HF 580

1st Committee Engrossment - 86th Legislature (2009 - 2010) Posted on 03/19/2013 07:28pm

A bill for an act
relating to human services; modifying MFIP family stabilization and work
programs; modifying asset limitations and documentation for medical assistance
and MinnesotaCare; amending Minnesota Statutes 2008, sections 256B.056,
subdivisions 3, 3c; 256J.425, subdivision 4; 256J.46, subdivision 1; 256J.53,
subdivision 1; 256J.57, subdivision 1; 256J.575, subdivisions 3, 6, 7; 256L.17,
subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 256B.056, subdivision 3, is amended to
read:

Subd. 3.

Asset limitations for individuals and families.

To be eligible for medical
assistance, a person must not individually own more than $3,000 in assets, or if a member
of a household with two family members, husband and wife, or parent and child, the
household must not own more than $6,000 in assets, plus $200 for each additional legal
dependent. In addition to these maximum amounts, an eligible individual or family may
accrue interest on these amounts, but they must be reduced to the maximum at the time
of an eligibility redetermination. The accumulation of the clothing and personal needs
allowance according to section 256B.35 must also be reduced to the maximum at the
time of the eligibility redetermination. The value of assets that are not considered in
determining eligibility for medical assistance is the value of those assets excluded under
the supplemental security income program for aged, blind, and disabled persons, with
the following exceptions:

(1) household goods and personal effects are not considered;

(2) capital and operating assets of a trade or business that the local agency determines
are necessary to the person's ability to earn an income are not considered deleted text begin ; deleted text end new text begin , except that
capital and operating assets used for personal expenses including, but not limited to,
mortgage payments, utility payments, motor vehicle payments, and grocery payments paid
out of a business account shall be considered earned income to the household;
new text end

(3) motor vehicles are excluded to the same extent excluded by the supplemental
security income program;

(4) assets designated as burial expenses are excluded to the same extent excluded by
the supplemental security income program. Burial expenses funded by annuity contracts
or life insurance policies must irrevocably designate the individual's estate as contingent
beneficiary to the extent proceeds are not used for payment of selected burial expenses; and

(5) effective upon federal approval, for a person who no longer qualifies as an
employed person with a disability due to loss of earnings, assets allowed while eligible
for medical assistance under section 256B.057, subdivision 9, are not considered for 12
months, beginning with the first month of ineligibility as an employed person with a
disability, to the extent that the person's total assets remain within the allowed limits of
section 256B.057, subdivision 9, paragraph (c).

new text begin The assets specified in clauses (1) to (4) must be disclosed to the local agency at the
time of application and at the time of an eligibility redetermination, and must be verified
upon request of the local agency.
new text end

Sec. 2.

Minnesota Statutes 2008, section 256B.056, subdivision 3c, is amended to read:

Subd. 3c.

Asset limitations for families and children.

A household of two or more
persons must not own more than $20,000 in total net assets, and a household of one
person must not own more than $10,000 in total net assets. In addition to these maximum
amounts, an eligible individual or family may accrue interest on these amounts, but they
must be reduced to the maximum at the time of an eligibility redetermination. The value of
assets that are not considered in determining eligibility for medical assistance for families
and children is the value of those assets excluded under the AFDC state plan as of July 16,
1996, as required by the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (PRWORA), Public Law 104-193, with the following exceptions:

(1) household goods and personal effects are not considered;

(2) capital and operating assets of a trade or business up to $200,000 are not
considered new text begin , except that capital and operating assets used for personal expenses including,
but not limited to, mortgage payments, utility payments, motor vehicle payments, and
grocery payments paid out of a business account shall be considered earned income to
the household new text end ;

(3) one motor vehicle is excluded for each person of legal driving age who is
employed or seeking employment;

(4) one burial plot and all other burial expenses equal to the supplemental security
income program asset limit are not considered for each individual;

(5) court-ordered settlements up to $10,000 are not considered;

(6) individual retirement accounts and funds are not considered; and

(7) assets owned by children are not considered.

new text begin The assets specified in clauses (1) to (7) must be disclosed to the local agency at the
time of application and at the time of an eligibility redetermination, and must be verified
upon request of the local agency.
new text end

Sec. 3.

Minnesota Statutes 2008, section 256J.425, subdivision 4, is amended to read:

Subd. 4.

