1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 03/04/1999 | |
1st Engrossment | Posted on 03/29/1999 |
1.1 A bill for an act 1.2 relating to human services; changing provisions in the 1.3 Minnesota family investment program; defining MFIP 1.4 standard of need; indexing MFIP earned income 1.5 disregard; enhancing employment services; proposing a 1.6 performance management system for MFIP; continuing 1.7 Minnesota food assistance program and the food portion 1.8 of MFIP for legal noncitizens; changing food stamp 1.9 employment and training programs; proposing a TANF 1.10 administrative cap to counties; appropriating money; 1.11 amending Minnesota Statutes 1998, sections 256D.051, 1.12 subdivision 2a, and by adding a subdivision; 256D.053, 1.13 subdivision 1; 256D.06, subdivision 5; 256J.08, 1.14 subdivisions 11, 24, 65, 82, 83, 86a, and by adding 1.15 subdivisions; 256J.11, subdivisions 2 and 3; 256J.12, 1.16 subdivisions 1a and 2; 256J.14; 256J.20, subdivision 1.17 3; 256J.21, subdivisions 2, 3, and 4; 256J.24, 1.18 subdivisions 2, 3, 7, 8, 9, and by adding a 1.19 subdivision; 256J.26, subdivision 1; 256J.30, 1.20 subdivisions 8 and 9; 256J.31, subdivisions 5 and 12; 1.21 256J.32, subdivisions 4 and 6; 256J.33; 256J.34, 1.22 subdivisions 1, 3, and 4; 256J.35; 256J.36; 256J.37, 1.23 subdivisions 1, 1a, 2, 9, and 10; 256J.38, subdivision 1.24 4; 256J.42, subdivisions 1 and 5; 256J.43; 256J.45, 1.25 subdivision 1; 256J.46, subdivisions 1, 2, and 2a; 1.26 256J.47, subdivision 4; 256J.48, subdivisions 2 and 3; 1.27 256J.50, subdivision 1; 256J.515; 256J.52, 1.28 subdivisions 1, 3, 4, 5, and by adding a subdivision; 1.29 256J.54, subdivision 2; 256J.55, subdivision 4; 1.30 256J.56; 256J.62, subdivisions 1, 6, 7, 8, 9, and by 1.31 adding a subdivision; 256J.67, subdivision 4; 256J.74, 1.32 subdivision 2; and 256J.76, subdivisions 1, 2, and 4; 1.33 proposing coding for new law in Minnesota Statutes, 1.34 chapter 256J; repealing Minnesota Statutes 1998, 1.35 sections 256D.051, subdivisions 6 and 19; 256D.053, 1.36 subdivision 4; 256J.03; 256J.62, subdivisions 2, 3, 1.37 and 5; and Laws 1997, chapter 85, article 1, section 1.38 63. 1.39 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.40 Section 1. Minnesota Statutes 1998, section 256D.051, 1.41 subdivision 2a, is amended to read: 1.42 Subd. 2a. [DUTIES OF COMMISSIONER.] In addition to any 2.1 other duties imposed by law, the commissioner shall: 2.2 (1) based on this section and section 256D.052 and Code of 2.3 Federal Regulations, title 7, section 273.7, supervise the 2.4 administration of food stamp employment and training services to 2.5 county agencies; 2.6 (2) disburse money appropriated for food stamp employment 2.7 and training services to county agencies based upon the county's 2.8 costs as specified in section256D.06256D.051, subdivision 6c; 2.9 (3) accept and supervise the disbursement of any funds that 2.10 may be provided by the federal government or from other sources 2.11 for use in this state for food stamp employment and training 2.12 services; 2.13 (4) cooperate with other agencies including any agency of 2.14 the United States or of another state in all matters concerning 2.15 the powers and duties of the commissioner under this section and 2.16 section 256D.052; and 2.17 (5) in cooperation with the commissioner of economic 2.18 security, ensure that each component of an employment and 2.19 training program carried out under this section is delivered 2.20 through a statewide workforce development system, unless the 2.21 component is not available locally through such a system. 2.22 Sec. 2. Minnesota Statutes 1998, section 256D.051, is 2.23 amended by adding a subdivision to read: 2.24 Subd. 6c. [PROGRAM FUNDING.] Within the limits of 2.25 available resources, the commissioner shall reimburse the actual 2.26 costs of county agencies and their employment and training 2.27 service providers for the provision of food stamp employment and 2.28 training services, including participant support services, 2.29 direct program services, and program administrative activities. 2.30 No more than 15 percent of program funds may be used for 2.31 administrative activities. The county agency may expend county 2.32 funds in excess of the limits of this subdivision without state 2.33 reimbursement. 2.34 Program funds shall be allocated based on the county's 2.35 average number of food stamp cases as compared to the statewide 2.36 total number of such cases. The average number of cases shall 3.1 be based on counts of cases as of March 31, June 30, September 3.2 30, and December 31 of the previous calendar year. The 3.3 commissioner may reallocate unexpended money appropriated under 3.4 this section to those county agencies that demonstrate a need 3.5 for additional funds. 3.6 Sec. 3. Minnesota Statutes 1998, section 256D.053, 3.7 subdivision 1, is amended to read: 3.8 Subdivision 1. [PROGRAM ESTABLISHED.]For the period of3.9July 1, 1998, to June 30, 1999,The Minnesota food assistance 3.10 program is established to provide food assistance to legal 3.11 noncitizens residing in this state who are ineligible to 3.12 participate in the federal Food Stamp Program solely due to the 3.13 provisions of section 402 or 403 of Public Law Number 104-193, 3.14 as authorized by Title VII of the 1997 Emergency Supplemental 3.15 Appropriations Act, Public Law Number 105-18, and as amended by 3.16 Public Law Number 105-185. 3.17 Sec. 4. Minnesota Statutes 1998, section 256D.06, 3.18 subdivision 5, is amended to read: 3.19 Subd. 5. Any applicant, otherwise eligible for general 3.20 assistance and possibly eligible for maintenance benefits from 3.21 any other source shall (a) make application for those benefits 3.22 within 30 days of the general assistance application; and (b) 3.23 execute an interim assistance authorization agreement on a form 3.24 as directed by the commissioner. The commissioner shall review 3.25 a denial of an application for other maintenance benefits and 3.26 may require a recipient of general assistance to file an appeal 3.27 of the denial if appropriate. If found eligible for benefits 3.28 from other sources, and a payment received from another source 3.29 relates to the period during which general assistance was also 3.30 being received, the recipient shall be required to reimburse the 3.31 county agency for the interim assistance paid. Reimbursement 3.32 shall not exceed the amount of general assistance paid during 3.33 the time period to which the other maintenance benefits apply 3.34 and shall not exceed the state standard applicable to that time 3.35 period. The commissioner shall adopt rules authorizing county 3.36 agencies or other client representatives to retain from the 4.1 amount recovered under an interim assistance agreement 25 4.2 percent plus actual reasonable fees, costs, and disbursements of 4.3 appeals and litigation, of providing special assistance to the 4.4 recipient in processing the recipient's claim for maintenance 4.5 benefits from another source. The money retained under this 4.6 section shall be from the state share of the recovery. The 4.7 commissioner or the county agency may contract with qualified 4.8 persons to provide the special assistance. The rules adopted by 4.9 the commissioner shall include the methods by which county 4.10 agencies shall identify, refer, and assist recipients who may be 4.11 eligible for benefits under federal programs for the disabled. 4.12 This subdivision does not require repayment of per diem payments 4.13 made to shelters for battered women pursuant to section 256D.05, 4.14 subdivision 3. 4.15 Sec. 5. Minnesota Statutes 1998, section 256J.08, 4.16 subdivision 11, is amended to read: 4.17 Subd. 11. [CAREGIVER.] "Caregiver" means a minor child's 4.18 natural or adoptive parent or parents and stepparent who live in 4.19 the home with the minor child. For purposes of determining 4.20 eligibility for this program, caregiver also means any of the 4.21 following individuals, if adults, who live with and provide care 4.22 and support to a minor child when the minor child's natural or 4.23 adoptive parent or parents or stepparents do not reside in the 4.24 same home: legal custodian or guardian, grandfather, 4.25 grandmother, brother, sister, half-brother, half-sister, 4.26 stepbrother, stepsister, uncle, aunt, first cousin or first 4.27 cousin once removed, nephew, niece, person of preceding 4.28 generation as denoted by prefixes of "great," "great-great," or 4.29 "great-great-great," or a spouse of any person named in the 4.30 above groups even after the marriage ends by death or divorce. 4.31 Sec. 6. Minnesota Statutes 1998, section 256J.08, 4.32 subdivision 24, is amended to read: 4.33 Subd. 24. [DISREGARD.] "Disregard" means earned income 4.34 that is not counted when determining initial eligibility or 4.35 ongoing eligibility and calculating the amount of the assistance 4.36 payment for participants. The commissioner shall determine the 5.1 amount of the disregard according to section 256J.24, 5.2 subdivision 10. 5.3 Sec. 7. Minnesota Statutes 1998, section 256J.08, is 5.4 amended by adding a subdivision to read: 5.5 Subd. 28a. [ENCUMBRANCE.] "Encumbrance" means a legal 5.6 claim against real or personal property that is payable upon the 5.7 sale of that property. 5.8 Sec. 8. Minnesota Statutes 1998, section 256J.08, is 5.9 amended by adding a subdivision to read: 5.10 Subd. 55a. [MFIP STANDARD OF NEED.] "MFIP standard of need" 5.11 means the appropriate standard used to determine MFIP benefit 5.12 payments for the MFIP unit and applies to: 5.13 (1) the transitional standard, sections 256J.08, 5.14 subdivision 85, and 256J.24, subdivision 5; 5.15 (2) the shared household standard, section 256J.24, 5.16 subdivision 9; and 5.17 (3) the interstate transition standard, section 256J.43. 5.18 Sec. 9. Minnesota Statutes 1998, section 256J.08, 5.19 subdivision 65, is amended to read: 5.20 Subd. 65. [PARTICIPANT.] "Participant" means a person who 5.21 is currently receiving cash assistanceandor the food portion 5.22 available throughMFIP-SMFIP as funded by TANF and the food 5.23 stamp program. A person who fails to withdraw or access 5.24 electronically any portion of the person's cash and food 5.25 assistance payment by the end of the payment month, who makes a 5.26 written request for closure before the first of a payment month 5.27 and repays cash and food assistance electronically issued for 5.28 that payment month within that payment month, or who returns any 5.29 uncashed assistance check and food coupons and withdraws from 5.30 the program is not a participant. A person who withdraws a cash 5.31 or food assistance payment by electronic transfer or receives 5.32 and cashesa cashan MFIP assistance check or food coupons and 5.33 is subsequently determined to be ineligible for assistance for 5.34 that period of time is a participant, regardless whether that 5.35 assistance is repaid. The term "participant" includes the 5.36 caregiver relative and the minor child whose needs are included 6.1 in the assistance payment. A person in an assistance unit who 6.2 does not receive a cash and food assistance payment because the 6.3 person has been suspended fromMFIP-S or because the person's6.4need falls below the $10 minimum payment levelMFIP is a 6.5 participant. 6.6 Sec. 10. Minnesota Statutes 1998, section 256J.08, 6.7 subdivision 82, is amended to read: 6.8 Subd. 82. [SANCTION.] "Sanction" means the reduction of a 6.9 family's assistance payment by a specified percentage of 6.10 theapplicable transitionalMFIP standard of need because: a 6.11 nonexempt participant fails to comply with the requirements of 6.12 sections 256J.52 to 256J.55; a parental caregiver fails without 6.13 good cause to cooperate with the child support enforcement 6.14 requirements; or a participant fails to comply with the 6.15 insurance, tort liability, or other requirements of this chapter. 6.16 Sec. 11. Minnesota Statutes 1998, section 256J.08, 6.17 subdivision 83, is amended to read: 6.18 Subd. 83. [SIGNIFICANT CHANGE.] "Significant change" means 6.19 a decline in gross income of36 percentthe amount of the 6.20 disregard as defined in subdivision 24 or more from the income 6.21 used to determine the grant for the current month. 6.22 Sec. 12. Minnesota Statutes 1998, section 256J.08, 6.23 subdivision 86a, is amended to read: 6.24 Subd. 86a. [UNRELATED MEMBER.] "Unrelated member" means an 6.25 individual in the household who does not meet the definition of 6.26 an eligible caregiver, but does not include an individual who6.27provides child care to a child in the assistance unit. 6.28 Sec. 13. Minnesota Statutes 1998, section 256J.11, 6.29 subdivision 2, is amended to read: 6.30 Subd. 2. [NONCITIZENS; FOOD PORTION.](a) For the period6.31September 1, 1997, to October 31, 1997, noncitizens who do not6.32meet one of the exemptions in section 412 of the Personal6.33Responsibility and Work Opportunity Reconciliation Act of 1996,6.34but were residing in this state as of July 1, 1997, are eligible6.35for the 6/10 of the average value of food stamps for the same6.36family size and composition until MFIP-S is operative in the7.1noncitizen's county of financial responsibility and thereafter,7.2the 6/10 of the food portion of MFIP-S. However, federal food7.3stamp dollars cannot be used to fund the food portion of MFIP-S7.4benefits for an individual under this subdivision.7.5(b) For the period November 1, 1997, to June 30, 1999,7.6noncitizens who do not meet one of the exemptions in section 4127.7of the Personal Responsibility and Work Opportunity7.8Reconciliation Act of 1996 , and are receiving cash assistance7.9under the AFDC, family general assistance, MFIP or MFIP-S7.10programs are eligible for the average value of food stamps for7.11the same family size and composition until MFIP-S is operative7.12in the noncitizen's county of financial responsibility and7.13thereafter, the food portion of MFIP-S. However, federal food7.14stamp dollars cannot be used to fund the food portion of MFIP-S7.15benefits for an individual under this subdivisionState dollars 7.16 shall fund the food portion of a noncitizen's MFIP benefits when 7.17 federal food stamp dollars cannot be used to fund those 7.18 benefits. The assistance provided under this subdivision, which 7.19 is designated as a supplement to replace lost benefits under the 7.20 federal food stamp program, must be disregarded as income in all 7.21 programs that do not count food stamps as income where the 7.22 commissioner has the authority to make the income disregard 7.23 determination for the program. 7.24(c) The commissioner shall submit a state plan to the7.25secretary of agriculture to allow the commissioner to purchase7.26federal Food Stamp Program benefits in an amount equal to the7.27MFIP-S food portion for each legal noncitizen receiving MFIP-S7.28assistance who is ineligible to participate in the federal Food7.29Stamp Program solely due to the provisions of section 402 or 4037.30of Public Law Number 104-193, as authorized by Title VII of the7.311997 Emergency Supplemental Appropriations Act, Public Law7.32Number 105-18. The commissioner shall enter into a contract as7.33necessary with the secretary to use the existing federal Food7.34Stamp Program benefits delivery system for the purposes of7.35administering the food portion of MFIP-S under this subdivision.7.36 Sec. 14. Minnesota Statutes 1998, section 256J.11, 8.1 subdivision 3, is amended to read: 8.2 Subd. 3. [BENEFITS FUNDED WITH STATE MONEY.] Legal adult 8.3 noncitizens who have resided in the country for four years or 8.4 more as a lawful permanent resident, whose benefits are funded 8.5 entirely with state money, and who are under 70 years of age, 8.6 must, as a condition of eligibility: 8.7 (1) be enrolled in a literacy class, English as a second 8.8 language class, or a citizen class; 8.9 (2) be applying for admission to a literacy class, English 8.10 as a second language class, and is on a waiting list; 8.11 (3) be in the process of applying for a waiver from the 8.12 Immigration and Naturalization Service of the English language 8.13 or civics requirements of the citizenship test; 8.14 (4) have submitted an application for citizenship to the 8.15 Immigration and Naturalization Service and is waiting for a 8.16 testing date or a subsequent swearing in ceremony; or 8.17 (5) have been denied citizenship due to a failure to pass 8.18 the test after two attempts or because of an inability to 8.19 understand the rights and responsibilities of becoming a United 8.20 States citizen, as documented by the Immigration and 8.21 Naturalization Service or the county. 8.22 If the county social service agency determines that a legal 8.23 noncitizen subject to the requirements of this subdivision will 8.24 require more than one year of English language training, then 8.25 the requirements of clause (1) or (2) shall be imposed after the 8.26 legal noncitizen has resided in the country for three years. 8.27 Individuals who reside in a facility licensed under chapter 8.28 144A, 144D, 245A, or 256I are exempt from the requirements of 8.29 this subdivision. 8.30 Sec. 15. Minnesota Statutes 1998, section 256J.12, 8.31 subdivision 1a, is amended to read: 8.32 Subd. 1a. [30-DAY RESIDENCY REQUIREMENT.] An assistance 8.33 unit is considered to have established residency in this state 8.34 only when a child or caregiver has resided in this state for at 8.35 least 30 consecutive days with the intention of making the 8.36 person's home here and not for any temporary purpose. The birth 9.1 of a child in Minnesota to a member of the assistance unit does 9.2 not automatically establish the residency in this state under 9.3 this subdivision of the other members of the assistance unit. 9.4 Time spent in a shelter for battered women shall count toward 9.5 satisfying the 30-day residency requirement. 9.6 Sec. 16. Minnesota Statutes 1998, section 256J.12, 9.7 subdivision 2, is amended to read: 9.8 Subd. 2. [EXCEPTIONS.] (a) A county shall waive the 30-day 9.9 residency requirement where unusual hardship would result from 9.10 denial of assistance. 9.11 (b) For purposes of this section, unusual hardship means an 9.12 assistance unit: 9.13 (1) is without alternative shelter; or 9.14 (2) is without available resources for food. 9.15 (c) For purposes of this subdivision, the following 9.16 definitions apply (1) "metropolitan statistical area" is as 9.17 defined by the U.S. Census Bureau; (2) "alternative shelter" 9.18 includes any shelter that is located within the metropolitan 9.19 statistical area containing the county and for which the family 9.20 is eligible, provided the assistance unit does not have to 9.21 travel more than 20 miles to reach the shelter and has access to 9.22 transportation to the shelter. Clause (2) does not apply to 9.23 counties in the Minneapolis-St. Paul metropolitan statistical 9.24 area. 9.25 (d) Applicants are considered to meet the residency 9.26 requirement under subdivision 1a if they once resided in 9.27 Minnesota and: 9.28 (1) joined the United States armed services, returned to 9.29 Minnesota within 30 days of leaving the armed services, and 9.30 intend to remain in Minnesota; or 9.31 (2) left to attend school in another state, paid 9.32 nonresident tuition or Minnesota tuition rates under a 9.33 reciprocity agreement, and returned to Minnesota within 30 days 9.34 of graduation with the intent to remain in Minnesota. 