1.1                          A bill for an act 
  1.2             relating to human services; providing for MNJOBS 
  1.3             program; making changes to MFIP and income assistance 
  1.4             programs; changing assistance programs; changing 
  1.5             health plan regulations; requiring coverage for 
  1.6             treatment of Lyme disease; appropriating money; 
  1.7             amending Minnesota Statutes 1994, sections 53A.09; 
  1.8             62A.047; 256.031, by adding a subdivision; 256.033, by 
  1.9             adding a subdivision; 256.034, by adding a 
  1.10            subdivision; 256.035, subdivisions 1 and 6a; 256.73, 
  1.11            subdivision 1, and by adding subdivisions; 256.736, 
  1.12            subdivisions 1a, 3b, 4, and 12; 256D.06, by adding a 
  1.13            subdivision; 256D.10; 256D.49, subdivision 3; 256E.08, 
  1.14            subdivision 8; and 336.3-206; Minnesota Statutes 1995 
  1.15            Supplement, sections 256.0475, by adding a 
  1.16            subdivision; 256.048, subdivisions 1, 4, 6, and 13; 
  1.17            256.73, subdivision 8; 256.736, subdivisions 10, 10a, 
  1.18            14, and 16; 256.737, subdivision 7; 256.76, 
  1.19            subdivision 1; 256.81; 256D.02, subdivision 12a; 
  1.20            256D.03, subdivisions 2, 2a, and 3; 256D.05, 
  1.21            subdivision 1; 256D.051, subdivisions 1 and 6; 
  1.22            256D.055; and 256D.09, subdivision 1; proposing coding 
  1.23            for new law in Minnesota Statutes, chapters 62A and 
  1.24            256; repealing Minnesota Statutes 1994, section 
  1.25            256.736, subdivisions 10b and 11; Minnesota Statutes 
  1.26            1995 Supplement, section 256.736, subdivision 13. 
  1.27  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.28                             ARTICLE 1
  1.29                           MNJOBS PROGRAM
  1.30     Section 1.  [256.7381] [MNJOBS PROGRAM.] 
  1.31     Subdivision 1.  [CITATION.] Sections 256.7381 to 256.7387 
  1.32  may be cited as the MNJOBS program. 
  1.33     Subd. 2.  [DEFINITIONS.] As used in sections 256.7381 to 
  1.34  256.7387, the following words have the meanings given them. 
  1.35     (a) "Recipient" means an individual who is receiving AFDC. 
  1.36     (b) "Caretaker" means a parent or eligible adult, including 
  2.1   a pregnant woman, who is part of the assistance unit that has 
  2.2   applied for or is receiving AFDC or a grant. 
  2.3      (c) "Child support" means a voluntary or court-ordered 
  2.4   payment by a noncustodial parent. 
  2.5      (d) "Commissioner" means the commissioner of human services.
  2.6      (e) "Employability development plan" or "EDP" means a plan 
  2.7   developed by the recipient, with advice from the employment 
  2.8   advisor, for the purposes of identifying an employment goal, 
  2.9   improving work skills through certification or education, 
  2.10  training or skills recertification, and which addresses barriers 
  2.11  to employment. 
  2.12     (f) "Employment advisor" means a provider staff person who 
  2.13  is qualified to assist the participant to develop a job search 
  2.14  or employability development plan, match the participant with 
  2.15  existing job openings, refer the participant to employers, and 
  2.16  has an extensive knowledge of employers in the area. 
  2.17     (g) "Financial specialist" means a program staff who is 
  2.18  trained to explain the benefits offered under the program, 
  2.19  determine eligibility for different assistance programs, and 
  2.20  broker other resources. 
  2.21     (h) "Participant" means a recipient who is required to 
  2.22  participate in the MNJOBS program. 
  2.23     (i) "Program" means the MNJOBS program. 
  2.24     (j) "Provider" means an employment and training agency 
  2.25  certified by the commissioner of economic security under section 
  2.26  268.871, subdivision 1. 
  2.27     (k) "Suitable employment" means employment which meets 
  2.28  conditions set forth in section 256.736, subdivision 1, clause 
  2.29  (h). 
  2.30     Subd. 3.  [ESTABLISHING THE MNJOBS PROGRAM.] At the request 
  2.31  of a county or counties, the commissioners of human services and 
  2.32  economic security shall develop and establish the MNJOBS 
  2.33  program, which requires recipients of AFDC to meet the 
  2.34  requirements of the program.  The purpose of the program is to: 
  2.35     (1) ensure that the participant is working as soon as 
  2.36  possible; 
  3.1      (2) promote a greater opportunity for economic 
  3.2   self-support, participation, and mobility in the work force; and 
  3.3      (3) minimize the risk for long-term welfare dependency. 
  3.4      Subd. 4.  [COUNTY DESIGN; MNJOBS PROGRAM.] The commissioner 
  3.5   shall issue a notice to counties to submit a plan for developing 
  3.6   and implementing a MNJOBS program.  The plan must be consistent 
  3.7   with provisions of the program. 
  3.8      The commissioner shall not approve a county plan that would 
  3.9   have an adverse impact on the Minnesota family investment 
  3.10  program (MFIP) or the MFIP evaluation.  However, this does not 
  3.11  preclude MFIP counties from operating a MNJOBS program.  If the 
  3.12  plan meets the requirements of the program, the commissioner 
  3.13  shall approve the county plan and the county may implement the 
  3.14  plan.  No county may implement a MNJOBS program without an 
  3.15  approved modification to its local service unit plan in 
  3.16  accordance with section 268.88. 
  3.17     Subd. 5.  [PROGRAM ADMINISTRATION.] The program must be 
  3.18  administered in a way that, in addition to the county agency, 
  3.19  other sectors in the community, such as employers from the 
  3.20  public and private sectors, not-for-profit organizations, 
  3.21  educational and social service agencies, labor unions, and 
  3.22  community-based organizations, are involved. 
  3.23     Subd. 6.  [PROGRAM DESIGN.] The purpose of the program is 
  3.24  to enable immediate labor force participation and assist 
  3.25  families in achieving self-sufficiency.  The program plan must 
  3.26  meet the following principles: 
  3.27     (1) work is the primary means of economic support; 
  3.28     (2) the individual's employment potential is reviewed 
  3.29  during the development of the EDP; 
  3.30     (3) public aid such as cash and medical assistance, child 
  3.31  care, child support, and other cash benefits are used to support 
  3.32  intensive job search and immediate work; and 
  3.33     (4) maximum use is made of tax credits to supplement income.
  3.34     Subd. 7.  [WAIVER REQUESTS.] The commissioner shall request 
  3.35  all waivers of federal law and regulation as soon as possible to 
  3.36  implement the program.  Upon obtaining all necessary federal 
  4.1   waivers, the commissioner shall amend the state plans for the 
  4.2   AFDC and the jobs opportunities and basic skills program (JOBS), 
  4.3   and supportive services plan to coordinate these programs under 
  4.4   the MNJOBS program for the approved counties, and shall seek 
  4.5   approval of state plan amendments. 
  4.6      Subd. 8.  [DUTIES OF COMMISSIONER.] In addition to any 
  4.7   other duties imposed by law, the commissioner shall: 
  4.8      (1) request all waivers to implement the program; 
  4.9      (2) establish the MNJOBS program; 
  4.10     (3) provide systems development and staff training; 
  4.11     (4) accept and supervise the disbursement of any funds that 
  4.12  may be provided from other sources for use in the program; 
  4.13     (5) approve county MNJOBS plans; and 
  4.14     (6) allocate program funds. 
  4.15     Subd. 9.  [DUTIES OF COUNTY AGENCY.] The county agency 
  4.16  shall: 
  4.17     (1) collaborate with the commissioners of human services, 
  4.18  economic security, and other agencies to develop, implement, and 
  4.19  evaluate the demonstration of the program; 
  4.20     (2) operate the program in partnership with private and 
  4.21  public employers, workforce councils, labor unions, and 
  4.22  employment, educational, and social service agencies, and 
  4.23  according to subdivision 5; and 
  4.24     (3) ensure that program components such as client 
  4.25  orientation, immediate job search, job development, creation of 
  4.26  community work experience jobs, job placements, and 
  4.27  postplacement follow-up are implemented according to the MNJOBS 
  4.28  program. 
  4.29     Subd. 10.  [DUTIES OF PARTICIPANT.] To be eligible for 
  4.30  AFDC, a participant shall cooperate with the county agency, the 
  4.31  provider, and the participant's employer in all aspects of the 
  4.32  program. 
  4.33     Sec. 2.  [256.7382] [PROGRAM PARTICIPANTS; PROGRAM 
  4.34  EXPECTATIONS.] 
  4.35     (a) All recipients selected for participation are expected 
  4.36  to meet the requirements of the program.  In determining who may 
  5.1   participate in the program, priority must be given to 
  5.2   individuals who are on the county's project STRIDE waiting list, 
  5.3   and also individuals who have applied for AFDC, and are 
  5.4   subsequently determined to be eligible for STRIDE.  An 
  5.5   individual who is enrolled in STRIDE, and is making satisfactory 
  5.6   progress towards completing the goals in the individual's 
  5.7   approved EDP, may continue with the existing EDP, and is not 
  5.8   required to participate in the MNJOBS program, but may volunteer 
  5.9   to participate in the program. 
  5.10     (b) Caretakers who are exempt from the program may 
  5.11  volunteer to participate in the program.  The caretaker will be 
  5.12  treated as a mandatory participant once an EDP is signed.  
  5.13     (c) Except as provided in paragraph (a), the program shall 
  5.14  supersede the STRIDE program in counties that operate a MNJOBS 
  5.15  program, except in MFIP counties, where STRIDE will be continued 
  5.16  for families assigned to certain research groups. 
  5.17     Sec. 3.  [256.7383] [PROGRAM REQUIREMENTS.] 
  5.18     Subdivision 1.  [NOTIFICATION OF PROGRAM.] At the time of 
  5.19  the face-to-face interview, the applicant or recipient being 
  5.20  recertified must be given a written referral to the orientation 
  5.21  and an appointment date for the EDP.  Orientation must be 
  5.22  completed within ten days of the face-to-face interview.  The 
  5.23  applicant or recipient must also be given the following 
  5.24  information: 
  5.25     (1) notification that, as part of continued receipt of 
  5.26  AFDC, the recipient is required to attend orientation, to be 
  5.27  followed immediately by an assessment and intensive job search; 
  5.28     (2) the program provider, the date, time, and location of 
  5.29  the scheduled program orientation; 
  5.30     (3) the procedures for qualifying for and receiving 
  5.31  benefits under the program; 
  5.32     (4) the immediate availability of supportive services, 
  5.33  including, but not limited to, child care, transportation, 
  5.34  medical assistance, and other work-related aid; 
  5.35     (5) the rights, responsibilities, and obligations of 
  5.36  participants in the program, including, but not limited to, the 
  6.1   grounds for exemptions and deferrals, the consequences for 
  6.2   refusing or failing to participate fully, and the appeal 
  6.3   process; and 
  6.4      (6) a determination of whether the applicant or recipient 
  6.5   is exempt from job search activity. 
  6.6      Subd. 2.  [PROGRAM ORIENTATION.] The county agency or the 
  6.7   provider must give a face-to-face orientation regarding the 
  6.8   program within ten days after the date of face-to-face 
  6.9   interview.  The orientation must be designed to inform the 
  6.10  recipient of: 
  6.11     (1) the importance of locating and obtaining a job as soon 
  6.12  as possible; 
  6.13     (2) benefits to be provided to support work; 
  6.14     (3) how other supportive services such as medical 
  6.15  assistance, child care, transportation, and other work-related 
  6.16  aid shall be available to support job search and work; 
  6.17     (4) the consequences for failure without good cause to 
  6.18  comply with program requirements; and 
  6.19     (5) the appeal process. 
  6.20     Subd. 3.  [ASSESSMENT AND EMPLOYMENT DEVELOPMENT PLAN.] At 
  6.21  the end of orientation, the provider must assign an employment 
  6.22  advisor and a financial specialist to the recipient.  Working 
  6.23  with the recipient, the employment advisor must assess the 
  6.24  recipient and develop an EDP based on the recipient's existing 
  6.25  educational level, available program resources, existing job 
  6.26  markets, prior employment, work experience, and transferable 
  6.27  work skills, unless exempt under subdivision 7.  The EDP must 
  6.28  require caretakers to participate in initial job search 
  6.29  activities for up to four consecutive weeks for at least 30 
  6.30  hours per week and accept suitable employment if offered during 
  6.31  participation in the program unless exempt under subdivision 7, 
  6.32  or subject to the provisions of subdivision 8, or deferred under 
  6.33  subdivision 9.  The job search activities must commence within 
  6.34  30 days of the face-to-face interview. 
  6.35     Subd. 4.  [JOB SEARCH ACTIVITIES.] The following job search 
  6.36  activities may be included in the job search plan: 
  7.1      (a) Job clubs, which shall consist of both of the following:
  7.2      (1) job search workshops, which shall be group training 
  7.3   sessions where participants learn various job finding skills, 
  7.4   including training in basic job seeking skills, job development 
  7.5   skills, job interviewing skills, understanding employer 
  7.6   requirements and expectations, and how to enhance self-esteem, 
  7.7   self-image, and confidence; and 
  7.8      (2) supervised job search, which shall include, but not be 
  7.9   limited to, access to phone banks in a clean and well-lighted 
  7.10  place, job orders, direct referrals to employers, or other 
  7.11  organized methods of seeking work which are overseen, reviewed, 
  7.12  and critiqued by a trained employment professional.  The amount 
  7.13  and type of activity required during this supervised job search 
  7.14  period shall be determined by the employment and training 
  7.15  service provider and the participant, based on the participant's 
  7.16  employment history and need for support services as defined in 
  7.17  section 256.736, subdivision 1a, paragraph (i), and shall be 
  7.18  consistent with regulations developed by the employment and 
  7.19  service training provider. 
  7.20     (b) Unsupervised job search, where the individual shall 
  7.21  seek work in the individual's own way, and make periodic 
  7.22  progress reports no less frequently than every two weeks to the 
  7.23  employment and training service provider. 
  7.24     (c) Job placement, which shall include, but not be limited 
  7.25  to, referrals to jobs listed by employers. 
  7.26     (d) Job development, which shall be active assistance in 
  7.27  seeking employment provided to a participant by a training 
  7.28  employment professional on a one-to-one basis. 
  7.29     (e) Employment counseling, which shall be counseling aimed 
  7.30  at helping a person reach an informed decision on an appropriate 
  7.31  employment goal. 
  7.32     Subd. 5.  [ACTIVITIES FOLLOWING INTENSE JOB SEARCH 
  7.33  ACTIVITIES.] (a) On completion of initial job search activities, 
  7.34  or determination that those services are not required, the 
  7.35  participant shall continue in additional job search activities 
  7.36  or be assigned to one or more of the following activities as 
  8.1   needed to attain the participant's employment goal: 
  8.2      (1) job training, which shall include, but is not limited 
  8.3   to, training employer-specific jobs skills in a classroom or 
  8.4   on-site setting, including training provided by local private 
  8.5   industry council programs; 
  8.6      (2)(i) community work experience, which shall include work 
  8.7   for a public or nonprofit agency that helps to provide basic job 
  8.8   skills; enhance existing job skills in a position related to a 
  8.9   participant's experience, training, or education; or provide a 
  8.10  needed community service.  Community work experience must be 
  8.11  operated in accordance with section 256.737; and 
  8.12     (ii) the continuation of the participant seeking employment 
  8.13  during the community work experience assignment.  The 
  8.14  participant may request job search services; 
  8.15     (3) adult basic education, which shall include reading, 
  8.16  writing, arithmetic, high school proficiency or general 
  8.17  education development certificate instruction, and 
  8.18  English-as-a-second-language (ESL), including vocational ESL, to 
  8.19  the extent necessary to attain the participant's employment 
  8.20  goal.  Vocational ESL shall be intensive instruction in English 
  8.21  for non-English-speaking participants, coordinated with specific 
  8.22  job training; or 
  8.23     (4) college and community college education, when that 
  8.24  education provides employment skills training that can 
  8.25  reasonably be expected to lead to employment and be limited to 
  8.26  two years. 
  8.27     (b) The assignment to one or more of the program activities 
  8.28  as required in paragraph (a), shall be based on the EDP 
  8.29  developed after an assessment.  The EDP shall be based, at a 
  8.30  minimum, on consideration of the individual's existing education 
  8.31  level, employment experience and goals, available program 
  8.32  resources, and local labor market opportunities.  The assessment 
  8.33  and EDP must comply with section 256.736, subdivision 10, 
  8.34  clauses (14) and (15). 
  8.35     (c) A participant who lacks basic literacy or mathematics 
  8.36  skills, a high school diploma or general education development 
  9.1   certificate, or English language skills, may be assigned to 
  9.2   participate in adult basic education, as appropriate and 
  9.3   necessary for achievement of the individual's employment goal. 
  9.4      (d) Participation in activities assigned pursuant to this 
  9.5   section may be sequential or concurrent.  The provider may 
  9.6   require concurrent participation in the assigned activities if 
  9.7   it is appropriate to the participant's abilities, consistent 
  9.8   with the participant's EDP, and the activities can be 
  9.9   concurrently scheduled.  However, to the extent possible, 
  9.10  activities should be full time.  The combined hours of 
  9.11  participation in assigned concurrent activities shall not exceed 
  9.12  32 hours per week for an individual who has primary 
  9.13  responsibility for personally providing care to a child under 
  9.14  six years of age or 40 hours per week for any other individual.  
  9.15  The maximum number of hours any participant may be required to 
  9.16  participate in activities under this subdivision is a number 
  9.17  equal to the amount of AFDC payable to the recipient divided by 
  9.18  the greater of the federal minimum wage or the applicable state 
  9.19  minimum wages. 
  9.20     Subd. 6.  [IMMEDIATE JOB SEARCH.] A recipient is required 
  9.21  to begin job search activities within 30 days after the 
  9.22  face-to-face interview for at least 30 hours per week for up to 
  9.23  four weeks, unless exempt under subdivision 7, subject to the 
  9.24  provisions of subdivision 8, or deferred under subdivision 9.  
  9.25  Notwithstanding section 256H.11, subdivision 1, for purposes of 
  9.26  the program the limit on job search child care is 480 hours 
  9.27  annually.  For a recipient who is working at least 20 hours per 
  9.28  week, job search must consist of 12 hours per week for up to 
  9.29  eight weeks.  The recipient is required to carry out the other 
  9.30  activities under the EDP developed under subdivision 3. 
  9.31     Subd. 7.  [EXEMPTION CATEGORIES.] The recipient is exempted 
  9.32  from mandatory participation in all activities except 
  9.33  orientation, if the recipient belongs to any of the following 
  9.34  groups: 
  9.35     (1) caretakers under age 20 who have not completed a high 
  9.36  school education and are attending high school or an equivalency 
 10.1   program under section 256.736, subdivision 3b; 
 10.2      (2) individuals who are age 60 or older; 
 10.3      (3) individuals who are suffering from a professionally 
 10.4   certified permanent or temporary illness, injury, or incapacity 
 10.5   which is expected to continue for more than 30 days and which 
 10.6   prevents the person from obtaining or retaining employment; 
 10.7      (4) caretakers whose presence in the home is needed because 
 10.8   of illness or incapacity of another member in the household; 
 10.9      (5) women who are pregnant, if it has been medically 
 10.10  verified that the child is expected to be born within the next 
 10.11  six months; 
 10.12     (6) caretakers or other caretaker relatives of a child 
 10.13  under the age of three years who personally provide full-time 
 10.14  care for the child.  In AFDC-UP cases, only one parent or other 
 10.15  relative may qualify for this exemption; 
 10.16     (7) individuals employed at least 30 hours per week; 
 10.17     (8) individuals for whom participation would require a 
 10.18  round trip commuting time by available transportation of more 
 10.19  than two hours, excluding transporting of children for child 
 10.20  care; 
 10.21     (9) a child under age 16, or a child age 16 or 17 who is 
 10.22  attending elementary or secondary school or a secondary-level 
 10.23  vocational or technical school full time; or 
 10.24     (10) individuals experiencing a personal or family crisis 
 10.25  which make them incapable of participating in the program, as 
 10.26  determined by the county. 