Employed participants.

(a) An assistance unit subject to the time limit
under section 256J.42, subdivision 1, is eligible to receive assistance under a hardship
extension if the participant who reached the time limit belongs to:

(1) a one-parent assistance unit in which the participant is participating in work
activities for at least 30 hours per week, of which an average of at least 25 hours per week
every month are spent participating in employment;

(2) a two-parent assistance unit in which the participants are participating in work
activities for at least 55 hours per week, of which an average of at least 45 hours per week
every month are spent participating in employment; or

(3) an assistance unit in which a participant is participating in employment for fewer
hours than those specified in clause (1), and the participant submits verification from a
qualified professional, in a form acceptable to the commissioner, stating that the number
of hours the participant may work is limited due to illness or disability, as long as the
participant is participating in employment for at least the number of hours specified by the
qualified professional. The participant must be following the treatment recommendations
of the qualified professional providing the verification. The commissioner shall develop a
form to be completed and signed by the qualified professional, documenting the diagnosis
and any additional information necessary to document the functional limitations of the
participant that limit work hours. If the participant is part of a two-parent assistance unit,
the other parent must be treated as a one-parent assistance unit for purposes of meeting the
work requirements under this subdivision.

(b) For purposes of this section, employment means:

(1) unsubsidized employment under section 256J.49, subdivision 13, clause (1);

(2) subsidized employment under section 256J.49, subdivision 13, clause (2);

(3) on-the-job training under section 256J.49, subdivision 13, clause (2);

(4) an apprenticeship under section 256J.49, subdivision 13, clause (1);

(5) supported work under section 256J.49, subdivision 13, clause (2);

(6) a combination of clauses (1) to (5); deleted text begin or
deleted text end

(7) child care under section 256J.49, subdivision 13, clause (7), if it is in combination
with paid employment new text begin ; or
new text end

new text begin (8) unpaid work under section 256J.49, subdivision 13, clause (3), if it is combined
with job search for up to 12 months in duration new text end .

(c) If a participant is complying with a child protection plan under chapter 260C,
the number of hours required under the child protection plan count toward the number
of hours required under this subdivision.

(d) The county shall provide the opportunity for subsidized employment to
participants needing that type of employment within available appropriations.

(e) To be eligible for a hardship extension for employed participants under this
subdivision, a participant must be in compliance for at least ten out of the 12 months
the participant received MFIP immediately preceding the participant's 61st month on
assistance. If ten or fewer months of eligibility for TANF assistance remain at the time the
participant from another state applies for assistance, the participant must be in compliance
every month.

(f) The employment plan developed under section 256J.521, subdivision 2, for
participants under this subdivision must contain at least the minimum number of hours
specified in paragraph (a) for the purpose of meeting the requirements for an extension
under this subdivision. The job counselor and the participant must sign the employment
plan to indicate agreement between the job counselor and the participant on the contents
of the plan.

(g) Participants who fail to meet the requirements in paragraph (a), without good
cause under section 256J.57, shall be sanctioned or permanently disqualified under
subdivision 6. Good cause may only be granted for that portion of the month for which
the good cause reason applies. Participants must meet all remaining requirements in the
approved employment plan or be subject to sanction or permanent disqualification.

(h) If the noncompliance with an employment plan is due to the involuntary loss of
employment, the participant is exempt from the hourly employment requirement under
this subdivision for one month. Participants must meet all remaining requirements in the
approved employment plan or be subject to sanction or permanent disqualification. This
exemption is available to each participant two times in a 12-month period.

Sec. 4.

Minnesota Statutes 2008, section 256J.46, subdivision 1, is amended to read:

Subdivision 1.

Participants not complying with program requirements.

(a)
A participant who fails without good cause under section 256J.57 to comply with the
requirements of this chapter, and who is not subject to a sanction under subdivision 2,
shall be subject to a sanction as provided in this subdivision. Prior to the imposition of
a sanction, a county agency shall provide a notice of intent to sanction under section
256J.57, subdivision 2, and, when applicable, a notice of adverse action as provided
in section 256J.31.