9.35 (e) The 30-day residence requirement is met when: 9.36 (1) a minor child or a minor caregiver moves from another 10.1 state to the residence of a relative caregiver; and 10.2(2) the minor caregiver applies for and receives family10.3cash assistance;10.4(3) the relative caregiver chooses not to be part of the10.5MFIP-S assistance unit; and10.6(4) the relative caregiver has resided in Minnesota for at10.7least 30 days prior to the date the assistance unit applies for10.8cash assistance.10.9(f) Ineligible mandatory unit members who have resided in10.10Minnesota for 12 months immediately before the unit's date of10.11application establish the other assistance unit members'10.12eligibility for the MFIP-S transitional standard.10.13 (2) the relative caregiver has resided in Minnesota for at 10.14 least 30 consecutive days and: 10.15 (i) the minor caregiver applies for and receives MFIP; or 10.16 (ii) the relative caregiver applies for assistance for the 10.17 minor child but does not choose to be a member of the MFIP 10.18 assistance unit. 10.19 Sec. 17. Minnesota Statutes 1998, section 256J.14, is 10.20 amended to read: 10.21 256J.14 [ELIGIBILITY FOR PARENTING OR PREGNANT MINORS.] 10.22 (a) The definitions in this paragraph only apply to this 10.23 subdivision. 10.24 (1) "Household of a parent, legal guardian, or other adult 10.25 relative" means the place of residence of: 10.26 (i) a natural or adoptive parent; 10.27 (ii) a legal guardian according to appointment or 10.28 acceptance under section 260.242, 525.615, or 525.6165, and 10.29 related laws; 10.30 (iii) a caregiver as defined in section 256J.08, 10.31 subdivision 11; or 10.32 (iv) an appropriate adult relative designated by a county 10.33 agency. 10.34 (2) "Adult-supervised supportive living arrangement" means 10.35 a private family setting which assumes responsibility for the 10.36 care and control of the minor parent and minor child, or other 11.1 living arrangement, not including a public institution, licensed 11.2 by the commissioner of human services which ensures that the 11.3 minor parent receives adult supervision and supportive services, 11.4 such as counseling, guidance, independent living skills 11.5 training, or supervision. 11.6 (b) A minor parent and the minor child who is in the care 11.7 of the minor parent must reside in the household of a parent, 11.8 legal guardian, other adult relative, or in an adult-supervised 11.9 supportive living arrangement in order to receive MFIP-S unless: 11.10 (1) the minor parent has no living parent, other adult 11.11 relative, or legal guardian whose whereabouts is known; 11.12 (2) no living parent, other adult relative, or legal 11.13 guardian of the minor parent allows the minor parent to live in 11.14 the parent's, other adult relative's, or legal guardian's home; 11.15 (3) the minor parent lived apart from the minor parent's 11.16 own parent or legal guardian for a period of at least one year 11.17 before either the birth of the minor child or the minor parent's 11.18 application for MFIP-S; 11.19 (4) the physical or emotional health or safety of the minor 11.20 parent or minor child would be jeopardized if the minor parent 11.21 and the minor child resided in the same residence with the minor 11.22 parent's parent, other adult relative, or legal guardian; or 11.23 (5) an adult supervised supportive living arrangement is 11.24 not available for the minor parent and child in the county in 11.25 which the minor parent and child currently reside. If an adult 11.26 supervised supportive living arrangement becomes available 11.27 within the county, the minor parent and child must reside in 11.28 that arrangement. 11.29 (c) Minor applicants must be informed orally and in writing 11.30 about the eligibility requirements and their rights and 11.31 obligations under the MFIP-S program. The county must advise 11.32 the minor of the possible exemptions and specifically ask 11.33 whether one or more of these exemptions is applicable. If the 11.34 minor alleges one or more of these exemptions, then the county 11.35 must assist the minor in obtaining the necessary verifications 11.36 to determine whether or not these exemptions apply. 12.1 (d) If the county worker has reason to suspect that the 12.2 physical or emotional health or safety of the minor parent or 12.3 minor child would be jeopardized if they resided with the minor 12.4 parent's parent, other adult relative, or legal guardian, then 12.5 the county worker must make a referral to child protective 12.6 services to determine if paragraph (b), clause (4), applies. A 12.7 new determination by the county worker is not necessary if one 12.8 has been made within the last six months, unless there has been 12.9 a significant change in circumstances which justifies a new 12.10 referral and determination. 12.11 (e) If a minor parent is not living with a parent, legal 12.12 guardian, or other adult relative due to paragraph (b), clause 12.13 (1), (2), or (4), the minor parent must reside, when possible, 12.14 in a living arrangement that meets the standards of paragraph 12.15 (a), clause (2). 12.16 (f)When a minor parent and minor child live with a parent,12.17other adult relative, legal guardian, or in an adult-supervised12.18supportiveRegardless of living arrangement,MFIP-SMFIP must be 12.19 paid, when possible, in the form of a protective payment on 12.20 behalf of the minor parent and minor child according to section 12.21 256J.39, subdivisions 2 to 4. 12.22 Sec. 18. Minnesota Statutes 1998, section 256J.20, 12.23 subdivision 3, is amended to read: 12.24 Subd. 3. [OTHER PROPERTY LIMITATIONS.] To be eligible for 12.25MFIP-SMFIP, the equity value of all nonexcluded real and 12.26 personal property of the assistance unit must not exceed $2,000 12.27 for applicants and $5,000 for ongoing participants. The value 12.28 of assets in clauses (1) to (20) must be excluded when 12.29 determining the equity value of real and personal property: 12.30 (1) a licensed vehicle up to a loan value of less than or 12.31 equal to $7,500. The county agency shall apply any excess loan 12.32 value as if it were equity value to the asset limit described in 12.33 this section. If the assistance unit owns more than one 12.34 licensed vehicle, the county agency shall determine the vehicle 12.35 with the highest loan value and count only the loan value over 12.36 $7,500, excluding: (i) the value of one vehicle per physically 13.1 disabled person when the vehicle is needed to transport the 13.2 disabled unit member; this exclusion does not apply to mentally 13.3 disabled people; (ii) the value of special equipment for a 13.4 handicapped member of the assistance unit; and (iii) any vehicle 13.5 used for long-distance travel, other than daily commuting, for 13.6 the employment of a unit member. 13.7 The county agency shall count the loan value of all other 13.8 vehicles and apply this amount as if it were equity value to the 13.9 asset limit described in this section.The value of special13.10equipment for a handicapped member of the assistance unit is13.11excluded.To establish the loan value of vehicles, a county 13.12 agency must use the N.A.D.A. Official Used Car Guide, Midwest 13.13 Edition, for newer model cars. When a vehicle is not listed in 13.14 the guidebook, or when the applicant or participant disputes the 13.15 loan value listed in the guidebook as unreasonable given the 13.16 condition of the particular vehicle, the county agency may 13.17 require the applicant or participant document the loan value by 13.18 securing a written statement from a motor vehicle dealer 13.19 licensed under section 168.27, stating the amount that the 13.20 dealer would pay to purchase the vehicle. The county agency 13.21 shall reimburse the applicant or participant for the cost of a 13.22 written statement that documents a lower loan value; 13.23 (2) the value of life insurance policies for members of the 13.24 assistance unit; 13.25 (3) one burial plot per member of an assistance unit; 13.26 (4) the value of personal property needed to produce earned 13.27 income, including tools, implements, farm animals, inventory, 13.28 business loans, business checking and savings accounts used at 13.29 least annually and used exclusively for the operation of a 13.30 self-employment business, and any motor vehicles if at least 50 13.31 percent of the vehicle's use is to produce income and if the 13.32 vehicles are essential for the self-employment business; 13.33 (5) the value of personal property not otherwise specified 13.34 which is commonly used by household members in day-to-day living 13.35 such as clothing, necessary household furniture, equipment, and 13.36 other basic maintenance items essential for daily living; 14.1 (6) the value of real and personal property owned by a 14.2 recipient of Supplemental Security Income or Minnesota 14.3 supplemental aid; 14.4 (7) the value of corrective payments, but only for the 14.5 month in which the payment is received and for the following 14.6 month; 14.7 (8) a mobile home or other vehicle used by an applicant or 14.8 participant as the applicant's or participant's home; 14.9 (9) money in a separate escrow account that is needed to 14.10 pay real estate taxes or insurance and that is used for this 14.11 purpose; 14.12 (10) money held in escrow to cover employee FICA, employee 14.13 tax withholding, sales tax withholding, employee worker 14.14 compensation, business insurance, property rental, property 14.15 taxes, and other costs that are paid at least annually, but less 14.16 often than monthly; 14.17 (11) monthly assistance, emergency assistance, and 14.18 diversionary payments for the current month's needs; 14.19 (12) the value of school loans, grants, or scholarships for 14.20 the period they are intended to cover; 14.21 (13) payments listed in section 256J.21, subdivision 2, 14.22 clause (9), which are held in escrow for a period not to exceed 14.23 three months to replace or repair personal or real property; 14.24 (14) income received in a budget month through the end of 14.25 the payment month; 14.26 (15) savings from earned income of a minor child or a minor 14.27 parent that are set aside in a separate account designated 14.28 specifically for future education or employment costs; 14.29 (16) the federal earned income credit, Minnesota working 14.30 family credit, state and federal income tax refunds, state 14.31 homeowners and renters credits under chapter 290A, property tax 14.32 rebatesunder Laws 1997, chapter 231, article 1, section 16,and 14.33 other federal or state tax rebates in the month received and the 14.34 following month; 14.35 (17) payments excluded under federal law as long as those 14.36 payments are held in a separate account from any nonexcluded 15.1 funds; 15.2 (18) money received by a participant of the corps to career 15.3 program under section 84.0887, subdivision 2, paragraph (b), as 15.4 a postservice benefit under the federal Americorps Act; 15.5 (19) the assets of children ineligible to receiveMFIP-S15.6 MFIP benefits because foster care or adoption assistance 15.7 payments are made on their behalf; and 15.8 (20) the assets of persons whose income is excluded under 15.9 section 256J.21, subdivision 2, clause (43). 15.10 Sec. 19. Minnesota Statutes 1998, section 256J.21, 15.11 subdivision 2, is amended to read: 15.12 Subd. 2. [INCOME EXCLUSIONS.] (a) The following must be 15.13 excluded in determining a family's available income: 15.14 (1) payments for basic care, difficulty of care, and 15.15 clothing allowances received for providing family foster care to 15.16 children or adults under Minnesota Rules, parts 9545.0010 to 15.17 9545.0260 and 9555.5050 to 9555.6265, and payments received and 15.18 used for care and maintenance of a third-party beneficiary who 15.19 is not a household member; 15.20 (2) reimbursements for employment training received through 15.21 the Job Training Partnership Act, United States Code, title 29, 15.22 chapter 19, sections 1501 to 1792b; 15.23 (3) reimbursement for out-of-pocket expenses incurred while 15.24 performing volunteer services, jury duty,oremployment, or 15.25 informal carpooling arrangements directly related to employment; 15.26 (4) all educational assistance, except the county agency 15.27 must count graduate student teaching assistantships, 15.28 fellowships, and other similar paid work as earned income and, 15.29 after allowing deductions for any unmet and necessary 15.30 educational expenses, shall count scholarships or grants awarded 15.31 to graduate students that do not require teaching or research as 15.32 unearned income; 15.33 (5) loans, regardless of purpose, from public or private 15.34 lending institutions, governmental lending institutions, or 15.35 governmental agencies; 15.36 (6) loans from private individuals, regardless of purpose, 16.1 provided an applicant or participant documents that the lender 16.2 expects repayment; 16.3 (7)(i) state income tax refunds; and 16.4 (ii) federal income tax refunds; 16.5 (8)(i) federal earned income credits; 16.6 (ii) Minnesota working family credits; 16.7 (iii) state homeowners and renters credits under chapter 16.8 290A; and 16.9 (iv)property tax rebates under Laws 1997, chapter 231,16.10article 1, section 16; and16.11(v) otherfederal or state tax rebates; 16.12 (9) funds received for reimbursement, replacement, or 16.13 rebate of personal or real property when these payments are made 16.14 by public agencies, awarded by a court, solicited through public 16.15 appeal, or made as a grant by a federal agency, state or local 16.16 government, or disaster assistance organizations, subsequent to 16.17 a presidential declaration of disaster; 16.18 (10) the portion of an insurance settlement that is used to 16.19 pay medical, funeral, and burial expenses, or to repair or 16.20 replace insured property; 16.21 (11) reimbursements for medical expenses that cannot be 16.22 paid by medical assistance; 16.23 (12) payments by a vocational rehabilitation program 16.24 administered by the state under chapter 268A, except those 16.25 payments that are for current living expenses; 16.26 (13) in-kind income, including any payments directly made 16.27 by a third party to a provider of goods and services; 16.28 (14) assistance payments to correct underpayments, but only 16.29 for the month in which the payment is received; 16.30 (15) emergency assistance payments; 16.31 (16) funeral and cemetery payments as provided by section 16.32 256.935; 16.33 (17) nonrecurring cash gifts of $30 or less, not exceeding 16.34 $30 per participant in a calendar month; 16.35 (18) any form of energy assistance payment made through 16.36 Public Law Number 97-35, Low-Income Home Energy Assistance Act 17.1 of 1981, payments made directly to energy providers by other 17.2 public and private agencies, and any form of credit or rebate 17.3 payment issued by energy providers; 17.4 (19) Supplemental Security Income, including retroactive 17.5 payments; 17.6 (20) Minnesota supplemental aid, including retroactive 17.7 payments; 17.8 (21) proceeds from the sale of real or personal property; 17.9 (22) adoption assistance payments under section 259.67; 17.10 (23) state-funded family subsidy program payments made 17.11 under section 252.32 to help families care for children with 17.12 mental retardation or related conditions; 17.13 (24) interest payments and dividends from property that is 17.14 not excluded from and that does not exceed the asset limit; 17.15 (25) rent rebates; 17.16 (26) income earned by a minor caregiveror, minor child 17.17 through age 6, or a minor child who is at least a half-time 17.18 student in an approved elementary or secondary education 17.19 program; 17.20 (27) income earned by a caregiver under age 20 who is at 17.21 least a half-time student in an approved elementary or secondary 17.22 education program; 17.23 (28)MFIP-SMFIP child care payments under section 119B.05; 17.24 (29) all other payments made throughMFIP-SMFIP to support 17.25 a caregiver's pursuit of greater self-support; 17.26 (30) income a participant receives related to shared living 17.27 expenses; 17.28 (31) reverse mortgages; 17.29 (32) benefits provided by the Child Nutrition Act of 1966, 17.30 United States Code, title 42, chapter 13A, sections 1771 to 17.31 1790; 17.32 (33) benefits provided by the women, infants, and children 17.33 (WIC) nutrition program, United States Code, title 42, chapter 17.34 13A, section 1786; 17.35 (34) benefits from the National School Lunch Act, United 17.36 States Code, title 42, chapter 13, sections 1751 to 1769e; 18.1 (35) relocation assistance for displaced persons under the 18.2 Uniform Relocation Assistance and Real Property Acquisition 18.3 Policies Act of 1970, United States Code, title 42, chapter 61, 18.4 subchapter II, section 4636, or the National Housing Act, United 18.5 States Code, title 12, chapter 13, sections 1701 to 1750jj; 18.6 (36) benefits from the Trade Act of 1974, United States 18.7 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 18.8 (37) war reparations payments to Japanese Americans and 18.9 Aleuts under United States Code, title 50, sections 1989 to 18.10 1989d; 18.11 (38) payments to veterans or their dependents as a result 18.12 of legal settlements regarding Agent Orange or other chemical 18.13 exposure under Public Law Number 101-239, section 10405, 18.14 paragraph (a)(2)(E); 18.15 (39) income that is otherwise specifically excluded from 18.16the MFIP-S programMFIP consideration in federal law, state law, 18.17 or federal regulation; 18.18 (40) security and utility deposit refunds; 18.19 (41) American Indian tribal land settlements excluded under 18.20 Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 18.21 Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 18.22 reservations and payments to members of the White Earth Band, 18.23 under United States Code, title 25, chapter 9, section 331, and 18.24 chapter 16, section 1407; 18.25 (42) all income of the minor parent'sparentparents and 18.26stepparentstepparents when determining the grant for the minor 18.27 parent in households that include a minor parent living witha18.28parentparents orstepparentstepparents onMFIP-SMFIP with 18.29 other children; and 18.30 (43) income of the minor parent'sparentparents and 18.31stepparentstepparents equal to 200 percent of the federal 18.32 poverty guideline for a family size not including the minor 18.33 parent and the minor parent's child in households that include a 18.34 minor parent living witha parentparents orstepparent18.35 stepparents not onMFIP-SMFIP when determining the grant for 18.36 the minor parent. The remainder of income is deemed as 19.1 specified in section 256J.37, subdivision 1b; 19.2 (44) payments made to children eligible for relative 19.3 custody assistance under section 257.85; 19.4 (45) vendor payments for goods and services made on behalf 19.5 of a client unless the client has the option of receiving the 19.6 payment in cash; and 19.7 (46) the principal portion of a contract for deed payment. 