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HF 3376

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to human services; amending the MFIP work participation program;
changing child care assistance provisions; making technical changes; amending
Minnesota Statutes 2006, sections 119B.011, subdivision 17; 119B.03,
subdivisions 1, 6; 119B.09, subdivisions 1, 9; 119B.125, by adding a subdivision;
119B.21, subdivision 10; 256E.30, subdivision 1; 256E.35, subdivision 7;
256J.24, subdivision 5; 256J.425, subdivision 1; 256J.521, subdivision 4;
256J.54, subdivisions 2, 5; 256J.545; Minnesota Statutes 2007 Supplement,
sections 119B.125, subdivision 2; 119B.13, subdivisions 1, 7; 119B.21,
subdivision 5; 119B.231, subdivision 5; 245C.08, subdivision 2; 256E.35,
subdivision 2; 256J.20, subdivision 3; 256J.49, subdivision 13; 256J.626,
subdivision 7; 256J.95, subdivision 3; repealing Minnesota Statutes 2006,
section 256K.25.

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

ARTICLE 1

MFIP WORK PARTICIPATION

Section 1.

Minnesota Statutes 2006, section 256J.425, subdivision 1, is amended to
read:


Subdivision 1.

Eligibility.

(a) To be eligible for a hardship extension, a participant
in an assistance unit subject to the time limit under section 256J.42, subdivision 1, must
be in compliance in the participant's 60th counted month. For purposes of determining
eligibility for a hardship extension, a participant is in compliance in any month that the
participant has not been sanctioned. new text begin In order to maintain eligibility for any of the hardship
extension categories a participant shall develop and comply with either an employment
plan or a family stabilization services plan, whichever is appropriate.
new text end

(b) If one participant in a two-parent assistance unit is determined to be ineligible for
a hardship extension, the county shall give the assistance unit the option of disqualifying
the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a
one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using
the shared household standard under section 256J.08, subdivision 82a.

(c) Prior to denying an extension, the county must review the sanction status and
determine whether the sanction is appropriate or if good cause exists under section 256J.57.
If the sanction was inappropriately applied or the participant is granted a good cause
exception before the end of month 60, the participant shall be considered for an extension.

Sec. 2.

Minnesota Statutes 2007 Supplement, section 256J.626, subdivision 7, is
amended to read:


Subd. 7.

Performance base funds.

(a) deleted text begin Beginningdeleted text end new text begin For new text end calendar year deleted text begin 2008deleted text end new text begin 2009
and yearly thereafter
new text end , each county and tribe will be allocated 95 percent of their initial
calendar year allocation. Counties and tribes will be allocated additional funds based on
performance as follows:

(1) deleted text begin for calendar year 2008 and yearly thereafter,deleted text end a county or tribe that achieves a
50 percent deleted text begin MFIPdeleted text end new text begin TANFnew text end participation rate or a five percentage point improvement over
the previous year's deleted text begin MFIPdeleted text end new text begin TANFnew text end participation rate under section 256J.751, subdivision 2,
clause (7), as averaged across deleted text begin the four quarterly measurementsdeleted text end new text begin 12 consecutive months new text end for
the most recent year for which the measurements are available, will receive an additional
allocation equal to 2.5 percent of its initial allocation; and

(2) deleted text begin for calendar years 2005 and thereafter, a county or tribe that performs above the
top of its annualized range of expected performance on the three-year self-support index
under section 256J.751, subdivision 2, clause (6), will receive an additional allocation
equal to five percent of its initial allocation; and
deleted text end

deleted text begin (3) for calendar years 2005 and thereafter,deleted text end a county or tribe that performs within new text begin or
above
new text end its range of expected performance on the annualized three-year self-support index
under section 256J.751, subdivision 2, clause (6), will receive an additional allocation
equal to 2.5 percent of its initial allocation; and

deleted text begin (4) for calendar years 2008 and thereafter,deleted text end new text begin (3)new text end a county or tribe that does not achieve
a 50 percent deleted text begin MFIPdeleted text end new text begin TANFnew text end participation rate or a five percentage point improvement over
the previous year's deleted text begin MFIPdeleted text end new text begin TANFnew text end participation rate under section 256J.751, subdivision 2,
clause (7), as averaged across deleted text begin the four quarterly measurementsdeleted text end new text begin 12 consecutive monthsnew text end
for the most recent year for which the measurements are available, will not receive
an additional 2.5 percent of its initial allocation until after negotiating a multiyear
improvement plan with the commissioner; or

deleted text begin (5) for calendar years 2008 and thereafter,deleted text end new text begin (4)new text end a county or tribe that does not
perform within new text begin or abovenew text end its range of expected performance on the annualized three-year
self-support index under section 256J.751, subdivision 2, clause (6), will not receive an
additional allocation equal to 2.5 percent of its initial allocation until after negotiating a
multiyear improvement plan with the commissioner.

