Engrossments
Introduction		Posted on 02/02/2007
1st Engrossment		Posted on 03/20/2007

Section 1.

Minnesota Statutes 2006, section 119B.011, is amended by adding a
subdivision to read:

new text begin Subd. 13a. new text end

new text begin Family stabilization services program. new text end

new text begin "Family stabilization services
program" means the program under section 256J.575.
new text end

Sec. 2.

Minnesota Statutes 2006, section 119B.05, subdivision 1, is amended to read:

Subdivision 1.

Eligible participants.

Families eligible for child care assistance
under the MFIP child care program are:

(1) MFIP participants who are employed or in job search and meet the requirements
of section 119B.10;

(2) persons who are members of transition year families under section 119B.011,
subdivision 20, and meet the requirements of section 119B.10;

(3) families who are participating in employment orientation or job search, or
other employment or training activities that are included in an approved employability
development plan under section 256J.95;

(4) MFIP families who are participating in work job search, job support,
employment, or training activities as required in their employment plan, or in appeals,
hearings, assessments, or orientations according to chapter 256J;

(5) MFIP families who are participating in social services activities under chapter
256J as required in their employment plan approved according to chapter 256J;

(6) new text begin families who are participating in services or activities that are included in an
approved family stabilization plan under section 256J.575;new text end

new text begin (7) new text end families who are participating in programs as required in tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2; and

deleted text begin (7)deleted text end new text begin (8) new text end families who are participating in the transition year extension under section
119B.011, subdivision 20a.

Sec. 3.

Minnesota Statutes 2006, section 119B.09, subdivision 1, is amended to read:

Subdivision 1.

General eligibility requirements for all applicants for child
care assistance.

(a) Child care services must be available to families who need child
care to find or keep employment or to obtain the training or education necessary to find
employment and whodeleted text begin :
deleted text end

deleted text begin (1)deleted text end have household income less than or equal to deleted text begin 250 percent of the federal poverty
guidelines, adjusted for family size, and meet the requirements of section 119B.05;
receive MFIP assistance; and are participating in employment and training services under
chapter 256J or 256K; or
deleted text end

deleted text begin (2) have household income less than or equal to 175 percent of the federal poverty
guidelines, adjusted for family size, at program entry and less than 250 percent of the
federal poverty guidelines, adjusted for family size, at program exitdeleted text end new text begin 75 percent of the
state median incomenew text end .

(b) Child care services must be made available as in-kind services.

(c) All applicants for child care assistance and families currently receiving child care
assistance must be assisted and required to cooperate in establishment of paternity and
enforcement of child support obligations for all children in the family as a condition
of program eligibility. For purposes of this section, a family is considered to meet the
requirement for cooperation when the family complies with the requirements of section
256.741.

Sec. 4.

Minnesota Statutes 2006, section 119B.09, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Payment of other child care expenses. new text end

new text begin Payment, by a source other
than the family, of part or all of a family's child care expenses not payable under this
chapter does not affect the family's eligibility for child care assistance, and the amount
paid is excluded from the family's income if the funds are paid directly to the family's
child care provider on behalf of the family. Child care providers who accept third-party
payments must maintain family-specific documentation of payment source, amount, type
of expenses, and time period covered.
new text end

Sec. 5.

Minnesota Statutes 2006, section 119B.12, subdivision 2, is amended to read:

Subd. 2.

Parent fee.

A family must be assessed a parent fee for each service periodnew text begin
according to the schedule under subdivision 3new text end . deleted text begin A family's parent fee must be a fixed
percentage of its annual gross income.deleted text end Parent fees must apply to families eligible for child
care assistance under sections 119B.03 and 119B.05. Income must be as defined in section
119B.011, subdivision 15. The fixed percent is based on the relationship of the family's
annual gross income to deleted text begin 100 percent of the annual federal poverty guidelines. Parent fees
must begin at 75 percent of the poverty level. The minimumdeleted text end new text begin the state median income;
however, for incomes below 100 percent of the poverty level, there are no fees for incomes
at 74 percent of the poverty level and below, and thenew text end parent fees for families between 75
percent and 100 percent of poverty level must be deleted text begin $10deleted text end new text begin $5new text end per month. Parent fees deleted text begin must
provide for graduated movement to full paymentdeleted text end new text begin for incomes above 100 percent of the
poverty level must be assessed according to the schedule under subdivision 3new text end . Payment of
part or all of a family's parent fee directly to the family's child care provider on behalf
of the family by a source other than the family shall not affect the family's eligibility for
child care assistance, and the amount paid shall be excluded from the family's income.
Child care providers who accept third-party payments must maintain family specific
documentation of payment source, amount, and time period covered by the payment.

Sec. 6.

Minnesota Statutes 2006, section 119B.12, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Co-payment fee for families with annual incomes that exceed the
federal poverty level. new text end

new text begin The monthly family co-payment fee for families with annual
incomes greater than the federal poverty level, adjusted for family size, is determined
as follows:
new text end

new text begin (a) The family's annual gross income is converted into a percentage of state median
income (SMI) for a family of four, adjusted for family size, by dividing the family's annual
gross income by 100 percent of the SMI for a family of four, adjusted for family size. The
percentage must be carried out to the nearest 100th of a percent.
new text end

new text begin (b) If the family's annual gross income is less than or equal to 75 percent of the
SMI for a family of four, adjusted for family size, the family's monthly co-payment fee
is the fixed percentage established for the family's income range in clauses (1) to (60),
multiplied by the highest possible income within that income range, divided by 12, and
rounded to the nearest whole dollar.
new text end

new text begin (1) Less than 35.01 percent of SMI is 2.20%;
new text end

new text begin (2) 35.01 to 42.00 percent of SMI is 2.70%;
new text end

new text begin (3) 42.01 to 43.00 percent of SMI is 3.75%;
new text end

new text begin (4) 43.01 to 44.00 percent of SMI is 4.00%;
new text end

new text begin (5) 44.01 to 45.00 percent of SMI is 4.25%;
new text end

new text begin (6) 45.01 to 46.00 percent of SMI is 4.50%;
new text end

new text begin (7) 46.01 to 47.00 percent of SMI is 4.75%;
new text end

new text begin (8) 47.01 to 48.00 percent of SMI is 5.00%;
new text end

new text begin (9) 48.01 to 49.00 percent of SMI is 5.25%;
new text end

new text begin (10) 49.01 to 50.00 percent of SMI is 5.50%;
new text end

new text begin (11) 50.01 to 50.50 percent of SMI is 5.75%;
new text end

new text begin (12) 50.51 to 51.00 percent of SMI is 6.00%;
new text end

new text begin (13) 51.01 to 51.50 percent of SMI is 6.25%;
new text end

new text begin (14) 51.51 to 52.00 percent of SMI is 6.50%;
new text end

new text begin (15) 52.01 to 52.50 percent of SMI is 6.75%;
new text end

new text begin (16) 52.51 to 53.00 percent of SMI is 7.00%;
new text end

new text begin (17) 53.01 to 53.50 percent of SMI is 7.25%;
new text end

new text begin (18) 53.51 to 54.00 percent of SMI is 7.50%;
new text end

new text begin (19) 54.01 to 54.50 percent of SMI is 7.75%;
new text end

new text begin (20) 54.51 to 55.00 percent of SMI is 8.00%;
new text end

new text begin (21) 55.01 to 55.50 percent of SMI is 8.30%;
new text end

new text begin (22) 55.51 to 56.00 percent of SMI is 8.60%;
new text end

new text begin (23) 56.01 to 56.50 percent of SMI is 8.90%;
new text end

new text begin (24) 56.51 to 57.00 percent of SMI is 9.20%;
new text end

new text begin (25) 57.01 to 57.50 percent of SMI is 9.50%;
new text end

new text begin (26) 57.51 to 58.00 percent of SMI is 9.80%;
new text end

new text begin (27) 58.01 to 58.50 percent of SMI is 10.10%;
new text end

new text begin (28) 58.51 to 59.00 percent of SMI is 10.40%;
new text end

new text begin (29) 59.01 to 59.50 percent of SMI is 10.70%;
new text end

new text begin (30) 59.51 to 60.00 percent of SMI is 11.00%;
new text end

new text begin (31) 60.01 to 60.50 percent of SMI is 11.30%;
new text end

new text begin (32) 60.51 to 61.00 percent of SMI is 11.60%;
new text end

new text begin (33) 61.01 to 61.50 percent of SMI is 11.90%;
new text end

new text begin (34) 61.51 to 62.00 percent of SMI is 12.20%;
new text end

new text begin (35) 62.01 to 62.50 percent of SMI is 12.50%;
new text end

new text begin (36) 62.51 to 63.00 percent of SMI is 12.80%;
new text end

new text begin (37) 63.01 to 63.50 percent of SMI is 13.10%;
new text end

new text begin (38) 63.51 to 64.00 percent of SMI is 13.40%;
new text end

new text begin (39) 64.01 to 64.50 percent of SMI is 13.70%;
new text end

new text begin (40) 64.51 to 65.00 percent of SMI is 14.00%;
new text end

new text begin (41) 65.01 to 65.50 percent of SMI is 14.30%;
new text end

new text begin (42) 65.51 to 66.00 percent of SMI is 14.60%;
new text end

new text begin (43) 66.01 to 66.50 percent of SMI is 14.90%;
new text end

new text begin (44) 66.51 to 67.00 percent of SMI is 15.20%;
new text end

new text begin (45) 67.01 to 67.50 percent of SMI is 15.50%;
new text end

new text begin (46) 67.51 to 68.00 percent of SMI is 15.80%;
new text end

new text begin (47) 68.01 to 68.50 percent of SMI is 16.10%;
new text end

new text begin (48) 68.51 to 69.00 percent of SMI is 16.40%;
new text end

new text begin (49) 69.01 to 69.50 percent of SMI is 16.70%;
new text end

new text begin (50) 69.51 to 70.00 percent of SMI is 17.00%;
new text end

new text begin (51) 70.01 to 70.50 percent of SMI is 17.30%;
new text end

new text begin (52) 70.51 to 71.00 percent of SMI is 17.60%;
new text end

new text begin (53) 71.01 to 71.50 percent of SMI is 17.90%;
new text end

new text begin (54) 71.51 to 72.00 percent of SMI is 18.20%;
new text end

new text begin (55) 72.01 to 72.50 percent of SMI is 18.50%;
new text end

new text begin (56) 72.51 to 73.00 percent of SMI is 18.80%;
new text end

new text begin (57) 73.01 to 73.50 percent of SMI is 19.10%;
new text end

new text begin (58) 73.51 to 74.00 percent of SMI is 19.40%;
new text end

new text begin (59) 74.01 to 74.50 percent of SMI is 19.70%; and
new text end

new text begin (60) 74.51 to 75.00 percent of SMI is 20.00%.
new text end

Sec. 7.

