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Minnesota Legislature

Office of the Revisor of Statutes

SF 1

4th Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 4th Engrossment

  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); and 
154.6      (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 month 
155.6   received by the public agency responsible for child support 
155.7   enforcement shall be paid to the family and disregarded in 
155.8   determining eligibility and the amount of assistance in 
155.9   accordance with United States Code, title 42, sections 
155.10  602(a)(8)(A)(vi) and 657(b)(1).  This paragraph applies 
155.11  regardless of whether the caregiver is in transitional status, 
155.12  is exempt from developing or complying with the terms of a 
155.13  family support agreement, or has had a sanction imposed under 
155.14  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 under 
155.18  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 and 
155.27  training services began prior to May 1, 1990, if the caretaker's 
155.28  AFDC eligibility has not been interrupted for 30 days or more 
155.29  and the caretaker's employability development plan has not been 
155.30  completed; 
155.31     (4) recipients who are members of a family in which the 
155.32  youngest child is within two years of being ineligible for AFDC 
155.33  due to age; 
155.34     (5) custodial parents under the age of 24 who:  (i) have 
155.35  not completed a high school education and who, at the time of 
155.36  application for AFDC, were not enrolled in high school or in a 
156.1   high school equivalency program; or (ii) have had little or no 
156.2   work experience in the preceding year; 
156.3      (6) recipients who have received AFDC for 36 or more months 
156.4   out of the last 60 months; 
156.5      (7) recipients who are participants in the self-employment 
156.6   investment demonstration project under section 268.95; and 
156.7      (8) recipients who participate in the new chance research 
156.8   and demonstration project under contract with the department of 
156.9   human services and 
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 of 
156.15  persons listed in paragraph (a) in employment and training 
156.16  services is insufficient either to meet federal performance 
156.17  targets or to fully utilize funds appropriated under this 
156.18  section, the commissioner may, after notifying the chairs of the 
156.19  senate family services committee, the house health and human 
156.20  services committee, the family services division of the senate 
156.21  family services and health care committees, and the human 
156.22  services division of the house health and human services 
156.23  committee, permit additional groups of recipients to participate 
156.24  until the next meeting of the legislative advisory commission, 
156.25  after which the additional groups may continue to enroll for 
156.26  participation unless the legislative advisory commission 
156.27  disapproves the continued enrollment.  The commissioner shall 
156.28  allow participation of additional groups in the following order 
156.29  only as needed to meet performance targets or fully utilize 
156.30  funding for employment and training services under this section: 
156.31     (1) recipients who have received 24 or more months of AFDC 
156.32  out of the previous 48 months; and 
156.33     (2) recipients who have not completed a high school 
156.34  education or a high school equivalency program. 
156.35     (c) To the extent of money appropriated specifically for 
156.36  this paragraph, the commissioner may permit AFDC caretakers who 
157.1   are not eligible for participation in employment and training 
157.2   services under the provisions of paragraph (a) or (b) to 
157.3   participate.  Money must be allocated to county agencies based 
157.4   on the county's percentage of participants statewide in services 
157.5   under this section in the prior calendar year.  Caretakers must 
157.6   be selected on a first-come, first-served basis from a waiting 
157.7   list of caretakers who volunteer to participate.  The 
157.8   commissioner may, on a quarterly basis, reallocate unused 
157.9   allocations to county agencies that have sufficient volunteers.  