(b)new text begin For calendar year 2009 and yearly thereafter,new text end performance-based funds for a
federally approved tribal TANF program in which the state and tribe have in place a
contract under section 256.01, addressing consolidated funding, will be allocated as
follows:

(1) deleted text begin for calendar year 2006 and yearly thereafter,deleted text end a tribe that achieves the participation
rate approved in its federal TANF plan using the average of deleted text begin four quarterly measurementsdeleted text end
new text begin 12 consecutive monthsnew text end for the most recent year for which the measurements are available,
will receive an additional allocation equal to 2.5 percent of its initial allocation; and

(2) deleted text begin for calendar years 2006 and thereafter, a tribe that performs above the top of its
annualized range of expected performance on the three-year self-support index under
section 256J.751, subdivision 2, clause (6), will receive an additional allocation equal
to five percent of its initial allocation; or
deleted text end

deleted text begin (3) for calendar years 2006 and thereafter,deleted text end a tribe that performs within new text begin or abovenew text end its
range of expected performance on the annualized three-year self-support index under
section 256J.751, subdivision 2, clause (6), will receive an additional allocation equal
to 2.5 percent of its initial allocation; or

deleted text begin (4) for calendar year 2008 and yearly thereafter,deleted text end new text begin (3)new text end a tribe that does not achieve the
participation rate approved in its federal TANF plan using the average of deleted text begin four quarterlydeleted text end
deleted text begin measurementsdeleted text end new text begin 12 consecutive monthsnew text end for the most recent year for which the measurements
are available, will not receive an additional allocation equal to 2.5 percent of its initial
allocation until after negotiating a multiyear improvement plan with the commissioner; or

deleted text begin (5) for calendar year 2008 and yearly thereafter,deleted text end new text begin (4)new text end a tribe that does not perform
within new text begin or abovenew text end its range of expected performance on the annualized three-year
self-support index under section 256J.751, subdivision 2, clause (6), will not receive an
additional allocation equal to 2.5 percent until after negotiating a multiyear improvement
plan with the commissioner.

(c) Funds remaining unallocated after the performance-based allocations in
paragraph (a) are available to the commissioner for innovation projects under subdivision
5.

(d) (1) If available funds are insufficient to meet county and tribal allocations
under paragraph (a), the commissioner may make available for allocation funds that are
unobligated and available from the innovation projects through the end of the current
biennium.

(2) If after the application of clause (1) funds remain insufficient to meet county and
tribal allocations under paragraph (a), the commissioner must proportionally reduce the
allocation of each county and tribe with respect to their maximum allocation available
under paragraph (a).

ARTICLE 2

CHILD CARE

Section 1.

Minnesota Statutes 2006, section 119B.03, subdivision 6, is amended to read:


Subd. 6.

Allocation formula.

The basic sliding fee state and federal funds shall be
allocated on a calendar year basis. Funds shall be allocated first in amounts equal to each
county's guaranteed floor according to subdivision 8, with any remaining available funds
allocated according to the following formula:

(a) One-fourth of the funds shall be allocated in proportion to each county's total
expenditures for the basic sliding fee child care program reported during the most recent
fiscal year completed at the time of the notice of allocation.

(b) new text begin Up to new text end one-fourth of the funds shall be allocated deleted text begin based ondeleted text end new text begin in proportion to new text end the
number of families participating in the transition year child care program as reported
during new text begin and averaged over new text end the most recent deleted text begin quarterdeleted text end new text begin six monthsnew text end completed at the time of the
notice of allocation.new text begin Funds in excess of the amount necessary to serve all families in this
category shall be allocated according to paragraph (f).
new text end

(c) new text begin Up to new text end one-fourth of the funds shall be allocated in proportion tonew text begin the average ofnew text end
each county's most deleted text begin recentlydeleted text end new text begin recent six months ofnew text end reported first, second, and third priority
waiting list as defined in subdivision 2 and the reinstatement list of those families whose
assistance was terminated with the approval of the commissioner under Minnesota Rules,
part 3400.0183, subpart 1.new text begin Funds in excess of the amount necessary to serve all families in
this category shall be allocated according to paragraph (f).
new text end

(d) new text begin Up to new text end one-fourth of the funds deleted text begin mustdeleted text end new text begin shallnew text end be allocated in proportion to new text begin the average
of
new text end each county's most deleted text begin recentlydeleted text end new text begin recent six months of new text end reported waiting list as defined in
subdivision 2 and the reinstatement list of those families whose assistance was terminated
with the approval of the commissioner under Minnesota Rules, part 3400.0183, subpart
1.new text begin Funds in excess of the amount necessary to serve all families in this category shall
be allocated according to paragraph (f).
new text end

new text begin (e) The amount necessary to serve all families in paragraphs (b), (c), and (d) shall be
calculated based on the basic sliding fee average cost of care per family in the county with
the highest cost in the most recently completed calendar year.
new text end

new text begin (f) Funds in excess of the amount necessary to serve all families in paragraphs (b),
(c), and (d) shall be allocated in proportion to each county's total expenditures for the basic
sliding fee child care program reported during the most recent fiscal year completed at the
time of the notice of allocation.
new text end

Sec. 2.

Minnesota Statutes 2006, section 119B.09, subdivision 9, is amended to read:


Subd. 9.

Licensed and legal nonlicensed family child care providers; assistance.

Licensed and legal nonlicensed family child care providersnew text begin and their employeesnew text end are not
eligible to receive child care assistance subsidies under this chapter for their own children
or children in their family during the hours they are providing child care or being paid to
provide child care. Child care providersnew text begin and their employeesnew text end are eligible to receive child
care assistance subsidies for their children when they are engaged in other activities that
meet the requirements of this chapter and for which child care assistance can be paid. The
hours for which the providernew text begin or their employeenew text end receives a child care subsidy for their own
children must not overlap with the hours the provider provides child care services.

Sec. 3.

Minnesota Statutes 2007 Supplement, section 119B.231, subdivision 5, is
amended to read:


Subd. 5.

Relationship to current law.

(a) The following provisions in chapter 119B
must be waived or modified for families receiving services under this section.

(b) Notwithstanding section 119B.13, subdivisions 1 and 1a, maximum weekly rates
under this section are 125 percent of the existing maximum weekly rate for like-care.
Providers eligible for a differential rate under section 119B.13, subdivision 3a, remain
eligible for the differential above the rate identified in this section. Only care for children
who have not yet entered kindergarten may be paid at the maximum rate under this
section. The provider's charge for service provided through an SRSA may not exceed the
rate that the provider charges a private-pay family for like-care arrangements.