new text begin [256D.0516] EXPIRATION OF FOOD SUPPORT BENEFITS AND
REPORTING REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Expiration of food support benefits. new text end

new text begin Food support benefits shall
not be stored off line or expunged from a recipient's account unless the benefits have not
been accessed for 12 months after the month they were issued.
new text end

new text begin Subd. 2. new text end

new text begin Food support reporting requirements. new text end

new text begin The Department of Human
Services shall implement simplified reporting as permitted under the Food Stamp Act of
1977, as amended, and the food stamp regulations in Code of Federal Regulations, title
7, part 273. Food support recipient households required to report periodically shall not
be required to report more often than one time every six months. This provision shall
not apply to households receiving food benefits under the Minnesota family investment
program waiver.
new text end

Sec. 8.

Minnesota Statutes 2006, section 256J.01, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Legislative approval to move programs or activities. new text end

new text begin The commissioner
shall not move programs or activities funded with MFIP or TANF maintenance of effort
funds to other funding sources without legislative approval.
new text end

Sec. 9.

Minnesota Statutes 2006, section 256J.02, subdivision 1, is amended to read:

Subdivision 1.

Commissioner's authority to administer block grant funds.

The
commissioner of human services is authorized to receive, administer, and expend funds
available under the TANF block grant authorized under title I of Public Law 104-193, the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996new text begin , and under
Public Law 109-171, the Deficit Reduction Act of 2005new text end .

Sec. 10.

Minnesota Statutes 2006, section 256J.02, subdivision 4, is amended to read:

Subd. 4.

Authority to transfer.

Subject to limitations of title I of Public Law
104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996,
as amended, new text begin and under Public Law 109-171, the Deficit Reduction Act of 2005, new text end the
legislature may transfer money from the TANF block grant to the child care fund under
chapter 119B, or the Title XX block grant.

Sec. 11.

Minnesota Statutes 2006, section 256J.021, is amended to read:

256J.021 deleted text begin SEPARATEdeleted text end STATE deleted text begin PROGRAM FOR USE OF STATE MONEYdeleted text end new text begin
PROGRAMSnew text end .

(a) Until October 1, deleted text begin 2006deleted text end new text begin 2007new text end , the commissioner of human services must treat
MFIP expenditures made to or on behalf of any minor child under section 256J.02,
subdivision 2, clause (1), who is a resident of this state under section 256J.12, and who is
part of a two-parent eligible household as expenditures under a deleted text begin separately funded statedeleted text end
program deleted text begin and report those expenditures to the federal Department of Health and Human
Services as separate state program expenditures under Code of Federal Regulations, title
45, section 263.5deleted text end new text begin funded with state nonmaintenance of effort fundsnew text end .

(b) Beginning October 1, deleted text begin 2006deleted text end new text begin 2007new text end , new text begin and each year thereafter, new text end the commissioner of
human services must treat MFIP expenditures made to or on behalf of any minor child
under section 256J.02, subdivision 2, clause (1), who is a resident of this state under
section 256J.12, and who is part of a two-parent eligible household, as expenditures under
a separately funded state program. These expenditures shall not count toward the state's
maintenance of effort (MOE) requirements under the federal Temporary Assistance to
Needy Families (TANF) program except if counting certain families would allow the
commissioner to avoid a federal penalty. Families receiving assistance under this section
must comply with all applicable requirements in this chapter.

Sec. 12.

Minnesota Statutes 2006, section 256J.08, subdivision 65, is amended to read:

Subd. 65.

Participant.

new text begin (a) new text end "Participant" deleted text begin meansdeleted text end new text begin includes any of the following:
new text end

new text begin (1)new text end a person who is currently receiving cash assistance or the food portion available
through MFIPdeleted text begin . A person who fails to withdraw or access electronically any portion of the
person's cash and food assistance payment by the end of the payment month, who makes a
written request for closure before the first of a payment month and repays cash and food
assistance electronically issued for that payment month within that payment month, or
who returns any uncashed assistance check and food coupons and withdraws from the
program is not a participant.deleted text end new text begin ;
new text end

new text begin (2)new text end a person who withdraws a cash or food assistance payment by electronic transfer
or receives and cashes an MFIP assistance check or food coupons and is subsequently
determined to be ineligible for assistance for that period of time is a participant, regardless
whether that assistance is repaiddeleted text begin . The term "participant" includesdeleted text end new text begin ;
new text end

new text begin (3)new text end the caregiver relative and the minor child whose needs are included in the
assistance paymentdeleted text begin .deleted text end new text begin ;
new text end

new text begin (4)new text end a person in an assistance unit who does not receive a cash and food assistance
payment because the case has been suspended from MFIP deleted text begin is a participant.deleted text end new text begin ;
new text end

new text begin (5)new text end a person who receives cash payments under the diversionary work program
under section 256J.95 is a participantdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (6) a person who receives cash payments under the family stabilization services
program under section 256J.575.
new text end

new text begin (b) "Participant" does not include a person who fails to withdraw or access
electronically any portion of the person's cash and food assistance payment by the end of
the payment month, who makes a written request for closure before the first of a payment
month and repays cash and food assistance electronically issued for that payment month
within that payment month, or who returns any uncashed assistance check and food
coupons and withdraws from the program.new text end

Sec. 13.

Minnesota Statutes 2006, section 256J.20, subdivision 3, is amended to read:

Subd. 3.

Other property limitations.

To be eligible for MFIP, the equity value of
all nonexcluded real and personal property of the assistance unit must not exceed $2,000
for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to
(19) must be excluded when determining the equity value of real and personal property:

(1) a licensed vehicle deleted text begin up to a loan value of less than or equal to $7,500. The county
agency shall apply any excess loan value as if it were equity value to the asset limit
described in this sectiondeleted text end . If the assistance unit owns more than one licensed vehicle,
the county agency shall deleted text begin determine the vehicle with the highest loan value and count
only the loan value over $7,500, excluding: (i) the value of one vehicle per physically
disabled person when the vehicle is needed to transport the disabled unit member; this
exclusion does not apply to mentally disabled people; (ii) the value of special equipment
for a disabled member of the assistance unit; and (iii)deleted text end new text begin also exclude new text end any vehicle used for
long-distance travel, other than daily commuting, for the employment of a unit member.

The county agency shall count the deleted text begin loandeleted text end value of all other vehicles and apply this
amount deleted text begin as if it were equity valuedeleted text end to the asset limit described in this section. To establish the
deleted text begin loandeleted text end value of vehicles, a county agency must use the N.A.D.A. Official Used Car Guide,
Midwest Edition, for newer model cars. When a vehicle is not listed in the guidebook,
or when the applicant or participant disputes the deleted text begin loandeleted text end value listed in the guidebook as
unreasonable given the condition of the particular vehicle, the county agency may require
the applicant or participant document the deleted text begin loandeleted text end value by securing a written statement from
a motor vehicle dealer licensed under section 168.27, stating the amount that the dealer
would pay to purchase the vehicle. The county agency shall reimburse the applicant or
participant for the cost of a written statement that documents a lower deleted text begin loandeleted text end value;

(2) the value of life insurance policies for members of the assistance unit;

(3) one burial plot per member of an assistance unit;

(4) the value of personal property needed to produce earned income, including
tools, implements, farm animals, inventory, business loans, business checking and
savings accounts used at least annually and used exclusively for the operation of a
self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use
is to produce income and if the vehicles are essential for the self-employment business;

(5) the value of personal property not otherwise specified which is commonly
used by household members in day-to-day living such as clothing, necessary household
furniture, equipment, and other basic maintenance items essential for daily living;

(6) the value of real and personal property owned by a recipient of Supplemental
Security Income or Minnesota supplemental aid;

(7) the value of corrective payments, but only for the month in which the payment
is received and for the following month;

(8) a mobile home or other vehicle used by an applicant or participant as the
applicant's or participant's home;

(9) money in a separate escrow account that is needed to pay real estate taxes or
insurance and that is used for this purpose;

(10) money held in escrow to cover employee FICA, employee tax withholding,
sales tax withholding, employee worker compensation, business insurance, property rental,
property taxes, and other costs that are paid at least annually, but less often than monthly;

(11) monthly assistance payments for the current month's or short-term emergency
needs under section 256J.626, subdivision 2;

(12) the value of school loans, grants, or scholarships for the period they are
intended to cover;

(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held
in escrow for a period not to exceed three months to replace or repair personal or real
property;

(14) income received in a budget month through the end of the payment month;

(15) savings from earned income of a minor child or a minor parent that are set aside
in a separate account designated specifically for future education or employment costs;

(16) the federal earned income credit, Minnesota working family credit, state and
federal income tax refunds, state homeowners and renters credits under chapter 290A,
property tax rebates and other federal or state tax rebates in the month received and the
following month;

(17) payments excluded under federal law as long as those payments are held in a
separate account from any nonexcluded funds;

(18) the assets of children ineligible to receive MFIP benefits because foster care or
adoption assistance payments are made on their behalf; and

(19) the assets of persons whose income is excluded under section 256J.21,
subdivision 2, clause (43).