157.10  If funding under this paragraph is discontinued in future fiscal 
157.11  years, caretakers who began participating under this paragraph 
157.12  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 accordance 
157.26  with according 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  pursuant according 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 or 
159.34  reduced earnings without good cause and applied for assistance 
159.35  so as to be able later to return to employment with the 
159.36  advantage of the income disregard; or (d) (c) failed without 
160.1   good cause to make a timely report of earned income in 
160.2   accordance with according 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 of 
160.14  $30 and one-third of earned income in this clause shall be 
160.15  applied to the individual's income for a period not to exceed 
160.16  four consecutive months.  Any month in which the individual 
160.17  loses this disregard because of the provisions of subclauses (a) 
160.18  to (d) shall be considered as one of the four months.  An 
160.19  additional $30 work incentive must be available for an 
160.20  eight-month period beginning in the month following the last 
160.21  month of the combined $30 and one-third work incentive.  This 
160.22  period must be in effect whether or not the person has earned 
160.23  income or is eligible for AFDC.  To again qualify for the earned 
160.24  income disregards under this clause, the individual must not be 
160.25  a recipient of aid for a period of 12 consecutive months.  When 
160.26  an assistance unit becomes ineligible for aid due to the fact 
160.27  that these disregards are no longer applied to income, the 
160.28  assistance unit shall be eligible for medical assistance 
160.29  benefits for a 12-month period beginning with the first month of 
160.30  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 monthly 
161.3   support obligation collected by the support and recovery (IV-D) 
161.4   unit.  The first $50 of periodic support payments collected by 
161.5   the public authority responsible for child support enforcement 
161.6   from a person with a legal obligation to pay support for a 
161.7   member of the assistance unit must be paid to the assistance 
161.8   unit within 15 days after the end of the month in which the 
161.9   collection of the periodic support payments occurred and must be 
161.10  disregarded when determining the amount of assistance.  A review 
161.11  of a payment decision under this clause must be requested within 
161.12  30 days after receiving the notice of collection of assigned 
161.13  support or within 90 days after receiving the notice if good 
161.14  cause can be shown for not making the request within the 30-day 
161.15  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 pursuant according 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 AFDC emergency 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 children 
166.18  program state'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  pursuant according 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 aid 
167.10  to families with dependent children program under section 256.73 
167.11  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 pursuant according 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 the 
168.1   aid to families with dependent children program excluded 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 in under the aid to families with dependent 
168.22  children program state 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 to 
171.5   families with dependent children program according to chapter 
171.6   256, who are eligible under section 256B.055, subdivision 
171.7   3 under 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 or 
171.18  otherwise permanently residing in the United States under the 
171.19  color of law.  Aliens who are seeking legalization under the 
171.20  Immigration Reform and Control Act of 1986, Public Law Number 
171.21  99-603, who are under age 18, over age 65, blind, disabled, or 
171.22  Cuban or Haitian, and who meet the eligibility requirements of 
171.23  medical assistance under subdivision 1 and sections 256B.055 to 
171.24  256B.062 are eligible to receive medical assistance.  Pregnant 
171.25  women who are aliens seeking legalization under the Immigration 
171.26  Reform and Control Act of 1986, Public Law Number 99-603, and 
171.27  who meet the eligibility requirements of medical assistance 
171.28  under subdivision 1 are eligible for payment of care and 
171.29  services through the period of pregnancy and six weeks 
171.30  postpartum.  Payment shall also be made for care and services 
171.31  that are furnished to an alien, regardless of immigration 
171.32  status, who otherwise meets the eligibility requirements of this 
171.33  section if such care and services are necessary for the 
171.34  treatment of an emergency medical condition, except for organ 
171.35  transplants and related care and services.  For purposes of this 
171.36  subdivision, the term "emergency medical condition" means a 
172.1   medical condition, including labor and delivery, that if not 
172.2   immediately treated could cause a person physical or mental 
172.3   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 persons eligible 
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 be the policy of this state that persons 
177.24  eligible households unable to provide for themselves and not 
177.25  otherwise provided for by law and who 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 persons single 
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 a 
179.12  family, the standards of assistance are the same as the 
179.13  standards of assistance that apply to a family under the aid to 
179.14  families with dependent children program if that family had the 
179.15  same number of parents and children as the assistance unit under 
179.16  general assistance and if all members of that family were 
179.17  eligible for the aid to families with dependent children 
179.18  program.  If one or more members of the family are not included 
179.19  in the assistance unit for general assistance, the standards of 
179.20  assistance for the remaining members are the same as the 
179.21  standards of assistance that apply to an assistance unit 
179.22  composed of the entire family, less the standards of assistance 
179.23  for a family of the same number of parents and children as those 
179.24  members of the family who are not in the assistance unit for 
179.25  general assistance.  In no case shall the standard for family 
179.26  members who are in the assistance unit for general assistance, 
179.27  when combined with the standard for family members who are not 
179.28  in the general assistance unit, total more than the standard for 
179.29  the entire family if all members were in an AFDC assistance 
179.30  unit.  A child may not be excluded from the assistance unit 
179.31  unless income intended for its benefit is received from a 
179.32  federally aided categorical assistance program or supplemental 
179.33  security income.  The income of a child who is excluded from the 
179.34  assistance unit may not be counted in the determination of 
179.35  eligibility or benefit level for the assistance unit. 