(c) A family or child care provider may not be assessed an overpayment for care
provided through an SRSA unless:

(1) there was an error in the amount of care authorized for the family; or

(2) the family or provider did not timely report a change as required under the law.

(d) Care provided through an SRSA is authorized on a weekly basis.

(e) Funds appropriated under this section to serve families eligible under section
119B.03 are not allocated through the basic sliding fee formula under section 119B.03.
Funds appropriated under this section are used to offset increased costs when payments
are made under SRSA's.

(f) Notwithstanding section 119B.09, subdivision 6, the maximum amount of child
care assistance that may be authorized for a child receiving care through an SRSA in a
two-week period is 160 hours per child.

new text begin (g) Effective upon date of enactment, absent day payment limits under section
119B.13, subdivision 7, do not apply to children for care paid through SRSA's provided
the family remains eligible under subdivision 3.
new text end

ARTICLE 3

CHILD CARE TECHNICAL

Section 1.

Minnesota Statutes 2006, section 119B.011, subdivision 17, is amended to
read:


Subd. 17.

MFIP.

"MFIP" means the Minnesota family investment program, the
state's TANF program under Public Law 104-193, Title I, and includes the MFIP program
under chapter 256Jdeleted text begin , the work first program under chapter 256K,deleted text end and tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2.

Sec. 2.

Minnesota Statutes 2006, section 119B.03, subdivision 1, is amended to read:


Subdivision 1.

deleted text begin Allocation period;deleted text end Notice of allocation.

deleted text begin When the commissioner
notifies county and human service boards of the forms and instructions they are to
follow in the development of their child care fund plans required under section 119B.08,
subdivision 3
, the commissioner shall also notify county and human services boards of
their estimated child care fund program allocation for the two years covered by the plan.
deleted text end
By October 1 of each year, the commissioner shall notify all counties of their final child
care fund program allocation.

Sec. 3.

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


Subdivision 1.

General eligibility requirements for all applicants for child
care assistance.

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

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

(2) have household income less than or equal to 175 percent of the federal poverty
guidelines, adjusted for family size, at program entry and less than 250 percent of the
federal poverty guidelines, adjusted for family size, at program exit.

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

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

Sec. 4.

Minnesota Statutes 2006, section 119B.125, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Background study required. new text end

new text begin This subdivision only applies to legal,
nonlicensed family child care providers. Prior to authorization, and as part of each
reauthorization required in subdivision 1, the county shall perform a background study on
every member of the provider's household who is age 13 and older. The background study
shall be conducted according to the procedures under subdivision 2.
new text end

Sec. 5.

Minnesota Statutes 2007 Supplement, section 119B.125, subdivision 2, is
amended to read:


Subd. 2.

Persons who cannot be authorized.

(a) deleted text begin A person whodeleted text end new text begin When any
member of the legal, nonlicensed family child care provider's household
new text end meets any of the
conditions under paragraphs (b) to (n)new text begin , the providernew text end must not be authorized as a legal
nonlicensed family child care provider. To determine whether any of the listed conditions
exist, the county must request information about the provider new text begin and other household
members for whom a background study is required under subdivision 1a
new text end from the Bureau
of Criminal Apprehension, the juvenile courts, and social service agencies. When one
of the listed entities does not maintain information on a statewide basis, the county must
contact the entity in the county where the provider resides and any other county in which
the provider new text begin or any household member new text end previously resided in the past year. For purposes of
this subdivision, a finding that a delinquency petition is proven in juvenile court must be
considered a conviction in state district court. If a county has determined that a provider
is able to be authorized in that county, and a family in another county later selects that
provider, the provider is able to be authorized in the second county without undergoing a
new background investigation unless one of the following conditions exists:

(1) two years have passed since the first authorization;

(2) another person age 13 or older has joined the provider's household since the
last authorization;

(3) a current household member has turned 13 since the last authorization; or

(4) there is reason to believe that a household member has a factor that prevents
authorization.

(b) The person has been convicted of one of the following offenses or has admitted to
committing or a preponderance of the evidence indicates that the person has committed an
act that meets the definition of one of the following offenses: sections 609.185 to 609.195,
murder in the first, second, or third degree; 609.2661 to 609.2663, murder of an unborn
child in the first, second, or third degree; 609.322, solicitation, inducement, promotion
of prostitution, or receiving profit from prostitution; 609.342 to 609.345, criminal sexual
conduct in the first, second, third, or fourth degree; 609.352, solicitation of children to
engage in sexual conduct; 609.365, incest; 609.377, felony malicious punishment of a
child; 617.246, use of minors in sexual performance; 617.247, possession of pictorial
representation of a minor; 609.2242 to 609.2243, felony domestic assault; a felony offense
of spousal abuse; a felony offense of child abuse or neglect; a felony offense of a crime
against children; or an attempt or conspiracy to commit any of these offenses as defined in
Minnesota Statutes; or an offense in any other state or country where the elements are
substantially similar to any of the offenses listed in this paragraph.