 10.27     Subd. 8.  [AFDC-UP RECIPIENTS.] All recipients under the 
 10.28  AFDC-UP program are required to meet the requirements of the job 
 10.29  search program under section 256.736, subdivision 14, and the 
 10.30  community work experience program under section 256.737. 
 10.31     Subd. 9.  [DEFERRAL FROM JOB SEARCH REQUIREMENT.] The 
 10.32  recipient may be deferred from the requirement to conduct at 
 10.33  least 30 hours of job search per week for up to four consecutive 
 10.34  weeks, if during the development of the EDP, the recipient is 
 10.35  determined to: 
 10.36     (1) be within two years of completing a post-secondary 
 11.1   training program that is likely to lead to employment provided 
 11.2   the recipient is attending school full time.  The recipient must 
 11.3   agree to develop and carry out an EDP which includes jobs search 
 11.4   immediately after the training is completed; 
 11.5      (2) be in treatment for chemical dependency, be a victim of 
 11.6   domestic abuse, or be homeless, provided that the recipient 
 11.7   agrees to develop an EDP, and immediately follow through with 
 11.8   the activities in the EDP.  The EDP must include specific 
 11.9   outcomes that the recipient must achieve for the duration of the 
 11.10  EDP and activities that are needed to address the issues 
 11.11  identified.  Under this clause, the recipient may be deferred 
 11.12  for up to three months; 
 11.13     (3) lack proficiency in English which is a barrier to 
 11.14  employment, provided such individuals are successfully 
 11.15  participating in an ESL program.  Caretakers can be deferred for 
 11.16  ESL for no longer than 12 months.  The EDP shall establish an 
 11.17  education plan which assigns caretakers to ESL programs 
 11.18  available in the community that provide the quickest advancement 
 11.19  of the caretaker's language skills; or 
 11.20     (4) need refresher courses for purposes of obtaining 
 11.21  professional certification or licensure, provided the plans are 
 11.22  approved in the EDP. 
 11.23     Subd. 10.  [DUTY TO REPORT.] The participant must 
 11.24  immediately inform the provider of any changes related to the 
 11.25  participant's employment status. 
 11.26     Sec. 4.  [256.7384] [COMMUNITY WORK EXPERIENCE PROGRAM FOR 
 11.27  SINGLE-PARENT FAMILIES.] 
 11.28     To the extent that funds are available or appropriated, 
 11.29  recipients who are participating in the program and are not 
 11.30  working in unsubsidized employment within 24 months are required 
 11.31  to participate in a community work experience program in 
 11.32  accordance with section 256.737. 
 11.33     Sec. 5.  [256.7385] [MOVE TO A DIFFERENT COUNTY.] 
 11.34     If the recipient who is required to participate in the 
 11.35  program moves to a different county, the benefits and enabling 
 11.36  services agreed upon in the EDP must be provided by the pilot 
 12.1   county where the recipient originated.  If the recipient is 
 12.2   moving to a different county and has failed to comply with the 
 12.3   requirements of the program, the recipient is not eligible for 
 12.4   AFDC for at least six months from the date of the move. 
 12.5      Sec. 6.  [256.7386] [SANCTIONS AND APPEAL PROCESS.] 
 12.6      The same sanctions and appeals imposed and available to 
 12.7   recipients of AFDC under this chapter shall be imposed and 
 12.8   available to participants in the MNJOBS program. 
 12.9      Sec. 7.  [256.7387] [PROGRAM FUNDING.] 
 12.10     (a)  [FUNDING.] After ensuring that all persons required to 
 12.11  participate in the county's food stamp employment and training 
 12.12  program will be served under that program, any remaining 
 12.13  unexpended state funds from the county's food stamp employment 
 12.14  and training program allocation for that fiscal year may be 
 12.15  combined with the county's Project STRIDE allocation for that 
 12.16  same fiscal year and are available to administer the program. 
 12.17     (b)  [TRANSFER OF ACCESS CHILD CARE FUNDS.] After the end 
 12.18  of the third quarter of the state fiscal year, any unencumbered 
 12.19  ACCESS funds of a county participating in the program shall be 
 12.20  transferred to the county's base sliding fee fund to be used to 
 12.21  provide child care to AFDC recipients beyond the one-year 
 12.22  transition period.  In determining the baseline funding for the 
 12.23  ACCESS and basic sliding fee programs, the commissioners of 
 12.24  finance and human services shall ignore any transfers made under 
 12.25  this section. 
 12.26     (c)  [USE OF CHILD CARE.] Participants in the program are 
 12.27  eligible for STRIDE child care funds. 
 12.28     (d)  [LEVERAGING GRANT AMOUNT TO SECURE OTHER FUNDS.] The 
 12.29  county agency or the provider in cooperation with the 
 12.30  commissioner may leverage the grant amount to secure other funds 
 12.31  from employers, foundations, and the community for the purpose 
 12.32  of developing additional components to benefit children and 
 12.33  improve the program. 
 12.34     Sec. 8.  [INCOME DISREGARDS.] 
 12.35     A participating county may utilize the county's own funds 
 12.36  in order to provide higher income disregards to recipients 
 13.1   participating in the program. 
 13.2      Sec. 9.  [WAIVER AUTHORITY.] 
 13.3      The commissioner of human services is authorized to seek 
 13.4   all necessary waivers to implement sections 1 to 8.  The waiver 
 13.5   requests must be submitted by the commissioner as part of the 
 13.6   federal waiver package authorized by Laws 1995, chapter 178, 
 13.7   article 2, section 46. 
 13.8      Sec. 10.  [APPROPRIATION.] 
 13.9      $102,000 is appropriated from the general fund to the 
 13.10  commissioner of human services for the fiscal year ending June 
 13.11  30, 1997, for purposes of applying for necessary federal waivers 
 13.12  to implement the program, and administering the MNJOBS program. 
 13.13     Sec. 11.  [EFFECTIVE DATE.] 
 13.14     Section 9 is effective July 1, 1996.  For purposes of 
 13.15  sections 1 to 8, the commissioner may allow the implementation 
 13.16  of the MNJOBS program in counties that have been approved by the 
 13.17  commissioner as early as April 1, 1997, but no later than July 
 13.18  1, 1997. 
 13.19                             ARTICLE 2
 13.20     MFIP AND INCOME ASSISTANCE CHANGES BASED ON FEDERAL REFORM
 13.21     Section 1.  [MFIP; LEGISLATIVE POLICY.] 
 13.22     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
 13.23  recognizes that: 
 13.24     (1) changes in federal law and federal funding may 
 13.25  necessitate changes to Minnesota's public assistance programs; 
 13.26     (2) Minnesota is in the process of testing and evaluating 
 13.27  the Minnesota family investment plan, a program that will change 
 13.28  public assistance programs in Minnesota; and 
 13.29     (3) the Minnesota family investment plan embodies the 
 13.30  principles that should guide Minnesota in implementing changes 
 13.31  necessitated by federal law and federal funding. 
 13.32     Subd. 2.  [WELFARE REFORM PROPOSAL.] (a) The commissioner 
 13.33  shall present the 1997 legislature with a proposal to modify the 
 13.34  Minnesota family investment plan for statewide implementation.  
 13.35  The proposed program must be designed around the following goals:
 13.36     (1) to support work; 
 14.1      (2) to foster personal responsibility; 
 14.2      (3) to support the family; 
 14.3      (4) to simplify the welfare system; 
 14.4      (5) to prevent dependency; and 
 14.5      (6) to enable families to achieve sustained 
 14.6   self-sufficiency. 
 14.7      (b) The proposed program shall provide assistance to all 
 14.8   families with minor children and individuals who meet program 
 14.9   eligibility rules and comply with program requirements and may 
 14.10  set limits on the number of years or months of assistance. 
 14.11     (c) In designing the proposal, the commissioner shall 
 14.12  consider: 
 14.13     (1) evaluation results from the Minnesota family investment 
 14.14  plan; 
 14.15     (2) any evaluation or other information regarding the 
 14.16  results of the work focused, work first, MNJOBS, and STRIDE 
 14.17  programs; 
 14.18     (3) evaluations from any programs which have increased 
 14.19  income disregards for working recipient families; and 
 14.20     (4) program and fiscal analysis of the impact of federal 
 14.21  laws, including proposals to simplify or block grant the food 
 14.22  stamp program. 
 14.23     (d) The commissioner shall consider the following 
 14.24  additional policy options in developing the proposal: 
 14.25     (1) consolidate all income assistance programs into a 
 14.26  single program; 
 14.27     (2) integrate the food stamp program more closely with 
 14.28  income assistance program; 
 14.29     (3) provide disregards of earned income that are not time 
 14.30  limited; 
 14.31     (4) establish asset limits which appropriately reflect the 
 14.32  needs of working families; 
 14.33     (5) provide for flexibility in establishing grant standards 
 14.34  which can be adapted to different needs of assistance units and 
 14.35  to different work and training requirements in order to maximize 
 14.36  successful outcomes; 
 15.1      (6) use of wage subsidies to increase employment 
 15.2   opportunities; 
 15.3      (7) development of individual asset accounts; 
 15.4      (8) expansion of employment and training options to include 
 15.5   the option of small business training; 
 15.6      (9) establishment of a loan or grant fund for transition to 
 15.7   work needs not covered under the grant; 
 15.8      (10) contingent on inclusion of clause (3), provide an 
 15.9   initial period of assistance, not to exceed six months, after 
 15.10  which the grant standard for all assistance units would be 
 15.11  reduced.  After this initial period: 
 15.12     (i) assistance units in which all adults are incapacitated, 
 15.13  as defined by the commissioner, would receive a supplement that 
 15.14  raises the unit's grant standard back to the standard of the 
 15.15  initial period; 
 15.16     (ii) assistance units not included in item (i) could earn 
 15.17  back a portion of the grant reduction by participating in 
 15.18  employment and training services; and 
 15.19     (iii) for assistance units not included in item (i), 
 15.20  earnings equal to the grant reduction would be entirely 
 15.21  disregarded in determining benefits; 
 15.22     (11) pay child support directly to custodial parents 
 15.23  receiving income assistance and budget all or part of the child 
 15.24  support amount against the income assistance benefit; 
 15.25     (12) address the question of providing assistance to 
 15.26  Minnesota residents who are legal noncitizens; 
 15.27     (13) divert applicants from using public assistance through 
 15.28  early intervention focused on meeting immediate needs; and 
 15.29     (14) implement an outcome-based quality assurance program 
 15.30  that measures the effectiveness of transitional support services 
 15.31  by defining target groups, program goals, outcome indicators, 
 15.32  data collection methods, and performance targets. 
 15.33     Sec. 2.  [INCOME ASSISTANCE PROGRAMS; FEDERAL POLICY 
 15.34  INITIATIVE.] 
 15.35     If the 104th Congress makes significant policy or funding 
 15.36  changes that affect income assistance, the commissioner of human 
 16.1   services shall develop a proposal that includes recommendations 
 16.2   for the legislature which address these changes. 
 16.3      Further, the commissioners of human services, health, 
 16.4   economic security, and children, families, and learning, shall, 
 16.5   upon request of a county, work with and jointly develop a 
 16.6   proposal that permits the county to merge funding and services 
 16.7   in order to meet the individual needs of eligible clients.  The 
 16.8   proposal and draft legislation are due to the chairs of the 
 16.9   senate family services committee and health and human services 
 16.10  finance division, and the house of representatives human 
 16.11  services committee and health and human services finance 
 16.12  division by December 1, 1996.  
 16.13                             ARTICLE 3 
 16.14                     ASSISTANCE PROGRAM CHANGES
 16.15     Section 1.  Minnesota Statutes 1994, section 53A.09, is 
 16.16  amended to read: 
 16.17     53A.09 [POWERS; LIMITATIONS; PROHIBITIONS.] 
 16.18     Subdivision 1.  [DEPOSITS; ESCROW ACCOUNTS.] A currency 
 16.19  exchange may not accept money or currency for deposit, or act as 
 16.20  bailee or agent for persons, firms, partnerships, associations, 
 16.21  or corporations to hold money or currency in escrow for others 
 16.22  for any purpose.  However, a currency exchange may act as agent 
 16.23  for the issuer of money orders or travelers' checks. 
 16.24     Subd. 2.  [GAMBLING ESTABLISHMENTS.] A currency exchange 
 16.25  located on the premises of a gambling establishment as defined 
 16.26  in section 256.9831, subdivision 1, may not cash a warrant that 
 16.27  bears a restrictive endorsement under section 256.9831, 
 16.28  subdivision 3. 
 16.29     Sec. 2.  Minnesota Statutes 1994, section 256.031, is 
 16.30  amended by adding a subdivision to read: 
 16.31     Subd. 1a.  [USE OF FEDERAL AUTHORITY.] Federal authority as 
 16.32  cited in sections 256.031 to 256.0361 and section 256.047 is 
 16.33  reference to the United States Code, title 42, section 601, 
 16.34  United States Code, title 42, section 602, section 402 of the 
 16.35  Social Security Act, and Code of Federal Regulations, title 45, 
 16.36  as constructed on the day prior to their federal repeal. 
 17.1      Sec. 3.  Minnesota Statutes 1994, section 256.033, is 
 17.2   amended by adding a subdivision to read: 
 17.3      Subd. 6.  [RECOVERY OF ATM ERRORS.] For recipients 
 17.4   receiving benefits via electronic benefit transfer, if the 
 17.5   recipient is overpaid as a result of an automated teller machine 
 17.6   (ATM) dispensing funds in error to the recipient, the agency may 
 17.7   recover the ATM error by immediately withdrawing funds from the 
 17.8   recipient's electronic benefit transfer account, up to the 
 17.9   amount of the error. 
 17.10     Sec. 4.  Minnesota Statutes 1994, section 256.034, is 
 17.11  amended by adding a subdivision to read: 
 17.12     Subd. 6.  [PAYMENT METHODS.] Minnesota family investment 
 17.13  plan grant payments may be issued in the form of warrants 
 17.14  immediately redeemable in cash, electronic benefits transfer, or 
 17.15  by direct deposit into the recipient's account in a financial 
 17.16  institution. 
 17.17     Sec. 5.  Minnesota Statutes 1994, section 256.035, 
 17.18  subdivision 1, is amended to read: 
 17.19     Subdivision 1.  [EXPECTATIONS.] All families eligible for 
 17.20  assistance under the family investment plan who are assigned to 
 17.21  a test group in the evaluation as provided in section 256.031, 
 17.22  subdivision 3, paragraph (d), are expected to be in transitional 
 17.23  status as defined in section 256.032, subdivision 12.  To be 
 17.24  considered in transitional status, families must meet the 
 17.25  following expectations: 
 17.26     (a) For a family headed by a single adult parental 
 17.27  caregiver, the expectation is that the parental caregiver will 
 17.28  independently pursue self-sufficiency until the family has 
 17.29  received assistance for 24 months within the preceding 36 
 17.30  months.  Beginning with the 25th month of assistance, the parent 
 17.31  must be developing or complying with the terms of the family 
 17.32  support agreement.  
 17.33     (b) For a family with a minor parental caregiver or a 
 17.34  family whose parental caregiver is 18 or 19 years of age and 
 17.35  does not have a high school diploma or its equivalent, the 
 17.36  expectation is that, concurrent with the receipt of assistance, 
 18.1   the parental caregiver must be developing or complying with a 
 18.2   family support agreement.  The terms of the family support 
 18.3   agreement must include compliance with section 256.736, 
 18.4   subdivision 3b.  However, if the assistance unit does not comply 
 18.5   with section 256.736, subdivision 3b, the sanctions in 
 18.6   subdivision 3 apply.  
 18.7      (c) For a family with two adult parental caregivers, the 
 18.8   expectation is that at least one parent will independently 
 18.9   pursue self-sufficiency until the family has received assistance 
 18.10  for six months within the preceding 12 months.  Beginning with 
 18.11  the seventh month of assistance, one parent must be developing 
 18.12  or complying with the terms of the family support agreement.  To 
 18.13  the extent of available resources and provided the other 
 18.14  caregiver is proficient in English, the commissioner may require 
 18.15  that both caregivers in a family with two adult parental 
 18.16  caregivers, in which the youngest child has attained the age of 
 18.17  six and is not in kindergarten, must be developing or complying 
 18.18  with the terms of a family support agreement by the seventh 
 18.19  month on assistance.  A caregiver shall be determined proficient 
 18.20  in English if the county agency, or its employment and training 
 18.21  service provider, determines that the person has sufficient 
 18.22  English language capabilities to become suitably employed.  
 18.23     If, as of July 1, 1996, the other caretaker is enrolled in 
 18.24  a post-secondary education or training program that is limited 
 18.25  to one year and can reasonably be expected to lead to 
 18.26  employment, that caretaker is exempt from job search and work 
 18.27  experience for a period of one year or until the caretaker stops 
 18.28  attending the post-secondary program, whichever is shorter. 
 18.29     Sec. 6.  Minnesota Statutes 1994, section 256.035, 
 18.30  subdivision 6a, is amended to read: 
 18.31     Subd. 6a.  [CASE MANAGEMENT SERVICES.] (a) The county 
 18.32  agency will provide case management services to caregivers 
 18.33  required to develop and comply with a family support agreement 
 18.34  as provided in subdivision 1.  For minor parents, the 
 18.35  responsibility of the case manager shall be as defined in 
 18.36  section 256.736, subdivision 3b.  Sanctions for failing to 
 19.1   develop or comply with the terms of a family support agreement 
 19.2   shall be imposed according to subdivision 3.  When a minor 
 19.3   parent reaches age 17, or earlier if determined necessary by the 
 19.4   social service agency, the minor parent shall be referred for 
 19.5   case management services.  
 19.6      (b) Case managers shall provide the following services: 
 19.7      (1) the case manager shall provide or arrange for an 
 19.8   assessment of the family and caregiver's needs, interests, and 
 19.9   abilities according to section 256.736, subdivision 11, 
 19.10  paragraph (a), clause (1); 
 19.11     (2) the case manager shall coordinate services according to 
 19.12  section 256.736, subdivision 11, paragraph (a), clause (3); 
 19.13     (3) the case manager shall develop an employability plan 
 19.14  according to subdivision 6b; 
 19.15     (4) the case manager shall develop a family support 
 19.16  agreement according to subdivision 6c; and 
 19.17     (5) the case manager shall monitor the caregiver's 
 19.18  compliance with the employability plan and the family support 
 19.19  agreement as required by the commissioner.  
 19.20     (c) Case management counseling and personal assistance 
 19.21  services may continue for up to six months following the 
 19.22  caregiver's achievement of employment goals.  Funds for specific 
 19.23  employment and training services may be expended for up to 90 
 19.24  days after the caregiver loses eligibility for financial 
 19.25  assistance. 
 19.26     Sec. 7.  Minnesota Statutes 1995 Supplement, section 
 19.27  256.0475, is amended by adding a subdivision to read: 
 19.28     Subd. 2a.  [INTENSIVE ESL.] "Intensive ESL" means an 
 19.29  English as a second language program that offers at least 20 
 19.30  hours of class per week. 
 19.31     Sec. 8.  Minnesota Statutes 1995 Supplement, section 
 19.32  256.048, subdivision 1, is amended to read: 
 19.33     Subdivision 1.  [EXPECTATIONS.] The requirement for a 
 19.34  caregiver to develop a family support agreement is tied to the 
 19.35  structure of the family and the length of time on assistance 
 19.36  according to paragraphs (a) to (c). 