19.8 Sec. 20. Minnesota Statutes 1998, section 256J.21, 19.9 subdivision 3, is amended to read: 19.10 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 19.11 determine initial eligibility by considering all earned and 19.12 unearned income that is not excluded under subdivision 2. To be 19.13 eligible forMFIP-SMFIP, the assistance unit's countable income 19.14 minus the disregards in paragraphs (a) and (b) must be below the 19.15 transitional standard of assistance according to section 256J.24 19.16 for that size assistance unit. 19.17 (a) The initial eligibility determination must disregard 19.18 the following items: 19.19 (1) the employment disregard is 18 percent of the gross 19.20 earned income whether or not the member is working full time or 19.21 part time; 19.22 (2) dependent care costs must be deducted from gross earned 19.23 income for the actual amount paid for dependent care up to a 19.24 maximum of $200 per month for each child less than two years of 19.25 age, and $175 per month for each child two years of age and 19.26 older under this chapter and chapter 119B; 19.27 (3) all payments made according to a court order for 19.28 spousal support or the support of children not living in the 19.29 assistance unit's household shall be disregarded from the income 19.30 of the person with the legal obligation to pay support, provided 19.31 that, if there has been a change in the financial circumstances 19.32 of the person with the legal obligation to pay support since the 19.33 support order was entered, the person with the legal obligation 19.34 to pay support has petitioned for a modification of the support 19.35 order; and 19.36 (4) an allocation for the unmet need of an ineligible 20.1 spouse or an ineligible child under the age of 21 for whom the 20.2 caregiver is financially responsible and who lives with the 20.3 caregiver according to section 256J.36. 20.4 (b) Notwithstanding paragraph (a), when determining initial 20.5 eligibility for applicant units when at least one member has 20.6 receivedAFDC, family general assistance, MFIP, MFIP-R,work 20.7 first,orMFIP-SMFIP in this state within four months of the 20.8 most recent application forMFIP-SMFIP, apply theemployment20.9 disregard as defined in section 256J.08, subdivision 24, for all 20.10 unit membersis 36 percent of the gross earned income. 20.11 After initial eligibility is established, the assistance 20.12 payment calculation is based on the monthly income test. 20.13 Sec. 21. Minnesota Statutes 1998, section 256J.21, 20.14 subdivision 4, is amended to read: 20.15 Subd. 4. [MONTHLY INCOME TEST AND DETERMINATION OF 20.16 ASSISTANCE PAYMENT.] The county agency shall determine ongoing 20.17 eligibility and the assistance payment amount according to the 20.18 monthly income test. To be eligible forMFIP-SMFIP, the result 20.19 of the computations in paragraphs (a) to (e) must be at least $1. 20.20 (a) Applya 36 percentan income disregard as defined in 20.21 section 256J.08, subdivision 24, to gross earnings and subtract 20.22 this amount from the family wage level. If the difference is 20.23 equal to or greater than thetransitionalMFIP standard of need, 20.24 the assistance payment is equal to thetransitionalMFIP 20.25 standard of need. If the difference is less than 20.26 thetransitionalMFIP standard of need, the assistance payment 20.27 is equal to the difference. The employment disregard in this 20.28 paragraph must be deducted every month there is earned income. 20.29 (b) All payments made according to a court order for 20.30 spousal support or the support of children not living in the 20.31 assistance unit's household must be disregarded from the income 20.32 of the person with the legal obligation to pay support, provided 20.33 that, if there has been a change in the financial circumstances 20.34 of the person with the legal obligation to pay support since the 20.35 support order was entered, the person with the legal obligation 20.36 to pay support has petitioned for a modification of the court 21.1 order. 21.2 (c) An allocation for the unmet need of an ineligible 21.3 spouse or an ineligible child under the age of 21 for whom the 21.4 caregiver is financially responsible and who lives with the 21.5 caregiver must be made according to section 256J.36. 21.6 (d) Subtract unearned income dollar for dollar from 21.7 the MFIPtransitionalstandard of need to determine the 21.8 assistance payment amount. 21.9 (e) When income is both earned and unearned, the amount of 21.10 the assistance payment must be determined by first treating 21.11 gross earned income as specified in paragraph (a). After 21.12 determining the amount of the assistance payment under paragraph 21.13 (a), unearned income must be subtracted from that amount dollar 21.14 for dollar to determine the assistance payment amount. 21.15 (f) When the monthly income is greater than the 21.16transitional or family wage levelMFIP standard of need after 21.17applicabledeductions and the income will only exceed the 21.18 standard for one month, the county agency must suspend the 21.19 assistance payment for the payment month. 21.20 Sec. 22. Minnesota Statutes 1998, section 256J.24, 21.21 subdivision 2, is amended to read: 21.22 Subd. 2. [MANDATORY ASSISTANCE UNIT COMPOSITION.] Except 21.23 for minor caregivers and their children who must be in a 21.24 separate assistance unit from the other persons in the 21.25 household, when the following individuals live together, they 21.26 must be included in the assistance unit: 21.27 (1) a minor child, including a pregnant minor; 21.28 (2) the minor child's minor siblings, minor half-siblings, 21.29 and minor step-siblings; 21.30 (3) the minor child's natural parents, adoptive parents, 21.31 and stepparents; and 21.32 (4) the spouse of a pregnant woman. 21.33 Sec. 23. Minnesota Statutes 1998, section 256J.24, 21.34 subdivision 3, is amended to read: 21.35 Subd. 3. [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 21.36 ASSISTANCE UNIT.] (a) The following individuals who are part of 22.1 the assistance unit determined under subdivision 2 are 22.2 ineligible to receiveMFIP-SMFIP: 22.3 (1) individuals receiving Supplemental Security Income or 22.4 Minnesota supplemental aid; 22.5 (2)individuals living at home while performing22.6court-imposed, unpaid community service work due to a criminal22.7conviction;22.8(3)individuals disqualified from the food stamp program or 22.9MFIP-SMFIP, until the disqualification ends; 22.10(4)(3) children on whose behalf federal, state or local 22.11 foster care payments are made, except as provided in sections 22.12 256J.13, subdivision 2, and 256J.74, subdivision 2; and 22.13(5)(4) children receiving ongoing monthly adoption 22.14 assistance payments under section 259.67. 22.15 (b) The exclusion of a person under this subdivision does 22.16 not alter the mandatory assistance unit composition. 22.17 Sec. 24. Minnesota Statutes 1998, section 256J.24, 22.18 subdivision 7, is amended to read: 22.19 Subd. 7. [FAMILY WAGE LEVEL STANDARD.] The family wage 22.20 level standard is 110 percent of the transitional standard under 22.21 subdivision 5 and is the standard used when there is earned 22.22 income in the assistance unit. As specified in section 256J.21, 22.23 earned income is subtracted from the family wage level to 22.24 determine the amount of the assistance payment. Not including 22.25 the family wage level standard, assistance payments may not 22.26 exceed theshared household standard or the transitionalMFIP 22.27 standard of need for the assistance unit, whichever is less. 22.28 Sec. 25. Minnesota Statutes 1998, section 256J.24, 22.29 subdivision 8, is amended to read: 22.30 Subd. 8. [ASSISTANCE PAID TO ELIGIBLE ASSISTANCE UNITS.] 22.31 Except for assistance units where a nonparental caregiver is not 22.32 included in the grant, payments for shelter up to the amount of 22.33 the cash portion ofMFIP-SMFIP benefits for which the 22.34 assistance unit is eligible shall be vendor paid for as many 22.35 months as the assistance unit is eligible or six months, 22.36 whichever comes first. The residual amount of the grant after 23.1 vendor payment, if any, must be paid to theMFIP-SMFIP 23.2 caregiver. 23.3 Sec. 26. Minnesota Statutes 1998, section 256J.24, 23.4 subdivision 9, is amended to read: 23.5 Subd. 9. [SHARED HOUSEHOLD STANDARD;MFIP-SMFIP.] (a) 23.6 Except as prohibited in paragraph (b), the county agency must 23.7 use the shared household standard when the household includes 23.8 one or more unrelated members, as that term is defined in 23.9 section 256J.08, subdivision 86a. The county agency must use 23.10 the shared household standard, unless a member of the assistance 23.11 unit is a victim of domestic violence and has an approved safety 23.12 plan, regardless of the number of unrelated members in the 23.13 household. 23.14 (b) The county agency must not use the shared household 23.15 standard when all unrelated members are one of the following: 23.16 (1) a recipient of public assistance benefits, including 23.17 food stamps, Supplemental Security Income, adoption assistance, 23.18 relative custody assistance, or foster care payments; 23.19 (2) a roomer or boarder, or a person to whom the assistance 23.20 unit is paying room or board; 23.21 (3) a minor child under the age of 18; 23.22 (4) a minor caregiver living with the minor caregiver's 23.23 parents or in an approved supervised living arrangement;or23.24 (5) a caregiver who is not the parent of the minor child in 23.25 the assistance unit; or 23.26 (6) an individual who provides child care to a minor child 23.27 in the MFIP assistance unit. 23.28 (c) The shared household standard must be discontinued if 23.29 it is not approved by the United States Department of 23.30 Agriculture under theMFIP-SMFIP waiver. 23.31 Sec. 27. Minnesota Statutes 1998, section 256J.24, is 23.32 amended by adding a subdivision to read: 23.33 Subd. 10. [MFIP EXIT LEVEL.] (a) In state fiscal years 23.34 2000 and 2001, the commissioner shall adjust the MFIP earned 23.35 income disregard to ensure that most participants do not lose 23.36 eligibility for MFIP until their income reaches at least 120 24.1 percent of the federal poverty guidelines in effect in October 24.2 of each fiscal year. The adjustment to the disregard shall be 24.3 based on a household size of three, and the resulting earned 24.4 income disregard percentage must be applied to all household 24.5 sizes. The adjustment under this subdivision must be 24.6 implemented at the same time as the October food stamp 24.7 cost-of-living adjustment is reflected in the food portion of 24.8 MFIP transitional standard as required under subdivision 5a. 24.9 (b) In state fiscal year 2002 and thereafter, the earned 24.10 income disregard percentage must be the same as the percentage 24.11 implemented in October 2000. 24.12 Sec. 28. Minnesota Statutes 1998, section 256J.26, 24.13 subdivision 1, is amended to read: 24.14 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) 24.15 Applicants or participants who have been convicted of a drug 24.16 offense committed after July 1, 1997, may, if otherwise 24.17 eligible, receiveAFDC or MFIP-SMFIP benefits subject to the 24.18 following conditions: 24.19 (1) Benefits for the entire assistance unit must be paid in 24.20 vendor form for shelter and utilities during any time the 24.21 applicant is part of the assistance unit. 24.22 (2) The convicted applicant or participant shall be subject 24.23 to random drug testing as a condition of continued eligibility 24.24 and following any positive test for an illegal controlled 24.25 substance is subject to the following sanctions: 24.26 (i) for failing a drug test the first time, the 24.27 participant's grant shall be reduced by ten percent of the 24.28MFIP-S transitionalMFIP standard of need,the shared household24.29standard, or the interstate transitional standard, whichever is24.30applicableprior to making vendor payments for shelter and 24.31 utility costs; or 24.32 (ii) for failing a drug test two or more times, the 24.33 residual amount of the participant's grant after making vendor 24.34 payments for shelter and utility costs, if any, must be reduced 24.35 by an amount equal to 30 percent of theMFIP-S transitional24.36standard, the shared household standard, or the interstate25.1transitional standard, whichever is applicableMFIP standard of 25.2 need. 25.3 (3) A participant who fails an initial drug test and is 25.4 under a sanction due to other MFIP program requirements is 25.5 subject to the sanction in clause (2)(ii). 25.6 (b) Applicants requesting only food stamps or participants 25.7 receiving only food stamps, who have been convicted of a drug 25.8 offense that occurred after July 1, 1997, may, if otherwise 25.9 eligible, receive food stamps if the convicted applicant or 25.10 participant is subject to random drug testing as a condition of 25.11 continued eligibility. Following a positive test for an illegal 25.12 controlled substance, the applicant is subject to the following 25.13 sanctions: 25.14 (1) for failing a drug test the first time, food stamps 25.15 shall be reduced by ten percent of the applicable food stamp 25.16 allotment; and 25.17 (2) for failing a drug test two or more times, food stamps 25.18 shall be reduced by an amount equal to 30 percent of the 25.19 applicable food stamp allotment. 25.20 (c) For the purposes of this subdivision, "drug offense" 25.21 meansa convictionan offense that occurred after July 1, 1997, 25.22 of sections 152.021 to 152.025, 152.0261, or 152.096. Drug 25.23 offense also means a conviction in another jurisdiction of the 25.24 possession, use, or distribution of a controlled substance, or 25.25 conspiracy to commit any of these offenses, if the offense 25.26 occurred after July 1, 1997, and the conviction is a felony 25.27 offense in that jurisdiction, or in the case of New Jersey, a 25.28 high misdemeanor. 25.29 Sec. 29. Minnesota Statutes 1998, section 256J.30, 25.30 subdivision 8, is amended to read: 25.31 Subd. 8. [LATEMFIP-SMFIP HOUSEHOLD REPORT FORMS.] 25.32 Paragraphs (a) to (d) apply to the reporting requirements in 25.33 subdivision 7. 25.34 (a) Whena caregiver submitsthe county agency receives an 25.35 incompleteMFIP-SMFIP household report formbefore the last25.36working day of the month on which a ten-dayprior to the 26.1 issuance of a notice of terminationcan be issued, the county 26.2 agency must return the incomplete form on or before theten-day26.3 date the noticedeadlineis issued orany previously sent26.4ten-daythe notice of termination is invalid. 26.5 (b)When a complete MFIP-S household report form is not26.6received by a county agency before the last ten days of the26.7month in which the form is due, the county agency must sendA 26.8 notice of proposed termination of assistance will be sent to the 26.9 assistance unit if a complete MFIP household report form is not 26.10 received by a county agency before the notice date, which must 26.11 be at least ten days before the end of the month. When a 26.12 caregiver submits an incomplete form on or after the date a 26.13 notice of proposed termination has been sent, the termination is 26.14 valid unless the caregiver submits a complete form before the 26.15 end of the month. 26.16 (c) An assistance unit required to submit anMFIP-SMFIP 26.17 household report form is considered to have continued its 26.18 application for assistance if a completeMFIP-SMFIP household 26.19 report form is received within a calendar month after the month 26.20 in whichassistance was receivedthe form was due and assistance 26.21 shall be paid for the period beginning with the first day ofthe26.22month in which the report was duethat calendar month. 26.23 (d) A county agency must allow good cause exemptions from 26.24 the reporting requirements under subdivisions 5 and 6 when any 26.25 of the following factors cause a caregiver to fail to provide 26.26 the county agency with a completedMFIP-SMFIP household report 26.27 form before the end of the month in which the form is due: 26.28 (1) an employer delays completion of employment 26.29 verification; 26.30 (2) a county agency does not help a caregiver complete the 26.31MFIP-SMFIP household report form when the caregiver asks for 26.32 help; 26.33 (3) a caregiver does not receive anMFIP-SMFIP household 26.34 report form due to mistake on the part of the department or the 26.35 county agency or due to a reported change in address; 26.36 (4) a caregiver is ill, or physically or mentally 27.1 incapacitated; or 27.2 (5) some other circumstance occurs that a caregiver could 27.3 not avoid with reasonable care which prevents the caregiver from 27.4 providing a completedMFIP-SMFIP household report form before 27.5 the end of the month in which the form is due. 27.6 Sec. 30. Minnesota Statutes 1998, section 256J.30, 27.7 subdivision 9, is amended to read: 27.8 Subd. 9. [CHANGES THAT MUST BE REPORTED.] A caregiver must 27.9 report the changes or anticipated changes specified in clauses 27.10 (1) to (16) within ten days of the date they occur,within ten27.11days of the date the caregiver learns that the change will27.12occur,at the time of the periodic recertification of 27.13 eligibility under section 256J.32, subdivision 6, or within 27.14 eight calendar days of a reporting period as in subdivision 5 or 27.15 6, whichever occurs first. A caregiver must report other 27.16 changes at the time of the periodic recertification of 27.17 eligibility under section 256J.32, subdivision 6, or at the end 27.18 of a reporting period under subdivision 5 or 6, as applicable. 27.19 A caregiver must make these reports in writing to the county 27.20 agency. When a county agency could have reduced or terminated 27.21 assistance for one or more payment months if a delay in 27.22 reporting a change specified under clauses (1) to (16) had not 27.23 occurred, the county agency must determine whether a timely 27.24 notice under section 256J.31, subdivision 4, could have been 27.25 issued on the day that the change occurred. When a timely 27.26 notice could have been issued, each month's overpayment 27.27 subsequent to that notice must be considered a client error 27.28 overpayment under section 256J.38. Calculation of overpayments 27.29 for late reporting under clause (17) is specified in section 27.30 256J.09, subdivision 9. Changes in circumstances which must be 27.31 reported within ten days must also be reported on theMFIP-S27.32 MFIP household report form for the reporting period in which 27.33 those changes occurred. Within ten days, a caregiver must 27.34 report: 27.35 (1) a change in initial employment; 27.36 (2) a change in initial receipt of unearned income; 28.1 (3) a recurring change in unearned income; 28.2 (4) a nonrecurring change of unearned income that exceeds 28.3 $30; 28.4 (5) the receipt of a lump sum; 28.5 (6) an increase in assets that may cause the assistance 28.6 unit to exceed asset limits; 28.7 (7) a change in the physical or mental status of an 28.8 incapacitated member of the assistance unit if the physical or 28.9 mental status is the basis of exemption from anMFIP-S work and28.10trainingMFIP employment services program; 28.11 (8) a change in employment status; 28.12 (9)a change in household composition, including births,28.13returns to and departures from the home of assistance unit28.14members and financially responsible persons, or a change in the28.15custody of a minor childinformation affecting an exception 28.16 under section 256J.24, subdivision 9; 28.17 (10) a change in health insurance coverage; 28.18 (11) the marriage or divorce of an assistance unit member; 28.19 (12) the death of a parent, minor child, or financially 28.20 responsible person; 28.21 (13) a change in address or living quarters of the 28.22 assistance unit; 28.23 (14) the sale, purchase, or other transfer of property; 28.24 (15) a change in school attendance of a custodial parent or 28.25 an employed child;and28.26 (16) filing a lawsuit, a workers' compensation claim, or a 28.27 monetary claim against a third party; and 28.28 (17) a change in household composition, including births, 28.29 returns to and departures from the home of assistance unit 28.30 members and financially responsible persons, or a change in the 28.31 custody of a minor child. 