4th Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to welfare reform; establishing the Minnesota 1.3 family investment program-statewide and work first 1.4 program pilot projects; making changes to public 1.5 assistance programs; making technical changes; making 1.6 program integrity initiatives; amending Minnesota 1.7 Statutes 1996, sections 13.46, subdivisions 1 and 2; 1.8 13.82, subdivision 1; 84.98, subdivision 3; 136A.125, 1.9 subdivision 2; 196.27; 237.70, subdivision 4a; 1.10 254B.02, subdivision 1; 256.01, subdivisions 2 and 4a; 1.11 256.017, subdivisions 1, 2, and 4; 256.019; 256.031, 1.12 subdivision 5, and by adding a subdivision; 256.033, 1.13 subdivisions 1 and 1a; 256.045, subdivision 3; 1.14 256.046; 256.736, subdivision 3a; 256.74, subdivision 1.15 1, and by adding a subdivision; 256.81; 256.82, 1.16 subdivision 2; 256.935, subdivision 1; 256.9354, by 1.17 adding a subdivision; 256.98, subdivisions 1, 4, and 1.18 8; 256.981; 256.983, subdivisions 1 and 4; 256.984, 1.19 subdivision 1; 256.986; 256.9861, subdivisions 1, 2, 1.20 4, and 5; 256B.055, subdivisions 3, 5, and by adding a 1.21 subdivision; 256B.056, subdivisions 1a, 3, and 4; 1.22 256B.057, subdivisions 1, 1b, and 2b; 256B.06, 1.23 subdivision 4, and by adding a subdivision; 256B.062; 1.24 256D.01, subdivisions 1, 1a, and 1e; 256D.02, 1.25 subdivisions 6 and 12a; 256D.03, subdivision 3; 1.26 256D.05, subdivisions 1, 2, 5, 7, and 8; 256D.051, 1.27 subdivisions 1a, 2a, 3a, and by adding a subdivision; 1.28 256D.055; 256D.06, subdivision 2; 256D.08, 1.29 subdivisions 1 and 2; 256D.09, subdivision 6, and by 1.30 adding a subdivision; 256D.435, subdivision 3; 1.31 256D.44, subdivision 5; 256E.03, subdivision 2; 1.32 256E.06, subdivisions 1 and 3; 256E.07, subdivision 1; 1.33 256E.08, subdivision 3; 256F.05, subdivision 5; 1.34 256G.01, subdivision 4; 256G.03, subdivision 2; 1.35 256G.05, subdivision 2; 257.3573, subdivision 2; 1.36 259.67, subdivision 4; 260.38; 268.0111, subdivisions 1.37 5 and 7; 268.0122, subdivision 3; 268.552, subdivision 1.38 5; 268.6751, subdivision 1; 268.676, subdivision 1; 1.39 268.86, subdivision 2; 268.871, subdivision 1; 268.90, 1.40 subdivision 2; 268.916; 268.95, subdivision 4; 1.41 270A.03, subdivision 5; 388.23, subdivision 1; 393.07, 1.42 subdivisions 6 and 10; 477A.0122, subdivision 2; and 1.43 550.37, subdivision 14; proposing coding for new law 1.44 in Minnesota Statutes, chapters 256; 256B; and 256D; 1.45 proposing coding for new law as Minnesota Statutes, 1.46 chapters 256J; and 256K; repealing Minnesota Statutes 2.1 1996, sections 256.12, subdivisions 9, 10, 14, 15, 19, 2.2 20, 21, 22, and 23; 256.72; 256.73, subdivisions 1, 2.3 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 10, and 11; 2.4 256.7341; 256.7351; 256.7352; 256.7353; 256.7354; 2.5 256.7355; 256.7356; 256.7357; 256.7358; 256.7359; 2.6 256.736, subdivisions 16 and 18; 256.7365, 2.7 subdivisions 1, 2, 3, 4, 5, 6, 7, and 9; 256.7366; 2.8 256.737; 256.738; 256.7381; 256.7382; 256.7383; 2.9 256.7384; 256.7385; 256.7386; 256.7387; 256.7388; 2.10 256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 2.11 256.745; 256.75; 256.76, subdivision 1; 256.78; 2.12 256.80; 256.81; 256.84; 256.85; 256.86; 256.863; 2.13 256.871; 256.8711; 256.879; 256D.02, subdivision 5; 2.14 256D.0511; and 256D.065. 2.15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.16 ARTICLE 1 2.17 MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 2.18 Section 1. [256J.01] [ESTABLISHING MINNESOTA FAMILY 2.19 INVESTMENT PROGRAM-STATEWIDE.] 2.20 Subdivision 1. [IMPLEMENTATION OF MINNESOTA FAMILY 2.21 INVESTMENT PROGRAM-STATEWIDE (MFIP-S).] This chapter and chapter 2.22 256K may be cited as the Minnesota family investment 2.23 program-statewide (MFIP-S). MFIP-S is the statewide 2.24 implementation of components of the Minnesota family investment 2.25 plan (MFIP) authorized under section 256.031 and Minnesota 2.26 family investment plan-Ramsey county (MFIP-R) in section 256.047. 2.27 Subd. 2. [IMPLEMENTATION OF TEMPORARY ASSISTANCE FOR NEEDY 2.28 FAMILIES (TANF).] The Personal Responsibility and Work 2.29 Opportunity Reconciliation Act of 1996, Public Law Number 2.30 104-193, eliminates the entitlement program of aid to families 2.31 with dependent children (AFDC) and replaces it with block grants 2.32 to states for temporary assistance for needy families (TANF). 2.33 TANF provides cash assistance for a limited time to families 2.34 with children and to pregnant women. Minnesota's TANF 2.35 assistance will be provided through a statewide expansion of 2.36 MFIP. The modifications specified in this chapter are necessary 2.37 to comply with the new federal law and to improve MFIP. 2.38 Eligible applicants and recipients of AFDC, family general 2.39 assistance, and food stamps will be converted to the MFIP-S 2.40 program. Effective January 1, 1998, any new application 2.41 received for family cash assistance will be processed under the 2.42 rules of chapter 256J. Case maintenance conversion for existing 3.1 AFDC and FGA cases to MFIP-S as described in chapter 256J will 3.2 begin January 1, 1998, and continue through March 31, 1998. 3.3 Subd. 3. [RELATIONSHIP TO OTHER STATUTES AND 3.4 RULES.] MFIP-S replaces eligibility for families with children 3.5 and pregnant women under the general assistance program, 3.6 governed by sections 256D.01 to 256D.21 and Minnesota Rules, 3.7 parts 9500.1200 to 9500.1270. 3.8 Subd. 4. [CHANGES TO WAIVERS.] The commissioner of human 3.9 services may negotiate and obtain changes in the federal waivers 3.10 and terms and conditions contained in MFIP, MFIP-R, and MFIP-S. 3.11 The commissioner may also terminate federal waivers by directing 3.12 so in the applicable state plan. 3.13 Subd. 5. [COMPLIANCE SYSTEM.] The commissioner shall 3.14 administer a compliance system for the state's temporary 3.15 assistance for needy families (TANF) program, the food stamp 3.16 program, emergency assistance, general assistance, medical 3.17 assistance, general assistance medical care, emergency general 3.18 assistance, Minnesota supplemental aid, preadmission screening, 3.19 child support program, and alternative care grants under the 3.20 powers and authorities named in section 256.01, subdivision 2. 3.21 The purpose of the compliance system is to permit the 3.22 commissioner to supervise the administration of public 3.23 assistance programs and to enforce timely and accurate 3.24 distribution of benefits, completeness of service and efficient 3.25 and effective program management and operations, to increase 3.26 uniformity and consistency in the administration and delivery of 3.27 public assistance programs throughout the state, and to reduce 3.28 the possibility of sanction and fiscal disallowances for 3.29 noncompliance with federal regulations and state statutes. 3.30 Sec. 2. [256J.02] [FEDERAL TEMPORARY ASSISTANCE FOR NEEDY 3.31 FAMILIES BLOCK GRANT.] 3.32 Subdivision 1. [COMMISSIONER'S AUTHORITY TO ADMINISTER 3.33 BLOCK GRANT FUNDS.] The commissioner of human services is 3.34 authorized to receive, administer, and expend funds available 3.35 under the TANF block grant authorized under title I of Public 3.36 Law Number 104-193, the Personal Responsibility and Work 4.1 Opportunity Reconciliation Act of 1996. 4.2 Subd. 2. [USE OF MONEY.] State money appropriated for 4.3 purposes of this section and TANF block grant money must be used 4.4 for: 4.5 (1) financial assistance to or on behalf of any minor child 4.6 who is a resident of this state under section 256J.12; 4.7 (2) employment and training services under this chapter or 4.8 chapter 256K; 4.9 (3) emergency financial assistance and services under 4.10 section 256J.48; 4.11 (4) diversionary assistance under section 256J.47; and 4.12 (5) program administration under this chapter. 4.13 Subd. 3. [CARRY FORWARD OF FEDERAL MONEY.] Temporary 4.14 assistance for needy families block grant money must be 4.15 appropriated for the purposes in this section and is available 4.16 until expended. 4.17 Subd. 4. [AUTHORITY TO TRANSFER.] Subject to limitations 4.18 of title I of Public Law Number 104-193, the Personal 4.19 Responsibility and Work Opportunity Reconciliation Act of 1996, 4.20 the legislature may transfer money from the TANF block grant to 4.21 the child care fund under chapter 119B, or the Title XX block 4.22 grant under section 256E.07. 4.23 Subd. 5. [INDIRECT COST LIABILITY.] Notwithstanding the 4.24 provisions of section 16A.127, the statewide and agency indirect 4.25 cost liability identified as part of the TANF grant for any 4.26 current fiscal year shall be limited to no more than the amount 4.27 received in fiscal year 1996. 4.28 Sec. 3. [256J.06] [COMMUNITY INVOLVEMENT.] 4.29 The MFIP-S program must be administered in a way that, in 4.30 addition to the county agency, other sectors in the community 4.31 such as employers from the public and private sectors, 4.32 not-for-profit organizations, educational and social service 4.33 agencies, program participants, labor unions, and neighborhood 4.34 associations are involved. 4.35 Sec. 4. [256J.08] [DEFINITIONS.] 4.36 Subdivision 1. [SCOPE OF DEFINITIONS.] The terms used in 5.1 this chapter have the following meanings unless otherwise 5.2 provided for by text. 5.3 Subd. 2. [ABSENT PARENT.] "Absent parent" means a minor 5.4 child's parent who does not live in the same home as the child. 5.5 Subd. 3. [AGENCY ERROR.] "Agency error" means an error 5.6 that results in an overpayment or underpayment to an assistance 5.7 unit and is not caused by an applicant's or participant's 5.8 failure to provide adequate, correct, or timely information 5.9 about income, property, household composition, or other 5.10 circumstances. 5.11 Subd. 4. [APPEAL.] "Appeal" means a written statement from 5.12 an applicant or participant who requests a hearing under section 5.13 256J.31. 5.14 Subd. 5. [APPLICANT.] "Applicant" means a person who has 5.15 submitted to a county agency an application and whose 5.16 application has not been acted upon, denied, or voluntarily 5.17 withdrawn. 5.18 Subd. 6. [APPLICATION.] "Application" means the submission 5.19 by or on behalf of a family to a county agency of a completed, 5.20 signed, and dated form, prescribed by the commissioner, that 5.21 indicates the desire to receive assistance. 5.22 Subd. 7. [ASSISTANCE UNIT OR MFIP-S ASSISTANCE 5.23 UNIT.] "Assistance unit" or "MFIP-S assistance unit" means a 5.24 group of mandatory or optional people receiving or applying for 5.25 MFIP-S benefits together. 5.26 Subd. 8. [AUTHORIZED REPRESENTATIVE.] "Authorized 5.27 representative" means a person who is authorized, in writing, by 5.28 an applicant or participant to act on the applicant's or 5.29 participant's behalf in matters involving the application for 5.30 assistance or participation in MFIP-S. 5.31 Subd. 9. [BASIC NEEDS.] "Basic needs" means the minimum 5.32 personal requirements of subsistence and is restricted to food, 5.33 clothing, shelter, utilities, and other items for which the 5.34 loss, or lack of basic needs, is determined by the county agency 5.35 to pose a direct, immediate threat to the physical health or 5.36 safety of the applicant or participant. 6.1 Subd. 10. [BUDGET MONTH.] "Budget month" means the 6.2 calendar month which the county agency uses to determine the 6.3 income or circumstances of an assistance unit to calculate the 6.4 amount of the assistance payment in the payment month. 6.5 Subd. 11. [CAREGIVER.] "Caregiver" means a minor child's 6.6 natural or adoptive parent or parents who live in the home with 6.7 the minor child. For purposes of determining eligibility for 6.8 this program, caregiver also means any of the following 6.9 individuals, if adults, who live with and provide care and 6.10 support to a minor child when the minor child's natural or 6.11 adoptive parent or parents do not reside in the same home: 6.12 legal custodians, grandfather, grandmother, brother, sister, 6.13 stepfather, stepmother, stepbrother, stepsister, uncle, aunt, 6.14 first cousin, nephew, niece, person of preceding generation as 6.15 denoted by prefixes of "great," "great-great," or 6.16 "great-great-great," or a spouse of any person named in the 6.17 above groups even after the marriage ends by death or divorce. 6.18 Subd. 12. [CLIENT ERROR.] "Client error" means an error 6.19 that results in an overpayment or underpayment and is due to an 6.20 applicant's or participant's failure to provide adequate, 6.21 correct, or timely information concerning income, property, 6.22 household composition, or other circumstances. 6.23 Subd. 13. [COMMISSIONER.] "Commissioner" means the 6.24 commissioner of human services or the commissioner's designated 6.25 representative. 6.26 Subd. 14. [CORRECTIVE PAYMENT.] "Corrective payment" means 6.27 an assistance payment that is made to correct an underpayment. 6.28 Subd. 15. [COUNTABLE INCOME.] "Countable income" means 6.29 earned and unearned income that is not excluded under section 6.30 256J.21, subdivision 2, or disregarded under section 256J.21, 6.31 subdivision 3. 6.32 Subd. 16. [COUNTED EARNINGS.] "Counted earnings" means the 6.33 earned income that remains after applicable disregards under 6.34 section 256J.21, subdivision 4, have been subtracted from gross 6.35 earned income. 6.36 Subd. 17. [COUNTY AGENCY.] "County agency" means the 7.1 agency designated by the county board to implement financial 7.2 assistance for current programs and for MFIP-S and the agency 7.3 responsible for enforcement of child support collection, and a 7.4 county or multicounty agency that is authorized under sections 7.5 393.01, subdivision 7, and 393.07, subdivision 2, to administer 7.6 MFIP-S. 7.7 Subd. 18. [COUNTY BOARD.] "County board" means a board of 7.8 commissioners, a local services agency as defined in chapter 7.9 393, a board established under the Joint Powers Act, section 7.10 471.59, or a human services board under chapter 402. 7.11 Subd. 19. [COUNTY OF FINANCIAL RESPONSIBILITY.] "County of 7.12 financial responsibility" means the county that has financial 7.13 responsibility for providing public assistance as specified in 7.14 chapter 256G. 7.15 Subd. 20. [COUNTY OF RESIDENCE.] "County of residence" 7.16 means the county where the caregiver has established a home. 7.17 Subd. 21. [DATE OF APPLICATION.] "Date of application" 7.18 means the date on which the county agency receives an 7.19 applicant's signed application. 7.20 Subd. 22. [DEEM.] "Deem" means to treat all or part of the 7.21 income of an individual who is not in the assistance unit, but 7.22 who is financially responsible for members of the assistance 7.23 unit, as if it were income available to the assistance unit. 7.24 Subd. 23. [DEPARTMENT.] "Department" means the Minnesota 7.25 department of human services. 7.26 Subd. 24. [DISREGARD.] "Disregard" means earned income 7.27 that is not counted when determining initial eligibility or 7.28 ongoing eligibility and calculating the amount of the assistance 7.29 payment for participants. 7.30 Subd. 25. [DOCUMENTATION.] "Documentation" means a written 7.31 statement or record that substantiates or validates an assertion 7.32 made by a person or an action taken by a person, agency, or 7.33 entity. 7.34 Subd. 26. [EARNED INCOME.] "Earned income" means cash or 7.35 in-kind income earned through the receipt of wages, salary, 7.36 commissions, profit from employment activities, net profit from 8.1 self-employment activities, payments made by an employer for 8.2 regularly accrued vacation or sick leave, and any other profit 8.3 from activity earned through effort or labor. 8.4 Subd. 27. [EARNED INCOME TAX CREDIT.] "Earned income tax 8.5 credit" means the payment which can be obtained by a qualified 8.6 person from an employer or from the Internal Revenue Service as 8.7 provided by section 290.0671 and United States Code, title 26, 8.8 subtitle A, chapter 1, subchapter A, part 4, subpart C, section 8.9 32. 8.10 Subd. 28. [EMERGENCY.] "Emergency" means a situation or a 8.11 set of circumstances that causes or threatens to cause 8.12 destitution to a minor child. 8.13 Subd. 29. [EQUITY VALUE.] "Equity value" means the amount 8.14 of equity in real or personal property owned by a person and is 8.15 determined by subtracting any outstanding encumbrances from the 8.16 fair market value. 8.17 Subd. 30. [EXCLUDED TIME.] "Excluded time" has the meaning 8.18 given in section 256G.02. 8.19 Subd. 31. [EXPEDITED ISSUANCE OF THE FOOD STAMP 8.20 PORTION.] "Expedited issuance of the food stamp portion" means 8.21 the issuance of the food stamp portion to eligible assistance 8.22 units on the day of application as provided in section 393.07, 8.23 subdivision 10a. 8.24 Subd. 32. [FAIR HEARING OR HEARING.] "Fair hearing" or 8.25 "hearing" means the evidentiary hearing conducted by the 8.26 department appeals referee to resolve disputes as specified in 8.27 section 256J.40, or if not applicable, section 256.045. 8.28 Subd. 33. [FAIR MARKET VALUE.] "Fair market value" means 8.29 the price that an item of a particular make, model, size, 8.30 material, or condition would sell for on the open market in the 8.31 particular geographic area. 8.32 Subd. 34. [FAMILY.] "Family" includes: 8.33 (1) the following individuals who live together: a minor 8.34 child or a group of minor children related to each other as 8.35 siblings, half siblings, stepsiblings, or adoptive siblings, 8.36 together with their natural, adoptive parents, stepparents, or 9.1 caregiver as defined in subdivision 11; and 9.2 (2) a pregnant woman with no other children. 9.3 Subd. 35. [FAMILY WAGE LEVEL.] "Family wage level" means 9.4 110 percent of the transitional standard. 9.5 Subd. 36. [FEDERAL INSURANCE CONTRIBUTION ACT OR 9.6 FICA.] "Federal Insurance Contribution Act" or "FICA" means the 9.7 federal law under United States Code, title 26, subtitle C, 9.8 chapter 21, subchapter A, sections 3101 to 3126, that requires 9.9 withholding or direct payment from earned income. 9.10 Subd. 37. [FINANCIAL CASE RECORD.] "Financial case record" 9.11 means an assistance unit's financial eligibility file. 9.12 Subd. 38. [FULL-TIME STUDENT.] "Full-time student" means a 9.13 person who is enrolled in a graded or ungraded primary, 9.14 intermediate, secondary, GED preparatory, trade, technical, 9.15 vocational, or post-secondary school, and who meets the school's 9.16 standard for full-time attendance. 9.17 Subd. 39. [GENERAL EDUCATIONAL DEVELOPMENT OR 9.18 GED.] "General educational development" or "GED" means the 9.19 general educational development certification issued by the 9.20 Minnesota board of education as an equivalent to a secondary 9.21 school diploma under Minnesota Rules, part 3500.3100, subpart 4. 9.22 Subd. 40. [GROSS EARNED INCOME.] "Gross earned income" 9.23 means earned income from employment before mandatory and 9.24 voluntary payroll deductions. Gross earned income includes 9.25 salaries, wages, tips, gratuities, commissions, incentive 9.26 payments from work or training programs, payments made by an 9.27 employer for regularly accrued vacation or sick leave, and 9.28 profits from other activity earned by an individual's effort or 9.29 labor. Gross earned income includes uniform and meal allowances 9.30 if federal income tax is deducted from the allowance. Gross 9.31 earned income includes flexible work benefits received from an 9.32 employer if the employee has the option of receiving the benefit 9.33 or benefits in cash. 9.34 Subd. 41. [GROSS INCOME.] "Gross income" is the sum of 9.35 gross earned income and unearned income. 9.36 Subd. 42. [GROSS RECEIPTS.] "Gross receipts" means the 10.1 money received by a business before the expenses of the business 10.2 are deducted. 10.3 Subd. 43. [HALF-TIME STUDENT.] "Half-time student" means a 10.4 person who is enrolled in a graded or ungraded primary, 10.5 intermediate, secondary, GED preparatory, trade, technical, 10.6 vocational, or post-secondary school, and who meets the school's 10.7 standard of half-time attendance. 10.8 Subd. 44. [HOME.] "Home" means the primary place of 10.9 residence used by a person as the base for day-to-day living and 10.10 does not include locations used as mail drops. 10.11 Subd. 45. [HOMESTEAD.] "Homestead" means the home that is 10.12 owned by, and is the usual residence of, the assistance unit 10.13 together with the surrounding property which is not separated 10.14 from the home by intervening property owned by others. Public 10.15 rights-of-way, such as roads which run through the surrounding 10.16 property and separate it from the home, do not affect the 10.17 exemption of the property. Homestead includes an asset that is 10.18 not real property that the assistance unit uses as a home, such 10.19 as a vehicle. 10.20 Subd. 46. [HOUSEHOLD.] "Household" means a group of 10.21 persons who live together. 10.22 Subd. 47. [INCOME.] "Income" means cash or in-kind 10.23 benefit, whether earned or unearned, received by or available to 10.24 an applicant or participant that is not an asset under section 10.25 256J.20. 10.26 Subd. 48. [INITIAL ELIGIBILITY.] "Initial eligibility" 10.27 means the determination of eligibility for an MFIP-S applicant. 10.28 Subd. 49. [IN-KIND INCOME.] "In-kind income" means income, 10.29 benefits, or payments which are provided in a form other than 10.30 money or liquid assets, including the forms of goods, produce, 10.31 services, privileges, or payments made on behalf of an applicant 10.32 or participant by a third party. 10.33 Subd. 50. [INQUIRY.] "Inquiry" means a communication to a 10.34 county agency through mail, telephone, or in person, by which a 10.35 person or authorized representative requests information about 10.36 public assistance. The county agency shall also treat as an 11.1 inquiry any communication in which a person requesting 11.2 assistance offers information about the person's family 11.3 circumstances that indicates that eligibility for public 11.4 assistance may exist. 11.5 Subd. 51. [LEGALLY AVAILABLE.] "Legally available" means a 11.6 person's right under the law to secure, possess, dispose of, or 11.7 control income or property. 11.8 Subd. 52. [LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM OR 11.9 LIHEAP.] "Low-income home energy assistance program" or "LIHEAP" 11.10 means the program authorized under United States Code, title 42, 11.11 chapter 94, subchapter II, sections 8621 to 8629, and 11.12 administered by the Minnesota department of economic security. 11.13 Subd. 53. [LUMP SUM.] "Lump sum" means nonrecurring income 11.14 that is not excluded in section 256J.21. 11.15 Subd. 54. [MEDICAL ASSISTANCE.] "Medical assistance" means 11.16 the program established under chapter 256B and Title XIX of the 11.17 Social Security Act. 11.18 Subd. 55. [MFIP-S HOUSEHOLD REPORT FORM.] "MFIP-S 11.19 household report form" means a form prescribed by the 11.20 commissioner that a participant uses to report information to a 11.21 county agency about changes in income and other circumstances. 11.22 Subd. 56. [MIGRANT WORKER.] "Migrant worker" means a 11.23 person who travels away from home on a regular basis, usually 11.24 with a group of other laborers, to seek employment in an 11.25 agriculturally related activity. 11.26 Subd. 57. [MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 11.27 OR MFIP-S.] "Minnesota family investment program-statewide" or 11.28 "MFIP-S" means the assistance program authorized in this chapter 11.29 and chapter 256K. 11.30 Subd. 58. [MINNESOTA SUPPLEMENTAL AID OR MSA.] "Minnesota 11.31 supplemental aid" or "MSA" means the program established under 11.32 sections 256D.33 to 256D.54. 11.33 Subd. 59. [MINOR CAREGIVER.] "Minor caregiver" means a 11.34 person who: 11.35 (1) is under the age of 18; 11.36 (2) has never been married or otherwise legally 12.1 emancipated; and 12.2 (3) is either the natural parent of a minor child living in 12.3 the same household or is eligible for assistance paid to a 12.4 pregnant woman. 12.5 Subd. 60. [MINOR CHILD.] "Minor child" means a child who 12.6 is living in the same home of a parent or other caregiver, is 12.7 either less than 18 years of age or is under the age of 19 years 12.8 and is regularly attending as a full-time student and is 12.9 expected to complete a high school or a secondary level course 12.10 of vocational or technical training designed to fit students for 12.11 gainful employment before reaching age 19. 12.12 Subd. 61. [MONTHLY INCOME TEST.] "Monthly income test" 12.13 means the test used to determine ongoing eligibility and the 12.14 assistance payment amount according to section 256J.21. 12.15 Subd. 62. [NONRECURRING INCOME.] "Nonrecurring income" 12.16 means a form of income which is received: 12.17 (1) only one time or is not of a continuous nature; or 12.18 (2) in a prospective payment month but is no longer 12.19 received in the corresponding retrospective payment month. 12.20 Subd. 63. [OVERPAYMENT.] "Overpayment" means the portion 12.21 of an assistance payment issued by the county agency that is 12.22 greater than the amount for which the assistance unit is 12.23 eligible. 12.24 Subd. 64. [PARENT.] "Parent" means a child's biological or 12.25 adoptive parent who is legally obligated to support that child. 12.26 Subd. 65. [PARTICIPANT.] "Participant" means a person who 12.27 is currently receiving cash assistance and the food portion 12.28 available through MFIP-S as funded by TANF and the food stamp 12.29 program. A person who fails to withdraw or access 12.30 electronically any portion of his or her cash assistance payment 12.31 by the end of the payment month or who returns any uncashed 12.32 assistance check and withdraws from the program is not a 12.33 participant. A person who withdraws a cash assistance payment 12.34 by electronic transfer or receives and cashes a cash assistance 12.35 check and is subsequently determined to be ineligible for 12.36 assistance for that period of time is a participant, regardless 13.1 whether that assistance is repaid. The term "participant" 13.2 includes the caregiver relative and the minor child whose needs 13.3 are included in the assistance payment. A person in an 13.4 assistance unit who does not receive a cash assistance payment 13.5 because he or she has been suspended from MFIP-S or because his 13.6 or her need falls below the $10 minimum payment level is a 13.7 participant. 13.8 Subd. 66. [PAYEE.] "Payee" means a person to whom an 13.9 assistance payment is made payable. 13.10 Subd. 67. [PAYMENT MONTH.] "Payment month" means the 13.11 calendar month for which the assistance payment is paid. 13.12 Subd. 68. [PERSONAL PROPERTY.] "Personal property" means 13.13 an item of value that is not real property, including the value 13.14 of a contract for deed held by a seller, assets held in trust on 13.15 behalf of members of an assistance unit, cash surrender value of 13.16 life insurance, value of a prepaid burial, savings account, 13.17 value of stocks and bonds, and value of retirement accounts. 13.18 Subd. 69. [PROBABLE FRAUD.] "Probable fraud" means the 13.19 level of evidence that, if proven as fact, would establish that 13.20 assistance has been wrongfully obtained. 13.21 Subd. 70. [PROFESSIONAL CERTIFICATION.] "Professional 13.22 certification" means: 13.23 (1) a statement about a person's illness, injury, or 13.24 incapacity that is signed by a licensed physician, psychological 13.25 practitioner, or licensed psychologist, qualified by 13.26 professional training and experience to diagnose and certify the 13.27 person's condition; or 13.28 (2) a statement about an incapacity involving a spinal 13.29 subluxation condition that is signed by a licensed chiropractor 13.30 qualified by professional training and experience to diagnose 13.31 and certify the condition. 13.32 Subd. 71. [PROSPECTIVE BUDGETING.] "Prospective budgeting" 13.33 means a method of determining the amount of the assistance 13.34 payment in which the budget month and payment month are the same. 13.35 Subd. 72. [PROTECTIVE PAYEE.] "Protective payee" means a 13.36 person other than the caregiver of an assistance unit who 14.1 receives the monthly assistance payment on behalf of an 14.2 assistance unit and is responsible to provide for the basic 14.3 needs of the assistance unit to the extent of that payment. 14.4 Subd. 73. [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 14.5 means a person: 14.6 (1) who was lawfully admitted for permanent residence 14.7 pursuant to United States Code, title 8; 14.8 (2) who was admitted to the United States as a refugee 14.9 pursuant to United States Code, title 8; section 1157; 14.10 (3) whose deportation is being withheld pursuant to United 14.11 States Code, title 8, section 1253(h); 14.12 (4) who was paroled for a period of at least one year 14.13 pursuant to United States Code, title 8, section 1182(d)(5); 14.14 (5) who was granted conditional entry pursuant to United 14.15 State Code, title 8, section 1153(a)(7); 14.16 (6) who was granted asylum pursuant to United States Code, 14.17 title 8, section 1158; or 14.18 (7) determined to be a battered noncitizen by the United 14.19 States Attorney General according to the Illegal Immigration 14.20 Reform and Immigrant Responsibility Act of 1996, Title V of the 14.21 Omnibus Consolidated Appropriations Bill, Public Law Number 14.22 104-208. 14.23 Subd. 74. [REAL PROPERTY.] "Real property" means land and 14.24 all buildings, structures, and improvements, or other fixtures 14.25 on the land, belonging or appertaining to the land, and all 14.26 mines, minerals, fossils, and trees on or under the land. 14.27 Subd. 75. [REASONABLE COMPENSATION.] "Reasonable 14.28 compensation" means the value received in exchange for property 14.29 transferred to another owner that is consistent with fair market 14.30 value and equals or exceeds the seller's equity in the property, 14.31 reduced by costs incurred in the sale. 14.32 Subd. 76. [RECERTIFICATION.] "Recertification" means the 14.33 periodic review of eligibility factors to determine an 14.34 assistance unit's continued eligibility. 14.35 Subd. 77. [RECOUPMENT.] "Recoupment" means the action of 14.36 the county agency to reduce a family's monthly assistance 15.1 payment to recover overpayments caused by client or agency error 15.2 and overpayments received while an appeal is pending. 15.3 Subd. 78. [RECOVERY.] "Recovery" means actions taken by a 15.4 county agency to reclaim the value of overpayments through 15.5 voluntary repayment, recoupment from the assistance payment, 15.6 court action, revenue recapture, or federal tax refund offset 15.7 program (FTROP). 15.8 Subd. 79. [RECURRING INCOME.] "Recurring income" means a 15.9 form of income which is: 15.10 (1) received periodically, and may be received irregularly 15.11 when receipt can be anticipated even though the date of receipt 15.12 cannot be predicted; and 15.13 (2) from the same source or of the same type that is 15.14 received and budgeted in a prospective month and is received in 15.15 one or both of the first two retrospective months. 15.16 Subd. 80. [REEMPLOYMENT INSURANCE.] "Reemployment 15.17 insurance" means the insurance benefit paid to an unemployed 15.18 worker under sections 268.03 to 268.23. 15.19 Subd. 81. [RETROSPECTIVE BUDGETING.] "Retrospective 15.20 budgeting" means a method of determining the amount of the 15.21 assistance payment in which the payment month is the second 15.22 month after the budget month. 15.23 Subd. 82. [SANCTION.] "Sanction" means the reduction of a 15.24 family's assistance payment by a specified percentage of the 15.25 applicable transitional standard because: a nonexempt 15.26 participant fails to comply with the requirements of sections 15.27 256J.52 to 256J.55; a parental caregiver fails without good 15.28 cause to cooperate with the child support enforcement 15.29 requirements; or a participant fails to comply with the 15.30 insurance, tort liability, or other requirements of this chapter. 15.31 Subd. 83. [SIGNIFICANT CHANGE.] "Significant change" means 15.32 a decline in gross income of 35 percent or more from the income 15.33 used to determine the grant for the current month. 15.34 Subd. 84. [SUPPLEMENTAL SECURITY INCOME OR 15.35 SSI.] "Supplemental Security Income" or "SSI" means the program 15.36 authorized under title XVI of the Social Security Act. 16.1 Subd. 85. [TRANSITIONAL STANDARD.] "Transitional standard" 16.2 means the basic standard for a family with no other income or a 16.3 nonworking family and is a combination of the cash assistance 16.4 needs and food assistance needs for a family of that size. 16.5 Subd. 86. [UNEARNED INCOME.] "Unearned income" means 16.6 income received by a person that does not meet the definition of 16.7 earned income. Unearned income includes income from a contract 16.8 for deed, interest, dividends, reemployment insurance, 16.9 disability insurance payments, veterans benefits, pension 16.10 payments, return on capital investment, insurance payments or 16.11 settlements, severance payments, and payments for illness or 16.12 disability whether the premium payments are made in whole or in 16.13 part by an employer or participant. 16.14 Subd. 87. [VENDOR.] "Vendor" means a provider of goods or 16.15 services. 16.16 Subd. 88. [VENDOR PAYMENT.] "Vendor payment" means a 16.17 payment authorized by a county agency to a vendor. 16.18 Subd. 89. [VERIFICATION.] "Verification" means the process 16.19 a county agency uses to establish the accuracy or completeness 16.20 of information from an applicant, participant, third party, or 16.21 other source as that information relates to program eligibility 16.22 or an assistance payment. 16.23 Sec. 5. [256J.09] [APPLYING FOR ASSISTANCE.] 16.24 Subdivision 1. [WHERE TO APPLY.] A person must apply for 16.25 assistance at the county agency in the county where that person 16.26 lives. 16.27 Subd. 2. [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 16.28 INFORMATION.] A county agency must inform a person who inquires 16.29 about assistance about eligibility requirements for assistance 16.30 and how to apply for assistance, including diversionary 16.31 assistance and emergency assistance. A county agency must offer 16.32 the person brochures developed or approved by the commissioner 16.33 that describe how to apply for assistance. 16.34 Subd. 3. [SUBMITTING THE APPLICATION FORM.] A county 16.35 agency must offer, in person or by mail, the application forms 16.36 prescribed by the commissioner as soon as a person makes a 17.1 written or oral inquiry. At that time, the county agency must 17.2 inform the person that assistance begins with the date the 17.3 signed application is received by the county agency or the date 17.4 all eligibility criteria are met, whichever is later. The 17.5 county agency must inform the applicant that any delay in 17.6 submitting the application will reduce the amount of assistance 17.7 paid for the month of application. A county agency must inform 17.8 a person that the person may submit the application before an 17.9 interview appointment. To apply for assistance, a person must 17.10 submit a signed application to the county agency. Upon receipt 17.11 of a signed application, the county agency must stamp the date 17.12 of receipt on the face of the application. The county agency 17.13 must process the application within the time period required 17.14 under subdivision 5. An applicant may withdraw the application 17.15 at any time by giving written or oral notice to the county 17.16 agency. The county agency must issue a written notice 17.17 confirming the withdrawal. The notice must inform the applicant 17.18 of the county agency's understanding that the applicant has 17.19 withdrawn the application and no longer wants to pursue it. 17.20 When, within ten days of the date of the agency's notice, an 17.21 applicant informs a county agency, in writing, that the 17.22 applicant does not wish to withdraw the application, the county 17.23 agency must reinstate the application and finish processing the 17.24 application. 17.25 Subd. 4. [VERIFICATION OF INFORMATION ON APPLICATION.] A 17.26 county agency must verify information provided by an applicant 17.27 as required in section 256J.32. 17.28 Subd. 5. [PROCESSING APPLICATIONS.] Upon receiving an 17.29 application, a county agency must determine the applicant's 17.30 eligibility, approve or deny the application, inform the 17.31 applicant of its decision according to the notice provisions in 17.32 section 256J.31, and, if eligible, issue the assistance payment 17.33 to the applicant. When a county agency is unable to process an 17.34 application within 30 days, the county agency must inform the 17.35 applicant of the reason for the delay in writing. When an 17.36 applicant establishes the inability to provide required 18.1 verification within the 30-day processing period, the county 18.2 agency may not use the expiration of that period as the basis 18.3 for denial. 18.4 Subd. 6. [INVALID REASON FOR DELAY.] A county agency must 18.5 not delay a decision on eligibility or delay issuing the 18.6 assistance payment except to establish state residence by: 18.7 (1) treating the 30-day processing period as a waiting 18.8 period; 18.9 (2) delaying approval or issuance of the assistance payment 18.10 pending the decision of the county board; or 18.11 (3) awaiting the result of a referral to a county agency in 18.12 another county when the county receiving the application does 18.13 not believe it is the county of financial responsibility. 18.14 Subd. 7. [CHANGES IN RESIDENCE DURING APPLICATION.] The 18.15 requirements in subdivisions 5 and 6 apply without regard to the 18.16 length of time that an applicant remains, or intends to remain, 18.17 a resident of the county in which the application is made. When 18.18 an applicant leaves the county where application was made but 18.19 remains in the state, section 256J.75 applies and the county 18.20 agency may request additional information from the applicant 18.21 about changes in circumstances related to the move. 18.22 Subd. 8. [ADDITIONAL APPLICATIONS.] Until a county agency 18.23 issues notice of approval or denial, additional applications 18.24 submitted by an applicant are void. However, an application for 18.25 monthly assistance and an application for emergency assistance 18.26 or emergency general assistance may exist concurrently. More 18.27 than one application for monthly assistance, emergency 18.28 assistance, or emergency general assistance may exist 18.29 concurrently when the county agency decisions on one or more 18.30 earlier applications have been appealed to the commissioner, and 18.31 the applicant asserts that a change in circumstances has 18.32 occurred that would allow eligibility. A county agency must 18.33 require additional application forms or supplemental forms as 18.34 prescribed by the commissioner when a payee's name changes, or 18.35 when a caregiver requests the addition of another person to the 18.36 assistance unit. 19.1 Subd. 9. [ADDENDUM TO AN EXISTING APPLICATION.] An 19.2 addendum to an existing application must be used to add persons 19.3 to an assistance unit regardless of whether the persons being 19.4 added are required to be in the assistance unit. When a person 19.5 is added by addendum to an assistance unit, eligibility for that 19.6 person begins on the first of the month the addendum was filed 19.7 except as provided in section 256J.74, subdivision 2, clause (1). 19.8 Subd. 10. [APPLICANTS WHO DO NOT MEET ELIGIBILITY 19.9 REQUIREMENTS FOR MFIP-S.] When an applicant is not eligible for 19.10 MFIP-S because the applicant does not meet eligibility 19.11 requirements, the county agency must determine whether the 19.12 applicant is eligible for food stamps, medical assistance, 19.13 diversionary assistance, or has a need for emergency assistance 19.14 when the applicant meets the eligibility requirements for those 19.15 programs. 19.16 Sec. 6. [256J.10] [MFIP-S ELIGIBILITY REQUIREMENTS.] 19.17 To be eligible for MFIP-S, applicants must meet the general 19.18 eligibility requirements in sections 256J.11 to 256J.15, the 19.19 property limitations in section 256J.20, and the income 19.20 limitations in section 256J.21. 19.21 Sec. 7. [256J.11] [CITIZENSHIP.] 19.22 Subdivision 1. [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To 19.23 be eligible for AFDC or MFIP-S, whichever is in effect, a member 19.24 of the assistance unit must be a citizen of the United States, a 19.25 qualified noncitizen as defined in section 256J.08, or a 19.26 noncitizen who is otherwise residing lawfully in the United 19.27 States. 19.28 (b) A qualified noncitizen who entered the United States on 19.29 or after August 22, 1996, is eligible for MFIP-S. However, TANF 19.30 dollars cannot be used to fund the MFIP-S benefits for an 19.31 individual under this paragraph for a period of five years after 19.32 the date of entry unless the qualified noncitizen meets one of 19.33 the following criteria: 19.34 (1) was admitted to the United States as a refugee under 19.35 United States Code, title 8, section 1157; 19.36 (2) was granted asylum under United States Code, title 8, 20.1 section 1158; 20.2 (3) was granted withholding of deportation under the United 20.3 States Code, title 8, section 1253(h); 20.4 (4) is a veteran of the United States Armed Forces with an 20.5 honorable discharge for a reason other than noncitizen status, 20.6 or is a spouse or unmarried minor dependent child of the same; 20.7 or 20.8 (5) is an individual on active duty in the United States 20.9 Armed Forces, other than for training, or is a spouse or 20.10 unmarried minor dependent child of the same. 20.11 (c) A person who is not a qualified noncitizen but who is 20.12 otherwise residing lawfully in the United States is eligible for 20.13 MFIP-S. However, TANF dollars cannot be used to fund the MFIP-S 20.14 benefits for an individual under this paragraph. 20.15 (d) For purposes of this subdivision, a nonimmigrant in one 20.16 or more of the classes listed in United States Code, title 8, 20.17 section 1101(a)(15), or an undocumented immigrant who resides in 20.18 the United States without the approval or acquiescence of the 20.19 Immigration and Naturalization Service, is not eligible for 20.20 MFIP-S. 20.21 Subd. 2. [NONCITIZENS; MFIP-S FOOD PORTION.] For the 20.22 period January 1, 1998, to June 30, 1998, noncitizens who do not 20.23 meet one of the exemptions in section 412 of the Personal 20.24 Responsibility and Work Opportunity Reconciliation Act of 1996, 20.25 but were residing in this state as of July 1, 1997, are eligible 20.26 for the food portion of MFIP-S. However, federal food stamp 20.27 dollars cannot be used to fund the food portion of MFIP-S 20.28 benefits for an individual under this subdivision. 20.29 Subd. 3. [BENEFITS FUNDED WITH STATE MONEY.] Legal adult 20.30 noncitizens who have resided in the country for four years or 20.31 more, whose benefits are funded entirely with state money, and 20.32 who are under 70 years of age, must, as a condition of 20.33 eligibility: 20.34 (1) be enrolled in a literacy class, English as a second 20.35 language class, or a citizen class; 20.36 (2) be applying for admission to a literacy class, English 21.1 as a second language class, and is on a waiting list; 21.2 (3) be in the process of applying for a waiver from the 21.3 Immigration and Naturalization Service of the English language 21.4 or civics requirements of the citizenship test; 21.5 (4) have submitted an application for citizenship to the 21.6 Immigration and Naturalization Service and is waiting for a 21.7 testing date or a subsequent swearing in ceremony; or 21.8 (5) have been denied citizenship due to a failure to pass 21.9 the test after two attempts or because of an inability to 21.10 understand the rights and responsibilities of becoming a United 21.11 States citizen, as documented by the Immigration and 21.12 Naturalization Service or the county. 21.13 If the county social service agency determines that a legal 21.14 noncitizen subject to the requirements of this subdivision will 21.15 require more than one year of English language training, then 21.16 the requirements of clause (1) or (2) shall be imposed after the 21.17 legal noncitizen has resided in the country for three years. 21.18 Individuals who reside in a facility licensed under chapter 21.19 144A, 144D, 245A, or 256I are exempt from the requirements of 21.20 this subdivision. 21.21 Sec. 8. [256J.12] [MINNESOTA RESIDENCE.] 21.22 Subdivision 1. [SIMPLE RESIDENCY.] To be eligible for AFDC 21.23 or MFIP-S, whichever is in effect, a family must have 21.24 established residency in this state which means the family is 21.25 present in the state and intends to remain here. 21.26 Subd. 1a. [30-DAY RESIDENCY REQUIREMENT.] A family is 21.27 considered to have established residency in this state only when 21.28 a child or caregiver has resided in this state for at least 30 21.29 days with the intention of making the person's home here and not 21.30 for any temporary purpose. Time spent in a shelter for battered 21.31 women shall count toward satisfying the 30 day residency 21.32 requirement. 21.33 Subd. 2. [EXCEPTIONS.] (a) A county shall waive the 30-day 21.34 residency requirement where unusual hardship would result from 21.35 denial of assistance. 21.36 (b) For purposes of this section, unusual hardship means a 22.1 family: 22.2 (1) is without alternative shelter; or 22.3 (2) is without available resources for food. 22.4 (c) For purposes of this subdivision, the following 22.5 definitions apply (1) "metropolitan statistical area" is as 22.6 defined by the U.S. Census Bureau; (2) "alternative shelter" 22.7 includes any shelter that is located within the metropolitan 22.8 statistical area containing the county and for which the family 22.9 is eligible, provided the family does not have to travel more 22.10 than 20 miles to reach the shelter and has access to 22.11 transportation to the shelter. Clause (2) does not apply to 22.12 counties in the Minneapolis-St. Paul metropolitan statistical 22.13 area. 22.14 (d) Migrant workers, as defined in section 256J.08, and 22.15 their immediate families are exempt from the 30-day residency 22.16 requirement, provided the migrant worker provides verification 22.17 that the migrant family worked in this state within the last 12 22.18 months and earned at least $1,000 in gross wages during the time 22.19 the migrant worker worked in this state. 22.20 Subd. 3. [PAYMENT PLAN FOR NEW RESIDENTS.] Assistance paid 22.21 to an eligible family in which all members have resided in this 22.22 state for fewer than 12 consecutive calendar months immediately 22.23 preceding the date of application shall be at the standard and 22.24 in the form specified in section 256J.43. 22.25 Subd. 4. [SEVERABILITY CLAUSE.] If any subdivision in this 22.26 section is enjoined from implementation or found 22.27 unconstitutional by any court of competent jurisdiction, the 22.28 remaining subdivisions shall remain valid and shall be given 22.29 full effect. 22.30 Sec. 9. [256J.13] [MINOR CHILD IN ASSISTANCE UNIT; 22.31 PHYSICAL PRESENCE.] 22.32 Subdivision 1. [MINOR CHILD OR PREGNANT WOMAN.] The 22.33 assistance unit must include at least one minor child or a 22.34 pregnant woman. If a minor child is a recipient of Supplemental 22.35 Security Income or Minnesota supplemental aid, the assistance 22.36 unit is eligible for MFIP-S, but the needs of the minor child 23.1 receiving Supplemental Security Income or Minnesota supplemental 23.2 aid must not be taken into account when the county agency 23.3 determines the amount of the assistance payment to be paid to 23.4 the assistance unit. 23.5 Subd. 2. [PHYSICAL PRESENCE.] A minor child and a 23.6 caregiver must live together except as provided in the following 23.7 paragraphs. 23.8 (a) The physical presence requirement is met when a minor 23.9 child is required to live away from the caregiver's home to meet 23.10 the need for educational curricula that cannot be met by, but is 23.11 approved by, the local public school district, the home is 23.12 maintained for the minor child's return during periodic school 23.13 vacations, and the caregiver continues to maintain 23.14 responsibility for the support and care of the minor child. 23.15 (b) The physical presence requirement is met when an 23.16 applicant caregiver or applicant minor child is away from the 23.17 home due to illness or hospitalization, when the home is 23.18 maintained for the return of the absent family member, the 23.19 absence is not expected to last more than six months beyond the 23.20 month of departure, and the conditions of clause (1), (2), or 23.21 (3) apply: 23.22 (1) when the minor child and caregiver lived together 23.23 immediately prior to the absence, the caregiver continues to 23.24 maintain responsibility for the support and care of the minor 23.25 child, and the absence is reported at the time of application; 23.26 (2) when the pregnant mother is hospitalized or out of the 23.27 home due to the pregnancy; or 23.28 (3) when the newborn child and mother are hospitalized at 23.29 the time of birth. 23.30 (c) The absence of a caregiver or minor child does not 23.31 affect eligibility for the month of departure when the caregiver 23.32 or minor child received assistance for that month and lived 23.33 together immediately prior to the absence. Eligibility also 23.34 exists in the following month when the absence ends on or before 23.35 the tenth day of that month. A temporary absence of a caregiver 23.36 or a minor child which continues beyond the month of departure 24.1 must not affect eligibility when the home is maintained for the 24.2 return of the absent family member, the caregiver continues to 24.3 maintain responsibility for the support and care of the minor 24.4 child, and one of clauses (1) to (7) applies: 24.5 (1) a participant caregiver or participant child is absent 24.6 due to illness or hospitalization, and the absence is expected 24.7 to last no more than six months beyond the month of departure; 24.8 (2) a participant child is out of the home due to placement 24.9 in foster care as defined in section 260.015, subdivision 7, 24.10 when the placement will not be paid under title IV-E of the 24.11 Social Security Act, and when the absence is expected to last no 24.12 more than six months beyond the month of departure; 24.13 (3) a participant minor child is out of the home for a 24.14 vacation, the vacation is not with an absent parent, and the 24.15 absence is expected to last no more than two months beyond the 24.16 month of departure; 24.17 (4) a participant minor child is out of the home due to a 24.18 visit or vacation with an absent parent, the home of the minor 24.19 child remains with the caregiver, the absence meets the 24.20 conditions of this paragraph and the absence is expected to last 24.21 no more than two months beyond the month of departure; 24.22 (5) a participant caregiver is out of the home due to a 24.23 death or illness of a relative, incarceration, training, or 24.24 employment search and suitable arrangements have been made for 24.25 the care of the minor child, or a participant minor child is out 24.26 of the home due to incarceration, and the absence is expected to 24.27 last no more than two months beyond the month of departure; 24.28 (6) a participant caregiver and a participant minor child 24.29 are both absent from Minnesota due to a situation described in 24.30 clause (5), except for incarceration, and the absence is 24.31 expected to last no more than one month beyond the month of the 24.32 departure; or 24.33 (7) a participant minor child has run away from home, and 24.34 another person has not made application for that minor child, 24.35 assistance must continue for no more than two months following 24.36 the month of departure. 25.1 Sec. 10. [256J.14] [ELIGIBILITY FOR PARENTING OR PREGNANT 25.2 MINORS.] 25.3 (a) The definitions in this paragraph only apply to this 25.4 subdivision. 25.5 (1) "Household of a parent, legal guardian, or other adult 25.6 relative" means the place of residence of: 25.7 (i) a natural or adoptive parent; 25.8 (ii) a legal guardian according to appointment or 25.9 acceptance under section 260.242, 525.615, or 525.6165, and 25.10 related laws; or 25.11 (iii) a caregiver. 25.12 (2) "Adult-supervised supportive living arrangement" means 25.13 a private family setting which assumes responsibility for the 25.14 care and control of the minor parent and minor child, or other 25.15 living arrangement, not including a public institution, licensed 25.16 by the commissioner of human services which ensures that the 25.17 minor parent receives adult supervision and supportive services, 25.18 such as counseling, guidance, independent living skills 25.19 training, or supervision. 25.20 (b) A minor parent and the minor child who is in the care 25.21 of the minor parent must reside in the household of a parent, 25.22 legal guardian, other appropriate adult relative, or other 25.23 caregiver, or in an adult-supervised supportive living 25.24 arrangement in order to receive MFIP-S unless: 25.25 (1) the minor parent has no living parent, other 25.26 appropriate adult relative, or legal guardian whose whereabouts 25.27 is known; 25.28 (2) no living parent, other appropriate adult relative, or 25.29 legal guardian of the minor parent allows the minor parent to 25.30 live in the parent's, appropriate adult relative's, or legal 25.31 guardian's home; 25.32 (3) the minor parent lived apart from the minor parent's 25.33 own parent or legal guardian for a period of at least one year 25.34 before either the birth of the minor child or the minor parent's 25.35 application for MFIP-S; 25.36 (4) the physical or emotional health or safety of the minor 26.1 parent or minor child would be jeopardized if the minor parent 26.2 and the minor child resided in the same residence with the minor 26.3 parent's parent, other appropriate adult relative, or legal 26.4 guardian; or 26.5 (5) an adult supervised supportive living arrangement is 26.6 not available for the minor parent and the dependent child in 26.7 the county in which the minor currently resides. If an adult 26.8 supervised supportive living arrangement becomes available 26.9 within the county, the minor parent and child must reside in 26.10 that arrangement. 26.11 (c) Minor applicants must be informed orally and in writing 26.12 about the eligibility requirements and their rights and 26.13 obligations under the MFIP-S program. The county must advise 26.14 the minor of the possible exemptions and specifically ask 26.15 whether one or more of these exemptions is applicable. If the 26.16 minor alleges one or more of these exemptions, then the county 26.17 must assist the minor in obtaining the necessary verifications 26.18 to determine whether or not these exemptions apply. 26.19 (d) If the county worker has reason to suspect that the 26.20 physical or emotional health or safety of the minor parent or 26.21 minor child would be jeopardized if they resided with the minor 26.22 parent's parent or legal guardian, then the county worker must 26.23 make a referral to child protective services to determine if 26.24 paragraph (b), clause (4), applies. A new determination by the 26.25 county worker is not necessary if one has been made within the 26.26 last six months, unless there has been a significant change in 26.27 circumstances which justifies a new referral and determination. 26.28 (e) If a minor parent is not living with a parent or legal 26.29 guardian due to paragraph (b), clause (1), (2), or (4), the 26.30 minor parent must reside, when possible, in a living arrangement 26.31 that meets the standards of paragraph (a), clause (2). 26.32 (f) When a minor parent and minor child live with another 26.33 adult relative, or in an adult-supervised supportive living 26.34 arrangement, MFIP-S must be paid, when possible, in the form of 26.35 a protective payment on behalf of the minor parent and minor 26.36 child in accordance with section 256J.39, subdivisions 2 to 4. 27.1 Sec. 11. [256J.15] [OTHER ELIGIBILITY CONDITIONS.] 27.2 Subdivision 1. [ELIGIBILITY WHEN THERE IS SHARED, COURT 27.3 ORDERED, AND OTHER CUSTODY ARRANGEMENTS.] The language of a 27.4 court order that specifies joint legal or physical custody does 27.5 not preclude a determination that a parent is absent. Absence 27.6 must be determined based on the actual facts of the absence 27.7 according to paragraphs (a) to (c). 27.8 (a) When a minor child spends time in each of the parents' 27.9 homes within a payment month, the minor child's home shall be 27.10 considered the home in which the majority of the minor child's 27.11 time is spent. When this time is exactly equal within a payment 27.12 month, or when the parents alternately live in the minor child's 27.13 home within a payment month, the minor child's home shall be 27.14 with that parent who is applying for MFIP-S, unless the minor 27.15 child's needs for the full payment month have already been met 27.16 through the provision of assistance to the other parent for that 27.17 month. 27.18 (b) When the physical custody of a minor child alternates 27.19 between parents for periods of at least one payment month, each 27.20 parent shall be eligible for assistance for any full payment 27.21 months the minor child's home is with that parent, except under 27.22 the conditions in paragraph (c). 27.23 (c) When a minor child's home is with one parent for the 27.24 majority of time in each month for at least nine consecutive 27.25 calendar months, and that minor child visits or vacations with 27.26 the other parent under section 256J.13, the minor child's home 27.27 remains with the first parent even when the stay with the second 27.28 parent is for all or the majority of the months in the period of 27.29 the temporary absence. 27.30 Subd. 2. [ELIGIBILITY DURING LABOR DISPUTES.] To receive 27.31 assistance under MFIP-S, a member of an assistance unit who is 27.32 on strike must have been an MFIP-S participant on the day before 27.33 the strike, or have been eligible for MFIP-S on the day before 27.34 the strike. 27.35 The county agency must count the striker's prestrike 27.36 earnings as current earnings. When a member of an assistance 28.1 unit who is not in the bargaining unit that voted for the strike 28.2 does not cross the picket line for fear of personal injury, the 28.3 assistance unit member is not a striker. Except for a member of 28.4 an assistance unit who is not in the bargaining unit that voted 28.5 for the strike and who does not cross the picket line for fear 28.6 of personal injury, a significant change cannot be invoked as a 28.7 result of a labor dispute. 28.8 Sec. 12. [256J.20] [PROPERTY LIMITATIONS.] 28.9 Subdivision 1. [PROPERTY OWNERSHIP PROVISIONS.] The county 28.10 agency must apply paragraphs (a) to (d) to real and personal 28.11 property. The county agency must use the equity value of 28.12 legally available real and personal property, except property 28.13 excluded in subdivisions 2 and 3, to determine whether an 28.14 applicant or participant is eligible for assistance. 28.15 (a) When real or personal property is jointly owned by two 28.16 or more persons, the county agency shall assume that each person 28.17 owns an equal share, except that either person owns the entire 28.18 sum of a joint personal checking or savings account. When an 28.19 applicant or participant documents greater or lesser ownership, 28.20 the county agency must use that greater or lesser share to 28.21 determine the equity value held by the applicant or 28.22 participant. Other types of ownership must be evaluated 28.23 according to law. 28.24 (b) Real or personal property owned by the applicant or 28.25 participant must be presumed legally available to the applicant 28.26 or participant unless the applicant or participant documents 28.27 that the property is not legally available to the applicant or 28.28 participant. When real or personal property is not legally 28.29 available, its equity value must not be applied against the 28.30 limits of subdivisions 2 and 3. 28.31 (c) An applicant must disclose whether the applicant has 28.32 transferred real or personal property valued in excess of the 28.33 property limits in subdivisions 2 and 3 for which reasonable 28.34 compensation was not received within one year prior to 28.35 application. A participant must disclose all transfers of 28.36 property valued in excess of these limits, according to the 29.1 reporting requirements in section 256J.30, subdivision 9. When 29.2 a transfer of real or personal property without reasonable 29.3 compensation has occurred: 29.4 (1) the person who transferred the property must provide 29.5 the property's description, information needed to determine the 29.6 property's equity value, the names of the persons who received 29.7 the property, and the circumstances of and reasons for the 29.8 transfer; and 29.9 (2) when the transferred property can be reasonably 29.10 reacquired, or when reasonable compensation can be secured, the 29.11 property is presumed legally available to the applicant or 29.12 participant. 29.13 (d) A participant may build the equity value of real and 29.14 personal property to the limits in subdivisions 2 and 3. 29.15 Subd. 2. [REAL PROPERTY LIMITATIONS.] Ownership of real 29.16 property by an applicant or participant is subject to the 29.17 limitations in paragraphs (a) and (b). 29.18 (a) A county agency shall exclude the homestead of an 29.19 applicant or participant according to clauses (1) to (4): 29.20 (1) an applicant or participant who is purchasing real 29.21 property through a contract for deed and using that property as 29.22 a home is considered the owner of real property; 29.23 (2) the total amount of land that can be excluded under 29.24 this subdivision is limited to surrounding property which is not 29.25 separated from the home by intervening property owned by 29.26 others. Additional property must be assessed as to its legal 29.27 and actual availability according to subdivision 1; 29.28 (3) when real property that has been used as a home by a 29.29 participant is sold, the county agency must treat the cash 29.30 proceeds from the sale as excluded property for six months when 29.31 the participant intends to reinvest the proceeds in another home 29.32 and maintains those proceeds, unused for other purposes, in a 29.33 separate account; and 29.34 (4) when the homestead is jointly owned, but the client 29.35 does not reside in it because of legal separation, pending 29.36 divorce, or battering or abuse by the spouse or partner, the 30.1 homestead is excluded. 30.2 (b) The equity value of real property that is not excluded 30.3 under paragraph (a) and which is legally available must be 30.4 applied against the limits in subdivision 3. When the equity 30.5 value of the real property exceeds the limits under subdivision 30.6 3, the applicant or participant may qualify to receive 30.7 assistance when the applicant or participant continues to make a 30.8 good faith effort to sell the property and signs a legally 30.9 binding agreement to repay the amount of assistance, less child 30.10 support collected by the agency. Repayment must be made within 30.11 five working days after the property is sold. Repayment to the 30.12 county agency must be in the amount of assistance received or 30.13 the proceeds of the sale, whichever is less. 30.14 Subd. 3. [OTHER PROPERTY LIMITATIONS.] To be eligible for 30.15 MFIP-S, the equity value of all nonexcluded real and personal 30.16 property of the assistance unit must not exceed $2,000 for 30.17 applicants and $5,000 for ongoing recipients. The value of 30.18 clauses (1) to (18) must be excluded when determining the equity 30.19 value of real and personal property: 30.20 (1) licensed vehicles up to a total market value of less 30.21 than or equal to $7,500. The county agency shall apply any 30.22 excess market value to the asset limit described in this 30.23 section. If the assistance unit owns more than one licensed 30.24 vehicle, the county agency shall determine the vehicle with the 30.25 highest market value and count only the market value over 30.26 $7,500. The county agency shall count the market value of all 30.27 other vehicles and apply this amount to the asset limit 30.28 described in this section. The value of special equipment for a 30.29 handicapped member of the assistance unit is excluded. To 30.30 establish the market value of vehicles, a county agency must use 30.31 the N.A.D.A. Official Used Car Guide, Midwest Edition, for newer 30.32 model cars. The N.A.D.A. Official Used Car Guide, Midwest 30.33 Edition, is incorporated by reference. When a vehicle is not 30.34 listed in the guidebook, or when the applicant or participant 30.35 disputes the value listed in the guidebook as unreasonable given 30.36 the condition of the particular vehicle, the county agency may 31.1 require the applicant or participant to document the value by 31.2 securing a written statement from a motor vehicle dealer 31.3 licensed under section 168.27, stating the amount that the 31.4 dealer would pay to purchase the vehicle. The county agency 31.5 shall reimburse the applicant or participant for the cost of a 31.6 written statement that documents a lower value; 31.7 (2) the value of life insurance policies for members of the 31.8 assistance unit; 31.9 (3) one burial plot per member of an assistance unit; 31.10 (4) the value of personal property needed to produce earned 31.11 income, including tools, implements, farm animals, inventory, 31.12 business loans, business checking and savings accounts used 31.13 exclusively for the operation of a self-employment business, and 31.14 any motor vehicles if the vehicles are essential for the 31.15 self-employment business; 31.16 (5) the value of personal property not otherwise specified 31.17 which is commonly used by household members in day-to-day living 31.18 such as clothing, necessary household furniture, equipment, and 31.19 other basic maintenance items essential for daily living; 31.20 (6) the value of real and personal property owned by a 31.21 recipient of Social Security Income or Minnesota supplemental 31.22 aid; 31.23 (7) the value of corrective payments, but only for the 31.24 month in which the payment is received and for the following 31.25 month; 31.26 (8) a mobile home used by an applicant or participant as 31.27 the applicant's or participant's home; 31.28 (9) money in a separate escrow account that is needed to 31.29 pay real estate taxes or insurance and that is used for this 31.30 purpose; 31.31 (10) money held in escrow to cover employee FICA, employee 31.32 tax withholding, sales tax withholding, employee worker 31.33 compensation, business insurance, property rental, property 31.34 taxes, and other costs that are paid at least annually, but less 31.35 often than monthly; 31.36 (11) monthly assistance and emergency assistance payments 32.1 for the current month's needs; 32.2 (12) the value of school loans, grants, or scholarships for 32.3 the period they are intended to cover; 32.4 (13) payments listed in section 256J.21, subdivision 2, 32.5 clause (9), which are held in escrow for a period not to exceed 32.6 three months to replace or repair personal or real property; 32.7 (14) income received in a budget month through the end of 32.8 the budget month; 32.9 (15) savings of a minor child or a minor parent that are 32.10 set aside in a separate account designated specifically for 32.11 future education or employment costs; 32.12 (16) the earned income tax credit and Minnesota working 32.13 family credit in the month received and the following month; 32.14 (17) payments excluded under federal law as long as those 32.15 payments are held in a separate account from any nonexcluded 32.16 funds; and 32.17 (18) money received by a participant of the corps to career 32.18 program under section 84.0887, subdivision 2, paragraph (b), as 32.19 a postservice benefit under the federal Americorps Act. 32.20 Sec. 13. [256J.21] [INCOME LIMITATIONS.] 32.21 Subdivision 1. [INCOME INCLUSIONS.] To determine MFIP-S 32.22 eligibility, the county agency must evaluate income received by 32.23 members of an assistance unit, or by other persons whose income 32.24 is considered available to the assistance unit. All payments, 32.25 unless specifically excluded in subdivision 2, must be counted 32.26 as income. 32.27 Subd. 2. [INCOME EXCLUSIONS.] (a) The following must be 32.28 excluded in determining a family's available income: 32.29 (1) payments for basic care, difficulty of care, and 32.30 clothing allowances received for providing family foster care to 32.31 children or adults under Minnesota Rules, parts 9545.0010 to 32.32 9545.0260 and 9555.5050 to 9555.6265, and payments received and 32.33 used for care and maintenance of a third-party beneficiary who 32.34 is not a household member; 32.35 (2) reimbursements for employment training received through 32.36 the Job Training Partnership Act, United States Code, title 29, 33.1 chapter 19, sections 1501 to 1792b; 33.2 (3) reimbursement for out-of-pocket expenses incurred while 33.3 performing volunteer services, jury duty, or employment; 33.4 (4) all educational assistance, except the county agency 33.5 must count graduate student teaching assistantships, 33.6 fellowships, and other similar paid work as earned income and, 33.7 after allowing deductions for any unmet and necessary 33.8 educational expenses, shall count scholarships or grants awarded 33.9 to graduate students that do not require teaching or research as 33.10 unearned income; 33.11 (5) loans, regardless of purpose, from public or private 33.12 lending institutions, governmental lending institutions, or 33.13 governmental agencies; 33.14 (6) loans from private individuals, regardless of purpose, 33.15 provided an applicant or participant documents that the lender 33.16 expects repayment; 33.17 (7) state and federal income tax refunds; 33.18 (8) state and federal earned income credits; 33.19 (9) funds received for reimbursement, replacement, or 33.20 rebate of personal or real property when these payments are made 33.21 by public agencies, awarded by a court, solicited through public 33.22 appeal, or made as a grant by a federal agency, state or local 33.23 government, or disaster assistance organizations, subsequent to 33.24 a presidential declaration of disaster; 33.25 (10) the portion of an insurance settlement that is used to 33.26 pay medical, funeral, and burial expenses, or to repair or 33.27 replace insured property; 33.28 (11) reimbursements for medical expenses that cannot be 33.29 paid by medical assistance; 33.30 (12) payments by a vocational rehabilitation program 33.31 administered by the state under chapter 268A, except those 33.32 payments that are for current living expenses; 33.33 (13) in-kind income, including any payments directly made 33.34 by a third party to a provider of goods and services; 33.35 (14) assistance payments to correct underpayments, but only 33.36 for the month in which the payment is received; 34.1 (15) emergency assistance payments; 34.2 (16) funeral and cemetery payments as provided by section 34.3 256.935; 34.4 (17) nonrecurring cash gifts of $30 or less, not exceeding 34.5 $30 per participant in a calendar month; 34.6 (18) any form of energy assistance payment made through 34.7 Public Law Number 97-35, Low-Income Home Energy Assistance Act 34.8 of 1981, payments made directly to energy providers by other 34.9 public and private agencies, and any form of credit or rebate 34.10 payment issued by energy providers; 34.11 (19) Supplemental Security Income, including retroactive 34.12 payments; 34.13 (20) Minnesota supplemental aid, including retroactive 34.14 payments; 34.15 (21) proceeds from the sale of real or personal property; 34.16 (22) adoption assistance payments under section 259.67; 34.17 (23) state-funded family subsidy program payments made 34.18 under section 252.32 to help families care for children with 34.19 mental retardation or related conditions; 34.20 (24) interest payments and dividends from property that is 34.21 not excluded from and that does not exceed the asset limit; 34.22 (25) rent rebates; 34.23 (26) income earned by a minor caregiver or minor child who 34.24 is at least a half-time student; 34.25 (27) income earned by a caregiver under age 20 who is at 34.26 least a half-time student in an approved secondary education 34.27 program; 34.28 (28) MFIP-S child care payments under section 119B.05; 34.29 (29) all other payments made through MFIP-S to support a 34.30 caregiver's pursuit of greater self-support; 34.31 (30) income a participant receives related to shared living 34.32 expenses; 34.33 (31) reverse mortgages; 34.34 (32) benefits provided by the Child Nutrition Act of 1966, 34.35 United States Code, title 42, chapter 13A, sections 1771 to 34.36 1790; 35.1 (33) benefits provided by the women, infants, and children 35.2 (WIC) nutrition program, United States Code, title 42, chapter 35.3 13A, section 1786; 35.4 (34) benefits from the National School Lunch Act, United 35.5 States Code, title 42, chapter 13, sections 1751 to 1769e; 35.6 (35) relocation assistance for displaced persons under the 35.7 Uniform Relocation Assistance and Real Property Acquisition 35.8 Policies Act of 1970, United States Code, title 42, chapter 61, 35.9 subchapter II, section 4636, or the National Housing Act, United 35.10 States Code, title 12, chapter 13, sections 1701 to 1750jj; 35.11 (36) benefits from the Trade Act of 1974, United States 35.12 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 35.13 (37) war reparations payments to Japanese Americans and 35.14 Aleuts under United States Code, title 50, sections 1989 to 35.15 1989d; 35.16 (38) payments to veterans or their dependents as a result 35.17 of legal settlements regarding Agent Orange or other chemical 35.18 exposure under Public Law Number 101-239, section 10405, 35.19 paragraph (a)(2)(E); 35.20 (39) income that is otherwise specifically excluded from 35.21 the MFIP-S program consideration in federal law, state law, or 35.22 federal regulation; 35.23 (40) security and utility deposit refunds; 35.24 (41) American Indian tribal land settlements excluded under 35.25 Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 35.26 Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 35.27 reservations and payments to members of the White Earth Band, 35.28 under United States Code, title 25, chapter 9, section 331, and 35.29 chapter 16, section 1407; 35.30 (42) all income of the minor parent's parent when 35.31 determining the grant for the minor parent in households that 35.32 include a minor parent living with a parent on MFIP-S with other 35.33 dependent children; and 35.34 (43) income of the minor parent's parent equal to 200 35.35 percent of the federal poverty guideline for a family size not 35.36 including the minor parent and the minor parent's child in 36.1 households that include a minor parent living with a parent not 36.2 on MFIP-S when determining the grant for the minor parent. The 36.3 remainder of income is deemed as specified in section 256J.37, 36.4 subdivision 1. 