Sec. 14.

Minnesota Statutes 2006, section 256J.21, subdivision 2, is amended to read:

Subd. 2.

Income exclusions.

The following must be excluded in determining a
family's available income:

(1) payments for basic care, difficulty of care, and clothing allowances received for
providing family foster care to children or adults under Minnesota Rules, parts 9555.5050
to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments received and used
for care and maintenance of a third-party beneficiary who is not a household member;

(2) reimbursements for employment training received through the Workforce
Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;

(3) reimbursement for out-of-pocket expenses incurred while performing volunteer
services, jury duty, employment, or informal carpooling arrangements directly related to
employment;

(4) all educational assistance, except the county agency must count graduate student
teaching assistantships, fellowships, and other similar paid work as earned income and,
after allowing deductions for any unmet and necessary educational expenses, shall
count scholarships or grants awarded to graduate students that do not require teaching
or research as unearned income;

(5) loans, regardless of purpose, from public or private lending institutions,
governmental lending institutions, or governmental agencies;

(6) loans from private individuals, regardless of purpose, provided an applicant or
participant documents that the lender expects repayment;

(7)(i) state income tax refunds; and

(ii) federal income tax refunds;

(8)(i) federal earned income credits;

(ii) Minnesota working family credits;

(iii) state homeowners and renters credits under chapter 290A; and

(iv) federal or state tax rebates;

(9) funds received for reimbursement, replacement, or rebate of personal or real
property when these payments are made by public agencies, awarded by a court, solicited
through public appeal, or made as a grant by a federal agency, state or local government,
or disaster assistance organizations, subsequent to a presidential declaration of disaster;

(10) the portion of an insurance settlement that is used to pay medical, funeral, and
burial expenses, or to repair or replace insured property;

(11) reimbursements for medical expenses that cannot be paid by medical assistance;

(12) payments by a vocational rehabilitation program administered by the state
under chapter 268A, except those payments that are for current living expenses;

(13) in-kind income, including any payments directly made by a third party to a
provider of goods and services;

(14) assistance payments to correct underpayments, but only for the month in which
the payment is received;

(15) payments for short-term emergency needs under section 256J.626, subdivision
2;

(16) funeral and cemetery payments as provided by section 256.935;

(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in
a calendar month;

(18) any form of energy assistance payment made through Public Law 97-35,
Low-Income Home Energy Assistance Act of 1981, payments made directly to energy
providers by other public and private agencies, and any form of credit or rebate payment
issued by energy providers;

(19) Supplemental Security Income (SSI), including retroactive SSI payments and
other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;

(20) Minnesota supplemental aid, including retroactive payments;

(21) proceeds from the sale of real or personal property;

(22) state adoption assistance payments under section 259.67, and up to an equal
amount of county adoption assistance payments;

(23) state-funded family subsidy program payments made under section 252.32
to help families care for children with developmental disabilities, consumer support
grant funds under section 256.476, and resources and services for a disabled household
member under one of the home and community-based waiver services programs under
chapter 256B;

(24) interest payments and dividends from property that is not excluded from and
that does not exceed the asset limit;

(25) rent rebates;

(26) income earned by a minor caregiver, minor child through age 6, or a minor
child who is at least a half-time student in an approved elementary or secondary education
program;

(27) income earned by a caregiver under age 20 who is at least a half-time student in
an approved elementary or secondary education program;

(28) MFIP child care payments under section 119B.05;

(29) all other payments made through MFIP to support a caregiver's pursuit of
greater economic stability;

(30) income a participant receives related to shared living expenses;

(31) reverse mortgages;

(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title
42, chapter 13A, sections 1771 to 1790;

(33) benefits provided by the women, infants, and children (WIC) nutrition program,
United States Code, title 42, chapter 13A, section 1786;

(34) benefits from the National School Lunch Act, United States Code, title 42,
chapter 13, sections 1751 to 1769e;

(35) relocation assistance for displaced persons under the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title
42, chapter 61, subchapter II, section 4636, or the National Housing Act, United States
Code, title 12, chapter 13, sections 1701 to 1750jj;

(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter
12, part 2, sections 2271 to 2322;

(37) war reparations payments to Japanese Americans and Aleuts under United
States Code, title 50, sections 1989 to 1989d;

(38) payments to veterans or their dependents as a result of legal settlements
regarding Agent Orange or other chemical exposure under Public Law 101-239, section
10405, paragraph (a)(2)(E);

(39) income that is otherwise specifically excluded from MFIP consideration in
federal law, state law, or federal regulation;

(40) security and utility deposit refunds;

(41) American Indian tribal land settlements excluded under Public Laws 98-123,
98-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech
Lake, and Mille Lacs reservations and payments to members of the White Earth Band,
under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;

(42) all income of the minor parent's parents and stepparents when determining the
grant for the minor parent in households that include a minor parent living with parents or
stepparents on MFIP with other children;

(43) income of the minor parent's parents and stepparents equal to 200 percent of the
federal poverty guideline for a family size not including the minor parent and the minor
parent's child in households that include a minor parent living with parents or stepparents
not on MFIP when determining the grant for the minor parent. The remainder of income is
deemed as specified in section 256J.37, subdivision 1b;

(44) payments made to children eligible for relative custody assistance under section
257.85;

(45) vendor payments for goods and services made on behalf of a client unless the
client has the option of receiving the payment in cash; deleted text begin and
deleted text end

(46) the principal portion of a contract for deed paymentdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (47) cash payments to individuals enrolled for full-time service as a volunteer under
AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps
National, and AmeriCorps NCCC.
new text end

Sec. 15.

Minnesota Statutes 2006, section 256J.24, subdivision 5, is amended to read:

Subd. 5.

MFIP transitional standard.

new text begin (a) new text end The MFIP transitional standard is based
on the number of persons in the assistance unit eligible for both food and cash assistance
unless the restrictions in subdivision 6 on the birth of a child apply. The following table
represents the transitional standards effective October 1, 2004.

Number of Eligible
People

Transitional
Standard

Cash Portion

Food Portion

1	$379:	$250	$129
2	$675:	$437	$238
3	$876:	$532	$344
4	$1,036:	$621	$415
5	$1,180:	$697	$483
6	$1,350:	$773	$577
7	$1,472:	$850	$622
8	$1,623:	$916	$707
9	$1,772:	$980	$792
10	$1,915:	$1,035	$880
over 10	add $142:	$53	$89
per additional member.

The commissioner shall annually publish in the State Register the transitional
standard for an assistance unit sizes 1 to 10 including a breakdown of the cash and food
portions.

new text begin (b) The commissioner shall increase the existing transitional standard by ten percent
effective July 1, 2007, to be distributed in the cash portion of the grant.
new text end

Sec. 16.

Minnesota Statutes 2006, section 256J.24, subdivision 10, is amended to read:

Subd. 10.

MFIP exit level.

The commissioner shall adjust the MFIP earned income
disregard to ensure that most participants do not lose eligibility for MFIP until their
income reaches at least deleted text begin 115deleted text end new text begin 175new text end percent of the federal poverty guidelines in effect in
October of each fiscal year. The adjustment to the disregard shall be based on a household
size of three, and the resulting earned income disregard percentage must be applied to all
household sizes. The adjustment under this subdivision must be implemented at the same
time as the October food stamp or food support cost-of-living adjustment is reflected in
the food portion of MFIP transitional standard as required under subdivision 5a.

Sec. 17.

Minnesota Statutes 2006, section 256J.30, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Monthlydeleted text end MFIP household reports.

Each assistance unit with a member
who has earned income deleted text begin or a recent work historydeleted text end , and each assistance unit that has income
deemed to it from a financially responsible personnew text begin ,new text end must complete deleted text begin a monthlydeleted text end new text begin annew text end MFIP
household report formnew text begin every six monthsnew text end . deleted text begin "Recent work history" means the individual
received earned income in the report month or any of the previous three calendar months
even if the earnings are excluded.deleted text end To be complete, the MFIP household report form must
be signed and dated by the caregivers no earlier than the last day of the reporting period.
All questions required to determine assistance payment eligibility must be answered, and
documentation of earned income must be included.

Sec. 18.

Minnesota Statutes 2006, section 256J.39, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Prohibited purchases. new text end

new text begin MFIP recipients are prohibited from using MFIP
monthly cash assistance payments issued in the form of an electronic benefits transfer to
purchase tobacco products, alcoholic beverages, or lottery tickets.
new text end

Sec. 19.

Minnesota Statutes 2006, section 256J.42, subdivision 1, is amended to read:

Subdivision 1.

Time limit.

(a) Except as otherwise provided for in this section, an
assistance unit in which any adult caregiver has received 60 months of cash assistance
funded in whole or in part by the TANF block grant in this or any other state or
United States territory, or from a tribal TANF program, MFIP, the AFDC program
formerly codified in sections 256.72 to 256.87, or the family general assistance program
formerly codified in sections 256D.01 to 256D.23, funded in whole or in part by state
appropriations, is ineligible to receive MFIP. Any cash assistance funded with TANF
dollars in this or any other state or United States territory, or from a tribal TANF program,
or MFIP assistance funded in whole or in part by state appropriations, that was received
by the unit on or after the date TANF was implemented, including any assistance received
in states or United States territories of prior residence, counts toward the 60-month
limitation. new text begin Months during which any cash assistance is received by an assistance unit
with a mandatory member who is disqualified for wrongfully obtaining public assistance
under section 256.98, subdivision 8, counts toward the time limit for the disqualified
member. new text end The 60-month limit applies to a minor caregiver except under subdivision 5. The
60-month time period does not need to be consecutive months for this provision to apply.