(b) A sanction under this subdivision becomes effective the month following the
month in which a required notice is given. A sanction must not be imposed when a
participant comes into compliance with the requirements for orientation under section
256J.45 prior to the effective date of the sanction. A sanction must not be imposed
when a participant comes into compliance with the requirements for employment and
training services under sections 256J.515 to 256J.57 ten days prior to the effective date
of the sanction. For purposes of this subdivision, each month that a participant fails to
comply with a requirement of this chapter shall be considered a separate occurrence of
noncompliance. If both participants in a two-parent assistance unit are out of compliance
at the same time, it is considered one occurrence of noncompliance.

(c) Sanctions for noncompliance shall be imposed as follows:

(1) For the first occurrence of noncompliance by a participant in an assistance unit,
the assistance unit's grant shall be reduced by ten percent of the MFIP standard of need
for an assistance unit of the same size with the residual grant paid to the participant. The
reduction in the grant amount must be in effect for a minimum of one month and shall be
removed in the month following the month that the participant returns to compliance.

(2) For a second, third, fourth, fifth, or sixth occurrence of noncompliance by a
participant in an assistance unit, the assistance unit's shelter costs shall be vendor paid
up to the amount of the cash portion of the MFIP grant for which the assistance unit is
eligible. At county option, the assistance unit's utilities may also be vendor paid up to
the amount of the cash portion of the MFIP grant remaining after vendor payment of the
assistance unit's shelter costs. The residual amount of the grant after vendor payment, if
any, must be reduced by an amount equal to 30 percent of the MFIP standard of need for an
assistance unit of the same size before the residual grant is paid to the assistance unit. The
reduction in the grant amount must be in effect for a minimum of one month and shall be
removed in the month following the month that the participant in a one-parent assistance
unit returns to compliance. In a two-parent assistance unit, the grant reduction must
be in effect for a minimum of one month and shall be removed in the month following
the month both participants return to compliance. The vendor payment of shelter costs
and, if applicable, utilities shall be removed six months after the month in which the
participant or participants return to compliance. If an assistance unit is sanctioned under
this clause, the participant's case file must be reviewed to determine if the employment
plan is still appropriate.

(d) For a seventh occurrence of noncompliance by a participant in an assistance unit,
or when the participants in a two-parent assistance unit have a total of seven occurrences
of noncompliance, the county agency shall close the MFIP assistance unit's financial
assistance case, both the cash and food portions, and redetermine the family's continued
eligibility for food support payments. The MFIP case must remain closed for a minimum
of one full month. Before the case is closed, new text begin the county agency or employment services
provider must assess the participant and determine if information is available that the
participant may be eligible for family stabilization services based on the criteria in
section 256J.575, subdivision 3. new text end The county agency must new text begin also new text end review the participant's
case to determine if the employment plan is still appropriate and attempt to meet with
the participant face-to-face. The participant may bring an advocate to the face-to-face
meeting. If a face-to-face meeting is not conducted, the county agency must send the
participant a written notice that includes the information required under clause (1).

(1) During the face-to-face meeting, the county agency must:

(i) determine whether the continued noncompliance can be explained and mitigated
by providing a needed preemployment activity, as defined in section 256J.49, subdivision
13, clause (9);

(ii) determine whether the participant qualifies for a good cause exception under
section 256J.57, or if the sanction is for noncooperation with child support requirements,
determine if the participant qualifies for a good cause exemption under section 256.741,
subdivision 10;

(iii) determine whether the work activities in the employment plan are appropriate
based on the criteria in section 256J.521, subdivision 2 or 3;

(iv) determine whether the participant qualifies for the family violence waiver;

(v) inform the participant of the participant's sanction status and explain the
consequences of continuing noncompliance;

(vi) identify other resources that may be available to the participant to meet the
needs of the family; and

(vii) inform the participant of the right to appeal under section 256J.40.

(2) If the lack of an identified activity or service can explain the noncompliance, the
county must work with the participant to provide the identified activity.

(3) The grant must be restored to the full amount for which the assistance unit is
eligible retroactively to the first day of the month in which the participant was found to lack
preemployment activities or to qualify for a family violence waiver new text begin , family stabilization
services, new text end or for a good cause exemption under section 256.741, subdivision 10, or 256J.57.

(e) For the purpose of applying sanctions under this section, only occurrences of
noncompliance that occur after July 1, 2003, shall be considered. If the participant is in
30 percent sanction in the month this section takes effect, that month counts as the first
occurrence for purposes of applying the sanctions under this section, but the sanction
shall remain at 30 percent for that month.