36.5 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 36.6 determine initial eligibility by considering all earned and 36.7 unearned income that is not excluded under subdivision 2. To be 36.8 eligible for MFIP-S, the assistance unit's countable income 36.9 minus the disregards in paragraphs (a) and (b) must be below the 36.10 transitional standard of assistance according to section 256J.24 36.11 for that size assistance unit. 36.12 (a) The initial eligibility determination must disregard 36.13 the following items: 36.14 (1) the employment disregard is 18 percent of the gross 36.15 earned income whether or not the member is working full time or 36.16 part time; 36.17 (2) dependent care costs must be deducted from gross earned 36.18 income for the actual amount paid for dependent care up to the 36.19 maximum disregard allowed under this chapter and chapter 119B; 36.20 and 36.21 (3) all payments made according to a court order for the 36.22 support of children not living in the assistance unit's 36.23 household shall be disregarded from the income of the person 36.24 with the legal obligation to pay support, provided that, if 36.25 there has been a change in the financial circumstances of the 36.26 person with the legal obligation to pay support since the 36.27 support order was entered, the person with the legal obligation 36.28 to pay support has petitioned for a modification of the support 36.29 order. 36.30 (b) Notwithstanding paragraph (a), when determining initial 36.31 eligibility for applicants who have received AFDC, family 36.32 general assistance, MFIP, MFIP-R, work first, or MFIP-S in this 36.33 state within four months of the most recent application for 36.34 MFIP-S, the employment disregard is 36 percent of the gross 36.35 earned income. 36.36 After initial eligibility is established, the assistance 37.1 payment calculation is based on the monthly income test. 37.2 Subd. 4. [MONTHLY INCOME TEST AND DETERMINATION OF 37.3 ASSISTANCE PAYMENT.] The county agency shall determine ongoing 37.4 eligibility and the assistance payment amount according to the 37.5 monthly income test. To be eligible for MFIP-S, the result of 37.6 the computations in paragraphs (a) to (e) must be at least $1. 37.7 (a) Apply a 36 percent income disregard to gross earnings 37.8 and subtract this amount from the family wage level. If the 37.9 difference is equal to or greater than the transitional 37.10 standard, the assistance payment is equal to the transitional 37.11 standard. If the difference is less than the transitional 37.12 standard, the assistance payment is equal to the difference. 37.13 The employment disregard in this paragraph must be deducted 37.14 every month there is earned income. 37.15 (b) All payments made according to a court order for the 37.16 support of children not living in the assistance unit's 37.17 household must be disregarded from the income of the person with 37.18 the legal obligation to pay support, provided that, if there has 37.19 been a change in the financial circumstances of the person with 37.20 the legal obligation to pay support since the support order was 37.21 entered, the person with the legal obligation to pay support has 37.22 petitioned for a modification of the court order. 37.23 (c) Subtract unearned income dollar for dollar from the 37.24 transitional standard to determine the assistance payment amount. 37.25 (d) When income is both earned and unearned, the amount of 37.26 the assistance payment must be determined by first treating 37.27 gross earned income as specified in paragraph (a). After 37.28 determining the amount of the assistance payment under paragraph 37.29 (a), unearned income must be subtracted from that amount dollar 37.30 for dollar to determine the assistance payment amount. 37.31 (e) When the monthly income is greater than the 37.32 transitional or family wage level standard after applicable 37.33 deductions and the income will only exceed the standard for one 37.34 month, the county agency must suspend the assistance payment for 37.35 the payment month. 37.36 Subd. 5. [DISTRIBUTION OF INCOME.] The income of all 38.1 members of the assistance unit must be counted. Income may also 38.2 be deemed from ineligible persons to the assistance unit. 38.3 Income must be attributed to the person who earns it or to the 38.4 assistance unit according to paragraphs (a) to (c). 38.5 (a) Funds distributed from a trust, whether from the 38.6 principal holdings or sale of trust property or from the 38.7 interest and other earnings of the trust holdings, must be 38.8 considered income when the income is legally available to an 38.9 applicant or participant. Trusts are presumed legally available 38.10 unless an applicant or participant can document that the trust 38.11 is not legally available. 38.12 (b) Income from jointly owned property must be divided 38.13 equally among property owners unless the terms of ownership 38.14 provide for a different distribution. 38.15 (c) Deductions are not allowed from the gross income of a 38.16 financially responsible household member or by the members of an 38.17 assistance unit to meet a current or prior debt. 38.18 Sec. 14. [256J.24] [FAMILY COMPOSITION AND ASSISTANCE 38.19 STANDARDS.] 38.20 Subdivision 1. [MFIP-S ASSISTANCE UNIT.] An MFIP-S 38.21 assistance unit is either a group of individuals with at least 38.22 one minor child who live together whose needs, assets, and 38.23 income are considered together and who receive MFIP-S 38.24 assistance, or a pregnant woman who receives MFIP-S assistance. 38.25 Individuals identified in subdivision 2 must be included in the 38.26 MFIP-S assistance unit. Individuals identified in subdivision 3 38.27 must be excluded from the assistance unit. Individuals 38.28 identified in subdivision 4 may be included in the assistance 38.29 unit at their option. Individuals not included in the 38.30 assistance unit who are identified in section 256J.37, 38.31 subdivision 1 or 2, must have their income considered when 38.32 determining eligibility and benefits for an MFIP-S assistance 38.33 unit. All assistance unit members, whether mandatory or 38.34 elective, who live together and for whom one caregiver or two 38.35 caregivers apply must be included in a single assistance unit. 38.36 Subd. 2. [MANDATORY ASSISTANCE UNIT COMPOSITION.] Except 39.1 for minor caregivers who are in a separate assistance unit, when 39.2 the following individuals live together, they must be included 39.3 in the assistance unit: 39.4 (1) a minor child; 39.5 (2) the minor child's siblings, half-siblings, and 39.6 step-siblings; and 39.7 (3) the minor child's natural, adoptive parents, and 39.8 stepparents. 39.9 Subd. 3. [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 39.10 ASSISTANCE UNIT.] The following individuals must be excluded 39.11 from an assistance unit: 39.12 (1) individuals receiving Supplemental Security Income or 39.13 Minnesota supplemental aid; 39.14 (2) individuals living at home while performing 39.15 court-imposed, unpaid community service work due to a criminal 39.16 conviction; 39.17 (3) individuals disqualified from the food stamp program or 39.18 MFIP-S, until the disqualification ends; 39.19 (4) children on whose behalf foster care payments under 39.20 title IV-E of the Social Security Act are made, except as 39.21 provided in section 256J.74, subdivision 2; and 39.22 (5) children receiving ongoing monthly adoption assistance 39.23 payments under section 269.67. 39.24 Subd. 4. [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 39.25 ASSISTANCE UNIT.] The minor child's eligible caregiver may 39.26 choose to be in the assistance unit, if the caregiver is not 39.27 required to be in the assistance unit under subdivision 2. If 39.28 the relative caregiver chooses to be in the assistance unit, 39.29 that person's spouse must also be in the unit. 39.30 Subd. 5. [MFIP-S TRANSITIONAL STANDARD.] The following 39.31 table represents the MFIP-S transitional standard table when all 39.32 members of the assistance unit are eligible for both food and 39.33 cash assistance. 39.34 Number of Eligible People Standard 39.35 1 $351 39.36 2 $609 40.1 3 $763 40.2 4 $903 40.3 5 $1,025 40.4 6 $1,165 40.5 7 $1,273 40.6 8 $1,403 40.7 9 $1,530 40.8 10 $1,653 40.9 over 10 add $121 per additional member. 40.10 The commissioner shall annually publish in the State 40.11 Register the transitional standard for an assistance unit sizes 40.12 1 to 10. 40.13 Subd. 6. [APPLICATION OF ASSISTANCE STANDARDS.] The 40.14 standards apply to the number of eligible persons in the 40.15 assistance unit. 40.16 Subd. 7. [FAMILY WAGE LEVEL STANDARD.] The family wage 40.17 level standard is 110 percent of the transitional standard under 40.18 subdivision 5 and is the standard used when there is earned 40.19 income in the assistance unit. As specified in section 256J.21, 40.20 earned income is subtracted from the family wage level to 40.21 determine the amount of the assistance payment. Assistance 40.22 payments may not exceed the transitional standard for the 40.23 assistance unit. 40.24 Sec. 15. [256J.25] [RETURN OF UTILITY DEPOSIT.] 40.25 A county may require that assistance paid under MFIP-S in 40.26 the form of a utility deposit less any amount retained to 40.27 satisfy outstanding utility costs be returned to the county when 40.28 the person vacates the premises or be paid for the person's new 40.29 housing unit as a vendor payment. 40.30 Sec. 16. [256J.26] [PERSONS INELIGIBLE; VENDOR PAYMENTS.] 40.31 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) 40.32 Applicants who have been convicted of a drug offense after July 40.33 1, 1997, may, if otherwise eligible, receive AFDC or MFIP-S 40.34 benefits subject to the following conditions: 40.35 (1) benefits for the entire assistance unit must be paid in 40.36 vendor form for shelter and utilities during any time the 41.1 applicant is part of the assistance unit; 41.2 (2) the convicted applicant shall be subject to random drug 41.3 testing as a condition of continued eligibility and is subject 41.4 to sanctions under section 256J.46 following any positive test 41.5 for an illegal controlled substance. 41.6 This subdivision also applies to persons who receive food 41.7 stamps under section 115 of the Personal Responsibility and Work 41.8 Opportunity Reconciliation Act of 1996. 41.9 (b) For the purposes of this subdivision, "drug offense" 41.10 means a conviction that occurred after July 1, 1997, of sections 41.11 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 41.12 means a conviction in another jurisdiction of the possession, 41.13 use, or distribution of a controlled substance, or conspiracy to 41.14 commit any of these offenses, if the offense occurred after July 41.15 1, 1997, and the conviction is a felony offense in that 41.16 jurisdiction, or in the case of New Jersey, a high misdemeanor. 41.17 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 41.18 condition of probation or parole or supervised release imposed 41.19 under federal law or the law of any state is ineligible to 41.20 receive AFDC or MFIP-S. 41.21 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 41.22 avoid prosecution, or custody, or confinement after conviction 41.23 for a crime that is a felony under the laws of the jurisdiction 41.24 from which the individual flees, or in the case of New Jersey, 41.25 is a high misdemeanor, is ineligible to receive AFDC or MFIP-S. 41.26 Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 41.27 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 41.28 individual who is convicted in federal or state court of having 41.29 made a fraudulent statement or representation with respect to 41.30 the place of residence of the individual in order to receive 41.31 assistance simultaneously from two or more states is ineligible 41.32 to receive AFDC or MFIP-S for ten years beginning on the date of 41.33 the conviction. 41.34 Sec. 17. [256J.28] [PROVISIONS RELATED SPECIFICALLY TO 41.35 FOOD STAMP ASSISTANCE.] 41.36 Subdivision 1. [EXPEDITED ISSUANCE OF FOOD STAMP 42.1 ASSISTANCE.] The following households are entitled to expedited 42.2 issuance of food stamp assistance: 42.3 (1) households with less than $150 in monthly gross income 42.4 provided their liquid assets do not exceed $100; 42.5 (2) migrant or seasonal farm worker households who are 42.6 destitute as defined in Code of Federal Regulations, title 7, 42.7 subtitle B, chapter 2, subchapter C, part 273, section 273.10, 42.8 paragraph (e)(3), provided their liquid assets do not exceed 42.9 $100; and 42.10 (3) eligible households whose combined monthly gross income 42.11 and liquid resources are less than the household's monthly rent 42.12 or mortgage and utilities. 42.13 The benefits issued through expedited issuance of food 42.14 stamp assistance must be deducted from the amount of the full 42.15 monthly MFIP-S assistance payment and a supplemental payment for 42.16 the difference must be issued. 42.17 Subd. 2. [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 42.18 ASSISTANCE UNIT.] (a) For household members who purchase and 42.19 prepare food with the MFIP-S assistance unit but are not part of 42.20 the assistance unit, the county agency must determine a separate 42.21 food stamp benefit based on regulations agreed upon with the 42.22 United States department of agriculture. 42.23 (b) This subdivision does not apply to optional members who 42.24 have chosen not to be in the assistance unit. 42.25 (c) Fair hearing requirements for persons who receive food 42.26 stamps under this subdivision are governed by section 256.045, 42.27 and Code of Federal Regulations, title 7, subtitle B, chapter 42.28 II, part 273, section 273.15. 42.29 Subd. 3. [INCOME DISREGARD FOR CERTAIN PROGRAMS, FOOD 42.30 ASSISTANCE PORTION OF ASSISTANCE PAYMENT.] The portion of the 42.31 MFIP-S assistance payment that is designated by the commissioner 42.32 as the food assistance portion of the assistance payment must be 42.33 disregarded as income in the following programs: 42.34 (1) housing subsidy programs; 42.35 (2) low-income home energy assistance program; 42.36 (3) Supplemental Security Income, when determining interim 43.1 assistance amount; and 43.2 (4) other programs that do not count food stamps as income. 43.3 For the purposes of this subdivision, the food assistance 43.4 portion of the assistance payment means a predetermined portion 43.5 of the MFIP-S assistance payment that may be received in 43.6 point-of-purchase sites or as food stamps. The predetermined 43.7 portion of the assistance payment will vary by family profile, 43.8 which is based on family size. 43.9 Subd. 4. [FOOD PORTION OF MFIP-S ASSISTANCE GRANT.] (a) 43.10 The MFIP-S assistance grant must be reduced in an amount equal 43.11 to the food portion of the transitional standard for an 43.12 assistance unit when a relative caregiver chooses not to be part 43.13 of the assistance unit and is exempt from work activities under 43.14 this chapter. 43.15 (b) The food portion of the MFIP-S grant must be reduced by 43.16 $30 for MFIP-S recipients who are also recipients of public 43.17 housing subsidies. 43.18 Sec. 18. [256J.30] [APPLICANT AND PARTICIPANT REQUIREMENTS 43.19 AND RESPONSIBILITIES.] 43.20 Subdivision 1. [APPLICANT REPORTING REQUIREMENTS.] An 43.21 applicant must provide information on an application form and 43.22 supplemental forms about the applicant's circumstances which 43.23 affect MFIP-S eligibility or the assistance payment. An 43.24 applicant must report changes identified in subdivision 9 while 43.25 the application is pending. When an applicant does not 43.26 accurately report information on an application, both an 43.27 overpayment and a referral for a fraud investigation may 43.28 result. When an applicant does not provide information or 43.29 documentation, the receipt of the assistance payment may be 43.30 delayed or the application may be denied depending on the type 43.31 of information required and its effect on eligibility. 43.32 Subd. 2. [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 43.33 applicant or participant must apply for and follow through with 43.34 appealing any denials of eligibility for benefits from other 43.35 programs for which the applicant or participant is potentially 43.36 eligible and which would, if received, offset assistance 44.1 payments. An applicant's or participant's failure to complete 44.2 application for these benefits without good cause results in 44.3 denial or termination of assistance. Good cause for failure to 44.4 apply for these benefits is allowed when circumstances beyond 44.5 the control of the applicant or participant prevent the 44.6 applicant or participant from making an application. 44.7 Subd. 3. [RESPONSIBILITY TO INQUIRE.] An applicant or 44.8 participant who does not know or is unsure whether a given 44.9 change in circumstances will affect the applicant's or 44.10 participant's MFIP-S eligibility or assistance payment must 44.11 contact the county agency for information. 44.12 Subd. 4. [PARTICIPANT'S COMPLETION OF RECERTIFICATION OF 44.13 ELIGIBILITY FORM.] A participant must complete forms prescribed 44.14 by the commissioner which are required for recertification of 44.15 eligibility according to section 256J.32, subdivision 6. 44.16 Subd. 5. [MONTHLY MFIP-S HOUSEHOLD REPORTS.] Each 44.17 assistance unit with a member who has earned income or a recent 44.18 work history, and each assistance unit that has income deemed to 44.19 it from a financially responsible person must complete a monthly 44.20 MFIP-S household report form. "Recent work history" means the 44.21 individual received earned income in the report month or any of 44.22 the previous three calendar months even if the earnings are 44.23 excluded. To be complete, the MFIP-S household report form must 44.24 be signed and dated by the caregivers no earlier than the last 44.25 day of the reporting period. All questions required to 44.26 determine assistance payment eligibility must be answered, and 44.27 documentation of earned income must be included. 44.28 Subd. 6. [SIX-MONTH MFIP-S HOUSEHOLD REPORT.] Assistance 44.29 units that are not required to report monthly under subdivision 44.30 5 must complete an MFIP-S household report form every six 44.31 months. To be complete, the MFIP-S household report form must 44.32 be signed and dated by the caregiver or caregivers no earlier 44.33 than the last day of the reporting period. All questions 44.34 required to determine assistance payment eligibility must be 44.35 answered and documentation of earned income must be included. 44.36 Subd. 7. [DUE DATE OF MFIP-S HOUSEHOLD REPORT.] An MFIP-S 45.1 household report form must be received by the county agency by 45.2 the eighth calendar day of the month following the reporting 45.3 period covered by the form. When the eighth calendar day of the 45.4 month falls on a weekend or holiday, the MFIP-S household report 45.5 form must be received by the county agency the first working day 45.6 that follows the eighth calendar day. The county agency must 45.7 send a notice of termination because of a late or incomplete 45.8 MFIP-S household report form. 45.9 Subd. 8. [LATE MFIP-S HOUSEHOLD REPORT FORMS.] Paragraphs 45.10 (a) to (d) apply to the reporting requirements in subdivision 7. 45.11 (a) When a caregiver submits an incomplete MFIP-S household 45.12 report form before the last working day of the month on which a 45.13 ten-day notice of termination can be issued, the county agency 45.14 must return the incomplete form on or before the ten-day notice 45.15 deadline or any previously sent ten-day notice of termination is 45.16 invalid. 45.17 (b) When a complete MFIP-S household report form is not 45.18 received by a county agency before the last ten days of the 45.19 month in which the form is due, the county agency must send a 45.20 notice of proposed termination of assistance. When a caregiver 45.21 submits an incomplete form on or after the date a notice of 45.22 proposed termination has been sent, the termination is valid 45.23 unless the caregiver submits a complete form before the end of 45.24 the month. 45.25 (c) An assistance unit required to submit an MFIP-S 45.26 household report form is considered to have continued its 45.27 application for assistance if a complete MFIP-S household report 45.28 form is received within a calendar month after the month in 45.29 which assistance was received and assistance shall be paid for 45.30 the period beginning with the first day of the month in which 45.31 the report was due. 45.32 (d) A county agency must allow good cause exemptions from 45.33 the reporting requirements under subdivisions 5 and 6 when any 45.34 of the following factors cause a caregiver to fail to provide 45.35 the county agency with a completed MFIP-S household report form 45.36 before the end of the month in which the form is due: 46.1 (1) an employer delays completion of employment 46.2 verification; 46.3 (2) a county agency does not help a caregiver complete the 46.4 MFIP-S household report form when the caregiver asks for help; 46.5 (3) a caregiver does not receive an MFIP-S household report 46.6 form due to mistake on the part of the department or the county 46.7 agency or due to a reported change in address; 46.8 (4) a caregiver is ill, or physically or mentally 46.9 incapacitated; or 46.10 (5) some other circumstance occurs that a caregiver could 46.11 not avoid with reasonable care which prevents the caregiver from 46.12 providing a completed MFIP-S household report form before the 46.13 end of the month in which the form is due. 46.14 Subd. 9. [CHANGES THAT MUST BE REPORTED.] A caregiver must 46.15 report the changes or anticipated changes specified in clauses 46.16 (1) to (16) within ten days of the date they occur, within ten 46.17 days of the date the caregiver learns that the change will 46.18 occur, at the time of the periodic recertification of 46.19 eligibility under section 256J.32, subdivision 6, or within 46.20 eight calendar days of a reporting period as in subdivision 5 or 46.21 6, whichever occurs first. A caregiver must report other 46.22 changes at the time of the periodic recertification of 46.23 eligibility under section 256J.32, subdivision 6, or at the end 46.24 of a reporting period under subdivision 5 or 6, as applicable. 46.25 A caregiver must make these reports in writing to the county 46.26 agency. When a county agency could have reduced or terminated 46.27 assistance for one or more payment months if a delay in 46.28 reporting a change specified under clauses (1) to (16) had not 46.29 occurred, the county agency must determine whether a timely 46.30 notice under section 256J.31, subdivision 4, could have been 46.31 issued on the day that the change occurred. When a timely 46.32 notice could have been issued, each month's overpayment 46.33 subsequent to that notice must be considered a client error 46.34 overpayment under section 256J.38. Changes in circumstances 46.35 which must be reported within ten days must also be reported on 46.36 the MFIP-S household report form for the reporting period in 47.1 which those changes occurred. Within ten days, a caregiver must 47.2 report: 47.3 (1) a change in initial employment; 47.4 (2) a change in initial receipt of unearned income; 47.5 (3) a recurring change in unearned income; 47.6 (4) a nonrecurring change of unearned income that exceeds 47.7 $30; 47.8 (5) the receipt of a lump sum; 47.9 (6) an increase in assets that may cause the assistance 47.10 unit to exceed asset limits; 47.11 (7) a change in the physical or mental status of an 47.12 incapacitated member of the assistance unit if the physical or 47.13 mental status is the basis of exemption from an MFIP-S work and 47.14 training program; 47.15 (8) a change in employment status; 47.16 (9) a change in household composition, including births, 47.17 returns to and departures from the home of assistance unit 47.18 members and financially responsible persons, or a change in the 47.19 custody of a minor child; 47.20 (10) a change in health insurance coverage; 47.21 (11) the marriage or divorce of an assistance unit member; 47.22 (12) the death of a parent, minor child, or financially 47.23 responsible person; 47.24 (13) a change in address or living quarters of the 47.25 assistance unit; 47.26 (14) the sale, purchase, or other transfer of property; 47.27 (15) a change in school attendance of a custodial parent or 47.28 an employed child; and 47.29 (16) filing a lawsuit, a workers' compensation claim, or a 47.30 monetary claim against a third party. 47.31 Subd. 10. [COOPERATION WITH HEALTH CARE BENEFITS.] (a) The 47.32 caregiver of a minor child must cooperate with the county agency 47.33 to identify and provide information to assist the county agency 47.34 in pursuing third-party liability for medical services. 47.35 (b) A caregiver must assign to the department any rights to 47.36 health insurance policy benefits the caregiver has during the 48.1 period of MFIP-S eligibility. 48.2 (c) A caregiver must identify any third party who may be 48.3 liable for care and services available under the medical 48.4 assistance program on behalf of the applicant or participant and 48.5 all other assistance unit members. 48.6 (d) When a participant refuses to identify any third party 48.7 who may be liable for care and services, the recipient must be 48.8 sanctioned as provided in section 256J.46, subdivision 1. The 48.9 recipient is also ineligible for medical assistance for a 48.10 minimum of one month and until the recipient cooperates with the 48.11 requirements of this subdivision. 48.12 Subd. 11. [REQUIREMENT TO ASSIGN SUPPORT AND MAINTENANCE 48.13 RIGHTS.] To be eligible for MFIP-S, the caregiver must assign 48.14 all rights to child support and spousal maintenance benefits 48.15 according to section 256.74, subdivision 5, and section 256.741, 48.16 if enacted. 48.17 Subd. 12. [REQUIREMENT TO PROVIDE SOCIAL SECURITY 48.18 NUMBERS.] Each member of the assistance unit must provide the 48.19 member's social security number to the county agency, except for 48.20 members in the assistance unit who are qualified noncitizens who 48.21 are victims of domestic violence as defined under section 48.22 256J.08, subdivision 73, clause (7). When a social security 48.23 number is not provided to the county agency for verification, 48.24 this requirement is satisfied when each member of the assistance 48.25 unit cooperates with the procedures for verification of numbers, 48.26 issuance of duplicate cards, and issuance of new numbers which 48.27 have been established jointly between the Social Security 48.28 Administration and the commissioner. 48.29 Sec. 19. [256J.31] [APPLICANT AND PARTICIPANT RIGHTS AND 48.30 COUNTY AGENCY RESPONSIBILITIES.] 48.31 Subdivision 1. [RIGHT TO INFORMATION.] An applicant or 48.32 participant has the right to obtain from the county agency 48.33 information about the benefits, requirements, restrictions, and 48.34 appeal provisions of public assistance programs. 48.35 Subd. 2. [RIGHT TO AUTHORIZED REPRESENTATIVE.] An 48.36 applicant or participant has the right to designate an 49.1 authorized representative to act on the applicant's or 49.2 participant's behalf. An applicant or participant has the right 49.3 to be assisted or represented by an authorized representative in 49.4 eligibility determinations, recertification, conciliation 49.5 conferences, the fair hearing process, and any other contacts 49.6 with the county agency or the department. When a county agency 49.7 determines that it is necessary for a person to assist an 49.8 applicant or participant, the county agency must designate a 49.9 staff member to assist the applicant or participant. Upon a 49.10 request from an applicant or participant, a county agency must 49.11 provide addresses and telephone numbers of organizations that 49.12 provide legal services at low cost or no cost to low-income 49.13 persons. 49.14 Subd. 3. [RIGHT OF APPLICANT TO NOTICE.] A county agency 49.15 must notify an applicant of the disposition of the applicant's 49.16 application. The notice must be in writing and on forms 49.17 prescribed by the commissioner. The county agency must mail the 49.18 notice to the last known mailing address provided by the 49.19 applicant. When an application is denied, the county agency 49.20 must notify the applicant in writing of the reasons for the 49.21 denial, of the right to appeal, and of the right to reapply for 49.22 assistance. 49.23 Subd. 4. [PARTICIPANT'S RIGHT TO NOTICE.] A county agency 49.24 must give a participant written notice of all adverse actions 49.25 affecting the participant including payment reductions, 49.26 suspensions, terminations, and use of protective, vendor, or 49.27 two-party payments. The notice of adverse action must be on a 49.28 form prescribed or approved by the commissioner and must be 49.29 mailed to the last known mailing address provided by the 49.30 participant. The county agency must state on the notice of 49.31 adverse action the action it intends to take, the reasons for 49.32 the action, the participant's right to appeal the action, the 49.33 conditions under which assistance can be continued pending an 49.34 appeal decision, and the related consequences of the action. 49.35 Subd. 5. [MAILING OF NOTICE.] The notice of adverse action 49.36 shall be issued according to paragraphs (a) to (c). 50.1 (a) A county agency shall mail a notice of adverse action 50.2 at least ten days before the effective date of the adverse 50.3 action, except as provided in paragraphs (b) and (c). 50.4 (b) A county agency must mail a notice of adverse action at 50.5 least five days before the effective date of the adverse action 50.6 when the county agency has factual information that requires an 50.7 action to reduce, suspend, or terminate assistance based on 50.8 probable fraud. 50.9 (c) A county agency shall mail a notice of adverse action 50.10 before or on the effective date of the adverse action when the 50.11 county agency: 50.12 (1) receives the caregiver's signed monthly MFIP-S 50.13 household report form that includes information that requires 50.14 payment reduction, suspension, or termination; 50.15 (2) is informed of the death of a participant or the payee; 50.16 (3) receives a signed statement from the caregiver that 50.17 assistance is no longer wanted; 50.18 (4) receives a signed statement from the caregiver that 50.19 provides information that requires the termination or reduction 50.20 of assistance; 50.21 (5) verifies that a member of the assistance unit is absent 50.22 from the home and does not meet temporary absence provisions in 50.23 section 256J.13; 50.24 (6) verifies that a member of the assistance unit has 50.25 entered a regional treatment center or a licensed residential 50.26 facility for medical or psychological treatment or 50.27 rehabilitation; 50.28 (7) verifies that a member of an assistance unit has been 50.29 placed in foster care, and the provisions of section 256J.13, 50.30 subdivision 2, paragraph (b), do not apply; 50.31 (8) verifies that a member of an assistance unit has been 50.32 approved to receive assistance by another state; or 50.33 (9) cannot locate a caregiver. 50.34 Subd. 6. [APPEAL RIGHTS.] An applicant, participant, or 50.35 former participant has the right to request a fair hearing when 50.36 aggrieved by an action or inaction of a county agency. A 51.1 request for a fair hearing and rights pending a fair hearing are 51.2 set as specified in section 256J.40. 51.3 Subd. 7. [CASE RECORDS AVAILABLE.] A county agency must 51.4 make financial case records available to the participant or 51.5 former participant as soon as possible but no later than the 51.6 fifth business day following the date of the request. When the 51.7 participant or former participant asks for photocopies of 51.8 material from the financial case record, the county agency must 51.9 provide one copy of each page at no cost. 51.10 Subd. 8. [RIGHT TO MANAGE AFFAIRS.] Except for protective 51.11 payment provisions authorized under section 256J.39, 51.12 participants have the right to manage their own affairs. 51.13 Subd. 9. [RIGHT TO PROTECTION.] Minor caregivers have the 51.14 right to protection. The county agency must refer a minor 51.15 caregiver to the social service unit within 30 days of the date 51.16 the application is approved. The social service unit must 51.17 assist the caregiver who is less than 18 years of age to develop 51.18 a plan as specified in section 256J.54. 51.19 Subd. 10. [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 51.20 earnings of a caregiver while participating in full or part-time 51.21 employment or training shall be protected from garnishment. 51.22 This protection for earnings shall extend for a period of six 51.23 months from the date of termination from MFIP-S. 51.24 Subd. 11. [RESPONSIBILITY TO RETAIN CASE RECORDS.] The 51.25 county agency must retain financial case records and employment 51.26 and training service records for MFIP-S cases according to 51.27 chapter 13. 51.28 Sec. 20. [256J.315] [COUNTY AND TRIBAL COOPERATION.] 51.29 The county agency must cooperate with tribal governments in 51.30 the implementation of MFIP-S to ensure that the program meets 51.31 the special needs of persons living on Indian reservations. 51.32 This cooperation must include, but is not limited to, the 51.33 sharing of MFIP-S duties including initial screening, 51.34 orientation, assessments, and provision of employment and 51.35 training services. The county agency shall encourage tribal 51.36 governments to assume duties related to MFIP-S and shall work 52.1 cooperatively with tribes that have assumed responsibility for a 52.2 portion of the MFIP-S program to expand tribal responsibilities, 52.3 if that expansion is requested by the tribe. 52.4 Sec. 21. [256J.32] [DOCUMENTING, VERIFYING, AND 52.5 RECERTIFYING ELIGIBILITY.] 52.6 Subdivision 1. [VERIFICATION OF INFORMATION.] A county 52.7 agency must only require verification of information necessary 52.8 to determine MFIP-S eligibility and the amount of the assistance 52.9 payment. 52.10 Subd. 2. [DOCUMENTATION.] The applicant or participant 52.11 must document the information required under subdivisions 4 to 6 52.12 or authorize the county agency to verify the information. The 52.13 applicant or participant has the burden of providing documentary 52.14 evidence to verify eligibility. The county agency shall assist 52.15 the applicant or participant in obtaining required documents 52.16 when the applicant or participant is unable to do so. When an 52.17 applicant or participant and the county agency are unable to 52.18 obtain documents needed to verify information, the county agency 52.19 may accept an affidavit from an applicant or participant as 52.20 sufficient documentation. 52.21 Subd. 3. [CONTACTING THIRD PARTIES.] A county agency must 52.22 not request information about an applicant or participant that 52.23 is not of public record from a source other than county 52.24 agencies, the department, or the United States Department of 52.25 Health and Human Services without the person's prior written 52.26 consent. An applicant's signature on an application form 52.27 constitutes consent for contact with the sources specified on 52.28 the application. A county agency may use a single consent form 52.29 to contact a group of similar sources, such as banks or 52.30 insurance agencies, but the sources to be contacted must be 52.31 identified by the county agency prior to requesting an 52.32 applicant's consent. 52.33 Subd. 4. [FACTORS TO BE VERIFIED.] The county agency shall 52.34 verify the following at application: 52.35 (1) identity of adults; 52.36 (2) presence of the minor child in the home, if 53.1 questionable; 53.2 (3) relationship of a minor child to caregivers in the 53.3 assistance unit; 53.4 (4) age, if necessary to determine MFIP-S eligibility; 53.5 (5) immigration status; 53.6 (6) social security number in accordance with the 53.7 requirements of section 256J.30, subdivision 12; 53.8 (7) income; 53.9 (8) self-employment expenses used as a deduction; 53.10 (9) source and purpose of deposits and withdrawals from 53.11 business accounts; 53.12 (10) spousal support and child support payments made to 53.13 persons outside the household; 53.14 (11) real property; 53.15 (12) vehicles; 53.16 (13) checking and savings accounts; 53.17 (14) savings certificates, savings bonds, stocks, and 53.18 individual retirement accounts; 53.19 (15) pregnancy, if related to eligibility; 53.20 (16) inconsistent information, if related to eligibility; 53.21 (17) medical insurance; 53.22 (18) anticipated graduation date of an 18-year-old; 53.23 (19) burial accounts; 53.24 (20) school attendance, if related to eligibility; and 53.25 (21) residence. 53.26 Subd. 5. [VERIFICATION OF IMMIGRATION STATUS.] An 53.27 applicant's written authorization is required before the county 53.28 agency contacts the Immigration and Naturalization Service to 53.29 verify immigration status under subdivision 4, clause (5). 53.30 However, refusal to provide such authorization is grounds for a 53.31 finding of ineligibility if the applicant fails to produce proof 53.32 of eligible immigration status. 53.33 Subd. 5a. [INCONSISTENT INFORMATION.] When the county 53.34 agency verifies inconsistent information under subdivision 4, 53.35 clause (16), or under subdivision 6, clause (4), the reason for 53.36 verifying the information must be documented in the financial 54.1 case record. 54.2 Subd. 6. [RECERTIFICATION.] The county agency shall 54.3 recertify eligibility in an annual face-to-face interview with 54.4 the participant and verify the following: 54.5 (1) presence of the minor child in the home, if 54.6 questionable; 54.7 (2) income, including self-employment expenses used as a 54.8 deduction or deposits or withdrawals from business accounts; 54.9 (3) assets when the value is within $200 of the asset 54.10 limit; and 54.11 (4) inconsistent information, if related to eligibility. 54.12 Sec. 22. [256J.33] [PROSPECTIVE AND RETROSPECTIVE 54.13 DETERMINATION OF MFIP-S ELIGIBILITY.] 54.14 Subdivision 1. [DETERMINATION OF ELIGIBILITY.] A county 54.15 agency must determine MFIP-S eligibility prospectively for a 54.16 payment month based on retrospectively assessing income and the 54.17 county agency's best estimate of the circumstances that will 54.18 exist in the payment month. 54.19 Except as described in section 256J.34, subdivision 1, when 54.20 prospective eligibility exists, a county agency must calculate 54.21 the amount of the assistance payment using retrospective 54.22 budgeting. To determine MFIP-S eligibility and the assistance 54.23 payment amount, a county agency must apply countable income, 54.24 described in section 256J.37, subdivisions 3 to 10, received by 54.25 members of an assistance unit or by other persons whose income 54.26 is counted for the assistance unit, described under sections 54.27 256J.21 and 256J.37, subdivisions 1 and 2. 54.28 This income must be applied to the transitional standard or 54.29 family wage standard subject to this section and sections 54.30 256J.34 to 256J.36. Income received in a calendar month and not 54.31 otherwise excluded under section 256J.21, subdivision 2, must be 54.32 applied to the needs of an assistance unit. 54.33 Subd. 2. [PROSPECTIVE ELIGIBILITY.] A county agency must 54.34 determine whether the eligibility requirements that pertain to 54.35 an assistance unit, including those in sections 256J.11 to 54.36 256J.15 and 256J.20, will be met prospectively for the payment 55.1 month. Except for the provisions in section 256J.34, 55.2 subdivision 1, the income test will be applied retrospectively. 55.3 Subd. 3. [RETROSPECTIVE ELIGIBILITY.] After the first two 55.4 months of MFIP-S eligibility, a county agency must continue to 55.5 determine whether an assistance unit is prospectively eligible 55.6 for the payment month by looking at all factors other than 55.7 income and then determine whether the assistance unit is 55.8 retrospectively income eligible by applying the monthly income 55.9 test to the income from the budget month. When the monthly 55.10 income test is not satisfied, the assistance payment must be 55.11 suspended when ineligibility exists for one month or ended when 55.12 ineligibility exists for more than one month. 55.13 Subd. 4. [MONTHLY INCOME TEST.] A county agency must apply 55.14 the monthly income test retrospectively for each month of MFIP-S 55.15 eligibility. An assistance unit is not eligible when the 55.16 countable income equals or exceeds the transitional standard or 55.17 the family wage level for the assistance unit. The income 55.18 applied against the monthly income test must include: 55.19 (1) gross earned income from employment, prior to mandatory 55.20 payroll deductions, voluntary payroll deductions, wage 55.21 authorizations, and after the disregards in section 256J.21, 55.22 subdivision 3, and the allocations in section 256J.36, unless 55.23 the employment income is specifically excluded under section 55.24 256J.21, subdivision 2; 55.25 (2) gross earned income from self-employment less 55.26 deductions for self-employment expenses in section 256J.37, 55.27 subdivision 5, but prior to any reductions for personal or 55.28 business state and federal income taxes, personal FICA, personal 55.29 health and life insurance, and after the disregards in section 55.30 256J.21, subdivision 3, and the allocations in section 256J.36; 55.31 (3) unearned income after deductions for allowable expenses 55.32 in section 256J.37, subdivision 9, and allocations in section 55.33 256J.36, unless the income has been specifically excluded in 55.34 section 256J.21, subdivision 2; 55.35 (4) gross earned income from employment as determined under 55.36 clause (1) which is received by a member of an assistance unit 56.1 who is a minor child or minor caregiver and less than a 56.2 half-time student; 56.3 (5) child support and spousal support received or 56.4 anticipated to be received by an assistance unit; 56.5 (6) the income of a parent when that parent is not included 56.6 in the assistance unit; 56.7 (7) the income of an eligible relative and spouse who seek 56.8 to be included in the assistance unit; and 56.9 (8) the unearned income of a minor child included in the 56.10 assistance unit. 56.11 Subd. 5. [WHEN TO TERMINATE ASSISTANCE.] When an 56.12 assistance unit is ineligible for MFIP-S assistance for two 56.13 consecutive months, the county agency must terminate MFIP-S 56.14 assistance. 56.15 Sec. 23. [256J.34] [CALCULATING PAYMENTS; SIGNIFICANT 56.16 CHANGE; INCOME AVERAGING.] 56.17 Subdivision 1. [PROSPECTIVE BUDGETING.] A county agency 56.18 must use prospective budgeting to calculate the assistance 56.19 payment amount for the first two months for an applicant who has 56.20 not received assistance in this state for at least one payment 56.21 month preceding the first month of payment under a current 56.22 application. Prospective budgeting is not subject to 56.23 overpayments or underpayments unless fraud is determined under 56.24 section 256.98. 56.25 (a) The county agency must apply the income received or 56.26 anticipated in the first month of MFIP-S eligibility against the 56.27 need of the first month. The county agency must apply the 56.28 income received or anticipated in the second month against the 56.29 need of the second month. 56.30 (b) When the assistance payment for any part of the first 56.31 two months is based on anticipated income, the county agency 56.32 must base the initial assistance payment amount on the 56.33 information available at the time the initial assistance payment 56.34 is made. 56.35 (c) The county agency must determine the assistance payment 56.36 amount for the first two months of MFIP-S eligibility by 57.1 budgeting both recurring and nonrecurring income for those two 57.2 months. 57.3 (d) The county agency must budget the child support income 57.4 received or anticipated to be received by an assistance unit to 57.5 determine the assistance payment amount from the month of 57.6 application through the date in which MFIP-S eligibility is 57.7 determined and assistance is authorized. Child support income 57.8 which has been budgeted to determine the assistance payment in 57.9 the initial two months is considered nonrecurring income. An 57.10 assistance unit must forward any payment of child support to the 57.11 child support enforcement unit of the county agency following 57.12 the date in which assistance is authorized. 57.13 Subd. 2. [RETROSPECTIVE BUDGETING.] The county agency must 57.14 use retrospective budgeting to calculate the monthly assistance 57.15 payment amount after the payment for the first two months has 57.16 been made under subdivision 1. 57.17 Subd. 3. [ADDITIONAL USES OF RETROSPECTIVE 57.18 BUDGETING.] Notwithstanding subdivision 1, the county agency 57.19 must use retrospective budgeting to calculate the monthly 57.20 assistance payment amount for the first two months under 57.21 paragraphs (a) and (b). 57.22 (a) The county agency must use retrospective budgeting to 57.23 determine the amount of the assistance payment in the first two 57.24 months of MFIP-S eligibility: 57.25 (1) when an assistance unit applies for assistance for the 57.26 same month for which assistance has been interrupted, the 57.27 interruption in eligibility is less than one payment month, the 57.28 assistance payment for the preceding month was issued in this 57.29 state, and the assistance payment for the immediately preceding 57.30 month was determined retrospectively; or 57.31 (2) when a person applies in order to be added to an 57.32 assistance unit, that assistance unit has received assistance in 57.33 this state for at least the two preceding months, and that 57.34 person has been living with and has been financially responsible 57.35 for one or more members of that assistance unit for at least the 57.36 two preceding months. 58.1 (b) Except as provided in clauses (1) to (4), the county 58.2 agency must use retrospective budgeting and apply income 58.3 received in the budget month by an assistance unit and by a 58.4 financially responsible household member who is not included in 58.5 the assistance unit against the appropriate transitional or 58.6 family wage level standard to determine the assistance payment 58.7 to be issued for the payment month. 58.8 (1) When a source of income ends prior to the third payment 58.9 month, that income is not considered in calculating the 58.10 assistance payment for that month. When a source of income ends 58.11 prior to the fourth payment month, that income is not considered 58.12 when determining the assistance payment for that month. 58.13 (2) When a member of an assistance unit or a financially 58.14 responsible household member leaves the household of the 58.15 assistance unit, the income of that departed household member is 58.16 not budgeted retrospectively for any full payment month in which 58.17 that household member does not live with that household and is 58.18 not included in the assistance unit. 58.19 (3) When an individual is removed from an assistance unit 58.20 because the individual is no longer a minor child, the income of 58.21 that individual is not budgeted retrospectively for payment 58.22 months in which that individual is not a member of the 58.23 assistance unit, except that income of an ineligible child in 58.24 the household must continue to be budgeted retrospectively 58.25 against the child's needs when the parent or parents of that 58.26 child request allocation of their income against any unmet needs 58.27 of that ineligible child. 58.28 (4) When a person ceases to have financial responsibility 58.29 for one or more members of an assistance unit, the income of 58.30 that person is not budgeted retrospectively for the payment 58.31 months which follow the month in which financial responsibility 58.32 ends. 58.33 Subd. 4. [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 58.34 agency must recalculate the assistance payment when an 58.35 assistance unit experiences a significant change, as defined in 58.36 section 256J.08, resulting in a reduction in the gross income 59.1 received in the payment month from the gross income received in 59.2 the budget month. The county agency must issue a supplemental 59.3 assistance payment based on the county agency's best estimate of 59.4 the assistance unit's income and circumstances for the payment 59.5 month. Budget adjustments that result from significant changes 59.6 are limited to two in a 12-month period regardless of the reason 59.7 for the change. Budget adjustments due to a significant change 59.8 in the amount of direct support received must not be made after 59.9 the date the assistance unit is required to forward support to 59.10 the child support enforcement unit under subdivision 1, 59.11 paragraph (d). 59.12 Subd. 5. [INCOME AVERAGING FOR PARTICIPANTS PAID WEEKLY OR 59.13 BIWEEKLY.] For the purposes of stabilizing assistance payments, 59.14 the county agency may average income for participants paid 59.15 weekly or biweekly. Monthly income may be computed by adding 59.16 income from all paychecks, dividing the sum by the number of 59.17 paychecks, and multiplying the results by 4.3 if paychecks are 59.18 weekly or 2.16 if paychecks are biweekly. The county agency may 59.19 not use income averaging unless discussed with the participant 59.20 and requested by the participant. 59.21 Sec. 24. [256J.35] [AMOUNT OF ASSISTANCE PAYMENT.] 59.22 Except as provided in paragraphs (a) to (c), the amount of 59.23 an assistance payment is equal to the difference between the 59.24 transitional standard or the family wage level in section 59.25 256J.24 and countable income. 59.26 (a) When MFIP-S eligibility exists for the month of 59.27 application, the amount of the assistance payment for the month 59.28 of application must be prorated from the date of application or 59.29 the date all other eligibility factors are met for that 59.30 applicant, whichever is later. This provision applies when an 59.31 applicant loses at least one day of MFIP-S eligibility. 59.32 (b) MFIP-S overpayments to an assistance unit must be 59.33 recouped according to section 256J.38, subdivision 4. 59.34 (c) An initial assistance payment must not be made to an 59.35 applicant who is not eligible on the date payment is made. 59.36 Sec. 25. [256J.36] [ALLOCATION FOR UNMET NEED OF OTHER 60.1 HOUSEHOLD MEMBERS.] 60.2 Except as prohibited in paragraphs (a) and (b), an 60.3 allocation of income is allowed to meet the unmet need of an 60.4 ineligible spouse or an ineligible child under the age of 21 for 60.5 whom the caregiver is financially responsible who also lives 60.6 with the caregiver. An allocation is allowed from the 60.7 caregiver's income to meet the need of an ineligible or excluded 60.8 person. That allocation is allowed in an amount up to the 60.9 difference between the MFIP-S family allowance for the 60.10 assistance unit when that excluded or ineligible person is 60.11 included in the assistance unit and the MFIP-S family allowance 60.12 for the assistance unit when the excluded or ineligible person 60.13 is not included in the assistance unit. These allocations must 60.14 be deducted from the caregiver's counted earnings and from 60.15 unearned income subject to paragraphs (a) and (b). 60.16 (a) Income of a minor child in the assistance unit must not 60.17 be allocated to meet the need of a person who is not a member of 60.18 the assistance unit, including the child's parent, even when 60.19 that parent is the payee of the child's income. 60.20 (b) Income of an assistance unit must not be allocated to 60.21 meet the needs of a person ineligible for failure to cooperate 60.22 with program requirements including child support requirements, 60.23 a person ineligible due to fraud, or a relative caregiver and 60.24 the caregiver's spouse who opt out of the assistance unit. 60.25 Sec. 26. [256J.37] [TREATMENT OF INCOME AND LUMP SUMS.] 60.26 Subdivision 1. [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 60.27 MEMBERS.] The income of ineligible household members must be 60.28 deemed after allowing the following disregards: 60.29 (1) the first 18 percent of the excluded family member's 60.30 gross earned income; 60.31 (2) amounts the ineligible person actually paid to 60.32 individuals not living in the same household but whom the 60.33 ineligible person claims as dependents for determining federal 60.34 personal income tax liability; 60.35 (3) child or spousal support paid to a person who lives 60.36 outside of the household; and 61.1 (4) an amount for the needs of other persons who live in 61.2 the household but are not included in the assistance unit and 61.3 are or could be claimed by an ineligible person as dependents 61.4 for determining federal personal income tax liability. This 61.5 amount is equal to the difference between the MFIP-S need 61.6 standard when the excluded person is included in the assistance 61.7 unit and the MFIP-S need standard when the excluded person is 61.8 not included in the assistance unit. 61.9 Subd. 2. [DEEMED INCOME AND ASSETS OF SPONSOR OF 61.10 NONCITIZENS.] All income and assets of a sponsor, or sponsor's 61.11 spouse, who executed an affidavit of support for a noncitizen 61.12 must be deemed to be unearned income of the noncitizen as 61.13 specified in the Personal Responsibility and Work Opportunity 61.14 Reconciliation Act of 1996 and subsequently set out in federal 61.15 rules. 61.16 Subd. 3. [EARNED INCOME OF WAGE, SALARY, AND CONTRACTUAL 61.17 EMPLOYEES.] The county agency must include gross earned income 61.18 less any disregards in the initial and monthly income test. 61.19 Gross earned income received by persons employed on a 61.20 contractual basis must be prorated over the period covered by 61.21 the contract even when payments are received over a lesser 61.22 period of time. 61.23 Subd. 4. [SELF-EMPLOYMENT.] Self-employed individuals are 61.24 those who are responsible for their own work schedule and do not 61.25 have coverage under an employer's liability insurance or 61.26 workers' compensation. Self-employed individuals generally work 61.27 for themselves rather than an employer. However, individuals 61.28 employed in some types of services may be self-employed even if 61.29 they have an employer or work out of another's business 61.30 location. For example, real estate sales people, individuals 61.31 who work for commission sales, manufacturer's representatives, 61.32 and independent contractors may be self-employed. Self-employed 61.33 individuals may or may not have FICA deducted from the check 61.34 issued to them by an employer or another party. 61.35 Self-employed individuals may own a business singularly or 61.36 in partnership. Individuals operating more than one 62.1 self-employment business may use the loss from one business to 62.2 offset self-employment income from another business. A loss 62.3 from a self-employment business may not offset income earned 62.4 under subdivision 3. 62.5 Subd. 5. [SELF-EMPLOYMENT EARNINGS.] The county agency 62.6 must determine self-employment income according to the following: 62.7 (a) Subtract allowable business expenses from total gross 62.8 receipts. Allowable business expenses include: 62.9 (1) interest on mortgages and loans; 62.10 (2) employee wages, except for persons who are part of the 62.11 assistance unit or whose income is deemed to the participant; 62.12 (3) FICA funds paid on employees' wages, payment of 62.13 employee workers' compensation, and reemployment insurance; 62.14 (4) livestock and veterinary or breeding fees; 62.15 (5) raw material; 62.16 (6) seed and fertilizer; 62.17 (7) maintenance and repairs that are not capital 62.18 expenditures; 62.19 (8) tax return preparation fees; 62.20 (9) license fees, professional fees, franchise fees, and 62.21 professional dues; 62.22 (10) tools and supplies that are not capital expenditures; 62.23 (11) fuel and transportation expenses other than fuel costs 62.24 covered by the flat rate transportation deduction; 62.25 (12) advertising costs; 62.26 (13) meals eaten when required to be away from the local 62.27 work site; 62.28 (14) property expenses such as rent, insurance, taxes, and 62.29 utilities; 62.30 (15) postage; 62.31 (16) purchase cost of inventory at time of sale; 62.32 (17) loss from another self-employment business; 62.33 (18) attorney fees allowed by the Internal Revenue Service; 62.34 and 62.35 (19) tuition for classes necessary to maintain or improve 62.36 job skills or required by law to maintain job status or salary 63.1 as allowed by the Internal Revenue Service. 63.2 (b) The county agency shall not allow a deduction for the 63.3 following expenses: 63.4 (1) purchases of capital assets; 63.5 (2) payments on the principals of loans for capital assets; 63.6 (3) depreciation; 63.7 (4) amortization; 63.8 (5) the wholesale costs of items purchased, processed, or 63.9 manufactured which are unsold inventory; 63.10 (6) transportation costs that exceed the maximum standard 63.11 mileage rate allowed for use of a personal car in the Internal 63.12 Revenue Code; 63.13 (7) costs, in any amount, for mileage between an 63.14 applicant's or participant's home and place of employment; 63.15 (8) salaries and other employment deductions made for 63.16 members of an assistance unit or persons who live in the 63.17 household for whom an employer is legally responsible; 63.18 (9) monthly expenses in excess of $71 for each roomer; 63.19 (10) monthly expenses in excess of the Thrifty Food Plan 63.20 amount for one person for each boarder. For purposes of this 63.21 clause and clause (11), "Thrifty Food Plan" has the meaning 63.22 given it in Code of Federal Regulations; 63.23 (11) monthly expenses in excess of the roomer rate plus the 63.24 Thrifty Food Plan amount for one person for each 63.25 roomer-boarder. If there is more than one boarder or 63.26 roomer-boarder, use the total number of boarders as the unit 63.27 size to determine the Thrifty Food Plan amount; 63.28 (12) an amount greater than actual expenses or two percent 63.29 of the estimated market value on a county tax assessment form, 63.30 whichever is greater, as a deduction for upkeep and repair 63.31 against rental income; 63.32 (13) expenses not allowed by the Internal Revenue Code; 63.33 (14) expenses in excess of 60 percent of gross receipts for 63.34 in-home child care unless a higher amount can be documented; and 63.35 (15) expenses that are reimbursed under the child and adult 63.36 care food program as authorized under the National School Lunch 64.1 Act, United States Code, title 42. 64.2 Subd. 6. [SELF-EMPLOYMENT BUDGET PERIOD.] The 64.3 self-employment budget period begins in the month of application 64.4 or in the first month of self-employment. Gross receipts must 64.5 be budgeted in the month received. Expenses must be budgeted 64.6 against gross receipts in the month the expenses are paid, 64.7 except for paragraphs (a) to (c). 64.8 (a) The purchase cost of inventory items, including 64.9 materials which are processed or manufactured, must be deducted 64.10 as an expense at the time payment is received for the sale of 64.11 the inventory items. 64.12 (b) A 12-month rolling average based on clauses (1) to (3) 64.13 must be used to budget monthly income. 64.14 (1) For a business in operation for at least 12 months, the 64.15 county agency shall use the average monthly self-employment 64.16 income from the most current income tax report for the 12 months 64.17 before the month of application. The county agency shall 64.18 determine a new monthly average by adding in the actual 64.19 self-employment income and expenses from the previous month and 64.20 dropping the first month from the averaging period. 64.21 (2) For a business in operation for less than 12 months, 64.22 the county agency shall compute the average for the number of 64.23 months the business has been in operation to determine a monthly 64.24 average. When data are available for 12 or more months, average 64.25 monthly self-employment income is determined under clause (1). 64.26 (3) If the business undergoes a major change, the county 64.27 agency shall compute a new rolling average beginning with the 64.28 first month of the major change. For the purpose of this 64.29 clause, major change means a change that affects the nature and 64.30 scale of the business and is not merely the result of normal 64.31 business fluctuations. 64.32 (c) For seasonal self-employment, the caregiver may choose 64.33 whether to use actual income in the month of receipt and 64.34 expenses in the month incurred or the rolling average method of 64.35 computation. The choice must be made once per year at the time 64.36 of application or recertification. For the purpose of this 65.1 paragraph, seasonal means working six or less months per year. 65.2 Subd. 7. [FARM INCOME.] Farm income is the difference 65.3 between gross receipts and operating expenses. The county 65.4 agency must not allow a deduction for expenses listed in 65.5 subdivision 5, paragraph (b). Gross receipts include sales, 65.6 rents, subsidies, soil conservation payments, production derived 65.7 from livestock, and income from home-produced food. 65.8 Subd. 8. [RENTAL INCOME.] The county agency must treat 65.9 income from rental property as earned or unearned income. 65.10 Income from rental property is unearned income unless the 65.11 assistance unit spends an average of ten hours per week on 65.12 maintenance or management of the property. When the owner 65.13 spends more than ten hours per week on maintenance or repairs, 65.14 the earnings are considered self-employment earnings. An amount 65.15 must be deducted for upkeep and repairs, as specified in 65.16 subdivision 5, paragraph (b), clause (12), real estate taxes, 65.17 insurance, utilities, and interest on principal payments. When 65.18 the applicant or participant lives on the rental property, 65.19 expenses for upkeep, taxes, insurance, utilities, and interest 65.20 must be divided by the number of rooms to determine expense per 65.21 room and expenses deducted must be deducted only for the number 65.22 of rooms rented. 65.23 Subd. 9. [UNEARNED INCOME.] (a) The county agency must 65.24 apply unearned income, including housing subsidies as in 65.25 paragraph (b), to the transitional standard. When determining 65.26 the amount of unearned income, the county agency must deduct the 65.27 costs necessary to secure payments of unearned income. These 65.28 costs include legal fees, medical fees, and mandatory deductions 65.29 such as federal and state income taxes. 65.30 (b) Effective July 1, 1998, the county agency shall count 65.31 $100 of the value of public and assisted rental subsidies 65.32 provided through the Department of Housing and Urban Development 65.33 (HUD) as unearned income. The full amount of the subsidy must 65.34 be counted as unearned income when the subsidy is less than $100. 65.35 Subd. 10. [TREATMENT OF LUMP SUMS.] (a) The county agency 65.36 must treat lump-sum payments as earned or unearned income. If 66.1 the lump-sum payment is included in the category of income 66.2 identified in subdivision 9, it must be treated as unearned 66.3 income. A lump sum is counted as income in the month received 66.4 and budgeted either prospectively or retrospectively depending 66.5 on the budget cycle at the time of receipt. When an individual 66.6 receives a lump-sum payment, that lump sum must be combined with 66.7 all other earned and unearned income received in the same budget 66.8 month, and it must be applied according to paragraphs (a) to (c). 66.9 A lump sum may not be carried over into subsequent months. Any 66.10 funds that remain in the third month after the month of receipt 66.11 are counted in the asset limit. 66.12 (b) For a lump sum received by an applicant during the 66.13 first two months, prospective budgeting is used to determine the 66.14 payment and the lump sum must be combined with other earned or 66.15 unearned income received and budgeted in that prospective month. 66.16 (c) For a lump sum received by a participant after the 66.17 first two months of MFIP-S eligibility, the lump sum must be 66.18 combined with other income received in that budget month, and 66.19 the combined amount must be applied retrospectively against the 66.20 applicable payment month. 66.21 (d) When a lump sum, combined with other income under 66.22 paragraphs (b) and (c), is less than the transitional standard 66.23 for the applicable payment month, the assistance payment must be 66.24 reduced according to the amount of the countable income. When 66.25 the countable income is greater than the transitional standard 66.26 or the family wage standard, the assistance payment must be 66.27 suspended for the payment month. 66.28 Sec. 27. [256J.38] [CORRECTION OF OVERPAYMENTS AND 66.29 UNDERPAYMENTS.] 66.30 Subdivision 1. [SCOPE OF OVERPAYMENT.] When a participant 66.31 or former participant receives an overpayment due to agency, 66.32 client, or ATM error, or due to assistance received while an 66.33 appeal is pending and the participant or former participant is 66.34 determined ineligible for assistance or for less assistance than 66.35 was received, the county agency must recoup or recover the 66.36 overpayment under the conditions of this section. 67.1 Subd. 2. [NOTICE OF OVERPAYMENT.] When a county agency 67.2 discovers that a participant or former participant has received 67.3 an overpayment for one or more months, the county agency must 67.4 notify the participant or former participant of the overpayment 67.5 in writing. A notice of overpayment must specify the reason for 67.6 the overpayment, the authority for citing the overpayment, the 67.7 time period in which the overpayment occurred, the amount of the 67.8 overpayment, and the participant's or former participant's right 67.9 to appeal. No limit applies to the period in which the county 67.10 agency is required to recoup or recover an overpayment according 67.11 to subdivisions 3 and 4. 67.12 Subd. 3. [RECOVERING OVERPAYMENTS FROM FORMER 67.13 PARTICIPANTS.] A county agency must initiate efforts to recover 67.14 overpayments paid to a former participant. Adults and minor 67.15 caregivers of an assistance unit at the time an overpayment 67.16 occurs, whether receiving assistance or not, are jointly and 67.17 individually liable for repayment of the overpayment. The 67.18 county agency must request repayment from the former 67.19 participants. When an agreement for repayment is not completed 67.20 within six months of the date of discovery or when there is a 67.21 default on an agreement for repayment after six months, the 67.22 county agency must initiate recovery consistent with chapter 67.23 270A, or section 541.05. When a person has been convicted of 67.24 fraud under section 256.98, recovery must be sought regardless 67.25 of the amount of overpayment. When an overpayment is less than 67.26 $35, and is not the result of a fraud conviction under section 67.27 256.98, the county agency must not seek recovery under this 67.28 subdivision. The county agency must retain information about 67.29 all overpayments regardless of the amount. When an adult or 67.30 minor caregiver reapplies for assistance, the overpayment must 67.31 be recouped under subdivision 4. 67.32 Subd. 4. [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 67.33 participant may voluntarily repay, in part or in full, an 67.34 overpayment even if assistance is reduced under this 67.35 subdivision, until the total amount of the overpayment is 67.36 repaid. When an overpayment occurs due to fraud, the county 68.1 agency must recover ten percent of the transitional standard or 68.2 the amount of the monthly assistance payment, whichever is 68.3 less. When a nonfraud overpayment occurs, the county agency 68.4 must recover three percent of the transitional standard or the 68.5 amount of the monthly assistance payment, whichever is less. 68.6 Subd. 5. [RECOVERING AUTOMATIC TELLER MACHINE ERRORS.] For 68.7 recipients receiving benefits via electronic benefit transfer, 68.8 if the overpayment is a result of an ATM dispensing funds in 68.9 error to the recipient, the agency may recover the ATM error by 68.10 immediately withdrawing funds from the recipient's electronic 68.11 benefit transfer account, up to the amount of the error. 68.12 Subd. 6. [SCOPE OF UNDERPAYMENTS.] A county agency must 68.13 issue a corrective payment for underpayments made to a 68.14 participant or to a person who would be a participant if an 68.15 agency or client error causing the underpayment had not occurred. 68.16 The county agency must issue the corrective payment according to 68.17 subdivision 8. 68.18 Subd. 7. [IDENTIFYING THE UNDERPAYMENT.] An underpayment 68.19 may be identified by a county agency, by a participant, by a 68.20 former participant, or by a person who would be a participant 68.21 except for agency or client error. 68.22 Subd. 8. [ISSUING CORRECTIVE PAYMENTS.] A county agency 68.23 must correct an underpayment within seven calendar days after 68.24 the underpayment has been identified, by adding the corrective 68.25 payment amount to the monthly assistance payment of the 68.26 participant or by issuing a separate payment to a participant or 68.27 former participant, or by reducing an existing overpayment 68.28 balance. When an underpayment occurs in a payment month and is 68.29 not identified until the next payment month or later, the county 68.30 agency must first subtract the underpayment from any overpayment 68.31 balance before issuing the corrective payment. The county 68.32 agency must not apply an underpayment in a current payment month 68.33 against an overpayment balance. When an underpayment in the 68.34 current payment month is identified, the corrective payment must 68.35 be issued within seven calendar days after the underpayment is 68.36 identified. 69.1 Subd. 9. [APPEALS.] A participant may appeal an 69.2 underpayment, an overpayment, and a reduction in an assistance 69.3 payment made to recoup the overpayment under subdivision 4. The 69.4 participant's appeal of each issue must be timely under section 69.5 256.045. When an appeal based on the notice issued under 69.6 subdivision 2 is not timely, the fact or the amount of that 69.7 overpayment must not be considered as a part of a later appeal, 69.8 including an appeal of a reduction in an assistance payment to 69.9 recoup that overpayment. 69.10 Sec. 28. [256J.39] [PAYMENT PROVISIONS; VENDOR PAYMENTS.] 69.11 Subdivision 1. [PAYMENT POLICY.] The following policies 69.12 apply to monthly assistance payments and corrective payments: 69.13 (1) Grant payments may be issued in the form of warrants 69.14 immediately redeemable in cash, electronic benefits transfer, or 69.15 by direct deposit into the recipient's account in a financial 69.16 institution. 69.17 (2) The commissioner shall mail assistance payment checks 69.18 to the address where a caregiver lives unless the county agency 69.19 approves an alternate arrangement. 69.20 (3) The commissioner shall mail monthly assistance payment 69.21 checks within time to allow postal service delivery to occur no 69.22 later than the first day of each month. Monthly assistance 69.23 payment checks must be dated the first day of the month. The 69.24 commissioner shall issue electronic benefits transfer payments 69.25 so that caregivers have access to the payments no later than the 69.26 first of the month. 