(b) The months before July 1998 in which individuals received assistance as part of
the field trials as an MFIP, MFIP-R, or MFIP or MFIP-R comparison group family are
not included in the 60-month time limit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2007.
new text end

Sec. 20.

Minnesota Statutes 2006, section 256J.425, subdivision 3, is amended to read:

Subd. 3.

Hard-to-employ participants.

An assistance unit subject to the time
limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under
a hardship extension if the participant who reached the time limit belongs to any of the
following groups:

(1) a person who is diagnosed by a licensed physician, psychological practitioner,
or other qualified professional, as developmentally disabled or mentally ill, and that
condition prevents the person from obtaining or retaining unsubsidized employment;

(2) a person who:

(i) has been assessed by a vocational specialist or the county agency to be
unemployable for purposes of this subdivision; or

(ii) has an IQ below 80 who has been assessed by a vocational specialist or a county
agency to be employable, but not at a level that makes the participant eligible for an
extension under subdivision 4. The determination of IQ level must be made by a qualified
professional. In the case of a non-English-speaking person: (A) the determination must
be made by a qualified professional with experience conducting culturally appropriate
assessments, whenever possible; (B) the county may accept reports that identify an
IQ range as opposed to a specific score; (C) these reports must include a statement of
confidence in the results;

(3) a person who is determined by a qualified professional to be learning disabled,
and the disability severely limits the person's ability to obtain, perform, or maintain
suitable employment. For purposes of the initial approval of a learning disability
extension, the determination must have been made or confirmed within the previous 12
months. In the case of a non-English-speaking person: (i) the determination must be made
by a qualified professional with experience conducting culturally appropriate assessments,
whenever possible; and (ii) these reports must include a statement of confidence in the
results. If a rehabilitation plan for a participant extended as learning disabled is developed
or approved by the county agency, the plan must be incorporated into the employment
plan. However, a rehabilitation plan does not replace the requirement to develop and
comply with an employment plan under section 256J.521; deleted text begin ordeleted text end

(4) a person who has been granted a family violence waiver, and who is complying
with an employment plan under section 256J.521, subdivision 3new text begin ; or
new text end

new text begin (5) a participant under section 256J.561, subdivision 2, paragraph (d), who is
complying with an employment plan tailored to recognize the special circumstances of
the caregivers and family, including limitations due to illness or disability, and caregiving
needsnew text end .

Sec. 21.

Minnesota Statutes 2006, 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 weekdeleted text begin , of which an average of at least 25 hours per week
every month are spent participating in employmentdeleted text end ;

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

(3) an assistance unit in which a participant is participating in employment for fewer
hours than those specified in clause (1)new text begin or (2)new text end , 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) deleted text begin For purposes of this section, employment means:
deleted text end

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

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

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

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

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

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

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

deleted text begin (c)deleted text end 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.

deleted text begin (d)deleted text end new text begin (c) new text end The county shall provide the opportunity for subsidized employment to
participants needing that type of employment within available appropriations.

deleted text begin (e)deleted text end new text begin (d) new text end 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.

deleted text begin (f)deleted text end new text begin (e) new text end 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.

deleted text begin (g)deleted text end new text begin (f) new text end 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.

deleted text begin (h)deleted text end new text begin (g) new text end 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. 22.

Minnesota Statutes 2006, section 256J.49, subdivision 13, is amended to read:

Subd. 13.

Work activity.

"Work activity" means any activity in a participant's
approved employment plan that leads to employment. For purposes of the MFIP program,
this includes activities that meet the definition of work activity under the participation
requirements of TANF. Work activity includes:

(1) unsubsidized employment, including work study and paid apprenticeships or
internships;

(2) subsidized private sector or public sector employment, including grant diversion
as specified in section 256J.69, on-the-job training as specified in section 256J.66,
the self-employment investment demonstration program (SEID) as specified in section
256J.65, paid work experience, and supported work when a wage subsidy is provided;

(3) unpaid work experience, including community service, volunteer work,
the community work experience program as specified in section 256J.67, unpaid
apprenticeships or internships, and supported work when a wage subsidy is not providednew text begin .
Unpaid work performed in return for cash assistance is prohibited and does not count
as a work activity, unless the participant voluntarily agrees, in writing, to engage in
unpaid work in return for cash assistance. The participant may terminate the unpaid
work arrangement, in writing, at any timenew text end ;

(4) job search including job readiness assistance, job clubs, job placement,
job-related counseling, and job retention services;

(5) job readiness education, including English as a second language (ESL) or
functional work literacy classes as limited by the provisions of section 256J.531,
subdivision 2, general educational development (GED) course work, high school
completion, and adult basic education as limited by the provisions of section 256J.531,
subdivision 1;

(6) job skills training directly related to employment, including education and
training that can reasonably be expected to lead to employment, as limited by the
provisions of section 256J.53;

(7) providing child care services to a participant who is working in a community
service program;

(8) activities included in the employment plan that is developed under section
256J.521, subdivision 3; and

(9) preemployment activities including chemical and mental health assessments,
treatment, and services; learning disabilities services; child protective services; family
stabilization services; or other programs designed to enhance employability.

Sec. 23.

Minnesota Statutes 2006, section 256J.521, subdivision 1, is amended to read:

Subdivision 1.

Assessments.

(a) For purposes of MFIP employment services,
assessment is a continuing process of gathering information related to employability
for the purpose of identifying both participant's strengths and strategies for coping with
issues that interfere with employment. The job counselor must use information from the
assessment process to develop and update the employment plan under subdivision 2 or 3,
as appropriate, deleted text begin anddeleted text end to determine whether the participant qualifies for a family violence
waiver including an employment plan under subdivision 3new text begin , and to determine whether the
participant should be referred to the family stabilization services program under section
256J.575new text end .

(b) The scope of assessment must cover at least the following areas:

(1) basic information about the participant's ability to obtain and retain employment,
including: a review of the participant's education level; interests, skills, and abilities; prior
employment or work experience; transferable work skills; child care and transportation
needs;

(2) identification of personal and family circumstances that impact the participant's
ability to obtain and retain employment, including: any special needs of the children, the
level of English proficiency, family violence issues, and any involvement with social
services or the legal system;

(3) the results of a mental and chemical health screening tool designed by the
commissioner and results of the brief screening tool for special learning needs. Screening
tools for mental and chemical health and special learning needs must be approved by the
commissioner and may only be administered by job counselors or county staff trained in
using such screening tools. The commissioner shall work with county agencies to develop
protocols for referrals and follow-up actions after screens are administered to participants,
including guidance on how employment plans may be modified based upon outcomes
of certain screens. Participants must be told of the purpose of the screens and how the
information will be used to assist the participant in identifying and overcoming barriers to
employment. Screening for mental and chemical health and special learning needs must
be completed by participants who are unable to find suitable employment after six weeks
of job search under subdivision 2, paragraph (b), and participants who are determined to
have barriers to employment under subdivision 2, paragraph (d). Failure to complete the
screens will result in sanction under section 256J.46; and

(4) a comprehensive review of participation and progress for participants who have
received MFIP assistance and have not worked in unsubsidized employment during the
past 12 months. The purpose of the review is to determine the need for additional services
and supports, including placement in subsidized employment or unpaid work experience
under section 256J.49, subdivision 13new text begin , or referral to the family stabilization services
program under section 256J.575new text end .

(c) Information gathered during a caregiver's participation in the diversionary work
program under section 256J.95 must be incorporated into the assessment process.

(d) The job counselor may require the participant to complete a professional chemical
use assessment to be performed according to the rules adopted under section 254A.03,
subdivision 3, including provisions in the administrative rules which recognize the cultural
background of the participant, or a professional psychological assessment as a component
of the assessment process, when the job counselor has a reasonable belief, based on
objective evidence, that a participant's ability to obtain and retain suitable employment
is impaired by a medical condition. The job counselor may assist the participant with
arranging services, including child care assistance and transportation, necessary to meet
needs identified by the assessment. Data gathered as part of a professional assessment
must be classified and disclosed according to the provisions in section 13.46.

Sec. 24.

Minnesota Statutes 2006, section 256J.521, subdivision 2, is amended to read:

Subd. 2.

Employment plan; contents.

(a) Based on the assessment under
subdivision 1, the job counselor and the participant must develop an employment plan
that includes participation in activities and hours that meet the requirements of section
256J.55, subdivision 1. The purpose of the employment plan is to identify for each
participant the most direct path to unsubsidized employment and any subsequent steps that
support long-term economic stability. The employment plan should be developed using
the highest level of activity appropriate for the participant. Activities must be chosen from
clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of
preference for activities, priority must be given for activities related to a family violence
waiver when developing the employment plan. The employment plan must also list the
specific steps the participant will take to obtain employment, including steps necessary
for the participant to progress from one level of activity to another, and a timetable for
completion of each step. Levels of activity include:

(1) unsubsidized employment;

(2) job search;

(3) subsidized employment or unpaid work experience;

(4) unsubsidized employment and job readiness education or job skills training;

(5) unsubsidized employment or unpaid work experience and activities related to
a family violence waiver or preemployment needs; and

(6) activities related to a family violence waiver or preemployment needs.

(b) Participants who are determined to possess sufficient skills such that the
participant is likely to succeed in obtaining unsubsidized employment must job search at
least 30 hours per week for up to six weeks and accept any offer of suitable employment.
The remaining hours necessary to meet the requirements of section 256J.55, subdivision
1, may be met through participation in other work activities under section 256J.49,
subdivision 13. The participant's employment plan must specify, at a minimum: (1)
whether the job search is supervised or unsupervised; (2) support services that will
be provided; and (3) how frequently the participant must report to the job counselor.
Participants who are unable to find suitable employment after six weeks must meet
with the job counselor to determine whether other activities in paragraph (a) should be
incorporated into the employment plan. Job search activities which are continued after six
weeks must be structured and supervised.