(c) Less than 15 years have passed since the discharge of the sentence imposed for
the offense and the person has received a felony conviction for one of the following
offenses, or the person has admitted to committing or a preponderance of the evidence
indicates that the person has committed an act that meets the definition of a felony
conviction for one of the following offenses: sections 609.20 to 609.205, manslaughter in
the first or second degree; 609.21, criminal vehicular homicide; 609.215, aiding suicide
or aiding attempted suicide; 609.221 to 609.2231, assault in the first, second, third, or
fourth degree; 609.224, repeat offenses of fifth degree assault; 609.228, great bodily
harm caused by distribution of drugs; 609.2325, criminal abuse of a vulnerable adult;
609.2335, financial exploitation of a vulnerable adult; 609.235, use of drugs to injure or
facilitate a crime; 609.24, simple robbery; 617.241, repeat offenses of obscene materials
and performances; 609.245, aggravated robbery; 609.25, kidnapping; 609.255, false
imprisonment; 609.2664 to 609.2665, manslaughter of an unborn child in the first or
second degree; 609.267 to 609.2672, assault of an unborn child in the first, second, or third
degree; 609.268, injury or death of an unborn child in the commission of a crime; 609.27,
coercion; 609.275, attempt to coerce; 609.324, subdivision 1, other prohibited acts, minor
engaged in prostitution; 609.3451, repeat offenses of criminal sexual conduct in the fifth
degree; 609.378, neglect or endangerment of a child; 609.52, theft; 609.521, possession of
shoplifting gear; 609.561 to 609.563, arson in the first, second, or third degree; 609.582,
burglary in the first, second, third, or fourth degree; 609.625, aggravated forgery; 609.63,
forgery; 609.631, check forgery, offering a forged check; 609.635, obtaining signature
by false pretenses; 609.66, dangerous weapon; 609.665, setting a spring gun; 609.67,
unlawfully owning, possessing, or operating a machine gun; 609.687, adulteration; 609.71,
riot; 609.713, terrorist threats; 609.749, harassment, stalking; 260C.301, termination of
parental rights; 152.021 to 152.022 and 152.0262, controlled substance crime in the first
or second degree; 152.023, subdivision 1, clause (3) or (4), or 152.023, subdivision 2,
clause (4), controlled substance crime in third degree; 152.024, subdivision 1, clause
(2), (3), or (4), controlled substance crime in fourth degree; 617.23, repeat offenses of
indecent exposure; an attempt or conspiracy to commit any of these offenses as defined in
Minnesota Statutes; or an offense in any other state or country where the elements are
substantially similar to any of the offenses listed in this paragraph.

(d) Less than ten years have passed since the discharge of the sentence imposed for
the offense and the person has received a gross misdemeanor conviction for one of the
following offenses or the person has admitted to committing or a preponderance of the
evidence indicates that the person has committed an act that meets the definition of a gross
misdemeanor conviction for one of the following offenses: sections 609.224, fifth degree
assault; 609.2242 to 609.2243, domestic assault; 518B.01, subdivision 14, violation of
an order for protection; 609.3451, fifth degree criminal sexual conduct; 609.746, repeat
offenses of interference with privacy; 617.23, repeat offenses of indecent exposure;
617.241, obscene materials and performances; 617.243, indecent literature, distribution;
617.293, disseminating or displaying harmful material to minors; 609.71, riot; 609.66,
dangerous weapons; 609.749, harassment, stalking; 609.224, subdivision 2, paragraph
(c), fifth degree assault against a vulnerable adult by a caregiver; 609.23, mistreatment
of persons confined; 609.231, mistreatment of residents or patients; 609.2325, criminal
abuse of a vulnerable adult; 609.2335, financial exploitation of a vulnerable adult;
609.233, criminal neglect of a vulnerable adult; 609.234, failure to report maltreatment of
a vulnerable adult; 609.72, subdivision 3, disorderly conduct against a vulnerable adult;
609.265, abduction; 609.378, neglect or endangerment of a child; 609.377, malicious
punishment of a child; 609.324, subdivision 1a, other prohibited acts, minor engaged
in prostitution; 609.33, disorderly house; 609.52, theft; 609.582, burglary in the first,
second, third, or fourth degree; 609.631, check forgery, offering a forged check; 609.275,
attempt to coerce; an attempt or conspiracy to commit any of these offenses as defined in
Minnesota Statutes; or an offense in any other state or country where the elements are
substantially similar to any of the offenses listed in this paragraph.

(e) Less than seven years have passed since the discharge of the sentence imposed
for the offense and the person has received a misdemeanor conviction for one of the
following offenses or the person has admitted to committing or a preponderance of
the evidence indicates that the person has committed an act that meets the definition
of a misdemeanor conviction for one of the following offenses: sections 609.224, fifth
degree assault; 609.2242, domestic assault; 518B.01, violation of an order for protection;
609.3232, violation of an order for protection; 609.746, interference with privacy; 609.79,
obscene or harassing telephone calls; 609.795, letter, telegram, or package opening,
harassment; 617.23, indecent exposure; 609.2672, assault of an unborn child, third degree;
617.293, dissemination and display of harmful materials to minors; 609.66, dangerous
weapons; 609.665, spring guns; an attempt or conspiracy to commit any of these offenses
as defined in Minnesota Statutes; or an offense in any other state or country where the
elements are substantially similar to any of the offenses listed in this paragraph.

(f) The person has been identified by the child protection agency in the county where
the provider resides or a county where the provider has resided or by the statewide child
protection database as a person found by a preponderance of evidence under section
626.556 to be responsible for physical or sexual abuse of a child within the last seven years.

(g) The person has been identified by the adult protection agency in the county
where the provider resides or a county where the provider has resided or by the statewide
adult protection database as the person responsible for abuse or neglect of a vulnerable
adult within the last seven years.

(h) The person has refused to give written consent for disclosure of criminal history
records.

(i) The person has been denied a family child care license or has received a fine or a
sanction as a licensed child care provider that has not been reversed on appeal.

(j) The person has a family child care licensing disqualification that has not been
set aside.

(k) The person has admitted or a county has found that there is a preponderance of
evidence that fraudulent information was given to the county for child care assistance
application purposes or was used in submitting child care assistance bills for payment.