69.27 (4) The commissioner shall issue replacement checks 69.28 promptly, but no later than seven calendar days after the 69.29 provisions of sections 16A.46; 256.01, subdivision 11; and 69.30 471.415 have been met. 69.31 Subd. 2. [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 69.32 paying assistance directly to a participant may be used when: 69.33 (1) a county agency determines that a vendor payment is the 69.34 most effective way to resolve an emergency situation pertaining 69.35 to basic needs; 69.36 (2) a caregiver makes a written request to the county 70.1 agency asking that part or all of the assistance payment be 70.2 issued by protective or vendor payments for shelter and utility 70.3 service only. The caregiver may withdraw this request in 70.4 writing at any time; 70.5 (3) a caregiver has exhibited a continuing pattern of 70.6 mismanaging funds as determined by the county agency; 70.7 (4) the vendor payment is part of a sanction under section 70.8 256J.46, subdivision 2; or 70.9 (5) the vendor payment is required under section 256J.24 or 70.10 256J.43. 70.11 The director of a county agency must approve a proposal for 70.12 protective or vendor payment for money mismanagement. During 70.13 the time a protective or vendor payment is being made, the 70.14 county agency must provide services designed to alleviate the 70.15 causes of the mismanagement. 70.16 The continuing need for and method of payment must be 70.17 documented and reviewed every 12 months. The director of a 70.18 county agency must approve the continuation of protective or 70.19 vendor payments. 70.20 When it appears that the need for protective or vendor 70.21 payments will continue or is likely to continue beyond two years 70.22 because the county agency's efforts have not resulted in 70.23 sufficiently improved use of assistance on behalf of the minor 70.24 child, judicial appointment of a legal guardian or other legal 70.25 representative must be sought by the county agency. 70.26 Subd. 3. [CHOOSING PAYEES FOR PROTECTIVE OR VENDOR 70.27 PAYMENTS.] A county agency shall consult with a caregiver 70.28 regarding the selection of the form of payment, the selection of 70.29 a protective payee, and the distribution of the assistance 70.30 payment to meet the various costs incurred by the assistance 70.31 unit. When choosing a protective payee, the county agency shall 70.32 notify the caregiver of a consultation date. If the caregiver 70.33 fails to respond to the county agency's request for consultation 70.34 by the effective date on the notice, the county agency must 70.35 choose a protective payee for that payment month and subsequent 70.36 payment months until the caregiver responds to the agency's 71.1 request for consultation. The county agency must notify the 71.2 caregiver of the right to appeal the determination that a 71.3 protective or vendor payment should be made or continued and to 71.4 appeal the selection of the payee. If a county agency is not 71.5 able to find another protective payee, a county agency staff 71.6 member may serve as a protective payee. The following persons 71.7 may not serve as protective payees: a member of the county 71.8 board of commissioners; the county agency staff member 71.9 determining financial eligibility for the family; special 71.10 investigative or resource staff; the staff member handling 71.11 accounting or fiscal processes related to the participant; or a 71.12 landlord, grocer, or other vendor dealing directly with the 71.13 participant. 71.14 Subd. 4. [DISCONTINUING PROTECTIVE OR VENDOR PAYMENTS.] A 71.15 county agency shall discontinue protective or vendor payments in 71.16 two years or in the month following the county agency's failure 71.17 to grant six-month approval to a money management plan, 71.18 whichever occurs first. At least once every 12 months, a county 71.19 agency shall review the performance of a protective payee acting 71.20 under subdivision 2, clause (3), to determine whether a new 71.21 payee should be selected. When a participant complains about 71.22 the performance of a protective payee, a review shall occur 71.23 within 30 calendar days. 71.24 Sec. 29. [256J.395] [VENDOR PAYMENT OF RENT AND 71.25 UTILITIES.] 71.26 (a) Effective July 1, 1997, when a county is required to 71.27 provide assistance to a recipient in vendor form for rent and 71.28 utilities under chapter 256, 256D, 256J, or 256K, the cost of 71.29 utilities for a given family may be assumed to be: 71.30 (1) the average of the actual monthly cost of utilities for 71.31 that family for the prior 12 months at the family's current 71.32 residence, if applicable; 71.33 (2) the monthly plan amount, if any, set by the local 71.34 utilities for that family at the family's current residence; or 71.35 (3) the estimated monthly utility costs for the dwelling in 71.36 which the family currently resides. 72.1 (b) For purposes of this section, "utility" means any of 72.2 the following: municipal water and sewer service; electric, 72.3 gas, or heating fuel service; or wood, if that is the heating 72.4 source. 72.5 (c) In any instance where a vendor payment for rent is 72.6 directed to a landlord not legally entitled to the payment, the 72.7 county social services agency shall immediately institute 72.8 proceedings to collect the amount of the vendored rent payment, 72.9 which shall be considered a debt under section 270A.03, 72.10 subdivision 5. 72.11 Sec. 30. [256J.396] [SUPPORT FROM PARENTS OF MINOR 72.12 CAREGIVERS LIVING APART.] 72.13 Subdivision 1. [GENERAL PROVISIONS.] A minor caregiver and 72.14 the minor's dependent child living outside of the home of the 72.15 adult parent must meet the criteria in section 256J.14, to be 72.16 eligible for assistance in the MFIP-S program. A parent who 72.17 lives outside the home of a minor child who is an unemancipated 72.18 minor caregiver of an assistance unit is financially responsible 72.19 for that minor caregiver unless the parent is a recipient of 72.20 public assistance, SSI, MSA, medical assistance, general 72.21 assistance, or general assistance medical care, and a court 72.22 order does not otherwise provide a support obligation. 72.23 Subd. 2. [AMOUNT OF SUPPORT PAYMENT.] The amount of 72.24 support to be paid by a parent, except a parent specified in 72.25 subdivision 4, must be determined according to paragraphs (a) to 72.26 (f). 72.27 (a) A minor caregiver must provide information required by 72.28 the county agency to identify the whereabouts of the minor 72.29 caregiver's absent parent or parents. 72.30 (b) A county agency must notify an absent parent of the 72.31 parent's legal responsibility to support a minor caregiver and 72.32 shall request that the absent parent provide the following: 72.33 (1) the amount of the parent's earned and unearned income 72.34 for the previous tax year; 72.35 (2) the amount of the parent's earned and unearned income 72.36 for the current month; 73.1 (3) the number and names of dependents who are claimed or 73.2 could be claimed by the parent on federal income tax forms; 73.3 (4) the amount of annual medical bills paid by the parent; 73.4 (5) the amount of annual housing costs paid by the parent; 73.5 (6) the costs for utilities and repairs to the home which 73.6 are paid by the parent; and 73.7 (7) the amount of annual educational costs for family 73.8 members paid by the parent. 73.9 (c) When a parent of a minor caregiver does not provide the 73.10 information requested under paragraph (b), the county agency 73.11 must refer the matter to the county attorney. Assistance to the 73.12 minor caregiver must not be denied, delayed, reduced, or ended 73.13 because of the lack of cooperation of the minor caregiver's 73.14 parent. 73.15 (d) When the information requested under paragraph (b) is 73.16 received by a county agency, the county agency must compare the 73.17 parent's income against the scale set forth below using the 73.18 conditions and procedures specified in paragraph (e). 73.19 Size of Family Federal Poverty Guideline 73.20 1 $ 9,288 73.21 2 12,432 73.22 3 15,576 73.23 4 18,720 73.24 5 21,864 73.25 For each additional family member add $3,144. 73.26 (e) The parent's income is the parent's gross earned income 73.27 plus unearned income, determined by the methods in section 73.28 256J.21. To determine family size, each person claimed or who 73.29 could be claimed by a parent as a dependent on federal income 73.30 tax forms, exclusive of the minor caregiver, must be included. 73.31 A deduction from income must be allowed for the amount that 73.32 medical, educational, and housing costs together exceed 30 73.33 percent of the parent's income. When the amount of income, 73.34 after the allowable deduction, exceeds the annual income level 73.35 in paragraph (d), a parent is liable to pay one-third of the 73.36 excess for the annual support of the minor caregiver. These 74.1 payments must be paid monthly to the minor caregiver or to the 74.2 county agency on behalf of the minor caregiver. 74.3 (f) A county agency must notify the parents of the minor 74.4 caregiver that they are liable for the amount of support 74.5 determined by the county agency as specified in paragraph (e). 74.6 When the support payment is received by the minor caregiver, it 74.7 must be treated as unearned income of the assistance unit. When 74.8 the support payment is not received, or a lesser amount is 74.9 received in any payment month, the county agency must refer the 74.10 matter to the county attorney. 74.11 Subd. 3. [REVIEWS.] A county agency must review financial 74.12 responsibility every 12 months until minor caregivers reach the 74.13 age of 18 or are otherwise emancipated. When a parent reports a 74.14 change in circumstances, the county agency must review the 74.15 required amount of payment within ten calendar days. 74.16 Subd. 4. [PARENTS UNDER COURT ORDER FOR SUPPORT.] A parent 74.17 who is required under an existing court order issued under some 74.18 other authority in state or federal law to pay child support for 74.19 a minor caregiver is subject to the conditions of that order in 74.20 lieu of the requirements and contribution levels in subdivision 74.21 2. 74.22 Sec. 31. [256J.40] [FAIR HEARINGS.] 74.23 Caregivers receiving a notice of intent to sanction or a 74.24 notice of adverse action that includes a sanction, reduction in 74.25 benefits, suspension of benefits, denial of benefits, or 74.26 termination of benefits may request a fair hearing. A request 74.27 for a fair hearing must be submitted in writing to the county 74.28 agency or to the commissioner and must be mailed within 30 days 74.29 after a participant or former participant receives written 74.30 notice of the agency's action or within 90 days when a 74.31 participant or former participant shows good cause for not 74.32 submitting the request within 30 days. A former participant who 74.33 receives a notice of adverse action due to an overpayment may 74.34 appeal the adverse action according to the requirements in this 74.35 section. Issues that may be appealed are: 74.36 (1) the amount of the assistance payment; 75.1 (2) a suspension, reduction, denial, or termination of 75.2 assistance; 75.3 (3) the basis for an overpayment, the calculated amount of 75.4 an overpayment, and the level of recoupment; 75.5 (4) the eligibility for an assistance payment; and 75.6 (5) the use of protective or vendor payments under section 75.7 256J.39, subdivision 2, clauses (1) to (3). 75.8 A county agency must not reduce, suspend, or terminate 75.9 payment when an aggrieved participant requests a fair hearing 75.10 prior to the effective date of the adverse action or within ten 75.11 days of the mailing of the notice of adverse action, whichever 75.12 is later, unless the participant requests in writing not to 75.13 receive continued assistance pending a hearing decision. 75.14 Assistance issued pending a fair hearing is subject to recovery 75.15 under section 256J.38 when as a result of the fair hearing 75.16 decision the participant is determined ineligible for assistance 75.17 or the amount of the assistance received. A county agency may 75.18 increase or reduce an assistance payment while an appeal is 75.19 pending when the circumstances of the participant change and are 75.20 not related to the issue on appeal. The commissioner's order is 75.21 binding on a county agency. No additional notice is required to 75.22 enforce the commissioner's order. 75.23 A county agency shall reimburse appellants for reasonable 75.24 and necessary expenses of attendance at the hearing, such as 75.25 child care and transportation costs and for the transportation 75.26 expenses of the appellant's witnesses and representatives to and 75.27 from the hearing. Reasonable and necessary expenses do not 75.28 include legal fees. Fair hearings must be conducted at a 75.29 reasonable time and date by an impartial referee employed by the 75.30 department. The hearing may be conducted by telephone or at a 75.31 site that is readily accessible to persons with disabilities. 75.32 The appellant may introduce new or additional evidence 75.33 relevant to the issues on appeal. Recommendations of the 75.34 appeals referee and decisions of the commissioner must be based 75.35 on evidence in the hearing record and are not limited to a 75.36 review of the county agency action. 76.1 Sec. 32. [256J.42] [60-MONTH TIME LIMIT.] 76.2 Subdivision 1. [TIME LIMIT.] (a) An assistance unit in 76.3 which any adult caregiver has received 60 months of cash 76.4 assistance funded in whole or in part by the TANF block grant, 76.5 MFIP-S, AFDC, or family general assistance, funded in whole or 76.6 in part by state appropriations, is ineligible to receive MFIP-S. 76.7 Any cash assistance funded with TANF dollars, or MFIP-S 76.8 assistance funded in whole or in part by state appropriations, 76.9 that was received by the unit on or after the date TANF was 76.10 implemented, including any assistance received in states of 76.11 prior residence, counts toward the 60-month limitation. The 76.12 60-month limit applies to a minor who is the head of a household 76.13 or who is married to the head of a household. The 60-month time 76.14 period does not need to be consecutive months for this provision 76.15 to apply. 76.16 (b) Months before July 1998 in which individuals receive 76.17 assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R 76.18 comparison group family under sections 256.031 to 256.0361 or 76.19 sections 256.047 to 256.048 are not included in the 60-month 76.20 time limit. 76.21 Subd. 2. [ASSISTANCE FROM ANOTHER STATE.] An individual 76.22 whose needs have been otherwise provided for in another state, 76.23 in whole or in part by the TANF block grant during a month, is 76.24 ineligible to receive MFIP-S for the month. 76.25 Subd. 3. [ADULTS LIVING ON AN INDIAN RESERVATION.] In 76.26 determining the number of months for which an adult has received 76.27 assistance under MFIP-S, the county agency must disregard any 76.28 month during which the adult lived on an Indian reservation if, 76.29 during the month: 76.30 (1) at least 1,000 individuals were living on the 76.31 reservation; and 76.32 (2) at least 50 percent of the adults living on the 76.33 reservation were unemployed. 76.34 Subd. 4. [VICTIMS OF DOMESTIC VIOLENCE.] Any cash 76.35 assistance received by an assistance unit in a month when a 76.36 caregiver is complying with a safety plan under the MFIP-S 77.1 employment and training component does not count toward the 77.2 60-month limitation on assistance. 77.3 Subd. 5. [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 77.4 assistance received by an assistance unit does not count toward 77.5 the 60-month limit on assistance during a month in which the 77.6 parental caregiver is in the category in section 256J.56, clause 77.7 (1). The exemption applies for the period of time the caregiver 77.8 belongs to one of the categories specified in this subdivision. 77.9 (b) Any cash assistance received by a caregiver who is 77.10 complying with the requirements of sections 256J.14 and 256J.54, 77.11 if applicable, does not count towards the 60-month limit on 77.12 assistance. 77.13 Sec. 33. [256J.43] [INTERSTATE PAYMENT STANDARDS.] 77.14 (a) Effective July 1, 1997, the amount of assistance paid 77.15 to an eligible family in which all members have resided in this 77.16 state for fewer than 12 calendar months immediately preceding 77.17 the date of application shall be the lesser of either the 77.18 payment standard that would have been received by the family 77.19 from the state of immediate prior residence, or the amount 77.20 calculated in accordance with AFDC or MFIP-S standards. The 77.21 lesser payment must continue until the family meets the 12-month 77.22 requirement. Payment must be calculated by applying this 77.23 state's budgeting policies, and the unit's net income must be 77.24 deducted from the payment standard in the other state or in this 77.25 state, whichever is lower. Payment shall be made in vendor form 77.26 for rent and utilities, up to the limit of the grant amount, and 77.27 residual amounts, if any, shall be paid directly to the 77.28 assistance unit. 77.29 (b) During the first 12 months a family resides in this 77.30 state, the number of months that a family is eligible to receive 77.31 AFDC or MFIP-S benefits is limited to the number of months the 77.32 family would have been eligible to receive similar benefits in 77.33 the state of immediate prior residence. 77.34 (c) This policy applies whether or not the family received 77.35 similar benefits while residing in the state of previous 77.36 residence. 78.1 (d) When a family moves to this state from another state 78.2 where the family has exhausted that state's time limit for 78.3 receiving benefits under that state's TANF program, the family 78.4 will not be eligible to receive any AFDC or MFIP-S benefits in 78.5 this state for 12 months from the date the family moves here. 78.6 (e) For the purposes of this section, "state of immediate 78.7 prior residence" means: 78.8 (1) the state in which the applicant declares the applicant 78.9 spent the most time in the 30 days prior to moving to this 78.10 state; or 78.11 (2) the state in which an applicant who is a migrant worker 78.12 maintains a home. 78.13 (f) The commissioner shall annually verify and update all 78.14 other states' payment standards as they are to be in effect in 78.15 July of each year. 78.16 (g) Applicants must provide verification of their state of 78.17 immediate prior residence, in the form of tax statements, a 78.18 driver's license, automobile registration, rent receipts, or 78.19 other forms of verification approved by the commissioner. 78.20 (h) Migrant workers, as defined in section 256J.08, and 78.21 their immediate families are exempt from this section, provided 78.22 the migrant worker provides verification that the migrant family 78.23 worked in this state within the last 12 months and earned at 78.24 least $1,000 in gross wages during the time the migrant worker 78.25 worked in this state. 78.26 Sec. 34. [256J.44] [INITIAL SCREENING OF MFIP-S 78.27 APPLICANT.] 78.28 Subdivision 1. [SCREENING.] The county agency, or at 78.29 county option, the county's employment and training service 78.30 provider as defined in section 256J.49, must screen each 78.31 applicant to determine immediate needs and to determine if the 78.32 applicant may be eligible for: 78.33 (1) another program that is not partially funded through 78.34 the federal temporary assistance to needy families block grant 78.35 under title I of Public Law Number 104-193, including the 78.36 expedited issuance of food stamps under section 256J.28, 79.1 subdivision 1. If the applicant may be eligible for another 79.2 program, a county caseworker must provide the appropriate 79.3 referral to the program; 79.4 (2) the diversionary assistance program under section 79.5 256J.47; or 79.6 (3) the emergency assistance program under section 256J.48. 79.7 The applicant is required to attend the screening. If the 79.8 applicant is not diverted from applying for MFIP-S under clauses 79.9 (1) to (3), and if the applicant meets the MFIP-S eligibility 79.10 requirements, then an orientation under section 256J.45 and an 79.11 initial assessment under section 256J.52 must be completed; or, 79.12 in the case of caregivers who are under the age of 20, a plan 79.13 under section 256J.54 must be completed. 79.14 Subd. 2. [SUPPORT SERVICES TO ATTEND SCREENING AND 79.15 ORIENTATION.] Upon a caregiver's request, the county agency must 79.16 arrange for transportation and child care or reimburse 79.17 caregivers for transportation and child care expenses necessary 79.18 to enable caregivers to attend the initial screening under this 79.19 section and orientation under section 256J.51 if scheduled on a 79.20 day other than when the caregiver makes application for 79.21 assistance. 79.22 Sec. 35. [256J.45] [ORIENTATION.] 79.23 Subdivision 1. [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 79.24 county agency must provide each MFIP-S caregiver with a 79.25 face-to-face orientation. The caregiver must attend the 79.26 orientation. The county agency must inform the caregiver that 79.27 failure to attend the orientation is considered a first 79.28 occurrence of noncompliance with program requirements, and will 79.29 result in the imposition of a sanction under section 256J.46. 79.30 Subd. 2. [GENERAL INFORMATION.] The MFIP-S orientation 79.31 must consist of a presentation that informs caregivers of: 79.32 (1) the necessity to obtain immediate employment; 79.33 (2) the work incentives under MFIP-S; 79.34 (3) the requirement to comply with the employment plan and 79.35 other requirements of the employment and training services 79.36 component of MFIP-S; 80.1 (4) the consequences for failing to comply with the 80.2 employment plan and other program requirements; 80.3 (5) the rights, responsibilities, and obligations of 80.4 participants; 80.5 (6) the types and locations of child care services 80.6 available through the county agency; 80.7 (7) the availability and the benefits of the early 80.8 childhood health and developmental screening under sections 80.9 123.701 to 123.74; 80.10 (8) the caregiver's eligibility for transition year child 80.11 care assistance under section 119B.05; 80.12 (9) the caregiver's eligibility for extended medical 80.13 assistance when the caregiver loses eligibility for MFIP-S due 80.14 to increased earnings or increased child or spousal support; and 80.15 (10) the caregiver's option to choose an employment and 80.16 training provider and information about each provider, including 80.17 but not limited to, services offered, program components, job 80.18 placement rates, job placement wages, and job retention rates. 80.19 Sec. 36. [256J.46] [SANCTIONS.] 80.20 Subdivision 1. [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 80.21 WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 80.22 good cause to comply with the requirements of this chapter, and 80.23 who is not subject to sanction under subdivision 2, shall be 80.24 subject to a sanction as provided in this subdivision. A 80.25 sanction under this subdivision becomes effective ten days after 80.26 the required notice is given. For purposes of this subdivision, 80.27 each month that a participant fails to comply with a requirement 80.28 of this chapter shall be considered a separate occurrence of 80.29 noncompliance. A participant who has had one or more sanctions 80.30 imposed must remain in compliance with the provisions of this 80.31 chapter for six months in order for a subsequent occurrence of 80.32 noncompliance to be considered a first occurrence. 80.33 (b) Sanctions for noncompliance shall be imposed as follows: 80.34 (1) For the first occurrence of noncompliance, the 80.35 participant's grant shall be reduced by ten percent of the 80.36 applicable transitional standard. The reduction in the grant 81.1 amount must be in effect for a minimum of one month, and shall 81.2 be removed in the month following the month that the participant 81.3 returns to compliance. 81.4 (2) For a second or subsequent occurrence of noncompliance, 81.5 the participant's rent shall be vendor paid up to the amount of 81.6 the MFIP-S grant for which the participant's assistance unit is 81.7 eligible. At county option, the participant's utilities may 81.8 also be vendor paid up to the amount of the MFIP-S grant 81.9 remaining after vendor payment of the participant's rent. The 81.10 vendor payment of rent and, if in effect, utilities, must be in 81.11 effect for six months from the date that a sanction is imposed 81.12 under this clause. The residual amount of the grant after 81.13 vendor payment, if any, must be reduced by an amount equal to 30 81.14 percent of the applicable transitional standard before the 81.15 residual is paid to the participant. The reduction in the grant 81.16 amount must be in effect for a minimum of one month, and shall 81.17 be removed in the month following the month that the participant 81.18 returns to compliance. The vendor payment of rent and, if 81.19 applicable, utilities, shall be removed six months after the 81.20 month in which the participant returns to compliance. 81.21 (c) No later than during the second month that a sanction 81.22 under paragraph (b), clause (2) is in effect, the participant's 81.23 case file must be reviewed to determine if: 81.24 (i) the continued noncompliance can be explained and 81.25 mitigated by providing a needed preemployment activity, as 81.26 defined in section 256J.49, subdivision 13, clause 16; 81.27 (ii) the participant qualifies for a good cause exception 81.28 under 256J.57; or 81.29 (iii) the participant qualifies for an exemption under 81.30 256J.56. 81.31 If the lack of an identified activity can explain the 81.32 noncompliance, the county must work with the participant to 81.33 provide the identified activity, and the county must restore the 81.34 participant's grant amount to the full amount for which the 81.35 assistance unit is eligible. The grant must be restored 81.36 retroactively to the first day of the month in which the 82.1 participant was found to lack preemployment activities, or to 82.2 qualify for an exemption or good cause exception. 82.3 If the participant is found to qualify for a good cause 82.4 exception or an exemption, the county must restore the 82.5 participant's grant to the full amount for which the assistance 82.6 unit is eligible. If the participant's grant is restored under 82.7 this paragraph, the vendor payment of rent and if applicable, 82.8 utilities, shall be removed six months after the month in which 82.9 the sanction was imposed and the county must consider a 82.10 subsequent occurrence of noncompliance to be a first occurrence. 82.11 Subd. 1a. [TRANSITIONAL RULE; SANCTIONS FOR AFDC, FAMILY 82.12 GA, STRIDE, ACCESS, MFIP, OR MFIP-R RECIPIENTS.] For purposes of 82.13 determining a sanction under subdivision 1, for the first 82.14 occurrence of noncompliance with a provision of this chapter or 82.15 with section 256.741, if enacted, a recipient of assistance 82.16 under AFDC, family general assistance, STRIDE, ACCESS, MFIP, or 82.17 MFIP-R who was under a sanction in the month immediately 82.18 preceding the receipt of assistance under MFIP-S shall be 82.19 subject to sanction as provided in subdivision 1, paragraph (b), 82.20 clause (1). The reduction in grant amount must be in effect for 82.21 a minimum of one month. For a second or subsequent occurrence 82.22 of noncompliance, the sanction shall be as provided in 82.23 subdivision 1, paragraph (b), clause (2). 82.24 Subd. 2. [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 82.25 REQUIREMENTS.] The grant of an MFIP-S caregiver who refuses to 82.26 cooperate, as determined by the child support enforcement 82.27 agency, with support requirements under section 256.741, if 82.28 enacted, shall be subject to sanction as specified in this 82.29 subdivision. The assistance unit's grant must be reduced by 25 82.30 percent of the applicable transitional standard. The residual 82.31 amount of the grant, if any, must be paid to the caregiver. A 82.32 sanction under this subdivision becomes effective ten days after 82.33 the required notice is given. The sanction must be in effect 82.34 for a minimum of one month, and shall be removed only when the 82.35 caregiver cooperates with the support requirements. 82.36 Subd. 2a. [DUAL SANCTIONS.] (a) Notwithstanding the 83.1 provisions of subdivisions 1 and 2, for a participant subject to 83.2 a sanction for refusal to comply with child support requirements 83.3 under subdivision 2 and subject to a concurrent sanction for 83.4 refusal to cooperate with other program requirements under 83.5 subdivision 1, sanctions shall be imposed in the manner 83.6 prescribed in this subdivision. 83.7 A participant who has had one or more sanctions imposed 83.8 under this subdivision must remain in compliance with the 83.9 provisions of this chapter for six months in order for a 83.10 subsequent occurrence of noncompliance to be considered a first 83.11 occurrence. Any vendor payment of rent or utilities under this 83.12 subdivision must remain in effect for six months after the month 83.13 in which the participant is no longer subject to sanction under 83.14 subdivision 1. 83.15 (b) If the participant was subject to sanction for: 83.16 (i) noncompliance under subdivision 1 before being subject 83.17 to sanction for noncooperation under subdivision 2; or 83.18 (ii) noncooperation under subdivision 2 before being 83.19 subject to sanction for noncompliance under subdivision 1; 83.20 the participant shall be sanctioned as provided in subdivision 83.21 1, paragraph (b), clause (2), and the requirement that the 83.22 county conduct a review as specified in subdivision 1, paragraph 83.23 (c), remains in effect. 83.24 (c) A participant who first becomes subject to sanction 83.25 under both subdivisions 1 and 2 in the same month is subject to 83.26 sanction as follows: 83.27 (i) in the first month of noncompliance and noncooperation, 83.28 the participant's grant must be reduced by 25 percent of the 83.29 applicable transitional standard, with any residual amount paid 83.30 to the participant; 83.31 (ii) in the second and subsequent months of noncompliance 83.32 and noncooperation, the participant shall be sanctioned as 83.33 provided in subdivision 1, paragraph (b), clause (2). 83.34 The requirement that the county conduct a review as 83.35 specified in subdivision 1, paragraph (c), remains in effect. 83.36 (d) A participant remains subject to sanction under 84.1 subdivision 2 if the participant: 84.2 (i) returns to compliance and is no longer subject to 84.3 sanction under subdivision 1; or 84.4 (ii) has the sanction under subdivision 1, paragraph (b), 84.5 removed upon completion of the review under subdivision 1, 84.6 paragraph (c). 84.7 A participant remains subject to sanction under subdivision 84.8 1, paragraph (b), if the participant cooperates and is no longer 84.9 subject to sanction under subdivision 2. 84.10 Sec. 37. [256J.47] [DIVERSIONARY ASSISTANCE PROGRAM.] 84.11 Subdivision 1. [ELIGIBILITY.] A family is eligible to 84.12 receive diversionary assistance once every 36 months if: 84.13 (1) a family member has resided in this state for at least 84.14 30 days; 84.15 (2) the caregiver provides verification that the caregiver 84.16 has either experienced an unexpected occurrence that makes it 84.17 impossible to retain or obtain employment or the caregiver has a 84.18 temporary loss of income, which is not due to refusing to accept 84.19 or terminating suitable employment as defined in section 84.20 256J.49, without good cause under section 256J.57, resulting in 84.21 an emergency; 84.22 (3) the caregiver is at risk of MFIP-S eligibility if 84.23 diversionary assistance is not provided and household income is 84.24 below 140 percent of the federal poverty guidelines; and 84.25 (4) the diversionary assistance will resolve the emergency 84.26 and divert the family from applying for MFIP-S. 84.27 For purposes of this section, diversionary assistance means 84.28 a one-time lump-sum payment to an individual or third-party 84.29 vendor to prevent long-term receipt of public assistance. 84.30 Subd. 2. [COUNTY AGENCY DUTIES.] County agencies shall: 84.31 (1) thoroughly explain to the caregiver the consequences of 84.32 receiving diversionary assistance, specifically the resulting 84.33 period of ineligibility under subdivision 4 for other assistance 84.34 programs; and 84.35 (2) determine eligibility for diversionary assistance 84.36 within five working days of the receipt of the verification that 85.1 substantiates eligibility or ineligibility. Verification means 85.2 client declaration and the best determination of the county 85.3 agency. 85.4 Subd. 3. [MAXIMUM AMOUNT OF ASSISTANCE.] The maximum 85.5 amount of diversionary assistance that may be provided to a 85.6 family is equal to the amount of the MFIP-S transitional 85.7 standard for the same family size and composition for four 85.8 months. The assistance provided under this program must be 85.9 based on the immediate needs of the family. Counties must 85.10 strive to provide the most cost-effective solution to the 85.11 one-time emergency. Diversionary assistance is not cost 85.12 effective if the family's anticipated income added to the 85.13 diversion payment will not be sufficient to cover the family's 85.14 immediate needs for the period of ineligibility under 85.15 subdivision 4, beginning with the month of application, or 85.16 another emergency can reasonably be anticipated within the 85.17 period of ineligibility. 85.18 Subd. 4. [INELIGIBILITY FOR MFIP-S; EMERGENCY ASSISTANCE; 85.19 AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of diversionary 85.20 assistance, the family is ineligible for MFIP-S, emergency 85.21 assistance, and emergency general assistance for a period of 85.22 time. To determine the period of ineligibility, the county 85.23 shall use the following formula: regardless of household 85.24 changes, the county agency must calculate the number of days of 85.25 ineligibility by dividing the diversionary assistance issued by 85.26 the transitional standard a family of the same size and 85.27 composition would have received under MFIP-S, multiplied by 30, 85.28 truncating the result. The ineligibility period begins the date 85.29 the diversionary assistance is issued. 85.30 Subd. 5. [DIVERSIONARY ASSISTANCE GRANT; FUNDING] The 85.31 commissioner shall distribute diversionary assistance grants to 85.32 counties. The commissioner may use federal block grant funding 85.33 or state funding for the grants. 85.34 Sec. 38. [256J.48] [EMERGENCY ASSISTANCE (EA).] 85.35 Subdivision 1. [EMERGENCY FINANCIAL ASSISTANCE.] County 85.36 human service agencies shall grant emergency financial 86.1 assistance to any needy pregnant woman or needy family with a 86.2 child under the age of 21 who is or was within six months prior 86.3 to application living with an eligible caregiver relative 86.4 specified in section 256J.08. 86.5 Except for ongoing special diets, emergency assistance is 86.6 available to a family during one 30-day period in a consecutive 86.7 12-month period. A county shall issue assistance for needs that 86.8 accrue before that 30-day period only when it is necessary to 86.9 resolve emergencies arising or continuing during the 30-day 86.10 period of eligibility. When emergency needs continue, a county 86.11 may issue assistance for up to 30 days beyond the initial 30-day 86.12 period of eligibility, but only when assistance is authorized 86.13 during the initial period. 86.14 Subd. 2. [ELIGIBILITY.] Notwithstanding other eligibility 86.15 provisions of this chapter, any family without resources 86.16 immediately available to meet emergency needs identified in 86.17 subdivision 3 shall be eligible for an emergency grant under the 86.18 following conditions: 86.19 (1) a family member has resided in this state for at least 86.20 30 days; 86.21 (2) the family is without resources immediately available 86.22 to meet emergency needs; 86.23 (3) assistance is necessary to avoid destitution or provide 86.24 emergency shelter arrangements; and 86.25 (4) the family's destitution or need for shelter or 86.26 utilities did not arise because the child or relative caregiver 86.27 refused without good cause under section 256J.57 to accept 86.28 employment or training for employment in this state or another 86.29 state. 86.30 Subd. 3. [EMERGENCY NEEDS.] Emergency needs are limited to 86.31 the following: 86.32 (a) [RENT.] A county agency may deny assistance to prevent 86.33 eviction from rented or leased shelter of an otherwise eligible 86.34 applicant when the county agency determines that an applicant's 86.35 anticipated income will not cover continued payment for shelter, 86.36 subject to conditions in clauses (1) to (3): 87.1 (1) a county agency must not deny assistance when an 87.2 applicant can document that the applicant is unable to locate 87.3 habitable shelter, unless the county agency can document that 87.4 one or more habitable shelters are available in the community 87.5 that will result in at least a 20 percent reduction in monthly 87.6 expense for shelter and that this shelter will be cost-effective 87.7 for the applicant; 87.8 (2) when no alternative shelter can be identified by either 87.9 the applicant or the county agency, the county agency shall not 87.10 deny assistance because anticipated income will not cover rental 87.11 obligation; and 87.12 (3) when cost-effective alternative shelter is identified, 87.13 the county agency shall issue assistance for moving expenses as 87.14 provided in paragraph (d). 87.15 (b) [DEFINITIONS.] For purposes of paragraph (a), the 87.16 following definitions apply (1) "metropolitan statistical area" 87.17 is as defined by the U.S. Census Bureau; (2) "alternative 87.18 shelter" includes any shelter that is located within the 87.19 metropolitan statistical area containing the county and for 87.20 which the applicant is eligible, provided the applicant does not 87.21 have to travel more than 20 miles to reach the shelter and has 87.22 access to transportation to the shelter. Clause (2) does not 87.23 apply to counties in the Minneapolis-St. Paul metropolitan 87.24 statistical area. 87.25 (c) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 87.26 agency shall issue assistance for mortgage or contract for deed 87.27 arrearages on behalf of an otherwise eligible applicant 87.28 according to clauses (1) to (4): 87.29 (1) assistance for arrearages must be issued only when a 87.30 home is owned, occupied, and maintained by the applicant; 87.31 (2) assistance for arrearages must be issued only when no 87.32 subsequent foreclosure action is expected within the 12 months 87.33 following the issuance; 87.34 (3) assistance for arrearages must be issued only when an 87.35 applicant has been refused refinancing through a bank or other 87.36 lending institution and the amount payable, when combined with 88.1 any payments made by the applicant, will be accepted by the 88.2 creditor as full payment of the arrearage; 88.3 (4) costs paid by a family which are counted toward the 88.4 payment requirements in this clause are: principle and interest 88.5 payments on mortgages or contracts for deed, balloon payments, 88.6 homeowner's insurance payments, manufactured home lot rental 88.7 payments, and tax or special assessment payments related to the 88.8 homestead. Costs which are not counted include closing costs 88.9 related to the sale or purchase of real property. 88.10 To be eligible for assistance for costs specified in clause 88.11 (4) which are outstanding at the time of foreclosure, an 88.12 applicant must have paid at least 40 percent of the family's 88.13 gross income toward these costs in the month of application and 88.14 the 11-month period immediately preceding the month of 88.15 application. 88.16 When an applicant is eligible under clause (4), a county 88.17 agency shall issue assistance up to a maximum of four times the 88.18 MFIP-S transitional standard for a comparable assistance unit. 88.19 (d) [DAMAGE OR UTILITY DEPOSITS.] A county agency shall 88.20 issue assistance for damage or utility deposits when necessary 88.21 to alleviate the emergency. The county may require that 88.22 assistance paid in the form of a damage deposit or a utility 88.23 deposit, less any amount retained by the landlord to remedy a 88.24 tenant's default in payment of rent or other funds due to the 88.25 landlord under a rental agreement, or to restore the premises to 88.26 the condition at the commencement of the tenancy, ordinary wear 88.27 and tear excepted, be returned to the county when the individual 88.28 vacates the premises or be paid to the recipient's new landlord 88.29 as a vendor payment. The vendor payment of returned funds shall 88.30 not be considered a new use of emergency assistance. 88.31 (e) [MOVING EXPENSES.] A county agency shall issue 88.32 assistance for expenses incurred when a family must move to a 88.33 different shelter according to clauses (1) to (4): 88.34 (1) moving expenses include the cost to transport personal 88.35 property belonging to a family, the cost for utility connection, 88.36 and the cost for securing different shelter; 89.1 (2) moving expenses must be paid only when the county 89.2 agency determines that a move is cost-effective; 89.3 (3) moving expenses must be paid at the request of an 89.4 applicant, but only when destitution or threatened destitution 89.5 exists; and 89.6 (4) moving expenses must be paid when a county agency 89.7 denies assistance to prevent an eviction because the county 89.8 agency has determined that an applicant's anticipated income 89.9 will not cover continued shelter obligation in paragraph (a). 89.10 (f) [HOME REPAIRS.] A county agency shall pay for repairs 89.11 to the roof, foundation, wiring, heating system, chimney, and 89.12 water and sewer system of a home that is owned and lived in by 89.13 an applicant. 89.14 The applicant shall document, and the county agency shall 89.15 verify the need for and method of repair. 89.16 The payment must be cost-effective in relation to the 89.17 overall condition of the home and in relation to the cost and 89.18 availability of alternative housing. 89.19 (g) [UTILITY COSTS.] Assistance for utility costs must be 89.20 made when an otherwise eligible family has had a termination or 89.21 is threatened with a termination of municipal water and sewer 89.22 service, electric, gas or heating fuel service, or lacks wood 89.23 when that is the heating source, subject to the conditions in 89.24 clauses (1) and (2): 89.25 (1) a county agency must not issue assistance unless the 89.26 county agency receives confirmation from the utility provider 89.27 that assistance combined with payment by the applicant will 89.28 continue or restore the utility; and 89.29 (2) a county agency shall not issue assistance for utility 89.30 costs unless a family paid at least eight percent of the 89.31 family's gross income toward utility costs due during the 89.32 preceding 12 months. 89.33 Clauses (1) and (2) must not be construed to prevent the 89.34 issuance of assistance when a county agency must take immediate 89.35 and temporary action necessary to protect the life or health of 89.36 a child. 90.1 (h) [SPECIAL DIETS.] A county shall pay for special diets 90.2 or dietary items. The need for special diets or dietary items 90.3 must be prescribed by a licensed physician. Costs for special 90.4 diets shall be determined as percentages of the allotment for a 90.5 one-person household under the Thrifty Food Plan as defined by 90.6 the United States Department of Agriculture. The types of diets 90.7 and the percentages of the Thrifty Food Plan that are covered 90.8 are as follows: 90.9 (1) high protein diet, at least 80 grams daily, 25 percent 90.10 of Thrifty Food Plan; 90.11 (2) controlled protein diet, 40 to 60 grams and requires 90.12 special products, 100 percent of Thrifty Food Plan; 90.13 (3) controlled protein diet, less than 40 grams and 90.14 requires special products, 125 percent of Thrifty Food Plan; 90.15 (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 90.16 (5) high residue diet, 20 percent of Thrifty Food Plan; 90.17 (6) pregnancy and lactation diet, 35 percent of Thrifty 90.18 Food Plan; 90.19 (7) gluten-free diet, 25 percent of Thrifty Food Plan; 90.20 (8) lactose-free diet, 25 percent of Thrifty Food Plan; 90.21 (9) antidumping diet, 15 percent of Thrifty Food Plan; 90.22 (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 90.23 (11) ketogenic diet, 25 percent of Thrifty Food Plan. 90.24 Subd. 4. [VENDOR PAYMENTS FOR SHELTER OR UTILITY 90.25 COSTS.] An ongoing MFIP-S grant may, at county board option, be 90.26 in the form of vendor payments if application for emergency 90.27 assistance is for shelter or utility costs. 90.28 Sec. 39. [256J.49] [EMPLOYMENT AND TRAINING SERVICES; 90.29 DEFINITIONS.] 90.30 Subdivision 1. [SCOPE.] The terms used in sections 256J.50 90.31 to 256J.72 have the meanings given them in this section. 90.32 Subd. 2. [DOMESTIC VIOLENCE.] "Domestic violence" means: 90.33 (1) physical acts that result, or threaten to result in, 90.34 physical injury to an individual; 90.35 (2) sexual abuse; 90.36 (3) sexual activity involving a minor child; 91.1 (4) being forced as the caregiver of a minor child to 91.2 engage in nonconsensual sexual acts or activities; 91.3 (5) threats of, or attempts at, physical or sexual abuse; 91.4 (6) mental abuse; or 91.5 (7) neglect or deprivation of medical care. 91.6 Subd. 3. [EMPLOYMENT AND TRAINING SERVICES.] "Employment 91.7 and training services" means programs, activities and services 91.8 that are designed to assist participants in obtaining and 91.9 retaining employment. 91.10 Subd. 4. [EMPLOYMENT AND TRAINING SERVICE 91.11 PROVIDER.] "Employment and training service provider" means: 91.12 (1) a public, private, or nonprofit employment and training 91.13 agency certified by the commissioner of economic security under 91.14 sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 91.15 is approved under section 256J.51 and is included in the county 91.16 plan submitted under section 256J.50, subdivision 7; 91.17 (2) a public, private, or nonprofit agency that is not 91.18 certified by the commissioner under clause (1), but with which a 91.19 county has contracted to provide employment and training 91.20 services and which is included in the county's plan submitted 91.21 under section 256J.50, subdivision 7; or 91.22 (3) a county agency, if the county has opted to provide 91.23 employment and training services and the county has indicated 91.24 that fact in the plan submitted under section 256J.50, 91.25 subdivision 7. 91.26 Notwithstanding section 268.871, an employment and training 91.27 services provider meeting this definition may deliver employment 91.28 and training services under this chapter. 91.29 Subd. 5. [EMPLOYMENT PLAN.] "Employment plan" means a plan 91.30 developed by the job counselor and the participant which 91.31 identifies the participant's most direct path to unsubsidized 91.32 employment, lists the specific steps that the caregiver will 91.33 take on that path, and includes a timetable for the completion 91.34 of each step. 91.35 Subd. 6. [FEDERAL PARTICIPATION STANDARDS.] "Federal 91.36 participation standards" means the work participation standards 92.1 as specified in title I of Public Law No. 104-193, the Personal 92.2 Responsibility and Work Opportunity Reconciliation Act of 1996. 92.3 Subd. 7. [INTENSIVE ENGLISH AS A SECOND LANGUAGE 92.4 PROGRAM.] "Intensive English as a second language program" means 92.5 an English as a second language program that offers at least 20 92.6 hours of class per week. 92.7 Subd. 8. [JOB COUNSELOR.] "Job counselor" means a staff 92.8 person employed by or under contract with the employment and 92.9 training services provider who delivers services as specified in 92.10 sections 256J.50 to 256J.55. 92.11 Subd. 9. [PARTICIPANT.] "Participant" means a recipient of 92.12 MFIP-S assistance who participates or is required to participate 92.13 in employment and training services. 92.14 Subd. 10. [PROVIDER.] "Provider" means an employment and 92.15 training service provider. 92.16 Subd. 11. [SAFETY PLAN.] "Safety plan" means a plan 92.17 developed by a victim of domestic violence or a person 92.18 continuing to be at risk of domestic violence with the 92.19 assistance of a public agency or a private nonprofit agency, 92.20 including agencies that receive designation by the department of 92.21 corrections to provide emergency shelter services or support 92.22 services under section 611A.32. A safety plan shall not include 92.23 a provision that automatically requires a domestic violence 92.24 victim to seek an order of protection, or to attend counseling, 92.25 as part of the safety plan. 92.26 Subd. 12. [SUITABLE EMPLOYMENT.] "Suitable employment" 92.27 means employment that: 92.28 (1) is within the participant's physical and mental 92.29 abilities; 92.30 (2) pays hourly gross wages of not less than the applicable 92.31 state or federal minimum wage; 92.32 (3) meets health and safety standards set by federal, state 92.33 and county agencies; and 92.34 (4) complies with federal, state, and local 92.35 antidiscrimination laws. 92.36 Subd. 13. [WORK ACTIVITY.] "Work activity" means any 93.1 activity in a participant's approved employment plan that is 93.2 tied to the participant's employment goal . For purposes of the 93.3 MFIP-S program, any activity that is included in a participant's 93.4 approved employment plan meets the definition of work activity 93.5 as counted under the federal participation standards. Work 93.6 activity includes, but is not limited to: 93.7 (1) unsubsidized employment; 93.8 (2) subsidized private sector or public sector employment, 93.9 including grant diversion as specified in section 256J.69; 93.10 (3) work experience, including CWEP as specified in section 93.11 256J.67, and including work associated with the refurbishing of 93.12 publicly assisted housing if sufficient private sector 93.13 employment is not available; 93.14 (4) on-the-job training as specified in section 256J.66; 93.15 (5) job search, either supervised or unsupervised; 93.16 (6) job readiness assistance; 93.17 (7) job clubs, including job search workshops; 93.18 (8) job placement; 93.19 (9) job development; 93.20 (10) job-related counseling; 93.21 (11) job coaching; 93.22 (12) job retention services; 93.23 (13) job-specific training or education ; 93.24 (14) job skills training directly related to employment; 93.25 (15) the self-employment investment demonstration (SEID), 93.26 as specified in section 256J.65; 93.27 (16) preemployment activities, based on availability and 93.28 resources, such as volunteer work, literacy programs and related 93.29 activities, citizenship and English as a second language 93.30 classes, or participation in dislocated worker services, 93.31 chemical dependency treatment, mental health services, peer 93.32 group networks, displaced homemaker programs, strength-based 93.33 resiliency training, parenting education, or other programs 93.34 designed to help families reach their employment goals and 93.35 enhance their ability to care for their children; 93.36 (17) community service programs; 94.1 (18) vocational educational training or educational 94.2 programs that can reasonably be expected to lead to employment, 94.3 as limited by the provisions of section 256J.53; 94.4 (19) apprenticeships; 94.5 (20) satisfactory attendance in general educational 94.6 development diploma classes or an adult diploma program; 94.7 (21) satisfactory attendance at secondary school, if the 94.8 participant has not received a high school diploma; 94.9 (22) adult basic education classes; 94.10 (23) internships; 94.11 (24) bilingual employment and training services; 94.12 (25) providing child care services to a participant who is 94.13 working in a community service program; and 94.14 (26) activities included in a safety plan that is developed 94.15 under section 256J.52, subdivision 6. 94.16 Sec. 40. [256J.50] [COUNTY DUTIES.] 94.17 Subdivision 1. [EMPLOYMENT AND TRAINING SERVICES COMPONENT 94.18 OF MFIP-S.] (a) By January 1, 1998, each county must develop and 94.19 implement an employment and training services component of 94.20 MFIP-S which is designed to put participants on the most direct 94.21 path to unsubsidized employment. Participation in these 94.22 services is mandatory for all MFIP-S caregivers, unless the 94.23 caregiver is exempt under section 256J.56. 94.24 (b) A county may provide employment and training services 94.25 to MFIP-S caregivers who are exempt from the employment and 94.26 training services component but volunteer for the services. 94.27 Subd. 2. [PILOT PROGRAMS.] In counties selected for the 94.28 work first or work focused pilot programs, first-time applicants 94.29 for assistance must meet the requirements of those programs in 94.30 place of the requirements of the MFIP-S program. A county may, 94.31 at its option, discontinue a work first or work focused pilot 94.32 program. 94.33 Subd. 3. [TRANSITIONAL RULE; MFIP OR MFIP-R 94.34 PARTICIPANT.] A caregiver who was enrolled in MFIP or MFIP-R on 94.35 the date the county implements the employment and training 94.36 services component of MFIP-S and was making satisfactory 95.1 progress toward the objectives specified in the caregiver's 95.2 employment plan, may continue with the existing employment plan 95.3 for up to two years with the approval of a job counselor. The 95.4 job counselor may require changes to the plan in order to be 95.5 consistent with this two-year time limit. 95.6 Subd. 3a. [TRANSITIONAL RULE; STRIDE, ACCESS.] (a) A 95.7 county agency that is not a participant in the MFIP or MFIP-R 95.8 field trials under sections 256.031 to 256.0361 shall not enroll 95.9 a recipient into project STRIDE or ACCESS after the date that 95.10 MFIP-S is implemented in the county. 95.11 (b) A caregiver who: 95.12 (i) was enrolled in project STRIDE or ACCESS continuously 95.13 since March 1, 1997; 95.14 (ii) is not a part of an MFIP or MFIP-R comparison group; 95.15 and 95.16 (iii) who is making satisfactory progress toward the 95.17 objectives specified in the caregiver's employment plan, may, 95.18 with the approval of the job counselor, continue with the 95.19 existing employment plan for up to two years after the caregiver 95.20 is enrolled in MFIP-S. For purposes of the federal 95.21 participation standards, the activities in the caregiver's 95.22 employment plan are work activities, as that term is defined in 95.23 section 256J.49, subdivision 13. 95.24 (c) Notwithstanding contrary provisions of section 256.736, 95.25 the employability plan of a caregiver who is enrolled in project 95.26 STRIDE or ACCESS on or after July 1, 1997, must meet the 95.27 requirements of section 256J.53. 95.28 Subd. 4. [SERVICE PROVIDING AGENCIES.] Unless the 95.29 provisions of subdivision 8 apply, a county must select at least 95.30 two employment and training service providers. A county may opt 95.31 to provide services on its own as one of these providers. 95.32 Subd. 5. [PARTICIPATION REQUIREMENTS FOR SINGLE-PARENT AND 95.33 TWO-PARENT CASES.] A county must establish a uniform schedule 95.34 for requiring participation by single parents. Mandatory 95.35 participation must be required within six months of eligibility 95.36 for cash assistance. For two-parent cases, participation is 96.1 required concurrent with the receipt of MFIP-S cash assistance. 96.2 Subd. 6. [EXPLANATORY MATERIALS REQUIRED.] The county must: 96.3 (1) explain to applicants and recipients and provide 96.4 explanatory materials regarding the relationship between the 96.5 60-month time limit on assistance funded with TANF dollars and 96.6 the receipt of various benefits, including cash assistance, food 96.7 stamps, medical assistance, and child care assistance; and 96.8 (2) provide assistance to applicants and recipients to 96.9 enable them to minimize the use of their 60 allowable months of 96.10 TANF-funded assistance. 96.11 Subd. 7. [LOCAL SERVICE UNIT PLAN.] Each local or county 96.12 service unit shall prepare and submit a plan as specified in 96.13 section 268.88. 96.14 Subd. 8. [COUNTY DUTY TO ENSURE EMPLOYMENT AND TRAINING 96.15 CHOICES FOR PARTICIPANTS.] Each county, or group of counties 96.16 working cooperatively, shall make available to participants the 96.17 choice of at least two employment and training service providers 96.18 as defined under section 256J.49, subdivision 4, except in 96.19 counties utilizing workforce centers that use multiple 96.20 employment and training services, offer multiple services 96.21 options under a collaborative effort and can document that 96.22 participants have choice among employment and training services 96.23 designed to meet specialized needs. 96.24 Subd. 9. [EXCEPTION; FINANCIAL HARDSHIP.] Notwithstanding 96.25 subdivision 8, a county that explains in the plan required under 96.26 subdivision 7 that the provision of alternative employment and 96.27 training service providers would result in financial hardship 96.28 for the county is not required to make available more than one 96.29 employment and training provider. 96.30 Sec. 41. [256J.51] [EMPLOYMENT AND TRAINING SERVICE 96.31 PROVIDER; ALTERNATE APPROVAL PROCESS.] 96.32 Subdivision 1. [PROVIDER APPLICATION.] An employment and 96.33 training service provider that is not included in a county's 96.34 plan under section 256J.50, subdivision 7, because the county 96.35 has demonstrated financial hardship under subdivision 9 of that 96.36 section, may appeal its exclusion to the commissioner of 97.1 economic security under this section. 97.2 Subd. 2. [APPEAL; ALTERNATE APPROVAL.] (a) An employment 97.3 and training service provider that is not included by a county 97.4 agency in the plan under section 256J.50, subdivision 7, and 97.5 that meets the criteria in paragraph (b), may appeal its 97.6 exclusion to the commissioner of economic security, and may 97.7 request alternative approval by the commissioner of economic 97.8 security to provide services in the county. 97.9 (b) An employment and training services provider that is 97.10 requesting alternative approval must demonstrate to the 97.11 commissioner that the provider meets the standards specified in 97.12 section 268.871, subdivision 1, paragraph (b), except that the 97.13 provider's past experience may be in services and programs 97.14 similar to those specified in section 268.871, subdivision 1, 97.15 paragraph (b). 97.16 Subd. 3. [COMMISSIONER'S REVIEW.] (a) The commissioner 97.17 must act on a request for alternative approval under this 97.18 section within 30 days of the receipt of the request. If after 97.19 reviewing the provider's request, and the county's plan 97.20 submitted under section 256J.50, subdivision 7, the commissioner 97.21 determines that the provider meets the criteria under 97.22 subdivision 2, paragraph (b), and that approval of the provider 97.23 would not cause financial hardship to the county, the county 97.24 must submit a revised plan under subdivision 4 that includes the 97.25 approved provider. 97.26 (b) If the commissioner determines that the approval of the 97.27 provider would cause financial hardship to the county, the 97.28 commissioner must notify the provider and the county of this 97.29 determination. The alternate approval process under this 97.30 section shall be closed to other requests for alternate approval 97.31 to provide employment and training services in the county for up 97.32 to 12 months from the date that the commissioner makes a 97.33 determination under this paragraph. 97.34 Subd. 4. [REVISED PLAN REQUIRED.] The commissioner of 97.35 economic security must notify the county agency when the 97.36 commissioner grants an alternative approval to an employment and 98.1 training service provider under subdivision 2. Upon receipt of 98.2 the notice, the county agency must submit a revised plan under 98.3 section 256J.50, subdivision 7, that includes the approved 98.4 provider. The county has 90 days from the receipt of the 98.5 commissioner's notice to submit the revised plan. 98.6 Subd. 5. [REVIEW NOT REQUIRED.] Notwithstanding 98.7 subdivision 3, once a county meets the requirements of section 98.8 256J.50, subdivision 8, the commissioner may, but is not 98.9 required to, act on a request by an employment and training 98.10 services provider for alternative approval in that county. 98.11 Sec. 42. [256J.515] [OVERVIEW OF EMPLOYMENT AND TRAINING 98.12 SERVICES.] 98.13 During the first meeting with participants, job counselors 98.14 must ensure that an overview of employment and training services 98.15 is provided that stresses the necessity and opportunity of 98.16 immediate employment, outlines the job search resources offered, 98.17 explains the requirements to comply with an employment plan and 98.18 the consequences for failing to comply, and explains the 98.19 services that are available to support job search and work. 98.20 Sec. 43. [256J.52] [ASSESSMENTS; PLANS.] 98.21 Subdivision 1. [APPLICATION LIMITED TO CERTAIN 98.22 PARTICIPANTS.] This section applies to participants receiving 98.23 MFIP-S assistance who are not exempt under section 256J.56, and 98.24 to caregivers who volunteer for employment and training services 98.25 under section 256J.50. 98.26 Subd. 2. [INITIAL ASSESSMENT.] (a) The job counselor must, 98.27 with the cooperation of the participant, assess the 98.28 participant's ability to obtain and retain employment. This 98.29 initial assessment must include a review of the participant's 98.30 education level, prior employment or work experience, 98.31 transferable work skills, and existing job markets. 98.32 (b) In assessing the participant, the job counselor must 98.33 determine if the participant needs refresher courses for 98.34 professional certification or licensure, in which case, the job 98.35 search plan under subdivision 3 must include the courses 98.36 necessary to obtain the certification or licensure, in addition 99.1 to other work activities, provided the combination of the 99.2 courses and other work activities are at least for 40 hours per 99.3 week. 99.4 (c) If a participant can demonstrate to the satisfaction of 99.5 the county agency that lack of proficiency in English is a 99.6 barrier to obtaining suitable employment, the job counselor must 99.7 include participation in an intensive English as a second 99.8 language program if available or otherwise a regular English as 99.9 a second language program in the individual's employment plan 99.10 under subdivision 5. Lack of proficiency in English is not 99.11 necessarily a barrier to employment. 99.12 (d) The job counselor may approve an education or training 99.13 plan, and postpone the job search requirement, if the 99.14 participant has a proposal for an education program which: 99.15 (1) can be completed within 12 months; 99.16 (2) meets the criteria of section 256J.53, subdivisions 2, 99.17 3, and 5; and 99.18 (3) is likely, without additional training, to lead to 99.19 monthly employment earnings which, after subtraction of the 99.20 earnings disregard under section 256J.21, equal or exceed the 99.21 family wage level for the participant's assistance unit. 99.22 (e) A participant who, at the time of the initial 99.23 assessment, presents a plan that includes farming as a 99.24 self-employed work activity must have an employment plan 99.25 developed under subdivision 5 that includes the farming as an 99.26 approved work activity. 99.27 Subd. 3. [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 99.28 after the initial assessment, the job counselor determines that 99.29 the participant possesses sufficient skills that the participant 99.30 is likely to succeed in obtaining suitable employment, the 99.31 participant must conduct job search for a period of up to eight 99.32 weeks, for at least 30 hours per week. The participant must 99.33 accept any offer of suitable employment. The job counselor and 99.34 participant must develop a job search support plan which 99.35 specifies, at a minimum: whether the job search is to be 99.36 supervised or unsupervised; support services that will be 100.1 provided while the participant conducts job search activities; 100.2 the courses necessary to obtain certification or licensure, if 100.3 applicable, and after obtaining the license or certificate, the 100.4 client must comply with subdivision 5; and how frequently the 100.5 participant must report to the job counselor on the status of 100.6 the participant's job search activities. 100.7 (b) During the eight-week job search period, either the job 100.8 counselor or the participant may request a review of the 100.9 participant's job search plan and progress towards obtaining 100.10 suitable employment. If a review is requested by the 100.11 participant, the job counselor must concur that the review is 100.12 appropriate for the participant at that time. If a review is 100.13 conducted, the job counselor may make a determination to conduct 100.14 a secondary assessment prior to the conclusion of the job search. 100.15 (c) Failure to conduct the required job search, to accept 100.16 any offer of suitable employment, to develop or comply with a 100.17 job search support plan, or voluntarily quitting suitable 100.18 employment without good cause results in the imposition of a 100.19 sanction under section 256J.46. If at the end of eight weeks 100.20 the participant has not obtained suitable employment, the job 100.21 counselor must conduct a secondary assessment of the participant 100.22 under subdivision 3. 100.23 Subd. 4. [SECONDARY ASSESSMENT.] (a) The job counselor 100.24 must conduct a secondary assessment for those participants who: 100.25 (1) in the judgment of the job counselor, have barriers to 100.26 obtaining employment that will not be overcome with a job search 100.27 support plan under subdivision 3; 100.28 (2) have completed eight weeks of job search under 100.29 subdivision 3 without obtaining suitable employment; or 100.30 (3) have not received a secondary assessment, are working 100.31 at least 20 hours per week, and the participant, job counselor, 100.32 or county agency requests a secondary assessment. 100.33 (b) In the secondary assessment the job counselor must 100.34 evaluate the participant's skills and prior work experience, 100.35 family circumstances, interests and abilities, need for 100.36 preemployment activities, supportive, or educational services, 101.1 and the extent of any barriers to employment. The job counselor 101.2 must use the information gathered through the secondary 101.3 assessment to develop an employment plan under subdivision 5. 101.4 Subd. 5. [EMPLOYMENT PLAN; CONTENTS.] Based on the 101.5 secondary assessment under subdivision 4, the job counselor and 101.6 the participant must develop an employment plan for the 101.7 participant that includes specific activities that are tied to 101.8 an employment goal and a plan for long-term self-sufficiency, 101.9 and that is designed to move the participant along the most 101.10 direct path to unsubsidized employment. The employment plan 101.11 must list the specific steps that will be taken to obtain 101.12 employment and a timetable for completion of each of the steps. 101.13 The job counselor and the participant must sign the developed 101.14 plan to indicate agreement between the job counselor and the 101.15 participant on the contents of the plan. 101.16 Subd. 6. [SAFETY PLAN.] Notwithstanding subdivisions 1 to 101.17 5, a participant who is a victim of domestic violence and who 101.18 agrees to develop or has developed a safety plan meeting the 101.19 definition under section 256J.49, subdivision 11, is deferred 101.20 from the requirements of this section, section 256J.54, and 101.21 section 256J.55 for a period of three months from the date the 101.22 safety plan is approved. A participant deferred under this 101.23 subdivision must submit a safety plan status report to the 101.24 county agency on a quarterly basis. Based on a review of the 101.25 status report, the county agency may approve or renew the 101.26 participant's deferral each quarter, provided the personal 101.27 safety of the participant is still at risk and the participant 101.28 is complying with the plan. A participant who is deferred under 101.29 this subdivision may be deferred for a total of 12 months under 101.30 a safety plan, provided the individual is complying with the 101.31 terms of the plan. 101.32 Subd. 7. [REVISION OF PLAN.] If the employee has lost or 101.33 quit a job with good cause, the job counselor must ascertain the 101.34 reason for the job loss and work with the participant to amend 101.35 the job search support plan or employment plan, whichever is in 101.36 effect, as necessary to address the problem. If a job search 102.1 support plan is in effect, the participant, county agency, or 102.2 job counselor may request a secondary assessment at this time. 102.3 Sec. 44. [256J.53] [POST-SECONDARY EDUCATION; LIMITATIONS 102.4 ON APPROVAL, JOB SEARCH REQUIREMENT.] 102.5 Subdivision 1. [LENGTH OF PROGRAM.] In order for a 102.6 post-secondary education or training program to be approved work 102.7 activity as defined in section 256J.49, subdivision 13, clause 102.8 (18), it must be a program lasting 12 months or less, and the 102.9 participant must meet the requirements of subdivisions 2 and 3. 102.10 A program lasting up to 24 months may be approved on an 102.11 exception basis if the conditions specified in subdivisions 2 to 102.12 4 are met. A participant may not be approved for more than a 102.13 total of 24 months of post-secondary education or training. 102.14 Subd. 2. [DOCUMENTATION SUPPORTING PROGRAM.] In order for 102.15 a post-secondary education or training program to be an approved 102.16 activity in a participant's employment plan, the participant or 102.17 the employment and training service provider must provide 102.18 documentation that: 102.19 (1) the participant's employment plan identifies specific 102.20 goals that can only be met with the additional education or 102.21 training; 102.22 (2) there are suitable employment opportunities that 102.23 requires the specific education or training in the area in which 102.24 the participant resides or is willing to reside; 102.25 (3) the education or training will result in significantly 102.26 higher wages for the participant than the participant could earn 102.27 without the education or training; 102.28 (4) the participant can meet the requirements for admission 102.29 into the program; and 102.30 (5) there is a reasonable expectation that the participant 102.31 will complete the training program based on such factors as the 102.32 participant's MFIP-S assessment, previous education, training, 102.33 and work history; current motivation; and changes in previous 102.34 circumstances. 102.35 Subd. 3. [SATISFACTORY PROGRESS REQUIRED.] In order for a 102.36 post-secondary education or training program to be an approved 103.1 activity in a participant's employment plan, the participant 103.2 must maintain satisfactory progress in the program. 103.3 "Satisfactory progress" in an education or training program 103.4 means (1) the participant remains in good standing while the 103.5 participant is enrolled in the program, as defined by the 103.6 education or training institution, or (2) the participant makes 103.7 satisfactory progress as the term is defined in the 103.8 participant's employment plan. 103.9 Subd. 4. [REPAYMENT OF EMPLOYMENT AND TRAINING 103.10 ASSISTANCE.] In order for a post-secondary education or training 103.11 program lasting between 13 and 24 months to be an approved 103.12 activity in a participant's employment plan, the participant 103.13 must agree to repay the amount of employment and training funds 103.14 paid by the county to support the individual's participation in 103.15 each month of an education or training program after the 12th 103.16 month of the program. Assistance obtained by the participant 103.17 through the federal Pell grant program or other federal or state 103.18 programs of higher education assistance must be excluded from 103.19 the amount to be repaid by the participant. The participant and 103.20 the county agency must develop a mutually acceptable repayment 103.21 plan. The repayment plan must not assess any interest charges 103.22 on the cost of the funds to be repaid. The loan is considered 103.23 to be in repayment status when: 103.24 (1) the participant completes the program and obtains 103.25 suitable employment that pays annual gross wages of at least 150 103.26 percent of the federal poverty level; or 103.27 (2) the participant leaves the program before completion of 103.28 the program and obtains suitable employment that pays annual 103.29 gross wages of at least 150 percent of the federal poverty level. 