28.32 Sec. 31. Minnesota Statutes 1998, section 256J.31, 28.33 subdivision 5, is amended to read: 28.34 Subd. 5. [MAILING OF NOTICE.] The notice of adverse action 28.35 shall be issued according to paragraphs (a) to(c)(d). 28.36 (a) Acounty agency shall mail anotice of adverse action 29.1 must be mailed at least ten days before the effective date of 29.2 the adverse action, except as provided in paragraphs (b)and (c)29.3 to (d). 29.4 (b)A county agency must mail a notice of adverse action at29.5least five days before the effective date of the adverse action29.6when the county agency has factual information that requires an29.7action to reduce, suspend, or terminate assistance based on29.8probable fraud.29.9(c) A county agency shall mailA notice of adverse action 29.10before or on the effective date of the adverse actionmust be 29.11 mailed no later than four working days before the end of the 29.12 month when the county agency: 29.13 (1)receives the caregiver's signed monthly MFIP-S29.14household report form that includes information that requires29.15payment reduction, suspension, or termination;29.16(2)is informed of the death ofa participantthe only 29.17 caregiver orthepayee in an assistance unit; 29.18(3)(2) receives a signed statement from the caregiver that 29.19 assistance is no longer wanted; 29.20(4) receives a signed statement from the caregiver that29.21provides information that requires the termination or reduction29.22of assistance(3) has factual information to reduce, suspend, or 29.23 terminate assistance based on the failure to timely report 29.24 changes; 29.25(5) verifies that a member of the assistance unit is absent29.26from the home and does not meet temporary absence provisions in29.27section 256J.13;29.28(6)(4) verifies that a member of the assistance unit has 29.29 entered a regional treatment center or a licensed residential 29.30 facility for medical or psychological treatment or 29.31 rehabilitation; 29.32(7)(5) verifies that a member of an assistance unit has 29.33 been removed from the home as a result of a judicial 29.34 determination or placed in foster care, and the provisions of 29.35 section 256J.13, subdivision 2, paragraph (c), clause (2), do 29.36 not apply; 30.1(8) verifies that a member of an assistance unit has been30.2approved to receive assistance by another state;or 30.3(9)(6) cannot locate a caregiver. 30.4 (c) A notice of adverse action must be mailed for a payment 30.5 month when the caregiver makes a written request for closure 30.6 before the first of that payment month. 30.7 (d) A notice of adverse action must be mailed before the 30.8 effective date of the adverse action when the county agency 30.9 receives the caregiver's signed and completed MFIP household 30.10 report form or recertification form that includes information 30.11 that requires payment reduction, suspension, or termination. 30.12 Sec. 32. Minnesota Statutes 1998, section 256J.31, 30.13 subdivision 12, is amended to read: 30.14 Subd. 12. [RIGHT TO DISCONTINUE CASH ASSISTANCE.] A 30.15 participant who is not in vendor payment status may discontinue 30.16 receipt of the cash assistance portion ofMFIP-SMFIP assistance 30.17 grant and retain eligibility for child care assistance under 30.18 section 119B.05 and for medical assistance under sections 30.19 256B.055, subdivision 3a, and 256B.0635. For the months a 30.20 participant chooses to discontinue the receipt of the cash 30.21 portion of the MFIP grant, the assistance unit accrues months of 30.22 eligibility to be applied toward eligibility for child care 30.23 under section 119B.05 and for medical assistance under sections 30.24 256B.055, subdivision 3a, and 256B.0635. 30.25 Sec. 33. Minnesota Statutes 1998, section 256J.32, 30.26 subdivision 4, is amended to read: 30.27 Subd. 4. [FACTORS TO BE VERIFIED.] The county agency shall 30.28 verify the following at application: 30.29 (1) identity of adults; 30.30 (2) presence of the minor child in the home, if 30.31 questionable; 30.32 (3) relationship of a minor child to caregivers in the 30.33 assistance unit; 30.34 (4) age, if necessary to determineMFIP-SMFIP eligibility; 30.35 (5) immigration status; 30.36 (6) social security number according to the requirements of 31.1 section 256J.30, subdivision 12; 31.2 (7) income; 31.3 (8) self-employment expenses used as a deduction; 31.4 (9) source and purpose of deposits and withdrawals from 31.5 business accounts; 31.6 (10) spousal support and child support payments made to 31.7 persons outside the household; 31.8 (11) real property; 31.9 (12) vehicles; 31.10 (13) checking and savings accounts; 31.11 (14) savings certificates, savings bonds, stocks, and 31.12 individual retirement accounts; 31.13 (15) pregnancy, if related to eligibility; 31.14 (16) inconsistent information, if related to eligibility; 31.15 (17) medical insurance; 31.16 (18)anticipated graduation date of an 18-year-old;31.17(19)burial accounts; 31.18(20)(19) school attendance, if related to eligibility; 31.19(21)(20) residence; 31.20(22)(21) a claim of domestic violence if used as a basis 31.21 for a deferral or exemption from the 60-month time limit in 31.22 section 256J.42 or employment and training services requirements 31.23 in section 256J.56;and31.24(23)(22) disability if used as an exemption from 31.25 employment and training services requirements under section 31.26 256J.56; and 31.27 (23) information needed to establish an exception under 31.28 section 256J.24, subdivision 9. 31.29 Sec. 34. Minnesota Statutes 1998, section 256J.32, 31.30 subdivision 6, is amended to read: 31.31 Subd. 6. [RECERTIFICATION.] The county agency shall 31.32 recertify eligibility in an annual face-to-face interview with 31.33 the participant and verify the following: 31.34 (1) presence of the minor child in the home, if 31.35 questionable; 31.36 (2) income, unless excluded, including self-employment 32.1 expenses used as a deduction or deposits or withdrawals from 32.2 business accounts; 32.3 (3) assets when the value is within $200 of the asset 32.4 limit;and32.5 (4) information to establish an exception under section 32.6 256J.24, subdivision 9, if questionable; and 32.7 (5) inconsistent information, if related to eligibility. 32.8 Sec. 35. Minnesota Statutes 1998, section 256J.33, is 32.9 amended to read: 32.10 256J.33 [PROSPECTIVE AND RETROSPECTIVE DETERMINATION OF 32.11MFIP-SMFIP ELIGIBILITY.] 32.12 Subdivision 1. [DETERMINATION OF ELIGIBILITY.] A county 32.13 agency must determineMFIP-SMFIP eligibility prospectively for 32.14 a payment month based on retrospectively assessing income and 32.15 the county agency's best estimate of the circumstances that will 32.16 exist in the payment month. 32.17 Except as described in section 256J.34, subdivision 1, when 32.18 prospective eligibility exists, a county agency must calculate 32.19 the amount of the assistance payment using retrospective 32.20 budgeting. To determineMFIP-SMFIP eligibility and the 32.21 assistance payment amount, a county agency must apply countable 32.22 income, described in section 256J.37, subdivisions 3 to 10, 32.23 received by members of an assistance unit or by other persons 32.24 whose income is counted for the assistance unit, described under 32.25 sections 256J.21 and 256J.37, subdivisions 1 to 2. 32.26 This income must be applied to thetransitionalMFIP 32.27 standard, shared household standard,of need or family 32.28 wagestandardlevel subject to this section and sections 256J.34 32.29 to 256J.36. Income received in a calendar month and not 32.30 otherwise excluded under section 256J.21, subdivision 2, must be 32.31 applied to the needs of an assistance unit. 32.32 Subd. 2. [PROSPECTIVE ELIGIBILITY.] A county agency must 32.33 determine whether the eligibility requirements that pertain to 32.34 an assistance unit, including those in sections 256J.11 to 32.35 256J.15 and 256J.20, will be met prospectively for the payment 32.36 month. Except for the provisions in section 256J.34, 33.1 subdivision 1, the income test will be applied retrospectively. 33.2 Subd. 3. [RETROSPECTIVE ELIGIBILITY.] After the first two 33.3 months ofMFIP-SMFIP eligibility, a county agency must continue 33.4 to determine whether an assistance unit is prospectively 33.5 eligible for the payment month by looking at all factors other 33.6 than income and then determine whether the assistance unit is 33.7 retrospectively income eligible by applying the monthly income 33.8 test to the income from the budget month. When the monthly 33.9 income test is not satisfied, the assistance payment must be 33.10 suspended when ineligibility exists for one month or ended when 33.11 ineligibility exists for more than one month. 33.12 Subd. 4. [MONTHLY INCOME TEST.] A county agency must apply 33.13 the monthly income test retrospectively for each month ofMFIP-S33.14 MFIP eligibility. An assistance unit is not eligible when the 33.15 countable income equals or exceeds thetransitionalMFIP 33.16 standard, shared household standard,of need or the family wage 33.17 level for the assistance unit. The income applied against the 33.18 monthly income test must include: 33.19 (1) gross earned income from employment, prior to mandatory 33.20 payroll deductions, voluntary payroll deductions, wage 33.21 authorizations, and after the disregards in section 256J.21, 33.22 subdivision 4, and the allocations in section 256J.36, unless 33.23 the employment income is specifically excluded under section 33.24 256J.21, subdivision 2; 33.25 (2) gross earned income from self-employment less 33.26 deductions for self-employment expenses in section 256J.37, 33.27 subdivision 5, but prior to any reductions for personal or 33.28 business state and federal income taxes, personal FICA, personal 33.29 health and life insurance, and after the disregards in section 33.30 256J.21, subdivision 4, and the allocations in section 256J.36; 33.31 (3) unearned income after deductions for allowable expenses 33.32 in section 256J.37, subdivision 9, and allocations in section 33.33 256J.36, unless the income has been specifically excluded in 33.34 section 256J.21, subdivision 2; 33.35 (4) gross earned income from employment as determined under 33.36 clause (1) which is received by a member of an assistance unit 34.1 who is a minor child or minor caregiver and less than a 34.2 half-time student; 34.3 (5) child support and spousal support received or 34.4 anticipated to be received by an assistance unit; 34.5 (6) the income of a parent when that parent is not included 34.6 in the assistance unit; 34.7 (7) the income of an eligible relative and spouse who seek 34.8 to be included in the assistance unit; and 34.9 (8) the unearned income of a minor child included in the 34.10 assistance unit. 34.11 Subd. 5. [WHEN TO TERMINATE ASSISTANCE.] When an 34.12 assistance unit is ineligible forMFIP-SMFIP assistance for two 34.13 consecutive months, the county agency must terminateMFIP-SMFIP 34.14 assistance. 34.15 Sec. 36. Minnesota Statutes 1998, section 256J.34, 34.16 subdivision 1, is amended to read: 34.17 Subdivision 1. [PROSPECTIVE BUDGETING.] A county agency 34.18 must use prospective budgeting to calculate the assistance 34.19 payment amount for the first two months for an applicant who has 34.20 not received assistance in this state for at least one payment 34.21 month preceding the first month of payment under a current 34.22 application. Notwithstanding subdivision 3, paragraph (a), 34.23 clause (2), a county agency must use prospective budgeting for 34.24 the first two months for a person who applies to be added to an 34.25 assistance unit. Prospective budgeting is not subject to 34.26 overpayments or underpayments unless fraud is determined under 34.27 section 256.98. 34.28 (a) The county agency must apply the income received or 34.29 anticipated in the first month ofMFIP-SMFIP eligibility 34.30 against the need of the first month. The county agency must 34.31 apply the income received or anticipated in the second month 34.32 against the need of the second month. 34.33 (b) When the assistance payment for any part of the first 34.34 two months is based on anticipated income, the county agency 34.35 must base the initial assistance payment amount on the 34.36 information available at the time the initial assistance payment 35.1 is made. 35.2 (c) The county agency must determine the assistance payment 35.3 amount for the first two months ofMFIP-SMFIP eligibility by 35.4 budgeting both recurring and nonrecurring income for those two 35.5 months. 35.6 (d) The county agency must budget the child support income 35.7 received or anticipated to be received by an assistance unit to 35.8 determine the assistance payment amount from the month of 35.9 application through the date in whichMFIP-SMFIP eligibility is 35.10 determined and assistance is authorized. Child support income 35.11 which has been budgeted to determine the assistance payment in 35.12 the initial two months is considered nonrecurring income. An 35.13 assistance unit must forward any payment of child support to the 35.14 child support enforcement unit of the county agency following 35.15 the date in which assistance is authorized. 35.16 Sec. 37. Minnesota Statutes 1998, section 256J.34, 35.17 subdivision 3, is amended to read: 35.18 Subd. 3. [ADDITIONAL USES OF RETROSPECTIVE BUDGETING.] 35.19 Notwithstanding subdivision 1, the county agency must use 35.20 retrospective budgeting to calculate the monthly assistance 35.21 payment amount for the first two months under paragraphs (a) and 35.22 (b). 35.23 (a) The county agency must use retrospective budgeting to 35.24 determine the amount of the assistance payment in the first two 35.25 months ofMFIP-SMFIP eligibility: 35.26 (1) when an assistance unit applies for assistance for the 35.27 same month for which assistance has been interrupted, the 35.28 interruption in eligibility is less than one payment month, the 35.29 assistance payment for the preceding month was issued in this 35.30 state, and the assistance payment for the immediately preceding 35.31 month was determined retrospectively; or 35.32 (2) when a person applies in order to be added to an 35.33 assistance unit, that assistance unit has received assistance in 35.34 this state for at least the two preceding months, and that 35.35 person has been living with and has been financially responsible 35.36 for one or more members of that assistance unit for at least the 36.1 two preceding months. 36.2 (b) Except as provided in clauses (1) to (4), the county 36.3 agency must use retrospective budgeting and apply income 36.4 received in the budget month by an assistance unit and by a 36.5 financially responsible household member who is not included in 36.6 the assistance unit against theappropriate transitional or36.7family wage levelMFIP standard of need or family wage level to 36.8 determine the assistance payment to be issued for the payment 36.9 month. 36.10 (1) When a source of income ends prior to the third payment 36.11 month, that income is not considered in calculating the 36.12 assistance payment for that month. When a source of income ends 36.13 prior to the fourth payment month, that income is not considered 36.14 when determining the assistance payment for that month. 36.15 (2) When a member of an assistance unit or a financially 36.16 responsible household member leaves the household of the 36.17 assistance unit, the income of that departed household member is 36.18 not budgeted retrospectively for any full payment month in which 36.19 that household member does not live with that household and is 36.20 not included in the assistance unit. 36.21 (3) When an individual is removed from an assistance unit 36.22 because the individual is no longer a minor child, the income of 36.23 that individual is not budgeted retrospectively for payment 36.24 months in which that individual is not a member of the 36.25 assistance unit, except that income of an ineligible child in 36.26 the household must continue to be budgeted retrospectively 36.27 against the child's needs when the parent or parents of that 36.28 child request allocation of their income against any unmet needs 36.29 of that ineligible child. 36.30 (4) When a person ceases to have financial responsibility 36.31 for one or more members of an assistance unit, the income of 36.32 that person is not budgeted retrospectively for the payment 36.33 months which follow the month in which financial responsibility 36.34 ends. 36.35 Sec. 38. Minnesota Statutes 1998, section 256J.34, 36.36 subdivision 4, is amended to read: 37.1 Subd. 4. [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 37.2 agency must recalculate the assistance payment when an 37.3 assistance unit experiences a significant change, as defined in 37.4 section 256J.08, resulting in a reduction in the gross income 37.5 received in the payment month from the gross income received in 37.6 the budget month. The county agency must issue a supplemental 37.7 assistance payment based on the county agency's best estimate of 37.8 the assistance unit's income and circumstances for the payment 37.9 month.Budget adjustmentsSupplemental assistance payments that 37.10 result from significant changes are limited to two in a 12-month 37.11 period regardless of the reason for the change.Budget37.12adjustmentsNotwithstanding any other statute or rule of law, 37.13 supplementary assistance payments shall not be made when the 37.14 significant change in income is the result of receipt of a lump 37.15 sum, receipt of an extra paycheck, business fluctuation in 37.16 self-employment income, or an assistance unit member's 37.17 participation in a strike or other labor action. Supplementary 37.18 assistance payments due to a significant change in the amount of 37.19 direct support received must not be made after the date the 37.20 assistance unit is required to forward support to the child 37.21 support enforcement unit under subdivision 1, paragraph (d). 37.22 Sec. 39. Minnesota Statutes 1998, section 256J.35, is 37.23 amended to read: 37.24 256J.35 [AMOUNT OF ASSISTANCE PAYMENT.] 37.25 Except as provided in paragraphs (a) to(d)(c), the amount 37.26 of an assistance payment is equal to the difference between the 37.27transitionalMFIP standard, shared household standard,of need 37.28 or the Minnesota family wage level in section 256J.24, whichever37.29is less,and countable income. 37.30 (a) WhenMFIP-SMFIP eligibility exists for the month of 37.31 application, the amount of the assistance payment for the month 37.32 of application must be prorated from the date of application or 37.33 the date all other eligibility factors are met for that 37.34 applicant, whichever is later. This provision applies when an 37.35 applicant loses at least one day ofMFIP-SMFIP eligibility. 