally 
 70.26  certified, and limits the participants' ability to comply with 
 70.27  the terms of the employment plan; 
 70.28     (2) 60 years of age or older; 
 70.29     (3) needed in the home to care for an ill or incapacitated 
 70.30  family member; 
 70.31     (4) a parent in a two-parent family where the youngest 
 70.32  child is under age six, or age six and not in kindergarten, and 
 70.33  the parent is personally caring for the child; 
 70.34     (5) the single parent of a child under one year of age and 
 70.35  is personally providing care for the child this deferral may be 
 70.36  used only once in a lifetime; 
 71.1      (6) the single parent of a child under six years of age and 
 71.2   is employed for 30 or more hours per week.  This deferral does 
 71.3   not apply to the school attendance requirement for minor parents 
 71.4   or 18- and 19-year-old parents as provided in subdivision 9, 
 71.5   paragraph (b); 
 71.6      (7) the second parent in a two-parent family and is 
 71.7   employed for 20 or more hours per week; 
 71.8      (8) working 35 hours or more per week or, if the number of 
 71.9   hours cannot be verified, earns weekly, at least the federal 
 71.10  minimum hourly wage rate multiplied by 35; 
 71.11     (9) not the natural parent, adoptive parent, or stepparent 
 71.12  of a minor child in the assistance unit; or 
 71.13     (10) is willing to comply but needed child care is 
 71.14  unavailable and the youngest child is under age 12. 
 71.15     (b) In a multiple-parent family, only one parent may be 
 71.16  deferred under paragraph (a), clause (3), (4), or (7). 
 71.17     Subd. 9.  [TEEN PARENT.] (a) The county agency must examine 
 71.18  the educational level of each caregiver under the age of 20 to 
 71.19  determine if the caregiver has completed a high school education 
 71.20  or its equivalent.  If the caregiver has completed a high school 
 71.21  education or its equivalent and is not exempt from the 
 71.22  requirement to attend school under paragraph (c), the county 
 71.23  agency must complete an individual assessment for the 
 71.24  caregiver.  The assessment must be performed as soon as possible 
 71.25  but within 30 days of determining MFIP-S eligibility for the 
 71.26  caregiver.  The assessment must provide an initial examination 
 71.27  of the caregiver's educational progress and needs, literacy 
 71.28  level, child care and supportive service needs, family 
 71.29  circumstances, skills, and work experience.  In the case of a 
 71.30  caregiver under the age of 18, the assessment must also consider 
 71.31  the results of the child and teen checkup, if available, and the 
 71.32  effect of a child's development and educational needs on the 
 71.33  caregiver's ability to participate in the program.  The county 
 71.34  agency must advise the caregiver that the caregiver's first goal 
 71.35  must be to complete an appropriate educational option if one is 
 71.36  identified for the caregiver through the assessment and, in 
 72.1   consultation with educational agencies, must review the various 
 72.2   school completion options with the caregiver and assist in 
 72.3   selecting the most appropriate option. 
 72.4      (b) For caregivers who are under age 18, the assessment and 
 72.5   the employment plan must be completed by the county social 
 72.6   services agency, as specified in section 257.33.  For caregivers 
 72.7   who are age 18 or 19, the assessment and employment plan must be 
 72.8   completed by the job counselor.  The social services agency or 
 72.9   the job counselor shall consult with representatives of 
 72.10  educational agencies required to assist in developing 
 72.11  educational plans under section 126.235. 
 72.12     (c) If the job counselor or county social services agency 
 72.13  identifies an appropriate educational option, it must develop an 
 72.14  employment plan which reflects the assessment.  The plan must 
 72.15  specify that participation in an educational activity is 
 72.16  required, what school or educational program is most 
 72.17  appropriate, the services that will be provided, the activities 
 72.18  the caregiver will take part in, including child care and 
 72.19  supportive services, the consequences to the caregiver for 
 72.20  failing to participate or comply with the specified 
 72.21  requirements, and the right to appeal any adverse action.  The 
 72.22  employment plan must, to the extent possible, reflect the 
 72.23  preferences of the caregiver. 
 72.24     (d) If the job counselor determines that there is no 
 72.25  appropriate educational option for a caregiver who is age 18 or 
 72.26  19, the job counselor shall develop an employment plan 
 72.27  consistent with subdivision 1, paragraph (d).  If the county 
 72.28  social services agency determines that school attendance is not 
 72.29  appropriate for a caregiver under age 18, the county agency 
 72.30  shall refer the caregiver to social services for services as 
 72.31  provided in section 257.33. 
 72.32     (e) Notwithstanding subdivision 8, minor parents, or 18- or 
 72.33  19-year-old parents without a high school diploma or its 
 72.34  equivalent must attend school unless: 
 72.35     (1) transportation services needed to enable the caregiver 
 72.36  to attend school are not available; 
 73.1      (2) licensed or legal nonlicensed child care services 
 73.2   needed to enable the caregiver to attend school are not 
 73.3   available; 
 73.4      (3) the caregiver is ill or incapacitated seriously enough 
 73.5   to prevent attendance at school; 
 73.6      (4) the caregiver is needed in the home because of the 
 73.7   illness or incapacity of another member of the household; this 
 73.8   includes a caregiver of a child who is younger than six weeks of 
 73.9   age; 
 73.10     (5) the caregiver works 30 or more hours per week; or 
 73.11     (6) the caregiver is pregnant and incapacity is verified. 
 73.12     (f) The caregiver must be enrolled in school and meeting 
 73.13  the school's attendance requirements.  If enrolled, the 
 73.14  caregiver is considered to be attending when the school is not 
 73.15  in regular session, including during holiday and summer breaks. 
 73.16     Subd. 10.  [GOOD CAUSE FOR FAILURE TO COMPLY.] Caregivers 
 73.17  may claim good cause for failing to comply with the requirements 
 73.18  of the program when, in the judgment of the job counselor, the 
 73.19  reason for failure is reasonable and justified. 
 73.20     Subd. 11.  [FAILURE TO COMPLY; NOTICES AND SANCTIONS.] (a) 
 73.21  When a nondeferred caregiver fails without good cause to comply 
 73.22  with development of an employment plan or the provisions of that 
 73.23  plan, the county agency or its job counselor must provide a 
 73.24  notice of intent to sanction to the caregiver specifying the 
 73.25  program requirements that were not complied with, informing the 
 73.26  caregiver that the county agency will impose the sanctions 
 73.27  specified in paragraph (d), and informing the caregiver of the 
 73.28  opportunity to request a conciliation conference as specified in 
 73.29  paragraph (b).  If the job counselor provides the required 
 73.30  notice, the job counselor must simultaneously notify the local 
 73.31  agency that the caregiver has failed to comply and request that 
 73.32  the county agency impose the sanctions in paragraph (d).  The 
 73.33  county must then send a notice of adverse action to the 
 73.34  caregiver informing the caregiver of the sanction that will be 
 73.35  imposed, the reasons for the sanction, the effective date of the 
 73.36  sanction, and the caregiver's right to have a fair hearing under 
 74.1   section 256J.28. 
 74.2      (b) The caregiver may request a conciliation conference by 
 74.3   sending a written request, by making a telephone request, or by 
 74.4   making an in-person request.  The request must be received 
 74.5   within ten calendar days of the date the county agency mailed 
 74.6   the ten-day notice of intent to sanction.  If a timely request 
 74.7   for a conciliation is received, the county agency's service 
 74.8   provider must conduct the conference within five days of the 
 74.9   request.  If the conciliation conference resolves the 
 74.10  noncompliance, the job counselor must promptly inform the county 
 74.11  agency and request withdrawal of the sanction notice. 
 74.12     (c) Upon receiving a sanction notice, the caregiver may 
 74.13  request a fair hearing under section 256J.28, without exercising 
 74.14  the option of a conciliation conference.  The county agency may 
 74.15  not require a conciliation conference prior to a fair hearing. 
 74.16     (d) Sanctions are effective following expiration of the 
 74.17  ten-day notice period.  The sanction for failure to comply or 
 74.18  participate is a minimum of one month for any incidence of 
 74.19  noncompliance, including quitting suitable employment without 
 74.20  good cause.  If noncompliance continues beyond one month, the 
 74.21  sanction shall remain in effect until the beginning of the month 
 74.22  after failure to comply ceases.  The sanction for a family whose 
 74.23  nondeferred parental caregiver fails without good cause to 
 74.24  comply with the requirements of this section is a reduction 
 74.25  equal to 25 percent of the transitional standard as defined in 
 74.26  section 256J.08, subdivision 97, when only one sanction is 
 74.27  imposed.  When the caretaker fails to participate in or comply 
 74.28  on more than one occasion and concurrent sanctions are imposed, 
 74.29  the reduction shall be an additional ten percent of the 
 74.30  transitional standard.  The maximum reduction to assistance may 
 74.31  not exceed 35 percent of the transitional standard for any 
 74.32  family.  When concurrent sanctions expire and the number of 
 74.33  active sanctions drops to one, the remaining sanction is equal 
 74.34  to 25 percent of the transitional standard, regardless of the 
 74.35  order in which the sanctions were imposed. 
 74.36     (e) If noncompliance continues beyond three months, the 
 75.1   rent and utilities portion of the family's assistance shall be 
 75.2   vendor paid in accordance with the provisions of section 
 75.3   256J.24, subdivisions 2 to 4.  Vendor payments for rent and 
 75.4   utilities shall continue until the sanction is removed. 
 75.5      Subd. 12.  [REPORTING REQUIREMENTS.] The commissioner of 
 75.6   human services, in cooperation with the commissioner of economic 
 75.7   security, shall develop reporting requirements for county 
 75.8   agencies and employment and training service providers according 
 75.9   to section 256.01, subdivision 2, paragraph 17.  Reporting 
 75.10  requirements must, to the extent possible, use existing client 
 75.11  tracking systems and must be within the limits of funds 
 75.12  available.  The requirements must include summary information 
 75.13  necessary for state agencies and the legislature to evaluate the 
 75.14  effectiveness of the services. 
 75.15     Subd. 13.  [LOCAL SERVICE UNIT PLANS.] Each local service 
 75.16  unit shall prepare and submit a plan as specified in section 
 75.17  268.88. 
 75.18     Subd. 14.  [ALLOCATION OF COUNTY EMPLOYMENT AND TRAINING 
 75.19  SERVICES BLOCK GRANT.] (a) State money appropriated for MFIP-S 
 75.20  employment and training services under this section must be 
 75.21  allocated to counties as specified in this subdivision. 
 75.22     (b) First, money shall be allocated to counties in an 
 75.23  amount equal to the county's guaranteed floor.  The county's 
 75.24  guaranteed allocation floor shall be calculated as follows: 
 75.25     (1) for fiscal 1998, the guaranteed allocation floor shall 
 75.26  be calculated by multiplying the county's STRIDE allocation 
 75.27  received for state fiscal year 1997 by 90 percent; 
 75.28     (2) for each subsequent fiscal year, the guaranteed 
 75.29  allocation floor shall be calculated by multiplying the county's 
 75.30  MFIP-S employment and training services allocation received the 
 75.31  previous state fiscal year by 90 percent; and 
 75.32     (3) if the amount of funds available for allocation is less 
 75.33  than the amount allocated to all counties for the previous 
 75.34  fiscal year, each county's previous year allocation shall be 
 75.35  reduced in proportion to the reduction in statewide funding for 
 75.36  the purpose of establishing the guaranteed floor. 
 76.1      (c) If there remain funds to allocate after establishing 
 76.2   each county's guaranteed floor under the provisions in paragraph 
 76.3   (b), the balance of funds shall be allocated as follows: 
 76.4      (1) for state fiscal year 1998, the remaining funds shall 
 76.5   be allocated based on the county's average number of AFDC cases 
 76.6   as compared to the statewide total number of cases.  The average 
 76.7   number of cases shall be based on counts of AFDC cases as of 
 76.8   March 31, June 30, September 30, and December 31 of calendar 
 76.9   year 1996; 
 76.10     (2) for state fiscal year 1999, the remaining funds shall 
 76.11  be allocated based on the county's average number of AFDC and 
 76.12  MFIP cases as compared to the statewide total number of cases.  
 76.13  The average number of cases shall be based on counts of AFDC and 
 76.14  MFIP cases as of March 31, June 30, September 30, and December 
 76.15  31 of calendar year 1997; and 
 76.16     (3) for all subsequent state fiscal years, the remaining 
 76.17  funds shall be allocated based on the county's average number of 
 76.18  MFIP-S cases as compared to the statewide total number of 
 76.19  cases.  The average number of cases must be based on counts of 
 76.20  MFIP-S cases as of March 31, June 30, September 30, and December 
 76.21  31 of the previous calendar year. 
 76.22     (d) Funds allocated for STRIDE services for state fiscal 
 76.23  year 1998 are allocated to county agencies based on the 
 76.24  provisions of statute in effect on June 30, 1997.  At the time 
 76.25  that the AFDC program is replaced by the Temporary Assistance 
 76.26  for Needy Families program under title 1 of Public Law Number 
 76.27  104-193 of the Personal Responsibility and Work Opportunity Act 
 76.28  of 1996, any unexpended balance of a county's STRIDE allocation 
 76.29  for that fiscal year remains available to the county for 
 76.30  operation of MFIP-S employment and training services and for the 
 76.31  operation of the STRIDE program for the MFIP field trial 
 76.32  counties for the balance of the fiscal year.  These STRIDE funds 
 76.33  shall be included in the calculation of the next year's MFIP-S 
 76.34  employment and training allocation under the provisions of 
 76.35  paragraph (b). 
 76.36     (e) No more than 15 percent of the money allocated under 
 77.1   this subdivision may be used for administrative activities. 
 77.2      (f) State funds appropriated to cover the costs of 
 77.3   bilingual employment and training services to refugees shall be 
 77.4   allocated to county agencies as follows: 
 77.5      (1) for state fiscal year 1998, the allocation shall be 
 77.6   based on the county's proportion of the total statewide number 
 77.7   of AFDC refugee cases in the previous fiscal year.  Counties 
 77.8   with less than one percent of the statewide number of AFDC or 
 77.9   MFIP refugee cases shall not receive an allocation of bilingual 
 77.10  employment and training services funds; and 
 77.11     (2) for each subsequent fiscal year, the allocation shall 
 77.12  be based on the county's proportion of the total statewide 
 77.13  number of MFIP-S refugee cases in the previous fiscal year.  
 77.14  Counties with less than one percent of the statewide number of 
 77.15  MFIP-S refugee cases shall not receive an allocation of 
 77.16  bilingual employment and training services funds. 
 77.17     (g) The commissioner of human services shall review county 
 77.18  agency expenditures of MFIP-S employment and training services 
 77.19  funds at the end of the third quarter of the first year of the 
 77.20  biennium and each quarter after that and may reallocate 
 77.21  unencumbered or unexpended money appropriated under this section 
 77.22  to those county agencies that can demonstrate a need for 
 77.23  additional money. 
 77.24     (h) At the request of the caregiver, the county agency may 
 77.25  continue to provide MFIP-S employment and training and support 
 77.26  services to a participant for up to 90 days after the 
 77.27  participant loses MFIP-S eligibility and may continue providing 
 77.28  a specific employment and training service for the duration of 
 77.29  that service to a participant if funds for the service are 
 77.30  obligated or expended prior to the participant losing MFIP-S 
 77.31  eligibility. 
 77.32     Subd. 15.  [PROVISION OF MFIP-S EMPLOYMENT AND TRAINING 
 77.33  SERVICES BY INDIAN TRIBES.] (a) The commissioner may enter into 
 77.34  agreements with federally recognized Indian tribes with a 
 77.35  reservation in the state to provide MFIP-S employment and 
 77.36  training services to members of the Indian tribe and to other 
 78.1   caregivers who are a part of the tribal member's MFIP-S 
 78.2   assistance unit.  For purposes of this section, "Indian tribe" 
 78.3   means a tribe, band, nation, or other federally recognized group 
 78.4   or community of Indians.  The commissioner may also enter into 
 78.5   an agreement with a consortium of Indian tribes providing the 
 78.6   governing body of each Indian tribe in the consortium complies 
 78.7   with the provisions of this section. 
 78.8      (b) The Indian tribe must agree to fulfill the 
 78.9   responsibilities provided under section 256J.27 regarding 
 78.10  operation of MFIP-S employment and training services, as 
 78.11  designated by the commissioner. 
 78.12     (c) The Indian tribe must operate its employment and 
 78.13  training services program within a geographic service area not 
 78.14  to exceed the counties within which a border of the reservation 
 78.15  falls. 
 78.16     (d) The Indian tribe must operate its program in conformity 
 78.17  with section 13.46 and any applicable federal regulations in the 
 78.18  use of data about MFIP-S recipients. 
 78.19     (e) The Indian tribe must coordinate operation of its 
 78.20  program with the county agency, Job Training Partnership Act 
 78.21  programs, and other support services or employment-related 
 78.22  programs in the counties in which the tribal unit's program 
 78.23  operates. 
 78.24     (f) The Indian tribe must provide financial and program 
 78.25  participant activity recordkeeping and reporting in the manner 
 78.26  and using the forms and procedures specified by the commissioner 
 78.27  and permit inspection of its program and records by 
 78.28  representatives of the state. 
 78.29     (g) The Indian tribe's employment and training service 
 78.30  provider must be certified by the commissioner of economic 
 78.31  security. 
 78.32     (h) If the commissioner and an Indian tribe are parties to 
 78.33  an agreement under this subdivision, the agreement may annually 
 78.34  provide to the Indian tribe the funding amount in clause (1) or 
 78.35  (2): 
 78.36     (1) if the Indian tribe operated a tribal STRIDE program 
 79.1   during state fiscal year 1997, the amount to be provided is the 
 79.2   amount the Indian tribe received from the state for operation of 
 79.3   its tribal STRIDE program in state fiscal year 1997, except that 
 79.4   the amount provided for a fiscal year may increase or decrease 
 79.5   in the same proportion that the total amount of state funds 
 79.6   available for MFIP-S employment and training services increased 
 79.7   or decreased that fiscal year.  No additional funds shall be 
 79.8   provided to the tribe under this clause for the first year of 
 79.9   expansion of MFIP beyond the pilot counties; or 
 79.10     (2) if the Indian tribe did not operate a tribal STRIDE 
 79.11  program during state fiscal year 1997, the commissioner may 
 79.12  provide to the Indian tribe for the first year of operations the 
 79.13  amount determined by multiplying the state allocation for MFIP-S 
 79.14  employment and training services to each county agency in the 
 79.15  Indian tribe's service delivery area by the percentage of MFIP-S 
 79.16  recipients in that county who were members of the Indian tribe 
 79.17  during the previous state fiscal year.  The resulting amount 
 79.18  shall also be the amount that the commissioner may provide to 
 79.19  the Indian tribe annually thereafter through an agreement under 
 79.20  this subdivision, except that the amount provided for a fiscal 
 79.21  year may increase or decrease in the same proportion that the 
 79.22  total amount of state funds available for MFIP-S employment and 
 79.23  training services increased or decreased that fiscal year.  No 
 79.24  additional funds shall be provided to the tribe under this 
 79.25  clause for the first year of expansion of MFIP beyond the pilot 
 79.26  counties. 
 79.27     (i) Indian tribal members receiving MFIP-S benefits and 
 79.28  residing in the service area of an Indian tribe operating 
 79.29  employment and training services under an agreement with the 
 79.30  commissioner must be referred by county agencies in the service 
 79.31  area to the Indian tribe for employment and training services. 
 79.32     Subd. 16.  [INJURY PROTECTION FOR WORK EXPERIENCE 
 79.33  PARTICIPANTS.] (a) Payment of any claims resulting from an 
 79.34  alleged injury or death of a person participating in a county or 
 79.35  a tribal community work experience program approved by the 
 79.36  commissioner according to this section shall be determined in 
 80.1   accordance with this section.  This determination method applies 
 80.2   to work experience programs authorized by the commissioner for 
 80.3   persons applying for or receiving cash assistance and food 
 80.4   stamps, Minnesota parent's fair share, and to obligors 
 80.5   participating in community services under section 518.551, 
 80.6   subdivision 5a, in a county with an approved community 
 80.7   investment program. 
 80.8      (b) Claims that are subject to this section shall be 
 80.9   investigated by the county agency or the tribal program 
 80.10  responsible for supervising the work to determine whether the 
 80.11  claimed injury occurred, whether the claimed medical expenses 
 80.12  are reasonable, and whether the loss is covered by the 
 80.13  claimant's insurance.  If insurance coverage is established, the 
 80.14  county agency or tribal program shall submit the claim to the 
 80.15  appropriate insurance entity for payment.  The investigating 
 80.16  county agency or tribal program shall submit all valid claims, 
 80.17  in the net amount of any insurance payments, to the department 
 80.18  of human services. 
 80.19     (c) The department of human services shall submit all 
 80.20  claims for impairment compensation to the commissioner of labor 
 80.21  and industry.  The commissioner of labor and industry shall 
 80.22  review all submitted claims and recommend to the department of 
 80.23  human services an amount of compensation comparable to that 
 80.24  which would be provided under the impairment compensation 
 80.25  schedule of section 176.101, subdivision 3b. 
 80.26     (d) The department of human services shall approve a claim 
 80.27  of $1,000 or less for payment if appropriated funds are 
 80.28  available, if the county agency or tribal program responsible 
 80.29  for supervising the work has made the determinations required by 
 80.30  this section, and if the work program was operated in compliance 
 80.31  with the safety provisions of this section.  The department 
 80.32  shall pay the portion of an approved claim of $1,000 or less 
 80.33  that is not covered by the claimant's insurance within three 
 80.34  months of the date of submission.  On or before February 1 of 
 80.35  each legislative session, the department shall submit to the 
 80.36  appropriate committees of the senate and the house of 
 81.1   representatives a list of claims of $1,000 or less paid during 
 81.2   the preceding calendar year and shall be reimbursed by 
 81.3   legislative appropriation for any claims that exceed the 
 81.4   original appropriation provided to the department to operate 
 81.5   this program.  Any unspent money from this appropriation shall 
 81.6   carry over to the second year of the biennium, and any unspent 
 81.7   money remaining at the end of the second year shall be returned 
 81.8   to the state general fund. 
 81.9      (e) On or before February 1 of each year, the department 
 81.10  shall submit to the appropriate committees of the senate and the 
 81.11  house of representatives a list of claims in excess of $1,000 
 81.12  and a list of claims of $1,000 or less that were submitted to 
 81.13  but not paid by the department of human services, together with 
 81.14  any recommendations of appropriate compensation.  These claims 
 81.15  shall be heard and determined by the appropriate committees of 
 81.16  the senate and house of representatives and, if approved, shall 
 81.17  be paid under the legislative claims procedure. 
 81.18     (f) Compensation paid under this section is limited to 
 81.19  reimbursement for reasonable medical expenses and impairment 
 81.20  compensation for disability in like amounts as allowed in 
 81.21  section 176.101, subdivision 3b.  Compensation for injuries 
 81.22  resulting in death shall include reasonable medical expenses and 
 81.23  burial expenses in addition to payment to the participant's 
 81.24  estate in an amount up to $200,000.  No compensation shall be 
 81.25  paid under this section for pain and suffering, lost wages, or 
 81.26  other benefits provided in chapter 176.  Payments made under 
 81.27  this section shall be reduced by any proceeds received by the 
 81.28  claimant from any insurance policy covering the loss.  For the 
 81.29  purposes of this section, "insurance policy" does not include 
 81.30  the medical assistance program authorized under chapter 256B or 
 81.31  the general assistance medical care program authorized under 
 81.32  chapter 256D. 
 81.33     (g) The procedure established by this section is exclusive 
 81.34  of all other legal, equitable, and statutory remedies against 
 81.35  the state, its political subdivisions, or employees of the state 
 81.36  or its political subdivisions.  The claimant shall not be 
 82.1   entitled to seek damages from any state, county, tribal, or 
 82.2   reservation insurance policy or self-insurance program. 
 82.3      (h) A claim is not valid for purposes of this subdivision 
 82.4   if the local agency responsible for supervising the work cannot 
 82.5   verify to the department of human services: 
 82.6      (1) that appropriate safety training and information is 
 82.7   provided to all persons being supervised by the agency under 
 82.8   this subdivision; and 
 82.9      (2) that all programs involving work by those persons 
 82.10  comply with federal Occupational Safety and Health 
 82.11  Administration and state department of labor and industry safety 
 82.12  standards.  A claim that is not valid because of failure to 
 82.13  verify safety training or compliance with safety standards will 
 82.14  not be paid by the department of human services or through the 
 82.15  legislative claims process and must be heard, decided, and paid, 
 82.16  if appropriate, by the local government unit or tribal JOBS 
 82.17  program responsible for supervising the work of the claimant. 
 82.18     (i) This program is effective July 1, 1995.  Claims may be 
 82.19  submitted on or after November 1, 1995. 
 82.20     (j) With respect to participants of the food stamp 
 82.21  employment and training program, this section is effective 
 82.22  December 1, 1996. 
 82.23     Subd. 17.  [COMMUNITY WORK EXPERIENCE.] (a) To the extent 
 82.24  of available resources, each county agency may establish and 
 82.25  operate a work experience component for MFIP-S caregivers who 
 82.26  are participating in employment and training services.  The 
 82.27  purpose of the work experience component is to enhance the 
 82.28  caregiver's employability and self-sufficiency and to provide 
 82.29  meaningful, productive work activities. 
 82.30     (b) The commissioner shall assist counties in the design 
 82.31  and implementation of these components.  Program participants 
 82.32  may not be assigned to work that was part or all of the duties 
 82.33  or responsibilities of an authorized public employee bargaining 
 82.34  unit position established as of July 1, 1996.  The exclusive 
 82.35  bargaining representative shall be notified no less than 14 days 
 82.36  in advance of any placement by the community work experience 
 83.1   program.  Written or oral concurrence with respect to job duties 
 83.2   of persons placed under the community work experience program 
 83.3   shall be obtained from the appropriate exclusive bargaining 
 83.4   representative. 
 83.5      (c) Work sites developed under this section are limited to 
 83.6   projects that serve a useful public service such as:  health, 
 83.7   social service, environmental protection, education, urban and 
 83.8   rural development and redevelopment, welfare, recreation, public 
 83.9   facilities, public safety, community service, services to aged 
 83.10  or disabled citizens, and child care.  To the extent possible, 
 83.11  the prior training, skills, and experience of a caregiver must 
 83.12  be considered in making appropriate work experience assignments. 
 83.13     (d) Structured, supervised volunteer work with an agency or 
 83.14  organization, which is monitored by the county service provider, 
 83.15  may, with the approval of the county agency, be used as a work 
 83.16  experience placement. 
 83.17     (e) As a condition of placing a caregiver in a program 
 83.18  under this subdivision, the county agency shall first provide 
 83.19  the caregiver the opportunity: 
 83.20     (1) for placement in suitable subsidized or unsubsidized 
 83.21  employment through participation in a job search; or 
 83.22     (2) for placement in suitable employment through 
 83.23  participation in on-the-job training, if such employment is 
 83.24  available. 
 83.25     (f) The caretaker's employment plan must include the length 
 83.26  of time needed in the work experience program, the need to 
 83.27  continue job-seeking activities while participating in work 
 83.28  experience, and the caregiver's employment goals. 
 83.29     (g) After each six months of a caregiver's participation in 
 83.30  a work experience job placement, and at the conclusion of each 
 83.31  work experience assignment under this section, the county agency 
 83.32  shall reassess and revise, as appropriate, the caregiver's 
 83.33  employment plan. 
 83.34     (h) A caregiver has good cause for failure to cooperate 
 83.35  with a work experience job placement if: 
 83.36     (1) work site participation adversely affects the 
 84.1   caretaker's physical or mental health, or the caregiver is 
 84.2   physically or mentally unfit to perform the assigned duties as 
 84.3   verified by a physician, licensed or certified psychologist, 
 84.4   physical therapist, or a vocational expert; 
 84.5      (2) the county agency determines that the caretaker does 
 84.6   not possess the skill or knowledge required for the work; 
 84.7      (3) the assignment requires joining, resigning from, or 
 84.8   refraining from joining a legitimate labor union, or the 
 84.9   assignment is to a site subject to a strike or lockout; 
 84.10     (4) the distance to the site prohibits walking and neither 
 84.11  public nor private transportation is available; 
 84.12     (5) the working hours or nature of the employment 
 84.13  interferes with the person's religious observances, convictions, 
 84.14  or beliefs; 
 84.15     (6) the assignment involves political or partisan 
 84.16  activities; 
 84.17     (7) there are circumstances beyond the household's control, 
 84.18  such as illness or a household emergency; 
 84.19     (8) the unavailability of child care for a child between 
 84.20  the ages of 6 and 12; or 
 84.21     (9) there are costs of transportation and other 
 84.22  work-related expenses that the caregiver is expected to incur 
 84.23  out-of-pocket and those costs are not reimbursed. 
 84.24     Subd. 18.  [ON-THE-JOB TRAINING.] (a) County agencies may 
 84.25  develop on-the-job training programs for MFIP-S caregivers who 
 84.26  are participating in employment and training services.  A county 
 84.27  agency that chooses to provide on-the-job training may make 
 84.28  payments to employers for on-the-job training costs that, during 
 84.29  the period of the training, must not exceed 50 percent of the 
 84.30  wages paid by the employer to the participant.  The payments are 
 84.31  deemed to be in compensation for the extraordinary costs 
 84.32  associated with training participants under this section and in 
 84.33  compensation for the costs associated with the lower 
 84.34  productivity of the participants during training. 
 84.35     (b) County agencies shall limit the length of training 
 84.36  based on the complexity of the job and the caregiver's previous 
 85.1   experience and training.  Placement in an on-the-job training 
 85.2   position with an employer is for the purpose of training and 
 85.3   employment with the same employer who has agreed to retain the 
 85.4   person upon satisfactory completion of training. 
 85.5      (c) Placement of any caregiver in an on-the-job training 
 85.6   position must be compatible with the assessment under 
 85.7   subdivision 2, paragraph (g), and the employability plan 
 85.8   established for the caregiver under subdivision 2, paragraph (h).
 85.9      (d) Provision of an on-the-job training program under the 
 85.10  Job Training Partnership Act, in and of itself, does not qualify 
 85.11  as an on-the-job training program under this section. 
 85.12     Subd. 19.  [GRANT DIVERSION.] (a) County agencies may 
 85.13  develop grant diversion programs for MFIP-S participants 
 85.14  participating in employment and training services.  A county 
 85.15  agency that chooses to provide grant diversion may divert to an 
 85.16  employer part or all of the MFIP-S cash payment for the 
 85.17  participant's assistance unit, in compliance with federal 
 85.18  regulations and laws.  Such payments to an employer are to 
 85.19  subsidize employment for MFIP-S caregivers as an alternative to 
 85.20  public assistance payments. 
 85.21     (b) County agencies shall limit the length of training to 
 85.22  nine months.  Placement in a grant diversion training position 
 85.23  with an employer is for the purpose of training and employment 
 85.24  with the same employer who has agreed to retain the person upon 
 85.25  satisfactory completion of training. 
 85.26     (c) Placement of any caregiver in a grant diversion 
 85.27  subsidized training position must be compatible with the 
 85.28  assessment and employability development plan established for 
 85.29  the recipient under section 256K.03, subdivision 8. 
 85.30     (d) In addition to diverting the MFIP-S grant to the 
 85.31  employer, employment and training funds may be used to subsidize 
 85.32  the grant diversion placement. 
 85.33     Subd. 20.  [PAYMENT METHODS.] MFIP-S grant payments may be 
 85.34  issued in the form of warrants immediately redeemable in cash, 
 85.35  electronic benefits transfer, or by direct deposit into the 
 85.36  recipient's account in a financial institution. 
 86.1      Sec. 28.  [256J.28] [FAIR HEARINGS.] 
 86.2      Caregivers receiving a notice of intent to sanction or a 
 86.3   notice of adverse action that includes a sanction, reduction in 
 86.4   benefits, suspension of benefits, denial of benefits, or 
 86.5   termination of benefits may request a fair hearing.  A request 
 86.6   for a fair hearing must be submitted in writing to the local 
 86.7   agency or to the department and must be mailed within 30 days 
 86.8   after a participant or former participant receives written 
 86.9   notice of the agency's action or within 90 days when a 
 86.10  participant or former participant shows good cause for not 
 86.11  submitting the request within 30 days.  A former participant who 
 86.12  receives a notice of adverse action due to an overpayment may 
 86.13  appeal the adverse action according to the requirements in this 
 86.14  section.  Issues that may be appealed are: 
 86.15     (1) the amount of the assistance payment; 
 86.16     (2) a suspension, reduction, denial, or termination of 
 86.17  assistance; 
 86.18     (3) the basis for an overpayment, the calculated amount of 
 86.19  an overpayment, and the level of recoupment; 
 86.20     (4) the eligibility for an assistance payment; and 
 86.21     (5) the use of protective or vendor payments. 
 86.22     A local agency must not reduce, suspend, or terminate 
 86.23  payment when an aggrieved participant requests a fair hearing 
 86.24  prior to the effective date of the adverse action or within ten 
 86.25  days of the mailing of the notice of adverse action, whichever 
 86.26  is later, unless the participant requests in writing not to 
 86.27  receive continued assistance pending a hearing decision.  
 86.28  Assistance issued pending a fair hearing is subject to recovery 
 86.29  under section 256J.23 when as a result of the fair hearing 
 86.30  decision the participant is determined ineligible for assistance 
 86.31  or the amount of the assistance received.  A local agency may 
 86.32  increase or reduce an assistance payment while an appeal is 
 86.33  pending when the circumstances of the participant change and are 
 86.34  not related to the issue on appeal.  The commissioner's order is 
 86.35  binding on a local agency.  No additional notice is required to 
 86.36  enforce the commissioner's order. 
 87.1      A local agency shall reimburse appellants for reasonable 
 87.2   and necessary expenses of attendance at the hearing, such as 
 87.3   child care and transportation costs and for the transportation 
 87.4   expenses of the appellant's witnesses and representatives to and 
 87.5   from the hearing.  Reasonable and necessary expenses do not 
 87.6   include legal fees.  Fair hearings must be conducted at a 
 87.7   reasonable time and date by an impartial referee employed by the 
 87.8   department.  The hearing may be conducted by telephone or at a 
 87.9   site that is readily accessible to persons with disabilities. 
 87.10     The appellant may introduce new or additional evidence 
 87.11  relevant to the issues on appeal.  Recommendations of the 
 87.12  appeals referee and decisions of the commissioner must be based 
 87.13  on evidence in the hearing record and are not limited to a 
 87.14  review of the local agency action. 
 87.15     Sec. 29.  [256J.29] [CHILD CARE SUPPORT.] 
 87.16     A caregiver with dependent children who is receiving 
 87.17  assistance through the MFIP-S program is entitled to child care 
 87.18  assistance as specified in chapter 119B up to extent of 
 87.19  available funding. 
 87.20     Sec. 30.  [256J.30] [APPLICANT AND PARTICIPANT 
 87.21  RESPONSIBILITIES.] 
 87.22     Subdivision 1.  [APPLICANT REPORTING REQUIREMENTS.] An 
 87.23  applicant must provide information on an application form and 
 87.24  supplemental forms about the applicant's circumstances which 
 87.25  affect MFIP-S eligibility or the assistance payment.  An 
 87.26  applicant must report changes identified in subdivision 9 while 
 87.27  the application is pending.  When an applicant does not 
 87.28  accurately report information on an application, both an 
 87.29  overpayment and a referral for a fraud investigation may 
 87.30  result.  When an applicant does not provide information or 
 87.31  documentation, the receipt of the assistance payment may be 
 87.32  delayed or the application may be denied depending on the type 
 87.33  of information required and its effect on eligibility. 
 87.34     Subd. 2.  [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 
 87.35  applicant or participant must apply for and follow through with 
 87.36  appealing any denials of eligibility for benefits from other 
 88.1   programs for which the applicant or participant is potentially 
 88.2   eligible and which would, if received, offset assistance 
 88.3   payments.  An applicant's or participant's failure to complete 
 88.4   application for these benefits without good cause results in 
 88.5   denial or termination of assistance.  Good cause for failure to 
 88.6   apply for these benefits is allowed when circumstances beyond 
 88.7   the control of the applicant or participant prevent the 
 88.8   applicant or participant from making an application. 
 88.9      Subd. 3.  [RESPONSIBILITY TO INQUIRE.] An applicant or 
 88.10  participant who does not know or is unsure whether a given 
 88.11  change in circumstances will affect the applicant's or 
 88.12  participant's MFIP-S eligibility or assistance payment must 
 88.13  contact the local agency for information. 
 88.14     Subd. 4.  [PARTICIPANT'S COMPLETION OF RECERTIFICATION OF 
 88.15  ELIGIBILITY FORM.] A participant must complete forms prescribed 
 88.16  by the commissioner which are required for recertification of 
 88.17  eligibility according to section 256J.15, subdivision 5. 
 88.18     Subd. 5.  [MONTHLY MFIP-S HOUSEHOLD REPORTS.] Each 
 88.19  assistance unit with a member who has earned income or a recent 
 88.20  work history, and each assistance unit that has income allocated 
 88.21  to it from a financially responsible person living with that 
 88.22  unit who has earned income or a recent work history, must 
 88.23  complete a monthly MFIP-S household report form.  "Recent work 
 88.24  history" means the individual received earned income in the 
 88.25  report month or any of the previous three calendar months even 
 88.26  if the earnings are excluded.  To be complete, the MFIP-S 
 88.27  household report form must be signed and dated by the caregiver 
 88.28  no earlier than the last day of the reporting period.  All 
 88.29  questions required to determine assistance payment eligibility 
 88.30  must be answered, and documentation of earned income must be 
 88.31  included. 
 88.32     Subd. 6.  [SIX-MONTH MFIP-S HOUSEHOLD REPORT.] Assistance 
 88.33  units that are not required to report monthly under subdivision 
 88.34  5 must complete an MFIP-S household report form every six 
 88.35  months.  To be complete, the MFIP-S household report form must 
 88.36  be signed and dated by the caregiver or caregivers no earlier 
 89.1   than the last day of the reporting period.  All questions 
 89.2   required to determine assistance payment eligibility must be 
 89.3   answered and documentation of earned income must be included. 
 89.4      Subd. 7.  [DUE DATE OF MFIP-S HOUSEHOLD REPORT.] An MFIP-S 
 89.5   household report form must be received by the local agency by 
 89.6   the eighth calendar day of the month following the reporting 
 89.7   period covered by the form.  When the eighth calendar day of the 
 89.8   month falls on a weekend or holiday, the MFIP-S household report 
 89.9   form must be received by the local agency the first working day 
 89.10  that follows the eighth calendar day.  The local agency must 
 89.11  send a notice of termination because of a late or incomplete 
 89.12  MFIP-S household report form. 
 89.13     Subd. 8.  [LATE MFIP-S HOUSEHOLD REPORT FORMS.] Paragraphs 
 89.14  (a) to (d) apply to the reporting requirements in subdivision 7. 
 89.15     (a) When a caregiver submits an incomplete MFIP-S household 
 89.16  report form before the last working day of the month on which a 
 89.17  ten-day notice of termination can be issued, the local agency 
 89.18  must return the incomplete form on or before the ten-day notice 
 89.19  deadline or any previously sent ten-day notice of termination is 
 89.20  invalid. 
 89.21     (b) When a complete MFIP-S household report form is not 
 89.22  received by a local agency before the last ten days of the month 
 89.23  in which the form is due, the local agency must send a notice of 
 89.24  proposed termination of assistance.  When a caregiver submits an 
 89.25  incomplete form on or after the date a notice of proposed 
 89.26  termination has been sent, the termination is valid unless the 
 89.27  caregiver submits a complete form before the end of the month. 
 89.28     (c) An assistance unit required to submit an MFIP-S 
 89.29  household report form is considered to have continued its 
 89.30  application for assistance if a complete MFIP-S household report 
 89.31  form is received within a calendar month after the month in 
 89.32  which assistance was received and assistance shall be paid for 
 89.33  the period beginning with the first day of the month in which 
 89.34  the report was due. 
 89.35     (d) A local agency must allow good cause exemptions from 
 89.36  the reporting requirements under subdivisions 5 and 6 when any 
 90.1   of the following factors cause a caregiver to fail to provide 
 90.2   the local agency with a completed MFIP-S household report form 
 90.3   before the end of the month in which the form is due: 
 90.4      (1) an employer delays completion of employment 
 90.5   verification; 
 90.6      (2) a local agency does not help a caregiver complete the 
 90.7   MFIP-S household report form when the caregiver asks for help; 
 90.8      (3) a caregiver does not receive an MFIP-S household report 
 90.9   form due to mistake on the part of the department or the local 
 90.10  agency or due to a reported change in address; 
 90.11     (4) a caregiver is ill, or physically or mentally 
 90.12  incapacitated; or 
 90.13     (5) some other circumstance occurs that a caregiver could 
 90.14  not avoid with reasonable care which prevents the caregiver from 
 90.15  providing a completed MFIP-S household report form before the 
 90.16  end of the month in which the form is due. 
 90.17     Subd. 9.  [CHANGES THAT MUST BE REPORTED.] A caregiver must 
 90.18  report the changes or anticipated changes specified in clauses 
 90.19  (1) to (16) within ten days of the date they occur, within ten 
 90.20  days of the date the caregiver learns that the change will 
 90.21  occur, at the time of the periodic recertification of 
 90.22  eligibility under section 256J.15, subdivision 5, or within 
 90.23  eight calendar days of a reporting period as in subdivision 5 or 
 90.24  6, whichever occurs first.  A caregiver must report other 
 90.25  changes at the time of the periodic recertification of 
 90.26  eligibility under section 256J.15, subdivision 5, or at the end 
 90.27  of a reporting period under subdivision 5 or 6, as applicable.  
 90.28  A caregiver must make these reports in writing or in person to 
 90.29  the local agency.  When a local agency could have reduced or 
 90.30  terminated assistance for one or more payment months if a delay 
 90.31  in reporting a change specified under clauses (1) to (16) had 
 90.32  not occurred, the local agency must determine whether a timely 
 90.33  notice under section 256J.31, subdivision 4, could have been 
 90.34  issued on the day that the change occurred.  When a timely 
 90.35  notice could have been issued, each month's overpayment 
 90.36  subsequent to that notice must be considered a client error 
 91.1   overpayment under section 256J.23.  Changes in circumstances 
 91.2   which must be reported within ten days must also be reported on 
 91.3   the MFIP-S household report form for the reporting period in 
 91.4   which those changes occurred.  Within ten days, a caregiver must 
 91.5   report: 
 91.6      (1) a change in initial employment; 
 91.7      (2) a change in initial receipt of unearned income; 
 91.8      (3) a recurring change in unearned income; 
 91.9      (4) a nonrecurring change of unearned income that exceeds 
 91.10  $30; 
 91.11     (5) the receipt of a lump sum; 
 91.12     (6) an increase in resources which may cause the assistance 
 91.13  unit to exceed resource limits; 
 91.14     (7) a change in the physical or mental status of an 
 91.15  incapacitated adult if the physical or mental status is the 
 91.16  basis of exemption from an MFIP-S work and training program; 
 91.17     (8) a change in employment status; 
 91.18     (9) a change in household composition, including births, 
 91.19  returns to and departures from the home of assistance unit 
 91.20  members and financially responsible persons, or a change in the 
 91.21  custody of a minor child; 
 91.22     (10) a change in health insurance coverage; 
 91.23     (11) the marriage or divorce of an assistance unit member; 
 91.24     (12) the death of a parent, minor child, or financially 
 91.25  responsible person; 
 91.26     (13) a change in address or living quarters of the 
 91.27  assistance unit; 
 91.28     (14) the sale, purchase, or other transfer of property; 
 91.29     (15) a change in school attendance of a custodial parent or 
 91.30  an employed child; and 
 91.31     (16) filing a lawsuit, a workers' compensation claim, or a 
 91.32  monetary claim against a third party. 
 91.33     Subd. 10.  [COOPERATION WITH CHILD SUPPORT 
 91.34  ENFORCEMENT.] The caregiver of a minor child must cooperate with 
 91.35  the efforts of the local agency to collect child and spousal 
 91.36  support according to section 256.741, subdivision 10.  A 
 92.1   caregiver must forward to the local agency all support the 
 92.2   caregiver receives during the period the assignment of support 
 92.3   required under section 256.741, subdivision 1, is in effect.  
 92.4   Support received by a caregiver, and not forwarded to the local 
 92.5   agency, must be repaid to the child support enforcement unit for 
 92.6   any month following the date on which initial eligibility is 
 92.7   determined, except as provided under subdivision 11, paragraph 
 92.8   (b), clause (4). 
 92.9      Subd. 11.  [REFUSAL TO COOPERATE WITH SUPPORT 
 92.10  REQUIREMENTS.] Failure by a caregiver to satisfy any of the 
 92.11  requirements of subdivision 10 constitutes refusal to cooperate, 
 92.12  and the sanctions under paragraph (b) apply. 
 92.13     (a) The IV-D agency must determine whether a caregiver has 
 92.14  refused to cooperate according to section 256.741, subdivision 3.
 92.15     (b) Determination by the IV-D agency that a caregiver has 
 92.16  refused to cooperate shall have the effects listed in clauses (1)
 92.17  to (4). 
 92.18     (1) After adequate notice, the grant of a caregiver who 
 92.19  refuses to cooperate must be reduced by 25 percent if no other 
 92.20  sanction is in effect or by an additional ten percent if one 
 92.21  other sanction is already in effect. 
 92.22     (2) A caregiver who is not a parent of a minor child in an 
 92.23  assistance unit may choose to remove that child from the 
 92.24  assistance unit unless the child is required to be in the 
 92.25  assistance unit as required by section 256J.17, subdivision 2. 
 92.26     (3) A parental caregiver who refuses to cooperate is 
 92.27  ineligible for medical assistance. 
 92.28     (4) Direct support retained by a caregiver must be counted 
 92.29  as unearned income when determining the amount of the assistance 
 92.30  payment. 
 92.31     Subd. 12.  [GOOD CAUSE EXEMPTION FROM COOPERATING WITH 
 92.32  SUPPORT REQUIREMENTS.] The IV-A or IV-D agency must notify the 
 92.33  caregiver that the caregiver may claim a good cause exemption 
 92.34  from cooperating with the requirements in subdivision 10.  Good 
 92.35  cause may be claimed and exemptions determined according to 
 92.36  section 256.741, subdivisions 4 to 7.  
 93.1      Subd. 13.  [COOPERATION WITH HEALTH CARE BENEFITS.] The 
 93.2   caregiver of a minor child must cooperate with the local agency 
 93.3   to identify and provide information to assist the local agency 
 93.4   in pursuing third-party liability for medical services. 
 93.5      (a) A caregiver must assign to the department any rights to 
 93.6   health insurance policy benefits the caregiver has during the 
 93.7   period of MFIP-S eligibility. 
 93.8      (b) A caregiver must identify any third party who may be 
 93.9   liable for care and services available under the medical 
 93.10  assistance program on behalf of the applicant or participant and 
 93.11  all other assistance unit members. 