103.30 Subd. 5. [JOB SEARCH AFTER COMPLETION OF WORK 103.31 ACTIVITY.] If a participant's employment plan includes a 103.32 post-secondary educational or training program, the plan must 103.33 include an anticipated completion date for those activities. At 103.34 the time the education or training is completed, the participant 103.35 must participate in job search. If, after three months of job 103.36 search, the participant does not find a job that is consistent 104.1 with the participant's employment goal, the participant must 104.2 accept any offer of suitable employment. 104.3 Sec. 45. [256J.54] [MINOR PARENTS; EMPLOYMENT PLAN.] 104.4 Subdivision 1. [ASSESSMENT OF EDUCATIONAL PROGRESS AND 104.5 NEEDS.] The county agency must document the educational level of 104.6 each MFIP-S caregiver who is under the age of 20 and determine 104.7 if the caregiver has obtained a high school diploma or its 104.8 equivalent. If the caregiver has not obtained a high school 104.9 diploma or its equivalent, and is not exempt from the 104.10 requirement to attend school under subdivision 5, the county 104.11 agency must complete an individual assessment for the 104.12 caregiver. The assessment must be performed as soon as possible 104.13 but within 30 days of determining MFIP-S eligibility for the 104.14 caregiver. The assessment must provide an initial examination 104.15 of the caregiver's educational progress and needs, literacy 104.16 level, child care and supportive service needs, family 104.17 circumstances, skills, and work experience. In the case of a 104.18 caregiver under the age of 18, the assessment must also consider 104.19 the results of either the caregiver's or the caregiver's minor 104.20 child's child and teen checkup under Minnesota Rules, parts 104.21 9505.0275 and 9505.1693 to 9505.1748, if available, and the 104.22 effect of a child's development and educational needs on the 104.23 caregiver's ability to participate in the program. The county 104.24 agency must advise the caregiver that the caregiver's first goal 104.25 must be to complete an appropriate educational option if one is 104.26 identified for the caregiver through the assessment and, in 104.27 consultation with educational agencies, must review the various 104.28 school completion options with the caregiver and assist in 104.29 selecting the most appropriate option. 104.30 Subd. 2. [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 104.31 PLAN.] For caregivers who are under age 18, the assessment under 104.32 subdivision 1 and the employment plan under subdivision 3 must 104.33 be completed by the social services agency under section 104.34 257.33. For caregivers who are age 18 or 19, the assessment 104.35 under subdivision 1 and the employment plan under subdivision 3 104.36 must be completed by the job counselor. The social services 105.1 agency or the job counselor shall consult with representatives 105.2 of educational agencies that are required to assist in 105.3 developing educational plans under section 126.235. 105.4 Subd. 3. [EDUCATIONAL OPTION DEVELOPED.] If the job 105.5 counselor or county social services agency identifies an 105.6 appropriate educational option, it must develop an employment 105.7 plan which reflects the identified option. The plan must 105.8 specify that participation in an educational activity is 105.9 required, what school or educational program is most 105.10 appropriate, the services that will be provided, the activities 105.11 the caregiver will take part in, including child care and 105.12 supportive services, the consequences to the caregiver for 105.13 failing to participate or comply with the specified 105.14 requirements, and the right to appeal any adverse action. The 105.15 employment plan must, to the extent possible, reflect the 105.16 preferences of the caregiver. 105.17 Subd. 4. [NO APPROPRIATE EDUCATIONAL OPTION.] If the job 105.18 counselor determines that there is no appropriate educational 105.19 option for a caregiver who is age 18 or 19, the job counselor 105.20 must develop an employment plan, as defined in section 256J.49, 105.21 subdivision 5, for the caregiver. If the county social services 105.22 agency determines that school attendance is not appropriate for 105.23 a caregiver under age 18, the county agency shall refer the 105.24 caregiver to social services for services as provided in section 105.25 257.33. 105.26 Subd. 5. [SCHOOL ATTENDANCE REQUIRED.] (a) Notwithstanding 105.27 the provisions of section 256J.56, minor parents, or 18- or 105.28 19-year-old parents without a high school diploma or its 105.29 equivalent must attend school unless: 105.30 (1) transportation services needed to enable the caregiver 105.31 to attend school are not available; 105.32 (2) appropriate child care services needed to enable the 105.33 caregiver to attend school are not available; 105.34 (3) the caregiver is ill or incapacitated seriously enough 105.35 to prevent attendance at school; or 105.36 (4) the caregiver is needed in the home because of the 106.1 illness or incapacity of another member of the household. This 106.2 includes a caregiver of a child who is younger than six weeks of 106.3 age. 106.4 (b) The caregiver must be enrolled in a secondary school 106.5 and meeting the school's attendance requirements. An enrolled 106.6 caregiver is considered to be meeting the attendance 106.7 requirements when the school is not in regular session, 106.8 including during holiday and summer breaks. 106.9 Sec. 46. [256J.55] [PARTICIPANT REQUIREMENTS, RIGHTS, AND 106.10 EXPECTATIONS.] 106.11 Subdivision 1. [COMPLIANCE WITH JOB SEARCH OR EMPLOYMENT 106.12 PLAN; SUITABLE EMPLOYMENT.] (a) Each MFIP-S participant must 106.13 comply with the terms of the participant's job search support 106.14 plan or employment plan. When the participant has completed the 106.15 steps listed in the employment plan, the participant must comply 106.16 with section 256J.53, subdivision 5, if applicable, and then the 106.17 participant must not refuse any offer of suitable employment. 106.18 The participant may choose to accept an offer of suitable 106.19 employment before the participant has completed the steps of the 106.20 employment plan. 106.21 (b) For a participant under the age of 20 who is without a 106.22 high school diploma or general educational development diploma, 106.23 the requirement to comply with the terms of the employment plan 106.24 means the participant must meet the requirements of section 106.25 256J.54. 106.26 (c) Failure to develop or comply with a job search support 106.27 plan or an employment plan, or quitting suitable employment 106.28 without good cause, shall result in the imposition of a sanction 106.29 as specified in sections 256J.57 and 256J.46. 106.30 Subd. 2. [DUTY TO REPORT.] The participant must inform the 106.31 job counselor within three working days regarding any changes 106.32 related to the participant's employment status. 106.33 Subd. 3. [MOVE TO A DIFFERENT COUNTY.] MFIP-S applicants 106.34 or recipients who move to a different county in Minnesota and 106.35 are required to participate in employment and training services 106.36 are subject to the requirements of the destination county. An 107.1 employment plan that was developed in the county of origin may 107.2 be continued in the destination county if both the destination 107.3 county and the participant agree to do so. 107.4 Subd. 4. [CHOICE OF PROVIDER.] A participant must be able 107.5 to choose from at least two employment and training service 107.6 providers, unless the county has demonstrated to the 107.7 commissioner that the provision of multiple employment and 107.8 training service providers would result in financial hardship 107.9 for the county, or the county is utilizing a workforce center as 107.10 specified in section 256J.50, subdivision 8. 107.11 Subd. 5. [OPTION TO UTILIZE EXISTING PLAN.] With job 107.12 counselor approval, if a participant is already complying with a 107.13 job search support or employment plan that was developed for a 107.14 different program, the participant may utilize that plan and 107.15 that program's services, subject to the requirements of 107.16 subdivision 3, to be in compliance with sections 256J.52 to 107.17 256J.57 so long as the plan meets, or is modified to meet, the 107.18 requirements of those sections. 107.19 Sec. 47. [256J.56] [EMPLOYMENT AND TRAINING SERVICES 107.20 COMPONENT; EXEMPTIONS.] 107.21 An MFIP-S caregiver is exempt from the requirements of 107.22 sections 256J.52 to 256J.55 if the caregiver belongs to any of 107.23 the following groups: 107.24 (1) individuals who are age 60 or older; 107.25 (2) individuals who are suffering from a professionally 107.26 certified permanent or temporary illness, injury, or incapacity 107.27 which is expected to continue for more than 30 days and which 107.28 prevents the person from obtaining or retaining employment. 107.29 Persons in this category with a temporary illness, injury, or 107.30 incapacity must be reevaluated at least quarterly; 107.31 (3) caregivers whose presence in the home is required 107.32 because of the professionally certified illness or incapacity of 107.33 another member in the household; 107.34 (4) women who are pregnant, if the pregnancy has resulted 107.35 in a professionally certified incapacity that prevents the woman 107.36 from obtaining or retaining employment; 108.1 (5) caregivers of a child under the age of one year who 108.2 personally provide full-time care for the child. This exemption 108.3 may be used for only 12 months in a lifetime. In two-parent 108.4 households, only one parent or other relative may qualify for 108.5 this exemption; 108.6 (6) individuals employed at least 40 hours per week or at 108.7 least 30 hours per week and engaged in job search for at least 108.8 an additional ten hours per week; 108.9 (7) individuals experiencing a personal or family crisis 108.10 that makes them incapable of participating in the program, as 108.11 determined by the county agency. If the participant does not 108.12 agree with the county agency's determination, the participant 108.13 may seek professional certification, as defined in section 108.14 256J.08, that the participant is incapable of participating in 108.15 the program. 108.16 Persons in this exemption category must be reevaluated 108.17 every 60 days; or 108.18 (8) second parents in two-parent families, provided the 108.19 second parent is employed for 20 or more hours per week. 108.20 A caregiver who is exempt under clause (5) must enroll in 108.21 and attend an early childhood and family education class, a 108.22 parenting class, or some similar activity, if available, during 108.23 the period of time the caregiver is exempt under this section. 108.24 Notwithstanding section 256J.46, failure to attend the required 108.25 activity shall not result in the imposition of a sanction. 108.26 Sec. 48. [256J.57] [GOOD CAUSE; FAILURE TO COMPLY; NOTICE; 108.27 CONCILIATION CONFERENCE.] 108.28 Subdivision 1. [GOOD CAUSE FOR FAILURE TO COMPLY.] The 108.29 county agency shall not impose the sanction under section 108.30 256J.46 if it determines that the participant has good cause for 108.31 failing to comply with the requirements of section 256J.45 or 108.32 sections 256J.52 to 256J.55. Good cause exists when: 108.33 (1) appropriate child care is not available; 108.34 (2) the job does not meet the definition of suitable 108.35 employment; 108.36 (3) the participant is ill or injured; 109.1 (4) a family member is ill and needs care by the 109.2 participant that prevents the participant from complying with 109.3 the job search support plan or employment plan; 109.4 (5) the parental caregiver is unable to secure necessary 109.5 transportation; 109.6 (6) the parental caregiver is in an emergency situation 109.7 that prevents compliance with the job search support plan or 109.8 employment plan; 109.9 (7) the schedule of compliance with the job search support 109.10 plan or employment plan conflicts with judicial proceedings; 109.11 (8) the parental caregiver is already participating in 109.12 acceptable work activities; 109.13 (9) the employment plan requires an educational program for 109.14 a caregiver under age 20, but the educational program is not 109.15 available; 109.16 (10) activities identified in the job search support plan 109.17 or employment plan are not available; 109.18 (11) the parental caregiver is willing to accept suitable 109.19 employment, but suitable employment is not available; or 109.20 (12) the parental caregiver documents other verifiable 109.21 impediments to compliance with the job search support plan or 109.22 employment plan beyond the parental caregiver's control. 109.23 Subd. 2. [NOTICE OF INTENT TO SANCTION.] (a) When a 109.24 participant fails without good cause to comply with the 109.25 requirements of sections 256J.52 to 256J.55, the job counselor 109.26 or the county agency must provide a notice of intent to sanction 109.27 to the participant specifying the program requirements that were 109.28 not complied with, informing the participant that the county 109.29 agency will impose the sanctions specified in section 256J.46, 109.30 and informing the participant of the opportunity to request a 109.31 conciliation conference as specified in paragraph (b). The 109.32 notice must also state that the participant's continuing 109.33 noncompliance with the specified requirements will result in 109.34 additional sanctions under section 256J.46, without the need for 109.35 additional notices or conciliation conferences under this 109.36 subdivision. If the participant does not request a conciliation 110.1 conference within ten calendar days of the mailing of the notice 110.2 of intent to sanction, the job counselor must notify the county 110.3 agency that the assistance payment should be reduced. The 110.4 county must then send a notice of adverse action to the 110.5 participant informing the participant of the sanction that will 110.6 be imposed, the reasons for the sanction, the effective date of 110.7 the sanction, and the participant's right to have a fair hearing 110.8 under section 256J.40. 110.9 (b) The participant may request a conciliation conference 110.10 by sending a written request, by making a telephone request, or 110.11 by making an in-person request. The request must be received 110.12 within ten calendar days of the date the county agency mailed 110.13 the ten-day notice of intent to sanction. If a timely request 110.14 for a conciliation is received, the county agency's service 110.15 provider must conduct the conference within five days of the 110.16 request. The job counselor's supervisor, or a designee of the 110.17 supervisor, must review the outcome of the conciliation 110.18 conference. If the conciliation conference resolves the 110.19 noncompliance, the job counselor must promptly inform the county 110.20 agency and request withdrawal of the sanction notice. 110.21 (c) Upon receiving a sanction notice, the participant may 110.22 request a fair hearing under section 256J.40, without exercising 110.23 the option of a conciliation conference. In such cases, the 110.24 county agency shall not require the participant to engage in a 110.25 conciliation conference prior to the fair hearing. 110.26 (d) If the participant requests a fair hearing or a 110.27 conciliation conference, sanctions will not be imposed until 110.28 there is a determination of noncompliance. Sanctions must be 110.29 imposed as provided in section 256J.46. 110.30 Sec. 49. [256J.61] [REPORTING REQUIREMENTS.] 110.31 The commissioner of human services, in cooperation with the 110.32 commissioner of economic security, shall develop reporting 110.33 requirements for county agencies and employment and training 110.34 service providers according to section 256.01, subdivision 2, 110.35 paragraph (17). Reporting requirements must, to the extent 110.36 possible, use existing client tracking systems and must be 111.1 within the limits of funds available. The requirements must 111.2 include summary information necessary for state agencies and the 111.3 legislature to evaluate the effectiveness of the services. 111.4 Sec. 50. [256J.62] [ALLOCATION OF COUNTY EMPLOYMENT AND 111.5 TRAINING SERVICES BLOCK GRANT.] 111.6 Subdivision 1. [ALLOCATION.] Money appropriated for MFIP-S 111.7 employment and training services must be allocated to counties 111.8 as specified in this section. 111.9 Subd. 2. [GUARANTEED FLOOR.] Money shall be allocated to 111.10 counties in an amount equal to the county's guaranteed floor. 111.11 The county's guaranteed allocation floor shall be calculated as 111.12 follows: 111.13 (1) for fiscal 1998, the guaranteed allocation floor shall 111.14 be calculated by multiplying the county's STRIDE allocation 111.15 received for state fiscal year 1997 by 90 percent; 111.16 (2) for each subsequent fiscal year, the guaranteed 111.17 allocation floor shall be calculated by multiplying the county's 111.18 MFIP-S employment and training services allocation received the 111.19 previous state fiscal year by 90 percent; and 111.20 (3) if the amount of funds available for allocation is less 111.21 than the amount allocated to all counties for the previous 111.22 fiscal year, each county's previous year allocation shall be 111.23 reduced in proportion to the reduction in statewide funding for 111.24 the purpose of establishing the guaranteed floor. 111.25 Subd. 3. [ALLOCATION OF BALANCE OF FUNDS.] If there remain 111.26 funds to allocate after establishing each county's guaranteed 111.27 floor under the provisions in subdivision 2, the balance of 111.28 funds shall be allocated as follows: 111.29 (1) for state fiscal year 1998, the remaining funds shall 111.30 be allocated based on the county's average number of AFDC and 111.31 family general assistance cases as compared to the statewide 111.32 total number of cases. The average number of cases shall be 111.33 based on counts of AFDC and family general assistance cases as 111.34 of March 31, June 30, September 30, and December 31 of calendar 111.35 year 1996; 111.36 (2) for state fiscal year 1999, the remaining funds shall 112.1 be allocated based on the county's average number of AFDC, 112.2 family general assistance, MFIP-R, MFIP, and MFIP-S cases as 112.3 compared to the statewide total number of cases. The average 112.4 number of cases shall be based on counts of AFDC, family general 112.5 assistance, MFIP-R, MFIP, and MFIP-S cases as of March 31, June 112.6 30, September 30, and December 31 of calendar year 1997; and 112.7 (3) for all subsequent state fiscal years, the remaining 112.8 funds shall be allocated based on the county's average number of 112.9 MFIP-S cases as compared to the statewide total number of 112.10 cases. The average number of cases must be based on counts of 112.11 MFIP-S cases as of March 31, June 30, September 30, and December 112.12 31 of the previous calendar year. 112.13 Subd. 4. [ADMINISTRATIVE ACTIVITIES LIMIT.] No more than 112.14 15 percent of the money allocated under this section may be used 112.15 for administrative activities. 112.16 Subd. 4a. [STRIDE ALLOCATION.] Funds allocated for STRIDE 112.17 services for state fiscal year 1998 are allocated to county 112.18 agencies based on the provisions of statute in effect on June 112.19 30, 1997. At the time that the AFDC program is replaced by the 112.20 Temporary Assistance for Needy Families program under title I of 112.21 Public Law Number 104-193 of the Personal Responsibility and 112.22 Work Opportunity Reconciliation Act of 1996, any unexpended 112.23 balance of a county's STRIDE allocation for that fiscal year 112.24 remains available to the county for operation of MFIP-S 112.25 employment and training services and for the operation of the 112.26 STRIDE program for the MFIP and MFIP-R field trial counties for 112.27 the balance of the fiscal year. These STRIDE funds shall be 112.28 included in the calculation of the next year's MFIP-S employment 112.29 and training allocation under the provisions of subdivision 2. 112.30 Subd. 5. [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 112.31 REFUGEES.] Funds appropriated to cover the costs of bilingual 112.32 employment and training services to refugees shall be allocated 112.33 to county agencies as follows: 112.34 (1) for state fiscal year 1998, the allocation shall be 112.35 based on the county's proportion of the total statewide number 112.36 of AFDC refugee cases in the previous fiscal year. Counties 113.1 with less than one percent of the statewide number of AFDC, 113.2 MFIP-R, or MFIP refugee cases shall not receive an allocation of 113.3 bilingual employment and training services funds; and 113.4 (2) for each subsequent fiscal year, the allocation shall 113.5 be based on the county's proportion of the total statewide 113.6 number of MFIP-S refugee cases in the previous fiscal year. 113.7 Counties with less than one percent of the statewide number of 113.8 MFIP-S refugee cases shall not receive an allocation of 113.9 bilingual employment and training services funds. 113.10 Subd. 6. [WORK LITERACY LANGUAGE PROGRAMS.] Funds 113.11 appropriated to cover the costs of work literacy language 113.12 programs to non-English speaking recipients shall be allocated 113.13 to county agencies as follows: 113.14 (1) for state fiscal year 1998, the allocation shall be 113.15 based on the county's proportion of the total statewide number 113.16 of AFDC or MFIP cases in the previous fiscal year where the lack 113.17 of English is a barrier to employment. Counties with less than 113.18 two percent of the statewide number of AFDC or MFIP cases where 113.19 the lack of English is a barrier to employment shall not receive 113.20 an allocation of the work literacy language program funds; and 113.21 (2) for each subsequent fiscal year, the allocation shall 113.22 be based on the county's proportion of the total statewide 113.23 number of MFIP-S cases in the previous fiscal year where the 113.24 lack of English is a barrier to employment. Counties with less 113.25 than two percent of the statewide number of MFIP-S cases where 113.26 the lack of English is a barrier to employment shall not receive 113.27 an allocation of the work literacy language program funds. 113.28 Subd. 7. [REALLOCATION.] The commissioner of human 113.29 services shall review county agency expenditures of MFIP-S 113.30 employment and training services funds at the end of the third 113.31 quarter of the first year of the biennium and each quarter after 113.32 that and may reallocate unencumbered or unexpended money 113.33 appropriated under this section to those county agencies that 113.34 can demonstrate a need for additional money. 113.35 Subd. 8. [CONTINUATION OF CERTAIN SERVICES.] At the 113.36 request of the caregiver, the county may continue to provide 114.1 case management, counseling or other support services to a 114.2 participant following the participant's achievement of the 114.3 employment goal, for up to six months following termination of 114.4 the participant's eligibility for MFIP-S. 114.5 A county may expend funds for a specific employment and 114.6 training service for the duration of that service to a 114.7 participant if the funds are obligated or expended prior to the 114.8 participant losing MFIP-S eligibility. 114.9 Sec. 51. [256J.645] [INDIAN TRIBE MFIP-S EMPLOYMENT AND 114.10 TRAINING.] 114.11 Subdivision 1. [AUTHORIZATION TO ENTER INTO 114.12 AGREEMENTS.] Effective July 1, 1997, the commissioner may enter 114.13 into agreements with federally recognized Indian tribes with a 114.14 reservation in the state to provide MFIP-S employment and 114.15 training services to members of the Indian tribe and to other 114.16 caregivers who are a part of the tribal member's MFIP-S 114.17 assistance unit. For purposes of this section, "Indian tribe" 114.18 means a tribe, band, nation, or other federally recognized group 114.19 or community of Indians. The commissioner may also enter into 114.20 an agreement with a consortium of Indian tribes providing the 114.21 governing body of each Indian tribe in the consortium complies 114.22 with the provisions of this section. 114.23 Subd. 2. [TRIBAL REQUIREMENTS.] The Indian tribe must: 114.24 (1) agree to fulfill the responsibilities provided under 114.25 the employment and training component of MFIP-S regarding 114.26 operation of MFIP-S employment and training services, as 114.27 designated by the commissioner; 114.28 (2) operate its employment and training services program 114.29 within a geographic service area not to exceed the counties 114.30 within which a border of the reservation falls; 114.31 (3) operate its program in conformity with section 13.46 114.32 and any applicable federal regulations in the use of data about 114.33 MFIP-S recipients; 114.34 (4) coordinate operation of its program with the county 114.35 agency, Job Training Partnership Act programs, and other support 114.36 services or employment-related programs in the counties in which 115.1 the tribal unit's program operates; 115.2 (5) provide financial and program participant activity 115.3 recordkeeping and reporting in the manner and using the forms 115.4 and procedures specified by the commissioner and permit 115.5 inspection of its program and records by representatives of the 115.6 state; and 115.7 (6) have the Indian tribe's employment and training service 115.8 provider certified by the commissioner of economic security, or 115.9 approved by the county. 115.10 Subd. 3. [FUNDING.] If the commissioner and an Indian 115.11 tribe are parties to an agreement under this subdivision, the 115.12 agreement may annually provide to the Indian tribe the funding 115.13 amount in clause (1) or (2): 115.14 (1) if the Indian tribe operated a tribal STRIDE program 115.15 during state fiscal year 1997, the amount to be provided is the 115.16 amount the Indian tribe received from the state for operation of 115.17 its tribal STRIDE program in state fiscal year 1997, except that 115.18 the amount provided for a fiscal year may increase or decrease 115.19 in the same proportion that the total amount of state funds 115.20 available for MFIP-S employment and training services increased 115.21 or decreased that fiscal year; or 115.22 (2) if the Indian tribe did not operate a tribal STRIDE 115.23 program during state fiscal year 1997, the commissioner may 115.24 provide to the Indian tribe for the first year of operations the 115.25 amount determined by multiplying the state allocation for MFIP-S 115.26 employment and training services to each county agency in the 115.27 Indian tribe's service delivery area by the percentage of MFIP-S 115.28 recipients in that county who were members of the Indian tribe 115.29 during the previous state fiscal year. The resulting amount 115.30 shall also be the amount that the commissioner may provide to 115.31 the Indian tribe annually thereafter through an agreement under 115.32 this subdivision, except that the amount provided for a fiscal 115.33 year may increase or decrease in the same proportion that the 115.34 total amount of state funds available for MFIP-S employment and 115.35 training services increased or decreased that fiscal year. 115.36 Subd. 4. [COUNTY AGENCY REQUIREMENT.] Indian tribal 116.1 members receiving MFIP-S benefits and residing in the service 116.2 area of an Indian tribe operating employment and training 116.3 services under an agreement with the commissioner must be 116.4 referred by county agencies in the service area to the Indian 116.5 tribe for employment and training services. 116.6 Sec. 52. [256J.65] [THE SELF-EMPLOYMENT INVESTMENT 116.7 DEMONSTRATION PROGRAM (SEID).] 116.8 (a) A caregiver who enrolls and participates in the SEID 116.9 program as specified in section 268.95, may, at county option, 116.10 be exempted from other employment and training participation 116.11 requirements for a period of up to 24 months, except for the 116.12 school attendance requirements as specified in section 256J.54. 116.13 (b) The following income and resource considerations apply 116.14 to SEID participants: 116.15 (1) an unencumbered cash reserve fund, composed of proceeds 116.16 from a SEID business, is not counted against the grant if those 116.17 funds are reinvested in the business and the value of the 116.18 business does not exceed $3,000. The value of the business is 116.19 determined by deducting outstanding encumbrances from retained 116.20 business profit; and 116.21 (2) the purchase of capital equipment and durable goods of 116.22 an amount up to $3,000 during a 24-month project period is 116.23 allowed as a business expense. 116.24 (c) SEID participants with a county-approved employment 116.25 plan are also eligible for employment and training services, 116.26 including child care and transportation. 116.27 Sec. 53. [256J.66] [ON-THE-JOB TRAINING.] 116.28 Subdivision 1. [ESTABLISHING THE ON-THE-JOB TRAINING 116.29 PROGRAM.] (a) County agencies may develop on-the-job training 116.30 programs for MFIP-S caregivers who are participating in 116.31 employment and training services. A county agency that chooses 116.32 to provide on-the-job training may make payments to employers 116.33 for on-the-job training costs that, during the period of the 116.34 training, must not exceed 50 percent of the wages paid by the 116.35 employer to the participant. The payments are deemed to be in 116.36 compensation for the extraordinary costs associated with 117.1 training participants under this section and in compensation for 117.2 the costs associated with the lower productivity of the 117.3 participants during training. 117.4 (b) Provision of an on-the-job training program under the 117.5 Job Training Partnership Act, in and of itself, does not qualify 117.6 as an on-the-job training program under this section. 117.7 (c) Participants in on-the-job training shall be 117.8 compensated by the employer at the same rates, including 117.9 periodic increases, as similarly situated employees or trainees 117.10 and in accordance with applicable law, but in no event less than 117.11 the federal or applicable state minimum wage, whichever is 117.12 higher. 117.13 Subd. 2. [TRAINING AND PLACEMENT.] (a) County agencies 117.14 shall limit the length of training based on the complexity of 117.15 the job and the caregiver's previous experience and training. 117.16 Placement in an on-the-job training position with an employer is 117.17 for the purpose of training and employment with the same 117.18 employer who has agreed to retain the person upon satisfactory 117.19 completion of training. 117.20 (b) Placement of any participant in an on-the-job training 117.21 position must be compatible with the participant's assessment 117.22 and employment plan under section 256J.52. 117.23 Sec. 54. [256J.67] [COMMUNITY WORK EXPERIENCE.] 117.24 Subdivision 1. [ESTABLISHING THE COMMUNITY WORK EXPERIENCE 117.25 PROGRAM.] To the extent of available resources, each county 117.26 agency may establish and operate a work experience component for 117.27 MFIP-S caregivers who are participating in employment and 117.28 training services. This option for county agencies supersedes 117.29 the requirement in section 402(a)(1)(B)(iv) of the Social 117.30 Security Act that caregivers who have received assistance for 117.31 two months and who are not exempt from work requirements must 117.32 participate in a work experience program. The purpose of the 117.33 work experience component is to enhance the caregiver's 117.34 employability and self-sufficiency and to provide meaningful, 117.35 productive work activities. The county shall use this program 117.36 for an individual after exhausting all other employment 118.1 opportunities. The county agency shall not require a caregiver 118.2 to participate in the community work experience program unless 118.3 the caregiver has been given an opportunity to participate in 118.4 other work activities. 118.5 Subd. 2. [COMMISSIONER'S DUTIES.] The commissioner shall 118.6 assist counties in the design and implementation of these 118.7 components. 118.8 Subd. 3. [EMPLOYMENT OPTIONS.] (a) Work sites developed 118.9 under this section are limited to projects that serve a useful 118.10 public service such as: health, social service, environmental 118.11 protection, education, urban and rural development and 118.12 redevelopment, welfare, recreation, public facilities, public 118.13 safety, community service, services to aged or disabled 118.14 citizens, and child care. To the extent possible, the prior 118.15 training, skills, and experience of a caregiver must be 118.16 considered in making appropriate work experience assignments. 118.17 (b) Structured, supervised volunteer work with an agency or 118.18 organization, which is monitored by the county service provider, 118.19 may, with the approval of the county agency, be used as a work 118.20 experience placement. 118.21 (c) As a condition of placing a caregiver in a program 118.22 under this section, the county agency shall first provide the 118.23 caregiver the opportunity: 118.24 (1) for placement in suitable subsidized or unsubsidized 118.25 employment through participation in a job search; or 118.26 (2) for placement in suitable employment through 118.27 participation in on-the-job training, if such employment is 118.28 available. 118.29 Subd. 4. [EMPLOYMENT PLAN.] (a) The caretaker's employment 118.30 plan must include the length of time needed in the work 118.31 experience program, the need to continue job-seeking activities 118.32 while participating in work experience, and the caregiver's 118.33 employment goals. 118.34 (b) After each six months of a caregiver's participation in 118.35 a work experience job placement, and at the conclusion of each 118.36 work experience assignment under this section, the county agency 119.1 shall reassess and revise, as appropriate, the caregiver's 119.2 employment plan. 119.3 (c) A caregiver may claim good cause under section 256J.57, 119.4 subdivision 1, for failure to cooperate with a work experience 119.5 job placement. 119.6 (d) The county agency shall limit the maximum number of 119.7 hours any participant may work under this section to the amount 119.8 of the transitional standard divided by the federal or 119.9 applicable state minimum wage, whichever is higher. After a 119.10 participant has been assigned to a position for nine months, the 119.11 participant may not continue in that assignment unless the 119.12 maximum number of hours a participant works is no greater than 119.13 the amount of the transitional standard divided by the rate of 119.14 pay for individuals employed in the same or similar occupations 119.15 by the same employer at the same site. This limit does not 119.16 apply if it would prevent a participant from counting toward the 119.17 federal work participation rate. 119.18 Sec. 55. [256J.68] [INJURY PROTECTION FOR WORK EXPERIENCE 119.19 PARTICIPANTS.] 119.20 Subdivision 1. [APPLICABILITY.] (a) This section must be 119.21 used to determine payment of any claims resulting from an 119.22 alleged injury or death of a person participating in a county or 119.23 a tribal community work experience program that is approved by 119.24 the commissioner and is operated by: 119.25 (i) the county agency; 119.26 (ii) the tribe; 119.27 (iii) a department of the state; or 119.28 (iv) a community-based organization under contract, prior 119.29 to April 1, 1997, with a county agency to provide a community 119.30 work experience program or a food stamp community work 119.31 experience program, provided the organization has not 119.32 experienced any individual injury loss or claim greater than 119.33 $1,000. 119.34 (b) This determination method is available to the 119.35 community-based organization under clause (iv) only for claims 119.36 incurred by participants in the community work experience 120.1 program or the food stamp community work experience program. 120.2 (c) This determination method applies to work experience 120.3 programs authorized by the commissioner for persons applying for 120.4 or receiving cash assistance and food stamps, and to the 120.5 Minnesota parent's fair share program and the community service 120.6 program under section 518.551, subdivision 5a, in a county with 120.7 an approved community investment program for obligors. 120.8 Subd. 2. [INVESTIGATION OF THE CLAIM.] Claims that are 120.9 subject to this section must be investigated by the county 120.10 agency or the tribal program responsible for supervising the 120.11 work to determine whether the claimed injury occurred, whether 120.12 the claimed medical expenses are reasonable, and whether the 120.13 loss is covered by the claimant's insurance. If insurance 120.14 coverage is established, the county agency or tribal program 120.15 shall submit the claim to the appropriate insurance entity for 120.16 payment. The investigating county agency or tribal program 120.17 shall submit all valid claims, in the amount net of any 120.18 insurance payments, to the department of human services. 120.19 Subd. 3. [SUBMISSION OF CLAIM.] The commissioner shall 120.20 submit all claims for permanent partial disability compensation 120.21 to the commissioner of labor and industry. The commissioner of 120.22 labor and industry shall review all submitted claims and 120.23 recommend to the department of human services an amount of 120.24 compensation comparable to that which would be provided under 120.25 the permanent partial disability compensation schedule of 120.26 section 176.101, subdivision 2a. 120.27 Subd. 4. [CLAIMS LESS THAN $1,000.] The commissioner shall 120.28 approve a claim of $1,000 or less for payment if appropriated 120.29 funds are available, if the county agency or tribal program 120.30 responsible for supervising the work has made the determinations 120.31 required by this section, and if the work program was operated 120.32 in compliance with the safety provisions of this section. The 120.33 commissioner shall pay the portion of an approved claim of 120.34 $1,000 or less that is not covered by the claimant's insurance 120.35 within three months of the date of submission. On or before 120.36 February 1 of each year, the commissioner shall submit to the 121.1 appropriate committees of the senate and the house of 121.2 representatives a list of claims of $1,000 or less paid during 121.3 the preceding calendar year and shall be reimbursed by 121.4 legislative appropriation for any claims that exceed the 121.5 original appropriation provided to the commissioner to operate 121.6 this program. Any unspent money from this appropriation shall 121.7 carry over to the second year of the biennium, and any unspent 121.8 money remaining at the end of the second year shall be returned 121.9 to the state general fund. 121.10 Subd. 5. [CLAIMS MORE THAN $1,000.] On or before February 121.11 1 of each year, the commissioner shall submit to the appropriate 121.12 committees of the senate and the house of representatives a list 121.13 of claims in excess of $1,000 and a list of claims of $1,000 or 121.14 less that were submitted to but not paid by the commissioner, 121.15 together with any recommendations of appropriate compensation. 121.16 These claims shall be heard and determined by the appropriate 121.17 committees of the senate and house of representatives and, if 121.18 approved, must be paid under the legislative claims procedure. 121.19 Subd. 6. [COMPENSATION FOR CERTAIN COSTS.] Compensation 121.20 paid under this section is limited to reimbursement for 121.21 reasonable medical expenses and permanent partial disability 121.22 compensation for disability in like amounts as allowed in 121.23 section 176.101, subdivision 2a. Compensation for injuries 121.24 resulting in death shall include reasonable medical expenses and 121.25 burial expenses in addition to payment to the participant's 121.26 estate in an amount up to $200,000. No compensation shall be 121.27 paid under this section for pain and suffering, lost wages, or 121.28 other benefits provided in chapter 176. Payments made under 121.29 this section shall be reduced by any proceeds received by the 121.30 claimant from any insurance policy covering the loss. For the 121.31 purposes of this section, "insurance policy" does not include 121.32 the medical assistance program authorized under chapter 256B or 121.33 the general assistance medical care program authorized under 121.34 chapter 256D. 121.35 Subd. 7. [EXCLUSIVE PROCEDURE.] The procedure established 121.36 by this section is exclusive of all other legal, equitable, and 122.1 statutory remedies against the state, its political 122.2 subdivisions, or employees of the state or its political 122.3 subdivisions. The claimant shall not be entitled to seek 122.4 damages from any state, county, tribal, or reservation insurance 122.5 policy or self-insurance program. 122.6 Subd. 8. [INVALID CLAIMS.] A claim is not valid for 122.7 purposes of this section if the county agency responsible for 122.8 supervising the work cannot verify to the commissioner: 122.9 (1) that appropriate safety training and information is 122.10 provided to all persons being supervised by the agency under 122.11 this section; and 122.12 (2) that all programs involving work by those persons 122.13 comply with federal Occupational Safety and Health 122.14 Administration and state department of labor and industry safety 122.15 standards. A claim that is not valid because of failure to 122.16 verify safety training or compliance with safety standards will 122.17 not be paid by the department of human services or through the 122.18 legislative claims process and must be heard, decided, and paid, 122.19 if appropriate, by the local government unit or tribal program 122.20 responsible for supervising the work of the claimant. 122.21 Sec. 56. [256J.69] [GRANT DIVERSION.] 122.22 Subdivision 1. [ESTABLISHING THE GRANT DIVERSION 122.23 PROGRAM.] (a) County agencies may develop grant diversion 122.24 programs for MFIP-S participants participating in employment and 122.25 training services. A county agency that chooses to provide 122.26 grant diversion may divert to an employer part or all of the 122.27 MFIP-S cash payment for the participant's assistance unit, in 122.28 compliance with federal regulations and laws. Such payments to 122.29 an employer are to subsidize employment for MFIP-S participants 122.30 as an alternative to public assistance payments. 122.31 (b) In addition to diverting the MFIP-S grant to the 122.32 employer, employment and training funds may be used to subsidize 122.33 the grant diversion placement. 122.34 (c) Participants in grant diversion shall be compensated by 122.35 the employer at the same rates, including periodic increases, as 122.36 similarly situated employees or trainees and in accordance with 123.1 applicable law, but in no event less than the federal or 123.2 applicable state minimum wage, whichever is higher. 123.3 Subd. 2. [TRAINING AND PLACEMENT.] (a) County agencies 123.4 shall limit the length of training to nine months. Placement in 123.5 a grant diversion training position with an employer is for the 123.6 purpose of training and employment with the same employer who 123.7 has agreed to retain the person upon satisfactory completion of 123.8 training. 123.9 (b) Placement of any participant in a grant diversion 123.10 subsidized training position must be compatible with the 123.11 assessment and employment plan or employability development plan 123.12 established for the recipient under section 256J.52 or 256K.03, 123.13 subdivision 8. 123.14 Sec. 57. [256J.72] [NONDISPLACEMENT IN WORK ACTIVITIES.] 123.15 Subdivision 1. [NONDISPLACEMENT PROTECTION.] For job 123.16 assignments under jobs programs established under this chapter 123.17 or chapter 256, 256D, or 256K, the county agency must provide 123.18 written notification to and obtain the written concurrence of 123.19 the appropriate exclusive bargaining representatives with 123.20 respect to job duties covered under collective bargaining 123.21 agreements and ensure that no work assignment under this chapter 123.22 or chapter 256, 256D, or 256K results in: 123.23 (1) termination, layoff, or reduction of the work hours of 123.24 an employee for the purpose of hiring an individual under this 123.25 section; 123.26 (2) the hiring of an individual if any other person is on 123.27 layoff, including seasonal layoff, from the same or a 123.28 substantially equivalent job; 123.29 (3) any infringement of the promotional opportunities of 123.30 any currently employed individual; 123.31 (4) the impairment of existing contract for services of 123.32 collective bargaining agreements; or 123.33 (5) a participant filling an established unfilled position 123.34 vacancy, except for on-the-job training. 123.35 The written notification must be provided to the 123.36 appropriate exclusive bargaining representatives at least 14 124.1 days in advance of placing recipients in temporary public 124.2 service employment. The notice must include the number of 124.3 individuals involved, their work locations and anticipated hours 124.4 of work, a summary of the tasks to be performed, and a 124.5 description of how the individuals will be trained and 124.6 supervised. 124.7 Subd. 2. [DISPUTE RESOLUTION.] (a) If there is a dispute 124.8 between an exclusive bargaining representative and a county 124.9 provider or employer over whether job duties are within the 124.10 scope of a collective bargaining unit, the exclusive bargaining 124.11 representative, the county, the provider, or the employer may 124.12 petition the bureau of mediation services to determine if the 124.13 job duties are within the scope of a collective bargaining unit, 124.14 and the bureau shall render a binding decision. 124.15 (b) In the event of a dispute under this section, the 124.16 parties may: 124.17 (1) use a grievance and arbitration procedure of an 124.18 existing collective bargaining agreement to process a dispute 124.19 over whether a violation of the nondisplacement provisions has 124.20 occurred; or 124.21 (2) if no grievance and arbitration procedure is in place, 124.22 either party may submit the dispute to the bureau. The 124.23 commissioner of the bureau of mediation services shall establish 124.24 a procedure for a neutral, binding resolution of the dispute. 124.25 Subd. 3. [STATUS OF PARTICIPANT.] A participant may not 124.26 work in a temporary public service or community service job for 124.27 a public employer for more than 67 working days or 536 hours, 124.28 whichever is greater, as part of a work program established 124.29 under chapter 256, 256D, 256J, or 256K. A participant who 124.30 exceeds the time limits in this subdivision is a public 124.31 employee, as that term is used in chapter 179A. Upon the 124.32 written request of the exclusive bargaining representative, a 124.33 county or public service employer shall make available to the 124.34 affected exclusive bargaining representative a report of hours 124.35 worked by participants in temporary public service or community 124.36 service jobs. 125.1 Sec. 58. [256J.74] [RELATIONSHIP TO OTHER PROGRAMS.] 125.2 Subdivision 1. [SOCIAL SERVICES.] The county agency shall 125.3 refer a participant for social services that are offered in the 125.4 county of financial responsibility according to the criteria 125.5 established by that county agency under Minnesota Rules, parts 125.6 9550.0010 to 9550.0092. A payment issued from federal funds 125.7 under title XX of the Social Security Act, state funds under the 125.8 Community Social Services Act, federal or state child welfare 125.9 funds, or county funds in a payment month must not restrict 125.10 MFIP-S eligibility or reduce the monthly assistance payment for 125.11 that participant. 125.12 Subd. 2. [CONCURRENT ELIGIBILITY, LIMITATIONS.] A county 125.13 agency must not count an applicant or participant as a member of 125.14 more than one assistance unit in a given payment month, except 125.15 as provided in clauses (1) and (2). 125.16 (1) A participant who is a member of an assistance unit in 125.17 this state is eligible to be included in a second assistance 125.18 unit in the first full month that the participant leaves the 125.19 first assistance unit and lives with a second assistance unit. 125.20 (2) An applicant whose needs are met through foster care 125.21 that is reimbursed under title IV-E of the Social Security Act 125.22 for the first part of an application month is eligible to 125.23 receive assistance for the remaining part of the month in which 125.24 the applicant returns home. Title IV-E payments and adoption 125.25 assistance payments must be considered prorated payments rather 125.26 than a duplication of MFIP-S need. 125.27 Subd. 3. [EMERGENCY ASSISTANCE, ASSISTANCE UNIT WITH A 125.28 MINOR CHILD.] An MFIP-S assistance unit with a minor child or a 125.29 pregnant woman without a minor child is eligible for emergency 125.30 assistance when the assistance unit meets the requirements in 125.31 section 256J.48, subdivision 2. 125.32 Subd. 4. [MEDICAL ASSISTANCE.] Medical assistance 125.33 eligibility for MFIP-S participants shall be determined as 125.34 described in chapter 256B. 125.35 Sec. 59. [256J.75] [COUNTY OF FINANCIAL RESPONSIBILITY 125.36 POLICIES.] 126.1 Subdivision 1. [COUNTY OF FINANCIAL RESPONSIBILITY.] The 126.2 county of financial responsibility is the county in which a 126.3 minor child or pregnant woman lives on the date the application 126.4 is signed, unless subdivision 4 applies. When more than one 126.5 county is financially responsible for the members of an 126.6 assistance unit, financial responsibility must be assigned to a 126.7 single county beginning the first day of the calendar month 126.8 after the assistance unit members are required to be in a single 126.9 assistance unit. Financial responsibility must be assigned to 126.10 the county that was initially responsible for the assistance 126.11 unit member with the earliest date of application. The county 126.12 in which the assistance unit is currently residing becomes 126.13 financially responsible for the entire assistance unit beginning 126.14 two full calendar months after the month in which financial 126.15 responsibility was consolidated in one county. 126.16 Subd. 2. [CHANGE IN RESIDENCE.] (a) When an assistance 126.17 unit moves from one county to another and continues to receive 126.18 assistance, the new county of residence becomes the county of 126.19 financial responsibility when that assistance unit has lived in 126.20 that county in nonexcluded status for two full calendar months. 126.21 "Nonexcluded status" means the period of residence that is not 126.22 considered excluded time under section 256G.02, subdivision 6. 126.23 When a minor child moves from one county to another to reside 126.24 with a different caregiver, the caregiver in the former county 126.25 is eligible to receive assistance for that child only through 126.26 the last day of the month of the move. The caregiver in the new 126.27 county becomes eligible to receive assistance for the child the 126.28 first day of the month following the move or the date of 126.29 application, whichever is later. 126.30 (b) When an applicant moves from one county to another 126.31 while the application is pending, the county where application 126.32 first occurred is the county of financial responsibility until 126.33 the applicant has lived in the new county for two full calendar 126.34 months, unless the applicant's move is covered under section 126.35 256G.02, subdivision 6. 126.36 Subd. 3. [RESPONSIBILITY FOR INCORRECT ASSISTANCE 127.1 PAYMENTS.] A county of residence, when different from the county 127.2 of financial responsibility, will be charged by the commissioner 127.3 for the value of incorrect assistance payments and medical 127.4 assistance paid to or on behalf of a person who was not eligible 127.5 to receive that amount. Incorrect payments include payments to 127.6 an ineligible person or family resulting from decisions, 127.7 failures to act, miscalculations, or overdue recertification. 127.8 However, financial responsibility does not accrue for a county 127.9 when the recertification is overdue at the time the referral is 127.10 received by the county of residence or when the county of 127.11 financial responsibility does not act on the recommendation of 127.12 the county of residence. When federal or state law requires 127.13 that medical assistance continue after assistance ends, this 127.14 subdivision also governs financial responsibility for the 127.15 extended medical assistance. 127.16 Subd. 4. [EXCLUDED TIME.] When an applicant or participant 127.17 resides in an excluded time facility as described in section 127.18 256G.02, subdivision 6, the county that is financially 127.19 responsible for the applicant or participant is the county in 127.20 which the applicant or participant last resided outside such a 127.21 facility immediately before entering the facility. When an 127.22 applicant or participant has not resided in this state for any 127.23 time other than excluded time as defined in section 256G.02, 127.24 subdivision 6, the county that is financially responsible for 127.25 the applicant or participant is the county in which the 127.26 applicant or participant resides on the date the application is 127.27 signed. 127.28 Sec. 60. [256J.76] [COUNTY ADMINISTRATIVE AID.] 127.29 Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July 127.30 1, 1997, counties will receive federal funds from the TANF block 127.31 grant for use in supporting eligibility, fraud control, and 127.32 other related administrative functions. The federal funds 127.33 available for distribution, as determined by the commissioner, 127.34 must be an amount equal to federal administrative aid 127.35 distributed for fiscal year 1996 under titles IV-A and IV-F of 127.36 the Social Security Act in effect prior to October 1, 1996. 128.1 This amount must include the amount paid for local 128.2 collaboratives under sections 245.4932 and 256F.13, but must not 128.3 include administrative aid associated with child care under 128.4 section 119B.05, with emergency assistance intensive family 128.5 preservation services under section 256.8711, with 128.6 administrative activities as part of the employment and training 128.7 services under section 256.736, or with fraud prevention 128.8 investigation activities under section 256.983. 128.9 Subd. 2. [ALLOCATION OF COUNTY FUNDS.] The commissioner 128.10 shall determine and allocate the funds available to each county, 128.11 on a calendar year basis, proportional to the amount paid to 128.12 each county for fiscal year 1996, excluding the amount paid for 128.13 local collaboratives under sections 245.4932 and 256F.13. For 128.14 the period beginning July 1, 1997, and ending December 31, 1998, 128.15 each county shall receive 150 percent of its base year 128.16 allocation. 128.17 Subd. 3. [MONTHLY PAYMENTS TO COUNTIES.] The commissioner 128.18 shall pay counties monthly as federal funds are available. The 128.19 commissioner may certify the payments for the first three months 128.20 of a calendar year. 128.21 Subd. 4. [REPORTING REQUIREMENT.] The commissioner shall 128.22 specify requirements for reporting according to section 256.01, 128.23 subdivision 2, paragraph (17). Each county shall be reimbursed 128.24 at a rate of 50 percent of eligible expenditures up to the limit 128.25 of its allocation. 128.26 Sec. 61. [NOTICE AND REFERRAL PROCEDURES FOR DOMESTIC 128.27 VIOLENCE VICTIMS.] 128.28 The commissioner of human services shall develop procedures 128.29 for the county agencies and their contractors to identify 128.30 victims of domestic violence. The procedures must provide, at a 128.31 minimum, universal notification to all applicants and recipients 128.32 of MFIP-S that: 128.33 (1) referrals to counseling and supportive services are 128.34 available for victims of domestic violence; 128.35 (2) nonpermanent resident battered individuals married to 128.36 U.S. citizens or permanent residents may be eligible to petition 129.1 for permanent residency under the Violence Against Women Act, 129.2 and that referrals to appropriate legal services are available; 129.3 and 129.4 (3) victims of domestic violence are exempt from the 129.5 60-month limit on assistance while the individual is complying 129.6 with an approved safety plan, as defined in section 256J.49, 129.7 subdivision 11. 129.8 Notification must be in writing and orally at the time of 129.9 application and recertification, when the individual is referred 129.10 to the title IV-D child support agency, and at the beginning of 129.11 any job training or work placement assistance program. 129.12 Sec. 62. [DISCONTINUATION OF WAIVERS.] 129.13 If the federal government refuses to continue waivers 129.14 granted on or before August 11, 1996, or if the federal 129.15 government refuses to modify such waivers as requested by the 129.16 department of human services, then the department of human 129.17 services may implement the MFIP-S program in compliance with the 129.18 federal mandate until the end of the next legislative session. 129.19 The department of human services shall publish its decision to 129.20 implement the federal mandate in the State Register and propose 129.21 legislation to address the conflict in the next legislative 129.22 session. 129.23 Sec. 63. [COUNTY PERFORMANCE STANDARDS.] 129.24 (a) Beginning July 1, 1998, and each quarter thereafter, 129.25 the commissioner of human services shall inform all counties of 129.26 each county's performance on the following measures: 129.27 (1) MFIP-S caseload reduction; 129.28 (2) average placement wage rate; 129.29 (3) rate of job retention after three months; 129.30 (4) placement rate into unsubsidized jobs; 129.31 (5) federal participation requirements as specified in 129.32 title 1 of Public Law Number 104-193 of the Personal 129.33 Responsibility and Work Opportunity Act of 1996; 129.34 (6) the average length of time an individual receives 129.35 public assistance, beginning with new MFIP-S applicants, and the 129.36 rate of recidivism; and 130.1 (7) the cost per placement of an individual in unsubsidized 130.2 employment. 130.3 (b) By January 1, 1998, the counties and the commissioner 130.4 shall establish performance standards for each of the measures 130.5 in paragraph (a). 130.6 (c) By July 1, 1998, the counties and the commissioner 130.7 shall develop a plan to allocate, if such sanctions occur, 130.8 federal sanctions between the state and counties resulting from 130.9 a failure to meet the performance standards specified in title 1 130.10 of Public Law Number 104-193 of the Personal Responsibility and 130.11 Work Opportunity Act of 1996. 130.12 (d) The commissioner shall report the plan to the 130.13 legislature by October 1, 1998. 130.14 Sec. 64. [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 130.15 Subdivision 1. [FINDINGS.] For purposes of Minnesota 130.16 Statutes, sections 256J.12 and 256J.43, the legislature makes 130.17 the following findings: 130.18 (1) the legislature is statutorily required to balance the 130.19 state budget, and, in balancing the state budget, faces 130.20 competing funding priorities with limited resources; 130.21 (2) the legislature expects that federal financial support 130.22 for state-administered welfare programs, including the Minnesota 130.23 family investment program, will decrease in the wake of the 130.24 federal welfare reform legislation; 130.25 (3) many states are using the flexibility given to them 130.26 under the federal welfare reform legislation to enact more 130.27 restrictive welfare programs than Minnesota; 130.28 (4) despite likely weaker federal financial support and the 130.29 trend in other states toward more restrictive welfare programs, 130.30 the legislature wishes to continue to reform the state's welfare 130.31 system and manage funds appropriated for the Minnesota family 130.32 investment program so that the state may provide meaningful 130.33 assistance for all needy Minnesota families and their children; 130.34 (5) the legislature intends to provide a safety net for 130.35 recent interstate migrants and to encourage their 130.36 self-sufficiency; 131.1 (6) Minnesota county human service agencies have reported 131.2 to the commissioner of human services verified cases of 131.3 individuals from other states to this state at least in part 131.4 because this state has higher cash assistance benefits; 131.5 (7) the legislature anticipates that, as other states 131.6 further restrict their welfare programs, migration to this state 131.7 by families seeking higher welfare benefits will increase 131.8 significantly and may cause expenditures in excess of the funds 131.9 appropriated for this program; 131.10 (8) the policy of the state of Minnesota is to make welfare 131.11 benefits a neutral factor in a family's decision to move to 131.12 Minnesota, which is required for the state to continue its 131.13 commitment to reform its welfare system and to provide 131.14 meaningful assistance for needy Minnesota families and their 131.15 children; 131.16 (9) if new residents experience any harm under Minnesota 131.17 Statutes, sections 256J.12 and 256J.43, such harm is mitigated, 131.18 since new residents, if eligible, can receive benefits 131.19 immediately under a hardship exemption; and in all cases, if 131.20 eligible, can receive cash assistance after 30 days; if 131.21 eligible, they will receive the cash assistance based on the 131.22 assistance standard they would have received in their previous 131.23 state of residence for families of the same size; 131.24 (10) without Minnesota Statutes, sections 256J.12 and 131.25 256J.43, the hardship to the state and its needy families and 131.26 children would be great because significant reductions in 131.27 welfare benefits will likely occur; and 131.28 (11) Minnesota Statutes, sections 256J.12 and 256J.43, 131.29 advance the public interest of continuing to provide meaningful 131.30 assistance to needy Minnesota families and their children while 131.31 providing a safety net for recent interstate migrants. 131.32 Subd. 2. [REDUCTION IF COURT ENJOINMENT.] In the event a 131.33 court enjoins enforcement of Minnesota Statutes, section 256J.12 131.34 or 256J.43, this subdivision shall apply. Beginning July 1, 131.35 1997, the commissioner of human services shall monitor the 131.36 number of individual applicants for AFDC under Minnesota 132.1 Statutes, chapter 256, and for public assistance under this 132.2 chapter who have lived in this state for less than 12 132.3 consecutive months and shall implement clauses (1) to (3) when 132.4 the commissioner determines that the cumulative number of such 132.5 applicants since July 1, 1997, has reached at least 1,500. The 132.6 commissioner shall: 132.7 (1) reduce the assistance standards for the AFDC program 132.8 and the transitional standards for the MFIP-S program under this 132.9 chapter for all recipients but only in an amount sufficient to 132.10 remain within the forecasted budgets for those programs; 132.11 reductions shall take effect beginning with payments made at the 132.12 start of the second calendar month following the commissioner's 132.13 determination that the conditions specified in this paragraph 132.14 have occurred; make caregivers who have lived in this state for 132.15 less than 12 consecutive months ineligible for child care 132.16 assistance provided through the AFDC, MFIP-S, MFIP-R, and MFIP 132.17 programs, and the basic sliding fee child care program. 132.18 Education and training are not work activities for purposes of 132.19 caregivers who have lived in this state for less than 12 132.20 months. These caregivers shall immediately comply with job 132.21 search requirements until there is an offer of suitable 132.22 employment, and the caregiver shall accept any offer of suitable 132.23 employment; 132.24 (2) notify the fiscal and policy chairs of the house and 132.25 senate human services committees that the reductions have taken 132.26 place; and 132.27 (3) formulate a plan to be presented to the next 132.28 legislative session. 132.29 Sec. 65. [TRANSFER FUNDING.] 132.30 Effective July 1, 1997, all funding related to the child 132.31 care assistance programs under Minnesota Statutes, section 132.32 256.035, subdivision 8, is transferred to the commissioner of 132.33 children, families, and learning. 132.34 Sec. 66. [TRIBAL EMPLOYMENT AND TRAINING PROGRAM; REPORT.] 132.35 Subdivision 1. [AUTHORITY.] Effective July 1, 1997, the 132.36 commissioner of human services, in conjunction with Indian 133.1 tribes in the state, shall develop and present to the 133.2 legislature a plan for providing state funds in support of a 133.3 family assistance program administered by Indian tribes that 133.4 have a reservation in this state and have federal approval to 133.5 operate a tribal program. This plan must identify the primary 133.6 arrangements needed to effect tribal administration and needed 133.7 funding, including agreements with a consortium of tribes, that 133.8 accurately reflect the state funding levels for Indian people as 133.9 would otherwise be available to MFIP-S program recipients. This 133.10 plan must be developed consistent with the requirements set 133.11 forth in the Personal Responsibility and Work Opportunity 133.12 Reconciliation Act of 1996, Public Law Number 104-193, section 133.13 412(b)(1)(B). For purposes of this section, "Indian tribe" 133.14 means a tribe, band, nation, or other federally recognized group 133.15 or community of Indians. 133.16 Subd. 2. [REPORT TO THE LEGISLATURE.] The plan referred to 133.17 in subdivision 1 and any resulting proposal for legislation must 133.18 be presented to the legislature by December 15, 1997. 133.19 Subd. 3. [TRIBAL AGREEMENTS.] Once the plan in subdivision 133.20 1 is presented to and approved by the legislature and signed 133.21 into law, the commissioner is authorized to enter into 133.22 agreements with Indian tribes or consortia of tribes consistent 133.23 with the plan. 133.24 Subd. 4. [TRIBAL AND STATE COORDINATION.] The commissioner 133.25 shall consult with Indian tribes in the state when formulating 133.26 general policies regarding the implementation of the state's 133.27 public assistance program operated under title IV-A of the 133.28 Social Security Act. The commissioner shall take into 133.29 consideration circumstances affecting Indians, including 133.30 circumstances identified by Indian tribes, when designing the 133.31 state's program. The state shall provide Indians with equitable 133.32 access to assistance as provided in the Personal Responsibility 133.33 and Work Opportunity Reconciliation Act of 1996, Public Law 133.34 Number 104-193, section 402(a)(5). 133.35 Subd. 5. [EMPLOYMENT TRAINING.] Nothing in this section 133.36 precludes any Indian tribe in this state from participating in 134.1 employment and training or child care programs otherwise 134.2 available by law to Indian tribes under: 134.3 (1) the MFIP program under Minnesota Statutes, sections 134.4 256.031 to 256.0361, or its successor program; 134.5 (2) project STRIDE under Minnesota Statutes, section 134.6 256.736, or its successor program; 134.7 (3) child care programs for tribal program participants; 134.8 and 134.9 (4) the Minnesota injury protection program. 134.10 Subd. 6. [TRIBAL SOVEREIGN STATUS.] Nothing in this 134.11 section shall be construed to waive, modify, expand, or diminish 134.12 the sovereignty of federally recognized Indian tribes, nor shall 134.13 any Indian tribes be required in any way to deny their 134.14 sovereignty or waive their immunities except as mandated by 134.15 federal law as a requirement of entering into an agreement with 134.16 the state under this section. 134.17 Subd. 7. [PLANNING.] The commissioner of human services 134.18 shall assist tribes, in a collaborative effort, with the 134.19 development of the plan under subdivision 1 and efforts 134.20 associated with such development. Such efforts shall include, 134.21 but not be limited to, data collection regarding: receipt of 134.22 public assistance by Indians, unemployment rates within tribal 134.23 service delivery areas, and dissemination of information and 134.24 research. The commissioner shall provide technical assistance 134.25 to tribal welfare reform task force members and tribes regarding 134.26 the implementation and operation of public assistance programs 134.27 and assistance to tribes to develop the plan under subdivision 1. 134.28 Sec. 67. [FORECASTING FUNDS.] 134.29 The MFIP-S program is not an entitlement. For the 134.30 assistance to families grants part of the budget, the 134.31 commissioner of human services shall not expend more funds than 134.32 the appropriations made available by the legislature. 134.33 Appropriations made available must include the state 134.34 appropriated funds and federal funds specified for this purpose 134.35 and other available funds transferred from other accounts as 134.36 allowed by Minnesota law. Regardless of this limitation on 135.1 expenditures, the total projected costs of this program must be 135.2 forecasted and recognized in the fund balance. 135.3 Sec. 68. [STUDY; NONCUSTODIAL MINOR PARENTS.] 135.4 The commissioner shall study and report back to the 135.5 legislature by February 1, 1998, with recommendations for 135.6 legislative changes related to minor parents and the obligations 135.7 of noncustodial minor parents and their parents to cover the 135.8 cost of caring for the custodial parent and child who are living 135.9 in households specified in Minnesota Statutes, section 256J.14, 135.10 subdivision 1, paragraph (a), or in other adult-supervised 135.11 living arrangements. 135.12 Sec. 69. [ADMINISTRATIVE RULES.] 135.13 The commissioner of human services may adopt rules to 135.14 implement Minnesota Statutes, chapters 256J and 256K. Because 135.15 of the need for flexible and swift means of implementing this 135.16 program statewide, the rules adopted by the commissioner to 135.17 implement this program are exempted from Minnesota Statutes, 135.18 chapter 14, until February 28, 1999. The commissioner shall 135.19 prepare legislation for submission to the legislature in 1998 135.20 incorporating the substance of any rules adopted under this 135.21 section and repealing those rules. 135.22 Sec. 70. [STUDY OF WORKING FAMILIES EXCEPTION TO 60-MONTH 135.23 LIMIT.] 135.24 The commissioner of human services shall report to the 135.25 legislature by January 15, 1998, on the feasibility of 135.26 establishing an exception to the 60-month lifetime limit on 135.27 TANF-funded assistance for families in which the caregiver or 135.28 caregivers are employed for a substantial number of hours each 135.29 week or are both employed and attending an educational program. 135.30 Sec. 71. [TOTAL HOUSEHOLD INCOME COUNTED.] 135.31 Effective January 1, 1999, notwithstanding any provision of 135.32 Minnesota Statutes, chapter 256J, to the contrary, eligibility 135.33 for assistance under Minnesota Statutes, chapter 256J, the 135.34 Minnesota family investment program-statewide, must count income 135.35 from all unrelated individuals living in the household in order 135.36 to qualify for MFIP-S assistance. 136.1 Sec. 72. [REPAYMENT OF POST-SECONDARY EDUCATION FUNDS; 136.2 PROPOSAL REQUIRED.] 136.3 By February 15, 1998, the commissioner of human services, 136.4 in consultation with representatives of county agencies, must 136.5 develop and submit to the legislature a proposal that specifies 136.6 a methodology for the repayment of funds under Minnesota 136.7 Statutes 1996, section 256J.53, subdivision 4. The 136.8 commissioner's proposal must not apply the methodology 136.9 retroactively to participants who had a post-secondary education 136.10 or training program approved under that section before the date 136.11 that the commissioner's proposal, if enacted, becomes effective. 136.12 Sec. 73. [SEVERABILITY CLAUSE.] 136.13 If any provision of this act is enjoined from 136.14 implementation or found unconstitutional by any court of 136.15 competent jurisdiction, the remaining provisions shall remain 136.16 valid and shall be given full effect. 136.17 Sec. 74. [REPEALER.] 136.18 (a) Minnesota Statutes 1996, sections 256.12, subdivisions 136.19 9, 10, 14, 15, 19, 20, 21, 22, and 23; 256.72; 256.73, 136.20 subdivisions 1, 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 10, and 136.21 11; 256.7341; 256.7365, subdivisions 1, 2, 3, 4, 5, 6, 7, and 9; 136.22 256.7366; 256.737; 256.738; 256.7381; 256.7382; 256.7383; 136.23 256.7384; 256.7385; 256.7386; 256.7387; 256.7388; 256.739; 136.24 256.74, subdivisions 1, 1a, 1b, 2, and 6; 256.745; 256.75; 136.25 256.76, subdivision 1; 256.78; 256.80; 256.81; 256.84; 256.85; 136.26 256.86; 256.863; 256.871; and 256.879, are repealed effective 136.27 July 1, 1998. 136.28 (b) Minnesota Statutes 1996, section 256.736, subdivisions 136.29 16 and 18, are repealed effective June 30, 1997. 136.30 (c) From January 1, 1998, to March 31, 1998, the statutory 136.31 sections listed in paragraph (a) apply only in counties that 136.32 operate an MFIP field trial and that continue to provide project 136.33 STRIDE services to members of the MFIP comparison group, and in 136.34 those counties that have not completed conversion to MFIP-S 136.35 employment and training services. 