 20.1      (a) In a family headed by a single adult parental caregiver 
 20.2   who has received AFDC, family general assistance, MFIP, or a 
 20.3   combination of AFDC, family general assistance, and MFIP 
 20.4   assistance for 12 or more months within the preceding 24 months, 
 20.5   the parental caregiver must be developing and complying with the 
 20.6   terms of the family support agreement commencing with the 13th 
 20.7   month of assistance. 
 20.8      (b) For a family with a minor parental caregiver or a 
 20.9   family whose parental caregiver is 18 or 19 years of age and 
 20.10  does not have a high school diploma or its equivalent, the 
 20.11  parental caregiver must be developing and complying with a 
 20.12  family support agreement concurrent with the receipt of 
 20.13  assistance.  The terms of the family support agreement must 
 20.14  include compliance with section 256.736, subdivision 3b.  If the 
 20.15  parental caregiver fails to comply with the terms of the family 
 20.16  support agreement, the sanctions in subdivision 4 apply.  When 
 20.17  the requirements in section 256.736, subdivision 3b, have been 
 20.18  met, a caregiver has fulfilled the caregiver's obligation.  
 20.19  County agencies must continue to offer MFIP-R services if the 
 20.20  caregiver wants to continue with an employability plan.  
 20.21  Caregivers who fulfill the requirements of section 256.736, 
 20.22  subdivision 3b, are subject to the expectations of paragraphs 
 20.23  (a) and (c). 
 20.24     (c) In a family with two adult parental caregivers, at 
 20.25  least one of whom has received AFDC, family general assistance, 
 20.26  MFIP, or a combination of AFDC, family general assistance, and 
 20.27  MFIP assistance for six or more months within the preceding 12 
 20.28  months, one parental caregiver must be developing and complying 
 20.29  with the terms of the family support agreement commencing with 
 20.30  the seventh month of assistance.  The family and MFIP-R staff 
 20.31  will designate the parental caregiver who will develop the 
 20.32  family support agreement based on which parent has the greater 
 20.33  potential to increase family income through immediate 
 20.34  employment.  To the extent of available resources and provided 
 20.35  the other caregiver is proficient in English, the commissioner 
 20.36  may require that both caregivers in a family with two adult 
 21.1   parental caregivers, in which the youngest child has attained 
 21.2   the age of six and is not in kindergarten, must be developing or 
 21.3   complying with the terms of a family support agreement by the 
 21.4   seventh month on assistance.  A caregiver shall be determined 
 21.5   proficient in English if the county agency, or its employment 
 21.6   and training service provider, determines that the person has 
 21.7   sufficient English language capabilities to become suitably 
 21.8   employed. 
 21.9      If, as of July 1, 1996, the other caretaker is enrolled in 
 21.10  a post-secondary education or training program that is limited 
 21.11  to one year and can reasonably be expected to lead to 
 21.12  employment, that caretaker is exempt from job search and work 
 21.13  experience for a period of one year or until the caretaker stops 
 21.14  attending the post-secondary program, whichever is shorter. 
 21.15     Sec. 9.  Minnesota Statutes 1995 Supplement, section 
 21.16  256.048, subdivision 4, is amended to read: 
 21.17     Subd. 4.  [SANCTION.] The county agency must reduce an 
 21.18  assistance unit's assistance payment by ten percent of the 
 21.19  transitional standard for the applicable family size when a 
 21.20  caregiver, who is not exempt from the expectations in this 
 21.21  section, fails to attend a mandatory briefing, fails to attend 
 21.22  scheduled meetings with MFIP-R staff, terminates employment 
 21.23  without good cause, or fails to develop or comply with the terms 
 21.24  of the caregiver's family support agreement.  MFIP-R staff must 
 21.25  send caregivers a notice of intent to sanction.  For the purpose 
 21.26  of this section, "notice of intent to sanction" means MFIP-R 
 21.27  staff must provide written notification to the caregiver that 
 21.28  the caregiver is not fulfilling the requirement to develop or 
 21.29  comply with the family support agreement.  This notification 
 21.30  must inform the caregiver of the right to request a conciliation 
 21.31  conference within ten days of the mailing of the notice of 
 21.32  intent to sanction or the right to request a fair hearing under 
 21.33  section 256.045.  If a caregiver requests a conciliation 
 21.34  conference, the county agency must postpone implementation of 
 21.35  the sanction pending completion of the conciliation conference.  
 21.36  If the caregiver does not request a conciliation conference 
 22.1   within ten calendar days of the mailing of the notice of intent 
 22.2   to sanction, the MFIP-R staff must notify the county agency that 
 22.3   the assistance payment should be reduced. 
 22.4      Upon notification from MFIP-R staff that an assistance 
 22.5   payment should be reduced, the county agency must send a notice 
 22.6   of adverse action to the caregiver stating that the assistance 
 22.7   payment will be reduced in the next month following the ten-day 
 22.8   notice requirement and state the reason for the action.  For the 
 22.9   purpose of this section, "notice of adverse action" means the 
 22.10  county agency must send a notice of sanction, reduction, 
 22.11  suspension, denial, or termination of benefits before taking any 
 22.12  of those actions.  The caregiver may request a fair hearing 
 22.13  under section 256.045, upon notice of intent to sanction or 
 22.14  notice of adverse action, but the conciliation conference is 
 22.15  available only upon notice of intent to sanction. 
 22.16     Sec. 10.  Minnesota Statutes 1995 Supplement, section 
 22.17  256.048, subdivision 6, is amended to read: 
 22.18     Subd. 6.  [PRE-EMPLOYMENT AND EMPLOYMENT SERVICES.] The 
 22.19  county agency must provide services identified in clauses (1) to 
 22.20  (10).  Services include: 
 22.21     (1) a required briefing for all nonmandatory caregivers 
 22.22  assigned to MFIP-R, which includes a review of the information 
 22.23  presented at an earlier MFIP-R orientation pursuant to 
 22.24  subdivision 5, and an overview of services available under 
 22.25  MFIP-R pre-employment and employment services, an overview of 
 22.26  job search techniques, and the opportunity to volunteer for 
 22.27  MFIP-R job search activities and basic education services; 
 22.28     (2) a briefing for all mandatory caregivers assigned to 
 22.29  MFIP-R, which includes a review of the information presented at 
 22.30  an earlier MFIP-R orientation pursuant to subdivision 5, and an 
 22.31  overview of services available under MFIP-R pre-employment and 
 22.32  employment services; 
 22.33     (3) an MFIP assessment that meets the requirements of 
 22.34  section 256.736, subdivision 10, paragraph (a), clause (14), and 
 22.35  addresses caregivers' skills, abilities, interests, and needs; 
 22.36     (4) development, together with the caregiver, of an 
 23.1   employability plan and family support agreement according to 
 23.2   subdivision 7; 
 23.3      (5) coordination of services including child care, 
 23.4   transportation, education assistance, and social services 
 23.5   necessary to enable caregivers to fulfill the terms of the 
 23.6   employability plan and family support agreement; 
 23.7      (6) provision of full-time English as a second language 
 23.8   (intensive ESL) classes; 
 23.9      (7) provision of a broad range of employment and 
 23.10  pre-employment services including basic skills testing, interest 
 23.11  and aptitude testing, career exploration, job search activities, 
 23.12  community work experience program under section 256.737, or 
 23.13  on-the-job training under section 256.738; 
 23.14     (8) evaluation of the caregiver's compliance with the 
 23.15  employability plan and family support agreement and support and 
 23.16  recognition of progress toward employment goals; 
 23.17     (9) provision of postemployment follow-up for up to six 
 23.18  months after caregivers become exempt or exit MFIP-R due to 
 23.19  employment if requested by the caregiver; and 
 23.20     (10) approval of education and training program activities. 
 23.21     Sec. 11.  Minnesota Statutes 1995 Supplement, section 
 23.22  256.048, subdivision 13, is amended to read: 
 23.23     Subd. 13.  [EDUCATION AND TRAINING ACTIVITIES; BASIC 
 23.24  EDUCATION.] Basic education, including adult basic education, 
 23.25  high school or general equivalency diploma, or ESL may be 
 23.26  included in the family support agreement when a caregiver is 
 23.27  actively participating in job search activities as specified in 
 23.28  the family support agreement, or employed at least 12 hours per 
 23.29  week.  The concurrent work requirement for basic education does 
 23.30  not apply to caregivers under subdivision 1, paragraph (b), who 
 23.31  are attending secondary school full time.  Six months of basic 
 23.32  education activities may be included in the family support 
 23.33  agreement, and extension of basic education activities, 
 23.34  including intensive ESL, is contingent upon review and approval 
 23.35  by MFIP-R staff.  
 23.36     Non-English-speaking caregivers have the option to 
 24.1   participate in full-time intensive ESL activities for up to six 
 24.2   months prior to participation in job search with approval of 
 24.3   MFIP-R staff, provided the caregiver also works or participates 
 24.4   in job search.  For caregivers participating in intensive ESL, 
 24.5   hours spent in intensive ESL, employment, and job search must 
 24.6   equal at least 30 hours per week, or 20 hours per week for a 
 24.7   single parent caregiver with a child under age six. 
 24.8      Sec. 12.  Minnesota Statutes 1994, section 256.73, 
 24.9   subdivision 1, is amended to read: 
 24.10     Subdivision 1.  [DEPENDENT CHILDREN.] Assistance shall be 
 24.11  given under sections 256.72 to 256.87 to or on behalf of any 
 24.12  dependent child who: 
 24.13     (1) Resides Has resided in Minnesota for at least 30 days 
 24.14  or, if residing in the state for less than 30 days, the child or 
 24.15  the child's caretaker relative meets one of the criteria 
 24.16  specified in subdivision 1b; 
 24.17     (2) Is otherwise eligible; the child shall not be denied 
 24.18  aid because of conditions of the home in which the child resides.
 24.19     Sec. 13.  Minnesota Statutes 1994, section 256.73, is 
 24.20  amended by adding a subdivision to read: 
 24.21     Subd. 1a.  [USE OF CODE OF FEDERAL REGULATIONS.] In the 
 24.22  event that federal block grant legislation eliminates the 
 24.23  federal regulatory basis for AFDC, the state shall continue to 
 24.24  determine eligibility for Minnesota's AFDC program using the 
 24.25  provisions of the Code of Federal Regulations, title 45, as 
 24.26  constructed on the day prior to their federal repeal, except as 
 24.27  expressly superseded in sections 256.72 to 256.87, or as 
 24.28  superseded by federal law, or as modified by state rule or by 
 24.29  regulatory waivers granted to the state. 
 24.30     Sec. 14.  Minnesota Statutes 1994, section 256.73, is 
 24.31  amended by adding a subdivision to read: 
 24.32     Subd. 1b.  [RESIDENCY CRITERIA.] A child or caretaker 
 24.33  relative who has resided in Minnesota for less than 30 days is 
 24.34  considered to be a Minnesota resident if: 
 24.35     (1) either the child or the caretaker relative was born in 
 24.36  the state; 
 25.1      (2) either the child or the caretaker relative has, in the 
 25.2   past, resided in this state for at least 365 consecutive days; 
 25.3      (3) either the child or the caretaker relative came to this 
 25.4   state to join a close relative who has resided in this state for 
 25.5   at least one year.  For purposes of this clause, "close 
 25.6   relative" means a parent, grandparent, brother, sister, spouse, 
 25.7   or child; or 
 25.8      (4) the caretaker relative came to this state to accept a 
 25.9   bona fide offer of employment and was eligible to accept the 
 25.10  employment. 
 25.11     A county agency may waive the 30-day residency requirement 
 25.12  in cases of emergency or where unusual hardship would result 
 25.13  from denial of assistance.  The county agency must report to the 
 25.14  commissioner within 30 days on any waiver granted under this 
 25.15  section.  The county shall not deny an application solely 
 25.16  because the applicant does not meet at least one of the criteria 
 25.17  in this subdivision, but shall continue to process the 
 25.18  application and leave the application pending until the 
 25.19  residency requirement is met or until eligibility or 
 25.20  ineligibility is established. 
 25.21     Sec. 15.  Minnesota Statutes 1995 Supplement, section 
 25.22  256.73, subdivision 8, is amended to read: 
 25.23     Subd. 8.  [RECOVERY OF OVERPAYMENTS AND ATM ERRORS.] (a) 
 25.24  Except as provided in subdivision 8a, if an amount of aid to 
 25.25  families with dependent children assistance is paid to a 
 25.26  recipient in excess of the payment due, it shall be recoverable 
 25.27  by the county agency.  The agency shall give written notice to 
 25.28  the recipient of its intention to recover the overpayment. 
 25.29     (b) When an overpayment occurs, the county agency shall 
 25.30  recover the overpayment from a current recipient by reducing the 
 25.31  amount of aid payable to the assistance unit of which the 
 25.32  recipient is a member for one or more monthly assistance 
 25.33  payments until the overpayment is repaid.  All county agencies 
 25.34  in the state shall reduce the assistance payment by three 
 25.35  percent of the assistance unit's standard of need or the amount 
 25.36  of the monthly payment, whichever is less, for all overpayments 
 26.1   whether or not the overpayment is due solely to agency 
 26.2   error.  For recipients receiving benefits via electronic benefit 
 26.3   transfer, if the overpayment is a result of an automated teller 
 26.4   machine (ATM) dispensing funds in error to the recipient, the 
 26.5   agency may recover the ATM error by immediately withdrawing 
 26.6   funds from the recipient's electronic benefit transfer account, 
 26.7   up to the amount of the error.  If the overpayment is due solely 
 26.8   to having wrongfully obtained assistance, whether based on a 
 26.9   court order, the finding of an administrative fraud 
 26.10  disqualification hearing or a waiver of such a hearing, or a 
 26.11  confession of judgment containing an admission of an intentional 
 26.12  program violation, the amount of this reduction shall be ten 
 26.13  percent.  In cases when there is both an overpayment and 
 26.14  underpayment, the county agency shall offset one against the 
 26.15  other in correcting the payment. 
 26.16     (c) Overpayments may also be voluntarily repaid, in part or 
 26.17  in full, by the individual, in addition to the above aid 
 26.18  reductions, until the total amount of the overpayment is repaid. 
 26.19     (d) The county agency shall make reasonable efforts to 
 26.20  recover overpayments to persons no longer on assistance in 
 26.21  accordance with standards adopted in rule by the commissioner of 
 26.22  human services.  The county agency need not attempt to recover 
 26.23  overpayments of less than $35 paid to an individual no longer on 
 26.24  assistance if the individual does not receive assistance again 
 26.25  within three years, unless the individual has been convicted of 
 26.26  fraud under section 256.98. 
 26.27     Sec. 16.  Minnesota Statutes 1994, section 256.736, 
 26.28  subdivision 1a, is amended to read: 
 26.29     Subd. 1a.  [DEFINITIONS.] As used in this section and 
 26.30  section 256.7365, the following words have the meanings given 
 26.31  them: 
 26.32     (a) "AFDC"  means aid to families with dependent children. 
 26.33     (b) "AFDC-UP" or "two-parent family" means that group of 
 26.34  AFDC clients who are eligible for assistance by reason of 
 26.35  unemployment as defined by the commissioner under section 
 26.36  256.12, subdivision 14. 
 27.1      (c) "Caretaker" means a parent or eligible adult, including 
 27.2   a pregnant woman, who is part of the assistance unit that has 
 27.3   applied for or is receiving AFDC. 
 27.4      (d) "Case manager" means the county agency's employment and 
 27.5   training service provider who provides the services identified 
 27.6   in sections 256.736 to 256.739 according to subdivision 12. 
 27.7      (e) "Employment and training services" means programs, 
 27.8   activities, and services related to job training, job placement, 
 27.9   and job creation, including job service programs, job training 
 27.10  partnership act programs, wage subsidies, remedial and secondary 
 27.11  education programs, post-secondary education programs excluding 
 27.12  education leading to a post-baccalaureate degree, and vocational 
 27.13  education programs, work readiness programs, job search, 
 27.14  counseling, case management, community work experience programs, 
 27.15  displaced homemaker programs, self-employment programs, grant 
 27.16  diversion, employment experience programs, youth employment 
 27.17  programs, community investment programs, refugee employment and 
 27.18  training programs, and counseling and support activities 
 27.19  necessary to stabilize the caretaker or the family. 
 27.20     (e) (f) "Employment and training service provider" means a 
 27.21  public, private, or nonprofit agency certified by the 
 27.22  commissioner of economic security to deliver employment and 
 27.23  training services under section 268.0122, subdivision 3, and 
 27.24  section 268.871, subdivision 1. 
 27.25     (f) (g) "Minor parent" means a caretaker relative who is 
 27.26  the person who is under age 18 who is either the birth parent of 
 27.27  the dependent a minor child or children in the assistance unit 
 27.28  and who is under the age of 18 or is eligible for AFDC as a 
 27.29  pregnant woman. 
 27.30     (g) (h) "Targeted groups" or "targeted caretakers" means 
 27.31  recipients of AFDC or AFDC-UP designated as priorities for 
 27.32  employment and training services under subdivision 16. 
 27.33     (h) (i) "Suitable employment" means employment which:  
 27.34     (1) is within the recipient's physical and mental capacity; 
 27.35     (2) meets health and safety standards established by the 
 27.36  Occupational Safety and Health Administration and the department 
 28.1   of economic security; 
 28.2      (3) pays hourly gross earnings which are not less than the 
 28.3   federal or state minimum wage for that type of employment, 
 28.4   whichever is applicable; 
 28.5      (4) does not result in a net loss of income.  Employment 
 28.6   results in a net loss of income when the income remaining after 
 28.7   subtracting necessary work-related expenses from the family's 
 28.8   gross income, which includes cash assistance, is less than the 
 28.9   cash assistance the family was receiving at the time the offer 
 28.10  of employment was made.  For purposes of this definition, "work 
 28.11  expenses" means the amount withheld or paid for; state and 
 28.12  federal income taxes; social security withholding taxes; 
 28.13  mandatory retirement fund deductions; dependent care costs; 
 28.14  transportation costs to and from work at the amount allowed by 
 28.15  the Internal Revenue Service for personal car mileage; costs of 
 28.16  work uniforms, union dues, and medical insurance premiums; costs 
 28.17  of tools and equipment used on the job; $1 per work day for the 
 28.18  costs of meals eaten during employment; public liability 
 28.19  insurance required by an employer when an automobile is used in 
 28.20  employment and the cost is not reimbursed by the employer; and 
 28.21  the amount paid by an employee from personal funds for business 
 28.22  costs which are not reimbursed by the employer; 
 28.23     (5) offers a job vacancy which is not the result of a 
 28.24  strike, lockout, or other bona fide labor dispute; 
 28.25     (6) requires a round trip commuting time from the 
 28.26  recipient's residence of less than two hours by available 
 28.27  transportation, exclusive of the time to transport children to 
 28.28  and from child care; 
 28.29     (7) does not require the recipient to leave children under 
 28.30  age 12 unattended in order to work, or if child care is 
 28.31  required, such care is available; and 
 28.32     (8) does not discriminate at the job site on the basis of 
 28.33  age, sex, race, color, creed, marital status, status with regard 
 28.34  to public assistance, disability, religion, or place of national 
 28.35  origin. 
 28.36     (i) (j) "Support services" means programs, activities, and 
 29.1   services intended to stabilize families and individuals or 
 29.2   provide assistance for family needs related to employment or 
 29.3   participation in employment and training services, including 
 29.4   child care, transportation, housing assistance, personal and 
 29.5   family counseling, crisis intervention services, peer support 
 29.6   groups, chemical dependency counseling and treatment, money 
 29.7   management assistance, and parenting skill courses. 
 29.8      Sec. 17.  Minnesota Statutes 1994, section 256.736, 
 29.9   subdivision 3b, is amended to read: 
 29.10     Subd. 3b.  [MANDATORY ASSESSMENT AND SCHOOL ATTENDANCE FOR 
 29.11  CERTAIN CUSTODIAL PARENTS.] This subdivision applies to the 
 29.12  extent permitted under federal law and regulation. 