37.36 (b)MFIP-SMFIP overpayments to an assistance unit must be 38.1 recouped according to section 256J.38, subdivision 4. 38.2 (c) An initial assistance payment must not be made to an 38.3 applicant who is not eligible on the date payment is made. 38.4(d) An individual whose needs have been otherwise provided38.5for in another state, in whole or in part by county, state, or38.6federal dollars during a month, is ineligible to receive MFIP-S38.7for the month.38.8 Sec. 40. Minnesota Statutes 1998, section 256J.36, is 38.9 amended to read: 38.10 256J.36 [ALLOCATION FOR UNMET NEED OF OTHER HOUSEHOLD 38.11 MEMBERS.] 38.12 Except as prohibited in paragraphs (a) and (b), an 38.13 allocation of income is allowed from the caregiver's income to 38.14 meet the unmet need of an ineligible spouse or an ineligible 38.15 child under the age of 21 for whom the caregiver is financially 38.16 responsible who also lives with the caregiver. That allocation 38.17 is allowed in an amount up to the difference between theMFIP-S38.18transitionalMFIP standard of need for the assistance unit when 38.19 that ineligible person is included in the assistance unit and 38.20 theMFIP-S family allowanceMFIP standard of need for the 38.21 assistance unit when the ineligible person is not included in 38.22 the assistance unit. These allocations must be deducted from 38.23 the caregiver's counted earnings and from unearned income 38.24 subject to paragraphs (a) and (b). 38.25 (a) Income of a minor child in the assistance unit must not 38.26 be allocated to meet the need of an ineligible person, including 38.27 the child's parent, even when that parent is the payee of the 38.28 child's income. 38.29 (b) Income of a caregiver must not be allocated to meet the 38.30 needs of a disqualified person. 38.31 Sec. 41. Minnesota Statutes 1998, section 256J.37, 38.32 subdivision 1, is amended to read: 38.33 Subdivision 1. [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 38.34 MEMBERS.] Unless otherwise provided under subdivision 1a or 1b, 38.35 the income of ineligible household members must be deemed after 38.36 allowing the following disregards: 39.1 (1) the first 18 percent of the ineligible family member's 39.2 gross earned income; 39.3 (2) amounts the ineligible person actually paid to 39.4 individuals not living in the same household but whom the 39.5 ineligible person claims or could claim as dependents for 39.6 determining federal personal income tax liability; 39.7 (3) all payments made by the ineligible person according to 39.8 a court order for spousal support or the support of children not 39.9 living in the assistance unit's household, provided that, if 39.10 there has been a change in the financial circumstances of the 39.11 ineligible person since the support order was entered, the 39.12 ineligible person has petitioned for a modification of the 39.13 support order; and 39.14 (4) an amount for the needs of the ineligible person and 39.15 other persons who live in the household but are not included in 39.16 the assistance unit and are or could be claimed by an ineligible 39.17 person as dependents for determining federal personal income tax 39.18 liability. This amount is equal to the difference between the 39.19MFIP-S transitionalMFIP standard of need when the ineligible 39.20 person is included in the assistance unit and theMFIP-S39.21transitionalMFIP standard of need when the ineligible person is 39.22 not included in the assistance unit. 39.23 Sec. 42. Minnesota Statutes 1998, section 256J.37, 39.24 subdivision 1a, is amended to read: 39.25 Subd. 1a. [DEEMED INCOME FROM DISQUALIFIED MEMBERS.] The 39.26 income of disqualified members must be deemed after allowing the 39.27 following disregards: 39.28 (1) the first 18 percent of the disqualified member's gross 39.29 earned income; 39.30 (2) amounts the disqualified member actually paid to 39.31 individuals not living in the same household but whom the 39.32 disqualified member claims or could claim as dependents for 39.33 determining federal personal income tax liability; 39.34 (3) all payments made by the disqualified member according 39.35 to a court order for spousal support or the support of children 39.36 not living in the assistance unit's household, provided that, if 40.1 there has been a change in the financial circumstances of the 40.2 disqualified member's legal obligation to pay support since the 40.3 support order was entered, the disqualified member has 40.4 petitioned for a modification of the support order; and 40.5 (4) an amount for the needs of other persons who live in 40.6 the household but are not included in the assistance unit and 40.7 are or could be claimed by the disqualified member as dependents 40.8 for determining federal personal income tax liability. This 40.9 amount is equal to the difference between theMFIP-S40.10transitionalMFIP standard of need when the ineligible person is 40.11 included in the assistance unit and theMFIP-S transitionalMFIP 40.12 standard of need when the ineligible person is not included in 40.13 the assistance unit. An amount shall not be allowed for the 40.14 needs of a disqualified member. 40.15 Sec. 43. Minnesota Statutes 1998, section 256J.37, 40.16 subdivision 2, is amended to read: 40.17 Subd. 2. [DEEMED INCOME AND ASSETS OF SPONSOR OF 40.18 NONCITIZENS.] 40.19 (a) Paragraphs (b) to (d) apply to an applicant or 40.20 recipient who entered the United States legally before December 40.21 19, 1997. 40.22 (b) Income of a sponsor and the sponsor's spouse and assets 40.23 of a sponsor and the sponsor's spouse, which exceed $1,500, is 40.24 deemed to be the income and assets of a non-213A immigrant for a 40.25 period of three years. To determine the amount of income to 40.26 deem to a non-213A immigrant, allow the following disregards: 40.27 (1) the lesser of 20 percent of the total combined gross 40.28 income of the sponsor and the sponsor's spouse or $175; 40.29 (2) an amount for the needs for the sponsor and sponsor's 40.30 spouse and any other individual living in the same household as 40.31 the sponsor who are claimed by the sponsor as dependents for 40.32 purposes of determining the sponsor's federal personal income 40.33 tax liability but whose needs are not taken into account in 40.34 determining MFIP eligibility. This amount is equal to the 40.35 difference between what the MFIP standard of need is if an 40.36 individual is included in the assistance unit and what the MFIP 41.1 standard of need is when an individual is not included in the 41.2 assistance unit; 41.3 (3) any amounts paid by the sponsor or the sponsor's spouse 41.4 to individuals not living in the household who are claimed by 41.5 the sponsor or sponsor's spouse for purposes of determining the 41.6 sponsor's federal income tax liability; and 41.7 (4) any payments of spousal maintenance or child support to 41.8 individuals not living in the household. 41.9 (c) If a person is a sponsor of two or more non-213A 41.10 immigrants who are living in the same home, the income and 41.11 assets of the sponsor and sponsor's spouse which is considered 41.12 under paragraph (b) shall be divided by the number of sponsored 41.13 immigrants, and the result shall be deemed to each sponsored 41.14 immigrant. 41.15 (d) A non-213A immigrant whose sponsor is or was a public 41.16 or private agency shall be ineligible for assistance under MFIP 41.17 during a period of three years after the immigrant enters the 41.18 United States, unless it is determined that the sponsoring 41.19 agency either no longer exists or has become unable to meet the 41.20 immigrant's needs. 41.21 (e) For a noncitizen who entered the United States legally 41.22 on or after December 19, 1997, if a noncitizen applies for or 41.23 receivesMFIP-SMFIP, the county must deem the income and assets 41.24 of the noncitizen's sponsor and the sponsor's spouse who have 41.25 signed an affidavit of support for the noncitizen as specified 41.26 in Public Law Number 104-193, title IV, sections 421 and 422, 41.27 the Personal Responsibility and Work Opportunity Reconciliation 41.28 Act of 1996. The income of a sponsor and the sponsor's spouse 41.29 is considered unearned income of the noncitizen. The assets of 41.30 a sponsor and the sponsor's spouse are considered available 41.31 assets of the noncitizen. 41.32 Sec. 44. Minnesota Statutes 1998, section 256J.37, 41.33 subdivision 9, is amended to read: 41.34 Subd. 9. [UNEARNED INCOME.] (a) The county agency must 41.35 apply unearned income to thetransitionalMFIP standard of 41.36 need. When determining the amount of unearned income, the 42.1 county agency must deduct the costs necessary to secure payments 42.2 of unearned income. These costs include legal fees, medical 42.3 fees, and mandatory deductions such as federal and state income 42.4 taxes. 42.5 (b) Effective July 1, 1999, the county agency shall count 42.6 $100 of the value of public and assisted rental subsidies 42.7 provided through the Department of Housing and Urban Development 42.8 (HUD) as unearned income. The full amount of the subsidy must 42.9 be counted as unearned income when the subsidy is less than $100. 42.10 (c) The provisions of paragraph (b) shall not apply to MFIP 42.11 participants who are exempt from the employment and training 42.12 services component because they are: 42.13 (i) individuals who are age 60 or older; 42.14 (ii) individuals who are suffering from a professionally 42.15 certified permanent or temporary illness, injury, or incapacity 42.16 which is expected to continue for more than 30 days and which 42.17 prevents the person from obtaining or retaining employment; or 42.18 (iii) caregivers whose presence in the home is required 42.19 because of the professionally certified illness or incapacity of 42.20 another member in the assistance unit, a relative in the 42.21 household, or a foster child in the household. 42.22 Sec. 45. Minnesota Statutes 1998, section 256J.37, 42.23 subdivision 10, is amended to read: 42.24 Subd. 10. [TREATMENT OF LUMP SUMS.] (a) The county agency 42.25 must treat lump-sum payments as earned or unearned income. If 42.26 the lump-sum payment is included in the category of income 42.27 identified in subdivision 9, it must be treated as unearned 42.28 income. A lump sum is counted as income in the month received 42.29 and budgeted either prospectively or retrospectively depending 42.30 on the budget cycle at the time of receipt. When an individual 42.31 receives a lump-sum payment, that lump sum must be combined with 42.32 all other earned and unearned income received in the same budget 42.33 month, and it must be applied according to paragraphs (a) to 42.34 (c). A lump sum may not be carried over into subsequent months. 42.35 Any funds that remain in the third month after the month of 42.36 receipt are counted in the asset limit. 43.1 (b) For a lump sum received by an applicant during the 43.2 first two months, prospective budgeting is used to determine the 43.3 payment and the lump sum must be combined with other earned or 43.4 unearned income received and budgeted in that prospective month. 43.5 (c) For a lump sum received by a participant after the 43.6 first two months ofMFIP-SMFIP eligibility, the lump sum must 43.7 be combined with other income received in that budget month, and 43.8 the combined amount must be applied retrospectively against the 43.9 applicable payment month. 43.10 (d) When a lump sum, combined with other income under 43.11 paragraphs (b) and (c), is less than thetransitionalMFIP 43.12 standard of need for theapplicableappropriate payment month, 43.13 the assistance payment must be reduced according to the amount 43.14 of the countable income. When the countable income is greater 43.15 than thetransitionalMFIP standardor the family wage43.16standardor family wage level, the assistance payment must be 43.17 suspended for the payment month. 43.18 Sec. 46. Minnesota Statutes 1998, section 256J.38, 43.19 subdivision 4, is amended to read: 43.20 Subd. 4. [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 43.21 participant may voluntarily repay, in part or in full, an 43.22 overpayment even if assistance is reduced under this 43.23 subdivision, until the total amount of the overpayment is 43.24 repaid. When an overpayment occurs due to fraud, the county 43.25 agency must recover ten percent of thetransitionalapplicable 43.26 standard or the amount of the monthly assistance payment, 43.27 whichever is less. When a nonfraud overpayment occurs, the 43.28 county agency must recover three percent of thetransitional43.29 MFIP standard of need or the amount of the monthly assistance 43.30 payment, whichever is less. 43.31 Sec. 47. Minnesota Statutes 1998, section 256J.42, 43.32 subdivision 1, is amended to read: 43.33 Subdivision 1. [TIME LIMIT.] (a) Except for the exemptions 43.34 in this sectionand in section 256J.11, subdivision 2, an 43.35 assistance unit in which any adult caregiver has received 60 43.36 months of cash assistance funded in whole or in part by the TANF 44.1 block grant in this or any other state or United States 44.2 territory,MFIP-Sor from a tribal TANF program, MFIP, AFDC, or 44.3 family general assistance, funded in whole or in part by state 44.4 appropriations, is ineligible to receiveMFIP-SMFIP. Any cash 44.5 assistance funded with TANF dollars in this or any other state 44.6 or United States territory, or from a tribal TANF program, or 44.7MFIP-SMFIP assistance funded in whole or in part by state 44.8 appropriations, that was received by the unit on or after the 44.9 date TANF was implemented, including any assistance received in 44.10 states or United States territories of prior residence, counts 44.11 toward the 60-month limitation. The 60-month limit applies to a 44.12 minor who is the head of a household or who is married to the 44.13 head of a household except under subdivision 5. The 60-month 44.14 time period does not need to be consecutive months for this 44.15 provision to apply. 44.16 (b) The months before July 1998 in which individuals 44.17receivereceived assistance as part of the field trials as an 44.18 MFIP, MFIP-R, or MFIP or MFIP-R comparison group familyunder44.19sections 256.031 to 256.0361 or sections 256.047 to 256.048are 44.20 not included in the 60-month time limit. 44.21 Sec. 48. Minnesota Statutes 1998, section 256J.42, 44.22 subdivision 5, is amended to read: 44.23 Subd. 5. [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 44.24 assistance received by an assistance unit does not count toward 44.25 the 60-month limit on assistance during a month in which the 44.26 caregiver is in the category in section 256J.56, paragraph (a), 44.27 clause (1).The exemption applies for the period of time the44.28caregiver belongs to one of the categories specified in this44.29subdivision.44.30 (b) From July 1, 1997, until the dateMFIP-SMFIP is 44.31 operative in the caregiver's county of financial responsibility, 44.32 any cash assistance received by a caregiver who is complying 44.33 with sections 256.73, subdivision 5a, and 256.736, if 44.34 applicable, does not count toward the 60-month limit on 44.35 assistance. Thereafter, any cash assistance received by a minor 44.36 caregiver who is complying with the requirements of sections 45.1 256J.14 and 256J.54, if applicable, does not count towards the 45.2 60-month limit on assistance. 45.3 (c) Any diversionary assistance or emergency assistance 45.4 received does not count toward the 60-month limit. 45.5 (d) Any cash assistance received by an 18- or 19-year-old 45.6 caregiver who is complying with the requirements of section 45.7 256J.54 does not count toward the 60-month limit. 45.8 Sec. 49. Minnesota Statutes 1998, section 256J.43, is 45.9 amended to read: 45.10 256J.43 [INTERSTATEPAYMENTTRANSITIONAL STANDARDS.] 45.11 Subdivision 1. [PAYMENT.] (a) Effective July 1, 1997, the 45.12 amount of assistance paid to an eligible unit in which all 45.13 members have resided in this state for fewer than 12 consecutive 45.14 calendar months immediately preceding the date of application 45.15 shall be the lesser of either the interstate transitional 45.16 standard that would have been received by the assistance unit 45.17 from the state of immediate prior residence, or the amount 45.18 calculated in accordance withAFDC or MFIP-SMFIP standards. 45.19 The lesser payment must continue until the assistance unit meets 45.20 the 12-month requirement. An assistance unit that has not 45.21 resided in Minnesota for 12 months from the date of application 45.22 is not exempt from the interstatepaymenttransitional standards 45.23 provisions solely because a child is born in Minnesota to a 45.24 member of the assistance unit. Payment must be calculated by 45.25 applying thisstate'sMFIP's budgeting policies, and the unit's 45.26 net income must be deducted from the payment standard in the 45.27 other state or the MFIP transitional or shared household 45.28 standard in this state, whichever is lower. Payment shall be 45.29 made in vendor form for shelter and utilities, up to the limit 45.30 of the grant amount, and residual amounts, if any, shall be paid 45.31 directly to the assistance unit. 45.32 (b) During the first 12 months an assistance unit resides 45.33 in this state, the number of months that a unit is eligible to 45.34 receiveAFDC or MFIP-SMFIP benefits is limited to the number of 45.35 months the assistance unit would have been eligible to receive 45.36 similar benefits in the state of immediate prior residence. 46.1 (c) This policy applies whether or not the assistance unit 46.2 received similar benefits while residing in the state of 46.3 previous residence. 46.4 (d) When an assistance unit moves to this state from 46.5 another state where the assistance unit has exhausted that 46.6 state's time limit for receiving benefits under that state's 46.7 TANF program, the unit will not be eligible to receive anyAFDC46.8or MFIP-SMFIP benefits in this state for 12 months from the 46.9 date the assistance unit moves here. 46.10 (e) For the purposes of this section, "state of immediate 46.11 prior residence" means: 46.12 (1) the state in which the applicant declares the applicant 46.13 spent the most time in the 30 days prior to moving to this 46.14 state; or 46.15 (2) the state in which an applicant who is a migrant worker 46.16 maintains a home. 46.17 (f) The commissioner shall annually verify and update all 46.18 other states' payment standards as they are to be in effect in 46.19 July of each year. 46.20 (g) Applicants must provide verification of their state of 46.21 immediate prior residence, in the form of tax statements, a 46.22 driver's license, automobile registration, rent receipts, or 46.23 other forms of verification approved by the commissioner. 46.24 (h) Migrant workers, as defined in section 256J.08, and 46.25 their immediate families are exempt from this section, provided 46.26 the migrant worker provides verification that the migrant family 46.27 worked in this state within the last 12 months and earned at 46.28 least $1,000 in gross wages during the time the migrant worker 46.29 worked in this state. 