136.36 (d) From April 1, 1998, through June 30, 1998, the sections 137.1 listed in paragraph (a) are effective only in counties that 137.2 operate an MFIP field trial and that continue to provide project 137.3 STRIDE services to members of the comparison group. 137.4 Sec. 75. [EFFECTIVE DATE.] 137.5 (a) Sections 2, 7, 8, 16, 32, 33, 60, 61, and 64 are 137.6 effective July 1, 1997. 137.7 (b) The remaining provisions of this article are effective 137.8 January 1, 1998, unless otherwise specified in the section. 137.9 ARTICLE 2 137.10 WORK FIRST PROGRAM PILOT PROJECTS 137.11 Section 1. [256K.01] [WORK FIRST PROGRAM.] 137.12 Subdivision 1. [CITATION.] Sections 256K.01 to 256K.09 may 137.13 be cited as the work first program. 137.14 Subd. 2. [DEFINITIONS.] As used in sections 256K.01 to 137.15 256K.09, the following words have the meanings given them. 137.16 (a) "Applicant" means an individual who has submitted a 137.17 request for assistance and has never received an AFDC, MFIP-S or 137.18 a family general assistance grant through the MAXIS computer 137.19 system as a caregiver, or an applicant whose AFDC, MFIP-S or 137.20 family general assistance application was denied or benefits 137.21 were terminated due to noncompliance with work first 137.22 requirements. 137.23 (b) "Application date" means the date any Minnesota county 137.24 agency receives a signed and dated combined application form 137.25 Part I. 137.26 (c) "CAF" means a combined application form on which people 137.27 apply for multiple assistance programs, including: cash 137.28 assistance, refugee cash assistance, Minnesota supplemental aid, 137.29 food stamps, medical assistance, general assistance medical 137.30 care, emergency assistance, emergency medical assistance, and 137.31 emergency general assistance medical care. 137.32 (d) "Caregiver" means a parent or eligible adult, including 137.33 a pregnant woman, who is part of the assistance unit that has 137.34 applied for or is receiving an AFDC, MFIP-S, or family general 137.35 assistance grant. In a two-parent family, both parents are 137.36 caregivers. 138.1 (e) "Child support" means a voluntary or court-ordered 138.2 payment by absent parents in an assistance unit. 138.3 (f) "Commissioner" means the commissioner of human services. 138.4 (g) "Department" means the department of human services. 138.5 (h) "Employability development plan" or "EDP" means a plan 138.6 developed by the applicant, with advice from the employment 138.7 advisor, for the purposes of identifying an employment goal, 138.8 improving work skills through certification or education, 138.9 training or skills recertification, and which addresses barriers 138.10 to employment. 138.11 (i) "EDP status report form" means a program form on which 138.12 deferred participants indicate what has been achieved in the 138.13 participant's employability development plan and the types of 138.14 problems encountered. 138.15 (j) "Employment advisor" means a program staff member who 138.16 is qualified to assist the participant to develop a job search 138.17 or employability development plan, match the participant with 138.18 existing job openings, refer the participant to employers, and 138.19 has an extensive knowledge of employers in the area. 138.20 (k) "Financial specialist" means a program staff member who 138.21 is trained to explain the benefits offered under the program, 138.22 determine eligibility for different assistance programs, and 138.23 broker other resources from employers and the community. 138.24 (l) "Job network" means individuals that a person may 138.25 contact to learn more about particular companies, inquire about 138.26 job leads, or discuss occupational interests and expertise. 138.27 (m) "Job search allowance" means the amount of financial 138.28 assistance needed to support job search. 138.29 (n) "Job search plan" or "JSP" means the specific plan 138.30 developed by the applicant, with advice from the employment 138.31 advisor, to secure a job as soon as possible, and focus the 138.32 scope of the job search process and other activities. 138.33 (o) "JSP status report form" means a program form on which 138.34 participants indicate the number of submitted job applications, 138.35 job interviews held, jobs offered, other outcomes achieved, 138.36 problems encountered, and the total number of hours spent on job 139.1 search per week. 139.2 (p) "Participant" means a recipient who is required to 139.3 participate in the work first program. 139.4 (q) "Program" means the work first program. 139.5 (r) "Provider" means an employment and training agency 139.6 certified by the commissioner of economic security under section 139.7 268.871, subdivision 1. 139.8 (s) "Self-employment" means employment where people work 139.9 for themselves rather than an employer, are responsible for 139.10 their own work schedule, and do not have taxes or FICA withheld 139.11 by an employer. 139.12 (t) "Self-sufficiency agreement" means the agreement 139.13 between the county or its representative and the applicant that 139.14 describes the activities that the applicant must conduct and the 139.15 necessary services and aid to be furnished by the county to 139.16 enable the individual to meet the purpose of either the job 139.17 search plan or employability development plan. 139.18 (u) "Subsidized job" means a job that is partly reimbursed 139.19 by the provider for cost of wages for participants in the 139.20 program. 139.21 Subd. 3. [ESTABLISHING WORK FIRST PROGRAM.] The 139.22 commissioners of human services and economic security may 139.23 develop and establish pilot projects which require applicants 139.24 for aid under AFDC, MFIP-S or family general assistance to meet 139.25 the requirements of the work first program. The purpose of the 139.26 program is to: 139.27 (1) ensure that the participant is working as early as 139.28 possible; 139.29 (2) promote greater opportunity for economic self-support, 139.30 participation, and mobility in the work force; and 139.31 (3) minimize the risk for long-term welfare dependency. 139.32 Subd. 4. [PROGRAM ADMINISTRATION.] The program must be 139.33 administered in a way that, in addition to the county agency, 139.34 other sectors in the community such as employers from the public 139.35 and private sectors, not-for-profit organizations, educational 139.36 and social service agencies, labor unions, and neighborhood 140.1 associations are involved. 140.2 Subd. 5. [PROGRAM DESIGN.] The program shall meet the 140.3 following principles: 140.4 (1) work is the primary means of economic support; 140.5 (2) the individual's potential is reviewed during the 140.6 application process to determine how to approach the job market 140.7 aggressively; 140.8 (3) public aid such as cash and medical assistance, child 140.9 care, child support assurance, and other cash benefits are used 140.10 to support intensive job search and immediate work; and 140.11 (4) maximum use is made of tax credits to supplement income. 140.12 Subd. 6. [DUTIES OF COMMISSIONER.] In addition to any 140.13 other duties imposed by law, the commissioner shall: 140.14 (1) establish the program according to sections 256K.01 to 140.15 256K.09 and allocate money as appropriate to pilot counties 140.16 participating in the program; 140.17 (2) provide systems development and staff training; 140.18 (3) accept and supervise the disbursement of any funds that 140.19 may be provided from other sources for use in the demonstration 140.20 program; and 140.21 (4) direct a study to safeguard the interests of children. 140.22 Subd. 7. [DUTIES OF COUNTY AGENCY.] The county agency 140.23 shall: 140.24 (1) collaborate with the commissioners of human services 140.25 and economic security and other agencies to develop, implement, 140.26 and evaluate the demonstration of the work first program; 140.27 (2) operate the work first program in partnership with 140.28 private and public employers, local industry councils, labor 140.29 unions, and employment, educational, and social service 140.30 agencies, according to subdivision 4; and 140.31 (3) ensure that program components such as client 140.32 orientation, immediate job search, job development, creation of 140.33 temporary public service jobs, job placements, and postplacement 140.34 follow-up are implemented according to the work first program. 140.35 Subd. 8. [DUTIES OF PARTICIPANT.] To be eligible for an 140.36 AFDC, MFIP-S or family general assistance benefit, a participant 141.1 shall cooperate with the county agency, the provider, and the 141.2 participant's employer in all aspects of the program. 141.3 Sec. 2. [256K.015] [ELIGIBILITY FOR WORK FIRST.] 141.4 To be eligible for work first, an applicant must meet the 141.5 eligibility requirements of AFDC or MFIP-S, whichever is in 141.6 effect in the county, to the extent that those requirements are 141.7 not inconsistent with this chapter. 141.8 Sec. 3. [256K.02] [PROGRAM PARTICIPANTS; PROGRAM 141.9 EXPECTATIONS.] 141.10 All applicants selected for participation are expected to 141.11 meet the requirements under the work first program. Payments 141.12 for rent and utilities up to the AFDC, MFIP-S, or family general 141.13 assistance program benefits to which the assistance unit is 141.14 entitled will be vendor paid for as many months as the applicant 141.15 is eligible or six months, whichever comes first. The residual 141.16 amount after vendor payment, if any, will be paid to the 141.17 recipient, unless it is used as a wage subsidy under section 141.18 256K.04, subdivision 2. 141.19 Sec. 4. [256K.03] [PROGRAM REQUIREMENTS.] 141.20 Subdivision 1. [NOTIFICATION OF PROGRAM.] Except for the 141.21 provisions in this section, the provisions for the AFDC, MFIP-S, 141.22 and family general assistance application process shall be 141.23 followed. Within two days after receipt of a completed combined 141.24 application form, the county agency must refer to the provider 141.25 the applicant who meets the conditions under section 256K.02, 141.26 and notify the applicant in writing of the program including the 141.27 following provisions: 141.28 (1) notification that, as part of the application process, 141.29 applicants are required to attend orientation, to be followed 141.30 immediately by a job search; 141.31 (2) the program provider, the date, time, and location of 141.32 the scheduled program orientation; 141.33 (3) the procedures for qualifying for and receiving 141.34 benefits under the program; 141.35 (4) the immediate availability of supportive services, 141.36 including, but not limited to, child care, transportation, 142.1 medical assistance, and other work-related aid; and 142.2 (5) the rights, responsibilities, and obligations of 142.3 participants in the program, including, but not limited to, the 142.4 grounds for exemptions and deferrals, the consequences for 142.5 refusing or failing to participate fully, and the appeal process. 142.6 Subd. 2. [PROGRAM ORIENTATION.] The county must give a 142.7 face-to-face orientation regarding the program to the applicant 142.8 within five days after the date of application. The orientation 142.9 must be designed to inform the applicant of: 142.10 (1) the importance of locating and obtaining a job as soon 142.11 as possible; 142.12 (2) benefits to be provided to support work; 142.13 (3) the manner by which benefits shall be paid; 142.14 (4) how other supportive services such as medical 142.15 assistance, child care, transportation, and other work-related 142.16 aid shall be available to support job search and work; 142.17 (5) the consequences for failure without good cause to 142.18 comply with program requirements; and 142.19 (6) the appeal process. 142.20 Subd. 3. [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 142.21 SPECIALIST.] At the end of orientation, the provider must assign 142.22 an employment advisor and a financial specialist to the 142.23 applicant. With advice from the employment advisor, the 142.24 applicant must develop a job search plan based on existing job 142.25 markets, prior employment, work experience, and transferable 142.26 work skills, unless exempt under subdivision 5. A job search 142.27 must be planned and conducted for a period of up to eight 142.28 consecutive weeks from the date of application and for at least 142.29 32 hours per week. The types of and target number of job 142.30 openings to be pursued per week must be written in the job 142.31 search plan. The following activities may be included in the 142.32 job search plan: 142.33 (1) motivational counseling; 142.34 (2) job networking or training on how to locate job 142.35 openings; 142.36 (3) development of a personal resume; and 143.1 (4) information on how to conduct job interviews and 143.2 establish a personal job network. 143.3 Following the development of the job search plan or the 143.4 employability development plan under subdivision 8, the 143.5 financial specialist must interview the applicant to determine 143.6 eligibility for and the extent of benefits under sections 143.7 256K.06 and 256K.07 to support the job search or employability 143.8 development plan. The provider must attach to the appropriate 143.9 plan the summary of the necessary enabling services and benefits 143.10 to be furnished by the provider. The provider or its 143.11 representative and the applicant must sign the plan, with its 143.12 attachment, to indicate a self-sufficiency agreement between the 143.13 provider and the participant. 143.14 Subd. 4. [IMMEDIATE JOB SEARCH.] An applicant must be 143.15 required to begin job search within seven days after the date of 143.16 application for at least 32 hours per week for up to eight 143.17 weeks, unless exempt under subdivision 5 or deferred under 143.18 subdivision 8. For an applicant who is working at least 20 143.19 hours per week, job search shall consist of 12 hours per week 143.20 for up to eight weeks. Within the first five days of job 143.21 search, the applicant is required to initiate informational 143.22 contacts with prospective employers, generate additional job 143.23 leads from the job network, review references and experiences 143.24 from previous employment, and carry out the other activities 143.25 under the job search plan developed under subdivision 3. 143.26 Subd. 5. [EXEMPTION CATEGORIES.] (a) The applicant will be 143.27 exempt from the job search requirements and development of a job 143.28 search plan and an employability development plan under 143.29 subdivisions 3, 4, and 8 if the applicant belongs to any of the 143.30 following groups: 143.31 (1) caregivers under age 20 who have not completed a high 143.32 school education and are attending high school on a full-time 143.33 basis; 143.34 (2) individuals who are age 60 or older; 143.35 (3) individuals who are suffering from a professionally 143.36 certified permanent or temporary illness, injury, or incapacity 144.1 which is expected to continue for more than 30 days and which 144.2 prevents the person from obtaining or retaining employment; 144.3 (4) caregivers whose presence in the home is needed because 144.4 of illness or incapacity of another member in the household; 144.5 (5) women who are pregnant, if it has been medically 144.6 verified that the child is expected to be born within the next 144.7 six months; 144.8 (6) caregivers or other caregiver relatives of a child 144.9 under the age of three who personally provide full-time care for 144.10 the child; 144.11 (7) individuals employed at least 30 hours per week; 144.12 (8) individuals for whom participation would require a 144.13 round trip commuting time by available transportation of more 144.14 than two hours, excluding transporting of children for child 144.15 care; 144.16 (9) individuals for whom lack of proficiency in English is 144.17 a barrier to employment, provided such individuals are 144.18 participating in an intensive program which lasts no longer than 144.19 six months and is designed to remedy their language deficiency; 144.20 (10) individuals who, because of advanced age or lack of 144.21 ability, are incapable of gaining proficiency in English, as 144.22 determined by the county social worker, shall continue to be 144.23 exempt under this subdivision and are not subject to the 144.24 requirement that they be participating in a language program; 144.25 (11) individuals under such duress that they are incapable 144.26 of participating in the program, as determined by the county 144.27 social worker; or 144.28 (12) individuals in need of refresher courses for purposes 144.29 of obtaining professional certification or licensure. 144.30 (b) In a two-parent family, only one caregiver may be 144.31 exempted under paragraph (a), clauses (4) and (6). 144.32 Subd. 6. [COUNTY DUTIES.] The county must act on the 144.33 application within 30 days of the application date. If the 144.34 applicant is not eligible, the application will be denied and 144.35 the county must notify the applicant of the denial in writing. 144.36 An applicant whose application has been denied may be allowed to 145.1 complete the job search plan; however, supportive services will 145.2 not be provided. 145.3 Subd. 7. [JOB SEARCH PLAN STATUS REPORT.] The applicant or 145.4 participant must submit a completed job search plan status 145.5 report form to the employment advisor every two weeks during the 145.6 job search process, with the first completed form due 21 days 145.7 after the date of application. 145.8 Subd. 8. [EMPLOYABILITY DEVELOPMENT PLAN.] At the 145.9 discretion and approval of the employment advisor, the applicant 145.10 may be deferred from the requirement to conduct at least 32 145.11 hours of job search per week for up to eight consecutive weeks, 145.12 if during the development of the job search plan, the applicant 145.13 is determined to: 145.14 (1) not have worked within the past 12 months and not have 145.15 a high school or a general equivalency diploma provided the 145.16 applicant agrees to develop and carry out an employability 145.17 development plan instead of job search, and concurrently work 145.18 for at least 16 hours per week in a temporary public service 145.19 job. The employability development plan must include the 145.20 employment goals and specific outcomes the participant must 145.21 achieve; 145.22 (2) be within six months of completing any post-secondary 145.23 training program, provided that the applicant agrees to develop 145.24 and carry out an employability development plan instead of a job 145.25 search, and concurrently work for a minimum number of hours per 145.26 week in a temporary public service job. The employability 145.27 development plan must include the employment goal and specific 145.28 outcomes that the participant must achieve. The applicant that 145.29 is deferred under this subdivision may choose to work in a job 145.30 other than a public service job for a minimum number of hours 145.31 per week rather than in a temporary public service job. For 145.32 individuals who are participating in an educational program 145.33 under this clause, and who are attending school full time as 145.34 determined by the institution, there is no work requirement. 145.35 For individuals participating in an educational program on a 145.36 part-time basis as determined by the institution, the minimum 146.1 number of hours that a participant must work shall be decreased 146.2 as the participant increases the number of credit hours taken, 146.3 except that the participant shall not be required to work more 146.4 than eight hours per week. 146.5 During vacation periods of one month or more, the 16-hour 146.6 per week minimum work requirement shall apply. The applicant 146.7 may be deferred for up to six months. At the end of the 146.8 deferment period, the participant must develop a job search plan 146.9 and conduct at least 32 hours of job search per week for up to 146.10 eight consecutive weeks, and submit reports as required under 146.11 subdivisions 3 and 4; or 146.12 (3) be in treatment for chemical dependency, be a victim of 146.13 domestic abuse, or be homeless, provided that the applicant 146.14 agrees to develop an employability development plan instead of a 146.15 job search plan, and immediately follow through with the 146.16 activities in the employability development plan. The 146.17 employability development plan must include specific outcomes 146.18 that the applicant must achieve for the duration of the 146.19 employability development plan and activities which are needed 146.20 to address the issues identified. Under this clause, the 146.21 applicant may be deferred for up to eight weeks. 146.22 Subd. 9. [EDP STATUS REPORT.] The participant who is 146.23 deferred from job search under subdivision 8 must submit a 146.24 completed employability development plan status report form to 146.25 the employment advisor every 14 days as long as the participant 146.26 continues to be deferred, with the first completed form due 21 146.27 days after the date of application. 146.28 Subd. 10. [JOB OFFER.] The participant must not refuse any 146.29 job offer, provided that the job is within the participant's 146.30 physical and mental abilities, pays hourly gross wages of not 146.31 less than the applicable state or federal minimum wage, and 146.32 meets health and safety standards set by federal, state, and 146.33 county agencies. If a job is offered, the participant must 146.34 inform the provider immediately to redetermine eligibility for 146.35 and extent of benefits and services to support work. To enhance 146.36 job retention, the provider may provide services such as 147.1 motivational counseling or on-site problem solving for up to six 147.2 months. The participant who has completed at least six months 147.3 of work in a nonsubsidized job shall be encouraged to 147.4 participate in a training program that would improve the 147.5 participant's ability to obtain a job that pays a higher wage. 147.6 Subd. 11. [DUTY TO REPORT.] The participant must 147.7 immediately inform the provider regarding any changes related to 147.8 the participant's employment status. 147.9 Subd. 12. [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 147.10 SERVICE JOB.] (a) If after the completion of the maximum eight 147.11 weeks of job search the participant has failed to secure a 147.12 nonsubsidized or a subsidized job for at least 32 hours per 147.13 week, or does not earn a net income from self-employment that is 147.14 equal to at least the AFDC, MFIP-S or family general assistance 147.15 monthly grant for the household size, whichever is applicable, 147.16 the participant is required to work in a temporary public 147.17 service job for up to 67 working days for (1) at least 32 hours 147.18 per week, or (2) a period equivalent to the result of dividing 147.19 the monthly grant amount which the participant would otherwise 147.20 receive, by the federal hourly minimum wage, or applicable 147.21 hourly state minimum wage, or the hourly rate of pay for 147.22 individuals employed in the same occupation at the site, 147.23 whichever is highest. If the result is more than 128 hours per 147.24 month, the participant's requirement to work in a temporary 147.25 public service job shall not be more than 32 hours per week. 147.26 (b) Within seven days from the date of application, the 147.27 participant who is deferred under subdivision 8, clause (1) or 147.28 (2), and is participating in an educational program on a 147.29 part-time basis must work in a temporary public service job as 147.30 required under subdivision 8, clause (2). 147.31 (c) The provider shall strive to match the profile of the 147.32 participant with the needs of the employers that are 147.33 participating in a temporary jobs program under section 256K.05. 147.34 Sec. 5. [256K.04] [JOB DEVELOPMENT AND SUBSIDY.] 147.35 Subdivision 1. [JOB INVENTORY.] The provider must develop 147.36 an inventory of job openings including full-time, part-time, 148.1 permanent, temporary or seasonal, and training positions in 148.2 partnership with private and public employers, local industry 148.3 councils, and employment agencies. To the extent possible, the 148.4 inventory must include specific information regarding job 148.5 openings, must be updated on a weekly basis, and must be 148.6 available to all participants on a daily basis. 148.7 Subd. 2. [JOB SUBSIDY.] The county may use all or part of 148.8 the AFDC, MFIP-S or family general assistance benefit as a 148.9 subsidy to employers for the purpose of providing work 148.10 experience or training to the participant who has completed the 148.11 job search plan, provided that: 148.12 (1) the job to be subsidized is permanent and full time, 148.13 and pays an hourly rate of at least $6 per hour; 148.14 (2) the employer agrees to retain the participant after 148.15 satisfactory completion of the work experience or training 148.16 period; and 148.17 (3) the participant has first tried to secure a 148.18 nonsubsidized job by following the job search plan. 148.19 The subsidy may be available for up to six months. 148.20 Sec. 6. [256K.05] [TEMPORARY JOBS PROGRAM.] 148.21 Subdivision 1. [PROGRAM ESTABLISHED.] The provider must 148.22 establish and operate a program to provide temporary jobs to 148.23 participants who, after eight weeks of job search, are not hired 148.24 into a nonsubsidized or a subsidized job, or are deferred under 148.25 section 256K.03, subdivision 8. The temporary jobs to be 148.26 created under this section must be public service jobs that 148.27 serve a useful public service such as: health, social service, 148.28 environmental protection, education, urban and rural development 148.29 and redevelopment, welfare, recreation, public facilities, 148.30 public safety, community service, services to the aged or 148.31 disabled citizens, and child care. 148.32 Subd. 2. [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 148.33 JOBS.] The provider must assign the participant who (1) is 148.34 within completion of the required eight weeks of job search and 148.35 has failed to secure a nonsubsidized or a subsidized job for at 148.36 least 32 hours per week, or (2) does not earn a net income from 149.1 self-employment that is equal to at least the AFDC, MFIP-S or 149.2 family general assistance monthly grant for the household size, 149.3 whichever is applicable, to a temporary public service job. The 149.4 assignment must be made seven days before the end of the job 149.5 search and be based on section 256K.03, subdivision 12. The 149.6 participant that is deferred under section 256K.03, subdivision 149.7 8, will be assigned by the provider to a temporary public 149.8 service job within seven days after the application. 149.9 Subd. 3. [PARTICIPANT'S STATUS.] The participant who is 149.10 working in a temporary public service job under this section is 149.11 not considered an employee for the purposes of unemployment 149.12 insurance compensation, retirement, or civil service laws, and 149.13 shall not perform work ordinarily performed by a public employee. 149.14 Subd. 4. [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 149.15 discretion of the provider, the participant who is working in a 149.16 temporary public service job under section 256K.03, subdivision 149.17 12, may be required to continue to look for a job for up to 149.18 eight hours per week in addition to working. The participant 149.19 who is working at least 20 hours per week but less than 32 hours 149.20 per week in a nonsubsidized or subsidized job may be required to 149.21 look for a job for up to 20 hours per week in lieu of work in 149.22 the temporary public service job so that the total hours of work 149.23 and job search is not more than 40 hours per week. 149.24 Subd. 5. [EXCUSED ABSENCES.] The participant who is 149.25 working in a temporary public service job may be allowed excused 149.26 absences from the assigned temporary job site up to eight hours 149.27 per month. For purposes of this subdivision, "excused absence" 149.28 means absence due to temporary illness or injury of the 149.29 caregiver or a member of the caregiver's family, the 149.30 unavailability of appropriate child care or unavailability of 149.31 transportation needed to go to and from the work site, a job 149.32 interview, or a nonmedical emergency. For purposes of this 149.33 subdivision, "emergency" means a sudden, unexpected occurrence 149.34 or situation of a serious or urgent nature that requires action. 149.35 Subd. 6. [MOVE TO A DIFFERENT COUNTY.] If the applicant or 149.36 recipient who is required to participate in the work first 150.1 program moves to a different county in this state, the benefits 150.2 and enabling services agreed upon in the self-sufficiency 150.3 agreement shall be provided by the pilot county where the 150.4 applicant or recipient originated, provided the move was part of 150.5 the job search or employability development plan. If the 150.6 applicant or recipient is moving to a different county for 150.7 failure to comply with the requirements of the work first 150.8 program, the applicant or recipient will not be eligible for 150.9 MFIP-S in this state for at least six months from the date of 150.10 the move. 150.11 Sec. 7. [256K.06] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 150.12 RENT AND UTILITIES VENDOR PAYMENT.] 150.13 Payments for rent and utilities up to the amount of AFDC, 150.14 MFIP-S, or family general assistance benefits to which the 150.15 assistance unit is entitled shall be provided in the form of 150.16 vendor payments for as many months as the applicant is eligible 150.17 or six months, whichever comes first. The residual amount after 150.18 vendor payment, if any, will be paid to the AFDC, MFIP-S, or 150.19 family general assistance recipient, unless it is used as a wage 150.20 subsidy under section 256K.04, subdivision 2. This provision 150.21 shall apply to all applicants including those meeting the 150.22 exemption categories under section 256K.03, subdivision 5, or 150.23 deferral categories under section 256K.03, subdivision 8. To 150.24 the extent needed, a job search allowance shall be provided for 150.25 up to eight weeks to cover expenses related to the job search. 150.26 Before the job search allowance is issued, it must be approved 150.27 by the employment advisor and financial specialist, and clearly 150.28 described in the job search plan. 150.29 Sec. 8. [256K.07] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 150.30 ASSISTANCE, AND CHILD CARE.] 150.31 The participant shall be treated as an AFDC, MFIP-S or 150.32 family general assistance recipient, whichever is applicable, 150.33 for food stamps, medical assistance, and child care eligibility 150.34 purposes. The participant who leaves the program as a result of 150.35 increased earnings from employment shall be eligible for 150.36 transitional Medical Assistance and child care without regard to 151.1 AFDC, MFIP-S or family general assistance receipt in three of 151.2 the six months preceding ineligibility. 151.3 Sec. 9. [256K.08] [SANCTIONS AND APPEAL PROCESS.] 151.4 Subdivision 1. [GOOD CAUSE.] (a) For purposes of this 151.5 subdivision, "good cause" means absence due to temporary illness 151.6 or injury of the participant or a member of the participant's 151.7 family, the unavailability of appropriate child care or 151.8 unavailability of transportation needed to attend orientation or 151.9 conduct job search, or a nonmedical emergency as defined under 151.10 section 256K.05, subdivision 5. 151.11 (b) The applicant who is required, but fails, without good 151.12 cause, to participate in orientation, complete the job search 151.13 plan or employability development plan, and comply with the job 151.14 search requirements under section 256K.03, prior to being 151.15 eligible for AFDC, MFIP-S or family general assistance shall be 151.16 denied benefits. The applicant will not be eligible for 151.17 benefits in this state for at least six months. 151.18 (c) If, after receiving a written warning from the county, 151.19 the participant fails, without good cause, to conduct at least 151.20 32 hours of job search per week in any given two-week period, 151.21 the participant will be immediately required to work for at 151.22 least 16 hours per week in a temporary public service job. The 151.23 required 32 hours per week of job search will be reduced to 16 151.24 hours. 151.25 (d) If the participant who is deferred under section 151.26 256K.03, subdivision 8, fails to comply with the activities 151.27 described in the employability development plan, the participant 151.28 will lose the deferment status, provided that the participant 151.29 has received at least two written warnings from the provider. 151.30 (e) If the participant refuses to work in a temporary 151.31 public service job, or is terminated from a temporary public 151.32 service job for failure to work, benefits to the assistance unit 151.33 shall be terminated and the participant shall not be eligible 151.34 for aid under the MFIP-S program for at least six months from 151.35 the date of refusal or termination. If the participant, before 151.36 completing at least four consecutive months of employment, 152.1 voluntarily quits or is terminated from a nonsubsidized or a 152.2 subsidized job, the participant shall immediately be assigned to 152.3 work in a temporary public service job for at least 32 hours per 152.4 week for up to 67 working days unless the participant is hired 152.5 or rehired into a nonsubsidized or subsidized job. 152.6 Subd. 2. [NOTICE OF SANCTIONS.] If the county determines 152.7 that the participant has failed or refused without good cause, 152.8 as defined in subdivision 1, to cooperate with the program 152.9 requirements, the county shall inform the participant in writing 152.10 of its intent to impose an applicable sanction listed under 152.11 subdivision 1 and the opportunity to have a conciliation 152.12 conference upon request and within five days of the notice 152.13 before a sanction is imposed. 152.14 Sec. 10. [256K.09] [FUNDING.] 152.15 Subdivision 1. [LEVERAGING GRANT AMOUNT TO SECURE OTHER 152.16 FUNDS.] The county agency or the provider, in cooperation with 152.17 the department, may leverage the grant amount to secure other 152.18 funds from employers, foundations, and the community for the 152.19 purpose of developing additional components to benefit children 152.20 and improve the program. 152.21 Subd. 2. [EMPLOYER REIMBURSEMENT.] The employer shall be 152.22 reimbursed for wages paid to participants under Minnesota 152.23 Statutes, section 256K.04, subdivision 2. 152.24 Sec. 11. [REPEALER.] 152.25 Minnesota Statutes 1996, sections 256.7351; 256.7352; 152.26 256.7353; 256.7354; 256.7355; 256.7356; 256.7357; 256.7358; and 152.27 256.7359, are repealed. 152.28 Sec. 12. [EFFECTIVE DATE.] 152.29 Article 2 is effective July 1, 1997. 152.30 ARTICLE 3 152.31 ASSISTANCE PROGRAM CHANGES 152.32 Section 1. Minnesota Statutes 1996, section 256.031, is 152.33 amended by adding a subdivision to read: 152.34 Subd. 6. [END OF FIELD TRIALS.] Upon agreement with the 152.35 federal government, the field trials of the Minnesota family 152.36 investment plan will end June 30, 1998. Families in the 153.1 comparison group under subdivision 3, paragraph (d), clause (i), 153.2 receiving aid to families with dependent children under sections 153.3 256.72 to 256.87, and STRIDE services under section 256.736 will 153.4 continue in those programs until June 30, 1998. After June 30, 153.5 1998, families who cease receiving assistance under the 153.6 Minnesota family investment plan and comparison group families 153.7 who cease receiving assistance under AFDC and STRIDE who are 153.8 eligible for the Minnesota family investment program-statewide 153.9 (MFIP-S), medical assistance, general assistance medical care, 153.10 or the food stamp program shall be placed with their consent on 153.11 the programs for which they are eligible. 153.12 Sec. 2. Minnesota Statutes 1996, section 256.033, 153.13 subdivision 1, is amended to read: 153.14 Subdivision 1. [ELIGIBILITY CONDITIONS.] (a) A family is 153.15 entitled to assistance under the Minnesota family investment 153.16 plan if the family is assigned to a test group in the evaluation 153.17 as provided in section 256.031, subdivision 3, paragraph (d), 153.18 and: 153.19 (1) the family meets the definition of assistance unit 153.20 under section 256.032, subdivision 1a; 153.21 (2) the family's resources not excluded under subdivision 3 153.22 do not exceed $2,000; 153.23 (3) the family can verify citizenship or lawful resident 153.24 alien status; and 153.25 (4) the family provides or applies for a social security 153.26 number for each member of the family receiving assistance under 153.27 the family investment plan. 153.28 (b) A family is eligible for the family investment plan if 153.29 the net income is less than the transitional standard as defined 153.30 in section 256.032, subdivision 13, for that size and 153.31 composition of family. In determining available net income, the 153.32 provisions in subdivision 2 shall apply. 153.33 (c) Upon application, a family is initially eligible for 153.34 the family investment plan if the family's gross income does not 153.35 exceed the applicable transitional standard of assistance for 153.36 that family as defined under section 256.032, subdivision 13, 154.1 after deducting: 154.2 (1) 18 percent to cover taxes; and 154.3 (2) actual dependent care costs up to the maximum 154.4 disregarded under United States Code, title 42, section 154.5 602(a)(8)(A)(iii)
; and154.6 (3) $50 of child support collected in that month. 154.7 (d) A family can remain eligible for the program if: 154.8 (1) it meets the conditions in subdivision 1a; and 154.9 (2) its income is below the transitional standard in 154.10 section 256.032, subdivision 13, allowing for income exclusions 154.11 in subdivision 2 and after applying the family investment plan 154.12 treatment of earnings under subdivision 1a. 154.13 Sec. 3. Minnesota Statutes 1996, section 256.033, 154.14 subdivision 1a, is amended to read: 154.15 Subd. 1a. [TREATMENT OF INCOME FOR THE PURPOSES OF 154.16 CONTINUED ELIGIBILITY.] To help families during their transition 154.17 from the Minnesota family investment plan to self-sufficiency, 154.18 the following income supports are available: 154.19 (a) The $30 and one-third and $90 disregards allowed under 154.20 section 256.74, subdivision 1, and the 20 percent earned income 154.21 deduction allowed under the federal Food Stamp Act of 1977, as 154.22 amended, are replaced with a single disregard of not less than 154.23 35 percent of gross earned income to cover taxes and other 154.24 work-related expenses and to reward the earning of income. This 154.25 single disregard is available for the entire time a family 154.26 receives assistance through the Minnesota family investment plan. 154.27 (b) The dependent care deduction, as prescribed under 154.28 section 256.74, subdivision 1, and United States Code, title 7, 154.29 section 2014(e), is replaced for families with earned income who 154.30 need assistance with dependent care with an entitlement to a 154.31 dependent care subsidy from money appropriated for the Minnesota 154.32 family investment plan. 154.33 (c) The family wage level, as defined in section 256.032, 154.34 subdivision 8, allows families to supplement earned income with 154.35 assistance received through the Minnesota family investment 154.36 plan. If, after earnings are adjusted according to the 155.1 disregard described in paragraph (a), earnings have raised 155.2 family income to a level equal to or greater than the family 155.3 wage level, the amount of assistance received through the 155.4 Minnesota family investment plan must be reduced. 155.5 (d) The first $50 of any timely support payment for a month155.6 received by the public agency responsible for child support155.7 enforcement shall be paid to the family and disregarded in155.8 determining eligibility and the amount of assistance in155.9 accordance with United States Code, title 42, sections155.10 602(a)(8)(A)(vi) and 657(b)(1). This paragraph applies155.11 regardless of whether the caregiver is in transitional status,155.12 is exempt from developing or complying with the terms of a155.13 family support agreement, or has had a sanction imposed under155.14 subdivision 3.155.15 Sec. 4. Minnesota Statutes 1996, section 256.736, 155.16 subdivision 3a, is amended to read: 155.17 Subd. 3a. [PARTICIPATION.] (a) Except as provided under155.18 paragraphs (b) and (c),Participation in employment and training 155.19 services under this section is limited to the following 155.20 recipients: 155.21 (1) caretakers who are required to participate in a job 155.22 search under subdivision 14; 155.23 (2) custodial parents who are subject to the school 155.24 attendance or case management participation requirements under 155.25 subdivision 3b; 155.26 (3) caretakers whose participation in employment and155.27 training services began prior to May 1, 1990, if the caretaker's155.28 AFDC eligibility has not been interrupted for 30 days or more155.29 and the caretaker's employability development plan has not been155.30 completed;155.31 (4) recipients who are members of a family in which the155.32 youngest child is within two years of being ineligible for AFDC155.33 due to age;155.34 (5) custodial parents under the age of 24 who: (i) have155.35 not completed a high school education and who, at the time of155.36 application for AFDC, were not enrolled in high school or in a156.1 high school equivalency program; or (ii) have had little or no156.2 work experience in the preceding year;156.3 (6) recipients who have received AFDC for 36 or more months156.4 out of the last 60 months;156.5 (7) recipients who are participants in the self-employment156.6 investment demonstration project under section 268.95; and156.7 (8) recipients who participate in the new chance research156.8 and demonstration project under contract with the department of156.9 human servicesand 156.10 (3) after the county agency assures the availability of 156.11 employment and training services for recipients identified under 156.12 clauses (1) and (2), and to the extent of available resources, 156.13 any other AFDC recipient. 156.14 (b) If the commissioner determines that participation of156.15 persons listed in paragraph (a) in employment and training156.16 services is insufficient either to meet federal performance156.17 targets or to fully utilize funds appropriated under this156.18 section, the commissioner may, after notifying the chairs of the156.19 senate family services committee, the house health and human156.20 services committee, the family services division of the senate156.21 family services and health care committees, and the human156.22 services division of the house health and human services156.23 committee, permit additional groups of recipients to participate156.24 until the next meeting of the legislative advisory commission,156.25 after which the additional groups may continue to enroll for156.26 participation unless the legislative advisory commission156.27 disapproves the continued enrollment. The commissioner shall156.28 allow participation of additional groups in the following order156.29 only as needed to meet performance targets or fully utilize156.30 funding for employment and training services under this section:156.31 (1) recipients who have received 24 or more months of AFDC156.32 out of the previous 48 months; and156.33 (2) recipients who have not completed a high school156.34 education or a high school equivalency program.156.35 (c) To the extent of money appropriated specifically for156.36 this paragraph, the commissioner may permit AFDC caretakers who157.1 are not eligible for participation in employment and training157.2 services under the provisions of paragraph (a) or (b) to157.3 participate. Money must be allocated to county agencies based157.4 on the county's percentage of participants statewide in services157.5 under this section in the prior calendar year. Caretakers must157.6 be selected on a first-come, first-served basis from a waiting157.7 list of caretakers who volunteer to participate. The157.8 commissioner may, on a quarterly basis, reallocate unused157.9 allocations to county agencies that have sufficient volunteers.157.10 If funding under this paragraph is discontinued in future fiscal157.11 years, caretakers who began participating under this paragraph157.12 must be deemed eligible under paragraph (a), clause (3).157.13 (d)Participants who are eligible and enroll in the STRIDE 157.14 program under one of the categories of this subdivision are 157.15 required to cooperate with the assessment and employability plan 157.16 development and to meet the terms of their employability plan. 157.17 Failure to comply, without good cause, shall result in the 157.18 imposition of sanctions as specified in subdivision 4, clause 157.19 (6). 157.20 Sec. 5. Minnesota Statutes 1996, section 256.74, 157.21 subdivision 1, is amended to read: 157.22 Subdivision 1. [AMOUNT.] The amount of assistance which 157.23 shall be granted to or on behalf of any dependent child and 157.24 parent or other needy eligible relative caring for the dependent 157.25 child shall be determined by the county agency in accordance157.26 withaccording to rules promulgated by the commissioner and 157.27 shall be sufficient, when added to all other income and support 157.28 available to the child, to provide the child with a reasonable 157.29 subsistence compatible with decency and health. To the extent 157.30 permissible under federal law, an eligible relative caretaker or 157.31 parent shall have the option to include in the assistance unit 157.32 the needs, income, and resources of the following essential 157.33 persons who are not otherwise eligible for AFDC because they do 157.34 not qualify as a caretaker or as a dependent child: 157.35 (1) a parent or relative caretaker's spouse and 157.36 stepchildren; or 158.1 (2) blood or legally adopted relatives who are under the 158.2 age of 18 or under the age of 19 years who are regularly 158.3 attending as a full-time student, and are expected to complete 158.4 before or during the month of their 19th birthday, a high school 158.5 or secondary level course of vocational or technical training 158.6 designed to prepare students for gainful employment. The amount 158.7 shall be based on the method of budgeting required in Public Law 158.8 Number 97-35, section 2315, United States Code, title 42, 158.9 section 602, as amended and federal regulations at Code of 158.10 Federal Regulations, title 45, section 233. Nonrecurring lump 158.11 sum income received by an AFDC family must be budgeted in the 158.12 normal retrospective cycle. When the family's income, after 158.13 application of the applicable disregards, exceeds the need 158.14 standard for the family because of receipt of earned or unearned 158.15 lump sum income, the family will be ineligible for the full 158.16 number of months derived by dividing the sum of the lump sum 158.17 income and other income by the monthly need standard for a 158.18 family of that size. Any income remaining from this calculation 158.19 is income in the first month following the period of 158.20 ineligibility. The first month of ineligibility is the payment 158.21 month that corresponds with the budget month in which the lump 158.22 sum income was received. For purposes of applying the lump sum 158.23 provision, family includes those persons defined in the Code of 158.24 Federal Regulations, title 45, section 233.20(a)(3)(ii)(F). A 158.25 period of ineligibility must be shortened when the standard of 158.26 need increases and the amount the family would have received 158.27 also changes, an amount is documented as stolen, an amount is 158.28 unavailable because a member of the family left the household 158.29 with that amount and has not returned, an amount is paid by the 158.30 family during the period of ineligibility to cover a cost that 158.31 would otherwise qualify for emergency assistance, or the family 158.32 incurs and pays for medical expenses which would have been 158.33 covered by medical assistance if eligibility existed. In making 158.34 its determination the county agency shall disregard the 158.35 following from family income: 158.36 (1) all the earned income of each dependent child applying 159.1 for AFDC if the child is a full-time student and all of the 159.2 earned income of each dependent child receiving AFDC who is a 159.3 full-time student or is a part-time student who is not a 159.4 full-time employee. A student is one who is attending a school, 159.5 college, or university, or a course of vocational or technical 159.6 training designed to fit students for gainful employment and 159.7 includes a participant in the Job Corps program under the Job 159.8 Training Partnership Act (JTPA). The county agency shall also 159.9 disregard all income of each dependent child applying for or 159.10 receiving AFDC when the income is derived from a program carried 159.11 out under JTPA, except that disregard of earned income may not 159.12 exceed six months per calendar year; 159.13 (2) all educational assistance, except the county agency 159.14 shall count graduate student teaching assistantships, 159.15 fellowships, and other similar paid work as earned income and, 159.16 after allowing deductions for any unmet and necessary 159.17 educational expenses, shall count scholarships or grants awarded 159.18 to graduate students that do not require teaching or research as 159.19 unearned income; 159.20 (3) the first $90 of each individual's earned income. For 159.21 self-employed persons, the expenses directly related to 159.22 producing goods and services and without which the goods and 159.23 services could not be produced shall be disregarded 159.24 pursuantaccording to rules promulgated by the commissioner; 159.25 (4) thirty dollars plus one-third of each individual's 159.26 earned income for individuals found otherwise eligible to 159.27 receive aid or who have received aid in one of the four months 159.28 before the month of application. With respect to any month, the 159.29 county welfare agency shall not disregard under this clause any 159.30 earned income of any person who has: (a) reduced earned income 159.31 without good cause within 30 days preceding any month in which 159.32 an assistance payment is made; (b) refused without good cause to 159.33 accept an offer of suitable employment; (c) left employment or159.34 reduced earnings without good cause and applied for assistance159.35 so as to be able later to return to employment with the159.36 advantage of the income disregard;or (d)(c) failed without 160.1 good cause to make a timely report of earned income in160.2 accordance withaccording to rules promulgated by the 160.3 commissioner of human services. Persons who are already 160.4 employed and who apply for assistance shall have their needs 160.5 computed with full account taken of their earned and other 160.6 income. If earned and other income of the family is less than 160.7 need, as determined on the basis of public assistance standards, 160.8 the county agency shall determine the amount of the grant by 160.9 applying the disregard of income provisions. The county agency 160.10 shall not disregard earned income for persons in a family if the 160.11 total monthly earned and other income exceeds their needs, 160.12 unless for any one of the four preceding months their needs were 160.13 met in whole or in part by a grant payment . The disregard of160.14 $30 and one-third of earned income in this clause shall be160.15 applied to the individual's income for a period not to exceed160.16 four consecutive months. Any month in which the individual160.17 loses this disregard because of the provisions of subclauses (a)160.18 to (d) shall be considered as one of the four months. An160.19 additional $30 work incentive must be available for an160.20 eight-month period beginning in the month following the last160.21 month of the combined $30 and one-third work incentive. This160.22 period must be in effect whether or not the person has earned160.23 income or is eligible for AFDC. To again qualify for the earned160.24 income disregards under this clause, the individual must not be160.25 a recipient of aid for a period of 12 consecutive months. When160.26 an assistance unit becomes ineligible for aid due to the fact160.27 that these disregards are no longer applied to income, the160.28 assistance unit shall be eligible for medical assistance160.29 benefits for a 12-month period beginning with the first month of160.30 AFDC ineligibility; 160.31 (5) an amount equal to the actual expenditures for the care 160.32 of each dependent child or incapacitated individual living in 160.33 the same home and receiving aid, not to exceed: (a) $175 for 160.34 each individual age two and older, and $200 for each individual 160.35 under the age of two. The dependent care disregard must be 160.36 applied after all other disregards under this subdivision have 161.1 been applied; 161.2 (6) the first $50 per assistance unit of the monthly161.3 support obligation collected by the support and recovery (IV-D)161.4 unit. The first $50 of periodic support payments collected by161.5 the public authority responsible for child support enforcement161.6 from a person with a legal obligation to pay support for a161.7 member of the assistance unit must be paid to the assistance161.8 unit within 15 days after the end of the month in which the161.9 collection of the periodic support payments occurred and must be161.10 disregarded when determining the amount of assistance. A review161.11 of a payment decision under this clause must be requested within161.12 30 days after receiving the notice of collection of assigned161.13 support or within 90 days after receiving the notice if good161.14 cause can be shown for not making the request within the 30-day161.15 limit;161.16 (7)that portion of an insurance settlement earmarked and 161.17 used to pay medical expenses, funeral and burial costs, or to 161.18 repair or replace insured property; and 161.19 (8)(7) all earned income tax credit payments received by 161.20 the family as a refund of federal income taxes or made as 161.21 advance payments by an employer. 161.22 All payments made pursuantaccording to a court order for 161.23 the support of children not living in the assistance unit's 161.24 household shall be disregarded from the income of the person 161.25 with the legal obligation to pay support, provided that, if 161.26 there has been a change in the financial circumstances of the 161.27 person with the legal obligation to pay support since the 161.28 support order was entered, the person with the legal obligation 161.29 to pay support has petitioned for a modification of the support 161.30 order. 161.31 Sec. 6. Minnesota Statutes 1996, section 256.74, is 161.32 amended by adding a subdivision to read: 161.33 Subd. 1c. [MFIP AND MFIP-R COMPARISON GROUP 161.34 FAMILIES.] Notwithstanding subdivision 1, the limitations of 161.35 this subdivision apply to MFIP and MFIP-R comparison group 161.36 families under sections 256.031 to 256.0361. The disregard of 162.1 thirty dollars plus one-third of earned income in this 162.2 subdivision shall be applied to the individual's income for a 162.3 period not to exceed four consecutive months. Any month in 162.4 which the individual loses this disregard because of the 162.5 provisions of subclauses (a) to (c) of subdivision 1 shall be 162.6 considered as one of the four months. An additional $30 work 162.7 incentive must be available for an eight month period beginning 162.8 in the month following the last month of the combined $30 and 162.9 one-third work incentive. This period must be in effect whether 162.10 or not the person has earned income or is eligible for AFDC. To 162.11 again qualify for the earned income disregards under this 162.12 subdivision, the individual must not be a recipient of and for a 162.13 period of 12 consecutive months. When an assistance unit 162.14 becomes ineligible for aid due to the fact that these disregards 162.15 are no longer applied to income, the assistance unit shall be 162.16 eligible for medical assistance benefits for a 12 month period 162.17 beginning with the first month of AFDC ineligibility. 162.18 Sec. 7. Minnesota Statutes 1996, section 256.81, is 162.19 amended to read: 162.20 256.81 [COUNTY AGENCY, DUTIES.] 162.21 (1) The county agency shall keep such records, accounts, 162.22 and statistics in relation to aid to families with dependent 162.23 children as the state agency shall prescribe. 162.24 (2) Each grant of aid to families with dependent children 162.25 shall be paid to the recipient by the county agency unless paid 162.26 by the state agency. Payment must be in the form of a warrant 162.27 immediately redeemable in cash, electronic benefits transfer, or 162.28 by direct deposit into the recipient's account in a financial 162.29 institution, except in those instances in which the county 162.30 agency, subject to the rules of the state agency, determines 162.31 that payments for care shall be made to an individual other than 162.32 the parent or relative with whom the dependent child is living 162.33 or to vendors of goods and services for the benefit of the child 162.34 because such parent or relative is unable to properly manage the 162.35 funds in the best interests and welfare of the child. There is 162.36 a presumption of mismanagement of funds whenever a recipient is 163.1 more than 30 days in arrears on payment of rent, except when the 163.2 recipient has withheld rent to enforce the recipient's right to 163.3 withhold the rent in accordance with federal, state, or local 163.4 housing laws. In cases of mismanagement based solely on failure 163.5 to pay rent, the county may vendor the rent payments to the 163.6 landlord. At the request of a recipient, the state or county 163.7 may make payments directly to vendors of goods and services, but 163.8 only for goods and services appropriate to maintain the health 163.9 and safety of the child, as determined by the county. 163.10 (3) The state or county may ask the recipient to give 163.11 written consent authorizing the state or county to provide 163.12 advance notice to a vendor before vendor payments of rent are 163.13 reduced or terminated. Whenever possible under state and 163.14 federal laws and regulations and if the recipient consents, the 163.15 state or county shall provide at least 30 days notice to vendors 163.16 before vendor payments of rent are reduced or terminated. If 30 163.17 days notice cannot be given, the state or county shall notify 163.18 the vendor within three working days after the date the state or 163.19 county becomes aware that vendor payments of rent will be 163.20 reduced or terminated. When the county notifies a vendor that 163.21 vendor payments of rent will be reduced or terminated, the 163.22 county shall include in the notice that it is illegal to 163.23 discriminate on the grounds that a person is receiving public 163.24 assistance and the penalties for violation. The county shall 163.25 also notify the recipient that it is illegal to discriminate on 163.26 the grounds that a person is receiving public assistance and the 163.27 procedures for filing a complaint. The county agency may 163.28 develop procedures, including using the MAXIS system, to 163.29 implement vendor notice and may charge vendors a fee not 163.30 exceeding $5 to cover notification costs. 163.31 (4) A vendor payment arrangement is not a guarantee that a 163.32 vendor will be paid by the state or county for rent, goods, or 163.33 services furnished to a recipient, and the state and county are 163.34 not liable for any damages claimed by a vendor due to failure of 163.35 the state or county to pay or to notify the vendor on behalf of 163.36 a recipient, except under a specific written agreement between 164.1 the state or county and the vendor or when the state or county 164.2 has provided a voucher guaranteeing payment under certain 164.3 conditions. 164.4 (5) The county shall be paid from state and federal funds 164.5 available therefor the amount provided for in section 256.82. 164.6 (6) Federal funds available for administrative purposes 164.7 shall be distributed between the state and the counties in the 164.8 same proportion that expenditures were made except as provided 164.9 for in section 256.017. 164.10 (7) The affected county may require that assistance paid 164.11 under the AFDCemergency assistance program in the form of a 164.12 utility deposit or rental unit damage deposit, less any amount 164.13 retained by the landlord to remedy a tenant's default in payment 164.14 of rent or other funds due to the landlord pursuant to a rental 164.15 agreement, or to restore the premises to the condition at the 164.16 commencement of the tenancy, ordinary wear and tear excepted, be 164.17 returned to the county when the individual vacates the premises 164.18 or paid to the recipient's new landlord as a vendor payment. 164.19 The vendor payment of returned funds shall not be considered a 164.20 new use of emergency assistance. 164.21 Sec. 8. Minnesota Statutes 1996, section 256.82, 164.22 subdivision 2, is amended to read: 164.23 Subd. 2. [FOSTER CARE MAINTENANCE PAYMENTS.] 164.24 Notwithstanding subdivision 1, for the purposes of foster care 164.25 maintenance payments under Title IV-E of the federal Social 164.26 Security Act, United States Code, title 42, sections 670 to 676, 164.27 during the period beginning July 1, 1985, and ending December 164.28 31, 1985, the county paying the maintenance costs shall be 164.29 reimbursed for the costs from those federal funds available for 164.30 that purpose together with an amount of state funds equal to a 164.31 percentage of the difference between the total cost and the 164.32 federal funds made available for payment. This percentage shall 164.33 not exceed the percentage specified in subdivision 1 for the aid 164.34 to families with dependent children program. In the event that 164.35 the state appropriation for this purpose is less than the state 164.36 percentage set in subdivision 1, the reimbursement shall be 165.1 ratably reduced to the county. Beginning January 1, 1986, for 165.2 the purpose of foster care maintenance payments under Title IV-E 165.3 of the Social Security Act, United States Code, title 42, 165.4 sections 670 to 676, the county paying the maintenance costs 165.5 must be reimbursed for the costs from the federal money 165.6 available for the purpose. Beginning July 1, 1997, for the 165.7 purposes of determining a child's eligibility under title IV-E 165.8 of the Social Security Act, the placing agency shall use AFDC 165.9 requirements in effect on June 1, 1995. 165.10 Sec. 9. Minnesota Statutes 1996, section 256.9354, is 165.11 amended by adding a subdivision to read: 165.12 Subd. 8. [SPONSOR'S INCOME AND RESOURCES DEEMED 165.13 AVAILABLE.] When determining eligibility for any federal or 165.14 state benefits under sections 256.9351 to 256.9363 and 256.9366 165.15 to 256.9369, the income and resources of all noncitizens whose 165.16 sponsor signed an affidavit of support as defined under the 165.17 United State Code, title 8, section 1183a shall be deemed to 165.18 include their sponsors' income and resources as defined in the 165.19 Personal Responsibility and Work Opportunity Reconciliation Act 165.20 of 1996, title IV, Public Law Number 104-193, sections 421 and 165.21 422. 165.22 Sec. 10. Minnesota Statutes 1996, section 256B.055, 165.23 subdivision 3, is amended to read: 165.24 Subd. 3. [AFDC FAMILIES.] Until March 31, 1998, medical 165.25 assistance may be paid for a person who is eligible for or 165.26 receiving, or who would be eligible for, except for excess 165.27 income or assets, public assistance under the aid to families 165.28 with dependent children program in effect as of July 16, 1996, 165.29 as required by the Personal Responsibility and Work Opportunity 165.30 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193. 165.31 Sec. 11. Minnesota Statutes 1996, section 256B.055, is 165.32 amended by adding a subdivision to read: 165.33 Subd. 3a. [MFIP-S FAMILIES; FAMILIES ELIGIBLE UNDER PRIOR 165.34 AFDC RULES.] (a) Beginning January 1, 1998, or on the date that 165.35 MFIP-S is implemented in counties, medical assistance may be 165.36 paid for a person receiving public assistance under the MFIP-S 166.1 program. 166.2 (b) Beginning January 1, 1998, medical assistance may be 166.3 paid for a person who would have been eligible for public 166.4 assistance under the income and resource standards and 166.5 deprivation requirements, or who would have been eligible but 166.6 for excess income or assets, under the state's AFDC plan in 166.7 effect as of July 16, 1996, as required by the Personal 166.8 Responsibility and Work Opportunity Reconciliation Act of 1996 166.9 (PRWORA), Public Law Number 104-193. 166.10 Sec. 12. Minnesota Statutes 1996, section 256B.055, 166.11 subdivision 5, is amended to read: 166.12 Subd. 5. [PREGNANT WOMEN; DEPENDENT UNBORN CHILD.] Medical 166.13 assistance may be paid for a pregnant woman who has written 166.14 verification of a positive pregnancy test from a physician or 166.15 licensed registered nurse, who meets the other eligibility 166.16 criteria of this section and who would be categorically eligible 166.17 for assistance under the aid to families with dependent children166.18 programstate's AFDC plan in effect as of July 16, 1996, as 166.19 required by the Personal Responsibility and Work Opportunity 166.20 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 166.21 if the child had been born and was living with the woman. For 166.22 purposes of this subdivision, a woman is considered pregnant for 166.23 60 days postpartum. 166.24 Sec. 13. Minnesota Statutes 1996, section 256B.056, 166.25 subdivision 1a, is amended to read: 166.26 Subd. 1a. [INCOME AND ASSETS GENERALLY.] Unless 166.27 specifically required by state law or rule or federal law or 166.28 regulation, the methodologies used in counting income and assets 166.29 to determine eligibility for medical assistance for persons 166.30 whose eligibility category is based on blindness, disability, or 166.31 age of 65 or more years, the methodologies for the supplemental 166.32 security income program shall be used, except that payments made 166.33 pursuantaccording to a court order for the support of children 166.34 shall be excluded from income in an amount not to exceed the 166.35 difference between the applicable income standard used in the 166.36 state's medical assistance program for aged, blind, and disabled 167.1 persons and the applicable income standard used in the state's 167.2 medical assistance program for families with children. 167.3 Exclusion of court-ordered child support payments is subject to 167.4 the condition that if there has been a change in the financial 167.5 circumstances of the person with the legal obligation to pay 167.6 support since the support order was entered, the person with the 167.7 legal obligation to pay support has petitioned for modification 167.8 of the support order. For families and children, which includes 167.9 all other eligibility categories, the methodologies for the aid167.10 to families with dependent children program under section 256.73167.11 under the state's AFDC plan in effect as of July 16, 1996, as 167.12 required by the Personal Responsibility and Work Opportunity 167.13 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 167.14 shall be used. Effective upon federal approval, in-kind 167.15 contributions to, and payments made on behalf of, a recipient, 167.16 by an obligor, in satisfaction of or in addition to a temporary 167.17 or permanent order for child support or maintenance, shall be 167.18 considered income to the recipient. For these purposes, a 167.19 "methodology" does not include an asset or income standard, or 167.20 accounting method, or method of determining effective dates. 167.21 Sec. 14. Minnesota Statutes 1996, section 256B.056, 167.22 subdivision 3, is amended to read: 167.23 Subd. 3. [ASSET LIMITATIONS.] To be eligible for medical 167.24 assistance, a person must not individually own more than $3,000 167.25 in assets, or if a member of a household with two family 167.26 members, (husband and wife, or parent and child ), the household 167.27 must not own more than $6,000 in assets, plus $200 for each 167.28 additional legal dependent. In addition to these maximum 167.29 amounts, an eligible individual or family may accrue interest on 167.30 these amounts, but they must be reduced to the maximum at the 167.31 time of an eligibility redetermination. The accumulation of the 167.32 clothing and personal needs allowance pursuantaccording to 167.33 section 256B.35 must also be reduced to the maximum at the time 167.34 of the eligibility redetermination. The value of assets that 167.35 are not considered in determining eligibility for medical 167.36 assistance is the value of those assets that are excluded by the168.1 aid to families with dependent children programexcluded under 168.2 the AFDC state plan as of July 16, 1996, as required by the 168.3 Personal Responsibility and Work Opportunity Reconciliation Act 168.4 of 1996 (PRWORA), Public Law Number 104-193, for families and 168.5 children, and the supplemental security income program for aged, 168.6 blind, and disabled persons, with the following exceptions: 168.7 (a) Household goods and personal effects are not considered. 168.8 (b) Capital and operating assets of a trade or business 168.9 that the local agency determines are necessary to the person's 168.10 ability to earn an income are not considered. 168.11 (c) Motor vehicles are excluded to the same extent excluded 168.12 by the supplemental security income program. 168.13 (d) Assets designated as burial expenses are excluded to 168.14 the same extent excluded by the supplemental security income 168.15 program. 168.16 Sec. 15. Minnesota Statutes 1996, section 256B.056, 168.17 subdivision 4, is amended to read: 168.18 Subd. 4. [INCOME.] To be eligible for medical assistance, 168.19 a person must not have, or anticipate receiving, semiannual 168.20 income in excess of 120 percent of the income standards by 168.21 family size used inunder the aid to families with dependent 168.22 children programstate plan as of July 16, 1996, as required by 168.23 the Personal Responsibility and Work Opportunity Reconciliation 168.24 Act of 1996 (PRWORA), Public Law Number 104-193, except that 168.25 families and children may have an income up to 133-1/3 percent 168.26 of the AFDC income standard. In computing income to determine 168.27 eligibility of persons who are not residents of long-term care 168.28 facilities, the commissioner shall disregard increases in income 168.29 as required by Public Law Numbers 94-566, section 503; 99-272; 168.30 and 99-509. Veterans aid and attendance benefits are considered 168.31 income to the recipient. 168.32 Sec. 16. Minnesota Statutes 1996, section 256B.057, 168.33 subdivision 1, is amended to read: 168.34 Subdivision 1. [PREGNANT WOMEN AND INFANTS.] (a) An infant 168.35 less than one year of age or a pregnant woman who has written 168.36 verification of a positive pregnancy test from a physician or 169.1 licensed registered nurse, is eligible for medical assistance if 169.2 countable family income is equal to or less than 275 percent of 169.3 the federal poverty guideline for the same family size. For 169.4 purposes of this subdivision, "countable family income" means 169.5 the amount of income considered available using the methodology 169.6 of the AFDC program under the state's AFDC plan as of July 16, 169.7 1996, as required by the Personal Responsibility and Work 169.8 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 169.9 Number 104-193, except for the earned income disregard and 169.10 employment deductions. An amount equal to the amount of earned 169.11 income exceeding 275 percent of the federal poverty guideline, 169.12 up to a maximum of the amount by which the combined total of 185 169.13 percent of the federal poverty guideline plus the earned income 169.14 disregards and deductions of the AFDC program under the state's 169.15 AFDC plan as of July 16, 1996, as required by the Personal 169.16 Responsibility and Work Opportunity Reconciliation Act of 1996 169.17 (PRWORA), Public Law Number 104-193, exceeds 275 percent of the 169.18 federal poverty guideline will be deducted for pregnant women 169.19 and infants less than one year of age. Eligibility for a 169.20 pregnant woman or infant less than one year of age under this 169.21 subdivision must be determined without regard to asset standards 169.22 established in section 256B.056, subdivision 3. 