 93.12     (c) When a participant refuses to assign the rights to the 
 93.13  department, or when a participant refuses to identify any third 
 93.14  party who may be liable for care and services, the grant of the 
 93.15  caregiver must be reduced by 25 percent if no other sanction is 
 93.16  in effect or by an additional ten percent if one other sanction 
 93.17  is already in effect.  The caregiver is also ineligible for 
 93.18  medical assistance. 
 93.19     Sec. 31.  [256J.31] [APPLICANT AND PARTICIPANT RIGHTS AND 
 93.20  LOCAL AGENCY RESPONSIBILITIES.] 
 93.21     Subdivision 1.  [RIGHT TO INFORMATION.] An applicant or 
 93.22  participant has the right to obtain from the local agency 
 93.23  information about the benefits, requirements, restrictions, and 
 93.24  appeal provisions of public assistance programs. 
 93.25     Subd. 2.  [RIGHT TO AUTHORIZED REPRESENTATIVE.] An 
 93.26  applicant or participant has the right to designate an 
 93.27  authorized representative to act on the applicant's or 
 93.28  participant's behalf.  An applicant or participant has the right 
 93.29  to be assisted or represented by an authorized representative in 
 93.30  eligibility determinations, recertification, conciliation 
 93.31  conferences, the fair hearing process, and any other contacts 
 93.32  with the local agency or the department.  When a local agency 
 93.33  determines that it is necessary for a person to assist an 
 93.34  applicant or participant, the local agency must designate a 
 93.35  staff member to assist the applicant or participant.  Upon a 
 93.36  request from an applicant or participant, a local agency must 
 94.1   provide addresses and telephone numbers of organizations that 
 94.2   provide legal services at low cost or no cost to low-income 
 94.3   persons. 
 94.4      Subd. 3.  [RIGHT OF APPLICANT TO NOTICE.] A local agency 
 94.5   must notify an applicant of the disposition of the applicant's 
 94.6   application.  The notice must be in writing and on forms 
 94.7   prescribed by the commissioner.  The local agency must mail the 
 94.8   notice to the last known mailing address provided by the 
 94.9   applicant.  When an application is denied, the local agency must 
 94.10  notify the applicant in writing of the reasons for the denial, 
 94.11  of the right to appeal, and of the right to reapply for 
 94.12  assistance. 
 94.13     Subd. 4.  [PARTICIPANT'S RIGHT TO NOTICE.] A local agency 
 94.14  must give a participant written notice of all adverse actions 
 94.15  affecting the participant including payment reductions, 
 94.16  suspensions, terminations, and use of protective, vendor, or 
 94.17  two-party payments.  The notice of adverse action must be on a 
 94.18  form prescribed or approved by the commissioner and must be 
 94.19  mailed to the last known mailing address provided by the 
 94.20  participant.  The local agency must state on the notice of 
 94.21  adverse action the action it intends to take, the reasons for 
 94.22  the action, the participant's right to appeal the action, the 
 94.23  conditions under which assistance can be continued pending an 
 94.24  appeal decision, and the related consequences of the action. 
 94.25     Subd. 5.  [MAILING OF NOTICE.] The notice of adverse action 
 94.26  shall be issued according to paragraphs (a) to (c). 
 94.27     (a) A local agency shall mail a notice of adverse action at 
 94.28  least ten days before the effective date of the adverse action, 
 94.29  except as provided in paragraphs (b) and (c). 
 94.30     (b) A local agency must mail a notice of adverse action at 
 94.31  least five days before the effective date of the adverse action 
 94.32  when the local agency has factual information that requires an 
 94.33  action to reduce, suspend, or terminate assistance based on 
 94.34  probable fraud. 
 94.35     (c) A local agency shall mail a notice of adverse action 
 94.36  before or on the effective date of the adverse action when: 
 95.1      (1) the local agency receives the caregiver's signed 
 95.2   monthly MFIP-S household report form that includes information 
 95.3   that requires payment reduction, suspension, or termination; 
 95.4      (2) the local agency is informed of the death of a 
 95.5   participant or the payee; 
 95.6      (3) the local agency receives a signed statement from the 
 95.7   caregiver that assistance is no longer wanted; 
 95.8      (4) the local agency receives a signed statement from the 
 95.9   caregiver that provides information that requires the 
 95.10  termination or reduction of assistance; 
 95.11     (5) the local agency verifies that a member of the 
 95.12  assistance unit is absent from the home and does not meet 
 95.13  temporary absence provisions in section 256J.11, subdivision 4; 
 95.14  or 
 95.15     (6) the local agency cannot locate a caregiver's 
 95.16  whereabouts. 
 95.17     Subd. 6.  [APPEAL RIGHTS.] An applicant, participant, or 
 95.18  former participant has the right to request a fair hearing when 
 95.19  aggrieved by an action or inaction of a local agency.  A request 
 95.20  for a fair hearing and rights pending a fair hearing are set as 
 95.21  specified in section 256J.28. 
 95.22     Subd. 7.  [CASE RECORDS AVAILABLE.] A local agency must 
 95.23  make financial case records available to the participant or 
 95.24  former participant as soon as possible but no later than the 
 95.25  fifth business day following the date of the request.  When the 
 95.26  participant or former participant asks for photocopies of 
 95.27  material from the financial case record, the local agency must 
 95.28  provide one copy of each page at no cost. 
 95.29     Subd. 8.  [RIGHT TO MANAGE AFFAIRS.] Except for protective 
 95.30  payment provisions authorized under section 256J.24, 
 95.31  participants have the right to manage their own affairs. 
 95.32     Subd. 9.  [RIGHT TO PROTECTION.] Minor caregivers have the 
 95.33  right to protection.  The local agency must refer a minor 
 95.34  caregiver to the social service unit within 30 days of the date 
 95.35  the application is approved.  The social service unit must 
 95.36  assist the minor caregiver to develop a social service plan as 
 96.1   specified in section 256J.27, subdivision 7. 
 96.2      Subd. 10.  [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 
 96.3   earnings of a caregiver while participation in full or part-time 
 96.4   employment or training shall be protected from garnishment.  
 96.5   This protection for earnings shall extend for a period of six 
 96.6   months from the date of termination from MFIP-S. 
 96.7      Sec. 32.  [256J.32] [SUPPORT FROM PARENTS OF MINOR 
 96.8   CAREGIVERS LIVING APART.] 
 96.9      Subdivision 1.  [GENERAL PROVISIONS.] A minor parent and 
 96.10  the minor's dependent child living outside of the home of the 
 96.11  adult parent must meet the criteria in section 256J.11, 
 96.12  subdivision 5, to be eligible for assistance in the MFIP-S 
 96.13  program.  A parent who lives outside the home of a minor child 
 96.14  who is an unemancipated minor caregiver of an assistance unit is 
 96.15  financially responsible for that minor caregiver unless the 
 96.16  parent is a recipient of public assistance, SSI, MSA, medical 
 96.17  assistance, general assistance, or general assistance medical 
 96.18  care, and a court order does not otherwise provide a support 
 96.19  obligation. 
 96.20     Subd. 2.  [AMOUNT OF SUPPORT PAYMENT.] The amount of 
 96.21  support to be paid by a parent, except a parent specified in 
 96.22  subdivision 4, must be determined according to paragraphs (a) to 
 96.23  (f). 
 96.24     (a) A minor caregiver must provide information required by 
 96.25  the local agency to identify the whereabouts of the minor 
 96.26  caregiver's absent parent or parents. 
 96.27     (b) A local agency must notify an absent parent of the 
 96.28  parent's legal responsibility to support a minor caregiver and 
 96.29  shall request that the absent parent provide the following: 
 96.30     (1) the amount of the parent's earned and unearned income 
 96.31  for the previous tax year; 
 96.32     (2) the amount of the parent's earned and unearned income 
 96.33  for the current month; 
 96.34     (3) the number and names of dependents who are claimed or 
 96.35  could be claimed by the parent on federal income tax forms; 
 96.36     (4) the amount of annual medical bills paid by the parent; 
 97.1      (5) the amount of annual housing costs paid by the parent; 
 97.2      (6) the costs for utilities and repairs to the home which 
 97.3   are paid by the parent; and 
 97.4      (7) the amount of annual educational costs for family 
 97.5   members paid by the parent. 
 97.6      (c) When a parent of a minor caregiver does not provide the 
 97.7   information requested under paragraph (b), the local agency must 
 97.8   refer the matter to the county attorney.  Assistance to the 
 97.9   minor caregiver must not be denied, delayed, reduced, or ended 
 97.10  because of the lack of cooperation of the minor caregiver's 
 97.11  parent. 
 97.12     (d) When the information requested under paragraph (b) is 
 97.13  received by a local agency, the local agency must compare the 
 97.14  parent's income against the scale set forth below using the 
 97.15  conditions and procedures specified in paragraph (e). 
 97.16            Size of Family            Annual Cost of Living (ACL)
 97.17                  1                          $ 7,466
 97.18                  2                           12,084
 97.19                  3                           17,380
 97.20                  4                           20,774
 97.21                  5                           23,891
 97.22  Twenty percent of the ACL for a family of five must be added for 
 97.23  each additional family member. 
 97.24     (e) The parent's income is the parent's gross earned income 
 97.25  plus unearned income, determined by the methods in section 
 97.26  256J.14.  To determine family size, each person claimed or who 
 97.27  could be claimed by a parent as a dependent on federal income 
 97.28  tax forms, exclusive of the minor caregiver, must be included.  
 97.29  A deduction from income must be allowed for the amount that 
 97.30  medical, educational, and housing costs together exceed 30 
 97.31  percent of the parent's income.  When the amount of income, 
 97.32  after the allowable deduction, exceeds the annual income level 
 97.33  in paragraph (d), a parent is liable to pay one-third of the 
 97.34  excess for the annual support of the minor caregiver.  These 
 97.35  payments must be paid monthly to the minor caregiver or to the 
 97.36  local agency on behalf of the minor caregiver. 
 98.1      (f) A local agency must notify the parents of the minor 
 98.2   caregiver that they are liable for the amount of support 
 98.3   determined by the local agency as specified in paragraph (e).  
 98.4   When the support payment is received by the minor caregiver, it 
 98.5   must be treated as unearned income of the assistance unit.  When 
 98.6   the support payment is not received, or a lesser amount is 
 98.7   received in any payment month, the local agency must refer the 
 98.8   matter to the county attorney. 
 98.9      Subd. 3.  [REVIEWS.] A local agency must review financial 
 98.10  responsibility every 12 months until minor caregivers reach the 
 98.11  age of 18 or are otherwise emancipated.  When a parent reports a 
 98.12  change in circumstances, the local agency must review the 
 98.13  required amount of payment within ten calendar days. 
 98.14     Subd. 4.  [PARENTS UNDER COURT ORDER FOR SUPPORT.] A parent 
 98.15  who is required under an existing court order issued under some 
 98.16  other authority in state or federal law to pay child support for 
 98.17  a minor caregiver is subject to the conditions of that order in 
 98.18  lieu of the requirements and contribution levels in subdivision 
 98.19  2. 
 98.20     Sec. 33.  [256J.33] [WRONGFULLY OBTAINED ASSISTANCE.] 
 98.21     Subdivision 1.  [APPLICABILITY TO OTHER LAWS.] This section 
 98.22  outlines procedures that apply to assistance that is wrongfully 
 98.23  obtained under MFIP-S.  The procedures in this section may be 
 98.24  used in combination with other established civil and criminal 
 98.25  procedures and law. 
 98.26     Subd. 2.  [RESPONSIBILITY OF LOCAL AGENCY TO ACT.] In 
 98.27  response to welfare fraud allegations received by a local 
 98.28  agency, the local agency shall take any or all of the actions in 
 98.29  paragraphs (a) to (c). 
 98.30     (a) A local agency must refer cases of suspected welfare 
 98.31  fraud to the person or unit designated by the county board for 
 98.32  investigation of welfare fraud. 
 98.33     (b) A local agency must issue notice under section 256J.31, 
 98.34  subdivision 4, to reduce or end assistance when the local agency 
 98.35  receives facts which show that an assistance unit is not 
 98.36  eligible for assistance or for the amount of assistance 
 99.1   currently being received. 
 99.2      (c) A local agency must refer cases of probable welfare 
 99.3   fraud to the county attorney. 
 99.4      Subd. 3.  [CONTINUED MFIP-S ELIGIBILITY DURING FRAUD 
 99.5   INVESTIGATION.] A local agency must issue assistance for the 
 99.6   remaining members of the assistance unit with the exception of 
 99.7   the person who was found guilty through court action or an 
 99.8   administrative disqualification hearing to have committed 
 99.9   welfare fraud in an earlier period.  If MFIP-S eligible, the 
 99.10  local agency must issue assistance to the assistance unit 
 99.11  currently under fraud investigation, subject to subdivision 2. 
 99.12     Subd. 4.  [RECOUPMENT AND RECOVERY OF WRONGFULLY OBTAINED 
 99.13  ASSISTANCE.] A local agency must recoup or attempt recovery of 
 99.14  wrongfully obtained assistance.  The amount recouped or 
 99.15  recovered must not be more than the amount wrongfully obtained 
 99.16  unless it is based on a court judgment.  A local agency may seek 
 99.17  voluntary repayment or recoup wrongfully obtained assistance 
 99.18  according to the procedures in section 256J.23, subdivision 3 or 
 99.19  4, until the full amount of wrongfully obtained assistance is 
 99.20  repaid.  If the local agency is unable to obtain voluntary 
 99.21  repayment or recoup the assistance according to section 256J.23, 
 99.22  the local agency must initiate civil court proceedings to 
 99.23  recover any unpaid balance of the wrongfully obtained assistance.
 99.24     Subd. 5.  [REPORTING REQUIREMENT.] A local agency shall 
 99.25  gather and report statistical data required by the commissioner 
 99.26  on local agency activities to prevent welfare fraud. 
 99.27     Sec. 34.  [256J.34] [RELATIONSHIP TO OTHER PROGRAMS.] 
 99.28     Subdivision 1.  [SOCIAL SERVICES.] The local agency shall 
 99.29  refer a participant for social services that are offered in the 
 99.30  county of financial responsibility according to the criteria 
 99.31  established by that local agency under Minnesota Rules, parts 
 99.32  9550.0010 to 9550.0092.  A payment issued from title XX, child 
 99.33  welfare funds, or county funds in a payment month must not 
 99.34  restrict MFIP-S eligibility or reduce the monthly assistance 
 99.35  payment for that participant. 
 99.36     Subd. 2.  [CONCURRENT ELIGIBILITY, LIMITATIONS.] A local 
100.1   agency must not count an applicant or participant as a member of 
100.2   more than one assistance unit in a given payment month, except 
100.3   as provided in paragraphs (a) to (c). 
100.4      (a) An applicant who receives assistance in a state other 
100.5   than Minnesota may be eligible in the first month of application 
100.6   at MFIP-S payment standards.  An assistance payment from another 
100.7   state must be the last payment received from that state and is 
100.8   considered unearned income when determining the assistance 
100.9   payment issued under MFIP-S.  
100.10     (b) A participant who is a member of an assistance unit in 
100.11  Minnesota is eligible to be included in a second assistance unit 
100.12  in the first full month that the participant lives with a second 
100.13  assistance unit. 
100.14     (c) An applicant whose needs are met through foster care 
100.15  under title IV-E for the first part of an application month is 
100.16  eligible to receive assistance for the remaining part of the 
100.17  month in which the applicant returns home.  Title IV-E payments 
100.18  and assistance payments must be considered prorated payments 
100.19  rather than a duplication of MFIP-S need. 
100.20     Subd. 3.  [EMERGENCY ASSISTANCE, ASSISTANCE UNIT WITH A 
100.21  MINOR CHILD.] An MFIP-S assistance unit with a minor child or a 
100.22  pregnant woman without a minor child is eligible for emergency 
100.23  assistance when the assistance unit meets the requirements in 
100.24  section 256J.37, subdivision 2. 
100.25     Subd. 4.  [MEDICAL ASSISTANCE.] Medical assistance 
100.26  eligibility for MFIP-S will be determined as described in 
100.27  chapter 256B. 
100.28     Sec. 35.  [256J.35] [COUNTY OF RESPONSIBILITY POLICIES.] 
100.29     Subdivision 1.  [COUNTY OF FINANCIAL RESPONSIBILITY.] The 
100.30  county of financial responsibility is the county in which a 
100.31  minor child lives on the date the application is signed, unless 
100.32  subdivision 4 applies.  When more than one county is financially 
100.33  responsible for the members of an assistance unit, financial 
100.34  responsibility must be assigned to a single county beginning the 
100.35  first day of the calendar month after the assistance unit 
100.36  members are required to be in a single assistance unit.  
101.1   Financial responsibility must be assigned to the county that was 
101.2   initially responsible for the assistance unit member with the 
101.3   earliest date of application.  The county in which the 
101.4   assistance unit is currently residing becomes financially 
101.5   responsible for the entire assistance unit beginning two full 
101.6   calendar months after the month in which financial 
101.7   responsibility was consolidated in one county. 
101.8      Subd. 2.  [CHANGE IN RESIDENCE.] (a) When an assistance 
101.9   unit moves from one county to another and continues to receive 
101.10  assistance, the new county of residence becomes the county of 
101.11  financial responsibility when that assistance unit has lived in 
101.12  that county in nonexcluded status for two full calendar months.  
101.13  "Nonexcluded status" means the period of residence that is not 
101.14  considered excluded time under section 256G.02, subdivision 6.  
101.15  When a minor child moves from one county to another to reside 
101.16  with a different caregiver, the caregiver in the former county 
101.17  is eligible to receive assistance for that child only through 
101.18  the last day of the month of the move.  The caregiver in the new 
101.19  county becomes eligible to receive assistance for the child the 
101.20  first day of the month following the move or the date of 
101.21  application, whichever is later. 
101.22     (b) When an applicant moves from one county to another 
101.23  while the application is pending, the county where application 
101.24  first occurred is the county of financial responsibility until 
101.25  the applicant has lived in the new county for two full calendar 
101.26  months, unless the applicant's move is covered under section 
101.27  256G.02, subdivision 6. 
101.28     Subd. 3.  [RESPONSIBILITY FOR INCORRECT ASSISTANCE 
101.29  PAYMENTS.] A county of residence, when different from the county 
101.30  of financial responsibility, will be charged by the commissioner 
101.31  for the value of incorrect assistance payments and medical 
101.32  assistance paid to or on behalf of a person who was not eligible 
101.33  to receive that amount.  Incorrect payments include payments to 
101.34  an ineligible person or family resulting from decisions, 
101.35  failures to act, miscalculations, or overdue recertification.  
101.36  However, financial responsibility does not accrue for a county 
102.1   when the recertification is overdue at the time the referral is 
102.2   received by the county of residence or when the county of 
102.3   financial responsibility does not act on the recommendation of 
102.4   the county of residence.  When federal or state law requires 
102.5   that medical assistance continue after assistance ends, this 
102.6   subdivision also governs financial responsibility for the 
102.7   extended medical assistance. 
102.8      Subd. 4.  [EXCLUDED TIME.] When an applicant or participant 
102.9   resides in an excluded time facility as described in section 
102.10  256G.02, subdivision 6, the county that is financially 
102.11  responsible for the applicant or participant is the county in 
102.12  which the applicant or participant last resided outside such a 
102.13  facility immediately before entering the facility.  When an 
102.14  applicant or participant has not resided in Minnesota for any 
102.15  time other than excluded time as defined in section 256G.02, 
102.16  subdivision 6, the county that is financially responsible for 
102.17  the applicant or participant is the county in which the 
102.18  applicant or participant resides on the date the application is 
102.19  signed. 
102.20     Sec. 36.  [256J.36] [TRANSFER FUNDING.] 
102.21     Effective July 1, 1997, all funding related to the child 
102.22  care assistance programs under this chapter and chapter 119B, 
102.23  are transferred to the commissioner of children, families, and 
102.24  learning. 
102.25     Sec. 37.  [256J.37] [EMERGENCY ASSISTANCE (EA).] 
102.26     Subdivision 1.  [EMERGENCY FINANCIAL ASSISTANCE.] County 
102.27  human service agencies shall grant emergency financial 
102.28  assistance to any needy family with a child under the age of 21 
102.29  who is or was within six months prior to application living with 
102.30  an eligible caregiver relative specified in section 256J.08, 
102.31  subdivision 11.  County agencies may, but are not required to, 
102.32  grant emergency assistance beyond the amount appropriated 
102.33  through the funding formula in subdivision 4. 
102.34     Subd. 2.  [ELIGIBILITY.] Notwithstanding other eligibility 
102.35  provisions of this chapter, any family without resources 
102.36  immediately available to meet emergency needs identified in 
103.1   subdivision 3 shall be eligible for an emergency grant under the 
103.2   following conditions: 
103.3      (1) The family is without resources immediately available 
103.4   to meet emergency needs. 
103.5      (2) Assistance is necessary to avoid destitution or provide 
103.6   emergency shelter arrangements. 
103.7      (3) The family's destitution or need for shelter or 
103.8   utilities did not arise because the child or relative caretaker 
103.9   refused without good cause to accept employment or training for 
103.10  employment. 
103.11     (4) Except for ongoing special diets, emergency assistance 
103.12  is available to a family during one 30-day period in a 
103.13  consecutive 12-month period. 
103.14     Subd. 3.  [EMERGENCY NEEDS.] Emergency needs are limited to 
103.15  the following: 
103.16     (a)  [RENT.] A county agency may deny assistance to prevent 
103.17  eviction from rented or leased shelter of an otherwise eligible 
103.18  applicant when the county agency determines that an applicant's 
103.19  anticipated income will not cover continued payment for shelter, 
103.20  subject to conditions in clauses (1) to (3): 
103.21     (1) a county agency must not deny assistance when an 
103.22  applicant can document that the applicant is unable to locate 
103.23  habitable shelter, unless the local agency can document that one 
103.24  or more habitable shelters are available in the community that 
103.25  will result in at least a 20 percent reduction in monthly 
103.26  expense for shelter and that this shelter will be cost-effective 
103.27  for the applicant; 
103.28     (2) when no alternative shelter can be identified by either 
103.29  the applicant or the county agency, the county agency shall not 
103.30  deny assistance because anticipated income will not cover rental 
103.31  obligation; and 
103.32     (3) when cost-effective alternative shelter is identified, 
103.33  the county agency shall issue assistance for moving expenses as 
103.34  provided in paragraph (d). 
103.35     (b)  [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 
103.36  agency shall issue assistance for mortgage or contract for deed 
104.1   arrearages on behalf of an otherwise eligible applicant 
104.2   according to clauses (1) to (5): 
104.3      (1) assistance for arrearages must be issued only when a 
104.4   home is owned, occupied, and maintained by the applicant; 
104.5      (2) assistance for arrearages must be issued only when no 
104.6   subsequent foreclosure action is expected within the 12 months 
104.7   following the issuance; 
104.8      (3) assistance for arrearages must be issued only when an 
104.9   applicant has been refused refinancing through a bank or other 
104.10  lending institution and the amount payable, when combined with 
104.11  any payments made by the applicant, will be accepted by the 
104.12  creditor as full payment of the arrearage; 
104.13     (4) costs paid by a family which are counted toward the 
104.14  payment requirements in clause (5) are principle and interest 
104.15  payments on mortgages or contracts for deed, balloon payments, 
104.16  homeowner's insurance payments, manufactured home lot rental 
104.17  payments, and tax or special assessment payments related to the 
104.18  homestead.  Costs which are not counted include closing costs 
104.19  related to the sale or purchase of real property; 
104.20     (5) which are outstanding at the time of foreclosure, an 
104.21  applicant must have paid at least 40 percent of the family's 
104.22  gross income toward these costs in the month of application and 
104.23  the 11-month period immediately preceding the month of 
104.24  application; and 
104.25     (6) when an applicant is eligible under clause (5), a local 
104.26  agency shall issue assistance up to a maximum of four times the 
104.27  MFIP-S transitional standard for a comparable assistance unit. 
104.28     (c)  [DAMAGE DEPOSITS.] A county agency shall issue 
104.29  assistance for damage deposits when necessary to alleviate the 
104.30  emergency. 
104.31     (d)  [MOVING EXPENSES.] A county agency shall issue 
104.32  assistance for expenses incurred when a family must move to a 
104.33  different shelter according to clauses (1) to (4): 
104.34     (1) moving expenses include the cost to transport personal 
104.35  property belonging to a family, the cost for utility connection, 
104.36  and the cost for securing different shelter; 
105.1      (2) moving expenses must be paid only when the county 
105.2   agency determines that a move is cost-effective; 
105.3      (3) moving expenses must be paid at the request of an 
105.4   applicant, but only when destitution or threatened destitution 
105.5   exists; and 
105.6      (4) moving expenses must be paid when a county agency 
105.7   denies assistance to prevent an eviction because the county 
105.8   agency has determined that an applicant's anticipated income 
105.9   will not cover continued shelter obligation in paragraph (a). 
105.10     (e)  [HOME REPAIRS.] A county agency shall pay for repairs 
105.11  to the roof, foundation, wiring, heating system, chimney, and 
105.12  water and sewer system of a home which owned and lived in by an 
105.13  applicant and repairs are conditioned by clauses (1) and (2): 
105.14     (1) the applicant shall document, and the local agency 
105.15  shall verify the need for and method of repair; and 
105.16     (2) the payment must be cost-effective in relation to the 
105.17  overall condition of the home and in relation to the cost and 
105.18  availability of alternative housing. 
105.19     (f)  [UTILITY COSTS.] Assistance for utility costs must be 
105.20  made when an otherwise eligible family has had a termination or 
105.21  is threatened with a termination of municipal water and sewer 
105.22  service, electric, gas or heating fuel service, or lacks wood 
105.23  when that is the heating source, subject to the conditions in 
105.24  clauses (1) and (2): 
105.25     (1) a county agency must not issue assistance unless the 
105.26  county agency receives confirmation from the utility provider 
105.27  that assistance combined with payment by the applicant will 
105.28  continue or restore the utility; 
105.29     (2) a county agency shall not issue assistance for utility 
105.30  costs unless a family paid at least eight percent of the 
105.31  family's gross income toward utility costs due during the 
105.32  utility budget period; and 
105.33     (3) clauses (1) and (2) must not be construed to prevent 
105.34  the issuance of assistance when a local agency must take 
105.35  immediate and temporary action necessary to protect the life or 
105.36  health of a child. 
106.1      (g)  [EMPLOYMENT-RELATED EMERGENCY NEEDS AS DETERMINED BY 
106.2   THE COUNTY AGENCY.] The county agency may authorize assistance 
106.3   for employment related emergency needs. 
106.4      (h)  [DISCRETIONARY ITEMS, INCLUDING SPECIAL DIETS.] The 
106.5   need for special diets or dietary items must be prescribed by a 
106.6   licensed physician.  Costs for special diets shall be determined 
106.7   as percentages of the allotment for a one-person household under 
106.8   the thrifty food plan.  The types of diets and the percentages 
106.9   of the thrifty food plan that are covered are as follows: 
106.10     (1) high protein diet, at least 80 grams daily, 25 percent 
106.11  of thrifty food plan; 
106.12     (2) controlled protein diet, 40 to 60 grams and requires 
106.13  special products, 100 percent of thrifty food plan; 
106.14     (3) controlled protein diet, less than 40 grams and 
106.15  requires special products, 125 percent of thrifty food plan; 
106.16     (4) low cholesterol diet, 25 percent of thrifty food plan; 
106.17     (5) high residue diet, 20 percent of thrifty food plan; 
106.18     (6) pregnancy and lactation diet, 35 percent of thrifty 
106.19  food plan; 
106.20     (7) gluten-free diet, 25 percent of thrifty food plan; 
106.21     (8) lactose-free diet, 25 percent of thrifty food plan; 
106.22     (9) antidumping diet, 15 percent of thrifty food plan; 
106.23     (10) hypoglycemic diet, 15 percent of thrifty food plan; or 
106.24     (11) ketogenic diet, 25 percent of thrifty food plan. 
106.25     (i)  [VENDOR PAYMENTS FOR SHELTER OR UTILITY COSTS.] An 
106.26  ongoing MFIP-S grant may, at county board option, be in the form 
106.27  of vendor payments if application for emergency assistance is 
106.28  for shelter or utility costs. 
106.29     Subd. 4.  [FUNDING FORMULA; EMERGENCY NEEDS GRANT.] (a) The 
106.30  commissioner of human services shall distribute emergency 
106.31  assistance needs grants to counties for the emergency needs 
106.32  specified in subdivision 3. 
106.33     (b) Each county shall have allocated from the county 
106.34  emergency needs grant appropriation an amount that bears the 
106.35  same ratio to the total emergency needs grant as the county's 
106.36  fiscal year 1996 average monthly AFDC and MFIP case count bears 
107.1   to the 1996 average monthly case count for all counties. 
107.2      (c) The commissioner of human services shall review county 
107.3   expenditures of emergency needs grant money at the end of the 
107.4   fiscal year, and shall reallocate unspent money as follows: 
107.5      (1) when the statewide allocation is underspent, counties 
107.6   that overspent their allocation will be reallocated money first, 
107.7   then all other counties will be reallocated the remaining money 
107.8   according to the county's proportion of the statewide caseload; 
107.9   and 
107.10     (2) when the statewide allocation is overspent, any 
107.11  remaining money from underspent counties will be reallocated to 
107.12  overspent counties. 
107.13     The reallocation shall be in proportion to the county's 
107.14  overexpenditures for the year, compared to overexpenditures for 
107.15  all counties with overexpenditures. 
107.16     Counties which have overspent their allocation at the end 
107.17  of the state fiscal year will be required to reimburse the state 
107.18  for the amount of their overexpenditure. 
107.19     Sec. 38.  [256K.01] [WORK FIRST PROGRAM.] 
107.20     Subdivision 1.  [CITATION.] Sections 256K.01 to 256K.09 may 
107.21  be cited as the work first program. 
107.22     Subd. 2.  [DEFINITIONS.] As used in sections 256K.01 to 
107.23  256K.09, the following words have the meanings given them. 
107.24     (a) "Applicant" means an individual who has submitted a 
107.25  request for assistance and has never received an MFIP-S or 
107.26  family general assistance grant through the MAXIS computer 
107.27  system as a caretaker, or an applicant whose MFIP-S or family 
107.28  general assistance application was denied or benefits were 
107.29  terminated due to noncompliance with work first requirements. 
107.30     (b) "Application date" means the date any Minnesota county 
107.31  agency receives a signed and dated combined application form 
107.32  Part I. 
107.33     (c) "CAF" means a combined application form on which people 
107.34  apply for multiple assistance programs, including:  cash 
107.35  assistance, refugee cash assistance, Minnesota supplemental aid, 
107.36  food stamps, medical assistance, general assistance medical 
108.1   care, emergency assistance, emergency medical assistance, and 
108.2   emergency general assistance medical care. 
108.3      (d) "Caregiver" means a parent or eligible adult, including 
108.4   a pregnant woman, who is part of the assistance unit that has 
108.5   applied for or is receiving an MFIP-S or family general 
108.6   assistance grant.  In a two-parent family, both parents are 
108.7   caregivers. 
108.8      (e) "Child support" means a voluntary or court-ordered 
108.9   payment by absent parents in an assistance unit. 
108.10     (f) "Commissioner" means the commissioner of human services.
108.11     (g) "Department" means the department of human services. 
108.12     (h) "Employability development plan" or "EDP" means a plan 
108.13  developed by the applicant, with advice from the employment 
108.14  advisor, for the purposes of identifying an employment goal, 
108.15  improving work skills through certification or education, 
108.16  training or skills recertification, and which addresses barriers 
108.17  to employment. 
108.18     (i) "EDP status report form" means a program form on which 
108.19  deferred participants indicate what has been achieved in the 
108.20  participant's employability development plan and the types of 
108.21  problems encountered. 
108.22     (j) "Employment advisor" means a program staff member who 
108.23  is qualified to assist the participant to develop a job search 
108.24  or employability development plan, match the participant with 
108.25  existing job openings, refer the participant to employers, and 
108.26  has an extensive knowledge of employers in the area. 
108.27     (k) "Financial specialist" means a program staff member who 
108.28  is trained to explain the benefits offered under the program, 
108.29  determine eligibility for different assistance programs, and 
108.30  broker other resources from employers and the community. 
108.31     (l) "Job network" means individuals that a person may 
108.32  contact to learn more about particular companies, inquire about 
108.33  job leads, or discuss occupational interests and expertise. 
108.34     (m) "Job search allowance" means the amount of financial 
108.35  assistance needed to support job search. 
108.36     (n) "Job search plan" or "JSP" means the specific plan 
109.1   developed by the applicant, with advice from the employment 
109.2   advisor, to secure a job as soon as possible, and focus the 
109.3   scope of the job search process and other activities.  
109.4      (o) "JSP status report form" means a program form on which 
109.5   participants indicate the number of submitted job applications, 
109.6   job interviews held, jobs offered, other outcomes achieved, 
109.7   problems encountered, and the total number of hours spent on job 
109.8   search per week. 
109.9      (p) "Participant" means a recipient who is required to 
109.10  participate in the work first program. 
109.11     (q) "Program" means the work first program. 
109.12     (r) "Provider" means an employment and training agency 
109.13  certified by the commissioner of economic security under section 
109.14  268.871, subdivision 1. 
109.15     (s) "Self-employment" means employment where people work 
109.16  for themselves rather than an employer, are responsible for 
109.17  their own work schedule, and do not have taxes or FICA withheld 
109.18  by an employer. 
109.19     (t) "Self-sufficiency agreement" means the agreement 
109.20  between the county or its representative and the applicant that 
109.21  describes the activities that the applicant must conduct and the 
109.22  necessary services and aid to be furnished by the county to 
109.23  enable the individual to meet the purpose of either the job 
109.24  search plan or employability development plan. 
109.25     (u) "Subsidized job" means a job that is partly reimbursed 
109.26  by the provider for cost of wages for participants in the 
109.27  program. 
109.28     Subd. 3.  [ESTABLISHING WORK FIRST PROGRAM.] The 
109.29  commissioners of human services and economic security may 
109.30  develop and establish pilot projects which require applicants 
109.31  for aid under MFIP-S under chapter 256J, or family general 
109.32  assistance program (FGA) under section 256D.05, subdivision 1, 
109.33  clause (15), to meet the requirements of the work first 
109.34  program.  The purpose of the program is to: 
109.35     (1) ensure that the participant is working as early as 
109.36  possible; 
110.1      (2) promote greater opportunity for economic self-support, 
110.2   participation, and mobility in the work force; and 
110.3      (3) minimize the risk for long-term welfare dependency. 
110.4      Subd. 4.  [PROGRAM ADMINISTRATION.] The program must be 
110.5   administered in a way that, in addition to the county agency, 
110.6   other sectors in the community such as employers from the public 
110.7   and private sectors, not-for-profit organizations, educational 
110.8   and social service agencies, labor unions, and neighborhood 
110.9   associations are involved. 
110.10     Subd. 5.  [PROGRAM DESIGN.] The program shall meet the 
110.11  following principles: 
110.12     (1) work is the primary means of economic support; 
110.13     (2) the individual's potential is reviewed during the 
110.14  application process to determine how to approach the job market 
110.15  aggressively; 
110.16     (3) public aid such as cash and medical assistance, child 
110.17  care, child support assurance, and other cash benefits are used 
110.18  to support intensive job search and immediate work; and 
110.19     (4) maximum use is made of tax credits to supplement income.
110.20     Subd. 6.  [DUTIES OF COMMISSIONER.] In addition to any 
110.21  other duties imposed by law, the commissioner shall: 
110.22     (1) establish the program according to sections 256K.01 to 
110.23  256K.09 and allocate money as appropriate to pilot counties 
110.24  participating in the program; 
110.25     (2) provide systems development and staff training; 
110.26     (3) accept and supervise the disbursement of any funds that 
110.27  may be provided from other sources for use in the demonstration 
110.28  program; and 
110.29     (4) direct a study to safeguard the interests of children. 
110.30     Subd. 7.  [DUTIES OF COUNTY AGENCY.] The county agency 
110.31  shall: 
110.32     (1) collaborate with the commissioners of human services 
110.33  and economic security and other agencies to develop, implement, 
110.34  and evaluate the demonstration of the work first program; 
110.35     (2) operate the work first program in partnership with 
110.36  private and public employers, local industry councils, labor 
111.1   unions, and employment, educational, and social service 
111.2   agencies, according to subdivision 4; 
111.3      (3) ensure that program components such as client 
111.4   orientation, immediate job search, job development, creation of 
111.5   temporary public service jobs, job placements, and postplacement 
111.6   follow-up are implemented according to the work first program; 
111.7   and 
111.8      (4) for job assignments under section 256K.05, provide 
111.9   written notification to and obtain the written concurrence of 
111.10  the appropriate exclusive bargaining representatives with 
111.11  respect to job duties covered under collective bargaining 
111.12  agreements and ensure that no work assignment under this section 
111.13  results in: 
111.14     (i) termination, layoff, or reduction of the work hours of 
111.15  an employee for the purpose of hiring an individual under this 
111.16  section; 
111.17     (ii) the hiring of an individual if any other person is on 
111.18  layoff from the same or a substantially equivalent job; 
111.19     (iii) any infringement of the promotional opportunities of 
111.20  any currently employed individual; 
111.21     (iv) the impairment of existing contract for services of 
111.22  collective bargaining agreements; or 
111.23     (v) a participant filling an established unfilled position 
111.24  vacancy, except for on-the-job training under this section.  
111.25     If there is a dispute between an exclusive bargaining 
111.26  representative and a county or public work employer over whether 
111.27  or not job duties are covered under a collective bargaining 
111.28  agreement, the exclusive bargaining representative, the county, 
111.29  or the public works employer may petition the bureau of 
111.30  mediation services, who shall determine if the job duties are 
111.31  covered by a collective bargaining agreement. 
111.32     Subd. 8.  [DUTIES OF PARTICIPANT.] To be eligible for an 
111.33  MFIP-S or family general assistance benefit, a participant shall 
111.34  cooperate with the county agency, the provider, and the 
111.35  participant's employer in all aspects of the program. 
111.36     Sec. 39.  [256K.02] [PROGRAM PARTICIPANTS; PROGRAM 
112.1   EXPECTATIONS.] 
112.2      All applicants selected for participation are expected to 
112.3   meet the requirements under the work first program.  Payments 
112.4   for rent and utilities up to the MFIP-S or family general 
112.5   assistance program benefits to which the assistance unit is 
112.6   entitled will be vendor paid for as many months as the applicant 
112.7   is eligible or six months, whichever comes first.  The residual 
112.8   amount after vendor payment, if any, will be paid to the MFIP-S 
112.9   or family general assistance recipient, unless it is used as a 
112.10  wage subsidy under section 256K.09, subdivision 2. 
112.11     Sec. 40.  [256K.03] [PROGRAM REQUIREMENTS.] 
112.12     Subdivision 1.  [NOTIFICATION OF PROGRAM.] Except for the 
112.13  provisions in this section, the provisions for the MFIP-S and 
112.14  family general assistance application process shall be 
112.15  followed.  Within two days after receipt of a completed combined 
112.16  application form, the county agency must refer to the provider 
112.17  the applicant who meets the conditions under section 256K.02, 
112.18  and notify the applicant in writing of the program including the 
112.19  following provisions: 
112.20     (1) notification that, as part of the application process, 
112.21  applicants are required to attend orientation, to be followed 
112.22  immediately by a job search; 
112.23     (2) the program provider, the date, time, and location of 
112.24  the scheduled program orientation; 
112.25     (3) the procedures for qualifying for and receiving 
112.26  benefits under the program; 
112.27     (4) the immediate availability of supportive services, 
112.28  including, but not limited to, child care, transportation, 
112.29  medical assistance, and other work-related aid; and 
112.30     (5) the rights, responsibilities, and obligations of 
112.31  participants in the program, including, but not limited to, the 
112.32  grounds for exemptions and deferrals, the consequences for 
112.33  refusing or failing to participate fully, and the appeal process.
112.34     Subd. 2.  [PROGRAM ORIENTATION.] The county must give a 
112.35  face-to-face orientation regarding the program to the applicant 
112.36  within five days after the date of application.  The orientation 
113.1   must be designed to inform the applicant of: 
113.2      (1) the importance of locating and obtaining a job as soon 
113.3   as possible; 
113.4      (2) benefits to be provided to support work; 
113.5      (3) the manner by which benefits shall be paid; 
113.6      (4) how other supportive services such as medical 
113.7   assistance, child care, transportation, and other work-related 
113.8   aid shall be available to support job search and work; 
113.9      (5) the consequences for failure without good cause to 
113.10  comply with program requirements; and 
113.11     (6) the appeal process. 
113.12     Subd. 3.  [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 
113.13  SPECIALIST.] At the end of orientation, the provider must assign 
113.14  an employment advisor and a financial specialist to the 
113.15  applicant.  With advice from the employment advisor, the 
113.16  applicant must develop a job search plan based on existing job 
113.17  markets, prior employment, work experience, and transferable 
113.18  work skills, unless exempt under subdivision 5.  A job search 
113.19  must be planned and conducted for a period of up to eight 
113.20  consecutive weeks from the date of application and for at least 
113.21  32 hours per week.  The types of and target number of job 
113.22  openings to be pursued per week must be written in the job 
113.23  search plan.  The following activities may be included in the 
113.24  job search plan: 
113.25     (1) motivational counseling; 
113.26     (2) job networking or training on how to locate job 
113.27  openings; 
113.28     (3) development of a personal resume; and 
113.29     (4) information on how to conduct job interviews and 
113.30  establish a personal job network. 
113.31     Following the development of the job search plan or the 
113.32  employability development plan under subdivision 8, the 
113.33  financial specialist must interview the applicant to determine 
113.34  eligibility for and the extent of benefits under sections 
113.35  256K.06 and 256K.07 to support the job search or employability 
113.36  development plan.  The provider must attach to the appropriate 
114.1   plan the summary of the necessary enabling services and benefits 
114.2   to be furnished by the provider.  The provider or its 
114.3   representative and the applicant must sign the plan, with its 
114.4   attachment, to indicate a self-sufficiency agreement between the 
114.5   provider and the participant. 
114.6      Subd. 4.  [IMMEDIATE JOB SEARCH.] An applicant must be 
114.7   required to begin job search within seven days after the date of 
114.8   application for at least 32 hours per week for up to eight 
114.9   weeks, unless exempt under subdivision 5 or deferred under 
114.10  subdivision 8.  For an applicant who is working at least 20 
114.11  hours per week, job search shall consist of 12 hours per week 
114.12  for up to eight weeks.  Within the first five days of job 
114.13  search, the applicant is required to initiate informational 
114.14  contacts with prospective employers, generate additional job 
114.15  leads from the job network, review references and experiences 
114.16  from previous employment, and carry out the other activities 
114.17  under the job search plan developed under subdivision 3. 
114.18     Subd. 5.  [EXEMPTION CATEGORIES.] The applicant will be 
114.19  exempt from the job search requirements and development of a job 
114.20  search plan and an employability development plan under 
114.21  subdivisions 3, 4, and 8 if the applicant belongs to any of the 
114.22  following groups: 
114.23     (1) caregivers under age 20 who have not completed a high 
114.24  school education and are attending high school on a full-time 
114.25  basis; 
114.26     (2) individuals who are age 60 or older; 
114.27     (3) individuals who are suffering from a professionally 
114.28  certified permanent or temporary illness, injury, or incapacity 
114.29  which is expected to continue for more than 30 days and which 
114.30  prevents the person from obtaining or retaining employment; 
114.31     (4) caregivers whose presence in the home is needed because 
114.32  of illness or incapacity of another member in the household; 
114.33     (5) women who are pregnant, if it has been medically 
114.34  verified that the child is expected to be born within the next 
114.35  six months; 
114.36     (6) caregivers or other caregiver relatives of a child 
115.1   under the age of three who personally provide full-time care for 
115.2   the child; 
115.3      (7) individuals employed at least 30 hours per week; 
115.4      (8) individuals for whom participation would require a 
115.5   round trip commuting time by available transportation of more 
115.6   than two hours, excluding transporting of children for child 
115.7   care; 
115.8      (9) individuals for whom lack of proficiency in English is 
115.9   a barrier to employment, provided such individuals are 
115.10  participating in an intensive program which lasts no longer than 
115.11  six months and is designed to remedy their language deficiency; 
115.12     (10) individuals who, because of advanced age or lack of 
115.13  ability, are incapable of gaining proficiency in English, as 
115.14  determined by the county social worker, shall continue to be 
115.15  exempt under this subdivision and are not subject to the 
115.16  requirement that they be participating in a language program; 
115.17     (11) individuals under such duress that they are incapable 
115.18  of participating in the program, as determined by the county 
115.19  social worker; or 
115.20     (12) individuals in need of refresher courses for purposes 
115.21  of obtaining professional certification or licensure. 
115.22     Subd. 6.  [COUNTY DUTIES.] The county must act on the 
115.23  application within 30 days of the application date.  If the 
115.24  applicant is not eligible, the application will be denied and 
115.25  the county must notify the applicant of the denial in writing.  
115.26  An applicant whose application has been denied may be allowed to 
115.27  complete the job search plan; however, supportive services will 
115.28  not be provided. 
115.29     Subd. 7.  [JOB SEARCH PLAN STATUS REPORT.] The applicant or 
115.30  participant must submit a completed job search plan status 
115.31  report form to the employment advisor every two weeks during the 
115.32  job search process, with the first completed form due 21 days 
115.33  after the date of application. 
115.34     Subd. 8.  [EMPLOYABILITY DEVELOPMENT PLAN.] At the 
115.35  discretion and approval of the employment advisor, the applicant 
115.36  may be deferred from the requirement to conduct at least 32 
116.1   hours of job search per week for up to eight consecutive weeks, 
116.2   if during the development of the job search plan, the applicant 
116.3   is determined to: 
116.4      (1) not have worked within the past 12 months and not have 
116.5   a high school or a general equivalency diploma provided the 
116.6   applicant agrees to develop and carry out an employability 
116.7   development plan instead of job search, and concurrently work 
116.8   for at least 16 hours per week in a temporary public service 
116.9   job.  The employability development plan must include the 
116.10  employment goals and specific outcomes the participant must 
116.11  achieve; 
116.12     (2) be within six months of completing any post-secondary 
116.13  training program, provided that the applicant agrees to develop 
116.14  and carry out an employability development plan instead of a job 
116.15  search, and concurrently work for a minimum number of hours per 
116.16  week in a temporary public service job.  The employability 
116.17  development plan must include the employment goal and specific 
116.18  outcomes that the participant must achieve.  The applicant that 
116.19  is deferred under this subdivision may choose to work in a job 
116.20  other than a public service job for a minimum number of hours 
116.21  per week rather than in a temporary public service job.  For 
116.22  individuals who are participating in an educational program 
116.23  under this clause, and who are attending school full time as 
116.24  determined by the institution, there is no work requirement.  
116.25  For individuals participating in an educational program on a 
116.26  part-time basis as determined by the institution, the minimum 
116.27  number of hours that a participant must work shall be decreased 
116.28  as the participant increases the number of credit hours taken, 
116.29  except that the participant shall not be required to work more 
116.30  than eight hours per week. 