(l) The person has been convicted of the crime of theft by wrongfully obtaining
public assistance or has been found guilty of wrongfully obtaining public assistance by a
federal court, state court, or an administrative hearing determination or waiver, through a
disqualification consent agreement, as part of an approved diversion plan under section
401.065, or a court-ordered stay with probationary or other conditions.

(m) The person has a household member age 13 or older who has access to children
during the hours that care is provided and who meets one of the conditions listed in
paragraphs (b) to (l).

(n) The person has a household member ages ten to 12 who has access to children
during the hours that care is provided; information or circumstances exist which provide
the county with articulable suspicion that further pertinent information may exist showing
the household member meets one of the conditions listed in paragraphs (b) to (l); and the
household member actually meets one of the conditions listed in paragraphs (b) to (l).

Sec. 6.

Minnesota Statutes 2007 Supplement, section 119B.13, subdivision 1, is
amended to read:


Subdivision 1.

Subsidy restrictions.

(a) Beginning July 1, 2006, the maximum rate
paid for child care assistance in any county or multicounty region under the child care
fund shall be the rate for like-care arrangements in the county effective January 1, 2006,
increased by six percent.

(b) Rate changes shall be implemented for services provided in September 2006
unless a participant eligibility redetermination or a new provider agreement is completed
between July 1, 2006, and August 31, 2006.

As necessary, appropriate notice of adverse action must be made according to
Minnesota Rules, part 3400.0185, subparts 3 and 4.

New cases approved on or after July 1, 2006, shall have the maximum rates under
paragraph (a), implemented immediately.

(c) Every year, the commissioner shall survey rates charged by child care providers in
Minnesota to determine the 75th percentile for like-care arrangements in counties. When
the commissioner determines that, using the commissioner's established protocol, the
number of providers responding to the survey is too small to determine the 75th percentile
rate for like-care arrangements in a county or multicounty region, the commissioner may
establish the 75th percentile maximum rate based on like-care arrangements in a county,
region, or category that the commissioner deems to be similar.

(d) A rate which includes a special needs rate paid under subdivision 3 or under a
school readiness service agreement paid under section 119B.231, may be in excess of the
maximum rate allowed under this subdivision.

(e) The department shall monitor the effect of this paragraph on provider rates. The
county shall pay the provider's full charges for every child in care up to the maximum
established. The commissioner shall determine the maximum rate for each type of care on
an hourly, full-day, and weekly basis, including special needs and disability care.

(f) When the provider charge is greater than the maximum provider rate allowed,
the parent is responsible for payment of the difference in the rates in addition to any
family co-payment fee.

new text begin (g) All maximum provider rates changes shall be implemented on the Monday
following the effective date of the maximum provider rate.
new text end

Sec. 7.

Minnesota Statutes 2007 Supplement, section 119B.13, subdivision 7, is
amended to read:


Subd. 7.

Absent days.

(a) Child care providers may not be reimbursed for more
than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more
than ten consecutive full-day absent days, unless the child has a documented medical
condition that causes more frequent absences. Absences due to a documented medical
condition of a parent or sibling who lives in the same residence as the child receiving
child care assistance do not count against the 25-day absent day limit in a fiscal year.
Documentation of medical conditions must be on the forms and submitted according to
the timelines established by the commissioner. A public health nurse or school nurse
may verify the illness in lieu of a medical practitioner. If a provider sends a child home
early due to a medical reason, including, but not limited to, fever or contagious illness,
the child care center director or lead teacher may verify the illness in lieu of a medical
practitioner. If a child attends for part of the time authorized to be in care in a day, but is
absent for part of the time authorized to be in care in that same day, the absent time will be
reimbursed but the time will not count toward the ten consecutive or 25 cumulative absent
day limits. Children in families where at least one parent is under the age of 21, does not
have a high school or general equivalency diploma, and is a student in a school district
or another similar program that provides or arranges for child care, as well as parenting,
social services, career and employment supports, and academic support to achieve high
school graduation, may be exempt from the absent day limits upon request of the program
and approval of the county. If a child attends part of an authorized day, payment to the
provider must be for the full amount of care authorized for that day. Child care providers
may only be reimbursed for absent days if the provider has a written policy for child
absences and charges all other families in care for similar absences.

(b) Child care providers must be reimbursed for up to ten federal or state holidays
or designated holidays per year when the provider charges all families for these days
and the holiday or designated holiday falls on a day when the child is authorized to be
in attendance. Parents may substitute other cultural or religious holidays for the ten
recognized state and federal holidays. Holidays do not count toward the ten consecutive or
25 cumulative absent day limits.

(c) A family or child care provider may not be assessed an overpayment for an
absent day payment unless (1) there was an error in the amount of care authorized for the
family, (2) all of the allowed full-day absent payments for the child have been paid, or (3)
the family or provider did not timely report a change as required under law.

(d) The provider and family must receive notification of the number of absent days
used upon initial provider authorization for a family and when the family has used 15
cumulative absent days. Upon statewide implementation of the Minnesota Electronic
Child Care System, the provider and family new text begin shall receive notification of the number of
absent days used upon initial provider
new text end authorization for a family and ongoing notification
of the number of absent days used as of the date of the notification.

(e) A county may pay for more absent days than the statewide absent day policy
established under this subdivision if current market practice in the county justifies payment
for those additional days. County policies for payment of absent days in excess of the
statewide absent day policy and justification for these county policies must be included in
the county's child care fund plan under section 119B.08, subdivision 3.

Sec. 8.

Minnesota Statutes 2007 Supplement, section 119B.21, subdivision 5, is
amended to read:


Subd. 5.