46.30 Subd. 2. [TEMPORARY ABSENCE FROM MINNESOTA.] (a) For an 46.31 assistance unit that has met the requirements of section 46.32 256J.12, the number of months that the assistance unit receives 46.33 benefits under the interstatepaymenttransitional standards in 46.34 this section is not affected by an absence from Minnesota for 46.35 fewer than 30 consecutive days. 46.36 (b) For an assistance unit that has met the requirements of 47.1 section 256J.12, the number of months that the assistance unit 47.2 receives benefits under the interstatepaymenttransitional 47.3 standards in this section is not affected by an absence from 47.4 Minnesota for more than 30 consecutive days but fewer than 90 47.5 consecutive days, provided the assistance unit continues to 47.6 maintain a residence in Minnesota during the period of absence. 47.7 Subd. 3. [EXCEPTIONS TO THE INTERSTATE PAYMENT POLICY.] 47.8 Applicants who lived in another state in the 12 months prior to 47.9 applying for assistance are exempt from the interstate payment 47.10 policy for the months that a member of the unit: 47.11 (1) served in the United States armed services, provided 47.12 the person returned to Minnesota within 30 days of leaving the 47.13 armed forces, and intends to remain in Minnesota; 47.14 (2) attended school in another state, paid nonresident 47.15 tuition or Minnesota tuition rates under a reciprocity 47.16 agreement, provided the person left Minnesota specifically to 47.17 attend school and returned to Minnesota within 30 days of 47.18 graduation with the intent to remain in Minnesota; or 47.19 (3) meets the following criteria: 47.20 (i) a minor child or a minor caregiver moves from another 47.21 state to the residence of a relative caregiver; 47.22 (ii) the minor caregiver applies for and receives family 47.23 cash assistance; 47.24 (iii) the relative caregiver chooses not to be part of the 47.25 MFIP-S assistance unit; and 47.26 (iv) the relative caregiver has resided in Minnesota for at 47.27 least 12 months from the date the assistance unit applies for 47.28 cash assistance. 47.29 Subd. 4. [INELIGIBLE MANDATORY UNIT MEMBERS.] Ineligible 47.30 mandatory unit members who have resided in Minnesota for 12 47.31 months immediately before the unit's date of application 47.32 establish the other assistance unit members' eligibility for the 47.33MFIP-SMFIP transitional standard, shared household or family 47.34 wage level, whichever is applicable. 47.35 Sec. 50. Minnesota Statutes 1998, section 256J.45, 47.36 subdivision 1, is amended to read: 48.1 Subdivision 1. [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 48.2 county agency must provide eachMFIP-SMFIP caregiver who is not 48.3 exempt under section 256J.56, paragraph (a), clause (6) or (8), 48.4 with a face-to-face orientation.The caregiver must attend the48.5orientation.The county agency must informthe caregiver48.6 caregivers who are not exempt under section 256J.56, paragraph 48.7 (a), clause (6) or (8), that failure to attend the orientation 48.8 is considered an occurrence of noncompliance with program 48.9 requirements, and will result in the imposition of a sanction 48.10 under section 256J.46. If the client complies with the 48.11 orientation requirement prior to the first day of the month in 48.12 which the grant reduction is proposed to occur, the orientation 48.13 sanction shall be lifted. 48.14 Sec. 51. Minnesota Statutes 1998, section 256J.46, 48.15 subdivision 1, is amended to read: 48.16 Subdivision 1. [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 48.17 WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 48.18 good cause to comply with the requirements of this chapter, and 48.19 who is not subject to a sanction under subdivision 2, shall be 48.20 subject to a sanction as provided in this subdivision. 48.21 A sanction under this subdivision becomes effective the 48.22 month following the month in which a required notice is given. 48.23 A sanction must not be imposed when a participant comes into 48.24 compliance with the requirements for orientation under section 48.25 256J.45 or third-party liability for medical services under 48.26 section 256J.30, subdivision 10, prior to the effective date of 48.27 the sanction. A sanction must not be imposed when a participant 48.28 comes into compliance with the requirements for employment and 48.29 training services under sections 256J.49 to 256J.72 ten days 48.30 prior to the effective date of the sanction. For purposes of 48.31 this subdivision, each month that a participant fails to comply 48.32 with a requirement of this chapter shall be considered a 48.33 separate occurrence of noncompliance. A participant who has had 48.34 one or more sanctions imposed must remain in compliance with the 48.35 provisions of this chapter for six months in order for a 48.36 subsequent occurrence of noncompliance to be considered a first 49.1 occurrence. 49.2 (b) Sanctions for noncompliance shall be imposed as follows: 49.3 (1) For the first occurrence of noncompliance by a 49.4 participant in a single-parent household or by one participant 49.5 in a two-parent household, the assistance unit's grant shall be 49.6 reduced by ten percent of theMFIP-S transitionalMFIP standard,49.7the shared household standard, or the interstate transitional49.8standardof need for an assistance unit of the same size,49.9whichever is applicable,with the residual grant paid to the 49.10 participant. The reduction in the grant amount must be in 49.11 effect for a minimum of one month and shall be removed in the 49.12 month following the month that the participant returns to 49.13 compliance. 49.14 (2) For a second or subsequent occurrence of noncompliance, 49.15 or when both participants in a two-parent household are out of 49.16 compliance at the same time, the assistance unit's shelter costs 49.17 shall be vendor paid up to the amount of the cash portion of the 49.18MFIP-SMFIP grant for which the participant's assistance unit is 49.19 eligible. At county option, the assistance unit's utilities may 49.20 also be vendor paid up to the amount of the cash portion of the 49.21MFIP-SMFIP grant remaining after vendor payment of the 49.22 assistance unit's shelter costs. The residual amount of the 49.23 grant after vendor payment, if any, must be reduced by an amount 49.24 equal to 30 percent of theMFIP-S transitionalMFIP standard,49.25the shared household standard, or the interstate transitional49.26standardof need for an assistance unit of the same size,49.27whichever is applicable,before the residual grant is paid to 49.28 the assistance unit. The reduction in the grant amount must be 49.29 in effect for a minimum of one month and shall be removed in the 49.30 month following the month that a participant in a one-parent 49.31 household returns to compliance. In a two-parent household, the 49.32 grant reduction must be in effect for a minimum of one month and 49.33 shall be removed in the month following the month both 49.34 participants return to compliance. The vendor payment of 49.35 shelter costs and, if applicable, utilities shall be removed six 49.36 months after the month in which the participant or participants 50.1 return to compliance. 50.2 (c) No later than during the second month that a sanction 50.3 under paragraph (b), clause (2), is in effect due to 50.4 noncompliance with employment services, the participant's case 50.5 file must be reviewed to determine if: 50.6 (i) the continued noncompliance can be explained and 50.7 mitigated by providing a needed preemployment activity, as 50.8 defined in section 256J.49, subdivision 13, clause (16); 50.9 (ii) the participant qualifies for a good cause exception 50.10 under section 256J.57; or 50.11 (iii) the participant qualifies for an exemption under 50.12 section 256J.56. 50.13 If the lack of an identified activity can explain the 50.14 noncompliance, the county must work with the participant to 50.15 provide the identified activity, and the county must restore the 50.16 participant's grant amount to the full amount for which the 50.17 assistance unit is eligible. The grant must be restored 50.18 retroactively to the first day of the month in which the 50.19 participant was found to lack preemployment activities or to 50.20 qualify for an exemption or good cause exception. 50.21 If the participant is found to qualify for a good cause 50.22 exception or an exemption, the county must restore the 50.23 participant's grant to the full amount for which the assistance 50.24 unit is eligible. 50.25 Sec. 52. Minnesota Statutes 1998, section 256J.46, 50.26 subdivision 2, is amended to read: 50.27 Subd. 2. [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 50.28 REQUIREMENTS.] The grant of anMFIP-SMFIP caregiver who refuses 50.29 to cooperate, as determined by the child support enforcement 50.30 agency, with support requirements under section 256.741, shall 50.31 be subject to sanction as specified in this subdivision. The 50.32 assistance unit's grant must be reduced by 25 percent of the 50.33 applicabletransitionalMFIP standard of need. The residual 50.34 amount of the grant, if any, must be paid to the caregiver. A 50.35 sanction under this subdivision becomes effective the first 50.36 month following the month in which a required notice is given. 51.1 A sanction must not be imposed when a caregiver comes into 51.2 compliance with the requirements under section 256.741 prior to 51.3 the effective date of the sanction. The sanction shall be 51.4 removed in the month following the month that the caregiver 51.5 cooperates with the support requirements. Each month that 51.6 anMFIP-SMFIP caregiver fails to comply with the requirements 51.7 of section 256.741 must be considered a separate occurrence of 51.8 noncompliance. AnMFIP-SMFIP caregiver who has had one or more 51.9 sanctions imposed must remain in compliance with the 51.10 requirements of section 256.741 for six months in order for a 51.11 subsequent sanction to be considered a first occurrence. 51.12 Sec. 53. Minnesota Statutes 1998, section 256J.46, 51.13 subdivision 2a, is amended to read: 51.14 Subd. 2a. [DUAL SANCTIONS.] (a) Notwithstanding the 51.15 provisions of subdivisions 1 and 2, for a participant subject to 51.16 a sanction for refusal to comply with child support requirements 51.17 under subdivision 2 and subject to a concurrent sanction for 51.18 refusal to cooperate with other program requirements under 51.19 subdivision 1, sanctions shall be imposed in the manner 51.20 prescribed in this subdivision. 51.21 A participant who has had one or more sanctions imposed 51.22 under this subdivision must remain in compliance with the 51.23 provisions of this chapter for six months in order for a 51.24 subsequent occurrence of noncompliance to be considered a first 51.25 occurrence. Any vendor payment of shelter costs or utilities 51.26 under this subdivision must remain in effect for six months 51.27 after the month in which the participant is no longer subject to 51.28 sanction under subdivision 1. 51.29 (b) If the participant was subject to sanction for: 51.30 (i) noncompliance under subdivision 1 before being subject 51.31 to sanction for noncooperation under subdivision 2; or 51.32 (ii) noncooperation under subdivision 2 before being 51.33 subject to sanction for noncompliance under subdivision 1; 51.34 the participant shall be sanctioned as provided in subdivision 51.35 1, paragraph (b), clause (2), and the requirement that the 51.36 county conduct a review as specified in subdivision 1, paragraph 52.1 (c), remains in effect. 52.2 (c) A participant who first becomes subject to sanction 52.3 under both subdivisions 1 and 2 in the same month is subject to 52.4 sanction as follows: 52.5 (i) in the first month of noncompliance and noncooperation, 52.6 the participant's grant must be reduced by 25 percent of the 52.7 applicabletransitionalstandard, with any residual amount paid 52.8 to the participant; 52.9 (ii) in the second and subsequent months of noncompliance 52.10 and noncooperation, the participant shall be sanctioned as 52.11 provided in subdivision 1, paragraph (b), clause (2). 52.12 The requirement that the county conduct a review as 52.13 specified in subdivision 1, paragraph (c), remains in effect. 52.14 (d) A participant remains subject to sanction under 52.15 subdivision 2 if the participant: 52.16 (i) returns to compliance and is no longer subject to 52.17 sanction under subdivision 1; or 52.18 (ii) has the sanction under subdivision 1, paragraph (b), 52.19 removed upon completion of the review under subdivision 1, 52.20 paragraph (c). 52.21 A participant remains subject to sanction under subdivision 52.22 1, paragraph (b), if the participant cooperates and is no longer 52.23 subject to sanction under subdivision 2. 52.24 Sec. 54. Minnesota Statutes 1998, section 256J.47, 52.25 subdivision 4, is amended to read: 52.26 Subd. 4. [INELIGIBILITY FORMFIP-SMFIP; EMERGENCY 52.27 ASSISTANCE; AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of 52.28 diversionary assistance, the family is ineligible forMFIP-S52.29 MFIP, emergency assistance, and emergency general assistance for 52.30 a period of time. To determine the period of ineligibility, the 52.31 county shall use the following formula: regardless of household 52.32 changes, the county agency must calculate the number of days of 52.33 ineligibility by dividing the diversionary assistance issued by 52.34 thetransitionalMFIP standard of need a family of the same size 52.35 and composition would have received underMFIP-S, or if52.36applicable the interstate transitional standard,MFIP multiplied 53.1 by 30, truncating the result. The ineligibility period begins 53.2 the date the diversionary assistance is issued. 53.3 Sec. 55. Minnesota Statutes 1998, section 256J.48, 53.4 subdivision 2, is amended to read: 53.5 Subd. 2. [ELIGIBILITY.] Notwithstanding other eligibility 53.6 provisions of this chapter, any family without resources 53.7 immediately available to meet emergency needs identified in 53.8 subdivision 3 shall be eligible for an emergency grant under the 53.9 following conditions: 53.10 (1) a family member has resided in this state for at least 53.11 30 days; 53.12 (2) the family is without resources immediately available 53.13 to meet emergency needs; 53.14 (3) assistance is necessary to avoid destitution or provide 53.15 emergency shelter arrangements; 53.16 (4) the family's destitution or need for shelter or 53.17 utilities did not arise because the assistance unit is under 53.18 sanction, the caregiver is disqualified, or the child or 53.19 relative caregiver refused without good cause under section 53.20 256J.57 to accept employment or training for employment in this 53.21 state or another state; and 53.22 (5) at least one child or pregnant woman in the emergency 53.23 assistance unit meetsMFIP-SMFIP citizenship requirements in 53.24 section 256J.11. 53.25 Sec. 56. Minnesota Statutes 1998, section 256J.48, 53.26 subdivision 3, is amended to read: 53.27 Subd. 3. [EMERGENCY NEEDS.] Emergency needs are limited to 53.28 the following: 53.29 (a) [RENT.] A county agency may deny assistance to prevent 53.30 eviction from rented or leased shelter of an otherwise eligible 53.31 applicant when the county agency determines that an applicant's 53.32 anticipated income will not cover continued payment for shelter, 53.33 subject to conditions in clauses (1) to (3): 53.34 (1) a county agency must not deny assistance when an 53.35 applicant can document that the applicant is unable to locate 53.36 habitable shelter, unless the county agency can document that 54.1 one or more habitable shelters are available in the community 54.2 that will result in at least a 20 percent reduction in monthly 54.3 expense for shelter and that this shelter will be cost-effective 54.4 for the applicant; 54.5 (2) when no alternative shelter can be identified by either 54.6 the applicant or the county agency, the county agency shall not 54.7 deny assistance because anticipated income will not cover rental 54.8 obligation; and 54.9 (3) when cost-effective alternative shelter is identified, 54.10 the county agency shall issue assistance for moving expenses as 54.11 provided in paragraph (e). 54.12 (b) [DEFINITIONS.] For purposes of paragraph (a), the 54.13 following definitions apply (1) "metropolitan statistical area" 54.14 is as defined by the United States Census Bureau; (2) 54.15 "alternative shelter" includes any shelter that is located 54.16 within the metropolitan statistical area containing the county 54.17 and for which the applicant is eligible, provided the applicant 54.18 does not have to travel more than 20 miles to reach the shelter 54.19 and has access to transportation to the shelter. Clause (2) 54.20 does not apply to counties in the Minneapolis-St. Paul 54.21 metropolitan statistical area. 54.22 (c) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 54.23 agency shall issue assistance for mortgage or contract for deed 54.24 arrearages on behalf of an otherwise eligible applicant 54.25 according to clauses (1) to (4): 54.26 (1) assistance for arrearages must be issued only when a 54.27 home is owned, occupied, and maintained by the applicant; 54.28 (2) assistance for arrearages must be issued only when no 54.29 subsequent foreclosure action is expected within the 12 months 54.30 following the issuance; 54.31 (3) assistance for arrearages must be issued only when an 54.32 applicant has been refused refinancing through a bank or other 54.33 lending institution and the amount payable, when combined with 54.34 any payments made by the applicant, will be accepted by the 54.35 creditor as full payment of the arrearage; 54.36 (4) costs paid by a family which are counted toward the 55.1 payment requirements in this clause are: principal and interest 55.2 payments on mortgages or contracts for deed, balloon payments, 55.3 homeowner's insurance payments, manufactured home lot rental 55.4 payments, and tax or special assessment payments related to the 55.5 homestead. Costs which are not counted include closing costs 55.6 related to the sale or purchase of real property. 55.7 To be eligible for assistance for costs specified in clause 55.8 (4) which are outstanding at the time of foreclosure, an 55.9 applicant must have paid at least 40 percent of the family's 55.10 gross income toward these costs in the month of application and 55.11 the 11-month period immediately preceding the month of 55.12 application. 55.13 When an applicant is eligible under clause (4), a county 55.14 agency shall issue assistance up to a maximum of four times the 55.15MFIP-SMFIPtransitionalstandard of need for a comparable 55.16 assistance unit. 55.17 (d) [DAMAGE OR UTILITY DEPOSITS.] A county agency shall 55.18 issue assistance for damage or utility deposits when necessary 55.19 to alleviate the emergency. The county may require that 55.20 assistance paid in the form of a damage deposit, less any amount 55.21 retained by the landlord to remedy a tenant's default in payment 55.22 of rent or other funds due to the landlord under a rental 55.23 agreement, or to restore the premises to the condition at the 55.24 commencement of the tenancy, ordinary wear and tear excepted, be 55.25 returned to the county when the individual vacates the premises 55.26 or be paid to the recipient's new landlord as a vendor payment. 