116.31     During vacation periods of one month or more, the 16-hour 
116.32  per week minimum work requirement shall apply.  The applicant 
116.33  may be deferred for up to six months.  At the end of the 
116.34  deferment period, the participant must develop a job search plan 
116.35  and conduct at least 32 hours of job search per week for up to 
116.36  eight consecutive weeks, and submit reports as required under 
117.1   subdivisions 3 and 4; or 
117.2      (3) be in treatment for chemical dependency, be a victim of 
117.3   domestic abuse, or be homeless, provided that the applicant 
117.4   agrees to develop an employability development plan instead of a 
117.5   job search plan, and immediately follow through with the 
117.6   activities in the employability development plan.  The 
117.7   employability development plan must include specific outcomes 
117.8   that the applicant must achieve for the duration of the 
117.9   employability development plan and activities which are needed 
117.10  to address the issues identified.  Under this clause, the 
117.11  applicant may be deferred for up to eight weeks. 
117.12     Subd. 9.  [EDP STATUS REPORT.] The participant who is 
117.13  deferred from job search under subdivision 8 must submit a 
117.14  completed employability development plan status report form to 
117.15  the employment advisor every 14 days as long as the participant 
117.16  continues to be deferred, with the first completed form due 21 
117.17  days after the date of application. 
117.18     Subd. 10.  [JOB OFFER.] The participant must not refuse any 
117.19  job offer, provided that the job is within the participant's 
117.20  physical and mental abilities, pays hourly gross wages of not 
117.21  less than the applicable state or federal minimum wage, and 
117.22  meets health and safety standards set by federal, state, and 
117.23  local agencies.  If a job is offered, the participant must 
117.24  inform the provider immediately to redetermine eligibility for 
117.25  and extent of benefits and services to support work.  To enhance 
117.26  job retention, the provider may provide services such as 
117.27  motivational counseling or on-site problem solving for up to six 
117.28  months.  The participant who has completed at least six months 
117.29  of work in a nonsubsidized job shall be encouraged to 
117.30  participate in a training program that would improve the 
117.31  participant's ability to obtain a job that pays a higher wage. 
117.32     Subd. 11.  [DUTY TO REPORT.] The participant must 
117.33  immediately inform the provider regarding any changes related to 
117.34  the participant's employment status. 
117.35     Subd. 12.  [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 
117.36  SERVICE JOB.] (a) If after the completion of the maximum eight 
118.1   weeks of job search the participant has failed to secure a 
118.2   nonsubsidized or a subsidized job for at least 32 hours per 
118.3   week, or does not earn a net income from self-employment that is 
118.4   equal to at least the MFIP-S or family general assistance 
118.5   monthly grant for the household size, whichever is applicable, 
118.6   the participant is required to work in a temporary public 
118.7   service job for up to 67 working days for (1) at least 32 hours 
118.8   per week, or (2) a period equivalent to the result of dividing 
118.9   the MFIP-S or family general assistance grant amount which the 
118.10  participant would otherwise receive, whichever is applicable, by 
118.11  the federal hourly minimum wage, or applicable hourly state 
118.12  minimum wage, or the hourly rate of pay for individuals employed 
118.13  in the same occupation at the site, whichever is highest.  If 
118.14  the result is more than 128 hours per month, the participant's 
118.15  requirement to work in a temporary public service job shall not 
118.16  be more than 32 hours per week. 
118.17     (b) Within seven days from the date of application, the 
118.18  participant that is deferred under subdivision 8, clause (1) or 
118.19  (2), and is participating in an educational program on a 
118.20  part-time basis must work in a temporary public service job as 
118.21  required under subdivision 8, clause (2). 
118.22     (c) The provider shall strive to match the profile of the 
118.23  participant with the needs of the employers that are 
118.24  participating in a temporary jobs program under section 256K.05. 
118.25     Sec. 41.  [256K.04] [JOB DEVELOPMENT AND SUBSIDY.] 
118.26     Subdivision 1.  [JOB INVENTORY.] The provider must develop 
118.27  an inventory of job openings including full-time, part-time, 
118.28  permanent, temporary or seasonal, and training positions in 
118.29  partnership with private and public employers, local industry 
118.30  councils, and employment agencies.  To the extent possible, the 
118.31  inventory must include specific information regarding job 
118.32  openings, must be updated on a weekly basis, and must be 
118.33  available to all participants on a daily basis. 
118.34     Subd. 2.  [JOB SUBSIDY.] The county may use all or part of 
118.35  the MFIP-S or family general assistance benefit as a subsidy to 
118.36  employers for the purpose of providing work experience or 
119.1   training to the participant who has completed the job search 
119.2   plan, provided that: 
119.3      (1) the job to be subsidized is permanent and full time, 
119.4   and pays an hourly rate of at least $6 per hour; 
119.5      (2) the employer agrees to retain the participant after 
119.6   satisfactory completion of the work experience or training 
119.7   period; and 
119.8      (3) the participant has first tried to secure a 
119.9   nonsubsidized job by following the job search plan.  
119.10     The subsidy may be available for up to six months. 
119.11     Sec. 42.  [256K.05] [TEMPORARY JOBS PROGRAM.] 
119.12     Subdivision 1.  [PROGRAM ESTABLISHED.] The provider must 
119.13  establish and operate a program to provide temporary jobs to 
119.14  participants who, after eight weeks of job search, are not hired 
119.15  into a nonsubsidized or a subsidized job, or are deferred under 
119.16  section 256K.03, subdivision 8.  The temporary jobs to be 
119.17  created under this section must be public service jobs that 
119.18  serve a useful public service such as:  health, social service, 
119.19  environmental protection, education, urban and rural development 
119.20  and redevelopment, welfare, recreation, public facilities, 
119.21  public safety, community service, services to the aged or 
119.22  disabled citizens, and child care. 
119.23     Subd. 2.  [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 
119.24  JOBS.] The provider must assign the participant who (1) is 
119.25  within completion of the required eight weeks of job search and 
119.26  has failed to secure a nonsubsidized or a subsidized job for at 
119.27  least 32 hours per week, or (2) does not earn a net income from 
119.28  self-employment that is equal to at least the MFIP-S or family 
119.29  general assistance monthly grant for the household size, 
119.30  whichever is applicable, to a temporary public service job.  The 
119.31  assignment must be made seven days before the end of the job 
119.32  search and be based on section 256K.03, subdivision 12.  The 
119.33  participant that is deferred under section 256K.03, subdivision 
119.34  8, will be assigned by the provider to a temporary public 
119.35  service job within seven days after the application. 
119.36     Subd. 3.  [PARTICIPANT'S STATUS.] The participant who is 
120.1   working in a temporary public service job under this section is 
120.2   not considered an employee for the purposes of unemployment 
120.3   insurance compensation, retirement, or civil service laws, and 
120.4   shall not perform work ordinarily performed by a public employee.
120.5      Subd. 4.  [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 
120.6   discretion of the provider, the participant who is working in a 
120.7   temporary public service job under section 256K.03, subdivision 
120.8   13, may be required to continue to look for a job for up to 
120.9   eight hours per week in addition to working, or may be required 
120.10  to look for a job in lieu of work in the temporary public 
120.11  service job. 
120.12     Subd. 5.  [EXCUSED ABSENCES.] The participant who is 
120.13  working in a temporary public service job may be allowed excused 
120.14  absences from the assigned temporary job site up to eight hours 
120.15  per month.  For purposes of this subdivision, "excused absence" 
120.16  means absence due to temporary illness or injury of the 
120.17  caregiver or a member of the caregiver's family, the 
120.18  unavailability of licensed child care or unavailability of 
120.19  transportation needed to go to and from the work site, a job 
120.20  interview, or a nonmedical emergency.  For purposes of this 
120.21  subdivision, "emergency" means a sudden, unexpected occurrence 
120.22  or situation of a serious or urgent nature that requires action. 
120.23     Subd. 6.  [MOVE TO A DIFFERENT COUNTY.] If the applicant or 
120.24  recipient who is required to participate in the work first 
120.25  program moves to a different county in Minnesota, the benefits 
120.26  and enabling services agreed upon in the self-sufficiency 
120.27  agreement shall be provided by the pilot county where the 
120.28  applicant or recipient originated, provided the move was part of 
120.29  the job search or employability development plan.  If the 
120.30  applicant or recipient is moving to a different county for 
120.31  failure to comply with the requirements of the work first 
120.32  program, the applicant or recipient will not be eligible for 
120.33  MFIP-S or family general assistance in Minnesota for at least 
120.34  six months from the date of the move. 
120.35     Sec. 43.  [256K.06] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 
120.36  RENT AND UTILITIES VENDOR PAYMENT.] 
121.1      Payments for rent and utilities up to the amount of MFIP-S 
121.2   or family general assistance benefits to which the assistance 
121.3   unit is entitled shall be provided in the form of vendor 
121.4   payments for as many months as the applicant is eligible or six 
121.5   months, whichever comes first.  The residual amount after vendor 
121.6   payment, if any, will be paid to the MFIP-S or family general 
121.7   assistance recipient, unless it is used as a wage subsidy under 
121.8   section 256K.09, subdivision 2.  This provision shall apply to 
121.9   all applicants including those meeting the exemption categories 
121.10  under section 256K.03, subdivision 5, or deferral categories 
121.11  under section 256K.03, subdivision 8.  To the extent needed, a 
121.12  job search allowance shall be provided for up to eight weeks to 
121.13  cover expenses related to the job search.  Before the job search 
121.14  allowance is issued, it must be approved by the employment 
121.15  advisor and financial specialist, and clearly described in the 
121.16  job search plan. 
121.17     Sec. 44.  [256K.07] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 
121.18  ASSISTANCE, AND CHILD CARE.] 
121.19     The participant shall be treated as an MFIP-S or family 
121.20  general assistance recipient for food stamps, medical 
121.21  assistance, and child care eligibility purposes.  The 
121.22  participant who leaves the program as a result of increased 
121.23  earnings from employment shall be eligible for transitional 
121.24  medical assistance and child care without regard to MFIP-S 
121.25  receipt in three of the six months preceding ineligibility. 
121.26     Sec. 45.  [256K.08] [SANCTIONS AND APPEAL PROCESS.] 
121.27     Subdivision 1.  [GOOD CAUSE.] (a) For purposes of this 
121.28  subdivision, "good cause" means absence due to temporary illness 
121.29  or injury of the participant or a member of the participant's 
121.30  family, the unavailability of licensed child care or 
121.31  unavailability of transportation needed to attend orientation or 
121.32  conduct job search, or a nonmedical emergency as defined under 
121.33  section 256K.05, subdivision 5. 
121.34     (b) The applicant who is required, but fails, without good 
121.35  cause, to participate in orientation, complete the job search 
121.36  plan or employability development plan, and comply with the job 
122.1   search requirements under section 256K.03, prior to being 
122.2   eligible for MFIP-S or family general assistance shall be denied 
122.3   MFIP-S or family general assistance benefits.  The applicant 
122.4   will not be eligible for MFIP-S or family general assistance 
122.5   benefits in Minnesota for at least six months. 
122.6      (c) If, after receiving a written warning from the county, 
122.7   the participant fails, without good cause, to conduct at least 
122.8   32 hours of job search per week in any given two-week period, 
122.9   the participant will be immediately required to work for at 
122.10  least 16 hours per week in a temporary public service job.  The 
122.11  required 32 hours per week of job search will be reduced to 16 
122.12  hours. 
122.13     (d) If the participant who is deferred under section 
122.14  256K.03, subdivision 8, fails to comply with the activities 
122.15  described in the employability development plan, the participant 
122.16  will lose the deferment status, provided that the participant 
122.17  has received at least two written warnings from the provider. 
122.18     (e) If the participant refuses to work in a temporary 
122.19  public service job, or is terminated from a temporary public 
122.20  service job for failure to work, benefits to the assistance unit 
122.21  shall be terminated and the participant shall not be eligible 
122.22  for aid under the MFIP-S or family general assistance program 
122.23  for at least six months from the date of refusal or 
122.24  termination.  If the participant, before completing at least 
122.25  four consecutive months of employment, voluntarily quits or is 
122.26  terminated from a nonsubsidized or a subsidized job, the 
122.27  participant shall immediately be assigned to work in a temporary 
122.28  public service job for at least 32 hours per week for up to 67 
122.29  working days unless the participant is hired or rehired into a 
122.30  nonsubsidized or subsidized job. 
122.31     Subd. 2.  [NOTICE OF SANCTIONS.] If the county determines 
122.32  that the participant has failed or refused without good cause, 
122.33  as defined in subdivision 1, to cooperate with the program 
122.34  requirements, the county shall inform the participant in writing 
122.35  of its intent to impose an applicable sanction listed under 
122.36  subdivision 1 and the opportunity to have a conciliation 
123.1   conference upon request and within five days of the notice 
123.2   before a sanction is imposed. 
123.3      Sec. 46.  [256K.09] [FUNDING.] 
123.4      Subdivision 1.  [LEVERAGING GRANT AMOUNT TO SECURE OTHER 
123.5   FUNDS.] The county agency or the provider, in cooperation with 
123.6   the department, may leverage the grant amount to secure other 
123.7   funds from employers, foundations, and the community for the 
123.8   purpose of developing additional components to benefit children 
123.9   and improve the program. 
123.10     Subd. 2.  [EMPLOYER REIMBURSEMENT.] The employer shall be 
123.11  reimbursed for wages paid to participants under section 256K.05, 
123.12  subdivision 2. 
123.13     Sec. 47.  [TRANSFER FUNDING.] 
123.14     Effective July 1, 1997, all funding related to the child 
123.15  care assistance programs under Minnesota Statutes, section 
123.16  256.035, subdivision 8, is transferred to the commissioner of 
123.17  children, families, and learning. 
123.18     Sec. 48.  [REPEALER.] 
123.19     Minnesota Statutes 1996, sections 256.12, subdivisions 9, 
123.20  10, 14, 15, 20, 21, 22, and 23; 256.72; 256.73; 256.7341; 
123.21  256.7351; 256.7352; 256.7353; 256.7354; 256.7355; 256.7356; 
123.22  256.7357; 256.7358; 256.7359; 256.736; 256.7365; 256.7366; 
123.23  256.737; 256.738; 256.7381; 256.7382; 256.7383; 256.7384; 
123.24  256.7385; 256.7386; 256.7387; 256.7388; 256.739; 256.74, 
123.25  subdivisions 1, 1a, 1b, 2, and 6; 256.745; 256.75; 256.76; 
123.26  256.78; 256.80; 256.81; 256.82; 256.84; 256.85; 256.86; 256.863; 
123.27  256.871; and 256.879, are repealed. 
123.28     Sec. 49.  [EFFECTIVE DATES.] 
123.29     Sections 1, subdivisions 1, 3, 4, and 6; 8, subdivisions 1 
123.30  to 77 and 79 to 99; 9; 10; 11, subdivisions 3 to 8; 13; 14, 
123.31  subdivisions 1 to 14, paragraph (a); 15 to 24, subdivision 4; 25 
123.32  to 30, subdivision 9; 31; 32; 34; and 35 are effective January 
123.33  1, 1998. 
123.34                             ARTICLE 2 
123.35                   PROGRAM INTEGRITY INITIATIVES 
123.36     Section 1.  Minnesota Statutes 1996, section 13.46, 
124.1   subdivision 2, is amended to read: 
124.2      Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
124.3   a statute specifically provides a different classification, data 
124.4   on individuals collected, maintained, used, or disseminated by 
124.5   the welfare system is private data on individuals, and shall not 
124.6   be disclosed except:  
124.7      (1) pursuant according to section 13.05; 
124.8      (2) pursuant according to court order; 
124.9      (3) pursuant according to a statute specifically 
124.10  authorizing access to the private data; 
124.11     (4) to an agent of the welfare system, including a law 
124.12  enforcement person, attorney, or investigator acting for it in 
124.13  the investigation or prosecution of a criminal or civil 
124.14  proceeding relating to the administration of a program; 
124.15     (5) to personnel of the welfare system who require the data 
124.16  to determine eligibility, amount of assistance, and the need to 
124.17  provide services of additional programs to the individual; 
124.18     (6) to administer federal funds or programs; 
124.19     (7) between personnel of the welfare system working in the 
124.20  same program; 
124.21     (8) the amounts of cash public assistance and relief paid 
124.22  to welfare recipients in this state, including their names, 
124.23  social security numbers, income, addresses, and other data as 
124.24  required, upon request by the department of revenue to 
124.25  administer the property tax refund law, supplemental housing 
124.26  allowance, early refund of refundable tax credits, and the 
124.27  income tax.  "Refundable tax credits" means the dependent care 
124.28  credit under section 290.067, the Minnesota working family 
124.29  credit under section 290.0671, the property tax refund under 
124.30  section 290A.04, and, if the required federal waiver or waivers 
124.31  are granted, the federal earned income tax credit under section 
124.32  32 of the Internal Revenue Code; 
124.33     (9) to the Minnesota department of economic security for 
124.34  the purpose of monitoring the eligibility of the data subject 
124.35  for reemployment insurance, for any employment or training 
124.36  program administered, supervised, or certified by that agency, 
125.1   or for the purpose of administering any rehabilitation program, 
125.2   whether alone or in conjunction with the welfare system, and to 
125.3   verify receipt of energy assistance for the telephone assistance 
125.4   plan; 
125.5      (10) to appropriate parties in connection with an emergency 
125.6   if knowledge of the information is necessary to protect the 
125.7   health or safety of the individual or other individuals or 
125.8   persons; 
125.9      (11) data maintained by residential programs as defined in 
125.10  section 245A.02 may be disclosed to the protection and advocacy 
125.11  system established in this state pursuant according to Part C of 
125.12  Public Law Number 98-527 to protect the legal and human rights 
125.13  of persons with mental retardation or other related conditions 
125.14  who live in residential facilities for these persons if the 
125.15  protection and advocacy system receives a complaint by or on 
125.16  behalf of that person and the person does not have a legal 
125.17  guardian or the state or a designee of the state is the legal 
125.18  guardian of the person; 
125.19     (12) to the county medical examiner or the county coroner 
125.20  for identifying or locating relatives or friends of a deceased 
125.21  person; 
125.22     (13) data on a child support obligor who makes payments to 
125.23  the public agency may be disclosed to the higher education 
125.24  services office to the extent necessary to determine eligibility 
125.25  under section 136A.121, subdivision 2, clause (5); 
125.26     (14) participant social security numbers and names 
125.27  collected by the telephone assistance program may be disclosed 
125.28  to the department of revenue to conduct an electronic data match 
125.29  with the property tax refund database to determine eligibility 
125.30  under section 237.70, subdivision 4a; 
125.31     (15) the current address of a recipient of aid to families 
125.32  with dependent children may be disclosed to law enforcement 
125.33  officers who provide the name and social security number of the 
125.34  recipient and satisfactorily demonstrate that:  (i) the 
125.35  recipient is a fugitive felon, including the grounds for this 
125.36  determination; (ii) the location or apprehension of the felon is 
126.1   within the law enforcement officer's official duties; and (iii) 
126.2   the request is made in writing and in the proper exercise of 
126.3   those duties; 
126.4      (16) the current address of a recipient of general 
126.5   assistance, work readiness, or general assistance medical care 
126.6   may be disclosed to probation officers and corrections agents 
126.7   who are supervising the recipient, and to law enforcement 
126.8   officers who are investigating the recipient in connection with 
126.9   a felony level offense; 
126.10     (17) information obtained from food stamp applicant or 
126.11  recipient households may be disclosed to local, state, or 
126.12  federal law enforcement officials, upon their written request, 
126.13  for the purpose of investigating an alleged violation of the 
126.14  food stamp act, in accordance with Code of Federal Regulations, 
126.15  title 7, section 272.1(c); 
126.16     (15) the current address, social security number, and, if 
126.17  available, the photograph of any recipient of the aid to 
126.18  families with dependent children program in effect until January 
126.19  1, 1998, MFIP-S, general assistance, general assistance medical 
126.20  care, Minnesota supplemental aid, work readiness or food stamp 
126.21  programs, or any member of a recipient's household, may be 
126.22  disclosed to any: 
126.23     (i) federal, state, or local law enforcement officer who 
126.24  furnishes the name of the client or other household member and 
126.25  notifies the agency that (A) the person is either fleeing to 
126.26  avoid prosecution, custody, or confinement after prosecution, 
126.27  for a crime that is a felony, or is violating a condition of 
126.28  probation or parole imposed under federal or state law, or has 
126.29  information that is necessary for the officer to conduct an 
126.30  official duty related to locating or apprehending such a person; 
126.31  (B) locating and apprehending the person is an official duty; 
126.32  and (C) the request is being made in the proper exercise of an 
126.33  official duty; 
126.34     (ii) probation officers and correction agents who are 
126.35  supervising the recipient and to law enforcement officers who 
126.36  are investigating the recipient or someone listed as being in 
127.1   the recipient's household in connection with a felony offense; 
127.2   or 
127.3      (iii) local, state, or federal law enforcement officials, 
127.4   upon their written request, for the purpose of investigating an 
127.5   alleged violation of the Food Stamp Act, according to Code of 
127.6   Federal Regulations, title 7, section 272.1(c); 
127.7      (18) (16) data on a child support obligor who is in arrears 
127.8   may be disclosed for purposes of publishing the data pursuant 
127.9   according to section 518.575; 
127.10     (19) (17) data on child support payments made by a child 
127.11  support obligor may be disclosed to the obligee; 
127.12     (20) (18) data in the work reporting system may be 
127.13  disclosed under section 256.998, subdivision 7; 
127.14     (21) (19) to the department of children, families, and 
127.15  learning for the purpose of matching department of children, 
127.16  families, and learning student data with public assistance data 
127.17  to determine students eligible for free and reduced price meals, 
127.18  meal supplements, and free milk pursuant according to United 
127.19  States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
127.20  and 1773; to produce accurate numbers of students receiving aid 
127.21  to families with dependent children in effect until January 1, 
127.22  1998, as required by section 124.175; and to allocate federal 
127.23  and state funds that are distributed based on income of the 
127.24  student's family; or 
127.25     (22) (20) the current address and telephone number of 
127.26  program recipients and emergency contacts may be released to the 
127.27  commissioner of health or a local board of health as defined in 
127.28  section 145A.02, subdivision 2, when the commissioner or local 
127.29  board of health has reason to believe that a program recipient 
127.30  is a disease case, carrier, suspect case, or at risk of illness, 
127.31  and the data are necessary to locate the person. 
127.32     (b) Information on persons who have been treated for drug 
127.33  or alcohol abuse may only be disclosed in accordance with 
127.34  according to the requirements of Code of Federal Regulations, 
127.35  title 42, sections 2.1 to 2.67. 
127.36     (c) Data provided to law enforcement agencies under 
128.1   paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
128.2   investigative data and are confidential or protected nonpublic 
128.3   while the investigation is active.  The data are private after 
128.4   the investigation becomes inactive under section 13.82, 
128.5   subdivision 5, paragraph (a) or (b). 
128.6      (d) Mental health data shall be treated as provided in 
128.7   subdivisions 7, 8, and 9, but is not subject to the access 
128.8   provisions of subdivision 10, paragraph (b). 
128.9      Sec. 2.  Minnesota Statutes 1996, section 13.82, 
128.10  subdivision 1, is amended to read: 
128.11     Subdivision 1.  [APPLICATION.] This section shall apply to 
128.12  agencies which carry on a law enforcement function, including 
128.13  but not limited to municipal police departments, county sheriff 
128.14  departments, fire departments, the bureau of criminal 
128.15  apprehension, the Minnesota state patrol, the board of peace 
128.16  officer standards and training, the department of commerce, and 
128.17  the department of labor and industry fraud investigation unit, 
128.18  and the client and provider fraud prevention and investigation 
128.19  programs operated or supervised by the department of human 
128.20  services.  
128.21     Sec. 3.  Minnesota Statutes 1996, section 256.01, 
128.22  subdivision 2, is amended to read: 
128.23     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
128.24  section 241.021, subdivision 2, the commissioner of human 
128.25  services shall: 
128.26     (1) Administer and supervise all forms of public assistance 
128.27  provided for by state law and other welfare activities or 
128.28  services as are vested in the commissioner.  Administration and 
128.29  supervision of human services activities or services includes, 
128.30  but is not limited to, assuring timely and accurate distribution 
128.31  of benefits, completeness of service, and quality program 
128.32  management.  In addition to administering and supervising human 
128.33  services activities vested by law in the department, the 
128.34  commissioner shall have the authority to: 
128.35     (a) require county agency participation in training and 
128.36  technical assistance programs to promote compliance with 
129.1   statutes, rules, federal laws, regulations, and policies 
129.2   governing human services; 
129.3      (b) monitor, on an ongoing basis, the performance of county 
129.4   agencies in the operation and administration of human services, 
129.5   enforce compliance with statutes, rules, federal laws, 
129.6   regulations, and policies governing welfare services and promote 
129.7   excellence of administration and program operation; 
129.8      (c) develop a quality control program or other monitoring 
129.9   program to review county performance and accuracy of benefit 
129.10  determinations; 
129.11     (d) require county agencies to make an adjustment to the 
129.12  public assistance benefits issued to any individual consistent 
129.13  with federal law and regulation and state law and rule and to 
129.14  issue or recover benefits as appropriate; 
129.15     (e) delay or deny payment of all or part of the state and 
129.16  federal share of benefits and administrative reimbursement 
129.17  according to the procedures set forth in section 256.017; and 
129.18     (f) make contracts with and grants to public and private 
129.19  agencies and organizations, both profit and nonprofit, and 
129.20  individuals, using appropriated funds. 
129.21     (2) Inform county agencies, on a timely basis, of changes 
129.22  in statute, rule, federal law, regulation, and policy necessary 
129.23  to county agency administration of the programs. 
129.24     (3) Administer and supervise all child welfare activities; 
129.25  promote the enforcement of laws protecting handicapped, 
129.26  dependent, neglected and delinquent children, and children born 
129.27  to mothers who were not married to the children's fathers at the 
129.28  times of the conception nor at the births of the children; 
129.29  license and supervise child-caring and child-placing agencies 
129.30  and institutions; supervise the care of children in boarding and 
129.31  foster homes or in private institutions; and generally perform 
129.32  all functions relating to the field of child welfare now vested 
129.33  in the state board of control. 
129.34     (4) Administer and supervise all noninstitutional service 
129.35  to handicapped persons, including those who are visually 
129.36  impaired, hearing impaired, or physically impaired or otherwise 
130.1   handicapped.  The commissioner may provide and contract for the 
130.2   care and treatment of qualified indigent children in facilities 
130.3   other than those located and available at state hospitals when 
130.4   it is not feasible to provide the service in state hospitals. 
130.5      (5) Assist and actively cooperate with other departments, 
130.6   agencies and institutions, local, state, and federal, by 
130.7   performing services in conformity with the purposes of Laws 
130.8   1939, chapter 431. 
130.9      (6) Act as the agent of and cooperate with the federal 
130.10  government in matters of mutual concern relative to and in 
130.11  conformity with the provisions of Laws 1939, chapter 431, 
130.12  including the administration of any federal funds granted to the 
130.13  state to aid in the performance of any functions of the 
130.14  commissioner as specified in Laws 1939, chapter 431, and 
130.15  including the promulgation of rules making uniformly available 
130.16  medical care benefits to all recipients of public assistance, at 
130.17  such times as the federal government increases its participation 
130.18  in assistance expenditures for medical care to recipients of 
130.19  public assistance, the cost thereof to be borne in the same 
130.20  proportion as are grants of aid to said recipients. 
130.21     (7) Establish and maintain any administrative units 
130.22  reasonably necessary for the performance of administrative 
130.23  functions common to all divisions of the department. 
130.24     (8) Act as designated guardian of both the estate and the 
130.25  person of all the wards of the state of Minnesota, whether by 
130.26  operation of law or by an order of court, without any further 
130.27  act or proceeding whatever, except as to persons committed as 
130.28  mentally retarded.  
130.29     (9) Act as coordinating referral and informational center 
130.30  on requests for service for newly arrived immigrants coming to 
130.31  Minnesota. 
130.32     (10) The specific enumeration of powers and duties as 
130.33  hereinabove set forth shall in no way be construed to be a 
130.34  limitation upon the general transfer of powers herein contained. 
130.35     (11) Establish county, regional, or statewide schedules of 
130.36  maximum fees and charges which may be paid by county agencies 
131.1   for medical, dental, surgical, hospital, nursing and nursing 
131.2   home care and medicine and medical supplies under all programs 
131.3   of medical care provided by the state and for congregate living 
131.4   care under the income maintenance programs. 
131.5      (12) Have the authority to conduct and administer 
131.6   experimental projects to test methods and procedures of 
131.7   administering assistance and services to recipients or potential 
131.8   recipients of public welfare.  To carry out such experimental 
131.9   projects, it is further provided that the commissioner of human 
131.10  services is authorized to waive the enforcement of existing 
131.11  specific statutory program requirements, rules, and standards in 
131.12  one or more counties.  The order establishing the waiver shall 
131.13  provide alternative methods and procedures of administration, 
131.14  shall not be in conflict with the basic purposes, coverage, or 
131.15  benefits provided by law, and in no event shall the duration of 
131.16  a project exceed four years.  It is further provided that no 
131.17  order establishing an experimental project as authorized by the 
131.18  provisions of this section shall become effective until the 
131.19  following conditions have been met: 
131.20     (a) The proposed comprehensive plan, including estimated 
131.21  project costs and the proposed order establishing the waiver, 
131.22  shall be filed with the secretary of the senate and chief clerk 
131.23  of the house of representatives at least 60 days prior to its 
131.24  effective date. 
131.25     (b) The secretary of health, education, and welfare of the 
131.26  United States has agreed, for the same project, to waive state 
131.27  plan requirements relative to statewide uniformity. 
131.28     (c) A comprehensive plan, including estimated project 
131.29  costs, shall be approved by the legislative advisory commission 
131.30  and filed with the commissioner of administration.  
131.31     (13) In accordance with According to federal requirements, 
131.32  establish procedures to be followed by local welfare boards in 
131.33  creating citizen advisory committees, including procedures for 
131.34  selection of committee members. 
131.35     (14) Allocate federal fiscal disallowances or sanctions 
131.36  which are based on quality control error rates for the aid to 
132.1   families with dependent children in effect until January 1, 
132.2   1998, medical assistance, or food stamp program in the following 
132.3   manner:  
132.4      (a) One-half of the total amount of the disallowance shall 
132.5   be borne by the county boards responsible for administering the 
132.6   programs.  For the medical assistance and AFDC programs in 
132.7   effect until January 1, 1998, disallowances shall be shared by 
132.8   each county board in the same proportion as that county's 
132.9   expenditures for the sanctioned program are to the total of all 
132.10  counties' expenditures for the AFDC program in effect until 
132.11  January 1, 1998, and medical assistance programs program.  For 
132.12  the food stamp program, sanctions shall be shared by each county 
132.13  board, with 50 percent of the sanction being distributed to each 
132.14  county in the same proportion as that county's administrative 
132.15  costs for food stamps are to the total of all food stamp 
132.16  administrative costs for all counties, and 50 percent of the 
132.17  sanctions being distributed to each county in the same 
132.18  proportion as that county's value of food stamp benefits issued 
132.19  are to the total of all benefits issued for all counties.  Each 
132.20  county shall pay its share of the disallowance to the state of 
132.21  Minnesota.  When a county fails to pay the amount due hereunder, 
132.22  the commissioner may deduct the amount from reimbursement 
132.23  otherwise due the county, or the attorney general, upon the 
132.24  request of the commissioner, may institute civil action to 
132.25  recover the amount due. 
132.26     (b) Notwithstanding the provisions of paragraph (a), if the 
132.27  disallowance results from knowing noncompliance by one or more 
132.28  counties with a specific program instruction, and that knowing 
132.29  noncompliance is a matter of official county board record, the 
132.30  commissioner may require payment or recover from the county or 
132.31  counties, in the manner prescribed in paragraph (a), an amount 
132.32  equal to the portion of the total disallowance which resulted 
132.33  from the noncompliance, and may distribute the balance of the 
132.34  disallowance according to paragraph (a).  
132.35     (15) Develop and implement special projects that maximize 
132.36  reimbursements and result in the recovery of money to the 
133.1   state.  For the purpose of recovering state money, the 
133.2   commissioner may enter into contracts with third parties.  Any 
133.3   recoveries that result from projects or contracts entered into 
133.4   under this paragraph shall be deposited in the state treasury 
133.5   and credited to a special account until the balance in the 
133.6   account reaches $1,000,000.  When the balance in the account 
133.7   exceeds $1,000,000, the excess shall be transferred and credited 
133.8   to the general fund.  All money in the account is appropriated 
133.9   to the commissioner for the purposes of this paragraph. 
133.10     (16) Have the authority to make direct payments to 
133.11  facilities providing shelter to women and their children 
133.12  pursuant according to section 256D.05, subdivision 3.  Upon the 
133.13  written request of a shelter facility that has been denied 
133.14  payments under section 256D.05, subdivision 3, the commissioner 
133.15  shall review all relevant evidence and make a determination 
133.16  within 30 days of the request for review regarding issuance of 
133.17  direct payments to the shelter facility.  Failure to act within 
133.18  30 days shall be considered a determination not to issue direct 
133.19  payments. 
133.20     (17) Have the authority to establish and enforce the 
133.21  following county reporting requirements:  
133.22     (a) The commissioner shall establish fiscal and statistical 
133.23  reporting requirements necessary to account for the expenditure 
133.24  of funds allocated to counties for human services programs.  
133.25  When establishing financial and statistical reporting 
133.26  requirements, the commissioner shall evaluate all reports, in 
133.27  consultation with the counties, to determine if the reports can 
133.28  be simplified or the number of reports can be reduced. 
133.29     (b) The county board shall submit monthly or quarterly 
133.30  reports to the department as required by the commissioner.  
133.31  Monthly reports are due no later than 15 working days after the 
133.32  end of the month.  Quarterly reports are due no later than 30 
133.33  calendar days after the end of the quarter, unless the 
133.34  commissioner determines that the deadline must be shortened to 
133.35  20 calendar days to avoid jeopardizing compliance with federal 
133.36  deadlines or risking a loss of federal funding.  Only reports 
134.1   that are complete, legible, and in the required format shall be 
134.2   accepted by the commissioner.  
134.3      (c) If the required reports are not received by the 
134.4   deadlines established in clause (b), the commissioner may delay 
134.5   payments and withhold funds from the county board until the next 
134.6   reporting period.  When the report is needed to account for the 
134.7   use of federal funds and the late report results in a reduction 
134.8   in federal funding, the commissioner shall withhold from the 
134.9   county boards with late reports an amount equal to the reduction 
134.10  in federal funding until full federal funding is received.  
134.11     (d) A county board that submits reports that are late, 
134.12  illegible, incomplete, or not in the required format for two out 
134.13  of three consecutive reporting periods is considered 
134.14  noncompliant.  When a county board is found to be noncompliant, 
134.15  the commissioner shall notify the county board of the reason the 
134.16  county board is considered noncompliant and request that the 
134.17  county board develop a corrective action plan stating how the 
134.18  county board plans to correct the problem.  The corrective 
134.19  action plan must be submitted to the commissioner within 45 days 
134.20  after the date the county board received notice of noncompliance.
134.21     (e) The final deadline for fiscal reports or amendments to 
134.22  fiscal reports is one year after the date the report was 
134.23  originally due.  If the commissioner does not receive a report 
134.24  by the final deadline, the county board forfeits the funding 
134.25  associated with the report for that reporting period and the 
134.26  county board must repay any funds associated with the report 
134.27  received for that reporting period. 
134.28     (f) The commissioner may not delay payments, withhold 
134.29  funds, or require repayment under paragraph (c) or (e) if the 
134.30  county demonstrates that the commissioner failed to provide 
134.31  appropriate forms, guidelines, and technical assistance to 
134.32  enable the county to comply with the requirements.  If the 
134.33  county board disagrees with an action taken by the commissioner 
134.34  under paragraph (c) or (e), the county board may appeal the 
134.35  action according to sections 14.57 to 14.69. 
134.36     (g) Counties subject to withholding of funds under 
135.1   paragraph (c) or forfeiture or repayment of funds under 
135.2   paragraph (e) shall not reduce or withhold benefits or services 
135.3   to clients to cover costs incurred due to actions taken by the 
135.4   commissioner under paragraph (c) or (e). 
135.5      (18) Allocate federal fiscal disallowances or sanctions for 
135.6   audit exceptions when federal fiscal disallowances or sanctions 
135.7   are based on a statewide random sample for the foster care 
135.8   program under title IV-E of the Social Security Act, United 
135.9   States Code, title 42, in direct proportion to each county's 
135.10  title IV-E foster care maintenance claim for that period. 
135.11     (19) Be responsible for ensuring the detection, prevention, 
135.12  investigation, and resolution of fraudulent activities or 
135.13  behavior by applicants, recipients, and other participants in 
135.14  the human services programs administered by the department. 
135.15     (20) Require county agencies to identify overpayments, 
135.16  establish claims and utilize all available and cost-beneficial 
135.17  methodologies to collect and recover these overpayments in the 
135.18  human services programs administered by the department. 
135.19     Sec. 4.  Minnesota Statutes 1996, section 256.017, 
135.20  subdivision 2, is amended to read: 
135.21     Subd. 2.  [DEFINITIONS.] The following terms have the 
135.22  meanings given for the purpose purposes of this section. 
135.23     (a) "Administrative penalty" means an adjustment against 
135.24  the county agency's state and federal benefit and federal 
135.25  administrative reimbursement when the commissioner determines 
135.26  that the county agency is not in compliance with the policies 
135.27  and procedures established by the commissioner. 
135.28     (b) "Quality control case penalty" means an adjustment 
135.29  against the county agency's federal administrative reimbursement 
135.30  and state and federal benefit reimbursement when the 
135.31  commissioner determines through a quality control review that 
135.32  the county agency has made incorrect payments, terminations, or 
135.33  denials of benefits as determined by state quality control 
135.34  procedures for the aid to families with dependent children 
135.35  Minnesota family investment program-statewide, food stamp, or 
135.36  medical assistance programs, or any other programs for which the 
136.1   commissioner has developed a quality control system.  Quality 
136.2   control case penalties apply only to agency errors as defined by 
136.3   state quality control procedures. 
136.4      (c) "Quality control" means a review system of a statewide 
136.5   random sample of cases, designed to provide data on program 
136.6   outcomes and the accuracy with which state and federal policies 
136.7   are being applied in issuing benefits and as a fiscal audit to 
136.8   ensure the accuracy of expenditures.  The quality control system 
136.9   is administered by the department.  For the aid to families with 
136.10  dependent children Minnesota family investment 
136.11  program-statewide, food stamp, and medical assistance programs, 
136.12  the quality control system is that required by federal 
136.13  regulation, or those developed by the commissioner. 
136.14     Sec. 5.  Minnesota Statutes 1996, section 256.019, is 
136.15  amended to read: 
136.16     256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 
136.17     When an amount is recovered from any source for assistance 
136.18  given under the provisions governing public assistance programs 
136.19  including aid to families with dependent children, MFIP-S, 
136.20  medical care, emergency assistance, general assistance, work 
136.21  readiness, and Minnesota supplemental aid, there shall be paid 
136.22  to the United States the amount due under the terms of the 
136.23  Social Security Act and the balance must be paid to the United 
136.24  States or into the treasury of the state or county in accordance 
136.25  with according to current rates of financial participation; 
136.26  except if the recovery is made by a county agency using any 
136.27  method other than recoupment, the county may keep one-half of 
136.28  the nonfederal share of the recovery.  This does not apply to 
136.29  recoveries from medical providers or to recoveries begun by the 
136.30  department of human services' surveillance and utilization 
136.31  review division, state hospital collections unit, and the 
136.32  benefit recoveries division or, by the attorney general's 
136.33  office, or child support collections.  In the food stamp 
136.34  program, the nonfederal share of recoveries in the federal tax 
136.35  refund offset program (FTROP) only will be divided equally 
136.36  between the state agency and the involved county agency. 
137.1      Sec. 6.  Minnesota Statutes 1996, section 256.045, 
137.2   subdivision 3, is amended to read: 
137.3      Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
137.4   hearings are available for the following:  (1) any person 
137.5   applying for, receiving or having received public assistance, 
137.6   medical care, or a program of social services granted by the 
137.7   state agency or a county agency under sections 252.32, 256.031 
137.8   to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E, 
137.9   261, or the federal Food Stamp Act whose application for 
137.10  assistance is denied, not acted upon with reasonable promptness, 
137.11  or whose assistance is suspended, reduced, terminated, or 
137.12  claimed to have been incorrectly paid; (2) any patient or 
137.13  relative aggrieved by an order of the commissioner under section 
137.14  252.27; (3) a party aggrieved by a ruling of a prepaid health 
137.15  plan; (4) any individual or facility determined by a lead agency 
137.16  to have maltreated a vulnerable adult under section 626.557 
137.17  after they have exercised their right to administrative 
137.18  reconsideration under section 626.557; (5) any person whose 
137.19  claim for foster care payment pursuant according to a placement 
137.20  of the child resulting from a child protection assessment under 
137.21  section 626.556 is denied or not acted upon with reasonable 
137.22  promptness, regardless of funding source; (6) any person to whom 
137.23  a right of appeal pursuant according to this section is given by 
137.24  other provision of law; or (7) an applicant aggrieved by an 
137.25  adverse decision to an application for a hardship waiver under 
137.26  section 256B.15.  The failure to exercise the right to an 
137.27  administrative reconsideration shall not be a bar to a hearing 
137.28  under this section if federal law provides an individual the 
137.29  right to a hearing to dispute a finding of maltreatment.  
137.30  Individuals and organizations specified in this section may 
137.31  contest the specified action, decision, or final disposition 
137.32  before the state agency by submitting a written request for a 
137.33  hearing to the state agency within 30 days after receiving 
137.34  written notice of the action, decision, or final disposition, or 
137.35  within 90 days of such written notice if the applicant, 
137.36  recipient, patient, or relative shows good cause why the request 
138.1   was not submitted within the 30-day time limit. 
138.2      The hearing for an individual or facility under clause (4) 
138.3   is the only administrative appeal to the final lead agency 
138.4   disposition specifically, including a challenge to the accuracy 
138.5   and completeness of data under section 13.04.  Hearings 
138.6   requested under clause (4) apply only to incidents of 
138.7   maltreatment that occur on or after October 1, 1995.  Hearings 
138.8   requested by nursing assistants in nursing homes alleged to have 
138.9   maltreated a resident prior to October 1, 1995, shall be held as 
138.10  a contested case proceeding under the provisions of chapter 14. 
138.11     For purposes of this section, bargaining unit grievance 
138.12  procedures are not an administrative appeal. 
138.13     The scope of hearings involving claims to foster care 
138.14  payments under clause (5) shall be limited to the issue of 
138.15  whether the county is legally responsible for a child's 
138.16  placement under court order or voluntary placement agreement 
138.17  and, if so, the correct amount of foster care payment to be made 
138.18  on the child's behalf and shall not include review of the 
138.19  propriety of the county's child protection determination or 
138.20  child placement decision. 
138.21     (b) Except for a prepaid health plan, a vendor of medical 
138.22  care as defined in section 256B.02, subdivision 7, or a vendor 
138.23  under contract with a county agency to provide social services 
138.24  under section 256E.08, subdivision 4, is not a party and may not 
138.25  request a hearing under this section, except if assisting a 
138.26  recipient as provided in subdivision 4. 
138.27     (c) An applicant or recipient is not entitled to receive 
138.28  social services beyond the services included in the amended 
138.29  community social services plan developed under section 256E.081, 
138.30  subdivision 3, if the county agency has met the requirements in 
138.31  section 256E.081. 
138.32     Sec. 7.  Minnesota Statutes 1996, section 256.046, is 
138.33  amended to read: 
138.34     256.046 [ADMINISTRATIVE FRAUD DISQUALIFICATION HEARINGS.] 
138.35     Subdivision 1.  [HEARING AUTHORITY.] A local agency may 
138.36  initiate an administrative fraud disqualification hearing for 
139.1   individuals accused of wrongfully obtaining assistance or 
139.2   intentional program violations in the aid to families with 
139.3   dependent children in effect until January 1, 1998, MFIP-S, 
139.4   child care, general assistance, family general assistance, 
139.5   Minnesota supplemental aid, medical care, or food stamp 
139.6   programs.  The hearing is subject to the requirements of section 
139.7   256.045 and the requirements in Code of Federal Regulations, 
139.8   title 7, section 273.16, for the food stamp program and title 
139.9   45, section 235.112, as of September 30, 1995, for the aid to 
139.10  families with dependent children program cash grant and medical 
139.11  care programs. 
139.12     Subd. 2.  [COMBINED HEARING.] The referee may combine a 
139.13  fair hearing and administrative fraud disqualification hearing 
139.14  into a single hearing if the factual issues arise out of the 
139.15  same, or related, circumstances and the individual receives 
139.16  prior notice that the hearings will be combined.  If the 
139.17  administrative fraud disqualification hearing and fair hearing 
139.18  are combined, the time frames for administrative fraud 
139.19  disqualification hearings set forth specified in Code of Federal 
139.20  Regulations, title 7, section 273.16, and title 45, section 
139.21  235.112, as of September 30, 1995, apply.  If the individual 
139.22  accused of wrongfully obtaining assistance is charged under 
139.23  section 256.98 for the same act or acts which are the subject of 
139.24  the hearing, the individual may request that the hearing be 
139.25  delayed until the criminal charge is decided by the court or 
139.26  withdrawn. 
139.27     Sec. 8.  [256.0471] [OVERPAYMENTS BECOME JUDGMENTS BY 
139.28  OPERATION OF LAW.] 
139.29     Subdivision 1.  [QUALIFYING OVERPAYMENT.] Any overpayment 
139.30  for assistance granted under sections 256.031 to 256.0361, 
139.31  256.72 to 256.871, and 256H.05; chapters 256B, 256D, 256I, 256J, 
139.32  and 256K; and the food stamp program, except agency error 
139.33  claims, become a judgment by operation of law 90 days after the 
139.34  notice of overpayment is sent.  This judgment shall be entitled 
139.35  to full faith and credit in this and any other state. 
139.36     Subd. 2.  [OVERPAYMENTS INCLUDED.] This section is limited 
140.1   to overpayments for which notification is issued within the time 
140.2   period specified under section 541.05. 
140.3      Subd. 3.  [NOTIFICATION REQUIREMENTS.] A judgment is only 
140.4   obtained after: 
140.5      (1) a notice of overpayment has been mailed to the debtor 
140.6   at the last known address; and 
140.7      (2) the time period under section 256.045, subdivision 3, 
140.8   has elapsed without a request for a hearing, or a hearing 
140.9   decision has been rendered under section 256.045 or 256.046 
140.10  which concludes the existence of an overpayment that meets the 
140.11  requirements of this section. 
140.12     Subd. 4.  [NOTICE OF OVERPAYMENT.] The notice of 
140.13  overpayment shall include the amount and cause of the 
140.14  overpayment, appeal rights, and an explanation of the 
140.15  consequences of the judgment that will be established if an 
140.16  appeal is not filed timely or if the administrative hearing 
140.17  decision establishes that there is in overpayment which 
140.18  qualifies for judgment. 
140.19     Subd. 5.  [JUDGMENTS ENTERED AND DOCKETED.] A judgment 
140.20  shall be entered and docketed under section 548.09 only after 
140.21  there has been at least three months that have elapsed since: 
140.22     (1) the notice of overpayment; and 
140.23     (2) the last time a monthly recoupment was applied to the 
140.24  overpayment. 