Child care services grants.

(a) A child care resource and referral program
designated under section 119B.19, subdivision 1a, may award child care services grants
for:

(1) creating new licensed child care facilities and expanding existing facilities,
including, but not limited to, supplies, equipment, facility renovation, and remodeling;

(2) improving licensed child care facility programs;

(3) staff training and development services including, but not limited to, in-service
training, curriculum development, accreditation, certification, consulting, resource
centers, program and resource materials, supporting effective teacher-child interactions,
child-focused teaching, and content-driven classroom instruction;

(4) interim financing;

(5) capacity building through the purchase of appropriate technology to create,
enhance, and maintain business management systems;

(6) emergency assistance for child care programs;

(7) new programs or projects for the creation, expansion, or improvement of
programs that serve ethnic immigrant and refugee communities; and

(8) targeted recruitment initiatives to expand and build the capacity of the child
care system and to improve the quality of care provided by legal nonlicensed child care
providers.

(b) A child care resource and referral program designated under section 119B.19,
subdivision 1a
, may award child care services grants to:

(1) licensed providers;

(2) providers in the process of being licensed;

(3) corporations or public agencies that develop or provide child care services;

(4) school-age care programs;

new text begin (5) legal nonlicensed or family, friend, and neighbor care providers;new text end or

deleted text begin (5)deleted text end new text begin (6) new text end any combination of clauses (1) to deleted text begin (4)deleted text end new text begin (5)new text end .

deleted text begin Unlicensed providers are only eligible for grants under paragraph (a), clause (7).
deleted text end

(c) A recipient of a child care services grant for facility improvements, interim
financing, or staff training and development must provide a 25 percent local match.

Sec. 9.

Minnesota Statutes 2006, section 119B.21, subdivision 10, is amended to read:


Subd. 10.

Family child care technical assistance grants.

(a) A child care resource
and referral organization designated under section 119B.19, subdivision 1a, may award
technical assistance grants of up to $1,000. These grants may be used for:

(1) facility improvements, including, but not limited to, improvements to meet
licensing requirements;

(2) improvements to expand a child care facility or program;

(3) toys and equipment;

(4) technology and software to create, enhance, and maintain business management
systems;

(5) start-up costs;

(6) staff training and development; and

(7) other uses approved by the commissioner.

(b) A child care resource and referral program may award family child care technical
assistance grants to:

(1) licensed family child care providers; deleted text begin or
deleted text end

(2) child care providers in the process of becoming licenseddeleted text begin .deleted text end new text begin ; or
new text end

new text begin (3) legal nonlicensed or family, friend, and neighbor care providers.
new text end

(c) A local match is not required for a family child care technical assistance grant.

Sec. 10.

Minnesota Statutes 2006, section 256E.30, subdivision 1, is amended to read:


Subdivision 1.

Authorization.

The commissioner of deleted text begin educationdeleted text end new text begin human servicesnew text end may
provide financial assistance for community action agencies, Indian reservations, and
migrant and seasonal farmworker organizations to carry out community action programs
as described in section 256E.32 in accordance with the Omnibus Reconciliation Act of
1981, Public Law 97-35, as amended in 1984, Public Law 98-558, state law, and federal
law and regulation.

Sec. 11.

Minnesota Statutes 2006, section 256E.35, subdivision 7, is amended to read:


Subd. 7.

Program reporting.

The fiscal agent on behalf of each fiduciary
organization participating in a family assets for independence initiative must report
quarterly to the commissioner of human services deleted text begin and to the commissioner of educationdeleted text end
identifying the participants with accounts, the number of accounts, the amount of savings
and matches for each participant's account, the uses of the account, and the number of
businesses, homes, and educational services paid for with money from the account, as
well as other information that may be required for the commissioner to administer the
program and meet federal TANF reporting requirements.

Sec. 12. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall renumber Minnesota Statutes, section 119A.45,
as Minnesota Statutes, section 256E.37.
new text end

new text begin (b) The revisor of statutes shall make such cross-reference changes as are necessary
from the renumbering in this section whereever the reference appears in statute.
new text end

ARTICLE 4

MFIP TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2007 Supplement, section 256J.20, subdivision 3,
is amended to read:


Subd. 3.

Other property limitations.

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

(1) a licensed vehicle up to a loan value of less than or equal to $15,000. If the
assistance unit owns more than one licensed vehicle, new text begin the county agency shall new text end determine the
loan value of all additional vehicles and exclude the combined loan value of less than or
equal to $7,500. The county agency shall apply any excess loan value as if it were equity
value to the asset limit described in this section, excluding: (i) the value of one vehicle
per physically disabled person when the vehicle is needed to transport the disabled unit
member; this exclusion does not apply to mentally disabled people; (ii) the value of special
equipment for a disabled member of the assistance unit; and (iii) any vehicle used for
long-distance travel, other than daily commuting, for the employment of a unit member.

To establish the loan value of vehicles, a county agency must use the N.A.D.A.
Official Used Car Guide, Midwest Edition, for newer model cars. When a vehicle is not
listed in the guidebook, or when the applicant or participant disputes the loan value listed
in the guidebook as unreasonable given the condition of the particular vehicle, the county
agency may require the applicant or participant document the loan value by securing a
written statement from a motor vehicle dealer licensed under section 168.27, stating
the amount that the dealer would pay to purchase the vehicle. The county agency shall
reimburse the applicant or participant for the cost of a written statement that documents
a lower loan value;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 2.

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


Subd. 5.

MFIP transitional standard.

The MFIP transitional standard is based
on the number of persons in the assistance unit eligible for both food and cash assistance
unless the restrictions in subdivision 6 on the birth of a child apply. The following table
represents the transitional standards effective October 1, deleted text begin 2004deleted text end new text begin 2007new text end .