(f) An assistance unit whose case is closed under paragraph (d) or (g), may
reapply for MFIP and shall be eligible if the participant complies with MFIP program
requirements and demonstrates compliance for up to one month. No assistance shall be
paid during this period.

(g) An assistance unit whose case has been closed for noncompliance, that reapplies
under paragraph (f), is subject to sanction under paragraph (c), clause (2), for a first
occurrence of noncompliance. Any subsequent occurrence of noncompliance shall result
in case closure under paragraph (d).

Sec. 5.

Minnesota Statutes 2008, section 256J.53, subdivision 1, is amended to read:

Subdivision 1.

Length of program.

deleted text begin In order for deleted text end A postsecondary education or
training program deleted text begin to be an deleted text end approved new text begin as a new text end work activity as defined in section 256J.49,
subdivision 13, clause (6), deleted text begin it must be a program lasting 24 months or less deleted text end new text begin may include
associate and baccalaureate programs new text end , and the participant must meet the requirements of
subdivisions 2, 3, and 5.

Sec. 6.

Minnesota Statutes 2008, section 256J.57, subdivision 1, is amended to read:

Subdivision 1.

Good cause for failure to comply.

The county agency shall not
impose the sanction under section 256J.46 if it determines that the participant has good
cause for failing to comply with the requirements of sections 256J.515 to 256J.57. Good
cause exists when:

(1) appropriate child care is not available;

(2) the job does not meet the definition of suitable employment;

(3) the participant is ill or injured;

(4) a member of the assistance unit, a relative in the household, or a foster child in
the household is ill and needs care by the participant that prevents the participant from
complying with the employment plan;

(5) the participant is unable to secure necessary transportation;

(6) the participant is in an emergency situation that prevents compliance with the
employment plan;

(7) the schedule of compliance with the employment plan conflicts with judicial
proceedings;

(8) a mandatory MFIP meeting is scheduled during a time that conflicts with a
judicial proceeding or a meeting related to a juvenile court matter, or a participant's work
schedule;

(9) the participant is already participating in acceptable work activities;

(10) the employment plan requires an educational program for a caregiver under age
20, but the educational program is not available;

(11) activities identified in the employment plan are not available;

(12) the participant is willing to accept suitable employment, but suitable
employment is not available; deleted text begin or
deleted text end

(13) the participant documents other verifiable impediments to compliance with the
employment plan beyond the participant's control new text begin ; or
new text end

new text begin (14) the documentation needed to determine if a participant is eligible for family
stabilization services is not available, but there is information that the participant may
qualify and the participant is cooperating with the county or employment service provider's
efforts to obtain the documentation necessary to determine eligibility new text end .

The job counselor shall work with the participant to reschedule mandatory meetings
for individuals who fall under clauses (1), (3), (4), (5), (6), (7), and (8).

Sec. 7.

Minnesota Statutes 2008, section 256J.575, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

(a) The following MFIP or diversionary work program (DWP)
participants are eligible for the services under this section:

(1) a participant who meets the requirements for or has been granted a hardship
extension under section 256J.425, subdivision 2 or 3, except that it is not necessary for
the participant to have reached or be approaching 60 months of eligibility for this section
to apply;

(2) a participant who is applying for Supplemental Security Income or Social
Security disability insurance; and

(3) a participant who is a noncitizen who has been in the United States for 12 or
fewer months.

(b) Families must meet all other eligibility requirements for MFIP established in
this chapter. Families are eligible for financial assistance to the same extent as if they
were participating in MFIP.

(c) A participant under paragraph (a), clause (3), must be provided with English as a
second language opportunities and skills training for up to 12 months. After 12 months,
the case manager and participant must determine whether the participant should continue
with English as a second language classes or skills training, or both, and continue to
receive family stabilization services.

new text begin (d) If a county agency or employment services provider has information that
an MFIP participant may meet the eligibility criteria set forth in this subdivision, the
county agency or employment services provider must assist the participant in obtaining
the documentation necessary to determine eligibility. Until necessary documentation is
obtained, the participant must be treated as an eligible participant under subdivisions 5 to 7.
new text end

Sec. 8.

Minnesota Statutes 2008, section 256J.575, subdivision 6, is amended to read:

Subd. 6.

Cooperation with services requirements.