140.25     Subd. 6.  [DOCKETING OF OVERPAYMENTS.] On or after the date 
140.26  an unpaid overpayment becomes a judgment by operation of law 
140.27  under subdivision 1, the agency or public authority may file 
140.28  with the court administrator: 
140.29     (1) a statement identifying, or a copy of, the overpayment 
140.30  notice which provides for an appeal process and requires payment 
140.31  of the overpayment; 
140.32     (2) an affidavit of default, stating the full name, 
140.33  occupation, place of residence, and last known post office 
140.34  address of the debtor; the name and post office address of the 
140.35  agency or public authority; the date or dates the overpayment 
140.36  was incurred; the program that was overpaid; and the total 
141.1   amount of the judgment; and 
141.2      (3) an affidavit of service of a notice of entry of 
141.3   judgment shall be made by first class mail at the debtor's last 
141.4   known post office address.  Service is completed upon mailing in 
141.5   the manner designated. 
141.6      Subd. 7.  [DOES NOT IMPEDE OTHER METHODS.] Nothing in this 
141.7   section shall be construed to impede or restrict alternative 
141.8   recovery methods for these overpayments or overpayments which do 
141.9   not meet the requirements of this section. 
141.10     Sec. 9.  Minnesota Statutes 1996, section 256.98, 
141.11  subdivision 1, is amended to read: 
141.12     Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
141.13  who commits any of the following acts or omissions is guilty of 
141.14  theft and shall be sentenced under section 609.52, subdivision 
141.15  3, clauses (1) to (5): 
141.16     (1) obtains, or attempts to obtain, or aids or abets any 
141.17  person to obtain by means of a willfully false statement or 
141.18  representation, by intentional willful concealment of a any 
141.19  material fact, or by impersonation or other fraudulent device, 
141.20  assistance or the continued receipt of assistance, to include 
141.21  child care or vouchers produced according to sections 145.891 to 
141.22  145.897 and MinnesotaCare services according to sections 
141.23  256.9351 to 256.966, to which the person is not entitled or 
141.24  assistance greater than that to which the person is entitled, or 
141.25  who; 
141.26     (2) knowingly aids or abets in buying or in any way 
141.27  disposing of the property of a recipient or applicant of 
141.28  assistance without the consent of the county agency with intent 
141.29  to defeat the purposes of sections 145.891 to 145.897, 256.12, 
141.30  256.031 to 256.0361, 256.72 to 256.871, and 256.9351 to 256.966, 
141.31  child care, the MFIP-S, chapter 256B, 256D, 256J, or 256K, or 
141.32  all of these sections is guilty of theft and shall be sentenced 
141.33  pursuant to section 609.52, subdivision 3, clauses (2), (3)(a) 
141.34  and (c), (4), and (5).; or 
141.35     (3) knowingly fails to report, within ten days, a change or 
141.36  anticipated change in circumstances and continues to receive 
142.1   assistance to which the person is not entitled or assistance 
142.2   greater than that to which the person is entitled. 
142.3      The continued receipt of assistance to which the person is 
142.4   not entitled or greater than that to which the person is 
142.5   entitled as a result of any of the acts, failure to act, or 
142.6   concealment described in this subdivision shall be deemed to be 
142.7   continuing offenses from the date that the first act or failure 
142.8   to act occurred. 
142.9      Sec. 10.  Minnesota Statutes 1996, section 256.98, 
142.10  subdivision 3, is amended to read: 
142.11     Subd. 3.  [AMOUNT OF ASSISTANCE INCORRECTLY PAID.] The 
142.12  amount of the assistance incorrectly paid under this section is 
142.13  the difference between the amount of assistance actually 
142.14  received on the basis of misrepresented or concealed facts and 
142.15  the amount to which the recipient would have been entitled had 
142.16  the specific concealment or misrepresentation not occurred.  
142.17  Unless required by law, rule, or regulation,.  No earned income 
142.18  disregards shall not be applied to earnings not reported by the 
142.19  recipient, other reductions in grant amount, or recalculations 
142.20  shall be applied in cases involving wrongfully obtained 
142.21  assistance. 
142.22     Sec. 11.  Minnesota Statutes 1996, section 256.98, 
142.23  subdivision 4, is amended to read: 
142.24     Subd. 4.  [RECOVERY OF ASSISTANCE.] The amount of 
142.25  assistance determined to have been incorrectly paid is 
142.26  recoverable from: 
142.27     (1) the recipient or the recipient's estate by the county 
142.28  or the state as a debt due the county or the state or both in 
142.29  proportion to the contribution of each.; and 
142.30     (2) any person found to have taken independent action to 
142.31  establish eligibility for, conspired with, or aided and abetted, 
142.32  any recipient of public assistance found to have been 
142.33  incorrectly paid. 
142.34     The obligations established under this subdivision shall be 
142.35  joint and several and shall extend to all cases involving agency 
142.36  error and client error as well as cases involving wrongfully 
143.1   obtained assistance. 
143.2      Sec. 12.  Minnesota Statutes 1996, section 256.98, 
143.3   subdivision 8, is amended to read: 
143.4      Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
143.5   to be guilty of wrongfully obtaining assistance by a federal or 
143.6   state court or by an administrative hearing determination, or 
143.7   waiver thereof, through a disqualification consent agreement, or 
143.8   as part of any approved diversion plan under section 401.065, or 
143.9   any court ordered stay which carries with it any probationary or 
143.10  other conditions, in the aid to families with dependent children 
143.11  program in effect until January 1, 1998, the Minnesota family 
143.12  assistance program-statewide, the food stamp program, the 
143.13  Minnesota family investment plan, child care program, the 
143.14  general assistance or family general assistance program, or the 
143.15  Minnesota supplemental aid program, or the work readiness 
143.16  program shall be disqualified from that program.  The needs of 
143.17  that individual shall not be taken into consideration in 
143.18  determining the grant level for that assistance unit:  
143.19     (1) for six months one year after the first offense; 
143.20     (2) for 12 months two years after the second offense; and 
143.21     (3) permanently after the third or subsequent offense.  
143.22     The period of program disqualification shall begin on the 
143.23  date stipulated on the advance notice of disqualification 
143.24  without possibility of postponement for administrative stay or 
143.25  administrative hearing and shall continue through completion 
143.26  unless and until the findings upon which the sanctions were 
143.27  imposed are reversed by a court of competent jurisdiction.  The 
143.28  period for which sanctions are imposed is not subject to 
143.29  review.  The sanctions provided under this subdivision are in 
143.30  addition to, and not in substitution for, any other sanctions 
143.31  that may be provided for by law for the offense involved.  A 
143.32  disqualification established through hearing or waiver shall 
143.33  result in the disqualification period beginning immediately 
143.34  unless the person has become otherwise ineligible for 
143.35  assistance.  If the person is ineligible for assistance, the 
143.36  disqualification period begins when the person again meets the 
144.1   eligibility criteria of the program from which they were 
144.2   disqualified and makes application for that program. 
144.3      Sec. 13.  Minnesota Statutes 1996, section 256.983, 
144.4   subdivision 1, is amended to read: 
144.5      Subdivision 1.  [PROGRAMS ESTABLISHED.] Within the limits 
144.6   of available appropriations, and to the extent required or 
144.7   authorized by applicable federal regulations, the commissioner 
144.8   of human services shall require the establishment maintenance of 
144.9   budget neutral fraud prevention investigation programs in the 
144.10  seven counties participating in the fraud prevention 
144.11  investigation pilot project established under this section, and 
144.12  in 11 additional Minnesota counties with the largest aid to 
144.13  families with dependent children program caseloads as of July 1, 
144.14  1991.  If funds are sufficient, the commissioner may also extend 
144.15  fraud prevention investigation programs to:  (1) other 
144.16  counties that have welfare fraud control programs already in 
144.17  place based on enhanced funding contracts covering the fraud 
144.18  investigation function; and (2) counties that have the largest 
144.19  AFDC caseloads as of July 1, 1994, and are not currently 
144.20  participating in the fraud prevention investigation pilot 
144.21  project.  The pilot project may be expanded provided the 
144.22  expansion is budget neutral to the state. 
144.23     Sec. 14.  Minnesota Statutes 1996, section 256.983, 
144.24  subdivision 4, is amended to read: 
144.25     Subd. 4.  [FUNDING.] (a) Every involved county agency shall 
144.26  either have in place or obtain an approved contract which meets 
144.27  all federal requirements necessary to obtain enhanced federal 
144.28  funding for its welfare fraud control and fraud prevention 
144.29  investigation programs.  County agency reimbursement shall be 
144.30  made through the settlement provisions applicable to the aid to 
144.31  families with dependent children and program in effect until 
144.32  January 1, 1998, food stamp programs program, Minnesota family 
144.33  investment program-statewide, and medical assistance program and 
144.34  other federal and state funded programs. 
144.35     (b) After allowing an opportunity to establish compliance, 
144.36  The commissioner will deny administrative reimbursement maintain 
145.1   program compliance if for any three-month period during any 
145.2   grant year, a county agency fails to comply with 
145.3   fraud prevention investigation program guidelines, or fails to 
145.4   meet the cost-effectiveness standards developed by the 
145.5   commissioner.  This result is contingent on the commissioner 
145.6   providing written notice, including an offer of technical 
145.7   assistance, within 30 days of the end of the third or subsequent 
145.8   month of noncompliance.  The county agency shall be required to 
145.9   submit a corrective action plan to the commissioner within 30 
145.10  days of receipt of a notice of noncompliance.  Failure to submit 
145.11  a corrective action plan or, continued deviation from standards 
145.12  of more than ten percent after submission of a corrective action 
145.13  plan, will result in denial of funding for each subsequent month 
145.14  during the grant year or billing the county agency for fraud 
145.15  prevention investigation (FPI) service provided by the 
145.16  commissioner and reallocation of program grant funds, or 
145.17  investigative resources, or both, to other counties.  The denial 
145.18  of funding shall apply to the general settlement received by the 
145.19  county agency on a quarterly basis and shall not reduce the 
145.20  grant amount applicable to the FPI project.  
145.21     Sec. 15.  Minnesota Statutes 1996, section 256.984, 
145.22  subdivision 1, is amended to read: 
145.23     Subdivision 1.  [DECLARATION.] Every application for public 
145.24  assistance under this chapter and chapters 256B, 256D, 256J, 
145.25  256K, and food stamps under chapter 393 shall be in writing or 
145.26  reduced to writing as prescribed by the state agency and shall 
145.27  contain the following declaration which shall be signed by the 
145.28  applicant: 
145.29     "I declare under the penalties of perjury that this 
145.30     application has been examined by me and to the best of my 
145.31     knowledge is a true and correct statement of every material 
145.32     point.  I understand that a person convicted of perjury may 
145.33     be sentenced to imprisonment of not more than five years or 
145.34     to payment of a fine of not more than $10,000, or both." 
145.35     Sec. 16.  Minnesota Statutes 1996, section 256.986, is 
145.36  amended to read: 
146.1      256.986 [COUNTY COORDINATION OF FRAUD CONTROL ACTIVITIES.] 
146.2      (a) The county agency shall prepare and submit to the 
146.3   commissioner of human services by January 1 April 30 of each 
146.4   state fiscal year a plan to coordinate county duties related to 
146.5   the prevention, investigation, and prosecution of fraud in 
146.6   public assistance programs.  Plans may be submitted on a 
146.7   voluntary basis prior to January 1, 1996.  Each county must 
146.8   submit its first annual plan prior to January 1, 1997 April 30, 
146.9   1998. 
146.10     (b) Within the limits of appropriations specifically made 
146.11  available for this purpose, the commissioner may make grants to 
146.12  counties submitting plans under paragraph (a) to implement 
146.13  coordination activities. 
146.14     Sec. 17.  Minnesota Statutes 1996, section 256.9861, 
146.15  subdivision 1, is amended to read: 
146.16     Subdivision 1.  [PROGRAM ESTABLISHED.] Within the limits of 
146.17  available state and federal appropriations, and to the extent 
146.18  required or authorized by applicable federal regulations, the 
146.19  commissioner of human services shall make funding available to 
146.20  county agencies for the establishment of program integrity 
146.21  reinvestment initiatives.  The project shall initially be 
146.22  limited to those county agencies participating in federally 
146.23  funded optional fraud control programs as of January 1, 
146.24  1995 fraud control efforts and require the maintenance of county 
146.25  efforts and financial contribution that were in place during 
146.26  fiscal year 1996.  
146.27     Sec. 18.  Minnesota Statutes 1996, section 256.9861, 
146.28  subdivision 2, is amended to read: 
146.29     Subd. 2.  [COUNTY PROPOSALS.] Each included county shall 
146.30  develop and submit annual funding, staffing, and operating grant 
146.31  proposals to the commissioner no later than April 30 of each 
146.32  year.  For the first operating year only, the proposal shall be 
146.33  submitted no later than October 30.  Each proposal shall provide 
146.34  information on: 
146.35     (1) the staffing and funding of the fraud investigation and 
146.36  prosecution operations; 
147.1      (2) job descriptions for agency fraud control staff; 
147.2      (3) contracts covering outside investigative agencies; 
147.3      (4) operational methods to integrate the use of fraud 
147.4   prevention investigation techniques; and 
147.5      (5) implementation and utilization of administrative 
147.6   disqualification hearings and diversions into by the existing 
147.7   county fraud control and prosecution procedures.  
147.8      Sec. 19.  Minnesota Statutes 1996, section 256.9861, 
147.9   subdivision 4, is amended to read: 
147.10     Subd. 4.  [STANDARDS.] The commissioner shall, after 
147.11  consultation with the involved counties, establish standards 
147.12  governing the performance levels of involved county 
147.13  investigative units based on grant agreements negotiated with 
147.14  the involved county agencies.  The standards shall take into 
147.15  consideration and may include investigative caseloads, grant 
147.16  savings levels, the comparison of fraud prevention and 
147.17  prosecution directed investigations, utilization levels of 
147.18  administrative disqualification hearings, the timely reporting 
147.19  and implementation of disqualifications, and the timeliness of 
147.20  reports received from prosecutors.  
147.21     Sec. 20.  Minnesota Statutes 1996, section 256.9861, 
147.22  subdivision 5, is amended to read: 
147.23     Subd. 5.  [FUNDING.] (a) Grant funds are intended to help 
147.24  offset the reduction in federal financial participation to 50 
147.25  percent and may be apportioned to the participating counties 
147.26  whenever feasible, and within the commissioner's discretion, to 
147.27  achieve this goal.  State funding shall be made available 
147.28  contingent on counties submitting a plan that is approved by the 
147.29  department of human services.  Failure or delay in obtaining 
147.30  that approval shall not, however, eliminate the obligation to 
147.31  maintain fraud control efforts at the January 1, 1995 June 30, 
147.32  1996, level.  Additional counties may be added to the project to 
147.33  the extent that funds are subsequently made available.  Every 
147.34  involved county must meet all federal requirements necessary to 
147.35  obtain federal funding for its welfare fraud control and 
147.36  prevention programs.  County agency reimbursement shall be made 
148.1   through the settlement provisions applicable to the AFDC and 
148.2   MFIP-S, food stamp and medical assistance programs.  
148.3      (b) Should a county agency fail to comply with the 
148.4   standards set, or fail to meet cost-effectiveness standards 
148.5   developed by the commissioner for three months during any grant 
148.6   year any three-month period, the commissioner shall deny 
148.7   reimbursement or administrative costs, after allowing an 
148.8   opportunity to establish compliance.  
148.9      (c) Any denial of reimbursement under paragraph (b) is 
148.10  contingent on the commissioner providing written notice, 
148.11  including an offer of technical assistance, within 30 days of 
148.12  the end of the third or subsequent months of noncompliance.  The 
148.13  county agency shall be required to submit a corrective action 
148.14  plan to the commissioner within 30 days of receipt of a notice 
148.15  of noncompliance.  Failure to submit a corrective action plan or 
148.16  continued deviation from standards of more than ten percent 
148.17  after submission of corrective action plan, will result in 
148.18  denial of funding for each such month during the grant year, or 
148.19  billing of the county agency for program integrity reinvestment 
148.20  project services provided by the commissioner or reallocation of 
148.21  grant funds to other counties.  The denial of funding shall 
148.22  apply to the general settlement received by the county agency on 
148.23  a quarterly basis and shall not reduce the grant amount 
148.24  applicable to the program integrity reinvestment project. 
148.25     Sec. 21.  [256.9863] [ASSISTANCE TRANSACTION CARD; 
148.26  PRESUMPTION OF RECEIPT OF BENEFITS.] 
148.27     Any person in whose name an assistance transaction card has 
148.28  been issued shall be presumed to have received the benefit of 
148.29  all transactions involving that card.  This presumption applies 
148.30  in all situations unless the card in question has been reported 
148.31  lost or stolen by the cardholder.  This presumption may be 
148.32  overcome by a preponderance of evidence indicating that the card 
148.33  was neither used by nor with the consent of the cardholder.  
148.34  Overcoming this presumption does not create any new or 
148.35  additional payment obligation not otherwise established in law, 
148.36  rule, or regulation. 
149.1      Sec. 22.  [256.9864] [REPORTS BY RECIPIENT.] 
149.2      (a) An assistance unit with a recent work history or with 
149.3   earned income shall report monthly to the county agency on 
149.4   income received and other circumstances affecting eligibility or 
149.5   assistance amounts.  All other assistance units shall report on 
149.6   income and other circumstances affecting eligibility and 
149.7   assistance amounts at less frequent intervals, as specified by 
149.8   the state agency. 
149.9      (b) An assistance unit required to submit a report on the 
149.10  form designated by the commissioner and within ten days of the 
149.11  due date or the date of the significant change, whichever is 
149.12  later, or otherwise report significant changes which would 
149.13  affect eligibility or assistance amounts, is considered to have 
149.14  continued its application for assistance effective the date the 
149.15  required report is received by the county agency, if a complete 
149.16  report is received within a calendar month in which assistance 
149.17  was received, except that no assistance shall be paid for the 
149.18  period beginning with the end of the month in which the report 
149.19  was due and ending with the date the report was received by the 
149.20  county agency. 
149.21     Sec. 23.  [256.9865] [RECOVERY OF OVERPAYMENTS AND ATM 
149.22  ERRORS.] 
149.23     Subdivision 1.  [OBLIGATION TO RECOVER.] If an amount of 
149.24  MFIP-S assistance is paid to a recipient in excess of the 
149.25  payment due, it shall be recoverable by the county agency.  This 
149.26  recovery authority also extends to preexisting claims or newly 
149.27  discovered claims established under the AFDC program in effect 
149.28  on January 1, 1997.  The agency shall give written notice to the 
149.29  recipient of its intention to recover the overpayment.  County 
149.30  agency efforts and financial contributions shall be maintained 
149.31  at the level in place during fiscal year 1996. 
149.32     Subd. 2.  [RECOUPMENT.] When an overpayment occurs, the 
149.33  county agency shall recover the overpayment from a current 
149.34  recipient by reducing the amount of aid payable to the 
149.35  assistance unit of which the recipient is a member for one or 
149.36  more monthly assistance payments until the overpayment is 
150.1   repaid.  All county agencies in the state shall reduce the 
150.2   assistance payment by ten percent of the assistance unit's 
150.3   standard of need in nonfraud cases and 20 percent where fraud 
150.4   has occurred.  For recipients receiving benefits via electronic 
150.5   benefits transfer, if the overpayment is a result of an 
150.6   automated teller machine (ATM) dispensing funds in error to the 
150.7   recipient, the agency may recover the ATM error by immediately 
150.8   withdrawing funds from the recipient's electronic benefit 
150.9   transfer account, up to the amount of the error.  In cases where 
150.10  there is both an overpayment and underpayment, the county agency 
150.11  shall offset one against the other in correcting the payment. 
150.12     Subd. 3.  [VOLUNTARY REPAYMENTS.] Overpayments may also be 
150.13  voluntarily repaid, in part or in full, by the individual, in 
150.14  addition to the aid reductions in subdivision 2, to include 
150.15  further voluntary reductions in the grant level agreed to in 
150.16  writing by the individual, until the total amount of the 
150.17  overpayment is repaid. 
150.18     Subd. 4.  [CLOSED CASE RECOVERIES.] The county agency shall 
150.19  make reasonable efforts to recover overpayments to persons no 
150.20  longer on assistance according to standards adopted by rule by 
150.21  the commissioner of human services.  The county agency need not 
150.22  attempt to recover overpayments of less than $35 paid to an 
150.23  individual no longer on assistance unless the individual has 
150.24  been convicted of fraud under section 256.98. 
150.25     Sec. 24.  [256.9866] [COMMUNITY SERVICE AS A COUNTY 
150.26  OBLIGATION.] 
150.27     Community service shall be an acceptable sentencing option 
150.28  but shall not reduce the state or federal share of any amount to 
150.29  be repaid or any subsequent recovery.  Any reduction or offset 
150.30  of any such amount ordered by a court shall be treated as 
150.31  follows: 
150.32     (1) any reduction in an overpayment amount, to include the 
150.33  amount ordered as restitution, shall not reduce the underlying 
150.34  amount established as an overpayment by the state or county 
150.35  agency; 
150.36     (2) total overpayments shall continue as a debt owed and 
151.1   may be recovered by any civil or administrative means otherwise 
151.2   available to the state or county agency; and 
151.3      (3) any amount ordered to be offset against any overpayment 
151.4   shall be deducted from the county share only of any recovery and 
151.5   shall be based on the prevailing state minimum wage.  To the 
151.6   extent that any deduction is in fact made against any state or 
151.7   county share, it shall be reimbursed from the county share of 
151.8   payments to be made under section 256.025. 
151.9      Sec. 25.  Minnesota Statutes 1996, section 256B.056, 
151.10  subdivision 1a, is amended to read: 
151.11     Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
151.12  specifically required by state law or rule or federal law or 
151.13  regulation, the methodologies used in counting income and assets 
151.14  to determine eligibility for medical assistance for persons 
151.15  whose eligibility category is based on blindness, disability, or 
151.16  age of 65 or more years, the methodologies for the supplemental 
151.17  security income program shall be used, except that payments made 
151.18  pursuant according to a court order for the support of children 
151.19  shall be excluded from income in an amount not to exceed the 
151.20  difference between the applicable income standard used in the 
151.21  state's medical assistance program for aged, blind, and disabled 
151.22  persons and the applicable income standard used in the state's 
151.23  medical assistance program for families with children.  
151.24  Exclusion of court-ordered child support payments is subject to 
151.25  the condition that if there has been a change in the financial 
151.26  circumstances of the person with the legal obligation to pay 
151.27  support since the support order was entered, the person with the 
151.28  legal obligation to pay support has petitioned for modification 
151.29  of the support order.  For families and children, which includes 
151.30  all other eligibility categories, the methodologies for the aid 
151.31  to families with dependent children program Minnesota family 
151.32  investment program-statewide under section 256.73 chapter 256J 
151.33  shall be used.  Effective upon federal approval, in-kind 
151.34  contributions to, and payments made on behalf of, a recipient, 
151.35  by an obligor, in satisfaction of or in addition to a temporary 
151.36  or permanent order for child support or maintenance, shall be 
152.1   considered income to the recipient.  For these purposes, a 
152.2   "methodology" does not include an asset or income standard, or 
152.3   accounting method, or method of determining effective dates. 
152.4      Sec. 26.  Minnesota Statutes 1996, section 256B.057, 
152.5   subdivision 2a, is amended to read: 
152.6      Subd. 2a.  [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS.] 
152.7   Eligibility for medical assistance for a person under age 21, 
152.8   and the person's parents who are eligible under section 
152.9   256B.055, subdivision 3, and who live in the same household as 
152.10  the person eligible under age 21, must be determined without 
152.11  regard to based on the asset standards established in section 
152.12  256B.056. 
152.13     Sec. 27.  Minnesota Statutes 1996, section 256D.09, 
152.14  subdivision 6, is amended to read: 
152.15     Subd. 6.  [RECOVERY OF OVERPAYMENTS.] (a) If an amount of 
152.16  general assistance or family general assistance is paid to a 
152.17  recipient in excess of the payment due, it shall be recoverable 
152.18  by the county agency.  The agency shall give written notice to 
152.19  the recipient of its intention to recover the overpayment. 
152.20     (b) When an overpayment occurs, the county agency shall 
152.21  recover the overpayment from a current recipient by reducing the 
152.22  amount of aid payable to the assistance unit of which the 
152.23  recipient is a member, for one or more monthly assistance 
152.24  payments, until the overpayment is repaid.  All county agencies 
152.25  in the state shall reduce the assistance payment by three ten 
152.26  percent of the assistance unit's standard of need in nonfraud 
152.27  cases and 20 percent where fraud has occurred, or the amount of 
152.28  the monthly payment, whichever is less, for all overpayments. 
152.29  whether or not the overpayment is due solely to agency error.  
152.30  The amount of this reduction is ten percent, if the overpayment 
152.31  is due solely to having wrongfully obtained assistance, whether 
152.32  based on: 
152.33     (1) a court order; 
152.34     (2) the finding of an administrative fraud disqualification 
152.35  hearing or the waiver of such a hearing; or 
152.36     (3) a confession or judgment containing an admission of an 
153.1   intentional program violation. 
153.2      (c) In cases when there is both an overpayment and 
153.3   underpayment, the county agency shall offset one against the 
153.4   other in correcting the payment. 
153.5      (d) Overpayments may also be voluntarily repaid, in part or 
153.6   in full, by the individual, in addition to the aid reductions 
153.7   provided in this subdivision, to include further voluntary 
153.8   reductions in the grant level agreed to in writing by the 
153.9   individual, until the total amount of the overpayment is repaid. 
153.10     (e) The county agency shall make reasonable efforts to 
153.11  recover overpayments to persons no longer on assistance under 
153.12  standards adopted in rule by the commissioner of human 
153.13  services.  The county agency need not attempt to recover 
153.14  overpayments of less than $35 paid to an individual no longer on 
153.15  assistance if the individual does not receive assistance again 
153.16  within three years, unless the individual has been convicted of 
153.17  violating section 256.98. 
153.18     Sec. 28.  Minnesota Statutes 1996, section 270A.03, 
153.19  subdivision 5, is amended to read: 
153.20     Subd. 5.  [DEBT.] "Debt" means a legal obligation of a 
153.21  natural person to pay a fixed and certain amount of money, which 
153.22  equals or exceeds $25 and which is due and payable to a claimant 
153.23  agency.  The term includes criminal fines imposed under section 
153.24  609.10 or 609.125 and restitution.  A debt may arise under a 
153.25  contractual or statutory obligation, a court order, or other 
153.26  legal obligation, but need not have been reduced to judgment.  
153.27     A debt does not include includes any legal obligation of a 
153.28  current recipient of assistance which is based on overpayment of 
153.29  an assistance grant. 
153.30     A debt does not include any legal obligation to pay a 
153.31  claimant agency for medical care, including hospitalization if 
153.32  the income of the debtor at the time when the medical care was 
153.33  rendered does not exceed the following amount: 
153.34     (1) for an unmarried debtor, an income of $6,400 or less; 
153.35     (2) for a debtor with one dependent, an income of $8,200 or 
153.36  less; 
154.1      (3) for a debtor with two dependents, an income of $9,700 
154.2   or less; 
154.3      (4) for a debtor with three dependents, an income of 
154.4   $11,000 or less; 
154.5      (5) for a debtor with four dependents, an income of $11,600 
154.6   or less; and 
154.7      (6) for a debtor with five or more dependents, an income of 
154.8   $12,100 or less.  
154.9      The income amounts in this subdivision shall be adjusted 
154.10  for inflation for debts incurred in calendar years 1991 and 
154.11  thereafter.  The dollar amount of each income level that applied 
154.12  to debts incurred in the prior year shall be increased in the 
154.13  same manner as provided in section 290.06, subdivision 2d, for 
154.14  the expansion of the tax rate brackets. 
154.15     Sec. 29.  Minnesota Statutes 1996, section 388.23, 
154.16  subdivision 1, is amended to read: 
154.17     Subdivision 1.  [AUTHORITY.] The county attorney, or any 
154.18  deputy or assistant county attorney whom the county attorney 
154.19  authorizes in writing, has the authority to subpoena and require 
154.20  the production of any records of telephone companies, cellular 
154.21  phone companies, paging companies, electric companies, gas 
154.22  companies, water utilities, chemical suppliers, hotels and 
154.23  motels, pawn shops, airlines, buses, taxis, and other entities 
154.24  engaged in the business of transporting people, and freight 
154.25  companies, warehousing companies, self-service storage 
154.26  facilities, package delivery companies, and other entities 
154.27  engaged in the businesses of transport, storage, or delivery, 
154.28  and records of the existence of safe deposit box account numbers 
154.29  and customer savings and checking account numbers maintained by 
154.30  financial institutions and safe deposit companies, insurance 
154.31  records relating to the monetary payment or settlement of 
154.32  claims, and wage and employment records of an applicant or 
154.33  recipient of public assistance who is the subject of a welfare 
154.34  fraud investigation relating to eligibility information for 
154.35  public assistance programs.  Subpoenas may only be issued for 
154.36  records that are relevant to an ongoing legitimate law 
155.1   enforcement investigation.  Administrative subpoenas may only be 
155.2   issued in welfare fraud cases if there is probable cause to 
155.3   believe a crime has been committed.  This provision applies only 
155.4   to the records of business entities and does not extend to 
155.5   private individuals or their dwellings.  Subpoenas may only be 
155.6   served by peace officers as defined by section 626.84, 
155.7   subdivision 1, paragraph (c). 
155.8      Sec. 30.  Minnesota Statutes 1996, section 393.07, 
155.9   subdivision 10, is amended to read: 
155.10     Subd. 10.  [FEDERAL FOOD STAMP PROGRAM AND THE MATERNAL AND 
155.11  CHILD NUTRITION ACT.] (a) The local social services agency shall 
155.12  establish and administer the food stamp program pursuant 
155.13  according to rules of the commissioner of human services, the 
155.14  supervision of the commissioner as specified in section 256.01, 
155.15  and all federal laws and regulations.  The commissioner of human 
155.16  services shall monitor food stamp program delivery on an ongoing 
155.17  basis to ensure that each county complies with federal laws and 
155.18  regulations.  Program requirements to be monitored include, but 
155.19  are not limited to, number of applications, number of approvals, 
155.20  number of cases pending, length of time required to process each 
155.21  application and deliver benefits, number of applicants eligible 
155.22  for expedited issuance, length of time required to process and 
155.23  deliver expedited issuance, number of terminations and reasons 
155.24  for terminations, client profiles by age, household composition 
155.25  and income level and sources, and the use of phone certification 
155.26  and home visits.  The commissioner shall determine the 
155.27  county-by-county and statewide participation rate.  
155.28     (b) On July 1 of each year, the commissioner of human 
155.29  services shall determine a statewide and county-by-county food 
155.30  stamp program participation rate.  The commissioner may 
155.31  designate a different agency to administer the food stamp 
155.32  program in a county if the agency administering the program 
155.33  fails to increase the food stamp program participation rate 
155.34  among families or eligible individuals, or comply with all 
155.35  federal laws and regulations governing the food stamp program.  
155.36  The commissioner shall review agency performance annually to 
156.1   determine compliance with this paragraph. 
156.2      (c) A person who commits any of the following acts has 
156.3   violated section 256.98 or 609.821, or both, and is subject to 
156.4   both the criminal and civil penalties provided under those 
156.5   sections: 
156.6      (1) obtains or attempts to obtain, or aids or abets any 
156.7   person to obtain by means of a willfully false willful statement 
156.8   or representation misrepresentation, or intentional concealment 
156.9   of a material fact, food stamps or vouchers issued according to 
156.10  sections 145.891 to 145.897 to which the person is not entitled 
156.11  or in an amount greater than that to which that person is 
156.12  entitled or which specify nutritional supplements to which that 
156.13  person is not entitled; or 
156.14     (2) presents or causes to be presented, coupons or vouchers 
156.15  issued according to sections 145.891 to 145.897 for payment or 
156.16  redemption knowing them to have been received, transferred or 
156.17  used in a manner contrary to existing state or federal law; or 
156.18     (3) willfully uses, possesses, or transfers food stamp 
156.19  coupons or, authorization to purchase cards or vouchers issued 
156.20  according to sections 145.891 to 145.897 in any manner contrary 
156.21  to existing state or federal law, rules, or regulations; or 
156.22     (4) buys or sells food stamp coupons, authorization to 
156.23  purchase cards or, other assistance transaction devices, 
156.24  vouchers issued according to sections 145.891 to 145.897, or any 
156.25  food obtained through the redemption of vouchers issued 
156.26  according to sections 145.891 to 145.897 for cash or 
156.27  consideration other than eligible food. 
156.28     (d) A peace officer or welfare fraud investigator may 
156.29  confiscate food stamps, authorization to purchase cards, or 
156.30  other assistance transaction devices found in the possession of 
156.31  any person who is neither a recipient of the food stamp program 
156.32  nor otherwise authorized to possess and use such materials.  
156.33  Confiscated property shall be disposed of as the commissioner 
156.34  may direct and consistent with state and federal food stamp 
156.35  law.  The confiscated property must be retained for a period of 
156.36  not less than 30 days to allow any affected person to appeal the 
157.1   confiscation under section 256.045. 
157.2      (e) Food stamp overpayment claims which are due in whole or 
157.3   in part to client error shall be established by the county 
157.4   agency for a period of six years from the date of any resultant 
157.5   overpayment.  
157.6      (f) With regard to the federal tax revenue offset program 
157.7   only, recovery incentives authorized by the federal food and 
157.8   consumer service shall be retained at the rate of 50 percent by 
157.9   the state agency and 50 percent by the certifying county agency. 
157.10     (g) A peace officer, welfare fraud investigator, federal 
157.11  law enforcement official, or the commissioner of health may 
157.12  confiscate vouchers found in the possession of any person who is 
157.13  neither issued vouchers under sections 145.891 to 145.897, nor 
157.14  otherwise authorized to possess and use such vouchers.  
157.15  Confiscated property shall be disposed of as the commissioner of 
157.16  health may direct and consistent with state and federal law.  
157.17  The confiscated property must be retained for a period of not 
157.18  less than 30 days. 
157.19     Sec. 31.  [FUNDING AVAILABILITY.] 
157.20     Unexpended funds appropriated for the provision of program 
157.21  integrity activities for fiscal year 1998 will also be available 
157.22  to the commissioner to fund fraud prevention and control 
157.23  initiatives and do not cancel but are available to the 
157.24  commissioner for these purposes for fiscal year 1999.  
157.25  Unexpended funds may be transferred between the fraud prevention 
157.26  investigation program and fraud control programs to promote the 
157.27  provisions of sections 256.983 and 256.9861. 
157.28     Sec. 32.  [EFFECTIVE DATE.] 
157.29     Sections 1 to 31 are effective July 1, 1997. 
157.30                             ARTICLE 3
157.31        ACCESS TO CHILD SUPPORT ENFORCEMENT CENTRAL REGISTRY
157.32     Section 1.  Minnesota Statutes 1996, section 13.99, is 
157.33  amended by adding a subdivision to read: 
157.34     Subd. 100b.  [ACCESS TO CHILD SUPPORT ENFORCEMENT CENTRAL 
157.35  REGISTRY.] Data on newly hired employees maintained by the 
157.36  responsible authority for child support enforcement are governed 
158.1   by section 256.998. 
158.2      Sec. 2.  Minnesota Statutes 1996, section 256.998, is 
158.3   amended by adding a subdivision to read: 
158.4      Subd. 10.  [USE OF WORK REPORTING SYSTEM INFORMATION IN 
158.5   DETERMINING ELIGIBILITY FOR PUBLIC ASSISTANCE PROGRAMS.] The 
158.6   commissioner of human services is authorized to use information 
158.7   from the work reporting system to determine eligibility for 
158.8   applicants and recipients of public assistance programs 
158.9   administered by the department of human services.  Data 
158.10  including names, dates of birth, and social security numbers of 
158.11  people applying for or receiving public assistance benefits will 
158.12  be compared to the work reporting system information to 
158.13  determine if applicants or recipients of public assistance are 
158.14  employed.  County agencies will be notified of discrepancies in 
158.15  information obtained from the work reporting system. 
158.16     Sec. 3.  Minnesota Statutes 1996, section 256.998, is 
158.17  amended by adding a subdivision to read: 
158.18     Subd. 11.  [ACTION ON INFORMATION.] Upon receipt of the 
158.19  discrepant information, county agencies will notify clients of 
158.20  the information and request verification of employment status 
158.21  and earnings.  County agencies must attempt to resolve the 
158.22  discrepancy within 45 days of receipt of the information. 
158.23     Sec. 4.  Minnesota Statutes 1996, section 256.998, is 
158.24  amended by adding a subdivision to read: 
158.25     Subd. 12.  [CLIENT NOTIFICATION.] Persons applying for 
158.26  public assistance programs administered by the department of 
158.27  human services will be notified at the time of application that 
158.28  data including their name, date of birth, and social security 
158.29  number will be shared with the work reporting system to 
158.30  determine possible employment.  All current public assistance 
158.31  recipients will be notified of this provision prior to its 
158.32  implementation. 
158.33     Sec. 5.  [EFFECTIVE DATE.] 
158.34     Sections 1 to 4 are effective July 1, 1997. 
158.35                             ARTICLE 4
158.36                     ASSISTANCE PROGRAM CHANGES
159.1      Section 1.  Minnesota Statutes 1996, section 256.031, is 
159.2   amended by adding a subdivision to read: 
159.3      Subd. 1b.  [USE OF STATE AUTHORITY AFTER REPEAL.] For 
159.4   purposes of sections 256.031 to 256.0361, and 256.047, the 
159.5   provisions of law under Minnesota Statutes 1996, sections 256.72 
159.6   to 256.87 and sections 256D.01 to 256D.21, remain in effect 
159.7   after repeal. 
159.8      Sec. 2.  Minnesota Statutes 1996, section 256.031, is 
159.9   amended by adding a subdivision to read: 
159.10     Subd. 6.  [END OF FIELD TRIALS.] Upon agreement with the 
159.11  federal government, the field trials of the Minnesota family 
159.12  investment plan will end June 30, 1998.  Families in the 
159.13  comparison group under section 256.031, subdivision 3, paragraph 
159.14  (d)(i), receiving aid to families with dependent children under 
159.15  sections 256.72 to 256.87 in effect until January 1, 1998, and 
159.16  STRIDE services under section 256.736 will continue in those 
159.17  programs until June 30, 1998.  After June 30, 1998, families 
159.18  which cease receiving assistance under the Minnesota family 
159.19  investment plan and comparison families who cease receiving 
159.20  assistance under AFDC and STRIDE who are eligible for the 
159.21  statewide Minnesota family investment plan, medical assistance, 
159.22  general assistance medical care, or the food stamp program shall 
159.23  be placed with their consent on the programs for which they are 
159.24  eligible. 
159.25     Sec. 3.  Minnesota Statutes 1996, section 256.033, 
159.26  subdivision 1, is amended to read: 
159.27     Subdivision 1.  [ELIGIBILITY CONDITIONS.] (a) A family is 
159.28  entitled to assistance under the Minnesota family investment 
159.29  plan if the family is assigned to a test group in the evaluation 
159.30  as provided in section 256.031, subdivision 3, paragraph (d), 
159.31  and: 
159.32     (1) the family meets the definition of assistance unit 
159.33  under section 256.032, subdivision 1a; 
159.34     (2) the family's resources not excluded under subdivision 3 
159.35  do not exceed $2,000; 
159.36     (3) the family can verify citizenship or lawful resident 
160.1   alien status; and 
160.2      (4) the family provides or applies for a social security 
160.3   number for each member of the family receiving assistance under 
160.4   the family investment plan. 
160.5      (b) A family is eligible for the family investment plan if 
160.6   the net income is less than the transitional standard as defined 
160.7   in section 256.032, subdivision 13, for that size and 
160.8   composition of family.  In determining available net income, the 
160.9   provisions in subdivision 2 shall apply. 
160.10     (c) Upon application, a family is initially eligible for 
160.11  the family investment plan if the family's gross income does not 
160.12  exceed the applicable transitional standard of assistance for 
160.13  that family as defined under section 256.032, subdivision 13, 
160.14  after deducting: 
160.15     (1) 18 percent to cover taxes; and 
160.16     (2) actual dependent care costs up to the maximum 
160.17  disregarded under United States Code, title 42, section 
160.18  602(a)(8)(A)(iii); and 
160.19     (3) $50 of child support collected in that month. 
160.20     (d) A family can remain eligible for the program if: 
160.21     (1) it meets the conditions in subdivision 1a; and 
160.22     (2) its income is below the transitional standard in 
160.23  section 256.032, subdivision 13, allowing for income exclusions 
160.24  in subdivision 2 and after applying the family investment plan 
160.25  treatment of earnings under subdivision 1a. 
160.26     Sec. 4.  Minnesota Statutes 1996, section 256.033, 
160.27  subdivision 1a, is amended to read: 
160.28     Subd. 1a.  [TREATMENT OF INCOME FOR THE PURPOSES OF 
160.29  CONTINUED ELIGIBILITY.] To help families during their transition 
160.30  from the Minnesota family investment plan to self-sufficiency, 
160.31  the following income supports are available: 
160.32     (a) The $30 and one-third and $90 disregards allowed under 
160.33  section 256.74, subdivision 1, and the 20 percent earned income 
160.34  deduction allowed under the federal Food Stamp Act of 1977, as 
160.35  amended, are replaced with a single disregard of not less than 
160.36  35 percent of gross earned income to cover taxes and other 
161.1   work-related expenses and to reward the earning of income.  This 
161.2   single disregard is available for the entire time a family 
161.3   receives assistance through the Minnesota family investment plan.
161.4      (b) The dependent care deduction, as prescribed under 
161.5   section 256.74, subdivision 1, and United States Code, title 7, 
161.6   section 2014(e), is replaced for families with earned income who 
161.7   need assistance with dependent care with an entitlement to a 
161.8   dependent care subsidy from money appropriated for the Minnesota 
161.9   family investment plan. 
161.10     (c) The family wage level, as defined in section 256.032, 
161.11  subdivision 8, allows families to supplement earned income with 
161.12  assistance received through the Minnesota family investment 
161.13  plan.  If, after earnings are adjusted according to the 
161.14  disregard described in paragraph (a), earnings have raised 
161.15  family income to a level equal to or greater than the family 
161.16  wage level, the amount of assistance received through the 
161.17  Minnesota family investment plan must be reduced. 
161.18     (d) The first $50 of any timely support payment for a month 
161.19  received by the public agency responsible for child support 
161.20  enforcement shall be paid to the family and disregarded in 
161.21  determining eligibility and the amount of assistance in 
161.22  accordance with United States Code, title 42, sections 
161.23  602(a)(8)(A)(vi) and 657(b)(1).  This paragraph applies 
161.24  regardless of whether the caregiver is in transitional status, 
161.25  is exempt from developing or complying with the terms of a 
161.26  family support agreement, or has had a sanction imposed under 
161.27  subdivision 3.  
161.28     Sec. 5.  Minnesota Statutes 1996, section 256.74, 
161.29  subdivision 1, is amended to read: 
161.30     Subdivision 1.  [AMOUNT.] The amount of assistance which 
161.31  shall be granted to or on behalf of any dependent child and 
161.32  parent or other needy eligible relative caring for the dependent 
161.33  child shall be determined by the county agency in accordance 
161.34  with according to rules promulgated by the commissioner and 
161.35  shall be sufficient, when added to all other income and support 
161.36  available to the child, to provide the child with a reasonable 
162.1   subsistence compatible with decency and health.  To the extent 
162.2   permissible under federal law, an eligible relative caretaker or 
162.3   parent shall have the option to include in the assistance unit 
162.4   the needs, income, and resources of the following essential 
162.5   persons who are not otherwise eligible for AFDC in effect until 
162.6   January 1, 1998, because they do not qualify as a caretaker or 
162.7   as a dependent child: 
162.8      (1) a parent or relative caretaker's spouse and 
162.9   stepchildren; or 
162.10     (2) blood or legally adopted relatives who are under the 
162.11  age of 18 or under the age of 19 years who are regularly 
162.12  attending as a full-time student, and are expected to complete 
162.13  before or during the month of their 19th birthday, a high school 
162.14  or secondary level course of vocational or technical training 
162.15  designed to prepare students for gainful employment.  The amount 
162.16  shall be based on the method of budgeting required in Public Law 
162.17  Number 97-35, section 2315, United States Code, title 42, 
162.18  section 602, as amended and federal regulations at Code of 
162.19  Federal Regulations, title 45, section 233.  Nonrecurring lump 
162.20  sum income received by an AFDC a family receiving AFDC in effect 
162.21  until January 1, 1998, must be budgeted in the normal 
162.22  retrospective cycle.  When the family's income, after 
162.23  application of the applicable disregards, exceeds the need 
162.24  standard for the family because of receipt of earned or unearned 
162.25  lump sum income, the family will be ineligible for the full 
162.26  number of months derived by dividing the sum of the lump sum 
162.27  income and other income by the monthly need standard for a 
162.28  family of that size.  Any income remaining from this calculation 
162.29  is income in the first month following the period of 
162.30  ineligibility.  The first month of ineligibility is the payment 
162.31  month that corresponds with the budget month in which the lump 
162.32  sum income was received.  For purposes of applying the lump sum 
162.33  provision, family includes those persons defined in the Code of 
162.34  Federal Regulations, title 45, section 233.20(a)(3)(ii)(F).  A 
162.35  period of ineligibility must be shortened when the standard of 
162.36  need increases and the amount the family would have received 
163.1   also changes, an amount is documented as stolen, an amount is 
163.2   unavailable because a member of the family left the household 
163.3   with that amount and has not returned, an amount is paid by the 
163.4   family during the period of ineligibility to cover a cost that 
163.5   would otherwise qualify for emergency assistance, or the family 
163.6   incurs and pays for medical expenses which would have been 
163.7   covered by medical assistance if eligibility existed.  In making 
163.8   its determination the county agency shall disregard the 
163.9   following from family income:  
163.10     (1) all the earned income of each dependent child applying 
163.11  for AFDC in effect until January 1, 1998, if the child is a 
163.12  full-time student and all of the earned income of each dependent 
163.13  child receiving AFDC in effect until January 1, 1998, who is a 
163.14  full-time student or is a part-time student who is not a 
163.15  full-time employee.  A student is one who is attending a school, 
163.16  college, or university, or a course of vocational or technical 
163.17  training designed to fit students for gainful employment and 
163.18  includes a participant in the Job Corps program under the Job 
163.19  Training Partnership Act (JTPA).  The county agency shall also 
163.20  disregard all income of each dependent child applying for or 
163.21  receiving AFDC in effect until January 1, 1998, when the income 
163.22  is derived from a program carried out under JTPA, except that 
163.23  disregard of earned income may not exceed six months per 
163.24  calendar year; 
163.25     (2) all educational assistance, except the county agency 
163.26  shall count graduate student teaching assistantships, 
163.27  fellowships, and other similar paid work as earned income and, 
163.28  after allowing deductions for any unmet and necessary 
163.29  educational expenses, shall count scholarships or grants awarded 
163.30  to graduate students that do not require teaching or research as 
163.31  unearned income; 
163.32     (3) the first $90 of each individual's earned income.  For 
163.33  self-employed persons, the expenses directly related to 
163.34  producing goods and services and without which the goods and 
163.35  services could not be produced shall be disregarded 
163.36  pursuant according to rules promulgated by the commissioner; 
164.1      (4) thirty dollars plus one-third of each individual's 
164.2   earned income for individuals found otherwise eligible to 
164.3   receive aid or who have received aid in one of the four months 
164.4   before the month of application.  With respect to any month, the 
164.5   county welfare agency shall not disregard under this clause any 
164.6   earned income of any person who has:  (a) reduced earned income 
164.7   without good cause within 30 days preceding any month in which 
164.8   an assistance payment is made; (b) refused without good cause to 
164.9   accept an offer of suitable employment; (c) left employment or 
164.10  reduced earnings without good cause and applied for assistance 
164.11  so as to be able later to return to employment with the 
164.12  advantage of the income disregard; or (d) failed without good 
164.13  cause to make a timely report of earned income in accordance 
164.14  with according to rules promulgated by the commissioner of human 
164.15  services.  Persons who are already employed and who apply for 
164.16  assistance shall have their needs computed with full account 
164.17  taken of their earned and other income.  If earned and other 
164.18  income of the family is less than need, as determined on the 
164.19  basis of public assistance standards, the county agency shall 
164.20  determine the amount of the grant by applying the disregard of 
164.21  income provisions.  The county agency shall not disregard earned 
164.22  income for persons in a family if the total monthly earned and 
164.23  other income exceeds their needs, unless for any one of the four 
164.24  preceding months their needs were met in whole or in part by a 
164.25  grant payment.  The disregard of $30 and one-third of earned 
164.26  income in this clause shall be applied to the individual's 
164.27  income for a period not to exceed four consecutive months.  Any 
164.28  month in which the individual loses this disregard because of 
164.29  the provisions of subclauses (a) to (d) shall be considered as 
164.30  one of the four months.  An additional $30 work incentive must 
164.31  be available for an eight-month period beginning in the month 
164.32  following the last month of the combined $30 and one-third work 
164.33  incentive.  This period must be in effect whether or not the 
164.34  person has earned income or is eligible for AFDC in effect until 
164.35  January 1, 1998.  To again qualify for the earned income 
164.36  disregards under this clause, the individual must not be a 
165.1   recipient of aid for a period of 12 consecutive months.  When an 
165.2   assistance unit becomes ineligible for aid due to the fact that 
165.3   these disregards are no longer applied to income, the assistance 
165.4   unit shall be eligible for medical assistance benefits for a 
165.5   12-month period beginning with the first month of AFDC 
165.6   ineligibility for AFDC in effect until January 1, 1998; 
165.7      (5) an amount equal to the actual expenditures for the care 
165.8   of each dependent child or incapacitated individual living in 
165.9   the same home and receiving aid, not to exceed:  (a) $175 for 
165.10  each individual age two and older, and $200 for each individual 
165.11  under the age of two.  The dependent care disregard must be 
165.12  applied after all other disregards under this subdivision have 
165.13  been applied; 
165.14     (6) the first $50 per assistance unit of the monthly 
165.15  support obligation collected by the support and recovery (IV-D) 
165.16  unit.  The first $50 of periodic support payments collected by 
165.17  the public authority responsible for child support enforcement 
165.18  from a person with a legal obligation to pay support for a 
165.19  member of the assistance unit must be paid to the assistance 
165.20  unit within 15 days after the end of the month in which the 
165.21  collection of the periodic support payments occurred and must be 
165.22  disregarded when determining the amount of assistance.  A review 
165.23  of a payment decision under this clause must be requested within 
165.24  30 days after receiving the notice of collection of assigned 
165.25  support or within 90 days after receiving the notice if good 
165.26  cause can be shown for not making the request within the 30-day 
165.27  limit; 
165.28     (7) that portion of an insurance settlement earmarked and 
165.29  used to pay medical expenses, funeral and burial costs, or to 
165.30  repair or replace insured property; and 
165.31     (8) (7) all earned income tax credit payments received by 
165.32  the family as a refund of federal income taxes or made as 
165.33  advance payments by an employer.  