Number of Eligible
People
Transitional
Standard
Cash Portion
Food Portion
1
deleted text begin $379deleted text end new text begin $391new text end :
$250
deleted text begin $129 deleted text end new text begin $141
new text end
2
deleted text begin $675deleted text end new text begin $698new text end :
$437
deleted text begin $238 deleted text end new text begin $261
new text end
3
deleted text begin $876deleted text end new text begin $910new text end :
$532
deleted text begin $344 deleted text end new text begin $378
new text end
4
deleted text begin $1,036deleted text end new text begin $1,091new text end :
$621
deleted text begin $415 deleted text end new text begin $470
new text end
5
deleted text begin $1,180deleted text end new text begin $1,245new text end :
$697
deleted text begin $483 deleted text end new text begin $548
new text end
6
deleted text begin $1,350deleted text end new text begin $1,425new text end :
$773
deleted text begin $577 deleted text end new text begin $652
new text end
7
deleted text begin $1,472deleted text end new text begin $1,553new text end :
$850
deleted text begin $622 deleted text end new text begin $703
new text end
8
deleted text begin $1,623deleted text end new text begin $1,713new text end :
$916
deleted text begin $707 deleted text end new text begin $797
new text end
9
deleted text begin $1,772deleted text end new text begin $1,871new text end :
$980
deleted text begin $792 deleted text end new text begin $891
new text end
10
deleted text begin $1,915deleted text end new text begin $2,024new text end :
$1,035
deleted text begin $880 deleted text end new text begin $989
new text end
over 10
add deleted text begin $142deleted text end new text begin $151new text end :
$53
deleted text begin $89 deleted text end new text begin $98
new text end
per additional member.

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

Sec. 3.

Minnesota Statutes 2007 Supplement, section 256J.49, subdivision 13, is
amended to read:


Subd. 13.

Work activity.

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

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

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

(3) unpaid work experience, including community service, volunteer work,
the community work experience program as specified in section 256J.67, unpaid
apprenticeships or internships, and supported work when a wage subsidy is not provided.
Unpaid work experience is only an option if the participant has been unable to obtain or
maintain paid employment in the competitive labor market, and no paid work experience
programs are available to the participant. Unless a participant consents to participating
in unpaid work experience, the participant's employment plan may only include unpaid
work experience if including the unpaid work experience in the plan will meet the
following criteria:

(i) the unpaid work experience will provide the participant specific skills or
experience that cannot be obtained through other work activity options where the
participant resides or is willing to reside; and

(ii) the skills or experience gained through the unpaid work experience will result
in higher wages for the participant than the participant could earn without the unpaid
work experience;

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

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

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

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

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

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

Sec. 4.

Minnesota Statutes 2006, section 256J.521, subdivision 4, is amended to read:


Subd. 4.

Self-employment.

(a) Self-employment activities may be included in an
employment plan contingent on the development of a business plan which establishes a
timetable and earning goals that will result in the participant exiting MFIP assistance.
Business plans must be developed with assistance from an individual or organization with
expertise in small business as approved by the job counselor.

(b) Participants with an approved plan that includes self-employment must meet
the participation requirements in section 256J.55, subdivision 1. Only hours where
the participant earns at least minimum wage shall be counted toward the requirement.
Additional activities and hours necessary to meet the participation requirements in section
256J.55, subdivision 1, must be included in the employment plan.

(c) Employment plans which include self-employment activities must be reviewed
every three months. Participants who fail, without good cause, to make satisfactory
progress as established in the business plan must revise the employment plan to replace
the self-employment with other approved work activities.

deleted text begin (d) The requirements of this subdivision may be waived for participants who are
enrolled in the self-employment investment demonstration program (SEID) under section
256J.65, and who make satisfactory progress as determined by the job counselor and
the SEID provider.
deleted text end

Sec. 5.

Minnesota Statutes 2006, section 256J.54, subdivision 2, is amended to read:


Subd. 2.

Responsibility for assessment and employment plan.

For caregivers
who are under age 18 without a high school diploma or its equivalent, the assessment
under subdivision 1 and the employment plan under subdivision 3 must be completed
by the social services agency under section 257.33. For caregivers who are age 18 or
19 without a high school diploma or its equivalent who choose to have an employment
plan with an education option under subdivision 3, the assessment under subdivision 1
and the employment plan under subdivision 3 must be completed by the job counselor
or, at county option, by the social services agency under section 257.33. Upon reaching
age 18 or 19 a caregiver who received social services under section 257.33 and is without
a high school diploma or its equivalent has the option to choose whether to continue
receiving services under the caregiver's plan from the social services agency or to utilize
an MFIP employment and training service provider. The social services agency or the job
counselor shall consult with deleted text begin representatives of educational agencies that are required to
assist in developing educational plans under section 124D.331
deleted text end new text begin the participant's school in
developing the educational plan
new text end .

Sec. 6.

Minnesota Statutes 2006, section 256J.54, subdivision 5, is amended to read:


Subd. 5.

School attendance required.

(a) deleted text begin Notwithstanding the provisions of
section 256J.56,
deleted text end Minor parents, or 18- or 19-year-old parents without a high school
diploma or its equivalent who chooses an employment plan with an education option
must attend school unless:

(1) transportation services needed to enable the caregiver to attend school are not
available;

(2) appropriate child care services needed to enable the caregiver to attend school
are not available;

(3) the caregiver is ill or incapacitated seriously enough to prevent attendance at
school; or

(4) the caregiver is needed in the home because of the illness or incapacity of
another member of the household. This includes a caregiver of a child who is younger
than six weeks of age.