 29.13     (a)  [DEFINITIONS.] The definitions in this paragraph apply 
 29.14  to this subdivision. 
 29.15     (1) "Custodial parent" means a recipient of AFDC who is the 
 29.16  natural or adoptive parent of a child living with the custodial 
 29.17  parent. 
 29.18     (2) "School" means: 
 29.19     (i) an educational program which leads to a high school 
 29.20  diploma.  The program or coursework may be, but is not limited 
 29.21  to, a program under the post-secondary enrollment options of 
 29.22  section 123.3514, a regular or alternative program of an 
 29.23  elementary or secondary school, a technical college, or a 
 29.24  college; 
 29.25     (ii) coursework for a general educational development (GED) 
 29.26  diploma of not less than six hours of classroom instruction per 
 29.27  week; or 
 29.28     (iii) any other post-secondary educational program that is 
 29.29  approved by the public school or the county agency under 
 29.30  subdivision 11. 
 29.31     (b)  [ASSESSMENT AND PLAN; REQUIREMENT; CONTENT.] The 
 29.32  county agency must examine the educational level of each 
 29.33  custodial parent under the age of 20 to determine if the 
 29.34  recipient has completed a high school education or its 
 29.35  equivalent.  If the custodial parent has not completed a high 
 29.36  school education or its equivalent and is not exempt from the 
 30.1   requirement to attend school under paragraph (c), the county 
 30.2   agency must complete an individual assessment for the custodial 
 30.3   parent.  The assessment must be performed as soon as possible 
 30.4   but within 60 days of determining AFDC eligibility for the 
 30.5   custodial parent.  The assessment must provide an initial 
 30.6   examination of the custodial parent's educational progress and 
 30.7   needs, literacy level, child care and supportive service needs, 
 30.8   family circumstances, skills, and work experience.  In the case 
 30.9   of a custodial parent under the age of 18, the assessment must 
 30.10  also consider the results of the early and periodic screening, 
 30.11  diagnosis and treatment (EPSDT) screening, if available, and the 
 30.12  effect of a child's development and educational needs on the 
 30.13  parent's ability to participate in the program.  The county 
 30.14  agency must advise the parent that the parent's first goal must 
 30.15  be to complete an appropriate educational option if one is 
 30.16  identified for the parent through the assessment and, in 
 30.17  consultation with educational agencies, must review the various 
 30.18  school completion options with the parent and assist the parent 
 30.19  in selecting the most appropriate option. 
 30.20     (c)  [RESPONSIBILITY FOR ASSESSMENT AND PLAN.] For 
 30.21  custodial parents who are under age 18, the assessment and the 
 30.22  employability plan must be completed by the county social 
 30.23  services agency, as specified in section 257.33.  For custodial 
 30.24  parents who are age 18 or 19, the assessment and employability 
 30.25  plan must be completed by the case manager.  The social services 
 30.26  agency or the case manager shall consult with representatives of 
 30.27  educational agencies required to assist in developing 
 30.28  educational plans under section 126.235. 
 30.29     (d)  [EDUCATION DETERMINED TO BE APPROPRIATE.] If the case 
 30.30  manager or county social services agency identifies an 
 30.31  appropriate educational option, it must develop an employability 
 30.32  plan in consultation with the custodial parent which reflects 
 30.33  the assessment.  The plan must specify that participation in an 
 30.34  educational activity is required, what school or educational 
 30.35  program is most appropriate, the services that will be provided, 
 30.36  the activities the parent will take part in including child care 
 31.1   and supportive services, the consequences to the custodial 
 31.2   parent for failing to participate or comply with the specified 
 31.3   requirements, and the right to appeal any adverse action.  The 
 31.4   employability plan must, to the extent possible, reflect the 
 31.5   preferences of the participant. 
 31.6      (e)  [EDUCATION DETERMINED TO BE NOT APPROPRIATE.] If the 
 31.7   case manager determines that there is no appropriate educational 
 31.8   option for a custodial parent who is age 18 or 19, the case 
 31.9   manager shall indicate the reasons for the determination.  The 
 31.10  case manager shall then notify the county agency which must 
 31.11  refer the custodial parent to case management services under 
 31.12  subdivision 11 the Project STRIDE program for completion of an 
 31.13  employability plan and mandatory participation in employment and 
 31.14  training services.  If the custodial parent fails to participate 
 31.15  or cooperate with case management employment and training 
 31.16  services and does not have good cause for the failure, the 
 31.17  county agency shall apply the sanctions listed in subdivision 4, 
 31.18  beginning with the first payment month after issuance of 
 31.19  notice.  If the county social services agency determines that 
 31.20  school attendance is not appropriate for a custodial parent 
 31.21  under age 18, the county agency shall refer the custodial parent 
 31.22  to social services for services as provided in section 257.33. 
 31.23     (f)  [SCHOOL ATTENDANCE REQUIRED.] Notwithstanding 
 31.24  subdivision 3, a custodial parent must attend school if all of 
 31.25  the following apply: 
 31.26     (1) the custodial parent is less than 20 years of age; 
 31.27     (2) transportation services needed to enable the custodial 
 31.28  parent to attend school are available; 
 31.29     (3) licensed or legal nonlicensed child care services 
 31.30  needed to enable the custodial parent to attend school are 
 31.31  available; 
 31.32     (4) the custodial parent has not already received a high 
 31.33  school diploma or its equivalent; and 
 31.34     (5) the custodial parent is not exempt because the 
 31.35  custodial parent: 
 31.36     (i) is ill or incapacitated seriously enough to prevent 
 32.1   attendance at school; 
 32.2      (ii) is needed in the home because of the illness or 
 32.3   incapacity of another member of the household; this includes a 
 32.4   custodial parent of a child who is younger than six weeks of 
 32.5   age; 
 32.6      (iii) works 30 or more hours a week; or 
 32.7      (iv) is pregnant if it has been medically verified that the 
 32.8   child's birth is expected within the next six months. 
 32.9      (g)  [ENROLLMENT AND ATTENDANCE.] The custodial parent must 
 32.10  be enrolled in school and meeting the school's attendance 
 32.11  requirements.  If enrolled, the custodial parent is considered 
 32.12  to be attending when the school is not in regular session, 
 32.13  including during holiday and summer breaks. 
 32.14     (h)  [GOOD CAUSE FOR NOT ATTENDING SCHOOL.] The county 
 32.15  agency shall not impose the sanctions in subdivision 4 if it 
 32.16  determines that a custodial parent has good cause for not being 
 32.17  enrolled or for not meeting the school's attendance 
 32.18  requirements.  The county agency shall determine whether good 
 32.19  cause for not attending or not enrolling in school exists, 
 32.20  according to this paragraph: 
 32.21     (1) Good cause exists when the county agency has verified 
 32.22  that the only available school program requires round trip 
 32.23  commuting time from the custodial parent's residence of more 
 32.24  than two hours by available means of transportation, excluding 
 32.25  the time necessary to transport children to and from child care. 
 32.26     (2) Good cause exists when the custodial parent has 
 32.27  indicated a desire to attend school, but the public school 
 32.28  system is not providing for the education and alternative 
 32.29  programs are not available. 
 32.30     (i)  [FAILURE TO COMPLY.] The case manager and social 
 32.31  services agency shall establish ongoing contact with appropriate 
 32.32  school staff to monitor problems that custodial parents may have 
 32.33  in pursuing their educational plan and shall jointly seek 
 32.34  solutions to prevent parents from failing to complete 
 32.35  education.  If the school notifies the county agency that the 
 32.36  custodial parent is not enrolled or is not meeting the school's 
 33.1   attendance requirements, or appears to be facing barriers to 
 33.2   completing education, the information must be conveyed to the 
 33.3   case manager for a custodial parent age 18 or 19, or to the 
 33.4   social services agency for a custodial parent under age 18.  The 
 33.5   case manager or social services agency shall reassess the 
 33.6   appropriateness of school attendance as specified in paragraph 
 33.7   (f).  If after consultation, school attendance is still 
 33.8   appropriate and the case manager or social services agency 
 33.9   determines that the custodial parent has failed to enroll or is 
 33.10  not meeting the school's attendance requirements and the 
 33.11  custodial parent does not have good cause, the case manager or 
 33.12  social services agency shall inform the custodial parent's 
 33.13  financial worker who shall apply the sanctions listed in 
 33.14  subdivision 4 beginning with the first payment month after 
 33.15  issuance of notice. 
 33.16     (j)  [NOTICE AND HEARING.] A right to notice and fair 
 33.17  hearing shall be provided in accordance with section 256.045 and 
 33.18  the Code of Federal Regulations, title 45, section 205.10. 
 33.19     (k)  [SOCIAL SERVICES.] When a custodial parent under the 
 33.20  age of 18 has failed to attend school, is not exempt, and does 
 33.21  not have good cause, the county agency shall refer the custodial 
 33.22  parent to the social services agency for services, as provided 
 33.23  in section 257.33. 
 33.24     (l)  [VERIFICATION.] No less often than quarterly, the 
 33.25  financial worker must verify that the custodial parent is 
 33.26  meeting the requirements of this subdivision.  Notwithstanding 
 33.27  section 13.32, subdivision 3, when the county agency notifies 
 33.28  the school that a custodial parent is subject to this 
 33.29  subdivision, the school must furnish verification of school 
 33.30  enrollment, attendance, and progress to the county agency.  The 
 33.31  county agency must not impose the sanctions in paragraph (i) if 
 33.32  the school fails to cooperate in providing verification of the 
 33.33  minor parent's education, attendance, or progress. 
 33.34     Sec. 18.  Minnesota Statutes 1994, section 256.736, 
 33.35  subdivision 4, is amended to read: 
 33.36     Subd. 4.  [CONDITIONS OF CERTIFICATION.] The commissioner 
 34.1   of human services shall: 
 34.2      (1) in consultation with the commissioner of children, 
 34.3   families, and learning, arrange for or provide any caretaker or 
 34.4   child required to participate who participates in employment and 
 34.5   training services pursuant to this section with child-care 
 34.6   services, transportation, and other necessary family services; 
 34.7      (2) provide that in determining a recipient's needs the 
 34.8   additional expenses attributable to participation in a program 
 34.9   are taken into account in grant determination to the extent 
 34.10  permitted by federal regulation; 
 34.11     (3) provide that the county board shall impose the 
 34.12  sanctions in clause (4) when the county board: 
 34.13     (a) determines that a custodial parent under the age of 16 
 34.14  who is required to attend school under subdivision 3b has, 
 34.15  without good cause, failed to attend school; or 
 34.16     (b) determines that subdivision 3c applies to a minor 
 34.17  parent and the minor parent has, without good cause, failed to 
 34.18  cooperate with development of a social service plan or to 
 34.19  participate in execution of the plan, to live in a group or 
 34.20  foster home, or to participate in a program that teaches skills 
 34.21  in parenting and independent living; 
 34.22     (4) to the extent permissible by federal law, impose the 
 34.23  following sanctions for a recipient's failure to participate in 
 34.24  the requirements of subdivision 3b or 3c: 
 34.25     (a) for the first failure, 50 percent of the grant provided 
 34.26  to the family for the month following the failure shall be made 
 34.27  in the form of protective or vendor payments; 
 34.28     (b) for the second and subsequent failures, the entire 
 34.29  grant provided to the family must be made in the form of 
 34.30  protective or vendor payments.  Assistance provided to the 
 34.31  family must be in the form of protective or vendor payments 
 34.32  until the recipient complies with the requirement; and 
 34.33     (c) when protective payments are required, the county 
 34.34  agency may continue payments to the caretaker if a protective 
 34.35  payee cannot reasonably be found; 
 34.36     (5) provide that the county board shall impose the 
 35.1   sanctions in clause (6) when the county board: 
 35.2      (a) determines that a caretaker or child required to 
 35.3   participate in employment and training services has been found 
 35.4   by the employment and training service provider to have failed 
 35.5   without good cause to participate in appropriate employment and 
 35.6   training services, to comply with the recipient's employability 
 35.7   development plan, or to have failed without good cause to 
 35.8   accept, through the job search program described in subdivision 
 35.9   14, or the provisions of an employability development plan if 
 35.10  the caretaker is a custodial parent age 18 or 19 and subject to 
 35.11  the requirements of subdivision 3b, a bona fide offer of public 
 35.12  or other employment; 
 35.13     (b) determines that a custodial parent aged 16 to 19 who is 
 35.14  required to attend school under subdivision 3b has, without good 
 35.15  cause, failed to enroll or attend school; or 
 35.16     (c) determines that a caretaker has, without good cause, 
 35.17  failed to attend orientation; 
 35.18     (6) to the extent required by federal law, impose the 
 35.19  following sanctions for a recipient's failure to participate in 
 35.20  required employment and training services, to comply with the 
 35.21  recipient's employability development plan, to accept a bona 
 35.22  fide offer of public or other employment, to enroll or attend 
 35.23  school under subdivision 3b, or to attend orientation: 
 35.24     (a) for the first failure, the needs of the noncompliant 
 35.25  individual shall not be taken into account in making the grant 
 35.26  determination, until the individual complies with the 
 35.27  requirements; 
 35.28     (b) for the second failure, the needs of the noncompliant 
 35.29  individual shall not be taken into account in making the grant 
 35.30  determination until the individual complies with the requirement 
 35.31  or for three consecutive months, whichever is longer; 
 35.32     (c) for subsequent failures, the needs of the noncompliant 
 35.33  individual shall not be taken into account in making the grant 
 35.34  determination until the individual complies with the requirement 
 35.35  or for six consecutive months, whichever is longer; 
 35.36     (d) aid with respect to a dependent child who has been 
 36.1   sanctioned under this paragraph shall be continued for the 
 36.2   parent or parents of the child if the child is the only child 
 36.3   receiving aid in the family, the child continues to meet the 
 36.4   conditions of section 256.73, and the family is otherwise 
 36.5   eligible for aid; 
 36.6      (e) if the noncompliant individual is a parent or other 
 36.7   relative caretaker, payments of aid for any dependent child in 
 36.8   the family must be made in the form of protective or vendor 
 36.9   payments.  When protective payments are required, the county 
 36.10  agency may continue payments to the caretaker if a protective 
 36.11  payee cannot reasonably be found.  When protective payments are 
 36.12  imposed on assistance units whose basis of eligibility is 
 36.13  unemployed parent or incapacitated parent a two-parent family, 
 36.14  cash payments may continue to the nonsanctioned caretaker in the 
 36.15  assistance unit who remains eligible for AFDC, subject to 
 36.16  paragraph (g); 
 36.17     (f) If, after removing a caretaker's needs from the grant, 
 36.18  only dependent children remain eligible for AFDC, the standard 
 36.19  of assistance shall be computed using the special children 
 36.20  standard; 
 36.21     (g) if the noncompliant individual is a principal wage 
 36.22  earner in a family whose basis of eligibility is the 
 36.23  unemployment of a parent in a two-parent family and the 
 36.24  nonprincipal wage earner other parent is not participating in an 
 36.25  approved employment and training service, the needs of both the 
 36.26  principal and nonprincipal wage earner parents must not be taken 
 36.27  into account in making the grant determination; and 
 36.28     (7) Request approval from the secretary of health and human 
 36.29  services to use vendor payment sanctions for persons listed in 
 36.30  paragraph (5), clause (b).  If approval is granted, the 
 36.31  commissioner must begin using vendor payment sanctions as soon 
 36.32  as changes to the state plan are approved. 
 36.33     Sec. 19.  Minnesota Statutes 1995 Supplement, section 
 36.34  256.736, subdivision 10, is amended to read: 
 36.35     Subd. 10.  [COUNTY DUTIES.] (a) To the extent of available 
 36.36  state appropriations, county boards shall:  
 37.1      (1) refer all mandatory and eligible volunteer caretakers 
 37.2   permitted to participate under subdivision 3a to an employment 
 37.3   and training service provider for participation in employment 
 37.4   and training services; 
 37.5      (2) identify to the employment and training service 
 37.6   provider the target group of which the referred caretaker is a 
 37.7   member, if any, and whether the person's participation is 
 37.8   mandatory or voluntary; 
 37.9      (3) provide all caretakers with an orientation which meets 
 37.10  the requirements in subdivisions 10a and 10b; 
 37.11     (4) work with the employment and training service provider 
 37.12  to encourage voluntary participation by caretakers in the target 
 37.13  groups in employment and training services; 
 37.14     (5) work with the employment and training service provider 
 37.15  to collect data as required by the commissioner; 
 37.16     (6) to the extent permissible under federal law, require 
 37.17  all caretakers coming into the AFDC program to attend 
 37.18  orientation; 
 37.19     (7) encourage nontarget caretakers to develop a plan to 
 37.20  obtain self-sufficiency; 
 37.21     (8) notify the commissioner of the caretakers required to 
 37.22  who participate in employment and training services; 
 37.23     (9) inform appropriate caretakers of opportunities 
 37.24  available through the head start program and encourage 
 37.25  caretakers to have their children screened for enrollment in the 
 37.26  program where appropriate; 
 37.27     (10) provide transportation assistance using available 
 37.28  funds to caretakers who participate in employment and training 
 37.29  programs; 
 37.30     (11) ensure that the required services of orientation, job 
 37.31  search, services to custodial parents under the age of 20 who 
 37.32  have not completed high school or an equivalent program, job 
 37.33  search, educational activities, and work experience for AFDC-UP 
 37.34  two-parent families, and case management services are made 
 37.35  available to appropriate caretakers under this section, except 
 37.36  that payment for case management services is governed by 
 38.1   subdivision 13 and that services are provided to volunteer 
 38.2   caretakers to the extent resources permit; 
 38.3      (12) explain in its local service unit plan under section 
 38.4   268.88 how it will ensure that target caretakers determined to 
 38.5   be in need of social services are provided with such social 
 38.6   services.  The plan must specify how the case manager and the 
 38.7   county social service workers will ensure delivery of needed 
 38.8   services; 
 38.9      (13) to the extent allowed by federal laws and regulations, 
 38.10  provide a job search program as defined in subdivision 14, a 
 38.11  community work experience program as defined in section 256.737, 
 38.12  grant diversion as defined in section 256.739, and on-the-job 
 38.13  training as defined in section 256.738.  A county may also 
 38.14  provide another work and training program approved by the 
 38.15  commissioner and the secretary of the United States Department 
 38.16  of Health and Human Services.  Planning and approval for 
 38.17  employment and training services listed in this clause must be 
 38.18  obtained through submission of the local service unit plan as 
 38.19  specified under section 268.88.  A county is not required to 
 38.20  provide a community work experience program if the county agency 
 38.21  is successful in placing at least 40 60 percent of the monthly 
 38.22  average of all caretakers who are subject to the job search 
 38.23  requirements of subdivision 14 in grant diversion or on-the-job 
 38.24  training program; 
 38.25     (14) prior to participation, provide an assessment of each 
 38.26  AFDC recipient who is required or volunteers to participate in 
 38.27  an approved employment and training service.  The assessment 
 38.28  must include an evaluation of the participant's (i) educational, 
 38.29  child care, and other supportive service needs; (ii) skills and 
 38.30  prior work experience; and (iii) ability to secure and retain a 
 38.31  job which, when wages are added to child support, will support 
 38.32  the participant's family.  The assessment must also include a 
 38.33  review of the results of the early and periodic screening, 
 38.34  diagnosis and treatment (EPSDT) screening and preschool 
 38.35  screening under chapter 123, if available; the participant's 
 38.36  family circumstances; and, in the case of a custodial parent 
 39.1   under the age of 18, a review of the effect of a child's 
 39.2   development and educational needs on the parent's ability to 
 39.3   participate in the program; 
 39.4      (15) develop an employability development plan for each 
 39.5   recipient for whom an assessment is required under clause (14) 
 39.6   which: 
 39.7      (i) reflects the assessment required by clause (14); 
 39.8      (ii) takes into consideration the recipient's physical 
 39.9   capacity, skills, experience, health and safety, family 
 39.10  responsibilities, place of residence, proficiency, child care 
 39.11  and other supportive service needs; 
 39.12     (iii) is based on available resources and local employment 
 39.13  opportunities; 
 39.14     (iv) specifies the services to be provided by the 
 39.15  employment and training service provider; 
 39.16     (v) specifies the activities the recipient will participate 
 39.17  in, including the worksite to which the caretaker will be 
 39.18  assigned, if the caretaker is subject to the requirements of 
 39.19  section 256.737, subdivision 2; 
 39.20     (vi) specifies necessary supportive services such as child 
 39.21  care; 
 39.22     (vii) reflects the effort to arrange mandatory activities 
 39.23  so that the activities do not interfere with access to available 
 39.24  English as a second language classes and to the extent possible, 
 39.25  reflects the preferences of the participant; 
 39.26     (viii) includes a written agreement between the county 
 39.27  agency and the caretaker that outlines a reasonable schedule for 
 39.28  completing the plan, including specific completion deadlines, 
 39.29  and confirms that 
 39.30     (A) there is a market for full-time employees with this 
 39.31  education or training where the caretaker will or is willing to 
 39.32  reside upon completion of the program; 
 39.33     (B) the average wage level for employees with this 
 39.34  education or training is greater than the caretaker can earn 
 39.35  without this education or training; 
 39.36     (C) the caretaker has the academic ability to successfully 
 40.1   complete the program; and 
 40.2      (D) there is a reasonable expectation that the caretaker 
 40.3   will complete the training program based on such factors as the 
 40.4   caretaker's previous education, training, work history, current 
 40.5   motivation, and changes in previous circumstances; and 
 40.6      (ix) specifies the recipient's long-term employment goal 
 40.7   which shall lead to self-sufficiency.  Caretakers shall be 
 40.8   counseled to set realistic attainable goals, taking into account 
 40.9   the long-term needs of the caretaker and the caretaker's family; 
 40.10     (16) provide written notification to and obtain the written 
 40.11  concurrence of the appropriate exclusive bargaining 
 40.12  representatives with respect to job duties covered under 
 40.13  collective bargaining agreements and assure that no work 
 40.14  assignment under this section or sections 256.737, 256.738, and 
 40.15  256.739, or the Minnesota parent's fair share mandatory 
 40.16  community work experience program results in:  (i) termination, 
 40.17  layoff, or reduction of the work hours of an employee for the 
 40.18  purpose of hiring an individual under this section or sections 
 40.19  256.737, 256.738, and 256.739; (ii) the hiring of an individual 
 40.20  if any other person is on layoff from the same or a 
 40.21  substantially equivalent job; (iii) any infringement of the 
 40.22  promotional opportunities of any currently employed individual; 
 40.23  (iv) the impairment of existing contracts for services or 
 40.24  collective bargaining agreements; or (v) except for on-the-job 
 40.25  training under section 256.738, a participant filling an 
 40.26  established unfilled position vacancy.  If an exclusive 
 40.27  bargaining representative and a county or public service 
 40.28  employer disagree regarding whether job duties are covered under 
 40.29  a collective bargaining agreement, the exclusive bargaining 
 40.30  representative or the county or public service employer may 
 40.31  petition the bureau of mediation services, and the bureau shall 
 40.32  determine if the job duties are covered by a collective 
 40.33  bargaining agreement; and 
 40.34     (17) assess each caretaker in an AFDC-UP a two-parent 
 40.35  family who is under age 25, has not completed high school or a 
 40.36  high school equivalency program, and who would otherwise be 
 41.1   required to participate in a work experience placement under 
 41.2   section 256.737 to determine if an appropriate secondary 
 41.3   education option is available for the caretaker.  If an 
 41.4   appropriate secondary education option is determined to be 
 41.5   available for the caretaker, the caretaker must, in lieu of 
 41.6   participating in work experience, enroll in and meet the 
 41.7   educational program's participation and attendance 
 41.8   requirements.  "Secondary education" for this paragraph means 
 41.9   high school education or education designed to prepare a person 
 41.10  to qualify for a high school equivalency certificate, basic and 
 41.11  remedial education, and English as a second language education.  