165.34     All payments made pursuant according to a court order for 
165.35  the support of children not living in the assistance unit's 
165.36  household shall be disregarded from the income of the person 
166.1   with the legal obligation to pay support, provided that, if 
166.2   there has been a change in the financial circumstances of the 
166.3   person with the legal obligation to pay support since the 
166.4   support order was entered, the person with the legal obligation 
166.5   to pay support has petitioned for a modification of the support 
166.6   order. 
166.7      Sec. 6.  Minnesota Statutes 1996, section 256.82, 
166.8   subdivision 2, is amended to read: 
166.9      Subd. 2.  [FOSTER CARE MAINTENANCE PAYMENTS.] 
166.10  Notwithstanding subdivision 1, for the purposes of foster care 
166.11  maintenance payments under Title IV-E of the federal Social 
166.12  Security Act, United States Code, title 42, sections 670 to 676, 
166.13  during the period beginning July 1, 1985, and ending December 
166.14  31, 1985, the county paying the maintenance costs shall be 
166.15  reimbursed for the costs from those federal funds available for 
166.16  that purpose together with an amount of state funds equal to a 
166.17  percentage of the difference between the total cost and the 
166.18  federal funds made available for payment.  This percentage shall 
166.19  not exceed the percentage specified in subdivision 1 for the aid 
166.20  to families with dependent children program in effect until 
166.21  January 1, 1998.  In the event that the state appropriation for 
166.22  this purpose is less than the state percentage set in 
166.23  subdivision 1, the reimbursement shall be ratably reduced to the 
166.24  county.  Beginning January 1, 1986, for the purpose of foster 
166.25  care maintenance payments under Title IV-E of the Social 
166.26  Security Act, United States Code, title 42, sections 670 to 676, 
166.27  the county paying the maintenance costs must be reimbursed for 
166.28  the costs from the federal money available for the 
166.29  purpose.  Beginning July 1, 1997, for the purposes of 
166.30  determining a child's eligibility under title IV-E of the Social 
166.31  Security Act, the placing agency shall use AFDC requirements in 
166.32  effect on June 1, 1995.  
166.33     Sec. 7.  Minnesota Statutes 1996, section 256B.055, is 
166.34  amended by adding a subdivision to read: 
166.35     Subd. 3a.  [MFIP-S FAMILIES.] Beginning January 1, 1998, or 
166.36  upon receipt of federal approval if later, medical assistance 
167.1   may be paid for a person receiving public assistance under the 
167.2   MFIP-S program. 
167.3      Sec. 8.  Minnesota Statutes 1996, section 256B.055, is 
167.4   amended by adding a subdivision to read: 
167.5      Subd. 3b.  [FAMILIES FORMERLY ELIGIBLE FOR AFDC.] Beginning 
167.6   January 1, 1998, or upon receipt of federal approval if later, 
167.7   medical assistance may be paid for a person who would have been 
167.8   eligible for public assistance under the income and resource 
167.9   standards and deprivation requirements, or who would have been 
167.10  eligible but for excess income or assets, under the state's AFDC 
167.11  plan in effect as of July 16, 1996, as required by the Personal 
167.12  Responsibility and Work Opportunity Reconciliation Act of 1996 
167.13  (PRWORA), Public Law Number 104-193. 
167.14     Sec. 9.  Minnesota Statutes 1996, section 256B.055, 
167.15  subdivision 5, is amended to read: 
167.16     Subd. 5.  [PREGNANT WOMEN; DEPENDENT UNBORN CHILD.] Medical 
167.17  assistance may be paid for a pregnant woman who has written 
167.18  verification of a positive pregnancy test from a physician or 
167.19  licensed registered nurse, who meets the other eligibility 
167.20  criteria of this section and who would be categorically eligible 
167.21  for assistance under the aid to families with dependent children 
167.22  program state's AFDC plan in effect as of July 16, 1996, as 
167.23  required by the Personal Responsibility and Work Opportunity 
167.24  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
167.25  if the child had been born and was living with the woman.  For 
167.26  purposes of this subdivision, a woman is considered pregnant for 
167.27  60 days postpartum. 
167.28     Sec. 10.  Minnesota Statutes 1996, section 256B.056, 
167.29  subdivision 1a, is amended to read: 
167.30     Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
167.31  specifically required by state law or rule or federal law or 
167.32  regulation, the methodologies used in counting income and assets 
167.33  to determine eligibility for medical assistance for persons 
167.34  whose eligibility category is based on blindness, disability, or 
167.35  age of 65 or more years, the methodologies for the supplemental 
167.36  security income program shall be used, except that payments made 
168.1   pursuant according to a court order for the support of children 
168.2   shall be excluded from income in an amount not to exceed the 
168.3   difference between the applicable income standard used in the 
168.4   state's medical assistance program for aged, blind, and disabled 
168.5   persons and the applicable income standard used in the state's 
168.6   medical assistance program for families with children.  
168.7   Exclusion of court-ordered child support payments is subject to 
168.8   the condition that if there has been a change in the financial 
168.9   circumstances of the person with the legal obligation to pay 
168.10  support since the support order was entered, the person with the 
168.11  legal obligation to pay support has petitioned for modification 
168.12  of the support order.  For families and children, which includes 
168.13  all other eligibility categories, the methodologies for the aid 
168.14  to families with dependent children program under section 256.73 
168.15  under the state's AFDC plan in effect as of July 16, 1996, as 
168.16  required by the Personal Responsibility and Work Opportunity 
168.17  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
168.18  shall be used.  Effective upon federal approval, in-kind 
168.19  contributions to, and payments made on behalf of, a recipient, 
168.20  by an obligor, in satisfaction of or in addition to a temporary 
168.21  or permanent order for child support or maintenance, shall be 
168.22  considered income to the recipient.  For these purposes, a 
168.23  "methodology" does not include an asset or income standard, or 
168.24  accounting method, or method of determining effective dates. 
168.25     Sec. 11.  Minnesota Statutes 1996, section 256B.056, 
168.26  subdivision 3, is amended to read: 
168.27     Subd. 3.  [ASSET LIMITATIONS.] To be eligible for medical 
168.28  assistance, a person must not individually own more than $3,000 
168.29  in assets, or if a member of a household with two family 
168.30  members, (husband and wife, or parent and child), the household 
168.31  must not own more than $6,000 in assets, plus $200 for each 
168.32  additional legal dependent.  In addition to these maximum 
168.33  amounts, an eligible individual or family may accrue interest on 
168.34  these amounts, but they must be reduced to the maximum at the 
168.35  time of an eligibility redetermination.  The accumulation of the 
168.36  clothing and personal needs allowance pursuant according to 
169.1   section 256B.35 must also be reduced to the maximum at the time 
169.2   of the eligibility redetermination.  The value of assets that 
169.3   are not considered in determining eligibility for medical 
169.4   assistance is the value of those assets that are excluded by the 
169.5   aid to families with dependent children program excluded under 
169.6   the AFDC state plan as of July 16, 1996, as required by the 
169.7   Personal Responsibility and Work Opportunity Reconciliation Act 
169.8   of 1996 (PRWORA), Public Law Number 104-193, for families and 
169.9   children, and the supplemental security income program for aged, 
169.10  blind, and disabled persons, with the following exceptions: 
169.11     (a) Household goods and personal effects are not considered.
169.12     (b) Capital and operating assets of a trade or business 
169.13  that the local agency determines are necessary to the person's 
169.14  ability to earn an income are not considered. 
169.15     (c) Motor vehicles are excluded to the same extent excluded 
169.16  by the supplemental security income program. 
169.17     (d) Assets designated as burial expenses are excluded to 
169.18  the same extent excluded by the supplemental security income 
169.19  program. 
169.20     Sec. 12.  Minnesota Statutes 1996, section 256B.056, 
169.21  subdivision 4, is amended to read: 
169.22     Subd. 4.  [INCOME.] To be eligible for medical assistance, 
169.23  a person must not have, or anticipate receiving, semiannual 
169.24  income in excess of 120 percent of the income standards by 
169.25  family size used in under the aid to families with dependent 
169.26  children program state plan as of July 16, 1996, as required by 
169.27  the Personal Responsibility and Work Opportunity Reconciliation 
169.28  Act of 1996 (PRWORA), Public Law Number 104-193, except that 
169.29  families and children may have an income up to 133-1/3 percent 
169.30  of the AFDC income standard.  In computing income to determine 
169.31  eligibility of persons who are not residents of long-term care 
169.32  facilities, the commissioner shall disregard increases in income 
169.33  as required by Public Law Numbers 94-566, section 503; 99-272; 
169.34  and 99-509.  Veterans aid and attendance benefits are considered 
169.35  income to the recipient. 
169.36     Sec. 13.  Minnesota Statutes 1996, section 256B.057, 
170.1   subdivision 1, is amended to read: 
170.2      Subdivision 1.  [PREGNANT WOMEN AND INFANTS.] (a) An infant 
170.3   less than one year of age or a pregnant woman who has written 
170.4   verification of a positive pregnancy test from a physician or 
170.5   licensed registered nurse, is eligible for medical assistance if 
170.6   countable family income is equal to or less than 275 percent of 
170.7   the federal poverty guideline for the same family size.  For 
170.8   purposes of this subdivision, "countable family income" means 
170.9   the amount of income considered available using the methodology 
170.10  of the AFDC program under the state's AFDC plan as of July 16, 
170.11  1996, as required by the Personal Responsibility and Work 
170.12  Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
170.13  Number 104-193, except for the earned income disregard and 
170.14  employment deductions.  An amount equal to the amount of earned 
170.15  income exceeding 275 percent of the federal poverty guideline, 
170.16  up to a maximum of the amount by which the combined total of 185 
170.17  percent of the federal poverty guideline plus the earned income 
170.18  disregards and deductions of the AFDC program under the state's 
170.19  AFDC plan as of July 16, 1996, as required by the Personal 
170.20  Responsibility and Work Opportunity Reconciliation Act of 1996 
170.21  (PRWORA), Public Law Number 104-193, exceeds 275 percent of the 
170.22  federal poverty guideline will be deducted for pregnant women 
170.23  and infants less than one year of age.  Eligibility for a 
170.24  pregnant woman or infant less than one year of age under this 
170.25  subdivision must be determined without regard to asset standards 
170.26  established in section 256B.056, subdivision 3.  
170.27     (b) An infant born on or after January 1, 1991, to a woman 
170.28  who was eligible for and receiving medical assistance on the 
170.29  date of the child's birth shall continue to be eligible for 
170.30  medical assistance without redetermination until the child's 
170.31  first birthday, as long as the child remains in the woman's 
170.32  household. 
170.33     Sec. 14.  Minnesota Statutes 1996, section 256B.057, 
170.34  subdivision 1b, is amended to read: 
170.35     Subd. 1b.  [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 
170.36  This subdivision supersedes subdivision 1 as long as the 
171.1   Minnesota health care reform waiver remains in effect.  When the 
171.2   waiver expires, the commissioner of human services shall publish 
171.3   a notice in the State Register and notify the revisor of 
171.4   statutes.  An infant less than two years of age or a pregnant 
171.5   woman who has written verification of a positive pregnancy test 
171.6   from a physician or licensed registered nurse, is eligible for 
171.7   medical assistance if countable family income is equal to or 
171.8   less than 275 percent of the federal poverty guideline for the 
171.9   same family size.  For purposes of this subdivision, "countable 
171.10  family income" means the amount of income considered available 
171.11  using the methodology of the AFDC program under the state's AFDC 
171.12  plan as of July 16, 1996, as required by the Personal 
171.13  Responsibility and Work Opportunity Reconciliation Act of 1996 
171.14  (PRWORA), Public Law Number 104-193, except for the earned 
171.15  income disregard and employment deductions.  An amount equal to 
171.16  the amount of earned income exceeding 275 percent of the federal 
171.17  poverty guideline, up to a maximum of the amount by which the 
171.18  combined total of 185 percent of the federal poverty guideline 
171.19  plus the earned income disregards and deductions of the AFDC 
171.20  program under the state's AFDC plan as of July 16, 1996, as 
171.21  required by the Personal Responsibility and Work Opportunity 
171.22  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
171.23  exceeds 275 percent of the federal poverty guideline will be 
171.24  deducted for pregnant women and infants less than two years of 
171.25  age.  Eligibility for a pregnant woman or infant less than two 
171.26  years of age under this subdivision must be determined without 
171.27  regard to asset standards established in section 256B.056, 
171.28  subdivision 3.  
171.29     (b) An infant born on or after January 1, 1991, to a woman 
171.30  who was eligible for and receiving medical assistance on the 
171.31  date of the child's birth shall continue to be eligible for 
171.32  medical assistance without redetermination until the child's 
171.33  second birthday, as long as the child remains in the woman's 
171.34  household. 
171.35     Sec. 15.  Minnesota Statutes 1996, section 256B.057, 
171.36  subdivision 2b, is amended to read: 
172.1      Subd. 2b.  [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS; 
172.2   EXPANSION.] This subdivision supersedes subdivision 2a as long 
172.3   as the Minnesota health care reform waiver remains in effect.  
172.4   When the waiver expires, this subdivision expires and the 
172.5   commissioner of human services shall publish a notice in the 
172.6   State Register and notify the revisor of statutes.  Eligibility 
172.7   for medical assistance for a person under age 21, and the 
172.8   person's parents or relative caretakers as defined in the aid to 
172.9   families with dependent children program according to chapter 
172.10  256, who are eligible under section 256B.055, subdivision 
172.11  3 under the state's AFDC plan in effect as of July 16, 1996, as 
172.12  required by the Personal Responsibility and Work Opportunity 
172.13  Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
172.14  and who live in the same household as the person eligible under 
172.15  age 21, must be determined without regard to asset standards 
172.16  established in section 256B.056. 
172.17     Sec. 16.  Minnesota Statutes 1996, section 256B.06, 
172.18  subdivision 4, is amended to read: 
172.19     Subd. 4.  [CITIZENSHIP REQUIREMENTS.] Eligibility for 
172.20  medical assistance is limited to citizens of the United 
172.21  States and aliens lawfully admitted for permanent residence or 
172.22  otherwise permanently residing in the United States under the 
172.23  color of law.  Aliens who are seeking legalization under the 
172.24  Immigration Reform and Control Act of 1986, Public Law Number 
172.25  99-603, who are under age 18, over age 65, blind, disabled, or 
172.26  Cuban or Haitian, and who meet the eligibility requirements of 
172.27  medical assistance under subdivision 1 and sections 256B.055 to 
172.28  256B.062 are eligible to receive medical assistance.  Pregnant 
172.29  women who are aliens seeking legalization under the Immigration 
172.30  Reform and Control Act of 1986, Public Law Number 99-603, and 
172.31  who meet the eligibility requirements of medical assistance 
172.32  under subdivision 1 are eligible for payment of care and 
172.33  services through the period of pregnancy and six weeks 
172.34  postpartum.  Payment shall also be made for care and services 
172.35  that are furnished to an alien, regardless of immigration 
172.36  status, who otherwise meets the eligibility requirements of this 
173.1   section if such care and services are necessary for the 
173.2   treatment of an emergency medical condition, except for organ 
173.3   transplants and related care and services.  For purposes of this 
173.4   subdivision, the term "emergency medical condition" means a 
173.5   medical condition, including labor and delivery, that if not 
173.6   immediately treated could cause a person physical or mental 
173.7   disability, continuation of severe pain, or death., qualified 
173.8   noncitizens as defined in this subdivision, and other persons 
173.9   residing lawfully in the United States. 
173.10     (a) "Qualified noncitizen" means a person who meets one of 
173.11  the following immigration criteria: 
173.12     (1) admitted for lawful permanent residence according to 
173.13  United States Code, title 8; 
173.14     (2) admitted to the United States as a refugee according to 
173.15  United States Code, title 8, section 1157; 
173.16     (3) granted asylum according to United States Code, title 
173.17  8, section 1158; 
173.18     (4) granted withholding of deportation according to United 
173.19  States Code, title 8, section 1253(h); 
173.20     (5) paroled for a period of at least one year according to 
173.21  United States Code, title 8, section 1182(d)(5); 
173.22     (6) granted conditional entrant status according to United 
173.23  States Code, title 8, section 1153(a)(7); or 
173.24     (7) determined to be a battered noncitizen by the United 
173.25  States Attorney General according to the Illegal Immigration 
173.26  Reform and Immigrant Responsibility Act of 1996, title V of the 
173.27  Omnibus Consolidated Appropriations Bill, Public Law Number 
173.28  104-200. 
173.29     (b) All qualified noncitizens who were residing in the 
173.30  United States before August 22, 1996, who otherwise meet the 
173.31  eligibility requirements of chapter 256B, are eligible for 
173.32  medical assistance with federal financial participation. 
173.33     (c) Beginning December 1, 1996, qualified noncitizens and 
173.34  other noncitizens lawfully residing in the United States, who 
173.35  entered the United States on or after August 22, 1996, and who 
173.36  otherwise meet the eligibility requirements of chapter 256B, are 
174.1   ineligible for medical assistance with federal participation for 
174.2   five years unless they meet one of the following criteria: 
174.3      (1) refugees admitted to the United States according to 
174.4   United States Code, title 8, section 1157; 
174.5      (2) persons granted asylum according to United States Code, 
174.6   title 8, section 1158; 
174.7      (3) persons granted withholding of deportation according to 
174.8   United States code, title 8, section 1253(h); 
174.9      (4) veterans of the United States armed Forces with an 
174.10  honorable discharge for a reason other than noncitizen status, 
174.11  their spouses and minor children; or 
174.12     (5) persons on active duty in the United States Armed 
174.13  Forces, other than for training, their spouses and minor 
174.14  children. 
174.15     (d) When determining eligibility, the income and resources 
174.16  of qualified noncitizens shall be deemed to include their 
174.17  sponsors' income and resources as required under the Personal 
174.18  Responsibility and Work Opportunity Reconciliation Act of 1996, 
174.19  title IV, Public Law Number 104-193, section 421.  
174.20     (e) Payment shall also be made for care and services that 
174.21  are furnished to noncitizens, regardless of immigration status, 
174.22  who otherwise meet the eligibility requirements of section 256B 
174.23  if such care and services are necessary for the treatment of an 
174.24  emergency medical condition, except for organ transplants and 
174.25  related care and services, and routine prenatal care, labor, and 
174.26  delivery.  For purposes of this subdivision, the term "emergency 
174.27  medical condition" means a medical condition that meets the 
174.28  requirements of United States Code, title 42, section 1396b(v). 
174.29     (f) Pregnant noncitizens who are undocumented or 
174.30  nonimmigrants who otherwise meet the eligibility requirements of 
174.31  chapter 256B, are eligible for medical assistance payment 
174.32  without federal financial participation of care and services 
174.33  through the period of pregnancy and 60 days postpartum. 
174.34     (g) Beginning December 1, 1996, qualified noncitizens as 
174.35  described in paragraph (c), who are ineligible for medical 
174.36  assistance with federal financial participation, and all other 
175.1   noncitizens lawfully residing in the United States who otherwise 
175.2   meet the eligibility requirements of section 256B and of this 
175.3   paragraph, are eligible for medical assistance without federal 
175.4   financial participation.  Qualified noncitizens as described in 
175.5   paragraph (c) are only eligible for medical assistance without 
175.6   federal financial participation for five years from their date 
175.7   of entry to the United States.  As a condition of continuing 
175.8   eligibility, all other noncitizens lawfully residing in the 
175.9   United States must cooperate with the Immigration and 
175.10  Naturalization Service to pursue any applicable immigration 
175.11  status, including citizenship, that would qualify them for 
175.12  medical assistance with federal financial participation. 
175.13     (h) The commissioner shall submit to the legislature by 
175.14  December 31, 1998, a report on the number of recipients and cost 
175.15  of coverage of care and services made according to paragraphs 
175.16  (f) and (g). 
175.17     Sec. 17.  [256B.063] [CONTINUED ELIGIBILITY.] 
175.18     Beginning January 1, 1998, or upon federal approval if 
175.19  later, medical assistance may be paid for persons who received 
175.20  MFIP-S or medical assistance for families and children in at 
175.21  least three of six months preceeding the month in which the 
175.22  person became ineligible for MFIP-S or medical assistance, if 
175.23  the ineligibility was due to an increase in hours of employment 
175.24  or employment income or due to the loss of an earned income 
175.25  disregard.  In addition, to receive continued assistance under 
175.26  this section, persons who received medical assistance for 
175.27  families and children but did not receive MFIP-S must have had 
175.28  income less than or equal to the assistance standard for their 
175.29  family size under the state's AFDC plan in effect as of July 16, 
175.30  1996, as required by the Personal Responsibility and Work 
175.31  Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
175.32  Number 104-193, at the time medical assistance eligibility 
175.33  began.  A person who is eligible for extended medical assistance 
175.34  is entitled to six months of assistance without reapplication, 
175.35  unless the assistance unit ceases to include a dependent child.  
175.36  For a person under 21 years of age, medical assistance may not 
176.1   be discontinued within the six-month period of extended 
176.2   eligibility until it has been determined that the person is not 
176.3   otherwise eligible for medical assistance.  Medical assistance 
176.4   may be continued for an additional six months if the person 
176.5   meets all requirements for the additional six months, according 
176.6   to Title XIX of the Social Security Act, as amended by section 
176.7   303 of the Family Support Act of 1988, Public Law Number 100-485.
176.8      Sec. 18.  Minnesota Statutes 1996, section 256D.01, 
176.9   subdivision 1, is amended to read: 
176.10     Subdivision 1.  [POLICY.] The objectives of sections 
176.11  256D.01 to 256D.21 are to provide a sound administrative 
176.12  structure for public assistance programs; to maximize the use of 
176.13  federal money for public assistance purposes; to provide an 
176.14  integrated public assistance program for all persons single 
176.15  adults or childless couples in the state without adequate income 
176.16  or resources to maintain a subsistence reasonably compatible 
176.17  with decency and health; and to provide services to help 
176.18  employable and potentially employable persons prepare for and 
176.19  attain self-sufficiency and obtain permanent work. 
176.20     It is declared to be the policy of this state that persons 
176.21  single adults or childless couples unable to provide for 
176.22  themselves and not otherwise provided for by law and who meet 
176.23  the eligibility requirements of sections 256D.01 to 256D.21 are 
176.24  entitled to receive grants of general assistance necessary to 
176.25  maintain a subsistence reasonably compatible with decency and 
176.26  health.  Providing this assistance is a matter of public concern 
176.27  and a necessity in promoting the public health and welfare. 
176.28     Sec. 19.  Minnesota Statutes 1996, section 256D.01, 
176.29  subdivision 1a, is amended to read: 
176.30     Subd. 1a.  [STANDARDS.] (a) A principal objective in 
176.31  providing general assistance is to provide for persons single 
176.32  adults or childless couples ineligible for federal programs who 
176.33  are unable to provide for themselves.  The minimum standard of 
176.34  assistance determines the total amount of the general assistance 
176.35  grant without separate standards for shelter, utilities, or 
176.36  other needs. 
177.1      (b) The commissioner shall set the standard of assistance 
177.2   for an assistance unit consisting of an adult recipient who is 
177.3   childless and unmarried or living apart from children and spouse 
177.4   and who does not live with a parent or parents or a legal 
177.5   custodian.  When the other standards specified in this 
177.6   subdivision increase, this standard must also be increased by 
177.7   the same percentage. 
177.8      (c) For an assistance unit consisting of a single adult who 
177.9   lives with a parent or parents, the general assistance standard 
177.10  of assistance is the amount that the aid to families with 
177.11  dependent children standard of assistance, in effect on January 
177.12  1, 1996, would increase if the recipient were added as an 
177.13  additional minor child to an assistance unit consisting of the 
177.14  recipient's parent and all of that parent's family members, 
177.15  except that the standard may not exceed the standard for a 
177.16  general assistance recipient living alone.  Benefits received by 
177.17  a responsible relative of the assistance unit under the 
177.18  supplemental security income program, a workers' compensation 
177.19  program, the Minnesota supplemental aid program, or any other 
177.20  program based on the responsible relative's disability, and any 
177.21  benefits received by a responsible relative of the assistance 
177.22  unit under the social security retirement program, may not be 
177.23  counted in the determination of eligibility or benefit level for 
177.24  the assistance unit.  Except as provided below, the assistance 
177.25  unit is ineligible for general assistance if the available 
177.26  resources or the countable income of the assistance unit and the 
177.27  parent or parents with whom the assistance unit lives are such 
177.28  that a family consisting of the assistance unit's parent or 
177.29  parents, the parent or parents' other family members and the 
177.30  assistance unit as the only or additional minor child would be 
177.31  financially ineligible for general assistance.  For the purposes 
177.32  of calculating the countable income of the assistance unit's 
177.33  parent or parents, the calculation methods, income deductions, 
177.34  exclusions, and disregards used when calculating the countable 
177.35  income for a single adult or childless couple must be used. 
177.36     (d) For an assistance unit consisting of a childless 
178.1   couple, the standards of assistance are the same as the first 
178.2   and second adult standards of the aid to families with dependent 
178.3   children program in effect on January 1, 1996.  If one member of 
178.4   the couple is not included in the general assistance grant, the 
178.5   standard of assistance for the other is the second adult 
178.6   standard of the aid to families with dependent children program. 
178.7      (e) For an assistance unit consisting of all members of a 
178.8   family, the standards of assistance are the same as the 
178.9   standards of assistance that apply to a family under the aid to 
178.10  families with dependent children program if that family had the 
178.11  same number of parents and children as the assistance unit under 
178.12  general assistance and if all members of that family were 
178.13  eligible for the aid to families with dependent children 
178.14  program.  If one or more members of the family are not included 
178.15  in the assistance unit for general assistance, the standards of 
178.16  assistance for the remaining members are the same as the 
178.17  standards of assistance that apply to an assistance unit 
178.18  composed of the entire family, less the standards of assistance 
178.19  for a family of the same number of parents and children as those 
178.20  members of the family who are not in the assistance unit for 
178.21  general assistance.  In no case shall the standard for family 
178.22  members who are in the assistance unit for general assistance, 
178.23  when combined with the standard for family members who are not 
178.24  in the general assistance unit, total more than the standard for 
178.25  the entire family if all members were in an AFDC assistance 
178.26  unit.  A child may not be excluded from the assistance unit 
178.27  unless income intended for its benefit is received from a 
178.28  federally aided categorical assistance program or supplemental 
178.29  security income.  The income of a child who is excluded from the 
178.30  assistance unit may not be counted in the determination of 
178.31  eligibility or benefit level for the assistance unit. 
178.32     (f) An assistance unit consisting of one or more members of 
178.33  a family must have its grant determined using the policies and 
178.34  procedures of the aid to families with dependent children 
178.35  program, except that, until June 30, 1995, in cases where a 
178.36  county agency has developed or approved a case plan that 
179.1   includes reunification with the children, foster care 
179.2   maintenance payments made under state or local law for a child 
179.3   who is temporarily absent from the assistance unit must not be 
179.4   considered income to the child and the payments must not be 
179.5   counted in the determination of the eligibility or benefit level 
179.6   of the assistance unit.  Otherwise, the standard of assistance 
179.7   must be determined according to paragraph (e); the first $50 of 
179.8   total child support received by an assistance unit in a month 
179.9   must be excluded and the balance counted as unearned income.  
179.10     Sec. 20.  Minnesota Statutes 1996, section 256D.02, 
179.11  subdivision 6, is amended to read: 
179.12     Subd. 6.  "Child" means an adult or minor child of an 
179.13  individual. 
179.14     Sec. 21.  Minnesota Statutes 1996, section 256D.02, 
179.15  subdivision 12a, is amended to read: 
179.16     Subd. 12a.  [RESIDENT.] (a) For purposes of eligibility for 
179.17  general assistance and general assistance medical care, a 
179.18  "resident" is a person living in the state for at least 30 days 
179.19  with the intention of making the person's home here and not for 
179.20  any temporary purpose.  All applicants for these programs are 
179.21  required to demonstrate the requisite intent and can do so in 
179.22  any of the following ways: 
179.23     (1) by showing that the applicant maintains a residence at 
179.24  a verified address, other than a place of public accommodation.  
179.25  An applicant may verify a residence address by presenting a 
179.26  valid state driver's license, a state identification card, a 
179.27  voter registration card, a rent receipt, a statement by the 
179.28  landlord, apartment manager, or homeowner verifying that the 
179.29  individual is residing at the address, or other form of 
179.30  verification approved by the commissioner; or 
179.31     (2) by verifying residence in accordance with according to 
179.32  Minnesota Rules, part 9500.1219, subpart 3, item C. 
179.33     (b) An applicant who has been in the state for less than 30 
179.34  days shall be considered a resident if the applicant can provide 
179.35  documentation: 
179.36     (1) that the applicant was born in the state; 
180.1      (2) that the applicant has been a long-time resident of the 
180.2   state or was formerly a resident of the state for at least 365 
180.3   days and is returning to the state from a temporary absence, as 
180.4   those terms are defined in rules adopted by the commissioner; 
180.5      (3) that the applicant has come to the state to join a 
180.6   close relative which, for purposes of this subdivision, means a 
180.7   parent, grandparent, brother, sister, spouse, or child, who has 
180.8   resided in Minnesota for at least one year; or 
180.9      (4) that the applicant has come to this state to accept a 
180.10  bona fide offer of employment for which the applicant is 
180.11  eligible.  
180.12     A county agency shall waive the 30-day residency 
180.13  requirement in cases of emergencies, including medical 
180.14  emergencies, or where unusual hardship would result from denial 
180.15  of general assistance medical care.  A county may waive the 
180.16  30-day residency requirement in cases of emergencies, including 
180.17  medical emergencies, or where unusual hardship would result from 
180.18  denial of general assistance.  The county agency must report to 
180.19  the commissioner within 30 days on any waiver granted under this 
180.20  section.  The county shall not deny an application solely 
180.21  because the applicant does not meet at least one of the criteria 
180.22  in this subdivision, but shall continue to process the 
180.23  application and leave the application pending until the 
180.24  residency requirement is met or until eligibility or 
180.25  ineligibility is established. 
180.26     Sec. 22.  Minnesota Statutes 1996, section 256D.03, 
180.27  subdivision 3, is amended to read: 
180.28     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
180.29  (a) General assistance medical care may be paid for any person 
180.30  who is not eligible for medical assistance under chapter 256B, 
180.31  including eligibility for medical assistance based on a 
180.32  spenddown of excess income according to section 256B.056, 
180.33  subdivision 5, and: 
180.34     (1) who is receiving assistance under section 256D.05, or 
180.35  who is having a payment made on the person's behalf under 
180.36  sections 256I.01 to 256I.06; or 
181.1      (2)(i) who is a resident of Minnesota; and whose equity in 
181.2   assets is not in excess of $1,000 per assistance unit.  No asset 
181.3   test shall be applied to children and their parents living in 
181.4   the same household.  Exempt assets, the reduction of excess 
181.5   assets, and the waiver of excess assets must conform to the 
181.6   medical assistance program in chapter 256B, with the following 
181.7   exception:  the maximum amount of undistributed funds in a trust 
181.8   that could be distributed to or on behalf of the beneficiary by 
181.9   the trustee, assuming the full exercise of the trustee's 
181.10  discretion under the terms of the trust, must be applied toward 
181.11  the asset maximum; and 
181.12     (ii) who has countable income not in excess of the 
181.13  assistance standards established in section 256B.056, 
181.14  subdivision 4, or whose excess income is spent down pursuant 
181.15  according to section 256B.056, subdivision 5, using a six-month 
181.16  budget period, except that a one-month budget period must be 
181.17  used for recipients residing in a long-term care facility.  The 
181.18  method for calculating earned income disregards and deductions 
181.19  for a person who resides with a dependent child under age 21 
181.20  shall be as specified in section 256.74, subdivision 1 follow 
181.21  section 256B.056.  However, if a disregard of $30 and one-third 
181.22  of the remainder described in section 256.74, subdivision 1, 
181.23  clause (4), has been applied to the wage earner's income, the 
181.24  disregard shall not be applied again until the wage earner's 
181.25  income has not been considered in an eligibility determination 
181.26  for general assistance, general assistance medical care, medical 
181.27  assistance, or aid to families with dependent children MFIP-S 
181.28  for 12 consecutive months.  The earned income and work expense 
181.29  deductions for a person who does not reside with a dependent 
181.30  child under age 21 shall be the same as the method used to 
181.31  determine eligibility for a person under section 256D.06, 
181.32  subdivision 1, except the disregard of the first $50 of earned 
181.33  income is not allowed; or 
181.34     (3) who would be eligible for medical assistance except 
181.35  that the person resides in a facility that is determined by the 
181.36  commissioner or the federal health care financing administration 
182.1   to be an institution for mental diseases. 
182.2      (b) Eligibility is available for the month of application, 
182.3   and for three months prior to application if the person was 
182.4   eligible in those prior months.  A redetermination of 
182.5   eligibility must occur every 12 months. 
182.6      (c) General assistance medical care is not available for a 
182.7   person in a correctional facility unless the person is detained 
182.8   by law for less than one year in a county correctional or 
182.9   detention facility as a person accused or convicted of a crime, 
182.10  or admitted as an inpatient to a hospital on a criminal hold 
182.11  order, and the person is a recipient of general assistance 
182.12  medical care at the time the person is detained by law or 
182.13  admitted on a criminal hold order and as long as the person 
182.14  continues to meet other eligibility requirements of this 
182.15  subdivision.  
182.16     (d) General assistance medical care is not available for 
182.17  applicants or recipients who do not cooperate with the county 
182.18  agency to meet the requirements of medical assistance. 
182.19     (e) In determining the amount of assets of an individual, 
182.20  there shall be included any asset or interest in an asset, 
182.21  including an asset excluded under paragraph (a), that was given 
182.22  away, sold, or disposed of for less than fair market value 
182.23  within the 60 months preceding application for general 
182.24  assistance medical care or during the period of eligibility.  
182.25  Any transfer described in this paragraph shall be presumed to 
182.26  have been for the purpose of establishing eligibility for 
182.27  general assistance medical care, unless the individual furnishes 
182.28  convincing evidence to establish that the transaction was 
182.29  exclusively for another purpose.  For purposes of this 
182.30  paragraph, the value of the asset or interest shall be the fair 
182.31  market value at the time it was given away, sold, or disposed 
182.32  of, less the amount of compensation received.  For any 
182.33  uncompensated transfer, the number of months of ineligibility, 
182.34  including partial months, shall be calculated by dividing the 
182.35  uncompensated transfer amount by the average monthly per person 
182.36  payment made by the medical assistance program to skilled 
183.1   nursing facilities for the previous calendar year.  The 
183.2   individual shall remain ineligible until this fixed period has 
183.3   expired.  The period of ineligibility may exceed 30 months, and 
183.4   a reapplication for benefits after 30 months from the date of 
183.5   the transfer shall not result in eligibility unless and until 
183.6   the period of ineligibility has expired.  The period of 
183.7   ineligibility begins in the month the transfer was reported to 
183.8   the county agency, or if the transfer was not reported, the 
183.9   month in which the county agency discovered the transfer, 
183.10  whichever comes first.  For applicants, the period of 
183.11  ineligibility begins on the date of the first approved 
183.12  application. 
183.13     (f)(1) Beginning October 1, 1993, An undocumented alien 
183.14  noncitizen or a nonimmigrant is ineligible for general 
183.15  assistance medical care other than emergency services.  For 
183.16  purposes of this subdivision, a nonimmigrant is an individual in 
183.17  one or more of the classes listed in United States Code, title 
183.18  8, section 1101(a)(15), and an undocumented alien noncitizen is 
183.19  an individual who resides in the United States without the 
183.20  approval or acquiescence of the Immigration and Naturalization 
183.21  Service. 
183.22     (2) This subdivision does not apply to a child under age 
183.23  18, to a Cuban or Haitian entrant as defined in Public Law 
183.24  Number 96-422, section 501(e)(1) or (2)(a), or to an alien a 
183.25  noncitizen who is aged, blind, or disabled as defined in United 
183.26  States Code, title 42, section 1382c(a)(1) Code of Federal 
183.27  Regulations, title 42, sections 435.520, 435.530, 435.531, 
183.28  435.540, and 435.541, who cooperates with the Immigration and 
183.29  Naturalization Service to pursue any applicable immigration 
183.30  status, including citizenship, that would qualify that 
183.31  individual for medical assistance with federal financial 
183.32  participation. 
183.33     (3) For purposes of paragraph (f), "emergency services" has 
183.34  the meaning given in Code of Federal Regulations, title 42, 
183.35  section 440.255(b)(1), except that it also means services 
183.36  rendered because of suspected or actual pesticide poisoning. 
184.1      (4) Notwithstanding any other provision of law, a 
184.2   noncitizen who is ineligible for medical assistance due to the 
184.3   deeming of a sponsor's income and resources, is ineligible for 
184.4   general assistance medical care. 
184.5      Sec. 23.  Minnesota Statutes 1996, section 256D.05, 
184.6   subdivision 1, is amended to read: 
184.7      Subdivision 1.  [ELIGIBILITY.] (a) Each person or family 
184.8   whose income and resources are less than the standard of 
184.9   assistance established by the commissioner and, who is a 
184.10  resident of the state shall be eligible for and entitled to 
184.11  general assistance if the person or family is: 
184.12     (1) a person who is suffering from a professionally 
184.13  certified permanent or temporary illness, injury, or incapacity 
184.14  which is expected to continue for more than 30 days and which 
184.15  prevents the person from obtaining or retaining employment; 
184.16     (2) a person whose presence in the home on a substantially 
184.17  continuous basis is required because of the professionally 
184.18  certified illness, injury, incapacity, or the age of another 
184.19  member of the household; 
184.20     (3) a person who has been placed in, and is residing in, a 
184.21  licensed or certified facility for purposes of physical or 
184.22  mental health or rehabilitation, or in an approved chemical 
184.23  dependency domiciliary facility, if the placement is based on 
184.24  illness or incapacity and is pursuant according to a plan 
184.25  developed or approved by the county agency through its director 
184.26  or designated representative; 
184.27     (4) a person who resides in a shelter facility described in 
184.28  subdivision 3; 
184.29     (5) a person not described in clause (1) or (3) who is 
184.30  diagnosed by a licensed physician, psychological practitioner, 
184.31  or other qualified professional, as mentally retarded or 
184.32  mentally ill, and that condition prevents the person from 
184.33  obtaining or retaining employment; 
184.34     (6) a person who has an application pending for, or is 
184.35  appealing termination of benefits from, the social security 
184.36  disability program or the program of supplemental security 
185.1   income for the aged, blind, and disabled, provided the person 
185.2   has a professionally certified permanent or temporary illness, 
185.3   injury, or incapacity which is expected to continue for more 
185.4   than 30 days and which prevents the person from obtaining or 
185.5   retaining employment; 
185.6      (7) a person who is unable to obtain or retain employment 
185.7   because advanced age significantly affects the person's ability 
185.8   to seek or engage in substantial work; 
185.9      (8) a person who has been assessed by a vocational 
185.10  specialist and, in consultation with the county agency, has been 
185.11  determined to be unemployable for purposes of this item, clause; 
185.12  a person is considered employable if there exist positions of 
185.13  employment in the local labor market, regardless of the current 
185.14  availability of openings for those positions, that the person is 
185.15  capable of performing.  The person's eligibility under this 
185.16  category must be reassessed at least annually.  The county 
185.17  agency must provide notice to the person not later than 30 days 
185.18  before annual eligibility under this item ends, informing the 
185.19  person of the date annual eligibility will end and the need for 
185.20  vocational assessment if the person wishes to continue 
185.21  eligibility under this clause.  For purposes of establishing 
185.22  eligibility under this clause, it is the applicant's or 
185.23  recipient's duty to obtain any needed vocational assessment; 
185.24     (9) a person who is determined by the county agency, in 
185.25  accordance with according to permanent rules adopted by the 
185.26  commissioner, to be learning disabled, provided that if a 
185.27  rehabilitation plan for the person is developed or approved by 
185.28  the county agency, the person is following the plan; 
185.29     (10) a child under the age of 18 who is not living with a 
185.30  parent, stepparent, or legal custodian, but and only if:  the 
185.31  child is legally emancipated or living with an adult with the 
185.32  consent of an agency acting as a legal custodian; the child is 
185.33  at least 16 years of age and the general assistance grant is 
185.34  approved by the director of the county agency or a designated 
185.35  representative as a component of a social services case plan for 
185.36  the child; or the child is living with an adult with the consent 
186.1   of the child's legal custodian and the county agency.  For 
186.2   purposes of this clause, "legally emancipated" means a person 
186.3   under the age of 18 years who:  (i) has been married; (ii) is on 
186.4   active duty in the uniformed services of the United States; 
186.5   (iii) has been emancipated by a court of competent jurisdiction; 
186.6   or (iv) is otherwise considered emancipated under Minnesota law, 
186.7   and for whom county social services has not determined that a 
186.8   social services case plan is necessary, for reasons other 
186.9   than that the child has failed or refuses to cooperate with the 
186.10  county agency in developing the plan; 
186.11     (11) a woman in the last trimester of pregnancy who does 
186.12  not qualify for aid to families with dependent children.  A 
186.13  woman who is in the last trimester of pregnancy who is currently 
186.14  receiving aid to families with dependent children may be granted 
186.15  emergency general assistance to meet emergency needs; 
186.16     (12) a person who is eligible for displaced homemaker 
186.17  services, programs, or assistance under section 268.96, but only 
186.18  if that person is enrolled as a full-time student; 
186.19     (13) (12) a person who lives more than two hours round-trip 
186.20  traveling time from any potential suitable employment; 
186.21     (14) (13) a person who is involved with protective or 
186.22  court-ordered services that prevent the applicant or recipient 
186.23  from working at least four hours per day; or 
186.24     (15)(i) a family as defined in section 256D.02, subdivision 
186.25  5, which is ineligible for the aid to families with dependent 
186.26  children program. 
186.27     (ii) unless exempt under section 256D.051, subdivision 3a, 
186.28  each adult in the unit must participate in and cooperate with 
186.29  the food stamp employment and training program under section 
186.30  256D.051 each month that the unit receives general assistance 
186.31  benefits.  The recipient's participation must begin no later 
186.32  than the first day of the first full month following the 
186.33  determination of eligibility for general assistance benefits.  
186.34  To the extent of available resources, and with the county 
186.35  agency's consent, the recipient may voluntarily continue to 
186.36  participate in food stamp employment and training services for 
187.1   up to three additional consecutive months immediately following 
187.2   termination of general assistance benefits in order to complete 
187.3   the provisions of the recipient's employability development 
187.4   plan.  If an adult member fails without good cause to 
187.5   participate in or cooperate with the food stamp employment and 
187.6   training program, the county agency shall concurrently terminate 
187.7   that person's eligibility for general assistance and food stamps 
187.8   for two months or until compliance is achieved, whichever is 
187.9   shorter, using the notice, good cause, conciliation and 
187.10  termination procedures specified in section 256D.051; or 
187.11     (16) (14) a person over age 18 whose primary language is 
187.12  not English and who is attending high school at least half time. 
187.13     (b) Persons or families who are not state residents but who 
187.14  are otherwise eligible for general assistance may receive 
187.15  emergency general assistance to meet emergency needs. 