169.23 (b) An infant born on or after January 1, 1991, to a woman 169.24 who was eligible for and receiving medical assistance on the 169.25 date of the child's birth shall continue to be eligible for 169.26 medical assistance without redetermination until the child's 169.27 first birthday, as long as the child remains in the woman's 169.28 household. 169.29 Sec. 17. Minnesota Statutes 1996, section 256B.057, 169.30 subdivision 1b, is amended to read: 169.31 Subd. 1b. [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 169.32 This subdivision supersedes subdivision 1 as long as the 169.33 Minnesota health care reform waiver remains in effect. When the 169.34 waiver expires, the commissioner of human services shall publish 169.35 a notice in the State Register and notify the revisor of 169.36 statutes. An infant less than two years of age or a pregnant 170.1 woman who has written verification of a positive pregnancy test 170.2 from a physician or licensed registered nurse, is eligible for 170.3 medical assistance if countable family income is equal to or 170.4 less than 275 percent of the federal poverty guideline for the 170.5 same family size. For purposes of this subdivision, "countable 170.6 family income" means the amount of income considered available 170.7 using the methodology of the AFDC program under the state's AFDC 170.8 plan as of July 16, 1996, as required by the Personal 170.9 Responsibility and Work Opportunity Reconciliation Act of 1996 170.10 (PRWORA), Public Law Number 104-193, except for the earned 170.11 income disregard and employment deductions. An amount equal to 170.12 the amount of earned income exceeding 275 percent of the federal 170.13 poverty guideline, up to a maximum of the amount by which the 170.14 combined total of 185 percent of the federal poverty guideline 170.15 plus the earned income disregards and deductions of the AFDC 170.16 program under the state's AFDC plan as of July 16, 1996, as 170.17 required by the Personal Responsibility and Work Opportunity 170.18 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 170.19 exceeds 275 percent of the federal poverty guideline will be 170.20 deducted for pregnant women and infants less than two years of 170.21 age. Eligibility for a pregnant woman or infant less than two 170.22 years of age under this subdivision must be determined without 170.23 regard to asset standards established in section 256B.056, 170.24 subdivision 3. 170.25 (b) An infant born on or after January 1, 1991, to a woman 170.26 who was eligible for and receiving medical assistance on the 170.27 date of the child's birth shall continue to be eligible for 170.28 medical assistance without redetermination until the child's 170.29 second birthday, as long as the child remains in the woman's 170.30 household. 170.31 Sec. 18. Minnesota Statutes 1996, section 256B.057, 170.32 subdivision 2b, is amended to read: 170.33 Subd. 2b. [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS; 170.34 EXPANSION.] This subdivision supersedes subdivision 2a as long 170.35 as the Minnesota health care reform waiver remains in effect. 170.36 When the waiver expires, this subdivision expires and the 171.1 commissioner of human services shall publish a notice in the 171.2 State Register and notify the revisor of statutes. Eligibility 171.3 for medical assistance for a person under age 21, and the 171.4 person's parents or relative caretakers as defined in the aid to171.5 families with dependent children program according to chapter171.6 256, who are eligible under section 256B.055, subdivision171.7 3under the state's AFDC plan in effect as of July 16, 1996, as 171.8 required by the Personal Responsibility and Work Opportunity 171.9 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 171.10 and who live in the same household as the person eligible under 171.11 age 21, must be determined without regard to asset standards 171.12 established in section 256B.056. 171.13 Sec. 19. Minnesota Statutes 1996, section 256B.06, 171.14 subdivision 4, is amended to read: 171.15 Subd. 4. [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 171.16 medical assistance is limited to citizens of the United 171.17 States and aliens lawfully admitted for permanent residence or171.18 otherwise permanently residing in the United States under the171.19 color of law. Aliens who are seeking legalization under the171.20 Immigration Reform and Control Act of 1986, Public Law Number171.21 99-603, who are under age 18, over age 65, blind, disabled, or171.22 Cuban or Haitian, and who meet the eligibility requirements of171.23 medical assistance under subdivision 1 and sections 256B.055 to171.24 256B.062 are eligible to receive medical assistance. Pregnant171.25 women who are aliens seeking legalization under the Immigration171.26 Reform and Control Act of 1986, Public Law Number 99-603, and171.27 who meet the eligibility requirements of medical assistance171.28 under subdivision 1 are eligible for payment of care and171.29 services through the period of pregnancy and six weeks171.30 postpartum. Payment shall also be made for care and services171.31 that are furnished to an alien, regardless of immigration171.32 status, who otherwise meets the eligibility requirements of this171.33 section if such care and services are necessary for the171.34 treatment of an emergency medical condition, except for organ171.35 transplants and related care and services. For purposes of this171.36 subdivision, the term "emergency medical condition" means a172.1 medical condition, including labor and delivery, that if not172.2 immediately treated could cause a person physical or mental172.3 disability, continuation of severe pain, or death., qualified 172.4 noncitizens as defined in this subdivision, and other persons 172.5 residing lawfully in the United States. 172.6 (b) "Qualified noncitizen" means a person who meets one of 172.7 the following immigration criteria: 172.8 (1) admitted for lawful permanent residence according to 172.9 United States Code, title 8; 172.10 (2) admitted to the United States as a refugee according to 172.11 United States Code, title 8, section 1157; 172.12 (3) granted asylum according to United States Code, title 172.13 8, section 1158; 172.14 (4) granted withholding of deportation according to United 172.15 States Code, title 8, section 1253(h); 172.16 (5) paroled for a period of at least one year according to 172.17 United States Code, title 8, section 1182(d)(5); 172.18 (6) granted conditional entrant status according to United 172.19 States Code, title 8, section 1153(a)(7); or 172.20 (7) determined to be a battered noncitizen by the United 172.21 States Attorney General according to the Illegal Immigration 172.22 Reform and Immigrant Responsibility Act of 1996, title V of the 172.23 Omnibus Consolidated Appropriations Bill, Public Law Number 172.24 104-200. 172.25 (c) All qualified noncitizens who were residing in the 172.26 United States before August 22, 1996, who otherwise meet the 172.27 eligibility requirements of chapter 256B, are eligible for 172.28 medical assistance with federal financial participation. 172.29 (d) All qualified noncitizens who entered the United States 172.30 on or after August 22, 1996, and who otherwise meet the 172.31 eligibility requirements of chapter 256B, are eligible for 172.32 medical assistance with federal financial participation through 172.33 November 30, 1996. 172.34 Beginning December 1, 1996, qualified noncitizens who 172.35 entered the United States on or after August 22, 1996, and who 172.36 otherwise meet the eligibility requirements of chapter 256B are 173.1 eligible for medical assistance with federal participation for 173.2 five years if they meet one of the following criteria: 173.3 (i) refugees admitted to the United States according to 173.4 United States Code, title 8, section 1157; 173.5 (ii) persons granted asylum according to United States 173.6 Code, title 8, section 1158; 173.7 (iii) persons granted withholding of deportation according 173.8 to United States code, title 8, section 1253(h); 173.9 (iv) veterans of the United States Armed Forces with an 173.10 honorable discharge for a reason other than noncitizen status, 173.11 their spouses and unmarried minor dependent children; or 173.12 (v) persons on active duty in the United States Armed 173.13 Forces, other than for training, their spouses and unmarried 173.14 minor dependent children. 173.15 Beginning December 1, 1996, qualified noncitizens who do 173.16 not meet one of the criteria in items (i) to (v) are eligible 173.17 for medical assistance without federal financial participation 173.18 as described in paragraph (j). 173.19 (e) Noncitizens who are not qualified noncitizens as 173.20 defined in paragraph (b), who are lawfully residing in the 173.21 United States and who otherwise meet the eligibility 173.22 requirements of chapter 256B, are eligible for medical 173.23 assistance under clauses (1) to (3). These individuals must 173.24 cooperate with the Immigration and Naturalization Service to 173.25 pursue any applicable immigration status, including citizenship, 173.26 that would qualify them for medical assistance with federal 173.27 financial participation. 173.28 (1) Persons who were medical assistance recipients on 173.29 August 22, 1996, are eligible for medical assistance with 173.30 federal financial participation through December 31, 1996. 173.31 (2) Beginning January 1, 1997, persons described in clause 173.32 (1) are eligible for medical assistance without federal 173.33 financial participation as described in paragraph (j). 173.34 (3) Beginning December 1, 1996, persons residing in the 173.35 United States prior to August 22, 1996, who were not receiving 173.36 medical assistance and persons who arrived on or after August 174.1 22, 1996, are eligible for medical assistance without federal 174.2 financial participation as described in paragraph (j). 174.3 (f) Nonimmigrants who otherwise meet the eligibility 174.4 requirements of chapter 256B are eligible for the benefits as 174.5 provided in paragraphs (g) to (i). For purposes of this 174.6 subdivision, a "nonimmigrant" is a person in one of the classes 174.7 listed in United States Code, title 8, section 1101(a)(15). 174.8 (g) Payment shall also be made for care and services that 174.9 are furnished to noncitizens, regardless of immigration status, 174.10 who otherwise meet the eligibility requirements of chapter 256B, 174.11 if such care and services are necessary for the treatment of an 174.12 emergency medical condition, except for organ transplants and 174.13 related care and services and routine prenatal care. 174.14 (h) For purposes of this subdivision, the term "emergency 174.15 medical condition" means a medical condition that meets the 174.16 requirements of United States Code, title 42, section 1396b(v). 174.17 (i) Pregnant noncitizens who are undocumented or 174.18 nonimmigrants, who otherwise meet the eligibility requirements 174.19 of chapter 256B, are eligible for medical assistance payment 174.20 without federal financial participation for care and services 174.21 through the period of pregnancy, and 60 days postpartum, except 174.22 for labor and delivery. 174.23 (j) Qualified noncitizens as described in paragraph (d), 174.24 and all other noncitizens lawfully residing in the United States 174.25 as described in paragraph (e), who are ineligible for medical 174.26 assistance with federal financial participation and who 174.27 otherwise meet the eligibility requirements of chapter 256B and 174.28 of this paragraph, are eligible for medical assistance without 174.29 federal financial participation. Qualified noncitizens as 174.30 described in paragraph (d) are only eligible for medical 174.31 assistance without federal financial participation for five 174.32 years from their date of entry into the United States. 174.33 (k) The commissioner shall submit to the legislature by 174.34 December 31, 1998, a report on the number of recipients and cost 174.35 of coverage of care and services made according to paragraphs 174.36 (i) and (j). 175.1 Sec. 20. Minnesota Statutes 1996, section 256B.06, is 175.2 amended by adding a subdivision to read: 175.3 Subd. 5. [DEEMING OF SPONSOR INCOME AND RESOURCES.] When 175.4 determining eligibility for any federal or state funded medical 175.5 assistance under this section, the income and resources of all 175.6 noncitizens shall be deemed to include their sponsors' income 175.7 and resources as required under the Personal Responsibility and 175.8 Work Opportunity Reconciliation Act of 1996, title IV, Public 175.9 Law Number 104-193, sections 421 and 422. This section is 175.10 effective the day following final enactment. 175.11 Sec. 21. Minnesota Statutes 1996, section 256B.062, is 175.12 amended to read: 175.13 256B.062 [CONTINUED ELIGIBILITY.] 175.14 Medical assistance may be paid for persons who received aid 175.15 to families with dependent children in at least three of the six 175.16 months preceding the month in which the person became ineligible 175.17 for aid to families with dependent children, if the 175.18 ineligibility was due to an increase in hours of employment or 175.19 employment income or due to the loss of an earned income 175.20 disregard. A person who is eligible for extended medical 175.21 assistance is entitled to six months of assistance without 175.22 reapplication, unless the assistance unit ceases to include a 175.23 dependent child. For a person under 21 years of age, medical 175.24 assistance may not be discontinued within the six-month period 175.25 of extended eligibility until it has been determined that the 175.26 person is not otherwise eligible for medical assistance. 175.27 Medical assistance may be continued for an additional six months 175.28 if the person meets all requirements for the additional six 175.29 months, according to Title XIX of the Social Security Act, as 175.30 amended by section 303 of the Family Support Act of 1988, Public 175.31 Law Number 100-485. This section is repealed effective March 175.32 31, 1998. 175.33 Sec. 22. [256B.0635] [CONTINUED ELIGIBILITY IN SPECIAL 175.34 CIRCUMSTANCES.] 175.35 Subdivision 1. [INCREASED EMPLOYMENT.] Beginning January 175.36 1, 1998, medical assistance may be paid for persons who received 176.1 MFIP-S or medical assistance for families and children in at 176.2 least three of six months preceding the month in which the 176.3 person became ineligible for MFIP-S or medical assistance, if 176.4 the ineligibility was due to an increase in hours of employment 176.5 or employment income or due to the loss of an earned income 176.6 disregard. In addition, to receive continued assistance under 176.7 this section, persons who received medical assistance for 176.8 families and children but did not receive MFIP-S must have had 176.9 income less than or equal to the assistance standard for their 176.10 family size under the state's AFDC plan in effect as of July 16, 176.11 1996, as required by the Personal Responsibility and Work 176.12 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 176.13 Number 104-193, at the time medical assistance eligibility 176.14 began. A person who is eligible for extended medical assistance 176.15 is entitled to six months of assistance without reapplication, 176.16 unless the assistance unit ceases to include a dependent child. 176.17 For a person under 21 years of age, medical assistance may not 176.18 be discontinued within the six-month period of extended 176.19 eligibility until it has been determined that the person is not 176.20 otherwise eligible for medical assistance. Medical assistance 176.21 may be continued for an additional six months if the person 176.22 meets all requirements for the additional six months, according 176.23 to Title XIX of the Social Security Act, as amended by section 176.24 303 of the Family Support Act of 1988, Public Law Number 100-485. 176.25 Subd. 2. [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 176.26 January 1, 1998, medical assistance may be paid for persons who 176.27 received MFIP-S or medical assistance for families and children 176.28 in at least three of the six months preceding the month in which 176.29 the person became ineligible for MFIP-S or medical assistance, 176.30 if the ineligibility was the result of the collection of child 176.31 or spousal support under part D of title IV. In addition, to 176.32 receive continued assistance under this section, persons who 176.33 received medical assistance for families and children but did 176.34 not receive MFIP-S must have had income less than or equal to 176.35 the assistance standard for their family size under the state's 176.36 AFDC plan in effect as of July 16, 1996, as required by the 177.1 Personal Responsibility and Work Opportunity Reconciliation Act 177.2 of 1996 (PRWORA), Public Law Number 104-193, at the time medical 177.3 assistance eligibility began. A person who is eligible for 177.4 extended medical assistance under this subdivision is entitled 177.5 to four months of assistance without reapplication, unless the 177.6 assistance unit ceases to include a dependent child. For a 177.7 person under 21 years of age, medical assistance may not be 177.8 discontinued within the four-month period of extended 177.9 eligibility until it has been determined that the person is not 177.10 otherwise eligible for medical assistance. 177.11 Sec. 23. Minnesota Statutes 1996, section 256D.01, 177.12 subdivision 1, is amended to read: 177.13 Subdivision 1. [POLICY.] The objectives of sections 177.14 256D.01 to 256D.21 are to provide a sound administrative 177.15 structure for public assistance programs; to maximize the use of 177.16 federal money for public assistance purposes; to provide an 177.17 integrated public assistance program for all personseligible 177.18 households in the state without adequate income or resources to 177.19 maintain a subsistence reasonably compatible with decency and 177.20 health; and to provide services to help employable and 177.21 potentially employable persons prepare for and attain 177.22 self-sufficiency and obtain permanent work. 177.23 It is declared to bethe policy of this state that persons177.24 eligible households unable to provide for themselves and not 177.25 otherwise provided for by law andwho meet the eligibility 177.26 requirements of sections 256D.01 to 256D.21 are entitled to 177.27 receive grants of general assistance necessary to maintain a 177.28 subsistence reasonably compatible with decency and health. 177.29 Providing this assistance is a matter of public concern and a 177.30 necessity in promoting the public health and welfare. 177.31 Sec. 24. Minnesota Statutes 1996, section 256D.01, 177.32 subdivision 1a, is amended to read: 177.33 Subd. 1a. [STANDARDS.] (a) A principal objective in 177.34 providing general assistance is to provide for personssingle 177.35 adults, childless couples, or children as defined in section 177.36 256D.02, subdivision 6, ineligible for federal programs who are 178.1 unable to provide for themselves. The minimum standard of 178.2 assistance determines the total amount of the general assistance 178.3 grant without separate standards for shelter, utilities, or 178.4 other needs. 178.5 (b) The commissioner shall set the standard of assistance 178.6 for an assistance unit consisting of an adult recipient who is 178.7 childless and unmarried or living apart from children and spouse 178.8 and who does not live with a parent or parents or a legal 178.9 custodian. When the other standards specified in this 178.10 subdivision increase, this standard must also be increased by 178.11 the same percentage. 178.12 (c) For an assistance unit consisting of a single adult who 178.13 lives with a parent or parents, the general assistance standard 178.14 of assistance is the amount that the aid to families with 178.15 dependent children standard of assistance, in effect on July 16, 178.16 1996, would increase if the recipient were added as an 178.17 additional minor child to an assistance unit consisting of the 178.18 recipient's parent and all of that parent's family members, 178.19 except that the standard may not exceed the standard for a 178.20 general assistance recipient living alone. Benefits received by 178.21 a responsible relative of the assistance unit under the 178.22 supplemental security income program, a workers' compensation 178.23 program, the Minnesota supplemental aid program, or any other 178.24 program based on the responsible relative's disability, and any 178.25 benefits received by a responsible relative of the assistance 178.26 unit under the social security retirement program, may not be 178.27 counted in the determination of eligibility or benefit level for 178.28 the assistance unit. Except as provided below, the assistance 178.29 unit is ineligible for general assistance if the available 178.30 resources or the countable income of the assistance unit and the 178.31 parent or parents with whom the assistance unit lives are such 178.32 that a family consisting of the assistance unit's parent or 178.33 parents, the parent or parents' other family members and the 178.34 assistance unit as the only or additional minor child would be 178.35 financially ineligible for general assistance. For the purposes 178.36 of calculating the countable income of the assistance unit's 179.1 parent or parents, the calculation methods, income deductions, 179.2 exclusions, and disregards used when calculating the countable 179.3 income for a single adult or childless couple must be used. 179.4 (d) For an assistance unit consisting of a childless 179.5 couple, the standards of assistance are the same as the first 179.6 and second adult standards of the aid to families with dependent 179.7 children program in effect on July 16, 1996. If one member of 179.8 the couple is not included in the general assistance grant, the 179.9 standard of assistance for the other is the second adult 179.10 standard of the aid to families with dependent children program. 179.11 (e) For an assistance unit consisting of all members of a179.12 family, the standards of assistance are the same as the179.13 standards of assistance that apply to a family under the aid to179.14 families with dependent children program if that family had the179.15 same number of parents and children as the assistance unit under179.16 general assistance and if all members of that family were179.17 eligible for the aid to families with dependent children179.18 program. If one or more members of the family are not included179.19 in the assistance unit for general assistance, the standards of179.20 assistance for the remaining members are the same as the179.21 standards of assistance that apply to an assistance unit179.22 composed of the entire family, less the standards of assistance179.23 for a family of the same number of parents and children as those179.24 members of the family who are not in the assistance unit for179.25 general assistance. In no case shall the standard for family179.26 members who are in the assistance unit for general assistance,179.27 when combined with the standard for family members who are not179.28 in the general assistance unit, total more than the standard for179.29 the entire family if all members were in an AFDC assistance179.30 unit. A child may not be excluded from the assistance unit179.31 unless income intended for its benefit is received from a179.32 federally aided categorical assistance program or supplemental179.33 security income. The income of a child who is excluded from the179.34 assistance unit may not be counted in the determination of179.35 eligibility or benefit level for the assistance unit.179.36 (f) An assistance unit consisting of one or more members of180.1 a family must have its grant determined using the policies and180.2 procedures of the aid to families with dependent children180.3 program, except that, until June 30, 1995, in cases where a180.4 county agency has developed or approved a case plan that180.5 includes reunification with the children, foster care180.6 maintenance payments made under state or local law for a child180.7 who is temporarily absent from the assistance unit must not be180.8 considered income to the child and the payments must not be180.9 counted in the determination of the eligibility or benefit level180.10 of the assistance unit. Otherwise, the standard of assistance180.11 must be determined according to paragraph (e); the first $50 of180.12 total child support received by an assistance unit in a month180.13 must be excluded and the balance counted as unearned income.180.14 Sec. 25. Minnesota Statutes 1996, section 256D.01, 180.15 subdivision 1e, is amended to read: 180.16 Subd. 1e. [RULES REGARDING EMERGENCY ASSISTANCE.] In order180.17 to maximize the use of federal funds,The commissioner shall 180.18 adopt rules , to the extent permitted by federal law, for180.19 eligibility for the emergency assistance program under aid to180.20 families with dependent children, andunder the terms of 180.21 sections 256D.01 to 256D.21 for general assistance, to require 180.22 use of the emergency program under aid to families with 180.23 dependent children or MFIP-S as the primary financial resource 180.24 when available. The commissioner shall adopt rules for 180.25 eligibility for general assistance of persons with seasonal 180.26 income and may attribute seasonal income to other periods not in 180.27 excess of one year from receipt by an applicant or recipient. 180.28 General assistance payments may not be made for foster care, 180.29 child welfare services, or other social services. Vendor 180.30 payments and vouchers may be issued only as authorized in 180.31 sections 256D.05, subdivision 6, and 256D.09. 180.32 Sec. 26. Minnesota Statutes 1996, section 256D.02, 180.33 subdivision 6, is amended to read: 180.34 Subd. 6. "Child" means an adult or minorchild, a person 180.35 who qualifies for assistance under section 256D.05, subdivision 180.36 1, paragraph (a), clause (10), or until March 31, 1998, the 181.1 minor child of an individual. 181.2 Sec. 27. Minnesota Statutes 1996, section 256D.02, 181.3 subdivision 12a, is amended to read: 181.4 Subd. 12a. [RESIDENT.] (a) For purposes of eligibility for 181.5 general assistance and general assistance medical care, a person 181.6 must be a resident of this state. 181.7 (b) A "resident" is a person living in the state for at 181.8 least 30 days with the intention of making the person's home 181.9 here and not for any temporary purpose. Time spent in a shelter 181.10 for battered women shall count toward satisfying the 30-day 181.11 residency requirement. All applicants for these programs are 181.12 required to demonstrate the requisite intent and can do so in 181.13 any of the following ways: 181.14 (1) by showing that the applicant maintains a residence at 181.15 a verified address, other than a place of public accommodation. 181.16 An applicant may verify a residence address by presenting a 181.17 valid state driver's license, a state identification card, a 181.18 voter registration card, a rent receipt, a statement by the 181.19 landlord, apartment manager, or homeowner verifying that the 181.20 individual is residing at the address, or other form of 181.21 verification approved by the commissioner; or 181.22 (2) by verifying residence in accordance withaccording to 181.23 Minnesota Rules, part 9500.1219, subpart 3, item C. 181.24 (b)(c) An applicant who has been in the state for less181.25 than 30 days shall be considered a resident if the applicant can181.26 provide documentation:181.27 (1) that the applicant was born in the state;181.28 (2) that the applicant has been a long-time resident of the181.29 state or was formerly a resident of the state for at least 365181.30 days and is returning to the state from a temporary absence, as181.31 those terms are defined in rules adopted by the commissioner;181.32 (3) that the applicant has come to the state to join a181.33 close relative which, for purposes of this subdivision, means a181.34 parent, grandparent, brother, sister, spouse, or child; or181.35 (4) that the applicant has come to this state to accept a181.36 bona fide offer of employment for which the applicant is182.1 eligible.182.2 For general assistance medical care, a county agency shall 182.3 waive the 30-day residency requirement in cases of emergencies,182.4 includingmedical emergencies , or where unusual hardship would182.5 result from denial of general assistance medical care. For 182.6 general assistance, a county mayshall waive the 30-day 182.7 residency requirement in cases of emergencies, including medical182.8 emergencies, orwhere unusual hardship would result from denial 182.9 of general assistance. For purposes of this subdivision, 182.10 "unusual hardship" means the applicant is without shelter or is 182.11 without available resources for food. 182.12 The county agency must report to the commissioner within 30 182.13 days on any waiver granted under this section. The county shall 182.14 not deny an application solely because the applicant does not 182.15 meet at least one of the criteria in this subdivision, but shall 182.16 continue to process the application and leave the application 182.17 pending until the residency requirement is met or until 182.18 eligibility or ineligibility is established. 182.19 (d) For purposes of paragraph (c), the following 182.20 definitions apply (1) "metropolitan statistical area" is as 182.21 defined by the U.S. Census Bureau; (2) "shelter" includes any 182.22 shelter that is located within the metropolitan statistical area 182.23 containing the county and for which the applicant is eligible, 182.24 provided the applicant does not have to travel more than 20 182.25 miles to reach the shelter and has access to transportation to 182.26 the shelter. Clause (2) does not apply to counties in the 182.27 Minneapolis-St. Paul metropolitan statistical area. 182.28 (e) Migrant workers as defined in section 256J.08 and, 182.29 until March 31, 1998, their immediate families are exempt from 182.30 the 30-day residency requirement, provided the migrant worker 182.31 provides verification that the migrant family worked in this 182.32 state within the last 12 months and earned at least $1,000 in 182.33 gross wages during the time the migrant worker worked in this 182.34 state. 182.35 (f) For purposes of eligibility for emergency general 182.36 assistance, the 30-day residency requirement in paragraph (b) 183.1 shall not be waived. 183.2 (g) If any provision of this subdivision is enjoined from 183.3 implementation or found unconstitutional by any court of 183.4 competent jurisdiction, the remaining provisions shall remain 183.5 valid and shall be given full effect. 183.6 Sec. 28. [256D.024] [PERSONS PROHIBITED FROM RECEIVING 183.7 GENERAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, MINNESOTA 183.8 SUPPLEMENTAL AID.] 183.9 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 183.10 an applicant has been convicted of a drug offense after July 1, 183.11 1997, the assistance unit is ineligible for benefits under this 183.12 chapter until five years after the applicant has completed terms 183.13 of the court-ordered sentence, unless the person is 183.14 participating in a drug treatment program, has successfully 183.15 completed a drug treatment program, or has been assessed by the 183.16 county and determined not to be in need of a drug treatment 183.17 program. Persons subject to the limitations of this subdivision 183.18 who become eligible for assistance under this chapter shall be 183.19 subject to random drug testing as a condition of continued 183.20 eligibility and shall lose eligibility for benefits for five 183.21 years beginning the month following: 183.22 (1) any positive test result for an illegal controlled 183.23 substance; or (2) discharge of sentence after conviction for 183.24 another drug felony. 183.25 (b) For the purposes of this subdivision, "drug offense" 183.26 means a conviction that occurred after July 1, 1997, of sections 183.27 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 183.28 means a conviction in another jurisdiction of the possession, 183.29 use, or distribution of a controlled substance, or conspiracy to 183.30 commit any of these offenses, if the offense occurred after July 183.31 1, 1997, and the conviction is a felony offense in that 183.32 jurisdiction, or in the case of New Jersey, a high misdemeanor. 183.33 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 183.34 condition of probation or parole or supervised release imposed 183.35 under federal law or the law of any state is ineligible to 183.36 receive benefits under this chapter. 184.1 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 184.2 avoid prosecution, or custody, or confinement after conviction 184.3 for a crime that is a felony under the laws of the jurisdiction 184.4 from which the individual flees, or in the case of New Jersey, 184.5 is a high misdemeanor, is ineligible to receive benefits under 184.6 this chapter. 184.7 Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 184.8 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 184.9 individual who is convicted in federal or state court of having 184.10 made a fraudulent statement or representation with respect to 184.11 the place of residence of the individual in order to receive 184.12 assistance simultaneously from two or more states is ineligible 184.13 to receive benefits under this chapter for ten years beginning 184.14 on the date of the conviction. 184.15 Sec. 29. Minnesota Statutes 1996, section 256D.03, 184.16 subdivision 3, is amended to read: 184.17 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 184.18 (a) General assistance medical care may be paid for any person 184.19 who is not eligible for medical assistance under chapter 256B, 184.20 including eligibility for medical assistance based on a 184.21 spenddown of excess income according to section 256B.056, 184.22 subdivision 5, and: 184.23 (1) who is receiving assistance under section 256D.05, or 184.24 who is having a payment made on the person's behalf under 184.25 sections 256I.01 to 256I.06; or 184.26 (2)(i) who is a resident of Minnesota; and whose equity in 184.27 assets is not in excess of $1,000 per assistance unit. No asset 184.28 test shall be applied to children and their parents living in 184.29 the same household. Exempt assets, the reduction of excess 184.30 assets, and the waiver of excess assets must conform to the 184.31 medical assistance program in chapter 256B, with the following 184.32 exception: the maximum amount of undistributed funds in a trust 184.33 that could be distributed to or on behalf of the beneficiary by 184.34 the trustee, assuming the full exercise of the trustee's 184.35 discretion under the terms of the trust, must be applied toward 184.36 the asset maximum; and 185.1 (ii) who has countable income not in excess of the 185.2 assistance standards established in section 256B.056, 185.3 subdivision 4, or whose excess income is spent down pursuant185.4 according to section 256B.056, subdivision 5, using a six-month 185.5 budget period, except that a one-month budget period must be 185.6 used for recipients residing in a long-term care facility. The 185.7 method for calculating earned income disregards and deductions 185.8 for a person who resides with a dependent child under age 21 185.9 shall be as specified in section 256.74, subdivision 1follow 185.10 section 256B.056. However, if a disregard of $30 and one-third 185.11 of the remainder described in section 256.74, subdivision 1, 185.12 clause (4), has been applied to the wage earner's income, the 185.13 disregard shall not be applied again until the wage earner's 185.14 income has not been considered in an eligibility determination 185.15 for general assistance, general assistance medical care, medical 185.16 assistance, oraid to families with dependent children or MFIP-S 185.17 for 12 consecutive months. The earned income and work expense 185.18 deductions for a person who does not reside with a dependent 185.19 child under age 21 shall be the same as the method used to 185.20 determine eligibility for a person under section 256D.06, 185.21 subdivision 1, except the disregard of the first $50 of earned 185.22 income is not allowed; or 185.23 (3) who would be eligible for medical assistance except 185.24 that the person resides in a facility that is determined by the 185.25 commissioner or the federal health care financing administration 185.26 to be an institution for mental diseases. 185.27 (b) Eligibility is available for the month of application, 185.28 and for three months prior to application if the person was 185.29 eligible in those prior months. A redetermination of 185.30 eligibility must occur every 12 months. 185.31 (c) General assistance medical care is not available for a 185.32 person in a correctional facility unless the person is detained 185.33 by law for less than one year in a county correctional or 185.34 detention facility as a person accused or convicted of a crime, 185.35 or admitted as an inpatient to a hospital on a criminal hold 185.36 order, and the person is a recipient of general assistance 186.1 medical care at the time the person is detained by law or 186.2 admitted on a criminal hold order and as long as the person 186.3 continues to meet other eligibility requirements of this 186.4 subdivision. 186.5 (d) General assistance medical care is not available for 186.6 applicants or recipients who do not cooperate with the county 186.7 agency to meet the requirements of medical assistance. 186.8 (e) In determining the amount of assets of an individual, 186.9 there shall be included any asset or interest in an asset, 186.10 including an asset excluded under paragraph (a), that was given 186.11 away, sold, or disposed of for less than fair market value 186.12 within the 60 months preceding application for general 186.13 assistance medical care or during the period of eligibility. 186.14 Any transfer described in this paragraph shall be presumed to 186.15 have been for the purpose of establishing eligibility for 186.16 general assistance medical care, unless the individual furnishes 186.17 convincing evidence to establish that the transaction was 186.18 exclusively for another purpose. For purposes of this 186.19 paragraph, the value of the asset or interest shall be the fair 186.20 market value at the time it was given away, sold, or disposed 186.21 of, less the amount of compensation received. For any 186.22 uncompensated transfer, the number of months of ineligibility, 186.23 including partial months, shall be calculated by dividing the 186.24 uncompensated transfer amount by the average monthly per person 186.25 payment made by the medical assistance program to skilled 186.26 nursing facilities for the previous calendar year. The 186.27 individual shall remain ineligible until this fixed period has 186.28 expired. The period of ineligibility may exceed 30 months, and 186.29 a reapplication for benefits after 30 months from the date of 186.30 the transfer shall not result in eligibility unless and until 186.31 the period of ineligibility has expired. The period of 186.32 ineligibility begins in the month the transfer was reported to 186.33 the county agency, or if the transfer was not reported, the 186.34 month in which the county agency discovered the transfer, 186.35 whichever comes first. For applicants, the period of 186.36 ineligibility begins on the date of the first approved 187.1 application. 187.2 (f) When determining eligibility for any state benefits 187.3 under this subdivision, the income and resources of all 187.4 noncitizens shall be deemed to include their sponsor's income 187.5 and resources as defined in the Personal Responsibility and Work 187.6 Opportunity Reconciliation Act of 1996, title IV, Public Law 187.7 Number 104-193, sections 421 and 422. 187.8 (f)(g)(1) Beginning October 1, 1993,An undocumented alien187.9 noncitizen or a nonimmigrant is ineligible for general 187.10 assistance medical care other than emergency services. For 187.11 purposes of this subdivision, a nonimmigrant is an individual in 187.12 one or more of the classes listed in United States Code, title 187.13 8, section 1101(a)(15), and an undocumented aliennoncitizen is 187.14 an individual who resides in the United States without the 187.15 approval or acquiescence of the Immigration and Naturalization 187.16 Service. 187.17 (2) This subdivisionparagraph does not apply to a child 187.18 under age 18, to a Cuban or Haitian entrant as defined in Public 187.19 Law Number 96-422, section 501(e)(1) or (2)(a), or to an aliena 187.20 noncitizen who is aged, blind, or disabled as defined in United187.21 States Code, title 42, section 1382c(a)(1)Code of Federal 187.22 Regulations, title 42, sections 435.520, 435.530, 435.531, 187.23 435.540, and 435.541, who cooperates with the Immigration and 187.24 Naturalization Service to pursue any applicable immigration 187.25 status, including citizenship, that would qualify the individual 187.26 for medical assistance with federal financial participation. 187.27 (3) For purposes of paragraph (f), "emergency services" has 187.28 the meaning given in Code of Federal Regulations, title 42, 187.29 section 440.255(b)(1), except that it also means services 187.30 rendered because of suspected or actual pesticide poisoning. 187.31 (4) Notwithstanding any other provision of law, a 187.32 noncitizen who is ineligible for medical assistance due to the 187.33 deeming of a sponsor's income and resources, is ineligible for 187.34 general assistance medical care. 187.35 Sec. 30. Minnesota Statutes 1996, section 256D.05, 187.36 subdivision 1, is amended to read: 188.1 Subdivision 1. [ELIGIBILITY.] (a) Each person or family188.2 whoseassistance unit with income and resources areless than 188.3 the standard of assistance established by the commissioner 188.4 and with a member who is a resident of the state shall be 188.5 eligible for and entitled to general assistance if the person or188.6 familyassistance unit is: 188.7 (1) a person who is suffering from a professionally 188.8 certified permanent or temporary illness, injury, or incapacity 188.9 which is expected to continue for more than 30 days and which 188.10 prevents the person from obtaining or retaining employment; 188.11 (2) a person whose presence in the home on a substantially 188.12 continuous basis is required because of the professionally 188.13 certified illness, injury, incapacity, or the age of another 188.14 member of the household; 188.15 (3) a person who has been placed in, and is residing in, a 188.16 licensed or certified facility for purposes of physical or 188.17 mental health or rehabilitation, or in an approved chemical 188.18 dependency domiciliary facility, if the placement is based on 188.19 illness or incapacity and is pursuantaccording to a plan 188.20 developed or approved by the county agency through its director 188.21 or designated representative; 188.22 (4) a person who resides in a shelter facility described in 188.23 subdivision 3; 188.24 (5) a person not described in clause (1) or (3) who is 188.25 diagnosed by a licensed physician, psychological practitioner, 188.26 or other qualified professional, as mentally retarded or 188.27 mentally ill, and that condition prevents the person from 188.28 obtaining or retaining employment; 188.29 (6) a person who has an application pending for, or is 188.30 appealing termination of benefits from, the social security 188.31 disability program or the program of supplemental security 188.32 income for the aged, blind, and disabled, provided the person 188.33 has a professionally certified permanent or temporary illness, 188.34 injury, or incapacity which is expected to continue for more 188.35 than 30 days and which prevents the person from obtaining or 188.36 retaining employment; 189.1 (7) a person who is unable to obtain or retain employment 189.2 because advanced age significantly affects the person's ability 189.3 to seek or engage in substantial work; 189.4 (8) a person who has been assessed by a vocational 189.5 specialist and, in consultation with the county agency, has been 189.6 determined to be unemployable for purposes of this item,clause; 189.7 a person is considered employable if there exist positions of 189.8 employment in the local labor market, regardless of the current 189.9 availability of openings for those positions, that the person is 189.10 capable of performing. The person's eligibility under this 189.11 category must be reassessed at least annually. The county 189.12 agency must provide notice to the person not later than 30 days 189.13 before annual eligibility under this item ends, informing the 189.14 person of the date annual eligibility will end and the need for 189.15 vocational assessment if the person wishes to continue 189.16 eligibility under this clause. For purposes of establishing 189.17 eligibility under this clause, it is the applicant's or 189.18 recipient's duty to obtain any needed vocational assessment; 189.19 (9) a person who is determined by the county agency, in189.20 accordance withaccording to permanent rules adopted by the 189.21 commissioner, to be learning disabled, provided that if a 189.22 rehabilitation plan for the person is developed or approved by 189.23 the county agency, the person is following the plan; 189.24 (10) a child under the age of 18 who is not living with a 189.25 parent, stepparent, or legal custodian, butand only if: the 189.26 child is legally emancipated or living with an adult with the 189.27 consent of an agency acting as a legal custodian; the child is 189.28 at least 16 years of age and the general assistance grant is 189.29 approved by the director of the county agency or a designated 189.30 representative as a component of a social services case plan for 189.31 the child; or the child is living with an adult with the consent 189.32 of the child's legal custodian and the county agency. For 189.33 purposes of this clause, "legally emancipated" means a person 189.34 under the age of 18 years who: (i) has been married; (ii) is on 189.35 active duty in the uniformed services of the United States; 189.36 (iii) has been emancipated by a court of competent jurisdiction; 190.1 or (iv) is otherwise considered emancipated under Minnesota law, 190.2 and for whom county social services has not determined that a 190.3 social services case plan is necessary, for reasons other 190.4 than thatthe child has failed or refuses to cooperate with the 190.5 county agency in developing the plan; 190.6 (11) until March 31, 1998, a woman in the last trimester of 190.7 pregnancy who does not qualify for aid to families with 190.8 dependent children. A woman who is in the last trimester of 190.9 pregnancy who is currently receiving aid to families with 190.10 dependent children may be granted emergency general assistance 190.11 to meet emergency needs; 190.12 (12) a person who is eligible for displaced homemaker 190.13 services, programs, or assistance under section 268.96, but only 190.14 if that person is enrolled as a full-time student; 190.15 (13) a person who lives more than twofour hours 190.16 round-trip traveling time from any potential suitable 190.17 employment; 190.18 (14) a person who is involved with protective or 190.19 court-ordered services that prevent the applicant or recipient 190.20 from working at least four hours per day; 190.21 (15)(i) until March 31, 1998, a family as defined in 190.22 section 256D.02, subdivision 5, which is ineligible for the aid 190.23 to families with dependent children program. 190.24 (ii) unless exempt under section 256D.051, subdivision 3a, 190.25 each adult in the unit must participate in and cooperate with 190.26 the food stamp employment and training program under section 190.27 256D.051 each month that the unit receives general assistance 190.28 benefits. The recipient's participation must begin no later 190.29 than the first day of the first full month following the 190.30 determination of eligibility for general assistance benefits. 190.31 To the extent of available resources, and with the county 190.32 agency's consent, the recipient may voluntarily continue to 190.33 participate in food stamp employment and training services for 190.34 up to three additional consecutive months immediately following 190.35 termination of general assistance benefits in order to complete 190.36 the provisions of the recipient's employability development 191.1 plan. If an adult member fails without good cause to 191.2 participate in or cooperate with the food stamp employment and 191.3 training program, the county agency shall concurrently terminate 191.4 that person's eligibility for general assistance and food stamps 191.5 for two months or until compliance is achieved, whichever is191.6 shorter,using the notice, good cause, conciliation and 191.7 termination procedures specified in section 256D.051; or 191.8 (16) a person over age 18 whose primary language is not 191.9 English and who is attending high school at least half time; 191.10 (17) a person whose alcohol and drug addiction is a 191.11 material factor that contributes to the person's disability; 191.12 applicants who assert this clause as a basis for eligibility 191.13 must be assessed by the county agency to determine if they are 191.14 amenable to treatment; if the applicant is determined to be not 191.15 amenable to treatment, but is otherwise eligible for benefits, 191.16 then general assistance must be paid in vendor form, up to the 191.17 limit of the individual's shelter costs; if the applicant is 191.18 determined to be amenable to treatment, then in order to receive 191.19 benefits, the applicant must be in a treatment program or on a 191.20 waiting list and the benefits must be paid in vendor form, up to 191.21 the limit of the individual's shelter costs. 191.22 (b) Persons or families who are not state residents but who191.23 are otherwise eligible for general assistance may receive191.24 emergency general assistance to meet emergency needs.191.25 (c)As a condition of eligibility under paragraph (a), 191.26 clauses (1), (3), (5), (8), and (9), the recipient must complete 191.27 an interim assistance agreement and must apply for other 191.28 maintenance benefits as specified in section 256D.06, 191.29 subdivision 5, and must comply with efforts to determine the 191.30 recipient's eligibility for those other maintenance benefits. 191.31 (d)(c) The burden of providing documentation for a county 191.32 agency to use to verify eligibility for general assistance or 191.33 for exemption from the food stamp employment and training 191.34 program is upon the applicant or recipient. The county agency 191.35 shall use documents already in its possession to verify 191.36 eligibility, and shall help the applicant or recipient obtain 192.1 other existing verification necessary to determine eligibility 192.2 which the applicant or recipient does not have and is unable to 192.3 obtain. 192.4 Sec. 31. Minnesota Statutes 1996, section 256D.05, 192.5 subdivision 2, is amended to read: 192.6 Subd. 2. [USE OF FEDERAL FUNDS.] Effective March 31, 1998, 192.7 notwithstanding any law to the contrary, if any persona single 192.8 adult or childless couple otherwise eligible for general 192.9 assistance would, but for state statutory restriction or 192.10 limitation, be eligible for a fundedfederally aided assistance 192.11 program providing benefits equal to or greater than those of 192.12 general assistance, the personsingle adult or childless couple 192.13 shall be eligible for that federally aided program and 192.14 ineligible for general assistance; provided, however, that (a) 192.15 nothing in this section shall be construed to extend eligibility 192.16 for federally aided programs to persons not otherwise eligible 192.17 for general assistance; (b) this section shall not be effective 192.18 to the extent that federal law or regulation require new 192.19 eligibility for federal programs to persons not otherwise 192.20 eligible for general assistance; and (c) nothing in this section 192.21 shall deny general assistance to a person otherwise eligible who 192.22 is determined ineligible for a substitute federally aided 192.23 program. 192.24 Sec. 32. Minnesota Statutes 1996, section 256D.05, 192.25 subdivision 5, is amended to read: 192.26 Subd. 5. [TRANSFERS OF PROPERTY.] The equity value of real 192.27 and personal property transferred without reasonable 192.28 compensation within 12 months preceding the date of application 192.29 for general assistance must be included in determining the 192.30 resources of an assistance unit in the same manner as in the aid 192.31 to families with dependent children program under chapter 256 or 192.32 MFIP-S under chapter 256J. 192.33 Sec. 33. Minnesota Statutes 1996, section 256D.05, 192.34 subdivision 7, is amended to read: 192.35 Subd. 7. [INELIGIBILITY FOR GENERAL ASSISTANCE.] No person192.36 single adult or childless couple shall be eligible for general 193.1 assistance during a period of disqualification because of 193.2 sanctions , from any federally aided assistance program; or if193.3 the person could be considered an essential person under section193.4 256.74, subdivision 1. 193.5 Sec. 34. Minnesota Statutes 1996, section 256D.05, 193.6 subdivision 8, is amended to read: 193.7 Subd. 8. [ PERSONS INELIGIBLECITIZENSHIP.] (a) Beginning193.8 October 1, 1993, an undocumented alien or a nonimmigrant is193.9 ineligible for general assistance benefits. For purposes of193.10 this subdivision, a nonimmigrant is an individual in one or more193.11 of the classes listed in United States Code, title 8, section193.12 1101(a)(15), and an undocumented alien is an individual who193.13 resides in the United States without the approval or193.14 acquiescence of the Immigration and Naturalization Service.193.15 (b) This subdivision does not apply to a child under age193.16 18, to a Cuban or Haitian entrant as defined in Public Law193.17 Number 96-422, section 501(e)(1) or (2)(a), or to an alien who193.18 is aged, blind, or disabled as defined in United States Code,193.19 title 42, section 1382c(a)(1).(a) Effective July 1, 1997, 193.20 citizenship requirements for applicants and recipients under 193.21 sections 256D.01 to 256D.03, subdivision 2, and 256D.04 to 193.22 256D.21 shall be determined the same as under section 256J.11, 193.23 except that legal noncitizens who are applicants or recipients 193.24 must have been residents of Minnesota on March 1, 1997. Legal 193.25 noncitizens who arrive in Minnesota after March 1, 1997, and 193.26 become elderly or disabled after that date, and are otherwise 193.27 eligible for general assistance can receive benefits under this 193.28 section. The income and assets of sponsors of noncitizens shall 193.29 be deemed available to general assistance applicants and 193.30 recipients according to the Personal Responsibility and Work 193.31 Opportunity Reconciliation Act of 1996, Public Law Number 193.32 104-193, Title IV, sections 421 and 422. 193.33 (b) As a condition of eligibility, each legal adult 193.34 noncitizen in the assistance unit who has resided in the country 193.35 for four years or more and who is under 70 years of age must: 193.36 (1) be enrolled in a literacy class, English as a second 194.1 language class, or a citizen class; 194.2 (2) be applying for admission to a literacy class, English 194.3 as a second language class, and is on a waiting list; 194.4 (3) be in the process of applying for a waiver from the 194.5 Immigration and Naturalization Service of the English language 194.6 or civics requirements of the citizenship test; 194.7 (4) have submitted an application for citizenship to the 194.8 Immigration and Naturalization Service and is waiting for a 194.9 testing date or a subsequent swearing in ceremony; or 194.10 (5) have been denied citizenship due to a failure to pass 194.11 the test after two attempts or because of an inability to 194.12 understand the rights and responsibilities of becoming a United 194.13 States citizen, as documented by the Immigration and 194.14 Naturalization Service or the county. 194.15 Sec. 35. Minnesota Statutes 1996, section 256D.051, 194.16 subdivision 1a, is amended to read: 194.17 Subd. 1a. [NOTICES ; CONCILIATION CONFERENCE;AND 194.18 SANCTIONS.] (a) At the time the county agency notifies the 194.19 household that it is eligible for food stamps, the county agency 194.20 must inform all mandatory employment and training services 194.21 participants as identified in subdivision 1 in the household 194.22 that they must comply with all food stamp employment and 194.23 training program requirements each month, including the 194.24 requirement to attend an initial orientation to the food stamp 194.25 employment and training program and that food stamp eligibility 194.26 will end unless the participants comply with the requirements 194.27 specified in the notice. 194.28 (b) A participant who fails without good cause to comply 194.29 with food stamp employment and training program requirements of 194.30 this section, including attendance at orientation, will lose 194.31 food stamp eligibility for two months or until the county agency194.32 determines that the participant has complied with the program194.33 requirements, whichever is shorter.the following periods: 194.34 (1) for the first occurrence, for one month or until the 194.35 person complies with the requirements not previously complied 194.36 with, whichever is longer; 195.1 (2) for the second occurrence, for three months or until 195.2 the person complies with the requirements not previously 195.3 complied with, whichever is longer; or 195.4 (3) for the third and any subsequent occurrence, for six 195.5 months or until the person complies with the requirements not 195.6 previously complied with, whichever is longer. 195.7 If the participant is not the food stamp head of household, 195.8 the person shall be considered an ineligible household member 195.9 for food stamp purposes. If the participant is the food stamp 195.10 head of household, the entire household is ineligible for food 195.11 stamps as provided in Code of Federal Regulations, title 7, 195.12 section 273.7(g). "Good cause" means circumstances beyond the 195.13 control of the participant, such as illness or injury, illness 195.14 or injury of another household member requiring the 195.15 participant's presence, a household emergency, or the inability 195.16 to obtain child care for children between the ages of six and 12 195.17 or to obtain transportation needed in order for the participant 195.18 to meet the food stamp employment and training program 195.19 participation requirements. 195.20 (c) The county agency shall mail or hand deliver a notice 195.21 to the participant not later than five days after determining 195.22 that the participant has failed without good cause to comply 195.23 with food stamp employment and training program requirements 195.24 which specifies the requirements that were not complied with, 195.25 the factual basis for the determination of noncompliance, and 195.26 the right to reinstate eligibility upon a showing of good 195.27 cause or thefor failure to meet the requirements ,. The notice 195.28 must ask the reason for the noncompliance ,and mustidentify the 195.29 participant's appeal rights. The notice must request that the 195.30 participant inform the county agency if the participant believes 195.31 that good cause existed for the failure to comply , must offer195.32 the participant a conciliation conference as provided in195.33 paragraph (d),and must state that the county agency intends to 195.34 terminate eligibility for food stamp benefits due to failure to 195.35 comply with food stamp employment and training program 195.36 requirements. 196.1 (d) The county agency must offer a conciliation conference196.2 to participants who have failed to comply with food stamp196.3 employment and training program requirements. The purpose of196.4 the conference is to determine the cause for noncompliance, to196.5 attempt to resolve the problem causing the noncompliance so that196.6 all requirements are complied with, and to determine if good196.7 cause for noncompliance was present. The conciliation period196.8 shall run for ten working days from the date of the notice196.9 required in paragraph (c). Information about how to request a196.10 conciliation conference must be specified in the notice required196.11 in paragraph (c). If the county agency determines that the196.12 participant, during the conciliation period, complied with all196.13 food stamp employment and training program requirements that the196.14 recipient was required to comply with prior to and during the196.15 conciliation period, or if the county agency determines that196.16 good cause for failing to comply with the requirements was196.17 present, a sanction on the participant's or household's food196.18 stamp eligibility shall not be imposed.196.19 (e)If the county agency determines that the participant 196.20 did not comply during the conciliation periodmonth with all 196.21 food stamp employment and training program requirements that 196.22 were in effect prior to and during the conciliation period, and 196.23 if the county agency determines that good cause was not present, 196.24 the county must provide a ten-day notice of termination of food 196.25 stamp benefits. The termination notice must be issued following196.26 the last day of the conciliation period.The amount of food 196.27 stamps that are withheld from the household and determination of 196.28 the impact of the sanction on other household members is 196.29 governed by Code of Federal Regulations, title 7, section 273.7. 196.30 (f)(e) The participant may appeal the termination of food 196.31 stamp benefits under the provisions of section 256.045. 196.32 Sec. 36. Minnesota Statutes 1996, section 256D.051, 196.33 subdivision 2a, is amended to read: 196.34 Subd. 2a. [DUTIES OF COMMISSIONER.] In addition to any 196.35 other duties imposed by law, the commissioner shall: 196.36 (1) based on this section and section 256D.052 and Code of 197.1 Federal Regulations, title 7, section 273.7, supervise the 197.2 administration of food stamp employment and training services to 197.3 county agencies; 197.4 (2) disburse money appropriated for food stamp employment 197.5 and training services to county agencies based upon the county's 197.6 costs as specified in section 256D.06; 197.7 (3) accept and supervise the disbursement of any funds that 197.8 may be provided by the federal government or from other sources 197.9 for use in this state for food stamp employment and training 197.10 services; and197.11 (4) cooperate with other agencies including any agency of 197.12 the United States or of another state in all matters concerning 197.13 the powers and duties of the commissioner under this section and 197.14 section 256D.052; and 197.15 (5) in cooperation with the commissioner of economic 197.16 security, ensure that each component of an employment and 197.17 training program carried out under this section is delivered 197.18 through a statewide workforce development system, unless the 197.19 component is not available locally through such a system. 197.20 Sec. 37. Minnesota Statutes 1996, section 256D.051, 197.21 subdivision 3a, is amended to read: 197.22 Subd. 3a. [PERSONS REQUIRED TO REGISTER FOR AND 197.23 PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 197.24 (a) To the extent required under Code of Federal Regulations, 197.25 title 7, section 273.7(a), each applicant for and recipient of 197.26 food stamps is required to register for work as a condition of 197.27 eligibility for food stamp benefits. Applicants and recipients 197.28 are registered by signing an application or annual reapplication 197.29 for food stamps, and must be informed that they are registering 197.30 for work by signing the form. 197.31 (b) The commissioner shall determine, within federal 197.32 requirements, persons required to participate in the food stamp 197.33 employment and training (FSET) program. 197.34 (c) The following food stamp recipients are exempt from 197.35 mandatory participation in food stamp employment and training 197.36 services: 198.1 (1) recipients of benefits under the AFDC program, the 198.2 MFIP-S, MFIP, and MFIP-R programs, Minnesota supplemental aid 198.3 program, or the general assistance program , except that an adult198.4 who receives general assistance under section 256D.05,198.5 subdivision 1, paragraph (b), is not exempt unless that person198.6 qualifies under one of the remaining exemption provisions in198.7 this paragraph; 198.8 (2) a child; 198.9 (3) a recipient over age 55; 198.10 (4) a recipient who has a mental or physical illness, 198.11 injury, or incapacity which is expected to continue for at least 198.12 30 days and which impairs the recipient's ability to obtain or 198.13 retain employment as evidenced by professional certification or 198.14 the receipt of temporary or permanent disability benefits issued 198.15 by a private or government source; 198.16 (5) a parent or other household member responsible for the 198.17 care of either a dependent child in the household who is under 198.18 age six or a person in the household who is professionally 198.19 certified as having a physical or mental illness, injury, or 198.20 incapacity. Only one parent or other household member may claim 198.21 exemption under this provision; 198.22 (6) a recipient receiving unemployment compensation or who 198.23 has applied for unemployment compensation and has been required 198.24 to register for work with the department of economic security as 198.25 part of the unemployment compensation application process; 198.26 (7) a recipient participating each week in a drug addiction 198.27 or alcohol abuse treatment and rehabilitation program, provided 198.28 the operators of the treatment and rehabilitation program, in 198.29 consultation with the county agency, recommend that the 198.30 recipient not participate in the food stamp employment and 198.31 training program; 198.32 (8) a recipient employed or self-employed for 30 or more 198.33 hours per week at employment paying at least minimum wage, or 198.34 who earns wages from employment equal to or exceeding 30 hours 198.35 multiplied by the federal minimum wage; or 198.36 (9) a student enrolled at least half time in any school, 199.1 training program, or institution of higher education. When 199.2 determining if a student meets this criteria, the school's, 199.3 program's or institution's criteria for being enrolled half time 199.4 shall be used. 199.5 Sec. 38. Minnesota Statutes 1996, section 256D.051, is 199.6 amended by adding a subdivision to read: 199.7 Subd. 18. [WORK EXPERIENCE PLACEMENTS.] (a) To the extent 199.8 of available resources, each county agency must establish and 199.9 operate a work experience component in the food stamp employment 199.10 and training program for recipients who are subject to a federal 199.11 limit of three months of food stamp eligibility in any 36-month 199.12 period. The purpose of the work experience component is to 199.13 enhance the participant's employability, self-sufficiency, and 199.14 to provide meaningful, productive work activities. 199.15 (b) The commissioner shall assist counties in the design 199.16 and implementation of these components. The commissioner must 199.17 ensure that job placements under a work experience component 199.18 comply with section 256J.72. Written or oral concurrence with 199.19 job duties of persons placed under the community work experience 199.20 program shall be obtained from the appropriate exclusive 199.21 bargaining representative. 199.22 (c) Worksites developed under this section are limited to 199.23 projects that serve a useful public service such as health, 199.24 social service, environmental protection, education, urban and 199.25 rural development and redevelopment, welfare, recreation, public 199.26 facilities, public safety, community service, services to aged 199.27 or disabled citizens, and child care. To the extent possible, 199.28 the prior training, skills, and experience of a recipient must 199.29 be used in making appropriate work experience assignments. 199.30 (d) Structured, supervised volunteer work with an agency or 199.31 organization that is monitored by the county service provider 199.32 may, with the approval of the county agency, be used as a work 199.33 experience placement. 199.34 (e) As a condition of placing a person receiving food 199.35 stamps in a program under this subdivision, the county agency 199.36 shall first provide the recipient the opportunity: 200.1 (1) for placement in suitable subsidized or unsubsidized 200.2 employment through participation in job search under section 200.3 256D.051; or 200.4 (2) for placement in suitable employment through 200.5 participation in on-the-job training, if such employment is 200.6 available. 200.7 (f) The county agency shall limit the maximum monthly 200.8 number of hours that any participant may work in a work 200.9 experience placement to a number equal to the amount of the 200.10 family's monthly food stamp allotment divided by the greater of 200.11 the federal minimum wage or the applicable state minimum wage. 200.12 After a participant has been assigned to a position for 200.13 nine months, the participant may not continue in that assignment 200.14 unless the maximum number of hours a participant works is no 200.15 greater than the amount of the food stamp benefit divided by the 200.16 rate of pay for individuals employed in the same or similar 200.17 occupations by the same employer at the same site. 200.18 (g) The participant's employability development plan must 200.19 include the length of time needed in the work experience 200.20 program, the need to continue job seeking activities while 200.21 participating in work experience, and the participant's 200.22 employment goals. 200.23 (h) After each six months of a recipient's participation in 200.24 a work experience job placement, and at the conclusion of each 200.25 work experience assignment under this section, the county agency 200.26 shall reassess and revise, as appropriate, the participant's 200.27 employability development plan. 200.28 (i) A participant has good cause for failure to cooperate 200.29 with a work experience job placement if, in the judgment of the 200.30 employment and training service provider, the reason for failure 200.31 is reasonable and justified. Good cause for purposes of this 200.32 section is defined in subdivision 1a, paragraph (b). 200.33 (j) A recipient who has failed without good cause to 200.34 participate in or comply with the work experience job placement 200.35 shall be terminated from participation in work experience job 200.36 activities. If the recipient is not exempt from mandatory food 201.1 stamp employment and training program participation under 201.2 subdivision 3a, the recipient will be assigned to other 201.3 mandatory program activities. If the recipient is exempt from 201.4 mandatory participation but is participating as a volunteer, the 201.5 person shall be terminated from the food stamp employment and 201.6 training program. 201.7 Sec. 39. [256D.0510] [FEDERAL WAIVER.] 201.8 The commissioner shall exercise the authority granted by 201.9 Public Law Number 104-193, Title VIII, section 824, and request 201.10 the secretary of the United States Department of Agriculture to 201.11 grant waivers of the federal food stamp work requirements of 201.12 section 824, for every county and reservation in which: 201.13 (1) the county or reservation has an unemployment rate over 201.14 ten percent; or 201.15 (2) the county or reservation does not have a sufficient 201.16 number of jobs to provide employment for individuals. 201.17 Sec. 40. [256D.0512] [BUDGETING LUMP SUMS.] 201.18 Effective January 1, 1998, nonrecurring lump-sum income 201.19 received by a recipient of general assistance must be budgeted 201.20 in the normal retrospective cycle. 201.21 Sec. 41. Minnesota Statutes 1996, section 256D.055, is 201.22 amended to read: 201.23 256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 201.24 The commissioner of human services shall issue a request 201.25 for proposals from counties to submit a plan for developing and 201.26 implementing a county-designed program. The plan shall be for 201.27 first-time applicants for aid to families with dependent201.28 children (AFDC) and family general assistance (FGA)Minnesota 201.29 family investment program-statewide (MFIP-S) and, until March 201.30 31, 1998, aid to families with dependent children and family 201.31 general assistance and must emphasize the importance of becoming 201.32 employed and oriented into the work force in order to become 201.33 self-sufficient. The plan must target public assistance 201.34 applicants who are most likely to become self-sufficient quickly 201.35 with short-term assistance or services such as child care, child 201.36 support enforcement, or employment and training services. 