(c) Beginning July 1, 2004, activities and hourly requirements in the employment
plan may be adjusted as necessary to accommodate the personal and family circumstances
of participants identified under section 256J.561, subdivision 2, paragraph (d). Participants
who no longer meet the provisions of section 256J.561, subdivision 2, paragraph (d),
must meet with the job counselor within ten days of the determination to revise the
employment plan.

(d) Participants who are determined to have barriers to obtaining or retaining
employment that will not be overcome during six weeks of job search under paragraph (b)
must work with the job counselor to develop an employment plan that addresses those
barriers by incorporating appropriate activities from paragraph (a), clauses (1) to (6).
The employment plan must include enough hours to meet the participation requirements
in section 256J.55, subdivision 1, unless a compelling reason to require fewer hours
is noted in the participant's file.

(e) The job counselor and the participant must sign the employment plan to indicate
agreement on the contents. Failure to develop or comply with activities in the plan, or
voluntarily quitting suitable employment without good cause, will result in the imposition
of a sanction under section 256J.46.

(f) Employment plans must be reviewed at least every three months to determine
whether activities and hourly requirements should be revised.new text begin The job counselor is
encouraged to allow participants who are participating in at least 20 hours of work
activities to also participate in employment and training activities in order to meet the
federal hourly participation rates.
new text end

Sec. 25.

Minnesota Statutes 2006, section 256J.521, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Employment plan; nonmaintenance of effort; single caregivers. new text end

new text begin (a)
When a single caregiver is moved to the nonmaintenance of effort state-funded program
under section 256J.021, paragraphs (a) and (b), the single caregiver shall develop or revise
the employment plan as specified in this subdivision with a job counselor or county. The
plan must address issues interfering with employment, including physical and mental
health, substance use, and social service issues of the caregiver and the caregiver's family.
Job search and employment must also be included in the plan to the extent possible.
new text end

new text begin (b) Counties must coordinate services by ensuring that all workers involved with
the family communicate on a regular basis, and that expectations for the family across
service areas lead to common goals.
new text end

new text begin (c) Activities and hourly requirements in the employment plan may be adjusted as
necessary to accommodate the personal and family circumstances of the participant.
Participants who no longer meet the criteria for the nonmaintenance of effort state-funded
program shall meet with the job counselor or county within ten days of the determination
to revise the employment plan.
new text end

Sec. 26.

Minnesota Statutes 2006, section 256J.53, subdivision 2, is amended to read:

Subd. 2.

Approval of postsecondary education or training.

(a) deleted text begin In order for a
postsecondary education or training program to be an approved activity in an employment
plan, the participant must be working in unsubsidized employment at least 20 hours per
week.
deleted text end

deleted text begin (b)deleted text end Participants seeking approval of a postsecondary education or training plan
must provide documentation that:

(1) the employment goal can only be met with the additional education or training;

(2) there are suitable employment opportunities that require the specific education or
training in the area in which the participant resides or is willing to reside;

(3) the education or training will result in significantly higher wages for the
participant than the participant could earn without the education or training;

(4) the participant can meet the requirements for admission into the program; and

(5) there is a reasonable expectation that the participant will complete the training
program based on such factors as the participant's MFIP assessment, previous education,
training, and work history; current motivation; and changes in previous circumstances.

deleted text begin (c) The hourly unsubsidized employment requirement does not apply for intensive
education or training programs lasting 12 weeks or less when full-time attendance is
required.
deleted text end

deleted text begin (d)deleted text end new text begin (b) new text end Participants with an approved employment plan in place on July 1, 2003,
which includes more than 12 months of postsecondary education or training shall be
allowed to complete that plan provided that hourly requirements in section 256J.55,
subdivision 1, and conditions specified in paragraph deleted text begin (b)deleted text end new text begin (a)new text end , and subdivisions 3 and 5 are
met. A participant whose case is subsequently closed for three months or less for reasons
other than noncompliance with program requirements and who returns to MFIP shall
be allowed to complete that plan provided that hourly requirements in section 256J.55,
subdivision 1, and conditions specified in paragraph deleted text begin (b)deleted text end new text begin (a)new text end and subdivisions 3 and 5 are
met.

Sec. 27.

Minnesota Statutes 2006, section 256J.531, is amended to read:

256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.

Subdivision 1.

Approval of adult basic education.

With the exception of classes
related to obtaining a general educational development credential (GED), a participant
must have reading or mathematics proficiency below a ninth grade level in order for adult
basic education classes to be an approved work activity. deleted text begin The employment plan must also
specify that the participant fulfill no more than one-half of the participation requirements
in section 256J.55, subdivision 1, through attending adult basic education or general
educational development classes.deleted text end

Subd. 2.

Approval of English as a second language.

In order for English as a
second language (ESL) classes to be an approved work activity in an employment plan, a
participant must be below a spoken language proficiency level of SPL6 or its equivalent,
as measured by a nationally recognized test. In approving ESL as a work activity, the job
counselor must give preference to enrollment in a functional work literacy program,
if one is available, over a regular ESL program. A participant may not be approved
for more than a combined total of 24 months of ESL classes while participating in the
diversionary work program and the employment and training services component of
MFIP. deleted text begin The employment plan must also specify that the participant fulfill no more than
one-half of the participation requirements in section 256J.55, subdivision 1, through
attending ESL classes. For participants enrolled in functional work literacy classes, no
more than two-thirds of the participation requirements in section 256J.55, subdivision 1,
may be met through attending functional work literacy classes.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2007.
new text end

Sec. 28.

Minnesota Statutes 2006, section 256J.55, subdivision 1, is amended to read:

Subdivision 1.

Participation requirements.

(a) All caregivers must participate
in employment services under sections 256J.515 to 256J.57 concurrent with receipt of
MFIP assistance.

(b) Until July 1, 2004, participants who meet the requirements of section 256J.56 are
exempt from participation requirements.

(c) Participants under paragraph (a) must develop and comply with an employment
plan under section 256J.521 or section 256J.54 in the case of a participant under the age of
20 who has not obtained a high school diploma or its equivalent.

(d) With the exception of participants under the age of 20 who must meet the
education requirements of section 256J.54, all participants must meet the hourly
participation requirements of TANF or the hourly requirements listed in clauses (1) to
(3), whichever is higher.

(1) In single-parent families with no children under six years of age, the job
counselor and the caregiver must develop an employment plan that includes 30 deleted text begin to 35deleted text end
hours per week of work activities.

(2) In single-parent families with a child under six years of age, the job counselor
and the caregiver must develop an employment plan that includes 20 deleted text begin to 35deleted text end hours per
week of work activities.

(3) In two-parent families, the job counselor and the caregivers must develop
employment plans which result in a combined total of at least 55 hours per week of work
activities.

(e) Failure to participate in employment services, including the requirement to
develop and comply with an employment plan, including hourly requirements, without
good cause under section 256J.57, shall result in the imposition of a sanction under section
256J.46.

Sec. 29.

new text begin [256J.575] FAMILY STABILIZATION SERVICES PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin (a) The family stabilization services program is
Minnesota's cash assistance program to serve families who are not making significant
progress within the Minnesota family investment program (MFIP) due to a variety of
barriers to employment.
new text end

new text begin (b) The goal of this program is to stabilize and improve the lives of families at risk
of long-term welfare dependency or family instability due to employment barriers such
as physical disability, mental disability, age, or providing care for a disabled household
member. This program provides services to promote and support families to achieve the
greatest possible degree of self-sufficiency.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin The terms used in this section have the meanings given them
in paragraphs (a) to (d).
new text end

new text begin (a) "Family stabilization services program" means the program established under
this section.
new text end

new text begin (b) "Case management" means the services provided by or through the county agency
to participating families, including assessment, information, referrals, and assistance in the
preparation and implementation of a family stabilization plan under subdivision 5.
new text end

new text begin (c) "Family stabilization plan" means a plan developed by a case manager and
the participant, which identifies the participant's most appropriate path to unsubsidized
employment, family stability, and barrier reduction, taking into account the family's
circumstances.
new text end

new text begin (d) "Family stabilization services" means programs, activities, and services in this
section that provide participants and their family members with assistance regarding,
but not limited to:
new text end

new text begin (1) obtaining and retaining unsubsidized employment;
new text end

new text begin (2) family stability;
new text end

new text begin (3) economic stability; and
new text end

new text begin (4) barrier reduction.
new text end

new text begin The goal of the program is to achieve the greatest degree of economic self-sufficiency
and family well-being possible for the family under the circumstances.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

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

new text begin (1) a participant identified under section 256J.561, subdivision 2, paragraph (d), who
has or is eligible for an employment plan developed under section 256J.521, subdivision
2, paragraph (c);
new text end

new text begin (2) a participant identified under section 256J.95, subdivision 12, paragraph (b), as
unlikely to benefit from the DWP;
new text end

new text begin (3) a participant who meets the requirements for or has been granted a hardship
extension under section 256J.425, subdivision 2 or 3;
new text end

new text begin (4) a participant who is applying for supplemental security income or Social Security
disability insurance; and
new text end

new text begin (5) a participant who is a noncitizen who has been in the state for six or fewer months.
new text end

new text begin (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.
new text end

new text begin Subd. 4. new text end

new text begin Universal participation. new text end

new text begin All caregivers must participate in family
stabilization services as defined in subdivision 2.
new text end

new text begin Subd. 5. new text end

new text begin Case management; family stabilization plans; coordinated services.
new text end

new text begin (a) The county agency shall provide family stabilization services to families through a
case management model. A case manager shall be assigned to each participating family
within 30 days after the family begins to receive financial assistance as a participant of
the family stabilization services program. The case manager, with the full involvement
of the family, shall recommend, and the county agency shall establish and modify as
necessary, a family stabilization plan for each participating family. If a participant is
already assigned to a county case manager or a county-contracted case manager in social
services or disability services, that case manager already assigned is the case manager for
purposes of this program.
new text end