179.36     (f) An assistance unit consisting of one or more members of 
180.1   a family must have its grant determined using the policies and 
180.2   procedures of the aid to families with dependent children 
180.3   program, except that, until June 30, 1995, in cases where a 
180.4   county agency has developed or approved a case plan that 
180.5   includes reunification with the children, foster care 
180.6   maintenance payments made under state or local law for a child 
180.7   who is temporarily absent from the assistance unit must not be 
180.8   considered income to the child and the payments must not be 
180.9   counted in the determination of the eligibility or benefit level 
180.10  of the assistance unit.  Otherwise, the standard of assistance 
180.11  must be determined according to paragraph (e); the first $50 of 
180.12  total child support received by an assistance unit in a month 
180.13  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 order 
180.17  to maximize the use of federal funds, The commissioner shall 
180.18  adopt rules, to the extent permitted by federal law, for 
180.19  eligibility for the emergency assistance program under aid to 
180.20  families with dependent children, and under 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 minor child, 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 with according 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 less 
181.25  than 30 days shall be considered a resident if the applicant can 
181.26  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 the 
181.29  state or was formerly a resident of the state for at least 365 
181.30  days and is returning to the state from a temporary absence, as 
181.31  those terms are defined in rules adopted by the commissioner; 
181.32     (3) that the applicant has come to the state to join a 
181.33  close relative which, for purposes of this subdivision, means a 
181.34  parent, grandparent, brother, sister, spouse, or child; or 
181.35     (4) that the applicant has come to this state to accept a 
181.36  bona fide offer of employment for which the applicant is 
182.1   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   including medical emergencies, or where unusual hardship would 
182.5   result from denial of general assistance medical care.  For 
182.6   general assistance, a county may shall waive the 30-day 
182.7   residency requirement in cases of emergencies, including medical 
182.8   emergencies, or where 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 pursuant 
185.4   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 1 follow 
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, or aid 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 alien 
187.9   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 alien noncitizen 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 subdivision paragraph 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 alien a 
187.20  noncitizen who is aged, blind, or disabled as defined in United 
187.21  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 family 
188.2   whose assistance unit with income and resources are less 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 or 
188.6   family assistance 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 pursuant according 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, in 
189.20  accordance with according 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, but and 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 that the 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 two four 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 is 
191.6   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 who 
191.23  are otherwise eligible for general assistance may receive 
191.24  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 person a 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 funded federally aided assistance 
192.11  program providing benefits equal to or greater than those of 
192.12  general assistance, the person single 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 person 
192.36  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 if 
193.3   the person could be considered an essential person under section 
193.4   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 INELIGIBLE CITIZENSHIP.] (a) Beginning 
193.8   October 1, 1993, an undocumented alien or a nonimmigrant is 
193.9   ineligible for general assistance benefits.  For purposes of 
193.10  this subdivision, a nonimmigrant is an individual in one or more 
193.11  of the classes listed in United States Code, title 8, section 
193.12  1101(a)(15), and an undocumented alien is an individual who 
193.13  resides in the United States without the approval or 
193.14  acquiescence of the Immigration and Naturalization Service. 
193.15     (b) This subdivision does not apply to a child under age 
193.16  18, to a Cuban or Haitian entrant as defined in Public Law 
193.17  Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 
193.18  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 agency 
194.32  determines that the participant has complied with the program 
194.33  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 the for failure to meet the requirements,.  The notice 
195.28  must ask the reason for the noncompliance, and must identify 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 offer 
195.32  the participant a conciliation conference as provided in 
195.33  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 conference 
196.2   to participants who have failed to comply with food stamp 
196.3   employment and training program requirements.  The purpose of 
196.4   the conference is to determine the cause for noncompliance, to 
196.5   attempt to resolve the problem causing the noncompliance so that 
196.6   all requirements are complied with, and to determine if good 
196.7   cause for noncompliance was present.  The conciliation period 
196.8   shall run for ten working days from the date of the notice 
196.9   required in paragraph (c).  Information about how to request a 
196.10  conciliation conference must be specified in the notice required 
196.11  in paragraph (c).  If the county agency determines that the 
196.12  participant, during the conciliation period, complied with all 
196.13  food stamp employment and training program requirements that the 
196.14  recipient was required to comply with prior to and during the 
196.15  conciliation period, or if the county agency determines that 
196.16  good cause for failing to comply with the requirements was 
196.17  present, a sanction on the participant's or household's food 
196.18  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 period month 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 following 
196.26  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; and 
197.11     (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 adult 
198.4   who receives general assistance under section 256D.05, 
198.5   subdivision 1, paragraph (b), is not exempt unless that person 
198.6   qualifies under one of the remaining exemption provisions in 
198.7   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 dependent 
201.28  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 pursuant according 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 excluded an 
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 assistance 
205.24  program known as aid to families with dependent children $1,000; 
205.25  and 
205.26     (2) other property which has been determined, in accordance 
205.27  with and subject according to limitations contained in rules 
205.28  promulgated by the commissioner, to be essential to the family 
205.29  or individual the 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 family assistance 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 individual 