 41.12  A caretaker required to participate in secondary education who, 
 41.13  without good cause, fails to participate shall be subject to the 
 41.14  provisions of subdivision 4a and the sanction provisions of 
 41.15  subdivision 4, clause (6).  For purposes of this clause, "good 
 41.16  cause" means the inability to obtain licensed or legal 
 41.17  nonlicensed child care services needed to enable the caretaker 
 41.18  to attend, inability to obtain transportation needed to attend, 
 41.19  illness or incapacity of the caretaker or another member of the 
 41.20  household which requires the caretaker to be present in the 
 41.21  home, or being employed for more than 30 hours per week; and 
 41.22     (18) provide counseling and other personal follow-up 
 41.23  support as needed for up to six months after the participant 
 41.24  loses AFDC eligibility to assist the person to maintain 
 41.25  employment or to secure new employment. 
 41.26     (b) Funds available under this subdivision may not be used 
 41.27  to assist, promote, or deter union organizing. 
 41.28     (c) A county board may provide other employment and 
 41.29  training services that it considers necessary to help caretakers 
 41.30  obtain self-sufficiency. 
 41.31     (d) Notwithstanding section 256G.07, when a target 
 41.32  caretaker relocates to another county to implement the 
 41.33  provisions of the caretaker's case management contract or other 
 41.34  written employability development plan approved by the county 
 41.35  human service agency, its case manager or its employment and 
 41.36  training service provider, the county that approved the plan is 
 42.1   responsible for the costs of case management and other services 
 42.2   required to carry out the plan, including employment and 
 42.3   training services.  The county agency's responsibility for the 
 42.4   costs ends when all plan obligations have been met, when the 
 42.5   caretaker loses AFDC eligibility for at least 30 days, or when 
 42.6   approval of the plan is withdrawn for a reason stated in the 
 42.7   plan, whichever occurs first.  Responsibility for the costs of 
 42.8   child care must be determined under chapter 256H.  A county 
 42.9   human service agency may pay for the costs of case management, 
 42.10  child care, and other services required in an approved 
 42.11  employability development plan when the nontarget caretaker 
 42.12  relocates to another county or when a target caretaker again 
 42.13  becomes eligible for AFDC after having been ineligible for at 
 42.14  least 30 days. 
 42.15     Sec. 20.  Minnesota Statutes 1995 Supplement, section 
 42.16  256.736, subdivision 10a, is amended to read: 
 42.17     Subd. 10a.  [ORIENTATION.] (a) Each county agency must 
 42.18  provide an orientation to all caretakers within its jurisdiction 
 42.19  in the time limits described in this paragraph:  
 42.20     (1) within 60 days of being determined eligible for AFDC 
 42.21  for caretakers with a continued absence or incapacitated parent 
 42.22  basis of eligibility who are permitted to volunteer for services 
 42.23  under subdivision 3a; or 
 42.24     (2) within 30 days of being determined eligible for AFDC 
 42.25  for caretakers with an unemployed parent basis of eligibility 
 42.26  who are required to participate in services under subdivision 3a.
 42.27     (b) Caretakers are required to attend an in-person 
 42.28  orientation if the caretaker is a member of one of the groups 
 42.29  listed in subdivision 3a, paragraph (a), unless the caretaker is 
 42.30  exempt from registration under subdivision 3 and the caretaker's 
 42.31  exemption basis will not expire within 60 days of being 
 42.32  determined eligible for AFDC, or the caretaker is enrolled at 
 42.33  least half time in any recognized school, training program, or 
 42.34  institution of higher learning and the in-person orientation 
 42.35  cannot be scheduled at a time that does not interfere with the 
 42.36  caretaker's school or training schedule.  The county agency 
 43.1   shall require attendance at orientation of caretakers described 
 43.2   in subdivision 3a, paragraph (b) or (c), if the commissioner 
 43.3   determines that the groups are eligible for participation in 
 43.4   employment and training services. 
 43.5      (c) The orientation must consist of a presentation that 
 43.6   informs caretakers of: 
 43.7      (1) the identity, location, and phone numbers of employment 
 43.8   and training and support services available in the county; 
 43.9      (2) the types and locations of child care services 
 43.10  available through the county agency that are accessible to 
 43.11  enable a caretaker to participate in educational programs or 
 43.12  employment and training services; 
 43.13     (3) the child care resource and referral program designated 
 43.14  by the commissioner providing education and assistance to select 
 43.15  child care services and a referral to the child care resource 
 43.16  and referral when assistance is requested; 
 43.17     (4) the obligations of the county agency and service 
 43.18  providers under contract to the county agency; 
 43.19     (5) the rights, responsibilities, and obligations of 
 43.20  participants; 
 43.21     (6) the grounds for exemption from mandatory employment and 
 43.22  training services or educational requirements; 
 43.23     (7) the consequences for failure to participate in 
 43.24  mandatory services or requirements, including the requirement 
 43.25  that volunteer participants comply with their employability 
 43.26  development plan; 
 43.27     (8) the method of entering educational programs or 
 43.28  employment and training services available through the county; 
 43.29     (9) the availability and the benefits of the early and 
 43.30  periodic, screening, diagnosis and treatment (EPSDT) program and 
 43.31  preschool screening under chapter 123; 
 43.32     (10) their eligibility for transition year child care 
 43.33  assistance when they lose eligibility for AFDC due to their 
 43.34  earnings; 
 43.35     (11) their eligibility for extended medical assistance when 
 43.36  they lose eligibility for AFDC due to their earnings; and 
 44.1      (12) the availability of the federal earned income tax 
 44.2   credits and the state working family tax credits; and 
 44.3      (13) the availability and benefits of the Head Start 
 44.4   program. 
 44.5      (d) All orientation programs should provide information to 
 44.6   caretakers on parenting, nutrition, household management, food 
 44.7   preparation, and other subjects relevant to promoting family 
 44.8   integration and self-sufficiency and provide detailed 
 44.9   information on community resources available for training 
 44.10  sessions on these topics. 
 44.11     (e) Orientation must encourage recipients to view AFDC as a 
 44.12  temporary program providing grants and services to individuals 
 44.13  who set goals and develop strategies for supporting their 
 44.14  families without AFDC assistance.  The content of the 
 44.15  orientation must not imply that a recipient's eligibility for 
 44.16  AFDC is time limited.  Orientation may be provided through 
 44.17  audio-visual methods, but the caretaker must be given an 
 44.18  opportunity for face-to-face interaction with staff of the 
 44.19  county agency or the entity providing the orientation, and an 
 44.20  opportunity to express the desire to participate in educational 
 44.21  programs and employment and training services offered through 
 44.22  the county agency. 
 44.23     (f) County agencies shall not require caretakers to attend 
 44.24  orientation for more than three hours during any period of 12 
 44.25  continuous months.  The county agency shall also arrange for or 
 44.26  provide needed transportation and child care to enable 
 44.27  caretakers to attend. 
 44.28     The county or, under contract, the county's employment and 
 44.29  training service provider shall mail written orientation 
 44.30  materials containing the information specified in paragraph (c), 
 44.31  clauses (1) to (3) and (8) to (12) (13), to each caretaker 
 44.32  exempt from attending an in-person orientation or who has good 
 44.33  cause for failure to attend after at least two dates for their 
 44.34  orientation have been scheduled.  The county or the county's 
 44.35  employment and training service provider shall follow up with a 
 44.36  phone call or in writing within two weeks after mailing the 
 45.1   material. 
 45.2      (g) Persons required to attend orientation must be informed 
 45.3   of the penalties for failure to attend orientation, support 
 45.4   services to enable the person to attend, what constitutes good 
 45.5   cause for failure to attend, and rights to appeal.  Persons 
 45.6   required to attend orientation must be offered a choice of at 
 45.7   least two dates for their first scheduled orientation.  No 
 45.8   person may be sanctioned for failure to attend orientation until 
 45.9   after a second failure to attend. 
 45.10     (h) Good cause for failure to attend an in-person 
 45.11  orientation exists when a caretaker cannot attend because of:  
 45.12     (1) temporary illness or injury of the caretaker or of a 
 45.13  member of the caretaker's family that prevents the caretaker 
 45.14  from attending an orientation during the hours when the 
 45.15  orientation is offered; 
 45.16     (2) a judicial proceeding that requires the caretaker's 
 45.17  presence in court during the hours when orientation is 
 45.18  scheduled; or 
 45.19     (3) a nonmedical emergency that prevents the caretaker from 
 45.20  attending an orientation during the hours when orientation is 
 45.21  offered.  "Emergency" for the purposes of this paragraph means a 
 45.22  sudden, unexpected occurrence or situation of a serious or 
 45.23  urgent nature that requires immediate action.  
 45.24     (i) Caretakers must receive a second orientation only when: 
 45.25     (1) there has been a 30-day break in AFDC eligibility; and 
 45.26     (2) the caretaker has not attended an orientation within 
 45.27  the previous 12-month period, excluding the month of 
 45.28  reapplication for AFDC. 
 45.29     Sec. 21.  Minnesota Statutes 1994, section 256.736, 
 45.30  subdivision 12, is amended to read: 
 45.31     Subd. 12.  [CASE MANAGERS EMPLOYMENT AND TRAINING SERVICE 
 45.32  PROVISION.] (a) Counties may directly employ case managers to 
 45.33  provide the employment and training services in this section if 
 45.34  the county is certified as an employment and training service 
 45.35  provider under section 268.0122, or may contract for case 
 45.36  management services with a certified employment and training 
 46.1   service provider.  Uncertified counties and contracting agencies 
 46.2   may provide case management services only if they demonstrate 
 46.3   the ability to coordinate employment, training, education, and 
 46.4   support services.  The commissioner of economic security shall 
 46.5   determine whether or not an uncertified county or agency has 
 46.6   demonstrated such ability. 
 46.7      (b) Counties that employ case managers must ensure that the 
 46.8   case managers have the skills and knowledge necessary to perform 
 46.9   the variety of tasks described in subdivision 11 this section.  
 46.10  Counties that contract with another agency for case management 
 46.11  services must specify in the contract the skills and knowledge 
 46.12  needed by the case managers.  At a minimum, case managers must: 
 46.13     (1) have a thorough knowledge of training, education, and 
 46.14  employment opportunities; 
 46.15     (2) have training or experience in understanding the needs 
 46.16  of AFDC clients and their families; and 
 46.17     (3) be able to formulate creative individualized contracts 
 46.18  employability development plans. 
 46.19     Sec. 22.  Minnesota Statutes 1995 Supplement, section 
 46.20  256.736, subdivision 14, is amended to read: 
 46.21     Subd. 14.  [JOB SEARCH.] (a) Each county agency must 
 46.22  establish and operate a job search program as provided under 
 46.23  this section.  Unless all caretakers in the household are 
 46.24  exempt, one nonexempt caretaker in each AFDC-UP two-parent AFDC 
 46.25  household must be referred to and begin participation in the job 
 46.26  search program within 30 days of being determined eligible for 
 46.27  AFDC.  If the assistance unit contains more than one nonexempt 
 46.28  caretaker, the caretakers may determine which caretaker shall 
 46.29  participate.  The designation may be changed only once annually 
 46.30  at the annual redetermination of eligibility.  If no designation 
 46.31  is made or if the caretakers cannot agree, the county agency 
 46.32  shall designate the caretaker having earned the greater of the 
 46.33  incomes, including in-kind income, during the 24-month period 
 46.34  immediately preceding the month of application for AFDC benefits 
 46.35  as the caretaker that must participate.  When no designation is 
 46.36  made or the caretakers cannot agree and neither caretaker had 
 47.1   earnings or the earnings were identical for each caretaker, then 
 47.2   the county agency shall designate the caretaker who must 
 47.3   participate.  A caretaker is exempt from job search 
 47.4   participation if: 
 47.5      (1) the caretaker is exempt from registration under 
 47.6   subdivision 3, except that the second caretaker cannot be exempt 
 47.7   to provide child care or care to an ill or incapacitated 
 47.8   household member if the first caretaker is sanctioned for 
 47.9   failure to comply or is exempt under any other exemption 
 47.10  category, provided the first caretaker is capable of providing 
 47.11  the needed care; or 
 47.12     (2) the caretaker is under age 25, has not completed a high 
 47.13  school diploma or an equivalent program, and is participating in 
 47.14  a secondary education program as defined in subdivision 10, 
 47.15  paragraph (a), clause (17), which is approved by the employment 
 47.16  and training service provider in the employability development 
 47.17  plan. 
 47.18     (b) The job search program must provide four consecutive 
 47.19  weeks of job search activities for no less than 20 hours per 
 47.20  week but not more than 32 hours per week.  The employment and 
 47.21  training service provider shall specify for each participating 
 47.22  caretaker the number of weeks and hours of job search to be 
 47.23  conducted and shall report to the county agency if the caretaker 
 47.24  fails to cooperate with the job search requirement.  A person 
 47.25  for whom lack of proficiency in English, as determined by an 
 47.26  appropriate evaluation, is a barrier to employment, can choose 
 47.27  to attend an available intensive, functional work literacy 
 47.28  program for a minimum of 20 hours in place of the 20 hours of 
 47.29  job search activities.  The caretaker's employability 
 47.30  development plan must include the length of time needed in the 
 47.31  program, specific outcomes, attendance requirements, completion 
 47.32  dates, and employment goals as they pertain to the intensive 
 47.33  literacy program. 
 47.34     (c) The job search program may provide services to 
 47.35  non-AFDC-UP caretakers who are not in two-parent families. 
 47.36     (d) After completion of job search requirements in this 
 48.1   section, if the caretaker is not employed, nonexempt caretakers 
 48.2   shall be placed in and must participate in and cooperate with 
 48.3   the work experience program under section 256.737, the 
 48.4   on-the-job training program under section 256.738, or the grant 
 48.5   diversion program under section 256.739.  Caretakers must be 
 48.6   offered placement in a grant diversion or on-the-job training 
 48.7   program, if either such employment is available, before being 
 48.8   required to participate in a community work experience program 
 48.9   under section 256.737.  When a nonexempt caretaker fails to 
 48.10  cooperate with the job search program, the work experience 
 48.11  program, the on-the-job training program, or the community work 
 48.12  experience program and is subject to the sanction provisions of 
 48.13  subdivision 4, the second caretaker in the assistance unit, 
 48.14  unless exempt, must also be removed from the grant unless that 
 48.15  second caretaker has been referred to and has started 
 48.16  participating in the job search program and subsequently in the 
 48.17  work experience program, the on-the-job training program, or the 
 48.18  community work experience program prior to the date the sanction 
 48.19  begins for the first caretaker.  The second caretaker is 
 48.20  ineligible for AFDC until the first caretaker's sanction ends or 
 48.21  the second caretaker cooperates with the requirements. 
 48.22     (e) The commissioner may require that, to the extent of 
 48.23  available resources and provided the second caretaker is 
 48.24  proficient in English, both caretakers in a two-parent AFDC 
 48.25  family where all children are over age six and are not in 
 48.26  kindergarten participate in job search and work experience.  A 
 48.27  caretaker shall be determined proficient in English if the 
 48.28  county agency, or its employment and training service provider, 
 48.29  determines that the person has sufficient English language 
 48.30  capabilities to become suitably employed.  
 48.31     If, as of July 1, 1996, the second caretaker is enrolled in 
 48.32  a post-secondary education or training program that is limited 
 48.33  to one year and can reasonably be expected to lead to 
 48.34  employment, the second caretaker is exempt from job search and 
 48.35  work experience for a period of one year or until the caretaker 
 48.36  stops attending the post-secondary program, whichever is shorter.
 49.1      Sec. 23.  Minnesota Statutes 1995 Supplement, section 
 49.2   256.736, subdivision 16, is amended to read: 
 49.3      Subd. 16.  [ALLOCATION AND USE OF MONEY.] (a) State money 
 49.4   appropriated for employment and training services under this 
 49.5   section must be allocated to counties as specified in paragraphs 
 49.6   (b) to (l). 