new text begin (b) The family stabilization plan must include:
new text end

new text begin (1) each participant's plan for long-term self-sufficiency, including an employment
goal where applicable;
new text end

new text begin (2) an assessment of each participant's strengths and barriers, and any special
circumstances of the participant's family that impact, or are likely to impact, the
participant's progress towards the goals in the plan; and
new text end

new text begin (3) an identification of the services, supports, education, training, and
accommodations needed to reduce or overcome any barriers to enable the family to
achieve self-sufficiency and to fulfill each caregiver's personal and family responsibilities.
new text end

new text begin (c) The case manager and the participant shall meet within 30 days of the family's
referral to the case manager. The initial family stabilization plan must be completed within
30 days of the first meeting with the case manager. The case manager shall establish a
schedule for periodic review of the family stabilization plan that includes personal contact
with the participant at least once per month. In addition, the case manager shall review
and, if necessary, modify the plan under the following circumstances:
new text end

new text begin (1) there is a lack of satisfactory progress in achieving the goals of the plan;
new text end

new text begin (2) the participant has lost unsubsidized or subsidized employment;
new text end

new text begin (3) a family member has failed or is unable to comply with a family stabilization
plan requirement;
new text end

new text begin (4) services, supports, or other activities required by the plan are unavailable;
new text end

new text begin (5) changes to the plan are needed to promote the well-being of the children; or
new text end

new text begin (6) the participant and case manager determine that the plan is no longer appropriate
for any other reason.
new text end

new text begin Subd. 6. new text end

new text begin Cooperation with program requirements. new text end

new text begin (a) To be eligible, a participant
shall comply with paragraphs (b) to (e).
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (d) When the participant has increased participation in work-related activities
sufficient to meet the federal participation requirements of TANF, the county agency shall
refer the participant to the MFIP program and assign the participant to a job counselor.
The participant and the job counselor shall meet within 15 days of referral to the MFIP
program to develop an employment plan under section 256J.521. No reapplication is
necessary and financial assistance continues without interruption.
new text end

new text begin (e) 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, and 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.
new text end

new text begin Subd. 7. new text end

new text begin Sanctions. new text end

new text begin (a) 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 (e).
new text end

new text begin (b) Given the purpose of the family stabilization services program in this section and
the nature of the underlying family circumstances that act as barriers to both employment
and full compliance with program requirements, sanctions are appropriate only when it is
clear that there is both the ability to comply and willful noncompliance by the participant,
as confirmed by a behavioral health or medical professional.
new text end

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

new text begin (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);
new text end

new text begin (2) determine whether the participant qualifies for a good cause exemption 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;
new text end

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

new text begin (4) explain the consequences of continuing noncompliance;
new text end

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

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

new text begin 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.
new text end

new text begin (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).
new text end

new text begin (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.
new text end

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

Sec. 30.

new text begin [256J.621] WORK PARTICIPATION TRANSITIONAL ASSISTANCE
PAYMENT.
new text end

new text begin (a) Upon exiting the diversionary work program (DWP) or upon terminating MFIP
cash assistance with earnings, a participant who is employed and working 24 hours per
week may be eligible for transitional assistance of $100 per month to assist in meeting the
family's basic needs as the participant continues to move toward self-sufficiency.
new text end

new text begin (b) To be eligible for a transitional assistance payment, the participant shall not
receive MFIP cash assistance or diversionary work program assistance during the
month and shall be employed an average of at least 24 hours per week to be determined
prospectively. If a holiday falls on a day during a participant's normal work shift, that
holiday counts as a work shift for purposes of calculating hours. When determining a
monthly average, the week that contains the first of the month is counted in the month
in which the following Friday falls. Transitional assistance is available for a maximum
of 12 months from the date the participant exited the diversionary work program or
terminated MFIP cash assistance.
new text end

new text begin (c) The commissioner shall establish minimal policies and develop forms to verify
eligibility for transitional assistance. The commissioner is authorized to change or
modify the provisions of this section in order to comply with federal rules or regulations
promulgated as a result of federal legislation passed in February 2006.
new text end

new text begin (d) Expenditures on the transitional assistance program are maintenance of effort
state funds. Months in which a participant receives transitional assistance under this
section do not count toward the participant's MFIP 60-month time limit.
new text end

Sec. 31.

Minnesota Statutes 2006, section 256J.626, subdivision 1, is amended to read:

Subdivision 1.

Consolidated fund.

The consolidated fund is established to support
counties and tribes in meeting their duties under this chapter. Counties and tribes must use
funds from the consolidated fund to develop programs and services that are designed to
improve participant outcomes as measured in section 256J.751, subdivision 2. Counties
may use the funds for any allowable expenditures under subdivision 2new text begin , and to provide case
management services to participants of the family stabilization services programnew text end . Tribes
may use the funds for any allowable expenditures under subdivision 2, except those in
new text begin subdivision 2, paragraph (a), new text end clauses (1) and (6).

Sec. 32.

Minnesota Statutes 2006, section 256J.626, subdivision 2, is amended to read:

Subd. 2.

Allowable expenditures.

(a) The commissioner must restrict expenditures
under the consolidated fund to benefits and services allowed under title IV-A of the federal
Social Security Act. Allowable expenditures under the consolidated fund may include, but
are not limited to:

(1) short-term, nonrecurring shelter and utility needs that are excluded from the
definition of assistance under Code of Federal Regulations, title 45, section 260.31, for
families who meet the residency requirement in section 256J.12, subdivisions 1 and 1a.
Payments under this subdivision are not considered TANF cash assistance and are not
counted towards the 60-month time limit;

(2) transportation needed to obtain or retain employment or to participate in other
approved work activitiesnew text begin or activities under a family stabilization plannew text end ;

(3) direct and administrative costs of staff to deliver employment services for
MFIP deleted text begin ordeleted text end new text begin , new text end the diversionary work program,new text begin or the family stabilization services program;
new text end to administer financial assistancedeleted text begin ,deleted text end new text begin ; new text end and to provide specialized services intended to assist
hard-to-employ participants to transition to worknew text begin or transition from the family stabilization
services program to MFIPnew text end ;

(4) costs of education and training including functional work literacy and English as
a second language;

(5) cost of work supports including tools, clothing, boots, new text begin telephone service, new text end and
other work-related expenses;

(6) county administrative expenses as defined in Code of Federal Regulations, title
45, section 260(b);

(7) services to parenting and pregnant teens;

(8) supported work;

(9) wage subsidies;

(10) child care needed for MFIP deleted text begin ordeleted text end new text begin , the new text end diversionary work programnew text begin , or the family
stabilization services program new text end participants to participate in social services;

(11) child care to ensure that families leaving MFIP or diversionary work program
will continue to receive child care assistance from the time the family no longer qualifies
for transition year child care until an opening occurs under the basic sliding fee child
care program; deleted text begin and
deleted text end

(12) services to help noncustodial parents who live in Minnesota and have minor
children receiving MFIP or DWP assistance, but do not live in the same household as the
child, obtain or retain employmentnew text begin ; and
new text end

new text begin (13) services to help families participating in the family stabilization services
program achieve the greatest possible degree of self-sufficiencynew text end .

(b) Administrative costs that are not matched with county funds as provided in
subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation
under this section. The commissioner shall define administrative costs for purposes of
this subdivision.

(c) The commissioner may waive the cap on administrative costs for a county or tribe
that elects to provide an approved supported employment, unpaid work, or community
work experience program for a major segment of the county's or tribe's MFIP population.
The county or tribe must apply for the waiver on forms provided by the commissioner. In
no case shall total administrative costs exceed the TANF limits.

Sec. 33.

Minnesota Statutes 2006, section 256J.626, subdivision 3, is amended to read:

Subd. 3.

Eligibility for services.

Families with a minor child, a pregnant woman,
or a noncustodial parent of a minor child receiving assistance, with incomes below 200
percent of the federal poverty guideline for a family of the applicable size, are eligible
for services funded under the consolidated fund. Counties and tribes must give priority
to families currently receiving MFIP deleted text begin ordeleted text end new text begin , the new text end diversionary work program, new text begin or the family
stabilization services program, new text end and families at risk of receiving MFIP or diversionary
work program.

Sec. 34.

Minnesota Statutes 2006, section 256J.626, subdivision 4, is amended to read:

Subd. 4.

County and tribal biennial service agreements.

(a) Effective January 1,
2004, and each two-year period thereafter, each county and tribe must have in place an
approved biennial service agreement related to the services and programs in this chapter.
In counties with a city of the first class with a population over 300,000, the county must
consider a service agreement that includes a jointly developed plan for the delivery of
employment services with the city. Counties may collaborate to develop multicounty,
multitribal, or regional service agreements.

(b) The service agreements will be completed in a form prescribed by the
commissioner. The agreement must include:

(1) a statement of the needs of the service population and strengths and resources
in the community;

(2) numerical goals for participant outcomes measures to be accomplished during
the biennial period. The commissioner may identify outcomes from section 256J.751,
subdivision 2, as core outcomes for all counties and tribes;

(3) strategies the county or tribe will pursue to achieve the outcome targets.
Strategies must include specification of how funds under this section will be used and may
include community partnerships that will be established or strengthened; deleted text begin and
deleted text end

(4) new text begin strategies the county or tribe will pursue under the family stabilization services
program; and
new text end

new text begin (5) new text end other items prescribed by the commissioner in consultation with counties and
tribes.

(c) The commissioner shall provide each county and tribe with information needed
to complete an agreement, including: (1) information on MFIP cases in the county or
tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome
measures; and (4) promising program practices.

(d) The service agreement must be submitted to the commissioner by October 15,
2003, and October 15 of each second year thereafter. The county or tribe must allow
a period of not less than 30 days prior to the submission of the agreement to solicit
comments from the public on the contents of the agreement.

(e) The commissioner must, within 60 days of receiving each county or tribal service
agreement, inform the county or tribe if the service agreement is approved. If the service
agreement is not approved, the commissioner must inform the county or tribe of any
revisions needed prior to approval.