187.16     (c) As a condition of eligibility under paragraph (a), 
187.17  clauses (1), (3), (5), (8), and (9), the recipient must complete 
187.18  an interim assistance agreement and must apply for other 
187.19  maintenance benefits as specified in section 256D.06, 
187.20  subdivision 5, and must comply with efforts to determine the 
187.21  recipient's eligibility for those other maintenance benefits.  
187.22     (d) The burden of providing documentation for a county 
187.23  agency to use to verify eligibility for general assistance or 
187.24  for exemption from the food stamp employment and training 
187.25  program is upon the applicant or recipient.  The county agency 
187.26  shall use documents already in its possession to verify 
187.27  eligibility, and shall help the applicant or recipient obtain 
187.28  other existing verification necessary to determine eligibility 
187.29  which the applicant or recipient does not have and is unable to 
187.30  obtain. 
187.31     Sec. 24.  Minnesota Statutes 1996, section 256D.05, 
187.32  subdivision 2, is amended to read: 
187.33     Subd. 2.  [USE OF FEDERAL FUNDS.] Notwithstanding any law 
187.34  to the contrary, if any person a single adult or childless 
187.35  couple otherwise eligible for general assistance would, but for 
187.36  state statutory restriction or limitation, be eligible for a 
188.1   funded federally aided assistance program providing benefits 
188.2   equal to or greater than those of general assistance, the person 
188.3   single adult or childless couple shall be eligible for that 
188.4   federally aided program and ineligible for general assistance; 
188.5   provided, however, that (a) nothing in this section shall be 
188.6   construed to extend eligibility for federally aided programs to 
188.7   persons not otherwise eligible for general assistance; (b) this 
188.8   section shall not be effective to the extent that federal law or 
188.9   regulation require new eligibility for federal programs to 
188.10  persons not otherwise eligible for general assistance; and (c) 
188.11  nothing in this section shall deny general assistance to a 
188.12  person otherwise eligible who is determined ineligible for a 
188.13  substitute federally aided program. 
188.14     Sec. 25.  Minnesota Statutes 1996, section 256D.05, 
188.15  subdivision 3, is amended to read: 
188.16     Subd. 3.  [RESIDENTS OF SHELTER FACILITIES.] 
188.17  Notwithstanding the provisions of subdivisions 1 and 2, general 
188.18  assistance payments shall be made for maintenance costs and 
188.19  security costs which are related to providing 24-hour staff 
188.20  coverage at the facility incurred as a result of residence in a 
188.21  secure crisis shelter, a housing network, or other shelter 
188.22  facilities which provide shelter services to women and their 
188.23  children who are being or have been assaulted by their spouses, 
188.24  other male relatives, or other males with whom they are residing 
188.25  or have resided in the past. 
188.26     These payments shall be made directly to the shelter 
188.27  facility from general assistance funds on behalf of women and 
188.28  their children who are receiving, or who are eligible to 
188.29  receive, aid to families with dependent children MFIP-S or 
188.30  general assistance.  
188.31     In determining eligibility of women and children for 
188.32  payment of general assistance under this subdivision, the asset 
188.33  limitations of the aid to families with dependent children 
188.34  program MFIP-S shall be applied.  Payments to shelter facilities 
188.35  shall not affect the eligibility of individuals who reside in 
188.36  shelter facilities for aid to families with dependent children 
189.1   MFIP-S or general assistance or payments made to individuals who 
189.2   reside in shelter facilities through aid to families with 
189.3   dependent children MFIP-S or general assistance, except when 
189.4   required by federal law or regulation.  
189.5      Sec. 26.  Minnesota Statutes 1996, section 256D.05, 
189.6   subdivision 5, is amended to read: 
189.7      Subd. 5.  [TRANSFERS OF PROPERTY.] The equity value of real 
189.8   and personal property transferred without reasonable 
189.9   compensation within 12 months preceding the date of application 
189.10  for general assistance must be included in determining the 
189.11  resources of an assistance unit in the same manner as in the aid 
189.12  to families with dependent children program under chapter 
189.13  256 MFIP-S under chapter 256J. 
189.14     Sec. 27.  Minnesota Statutes 1996, section 256D.05, 
189.15  subdivision 7, is amended to read: 
189.16     Subd. 7.  [INELIGIBILITY FOR GENERAL ASSISTANCE.] No person 
189.17  single adult or childless couple shall be eligible for general 
189.18  assistance during a period of disqualification because of 
189.19  sanctions, from any federally aided assistance program; or if 
189.20  the person could be considered an essential person under section 
189.21  256.74, subdivision 1.  
189.22     Sec. 28.  Minnesota Statutes 1996, section 256D.05, 
189.23  subdivision 8, is amended to read: 
189.24     Subd. 8.  [PERSONS INELIGIBLE CITIZENSHIP.] (a) Beginning 
189.25  October 1, 1993, an undocumented alien or a nonimmigrant is 
189.26  ineligible for general assistance benefits.  For purposes of 
189.27  this subdivision, a nonimmigrant is an individual in one or more 
189.28  of the classes listed in United States Code, title 8, section 
189.29  1101(a)(15), and an undocumented alien is an individual who 
189.30  resides in the United States without the approval or 
189.31  acquiescence of the Immigration and Naturalization Service. 
189.32     (b) This subdivision does not apply to a child under age 
189.33  18, to a Cuban or Haitian entrant as defined in Public Law 
189.34  Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 
189.35  is aged, blind, or disabled as defined in United States Code, 
189.36  title 42, section 1382c(a)(1).  Effective July 1, 1997, 
190.1   citizenship requirements for applicants and recipients under 
190.2   sections 256D.01 to 256D.21 shall be determined the same as 
190.3   under section 256J.11, subdivision 1, which governs the 
190.4   Minnesota family investment program-statewide (MFIP-S).  The 
190.5   income of sponsors of noncitizens shall be deemed available to 
190.6   general assistance applicants and recipients according to the 
190.7   policies of the MFIP-S program at section 256J.14, subdivision 7.
190.8      Sec. 29.  Minnesota Statutes 1996, section 256D.051, 
190.9   subdivision 1a, is amended to read: 
190.10     Subd. 1a.  [NOTICES; CONCILIATION CONFERENCE; AND 
190.11  SANCTIONS.] (a) At the time the county agency notifies the 
190.12  household that it is eligible for food stamps, the county agency 
190.13  must inform all mandatory employment and training services 
190.14  participants as identified in subdivision 1 in the household 
190.15  that they must comply with all food stamp employment and 
190.16  training program requirements each month, including the 
190.17  requirement to attend an initial orientation to the food stamp 
190.18  employment and training program and that food stamp eligibility 
190.19  will end unless the participants comply with the requirements 
190.20  specified in the notice.  
190.21     (b) A participant who fails without good cause to comply 
190.22  with food stamp employment and training program requirements of 
190.23  this section, including attendance at orientation, will lose 
190.24  food stamp eligibility for two months or until the county agency 
190.25  determines that the participant has complied with the program 
190.26  requirements, whichever is shorter. the following periods: 
190.27     (1) for the first occurrence, for one month or until the 
190.28  person complies with the requirements not previously complied 
190.29  with, whichever is longer; 
190.30     (2) for the second occurrence, for three months or until 
190.31  the person complies with the requirements not previously 
190.32  complied with, whichever is longer; or 
190.33     (3) for the third and any subsequent occurrence, for six 
190.34  months or until the person complies with the requirements not 
190.35  previously complied with, whichever is longer. 
190.36     If the participant is not the food stamp head of household, 
191.1   the person shall be considered an ineligible household member 
191.2   for food stamp purposes.  If the participant is the food stamp 
191.3   head of household, the entire household is ineligible for food 
191.4   stamps as provided in Code of Federal Regulations, title 7, 
191.5   section 273.7(g).  "Good cause" means circumstances beyond the 
191.6   control of the participant, such as illness or injury, illness 
191.7   or injury of another household member requiring the 
191.8   participant's presence, a household emergency, or the inability 
191.9   to obtain child care for children between the ages of six and 12 
191.10  or to obtain transportation needed in order for the participant 
191.11  to meet the food stamp employment and training program 
191.12  participation requirements. 
191.13     (c) The county agency shall mail or hand deliver a notice 
191.14  to the participant not later than five days after determining 
191.15  that the participant has failed without good cause to comply 
191.16  with food stamp employment and training program requirements 
191.17  which specifies the requirements that were not complied with, 
191.18  the factual basis for the determination of noncompliance, the 
191.19  right to reinstate eligibility upon a showing of good cause or 
191.20  the for failure to meet the requirements, and the notice must 
191.21  ask the reason for the noncompliance, and must identify the 
191.22  participant's appeal rights.  The notice must request that the 
191.23  participant inform the county agency if the participant believes 
191.24  that good cause existed for the failure to comply, must offer 
191.25  the participant a conciliation conference as provided in 
191.26  paragraph (d), and must state that the county agency intends to 
191.27  terminate eligibility for food stamp benefits due to failure to 
191.28  comply with food stamp employment and training program 
191.29  requirements. 
191.30     (d) The county agency must offer a conciliation conference 
191.31  to participants who have failed to comply with food stamp 
191.32  employment and training program requirements.  The purpose of 
191.33  the conference is to determine the cause for noncompliance, to 
191.34  attempt to resolve the problem causing the noncompliance so that 
191.35  all requirements are complied with, and to determine if good 
191.36  cause for noncompliance was present.  The conciliation period 
192.1   shall run for ten working days from the date of the notice 
192.2   required in paragraph (c).  Information about how to request a 
192.3   conciliation conference must be specified in the notice required 
192.4   in paragraph (c).  If the county agency determines that the 
192.5   participant, during the conciliation period, complied with all 
192.6   food stamp employment and training program requirements that the 
192.7   recipient was required to comply with prior to and during the 
192.8   conciliation period, or if the county agency determines that 
192.9   good cause for failing to comply with the requirements was 
192.10  present, a sanction on the participant's or household's food 
192.11  stamp eligibility shall not be imposed. 
192.12     (e) If the county agency determines that the participant 
192.13  did not comply during the conciliation period month with all 
192.14  food stamp employment and training program requirements that 
192.15  were in effect prior to and during the conciliation period, and 
192.16  if the county agency determines that good cause was not present, 
192.17  the county must provide a ten-day notice of termination of food 
192.18  stamp benefits.  The termination notice must be issued following 
192.19  the last day of the conciliation period.  The amount of food 
192.20  stamps that are withheld from the household and determination of 
192.21  the impact of the sanction on other household members is 
192.22  governed by Code of Federal Regulations, title 7, section 273.7. 
192.23     (f) (e) The participant may appeal the termination of food 
192.24  stamp benefits under the provisions of section 256.045. 
192.25     Sec. 30.  Minnesota Statutes 1996, section 256D.051, 
192.26  subdivision 2a, is amended to read: 
192.27     Subd. 2a.  [DUTIES OF COMMISSIONER.] In addition to any 
192.28  other duties imposed by law, the commissioner shall: 
192.29     (1) based on this section and section 256D.052 and Code of 
192.30  Federal Regulations, title 7, section 273.7, supervise the 
192.31  administration of food stamp employment and training services to 
192.32  county agencies; 
192.33     (2) disburse money appropriated for food stamp employment 
192.34  and training services to county agencies based upon the county's 
192.35  costs as specified in section 256D.06; 
192.36     (3) accept and supervise the disbursement of any funds that 
193.1   may be provided by the federal government or from other sources 
193.2   for use in this state for food stamp employment and training 
193.3   services; and 
193.4      (4) cooperate with other agencies including any agency of 
193.5   the United States or of another state in all matters concerning 
193.6   the powers and duties of the commissioner under this section and 
193.7   section 256D.052; and 
193.8      (5) in cooperation with the commissioner of economic 
193.9   security, ensure that each component of an employment and 
193.10  training program carried out under this section is delivered 
193.11  through a statewide workforce development system, unless the 
193.12  component is not available locally through such a system. 
193.13     Sec. 31.  Minnesota Statutes 1996, section 256D.051, 
193.14  subdivision 3a, is amended to read: 
193.15     Subd. 3a.  [PERSONS REQUIRED TO REGISTER FOR AND 
193.16  PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 
193.17  (a) To the extent required under Code of Federal Regulations, 
193.18  title 7, section 273.7(a), each applicant for and recipient of 
193.19  food stamps is required to register for work as a condition of 
193.20  eligibility for food stamp benefits.  Applicants and recipients 
193.21  are registered by signing an application or annual reapplication 
193.22  for food stamps, and must be informed that they are registering 
193.23  for work by signing the form.  
193.24     (b) The commissioner shall determine, within federal 
193.25  requirements, persons required to participate in the food stamp 
193.26  employment and training (FSET) program. 
193.27     (c) The following food stamp recipients are exempt from 
193.28  mandatory participation in food stamp employment and training 
193.29  services: 
193.30     (1) recipients of benefits under the AFDC program in effect 
193.31  until January 1, 1998, Minnesota supplemental aid program, or 
193.32  the general assistance program, except that an adult who 
193.33  receives general assistance under section 256D.05, subdivision 
193.34  1, paragraph (b), is not exempt unless that person qualifies 
193.35  under one of the remaining exemption provisions in this 
193.36  paragraph; 
194.1      (2) a child; 
194.2      (3) a recipient over age 55; 
194.3      (4) a recipient who has a mental or physical illness, 
194.4   injury, or incapacity which is expected to continue for at least 
194.5   30 days and which impairs the recipient's ability to obtain or 
194.6   retain employment as evidenced by professional certification or 
194.7   the receipt of temporary or permanent disability benefits issued 
194.8   by a private or government source; 
194.9      (5) a parent or other household member responsible for the 
194.10  care of either a dependent child in the household who is under 
194.11  age six or a person in the household who is professionally 
194.12  certified as having a physical or mental illness, injury, or 
194.13  incapacity.  Only one parent or other household member may claim 
194.14  exemption under this provision; 
194.15     (6) a recipient receiving unemployment compensation or who 
194.16  has applied for unemployment compensation and has been required 
194.17  to register for work with the department of economic security as 
194.18  part of the unemployment compensation application process; 
194.19     (7) a recipient participating each week in a drug addiction 
194.20  or alcohol abuse treatment and rehabilitation program, provided 
194.21  the operators of the treatment and rehabilitation program, in 
194.22  consultation with the county agency, recommend that the 
194.23  recipient not participate in the food stamp employment and 
194.24  training program; 
194.25     (8) a recipient employed or self-employed for 30 or more 
194.26  hours per week at employment paying at least minimum wage, or 
194.27  who earns wages from employment equal to or exceeding 30 hours 
194.28  multiplied by the federal minimum wage; or 
194.29     (9) a student enrolled at least half time in any school, 
194.30  training program, or institution of higher education.  When 
194.31  determining if a student meets this criteria, the school's, 
194.32  program's or institution's criteria for being enrolled half time 
194.33  shall be used. 
194.34     Sec. 32.  Minnesota Statutes 1996, section 256D.051, is 
194.35  amended by adding a subdivision to read: 
194.36     Subd. 18.  [WORK EXPERIENCE PLACEMENTS.] (a) To the extent 
195.1   of available resources, each county agency may establish and 
195.2   operate a work experience component in the food stamp employment 
195.3   and training program for recipients who are subject to a federal 
195.4   limit of three months of food stamp eligibility in any 36-month 
195.5   period.  The purpose of the work experience component is to 
195.6   enhance the participant's employability, self-sufficiency, and 
195.7   to provide meaningful, productive work activities. 
195.8      (b) The commissioner shall assist counties in the design 
195.9   and implementation of these components.  Program participants 
195.10  may not be assigned to work that was part or all of the duties 
195.11  or responsibilities of an authorized public employee bargaining 
195.12  unit position established as of July 1, 1996.  The exclusive 
195.13  bargaining representative shall be notified no less than 14 days 
195.14  in advance of any placement by the community work experience 
195.15  program.  Written or oral concurrence with job duties of persons 
195.16  placed under the community work experience program shall be 
195.17  obtained from the appropriate exclusive bargaining 
195.18  representative. 
195.19     (c) Worksites developed under this section are limited to 
195.20  projects that serve a useful public service such as health, 
195.21  social service, environmental protection, education, urban and 
195.22  rural development and redevelopment, welfare, recreation, public 
195.23  facilities, public safety, community service, services to aged 
195.24  or disabled citizens, and child care.  To the extent possible, 
195.25  the prior training, skills, and experience of a recipient must 
195.26  be used in making appropriate work experience assignments. 
195.27     (d) Structured, supervised volunteer work with an agency or 
195.28  organization which is monitored by the county service provider 
195.29  may, with the approval of the county agency, be used as a work 
195.30  experience placement. 
195.31     (e) As a condition to placing a person receiving assistance 
195.32  from the aid to families with dependent children program in 
195.33  effect until January 1, 1998, in a program under this 
195.34  subdivision, the county agency shall first provide the recipient 
195.35  the opportunity: 
195.36     (1) for placement in suitable subsidized or unsubsidized 
196.1   employment through participation in job search under section 
196.2   256D.051; or 
196.3      (2) for placement in suitable employment through 
196.4   participation in on-the-job training, if such employment is 
196.5   available. 
196.6      (f) The county agency shall limit the maximum monthly 
196.7   number of hours that any participant may work in a work 
196.8   experience placement to: 
196.9      (1) a number equal to the amount of the family's monthly 
196.10  food stamp allotment divided by the greater of the federal 
196.11  minimum wage or the applicable state minimum wage; or 
196.12     (2) if federal approval is granted, 80 hours per month 
196.13  instead of the number arrived at through the calculation in 
196.14  clause (1). 
196.15     (g) The caretaker's employability development plan must 
196.16  include the length of time needed in the work experience 
196.17  program, the need to continue job seeking activities while 
196.18  participating in work experience, and the participant's 
196.19  employment goals. 
196.20     (h) After each six months of a recipient's participation in 
196.21  a work experience job placement, and at the conclusion of each 
196.22  work experience assignment under this section, the county agency 
196.23  shall reassess and revise, as appropriate, the participant's 
196.24  employability development plan. 
196.25     (i) A participant has good cause for failure to cooperate 
196.26  with a work experience job placement if: 
196.27     (1) worksite participation adversely affects the 
196.28  caretaker's physical or mental health, or the participant is 
196.29  physically or mentally unfit to perform the assigned duties as 
196.30  verified by a physician, licensed or certified psychologist, 
196.31  physical therapist, or vocational expert; 
196.32     (2) the county agency determines that the caretaker does 
196.33  not possess the skill or knowledge required for the work; 
196.34     (3) the assignment requires joining, resigning from, or 
196.35  refraining from joining a legitimate labor union, or the 
196.36  assignment is to a site subject to a strike or lockout; 
197.1      (4) the distance to the site prohibits walking and neither 
197.2   public nor private transportation is available; 
197.3      (5) the working hours or nature of the employment 
197.4   interferes with the person's religious observances, convictions, 
197.5   or beliefs; 
197.6      (6) the assignment involves political or partisan 
197.7   activities; 
197.8      (7) there are circumstances beyond the household's control, 
197.9   such as illness or a household emergency; 
197.10     (8) the unavailability of child care for a child between 
197.11  the ages of six and 12; or 
197.12     (9) there are costs of transportation and other 
197.13  work-related expenses that the participant is expected to incur 
197.14  out-of-pocket and those costs are not reimbursed. 
197.15     (j) A recipient who has failed without good cause to 
197.16  participate in or comply with the work experience job placement 
197.17  shall be terminated from participation in work experience job 
197.18  activities.  If the recipient is not exempt from mandatory food 
197.19  stamp employment and training program participation under 
197.20  section 256D.051, subdivision 3a, the recipient will be assigned 
197.21  to other mandatory program activities.  If the recipient is 
197.22  exempt from mandatory participation but is participating as a 
197.23  volunteer, the person shall be terminated from the food stamp 
197.24  employment and training program. 
197.25     Sec. 33.  Minnesota Statutes 1996, section 256D.0511, 
197.26  subdivision 2, is amended to read: 
197.27     Subd. 2.  [BUDGETING LUMP-SUMS.] Nonrecurring lump-sum 
197.28  income received by a recipient of general assistance must be 
197.29  budgeted in the normal retrospective cycle.  Nonrecurring 
197.30  lump-sum income received by an applicant for general assistance 
197.31  who is ineligible for AFDC due to a nonrecurring lump-sum 
197.32  payment is prospectively budgeted.  When a recipient's income, 
197.33  after application of the applicable disregards, exceeds the need 
197.34  standard because of receipt of earned or unearned lump-sum 
197.35  income, the recipient will be ineligible for the full number of 
197.36  months.  To calculate, divide the sum of the lump-sum income and 
198.1   other income by the monthly need standard for a single adult or 
198.2   eligible couple.  Any income remaining from this calculation is 
198.3   income in the first month following the period of 
198.4   ineligibility.  The first month of ineligibility is the payment 
198.5   month that corresponds with the budget month in which the 
198.6   lump-sum income was received.  A period of ineligibility must be 
198.7   shortened when the standard of need increases and the amount the 
198.8   recipient would have received also changes because an amount is 
198.9   documented as stolen, an amount is unavailable because a member 
198.10  of the assistance unit left the unit with that amount and has 
198.11  not returned, an amount is paid by the recipient during the 
198.12  period of ineligibility to cover a cost that would not otherwise 
198.13  qualify for emergency assistance, or the recipient incurs and 
198.14  pays for medical expenses which would be covered by general 
198.15  assistance medical coverage if eligibility existed. 
198.16     Sec. 34.  Minnesota Statutes 1996, section 256D.055, is 
198.17  amended to read: 
198.18     256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 
198.19     The commissioner of human services shall issue a request 
198.20  for proposals from counties to submit a plan for developing and 
198.21  implementing a county-designed program.  The plan shall be for 
198.22  first-time applicants for aid to families with dependent 
198.23  children (AFDC) Minnesota family investment program-statewide 
198.24  (MFIP-S) and family general assistance (FGA) and must emphasize 
198.25  the importance of becoming employed and oriented into the work 
198.26  force in order to become self-sufficient.  The plan must target 
198.27  public assistance applicants who are most likely to become 
198.28  self-sufficient quickly with short-term assistance or services 
198.29  such as child care, child support enforcement, or employment and 
198.30  training services.  
198.31     The plan may include vendor payments, mandatory job search, 
198.32  refocusing existing county or provider efforts, or other program 
198.33  features.  The commissioner may approve a county plan which 
198.34  allows a county to use other program funding for the county work 
198.35  focus program in a more flexible manner.  Nothing in this 
198.36  section shall allow payments made to the public assistance 
199.1   applicant to be less than the amount the applicant would have 
199.2   received if the program had not been implemented, or reduce or 
199.3   eliminate a category of eligible participants from the program 
199.4   without legislative approval.  
199.5      The commissioner shall not approve a county plan that would 
199.6   have an adverse impact on the Minnesota family investment plan 
199.7   demonstration.  If the plan is approved by the commissioner, the 
199.8   county may implement the plan.  If the plan is approved by the 
199.9   commissioner, but a federal waiver is necessary to implement the 
199.10  plan, the commissioner shall apply for the necessary federal 
199.11  waivers.  
199.12     Sec. 35.  Minnesota Statutes 1996, section 256D.06, 
199.13  subdivision 2, is amended to read: 
199.14     Subd. 2.  Notwithstanding the provisions of subdivision 1, 
199.15  a grant of general assistance shall be made to an eligible 
199.16  individual, single adult or married couple, or family for an 
199.17  emergency need, as defined in rules promulgated by the 
199.18  commissioner, where the recipient requests temporary assistance 
199.19  not exceeding 30 days if an emergency situation appears to exist 
199.20  and the individual is ineligible for the program of emergency 
199.21  assistance under aid to families with dependent children and is 
199.22  not a recipient of aid to families with dependent children at 
199.23  the time of application hereunder.  If an applicant or recipient 
199.24  relates facts to the county agency which may be sufficient to 
199.25  constitute an emergency situation, the county agency shall 
199.26  advise the person of the procedure for applying for assistance 
199.27  pursuant according to this subdivision.  
199.28     Sec. 36.  Minnesota Statutes 1996, section 256D.08, 
199.29  subdivision 1, is amended to read: 
199.30     Subdivision 1.  In determining eligibility of a family, 
199.31  single adult or married couple, or individual there shall be 
199.32  excluded the following resources shall be excluded: 
199.33     (1) real or personal property or liquid assets which do not 
199.34  exceed those permitted under the federally aided assistance 
199.35  program known as aid to families with dependent children $1,000; 
199.36  and 
200.1      (2) other property which has been determined, in accordance 
200.2   with and subject according to limitations contained in rules 
200.3   promulgated by the commissioner, to be essential to the family 
200.4   or individual a single adult or married couple as a means of 
200.5   self-support or self-care or which is producing income that is 
200.6   being used for the support of the individual or family single 
200.7   adult or married couple.  The commissioner shall further provide 
200.8   by rule the conditions for those situations in which property 
200.9   not excluded under this subdivision may be retained by 
200.10  the family or individual single adult or married couple where 
200.11  there is a reasonable probability that in the foreseeable future 
200.12  the property will be used for the self-support of the individual 
200.13  or family single adult or married couple; and 
200.14     (3) payments, made pursuant according to litigation and 
200.15  subsequent appropriation by the United States Congress, of funds 
200.16  to compensate members of Indian tribes for the taking of tribal 
200.17  land by the federal government. 
200.18     Sec. 37.  Minnesota Statutes 1996, section 256D.08, 
200.19  subdivision 2, is amended to read: 
200.20     Subd. 2.  Notwithstanding any other provision of sections 
200.21  256D.01 to 256D.21, the commissioner shall provide by rule for 
200.22  the exclusion of property from the determination of eligibility 
200.23  for general assistance when it appears likely that the need for 
200.24  general assistance will not exceed 30 days or an undue hardship 
200.25  would be imposed on an individual or family a single adult or 
200.26  married couple by the forced disposal of the property.  
200.27     Sec. 38.  Minnesota Statutes 1996, section 256D.09, is 
200.28  amended by adding a subdivision to read: 
200.29     Subd. 2b.  If at any time there is verification that the 
200.30  client's disability is dependent upon their continued drug 
200.31  addiction or alcoholism, general assistance for rent and 
200.32  utilities must be made in the form of vendor payments. 
200.33     Verification of drug addiction or alcoholism can be 
200.34  received from: 
200.35     (1) denial of Social Security benefits based on drug 
200.36  addiction or alcoholism; 
201.1      (2) statement from the state medical review team that the 
201.2   person's disability is dependent upon continued drug addiction 
201.3   or alcoholism; or 
201.4      (3) doctor's statement that the person's disability is 
201.5   dependent upon continued drug addiction or alcoholism. 
201.6      Sec. 39.  Minnesota Statutes 1996, section 256D.435, 
201.7   subdivision 3, is amended to read: 
201.8      Subd. 3.  [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 
201.9   Persons who live with the applicant or recipient, who have unmet 
201.10  needs and for whom the applicant or recipient has financial 
201.11  responsibility, must apply for and, if eligible, accept AFDC 
201.12  MFIP-S and other federally funded benefits.  
201.13     Sec. 40.  Minnesota Statutes 1996, section 256D.44, 
201.14  subdivision 5, is amended to read: 
201.15     Subd. 5.  [SPECIAL NEEDS.] In addition to the state 
201.16  standards of assistance established in subdivisions 1 to 4, 
201.17  payments are allowed for the following special needs of 
201.18  recipients of Minnesota supplemental aid who are not residents 
201.19  of a nursing home, a regional treatment center, or a group 
201.20  residential housing facility:. 
201.21     (a) The county agency shall pay a monthly allowance for 
201.22  medically prescribed diets payable under the AFDC program 
201.23  Minnesota family investment program-statewide if the cost of 
201.24  those additional dietary needs cannot be met through some other 
201.25  maintenance benefit.  
201.26     (b) Payment for nonrecurring special needs must be allowed 
201.27  for necessary home repairs or necessary repairs or replacement 
201.28  of household furniture and appliances using the payment standard 
201.29  of the AFDC program Minnesota family investment 
201.30  program-statewide for these expenses, as long as other funding 
201.31  sources are not available.  
201.32     (c) A fee for guardian or conservator service is allowed at 
201.33  a reasonable rate negotiated by the county or approved by the 
201.34  court.  This rate shall not exceed five percent of the 
201.35  assistance unit's gross monthly income up to a maximum of $100 
201.36  per month.  If the guardian or conservator is a member of the 
202.1   county agency staff, no fee is allowed. 
202.2      (d) The county agency shall continue to pay a monthly 
202.3   allowance of $68 for restaurant meals for a person who was 
202.4   receiving a restaurant meal allowance on June 1, 1990, and who 
202.5   eats two or more meals in a restaurant daily.  The allowance 
202.6   must continue until the person has not received Minnesota 
202.7   supplemental aid for one full calendar month or until the 
202.8   person's living arrangement changes and the person no longer 
202.9   meets the criteria for the restaurant meal allowance, whichever 
202.10  occurs first. 
202.11     (e) A fee of ten percent of the recipient's gross income or 
202.12  $25, whichever is less, is allowed for representative payee 
202.13  services provided by an agency that meets the requirements under 
202.14  SSI regulations to charge a fee for representative payee 
202.15  services.  This special need is available to all recipients of 
202.16  Minnesota supplemental aid regardless of their living 
202.17  arrangement. 
202.18     Sec. 41.  Minnesota Statutes 1996, section 256F.04, 
202.19  subdivision 1, is amended to read: 
202.20     Subdivision 1.  [FAMILY PRESERVATION FUND.] The 
202.21  commissioner shall establish a family preservation fund to 
202.22  assist counties in providing placement prevention and family 
202.23  reunification services.  This fund shall include a basic grant 
202.24  for family preservation services, a placement earnings grant 
202.25  under section 256.8711, subdivision 6b, paragraph (a), and a 
202.26  development grant under section 256.8711, subdivision 6a, to 
202.27  assist counties in developing and expanding their family 
202.28  preservation core services as defined in section 256F.03, 
202.29  subdivision 10.  Beginning with calendar year 1998, after each 
202.30  annual or quarterly calculation, these three component grants 
202.31  shall be added together and treated as a single family 
202.32  preservation grant. 
202.33     Sec. 42.  Minnesota Statutes 1996, section 256F.04, 
202.34  subdivision 2, is amended to read: 
202.35     Subd. 2.  [FORMS AND INSTRUCTIONS.] The commissioner shall 
202.36  provide necessary forms and instructions to the counties for 
203.1   their community social services plan, as required in section 
203.2   256E.09, that incorporate the information necessary to apply for 
203.3   a family preservation fund grant, and to exercise county options 
203.4   under section 256F.05, subdivisions 7, paragraph (a), or 
203.5   subdivision 8, paragraph (c).  
203.6      Sec. 43.  Minnesota Statutes 1996, section 256F.05, 
203.7   subdivision 2, is amended to read: 
203.8      Subd. 2.  [MONEY AVAILABLE FOR THE BASIC GRANT FAMILY 
203.9   PRESERVATION.] Money appropriated for family preservation under 
203.10  sections 256F.04 to 256F.07, together with an amount as 
203.11  determined by the commissioner of title IV-B funds distributed 
203.12  to Minnesota according to the Social Security Act, United States 
203.13  Code, title 42, chapter 7, subchapter IV, part B, section 621, 
203.14  must be distributed to counties on a calendar year basis 
203.15  according to the formula in subdivision 3. 
203.16     Sec. 44.  Minnesota Statutes 1996, section 256F.05, 
203.17  subdivision 3, is amended to read: 
203.18     Subd. 3.  [BASIC GRANT FORMULA.] (a) The amount of money 
203.19  allocated to counties under subdivision 2 shall first be 
203.20  allocated in amounts equal to each county's guaranteed floor 
203.21  according to paragraph (b), and second, any remaining available 
203.22  funds allocated as follows: 
203.23     (1) 90 50 percent of the funds shall be allocated based on 
203.24  the population of the county under age 19 years as compared to 
203.25  the state as a whole as determined by the most recent data from 
203.26  the state demographer's office; and 
203.27     (2) ten 20 percent of funds shall be allocated based on the 
203.28  county's percentage share of the unduplicated number of families 
203.29  who received family preservation services under section 256F.03, 
203.30  subdivision 5, paragraphs (a), (b), (c), and (e) in the most 
203.31  recent calendar year available as determined by the 
203.32  commissioner; 
203.33     (3) ten percent of the funds shall be allocated based on 
203.34  the county's percentage share of the unduplicated number of 
203.35  children in substitute care in the most recent calendar year 
203.36  available as determined by the commissioner; 
204.1      (4) ten percent of the funds shall be allocated based on 
204.2   the county's percentage share of the number of determined 
204.3   maltreatment reports in the most recent calendar year available 
204.4   as determined by the commissioner; 
204.5      (5) five percent of the funds shall be allocated based on 
204.6   the county's percentage share of the number of American Indian 
204.7   children under age 18 residing in the county in the most recent 
204.8   calendar year as determined by the commissioner; and 
204.9      (6) five percent of the funds shall be allocated based on 
204.10  the county's percentage share of the number of minority children 
204.11  of color receiving children's case management services as 
204.12  defined by the commissioner based on the most recent data as 
204.13  determined by the commissioner. 
204.14     (b) Each county's basic grant guaranteed floor shall be 
204.15  calculated as follows: 
204.16     (1) 90 percent of the county's allocation received in the 
204.17  preceding calendar year.  For calendar year 1996 only, the 
204.18  allocation received in the preceding calendar year shall be 
204.19  determined by the commissioner based on the funding previously 
204.20  distributed as separate grants under sections 256F.04 to 256F.07 
204.21  or $25,000, whichever is greater; and 
204.22     (2) when the amounts of funds available for allocation is 
204.23  less than the amount available in the previous year, each 
204.24  county's previous year allocation shall be reduced in proportion 
204.25  to the reduction in the statewide funding, for the purpose of 
204.26  establishing the guaranteed floor. 
204.27     (c) The commissioner shall regularly review the use of 
204.28  family preservation fund allocations by county.  The 
204.29  commissioner may reallocate unexpended or unencumbered money at 
204.30  any time among those counties that have expended or are 
204.31  projected to expend their full allocation. 
204.32     (d) For the period of July 1, 1997 to December 31, 1998 
204.33  only, each county shall receive an 18-month allocation.  For the 
204.34  purposes of determining the guaranteed floor for this 18-month 
204.35  allocation, the allocation received in the preceding calendar 
204.36  year shall be determined by the commissioner based on the 
205.1   funding previously distributed separately under sections 
205.2   256.8711 and 256F.04. 
205.3      Sec. 45.  Minnesota Statutes 1996, section 256F.05, 
205.4   subdivision 4, is amended to read: 
205.5      Subd. 4.  [PAYMENTS.] The commissioner shall make grant 
205.6   payments to each county whose biennial community social services 
205.7   plan has been approved under section 256F.04, subdivision 2.  
205.8   The basic grant under subdivisions 2 and 3 and the development 
205.9   grant under section 256.8711, subdivision 6a, shall be paid to 
205.10  counties in four installments per year.  The commissioner may 
205.11  certify the payments for the first three months of a calendar 
205.12  year.  Subsequent payments shall be based on reported 
205.13  expenditures and may be adjusted for anticipated spending 
205.14  patterns.  The placement earnings grant under section 256.8711, 
205.15  subdivision 6b, paragraph (a), shall be based on earnings and 
205.16  coordinated with the other payments.  In calendar years 1996 and 
205.17  1997, the placement earnings grant and the development grant 
205.18  shall be distributed separately from the basic grant, except as 
205.19  provided in subdivision 7, paragraph (a).  Beginning with 
205.20  calendar year 1998, after each annual or quarterly calculation, 
205.21  these three component grants shall be added together into a 
205.22  single family preservation fund grant and treated as a single 
205.23  grant. 
205.24     Sec. 46.  Minnesota Statutes 1996, section 256F.05, 
205.25  subdivision 8, is amended to read: 
205.26     Subd. 8.  [USES OF FAMILY PRESERVATION FUND GRANTS.] For 
205.27  both basic grants and single family preservation fund grants:  
205.28  (a) A county which has not demonstrated that year that its 
205.29  family preservation core services are developed as provided in 
205.30  subdivision 1a, must use its family preservation fund grant 
205.31  exclusively for family preservation services defined in section 
205.32  256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 
205.33     (b) A county which has demonstrated that year that its 
205.34  family preservation core services are developed becomes eligible 
205.35  either to continue using its family preservation fund grant as 
205.36  provided in paragraph (a), or to exercise the expanded service 
206.1   option under paragraph (c). 
206.2      (c) The expanded service option permits an eligible county 
206.3   to use its family preservation fund grant for child welfare 
206.4   preventative preventive services as defined in section 256F.10, 
206.5   subdivision 7, paragraph (d).  For purposes of this section, 
206.6   child welfare preventive services are those services directed 
206.7   toward a specific child or family that further the goals of 
206.8   section 256F.01 and include assessments, family preservation 
206.9   services, service coordination, community-based treatment, 
206.10  crisis nursery services when the parents retain custody and 
206.11  there is no voluntary placement agreement with a child-placing 
206.12  agency, respite care except when it is provided under a medical 
206.13  assistance waiver, home-based services, and other related 
206.14  services.  For purposes of this section, child welfare 
206.15  preventive services shall not include shelter care or other 
206.16  placement services under the authority of the court or public 
206.17  agency to address an emergency.  To exercise this option, an 
206.18  eligible county must notify the commissioner in writing of its 
206.19  intention to do so no later than 30 days into the quarter during 
206.20  which it intends to begin or in its county plan, as provided in 
206.21  section 256F.04, subdivision 2.  Effective with the first day of 
206.22  that quarter, the county must maintain its base level of 
206.23  expenditures for child welfare preventative preventive services 
206.24  and use the family preservation fund to expand them.  The base 
206.25  level of expenditures for a county shall be that established 
206.26  under section 256F.10, subdivision 7.  For counties which have 
206.27  no such base established, a comparable base shall be established 
206.28  with the base year being the calendar year ending at least two 
206.29  calendar quarters before the first calendar quarter in which the 
206.30  county exercises its expanded service option.  The commissioner 
206.31  shall, at the request of the counties, reduce, suspend, or 
206.32  eliminate either or both of a county's obligations to continue 
206.33  the base level of expenditures and to expand child welfare 
206.34  preventative preventive services based on conditions described 
206.35  in section 256F.10, subdivision 7, paragraph (b) or (c) under 
206.36  extraordinary circumstances.  
207.1      (d) Each county's placement earnings and development grant 
207.2   shall be determined under section 256.8711, but after each 
207.3   annual or quarterly calculation, if added to that county's basic 
207.4   grant, the three component grants shall be treated as a single 
207.5   family preservation fund grant. 
207.6      Sec. 47.  Minnesota Statutes 1996, section 256F.06, 
207.7   subdivision 1, is amended to read: 
207.8      Subdivision 1.  [RESPONSIBILITIES.] A county board may, 
207.9   alone or in combination with other county boards, apply for a 
207.10  family preservation fund grant as provided in section 256F.04, 
207.11  subdivision 2.  Upon approval of the grant, the county board may 
207.12  contract for or directly provide family-based and other eligible 
207.13  services.  A county board may contract with or directly provide 
207.14  eligible services to children and families through a local 
207.15  collaborative. 
207.16     Sec. 48.  Minnesota Statutes 1996, section 256F.06, 
207.17  subdivision 2, is amended to read: 
207.18     Subd. 2.  [DEVELOPING FAMILY PRESERVATION CORE SERVICES.] A 
207.19  county board shall endeavor to develop and expand its family 
207.20  preservation core services.  When a county can demonstrate that 
207.21  its family preservation core services are developed as provided 
207.22  in section 256F.05, subdivision 1a, a county board becomes 
207.23  eligible to exercise the expanded service option under section 
207.24  256F.05, subdivision 8, paragraph (c).  For calendar years 1996 
207.25  and 1997, the county board also becomes eligible to request that 
207.26  its basic, placement earnings, and development grants be added 
207.27  into a single grant under section 256F.05, subdivision 7, 
207.28  paragraph (a). 
207.29     Sec. 49.  Minnesota Statutes 1996, section 259.67, 
207.30  subdivision 4, is amended to read: 
207.31     Subd. 4.  [ELIGIBILITY CONDITIONS.] (a) The placing agency 
207.32  shall determine use the AFDC requirements in effect on June 1, 
207.33  1995, when determining the child's eligibility for adoption 
207.34  assistance under title IV-E of the Social Security Act.  If the 
207.35  child does not qualify, the placing agency shall certify a child 
207.36  as eligible for state funded adoption assistance only if the 
208.1   following criteria are met:  
208.2      (1) Due to the child's characteristics or circumstances it 
208.3   would be difficult to provide the child an adoptive home without 
208.4   adoption assistance.  
208.5      (2)(i) A placement agency has made reasonable efforts to 
208.6   place the child for adoption without adoption assistance, but 
208.7   has been unsuccessful; or 
208.8      (ii) the child's licensed foster parents desire to adopt 
208.9   the child and it is determined by the placing agency that the 
208.10  adoption is in the best interest of the child. 
208.11     (3) The child has been a ward of the commissioner or a 
208.12  Minnesota-licensed child-placing agency.  
208.13     (b) For purposes of this subdivision, the characteristics 
208.14  or circumstances that may be considered in determining whether a 
208.15  child is a child with special needs under United States Code, 
208.16  title 42, chapter 7, subchapter IV, part E, or meets the 
208.17  requirements of paragraph (a), clause (1), are the following: 
208.18     (1) The child is a member of a sibling group to be placed 
208.19  as one unit in which at least one sibling is older than 15 
208.20  months of age or is described in clause (2) or (3). 
208.21     (2) The child has documented physical, mental, emotional, 
208.22  or behavioral disabilities. 
208.23     (3) The child has a high risk of developing physical, 
208.24  mental, emotional, or behavioral disabilities. 
208.25     (c) When a child's eligibility for adoption assistance is 
208.26  based upon the high risk of developing physical, mental, 
208.27  emotional, or behavioral disabilities, payments shall not be 
208.28  made under the adoption assistance agreement unless and until 
208.29  the potential disability manifests itself as documented by an 
208.30  appropriate health care professional. 
208.31     Sec. 50.  [REPEALER.] 
208.32     (a) Minnesota Statutes 1996, sections 256.8711; 256D.01, 
208.33  subdivision 1e; 256D.02, subdivisions 5 and 6; 256D.05; 
208.34  256D.0511, subdivisions 1, 3, 4, and 5; and 256F.05, 
208.35  subdivisions 5 and 7, are repealed. 
208.36     (b) Minnesota Statutes 1996, section 256B.055, subdivision 
209.1   3, is repealed June 30, 1997. 
209.2      (c) Minnesota Statutes 1996, section 256B.062, is repealed 
209.3   June 30, 1997. 
209.4      (d) Minnesota Statutes 1996, section 256D.02, subdivision 
209.5   5, is repealed effective January 1, 1998. 
209.6      Sec. 51.  [EFFECTIVE DATE.] 
209.7      Sections 1 to 50 are effective July 1, 1997. 
209.8                              ARTICLE 5 
209.9                     ACCELERATING STATE PAYMENTS 
209.10     Section 1.  Minnesota Statutes 1996, section 256.025, 
209.11  subdivision 2, is amended to read: 
209.12     Subd. 2.  [COVERED PROGRAMS AND SERVICES.] The procedures 
209.13  in this section govern payment of county agency expenditures for 
209.14  benefits and services distributed under the following programs: 
209.15     (1) aid to families with dependent children in effect until 
209.16  June 30, 1997, under sections 256.82, subdivision 1, and 
209.17  256.935, subdivision 1, for assistance costs incurred prior to 
209.18  July 1, 1997; 
209.19     (2) medical assistance under sections 256B.041, subdivision 
209.20  5, and 256B.19, subdivision 1, for assistance costs incurred 
209.21  prior to July 1, 1997; 
209.22     (3) general assistance medical care under section 256D.03, 
209.23  subdivision 6, for assistance costs incurred prior to July 1, 
209.24  1997; 
209.25     (4) general assistance under section 256D.03, subdivision 
209.26  2, for assistance costs incurred prior to July 1, 1997; 
209.27     (5) work readiness under section 256D.03, subdivision 2, 
209.28  for assistance costs incurred prior to July 1, 1995; 
209.29     (6) emergency assistance under section 256.871, subdivision 
209.30  6, for assistance costs incurred prior to July 1, 1997; 
209.31     (7) Minnesota supplemental aid under section 256D.36, 
209.32  subdivision 1, for assistance costs incurred prior to July 1, 
209.33  1997; 
209.34     (8) preadmission screening and alternative care grants for 
209.35  assistance costs incurred prior to July 1, 1997; 
209.36     (9) work readiness services under section 256D.051 for 
210.1   employment and training services costs incurred prior to July 1, 
210.2   1995; 
210.3      (10) case management services under section 256.736, 
210.4   subdivision 13, for case management service costs incurred prior 
210.5   to July 1, 1995; 
210.6      (11) general assistance claims processing, medical 
210.7   transportation and related costs for assistance costs incurred 
210.8   prior to July 1, 1997; 
210.9      (12) medical assistance, medical transportation and related 
210.10  costs for assistance costs incurred prior to July 1, 1997; and 
210.11     (13) group residential housing under section 256I.05, 
210.12  subdivision 8, for assistance costs incurred prior to July 1, 
210.13  1997, transferred from programs in clauses (4) and (7). 
210.14     Sec. 2.  Minnesota Statutes 1996, section 256.025, 
210.15  subdivision 4, is amended to read: 
210.16     Subd. 4.  [PAYMENT SCHEDULE.] Except as provided for in 
210.17  subdivision 3, beginning July 1, 1991, the state will reimburse 
210.18  counties, according to the following payment schedule, for the 
210.19  county share of county agency expenditures for the programs 
210.20  specified in subdivision 2. 
210.21     (a) Beginning July 1, 1991, the state will reimburse or pay 
210.22  the county share of county agency expenditures according to the 
210.23  reporting cycle as established by the commissioner, for the 
210.24  programs identified in subdivision 2.  Payments for the period 
210.25  of January 1 through July 31, for calendar years 1991, 1992, 
210.26  1993, 1994, and 1995 shall be made on or before July 10 in each 
210.27  of those years.  Payments for the period August through December 
210.28  for calendar years 1991, 1992, 1993, 1994, and 1995 shall be 
210.29  made on or before the third of each month thereafter through 
210.30  December 31 in each of those years. 
210.31     (b) Payment for 1/24 of the base amount and the January 
210.32  1996 county share of county agency expenditures growth amount 
210.33  for the programs identified in subdivision 2 shall be made on or 
210.34  before January 3, 1996.  For the period of February 1, 1996 
210.35  through July 31, 1996, payment of the base amount shall be made 
210.36  on or before July 10, 1996, and payment of the growth amount 
211.1   over the base amount shall be made on or before July 10, 1996.  