 49.7      (b) For purposes of this subdivision, "targeted caretaker" 
 49.8   means a recipient who: 
 49.9      (1) is a custodial parent under the age of 24 who:  (i) has 
 49.10  not completed a high school education and at the time of 
 49.11  application for AFDC is not enrolled in high school or in a high 
 49.12  school equivalency program; or (ii) had little or no work 
 49.13  experience in the preceding year; 
 49.14     (2) is a member of a family in which the youngest child is 
 49.15  within two years of being ineligible for AFDC due to age; or 
 49.16     (3) has received 36 months or more of AFDC over the last 60 
 49.17  months. 
 49.18     (c) One hundred percent of the money appropriated for case 
 49.19  management services as described in subdivision 11 must be 
 49.20  allocated to counties based on the average number of cases in 
 49.21  each county described in clause (1).  Money appropriated for 
 49.22  employment and training services as described in subdivision 1a, 
 49.23  paragraph (d), other than case management services, must be 
 49.24  allocated to counties as follows: 
 49.25     (1) Forty percent of the state money must be allocated 
 49.26  based on the average number of cases receiving AFDC in the 
 49.27  county which either have been open for 36 or more consecutive 
 49.28  months or have a caretaker who is under age 24 and who has no 
 49.29  high school or general equivalency diploma.  The average number 
 49.30  of cases must be based on counts of these cases as of March 31, 
 49.31  June 30, September 30, and December 31 of the previous year. 
 49.32     (2) Twenty percent of the state money must be allocated 
 49.33  based on the average number of cases receiving AFDC in the 
 49.34  county which are not counted under clause (1).  The average 
 49.35  number of cases must be based on counts of cases as of March 31, 
 49.36  June 30, September 30, and December 31 of the previous year.  
 50.1      (3) Twenty-five percent of the state money must be 
 50.2   allocated based on the average monthly number of assistance 
 50.3   units in the county receiving AFDC-UP for the period ending 
 50.4   December 31 of the previous year. 
 50.5      (4) Fifteen percent of the state money must be allocated at 
 50.6   the discretion of the commissioner based on participation levels 
 50.7   for target group members in each county. 
 50.8      (d) No more than 15 percent of the money allocated under 
 50.9   paragraph (b) and no more than 15 percent of the money allocated 
 50.10  under paragraph (c) may be used for administrative activities. 
 50.11     (e) At least 55 percent of the money allocated to counties 
 50.12  under paragraph (c) must be used for employment and training 
 50.13  services for caretakers in the target groups, and up to 45 
 50.14  percent of the money may be used for employment and training 
 50.15  services for nontarget caretakers.  One hundred percent of the 
 50.16  money allocated to counties for case management services must be 
 50.17  used to provide those services to caretakers in the target 
 50.18  groups. 
 50.19     (f) Money appropriated to cover the nonfederal share of 
 50.20  costs for bilingual case management services to refugees for the 
 50.21  employment and training programs under this section are 
 50.22  allocated to counties based on each county's proportion of the 
 50.23  total statewide number of AFDC refugee cases.  However, counties 
 50.24  with less than one percent of the statewide number of AFDC 
 50.25  refugee cases do not receive an allocation.  
 50.26     (g) Counties, the department of economic security, and 
 50.27  entities under contract with either the department of economic 
 50.28  security or the department of human services for provision of 
 50.29  STRIDE related services shall bill the commissioner of human 
 50.30  services for any expenditures incurred by the county, the 
 50.31  county's employment and training service provider, or the 
 50.32  department of economic security that may be reimbursed by 
 50.33  federal money.  The commissioner of human services shall bill 
 50.34  the United States Department of Health and Human Services and 
 50.35  the United States Department of Agriculture for the 
 50.36  reimbursement and appropriate the reimbursed money to the 
 51.1   county, the department of economic security, or employment and 
 51.2   training service provider that submitted the original bill.  The 
 51.3   reimbursed money must be used to expand employment and training 
 51.4   services. 
 51.5      (h) The commissioner of human services shall review county 
 51.6   expenditures of case management and employment and training 
 51.7   block grant money at the end of the third quarter of the 
 51.8   biennium and each quarter after that, and may reallocate 
 51.9   unencumbered or unexpended money allocated under this section to 
 51.10  those counties that can demonstrate a need for additional 
 51.11  money.  Reallocation of funds must be based on the formula set 
 51.12  forth in paragraph (a), excluding the counties that have not 
 51.13  demonstrated a need for additional funds. 
 51.14     (i) The county agency may continue to provide case 
 51.15  management and supportive services to a participant for up to 90 
 51.16  days after the participant loses AFDC eligibility and may 
 51.17  continue providing a specific employment and training service 
 51.18  for the duration of that service to a participant if funds for 
 51.19  the service are obligated or expended prior to the participant 
 51.20  losing AFDC eligibility. 
 51.21     (j) One hundred percent of the money appropriated for an 
 51.22  unemployed parent work experience program under section 256.737 
 51.23  must be allocated to counties based on the average monthly 
 51.24  number of assistance units in the county receiving AFDC-UP for 
 51.25  the period ending December 31 of the previous year. 
 51.26     (k) The commissioner may waive the requirement of paragraph 
 51.27  (e) that case management funds be spent only on case management 
 51.28  services in order to permit the development of a unified STRIDE 
 51.29  funding allocation for each county agency.  The unified 
 51.30  allocation may be expended by the county agency for case 
 51.31  management and employment and training activities in the 
 51.32  proportion determined necessary to streamline administrative 
 51.33  procedures and enhance program performance.  The commissioner, 
 51.34  in consultation with the commissioner of economic security, may 
 51.35  also grant a waiver from program spending limits in paragraphs 
 51.36  (d) and (e) to any county which can demonstrate increased 
 52.1   program effectiveness through a written request to the 
 52.2   department.  Counties which request a waiver of the spending 
 52.3   limits in paragraphs (d) and (e) shall amend their local service 
 52.4   unit plans and receive approval of the plans prior to commencing 
 52.5   the waiver.  The commissioners of human services and economic 
 52.6   security shall annually evaluate the effectiveness of all 
 52.7   waivers approved under this subdivision. 
 52.8      (l) Effective July 1, 1995, the commissioner of human 
 52.9   services shall begin developing a performance model for the 
 52.10  purpose of analyzing each county's performance in the provision 
 52.11  of STRIDE employment and training services.  Beginning February 
 52.12  1, 1997, and each year thereafter, the commissioner of human 
 52.13  services shall inform each county of the county's performance 
 52.14  based upon the following measures: 
 52.15     (1) employment rate at termination of STRIDE eligibility; 
 52.16     (2) wage rate at termination of STRIDE eligibility; 
 52.17     (3) average annual cost per placement calculated by 
 52.18  dividing the total STRIDE expenditures by the number of 
 52.19  participants placed in unsubsidized employment; 
 52.20     (4) AFDC-UP participation rate; 
 52.21     (5) percentage of 18- and 19-year-old custodial parents 
 52.22  subject to secondary education requirements of subdivision 3b 
 52.23  who complete secondary education or equivalent course of study; 
 52.24  and 
 52.25     (6) achievement of federally mandated JOBS participation 
 52.26  rate. 
 52.27     Performance measures (1), (2), and (3) shall be adjusted to 
 52.28  reflect local conditions. 
 52.29     County agencies must take the results of these performance 
 52.30  measures into consideration when selecting employment and 
 52.31  training service providers. 
 52.32     Sec. 24.  Minnesota Statutes 1995 Supplement, section 
 52.33  256.737, subdivision 7, is amended to read: 
 52.34     Subd. 7.  [INJURY PROTECTION FOR WORK EXPERIENCE 
 52.35  PARTICIPANTS.] (a) Payment of any claims resulting from an 
 52.36  alleged injury or death of a recipient participating in a 
 53.1   community work experience program established and operated by a 
 53.2   county or a tribal JOBS program pursuant to this section shall 
 53.3   be determined in accordance with this section.  This 
 53.4   determination method applies to work experience programs 
 53.5   established under aid to families with dependent children, work 
 53.6   readiness, Minnesota parent's fair share, and to obligors 
 53.7   participating in community services pursuant to section 518.551, 
 53.8   subdivision 5a, in a county with an approved community 
 53.9   investment program. 
 53.10     (b) Claims that are subject to this section shall be 
 53.11  investigated by the county agency or the tribal JOBS program 
 53.12  responsible for supervising the work to determine whether the 
 53.13  claimed injury occurred, whether the claimed medical expenses 
 53.14  are reasonable, and whether the loss is covered by the 
 53.15  claimant's insurance.  If insurance coverage is established, the 
 53.16  county agency or tribal JOBS program shall submit the claim to 
 53.17  the appropriate insurance entity for payment.  The investigating 
 53.18  county agency or tribal JOBS program shall submit all valid 
 53.19  claims, in the amount net of any insurance payments, to the 
 53.20  department of human services.  
 53.21     (c) The department of human services shall submit all 
 53.22  claims for impairment compensation to the commissioner of labor 
 53.23  and industry.  The commissioner of labor and industry shall 
 53.24  review all submitted claims and recommend to the department of 
 53.25  human services an amount of compensation comparable to that 
 53.26  which would be provided under the impairment compensation 
 53.27  schedule of section 176.101, subdivision 3b. 
 53.28     (d) The department of human services shall approve a claim 
 53.29  of $1,000 or less for payment if appropriated funds are 
 53.30  available, if the county agency or tribal JOBS program 
 53.31  responsible for supervising the work has made the determinations 
 53.32  required by this section, and if the work program was operated 
 53.33  in compliance with the safety provisions of this section.  The 
 53.34  department shall pay the portion of an approved claim of $1,000 
 53.35  or less that is not covered by the claimant's insurance within 
 53.36  three months of the date of submission.  On or before February 1 
 54.1   of each legislative session, the department shall submit to the 
 54.2   appropriate committees of the senate and the house of 
 54.3   representatives a list of claims of $1,000 or less paid during 
 54.4   the preceding calendar year and shall be reimbursed by 
 54.5   legislative appropriation for any claims that exceed the 
 54.6   original appropriation provided to the department to operate 
 54.7   this program.  Any unspent money from this appropriation shall 
 54.8   carry over to the second year of the biennium, and any unspent 
 54.9   money remaining at the end of the second year shall be returned 
 54.10  to the state general fund. 
 54.11     On or before February 1 of each year, the department shall 
 54.12  submit to the appropriate committees of the senate and the house 
 54.13  of representatives a list of claims in excess of $1,000 and a 
 54.14  list of claims of $1,000 or less that were submitted to but not 
 54.15  paid by the department of human services, together with any 
 54.16  recommendations of appropriate compensation.  These claims shall 
 54.17  be heard and determined by the appropriate committees of the 
 54.18  senate and house of representatives and, if approved, shall be 
 54.19  paid under the legislative claims procedure. 
 54.20     (e) Compensation paid under this section is limited to 
 54.21  reimbursement for reasonable medical expenses and impairment 
 54.22  compensation for disability in like amounts as allowed in 
 54.23  section 176.101, subdivision 3b.  Compensation for injuries 
 54.24  resulting in death shall include reasonable medical expenses and 
 54.25  burial expenses in addition to payment to the participant's 
 54.26  estate in an amount up to $200,000.  No compensation shall be 
 54.27  paid under this section for pain and suffering, lost wages, or 
 54.28  other benefits provided in chapter 176.  Payments made under 
 54.29  this section shall be reduced by any proceeds received by the 
 54.30  claimant from any insurance policy covering the loss.  For the 
 54.31  purposes of this section, "insurance policy" does not include 
 54.32  the medical assistance program authorized under chapter 256B or 
 54.33  the general assistance medical care program authorized under 
 54.34  chapter 256D. 
 54.35     (f) The procedure established by this section is exclusive 
 54.36  of all other legal, equitable, and statutory remedies against 
 55.1   the state, its political subdivisions, or employees of the state 
 55.2   or its political subdivisions.  The claimant shall not be 
 55.3   entitled to seek damages from any state or, county, tribal, or 
 55.4   reservation insurance policy or self-insurance program. 
 55.5      (g) A claim is not valid for purposes of this subdivision 
 55.6   if the local agency responsible for supervising the work cannot 
 55.7   verify to the department of human services: 
 55.8      (1) that appropriate safety training and information is 
 55.9   provided to all persons being supervised by the agency under 
 55.10  this subdivision; and 
 55.11     (2) that all programs involving work by those persons 
 55.12  comply with federal Occupational Safety and Health 
 55.13  Administration and state department of labor and industry safety 
 55.14  standards.  A claim that is not valid because of failure to 
 55.15  verify safety training or compliance with safety standards will 
 55.16  not be paid by the department of human services or through the 
 55.17  legislative claims process and must be heard, decided, and paid, 
 55.18  if appropriate, by the local government unit or tribal JOBS 
 55.19  program responsible for supervising the work of the claimant. 
 55.20     (h) This program is effective July 1, 1995.  Claims may be 
 55.21  submitted on or after November 1, 1995. 
 55.22     Sec. 25.  Minnesota Statutes 1995 Supplement, section 
 55.23  256.76, subdivision 1, is amended to read: 
 55.24     Subdivision 1.  Upon the completion of the investigation 
 55.25  the county agency shall decide whether the child is eligible for 
 55.26  assistance under the provisions of sections 256.72 to 256.87 and 
 55.27  determine the amount of the assistance and the date on which the 
 55.28  assistance begins.  A decision on an application for assistance 
 55.29  must be made as promptly as possible and no more than 30 days 
 55.30  from the date of application.  Notwithstanding section 393.07, 
 55.31  the county agency shall not delay approval or issuance of 
 55.32  assistance pending formal action of the county board of 
 55.33  commissioners.  The first month's grant shall be based upon that 
 55.34  portion of the month from the date of application, or from the 
 55.35  date that the applicant meets all eligibility factors, whichever 
 55.36  occurs later, provided that on the date that assistance is first 
 56.1   requested, the county agency shall inquire and determine whether 
 56.2   the person requesting assistance is in immediate need of food, 
 56.3   shelter, clothing, or other emergency assistance.  If an 
 56.4   emergency need is found to exist, the applicant shall be granted 
 56.5   assistance pursuant to section 256.871 within a reasonable 
 56.6   period of time.  It The county shall make a grant of assistance 
 56.7   which shall be binding upon the county and be complied with by 
 56.8   the county until the grant is modified or vacated.  The county 
 56.9   agency shall notify the applicant of its decision in writing.  
 56.10  The assistance shall be paid monthly to the applicant or to the 
 56.11  vendor of medical care upon order of the county agency from 
 56.12  funds appropriated to the county agency for this purpose.  
 56.13     Sec. 26.  Minnesota Statutes 1995 Supplement, section 
 56.14  256.81, is amended to read: 
 56.15     256.81 [COUNTY AGENCY, DUTIES.] 
 56.16     (1) The county agency shall keep such records, accounts, 
 56.17  and statistics in relation to aid to families with dependent 
 56.18  children as the state agency shall prescribe.  
 56.19     (2) Each grant of aid to families with dependent children 
 56.20  shall be paid to the recipient by the county agency unless paid 
 56.21  by the state agency.  Payment must be by check or electronic 
 56.22  means in the form of a warrant immediately redeemable in cash, 
 56.23  electronic benefits transfer, or by direct deposit into the 
 56.24  recipient's account in a financial institution, except in those 
 56.25  instances in which the county agency, subject to the rules of 
 56.26  the state agency, determines that payments for care shall be 
 56.27  made to an individual other than the parent or relative with 
 56.28  whom the dependent child is living or to vendors of goods and 
 56.29  services for the benefit of the child because such parent or 
 56.30  relative is unable to properly manage the funds in the best 
 56.31  interests and welfare of the child.  There is a presumption of 
 56.32  mismanagement of funds whenever a recipient is more than 30 days 
 56.33  in arrears on payment of rent, except when the recipient has 
 56.34  withheld rent to enforce the recipient's right to withhold the 
 56.35  rent in accordance with federal, state, or local housing laws.  
 56.36  In cases of mismanagement based solely on failure to pay rent, 
 57.1   the county may vendor the rent payments to the landlord.  At the 
 57.2   request of a recipient, the state or county may make payments 
 57.3   directly to vendors of goods and services, but only for goods 
 57.4   and services appropriate to maintain the health and safety of 
 57.5   the child, as determined by the county.  
 57.6      (3) The state or county may ask the recipient to give 
 57.7   written consent authorizing the state or county to provide 
 57.8   advance notice to a vendor before vendor payments of rent are 
 57.9   reduced or terminated.  Whenever possible under state and 
 57.10  federal laws and regulations and if the recipient consents, the 
 57.11  state or county shall provide at least 30 days notice to vendors 
 57.12  before vendor payments of rent are reduced or terminated.  If 30 
 57.13  days notice cannot be given, the state or county shall notify 
 57.14  the vendor within three working days after the date the state or 
 57.15  county becomes aware that vendor payments of rent will be 
 57.16  reduced or terminated.  When the county notifies a vendor that 
 57.17  vendor payments of rent will be reduced or terminated, the 
 57.18  county shall include in the notice that it is illegal to 
 57.19  discriminate on the grounds that a person is receiving public 
 57.20  assistance and the penalties for violation.  The county shall 
 57.21  also notify the recipient that it is illegal to discriminate on 
 57.22  the grounds that a person is receiving public assistance and the 
 57.23  procedures for filing a complaint.  The county agency may 
 57.24  develop procedures, including using the MAXIS system, to 
 57.25  implement vendor notice and may charge vendors a fee not 
 57.26  exceeding $5 to cover notification costs. 
 57.27     (4) A vendor payment arrangement is not a guarantee that a 
 57.28  vendor will be paid by the state or county for rent, goods, or 
 57.29  services furnished to a recipient, and the state and county are 
 57.30  not liable for any damages claimed by a vendor due to failure of 
 57.31  the state or county to pay or to notify the vendor on behalf of 
 57.32  a recipient, except under a specific written agreement between 
 57.33  the state or county and the vendor or when the state or county 
 57.34  has provided a voucher guaranteeing payment under certain 
 57.35  conditions.  
 57.36     (5) The county shall be paid from state and federal funds 
 58.1   available therefor the amount provided for in section 256.82.  
 58.2      (6) Federal funds available for administrative purposes 
 58.3   shall be distributed between the state and the counties in the 
 58.4   same proportion that expenditures were made except as provided 
 58.5   for in section 256.017. 
 58.6      (7) The affected county may require that assistance paid 
 58.7   under the AFDC emergency assistance program in the form of a 
 58.8   rental unit damage deposit, less any amount retained by the 
 58.9   landlord to remedy a tenant's default in payment of rent or 
 58.10  other funds due to the landlord pursuant to a rental agreement, 
 58.11  or to restore the premises to the condition at the commencement 
 58.12  of the tenancy, ordinary wear and tear excepted, be returned to 
 58.13  the county when the individual vacates the premises or paid to 
 58.14  the recipient's new landlord as a vendor payment.  The vendor 
 58.15  payment of returned funds shall not be considered a new use of 
 58.16  emergency assistance. 
 58.17     Sec. 27.  [256.9831] [BENEFITS; GAMBLING ESTABLISHMENTS.] 
 58.18     Subdivision 1.  [DEFINITION.] For purposes of this section 
 58.19  "gambling establishment" means a bingo hall licensed under 
 58.20  section 349.164, a racetrack licensed under section 240.06 or 
 58.21  240.09, a casino operated under a tribal-state compact under 
 58.22  section 3.9221, or any other establishment that receives at 
 58.23  least 50 percent of its gross revenue from the conduct of 
 58.24  gambling. 
 58.25     Subd. 2.  [FINANCIAL TRANSACTION CARDS.] The commissioner 
 58.26  shall take all actions necessary to insure that no person may 
 58.27  obtain benefits under chapter 256 or 256D through the use of a 
 58.28  financial transaction card, as defined in section 609.821, 
 58.29  subdivision 1, paragraph (a), at a terminal located in or 
 58.30  attached to a gambling establishment. 