(f) The service agreement in this subdivision supersedes the plan requirements
of section 116L.88.

Sec. 35.

Minnesota Statutes 2006, section 256J.626, subdivision 5, is amended to read:

Subd. 5.

Innovation projects.

Beginning January 1, 2005, no more than $3,000,000
of the funds annually appropriated to the commissioner for use in the consolidated
fund shall be available to the commissioner for projects testing innovative approaches
to improving outcomes for MFIP participants, new text begin family stabilization services program
participants, new text end and persons at risk of receiving MFIP as detailed in subdivision 3new text begin , and
for providing incentives to counties and tribes that exceed performancenew text end . Projects shall
be targeted to geographic areas with poor outcomes as specified in section 256J.751,
subdivision 5, or to subgroups within the MFIP case load who are experiencing poor
outcomes.new text begin For purposes of an incentive, a county or tribe exceeds performance if the
county or tribe is above the top of the county's or tribe's annualized range of expected
performance on the three-year self-support index under section 256J.751, subdivision 2,
clause (7), and achieves a 50 percent TANF participation rate under section 256J.751,
subdivision 2, clause (7), as averaged across the four quarterly measurements for the most
recent year for which the measurements are available.new text end

Sec. 36.

Minnesota Statutes 2006, section 256J.626, subdivision 6, is amended to read:

Subd. 6.

Base allocation to counties and tribes; definitions.

(a) For purposes of
this section, the following terms have the meanings given.

(1) "2002 historic spending base" means the commissioner's determination of
the sum of the reimbursement related to fiscal year 2002 of county or tribal agency
expenditures for the base programs listed in clause (6), items (i) through (iv), and earnings
related to calendar year 2002 in the base program listed in clause (6), item (v), and the
amount of spending in fiscal year 2002 in the base program listed in clause (6), item (vi),
issued to or on behalf of persons residing in the county or tribal service delivery area.

(2) "Adjusted caseload factor" means a factor weighted:

(i) 47 percent on the MFIP cases in each county at four points in time in the most
recent 12-month period for which data is available multiplied by the county's caseload
difficulty factor; and

(ii) 53 percent on the count of adults on MFIP in each county and tribe at four points
in time in the most recent 12-month period for which data is available multiplied by the
county or tribe's caseload difficulty factor.

(3) "Caseload difficulty factor" means a factor determined by the commissioner for
each county and tribe based upon the self-support index described in section 256J.751,
subdivision 2, clause (7).

(4) "Initial allocation" means the amount potentially available to each county or tribe
based on the formula in paragraphs (b) through (h).

(5) "Final allocation" means the amount available to each county or tribe based on
the formula in paragraphs (b) through (h)deleted text begin , after adjustment by subdivision 7deleted text end .

(6) "Base programs" means the:

(i) MFIP employment and training services under Minnesota Statutes 2002, section
256J.62, subdivision 1, in effect June 30, 2002;

(ii) bilingual employment and training services to refugees under Minnesota Statutes
2002, section 256J.62, subdivision 6, in effect June 30, 2002;

(iii) work literacy language programs under Minnesota Statutes 2002, section
256J.62, subdivision 7, in effect June 30, 2002;

(iv) supported work program authorized in Laws 2001, First Special Session chapter
9, article 17, section 2, in effect June 30, 2002;

(v) administrative aid program under section 256J.76 in effect December 31, 2002;
and

(vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48,
in effect June 30, 2002.

(b) The commissioner shall:

(1) beginning July 1, 2003, determine the initial allocation of funds available under
this section according to clause (2);

(2) allocate all of the funds available for the period beginning July 1, 2003, and
ending December 31, 2004, to each county or tribe in proportion to the county's or tribe's
share of the statewide 2002 historic spending base;

(3) determine for calendar year 2005 the initial allocation of funds to be made
available under this section in proportion to the county or tribe's initial allocation for the
period of July 1, 2003, to December 31, 2004;

(4) determine for calendar year 2006 the initial allocation of funds to be made
available under this section based 90 percent on the proportion of the county or tribe's
share of the statewide 2002 historic spending base and ten percent on the proportion of
the county or tribe's share of the adjusted caseload factor;

(5) determine for calendar year 2007 the initial allocation of funds to be made
available under this section based 70 percent on the proportion of the county or tribe's
share of the statewide 2002 historic spending base and 30 percent on the proportion of the
county or tribe's share of the adjusted caseload factor; and

(6) determine for calendar year 2008 and subsequent years the initial allocation of
funds to be made available under this section based 50 percent on the proportion of the
county or tribe's share of the statewide 2002 historic spending base and 50 percent on the
proportion of the county or tribe's share of the adjusted caseload factor.

(c) With the commencement of a new or expanded tribal TANF program or an
agreement under section 256.01, subdivision 2, paragraph (g), in which some or all of
the responsibilities of particular counties under this section are transferred to a tribe,
the commissioner shall:

(1) in the case where all responsibilities under this section are transferred to a tribal
program, determine the percentage of the county's current caseload that is transferring to a
tribal program and adjust the affected county's allocation accordingly; and

(2) in the case where a portion of the responsibilities under this section are
transferred to a tribal program, the commissioner shall consult with the affected county or
counties to determine an appropriate adjustment to the allocation.

deleted text begin (d) Effective January 1, 2005, counties and tribes will have their final allocations
adjusted based on the performance provisions of subdivision 7.
deleted text end

Sec. 37.

new text begin [256J.678] INJURY PROTECTION FOR COMMUNITY WORK
EXPERIENCE PARTICIPANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The Department of Administration, in consultation with
the Department of Human Services, shall contract with an approved insurance carrier to
provide coverage for injuries or death resulting from a person's participation in paid and
unpaid community work experience programs authorized by the commissioner for persons
applying for or receiving DWP, MFIP, or food stamps, and participating in the Minnesota
parent's fair share program in a county with an approved community investment program
for obligors.
new text end

new text begin Subd. 2. new text end

new text begin Claims. new text end

new text begin Claims that are subject to this section must be reported to the
insurance carrier in a format approved by the carrier by the department of the state, county
agency, or tribal program responsible for supervising the work.
new text end

new text begin Subd. 3. new text end

new text begin Exclusive procedure. new text end

new text begin The procedure established by this section
is exclusive of all other legal, equitable, and statutory remedies against the state,
employees of the state, or the state's political subdivisions. The claimant is not entitled
to seek damages from any other state, county, tribal, or reservation insurance policy or
self-insurance program.
new text end

new text begin Subd. 4. new text end

new text begin Requirements for worksites. new text end

new text begin The department of the state, county agency,
or tribal program responsible for supervising the work shall ensure that no participant is
assigned to a worksite which is in violation of federal Occupational Safety and Health
Administration and state Department of Labor and Industry safety standards or is under
investigation to determine if those violations have occurred. All participants must be
given the same safety information and training given to a paid employee performing
similar work at that worksite.
new text end

Sec. 38.

Minnesota Statutes 2006, section 256J.751, subdivision 2, is amended to read:

Subd. 2.

Quarterly comparison report.

The commissioner shall report quarterly to
all counties on each county's performance on the following measures:

(1) percent of MFIP caseload working in paid employment;

(2) percent of MFIP caseload receiving only the food portion of assistance;

(3) number of MFIP cases that have left assistance;

(4) median placement wage rate;

(5) caseload by months of TANF assistance;

(6) percent of MFIP and diversionary work program (DWP) cases off cash assistance
or working 30 or more hours per week at one-year, two-year, and three-year follow-up
points from a baseline quarter. This measure is called the self-support index. The
commissioner shall report quarterly an expected range of performance for each county,
county grouping, and tribe on the self-support index. The expected range shall be derived
by a statistical methodology developed by the commissioner in consultation with the
counties and tribes. The statistical methodology shall control differences across counties
in economic conditions and demographics of the MFIP and DWP case load; and

(7) the deleted text begin MFIPdeleted text end new text begin TANFnew text end work participation rate, defined as the participation requirements
specified deleted text begin in title 1 of Public Law 104-193 applied to all MFIP cases except child only
casesdeleted text end new text begin under Public Law 109-171, the Deficit Reduction Act of 2005new text end .

Sec. 39.

Minnesota Statutes 2006, section 256J.751, subdivision 5, is amended to read:

Subd. 5.

Failure to meet federal performance standards.

(a) If sanctions occur
for failure to meet the performance standards specified in title 1 of Public Law 104-193
of the Personal Responsibility and Work Opportunity Act of 1996, new text begin and under Public
Law 109-171, the Deficit Reduction Act of 2005, new text end the state shall pay 88 percent of the
sanction. The remaining 12 percent of the sanction will be paid by the counties. The
county portion of the sanction will be distributed across all counties in proportion to each
county's percentage of the MFIP average monthly caseload during the period for which
the sanction was applied.

(b) If a county fails to meet the performance standards specified in title 1 of Public
Law 104-193 of the Personal Responsibility and Work Opportunity Act of 1996new text begin , and
Public Law 109-171, the Deficit Reduction Act of 2005,new text end for any year, the commissioner
shall work with counties to organize a joint state-county technical assistance team to work
with the county. The commissioner shall coordinate any technical assistance with other
departments and agencies including the Departments of Employment and Economic
Development and Education as necessary to achieve the purpose of this paragraph.

(c) For state performance measures, a low-performing county is one that:

(1) performs below the bottom of their expected range for the measure in subdivision
2, clause deleted text begin (7)deleted text end new text begin (6)new text end , in an annualized measurement reported in October of each year; or

(2) performs below 40 percent for the measure in subdivision 2, clause deleted text begin (8)deleted text end new text begin (7)new text end , as
averaged across the four quarterly measurements for the year, or the ten counties with the
lowest rates if more than ten are below 40 percent.