202.1 The plan may include vendor payments, mandatory job search, 202.2 refocusing existing county or provider efforts, or other program 202.3 features. The commissioner may approve a county plan which 202.4 allows a county to use other program funding for the county work 202.5 focus program in a more flexible manner. Nothing in this 202.6 section shall allow payments made to the public assistance 202.7 applicant to be less than the amount the applicant would have 202.8 received if the program had not been implemented, or reduce or 202.9 eliminate a category of eligible participants from the program 202.10 without legislative approval. 202.11 The commissioner shall not approve a county plan that would 202.12 have an adverse impact on the Minnesota family investment plan 202.13 demonstration. If the plan is approved by the commissioner, the 202.14 county may implement the plan. If the plan is approved by the 202.15 commissioner, but a federal waiver is necessary to implement the 202.16 plan, the commissioner shall apply for the necessary federal 202.17 waivers. 202.18 Sec. 42. [256D.057] [SUPPLEMENT FOR CERTAIN NONCITIZENS.] 202.19 (a) For the period from July 1, 1997, to June 30, 1998, for 202.20 an assistance unit that contains an adult or a minor legal 202.21 noncitizen who was residing in this state as of July 1, 1997, 202.22 and lost eligibility for the federal food stamp and Supplemental 202.23 Security Income programs under the provisions of title IV of 202.24 Public Law Number 104-193, the standard is $87 for each legal 202.25 noncitizen under this section. To be eligible for benefits 202.26 under this section, each legal adult noncitizen in the 202.27 assistance unit who has resided in the country for four years or 202.28 more and is under 70 years of age must: 202.29 (1) be enrolled in a literacy class, English as a second 202.30 language class, or a citizenship class; 202.31 (2) be applying for admission to a literacy class, English 202.32 as a second language class, or a citizenship class, and is 202.33 enrolled within 60 days of receiving the increased grant amount 202.34 under this paragraph; 202.35 (3) be in the process of applying for a waiver from the 202.36 Immigration and Naturalization Service of the English language 203.1 or civics requirement of the citizenship test; 203.2 (4) have submitted an application for citizenship to the 203.3 Immigration and Naturalization Service and is waiting for a 203.4 testing date or a subsequent swearing in ceremony; or 203.5 (5) have been denied citizenship due to a failure to pass 203.6 the test after two attempts or due to a denial of the 203.7 application for naturalization because of an inability to 203.8 understand the rights and responsibilities of becoming a citizen. 203.9 If the county social service agency determines that a legal 203.10 noncitizen subject to the requirements of this subdivision will 203.11 require more than one year of English language training, then 203.12 the requirements of clause (1) or (2) shall be imposed after the 203.13 legal noncitizen has resided in the country for three years. 203.14 Individuals who reside in a facility licensed under chapter 203.15 144A, 144D, 245A, or 256I are exempt from the requirements of 203.16 this section. 203.17 (b) The assistance provided under this section, which is 203.18 designated as a supplement to replace lost benefits under the 203.19 food stamp program, must be disregarded as income in federal and 203.20 state housing subsidy programs, low-income home energy 203.21 assistance programs, and other programs that do not count food 203.22 stamps as income. 203.23 Sec. 43. Minnesota Statutes 1996, section 256D.06, 203.24 subdivision 2, is amended to read: 203.25 Subd. 2. Notwithstanding the provisions of subdivision 1, 203.26 a grant of general assistance shall be made to an eligible 203.27 individual,single adult, married couple, or family for an 203.28 emergency need, as defined in rules promulgated by the 203.29 commissioner, where the recipient requests temporary assistance 203.30 not exceeding 30 days if an emergency situation appears to exist 203.31 and (a) until March 31, 1998, the individual is ineligible for 203.32 the program of emergency assistance under aid to families with 203.33 dependent children and is not a recipient of aid to families 203.34 with dependent children at the time of application hereunder; or 203.35 (b) the individual or family is (i) ineligible for MFIP-S or is 203.36 not a participant of MFIP-S; and (ii) is ineligible for 204.1 emergency assistance under section 256J.48. If an applicant or 204.2 recipient relates facts to the county agency which may be 204.3 sufficient to constitute an emergency situation, the county 204.4 agency shall advise the person of the procedure for applying for 204.5 assistance pursuantaccording to this subdivision. 204.6 Sec. 44. [256D.066] [INTERSTATE PAYMENT STANDARDS.] 204.7 (a) Effective July 1, 1997, the amount of assistance paid 204.8 to an eligible assistance unit in which all members have resided 204.9 in this state for less than 12 consecutive calendar months 204.10 immediately preceding the date of application shall be the 204.11 lesser of either the payment standard that would have been 204.12 received by the assistance unit from the state of immediate 204.13 prior residence, or the amount calculated in accordance with 204.14 this chapter. The lesser payment shall continue until the 204.15 assistance unit meets the 12-month requirement. Payment shall 204.16 be calculated by applying this state's budgeting policies and 204.17 the unit's net income shall be deducted from the payment 204.18 standard in the other state or in this state, whichever is 204.19 lower. At county option, payment shall be made in vendor form 204.20 for rent and utilities, up to the limit of the grant amount, and 204.21 residual amounts, if any, shall be paid directly to the 204.22 assistance unit. 204.23 (b) During the first 12 months an assistance unit resides 204.24 in this state, the number of months that the unit is eligible to 204.25 receive general assistance benefits is limited to the number of 204.26 months the unit would have been eligible to receive similar 204.27 benefits in the state of immediate prior residence. 204.28 (c) This policy applies whether or not the unit received 204.29 similar benefits while residing in the state of previous 204.30 residence. 204.31 (d) When a unit moves to this state from another state 204.32 where the unit has exhausted that state's time limit for 204.33 receiving similar benefits, the unit will not be eligible to 204.34 receive any general assistance benefits in this state for 12 204.35 months from the date the unit moves here. 204.36 (e) Applicants must provide verification of their state of 205.1 immediate prior residence, in the form of tax statements, a 205.2 driver's license, automobile registration, rent receipts, or 205.3 other forms of verification approved by the commissioner. 205.4 (f) For the purposes of this subdivision, "state of 205.5 immediate prior residence" means: 205.6 (i) the state in which the applicant declares the applicant 205.7 spent the most time in the 30 days prior to moving to this 205.8 state; or 205.9 (ii) the applicant is in the migrant work stream and the 205.10 applicant maintains a home in another state. 205.11 (g) Migrant workers as defined in section 256J.08 and until 205.12 March 31, 1998, their immediate families are exempt from this 205.13 section, provided the migrant worker provides verification that 205.14 the migrant family worked in this state within the last 12 205.15 months and earned at least $1,000 in gross wages during the time 205.16 the migrant worker worked in this state. 205.17 Sec. 45. Minnesota Statutes 1996, section 256D.08, 205.18 subdivision 1, is amended to read: 205.19 Subdivision 1. In determining eligibility of a family,205.20 married couple, or individual there shall be excludedan 205.21 assistance unit, the following resources shall be excluded: 205.22 (1) real or personal property or liquid assets which do not 205.23 exceed those permitted under the federally aided assistance205.24 program known as aid to families with dependent children$1,000; 205.25 and 205.26 (2) other property which has been determined, in accordance205.27 with and subjectaccording to limitations contained in rules 205.28 promulgated by the commissioner, to be essential to the family205.29 or individualthe assistance unit as a means of self-support or 205.30 self-care or which is producing income that is being used for 205.31 the support of the individual or familyassistance unit. The 205.32 commissioner shall further provide by rule the conditions for 205.33 those situations in which property not excluded under this 205.34 subdivision may be retained by the family or individual205.35 assistance unit where there is a reasonable probability that in 205.36 the foreseeable future the property will be used for the 206.1 self-support of the individual or familyassistance unit; and 206.2 (3) payments, made pursuantaccording to litigation and 206.3 subsequent appropriation by the United States Congress, of funds 206.4 to compensate members of Indian tribes for the taking of tribal 206.5 land by the federal government. 206.6 Sec. 46. Minnesota Statutes 1996, section 256D.08, 206.7 subdivision 2, is amended to read: 206.8 Subd. 2. Notwithstanding any other provision of sections 206.9 256D.01 to 256D.21, the commissioner shall provide by rule for 206.10 the exclusion of property from the determination of eligibility 206.11 for general assistance when it appears likely that the need for 206.12 general assistance will not exceed 30 days or an undue hardship 206.13 would be imposed on an individual or familyan assistance unit 206.14 by the forced disposal of the property. 206.15 Sec. 47. Minnesota Statutes 1996, section 256D.09, is 206.16 amended by adding a subdivision to read: 206.17 Subd. 2b. [DISABILITY VERIFICATION; DRUG OR ALCOHOL 206.18 DEPENDENCY.] If at any time there is verification that the 206.19 client's disability is dependent upon the client's continued 206.20 drug addiction or alcoholism, general assistance for rent and 206.21 utilities must be made in the form of vendor payments. 206.22 Verification of drug addiction or alcoholism can be 206.23 received from: 206.24 (1) denial of social security benefits based on drug 206.25 addiction or alcoholism; 206.26 (2) a statement from the state medical review team that the 206.27 person's disability is dependent upon continued drug addiction 206.28 or alcoholism; or 206.29 (3) a doctor's statement that the person's disability is 206.30 dependent upon continued drug addiction or alcoholism. 206.31 Sec. 48. Minnesota Statutes 1996, section 256D.435, 206.32 subdivision 3, is amended to read: 206.33 Subd. 3. [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 206.34 Persons who live with the applicant or recipient, who have unmet 206.35 needs and for whom the applicant or recipient has financial 206.36 responsibility, must apply for and, if eligible, accept AFDC and 207.1 any other federally funded benefits, including MFIP-S. 207.2 Sec. 49. Minnesota Statutes 1996, section 256D.44, 207.3 subdivision 5, is amended to read: 207.4 Subd. 5. [SPECIAL NEEDS.] In addition to the state 207.5 standards of assistance established in subdivisions 1 to 4, 207.6 payments are allowed for the following special needs of 207.7 recipients of Minnesota supplemental aid who are not residents 207.8 of a nursing home, a regional treatment center, or a group 207.9 residential housing facility :. 207.10 (a) The county agency shall pay a monthly allowance for 207.11 medically prescribed diets payable under the AFDC program or the 207.12 Minnesota family investment program-statewide if the cost of 207.13 those additional dietary needs cannot be met through some other 207.14 maintenance benefit. 207.15 (b) Payment for nonrecurring special needs must be allowed 207.16 for necessary home repairs or necessary repairs or replacement 207.17 of household furniture and appliances using the payment standard 207.18 of the AFDC program in effect on July 16, 1996, for these 207.19 expenses, as long as other funding sources are not available. 207.20 (c) A fee for guardian or conservator service is allowed at 207.21 a reasonable rate negotiated by the county or approved by the 207.22 court. This rate shall not exceed five percent of the 207.23 assistance unit's gross monthly income up to a maximum of $100 207.24 per month. If the guardian or conservator is a member of the 207.25 county agency staff, no fee is allowed. 207.26 (d) The county agency shall continue to pay a monthly 207.27 allowance of $68 for restaurant meals for a person who was 207.28 receiving a restaurant meal allowance on June 1, 1990, and who 207.29 eats two or more meals in a restaurant daily. The allowance 207.30 must continue until the person has not received Minnesota 207.31 supplemental aid for one full calendar month or until the 207.32 person's living arrangement changes and the person no longer 207.33 meets the criteria for the restaurant meal allowance, whichever 207.34 occurs first. 207.35 (e) A fee of ten percent of the recipient's gross income or 207.36 $25, whichever is less, is allowed for representative payee 208.1 services provided by an agency that meets the requirements under 208.2 SSI regulations to charge a fee for representative payee 208.3 services. This special need is available to all recipients of 208.4 Minnesota supplemental aid regardless of their living 208.5 arrangement. 208.6 Sec. 50. Minnesota Statutes 1996, section 256G.03, 208.7 subdivision 2, is amended to read: 208.8 Subd. 2. [NO DURATIONAL TEST.] Except as otherwise 208.9 provided in sections 256.73, subdivisions 1 and 1b; 256B.056, 208.10 subdivision 1; and256D.02, subdivision 12a, and 256J.12 for 208.11 purposes of this chapter, no waiting period is required before 208.12 securing county or state residence. A person cannot, however, 208.13 gain residence while physically present in an excluded time 208.14 facility unless otherwise specified in this chapter or in a 208.15 federal regulation controlling a federally funded human service 208.16 program. Interstate migrants who enter a shelter for battered 208.17 women directly from another state can gain residency while in 208.18 the facility provided the person can provide documentation that 208.19 the person is a victim of domestic abuse as defined in section 208.20 256J.49, subdivision 2, and the county determines that the 208.21 placement is appropriate; and the commissioner of human services 208.22 is authorized to make per diem payments under section 256D.05, 208.23 subdivision 3, on behalf of such individuals. 208.24 Sec. 51. Minnesota Statutes 1996, section 256G.05, 208.25 subdivision 2, is amended to read: 208.26 Subd. 2. [NON-MINNESOTA RESIDENTS.] State residence is not 208.27 required for receiving emergency assistance in the general208.28 assistance,general assistance medical care, and Minnesota 208.29 supplemental aid programs only. The receipt of emergency 208.30 assistance must not be used as a factor in determining county or 208.31 state residence. 208.32 Sec. 52. Minnesota Statutes 1996, section 259.67, 208.33 subdivision 4, is amended to read: 208.34 Subd. 4. [ELIGIBILITY CONDITIONS.] (a) The placing agency 208.35 shall determineuse the AFDC requirements as specified in 208.36 federal law, when determining the child's eligibility for 209.1 adoption assistance under title IV-E of the Social Security 209.2 Act. If the child does not qualify, the placing agency shall 209.3 certify a child as eligible for state funded adoption assistance 209.4 only if the following criteria are met: 209.5 (1) Due to the child's characteristics or circumstances it 209.6 would be difficult to provide the child an adoptive home without 209.7 adoption assistance. 209.8 (2)(i) A placement agency has made reasonable efforts to 209.9 place the child for adoption without adoption assistance, but 209.10 has been unsuccessful; or 209.11 (ii) the child's licensed foster parents desire to adopt 209.12 the child and it is determined by the placing agency that the 209.13 adoption is in the best interest of the child. 209.14 (3) The child has been a ward of the commissioner or a 209.15 Minnesota-licensed child-placing agency. 209.16 (b) For purposes of this subdivision, the characteristics 209.17 or circumstances that may be considered in determining whether a 209.18 child is a child with special needs under United States Code, 209.19 title 42, chapter 7, subchapter IV, part E, or meets the 209.20 requirements of paragraph (a), clause (1), are the following: 209.21 (1) The child is a member of a sibling group to be placed 209.22 as one unit in which at least one sibling is older than 15 209.23 months of age or is described in clause (2) or (3). 209.24 (2) The child has documented physical, mental, emotional, 209.25 or behavioral disabilities. 209.26 (3) The child has a high risk of developing physical, 209.27 mental, emotional, or behavioral disabilities. 209.28 (c) When a child's eligibility for adoption assistance is 209.29 based upon the high risk of developing physical, mental, 209.30 emotional, or behavioral disabilities, payments shall not be 209.31 made under the adoption assistance agreement unless and until 209.32 the potential disability manifests itself as documented by an 209.33 appropriate health care professional. 209.34 Sec. 53. [TRANSFER OF RESPONSIBILITIES FOR PROVIDING 209.35 SECURE CRISIS SHELTER.] 209.36 In state fiscal year 2000, all of the powers, duties, and 210.1 functions of the commissioner of human services relating to the 210.2 operation and funding of shelters for battered women are 210.3 transferred to the commissioner of corrections in accordance 210.4 with Minnesota Statutes, section 15.039, except for personnel 210.5 transfers under Minnesota Statutes, section 15.039, subdivision 210.6 7. 210.7 Sec. 54. [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 210.8 Subdivision 1. [FINDINGS.] For purposes of Minnesota 210.9 Statutes, sections 256D.02, subdivision 12a, and 256D.066, the 210.10 legislature makes the following findings: 210.11 (1) the legislature is statutorily required to balance the 210.12 state budget, and, in balancing the state budget, faces 210.13 competing funding priorities with limited resources; 210.14 (2) many states have more restrictive or nonexistent state 210.15 welfare programs to aid needy individuals without children; 210.16 (3) despite likely weaker federal financial support and the 210.17 trend in other states toward more restrictive welfare programs, 210.18 the legislature wishes to continue to manage funds appropriated 210.19 for the general assistance program so that the state may provide 210.20 meaningful assistance for needy Minnesotans without children; 210.21 (4) the legislature intends to provide a safety net for 210.22 recent interstate migrants; 210.23 (5) Minnesota county human service agencies have reported 210.24 to the commissioner of human services verified cases of 210.25 individuals from other states to this state at least in part 210.26 because this state has higher cash assistance benefits; 210.27 (6) the legislature anticipates that, as other states 210.28 further restrict their welfare programs, migration to this state 210.29 by individuals seeking higher welfare benefits will increase 210.30 significantly and may cause expenditures in excess of the funds 210.31 appropriated for this program; 210.32 (7) the policy of the state of Minnesota is to make welfare 210.33 benefits a neutral factor in an individual's decision to move to 210.34 Minnesota, which is required for the state to continue its 210.35 commitment to provide meaningful assistance for needy 210.36 Minnesotans without children; 211.1 (8) if new residents experience any harm under Minnesota 211.2 Statutes, sections 256D.02, subdivision 12a, and 256D.066, such 211.3 harm is mitigated, since new residents, if eligible, can receive 211.4 benefits immediately under a hardship exemption; and in all 211.5 cases, if eligible, can receive cash assistance after 30 days; 211.6 if eligible, they will receive cash assistance based on the 211.7 assistance standard they would have received in their previous 211.8 state of residence for individuals without children; 211.9 (9) without Minnesota Statutes, sections 256D.02, 211.10 subdivision 12a, and 256D.066, the hardship to the state and its 211.11 needy individuals would be great because significant reductions 211.12 in welfare benefits will likely occur; and 211.13 (10) Minnesota Statutes, sections 256D.02, subdivision 12a, 211.14 and 256D.066, advance the public interest of continuing to 211.15 provide meaningful assistance to needy Minnesotans without 211.16 children while providing a safety net for recent interstate 211.17 migrants. 211.18 Subd. 2. [REDUCTION IF COURT ENJOINMENT.] In the event a 211.19 court enjoins enforcement of Minnesota Statutes, section 211.20 256D.02, subdivision 12a, or 256D.066, this subdivision shall 211.21 apply. Beginning July 1, 1997, the commissioner of human 211.22 services shall monitor the number of individual applicants for 211.23 general assistance under this chapter who have lived in this 211.24 state for less than 12 consecutive months and shall implement 211.25 clauses (1) to (3) when the commissioner determines that the 211.26 cumulative number of such applicants since July 1, 1997, has 211.27 reached at least 3,000. The commissioner shall: 211.28 (1) reduce the assistance standards for general assistance 211.29 program under this chapter for all recipients but only in an 211.30 amount sufficient to remain within the forecasted budgets for 211.31 the program; reductions shall take effect beginning with 211.32 payments made at the start of the second calendar month 211.33 following the commissioner's determination that the conditions 211.34 specified in this clause have occurred; 211.35 (2) notify the fiscal and policy chairs of the house and 211.36 senate human services committees that the reductions have taken 212.1 place; and 212.2 (3) formulate a plan to be presented to the next 212.3 legislative session. 212.4 Sec. 55. [TOTAL HOUSEHOLD INCOME COUNTED.] 212.5 Effective January 1, 1999, notwithstanding any provision of 212.6 law to the contrary, eligibility for public assistance, 212.7 including, but not limited to, AFDC, family general assistance, 212.8 MFIP and MFIP-S, and general assistance must count income from 212.9 all unrelated individuals living in the household in order to 212.10 qualify for any of these public assistance programs. 212.11 Sec. 56. [REPEALER.] 212.12 (a) Minnesota Statutes 1996, sections 256.8711; and 212.13 256D.065, are repealed July 1, 1997. 212.14 (b) Minnesota Statutes 1996, sections 256D.02, subdivision 212.15 5; and 256D.0511, are repealed March 31, 1998. 212.16 Sec. 57. [EFFECTIVE DATES.] 212.17 Section 20 is effective the day following final enactment. 212.18 Sections 33 and 45 are effective March 31, 1998. The remaining 212.19 sections in this article are effective July 1, 1997, unless 212.20 specified otherwise in the section. 212.21 ARTICLE 4 212.22 TECHNICAL CHANGES; CROSS REFERENCES 212.23 Section 1. Minnesota Statutes 1996, section 13.46, 212.24 subdivision 1, is amended to read: 212.25 Subdivision 1. [DEFINITIONS.] As used in this section: 212.26 (a) "Individual" means an individual pursuantaccording to 212.27 section 13.02, subdivision 8, but does not include a vendor of 212.28 services. 212.29 (b) "Program" includes all programs for which authority is 212.30 vested in a component of the welfare system pursuantaccording 212.31 to statute or federal law, including, but not limited to, aid to 212.32 families with dependent children, Minnesota family investment 212.33 program-statewide, medical assistance, general assistance, work212.34 readiness,general assistance medical care, and child support 212.35 collections. 212.36 (c) "Welfare system" includes the department of human 213.1 services, local social services agencies, county welfare 213.2 agencies, the public authority responsible for child support 213.3 enforcement, human services boards, community mental health 213.4 center boards, state hospitals, state nursing homes, the 213.5 ombudsman for mental health and mental retardation, and persons, 213.6 agencies, institutions, organizations, and other entities under 213.7 contract to any of the above agencies to the extent specified in 213.8 the contract. 213.9 (d) "Mental health data" means data on individual clients 213.10 and patients of community mental health centers, established 213.11 under section 245.62, mental health divisions of counties and 213.12 other providers under contract to deliver mental health 213.13 services, or the ombudsman for mental health and mental 213.14 retardation. 213.15 (e) "Fugitive felon" means a person who has been convicted 213.16 of a felony and who has escaped from confinement or violated the 213.17 terms of probation or parole for that offense. 213.18 Sec. 2. Minnesota Statutes 1996, section 13.46, 213.19 subdivision 2, is amended to read: 213.20 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 213.21 a statute specifically provides a different classification, data 213.22 on individuals collected, maintained, used, or disseminated by 213.23 the welfare system is private data on individuals, and shall not 213.24 be disclosed except: 213.25 (1) pursuantaccording to section 13.05; 213.26 (2) pursuantaccording to court order; 213.27 (3) pursuantaccording to a statute specifically 213.28 authorizing access to the private data; 213.29 (4) to an agent of the welfare system, including a law 213.30 enforcement person, attorney, or investigator acting for it in 213.31 the investigation or prosecution of a criminal or civil 213.32 proceeding relating to the administration of a program; 213.33 (5) to personnel of the welfare system who require the data 213.34 to determine eligibility, amount of assistance, and the need to 213.35 provide services of additional programs to the individual; 213.36 (6) to administer federal funds or programs; 214.1 (7) between personnel of the welfare system working in the 214.2 same program; 214.3 (8) the amounts of cash public assistance and relief paid 214.4 to welfare recipients in this state, including their names, 214.5 social security numbers, income, addresses, and other data as 214.6 required, upon request by the department of revenue to 214.7 administer the property tax refund law, supplemental housing 214.8 allowance, early refund of refundable tax credits, and the 214.9 income tax. "Refundable tax credits" means the dependent care 214.10 credit under section 290.067, the Minnesota working family 214.11 credit under section 290.0671, the property tax refund under 214.12 section 290A.04, and, if the required federal waiver or waivers 214.13 are granted, the federal earned income tax credit under section 214.14 32 of the Internal Revenue Code; 214.15 (9) to the Minnesota department of economic security for 214.16 the purpose of monitoring the eligibility of the data subject 214.17 for reemployment insurance, for any employment or training 214.18 program administered, supervised, or certified by that agency, 214.19 or for the purpose of administering any rehabilitation program, 214.20 whether alone or in conjunction with the welfare system, and to 214.21 verify receipt of energy assistance for the telephone assistance 214.22 plan; 214.23 (10) to appropriate parties in connection with an emergency 214.24 if knowledge of the information is necessary to protect the 214.25 health or safety of the individual or other individuals or 214.26 persons; 214.27 (11) data maintained by residential programs as defined in 214.28 section 245A.02 may be disclosed to the protection and advocacy 214.29 system established in this state pursuantaccording to Part C of 214.30 Public Law Number 98-527 to protect the legal and human rights 214.31 of persons with mental retardation or other related conditions 214.32 who live in residential facilities for these persons if the 214.33 protection and advocacy system receives a complaint by or on 214.34 behalf of that person and the person does not have a legal 214.35 guardian or the state or a designee of the state is the legal 214.36 guardian of the person; 215.1 (12) to the county medical examiner or the county coroner 215.2 for identifying or locating relatives or friends of a deceased 215.3 person; 215.4 (13) data on a child support obligor who makes payments to 215.5 the public agency may be disclosed to the higher education 215.6 services office to the extent necessary to determine eligibility 215.7 under section 136A.121, subdivision 2, clause (5); 215.8 (14) participant social security numbers and names 215.9 collected by the telephone assistance program may be disclosed 215.10 to the department of revenue to conduct an electronic data match 215.11 with the property tax refund database to determine eligibility 215.12 under section 237.70, subdivision 4a; 215.13 (15) the current address of a recipient of aid to families 215.14 with dependent children or Minnesota family investment 215.15 program-statewide may be disclosed to law enforcement officers 215.16 who provide the name and social security number of the recipient 215.17 and satisfactorily demonstrate that: (i) the recipient is a 215.18 fugitive felon, including the grounds for this determination; 215.19 (ii) the location or apprehension of the felon is within the law 215.20 enforcement officer's official duties; and (iii) the request is 215.21 made in writing and in the proper exercise of those duties; 215.22 (16) the current address of a recipient of general 215.23 assistance , work readiness,or general assistance medical care 215.24 may be disclosed to probation officers and corrections agents 215.25 who are supervising the recipient, and to law enforcement 215.26 officers who are investigating the recipient in connection with 215.27 a felony level offense; 215.28 (17) information obtained from food stamp applicant or 215.29 recipient households may be disclosed to local, state, or 215.30 federal law enforcement officials, upon their written request, 215.31 for the purpose of investigating an alleged violation of the 215.32 food stamp act, in accordance withaccording to Code of Federal 215.33 Regulations, title 7, section 272.1(c); 215.34 (18) data on a child support obligor who is in arrears may 215.35 be disclosed for purposes of publishing the data pursuant215.36 according to section 518.575; 216.1 (19) data on child support payments made by a child support 216.2 obligor may be disclosed to the obligee; 216.3 (20) data in the work reporting system may be disclosed 216.4 under section 256.998, subdivision 7; 216.5 (21) to the department of children, families, and learning 216.6 for the purpose of matching department of children, families, 216.7 and learning student data with public assistance data to 216.8 determine students eligible for free and reduced price meals, 216.9 meal supplements, and free milk pursuantaccording to United 216.10 States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 216.11 and 1773; to produce accurate numbers of students receiving aid 216.12 to families with dependent children or Minnesota family 216.13 investment program-statewide as required by section 124.175; and 216.14 to allocate federal and state funds that are distributed based 216.15 on income of the student's family; or 216.16 (22) the current address and telephone number of program 216.17 recipients and emergency contacts may be released to the 216.18 commissioner of health or a local board of health as defined in 216.19 section 145A.02, subdivision 2, when the commissioner or local 216.20 board of health has reason to believe that a program recipient 216.21 is a disease case, carrier, suspect case, or at risk of illness, 216.22 and the data are necessary to locate the person. 216.23 (b) Information on persons who have been treated for drug 216.24 or alcohol abuse may only be disclosed in accordance with216.25 according to the requirements of Code of Federal Regulations, 216.26 title 42, sections 2.1 to 2.67. 216.27 (c) Data provided to law enforcement agencies under 216.28 paragraph (a), clause (15), (16), or (17), or paragraph (b), are 216.29 investigative data and are confidential or protected nonpublic 216.30 while the investigation is active. The data are private after 216.31 the investigation becomes inactive under section 13.82, 216.32 subdivision 5, paragraph (a) or (b). 216.33 (d) Mental health data shall be treated as provided in 216.34 subdivisions 7, 8, and 9, but is not subject to the access 216.35 provisions of subdivision 10, paragraph (b). 216.36 Sec. 3. Minnesota Statutes 1996, section 84.98, 217.1 subdivision 3, is amended to read: 217.2 Subd. 3. [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 217.3 PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 217.4 determining economic, social, physical, or educational 217.5 disadvantage shall be determined as provided in this subdivision. 217.6 (b) Economically disadvantaged are persons who meet the 217.7 criteria for disadvantaged established by the department of 217.8 economic security or persons receiving services provided by the 217.9 department of human services such as welfare payments, food 217.10 stamps, andaid to families with dependent children or Minnesota 217.11 family investment program-statewide. 217.12 (c) Socially disadvantaged are persons who have been 217.13 classified as persons in need of supervision by the court system. 217.14 (d) Physically disadvantaged are persons who have been 217.15 identified as having special needs by public agencies that deal 217.16 with employment for the disabled. 217.17 (e) Educationally disadvantaged are persons who have 217.18 dropped out of school or are at risk of dropping out of school 217.19 and persons with learning disabilities or in need of special 217.20 education classes. 217.21 Sec. 4. Minnesota Statutes 1996, section 136A.125, 217.22 subdivision 2, is amended to read: 217.23 Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for 217.24 a child care grant if the applicant: 217.25 (1) is a resident of the state of Minnesota; 217.26 (2) has a child 12 years of age or younger, or 14 years of 217.27 age or younger who is handicapped as defined in section 120.03, 217.28 and who is receiving or will receive care on a regular basis 217.29 from a licensed or legal, nonlicensed caregiver; 217.30 (3) is income eligible as determined by the office's 217.31 policies and rules, but is not a recipient of assistance from 217.32 either aid to families with dependent children or Minnesota 217.33 family investment program-statewide; 217.34 (4) has not earned a baccalaureate degree and has been 217.35 enrolled full time less than eight semesters, 12 quarters, or 217.36 the equivalent; 218.1 (5) is pursuing a nonsectarian program or course of study 218.2 that applies to an undergraduate degree, diploma, or 218.3 certificate; 218.4 (6) is enrolled at least half time in an eligible 218.5 institution; and 218.6 (7) is in good academic standing and making satisfactory 218.7 academic progress. 218.8 Sec. 5. Minnesota Statutes 1996, section 196.27, is 218.9 amended to read: 218.10 196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 218.11 (a) Payments received by veterans or their dependents 218.12 because of settlements between them and the manufacturers of 218.13 Agent Orange or other chemical agents, as defined in section 218.14 196.21, must not be treated as income (or an available resource) 218.15 of the veterans or their dependents for the purposes of any 218.16 program of public assistance or benefit program administered by 218.17 the department of veterans affairs, the department of human 218.18 services, or other agencies of the state or political 218.19 subdivisions of the state, except as provided in paragraph (b). 218.20 (b) The income and resource exclusion in paragraph (a) does 218.21 not apply to the medical assistance, food stamps, oraid to 218.22 families with dependent children or Minnesota family investment 218.23 program-statewide programs until the commissioner of human 218.24 services receives formal approval from the United States 218.25 Department of Health and Human Services, for the medical 218.26 assistance and, aid to families with dependent children or 218.27 Minnesota family investment program-statewide programs, and from 218.28 the United States Department of Agriculture, for the food stamps 218.29 program. The income exclusion does not apply to the Minnesota 218.30 supplemental aid program until the commissioner receives formal 218.31 federal approval of the exclusion for the medical assistance 218.32 program. 218.33 Sec. 6. Minnesota Statutes 1996, section 237.70, 218.34 subdivision 4a, is amended to read: 218.35 Subd. 4a. [HOUSEHOLDS ELIGIBLE FOR CREDITS.] The telephone 218.36 assistance plan must provide telephone assistance credit for a 219.1 residential household in Minnesota that meets each of the 219.2 following criteria: 219.3 (1) has a household member who: 219.4 (i) subscribes to local exchange service; and 219.5 (ii) is either disabled or 65 years of age or older; 219.6 (2) whose household income is 150 percent or less of 219.7 federal poverty guidelines or is currently eligible for: 219.8 (i) aid to families with dependent children or Minnesota 219.9 family investment program-statewide; 219.10 (ii) medical assistance; 219.11 (iii) general assistance; 219.12 (iv) Minnesota supplemental aid; 219.13 (v) food stamps; 219.14 (vi) refugee cash assistance or refugee medical assistance; 219.15 (vii) energy assistance; or 219.16 (viii) supplemental security income; and 219.17 (3) who has been certified as eligible for telephone 219.18 assistance plan credits. 219.19 Sec. 7. Minnesota Statutes 1996, section 254B.02, 219.20 subdivision 1, is amended to read: 219.21 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 219.22 The chemical dependency funds appropriated for allocation shall 219.23 be placed in a special revenue account. For the fiscal year 219.24 beginning July 1, 1987, funds shall be transferred to operate 219.25 the vendor payment, invoice processing, and collections system 219.26 for one year. The commissioner shall annually transfer funds 219.27 from the chemical dependency fund to pay for operation of the 219.28 drug and alcohol abuse normative evaluation system and to pay 219.29 for all costs incurred by adding two positions for licensing of 219.30 chemical dependency treatment and rehabilitation programs 219.31 located in hospitals for which funds are not otherwise 219.32 appropriated. The commissioner shall annually divide the money 219.33 available in the chemical dependency fund that is not held in 219.34 reserve by counties from a previous allocation. Twelve percent 219.35 of the remaining money must be reserved for treatment of 219.36 American Indians by eligible vendors under section 254B.05. The 220.1 remainder of the money must be allocated among the counties 220.2 according to the following formula, using state demographer data 220.3 and other data sources determined by the commissioner: 220.4 (a) For purposes of this formula, American Indians and 220.5 children under age 14 are subtracted from the population of each 220.6 county to determine the restricted population. 220.7 (b) The amount of chemical dependency fund expenditures for 220.8 entitled persons for services not covered by prepaid plans 220.9 governed by section 256B.69 in the previous year is divided by 220.10 the amount of chemical dependency fund expenditures for entitled 220.11 persons for all services to determine the proportion of exempt 220.12 service expenditures for each county. 220.13 (c) The prepaid plan months of eligibility is multiplied by 220.14 the proportion of exempt service expenditures to determine the 220.15 adjusted prepaid plan months of eligibility for each county. 220.16 (d) The adjusted prepaid plan months of eligibility is 220.17 added to the number of restricted population fee for service 220.18 months of eligibility for aid to families with dependent 220.19 children, Minnesota family investment program-statewide, general 220.20 assistance, and medical assistance and divided by the county 220.21 restricted population to determine county per capita months of 220.22 covered service eligibility. 220.23 (e) The number of adjusted prepaid plan months of 220.24 eligibility for the state is added to the number of fee for 220.25 service months of eligibility for aid to families with dependent 220.26 children, Minnesota family investment program-statewide, general 220.27 assistance, and medical assistance for the state restricted 220.28 population and divided by the state restricted population to 220.29 determine state per capita months of covered service eligibility. 220.30 (f) The county per capita months of covered service 220.31 eligibility is divided by the state per capita months of covered 220.32 service eligibility to determine the county welfare caseload 220.33 factor. 220.34 (g) The median married couple income for the most recent 220.35 three-year period available for the state is divided by the 220.36 median married couple income for the same period for each county 221.1 to determine the income factor for each county. 221.2 (h) The county restricted population is multiplied by the 221.3 sum of the county welfare caseload factor and the county income 221.4 factor to determine the adjusted population. 221.5 (i) $15,000 shall be allocated to each county. 221.6 (j) The remaining funds shall be allocated proportional to 221.7 the county adjusted population. 221.8 Sec. 8. Minnesota Statutes 1996, section 256.01, 221.9 subdivision 4a, is amended to read: 221.10 Subd. 4a. [TECHNICAL ASSISTANCE FOR IMMUNIZATION 221.11 REMINDERS.] The state agency shall provide appropriate technical 221.12 assistance to county agencies to develop methods to have county 221.13 financial workers remind and encourage recipients of aid to 221.14 families with dependent children, Minnesota family investment 221.15 program-statewide, the Minnesota family investment plan, medical 221.16 assistance, family general assistance, or food stamps whose 221.17 assistance unit includes at least one child under the age of 221.18 five to have each young child immunized against childhood 221.19 diseases. The state agency must examine the feasibility of 221.20 utilizing the capacity of a statewide computer system to assist 221.21 county agency financial workers in performing this function at 221.22 appropriate intervals. 221.23 Sec. 9. Minnesota Statutes 1996, section 256.017, 221.24 subdivision 1, is amended to read: 221.25 Subdivision 1. [AUTHORITY AND PURPOSE.] The commissioner 221.26 shall administer a compliance system for aid to families with 221.27 dependent children, Minnesota family investment 221.28 program-statewide, the food stamp program, emergency assistance, 221.29 general assistance, work readiness,medical assistance, general 221.30 assistance medical care, emergency general assistance, Minnesota 221.31 supplemental assistance, preadmission screening, and alternative 221.32 care grants under the powers and authorities named in section 221.33 256.01, subdivision 2. The purpose of the compliance system is 221.34 to permit the commissioner to supervise the administration of 221.35 public assistance programs and to enforce timely and accurate 221.36 distribution of benefits, completeness of service and efficient 222.1 and effective program management and operations, to increase 222.2 uniformity and consistency in the administration and delivery of 222.3 public assistance programs throughout the state, and to reduce 222.4 the possibility of sanctions and fiscal disallowances for 222.5 noncompliance with federal regulations and state statutes. 222.6 The commissioner shall utilize training, technical 222.7 assistance, and monitoring activities, as specified in section 222.8 256.01, subdivision 2, to encourage county agency compliance 222.9 with written policies and procedures. 222.10 Sec. 10. Minnesota Statutes 1996, section 256.017, 222.11 subdivision 4, is amended to read: 222.12 Subd. 4. [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 222.13 CASE PENALTY.] (a) The amount of the quality control case 222.14 penalty is limited to the amount of the dollar error for the 222.15 quality control sample month in a reviewed case as determined by 222.16 the state quality control review procedures for the aid to 222.17 families with dependent children, Minnesota family investment 222.18 program-statewide and food stamp programs or for any other 222.19 income transfer program for which the commissioner develops a 222.20 quality control program. 222.21 (b) Payment errors in medical assistance or any other 222.22 medical services program for which the department develops a 222.23 quality control program are subject to set rate penalties based 222.24 on the average cost of the specific quality control error 222.25 element for a sample review month for that household size and 222.26 status of institutionalization and as determined from state 222.27 quality control data in the preceding fiscal year for the 222.28 corresponding program. 222.29 (c) Errors identified in negative action cases, such as 222.30 incorrect terminations or denials of assistance are subject to 222.31 set rate penalties based on the average benefit cost of that 222.32 household size as determined from state quality control data in 222.33 the preceding fiscal year for the corresponding program. 222.34 Sec. 11. Minnesota Statutes 1996, section 256.031, 222.35 subdivision 5, is amended to read: 222.36 Subd. 5. [FEDERAL WAIVERS.] In accordance withAccording 223.1 to sections 256.031 to 256.0361 and federal laws authorizing the 223.2 program, the commissioner shall seek waivers of federal 223.3 requirements of: United States Code, title 42, section 601 et 223.4 seq., and United States Code, title 7, section 2011 et seq., 223.5 needed to implement the Minnesota family investment plan in a 223.6 manner consistent with the goals and objectives of the program. 223.7 The commissioner shall seek terms from the federal government 223.8 that are consistent with the goals of the Minnesota family 223.9 investment plan. The commissioner shall also seek terms from 223.10 the federal government that will maximize federal financial 223.11 participation so that the extra costs to the state of 223.12 implementing the program are minimized, to the extent that those 223.13 terms are consistent with the goals of the Minnesota family 223.14 investment plan. An agreement with the federal government under 223.15 this section shall provide that the agreements may be canceled 223.16 by the state or federal government upon 180 days' notice or 223.17 immediately upon mutual agreement. If the agreement is 223.18 canceled, families which cease receiving assistance under the 223.19 Minnesota family investment plan who are eligible for the aid to 223.20 families with dependent children, Minnesota family investment 223.21 program-statewide, general assistance, medical assistance, 223.22 general assistance medical care, or the food stamp program must 223.23 be placed with their consent on the programs for which they are 223.24 eligible. 223.25 Sec. 12. Minnesota Statutes 1996, section 256.046, 223.26 subdivision 1, is amended to read: 223.27 Subdivision 1. [HEARING AUTHORITY.] A local agency may 223.28 initiate an administrative fraud disqualification hearing for 223.29 individuals accused of wrongfully obtaining assistance or 223.30 intentional program violations in the aid to families with 223.31 dependent children, Minnesota family investment 223.32 program-statewide or food stamp programs. The hearing is 223.33 subject to the requirements of section 256.045 and the 223.34 requirements in Code of Federal Regulations, title 7, section 223.35 273.16, for the food stamp program and title 45, section 223.36 235.112, for the aid to families with dependent children program. 224.1 Sec. 13. Minnesota Statutes 1996, section 256.935, 224.2 subdivision 1, is amended to read: 224.3 Subdivision 1. On the death of any person receiving public 224.4 assistance through aid to dependent children or MFIP-S, the 224.5 county agency shall pay an amount for funeral expenses not 224.6 exceeding the amount paid for comparable services under section 224.7 261.035 plus actual cemetery charges. No funeral expenses shall 224.8 be paid if the estate of the deceased is sufficient to pay such 224.9 expenses or if the spouse, who was legally responsible for the 224.10 support of the deceased while living, is able to pay such 224.11 expenses; provided, that the additional payment or donation of 224.12 the cost of cemetery lot, interment, religious service, or for 224.13 the transportation of the body into or out of the community in 224.14 which the deceased resided, shall not limit payment by the 224.15 county agency as herein authorized. Freedom of choice in the 224.16 selection of a funeral director shall be granted to persons 224.17 lawfully authorized to make arrangements for the burial of any 224.18 such deceased recipient. In determining the sufficiency of such 224.19 estate, due regard shall be had for the nature and marketability 224.20 of the assets of the estate. The county agency may grant 224.21 funeral expenses where the sale would cause undue loss to the 224.22 estate. Any amount paid for funeral expenses shall be a prior 224.23 claim against the estate, as provided in section 524.3-805, and 224.24 any amount recovered shall be reimbursed to the agency which 224.25 paid the expenses. The commissioner shall specify requirements 224.26 for reports, including fiscal reports, according to section 224.27 256.01, subdivision 2, paragraph (17). The state share of 224.28 county agency expenditures shall be 50 percent and the county 224.29 share shall be 50 percent. Benefits shall be issued to 224.30 recipients by the state or county and funded according to 224.31 section 256.025, subdivision 3, subject to provisions of section 224.32 256.017. 224.33 Beginning July 1, 1991, the state will reimburse counties 224.34 according to the payment schedule set forth in section 256.025 224.35 for the county share of county agency expenditures made under 224.36 this subdivision from January 1, 1991, on. Payment under this 225.1 subdivision is subject to the provisions of section 256.017. 225.2 Sec. 14. Minnesota Statutes 1996, section 256.981, is 225.3 amended to read: 225.4 256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 225.5 The commissioner of human services shall, to the extent an 225.6 appropriation is provided for this purpose, contract with the 225.7 county attorney's council or other public or private entity 225.8 experienced in providing training for prosecutors to conduct 225.9 quarterly workshops and seminars focusing on current aid to 225.10 families with dependent children and Minnesota family investment 225.11 program-statewide program issues, other income maintenance 225.12 program changes, recovery issues, alternative sentencing 225.13 methods, use of technical aids for interviews and 225.14 interrogations, and other matters affecting prosecution of 225.15 welfare fraud cases. 225.16 Sec. 15. Minnesota Statutes 1996, section 256E.03, 225.17 subdivision 2, is amended to read: 225.18 Subd. 2. (a) "Community social services" means services 225.19 provided or arranged for by county boards to fulfill the 225.20 responsibilities prescribed in section 256E.08, subdivision 1, 225.21 to the following groups of persons: 225.22 (1) families with children under age 18, who are 225.23 experiencing child dependency, neglect or abuse, and also 225.24 pregnant adolescents, adolescent parents under the age of 18, 225.25 and their children; 225.26 (2) persons who are under the guardianship of the 225.27 commissioner of human services as dependent and neglected wards; 225.28 (3) adults who are in need of protection and vulnerable as 225.29 defined in section 626.5572; 225.30 (4) persons age 60 and over who are experiencing difficulty 225.31 living independently and are unable to provide for their own 225.32 needs; 225.33 (5) emotionally disturbed children and adolescents, 225.34 chronically and acutely mentally ill persons who are unable to 225.35 provide for their own needs or to independently engage in 225.36 ordinary community activities; 226.1 (6) persons with mental retardation as defined in section 226.2 252A.02, subdivision 2, or with related conditions as defined in 226.3 section 252.27, subdivision 1a, who are unable to provide for 226.4 their own needs or to independently engage in ordinary community 226.5 activities; 226.6 (7) drug dependent and intoxicated persons as defined in 226.7 section 254A.02, subdivisions 5 and 7, and persons at risk of 226.8 harm to self or others due to the ingestion of alcohol or other 226.9 drugs; 226.10 (8) parents whose income is at or below 70 percent of the 226.11 state median income and who are in need of child care services 226.12 in order to secure or retain employment or to obtain the 226.13 training or education necessary to secure employment; and 226.14 (9) other groups of persons who, in the judgment of the 226.15 county board, are in need of social services. 226.16 (b) Except as provided in section 256E.08, subdivision 5, 226.17 community social services do not include public assistance 226.18 programs known as aid to families with dependent children, 226.19 Minnesota family investment program-statewide, Minnesota 226.20 supplemental aid, medical assistance, general assistance, 226.21 general assistance medical care, or community health services 226.22 authorized by sections 145A.09 to 145A.13. 226.23 Sec. 16. Minnesota Statutes 1996, section 256E.06, 226.24 subdivision 1, is amended to read: 226.25 Subdivision 1. [FORMULA.] The commissioner of human 226.26 services shall distribute community social service aids to each 226.27 county board in an amount determined according to the following 226.28 formula: 226.29 In calendar year 1982 and thereafter: 226.30 (a) One-third shall be distributed on the basis of the 226.31 average unduplicated number of persons who receive AFDC, 226.32 Minnesota family investment program-statewide, general 226.33 assistance, and medical assistance per month in the calendar 226.34 year two years prior to the year for which funds are being 226.35 distributed as reported in the average monthly caseload reports 226.36 required under sections 256.01, 256B.04 and 256D.04, and 227.1 certified by the commissioner of human services; and 227.2 (b) One-third shall be distributed on the basis of the 227.3 number of persons residing in the county as determined by the 227.4 most recent data of the state demographer; 227.5 (c) One-third shall be distributed on the basis of the 227.6 number of persons residing in the county who are 65 years old or 227.7 older as determined by the most recent data of the state 227.8 demographer. 227.9 Sec. 17. Minnesota Statutes 1996, section 256E.06, 227.10 subdivision 3, is amended to read: 227.11 Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human 227.12 services shall make payments for community social services to 227.13 each county in four installments per year. The commissioner of 227.14 human services may certify the payments for the first three 227.15 months of a calendar year based on estimates of the unduplicated 227.16 number of persons receiving AFDC, Minnesota family investment 227.17 program-statewide, general assistance and medical assistance for 227.18 the prior year. The following three payments shall be adjusted 227.19 to reflect the actual unduplicated number of persons who 227.20 received AFDC, Minnesota family investment program-statewide, 227.21 general assistance and medical assistance as required by 227.22 subdivision 1. The commissioner shall ensure that the pertinent 227.23 payment of the allotment for that quarter is made to each county 227.24 on the first working day after the end of each quarter of the 227.25 calendar year, except for the last quarter of the calendar 227.26 year. The commissioner shall ensure that each county receives 227.27 its payment of the allotment for that quarter no later than the 227.28 last working day of that quarter. This scheduling of payments 227.29 does not require compliance with subdivision 10. 227.30 Sec. 18. Minnesota Statutes 1996, section 256E.07, 227.31 subdivision 1, is amended to read: 227.32 Subdivision 1. [FORMULA.] In federal fiscal year 1985 and 227.33 subsequent years, money for social services that is received 227.34 from the federal government to reimburse counties for social 227.35 service expenditures pursuantaccording to title XX of the 227.36 Social Security Act shall be allocated to each county according 228.1 to the following formula: 228.2 (a) Two-thirds shall be allocated on the basis of the 228.3 annual average number of unduplicated active monthly caseloads 228.4 in each county in the following programs: aid to families with 228.5 dependent children, Minnesota family investment 228.6 program-statewide, medical assistance, general assistance, 228.7 supplementary security income, and Minnesota supplemental aid. 228.8 (b) One-third shall be allocated on the basis of the number 228.9 of persons residing in the county as determined by the most 228.10 recent estimate of the state demographer. 228.11 (c) The commissioner shall allocate to the counties 228.12 pursuantaccording to this section the total money received from 228.13 the federal government for social services pursuantaccording to 228.14 title XX of the Social Security Act, except that portion of the 228.15 state's allocation which the legislature authorizes for 228.16 administrative purposes and for migrant day care. 228.17 Sec. 19. Minnesota Statutes 1996, section 256E.08, 228.18 subdivision 3, is amended to read: 228.19 Subd. 3. [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 228.20 The county board may designate itself, a human services board, 228.21 or a local social services agency to perform the functions of 228.22 local social services agencies as prescribed in chapter 393 and 228.23 assigned to county agencies in other law which pertains to the 228.24 administration of income maintenance programs known as aid to 228.25 families with dependent children, Minnesota family investment 228.26 program-statewide, general assistance, Minnesota supplemental 228.27 aid, medical assistance, general assistance medical care, and 228.28 emergency assistance. 228.29 Sec. 20. Minnesota Statutes 1996, section 256F.05, 228.30 subdivision 5, is amended to read: 228.31 Subd. 5. [INAPPROPRIATE EXPENDITURES.] Family preservation 228.32 fund basic, placement earnings, and development grant money must 228.33 not be used for: 228.34 (1) child day care necessary solely because of the 228.35 employment or training to prepare for employment, of a parent or 228.36 other relative with whom the child is living; 229.1 (2) residential facility payments; 229.2 (3) adoption assistance payments; 229.3 (4) public assistance payments for aid to families with 229.4 dependent children, Minnesota family investment 229.5 program-statewide, supplemental aid, medical assistance, general 229.6 assistance, general assistance medical care, or community health 229.7 services authorized by sections 145A.09 to 145A.13; or 229.8 (5) administrative costs for local social services agency 229.9 public assistance staff. 229.10 Sec. 21. Minnesota Statutes 1996, section 256G.01, 229.11 subdivision 4, is amended to read: 229.12 Subd. 4. [ADDITIONAL COVERAGE.] The provisions in sections 229.13 256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 229.14 subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 229.15 subdivisions 1 to 3, apply to the following programs: aid to 229.16 families with dependent children, Minnesota family investment 229.17 program-statewide; medical assistance; general assistance; 229.18 family general assistance; general assistance medical care; and 229.19 Minnesota supplemental aid. 229.20 Sec. 22. Minnesota Statutes 1996, section 257.3573, 229.21 subdivision 2, is amended to read: 229.22 Subd. 2. [INAPPROPRIATE EXPENDITURES.] Indian child 229.23 welfare grant money must not be used for: 229.24 (1) child day care necessary solely because of employment 229.25 or training for employment of a parent or other relative with 229.26 whom the child is living; 229.27 (2) foster care maintenance or difficulty of care payments; 229.28 (3) residential facility payments; 229.29 (4) adoption assistance payments; 229.30 (5) public assistance payments for aid to families with 229.31 dependent children, Minnesota family investment 229.32 program-statewide, supplemental aid, medical assistance, general 229.33 assistance, general assistance medical care, or community health 229.34 services authorized by sections 145A.01 to 145A.14; or 229.35 (6) administrative costs for income maintenance staff. 229.36 Sec. 23. Minnesota Statutes 1996, section 260.38, is 230.1 amended to read: 230.2 260.38 [COST, PAYMENT.] 230.3 In addition to the usual care and services given by public 230.4 and private agencies, the necessary cost incurred by the 230.5 commissioner of human services in providing care for such child 230.6 shall be paid by the county committing such child which, subject 230.7 to uniform rules established by the commissioner of human 230.8 services, may receive a reimbursement not exceeding one-half of 230.9 such costs from funds made available for this purpose by the 230.10 legislature during the period beginning July 1, 1985, and ending 230.11 December 31, 1985. Beginning January 1, 1986, the necessary 230.12 cost incurred by the commissioner of human services in providing 230.13 care for the child must be paid by the county committing the 230.14 child. Where such child is eligible to receive a grant of aid 230.15 to families with dependent children, Minnesota family investment 230.16 program-statewide or supplemental security income for the aged, 230.17 blind, and disabled, or a foster care maintenance payment under 230.18 Title IV-E of the Social Security Act, United States Code, title 230.19 42, sections 670 to 676, the child's needs shall be met through 230.20 these programs. 230.21 Sec. 24. Minnesota Statutes 1996, section 268.0111, 230.22 subdivision 5, is amended to read: 230.23 Subd. 5. [INCOME MAINTENANCE AND SUPPORT SERVICES.] 230.24 "Income maintenance and support services" means programs through 230.25 which the state or its subdivisions provide direct financial or 230.26 in-kind support to unemployed or underemployed persons, 230.27 including reemployment insurance, aid to families with dependent 230.28 children, Minnesota family investment program-statewide, general 230.29 assistance, work readiness assistance,food stamps, energy 230.30 assistance, disability determinations, and child care. Income 230.31 maintenance and support services do not include medical 230.32 assistance, aging services, social services, community social 230.33 services, mental health services, or services for the 230.34 emotionally disturbed, the mentally retarded, or residents of 230.35 nursing homes. 230.36 Sec. 25. Minnesota Statutes 1996, section 268.0111, 231.1 subdivision 7, is amended to read: 231.2 Subd. 7. [PUBLIC ASSISTANCE.] "Public assistance" means 231.3 aid to families with dependent children, Minnesota family 231.4 investment program-statewide and general assistance , and work231.5 readiness. 231.6 Sec. 26. Minnesota Statutes 1996, section 268.0122, 231.7 subdivision 3, is amended to read: 231.8 Subd. 3. [DUTIES AS A STATE AGENCY.] The commissioner 231.9 shall: 231.10 (1) administer the unemployment insurance laws and related 231.11 programs; 231.12 (2) administer the aspects of aid to families with 231.13 dependent children, Minnesota family investment 231.14 program-statewide, general assistance, work readiness,and food 231.15 stamps that relate to employment and training services, subject 231.16 to the contract under section 268.86, subdivision 2; 231.17 (3) administer wage subsidies and the discretionary 231.18 employment and training fund; 231.19 (4) administer a national system of public employment 231.20 offices as prescribed by United States Code, title 29, chapter 231.21 4B, the Wagner-Peyser Act, and other federal employment and 231.22 training programs; 231.23 (5) cooperate with the federal government and its 231.24 employment and training agencies in any reasonable manner as 231.25 necessary to qualify for federal aid for employment and training 231.26 services and money; 231.27 (6) enter into agreements with other departments of the 231.28 state and local units of government as necessary; 231.29 (7) certify employment and training service providers and 231.30 decertify service providers that fail to comply with performance 231.31 criteria according to standards established by the commissioner; 231.32 (8) provide consistent, integrated employment and training 231.33 services across the state; 231.34 (9) establish the standards for all employment and training 231.35 services administered under this chapter; 231.36 (10) develop standards for the contents and structure of 232.1 the local service unit plans and plans for Indian tribe 232.2 employment and training services; 232.3 (11) provide current state and substate labor market 232.4 information and forecasts, in cooperation with other agencies; 232.5 (12) identify underserved populations, unmet service needs, 232.6 and funding requirements; 232.7 (13) consult with the council for the blind on matters 232.8 pertaining to programs and services for the blind and visually 232.9 impaired; and 232.10 (14) enter into agreements with Indian tribes as necessary 232.11 to provide employment and training services as funds become 232.12 available. 232.13 Sec. 27. Minnesota Statutes 1996, section 268.552, 232.14 subdivision 5, is amended to read: 232.15 Subd. 5. [ALLOCATION TO APPLICANTS.] Priority for 232.16 subsidies shall be in the following order: 232.17 (1) applicants living in households with no other income 232.18 source; 232.19 (2) applicants whose incomes and resources are less than 232.20 the standard for eligibility for general assistance or work232.21 readiness; and 232.22 (3) applicants who are eligible for aid to families with 232.23 dependent children or Minnesota family investment 232.24 program-statewide. 232.25 Sec. 28. Minnesota Statutes 1996, section 268.6751, 232.26 subdivision 1, is amended to read: 232.27 Subdivision 1. [WAGE SUBSIDIES.] Wage subsidy money must 232.28 be allocated to local service units in the following manner: 232.29 (a) The commissioner shall allocate 87.5 percent of the 232.30 funds available for allocation to local service units for wage 232.31 subsidy programs as follows: the proportion of the wage subsidy 232.32 money available to each local service unit must be based on the 232.33 number of unemployed persons in the local service unit for the 232.34 most recent six-month period and the number of work readiness232.35 assistance cases andaid to families with dependent children and 232.36 Minnesota family investment program-statewide cases in the local 233.1 service unit for the most recent six-month period. 233.2 (b) Five percent of the money available for wage subsidy 233.3 programs must be allocated at the discretion of the commissioner. 233.4 (c) Seven and one-half percent of the money available for 233.5 wage subsidy programs must be allocated at the discretion of the 233.6 commissioner to provide jobs for residents of federally 233.7 recognized Indian reservations. 233.8 (d) By December 31 of each fiscal year, providers and local 233.9 service units receiving wage subsidy money shall report to the 233.10 commissioner on the use of allocated funds. The commissioner 233.11 shall reallocate uncommitted funds for each fiscal year 233.12 according to the formula in paragraph (a). 233.13 Sec. 29. Minnesota Statutes 1996, section 268.676, 233.14 subdivision 1, is amended to read: 233.15 Subdivision 1. [AMONG JOB APPLICANTS.] At least 80 percent 233.16 of funds allocated among eligible job applicants statewide must 233.17 be allocated to: 233.18 (1) applicants living in households with no other income 233.19 source; 233.20 (2) applicants whose incomes and resources are less than 233.21 the standards for eligibility for general assistance or work233.22 readiness; 233.23 (3) applicants who are eligible for aid to families with 233.24 dependent children or Minnesota family investment 233.25 program-statewide; and 233.26 (4) applicants who live in a farm household who demonstrate 233.27 severe household financial need. 233.28 Sec. 30. Minnesota Statutes 1996, section 268.86, 233.29 subdivision 2, is amended to read: 233.30 Subd. 2. [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 233.31 commissioner and the commissioner of human services shall enter 233.32 into a written contract for the design, delivery, and 233.33 administration of employment and training services for 233.34 applicants for or recipients of food stamps or, aid to families 233.35 with dependent children and work readinessor Minnesota family 233.36 investment program-statewide, including AFDC and MFIP-S 234.1 employment and training programs ,and general assistance or work234.2 readiness grant diversion. The contract must address: 234.3 (1) specific roles and responsibilities of each department; 234.4 (2) assignment and supervision of staff for interagency 234.5 activities including any necessary interagency employee mobility 234.6 agreements under the administrative procedures of the department 234.7 of employee relations; 234.8 (3) mechanisms for determining the conditions under which 234.9 individuals participate in services, their rights and 234.10 responsibilities while participating, and the standards by which 234.11 the services must be administered; 234.12 (4) procedures for providing technical assistance to local 234.13 service units, Indian tribes, and employment and training 234.14 service providers; 234.15 (5) access to appropriate staff for ongoing development and 234.16 interpretation of policy, rules, and program standards; 234.17 (6) procedures for reimbursing appropriate agencies for 234.18 administrative expenses; and 234.19 (7) procedures for accessing available federal funds. 234.20 Sec. 31. Minnesota Statutes 1996, section 268.871, 234.21 subdivision 1, is amended to read: 234.22 Subdivision 1. [RESPONSIBILITY AND CERTIFICATION.] (a) 234.23 Unless prohibited by federal law or otherwise determined by 234.24 state law, a local service unit is responsible for the delivery 234.25 of employment and training services. After February 1, 1988, 234.26 employment and training services must be delivered by certified 234.27 employment and training service providers. 234.28 (b) The local service unit's employment and training 234.29 service provider must meet the certification standards in this 234.30 subdivision in order to be certified to deliver any of the 234.31 following employment and training services and programs: wage 234.32 subsidies; work readiness; work readiness andgeneral assistance 234.33 grant diversion; food stamp employment and training programs; 234.34 community work experience programs; AFDC or MFIP-S job search; 234.35 AFDC or MFIP-S grant diversion; AFDC or MFIP-S on-the-job 234.36 training; and AFDC or MFIP-S case management. 235.1 (c) The commissioner shall certify a local service unit's 235.2 service provider to provide these employment and training 235.3 services and programs if the commissioner determines that the 235.4 provider has: 235.5 (1) past experience in direct delivery of the programs 235.6 specified in paragraph (b); 235.7 (2) staff capabilities and qualifications, including 235.8 adequate staff to provide timely and effective services to 235.9 clients, and proven staff experience in providing specific 235.10 services such as assessments, career planning, job development, 235.11 job placement, support services, and knowledge of community 235.12 services and educational resources; 235.13 (3) demonstrated effectiveness in providing services to 235.14 public assistance recipients and other economically 235.15 disadvantaged clients; and 235.16 (4) demonstrated administrative capabilities, including 235.17 adequate fiscal and accounting procedures, financial management 235.18 systems, participant data systems, and record retention 235.19 procedures. 235.20 (d) When the only service provider that meets the criterion 235.21 in paragraph (c), clause (1), has been decertified, pursuant235.22 according to subdivision 1a, in that local service unit, the 235.23 following criteria shall be substituted: past experience in 235.24 direct delivery of multiple, coordinated, nonduplicative 235.25 services, including outreach, assessments, identification of 235.26 client barriers, employability development plans, and provision 235.27 or referral to support services. 235.28 (e) The commissioner shall certify providers of the 235.29 Minnesota family investment plan case management services as 235.30 defined in section 256.032, subdivision 3. Providers must meet 235.31 the standards defined in paragraph (c), except that past 235.32 experience under paragraph (c), clause (1), must be in services 235.33 and programs similar to those specified in section 256.032, 235.34 subdivision 3. 