211.2   Payments for the period August 1996 through December 1996 shall 
211.3   be made on or before the third of each month thereafter through 
211.4   December 31, 1996. 
211.5      (c) Payment for the county share of county agency 
211.6   expenditures during January 1997 shall be made on or before 
211.7   January 3, 1997.  Payment for 1/24 of the base amount and the 
211.8   February 1997 county share of county agency expenditures growth 
211.9   amount for the programs identified in subdivision 2 shall be 
211.10  made on or before February 3, 1997.  For the period of March 1, 
211.11  1997 through July 31 June 30, 1997, payment of the base amount 
211.12  shall be made on or before July 10, 1997, and payment of the 
211.13  growth amount over the base amount shall be made on or before 
211.14  July 10, 1997.  Payments for the period August 1997 through 
211.15  December 1997 shall be made on or before the third of each month 
211.16  thereafter through December 31, 1997. 
211.17     (d) Monthly payments for the county share of county agency 
211.18  expenditures from January 1998 through February 1998 shall be 
211.19  made on or before the third of each month through February 
211.20  1998.  Payment for 1/24 of the base amount and the March 1998 
211.21  county share of county agency expenditures growth amount for the 
211.22  programs identified in subdivision 2 shall be made on or before 
211.23  March 1998.  For the period of April 1, 1998 through July 31, 
211.24  1998, payment of the base amount shall be made on or before July 
211.25  10, 1998, and payment of the growth amount over the base amount 
211.26  shall be made on or before July 10, 1998.  Payments for the 
211.27  period August 1998 through December 1998 shall be made on or 
211.28  before the third of each month thereafter through December 31, 
211.29  1998. 
211.30     (e) Monthly payments for the county share of county agency 
211.31  expenditures from January 1999 through March 1999 shall be made 
211.32  on or before the third of each month through March 1999.  
211.33  Payment for 1/24 of the base amount and the April 1999 county 
211.34  share of county agency expenditures growth amount for the 
211.35  programs identified in subdivision 2 shall be made on or before 
211.36  April 3, 1999.  For the period of May 1, 1999 through July 31, 
212.1   1999, payment of the base amount shall be made on or before July 
212.2   10, 1999, and payment of the growth amount over the base amount 
212.3   shall be made on or before July 10, 1999.  Payments for the 
212.4   period August 1999 through December 1999 shall be made on or 
212.5   before the third of each month thereafter through December 31, 
212.6   1999.  
212.7      (f) Monthly payments for the county share of county agency 
212.8   expenditures from January 2000 through April 2000 shall be made 
212.9   on or before the third of each month through April 2000.  
212.10  Payment for 1/24 of the base amount and the May 2000 county 
212.11  share of county agency expenditures growth amount for the 
212.12  programs identified in subdivision 2 shall be made on or before 
212.13  May 3, 2000.  For the period of June 1, 2000 through July 31, 
212.14  2000, payment of the base amount shall be made on or before July 
212.15  10, 2000, and payment of the growth amount over the base amount 
212.16  shall be made on or before July 10, 2000.  Payments for the 
212.17  period August 2000 through December 2000 shall be made on or 
212.18  before the third of each month thereafter through December 31, 
212.19  2000.  
212.20     (g) Monthly payments for the county share of county agency 
212.21  expenditures from January 2001 through May 2001 shall be made on 
212.22  or before the third of each month through May 2001.  Payment for 
212.23  1/24 of the base amount and the June 2001 county share of county 
212.24  agency expenditures growth amount for the programs identified in 
212.25  subdivision 2 shall be made on or before June 3, 2001.  Payments 
212.26  for the period July 2001 through December 2001 shall be made on 
212.27  or before the third of each month thereafter through December 
212.28  31, 2001. 
212.29     (h) Effective January 1, 2002, monthly payments for the 
212.30  county share of county agency expenditures shall be made 
212.31  subsequent to the first of each month. 
212.32     Payments under this subdivision are subject to the 
212.33  provisions of section 256.017.  
212.34     Sec. 3.  Minnesota Statutes 1996, section 256.82, 
212.35  subdivision 1, is amended to read: 
212.36     Subdivision 1.  [DIVISION OF COSTS AND PAYMENTS.] Based 
213.1   upon estimates submitted by the county agency to the state 
213.2   agency, which shall state the estimated required expenditures 
213.3   for the succeeding month, upon the direction of the state 
213.4   agency, payment shall be made monthly in advance by the state to 
213.5   the counties of all federal funds available for that purpose for 
213.6   such succeeding month.  The state share of the nonfederal 
213.7   portion of county agency expenditures shall be 85 100 percent.  
213.8   and the county share shall be 15 percent.  Benefits shall be 
213.9   issued to recipients by the state or county and funded according 
213.10  to section 256.025, subdivision 3, subject to provisions of 
213.11  section 256.017.  Beginning July 1, 1991, the state will 
213.12  reimburse counties according to the payment schedule in section 
213.13  256.025 for the county share of county agency expenditures under 
213.14  this subdivision from January 1, 1991, on.  Payment to counties 
213.15  under this subdivision is subject to the provisions of section 
213.16  256.017.  Adjustment of any overestimate or underestimate made 
213.17  by any county shall be paid upon the direction of the state 
213.18  agency in any succeeding month.  
213.19     Sec. 4.  Minnesota Statutes 1996, section 256.871, 
213.20  subdivision 6, is amended to read: 
213.21     Subd. 6.  [REPORTS OF ESTIMATED EXPENDITURES; PAYMENTS.] 
213.22  The county agency shall submit to the state agency reports 
213.23  required under section 256.01, subdivision 2, paragraph (17).  
213.24  Fiscal reports shall estimate expenditures for each succeeding 
213.25  month in such form as required by the state agency.  The state 
213.26  share of the nonfederal portion of eligible expenditures shall 
213.27  be ten 100 percent and the county share shall be 90 percent.  
213.28  Benefits shall be issued to recipients by the state or county 
213.29  and funded according to section 256.025, subdivision 3, subject 
213.30  to provisions of section 256.017.  Beginning July 1, 1991, the 
213.31  state will reimburse counties according to the payment schedule 
213.32  set forth in section 256.025 for the county share of county 
213.33  agency expenditures made under this subdivision from January 1, 
213.34  1991, on.  Payment under this subdivision is subject to the 
213.35  provisions of section 256.017.  Adjustment of any overestimate 
213.36  or underestimate made by any county shall be paid upon the 
214.1   direction of the state agency in any succeeding month. 
214.2      Sec. 5.  Minnesota Statutes 1996, section 256.935, is 
214.3   amended to read: 
214.4      256.935 [FUNERAL EXPENSES, PAYMENT BY COUNTY AGENCY.] 
214.5      Subdivision 1.  On the death of any person receiving public 
214.6   assistance through aid to dependent children, the county agency 
214.7   shall pay an amount for funeral expenses not exceeding the 
214.8   amount paid for comparable services under section 261.035 plus 
214.9   actual cemetery charges.  No funeral expenses shall be paid if 
214.10  the estate of the deceased is sufficient to pay such expenses or 
214.11  if the spouse, who was legally responsible for the support of 
214.12  the deceased while living, is able to pay such expenses; 
214.13  provided, that the additional payment or donation of the cost of 
214.14  cemetery lot, interment, religious service, or for the 
214.15  transportation of the body into or out of the community in which 
214.16  the deceased resided, shall not limit payment by the county 
214.17  agency as herein authorized.  Freedom of choice in the selection 
214.18  of a funeral director shall be granted to persons lawfully 
214.19  authorized to make arrangements for the burial of any such 
214.20  deceased recipient.  In determining the sufficiency of such 
214.21  estate, due regard shall be had for the nature and marketability 
214.22  of the assets of the estate.  The county agency may grant 
214.23  funeral expenses where the sale would cause undue loss to the 
214.24  estate.  Any amount paid for funeral expenses shall be a prior 
214.25  claim against the estate, as provided in section 524.3-805, and 
214.26  any amount recovered shall be reimbursed to the agency which 
214.27  paid the expenses.  The commissioner shall specify requirements 
214.28  for reports, including fiscal reports, according to section 
214.29  256.01, subdivision 2, paragraph (17).  The state share shall 
214.30  pay the entire amount of county agency expenditures shall be 50 
214.31  percent and the county share shall be 50 percent.  Benefits 
214.32  shall be issued to recipients by the state or county and funded 
214.33  according to section 256.025, subdivision 3, subject to 
214.34  provisions of section 256.017. 
214.35     Beginning July 1, 1991, the state will reimburse counties 
214.36  according to the payment schedule set forth in section 256.025 
215.1   for the county share of county agency expenditures made under 
215.2   this subdivision from January 1, 1991, on.  Payment under this 
215.3   subdivision is subject to the provisions of section 256.017. 
215.4      Sec. 6.  Minnesota Statutes 1996, section 256B.0913, 
215.5   subdivision 14, is amended to read: 
215.6      Subd. 14.  [REIMBURSEMENT AND RATE ADJUSTMENTS.] (a) 
215.7   Reimbursement for expenditures for the alternative care services 
215.8   as approved by the client's case manager shall be through the 
215.9   invoice processing procedures of the department's Medicaid 
215.10  Management Information System (MMIS).  To receive reimbursement, 
215.11  the county or vendor must submit invoices within 12 months 
215.12  following the date of service.  The county agency and its 
215.13  vendors under contract shall not be reimbursed for services 
215.14  which exceed the county allocation. 
215.15     (b) If a county collects less than 50 percent of the client 
215.16  premiums due under subdivision 12, the commissioner may withhold 
215.17  up to three percent of the county's final alternative care 
215.18  program allocation determined under subdivisions 10 and 11. 
215.19     (c) Beginning July 1, 1991, the state will reimburse 
215.20  counties, up to the limits of state appropriations, according to 
215.21  the payment schedule in section 256.025 for the county share of 
215.22  costs incurred under this subdivision on or after January 1, 
215.23  1991, for individuals who would be eligible for medical 
215.24  assistance within 180 days of admission to a nursing home. 
215.25     (d) (c) For fiscal years beginning on or after July 1, 
215.26  1993, the commissioner of human services shall not provide 
215.27  automatic annual inflation adjustments for alternative care 
215.28  services.  The commissioner of finance shall include as a budget 
215.29  change request in each biennial detailed expenditure budget 
215.30  submitted to the legislature under section 16A.11 annual 
215.31  adjustments in reimbursement rates for alternative care services 
215.32  based on the forecasted percentage change in the Home Health 
215.33  Agency Market Basket of Operating Costs, for the fiscal year 
215.34  beginning July 1, compared to the previous fiscal year, unless 
215.35  otherwise adjusted by statute.  The Home Health Agency Market 
215.36  Basket of Operating Costs is published by Data Resources, Inc.  
216.1   The forecast to be used is the one published for the calendar 
216.2   quarter beginning January 1, six months prior to the beginning 
216.3   of the fiscal year for which rates are set. 
216.4      (e) (d) The county shall negotiate individual rates with 
216.5   vendors and may be reimbursed for actual costs up to the greater 
216.6   of the county's current approved rate or 60 percent of the 
216.7   maximum rate in fiscal year 1994 and 65 percent of the maximum 
216.8   rate in fiscal year 1995 for each alternative care service.  
216.9   Notwithstanding any other rule or statutory provision to the 
216.10  contrary, the commissioner shall not be authorized to increase 
216.11  rates by an annual inflation factor, unless so authorized by the 
216.12  legislature. 
216.13     (f) (e) On July 1, 1993, the commissioner shall increase 
216.14  the maximum rate for home delivered meals to $4.50 per meal. 
216.15     Sec. 7.  Minnesota Statutes 1996, section 256B.19, 
216.16  subdivision 1, is amended to read: 
216.17     Subdivision 1.  [DIVISION OF COST.] (a) The state and 
216.18  county share of medical assistance costs not paid by federal 
216.19  funds shall be as follows:  
216.20     (1) ninety percent state funds and ten percent county 
216.21  funds, unless otherwise provided below; 
216.22     (2) beginning January 1, 1992, shall be 50 percent state 
216.23  funds and 50 percent county funds for the cost of placement of 
216.24  severely emotionally disturbed children in regional treatment 
216.25  centers.  
216.26     For counties that participate in a Medicaid demonstration 
216.27  project under sections 256B.69 and 256B.71, the division of the 
216.28  nonfederal share of medical assistance expenses for payments 
216.29  made to prepaid health plans or for payments made to health 
216.30  maintenance organizations in the form of prepaid capitation 
216.31  payments, this division of medical assistance expenses shall be 
216.32  95 percent by the state and five percent by the county of 
216.33  financial responsibility.  
216.34     (b) In counties where prepaid health plans are under 
216.35  contract to the commissioner to provide services to medical 
216.36  assistance recipients, the cost of court ordered treatment 
217.1   ordered without consulting the prepaid health plan that does not 
217.2   include diagnostic evaluation, recommendation, and referral for 
217.3   treatment by the prepaid health plan is the responsibility of 
217.4   the county of financial responsibility.  
217.5      Sec. 8.  Minnesota Statutes 1996, section 256B.19, 
217.6   subdivision 2a, is amended to read: 
217.7      Subd. 2a.  [DIVISION OF COSTS.] Beginning July 1, 1991, the 
217.8   state shall reimburse counties according to the payment schedule 
217.9   in section 256.025 for the nonfederal share of costs incurred 
217.10  for medical assistance common carrier transportation and related 
217.11  travel expenses provided for medical purposes to medical 
217.12  assistance recipients from January 1, 1991, on.  For purposes of 
217.13  this subdivision, transportation shall have the meaning given it 
217.14  in Code of Federal Regulations, title 42, section 440.170(a), as 
217.15  amended through October 1, 1987, and travel expenses shall have 
217.16  the meaning given in Code of Federal Regulations, title 42, 
217.17  section 440.170(a)(3), as amended through October 1, 1987. 
217.18     The county shall ensure that only the least costly, most 
217.19  appropriate transportation and travel expenses are used.  The 
217.20  state may enter into volume purchase contracts, or use a 
217.21  competitive bidding process, whenever feasible, to minimize the 
217.22  costs of transportation services.  If the state has entered into 
217.23  a volume purchase contract or used the competitive bidding 
217.24  procedures of chapter 16B to arrange for transportation 
217.25  services, the county may be required to use such arrangements to 
217.26  be eligible for state reimbursement of the 50 percent county 
217.27  share of medical assistance common carrier transportation and 
217.28  related travel expenses provided for medical purposes. 
217.29     Sec. 9.  Minnesota Statutes 1996, section 256B.19, 
217.30  subdivision 2b, is amended to read: 
217.31     Subd. 2b.  [PILOT PROJECT REIMBURSEMENT.] In counties where 
217.32  a pilot or demonstration project is operated under the medical 
217.33  assistance program, the state may pay 100 percent of the 
217.34  administrative costs for the pilot or demonstration project 
217.35  after June 30, 1990.  Reimbursement for these costs is subject 
217.36  to section 256.025. 
218.1      Sec. 10.  Minnesota Statutes 1996, section 256D.03, 
218.2   subdivision 2, is amended to read: 
218.3      Subd. 2.  After December 31, 1980, State aid shall be paid 
218.4   for 75 percent of all general assistance and grants up to the 
218.5   standards of section 256D.01, subdivision 1a, and according to 
218.6   procedures established by the commissioner, except as provided 
218.7   for under section 256.017.  Benefits shall be issued to 
218.8   recipients by the state or county and funded according to 
218.9   section 256.025, subdivision 3.  
218.10     Beginning July 1, 1991, the state will reimburse counties 
218.11  according to the payment schedule in section 256.025 for the 
218.12  county share of county agency expenditures made under this 
218.13  subdivision from January 1, 1991, on.  Payment to counties under 
218.14  this subdivision is subject to the provisions of section 256.017.
218.15     Sec. 11.  Minnesota Statutes 1996, section 256D.03, 
218.16  subdivision 2a, is amended to read: 
218.17     Subd. 2a.  [COUNTY AGENCY OPTIONS.] Any county agency may, 
218.18  from its own resources, make payments of general assistance: (a) 
218.19  at a standard higher than that established by the commissioner 
218.20  without reference to the standards of section 256D.01, 
218.21  subdivision 1; or (b) to persons not meeting the eligibility 
218.22  standards set forth in section 256D.05, subdivision 1, but for 
218.23  whom the aid would further the purposes established in the 
218.24  general assistance program in accordance with rules adopted by 
218.25  the commissioner pursuant to the administrative procedure act.  
218.26  The Minnesota department of human services may maintain client 
218.27  records and issue these payments, providing the cost of benefits 
218.28  is paid by the counties to the department of human services in 
218.29  accordance with sections according to section 256.01 and 
218.30  256.025, subdivision 3. 
218.31     Sec. 12.  Minnesota Statutes 1996, section 256D.03, 
218.32  subdivision 6, is amended to read: 
218.33     Subd. 6.  [DIVISION OF COSTS.] The state share of county 
218.34  agency expenditures for general assistance medical care shall be 
218.35  90 100 percent and the county share shall be ten percent.  
218.36  Payments made under this subdivision shall be made in accordance 
219.1   with according to sections 256B.041, subdivision 5 and 256B.19, 
219.2   subdivision 1.  In counties where a pilot or demonstration 
219.3   project is operated for general assistance medical care 
219.4   services, the state may pay 100 percent of the costs of 
219.5   administering the pilot or demonstration project.  Reimbursement 
219.6   for these costs is subject to section 256.025. 
219.7      Beginning July 1, 1991, the state will reimburse counties 
219.8   according to the payment schedule in section 256.025 for the 
219.9   county share of costs incurred under this subdivision from 
219.10  January 1, 1991, on.  Payment to counties under this subdivision 
219.11  is subject to the provisions of section 256.017. 
219.12     Notwithstanding any provision to the contrary, beginning 
219.13  July 1, 1991, the state shall pay 100 percent of the costs for 
219.14  centralized claims processing by the department of 
219.15  administration relative to claims beginning January 1, 1991, and 
219.16  submitted on behalf of general assistance medical care 
219.17  recipients by vendors in the general assistance medical care 
219.18  program. 
219.19     Beginning July 1, 1991, the state shall reimburse counties 
219.20  up to the limit of state appropriations for general assistance 
219.21  medical care common carrier transportation and related travel 
219.22  expenses provided for medical purposes after December 31, 1990.  
219.23  Reimbursement shall be provided according to the payment 
219.24  schedule set forth in section 256.025.  For purposes of this 
219.25  subdivision, transportation shall have the meaning given it in 
219.26  Code of Federal Regulations, title 42, section 440.170(a), as 
219.27  amended through October 1, 1987, and travel expenses shall have 
219.28  the meaning given in Code of Federal Regulations, title 42, 
219.29  section 440.170(a)(3), as amended through October 1, 1987. 
219.30     The county shall ensure that only the least costly most 
219.31  appropriate transportation and travel expenses are used.  The 
219.32  state may enter into volume purchase contracts, or use a 
219.33  competitive bidding process, whenever feasible, to minimize the 
219.34  costs of transportation services.  If the state has entered into 
219.35  a volume purchase contract or used the competitive bidding 
219.36  procedures of chapter 16B to arrange for transportation 
220.1   services, the county may be required to use such arrangements to 
220.2   be eligible for state reimbursement for general assistance 
220.3   medical care common carrier transportation and related travel 
220.4   expenses provided for medical purposes. 
220.5      In counties where prepaid health plans are under contract 
220.6   to the commissioner to provide services to general assistance 
220.7   medical care recipients, the cost of court ordered treatment 
220.8   that does not include diagnostic evaluation, recommendation, or 
220.9   referral for treatment by the prepaid health plan is the 
220.10  responsibility of the county of financial responsibility. 
220.11     Sec. 13.  Minnesota Statutes 1996, section 256D.36, is 
220.12  amended to read: 
220.13     256D.36 [STATE PARTICIPATION.] 
220.14     Subdivision 1.  [STATE PARTICIPATION.] The state share of 
220.15  aid paid shall be 85 100 percent. and the county share shall be 
220.16  15 percent.  Benefits shall be issued to recipients by the state 
220.17  or county and funded according to section 256.025, subdivision 
220.18  3, subject to provisions of section 256.017. 
220.19     Beginning July 1, 1991, the state will reimburse counties 
220.20  according to the payment schedule in section 256.025 for the 
220.21  county share of county agency expenditures for financial 
220.22  benefits to individuals under this subdivision from January 1, 
220.23  1991, on.  Payment to counties under this subdivision is subject 
220.24  to the provisions of section 256.017. 
220.25     Sec. 14.  [REPEALER.] 
220.26     Minnesota Statutes 1996, sections 256.82, subdivision 1; 
220.27  256B.041, subdivision 5; and 256B.19, subdivision 1a, are 
220.28  repealed. 
220.29     Sec. 15.  [EFFECTIVE DATE.] 
220.30     Sections 1 to 14 are effective July 1, 1997. 
220.31                             ARTICLE 6
220.32                TECHNICAL CHANGES; CROSS REFERENCES 
220.33     Section 1.  Minnesota Statutes 1996, section 13.46, 
220.34  subdivision 1, is amended to read: 
220.35     Subdivision 1.  [DEFINITIONS.] As used in this section: 
220.36     (a) "Individual" means an individual pursuant according to 
221.1   section 13.02, subdivision 8, but does not include a vendor of 
221.2   services. 
221.3      (b) "Program" includes all programs for which authority is 
221.4   vested in a component of the welfare system pursuant according 
221.5   to statute or federal law, including, but not limited to, aid to 
221.6   families with dependent children Minnesota family investment 
221.7   program-statewide, medical assistance, general assistance, work 
221.8   readiness, general assistance medical care, and child support 
221.9   collections.  
221.10     (c) "Welfare system" includes the department of human 
221.11  services, local social services agencies, county welfare 
221.12  agencies, the public authority responsible for child support 
221.13  enforcement, human services boards, community mental health 
221.14  center boards, state hospitals, state nursing homes, the 
221.15  ombudsman for mental health and mental retardation, and persons, 
221.16  agencies, institutions, organizations, and other entities under 
221.17  contract to any of the above agencies to the extent specified in 
221.18  the contract. 
221.19     (d) "Mental health data" means data on individual clients 
221.20  and patients of community mental health centers, established 
221.21  under section 245.62, mental health divisions of counties and 
221.22  other providers under contract to deliver mental health 
221.23  services, or the ombudsman for mental health and mental 
221.24  retardation. 
221.25     (e) "Fugitive felon" means a person who has been convicted 
221.26  of a felony and who has escaped from confinement or violated the 
221.27  terms of probation or parole for that offense. 
221.28     Sec. 2.  Minnesota Statutes 1996, section 13.46, 
221.29  subdivision 2, is amended to read: 
221.30     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
221.31  a statute specifically provides a different classification, data 
221.32  on individuals collected, maintained, used, or disseminated by 
221.33  the welfare system is private data on individuals, and shall not 
221.34  be disclosed except:  
221.35     (1) pursuant according to section 13.05; 
221.36     (2) pursuant according to court order; 
222.1      (3) pursuant according to a statute specifically 
222.2   authorizing access to the private data; 
222.3      (4) to an agent of the welfare system, including a law 
222.4   enforcement person, attorney, or investigator acting for it in 
222.5   the investigation or prosecution of a criminal or civil 
222.6   proceeding relating to the administration of a program; 
222.7      (5) to personnel of the welfare system who require the data 
222.8   to determine eligibility, amount of assistance, and the need to 
222.9   provide services of additional programs to the individual; 
222.10     (6) to administer federal funds or programs; 
222.11     (7) between personnel of the welfare system working in the 
222.12  same program; 
222.13     (8) the amounts of cash public assistance and relief paid 
222.14  to welfare recipients in this state, including their names, 
222.15  social security numbers, income, addresses, and other data as 
222.16  required, upon request by the department of revenue to 
222.17  administer the property tax refund law, supplemental housing 
222.18  allowance, early refund of refundable tax credits, and the 
222.19  income tax.  "Refundable tax credits" means the dependent care 
222.20  credit under section 290.067, the Minnesota working family 
222.21  credit under section 290.0671, the property tax refund under 
222.22  section 290A.04, and, if the required federal waiver or waivers 
222.23  are granted, the federal earned income tax credit under section 
222.24  32 of the Internal Revenue Code; 
222.25     (9) to the Minnesota department of economic security for 
222.26  the purpose of monitoring the eligibility of the data subject 
222.27  for reemployment insurance, for any employment or training 
222.28  program administered, supervised, or certified by that agency, 
222.29  or for the purpose of administering any rehabilitation program, 
222.30  whether alone or in conjunction with the welfare system, and to 
222.31  verify receipt of energy assistance for the telephone assistance 
222.32  plan; 
222.33     (10) to appropriate parties in connection with an emergency 
222.34  if knowledge of the information is necessary to protect the 
222.35  health or safety of the individual or other individuals or 
222.36  persons; 
223.1      (11) data maintained by residential programs as defined in 
223.2   section 245A.02 may be disclosed to the protection and advocacy 
223.3   system established in this state pursuant according to Part C of 
223.4   Public Law Number 98-527 to protect the legal and human rights 
223.5   of persons with mental retardation or other related conditions 
223.6   who live in residential facilities for these persons if the 
223.7   protection and advocacy system receives a complaint by or on 
223.8   behalf of that person and the person does not have a legal 
223.9   guardian or the state or a designee of the state is the legal 
223.10  guardian of the person; 
223.11     (12) to the county medical examiner or the county coroner 
223.12  for identifying or locating relatives or friends of a deceased 
223.13  person; 
223.14     (13) data on a child support obligor who makes payments to 
223.15  the public agency may be disclosed to the higher education 
223.16  services office to the extent necessary to determine eligibility 
223.17  under section 136A.121, subdivision 2, clause (5); 
223.18     (14) participant social security numbers and names 
223.19  collected by the telephone assistance program may be disclosed 
223.20  to the department of revenue to conduct an electronic data match 
223.21  with the property tax refund database to determine eligibility 
223.22  under section 237.70, subdivision 4a; 
223.23     (15) the current address of a recipient of aid to families 
223.24  with dependent children Minnesota family investment 
223.25  program-statewide may be disclosed to law enforcement officers 
223.26  who provide the name and social security number of the recipient 
223.27  and satisfactorily demonstrate that:  (i) the recipient is a 
223.28  fugitive felon, including the grounds for this determination; 
223.29  (ii) the location or apprehension of the felon is within the law 
223.30  enforcement officer's official duties; and (iii) the request is 
223.31  made in writing and in the proper exercise of those duties; 
223.32     (16) the current address of a recipient of general 
223.33  assistance, work readiness, or general assistance medical care 
223.34  may be disclosed to probation officers and corrections agents 
223.35  who are supervising the recipient, and to law enforcement 
223.36  officers who are investigating the recipient in connection with 
224.1   a felony level offense; 
224.2      (17) information obtained from food stamp applicant or 
224.3   recipient households may be disclosed to local, state, or 
224.4   federal law enforcement officials, upon their written request, 
224.5   for the purpose of investigating an alleged violation of the 
224.6   food stamp act, in accordance with according to Code of Federal 
224.7   Regulations, title 7, section 272.1(c); 
224.8      (18) data on a child support obligor who is in arrears may 
224.9   be disclosed for purposes of publishing the data pursuant 
224.10  according to section 518.575; 
224.11     (19) data on child support payments made by a child support 
224.12  obligor may be disclosed to the obligee; 
224.13     (20) data in the work reporting system may be disclosed 
224.14  under section 256.998, subdivision 7; 
224.15     (21) to the department of children, families, and learning 
224.16  for the purpose of matching department of children, families, 
224.17  and learning student data with public assistance data to 
224.18  determine students eligible for free and reduced price meals, 
224.19  meal supplements, and free milk pursuant according to United 
224.20  States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
224.21  and 1773; to produce accurate numbers of students receiving aid 
224.22  to families with dependent children Minnesota family investment 
224.23  program-statewide as required by section 124.175; and to 
224.24  allocate federal and state funds that are distributed based on 
224.25  income of the student's family; or 
224.26     (22) the current address and telephone number of program 
224.27  recipients and emergency contacts may be released to the 
224.28  commissioner of health or a local board of health as defined in 
224.29  section 145A.02, subdivision 2, when the commissioner or local 
224.30  board of health has reason to believe that a program recipient 
224.31  is a disease case, carrier, suspect case, or at risk of illness, 
224.32  and the data are necessary to locate the person. 
224.33     (b) Information on persons who have been treated for drug 
224.34  or alcohol abuse may only be disclosed in accordance with 
224.35  according to the requirements of Code of Federal Regulations, 
224.36  title 42, sections 2.1 to 2.67. 
225.1      (c) Data provided to law enforcement agencies under 
225.2   paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
225.3   investigative data and are confidential or protected nonpublic 
225.4   while the investigation is active.  The data are private after 
225.5   the investigation becomes inactive under section 13.82, 
225.6   subdivision 5, paragraph (a) or (b). 
225.7      (d) Mental health data shall be treated as provided in 
225.8   subdivisions 7, 8, and 9, but is not subject to the access 
225.9   provisions of subdivision 10, paragraph (b). 
225.10     Sec. 3.  Minnesota Statutes 1996, section 84.98, 
225.11  subdivision 3, is amended to read: 
225.12     Subd. 3.  [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 
225.13  PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 
225.14  determining economic, social, physical, or educational 
225.15  disadvantage shall be determined as provided in this subdivision.
225.16     (b) Economically disadvantaged are persons who meet the 
225.17  criteria for disadvantaged established by the department of 
225.18  economic security or persons receiving services provided by the 
225.19  department of human services such as welfare payments, food 
225.20  stamps, and aid to families with dependent children Minnesota 
225.21  family investment program-statewide.  
225.22     (c) Socially disadvantaged are persons who have been 
225.23  classified as persons in need of supervision by the court system.
225.24     (d) Physically disadvantaged are persons who have been 
225.25  identified as having special needs by public agencies that deal 
225.26  with employment for the disabled. 
225.27     (e) Educationally disadvantaged are persons who have 
225.28  dropped out of school or are at risk of dropping out of school 
225.29  and persons with learning disabilities or in need of special 
225.30  education classes.  
225.31     Sec. 4.  Minnesota Statutes 1996, section 124.17, 
225.32  subdivision 1d, is amended to read: 
225.33     Subd. 1d.  [AFDC MFIP-S PUPIL UNITS.] AFDC MFIP-S pupil 
225.34  units for fiscal year 1993 and thereafter must be computed 
225.35  according to this subdivision.  
225.36     (a) The AFDC MFIP-S concentration percentage for a district 
226.1   equals the product of 100 times the ratio of:  
226.2      (1) the number of pupils enrolled in the district from 
226.3   families receiving aid to families with dependent children 
226.4   Minnesota family investment program-statewide according to 
226.5   subdivision 1e; to 
226.6      (2) the number of pupils in average daily membership 
226.7   according to subdivision 1e enrolled in the district. 
226.8      (b) The AFDC MFIP-S pupil weighting factor for a district 
226.9   equals the lesser of one or the quotient obtained by dividing 
226.10  the district's AFDC MFIP-S concentration percentage by 11.5.  
226.11     (c) The AFDC MFIP-S pupil units for a district for fiscal 
226.12  year 1993 and thereafter equals the product of:  
226.13     (1) the number of pupils enrolled in the district from 
226.14  families receiving aid to families with dependent children 
226.15  Minnesota family investment program-statewide according to 
226.16  subdivision 1e; times 
226.17     (2) the AFDC MFIP-S pupil weighting factor for the 
226.18  district; times 
226.19     (3) .67. 
226.20     Sec. 5.  Minnesota Statutes 1996, section 124.17, 
226.21  subdivision 1e, is amended to read: 
226.22     Subd. 1e.  [AFDC MFIP-S PUPIL COUNTS.] AFDC MFIP-S pupil 
226.23  counts and average daily membership for subdivisions 1b and 1d 
226.24  shall be determined according to this subdivision: 
226.25     (a) For districts where the number of pupils from families 
226.26  receiving aid to families with dependent children Minnesota 
226.27  family investment program-statewide has increased over the 
226.28  preceding year for each of the two previous years, the number of 
226.29  pupils enrolled in the district from families receiving aid to 
226.30  families with dependent children Minnesota family investment 
226.31  program-statewide shall be those counted on October 1 of the 
226.32  previous school year.  The average daily membership used shall 
226.33  be from the previous school year. 
226.34     (b) For districts that do not meet the requirement of 
226.35  paragraph (a), the number of pupils enrolled in the district 
226.36  from families receiving aid to families with dependent children 
227.1   Minnesota family investment program-statewide shall be the 
227.2   average number of pupils on October 1 of the second previous 
227.3   school year and October 1 of the previous school year.  The 
227.4   average daily membership used shall be the average number 
227.5   enrolled in the previous school year and the second previous 
227.6   school year. 
227.7      (c) Notwithstanding paragraphs (a) and (b), for charter 
227.8   schools in the first three years of operation, the number of 
227.9   pupils enrolled from families receiving AFDC MFIP-S shall be 
227.10  those counted on October 1 of the current school year.  The 
227.11  average daily membership used shall be from the current school 
227.12  year.  
227.13     Sec. 6.  Minnesota Statutes 1996, section 124.175, is 
227.14  amended to read: 
227.15     124.175 [AFDC PUPIL COUNT.] 
227.16     Each year by March 1, the department of human services 
227.17  shall certify to the department of children, families, and 
227.18  learning, for each school district, the number of pupils from 
227.19  families receiving aid to families with dependent children 
227.20  Minnesota family investment program-statewide who were enrolled 
227.21  in a public school on October 1 of the preceding year.  
227.22     Sec. 7.  Minnesota Statutes 1996, section 124A.02, 
227.23  subdivision 16, is amended to read: 
227.24     Subd. 16.  [PUPIL UNITS, AFDC MFIP-S.] "AFDC MFIP-S pupil 
227.25  units" for fiscal year 1993 and thereafter means pupil units 
227.26  identified in section 124.17, subdivision 1d.  
227.27     Sec. 8.  Minnesota Statutes 1996, section 124A.22, 
227.28  subdivision 3, is amended to read: 
227.29     Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] The 
227.30  compensatory education revenue for each district equals the 
227.31  formula allowance less $300 times the AFDC MFIP-S pupil units 
227.32  computed according to section 124.17, subdivision 1d. 
227.33     Sec. 9.  Minnesota Statutes 1996, section 136A.125, 
227.34  subdivision 2, is amended to read: 
227.35     Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
227.36  a child care grant if the applicant: 
228.1      (1) is a resident of the state of Minnesota; 
228.2      (2) has a child 12 years of age or younger, or 14 years of 
228.3   age or younger who is handicapped as defined in section 120.03, 
228.4   and who is receiving or will receive care on a regular basis 
228.5   from a licensed or legal, nonlicensed caregiver; 
228.6      (3) is income eligible as determined by the office's 
228.7   policies and rules, but is not a recipient of aid to families 
228.8   with dependent children Minnesota family investment 
228.9   program-statewide; 
228.10     (4) has not earned a baccalaureate degree and has been 
228.11  enrolled full time less than eight semesters, 12 quarters, or 
228.12  the equivalent; 
228.13     (5) is pursuing a nonsectarian program or course of study 
228.14  that applies to an undergraduate degree, diploma, or 
228.15  certificate; 
228.16     (6) is enrolled at least half time in an eligible 
228.17  institution; and 
228.18     (7) is in good academic standing and making satisfactory 
228.19  academic progress. 
228.20     Sec. 10.  Minnesota Statutes 1996, section 196.27, is 
228.21  amended to read: 
228.22     196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 
228.23     (a) Payments received by veterans or their dependents 
228.24  because of settlements between them and the manufacturers of 
228.25  Agent Orange or other chemical agents, as defined in section 
228.26  196.21, must not be treated as income (or an available resource) 
228.27  of the veterans or their dependents for the purposes of any 
228.28  program of public assistance or benefit program administered by 
228.29  the department of veterans affairs, the department of human 
228.30  services, or other agencies of the state or political 
228.31  subdivisions of the state, except as provided in paragraph (b). 
228.32     (b) The income and resource exclusion in paragraph (a) does 
228.33  not apply to the medical assistance, food stamps, or aid to 
228.34  families with dependent children Minnesota family investment 
228.35  program-statewide programs until the commissioner of human 
228.36  services receives formal approval from the United States 
229.1   Department of Health and Human Services, for the medical 
229.2   assistance and aid to families with dependent children Minnesota 
229.3   family investment program-statewide programs, and from the 
229.4   United States Department of Agriculture, for the food stamps 
229.5   program.  The income exclusion does not apply to the Minnesota 
229.6   supplemental aid program until the commissioner receives formal 
229.7   federal approval of the exclusion for the medical assistance 
229.8   program. 
229.9      Sec. 11.  Minnesota Statutes 1996, section 237.70, 
229.10  subdivision 4a, is amended to read: 
229.11     Subd. 4a.  [HOUSEHOLDS ELIGIBLE FOR CREDITS.] The telephone 
229.12  assistance plan must provide telephone assistance credit for a 
229.13  residential household in Minnesota that meets each of the 
229.14  following criteria: 
229.15     (1) has a household member who: 
229.16     (i) subscribes to local exchange service; and 
229.17     (ii) is either disabled or 65 years of age or older; 
229.18     (2) whose household income is 150 percent or less of 
229.19  federal poverty guidelines or is currently eligible for: 
229.20     (i) aid to families with dependent children Minnesota 
229.21  family investment program-statewide; 
229.22     (ii) medical assistance; 
229.23     (iii) general assistance; 
229.24     (iv) Minnesota supplemental aid; 
229.25     (v) food stamps; 
229.26     (vi) refugee cash assistance or refugee medical assistance; 
229.27     (vii) energy assistance; or 
229.28     (viii) supplemental security income; and 
229.29     (3) who has been certified as eligible for telephone 
229.30  assistance plan credits. 
229.31     Sec. 12.  Minnesota Statutes 1996, section 254B.02, 
229.32  subdivision 1, is amended to read: 
229.33     Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
229.34  The chemical dependency funds appropriated for allocation shall 
229.35  be placed in a special revenue account.  For the fiscal year 
229.36  beginning July 1, 1987, funds shall be transferred to operate 
230.1   the vendor payment, invoice processing, and collections system 
230.2   for one year.  The commissioner shall annually transfer funds 
230.3   from the chemical dependency fund to pay for operation of the 
230.4   drug and alcohol abuse normative evaluation system and to pay 
230.5   for all costs incurred by adding two positions for licensing of 
230.6   chemical dependency treatment and rehabilitation programs 
230.7   located in hospitals for which funds are not otherwise 
230.8   appropriated.  The commissioner shall annually divide the money 
230.9   available in the chemical dependency fund that is not held in 
230.10  reserve by counties from a previous allocation.  Twelve percent 
230.11  of the remaining money must be reserved for treatment of 
230.12  American Indians by eligible vendors under section 254B.05.  The 
230.13  remainder of the money must be allocated among the counties 
230.14  according to the following formula, using state demographer data 
230.15  and other data sources determined by the commissioner: 
230.16     (a) For purposes of this formula, American Indians and 
230.17  children under age 14 are subtracted from the population of each 
230.18  county to determine the restricted population. 
230.19     (b) The amount of chemical dependency fund expenditures for 
230.20  entitled persons for services not covered by prepaid plans 
230.21  governed by section 256B.69 in the previous year is divided by 
230.22  the amount of chemical dependency fund expenditures for entitled 
230.23  persons for all services to determine the proportion of exempt 
230.24  service expenditures for each county. 
230.25     (c) The prepaid plan months of eligibility is multiplied by 
230.26  the proportion of exempt service expenditures to determine the 
230.27  adjusted prepaid plan months of eligibility for each county. 
230.28     (d) The adjusted prepaid plan months of eligibility is 
230.29  added to the number of restricted population fee for service 
230.30  months of eligibility for aid to families with dependent 
230.31  children Minnesota family investment program-statewide, general 
230.32  assistance, and medical assistance and divided by the county 
230.33  restricted population to determine county per capita months of 
230.34  covered service eligibility. 
230.35     (e) The number of adjusted prepaid plan months of 
230.36  eligibility for the state is added to the number of fee for 
231.1   service months of eligibility for aid to families with dependent 
231.2   children Minnesota family investment program-statewide, general 
231.3   assistance, and medical assistance for the state restricted 
231.4   population and divided by the state restricted population to 
231.5   determine state per capita months of covered service eligibility.
231.6      (f) The county per capita months of covered service 
231.7   eligibility is divided by the state per capita months of covered 
231.8   service eligibility to determine the county welfare caseload 
231.9   factor. 
231.10     (g) The median married couple income for the most recent 
231.11  three-year period available for the state is divided by the 
231.12  median married couple income for the same period for each county 
231.13  to determine the income factor for each county. 
231.14     (h) The county restricted population is multiplied by the 
231.15  sum of the county welfare caseload factor and the county income 
231.16  factor to determine the adjusted population. 
231.17     (i) $15,000 shall be allocated to each county.  
231.18     (j) The remaining funds shall be allocated proportional to 
231.19  the county adjusted population. 
231.20     Sec. 13.  Minnesota Statutes 1996, section 256.01, 
231.21  subdivision 2, is amended to read: 
231.22     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
231.23  section 241.021, subdivision 2, the commissioner of human 
231.24  services shall: 
231.25     (1) Administer and supervise all forms of public assistance 
231.26  provided for by state law and other welfare activities or 
231.27  services as are vested in the commissioner.  Administration and 
231.28  supervision of human services activities or services includes, 
231.29  but is not limited to, assuring timely and accurate distribution 
231.30  of benefits, completeness of service, and quality program 
231.31  management.  In addition to administering and supervising human 
231.32  services activities vested by law in the department, the 
231.33  commissioner shall have the authority to: 
231.34     (a) require county agency participation in training and 
231.35  technical assistance programs to promote compliance with 
231.36  statutes, rules, federal laws, regulations, and policies 
232.1   governing human services; 
232.2      (b) monitor, on an ongoing basis, the performance of county 
232.3   agencies in the operation and administration of human services, 
232.4   enforce compliance with statutes, rules, federal laws, 
232.5   regulations, and policies governing welfare services and promote 
232.6   excellence of administration and program operation; 
232.7      (c) develop a quality control program or other monitoring 
232.8   program to review county performance and accuracy of benefit 
232.9   determinations; 
232.10     (d) require county agencies to make an adjustment to the 
232.11  public assistance benefits issued to any individual consistent 
232.12  with federal law and regulation and state law and rule and to 
232.13  issue or recover benefits as appropriate; 
232.14     (e) delay or deny payment of all or part of the state and 
232.15  federal share of benefits and administrative reimbursement 
232.16  according to the procedures set forth in section 256.017; and 
232.17     (f) make contracts with and grants to public and private 
232.18  agencies and organizations, both profit and nonprofit, and 
232.19  individuals, using appropriated funds. 
232.20     (2) Inform county agencies, on a timely basis, of changes 
232.21  in statute, rule, federal law, regulation, and policy necessary 
232.22  to county agency administration of the programs. 
232.23     (3) Administer and supervise all child welfare activities; 
232.24  promote the enforcement of laws protecting handicapped, 
232.25  dependent, neglected and delinquent children, and children born 
232.26  to mothers who were not married to the children's fathers at the 
232.27  times of the conception nor at the births of the children; 
232.28  license and supervise child-caring and child-placing agencies 
232.29  and institutions; supervise the care of children in boarding and 
232.30  foster homes or in private institutions; and generally perform 
232.31  all functions relating to the field of child welfare now vested 
232.32  in the state board of control. 
232.33     (4) Administer and supervise all noninstitutional service 
232.34  to handicapped persons, including those who are visually 
232.35  impaired, hearing impaired, or physically impaired or otherwise 
232.36  handicapped.  The commissioner may provide and contract for the 
233.1   care and treatment of qualified indigent children in facilities 
233.2   other than those located and available at state hospitals when 
233.3   it is not feasible to provide the service in state hospitals. 
233.4      (5) Assist and actively cooperate with other departments, 
233.5   agencies and institutions, local, state, and federal, by 
233.6   performing services in conformity with the purposes of Laws 
233.7   1939, chapter 431. 
233.8      (6) Act as the agent of and cooperate with the federal 
233.9   government in matters of mutual concern relative to and in 
233.10  conformity with the provisions of Laws 1939, chapter 431, 
233.11  including the administration of any federal funds granted to the 
233.12  state to aid in the performance of any functions of the 
233.13  commissioner as specified in Laws 1939, chapter 431, and 
233.14  including the promulgation of rules making uniformly available 
233.15  medical care benefits to all recipients of public assistance, at 
233.16  such times as the federal government increases its participation 
233.17  in assistance expenditures for medical care to recipients of 
233.18  public assistance, the cost thereof to be borne in the same 
233.19  proportion as are grants of aid to said recipients. 
233.20     (7) Establish and maintain any administrative units 
233.21  reasonably necessary for the performance of administrative 
233.22  functions common to all divisions of the department. 
233.23     (8) Act as designated guardian of both the estate and the 
233.24  person of all the wards of the state of Minnesota, whether by 
233.25  operation of law or by an order of court, without any further 
233.26  act or proceeding whatever, except as to persons committed as 
233.27  mentally retarded.  
233.28     (9) Act as coordinating referral and informational center 
233.29  on requests for service for newly arrived immigrants coming to 
233.30  Minnesota. 
233.31     (10) The specific enumeration of powers and duties as 
233.32  hereinabove set forth shall in no way be construed to be a 
233.33  limitation upon the general transfer of powers herein contained. 
233.34     (11) Establish county, regional, or statewide schedules of 
233.35  maximum fees and charges which may be paid by county agencies 
233.36  for medical, dental, surgical, hospital, nursing and nursing 
234.1   home care and medicine and medical supplies under all programs 
234.2   of medical care provided by the state and for congregate living 
234.3   care under the income maintenance programs. 
234.4      (12) Have the authority to conduct and administer 
234.5   experimental projects to test methods and procedures of 
234.6   administering assistance and services to recipients or potential 
234.7   recipients of public welfare.  To carry out such experimental 
234.8   projects, it is further provided that the commissioner of human 
234.9   services is authorized to waive the enforcement of existing 
234.10  specific statutory program requirements, rules, and standards in 
234.11  one or more counties.  The order establishing the waiver shall 
234.12  provide alternative methods and procedures of administration, 
234.13  shall not be in conflict with the basic purposes, coverage, or 
234.14  benefits provided by law, and in no event shall the duration of 
234.15  a project exceed four years.  It is further provided that no 
234.16  order establishing an experimental project as authorized by the 
234.17  provisions of this section shall become effective until the 
234.18  following conditions have been met: 
234.19     (a) The proposed comprehensive plan, including estimated 
234.20  project costs and the proposed order establishing the waiver, 
234.21  shall be filed with the secretary of the senate and chief clerk 
234.22  of the house of representatives at least 60 days prior to its 
234.23  effective date. 
234.24     (b) The secretary of health, education, and welfare of the 
234.25  United States has agreed, for the same project, to waive state 
234.26  plan requirements relative to statewide uniformity. 
234.27     (c) A comprehensive plan, including estimated project 
234.28  costs, shall be approved by the legislative advisory commission 
234.29  and filed with the commissioner of administration.  
234.30     (13) In accordance with According to federal requirements, 
234.31  establish procedures to be followed by local welfare boards in 
234.32  creating citizen advisory committees, including procedures for 
234.33  selection of committee members. 