 58.31     Subd. 3.  [WARRANTS.] The commissioner shall take all 
 58.32  actions necessary to insure that warrants issued to pay benefits 
 58.33  under chapter 256 or 256D bear a restrictive endorsement that 
 58.34  prevents their being cashed in a gambling establishment. 
 58.35     Sec. 28.  Minnesota Statutes 1995 Supplement, section 
 58.36  256D.02, subdivision 12a, is amended to read: 
 59.1      Subd. 12a.  [RESIDENT.] (a) For purposes of eligibility for 
 59.2   general assistance under section 256D.05, and payments under 
 59.3   section 256D.051 and general assistance medical care, a 
 59.4   "resident" is a person living in the state for at least 30 days 
 59.5   with the intention of making the person's home here and not for 
 59.6   any temporary purpose.  All applicants for these programs are 
 59.7   required to demonstrate the requisite intent and can do so in 
 59.8   any of the following ways: 
 59.9      (1) by showing that the applicant maintains a residence at 
 59.10  a verified address, other than a place of public accommodation.  
 59.11  An applicant may verify a residence address by presenting a 
 59.12  valid state driver's license, a state identification card, a 
 59.13  voter registration card, a rent receipt, a statement by the 
 59.14  landlord, apartment manager, or homeowner verifying that the 
 59.15  individual is residing at the address, or other form of 
 59.16  verification approved by the commissioner; or 
 59.17     (2) by providing written documentation verifying residence 
 59.18  in accordance with Minnesota Rules, part 9500.1219, subpart 3, 
 59.19  item (c). 
 59.20     (b) An applicant who has been in the state for less than 30 
 59.21  days shall be considered a resident if the applicant can provide 
 59.22  documentation: 
 59.23     (1) that the applicant came to was born in the state in 
 59.24  response to an offer of employment; 
 59.25     (3) by providing verification (2) that the applicant has 
 59.26  been a long-time resident of the state or was formerly a 
 59.27  resident of the state for at least 365 days and is returning to 
 59.28  the state from a temporary absence, as those terms are defined 
 59.29  in rules to be adopted by the commissioner; 
 59.30     (3) that the applicant has come to the state to join a 
 59.31  close relative which, for purposes of this subdivision, means a 
 59.32  parent, grandparent, brother, sister, spouse, or child; or 
 59.33     (4) by providing other persuasive evidence to show that the 
 59.34  applicant is a resident of the state, according to rules adopted 
 59.35  by the commissioner that the applicant has come to this state to 
 59.36  accept a bona fide offer of employment for which the applicant 
 60.1   is eligible.  
 60.2      A county agency shall waive the 30-day residency 
 60.3   requirement in cases of emergencies, including medical 
 60.4   emergencies, or where unusual hardship would result from denial 
 60.5   of general assistance medical care.  A county may waive the 
 60.6   30-day residency requirement in cases of emergencies, including 
 60.7   medical emergencies, or where unusual hardship would result from 
 60.8   denial of general assistance.  The county agency must report to 
 60.9   the commissioner within 30 days on any waiver granted under this 
 60.10  section.  The county shall not deny an application solely 
 60.11  because the applicant does not meet at least one of the criteria 
 60.12  in this subdivision, but shall continue to process the 
 60.13  application and leave the application pending until the 
 60.14  residency requirement is met or until eligibility or 
 60.15  ineligibility is established. 
 60.16     Sec. 29.  Minnesota Statutes 1995 Supplement, section 
 60.17  256D.03, subdivision 2, is amended to read: 
 60.18     Subd. 2.  After December 31, 1980, state aid shall be paid 
 60.19  for 75 percent of all general assistance and grants up to the 
 60.20  standards of sections section 256D.01, subdivision 1a, and 
 60.21  256D.051, and according to procedures established by the 
 60.22  commissioner, except as provided for under section 256.017.  
 60.23  Benefits shall be issued to recipients by the state or county 
 60.24  and funded according to section 256.025, subdivision 3.  
 60.25     Beginning July 1, 1991, the state will reimburse counties 
 60.26  according to the payment schedule in section 256.025 for the 
 60.27  county share of county agency expenditures made under this 
 60.28  subdivision from January 1, 1991, on.  Payment to counties under 
 60.29  this subdivision is subject to the provisions of section 256.017.
 60.30     Sec. 30.  Minnesota Statutes 1995 Supplement, section 
 60.31  256D.03, subdivision 2a, is amended to read: 
 60.32     Subd. 2a.  [COUNTY AGENCY OPTIONS.] Any county agency may, 
 60.33  from its own resources, make payments of general assistance:  
 60.34  (a) at a standard higher than that established by the 
 60.35  commissioner without reference to the standards of section 
 60.36  256D.01, subdivision 1; or (b) to persons not meeting the 
 61.1   eligibility standards set forth in section 256D.05, subdivision 
 61.2   1, or 256D.051 but for whom the aid would further the purposes 
 61.3   established in the general assistance program in accordance with 
 61.4   rules adopted by the commissioner pursuant to the administrative 
 61.5   procedure act.  The Minnesota department of human services may 
 61.6   maintain client records and issue these payments, providing the 
 61.7   cost of benefits is paid by the counties to the department of 
 61.8   human services in accordance with sections 256.01 and 256.025, 
 61.9   subdivision 3. 
 61.10     Sec. 31.  Minnesota Statutes 1995 Supplement, section 
 61.11  256D.03, subdivision 3, is amended to read: 
 61.12     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
 61.13  (a) General assistance medical care may be paid for any person 
 61.14  who is not eligible for medical assistance under chapter 256B, 
 61.15  including eligibility for medical assistance based on a 
 61.16  spenddown of excess income according to section 256B.056, 
 61.17  subdivision 5, and: 
 61.18     (1) who is receiving assistance under section 256D.05 or 
 61.19  256D.051, or who is having a payment made on the person's behalf 
 61.20  under sections 256I.01 to 256I.06; or 
 61.21     (2)(i) who is a resident of Minnesota; and whose equity in 
 61.22  assets is not in excess of $1,000 per assistance unit.  No asset 
 61.23  test shall be applied to children and their parents living in 
 61.24  the same household.  Exempt assets, the reduction of excess 
 61.25  assets, and the waiver of excess assets must conform to the 
 61.26  medical assistance program in chapter 256B, with the following 
 61.27  exception:  the maximum amount of undistributed funds in a trust 
 61.28  that could be distributed to or on behalf of the beneficiary by 
 61.29  the trustee, assuming the full exercise of the trustee's 
 61.30  discretion under the terms of the trust, must be applied toward 
 61.31  the asset maximum; and 
 61.32     (ii) who has countable income not in excess of the 
 61.33  assistance standards established in section 256B.056, 
 61.34  subdivision 4, or whose excess income is spent down pursuant to 
 61.35  section 256B.056, subdivision 5, using a six-month budget 
 61.36  period, except that a one-month budget period must be used for 
 62.1   recipients residing in a long-term care facility.  The method 
 62.2   for calculating earned income disregards and deductions for a 
 62.3   person who resides with a dependent child under age 21 shall be 
 62.4   as specified in section 256.74, subdivision 1.  However, if a 
 62.5   disregard of $30 and one-third of the remainder described in 
 62.6   section 256.74, subdivision 1, clause (4), has been applied to 
 62.7   the wage earner's income, the disregard shall not be applied 
 62.8   again until the wage earner's income has not been considered in 
 62.9   an eligibility determination for general assistance, general 
 62.10  assistance medical care, medical assistance, or aid to families 
 62.11  with dependent children for 12 consecutive months.  The earned 
 62.12  income and work expense deductions for a person who does not 
 62.13  reside with a dependent child under age 21 shall be the same as 
 62.14  the method used to determine eligibility for a person under 
 62.15  section 256D.06, subdivision 1, except the disregard of the 
 62.16  first $50 of earned income is not allowed; or 
 62.17     (3) who would be eligible for medical assistance except 
 62.18  that the person resides in a facility that is determined by the 
 62.19  commissioner or the federal health care financing administration 
 62.20  to be an institution for mental diseases. 
 62.21     (b) Eligibility is available for the month of application, 
 62.22  and for three months prior to application if the person was 
 62.23  eligible in those prior months.  A redetermination of 
 62.24  eligibility must occur every 12 months. 
 62.25     (c) General assistance medical care is not available for a 
 62.26  person in a correctional facility unless the person is detained 
 62.27  by law for less than one year in a county correctional or 
 62.28  detention facility as a person accused or convicted of a crime, 
 62.29  or admitted as an inpatient to a hospital on a criminal hold 
 62.30  order, and the person is a recipient of general assistance 
 62.31  medical care at the time the person is detained by law or 
 62.32  admitted on a criminal hold order and as long as the person 
 62.33  continues to meet other eligibility requirements of this 
 62.34  subdivision.  
 62.35     (d) General assistance medical care is not available for 
 62.36  applicants or recipients who do not cooperate with the county 
 63.1   agency to meet the requirements of medical assistance. 
 63.2      (e) In determining the amount of assets of an individual, 
 63.3   there shall be included any asset or interest in an asset, 
 63.4   including an asset excluded under paragraph (a), that was given 
 63.5   away, sold, or disposed of for less than fair market value 
 63.6   within the 60 months preceding application for general 
 63.7   assistance medical care or during the period of eligibility.  
 63.8   Any transfer described in this paragraph shall be presumed to 
 63.9   have been for the purpose of establishing eligibility for 
 63.10  general assistance medical care, unless the individual furnishes 
 63.11  convincing evidence to establish that the transaction was 
 63.12  exclusively for another purpose.  For purposes of this 
 63.13  paragraph, the value of the asset or interest shall be the fair 
 63.14  market value at the time it was given away, sold, or disposed 
 63.15  of, less the amount of compensation received.  For any 
 63.16  uncompensated transfer, the number of months of ineligibility, 
 63.17  including partial months, shall be calculated by dividing the 
 63.18  uncompensated transfer amount by the average monthly per person 
 63.19  payment made by the medical assistance program to skilled 
 63.20  nursing facilities for the previous calendar year.  The 
 63.21  individual shall remain ineligible until this fixed period has 
 63.22  expired.  The period of ineligibility may exceed 30 months, and 
 63.23  a reapplication for benefits after 30 months from the date of 
 63.24  the transfer shall not result in eligibility unless and until 
 63.25  the period of ineligibility has expired.  The period of 
 63.26  ineligibility begins in the month the transfer was reported to 
 63.27  the county agency, or if the transfer was not reported, the 
 63.28  month in which the county agency discovered the transfer, 
 63.29  whichever comes first.  For applicants, the period of 
 63.30  ineligibility begins on the date of the first approved 
 63.31  application. 
 63.32     (f)(1) Beginning October 1, 1993, an undocumented alien or 
 63.33  a nonimmigrant is ineligible for general assistance medical care 
 63.34  other than emergency services.  For purposes of this 
 63.35  subdivision, a nonimmigrant is an individual in one or more of 
 63.36  the classes listed in United States Code, title 8, section 
 64.1   1101(a)(15), and an undocumented alien is an individual who 
 64.2   resides in the United States without the approval or 
 64.3   acquiescence of the Immigration and Naturalization Service. 
 64.4      (2) This subdivision does not apply to a child under age 
 64.5   18, to a Cuban or Haitian entrant as defined in Public Law 
 64.6   Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 
 64.7   is aged, blind, or disabled as defined in United States Code, 
 64.8   title 42, section 1382c(a)(1). 
 64.9      (3) For purposes of paragraph (f), "emergency services" has 
 64.10  the meaning given in Code of Federal Regulations, title 42, 
 64.11  section 440.255(b)(1), except that it also means services 
 64.12  rendered because of suspected or actual pesticide poisoning. 
 64.13     Sec. 32.  Minnesota Statutes 1995 Supplement, section 
 64.14  256D.05, subdivision 1, is amended to read: 
 64.15     Subdivision 1.  [ELIGIBILITY.] (a) Each person or family 
 64.16  whose income and resources are less than the standard of 
 64.17  assistance established by the commissioner and who is a resident 
 64.18  of the state shall be eligible for and entitled to general 
 64.19  assistance if the person or family is: 
 64.20     (1) a person who is suffering from a professionally 
 64.21  certified permanent or temporary illness, injury, or incapacity 
 64.22  which is expected to continue for more than 30 days and which 
 64.23  prevents the person from obtaining or retaining employment; 
 64.24     (2) a person whose presence in the home on a substantially 
 64.25  continuous basis is required because of the professionally 
 64.26  certified illness, injury, incapacity, or the age of another 
 64.27  member of the household; 
 64.28     (3) a person who has been placed in, and is residing in, a 
 64.29  licensed or certified facility for purposes of physical or 
 64.30  mental health or rehabilitation, or in an approved chemical 
 64.31  dependency domiciliary facility, if the placement is based on 
 64.32  illness or incapacity and is pursuant to a plan developed or 
 64.33  approved by the county agency through its director or designated 
 64.34  representative; 
 64.35     (4) a person who resides in a shelter facility described in 
 64.36  subdivision 3; 
 65.1      (5) a person not described in clause (1) or (3) who is 
 65.2   diagnosed by a licensed physician, psychological practitioner, 
 65.3   or other qualified professional, as mentally retarded or 
 65.4   mentally ill, and that condition prevents the person from 
 65.5   obtaining or retaining employment; 
 65.6      (6) a person who has an application pending for, or is 
 65.7   appealing termination of benefits from, the social security 
 65.8   disability program or the program of supplemental security 
 65.9   income for the aged, blind, and disabled, provided the person 
 65.10  has a professionally certified permanent or temporary illness, 
 65.11  injury, or incapacity which is expected to continue for more 
 65.12  than 30 days and which prevents the person from obtaining or 
 65.13  retaining employment; 
 65.14     (7) a person who is unable to obtain or retain employment 
 65.15  because advanced age significantly affects the person's ability 
 65.16  to seek or engage in substantial work; 
 65.17     (8) a person who has been assessed by a vocational 
 65.18  specialist and, in consultation with the county agency, has been 
 65.19  determined to be unemployable for purposes of this item, a 
 65.20  person is considered employable if there exist positions of 
 65.21  employment in the local labor market, regardless of the current 
 65.22  availability of openings for those positions, that the person is 
 65.23  capable of performing.  The person's eligibility under this 
 65.24  category must be reassessed at least annually.  The county 
 65.25  agency must provide notice to the person not later than 30 days 
 65.26  before annual eligibility under this item ends, informing the 
 65.27  person of the date annual eligibility will end and the need for 
 65.28  vocational assessment if the person wishes to continue 
 65.29  eligibility under this clause.  For purposes of establishing 
 65.30  eligibility under this clause, it is the applicant's or 
 65.31  recipient's duty to obtain any needed vocational assessment; 
 65.32     (9) a person who is determined by the county agency, in 
 65.33  accordance with permanent rules adopted by the commissioner, to 
 65.34  be learning disabled, provided that if a rehabilitation plan for 
 65.35  the person is developed or approved by the county agency, the 
 65.36  person is following the plan; 
 66.1      (10) a child under the age of 18 who is not living with a 
 66.2   parent, stepparent, or legal custodian, but only if:  the child 
 66.3   is legally emancipated or living with an adult with the consent 
 66.4   of an agency acting as a legal custodian; the child is at least 
 66.5   16 years of age and the general assistance grant is approved by 
 66.6   the director of the county agency or a designated representative 
 66.7   as a component of a social services case plan for the child; or 
 66.8   the child is living with an adult with the consent of the 
 66.9   child's legal custodian and the county agency.  For purposes of 
 66.10  this clause, "legally emancipated" means a person under the age 
 66.11  of 18 years who:  (i) has been married; (ii) is on active duty 
 66.12  in the uniformed services of the United States; (iii) has been 
 66.13  emancipated by a court of competent jurisdiction; or (iv) is 
 66.14  otherwise considered emancipated under Minnesota law, and for 
 66.15  whom county social services has not determined that a social 
 66.16  services case plan is necessary, for reasons other than that the 
 66.17  child has failed or refuses to cooperate with the county agency 
 66.18  in developing the plan; 
 66.19     (11) a woman in the last trimester of pregnancy who does 
 66.20  not qualify for aid to families with dependent children.  A 
 66.21  woman who is in the last trimester of pregnancy who is currently 
 66.22  receiving aid to families with dependent children may be granted 
 66.23  emergency general assistance to meet emergency needs; 
 66.24     (12) a person who is eligible for displaced homemaker 
 66.25  services, programs, or assistance under section 268.96, but only 
 66.26  if that person is enrolled as a full-time student; 
 66.27     (13) a person who lives more than two hours round-trip 
 66.28  traveling time from any potential suitable employment; 
 66.29     (14) a person who is involved with protective or 
 66.30  court-ordered services that prevent the applicant or recipient 
 66.31  from working at least four hours per day; 
 66.32     (15)(i) a family as defined in section 256D.02, subdivision 
 66.33  5, which is ineligible for the aid to families with dependent 
 66.34  children program. 
 66.35     (ii) unless all adults in the family are exempt under 
 66.36  section 256D.051, subdivision 3a, one each adult in the family 
 67.1   unit must participate in and cooperate with the food stamp 
 67.2   employment and training program under section 256D.051 each 
 67.3   month that the family unit receives general assistance 
 67.4   benefits.  If the household contains more than one nonexempt 
 67.5   adult, the adults may determine which adult must participate.  
 67.6   The designation may be changed once annually at the annual 
 67.7   redetermination of eligibility.  If no designation is made or if 
 67.8   the adults cannot agree, the county agency shall designate the 
 67.9   adult having earned the greater of the incomes, including 
 67.10  in-kind income, during the 24-month period immediately preceding 
 67.11  the month of application for general assistance, as the adult 
 67.12  that must participate.  When there are no earnings or when 
 67.13  earnings are identical for each adult, the county agency shall 
 67.14  designate which adult must participate.  The recipient's 
 67.15  participation must begin on no later than the first day of the 
 67.16  first full month following the determination of eligibility for 
 67.17  general assistance benefits.  To the extent of available 
 67.18  resources, and with the county agency's consent, the recipient 
 67.19  may voluntarily continue to participate in food stamp employment 
 67.20  and training services for up to three additional consecutive 
 67.21  months immediately following termination of general assistance 
 67.22  benefits in order to complete the provisions of the recipient's 
 67.23  employability development plan.  If the an adult member fails 
 67.24  without good cause to participate in or cooperate with the food 
 67.25  stamp employment and training program, the county agency shall 
 67.26  concurrently terminate that person's eligibility for general 
 67.27  assistance and food stamps for two months or until compliance is 
 67.28  achieved, whichever is shorter, using the notice, good cause, 
 67.29  conciliation and termination procedures specified in section 
 67.30  256D.051; or 
 67.31     (16) a person over age 18 whose primary language is not 
 67.32  English and who is attending high school at least half time. 
 67.33     (b) Persons or families who are not state residents but who 
 67.34  are otherwise eligible for general assistance may receive 
 67.35  emergency general assistance to meet emergency needs. 
 67.36     (c) As a condition of eligibility under paragraph (a), 
 68.1   clauses (1), (3), (5), (8), and (9), the recipient must complete 
 68.2   an interim assistance agreement and must apply for other 
 68.3   maintenance benefits as specified in section 256D.06, 
 68.4   subdivision 5, and must comply with efforts to determine the 
 68.5   recipient's eligibility for those other maintenance benefits.  
 68.6      (d) The burden of providing documentation for a county 
 68.7   agency to use to verify eligibility for general assistance or 
 68.8   for exemption from the food stamp employment and training 
 68.9   program is upon the applicant or recipient.  The county agency 
 68.10  shall use documents already in its possession to verify 
 68.11  eligibility, and shall help the applicant or recipient obtain 
 68.12  other existing verification necessary to determine eligibility 
 68.13  which the applicant or recipient does not have and is unable to 
 68.14  obtain. 