235.35 Employment and training service providers shall be 235.36 certified by the commissioner for two fiscal years beginning 236.1 July 1, 1991, and every second year thereafter. 236.2 Sec. 32. Minnesota Statutes 1996, section 268.90, 236.3 subdivision 2, is amended to read: 236.4 Subd. 2. [EMPLOYMENT CONDITIONS.] (a) An eligible 236.5 nonprofit or public employer may not terminate, lay off, or 236.6 reduce the regular working hours of an employee for the purpose 236.7 of hiring an individual with money available under this 236.8 program. An eligible employer may not hire an individual with 236.9 money available through this program if any other person is on 236.10 layoff from the same or a substantially equivalent job. 236.11 (b) Community investment program participants are employees 236.12 of the project employer within the meaning of workers' 236.13 compensation laws, personal income tax, and the federal 236.14 insurance contribution act, but not retirement or civil service 236.15 laws. 236.16 (c) Each project and job must comply with all applicable 236.17 affirmative action, fair labor, health, safety, and 236.18 environmental standards. 236.19 (d) Individuals employed under the community investment 236.20 program must be paid a wage at the same wage rates as work site 236.21 or employees doing comparable work in that locality, unless 236.22 otherwise specified in law. 236.23 (e) Recipients of aid to families with dependent 236.24 children or Minnesota family investment program-statewide who 236.25 are eligible on the basis of an unemployed parent may not have 236.26 available more than 100 hours a month. All employees are 236.27 limited to 32 hours or four days a week, so that they can 236.28 continue to seek full-time private sector employment, unless 236.29 otherwise specified in law. 236.30 (f) The commissioner shall establish, by rule, the terms 236.31 and conditions governing the participation of appropriate public 236.32 assistance recipients. The rules must, at a minimum, establish 236.33 the procedures by which the minimum and maximum number of work 236.34 hours and maximum allowable travel distances are determined, the 236.35 amounts and methods by which work expenses will be paid, and the 236.36 manner in which support services will be provided. The rules 237.1 must also provide for periodic reviews of clients continuing 237.2 employment in community investment programs. 237.3 (g) Participation in a community investment program by a 237.4 recipient of aid to families with dependent children, Minnesota 237.5 family investment program-statewide or general assistance is 237.6 voluntary ; however, work readiness registrants may be required237.7 to participate. 237.8 Sec. 33. Minnesota Statutes 1996, section 268.916, is 237.9 amended to read: 237.10 268.916 [REPORTS.] 237.11 Each grantee shall submit an annual report to the 237.12 commissioner on the format designated by the commissioner, 237.13 including program information report data. By January 1 of each 237.14 year, the commissioner shall prepare an annual report to the 237.15 health and human services committee of the house of 237.16 representatives and the family services committee of the senate 237.17 concerning the uses and impact of head start supplemental 237.18 funding, including a summary of innovative programs and the 237.19 results of innovative programs and an evaluation of the 237.20 coordination of head start programs with employment and training 237.21 services provided to AFDC and MFIP-S recipients. 237.22 Sec. 34. Minnesota Statutes 1996, section 268.95, 237.23 subdivision 4, is amended to read: 237.24 Subd. 4. [PILOT PROGRAM.] The commissioner shall develop a 237.25 pilot program, in cooperation with the commissioners of trade 237.26 and economic development and human services, to enable 237.27 low-income persons to start or expand self-employment 237.28 opportunities or home-based businesses that are designed to make 237.29 the individual entrepreneurs economically independent. The 237.30 commissioner of human services shall seek necessary waivers from 237.31 federal regulations to allow recipients of aid to families with 237.32 dependent children or Minnesota family investment 237.33 program-statewide to participate and retain eligibility while 237.34 establishing a business. 237.35 Sec. 35. Minnesota Statutes 1996, section 393.07, 237.36 subdivision 6, is amended to read: 238.1 Subd. 6. [PURCHASE OF EQUIPMENT TO AID WELFARE 238.2 RECIPIENTS.] Every local social services agency authorizing 238.3 braces, crutches, trusses, wheel chairs and hearing aids for use 238.4 by recipients of supplemental security income for the aged, 238.5 blind and disabled, aid to families with dependent children or 238.6 Minnesota family investment program-statewide and relief shall 238.7 secure such devices at the lowest cost obtainable conducive to 238.8 the well being of the recipient and fix the recipient's grant in 238.9 an amount to cover the cost of the device providing it will be 238.10 purchased at the lowest cost obtainable, or may make payment for 238.11 the device directly to the vendor. 238.12 Sec. 36. Minnesota Statutes 1996, section 477A.0122, 238.13 subdivision 2, is amended to read: 238.14 Subd. 2. [DEFINITIONS.] For purposes of this section, the 238.15 following definitions apply: 238.16 (a) "Children in out-of-home placement" means the total 238.17 unduplicated number of children in out-of-home care as reported 238.18 pursuantaccording to section 257.0725. 238.19 (b) "Family preservation programs" means family-based 238.20 services as defined in section 256F.03, subdivision 5, families 238.21 first services, parent and child education programs, and day 238.22 treatment services provided in cooperation with a school 238.23 district or other programs as defined by the commissioner of 238.24 human services. 238.25 (c) "Income maintenance caseload" means average monthly 238.26 number of AFDC or Minnesota family investment program-statewide 238.27 cases for the calendar year. 238.28 By July 1, 1994, the commissioner of human services shall 238.29 certify to the commissioner of revenue the number of children in 238.30 out-of-home placement in 1991 and 1992 for each county and the 238.31 income maintenance caseload for each county for the most recent 238.32 year available. By July 1 of each subsequent year, the 238.33 commissioner of human services shall certify to the commissioner 238.34 of revenue the income maintenance caseload for each county for 238.35 the most recent calendar year available. 238.36 Sec. 37. Minnesota Statutes 1996, section 550.37, 239.1 subdivision 14, is amended to read: 239.2 Subd. 14. [PUBLIC ASSISTANCE.] All relief based on need, 239.3 and the earnings or salary of a person who is a recipient of 239.4 relief based on need, shall be exempt from all claims of 239.5 creditors including any contractual setoff or security interest 239.6 asserted by a financial institution. For the purposes of this 239.7 chapter, relief based on need includes AFDC, MFIP, MFIP-R, 239.8 MFIP-S, Work First, general assistance medical care, 239.9 supplemental security income, medical assistance, Minnesota 239.10 supplemental assistance, and general assistance. The salary or 239.11 earnings of any debtor who is or has been an eligible recipient 239.12 of relief based on need, or an inmate of a correctional 239.13 institution shall, upon the debtor's return to private 239.14 employment or farming after having been an eligible recipient of 239.15 relief based on need, or an inmate of a correctional 239.16 institution, be exempt from attachment, garnishment, or levy of 239.17 execution for a period of six months after the debtor's return 239.18 to employment or farming and after all public assistance for 239.19 which eligibility existed has been terminated. The exemption 239.20 provisions contained in this subdivision also apply for 60 days 239.21 after deposit in any financial institution, whether in a single 239.22 or joint account. In tracing the funds, the first-in first-out 239.23 method of accounting shall be used. The burden of establishing 239.24 that funds are exempt rests upon the debtor. Agencies 239.25 distributing relief and the correctional institutions shall, at 239.26 the request of creditors, inform them whether or not any debtor 239.27 has been an eligible recipient of relief based on need, or an 239.28 inmate of a correctional institution, within the preceding six 239.29 months. 239.30 Sec. 38. [REVISOR INSTRUCTION.] 239.31 The revisor of statutes shall identify in Minnesota 239.32 Statutes and Minnesota Rules all references to aid to families 239.33 with dependent children, AFDC, aid to dependent children, family 239.34 general assistance, and FGA, and to Minnesota Statutes, section 239.35 256.12, or any of the sections of Minnesota Statutes from 239.36 sections 256.72 to 256.87. 240.1 The revisor shall prepare a report by January 1, 1998, for 240.2 the 1998 legislature showing where these references are located. 240.3 Sec. 39. [EFFECTIVE DATE.] 240.4 This article is effective July 1, 1997. 240.5 ARTICLE 5 240.6 PROGRAM INTEGRITY INITIATIVES 240.7 Section 1. Minnesota Statutes 1996, section 13.82, 240.8 subdivision 1, is amended to read: 240.9 Subdivision 1. [APPLICATION.] This section shall apply to 240.10 agencies which carry on a law enforcement function, including 240.11 but not limited to municipal police departments, county sheriff 240.12 departments, fire departments, the bureau of criminal 240.13 apprehension, the Minnesota state patrol, the board of peace 240.14 officer standards and training, the department of commerce, and 240.15 the department of labor and industry fraud investigation unit, 240.16 the program integrity section of, and county human service 240.17 agency client and provider fraud prevention and control units 240.18 operated or supervised by the department of human services. 240.19 Sec. 2. Minnesota Statutes 1996, section 256.01, 240.20 subdivision 2, is amended to read: 240.21 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 240.22 section 241.021, subdivision 2, the commissioner of human 240.23 services shall: 240.24 (1) Administer and supervise all forms of public assistance 240.25 provided for by state law and other welfare activities or 240.26 services as are vested in the commissioner. Administration and 240.27 supervision of human services activities or services includes, 240.28 but is not limited to, assuring timely and accurate distribution 240.29 of benefits, completeness of service, and quality program 240.30 management. In addition to administering and supervising human 240.31 services activities vested by law in the department, the 240.32 commissioner shall have the authority to: 240.33 (a) require county agency participation in training and 240.34 technical assistance programs to promote compliance with 240.35 statutes, rules, federal laws, regulations, and policies 240.36 governing human services; 241.1 (b) monitor, on an ongoing basis, the performance of county 241.2 agencies in the operation and administration of human services, 241.3 enforce compliance with statutes, rules, federal laws, 241.4 regulations, and policies governing welfare services and promote 241.5 excellence of administration and program operation; 241.6 (c) develop a quality control program or other monitoring 241.7 program to review county performance and accuracy of benefit 241.8 determinations; 241.9 (d) require county agencies to make an adjustment to the 241.10 public assistance benefits issued to any individual consistent 241.11 with federal law and regulation and state law and rule and to 241.12 issue or recover benefits as appropriate; 241.13 (e) delay or deny payment of all or part of the state and 241.14 federal share of benefits and administrative reimbursement 241.15 according to the procedures set forth in section 256.017; and 241.16 (f) make contracts with and grants to public and private 241.17 agencies and organizations, both profit and nonprofit, and 241.18 individuals, using appropriated funds. 241.19 (2) Inform county agencies, on a timely basis, of changes 241.20 in statute, rule, federal law, regulation, and policy necessary 241.21 to county agency administration of the programs. 241.22 (3) Administer and supervise all child welfare activities; 241.23 promote the enforcement of laws protecting handicapped, 241.24 dependent, neglected and delinquent children, and children born 241.25 to mothers who were not married to the children's fathers at the 241.26 times of the conception nor at the births of the children; 241.27 license and supervise child-caring and child-placing agencies 241.28 and institutions; supervise the care of children in boarding and 241.29 foster homes or in private institutions; and generally perform 241.30 all functions relating to the field of child welfare now vested 241.31 in the state board of control. 241.32 (4) Administer and supervise all noninstitutional service 241.33 to handicapped persons, including those who are visually 241.34 impaired, hearing impaired, or physically impaired or otherwise 241.35 handicapped. The commissioner may provide and contract for the 241.36 care and treatment of qualified indigent children in facilities 242.1 other than those located and available at state hospitals when 242.2 it is not feasible to provide the service in state hospitals. 242.3 (5) Assist and actively cooperate with other departments, 242.4 agencies and institutions, local, state, and federal, by 242.5 performing services in conformity with the purposes of Laws 242.6 1939, chapter 431. 242.7 (6) Act as the agent of and cooperate with the federal 242.8 government in matters of mutual concern relative to and in 242.9 conformity with the provisions of Laws 1939, chapter 431, 242.10 including the administration of any federal funds granted to the 242.11 state to aid in the performance of any functions of the 242.12 commissioner as specified in Laws 1939, chapter 431, and 242.13 including the promulgation of rules making uniformly available 242.14 medical care benefits to all recipients of public assistance, at 242.15 such times as the federal government increases its participation 242.16 in assistance expenditures for medical care to recipients of 242.17 public assistance, the cost thereof to be borne in the same 242.18 proportion as are grants of aid to said recipients. 242.19 (7) Establish and maintain any administrative units 242.20 reasonably necessary for the performance of administrative 242.21 functions common to all divisions of the department. 242.22 (8) Act as designated guardian of both the estate and the 242.23 person of all the wards of the state of Minnesota, whether by 242.24 operation of law or by an order of court, without any further 242.25 act or proceeding whatever, except as to persons committed as 242.26 mentally retarded. 242.27 (9) Act as coordinating referral and informational center 242.28 on requests for service for newly arrived immigrants coming to 242.29 Minnesota. 242.30 (10) The specific enumeration of powers and duties as 242.31 hereinabove set forth shall in no way be construed to be a 242.32 limitation upon the general transfer of powers herein contained. 242.33 (11) Establish county, regional, or statewide schedules of 242.34 maximum fees and charges which may be paid by county agencies 242.35 for medical, dental, surgical, hospital, nursing and nursing 242.36 home care and medicine and medical supplies under all programs 243.1 of medical care provided by the state and for congregate living 243.2 care under the income maintenance programs. 243.3 (12) Have the authority to conduct and administer 243.4 experimental projects to test methods and procedures of 243.5 administering assistance and services to recipients or potential 243.6 recipients of public welfare. To carry out such experimental 243.7 projects, it is further provided that the commissioner of human 243.8 services is authorized to waive the enforcement of existing 243.9 specific statutory program requirements, rules, and standards in 243.10 one or more counties. The order establishing the waiver shall 243.11 provide alternative methods and procedures of administration, 243.12 shall not be in conflict with the basic purposes, coverage, or 243.13 benefits provided by law, and in no event shall the duration of 243.14 a project exceed four years. It is further provided that no 243.15 order establishing an experimental project as authorized by the 243.16 provisions of this section shall become effective until the 243.17 following conditions have been met: 243.18 (a) The proposed comprehensive plan, including estimated 243.19 project costs and the proposed order establishing the waiver, 243.20 shall be filed with the secretary of the senate and chief clerk 243.21 of the house of representatives at least 60 days prior to its 243.22 effective date. 243.23 (b) The secretary of health, education, and welfare of the 243.24 United States has agreed, for the same project, to waive state 243.25 plan requirements relative to statewide uniformity. 243.26 (c) A comprehensive plan, including estimated project 243.27 costs, shall be approved by the legislative advisory commission 243.28 and filed with the commissioner of administration. 243.29 (13) In accordance withAccording to federal requirements, 243.30 establish procedures to be followed by local welfare boards in 243.31 creating citizen advisory committees, including procedures for 243.32 selection of committee members. 243.33 (14) Allocate federal fiscal disallowances or sanctions 243.34 which are based on quality control error rates for the aid to 243.35 families with dependent children, Minnesota family investment 243.36 program-statewide, medical assistance, or food stamp program in 244.1 the following manner: 244.2 (a) One-half of the total amount of the disallowance shall 244.3 be borne by the county boards responsible for administering the 244.4 programs. For the medical assistance, MFIP-S, and AFDC 244.5 programs, disallowances shall be shared by each county board in 244.6 the same proportion as that county's expenditures for the 244.7 sanctioned program are to the total of all counties' 244.8 expenditures for the AFDC, MFIP-S, and medical assistance 244.9 programs. For the food stamp program, sanctions shall be shared 244.10 by each county board, with 50 percent of the sanction being 244.11 distributed to each county in the same proportion as that 244.12 county's administrative costs for food stamps are to the total 244.13 of all food stamp administrative costs for all counties, and 50 244.14 percent of the sanctions being distributed to each county in the 244.15 same proportion as that county's value of food stamp benefits 244.16 issued are to the total of all benefits issued for all 244.17 counties. Each county shall pay its share of the disallowance 244.18 to the state of Minnesota. When a county fails to pay the 244.19 amount due hereunder, the commissioner may deduct the amount 244.20 from reimbursement otherwise due the county, or the attorney 244.21 general, upon the request of the commissioner, may institute 244.22 civil action to recover the amount due. 244.23 (b) Notwithstanding the provisions of paragraph (a), if the 244.24 disallowance results from knowing noncompliance by one or more 244.25 counties with a specific program instruction, and that knowing 244.26 noncompliance is a matter of official county board record, the 244.27 commissioner may require payment or recover from the county or 244.28 counties, in the manner prescribed in paragraph (a), an amount 244.29 equal to the portion of the total disallowance which resulted 244.30 from the noncompliance, and may distribute the balance of the 244.31 disallowance according to paragraph (a). 244.32 (15) Develop and implement special projects that maximize 244.33 reimbursements and result in the recovery of money to the 244.34 state. For the purpose of recovering state money, the 244.35 commissioner may enter into contracts with third parties. Any 244.36 recoveries that result from projects or contracts entered into 245.1 under this paragraph shall be deposited in the state treasury 245.2 and credited to a special account until the balance in the 245.3 account reaches $1,000,000. When the balance in the account 245.4 exceeds $1,000,000, the excess shall be transferred and credited 245.5 to the general fund. All money in the account is appropriated 245.6 to the commissioner for the purposes of this paragraph. 245.7 (16) Have the authority to make direct payments to 245.8 facilities providing shelter to women and their children 245.9 pursuantaccording to section 256D.05, subdivision 3. Upon the 245.10 written request of a shelter facility that has been denied 245.11 payments under section 256D.05, subdivision 3, the commissioner 245.12 shall review all relevant evidence and make a determination 245.13 within 30 days of the request for review regarding issuance of 245.14 direct payments to the shelter facility. Failure to act within 245.15 30 days shall be considered a determination not to issue direct 245.16 payments. 245.17 (17) Have the authority to establish and enforce the 245.18 following county reporting requirements: 245.19 (a) The commissioner shall establish fiscal and statistical 245.20 reporting requirements necessary to account for the expenditure 245.21 of funds allocated to counties for human services programs. 245.22 When establishing financial and statistical reporting 245.23 requirements, the commissioner shall evaluate all reports, in 245.24 consultation with the counties, to determine if the reports can 245.25 be simplified or the number of reports can be reduced. 245.26 (b) The county board shall submit monthly or quarterly 245.27 reports to the department as required by the commissioner. 245.28 Monthly reports are due no later than 15 working days after the 245.29 end of the month. Quarterly reports are due no later than 30 245.30 calendar days after the end of the quarter, unless the 245.31 commissioner determines that the deadline must be shortened to 245.32 20 calendar days to avoid jeopardizing compliance with federal 245.33 deadlines or risking a loss of federal funding. Only reports 245.34 that are complete, legible, and in the required format shall be 245.35 accepted by the commissioner. 245.36 (c) If the required reports are not received by the 246.1 deadlines established in clause (b), the commissioner may delay 246.2 payments and withhold funds from the county board until the next 246.3 reporting period. When the report is needed to account for the 246.4 use of federal funds and the late report results in a reduction 246.5 in federal funding, the commissioner shall withhold from the 246.6 county boards with late reports an amount equal to the reduction 246.7 in federal funding until full federal funding is received. 246.8 (d) A county board that submits reports that are late, 246.9 illegible, incomplete, or not in the required format for two out 246.10 of three consecutive reporting periods is considered 246.11 noncompliant. When a county board is found to be noncompliant, 246.12 the commissioner shall notify the county board of the reason the 246.13 county board is considered noncompliant and request that the 246.14 county board develop a corrective action plan stating how the 246.15 county board plans to correct the problem. The corrective 246.16 action plan must be submitted to the commissioner within 45 days 246.17 after the date the county board received notice of noncompliance. 246.18 (e) The final deadline for fiscal reports or amendments to 246.19 fiscal reports is one year after the date the report was 246.20 originally due. If the commissioner does not receive a report 246.21 by the final deadline, the county board forfeits the funding 246.22 associated with the report for that reporting period and the 246.23 county board must repay any funds associated with the report 246.24 received for that reporting period. 246.25 (f) The commissioner may not delay payments, withhold 246.26 funds, or require repayment under paragraph (c) or (e) if the 246.27 county demonstrates that the commissioner failed to provide 246.28 appropriate forms, guidelines, and technical assistance to 246.29 enable the county to comply with the requirements. If the 246.30 county board disagrees with an action taken by the commissioner 246.31 under paragraph (c) or (e), the county board may appeal the 246.32 action according to sections 14.57 to 14.69. 246.33 (g) Counties subject to withholding of funds under 246.34 paragraph (c) or forfeiture or repayment of funds under 246.35 paragraph (e) shall not reduce or withhold benefits or services 246.36 to clients to cover costs incurred due to actions taken by the 247.1 commissioner under paragraph (c) or (e). 247.2 (18) Allocate federal fiscal disallowances or sanctions for 247.3 audit exceptions when federal fiscal disallowances or sanctions 247.4 are based on a statewide random sample for the foster care 247.5 program under title IV-E of the Social Security Act, United 247.6 States Code, title 42, in direct proportion to each county's 247.7 title IV-E foster care maintenance claim for that period. 247.8 (19) Be responsible for ensuring the detection, prevention, 247.9 investigation, and resolution of fraudulent activities or 247.10 behavior by applicants, recipients, and other participants in 247.11 the human services programs administered by the department. 247.12 (20) Require county agencies to identify overpayments, 247.13 establish claims, and utilize all available and cost-beneficial 247.14 methodologies to collect and recover these overpayments in the 247.15 human services programs administered by the department. 247.16 Sec. 3. Minnesota Statutes 1996, section 256.017, 247.17 subdivision 2, is amended to read: 247.18 Subd. 2. [DEFINITIONS.] The following terms have the 247.19 meanings given for the purposepurposes of this section. 247.20 (a) "Administrative penalty" means an adjustment against 247.21 the county agency's state and federal benefit and federal 247.22 administrative reimbursement when the commissioner determines 247.23 that the county agency is not in compliance with the policies 247.24 and procedures established by the commissioner. 247.25 (b) "Quality control case penalty" means an adjustment 247.26 against the county agency's federal administrative reimbursement 247.27 and state and federal benefit reimbursement when the 247.28 commissioner determines through a quality control review that 247.29 the county agency has made incorrect payments, terminations, or 247.30 denials of benefits as determined by state quality control 247.31 procedures for the aid to families with dependent children, 247.32 Minnesota family investment program-statewide, food stamp, or 247.33 medical assistance programs, or any other programs for which the 247.34 commissioner has developed a quality control system. Quality 247.35 control case penalties apply only to agency errors as defined by 247.36 state quality control procedures. 248.1 (c) "Quality controlcontrol/quality assurance" means a 248.2 review system of a statewide random sample of cases, designed to 248.3 provide data on program outcomes and the accuracy with which 248.4 state and federal policies are being applied in issuing benefits 248.5 and as a fiscal audit to ensure the accuracy of expenditures. 248.6 The quality controlcontrol/quality assurance system is 248.7 administered by the department. For the aid to families with 248.8 dependent children, Minnesota family investment 248.9 program-statewide, food stamp, and medical assistance programs, 248.10 the quality control system is that required by federal 248.11 regulation, or those developed by the commissioner. 248.12 Sec. 4. Minnesota Statutes 1996, section 256.019, is 248.13 amended to read: 248.14 256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 248.15 When an amount is recovered from any source for assistance 248.16 given under the provisions governing public assistance programs 248.17 including aid to families with dependent children, MFIP-S, 248.18 general assistance medical care, emergency assistance, general 248.19 assistance, work readiness,and Minnesota supplemental aid, 248.20 there shall be paid to the United States the amount due under248.21 the terms of the Social Security Act and the balance must be248.22 paid into the treasury of the state or county in accordance with248.23 current rates of financial participation; exceptthe county may 248.24 keep one-half of recovery made by the county agency using any 248.25 method other than recoupment. For medical assistance, if the 248.26 recovery is made by a county agency using any method other than 248.27 recoupment, the county may keep one-half of the nonfederal share 248.28 of the recovery. This does not apply to recoveries from medical 248.29 providers or to recoveries begun by the department of human 248.30 services' surveillance and utilization review division, state 248.31 hospital collections unit, and the benefit recoveries division 248.32 or, by the attorney general's office, or child support 248.33 collections. In the food stamp program, the nonfederal share of 248.34 recoveries in the federal tax refund offset program (FTROP) only 248.35 will be divided equally between the state agency and the 248.36 involved county agency. 249.1 Sec. 5. Minnesota Statutes 1996, section 256.045, 249.2 subdivision 3, is amended to read: 249.3 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 249.4 hearings are available for the following: (1) any person 249.5 applying for, receiving or having received public assistance, 249.6 medical care, or a program of social services granted by the 249.7 state agency or a county agency under sections 252.32, 256.031249.8 to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E,249.9 261,or the federal Food Stamp Act whose application for 249.10 assistance is denied, not acted upon with reasonable promptness, 249.11 or whose assistance is suspended, reduced, terminated, or 249.12 claimed to have been incorrectly paid; (2) any patient or 249.13 relative aggrieved by an order of the commissioner under section 249.14 252.27; (3) a party aggrieved by a ruling of a prepaid health 249.15 plan; (4) any individual or facility determined by a lead agency 249.16 to have maltreated a vulnerable adult under section 626.557 249.17 after they have exercised their right to administrative 249.18 reconsideration under section 626.557; (5) any person whose 249.19 claim for foster care payment pursuantaccording to a placement 249.20 of the child resulting from a child protection assessment under 249.21 section 626.556 is denied or not acted upon with reasonable 249.22 promptness, regardless of funding source; (6) any person to whom 249.23 a right of appeal pursuantaccording to this section is given by 249.24 other provision of law; or (7) an applicant aggrieved by an 249.25 adverse decision to an application for a hardship waiver under 249.26 section 256B.15. The failure to exercise the right to an 249.27 administrative reconsideration shall not be a bar to a hearing 249.28 under this section if federal law provides an individual the 249.29 right to a hearing to dispute a finding of maltreatment. 249.30 Individuals and organizations specified in this section may 249.31 contest the specified action, decision, or final disposition 249.32 before the state agency by submitting a written request for a 249.33 hearing to the state agency within 30 days after receiving 249.34 written notice of the action, decision, or final disposition, or 249.35 within 90 days of such written notice if the applicant, 249.36 recipient, patient, or relative shows good cause why the request 250.1 was not submitted within the 30-day time limit. 250.2 The hearing for an individual or facility under clause (4) 250.3 is the only administrative appeal to the final lead agency 250.4 disposition specifically, including a challenge to the accuracy 250.5 and completeness of data under section 13.04. Hearings 250.6 requested under clause (4) apply only to incidents of 250.7 maltreatment that occur on or after October 1, 1995. Hearings 250.8 requested by nursing assistants in nursing homes alleged to have 250.9 maltreated a resident prior to October 1, 1995, shall be held as 250.10 a contested case proceeding under the provisions of chapter 14. 250.11 For purposes of this section, bargaining unit grievance 250.12 procedures are not an administrative appeal. 250.13 The scope of hearings involving claims to foster care 250.14 payments under clause (5) shall be limited to the issue of 250.15 whether the county is legally responsible for a child's 250.16 placement under court order or voluntary placement agreement 250.17 and, if so, the correct amount of foster care payment to be made 250.18 on the child's behalf and shall not include review of the 250.19 propriety of the county's child protection determination or 250.20 child placement decision. 250.21 (b) Except for a prepaid health plan, a vendor of medical 250.22 care as defined in section 256B.02, subdivision 7, or a vendor 250.23 under contract with a county agency to provide social services 250.24 under section 256E.08, subdivision 4, is not a party and may not 250.25 request a hearing under this section, except if assisting a 250.26 recipient as provided in subdivision 4. 250.27 (c) An applicant or recipient is not entitled to receive 250.28 social services beyond the services included in the amended 250.29 community social services plan developed under section 256E.081, 250.30 subdivision 3, if the county agency has met the requirements in 250.31 section 256E.081. 250.32 (d) The commissioner may summarily affirm the county or 250.33 state agency's proposed action without a hearing when the sole 250.34 issue is an automatic change due to a change in state or federal 250.35 law. 250.36 Sec. 6. Minnesota Statutes 1996, section 256.046, is 251.1 amended to read: 251.2 256.046 [ADMINISTRATIVE FRAUD DISQUALIFICATION HEARINGS.] 251.3 Subdivision 1. [HEARING AUTHORITY.] A local agency may251.4 shall initiate an administrative fraud disqualification hearing 251.5 for individuals accused of wrongfully obtaining assistance or 251.6 intentional program violations, in lieu of a criminal action, in 251.7 the aid to families with dependent children, MFIP-S, child care, 251.8 general assistance, family general assistance, Minnesota 251.9 supplemental aid, medical care, or food stamp programs. The 251.10 hearing is subject to the requirements of section 256.045 and 251.11 the requirements in Code of Federal Regulations, title 7, 251.12 section 273.16, for the food stamp program and title 45, section 251.13 235.112, as of September 30, 1995, for the aid to families with251.14 dependent children programcash grant and medical care programs. 251.15 Subd. 2. [COMBINED HEARING.] The referee may combine a 251.16 fair hearing and administrative fraud disqualification hearing 251.17 into a single hearing if the factual issues arise out of the 251.18 same, or related, circumstances and the individual receives 251.19 prior notice that the hearings will be combined. If the 251.20 administrative fraud disqualification hearing and fair hearing 251.21 are combined, the time frames for administrative fraud 251.22 disqualification hearings set forthspecified in Code of Federal 251.23 Regulations, title 7, section 273.16, and title 45, section 251.24 235.112, as of September 30, 1995, apply. If the individual 251.25 accused of wrongfully obtaining assistance is charged under 251.26 section 256.98 for the same act or acts which are the subject of 251.27 the hearing, the individual may request that the hearing be 251.28 delayed until the criminal charge is decided by the court or 251.29 withdrawn. 251.30 Sec. 7. [256.0471] [OVERPAYMENTS BECOME JUDGMENTS BY 251.31 OPERATION OF LAW.] 251.32 Subdivision 1. [QUALIFYING OVERPAYMENT.] Any overpayment 251.33 for assistance granted under sections 256.031 to 256.0361, 251.34 256.72 to 256.871, and 256H.05; chapters 256B, 256D, 256I, 256J, 251.35 and 256K; and the food stamp program, except agency error 251.36 claims, become a judgment by operation of law 90 days after the 252.1 notice of overpayment is personally served upon the recipient in 252.2 a manner that is sufficient under rule 4.03(a) of the Rules of 252.3 Civil Procedure for district courts, or by certified mail, 252.4 return receipt requested. This judgment shall be entitled to 252.5 full faith and credit in this and any other state. 252.6 Subd. 2. [OVERPAYMENTS INCLUDED.] This section is limited 252.7 to overpayments for which notification is issued within the time 252.8 period specified under section 541.05. 252.9 Subd. 3. [NOTIFICATION REQUIREMENTS.] A judgment is only 252.10 obtained after: 252.11 (1) a notice of overpayment has been personally served on 252.12 the recipient or former recipient in a manner sufficient under 252.13 rule 4.03(a) of the Rules of Civil Procedure for district 252.14 courts, or mailed to the recipient or former recipient certified 252.15 mail return receipt requested; and 252.16 (2) the time period under section 256.045, subdivision 3, 252.17 has elapsed without a request for a hearing, or a hearing 252.18 decision has been rendered under section 256.045 or 256.046 252.19 which concludes the existence of an overpayment that meets the 252.20 requirements of this section. 252.21 Subd. 4. [NOTICE OF OVERPAYMENT.] The notice of 252.22 overpayment shall include the amount and cause of the 252.23 overpayment, appeal rights, and an explanation of the 252.24 consequences of the judgment that will be established if an 252.25 appeal is not filed timely or if the administrative hearing 252.26 decision establishes that there is an overpayment which 252.27 qualifies for judgment. 252.28 Subd. 5. [JUDGMENTS ENTERED AND DOCKETED.] A judgment 252.29 shall be entered and docketed under section 548.09 only after at 252.30 least three months have elapsed since: 252.31 (1) the notice of overpayment was served on the recipient 252.32 pursuant to subdivision 3; and 252.33 (2) the last time a monthly recoupment was applied to the 252.34 overpayment. 252.35 Subd. 6. [DOCKETING OF OVERPAYMENTS.] On or after the date 252.36 an unpaid overpayment becomes a judgment by operation of law 253.1 under subdivision 1, the agency or public authority may file 253.2 with the court administrator: 253.3 (1) a statement identifying, or a copy of, the overpayment 253.4 notice which provides for an appeal process and requires payment 253.5 of the overpayment; 253.6 (2) proof of service of the notice of overpayment; 253.7 (3) an affidavit of default, stating the full name, 253.8 occupation, place of residence, and last known post office 253.9 address of the debtor; the name and post office address of the 253.10 agency or public authority; the date or dates the overpayment 253.11 was incurred; the program that was overpaid; and the total 253.12 amount of the judgment; and 253.13 (4) an affidavit of service of a notice of entry of 253.14 judgment shall be made by first class mail at the address where 253.15 the debtor was served with the notice of overpayment. Service 253.16 is completed upon mailing in the manner designated. 253.17 Subd. 7. [DOES NOT IMPEDE OTHER METHODS.] Nothing in this 253.18 section shall be construed to impede or restrict alternative 253.19 recovery methods for these overpayments or overpayments which do 253.20 not meet the requirements of this section. 253.21 Sec. 8. Minnesota Statutes 1996, section 256.98, 253.22 subdivision 1, is amended to read: 253.23 Subdivision 1. [WRONGFULLY OBTAINING ASSISTANCE.] A person 253.24 who commits any of the following acts or omissions is guilty of 253.25 theft and shall be sentenced under section 609.52, subdivision 253.26 3, clauses (1) to (5): 253.27 (1) obtains ,or attempts to obtain, or aids or abets any 253.28 person to obtain by means of a willfully false statement or 253.29 representation, by intentional concealment of aany material 253.30 fact, or by impersonation or other fraudulent device, assistance 253.31 or the continued receipt of assistance, to include child care or 253.32 vouchers produced according to sections 145.891 to 145.897 and 253.33 MinnesotaCare services according to sections 256.9351 to 253.34 256.966, to which the person is not entitled or assistance 253.35 greater than that to which the person is entitled , or who; 253.36 (2) knowingly aids or abets in buying or in any way 254.1 disposing of the property of a recipient or applicant of 254.2 assistance without the consent of the county agency with intent 254.3 to defeat the purposes of sections 145.891 to 145.897, 256.12, 254.4 256.031 to 256.0361, 256.72 to 256.871, and256.9351 to 256.966, 254.5 child care, the MFIP-S, chapter 256B, 256D, 256J, or 256K, or 254.6 all of these sections is guilty of theft and shall be sentenced254.7 pursuant to section 609.52, subdivision 3, clauses (2), (3)(a)254.8 and (c), (4), and (5). 254.9 The continued receipt of assistance to which the person is 254.10 not entitled or greater than that to which the person is 254.11 entitled as a result of any of the acts, failure to act, or 254.12 concealment described in this subdivision shall be deemed to be 254.13 continuing offenses from the date that the first act or failure 254.14 to act occurred. 254.15 Sec. 9. Minnesota Statutes 1996, section 256.98, 254.16 subdivision 4, is amended to read: 254.17 Subd. 4. [RECOVERY OF ASSISTANCE.] The amount of 254.18 assistance determined to have been incorrectly paid is 254.19 recoverable from: 254.20 (1) the recipient or the recipient's estate by the county 254.21 or the state as a debt due the county or the state or both in254.22 proportion to the contribution of each.; and 254.23 (2) any person found to have taken independent action to 254.24 establish eligibility for, conspired with, or aided and abetted, 254.25 any recipient of public assistance found to have been 254.26 incorrectly paid. 254.27 The obligations established under this subdivision shall be 254.28 joint and several and shall extend to all cases involving client 254.29 error as well as cases involving wrongfully obtained assistance. 254.30 Sec. 10. Minnesota Statutes 1996, section 256.98, 254.31 subdivision 8, is amended to read: 254.32 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 254.33 to be guilty of wrongfully obtaining assistance by a federal or 254.34 state court or by an administrative hearing determination, or 254.35 waiver thereof, through a disqualification consent agreement, or 254.36 as part of any approved diversion plan under section 401.065, or 255.1 any court-ordered stay which carries with it any probationary or 255.2 other conditions, in the aid to families with dependent children 255.3 program, the Minnesota family assistance program-statewide, the 255.4 food stamp program, the Minnesota family investment plan, child 255.5 care program, the general assistance or family general 255.6 assistance program, or the Minnesota supplemental aid program ,255.7 or the work readiness programshall be disqualified from that 255.8 program. The needs of that individual shall not be taken into 255.9 consideration in determining the grant level for that assistance 255.10 unit: 255.11 (1) for six monthsone year after the first offense; 255.12 (2) for 12 monthstwo years after the second offense; and 255.13 (3) permanently after the third or subsequent offense. 255.14 The period of program disqualification shall begin on the 255.15 date stipulated on the advance notice of disqualification 255.16 without possibility of postponement for administrative stay or 255.17 administrative hearing and shall continue through completion 255.18 unless and until the findings upon which the sanctions were 255.19 imposed are reversed by a court of competent jurisdiction. The 255.20 period for which sanctions are imposed is not subject to 255.21 review. The sanctions provided under this subdivision are in 255.22 addition to, and not in substitution for, any other sanctions 255.23 that may be provided for by law for the offense involved. A 255.24 disqualification established through hearing or waiver shall 255.25 result in the disqualification period beginning immediately 255.26 unless the person has become otherwise ineligible for 255.27 assistance. If the person is ineligible for assistance, the 255.28 disqualification period begins when the person again meets the 255.29 eligibility criteria of the program from which they were 255.30 disqualified and makes application for that program. 255.31 Sec. 11. Minnesota Statutes 1996, section 256.983, 255.32 subdivision 1, is amended to read: 255.33 Subdivision 1. [PROGRAMS ESTABLISHED.] Within the limits 255.34 of available appropriations, and to the extent required or255.35 authorized by applicable federal regulations,the commissioner 255.36 of human services shall require the establishmentmaintenance of 256.1 budget neutral fraud prevention investigation programs in the 256.2 sevencounties participating in the fraud prevention 256.3 investigation pilotproject established under this section , and256.4 in 11 additional Minnesota counties with the largest aid to256.5 families with dependent children program caseloads as of July 1,256.6 1991. If funds are sufficient, the commissioner may also extend 256.7 fraud prevention investigation programs to : (1)other 256.8 counties that have welfare fraud control programs already in256.9 place based on enhanced funding contracts covering the fraud256.10 investigation function; and (2) counties that have the largest256.11 AFDC caseloads as of July 1, 1994, and are not currently256.12 participating in the fraud prevention investigation pilot256.13 project. The pilot project may be expandedprovided the 256.14 expansion is budget neutral to the state. 256.15 Sec. 12. Minnesota Statutes 1996, section 256.983, 256.16 subdivision 4, is amended to read: 256.17 Subd. 4. [FUNDING.] (a) Every involved county agency shall256.18 either have in place or obtain an approved contract which meets256.19 all federal requirements necessary to obtain enhanced federal256.20 funding for its welfare fraud control and fraud prevention256.21 investigation programs.County agency reimbursement shall be 256.22 made through the settlement provisions applicable to the aid to 256.23 families with dependent children andprogram, food stamp 256.24 programsprogram, Minnesota family investment program-statewide, 256.25 and medical assistance program and other federal and 256.26 state-funded programs. 256.27 (b) After allowing an opportunity to establish compliance,256.28 The commissioner will deny administrative reimbursementmaintain 256.29 program compliance if for any three-monththree consecutive 256.30 month period during any grant year, a county agency fails to 256.31 comply with fraud prevention investigation program guidelines, 256.32 or fails to meet the cost-effectiveness standards developed by 256.33 the commissioner. This result is contingent on the commissioner 256.34 providing written notice, including an offer of technical 256.35 assistance, within 30 days of the end of the third or subsequent 256.36 month of noncompliance. The county agency shall be required to 257.1 submit a corrective action plan to the commissioner within 30 257.2 days of receipt of a notice of noncompliance. Failure to submit 257.3 a corrective action plan or, continued deviation from standards 257.4 of more than ten percent after submission of a corrective action 257.5 plan, will result in denial of funding for each subsequent month 257.6 during the grant year, or billing the county agency for fraud 257.7 prevention investigation (FPI) service provided by the 257.8 commissioner, or reallocation of program grant funds, or 257.9 investigative resources, or both, to other counties. The denial 257.10 of funding shall apply to the general settlement received by the 257.11 county agency on a quarterly basis and shall not reduce the 257.12 grant amount applicable to the FPI project. 257.13 Sec. 13. Minnesota Statutes 1996, section 256.984, 257.14 subdivision 1, is amended to read: 257.15 Subdivision 1. [DECLARATION.] Every application for public 257.16 assistance under this chapter and/or chapters 256B, 256D, 256K, 257.17 MFIP-S program, and food stamps under chapter 393 shall be in 257.18 writing or reduced to writing as prescribed by the state agency 257.19 and shall contain the following declaration which shall be 257.20 signed by the applicant: 257.21 "I declare under the penalties of perjury that this 257.22 application has been examined by me and to the best of my 257.23 knowledge is a true and correct statement of every material 257.24 point. I understand that a person convicted of perjury may 257.25 be sentenced to imprisonment of not more than five years or 257.26 to payment of a fine of not more than $10,000, or both." 257.27 Sec. 14. Minnesota Statutes 1996, section 256.986, is 257.28 amended to read: 257.29 256.986 [COUNTY COORDINATION OF FRAUD CONTROL ACTIVITIES.] 257.30 (a) The county agency shall prepare and submit to the 257.31 commissioner of human services by January 1April 30 of each 257.32 state fiscal year a plan to coordinate county duties related to 257.33 the prevention, investigation, and prosecution of fraud in 257.34 public assistance programs. Plans may be submitted on a257.35 voluntary basis prior to January 1, 1996.Each county must 257.36 submit its first annual plan prior to January 1, 1997April 30, 258.1 1998. 258.2 (b) Within the limits of appropriations specifically made 258.3 available for this purpose, the commissioner may make grants to 258.4 counties submitting plans under paragraph (a) to implement 258.5 coordination activities. 258.6 Sec. 15. Minnesota Statutes 1996, section 256.9861, 258.7 subdivision 1, is amended to read: 258.8 Subdivision 1. [PROGRAM ESTABLISHED.] Within the limits of 258.9 available state and federal appropriations, and to the extent258.10 required or authorized by applicable federal regulations,the 258.11 commissioner of human services shall make funding available to 258.12 county agencies for the establishment of program integrity258.13 reinvestment initiatives. The project shall initially be258.14 limited to those county agencies participating in federally258.15 funded optional fraud control programs as of January 1,258.16 1995fraud control efforts and require the maintenance of county 258.17 efforts and financial contribution that were in place during 258.18 fiscal year 1996. 258.19 Sec. 16. Minnesota Statutes 1996, section 256.9861, 258.20 subdivision 2, is amended to read: 258.21 Subd. 2. [COUNTY PROPOSALS.] Each included county shall 258.22 develop and submit annual funding, staffing, and operating grant 258.23 proposals to the commissioner no later than April 30 of each 258.24 year for the purpose of allocating federal and state funding and 258.25 appropriations. For the first operating year only, the proposal258.26 shall be submitted no later than October 30.Each proposal 258.27 shall provide information on: 258.28 (1) the staffing and funding of the fraud investigation and 258.29 prosecution operations; 258.30 (2) job descriptions for agency fraud control staff; 258.31 (3) contracts covering outside investigative agencies; 258.32 (4) operational methods to integrate the use of fraud 258.33 prevention investigation techniques; and 258.34 (5) implementation and utilization of administrative 258.35 disqualification hearings and diversions intoby the existing 258.36 county fraud control and prosecution procedures. 259.1 Sec. 17. Minnesota Statutes 1996, section 256.9861, 259.2 subdivision 4, is amended to read: 259.3 Subd. 4. [STANDARDS.] The commissioner shall, after 259.4 consultation with the involved counties, establish standards 259.5 governing the performance levels of involvedcounty 259.6 investigative units based on grant agreements negotiatedwith 259.7 the involvedcounty agencies. The standards shall take into 259.8 consideration and may include investigative caseloads, grant 259.9 savings levels, the comparison of fraud prevention and 259.10 prosecution directed investigations, utilization levels of 259.11 administrative disqualification hearings, the timely reporting 259.12 and implementation of disqualifications, and the timeliness 259.13 of the submission of statistical reports received from259.14 prosecutors. 259.15 Sec. 18. Minnesota Statutes 1996, section 256.9861, 259.16 subdivision 5, is amended to read: 259.17 Subd. 5. [FUNDING.] (a) Grant funds are intended to help259.18 offset the reduction in federal financial participation to 50259.19 percent and may be apportioned to the participating counties259.20 whenever feasible, and within the commissioner's discretion, to259.21 achieve this goal.State funding shall be made available 259.22 contingent on counties submitting a plan that is approved by the 259.23 department of human services. Failure or delay in obtaining 259.24 that approval shall not, however, eliminate the obligation to 259.25 maintain fraud control efforts at the January 1, 1995June 30, 259.26 1996, level. Additional counties may be added to the project to259.27 the extent that funds are subsequently made available. Every259.28 involved county must meet all federal requirements necessary to259.29 obtain federal funding for its welfare fraud control and259.30 prevention programs.County agency reimbursement shall be made 259.31 through the settlement provisions applicable to the AFDC and, 259.32 MFIP-S, food stamp, and medical assistance programs. 259.33 (b) Should a county agency fail to comply with the 259.34 standards set, or fail to meet cost-effectiveness standards 259.35 developed by the commissioner for three months during any grant259.36 yearany three-month period, the commissioner shall deny 260.1 reimbursement or administrative costs, after allowing an 260.2 opportunity to establish compliance. 260.3 (c) Any denial of reimbursement under paragraph (b) is 260.4 contingent on the commissioner providing written notice, 260.5 including an offer of technical assistance, within 30 days of 260.6 the end of the third or subsequent months of noncompliance. The 260.7 county agency shall be required to submit a corrective action 260.8 plan to the commissioner within 30 days of receipt of a notice 260.9 of noncompliance. Failure to submit a corrective action plan or 260.10 continued deviation from standards of more than ten percent 260.11 after submission of corrective action plan, will result in 260.12 denial of funding for each such month during the grant year, or 260.13 billing of the county agency for program integrity reinvestment 260.14 project services provided by the commissioner or reallocation of 260.15 grant funds to other counties. The denial of funding shall 260.16 apply to the general settlement received by the county agency on 260.17 a quarterly basis and shall not reduce the grant amount 260.18 applicable to the program integrity reinvestment project. 260.19 Sec. 19. [256.9863] [ASSISTANCE TRANSACTION CARD; 260.20 PRESUMPTION OF RECEIPT OF BENEFITS.] 260.21 Any person in whose name an assistance transaction card has 260.22 been issued shall be presumed to have received the benefit of 260.23 all transactions involving that card. This presumption applies 260.24 in all situations unless the card in question has been reported 260.25 lost or stolen by the cardholder. This presumption may be 260.26 overcome by a preponderance of evidence indicating that the card 260.27 was neither used by nor with the consent of the cardholder. 260.28 Overcoming this presumption does not create any new or 260.29 additional payment obligation not otherwise established in law, 260.30 rule, or regulation. 260.31 Sec. 20. [256.9864] [REPORTS BY RECIPIENT.] 260.32 (a) An assistance unit with a recent work history or with 260.33 earned income shall report monthly to the county agency on 260.34 income received and other circumstances affecting eligibility or 260.35 assistance amounts. All other assistance units shall report on 260.36 income and other circumstances affecting eligibility and 261.1 assistance amounts, as specified by the state agency. 261.2 (b) An assistance unit required to submit a report on the 261.3 form designated by the commissioner and within ten days of the 261.4 due date or the date of the significant change, whichever is 261.5 later, or otherwise report significant changes which would 261.6 affect eligibility or assistance amounts, is considered to have 261.7 continued its application for assistance effective the date the 261.8 required report is received by the county agency, if a complete 261.9 report is received within a calendar month in which assistance 261.10 was received, except that no assistance shall be paid for the 261.11 period beginning with the end of the month in which the report 261.12 was due and ending with the date the report was received by the 261.13 county agency. 261.14 Sec. 21. [256.9865] [RECOVERY OF OVERPAYMENTS AND ATM 261.15 ERRORS.] 261.16 Subdivision 1. [OBLIGATION TO RECOVER.] If an amount of 261.17 MFIP-S assistance is paid to a recipient in excess of the 261.18 payment due, it shall be recoverable by the county agency. This 261.19 recovery authority also extends to preexisting claims or newly 261.20 discovered claims established under the AFDC program in effect 261.21 on January 1, 1997. The agency shall give written notice to the 261.22 recipient of its intention to recover the overpayment. County 261.23 agency efforts and financial contributions shall be maintained 261.24 at the level in place during fiscal year 1996. 261.25 Subd. 2. [RECOUPMENT.] When an overpayment occurs, the 261.26 county agency shall recover the overpayment from a current 261.27 recipient by reducing the amount of aid payable to the 261.28 assistance unit of which the recipient is a member for one or 261.29 more monthly assistance payments until the overpayment is 261.30 repaid. All county agencies in the state shall reduce the 261.31 assistance payment by three percent of the assistance unit's 261.32 standard of need in nonfraud cases and ten percent where fraud 261.33 has occurred. For recipients receiving benefits via electronic 261.34 benefits transfer, if the overpayment is a result of an 261.35 automated teller machine (ATM) dispensing funds in error to the 261.36 recipient, the agency may recover the ATM error by immediately 262.1 withdrawing funds from the recipient's electronic benefit 262.2 transfer account, up to the amount of the error. In cases where 262.3 there is both an overpayment and underpayment, the county agency 262.4 shall offset one against the other in correcting the payment. 262.5 Subd. 3. [VOLUNTARY REPAYMENTS.] Overpayments may also be 262.6 voluntarily repaid, in part or in full, by the individual, in 262.7 addition to the aid reductions in subdivision 2, to include 262.8 further voluntary reductions in the grant level agreed to in 262.9 writing by the individual, until the total amount of the 262.10 overpayment is repaid. 262.11 Subd. 4. [CLOSED CASE RECOVERIES.] The county agency shall 262.12 make reasonable efforts to recover overpayments to persons no 262.13 longer on assistance according to standards adopted by rule by 262.14 the commissioner of human services. The county agency need not 262.15 attempt to recover overpayments of less than $35 paid to an 262.16 individual no longer on assistance unless the individual has 262.17 been convicted of fraud under section 256.98. 262.18 Sec. 22. [256.9866] [COMMUNITY SERVICE AS A COUNTY 262.19 OBLIGATION.] 262.20 Community service shall be an acceptable sentencing option 262.21 but shall not reduce the state or federal share of any amount to 262.22 be repaid or any subsequent recovery. Any reduction or offset 262.23 of any such amount ordered by a court shall be treated as 262.24 follows: 262.25 (1) any reduction in an overpayment amount, to include the 262.26 amount ordered as restitution, shall not reduce the underlying 262.27 amount established as an overpayment by the state or county 262.28 agency; 262.29 (2) total overpayments shall continue as a debt owed and 262.30 may be recovered by any civil or administrative means otherwise 262.31 available to the state or county agency; and 262.32 (3) any amount ordered to be offset against any overpayment 262.33 shall be deducted from the county share only of any recovery and 262.34 shall be based on the prevailing state minimum wage. To the 262.35 extent that any deduction is in fact made against any state or 262.36 county share, it shall be reimbursed from the county share of 263.1 payments to be made under section 256.025. 263.2 Sec. 23. Minnesota Statutes 1996, section 256D.09, 263.3 subdivision 6, is amended to read: 263.4 Subd. 6. [RECOVERY OF OVERPAYMENTS.] (a) If an amount of 263.5 general assistance or family general assistance is paid to a 263.6 recipient in excess of the payment due, it shall be recoverable 263.7 by the county agency. The agency shall give written notice to 263.8 the recipient of its intention to recover the overpayment. 263.9 (b) When an overpayment occurs, the county agency shall 263.10 recover the overpayment from a current recipient by reducing the 263.11 amount of aid payable to the assistance unit of which the 263.12 recipient is a member, for one or more monthly assistance 263.13 payments, until the overpayment is repaid. All county agencies 263.14 in the state shall reduce the assistance payment by three 263.15 percent of the assistance unit's standard of need in nonfraud 263.16 cases and ten percent where fraud has occurred, or the amount of 263.17 the monthly payment, whichever is less, for all overpayments. 263.18 whether or not the overpayment is due solely to agency error.263.19 The amount of this reduction is ten percent, if the overpayment263.20 is due solely to having wrongfully obtained assistance, whether263.21 based on:263.22 (1) a court order;263.23 (2) the finding of an administrative fraud disqualification263.24 hearing or the waiver of such a hearing; or263.25 (3) a confession or judgment containing an admission of an263.26 intentional program violation.263.27 (c) In cases when there is both an overpayment and 263.28 underpayment, the county agency shall offset one against the 263.29 other in correcting the payment. 263.30 (d) Overpayments may also be voluntarily repaid, in part or 263.31 in full, by the individual, in addition to the aid reductions 263.32 provided in this subdivision, to include further voluntary 263.33 reductions in the grant level agreed to in writing by the 263.34 individual, until the total amount of the overpayment is repaid. 263.35 (e) The county agency shall make reasonable efforts to 263.36 recover overpayments to persons no longer on assistance under 264.1 standards adopted in rule by the commissioner of human 264.2 services. The county agency need not attempt to recover 264.3 overpayments of less than $35 paid to an individual no longer on 264.4 assistance if the individual does not receive assistance again 264.5 within three years, unless the individual has been convicted of 264.6 violating section 256.98. 264.7 Sec. 24. Minnesota Statutes 1996, section 270A.03, 264.8 subdivision 5, is amended to read: 264.9 Subd. 5. [DEBT.] "Debt" means a legal obligation of a 264.10 natural person to pay a fixed and certain amount of money, which 264.11 equals or exceeds $25 and which is due and payable to a claimant 264.12 agency. The term includes criminal fines imposed under section 264.13 609.10 or 609.125 and restitution. A debt may arise under a 264.14 contractual or statutory obligation, a court order, or other 264.15 legal obligation, but need not have been reduced to judgment. 264.16 A debt does not includeincludes any legal obligation of a 264.17 current recipient of assistance which is based on overpayment of 264.18 an assistance grant where that payment is based on a client 264.19 waiver or an administrative or judicial finding of an 264.20 intentional program violation; or where the debt is owed to a 264.21 program wherein the debtor is not a client at the time 264.22 notification is provided to initiate recovery under this chapter 264.23 and the debtor is not a current recipient of food stamps, 264.24 transitional child care, or transitional medical assistance. 264.25 A debt does not include any legal obligation to pay a 264.26 claimant agency for medical care, including hospitalization if 264.27 the income of the debtor at the time when the medical care was 264.28 rendered does not exceed the following amount: 264.29 (1) for an unmarried debtor, an income of $6,400 or less; 264.30 (2) for a debtor with one dependent, an income of $8,200 or 264.31 less; 264.32 (3) for a debtor with two dependents, an income of $9,700 264.33 or less; 264.34 (4) for a debtor with three dependents, an income of 264.35 $11,000 or less; 264.36 (5) for a debtor with four dependents, an income of $11,600 265.1 or less; and 265.2 (6) for a debtor with five or more dependents, an income of 265.3 $12,100 or less. 265.4 The income amounts in this subdivision shall be adjusted 265.5 for inflation for debts incurred in calendar years 1991 and 265.6 thereafter. The dollar amount of each income level that applied 265.7 to debts incurred in the prior year shall be increased in the 265.8 same manner as provided in section 290.06, subdivision 2d, for 265.9 the expansion of the tax rate brackets. 265.10 Sec. 25. Minnesota Statutes 1996, section 388.23, 265.11 subdivision 1, is amended to read: 265.12 Subdivision 1. [AUTHORITY.] The county attorney, or any 265.13 deputy or assistant county attorney whom the county attorney 265.14 authorizes in writing, has the authority to subpoena and require 265.15 the production of any records of telephone companies, cellular 265.16 phone companies, paging companies, electric companies, gas 265.17 companies, water utilities, chemical suppliers, hotels and 265.18 motels, pawn shops, airlines, buses, taxis, and other entities 265.19 engaged in the business of transporting people, and freight 265.20 companies, warehousing companies, self-service storage 265.21 facilities, package delivery companies, and other entities 265.22 engaged in the businesses of transport, storage, or delivery, 265.23 and records of the existence of safe deposit box account numbers 265.24 and customer savings and checking account numbers maintained by 265.25 financial institutions and safe deposit companies, insurance 265.26 records relating to the monetary payment or settlement of 265.27 claims, and wage and employment records of an applicant or 265.28 recipient of public assistance who is the subject of a welfare 265.29 fraud investigation relating to eligibility information for 265.30 public assistance programs. Subpoenas may only be issued for 265.31 records that are relevant to an ongoing legitimate law 265.32 enforcement investigation. Administrative subpoenas may only be 265.33 issued in welfare fraud cases if there is probable cause to 265.34 believe a crime has been committed. This provision applies only 265.35 to the records of business entities and does not extend to 265.36 private individuals or their dwellings. Subpoenas may only be266.1 served by peace officers as defined by section 626.84,266.2 subdivision 1, paragraph (c).266.3 Sec. 26. Minnesota Statutes 1996, section 393.07, 266.4 subdivision 10, is amended to read: 266.5 Subd. 10. [FEDERAL FOOD STAMP PROGRAM AND THE MATERNAL AND 266.6 CHILD NUTRITION ACT.] (a) The local social services agency shall 266.7 establish and administer the food stamp program pursuant266.8 according to rules of the commissioner of human services, the 266.9 supervision of the commissioner as specified in section 256.01, 266.10 and all federal laws and regulations. The commissioner of human 266.11 services shall monitor food stamp program delivery on an ongoing 266.12 basis to ensure that each county complies with federal laws and 266.13 regulations. Program requirements to be monitored include, but 266.14 are not limited to, number of applications, number of approvals, 266.15 number of cases pending, length of time required to process each 266.16 application and deliver benefits, number of applicants eligible 266.17 for expedited issuance, length of time required to process and 266.18 deliver expedited issuance, number of terminations and reasons 266.19 for terminations, client profiles by age, household composition 266.20 and income level and sources, and the use of phone certification 266.21 and home visits. The commissioner shall determine the 266.22 county-by-county and statewide participation rate. 266.23 (b) On July 1 of each year, the commissioner of human 266.24 services shall determine a statewide and county-by-county food 266.25 stamp program participation rate. The commissioner may 266.26 designate a different agency to administer the food stamp 266.27 program in a county if the agency administering the program 266.28 fails to increase the food stamp program participation rate 266.29 among families or eligible individuals, or comply with all 266.30 federal laws and regulations governing the food stamp program. 266.31 The commissioner shall review agency performance annually to 266.32 determine compliance with this paragraph. 266.33 (c) A person who commits any of the following acts has 266.34 violated section 256.98 or 609.821, or both, and is subject to 266.35 both the criminal and civil penalties provided under those 266.36 sections: 267.1 (1) obtains or attempts to obtain, or aids or abets any 267.2 person to obtain by means of a willfully falsewillful statement 267.3 or representationmisrepresentation, or intentional concealment 267.4 of a material fact, food stamps or vouchers issued according to 267.5 sections 145.891 to 145.897 to which the person is not entitled 267.6 or in an amount greater than that to which that person is 267.7 entitled or which specify nutritional supplements to which that 267.8 person is not entitled; or 267.9 (2) presents or causes to be presented, coupons or vouchers 267.10 issued according to sections 145.891 to 145.897 for payment or 267.11 redemption knowing them to have been received, transferred or 267.12 used in a manner contrary to existing state or federal law; or 267.13 (3) willfully uses, possesses, or transfers food stamp 267.14 coupons or, authorization to purchase cards or vouchers issued 267.15 according to sections 145.891 to 145.897 in any manner contrary 267.16 to existing state or federal law, rules, or regulations; or 267.17 (4) buys or sells food stamp coupons, authorization to 267.18 purchase cards or, other assistance transaction devices, 267.19 vouchers issued according to sections 145.891 to 145.897, or any 267.20 food obtained through the redemption of vouchers issued 267.21 according to sections 145.891 to 145.897 for cash or 267.22 consideration other than eligible food. 267.23 (d) A peace officer or welfare fraud investigator may 267.24 confiscate food stamps, authorization to purchase cards, or 267.25 other assistance transaction devices found in the possession of 267.26 any person who is neither a recipient of the food stamp program 267.27 nor otherwise authorized to possess and use such materials. 267.28 Confiscated property shall be disposed of as the commissioner 267.29 may direct and consistent with state and federal food stamp 267.30 law. The confiscated property must be retained for a period of 267.31 not less than 30 days to allow any affected person to appeal the 267.32 confiscation under section 256.045. 267.33 (e) Food stamp overpayment claims which are due in whole or 267.34 in part to client error shall be established by the county 267.35 agency for a period of six years from the date of any resultant 267.36 overpayment. 268.1 (f) With regard to the federal tax revenue offset program 268.2 only, recovery incentives authorized by the federal food and 268.3 consumer service shall be retained at the rate of 50 percent by 268.4 the state agency and 50 percent by the certifying county agency. 268.5 (g) A peace officer, welfare fraud investigator, federal 268.6 law enforcement official, or the commissioner of health may 268.7 confiscate vouchers found in the possession of any person who is 268.8 neither issued vouchers under sections 145.891 to 145.897, nor 268.9 otherwise authorized to possess and use such vouchers. 268.10 Confiscated property shall be disposed of as the commissioner of 268.11 health may direct and consistent with state and federal law. 268.12 The confiscated property must be retained for a period of not 268.13 less than 30 days. 268.14 Sec. 27. [FUNDING AVAILABILITY.] 268.15 Unexpended funds appropriated for the provision of program 268.16 integrity activities for fiscal year 1998 will also be available 268.17 to the commissioner to fund fraud prevention and control 268.18 initiatives and do not cancel but are available to the 268.19 commissioner for these purposes for fiscal year 1999. 268.20 Unexpended funds may be transferred between the fraud prevention 268.21 investigation program and fraud control programs to promote the 268.22 provisions of sections 256.983 and 256.9861. 268.23 Sec. 28. [EFFECTIVE DATE.] 268.24 Sections 1 to 27 are effective July 1, 1997.