55.27 The county may require that assistance paid in the form of a 55.28 utility deposit less any amount retained to satisfy outstanding 55.29 utility costs be returned to the county when the person vacates 55.30 the premises, or be paid for the person's new housing unit as a 55.31 vendor payment. The vendor payment of returned funds shall not 55.32 be considered a new use of emergency assistance. 55.33 (e) [MOVING EXPENSES.] A county agency shall issue 55.34 assistance for expenses incurred when a family must move to a 55.35 different shelter according to clauses (1) to (4): 55.36 (1) moving expenses include the cost to transport personal 56.1 property belonging to a family, the cost for utility connection, 56.2 and the cost for securing different shelter; 56.3 (2) moving expenses must be paid only when the county 56.4 agency determines that a move is cost-effective; 56.5 (3) moving expenses must be paid at the request of an 56.6 applicant, but only when destitution or threatened destitution 56.7 exists; and 56.8 (4) moving expenses must be paid when a county agency 56.9 denies assistance to prevent an eviction because the county 56.10 agency has determined that an applicant's anticipated income 56.11 will not cover continued shelter obligation in paragraph (a). 56.12 (f) [HOME REPAIRS.] A county agency shall pay for repairs 56.13 to the roof, foundation, wiring, heating system, chimney, and 56.14 water and sewer system of a home that is owned and lived in by 56.15 an applicant. 56.16 The applicant shall document, and the county agency shall 56.17 verify the need for and method of repair. 56.18 The payment must be cost-effective in relation to the 56.19 overall condition of the home and in relation to the cost and 56.20 availability of alternative housing. 56.21 (g) [UTILITY COSTS.] Assistance for utility costs must be 56.22 made when an otherwise eligible family has had a termination or 56.23 is threatened with a termination of municipal water and sewer 56.24 service, electric, gas or heating fuel service, refuse removal 56.25 service, or lacks wood when that is the heating source, subject 56.26 to the conditions in clauses (1) and (2): 56.27 (1) a county agency must not issue assistance unless the 56.28 county agency receives confirmation from the utility provider 56.29 that assistance combined with payment by the applicant will 56.30 continue or restore the utility; and 56.31 (2) a county agency shall not issue assistance for utility 56.32 costs unless a family paid at least eight percent of the 56.33 family's gross income toward utility costs due during the 56.34 preceding 12 months. 56.35 Clauses (1) and (2) must not be construed to prevent the 56.36 issuance of assistance when a county agency must take immediate 57.1 and temporary action necessary to protect the life or health of 57.2 a child. 57.3 (h) [SPECIAL DIETS.] Effective January 1, 1998, a county 57.4 shall pay for special diets or dietary items forMFIP-SMFIP 57.5 participants. Persons receiving emergency assistance funds for 57.6 special diets or dietary items are also eligible to receive 57.7 emergency assistance for shelter and utility emergencies, if 57.8 otherwise eligible. The need for special diets or dietary items 57.9 must be prescribed by a licensed physician. Costs for special 57.10 diets shall be determined as percentages of the allotment for a 57.11 one-person household under the Thrifty Food Plan as defined by 57.12 the United States Department of Agriculture. The types of diets 57.13 and the percentages of the Thrifty Food Plan that are covered 57.14 are as follows: 57.15 (1) high protein diet, at least 80 grams daily, 25 percent 57.16 of Thrifty Food Plan; 57.17 (2) controlled protein diet, 40 to 60 grams and requires 57.18 special products, 100 percent of Thrifty Food Plan; 57.19 (3) controlled protein diet, less than 40 grams and 57.20 requires special products, 125 percent of Thrifty Food Plan; 57.21 (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 57.22 (5) high residue diet, 20 percent of Thrifty Food Plan; 57.23 (6) pregnancy and lactation diet, 35 percent of Thrifty 57.24 Food Plan; 57.25 (7) gluten-free diet, 25 percent of Thrifty Food Plan; 57.26 (8) lactose-free diet, 25 percent of Thrifty Food Plan; 57.27 (9) antidumping diet, 15 percent of Thrifty Food Plan; 57.28 (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 57.29 (11) ketogenic diet, 25 percent of Thrifty Food Plan. 57.30 Sec. 57. Minnesota Statutes 1998, section 256J.50, 57.31 subdivision 1, is amended to read: 57.32 Subdivision 1. [EMPLOYMENT AND TRAINING SERVICES COMPONENT 57.33 OFMFIP-SMFIP.] (a) By January 1, 1998, each county must 57.34 develop and implement an employment and training services 57.35 component ofMFIP-SMFIP which is designed to put participants 57.36 on the most direct path to unsubsidized employment. 58.1 Participation in these services is mandatory for allMFIP-SMFIP 58.2 caregivers, unless the caregiver is exempt under section 256J.56. 58.3 (b)A county may provide employment and training services58.4to MFIP-S caregivers who are exempt from the employment and58.5training services component but volunteer for the services.A 58.6 county must provide employment and training services under 58.7 sections 256J.515 to 256J.74 within 30 days after the 58.8 caregiver's participation becomes mandatory under subdivision 5. 58.9 Sec. 58. Minnesota Statutes 1998, section 256J.515, is 58.10 amended to read: 58.11 256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 58.12 During the first meeting with participants, job counselors 58.13 must ensure that an overview of employment and training services 58.14 is provided that: 58.15 (1) stresses the necessity and opportunity of immediate 58.16 employment; 58.17 (2) outlines the job search resources offered; 58.18 (3) outlines education or training opportunities available; 58.19 (4) describes the range of work activities, including 58.20 activities under section 256J.49, subdivision 13, clause (18), 58.21 that are allowable under MFIP-S to meet the individual needs of 58.22 participants; 58.23 (5) explains the requirements to comply with an employment 58.24 plan; 58.25 (6) explains the consequences for failing to comply; and 58.26 (7) explains the services that are available to support job 58.27 search and work and education. 58.28 Failure to attend the overview of employment and training 58.29 services without good cause results in the imposition of a 58.30 sanction under section 256J.46. 58.31 Sec. 59. Minnesota Statutes 1998, section 256J.52, 58.32 subdivision 1, is amended to read: 58.33 Subdivision 1. [APPLICATION LIMITED TO CERTAIN 58.34 PARTICIPANTS.] This section applies to participants receiving 58.35MFIP-SMFIP assistance who are not exempt under section 256J.56, 58.36 and to caregivers who volunteer for employment and training 59.1 servicesunder section 256J.50. 59.2 Sec. 60. Minnesota Statutes 1998, section 256J.52, 59.3 subdivision 3, is amended to read: 59.4 Subd. 3. [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 59.5 after the initial assessment, the job counselor determines that 59.6 the participant possesses sufficient skills that the participant 59.7 is likely to succeed in obtaining suitable employment, the 59.8 participant must conduct job search for a period of up to eight 59.9 weeks, for at least 30 hours per week. The participant must 59.10 accept any offer of suitable employment. Upon agreement by the 59.11 job counselor and the participant, a job search support plan may 59.12 limit a job search to jobs that are consistent with the 59.13 participant's employment goal. The job counselor and 59.14 participant must develop a job search support plan which 59.15 specifies, at a minimum: whether the job search is to be 59.16 supervised or unsupervised; support services that will be 59.17 provided while the participant conducts job search activities; 59.18 the courses necessary to obtain certification or licensure, if 59.19 applicable, and after obtaining the license or certificate, the 59.20 client must comply with subdivision 5; and how frequently the 59.21 participant must report to the job counselor on the status of 59.22 the participant's job search activities. The job search support 59.23 plan may also specify that the participant fulfill a specified 59.24 portion of the required hours of job search through attending 59.25 adult basic education or English as a second language classes. 59.26 (b) During the eight-week job search period, either the job 59.27 counselor or the participant may request a review of the 59.28 participant's job search plan and progress towards obtaining 59.29 suitable employment. If a review is requested by the 59.30 participant, the job counselor must concur that the review is 59.31 appropriate for the participant at that time. If a review is 59.32 conducted, the job counselor may make a determination to conduct 59.33 a secondary assessment prior to the conclusion of the job search. 59.34 (c) Failure to conduct the required job search, to accept 59.35 any offer of suitable employment, to develop or comply with a 59.36 job search support plan, or voluntarily quitting suitable 60.1 employment without good cause results in the imposition of a 60.2 sanction under section 256J.46. If at the end of eight weeks 60.3 the participant has not obtained suitable employment, the job 60.4 counselor must conduct a secondary assessment of the participant 60.5 under subdivision 3. 60.6 Sec. 61. Minnesota Statutes 1998, section 256J.52, 60.7 subdivision 4, is amended to read: 60.8 Subd. 4. [SECONDARY ASSESSMENT.] (a) The job counselor 60.9 must conduct a secondary assessment for those participants who: 60.10 (1) in the judgment of the job counselor, have barriers to 60.11 obtaining employment that will not be overcome with a job search 60.12 support plan under subdivision 3; 60.13 (2) have completed eight weeks of job search under 60.14 subdivision 3 without obtaining suitable employment; 60.15 (3) have not received a secondary assessment, are working 60.16 at least 20 hours per week, and the participant, job counselor, 60.17 or county agency requests a secondary assessment; or 60.18 (4) have an existing job search plan or employment plan 60.19 developed for another program or are already involved in 60.20 training or education activities under section 256J.55, 60.21 subdivision 5. 60.22 (b) In the secondary assessment the job counselor must 60.23 evaluate the participant's skills and prior work experience, 60.24 family circumstances, interests and abilities, need for 60.25 preemployment activities, supportive or educational services, 60.26 and the extent of any barriers to employment. Failure to 60.27 complete a secondary assessment shall result in the imposition 60.28 of a sanction as specified in sections 256J.46 and 256J.57. The 60.29 job counselor must use the information gathered through the 60.30 secondary assessment to develop an employment plan under 60.31 subdivision 5. 60.32 (c) In the secondary assessment the job counselor may 60.33 require the participant to complete an appropriate and 60.34 culturally competent professional chemical use assessment to be 60.35 performed according to the rules promulgated under section 60.36 254A.03, subdivision 3, or a psychological assessment as a 61.1 component of the secondary assessment, when the job counselor 61.2 has a reasonable belief, based on objective evidence, that a 61.3 participant's ability to obtain and retain suitable employment 61.4 is impaired by a medical condition. The job counselor must 61.5 ensure that appropriate services, including child care 61.6 assistance and transportation, are available to the participant 61.7 to meet needs identified by the assessment. Data gathered as 61.8 part of a professional assessment must be classified and 61.9 disclosed according to the provisions specified in section 13.46. 61.10 (d) The provider shall make available to participants 61.11 information regarding additional vendors or resources which 61.12 provide employment and training services that may be available 61.13 to the participant under a plan developed under this 61.14 section. At a minimum, the provider must make available 61.15 information on the following resources: business and higher 61.16 education partnerships operated under the Minnesota job skills 61.17 partnership, community and technical colleges, adult basic 61.18 education programs, and services offered by vocational 61.19 rehabilitation programs. The information must include a brief 61.20 summary of services provided and related performance 61.21 indicators. Performance indicators must include, but are not 61.22 limited to, the average time to complete program offerings, 61.23 placement rates, entry and average wages, and retention rates. 61.24 To be included in the information given to participants, a 61.25 vendor or resource must provide counties with relevant 61.26 information in the format required by the county. 61.27 Sec. 62. Minnesota Statutes 1998, section 256J.52, 61.28 subdivision 5, is amended to read: 61.29 Subd. 5. [EMPLOYMENT PLAN; CONTENTS.] Based on the 61.30 secondary assessment under subdivision 4, the job counselor and 61.31 the participant must develop an employment plan for the 61.32 participant that includes specific activities that are tied to 61.33 an employment goal and a plan for long-term self-sufficiency, 61.34 and that is designed to move the participant along the most 61.35 direct path to unsubsidized employment. The employment plan 61.36 must list the specific steps that will be taken to obtain 62.1 employment and a timetable for completion of each of the steps. 62.2 Upon agreement by the job counselor and the participant, the 62.3 employment plan may limit a job search to jobs that are 62.4 consistent with the participant's employment goal. As part of 62.5 the development of the participant's employment plan, the 62.6 participant shall have the option of selecting from among the 62.7 vendors or resources that the job counselor determines will be 62.8 effective in supplying one or more of the services necessary to 62.9 meet the employment goals specified in the participant's plan. 62.10 In compiling the list of vendors and resources that the job 62.11 counselor determines would be effective in meeting the 62.12 participant's employment goals, the job counselor must determine 62.13 that adequate financial resources are available for the vendors 62.14 or resources ultimately selected by the participant. The job 62.15 counselor and the participant must sign the developed plan to 62.16 indicate agreement between the job counselor and the participant 62.17 on the contents of the plan. 62.18 Sec. 63. Minnesota Statutes 1998, section 256J.52, is 62.19 amended by adding a subdivision to read: 62.20 Subd. 5a. [BASIC EDUCATION ACTIVITIES IN 62.21 PLAN.] Participants with low skills in reading or mathematics 62.22 who are proficient only at or below an eighth-grade level must 62.23 be allowed to include basic education activities or English as a 62.24 second language program in a job search support plan or an 62.25 employment plan, whichever is applicable. 62.26 Sec. 64. Minnesota Statutes 1998, section 256J.54, 62.27 subdivision 2, is amended to read: 62.28 Subd. 2. [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 62.29 PLAN.] For caregivers who are under age 18 without a high school 62.30 diploma or its equivalent, the assessment under subdivision 1 62.31 and the employment plan under subdivision 3 must be completed by 62.32 the social services agency under section 257.33. For caregivers 62.33 who are age 18 or 19 without a high school diploma or its 62.34 equivalent, the assessment under subdivision 1 and the 62.35 employment plan under subdivision 3 must be completed by the job 62.36 counselor or, at county option, by the social services agency 63.1 under section 257.33. Upon reaching age 18 or 19 a caregiver 63.2 who received social services under section 257.33 and is without 63.3 a high school diploma or its equivalent has the option to choose 63.4 whether to continue receiving services under the caregiver's 63.5 plan from the social services agency or to utilize an MFIP 63.6 employment and training service provider. The social services 63.7 agency or the job counselor shall consult with representatives 63.8 of educational agencies that are required to assist in 63.9 developing educational plans under section 124D.331. 63.10 Sec. 65. Minnesota Statutes 1998, section 256J.55, 63.11 subdivision 4, is amended to read: 63.12 Subd. 4. [CHOICE OF PROVIDER.]A participantMFIP 63.13 caregivers must be able to choose from at least two employment 63.14 and training service providers, unless the county has 63.15 demonstrated to the commissioner that the provision of multiple 63.16 employment and training service providers would result in 63.17 financial hardship for the county, or the county is utilizing a 63.18 workforce center as specified in section 256J.50, subdivision 63.19 8. Both parents in a two-parent family must choose the same 63.20 employment and training service provider unless a special need, 63.21 such as bilingual services, is identified but not available 63.22 through one service provider. 63.23 Sec. 66. Minnesota Statutes 1998, section 256J.56, is 63.24 amended to read: 63.25 256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 63.26 EXEMPTIONS.] 63.27 (a) AnMFIP-SMFIP caregiver is exempt from the 63.28 requirements of sections 256J.52 to 256J.55 if the caregiver 63.29 belongs to any of the following groups: 63.30 (1) individuals who are age 60 or older; 63.31 (2) individuals who are suffering from a professionally 63.32 certified permanent or temporary illness, injury, or incapacity 63.33 which is expected to continue for more than 30 days and which 63.34 prevents the person from obtaining or retaining employment. 63.35 Persons in this category with a temporary illness, injury, or 63.36 incapacity must be reevaluated at least quarterly. A caregiver 64.1 who is exempt under this clause for 12 continuous months must 64.2 apply for supplemental security income or social security 64.3 disability benefits as prescribed in section 256J.30, 64.4 subdivision 2; 64.5 (3) caregivers whose presence in the home is required 64.6 because of the professionally certified illness or incapacity of 64.7 another member in the assistance unit, a relative in the 64.8 household, or a foster child in the household; 64.9 (4) women who are pregnant, if the pregnancy has resulted 64.10 in a professionally certified incapacity that prevents the woman 64.11 from obtaining or retaining employment; 64.12 (5) caregivers of a child under the age of one year who 64.13 personally provide full-time care for the child. This exemption 64.14 may be used for only 12 months in a lifetime. In two-parent 64.15 households, only one parent or other relative may qualify for 64.16 this exemption; 64.17 (6) individuals who are single parents, or one parent in a 64.18 two-parent family, employed at least 35 hours per week; 64.19 (7) individuals experiencing a personal or family crisis 64.20 that makes them incapable of participating in the program, as 64.21 determined by the county agency. If the participant does not 64.22 agree with the county agency's determination, the participant 64.23 may seek professional certification, as defined in section 64.24 256J.08, that the participant is incapable of participating in 64.25 the program. 