(d) Low-performing counties under paragraph (c) must engage in corrective action
planning as defined by the commissioner. The commissioner may coordinate technical
assistance as specified in paragraph (b) for low-performing counties under paragraph (c).

Sec. 40.

Minnesota Statutes 2006, section 256J.77, is amended to read:

256J.77 deleted text begin AGINGdeleted text end new text begin EXPIRATIONnew text end OF CASH BENEFITS.

Cash benefits under chapters 256D, 256J, and 256Knew text begin , except food stamp benefits
under chapter 256D, new text end by warrants or electronic benefit transfer that have not been accessed
within 90 days of issuance shall be canceled. Cash benefits may be replaced after they are
canceled, for up to one year after the date of issuance, if failure to do so would place the
client or family at risk. For purposes of this section, "accessed" means cashing a warrant
or making at least one withdrawal from benefits deposited in an electronic benefit account.

Sec. 41.

Minnesota Statutes 2006, section 256J.95, subdivision 3, is amended to read:

Subd. 3.

Eligibility for diversionary work program.

(a) Except for the categories
of family units listed below, all family units who apply for cash benefits and who
meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must
participate in the diversionary work program. Family units that are not eligible for the
diversionary work program include:

(1) child only cases;

(2) a single-parent family unit that includes a child under 12 weeks of age. A parent
is eligible for this exception once in a parent's lifetime and is not eligible if the parent
has already used the previously allowed child under age one exemption from MFIP
employment services;

(3) a minor parent without a high school diploma or its equivalent;

(4) an 18- or 19-year-old caregiver without a high school diploma or its equivalent
who chooses to have an employment plan with an education option;

(5) a caregiver age 60 or over;

(6) family units with a caregiver who received DWP benefits in the 12 months prior
to the month the family applied for DWP, except as provided in paragraph (c);

(7) family units with a caregiver who received MFIP within the 12 months prior to
the month the family unit applied for DWP;

(8) a family unit with a caregiver who received 60 or more months of TANF
assistance; and

(9) a family unit with a caregiver who is disqualified from DWP or MFIP due to
fraud.

(b) A two-parent family must participate in DWP unless both caregivers meet the
criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit
includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8), or (9).

(c) Once DWP eligibility is determined, the four months run consecutively. If a
participant leaves the program for any reason and reapplies during the four-month period,
the county must redetermine eligibility for DWP.

new text begin (d) Newly arrived refugees and asylees as defined in Code of Federal Regulations,
title 45, chapter IV, section 400.13, who (1) have been assigned to a local refugee
resettlement agency, (2) have a case manager, or (3) are enrolled in the federal matching
grant program under United States Code, title 8, chapter 12, section 1522, are exempt from
participating in the diversionary work program and may enroll directly into the family
stabilization services program. Refugees must have the option of being assigned to an
agency that has employees who are familiar with their culture, speak their language, and
have more than one year of experience in assisting refugees in finding employment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 42.

Minnesota Statutes 2006, section 256J.95, subdivision 13, is amended to read:

Subd. 13.

Immediate referral to employment services.

Within one working day of
determination that the applicant is eligible for the diversionary work program, but before
benefits are issued to or on behalf of the family unit, the county shall refer all caregivers to
employment services. The referral to the DWP employment services must be in writing
and must contain the following information:

(1) notification that, as part of the application process, applicants are required to
develop an employment plan or the DWP application will be denied;

(2) the employment services provider name and phone number;

deleted text begin (3) the date, time, and location of the scheduled employment services interview;
deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end the immediate availability of supportive services, including, but not limited
to, child care, transportation, and other work-related aid; and

deleted text begin (5)deleted text end new text begin (4)new text end the rights, responsibilities, and obligations of participants in the program,
including, but not limited to, the grounds for good cause, the consequences of refusing or
failing to participate fully with program requirements, and the appeal process.

Sec. 43. new text begin MINNESOTA FOOD SUPPORT PROGRAM SIMPLIFIED
APPLICATION.
new text end

new text begin The Department of Human Services shall create a simplified application for the
Minnesota food support program for persons over the age of 60 and persons with
disabilities. The application must be no longer than three pages in length.
new text end

Sec. 44. new text begin SUPPORTED WORK.
new text end

new text begin Funds appropriated to the commissioner under section 45, subdivision 4, must be
allocated to counties based on the criteria under this section. Supported work under this
section must be modeled after the mental health supported work model, which provides
an intensive continuum of employment assistance, including outreach and recruitment,
program orientation and intake, testing and assessment, job development and marketing,
preworksite training, supported worksite experience, job coaching, and postplacement
follow-up in addition to extensive case management and referral services.
new text end

new text begin A county is eligible to receive an allocation under section 45, subdivision 4, if:
new text end

new text begin (1) the county is not meeting the federal work participation rate;
new text end

new text begin (2) the county has participants who are required to perform work activities under
Minnesota Statutes, chapter 256J, but are not meeting hourly work requirements; and
new text end

new text begin (3) the county has assessed participants who have completed six weeks of job search
or are required to perform work activities and are not meeting the hourly requirements,
and the county has determined that the participant would benefit from working in a
supported work environment.
new text end

Sec. 45. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Work study. new text end

new text begin $1,500,000 is appropriated from the TANF reserve
account to the Minnesota Office of Higher Education for the biennium beginning July 1,
2007, for work study grants under Minnesota Statutes, section 136A.233, specifically for
low-income individuals who receive assistance under Minnesota Statutes, chapter 256J.
new text end

new text begin Subd. 2. new text end

new text begin Car loans and car repairs. new text end

new text begin $3,000,000 is appropriated from the TANF
reserve account to the commissioner of human services for the biennium beginning July
1, 2007, for programs that provide car loans and car repairs to individuals who receive
assistance under Minnesota Statutes, chapter 256J.
new text end

new text begin Subd. 3. new text end

new text begin Integrated service projects. new text end

new text begin $3,000,000 is appropriated from the TANF
reserve account to the commissioner of human services for the biennium beginning July 1,
2007, to fund the integrated services project for MFIP families.
new text end

new text begin Subd. 4. new text end

new text begin Supported work. new text end

new text begin $....... is appropriated from the TANF reserve account
to the commissioner of human services for the biennium beginning July 1, 2007, for
supported work for MFIP participants. The funds appropriated under this section are
specifically for counties that are not meeting the work participation rates and must be
allocated according to section 1.
new text end

Sec. 46. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 256B.0631; 256J.24, subdivision 6; 256J.29;
256J.37, subdivisions 3a and 3b; 256J.626, subdivisions 7 and 9; and 256J.68, new text end new text begin are repealed.
new text end

HF 605

Bill Text Versions

Current Version - 1st Engrossment

ARTICLE 1

PROGRAM INTEGRITY

Section 1.

Subd. 4.

Duties as state agency.

Sec. 2.

Subd. 7.

Cooperation required.

Sec. 3.

Subdivision 1.

Qualifying overpayment.

Sec. 4.

Subdivision 1.

Declaration.

ARTICLE 2

CHILDREN AND ECONOMIC ASSISTANCE

Section 1.

new text begin Subd. 13a. new text end

new text begin Family stabilization services program. new text end

Sec. 2.

Subdivision 1.

Eligible participants.

Sec. 3.

Subdivision 1.

General eligibility requirements for all applicants for child care assistance.

Sec. 4.

new text begin Subd. 11. new text end

new text begin Payment of other child care expenses. new text end

Sec. 5.

Subd. 2.

Parent fee.

Sec. 6.

new text begin Subd. 3. new text end

new text begin Co-payment fee for families with annual incomes that exceed the federal poverty level. new text end

Sec. 7.

new text begin [256D.0516] EXPIRATION OF FOOD SUPPORT BENEFITS AND REPORTING REQUIREMENTS. new text end

new text begin Subdivision 1. new text end

new text begin Expiration of food support benefits. new text end

new text begin Subd. 2. new text end

new text begin Food support reporting requirements. new text end

Sec. 8.

new text begin Subd. 6. new text end

new text begin Legislative approval to move programs or activities. new text end

Sec. 9.

Subdivision 1.

Commissioner's authority to administer block grant funds.

Sec. 10.

Subd. 4.

Authority to transfer.

Sec. 11.

256J.021 deleted text begin SEPARATEdeleted text end STATE deleted text begin PROGRAM FOR USE OF STATE MONEYdeleted text end new text begin PROGRAMSnew text end .

Sec. 12.

Subd. 65.

Participant.

Sec. 13.

Subd. 3.

Other property limitations.

Sec. 14.

Subd. 2.

Income exclusions.

Sec. 15.

Subd. 5.

MFIP transitional standard.

Sec. 16.

Subd. 10.

MFIP exit level.

Sec. 17.

Subd. 5.

deleted text begin Monthlydeleted text end MFIP household reports.

Sec. 18.

new text begin Subd. 1a. new text end

new text begin Prohibited purchases. new text end

Sec. 19.

Subdivision 1.

Time limit.

new text begin EFFECTIVE DATE. new text end

Sec. 20.

General eligibility requirements for all applicants for child
care assistance.

new text begin Co-payment fee for families with annual incomes that exceed the
federal poverty level. new text end

new text begin [256D.0516] EXPIRATION OF FOOD SUPPORT BENEFITS AND
REPORTING REQUIREMENTS.
new text end

256J.021 deleted text begin SEPARATEdeleted text end STATE deleted text begin PROGRAM FOR USE OF STATE MONEYdeleted text end new text begin
PROGRAMSnew text end .

new text begin [256J.575] FAMILY STABILIZATION SERVICES PROGRAM.
new text end

new text begin Case management; family stabilization plans; coordinated services.
new text end

new text begin [256J.621] WORK PARTICIPATION TRANSITIONAL ASSISTANCE
PAYMENT.
new text end

new text begin [256J.678] INJURY PROTECTION FOR COMMUNITY WORK
EXPERIENCE PARTICIPANTS.
new text end