(a) deleted text begin To be eligible, deleted text end A participant
new text begin who is eligible for family stabilization services under this section new text end shall comply with
paragraphs (b) to (d).

(b) Participants shall engage in family stabilization plan services for the appropriate
number of hours per week that the activities are scheduled and available, unless good
cause exists for not doing so, as defined in section 256J.57, subdivision 1. The appropriate
number of hours must be based on the participant's plan.

(c) The case manager shall review the participant's progress toward the goals in the
family stabilization plan every six months to determine whether conditions have changed,
including whether revisions to the plan are needed.

(d) A participant's requirement to comply with any or all family stabilization plan
requirements under this subdivision is excused when the case management services,
training and educational services, or family support services identified in the participant's
family stabilization plan are unavailable for reasons beyond the control of the participant,
including when money appropriated is not sufficient to provide the services.

Sec. 9.

Minnesota Statutes 2008, section 256J.575, subdivision 7, is amended to read:

Subd. 7.

Sanctions.

(a) new text begin The county agency or employment services provider must
follow the requirements of this subdivision at the time the county agency or employment
services provider has information that an MFIP recipient may meet the eligibility criteria
in subdivision 3.
new text end

new text begin (b) new text end The financial assistance grant of a participating family is reduced according to
section 256J.46, if a participating adult fails without good cause to comply or continue
to comply with the family stabilization plan requirements in this subdivision, unless
compliance has been excused under subdivision 6, paragraph (d).

deleted text begin (b) deleted text end new text begin (c) new text end Given the purpose of the family stabilization services in this section and the
nature of the underlying family circumstances that act as barriers to both employment and
full compliance with program requirements, there must be a review by the county agency
prior to imposing a sanction to determine whether the plan was appropriated to the needs
of the participant and family deleted text begin , and deleted text end new text begin . There must be a current assessment by a behavioral
health or medical professional confirming new text end that the participant in all ways had the ability to
comply with the plan deleted text begin , as confirmed by a behavioral health or medical professional deleted text end .

deleted text begin (c) deleted text end new text begin (d) new text end Prior to the imposition of a sanction, the county agency or employment
services provider shall review the participant's case to determine if the family stabilization
plan is still appropriate and meet with the participant face-to-face. deleted text begin The participant may
bring an advocate deleted text end new text begin The county agency or employment services provider must inform the
participant of the right to bring an advocate new text end to the face-to-face meeting.

During the face-to-face meeting, the county agency shall:

(1) determine whether the continued noncompliance can be explained and mitigated
by providing a needed family stabilization service, as defined in subdivision 2, paragraph
(d);

(2) determine whether the participant qualifies for a good cause exception under
section 256J.57, or if the sanction is for noncooperation with child support requirements,
determine if the participant qualifies for a good cause exemption under section 256.741,
subdivision 10;

(3) determine whether activities in the family stabilization plan are appropriate
based on the family's circumstances;

(4) explain the consequences of continuing noncompliance;

(5) identify other resources that may be available to the participant to meet the
needs of the family; and

(6) inform the participant of the right to appeal under section 256J.40.

If the lack of an identified activity or service can explain the noncompliance, the
county shall work with the participant to provide the identified activity.

(d) If the participant fails to come to the face-to-face meeting, the case manager or a
designee shall attempt at least one home visit. If a face-to-face meeting is not conducted,
the county agency shall send the participant a written notice that includes the information
under paragraph (c).

(e) After the requirements of paragraphs (c) and (d) are met and prior to imposition
of a sanction, the county agency shall provide a notice of intent to sanction under section
256J.57, subdivision 2, and, when applicable, a notice of adverse action under section
256J.31.

(f) Section 256J.57 applies to this section except to the extent that it is modified
by this subdivision.

Sec. 10.

Minnesota Statutes 2008, section 256L.17, subdivision 3, is amended to read:

Subd. 3.

Documentation.

(a) The commissioner of human services shall require
individuals and families, at the time of application or renewal, to indicate on a deleted text begin checkoff deleted text end
form developed by the commissioner whether they satisfy the MinnesotaCare asset
requirement.

(b) The commissioner may require individuals and families to provide any
information the commissioner determines necessary to verify compliance with the asset
requirement, if the commissioner determines that there is reason to believe that an
individual or family has assets that exceed the program limit.