205.35  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 family assistance unit; and 
206.2      (3) payments, made pursuant according 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 family an 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; and 256D.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 general 
208.28  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 determine use 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 pursuant according 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 pursuant according 
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, work 
212.34  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) pursuant according to section 13.05; 
213.26     (2) pursuant according to court order; 
213.27     (3) pursuant according 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 pursuant according 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 with according 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 pursuant 
215.36  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 pursuant according 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 with 
216.25  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, and aid 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, or aid 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 with According 
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 pursuant according 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  pursuant according to this section the total money received from 
228.13  the federal government for social services pursuant according 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 work 
231.5   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 work 
232.21  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 readiness 
232.35  assistance cases and aid 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 work 
233.22  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 readiness or Minnesota family 
233.36  investment program-statewide, including AFDC and MFIP-S 
234.1   employment and training programs, and general assistance or work 
234.2   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 and general 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, pursuant 
235.22  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 required 
237.7   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  pursuant according 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 with According 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   pursuant according 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 purpose purposes 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 control control/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 control control/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 under 
248.21  the terms of the Social Security Act and the balance must be 
248.22  paid into the treasury of the state or county in accordance with 
248.23  current rates of financial participation; except the 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, 256.031 
249.8   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 pursuant according 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 pursuant according 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 may 
251.4   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 with 
251.14  dependent children program cash 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 forth specified 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 a any 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, and 256.9351 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 sentenced 
254.7   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 in 
254.22  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 program shall 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 months one year after the first offense; 
255.12     (2) for 12 months two 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 or 
255.35  authorized by applicable federal regulations, the commissioner 
255.36  of human services shall require the establishment maintenance of 
256.1   budget neutral fraud prevention investigation programs in the 
256.2   seven counties participating in the fraud prevention 
256.3   investigation pilot project established under this section, and 
256.4   in 11 additional Minnesota counties with the largest aid to 
256.5   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 in 
256.9   place based on enhanced funding contracts covering the fraud 
256.10  investigation function; and (2) counties that have the largest 
256.11  AFDC caseloads as of July 1, 1994, and are not currently 
256.12  participating in the fraud prevention investigation pilot 
256.13  project.  The pilot project may be expanded provided 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 shall 
256.18  either have in place or obtain an approved contract which meets 
256.19  all federal requirements necessary to obtain enhanced federal 
256.20  funding for its welfare fraud control and fraud prevention 
256.21  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 and program, food stamp 
256.24  programs program, 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 reimbursement maintain 
256.29  program compliance if for any three-month three 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 1 April 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 a 
257.35  voluntary basis prior to January 1, 1996.  Each county must 
257.36  submit its first annual plan prior to January 1, 1997 April 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 extent 
258.10  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 integrity 
258.13  reinvestment initiatives.  The project shall initially be 
258.14  limited to those county agencies participating in federally 
258.15  funded optional fraud control programs as of January 1, 
258.16  1995 fraud 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 proposal 
258.26  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 into by 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 involved county 
259.6   investigative units based on grant agreements negotiated with 
259.7   the involved county 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 from 
259.14  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 help 
259.18  offset the reduction in federal financial participation to 50 
259.19  percent and may be apportioned to the participating counties 
259.20  whenever feasible, and within the commissioner's discretion, to 
259.21  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, 1995 June 30, 
259.26  1996, level.  Additional counties may be added to the project to 
259.27  the extent that funds are subsequently made available.  Every 
259.28  involved county must meet all federal requirements necessary to 
259.29  obtain federal funding for its welfare fraud control and 
259.30  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 grant 
259.36  year any 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 overpayment 
263.20  is due solely to having wrongfully obtained assistance, whether 
263.21  based on: 
263.22     (1) a court order; 
263.23     (2) the finding of an administrative fraud disqualification 
263.24  hearing or the waiver of such a hearing; or 
263.25     (3) a confession or judgment containing an admission of an 
263.26  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 include includes 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 be 
266.1   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 pursuant 
266.8   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 false willful statement 
267.3   or representation misrepresentation, 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.