Minnesota Legislature
HF 822
as introduced - 92nd Legislature (2021 - 2022) Posted on 02/25/2021 05:42pm
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A bill for an act
relating to human services; modifying treatment of self-employment income for
purposes of eligibility for cash assistance programs; amending Minnesota Statutes
2020, sections 119B.09, subdivision 4; 256P.02, subdivisions 1a, 2; 256P.04,
subdivision 4; 256P.05.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 119B.09, subdivision 4, is amended to read:
Subd. 4.
Eligibility; annual income; calculation.
(a) Annual income of the applicant
family is the current monthly income of the family multiplied by 12 or the income for the
12-month period immediately preceding the date of application, or income calculated by
the method which provides the most accurate assessment of income available to the family.
(b) Self-employment income must be calculated based on deleted text begin gross receipts less operating
expensesdeleted text end new text begin section 256P.05, subdivision 2new text end .
(c) Income changes are processed under section 119B.025, subdivision 4. Included lump
sums counted as income under section 256P.06, subdivision 3, must be annualized over 12
months. Income must be verified with documentary evidence. If the applicant does not have
sufficient evidence of income, verification must be obtained from the source of the income.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective May 1, 2022.
new text end
Sec. 2.
Minnesota Statutes 2020, section 256P.02, subdivision 1a, is amended to read:
Subd. 1a.
Exemption.
Participants who qualify for child care assistance programs under
chapter 119B are exempt from this sectionnew text begin , except that the personal property identified in
subdivision 2 is counted toward the asset limit of the child care assistance program under
chapter 119Bnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective May 1, 2022.
new text end
Sec. 3.
Minnesota Statutes 2020, section 256P.02, subdivision 2, is amended to read:
Subd. 2.
Personal property limitations.
The equity value of an assistance unit's personal
property listed in clauses (1) to deleted text begin (4)deleted text end new text begin (5)new text end must not exceed $10,000 for applicants and
participants. For purposes of this subdivision, personal property is limited to:
(1) cash;
(2) bank accounts;
(3) liquid stocks and bonds that can be readily accessed without a financial penalty; deleted text begin and
deleted text end
(4) vehicles not excluded under subdivision 3deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(5) the full value of business accounts used to pay expenses not related to the business.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective May 1, 2022.
new text end
Sec. 4.
Minnesota Statutes 2020, section 256P.04, subdivision 4, is amended to read:
Subd. 4.
Factors to be verified.
(a) The agency shall verify the following at application:
(1) identity of adults;
(2) age, if necessary to determine eligibility;
(3) immigration status;
(4) income;
(5) spousal support and child support payments made to persons outside the household;
(6) vehicles;
(7) checking and savings accountsnew text begin , including but not limited to any business accounts
used to pay expenses not related to the businessnew text end ;
(8) inconsistent information, if related to eligibility;
(9) residence;
(10) Social Security number; and
(11) use of nonrecurring income under section 256P.06, subdivision 3, clause (2), item
(ix), for the intended purpose for which it was given and received.
(b) Applicants who are qualified noncitizens and victims of domestic violence as defined
under section 256J.08, subdivision 73, clause (7), are not required to verify the information
in paragraph (a), clause (10). When a Social Security number is not provided to the agency
for verification, this requirement is satisfied when each member of the assistance unit
cooperates with the procedures for verification of Social Security numbers, issuance of
duplicate cards, and issuance of new numbers which have been established jointly between
the Social Security Administration and the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective May 1, 2022.
new text end
Sec. 5.
Minnesota Statutes 2020, section 256P.05, is amended to read:
256P.05 SELF-EMPLOYMENT EARNINGS.
Subdivision 1.
Exempted programs.
Participants who qualify for deleted text begin child care assistance
programs under chapter 119B,deleted text end Minnesota supplemental aid under chapter 256Ddeleted text begin ,deleted text end and housing
support under chapter 256I on the basis of eligibility for Supplemental Security Income are
exempt from this section.new text begin Participants who qualify for child care assistance programs under
chapter 119B are exempt from subdivision 3.
new text end
Subd. 2.
Self-employment income determinations.
new text begin Applicants and participants must
choose one of the methods described in this subdivision for determining self-employment
earned income. new text end An agency must determine self-employment income, which is either:
(1) one-half of gross earnings from self-employment; or
(2) taxable income as determined from an Internal Revenue Service tax form that has
been filed with the Internal Revenue Service deleted text begin within the lastdeleted text end new text begin for the most recentnew text end yearnew text begin and
according to guidance provided for the Supplemental Nutrition Assistance Programnew text end . A
12-month average using deleted text begin netdeleted text end taxable income shall be used to budget monthly income.
Subd. 3.
Self-employment budgeting.
(a) The self-employment budget period begins
in the month of application or in the first month of self-employment. deleted text begin Applicants and
participants must choose one of the methods described in subdivision 2 for determining
self-employment earned income.
deleted text end
(b) Applicants and participants who elect to use taxable income as described in
subdivision 2, clause (2), to determine self-employment income must continue to use this
method until recertification, unless there is an unforeseen significant change in gross income
equaling a decline in gross income of the amount equal to or greater than the earned income
disregard as defined in section 256P.03 from the income used to determine the benefit for
the current month.
(c) For applicants and participants who elect to use one-half of gross earnings as described
in subdivision 2, clause (1), to determine self-employment income, earnings must be counted
as income in the month received.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective May 1, 2022.
new text end