 68.15     Sec. 33.  Minnesota Statutes 1995 Supplement, section 
 68.16  256D.051, subdivision 1, is amended to read: 
 68.17     Subdivision 1.  [FOOD STAMP EMPLOYMENT AND TRAINING 
 68.18  PROGRAM.] The commissioner shall implement a food stamp 
 68.19  employment and training program in order to meet the food stamp 
 68.20  employment and training participation requirements of the United 
 68.21  States Department of Agriculture.  Unless all adult members of 
 68.22  the food stamp household are exempt under subdivision 3a, one 
 68.23  nonexempt each adult recipient in each household the unit must 
 68.24  participate in the food stamp employment and training program 
 68.25  each month that the household person is eligible for food stamps 
 68.26  , up to a maximum period of six calendar months during any 12 
 68.27  consecutive calendar month period.  If the household contains 
 68.28  more than one nonexempt adult, the adults may determine which 
 68.29  adult must participate.  The designation may be changed only 
 68.30  once annually at the annual redetermination of eligibility.  If 
 68.31  no designation is made or if the adults cannot agree, the county 
 68.32  agency shall designate the adult having earned the greater of 
 68.33  the incomes, including in-kind income, during the 24-month 
 68.34  period immediately preceding the month of application for food 
 68.35  stamp benefits, as the adult that must participate.  When there 
 68.36  are no earnings or when earnings are identical for each adult, 
 69.1   the county agency shall designate the adult that must 
 69.2   participate.  The person's participation in food stamp 
 69.3   employment and training services must begin on no later than the 
 69.4   first day of the calendar month following the date determination 
 69.5   of eligibility for food stamps.  With the county agency's 
 69.6   consent, and to the extent of available resources, the person 
 69.7   may voluntarily continue to participate in food stamp employment 
 69.8   and training services for up to three additional consecutive 
 69.9   months immediately following the end of the six-month mandatory 
 69.10  participation period termination of food stamp benefits in order 
 69.11  to complete the provisions of the person's employability 
 69.12  development plan.  
 69.13     Sec. 34.  Minnesota Statutes 1995 Supplement, section 
 69.14  256D.051, subdivision 6, is amended to read: 
 69.15     Subd. 6.  [SERVICE COSTS.] Within the limits of available 
 69.16  resources, the commissioner shall reimburse county agency 
 69.17  expenditures for providing food stamp employment and training 
 69.18  services including direct participation expenses and 
 69.19  administrative costs.  State food stamp employment and training 
 69.20  funds shall be used only to pay the county agency's and food 
 69.21  stamp employment and training service provider's actual costs of 
 69.22  providing participant support services, direct program services, 
 69.23  and program administrative costs for persons who participate in 
 69.24  such employment and training services.  The average annual 
 69.25  reimbursable cost for providing food stamp employment and 
 69.26  training services to a recipient for whom an individualized 
 69.27  employability development plan is not completed must not exceed 
 69.28  $60 for the food stamp employment and training services, and 
 69.29  $240 $340 for necessary recipient support services such as 
 69.30  transportation or child care needed to participate in food stamp 
 69.31  employment and training program.  If an individualized 
 69.32  employability development plan has been completed, the average 
 69.33  annual reimbursable cost for providing food stamp employment and 
 69.34  training services must not exceed $300 $400 for all services and 
 69.35  costs necessary to implement the plan, including the costs of 
 69.36  training, employment search assistance, placement, work 
 70.1   experience, on-the-job training, other appropriate activities, 
 70.2   the administrative and program costs incurred in providing these 
 70.3   services, and necessary recipient support services such as 
 70.4   tools, clothing, and transportation needed to participate in 
 70.5   food stamp employment and training services.  The county agency 
 70.6   may expend additional county funds over and above the dollar 
 70.7   limits of this subdivision without state reimbursement.  
 70.8      Sec. 35.  Minnesota Statutes 1995 Supplement, section 
 70.9   256D.055, is amended to read: 
 70.10     256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 
 70.11     The commissioner of human services shall issue a request 
 70.12  for proposals from counties to submit a plan for developing and 
 70.13  implementing a county-designed program.  The plan shall be for 
 70.14  first-time applicants for aid to families with dependent 
 70.15  children (AFDC) and family general assistance (FGA) and must 
 70.16  emphasize the importance of becoming employed and oriented into 
 70.17  the work force in order to become self-sufficient.  The plan 
 70.18  must target public assistance applicants who are most likely to 
 70.19  become self-sufficient quickly with short-term assistance or 
 70.20  services such as child care, child support enforcement, or 
 70.21  employment and training services.  
 70.22     The plan may include vendor payments, mandatory job search, 
 70.23  refocusing existing county or provider efforts, or other program 
 70.24  features.  The commissioner may approve a county plan which 
 70.25  allows a county to use other program funding for the county work 
 70.26  focus program in a more flexible manner.  Nothing in this 
 70.27  section shall allow payments made to the public assistance 
 70.28  applicant to be less than the amount the applicant would have 
 70.29  received if the program had not been implemented, or reduce or 
 70.30  eliminate a category of eligible participants from the program 
 70.31  without legislative approval.  
 70.32     The commissioner shall not approve a county plan that would 
 70.33  have an adverse impact on the Minnesota family investment plan 
 70.34  demonstration.  If the plan is approved by the commissioner, the 
 70.35  county may implement the plan.  If the plan is approved by the 
 70.36  commissioner, but a federal waiver is necessary to implement the 
 71.1   plan, the commissioner shall apply for the necessary federal 
 71.2   waivers.  If by July 1, 1996, at least four counties have not 
 71.3   proposed a work focused plan, the commissioner of human services 
 71.4   may pursue the work first plan as provided under sections 
 71.5   256.7351 to 256.7359.  However, a county with a work focus plan 
 71.6   that has been approved under this section may implement the plan.
 71.7      Sec. 36.  Minnesota Statutes 1994, section 256D.06, is 
 71.8   amended by adding a subdivision to read: 
 71.9      Subd. 8.  [RECOVERY OF ATM ERRORS.] For recipients 
 71.10  receiving benefits via electronic benefit transfer, if the 
 71.11  recipient is overpaid as a result of an automated teller machine 
 71.12  (ATM) dispensing funds in error to the recipient, the agency may 
 71.13  recover the ATM error by immediately withdrawing funds from the 
 71.14  recipient's electronic benefit transfer account, up to the 
 71.15  amount of the error. 
 71.16     Sec. 37.  Minnesota Statutes 1995 Supplement, section 
 71.17  256D.09, subdivision 1, is amended to read: 
 71.18     Subdivision 1.  [PRESUMPTIVE ELIGIBILITY; VENDOR PAYMENTS.] 
 71.19  Until the county agency has determined the initial eligibility 
 71.20  of the applicant in accordance with section 256D.07 or 256D.051, 
 71.21  grants for emergency general assistance must be in the form of 
 71.22  vouchers or vendor payments unless the county agency determines 
 71.23  that a cash grant will best resolve the applicant's need for 
 71.24  emergency assistance.  Thereafter, grants of general assistance 
 71.25  must be paid in cash, by electronic benefit transfer, or by 
 71.26  direct deposit into the recipient's account in a financial 
 71.27  institution, on the first day of the month, except as allowed in 
 71.28  this section. 
 71.29     Sec. 38.  Minnesota Statutes 1994, section 256D.10, is 
 71.30  amended to read: 
 71.31     256D.10 [HEARINGS PRIOR TO REDUCTION; TERMINATION; 
 71.32  SUSPENSION OF GENERAL ASSISTANCE GRANTS.] 
 71.33     No grant of general assistance except one made pursuant to 
 71.34  section 256D.06, subdivision 2; 256D.051, subdivisions 1, 
 71.35  paragraph (d), and 1a, paragraph (b); or 256D.08, subdivision 2, 
 71.36  shall be reduced, terminated or suspended unless the recipient 
 72.1   receives notice and is afforded an opportunity to be heard prior 
 72.2   to any action by the county agency. 
 72.3      Nothing herein shall deprive a recipient of the right to 
 72.4   full administrative and judicial review of an order or 
 72.5   determination of a county agency as provided for in section 
 72.6   256.045 subsequent to any action taken by a county agency after 
 72.7   a prior hearing. 
 72.8      Sec. 39.  Minnesota Statutes 1994, section 256D.49, 
 72.9   subdivision 3, is amended to read: 
 72.10     Subd. 3.  [OVERPAYMENT OF MONTHLY GRANTS AND RECOVERY OF 
 72.11  ATM ERRORS.] When the county agency determines that an 
 72.12  overpayment of the recipient's monthly payment of Minnesota 
 72.13  supplemental aid has occurred, it shall issue a notice of 
 72.14  overpayment to the recipient.  If the person is no longer 
 72.15  receiving Minnesota supplemental aid, the county agency may 
 72.16  request voluntary repayment or pursue civil recovery.  If the 
 72.17  person is receiving Minnesota supplemental aid, the county 
 72.18  agency shall recover the overpayment by withholding an amount 
 72.19  equal to three percent of the standard of assistance for the 
 72.20  recipient or the total amount of the monthly grant, whichever is 
 72.21  less.  For recipients receiving benefits via electronic benefit 
 72.22  transfer, if the overpayment is a result of an automated teller 
 72.23  machine (ATM) dispensing funds in error to the recipient, the 
 72.24  agency may recover the ATM error by immediately withdrawing 
 72.25  funds from the recipient's electronic benefit transfer account, 
 72.26  up to the amount of the error.  Residents of nursing homes, 
 72.27  regional treatment centers, and facilities with negotiated rates 
 72.28  shall not have overpayments recovered from their personal needs 
 72.29  allowance. 
 72.30     Sec. 40.  Minnesota Statutes 1994, section 256E.08, 
 72.31  subdivision 8, is amended to read: 
 72.32     Subd. 8.  [REPORTING BY COUNTIES.] Beginning in calendar 
 72.33  year 1980 each county shall submit to the commissioner of human 
 72.34  services a financial accounting of the county's community social 
 72.35  services fund, and other data required by the commissioner under 
 72.36  section 256E.05, subdivision 3, paragraph (g), shall include:  
 73.1      (a) A detailed statement of income and expenses 
 73.2   attributable to the fund in the preceding quarter; and 
 73.3      (b) A statement of the source and application of all money 
 73.4   used for social services programs by the county during the 
 73.5   preceding quarter, including the number of clients served and 
 73.6   expenditures for each service provided, as required by the 
 73.7   commissioner of human services.  
 73.8      In addition, each county shall submit to the commissioner 
 73.9   of human services no later than February 15 of each year, a 
 73.10  detailed balance sheet of the community social development fund 
 73.11  for the preceding calendar year.  
 73.12     If county boards have joined or designated human service 
 73.13  boards for purposes of providing community social services 
 73.14  programs, the county boards may submit a joint statement or the 
 73.15  human service board shall submit the statement, as applicable.  
 73.16     Sec. 41.  Minnesota Statutes 1994, section 336.3-206, is 
 73.17  amended to read: 
 73.18     336.3-206 [RESTRICTIVE ENDORSEMENT.] 
 73.19     (a) An endorsement limiting payment to a particular person 
 73.20  or otherwise prohibiting further transfer or negotiation of the 
 73.21  instrument is not effective to prevent further transfer or 
 73.22  negotiation of the instrument. 
 73.23     (b) An endorsement stating a condition to the right of the 
 73.24  endorsee to receive payment does not affect the right of the 
 73.25  endorsee to enforce the instrument.  A person paying the 
 73.26  instrument or taking it for value or collection may disregard 
 73.27  the condition, and the rights and liabilities of that person are 
 73.28  not affected by whether the condition has been fulfilled. 
 73.29     (c) If an instrument bears an endorsement (i) described in 
 73.30  section 336.4-201(b), or (ii) in blank or to a particular bank 
 73.31  using the words "for deposit," "for collection," or other words 
 73.32  indicating a purpose of having the instrument collected by a 
 73.33  bank for the endorser or for a particular account, the following 
 73.34  rules apply: 
 73.35     (1) A person, other than a bank, who purchases the 
 73.36  instrument when so endorsed converts the instrument unless the 
 74.1   amount paid for the instrument is received by the endorser or 
 74.2   applied consistently with the endorsement.  
 74.3      (2) A depositary bank that purchases the instrument or 
 74.4   takes it for collection when so endorsed converts the instrument 
 74.5   unless the amount paid by the bank with respect to the 
 74.6   instrument is received by the endorser or applied consistently 
 74.7   with the endorsement.  
 74.8      (3) A payor bank that is also the depositary bank or that 
 74.9   takes the instrument for immediate payment over the counter from 
 74.10  a person other than a collecting bank converts the instrument 
 74.11  unless the proceeds of the instrument are received by the 
 74.12  endorser or applied consistently with the endorsement.  
 74.13     (4) Except as otherwise provided in paragraph (3), a payor 
 74.14  bank or intermediary bank may disregard the endorsement and is 
 74.15  not liable if the proceeds of the instrument are not received by 
 74.16  the endorser or applied consistently with the endorsement.  
 74.17     (d) Except for an endorsement covered by subsection (c), if 
 74.18  an instrument bears an endorsement using words to the effect 
 74.19  that payment is to be made to the endorsee as agent, trustee, or 
 74.20  other fiduciary for the benefit of the endorser or another 
 74.21  person, the following rules apply: 
 74.22     (1) Unless there is notice of breach of fiduciary duty as 
 74.23  provided in section 336.3-307, a person who purchases the 
 74.24  instrument from the endorsee or takes the instrument from the 
 74.25  endorsee for collection or payment may pay the proceeds of 
 74.26  payment or the value given for the instrument to the endorsee 
 74.27  without regard to whether the endorsee violates a fiduciary duty 
 74.28  to the endorser. 
 74.29     (2) A subsequent transferee of the instrument or person who 
 74.30  pays the instrument is neither given notice nor otherwise 
 74.31  affected by the restriction in the endorsement unless the 
 74.32  transferee or payor knows that the fiduciary dealt with the 
 74.33  instrument or its proceeds in breach of fiduciary duty. 
 74.34     (e) The presence on an instrument of an endorsement to 
 74.35  which this section applies does not prevent a purchaser of the 
 74.36  instrument from becoming a holder in due course of the 
 75.1   instrument unless the purchaser is a converter under subsection 
 75.2   (c) or has notice or knowledge of breach of fiduciary duty as 
 75.3   stated in subsection (d). 
 75.4      (f) In an action to enforce the obligation of a party to 
 75.5   pay the instrument, the obligor has a defense if payment would 
 75.6   violate an endorsement to which this section applies and the 
 75.7   payment is not permitted by this section.  
 75.8      (g) Nothing in this section prohibits or limits the 
 75.9   effectiveness of a restrictive endorsement made under section 
 75.10  256.9831, subdivision 3. 
 75.11     Sec. 42.  [WAIVER AUTHORITY.] 
 75.12     The commissioner of human services shall seek federal 
 75.13  waivers as necessary to implement sections 12 and 14. 
 75.14     Sec. 43.  [SEVERABILITY.] 
 75.15     If any provision of sections 12, 14, or 28 is found to be 
 75.16  unconstitutional or void by a court of competent jurisdiction, 
 75.17  all remaining provisions of the law shall remain valid and shall 
 75.18  be given full effect. 
 75.19     Sec. 44.  [APPROPRIATION.] 
 75.20     $450,000 is appropriated from the general fund to the 
 75.21  commissioner of human services for the fiscal year ending June 
 75.22  30, 1997, to be added to the AFDC child care entitlement fund to 
 75.23  provide child care for two-parent families that are mandatory 
 75.24  participants under Minnesota Statutes, chapter 256. 
 75.25     Sec. 45.  [REPEALER.] 
 75.26     Minnesota Statutes 1994, section 256.736, subdivisions 10b 
 75.27  and 11; Minnesota Statutes 1995 Supplement, section 256.736, 
 75.28  subdivision 13, are repealed. 
 75.29     Sec. 46.  [EFFECTIVE DATE.] 
 75.30     Sections 29 to 31 and 38 are retroactive to July 1, 1995. 
 75.31                             ARTICLE 4
 75.32                             CHILD CARE
 75.33     Section 1.  [APPROPRIATION.] 
 75.34     $5,000,000 is appropriated from the general fund to the 
 75.35  commissioner of children, families, and learning for purposes of 
 75.36  increasing the funding to the basic sliding fee child care 
 76.1   program under Minnesota Statutes, section 256H.03, to be 
 76.2   available for the fiscal year ending June 30, 1997.  
 76.3                              ARTICLE 5 
 76.4                        HEALTH PLAN PROVISIONS 
 76.5      Section 1.  Minnesota Statutes 1994, section 62A.047, is 
 76.6   amended to read: 
 76.7      62A.047 [CHILDREN'S HEALTH SUPERVISION SERVICES AND 
 76.8   PRENATAL CARE SERVICES.] 
 76.9      A policy of individual or group health and accident 
 76.10  insurance regulated under this chapter, or individual or group 
 76.11  subscriber contract regulated under chapter 62C, health 
 76.12  maintenance contract regulated under chapter 62D, or health 
 76.13  benefit certificate regulated under chapter 64B, issued, 
 76.14  renewed, or continued to provide coverage to a Minnesota 
 76.15  resident, must provide coverage for child health supervision 
 76.16  services and prenatal care services.  The policy, contract, or 
 76.17  certificate must specifically exempt reasonable and customary 
 76.18  charges for child health supervision services and prenatal care 
 76.19  services from a deductible, copayment, or other coinsurance or 
 76.20  dollar limitation requirement.  This section does not prohibit 
 76.21  the use of policy waiting periods or preexisting condition 
 76.22  limitations for these services.  Minimum benefits may be limited 
 76.23  to one visit payable to one provider for all of the services 
 76.24  provided at each visit cited in this section subject to the 
 76.25  schedule set forth in this section.  Nothing in this section 
 76.26  applies to a commercial health insurance policy issued as a 
 76.27  companion to a health maintenance organization contract, a 
 76.28  policy designed primarily to provide coverage payable on a per 
 76.29  diem, fixed indemnity, or nonexpense incurred basis, or a policy 
 76.30  that provides only accident coverage. 
 76.31     "Child health supervision services" means pediatric 
 76.32  preventive services, appropriate immunizations, developmental 
 76.33  assessments, and laboratory services appropriate to the age of a 
 76.34  child from birth to age six, and appropriate immunizations from 
 76.35  ages six to 18, as defined by Standards of Child Health Care 
 76.36  issued by the American Academy of Pediatrics.  Reimbursement 
 77.1   must be made for at least five child health supervision visits 
 77.2   from birth to 12 months, three child health supervision visits 
 77.3   from 12 months to 24 months, once a year from 24 months to 72 
 77.4   months. 
 77.5      "Prenatal care services" means the comprehensive package of 
 77.6   medical and psychosocial support provided throughout the 
 77.7   pregnancy, including risk assessment, serial surveillance, 
 77.8   prenatal education, and use of specialized skills and 
 77.9   technology, when needed, as defined by Standards for 
 77.10  Obstetric-Gynecologic Services issued by the American College of 
 77.11  Obstetricians and Gynecologists. 
 77.12     Sec. 2.  [62A.265] [COVERAGE FOR LYME DISEASE.] 
 77.13     Subdivision 1.  [REQUIRED COVERAGE.] Every health plan, 
 77.14  including a plan providing the coverage specified in section 
 77.15  62A.011, subdivision 3, clause (10), must cover treatment for 
 77.16  diagnosed Lyme disease.  
 77.17     Subd. 2.  [SPECIAL RESTRICTIONS PROHIBITED.] No health plan 
 77.18  included in subdivision 1 may impose a special deductible, 
 77.19  copayment, waiting period, or other special restriction on 
 77.20  treatment for Lyme disease that the health plan does not apply 
 77.21  to nonpreventive treatment in general. 
 77.22     Sec. 3.  [EFFECTIVE DATE.] 
 77.23     Sections 1 and 2 are effective August 1, 1996, and applies 
 77.24  to all health plans providing coverage to a Minnesota resident, 
 77.25  issued, renewed, or continued on or after that date.