(b) The caregiver must be enrolled in a secondary school and meeting the school's
attendance requirements. The county, social service agency, or job counselor must verify
at least once per quarter that the caregiver is meeting the school's attendance requirements.
An enrolled caregiver is considered to be meeting the attendance requirements when the
school is not in regular session, including during holiday and summer breaks.

Sec. 7.

Minnesota Statutes 2006, section 256J.545, is amended to read:


256J.545 FAMILY VIOLENCE WAIVER CRITERIA.

(a) In order to qualify for a family violence waiver, an individual must provide
documentation of past or current family violence which may prevent the individual
from participating in certain employment activities. deleted text begin A claim of family violence must
be documented by the applicant or participant providing a sworn statement which is
supported by collateral documentation.
deleted text end

(b) deleted text begin Collateral documentation may consist ofdeleted text end new text begin The following items may be considered
acceptable documentation or verification of family violence
new text end :

(1) police, government agency, or court records;

(2) a statement from a battered women's shelter staff with knowledge of the
circumstances or credible evidence that supports the sworn statement;

(3) a statement from a sexual assault or domestic violence advocate with knowledge
of the circumstances or credible evidence that supports the sworn statement;new text begin or
new text end

(4) a statement from professionals from whom the applicant or recipient has sought
assistance for the abusedeleted text begin ; ordeleted text end new text begin .
new text end

deleted text begin (5) a sworn statement from any other individual with knowledge of circumstances or
credible evidence that supports the sworn statement.
deleted text end

new text begin (c) A claim of family violence may also be documented by a sworn statement from
the applicant or participant and a sworn statement from any other person with knowledge
of the circumstances or credible evidence that supports the client's statement.
new text end

Sec. 8.

Minnesota Statutes 2007 Supplement, section 256J.95, subdivision 3, is
amended to read:


Subd. 3.

Eligibility for diversionary work program.

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

(1) child only cases;

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

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

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

(5) a caregiver age 60 or over;

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

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

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

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

(10) refugees new text begin and asylees new text end as defined in Code of Federal Regulations, title 45, deleted text begin chapter
IV
deleted text end new text begin part 400, subpart dnew text end , section deleted text begin 444.43deleted text end new text begin 400.43new text end , who arrived in the United States in the 12
months prior to the date of application for family cash assistance.

(b) A two-parent family must participate in DWP unless both caregivers meet the
criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit
includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8),deleted text begin ordeleted text end (9)new text begin , or (10)new text end .

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

ARTICLE 5

MISCELLANEOUS TECHNICAL

Section 1.

Minnesota Statutes 2007 Supplement, section 245C.08, subdivision 2, is
amended to read:


Subd. 2.

Background studies conducted by a county agency.

(a) For a background
study conducted by a county agency for adult foster care, family adult day services, and
family child care services, the commissioner shall review:

(1) information from the county agency's record of substantiated maltreatment
of adults and the maltreatment of minors;

(2) information from juvenile courts as required in subdivision 4 for individuals
listed in section 245C.03, subdivision 1, clauses (2), (5), and (6); and

(3) information from the Bureau of Criminal Apprehension.

(b) If the individual has resided in the county for less than five years, the study shall
include the records specified under paragraph (a) for the previous county or counties of
residence for the past five years.

(c) Notwithstanding expungement by a court, the county agency may consider
information obtained under paragraph (a), deleted text begin clausesdeleted text end new text begin clausenew text end (3) deleted text begin and (4)deleted text end , unless the
commissioner received notice of the petition for expungement and the court order for
expungement is directed specifically to the commissioner.

Sec. 2.

Minnesota Statutes 2007 Supplement, section 256E.35, subdivision 2, is
amended to read:


Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Family asset account" means a savings account opened by a household
participating in the Minnesota family assets for independence initiative.

(c) "Fiduciary organization" means:

(1) a community action agency that has obtained recognition under section 256E.31;

(2) a federal community development credit union serving the seven-county
metropolitan area; or

(3) a women-oriented economic development agency serving the seven-county
metropolitan area.

(d) "Financial institution" means a bank, bank and trust, savings bank, savings
association, or credit union, the deposits of which are insured by the Federal Deposit
Insurance Corporation or the National Credit Union Administration.

(e) "Permissible use" means:

(1) postsecondary educational expenses at an deleted text begin accredited public postsecondarydeleted text end
new text begin eligible educational new text end institution new text begin as defined in paragraph (g), new text end including books, supplies, and
equipment required for courses of instruction;

(2) acquisition costs of acquiring, constructing, or reconstructing a residence,
including any usual or reasonable settlement, financing, or other closing costs;

(3) business capitalization expenses for expenditures on capital, plant, equipment,
working capital, and inventory expenses of a legitimate business pursuant to a business
plan approved by the fiduciary organization; and

(4) acquisition costs of a principal residence within the meaning of section 1034 of
the Internal Revenue Code of 1986 which do not exceed 100 percent of the average area
purchase price applicable to the residence determined according to section 143(e)(2) and
(3) of the Internal Revenue Code of 1986.

(f) "Household" means all individuals who share use of a dwelling unit as primary
quarters for living and eating separate from other individuals.

new text begin (g) "Eligible educational institution" means the following:
new text end

new text begin (1) an institution of higher education described in section 101 or 102 of the Higher
Education Act of 1965; or
new text end

new text begin (2) an area vocational education school, as defined in subparagraph (C) or (D) of
United States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational
and Applied Technology Education Act), which is located within any state, as defined in
United States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only
to the extent section 2302 is in effect on the effective date of this section.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 256K.25, new text end new text begin is repealed.
new text end