64.26 Persons in this exemption category must be reevaluated 64.27 every 60 days; or 64.28 (8) second parents in two-parent families employed for 20 64.29 or more hours per week, provided the first parent is employed at 64.30 least 35 hours per week. 64.31 A caregiver who is exempt under clause (5) must enroll in 64.32 and attend an early childhood and family education class, a 64.33 parenting class, or some similar activity, if available, during 64.34 the period of time the caregiver is exempt under this section. 64.35 Notwithstanding section 256J.46, failure to attend the required 64.36 activity shall not result in the imposition of a sanction. 65.1 (b) The county agency must provide employment and training 65.2 services toMFIP-SMFIP caregivers who are exempt under this 65.3 section, but who volunteer to participate. Exempt volunteers 65.4 may request approval for any work activity under section 65.5 256J.49, subdivision 13. The hourly participation requirements 65.6 for nonexempt caregivers under section 256J.50, subdivision 5, 65.7 do not apply to exempt caregivers who volunteer to participate. 65.8 Sec. 67. Minnesota Statutes 1998, section 256J.62, 65.9 subdivision 1, is amended to read: 65.10 Subdivision 1. [ALLOCATION.] Money appropriated forMFIP-S65.11 MFIP employment and training services must be allocated to 65.12 counties and eligible tribal providers as specified in this 65.13 section. 65.14 Sec. 68. Minnesota Statutes 1998, section 256J.62, is 65.15 amended by adding a subdivision to read: 65.16 Subd. 2a. [CASELOAD-BASED FUNDS ALLOCATION.] Effective for 65.17 state fiscal year 2000, and for all subsequent years, money 65.18 shall be allocated to counties and eligible tribal providers 65.19 based on their average number of MFIP cases as a proportion of 65.20 the statewide total number of MFIP cases: 65.21 (1) the average number of cases must be based upon counts 65.22 of MFIP or tribal TANF cases as of March 31, June 30, September 65.23 30, and December 31 of the previous calendar year, less the 65.24 number of child only cases and cases where all the caregivers 65.25 are age 60 or over. Two-parent cases, with the exception of 65.26 those with a caregiver age 60 or over, will be multiplied by a 65.27 factor of two; 65.28 (2) the MFIP or tribal TANF case count for each eligible 65.29 tribal provider shall be based upon the number of MFIP or tribal 65.30 TANF cases who are enrolled in, or are eligible for enrollment 65.31 in the tribe; and the case must be an active MFIP case; and the 65.32 case members must reside within the tribal program's service 65.33 delivery area; 65.34 (3) MFIP or tribal TANF cases counted for determining 65.35 allocations to tribal providers shall be removed from the case 65.36 counts of the respective counties where they reside to prevent 66.1 duplicate counts; and 66.2 (4) prior to allocating funds to counties and tribal 66.3 providers, $1,000,000 shall be set aside to allow the 66.4 commissioner to use these set-aside funds to provide funding to 66.5 county or tribal providers who experience an unforeseen influx 66.6 of participants or other emergent situations beyond their 66.7 control. 66.8 Any funds specified in this paragraph that remain unspent by 66.9 March 31 of each year shall be reallocated out to county and 66.10 tribal providers using the funding formula detailed in clauses 66.11 (1) to (4). 66.12 Sec. 69. Minnesota Statutes 1998, section 256J.62, 66.13 subdivision 6, is amended to read: 66.14 Subd. 6. [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 66.15 REFUGEES.] Funds appropriated to cover the costs of bilingual 66.16 employment and training services to refugees shall be allocated 66.17 to county agencies as follows: 66.18 (1) for state fiscal year 1998, the allocation shall be 66.19 based on the county's proportion of the total statewide number 66.20 of AFDC refugee cases in the previous fiscal year. Counties 66.21 with less than one percent of the statewide number of AFDC, 66.22 MFIP-R, or MFIP refugee cases shall not receive an allocation of 66.23 bilingual employment and training services funds; and 66.24 (2) for each subsequent fiscal year, the allocation shall 66.25 be based on the county's proportion of the total statewide 66.26 number ofMFIP-SMFIP refugee cases in the previous fiscal year. 66.27 Counties with less than one percent of the statewide number of 66.28MFIP-SMFIP refugee cases shall not receive an allocation of 66.29 bilingual employment and training services funds. 66.30 Sec. 70. Minnesota Statutes 1998, section 256J.62, 66.31 subdivision 7, is amended to read: 66.32 Subd. 7. [WORK LITERACY LANGUAGE PROGRAMS.] Funds 66.33 appropriated to cover the costs of work literacy language 66.34 programs to non-English-speaking recipients shall be allocated 66.35 to county agencies as follows: 66.36 (1) for state fiscal year 1998, the allocation shall be 67.1 based on the county's proportion of the total statewide number 67.2 of AFDC or MFIP cases in the previous fiscal year where the lack 67.3 of English is a barrier to employment. Counties with less than 67.4 two percent of the statewide number of AFDC or MFIP cases where 67.5 the lack of English is a barrier to employment shall not receive 67.6 an allocation of the work literacy language program funds; and 67.7 (2) for each subsequent fiscal year, the allocation shall 67.8 be based on the county's proportion of the total statewide 67.9 number ofMFIP-SMFIP cases in the previous fiscal year where 67.10 the lack of English is a barrier to employment. Counties with 67.11 less than two percent of the statewide number ofMFIP-SMFIP 67.12 cases where the lack of English is a barrier to employment shall 67.13 not receive an allocation of the work literacy language program 67.14 funds. 67.15 Sec. 71. Minnesota Statutes 1998, section 256J.62, 67.16 subdivision 8, is amended to read: 67.17 Subd. 8. [REALLOCATION.] The commissioner of human 67.18 services shall review county agency expenditures ofMFIP-SMFIP 67.19 employment and training services funds at the end of the third 67.20 quarter of the first year of the biennium and each quarter after 67.21 that and may reallocate unencumbered or unexpended money 67.22 appropriated under this section to those county agencies that 67.23 can demonstrate a need for additional money. 67.24 Sec. 72. Minnesota Statutes 1998, section 256J.62, 67.25 subdivision 9, is amended to read: 67.26 Subd. 9. [CONTINUATION OF CERTAIN SERVICES.] At the 67.27 request of the caregiver, the county may continue to provide 67.28 case management, counseling or other support services to a 67.29 participant following the participant's achievement of the 67.30 employment goal, for up tosix12 months following termination 67.31 of the participant's eligibility forMFIP-SMFIP. 67.32 A county may expend funds for a specific employment and 67.33 training service for the duration of that service to a 67.34 participant if the funds are obligated or expended prior to the 67.35 participant losingMFIP-SMFIP eligibility. 67.36 Sec. 73. Minnesota Statutes 1998, section 256J.67, 68.1 subdivision 4, is amended to read: 68.2 Subd. 4. [EMPLOYMENT PLAN.] (a) The caretaker's employment 68.3 plan must include the length of time needed in the work 68.4 experience program, the need to continue job-seeking activities 68.5 while participating in work experience, and the caregiver's 68.6 employment goals. 68.7 (b) After each six months of a caregiver's participation in 68.8 a work experience job placement, and at the conclusion of each 68.9 work experience assignment under this section, the county agency 68.10 shall reassess and revise, as appropriate, the caregiver's 68.11 employment plan. 68.12 (c) A caregiver may claim good cause under section 256J.57, 68.13 subdivision 1, for failure to cooperate with a work experience 68.14 job placement. 68.15 (d) The county agency shall limit the maximum number of 68.16 hours any participant may work under this section to the amount 68.17 of thetransitionalMFIP standard of need divided by the federal 68.18 or applicable state minimum wage, whichever is higher. After a 68.19 participant has been assigned to a position for nine months, the 68.20 participant may not continue in that assignment unless the 68.21 maximum number of hours a participant works is no greater than 68.22 the amount of thetransitionalMFIP standard of need divided by 68.23 the rate of pay for individuals employed in the same or similar 68.24 occupations by the same employer at the same site. This limit 68.25 does not apply if it would prevent a participant from counting 68.26 toward the federal work participation rate. 68.27 Sec. 74. Minnesota Statutes 1998, section 256J.74, 68.28 subdivision 2, is amended to read: 68.29 Subd. 2. [CONCURRENT ELIGIBILITY, LIMITATIONS.] (a) An 68.30 individual whose needs have been otherwise provided for in 68.31 another state, in whole or in part by county, state, or federal 68.32 dollars during a month, is ineligible to receive MFIP for the 68.33 month. 68.34 (b) A county agency must not count an applicant or 68.35 participant as a member of more than one assistance unit in this 68.36 state in a given payment month, except as provided in clauses 69.1 (1) and (2). 69.2 (1) A participant who is a member of an assistance unitin69.3this stateis eligible to be included in a second assistance 69.4 unit thefirst fullmonth after the month the participant joins 69.5 the second unit. 69.6 (2) An applicant whose needs are met through federal, 69.7 state, or local foster carethat is reimbursed under title IV-E69.8of the Social Security Actpayments for the first part of an 69.9 application month is eligible to receive assistance for the 69.10 remaining part of the month in which the applicant returns 69.11 home.Title IV-EFoster care paymentsand adoption assistance69.12paymentsmust be considered prorated payments rather than a 69.13 duplication ofMFIP-SMFIP need. 69.14 Sec. 75. [256J.751] [COUNTY PERFORMANCE MANAGEMENT.] 69.15 (a) The commissioner shall report quarterly to all counties 69.16 each county's performance on the following measures: 69.17 (1) percent of MFIP caseload working in paid employment; 69.18 (2) percent of MFIP caseload receiving only the food 69.19 portion of assistance; 69.20 (3) number of MFIP cases that have left assistance; 69.21 (4) federal participation requirements as specified in 69.22 title 1 of Public Law Number 104-193; and 69.23 (5) median placement wage. 69.24 (b) By January 1, 2000, the commissioner shall, in 69.25 consultation with counties, develop measures for county 69.26 performance in addition to those in paragraph (a). In 69.27 developing these measures, the commissioner must consider: 69.28 (1) a measure for MFIP cases that leave assistance due to 69.29 employment; 69.30 (2) job retention after participants leave MFIP; 69.31 (3) participant's earnings at a follow-up point after the 69.32 participant has left MFIP; and 69.33 (4) customer satisfaction, including participant and 69.34 employer satisfaction. 69.35 (c) If sanctions occur for failure to meet the performance 69.36 standards specified in title 1 of Public Law Number 104-193 of 70.1 the Personal Responsibility and Work Opportunity Act of 1996, 70.2 the state shall pay 88 percent of the sanction. The remaining 70.3 12 percent of the sanction will be paid by the counties. The 70.4 county portion of the sanction will be distributed across all 70.5 counties in proportion to each county's percentage of the MFIP 70.6 average monthly caseload during the period for which the 70.7 sanction was applied. 70.8 (d) If a county fails to meet the performance standards 70.9 specified in title 1 of Public Law Number 104-193 of the 70.10 Personal Responsibility and Work Opportunity Act of 1996 for any 70.11 year, the commissioner shall work with counties to organize a 70.12 joint state-county technical assistance team to work with the 70.13 county. The commissioner shall coordinate any technical 70.14 assistance with other departments and agencies including the 70.15 departments of economic security and children, families, and 70.16 learning as necessary to achieve the purpose of this paragraph. 70.17 Sec. 76. Minnesota Statutes 1998, section 256J.76, 70.18 subdivision 1, is amended to read: 70.19 Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July 70.20 1, 1997, counties will receive federal funds from the TANF block 70.21 grant for use in supporting eligibility, fraud control, and 70.22 other related administrative functions. The federal funds 70.23 available for distribution, as determined by the commissioner, 70.24 must be an amount equal to federal administrative aid 70.25 distributed for fiscal year 1996 under titles IV-A and IV-F of 70.26 the Social Security Act in effect prior to October 1, 1996. 70.27 This amount must include the amount paid for local 70.28 collaboratives under sections 245.4932 and 256F.13, but must not 70.29 include administrative aid associated with child care under 70.30 section 119B.05, with emergency assistance intensive family 70.31 preservation services under section 256.8711, with 70.32 administrative activities as part of the employment and training 70.33 services under section 256.736, or with fraud prevention 70.34 investigation activities under section 256.983. Before July 15, 70.35 1999, a county may ask for a review of the commissioner's 70.36 determination where the county believes fiscal year 1996 71.1 information was inaccurate or incomplete. By August 15, 1999, 71.2 the commissioner must adjust that county's base when the 71.3 commissioner has determined that inaccurate or incomplete 71.4 information was used to develop that base. The commissioner 71.5 shall adjust the county's 1999 allocation amount to reflect the 71.6 base change. 71.7 Sec. 77. Minnesota Statutes 1998, section 256J.76, 71.8 subdivision 2, is amended to read: 71.9 Subd. 2. [ALLOCATION OF COUNTY FUNDS.] (a) The 71.10 commissioner shall determine and allocate the funds available to 71.11 each county, on a calendar year basis, proportional to the 71.12 amount paid to each county for fiscal year 1996, excluding the 71.13 amount paid for local collaboratives under sections 245.4932 and 71.14 256F.13. For the period beginning July 1, 1997, and ending 71.15 December 31, 1998, each county shall receive 150 percent of its 71.16 base year allocation. 71.17 (b) Beginning January 1, 2000, the commissioner shall 71.18 allocate funds made available under this section on a calendar 71.19 year basis to each county first, in amounts equal to each 71.20 county's guaranteed floor as described in clause (1), second, to 71.21 provide an allocation of up to $2,000 to each county as provided 71.22 for in clause (2), and third, any remaining funds shall be 71.23 allocated in proportion to the sum of each county's average 71.24 monthly MFIP cases plus ten percent of each county's average 71.25 monthly MFIP recipients with budgeted earnings as determined by 71.26 the most recent calendar year data available. 71.27 (1) Each county's guaranteed floor shall be calculated as 71.28 follows: 71.29 (i) 90 percent of that county's allocation in the preceding 71.30 calendar year; or 71.31 (ii) when the amount of funds available is less than the 71.32 guaranteed floor, each county's allocation shall be equal to the 71.33 previous calendar year allocation reduced by the same percentage 71.34 that the statewide allocation was reduced. 71.35 (2) Each county shall be allocated up to $2,000. If, after 71.36 application of the guaranteed floor, funds are insufficient to 72.1 provide $2,000 per county, each county's allocation under this 72.2 clause shall be an equal share of remaining funds available. 72.3 Sec. 78. Minnesota Statutes 1998, section 256J.76, 72.4 subdivision 4, is amended to read: 72.5 Subd. 4. [REPORTING REQUIREMENT AND REIMBURSEMENT.] The 72.6 commissioner shall specify requirements for reporting according 72.7 to section 256.01, subdivision 2, paragraph (17). Each county 72.8 shall be reimbursed at a rate of 50 percent of eligible 72.9 expenditures up to the limit of its allocation. The 72.10 commissioner shall regularly review each county's eligible 72.11 expenditures compared to its allocation. The commissioner may 72.12 reallocate funds at any time, from counties which have not or 72.13 will not have expended their allocations, to counties that have 72.14 eligible expenditures in excess of their allocation. 72.15 Sec. 79. [RECOMMENDATIONS TO 60-MONTH LIMIT.] 72.16 By January 15, 2000, the commissioner of human services 72.17 shall submit to the legislature recommendations regarding MFIP 72.18 families that include an adult caregiver who has received 60 72.19 months of cash assistance funded in whole or in part by the TANF 72.20 block grant. 72.21 Sec. 80. [PROPOSAL REQUIRED.] 72.22 By January 15, 2000, the commissioner shall submit to the 72.23 legislature a proposal for creating an MFIP incentive bonus 72.24 program for high-performing counties. The proposal must include 72.25 recommendations on how to implement a system that would provide 72.26 an incentive bonus to a county that demonstrates high 72.27 performance with respect to the county's MFIP participants, as 72.28 reflected in wage rate measures and career advancement measures 72.29 reported by the county. 72.30 Sec. 81. [ASSESSMENT PROTOCOLS.] 72.31 The commissioner of human services shall consult with 72.32 county agencies, employment and training service providers, the 72.33 commissioner of human rights and advocates to develop protocols 72.34 to guide the implementation of Minnesota Statutes, section 72.35 256J.52, subdivision 4, paragraph (c), as amended. 72.36 Sec. 82. [FATHER PROJECT; TIME-LIMITED WAIVER OF EXISTING 73.1 STATUTORY PROVISIONS.] 73.2 The commissioner of human services shall waive the 73.3 enforcement of any existing specific statutory program 73.4 requirements, administrative rules, and standards, including the 73.5 relevant provisions of the following sections of Minnesota 73.6 Statutes: 73.7 (1) 256.741, subdivision 2, paragraph (a); 73.8 (2) 256J.30, subdivision 11; 73.9 (3) 256J.33, subdivision 4, clause (5); and 73.10 (4) 256J.34, subdivision 1, paragraph (d). 73.11 The waivers permitted under this section are for the limited 73.12 purposes of allowing the entire amount of direct child support 73.13 payments to be passed through for the children of individuals 73.14 participating in the FATHER project and excluding any direct 73.15 child support payments paid by participants in the FATHER 73.16 project as income under the MFIP program for individuals 73.17 receiving the child support payments who also receive MFIP 73.18 assistance. The waiver authority granted by this section 73.19 sunsets on July 1, 2002. 73.20 Sec. 83. [APPROPRIATION.] 73.21 $....... is appropriated from the general fund to the 73.22 commissioner of human services for the biennium ending June 30, 73.23 2001, to offset the increased costs to the state of implementing 73.24 the waivers under section 82. This appropriation is available 73.25 until expended and is available only to the extent that it is 73.26 matched on a dollar for dollar basis by money provided by the 73.27 private philanthropical community. 73.28 Sec. 84. [REPEALER.] 73.29 Minnesota Statutes 1998, sections 256D.051, subdivisions 6 73.30 and 19; 256D.053, subdivision 4; 256J.03; 256J.62, subdivisions 73.31 2, 3, and 5; and Laws 1997, chapter 85, article 1, section 63, 73.32 are repealed.