234.34     (14) Allocate federal fiscal disallowances or sanctions 
234.35  which are based on quality control error rates for the aid to 
234.36  families with dependent children Minnesota family investment 
235.1   program-statewide, medical assistance, or food stamp program in 
235.2   the following manner:  
235.3      (a) One-half of the total amount of the disallowance shall 
235.4   be borne by the county boards responsible for administering the 
235.5   programs.  For the medical assistance and AFDC MFIP-S programs, 
235.6   disallowances shall be shared by each county board in the same 
235.7   proportion as that county's expenditures for the sanctioned 
235.8   program are to the total of all counties' expenditures for the 
235.9   AFDC MFIP-S and medical assistance programs.  For the food stamp 
235.10  program, sanctions shall be shared by each county board, with 50 
235.11  percent of the sanction being distributed to each county in the 
235.12  same proportion as that county's administrative costs for food 
235.13  stamps are to the total of all food stamp administrative costs 
235.14  for all counties, and 50 percent of the sanctions being 
235.15  distributed to each county in the same proportion as that 
235.16  county's value of food stamp benefits issued are to the total of 
235.17  all benefits issued for all counties.  Each county shall pay its 
235.18  share of the disallowance to the state of Minnesota.  When a 
235.19  county fails to pay the amount due hereunder, the commissioner 
235.20  may deduct the amount from reimbursement otherwise due the 
235.21  county, or the attorney general, upon the request of the 
235.22  commissioner, may institute civil action to recover the amount 
235.23  due. 
235.24     (b) Notwithstanding the provisions of paragraph (a), if the 
235.25  disallowance results from knowing noncompliance by one or more 
235.26  counties with a specific program instruction, and that knowing 
235.27  noncompliance is a matter of official county board record, the 
235.28  commissioner may require payment or recover from the county or 
235.29  counties, in the manner prescribed in paragraph (a), an amount 
235.30  equal to the portion of the total disallowance which resulted 
235.31  from the noncompliance, and may distribute the balance of the 
235.32  disallowance according to paragraph (a).  
235.33     (15) Develop and implement special projects that maximize 
235.34  reimbursements and result in the recovery of money to the 
235.35  state.  For the purpose of recovering state money, the 
235.36  commissioner may enter into contracts with third parties.  Any 
236.1   recoveries that result from projects or contracts entered into 
236.2   under this paragraph shall be deposited in the state treasury 
236.3   and credited to a special account until the balance in the 
236.4   account reaches $1,000,000.  When the balance in the account 
236.5   exceeds $1,000,000, the excess shall be transferred and credited 
236.6   to the general fund.  All money in the account is appropriated 
236.7   to the commissioner for the purposes of this paragraph. 
236.8      (16) Have the authority to make direct payments to 
236.9   facilities providing shelter to women and their children 
236.10  pursuant according to section 256D.05, subdivision 3.  Upon the 
236.11  written request of a shelter facility that has been denied 
236.12  payments under section 256D.05, subdivision 3, the commissioner 
236.13  shall review all relevant evidence and make a determination 
236.14  within 30 days of the request for review regarding issuance of 
236.15  direct payments to the shelter facility.  Failure to act within 
236.16  30 days shall be considered a determination not to issue direct 
236.17  payments. 
236.18     (17) Have the authority to establish and enforce the 
236.19  following county reporting requirements:  
236.20     (a) The commissioner shall establish fiscal and statistical 
236.21  reporting requirements necessary to account for the expenditure 
236.22  of funds allocated to counties for human services programs.  
236.23  When establishing financial and statistical reporting 
236.24  requirements, the commissioner shall evaluate all reports, in 
236.25  consultation with the counties, to determine if the reports can 
236.26  be simplified or the number of reports can be reduced. 
236.27     (b) The county board shall submit monthly or quarterly 
236.28  reports to the department as required by the commissioner.  
236.29  Monthly reports are due no later than 15 working days after the 
236.30  end of the month.  Quarterly reports are due no later than 30 
236.31  calendar days after the end of the quarter, unless the 
236.32  commissioner determines that the deadline must be shortened to 
236.33  20 calendar days to avoid jeopardizing compliance with federal 
236.34  deadlines or risking a loss of federal funding.  Only reports 
236.35  that are complete, legible, and in the required format shall be 
236.36  accepted by the commissioner.  
237.1      (c) If the required reports are not received by the 
237.2   deadlines established in clause (b), the commissioner may delay 
237.3   payments and withhold funds from the county board until the next 
237.4   reporting period.  When the report is needed to account for the 
237.5   use of federal funds and the late report results in a reduction 
237.6   in federal funding, the commissioner shall withhold from the 
237.7   county boards with late reports an amount equal to the reduction 
237.8   in federal funding until full federal funding is received.  
237.9      (d) A county board that submits reports that are late, 
237.10  illegible, incomplete, or not in the required format for two out 
237.11  of three consecutive reporting periods is considered 
237.12  noncompliant.  When a county board is found to be noncompliant, 
237.13  the commissioner shall notify the county board of the reason the 
237.14  county board is considered noncompliant and request that the 
237.15  county board develop a corrective action plan stating how the 
237.16  county board plans to correct the problem.  The corrective 
237.17  action plan must be submitted to the commissioner within 45 days 
237.18  after the date the county board received notice of noncompliance.
237.19     (e) The final deadline for fiscal reports or amendments to 
237.20  fiscal reports is one year after the date the report was 
237.21  originally due.  If the commissioner does not receive a report 
237.22  by the final deadline, the county board forfeits the funding 
237.23  associated with the report for that reporting period and the 
237.24  county board must repay any funds associated with the report 
237.25  received for that reporting period. 
237.26     (f) The commissioner may not delay payments, withhold 
237.27  funds, or require repayment under paragraph (c) or (e) if the 
237.28  county demonstrates that the commissioner failed to provide 
237.29  appropriate forms, guidelines, and technical assistance to 
237.30  enable the county to comply with the requirements.  If the 
237.31  county board disagrees with an action taken by the commissioner 
237.32  under paragraph (c) or (e), the county board may appeal the 
237.33  action according to sections 14.57 to 14.69. 
237.34     (g) Counties subject to withholding of funds under 
237.35  paragraph (c) or forfeiture or repayment of funds under 
237.36  paragraph (e) shall not reduce or withhold benefits or services 
238.1   to clients to cover costs incurred due to actions taken by the 
238.2   commissioner under paragraph (c) or (e). 
238.3      (18) Allocate federal fiscal disallowances or sanctions for 
238.4   audit exceptions when federal fiscal disallowances or sanctions 
238.5   are based on a statewide random sample for the foster care 
238.6   program under title IV-E of the Social Security Act, United 
238.7   States Code, title 42, in direct proportion to each county's 
238.8   title IV-E foster care maintenance claim for that period. 
238.9      Sec. 14.  Minnesota Statutes 1996, section 256.01, 
238.10  subdivision 4a, is amended to read: 
238.11     Subd. 4a.  [TECHNICAL ASSISTANCE FOR IMMUNIZATION 
238.12  REMINDERS.] The state agency shall provide appropriate technical 
238.13  assistance to county agencies to develop methods to have county 
238.14  financial workers remind and encourage recipients of aid to 
238.15  families with dependent children Minnesota family investment 
238.16  program-statewide, the Minnesota family investment plan, medical 
238.17  assistance, family general assistance, or food stamps whose 
238.18  assistance unit includes at least one child under the age of 
238.19  five to have each young child immunized against childhood 
238.20  diseases.  The state agency must examine the feasibility of 
238.21  utilizing the capacity of a statewide computer system to assist 
238.22  county agency financial workers in performing this function at 
238.23  appropriate intervals. 
238.24     Sec. 15.  Minnesota Statutes 1996, section 256.017, 
238.25  subdivision 1, is amended to read: 
238.26     Subdivision 1.  [AUTHORITY AND PURPOSE.] The commissioner 
238.27  shall administer a compliance system for aid to families with 
238.28  dependent children Minnesota family investment 
238.29  program-statewide, the food stamp program, emergency assistance, 
238.30  general assistance, work readiness, medical assistance, general 
238.31  assistance medical care, emergency general assistance, Minnesota 
238.32  supplemental assistance, preadmission screening, and alternative 
238.33  care grants under the powers and authorities named in section 
238.34  256.01, subdivision 2.  The purpose of the compliance system is 
238.35  to permit the commissioner to supervise the administration of 
238.36  public assistance programs and to enforce timely and accurate 
239.1   distribution of benefits, completeness of service and efficient 
239.2   and effective program management and operations, to increase 
239.3   uniformity and consistency in the administration and delivery of 
239.4   public assistance programs throughout the state, and to reduce 
239.5   the possibility of sanctions and fiscal disallowances for 
239.6   noncompliance with federal regulations and state statutes. 
239.7      The commissioner shall utilize training, technical 
239.8   assistance, and monitoring activities, as specified in section 
239.9   256.01, subdivision 2, to encourage county agency compliance 
239.10  with written policies and procedures. 
239.11     Sec. 16.  Minnesota Statutes 1996, section 256.017, 
239.12  subdivision 4, is amended to read: 
239.13     Subd. 4.  [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 
239.14  CASE PENALTY.] (a) The amount of the quality control case 
239.15  penalty is limited to the amount of the dollar error for the 
239.16  quality control sample month in a reviewed case as determined by 
239.17  the state quality control review procedures for the aid to 
239.18  families with dependent children Minnesota family investment 
239.19  program-statewide and food stamp programs or for any other 
239.20  income transfer program for which the commissioner develops a 
239.21  quality control program. 
239.22     (b) Payment errors in medical assistance or any other 
239.23  medical services program for which the department develops a 
239.24  quality control program are subject to set rate penalties based 
239.25  on the average cost of the specific quality control error 
239.26  element for a sample review month for that household size and 
239.27  status of institutionalization and as determined from state 
239.28  quality control data in the preceding fiscal year for the 
239.29  corresponding program. 
239.30     (c) Errors identified in negative action cases, such as 
239.31  incorrect terminations or denials of assistance are subject to 
239.32  set rate penalties based on the average benefit cost of that 
239.33  household size as determined from state quality control data in 
239.34  the preceding fiscal year for the corresponding program. 
239.35     Sec. 17.  Minnesota Statutes 1996, section 256.019, is 
239.36  amended to read: 
240.1      256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 
240.2      When an amount is recovered from any source for assistance 
240.3   given under the provisions governing public assistance programs 
240.4   including aid to families with dependent children Minnesota 
240.5   family investment program-statewide, emergency assistance, 
240.6   general assistance, work readiness, and Minnesota supplemental 
240.7   aid, there shall be paid to the United States the amount due 
240.8   under the terms of the Social Security Act and the balance must 
240.9   be paid into the treasury of the state or county in accordance 
240.10  with according to current rates of financial participation; 
240.11  except if the recovery is made by a county agency using any 
240.12  method other than recoupment, the county may keep one-half of 
240.13  the nonfederal share of the recovery.  This does not apply to 
240.14  recoveries from medical providers or to recoveries begun by the 
240.15  department of human services' surveillance and utilization 
240.16  review division, state hospital collections unit, and the 
240.17  benefit recoveries division or, by the attorney general's 
240.18  office, or child support collections. 
240.19     Sec. 18.  Minnesota Statutes 1996, section 256.031, 
240.20  subdivision 5, is amended to read: 
240.21     Subd. 5.  [FEDERAL WAIVERS.] In accordance with According 
240.22  to sections 256.031 to 256.0361 and federal laws authorizing the 
240.23  program, the commissioner shall seek waivers of federal 
240.24  requirements of:  United States Code, title 42, section 601 et 
240.25  seq., and United States Code, title 7, section 2011 et seq., 
240.26  needed to implement the Minnesota family investment plan in a 
240.27  manner consistent with the goals and objectives of the program.  
240.28  The commissioner shall seek terms from the federal government 
240.29  that are consistent with the goals of the Minnesota family 
240.30  investment plan.  The commissioner shall also seek terms from 
240.31  the federal government that will maximize federal financial 
240.32  participation so that the extra costs to the state of 
240.33  implementing the program are minimized, to the extent that those 
240.34  terms are consistent with the goals of the Minnesota family 
240.35  investment plan.  An agreement with the federal government under 
240.36  this section shall provide that the agreements may be canceled 
241.1   by the state or federal government upon 180 days' notice or 
241.2   immediately upon mutual agreement.  If the agreement is 
241.3   canceled, families which cease receiving assistance under the 
241.4   Minnesota family investment plan who are eligible for the aid to 
241.5   families with dependent children Minnesota family investment 
241.6   program-statewide, general assistance, medical assistance, 
241.7   general assistance medical care, or the food stamp program must 
241.8   be placed with their consent on the programs for which they are 
241.9   eligible. 
241.10     Sec. 19.  Minnesota Statutes 1996, section 256.046, 
241.11  subdivision 1, is amended to read: 
241.12     Subdivision 1.  [HEARING AUTHORITY.] A local agency may 
241.13  initiate an administrative fraud disqualification hearing for 
241.14  individuals accused of wrongfully obtaining assistance or 
241.15  intentional program violations in the aid to families with 
241.16  dependent children Minnesota family investment program-statewide 
241.17  or food stamp programs.  The hearing is subject to the 
241.18  requirements of section 256.045 and the requirements in Code of 
241.19  Federal Regulations, title 7, section 273.16, for the food stamp 
241.20  program and title 45, section 235.112, for the aid to families 
241.21  with dependent children Minnesota family investment 
241.22  program-statewide program. 
241.23     Sec. 20.  Minnesota Statutes 1996, section 256.98, 
241.24  subdivision 8, is amended to read: 
241.25     Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
241.26  to be guilty of wrongfully obtaining assistance by a federal or 
241.27  state court or by an administrative hearing determination, or 
241.28  waiver thereof, through a disqualification consent agreement, or 
241.29  as part of any approved diversion plan under section 401.065 in 
241.30  the aid to families with dependent children Minnesota family 
241.31  investment program-statewide program, the food stamp program, 
241.32  the Minnesota family investment plan, the general assistance or 
241.33  family general assistance program, or the Minnesota supplemental 
241.34  aid program, or the work readiness program shall be disqualified 
241.35  from that program.  The needs of that individual shall not be 
241.36  taken into consideration in determining the grant level for that 
242.1   assistance unit:  
242.2      (1) for six months after the first offense; 
242.3      (2) for 12 months after the second offense; and 
242.4      (3) permanently after the third or subsequent offense.  
242.5      The period of program disqualification shall begin on the 
242.6   date stipulated on the advance notice of disqualification 
242.7   without possibility of postponement for administrative stay or 
242.8   administrative hearing and shall continue through completion 
242.9   unless and until the findings upon which the sanctions were 
242.10  imposed are reversed by a court of competent jurisdiction.  The 
242.11  period for which sanctions are imposed is not subject to 
242.12  review.  The sanctions provided under this subdivision are in 
242.13  addition to, and not in substitution for, any other sanctions 
242.14  that may be provided for by law for the offense involved.  A 
242.15  disqualification established through hearing or waiver shall 
242.16  result in the disqualification period beginning immediately 
242.17  unless the person has become otherwise ineligible for 
242.18  assistance.  If the person is ineligible for assistance, the 
242.19  disqualification period begins when the person again meets the 
242.20  eligibility criteria of the program from which they were 
242.21  disqualified. 
242.22     Sec. 21.  Minnesota Statutes 1996, section 256.981, is 
242.23  amended to read: 
242.24     256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 
242.25     The commissioner of human services shall, to the extent an 
242.26  appropriation is provided for this purpose, contract with the 
242.27  county attorney's council or other public or private entity 
242.28  experienced in providing training for prosecutors to conduct 
242.29  quarterly workshops and seminars focusing on current aid to 
242.30  families with dependent children Minnesota family investment 
242.31  program-statewide program issues, other income maintenance 
242.32  program changes, recovery issues, alternative sentencing 
242.33  methods, use of technical aids for interviews and 
242.34  interrogations, and other matters affecting prosecution of 
242.35  welfare fraud cases. 
242.36     Sec. 22.  Minnesota Statutes 1996, section 256.983, 
243.1   subdivision 1, is amended to read: 
243.2      Subdivision 1.  [PROGRAMS ESTABLISHED.] Within the limits 
243.3   of available appropriations, and to the extent required or 
243.4   authorized by applicable federal regulations, the commissioner 
243.5   of human services shall require the establishment of fraud 
243.6   prevention investigation programs in the seven counties 
243.7   participating in the fraud prevention investigation pilot 
243.8   project established under this section, and in 11 additional 
243.9   Minnesota counties with the largest aid to families with 
243.10  dependent children Minnesota family investment program-statewide 
243.11  program caseloads as of July 1, 1991.  If funds are sufficient, 
243.12  the commissioner may also extend fraud prevention investigation 
243.13  programs to:  (1) other counties that have welfare fraud control 
243.14  programs already in place based on enhanced funding contracts 
243.15  covering the fraud investigation function; and (2) counties that 
243.16  have the largest AFDC caseloads as of July 1, 1994, and are not 
243.17  currently participating in the fraud prevention investigation 
243.18  pilot project.  The pilot project may be expanded provided the 
243.19  expansion is budget neutral to the state. 
243.20     Sec. 23.  Minnesota Statutes 1996, section 256.983, 
243.21  subdivision 4, is amended to read: 
243.22     Subd. 4.  [FUNDING.] (a) Every involved county agency shall 
243.23  either have in place or obtain an approved contract which meets 
243.24  all federal requirements necessary to obtain enhanced federal 
243.25  funding for its welfare fraud control and fraud prevention 
243.26  investigation programs.  County agency reimbursement shall be 
243.27  made through the settlement provisions applicable to the aid to 
243.28  families with dependent children Minnesota family investment 
243.29  program-statewide and food stamp programs. 
243.30     (b) After allowing an opportunity to establish compliance, 
243.31  the commissioner will deny administrative reimbursement if for 
243.32  any three-month period during any grant year, a county agency 
243.33  fails to comply with fraud investigation guidelines, or fails to 
243.34  meet the cost-effectiveness standards developed by the 
243.35  commissioner.  This result is contingent on the commissioner 
243.36  providing written notice, including an offer of technical 
244.1   assistance, within 30 days of the end of the third or subsequent 
244.2   month of noncompliance.  The county agency shall be required to 
244.3   submit a corrective action plan to the commissioner within 30 
244.4   days of receipt of a notice of noncompliance.  Failure to submit 
244.5   a corrective action plan or, continued deviation from standards 
244.6   of more than ten percent after submission of a corrective action 
244.7   plan, will result in denial of funding for each subsequent month 
244.8   during the grant year or billing the county agency for fraud 
244.9   prevention investigation (FPI) service provided by the 
244.10  commissioner.  The denial of funding shall apply to the general 
244.11  settlement received by the county agency on a quarterly basis 
244.12  and shall not reduce the grant amount applicable to the FPI 
244.13  project.  
244.14     Sec. 24.  Minnesota Statutes 1996, section 256.9850, is 
244.15  amended to read: 
244.16     256.9850 [IDENTITY VERIFICATION.] 
244.17     The commissioner of human services shall seek from the 
244.18  Secretary of Health and Human Services all necessary waivers of 
244.19  the requirements of the program of AFDC Minnesota family 
244.20  investment program-statewide, to enable the commissioner to 
244.21  establish a statewide program to test the effectiveness of 
244.22  identity verification systems in the electronic benefit transfer 
244.23  systems in the state AFDC program Minnesota family investment 
244.24  program-statewide.  Identity verification provisions shall be 
244.25  added to the statewide requests for proposal on the expansion of 
244.26  electronic benefit transfer systems in the AFDC program 
244.27  Minnesota family investment program-statewide. 
244.28     Sec. 25.  Minnesota Statutes 1996, section 256.9861, 
244.29  subdivision 5, is amended to read: 
244.30     Subd. 5.  [FUNDING.] (a) Grant funds are intended to help 
244.31  offset the reduction in federal financial participation to 50 
244.32  percent and may be apportioned to the participating counties 
244.33  whenever feasible, and within the commissioner's discretion, to 
244.34  achieve this goal.  State funding shall be made available 
244.35  contingent on counties submitting a plan that is approved by the 
244.36  department of human services.  Failure or delay in obtaining 
245.1   that approval shall not, however, eliminate the obligation to 
245.2   maintain fraud control efforts at the January 1, 1995, level.  
245.3   Additional counties may be added to the project to the extent 
245.4   that funds are subsequently made available.  Every involved 
245.5   county must meet all federal requirements necessary to obtain 
245.6   federal funding for its welfare fraud control and prevention 
245.7   programs.  County agency reimbursement shall be made through the 
245.8   settlement provisions applicable to the AFDC Minnesota family 
245.9   investment program-statewide and food stamp programs.  
245.10     (b) Should a county agency fail to comply with the 
245.11  standards set, or fail to meet cost-effectiveness standards 
245.12  developed by the commissioner for three months during any grant 
245.13  year, the commissioner shall deny reimbursement or 
245.14  administrative costs, after allowing an opportunity to establish 
245.15  compliance.  
245.16     (c) Any denial of reimbursement under paragraph (b) is 
245.17  contingent on the commissioner providing written notice, 
245.18  including an offer of technical assistance, within 30 days of 
245.19  the end of the third or subsequent months of noncompliance.  The 
245.20  county agency shall be required to submit a corrective action 
245.21  plan to the commissioner within 30 days of receipt of a notice 
245.22  of noncompliance.  Failure to submit a corrective action plan or 
245.23  continued deviation from standards of more than ten percent 
245.24  after submission of corrective action plan, will result in 
245.25  denial of funding for each such month during the grant year, or 
245.26  billing the county agency for program integrity reinvestment 
245.27  project services provided by the commissioner.  The denial of 
245.28  funding shall apply to the general settlement received by the 
245.29  county agency on a quarterly basis and shall not reduce the 
245.30  grant amount applicable to the program integrity reinvestment 
245.31  project. 
245.32     Sec. 26.  Minnesota Statutes 1996, section 256E.03, 
245.33  subdivision 2, is amended to read: 
245.34     Subd. 2.  (a) "Community social services" means services 
245.35  provided or arranged for by county boards to fulfill the 
245.36  responsibilities prescribed in section 256E.08, subdivision 1, 
246.1   to the following groups of persons: 
246.2      (1) families with children under age 18, who are 
246.3   experiencing child dependency, neglect or abuse, and also 
246.4   pregnant adolescents, adolescent parents under the age of 18, 
246.5   and their children; 
246.6      (2) persons who are under the guardianship of the 
246.7   commissioner of human services as dependent and neglected wards; 
246.8      (3) adults who are in need of protection and vulnerable as 
246.9   defined in section 626.5572; 
246.10     (4) persons age 60 and over who are experiencing difficulty 
246.11  living independently and are unable to provide for their own 
246.12  needs; 
246.13     (5) emotionally disturbed children and adolescents, 
246.14  chronically and acutely mentally ill persons who are unable to 
246.15  provide for their own needs or to independently engage in 
246.16  ordinary community activities; 
246.17     (6) persons with mental retardation as defined in section 
246.18  252A.02, subdivision 2, or with related conditions as defined in 
246.19  section 252.27, subdivision 1a, who are unable to provide for 
246.20  their own needs or to independently engage in ordinary community 
246.21  activities; 
246.22     (7) drug dependent and intoxicated persons as defined in 
246.23  section 254A.02, subdivisions 5 and 7, and persons at risk of 
246.24  harm to self or others due to the ingestion of alcohol or other 
246.25  drugs; 
246.26     (8) parents whose income is at or below 70 percent of the 
246.27  state median income and who are in need of child care services 
246.28  in order to secure or retain employment or to obtain the 
246.29  training or education necessary to secure employment; and 
246.30     (9) other groups of persons who, in the judgment of the 
246.31  county board, are in need of social services. 
246.32     (b) Except as provided in section 256E.08, subdivision 5, 
246.33  community social services do not include public assistance 
246.34  programs known as aid to families with dependent children 
246.35  Minnesota family investment program-statewide, Minnesota 
246.36  supplemental aid, medical assistance, general assistance, 
247.1   general assistance medical care, or community health services 
247.2   authorized by sections 145A.09 to 145A.13.  
247.3      Sec. 27.  Minnesota Statutes 1996, section 256E.06, 
247.4   subdivision 1, is amended to read: 
247.5      Subdivision 1.  [FORMULA.] The commissioner of human 
247.6   services shall distribute community social service aids to each 
247.7   county board in an amount determined according to the following 
247.8   formula: 
247.9      In calendar year 1982 and thereafter: 
247.10     (a) One-third shall be distributed on the basis of the 
247.11  average unduplicated number of persons who receive AFDC 
247.12  Minnesota family investment program-statewide, general 
247.13  assistance, and medical assistance per month in the calendar 
247.14  year two years prior to the year for which funds are being 
247.15  distributed as reported in the average monthly caseload reports 
247.16  required under sections 256.01, 256B.04 and 256D.04, and 
247.17  certified by the commissioner of human services; and 
247.18     (b) One-third shall be distributed on the basis of the 
247.19  number of persons residing in the county as determined by the 
247.20  most recent data of the state demographer; 
247.21     (c) One-third shall be distributed on the basis of the 
247.22  number of persons residing in the county who are 65 years old or 
247.23  older as determined by the most recent data of the state 
247.24  demographer. 
247.25     Sec. 28.  Minnesota Statutes 1996, section 256E.06, 
247.26  subdivision 3, is amended to read: 
247.27     Subd. 3.  [PAYMENTS TO COUNTIES.] The commissioner of human 
247.28  services shall make payments for community social services to 
247.29  each county in four installments per year.  The commissioner of 
247.30  human services may certify the payments for the first three 
247.31  months of a calendar year based on estimates of the unduplicated 
247.32  number of persons receiving AFDC Minnesota family investment 
247.33  program-statewide, general assistance and medical assistance for 
247.34  the prior year.  The following three payments shall be adjusted 
247.35  to reflect the actual unduplicated number of persons who 
247.36  received AFDC Minnesota family investment program-statewide, 
248.1   general assistance and medical assistance as required by 
248.2   subdivision 1.  The commissioner shall ensure that the pertinent 
248.3   payment of the allotment for that quarter is made to each county 
248.4   on the first working day after the end of each quarter of the 
248.5   calendar year, except for the last quarter of the calendar 
248.6   year.  The commissioner shall ensure that each county receives 
248.7   its payment of the allotment for that quarter no later than the 
248.8   last working day of that quarter.  This scheduling of payments 
248.9   does not require compliance with subdivision 10.  
248.10     Sec. 29.  Minnesota Statutes 1996, section 256E.07, 
248.11  subdivision 1, is amended to read: 
248.12     Subdivision 1.  [FORMULA.] In federal fiscal year 1985 and 
248.13  subsequent years, money for social services that is received 
248.14  from the federal government to reimburse counties for social 
248.15  service expenditures pursuant according to title XX of the 
248.16  Social Security Act shall be allocated to each county according 
248.17  to the following formula:  
248.18     (a) Two-thirds shall be allocated on the basis of the 
248.19  annual average number of unduplicated active monthly caseloads 
248.20  in each county in the following programs:  aid to families with 
248.21  dependent children Minnesota family investment 
248.22  program-statewide, medical assistance, general assistance, 
248.23  supplementary security income, and Minnesota supplemental aid.  
248.24     (b) One-third shall be allocated on the basis of the number 
248.25  of persons residing in the county as determined by the most 
248.26  recent estimate of the state demographer.  
248.27     (c) The commissioner shall allocate to the counties 
248.28  pursuant according to this section the total money received from 
248.29  the federal government for social services pursuant according to 
248.30  title XX of the Social Security Act, except that portion of the 
248.31  state's allocation which the legislature authorizes for 
248.32  administrative purposes and for migrant day care. 
248.33     Sec. 30.  Minnesota Statutes 1996, section 256E.08, 
248.34  subdivision 3, is amended to read: 
248.35     Subd. 3.  [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 
248.36  The county board may designate itself, a human services board, 
249.1   or a local social services agency to perform the functions of 
249.2   local social services agencies as prescribed in chapter 393 and 
249.3   assigned to county agencies in other law which pertains to the 
249.4   administration of income maintenance programs known as aid to 
249.5   families with dependent children Minnesota family investment 
249.6   program-statewide, general assistance, Minnesota supplemental 
249.7   aid, medical assistance, general assistance medical care, and 
249.8   emergency assistance.  
249.9      Sec. 31.  Minnesota Statutes 1996, section 256F.05, 
249.10  subdivision 5, is amended to read: 
249.11     Subd. 5.  [INAPPROPRIATE EXPENDITURES.] Family preservation 
249.12  fund basic, placement earnings, and development grant money must 
249.13  not be used for: 
249.14     (1) child day care necessary solely because of the 
249.15  employment or training to prepare for employment, of a parent or 
249.16  other relative with whom the child is living; 
249.17     (2) residential facility payments; 
249.18     (3) adoption assistance payments; 
249.19     (4) public assistance payments for aid to families with 
249.20  dependent children Minnesota family investment 
249.21  program-statewide, supplemental aid, medical assistance, general 
249.22  assistance, general assistance medical care, or community health 
249.23  services authorized by sections 145A.09 to 145A.13; or 
249.24     (5) administrative costs for local social services agency 
249.25  public assistance staff.  
249.26     Sec. 32.  Minnesota Statutes 1996, section 256G.01, 
249.27  subdivision 4, is amended to read: 
249.28     Subd. 4.  [ADDITIONAL COVERAGE.] The provisions in sections 
249.29  256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 
249.30  subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 
249.31  subdivisions 1 to 3, apply to the following programs:  aid to 
249.32  families with dependent children Minnesota family investment 
249.33  program-statewide; medical assistance; general assistance; 
249.34  family general assistance; general assistance medical care; and 
249.35  Minnesota supplemental aid. 
249.36     Sec. 33.  Minnesota Statutes 1996, section 257.3573, 
250.1   subdivision 2, is amended to read: 
250.2      Subd. 2.  [INAPPROPRIATE EXPENDITURES.] Indian child 
250.3   welfare grant money must not be used for: 
250.4      (1) child day care necessary solely because of employment 
250.5   or training for employment of a parent or other relative with 
250.6   whom the child is living; 
250.7      (2) foster care maintenance or difficulty of care payments; 
250.8      (3) residential facility payments; 
250.9      (4) adoption assistance payments; 
250.10     (5) public assistance payments for aid to families with 
250.11  dependent children Minnesota family investment 
250.12  program-statewide, supplemental aid, medical assistance, general 
250.13  assistance, general assistance medical care, or community health 
250.14  services authorized by sections 145A.01 to 145A.14; or 
250.15     (6) administrative costs for income maintenance staff.  
250.16     Sec. 34.  Minnesota Statutes 1996, section 260.38, is 
250.17  amended to read: 
250.18     260.38 [COST, PAYMENT.] 
250.19     In addition to the usual care and services given by public 
250.20  and private agencies, the necessary cost incurred by the 
250.21  commissioner of human services in providing care for such child 
250.22  shall be paid by the county committing such child which, subject 
250.23  to uniform rules established by the commissioner of human 
250.24  services, may receive a reimbursement not exceeding one-half of 
250.25  such costs from funds made available for this purpose by the 
250.26  legislature during the period beginning July 1, 1985, and ending 
250.27  December 31, 1985.  Beginning January 1, 1986, the necessary 
250.28  cost incurred by the commissioner of human services in providing 
250.29  care for the child must be paid by the county committing the 
250.30  child.  Where such child is eligible to receive a grant of aid 
250.31  to families with dependent children Minnesota family investment 
250.32  program-statewide or supplemental security income for the aged, 
250.33  blind, and disabled, or a foster care maintenance payment under 
250.34  Title IV-E of the Social Security Act, United States Code, title 
250.35  42, sections 670 to 676, the child's needs shall be met through 
250.36  these programs.  
251.1      Sec. 35.  Minnesota Statutes 1996, section 268.0111, 
251.2   subdivision 5, is amended to read: 
251.3      Subd. 5.  [INCOME MAINTENANCE AND SUPPORT SERVICES.] 
251.4   "Income maintenance and support services" means programs through 
251.5   which the state or its subdivisions provide direct financial or 
251.6   in-kind support to unemployed or underemployed persons, 
251.7   including reemployment insurance, aid to families with dependent 
251.8   children Minnesota family investment program-statewide, general 
251.9   assistance, work readiness assistance, food stamps, energy 
251.10  assistance, disability determinations, and child care.  Income 
251.11  maintenance and support services do not include medical 
251.12  assistance, aging services, social services, community social 
251.13  services, mental health services, or services for the 
251.14  emotionally disturbed, the mentally retarded, or residents of 
251.15  nursing homes. 
251.16     Sec. 36.  Minnesota Statutes 1996, section 268.0111, 
251.17  subdivision 7, is amended to read: 
251.18     Subd. 7.  [PUBLIC ASSISTANCE.] "Public assistance" 
251.19  means aid to families with dependent children, Minnesota family 
251.20  investment program-statewide and general assistance, and work 
251.21  readiness.  
251.22     Sec. 37.  Minnesota Statutes 1996, section 268.0122, 
251.23  subdivision 3, is amended to read: 
251.24     Subd. 3.  [DUTIES AS A STATE AGENCY.] The commissioner 
251.25  shall: 
251.26     (1) administer the unemployment insurance laws and related 
251.27  programs; 
251.28     (2) administer the aspects of aid to families with 
251.29  dependent children Minnesota family investment 
251.30  program-statewide, general assistance, work readiness, and food 
251.31  stamps that relate to employment and training services, subject 
251.32  to the contract under section 268.86, subdivision 2; 
251.33     (3) administer wage subsidies and the discretionary 
251.34  employment and training fund; 
251.35     (4) administer a national system of public employment 
251.36  offices as prescribed by United States Code, title 29, chapter 
252.1   4B, the Wagner-Peyser Act, and other federal employment and 
252.2   training programs; 
252.3      (5) cooperate with the federal government and its 
252.4   employment and training agencies in any reasonable manner as 
252.5   necessary to qualify for federal aid for employment and training 
252.6   services and money; 
252.7      (6) enter into agreements with other departments of the 
252.8   state and local units of government as necessary; 
252.9      (7) certify employment and training service providers and 
252.10  decertify service providers that fail to comply with performance 
252.11  criteria according to standards established by the commissioner; 
252.12     (8) provide consistent, integrated employment and training 
252.13  services across the state; 
252.14     (9) establish the standards for all employment and training 
252.15  services administered under this chapter; 
252.16     (10) develop standards for the contents and structure of 
252.17  the local service unit plans and plans for Indian tribe 
252.18  employment and training services; 
252.19     (11) provide current state and substate labor market 
252.20  information and forecasts, in cooperation with other agencies; 
252.21     (12) identify underserved populations, unmet service needs, 
252.22  and funding requirements; 
252.23     (13) consult with the council for the blind on matters 
252.24  pertaining to programs and services for the blind and visually 
252.25  impaired; and 
252.26     (14) enter into agreements with Indian tribes as necessary 
252.27  to provide employment and training services as funds become 
252.28  available. 
252.29     Sec. 38.  Minnesota Statutes 1996, section 268.552, 
252.30  subdivision 5, is amended to read: 
252.31     Subd. 5.  [ALLOCATION TO APPLICANTS.] Priority for 
252.32  subsidies shall be in the following order: 
252.33     (1) applicants living in households with no other income 
252.34  source; 
252.35     (2) applicants whose incomes and resources are less than 
252.36  the standard for eligibility for general assistance or work 
253.1   readiness; and 
253.2      (3) applicants who are eligible for aid to families with 
253.3   dependent children Minnesota family investment program-statewide.
253.4      Sec. 39.  Minnesota Statutes 1996, section 268.6751, 
253.5   subdivision 1, is amended to read: 
253.6      Subdivision 1.  [WAGE SUBSIDIES.] Wage subsidy money must 
253.7   be allocated to local service units in the following manner: 
253.8      (a) The commissioner shall allocate 87.5 percent of the 
253.9   funds available for allocation to local service units for wage 
253.10  subsidy programs as follows:  the proportion of the wage subsidy 
253.11  money available to each local service unit must be based on the 
253.12  number of unemployed persons in the local service unit for the 
253.13  most recent six-month period and the number of work readiness 
253.14  assistance cases and aid to families with dependent children 
253.15  Minnesota family investment program-statewide cases in the local 
253.16  service unit for the most recent six-month period. 
253.17     (b) Five percent of the money available for wage subsidy 
253.18  programs must be allocated at the discretion of the commissioner.
253.19     (c) Seven and one-half percent of the money available for 
253.20  wage subsidy programs must be allocated at the discretion of the 
253.21  commissioner to provide jobs for residents of federally 
253.22  recognized Indian reservations.  
253.23     (d) By December 31 of each fiscal year, providers and local 
253.24  service units receiving wage subsidy money shall report to the 
253.25  commissioner on the use of allocated funds.  The commissioner 
253.26  shall reallocate uncommitted funds for each fiscal year 
253.27  according to the formula in paragraph (a). 
253.28     Sec. 40.  Minnesota Statutes 1996, section 268.676, 
253.29  subdivision 1, is amended to read: 
253.30     Subdivision 1.  [AMONG JOB APPLICANTS.] At least 80 percent 
253.31  of funds allocated among eligible job applicants statewide must 
253.32  be allocated to: 
253.33     (1) applicants living in households with no other income 
253.34  source; 
253.35     (2) applicants whose incomes and resources are less than 
253.36  the standards for eligibility for general assistance or work 
254.1   readiness; 
254.2      (3) applicants who are eligible for aid to families with 
254.3   dependent children Minnesota family investment 
254.4   program-statewide; and 
254.5      (4) applicants who live in a farm household who demonstrate 
254.6   severe household financial need. 
254.7      Sec. 41.  Minnesota Statutes 1996, section 268.86, 
254.8   subdivision 2, is amended to read: 
254.9      Subd. 2.  [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 
254.10  commissioner and the commissioner of human services shall enter 
254.11  into a written contract for the design, delivery, and 
254.12  administration of employment and training services for 
254.13  applicants for or recipients of food stamps or aid to families 
254.14  with dependent children and work readiness Minnesota family 
254.15  investment program-statewide, including AFDC MFIP-S employment 
254.16  and training programs, and general assistance or work readiness 
254.17  grant diversion.  The contract must address: 
254.18     (1) specific roles and responsibilities of each department; 
254.19     (2) assignment and supervision of staff for interagency 
254.20  activities including any necessary interagency employee mobility 
254.21  agreements under the administrative procedures of the department 
254.22  of employee relations; 
254.23     (3) mechanisms for determining the conditions under which 
254.24  individuals participate in services, their rights and 
254.25  responsibilities while participating, and the standards by which 
254.26  the services must be administered; 
254.27     (4) procedures for providing technical assistance to local 
254.28  service units, Indian tribes, and employment and training 
254.29  service providers; 
254.30     (5) access to appropriate staff for ongoing development and 
254.31  interpretation of policy, rules, and program standards; 
254.32     (6) procedures for reimbursing appropriate agencies for 
254.33  administrative expenses; and 
254.34     (7) procedures for accessing available federal funds. 
254.35     Sec. 42.  Minnesota Statutes 1996, section 268.871, 
254.36  subdivision 1, is amended to read: 
255.1      Subdivision 1.  [RESPONSIBILITY AND CERTIFICATION.] (a) 
255.2   Unless prohibited by federal law or otherwise determined by 
255.3   state law, a local service unit is responsible for the delivery 
255.4   of employment and training services.  After February 1, 1988, 
255.5   employment and training services must be delivered by certified 
255.6   employment and training service providers.  
255.7      (b) The local service unit's employment and training 
255.8   service provider must meet the certification standards in this 
255.9   subdivision in order to be certified to deliver any of the 
255.10  following employment and training services and programs:  wage 
255.11  subsidies; work readiness; work readiness and general assistance 
255.12  grant diversion; food stamp employment and training programs; 
255.13  community work experience programs; AFDC MFIP-S job search; AFDC 
255.14  MFIP-S grant diversion; AFDC MFIP-S on-the-job training; and 
255.15  AFDC MFIP-S case management.  
255.16     (c) The commissioner shall certify a local service unit's 
255.17  service provider to provide these employment and training 
255.18  services and programs if the commissioner determines that the 
255.19  provider has:  
255.20     (1) past experience in direct delivery of the programs 
255.21  specified in paragraph (b); 
255.22     (2) staff capabilities and qualifications, including 
255.23  adequate staff to provide timely and effective services to 
255.24  clients, and proven staff experience in providing specific 
255.25  services such as assessments, career planning, job development, 
255.26  job placement, support services, and knowledge of community 
255.27  services and educational resources; 
255.28     (3) demonstrated effectiveness in providing services to 
255.29  public assistance recipients and other economically 
255.30  disadvantaged clients; and 
255.31     (4) demonstrated administrative capabilities, including 
255.32  adequate fiscal and accounting procedures, financial management 
255.33  systems, participant data systems, and record retention 
255.34  procedures. 
255.35     (d) When the only service provider that meets the criterion 
255.36  in paragraph (c), clause (1), has been decertified, pursuant 
256.1   according to subdivision 1a, in that local service unit, the 
256.2   following criteria shall be substituted:  past experience in 
256.3   direct delivery of multiple, coordinated, nonduplicative 
256.4   services, including outreach, assessments, identification of 
256.5   client barriers, employability development plans, and provision 
256.6   or referral to support services. 
256.7      (e) The commissioner shall certify providers of the 
256.8   Minnesota family investment plan case management services as 
256.9   defined in section 256.032, subdivision 3.  Providers must meet 
256.10  the standards defined in paragraph (c), except that past 
256.11  experience under paragraph (c), clause (1), must be in services 
256.12  and programs similar to those specified in section 256.032, 
256.13  subdivision 3.  
256.14     Employment and training service providers shall be 
256.15  certified by the commissioner for two fiscal years beginning 
256.16  July 1, 1991, and every second year thereafter. 
256.17     Sec. 43.  Minnesota Statutes 1996, section 268.90, 
256.18  subdivision 2, is amended to read: 
256.19     Subd. 2.  [EMPLOYMENT CONDITIONS.] (a) An eligible 
256.20  nonprofit or public employer may not terminate, lay off, or 
256.21  reduce the regular working hours of an employee for the purpose 
256.22  of hiring an individual with money available under this 
256.23  program.  An eligible employer may not hire an individual with 
256.24  money available through this program if any other person is on 
256.25  layoff from the same or a substantially equivalent job. 
256.26     (b) Community investment program participants are employees 
256.27  of the project employer within the meaning of workers' 
256.28  compensation laws, personal income tax, and the federal 
256.29  insurance contribution act, but not retirement or civil service 
256.30  laws. 
256.31     (c) Each project and job must comply with all applicable 
256.32  affirmative action, fair labor, health, safety, and 
256.33  environmental standards. 
256.34     (d) Individuals employed under the community investment 
256.35  program must be paid a wage at the same wage rates as work site 
256.36  or employees doing comparable work in that locality, unless 
257.1   otherwise specified in law. 
257.2      (e) Recipients of aid to families with dependent children 
257.3   Minnesota family investment program-statewide who are eligible 
257.4   on the basis of an unemployed parent may not have available more 
257.5   than 100 hours a month.  All employees are limited to 32 hours 
257.6   or four days a week, so that they can continue to seek full-time 
257.7   private sector employment, unless otherwise specified in law. 
257.8      (f) The commissioner shall establish, by rule, the terms 
257.9   and conditions governing the participation of appropriate public 
257.10  assistance recipients.  The rules must, at a minimum, establish 
257.11  the procedures by which the minimum and maximum number of work 
257.12  hours and maximum allowable travel distances are determined, the 
257.13  amounts and methods by which work expenses will be paid, and the 
257.14  manner in which support services will be provided.  The rules 
257.15  must also provide for periodic reviews of clients continuing 
257.16  employment in community investment programs. 
257.17     (g) Participation in a community investment program by a 
257.18  recipient of aid to families with dependent children Minnesota 
257.19  family investment program-statewide or general assistance is 
257.20  voluntary; however, work readiness registrants may be required 
257.21  to participate.  
257.22     Sec. 44.  Minnesota Statutes 1996, section 268.916, is 
257.23  amended to read: 
257.24     268.916 [REPORTS.] 
257.25     Each grantee shall submit an annual report to the 
257.26  commissioner on the format designated by the commissioner, 
257.27  including program information report data.  By January 1 of each 
257.28  year, the commissioner shall prepare an annual report to the 
257.29  health and human services committee of the house of 
257.30  representatives and the family services committee of the senate 
257.31  concerning the uses and impact of head start supplemental 
257.32  funding, including a summary of innovative programs and the 
257.33  results of innovative programs and an evaluation of the 
257.34  coordination of head start programs with employment and training 
257.35  services provided to AFDC MFIP-S recipients. 
257.36     Sec. 45.  Minnesota Statutes 1996, section 268.95, 
258.1   subdivision 4, is amended to read: 
258.2      Subd. 4.  [PILOT PROGRAM.] The commissioner shall develop a 
258.3   pilot program, in cooperation with the commissioners of trade 
258.4   and economic development and human services, to enable 
258.5   low-income persons to start or expand self-employment 
258.6   opportunities or home-based businesses that are designed to make 
258.7   the individual entrepreneurs economically independent.  The 
258.8   commissioner of human services shall seek necessary waivers from 
258.9   federal regulations to allow recipients of aid to families with 
258.10  dependent children Minnesota family investment program-statewide 
258.11  to participate and retain eligibility while establishing a 
258.12  business. 
258.13     Sec. 46.  Minnesota Statutes 1996, section 393.07, 
258.14  subdivision 6, is amended to read: 
258.15     Subd. 6.  [PURCHASE OF EQUIPMENT TO AID WELFARE 
258.16  RECIPIENTS.] Every local social services agency authorizing 
258.17  braces, crutches, trusses, wheel chairs and hearing aids for use 
258.18  by recipients of supplemental security income for the aged, 
258.19  blind and disabled, aid to families with dependent children 
258.20  Minnesota family investment program-statewide and relief shall 
258.21  secure such devices at the lowest cost obtainable conducive to 
258.22  the well being of the recipient and fix the recipient's grant in 
258.23  an amount to cover the cost of the device providing it will be 
258.24  purchased at the lowest cost obtainable, or may make payment for 
258.25  the device directly to the vendor. 
258.26     Sec. 47.  Minnesota Statutes 1996, section 477A.0122, 
258.27  subdivision 2, is amended to read: 
258.28     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
258.29  following definitions apply: 
258.30     (a) "Children in out-of-home placement" means the total 
258.31  unduplicated number of children in out-of-home care as reported 
258.32  pursuant according to section 257.0725. 
258.33     (b) "Family preservation programs" means family-based 
258.34  services as defined in section 256F.03, subdivision 5, families 
258.35  first services, parent and child education programs, and day 
258.36  treatment services provided in cooperation with a school 
259.1   district or other programs as defined by the commissioner of 
259.2   human services. 
259.3      (c) "Income maintenance caseload" means average monthly 
259.4   number of AFDC Minnesota family investment program-statewide 
259.5   cases for the calendar year. 
259.6      By July 1, 1994, the commissioner of human services shall 
259.7   certify to the commissioner of revenue the number of children in 
259.8   out-of-home placement in 1991 and 1992 for each county and the 
259.9   income maintenance caseload for each county for the most recent 
259.10  year available.  By July 1 of each subsequent year, the 
259.11  commissioner of human services shall certify to the commissioner 
259.12  of revenue the income maintenance caseload for each county for 
259.13  the most recent calendar year available. 
259.14     Sec. 48.  [EFFECTIVE DATE.] 
259.15     Sections 1 to 47 are effective January 1, 1998.