1st Unofficial Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to human services; establishing the Minnesota 1.3 family investment program-statewide, contingent 1.4 benefit standards, and the work first program; making 1.5 assistance program changes; making technical changes; 1.6 establishing the corps to career community service 1.7 program and the citizenship promotion program; 1.8 requiring a plan for providing a tribal employment and 1.9 training program; requiring a proposal for repayment 1.10 of post-secondary education funds; establishing 1.11 program integrity initiatives; establishing procedures 1.12 for overpayment of assistance and establishing 1.13 notification requirements; establishing criminal 1.14 penalties for wrongfully obtaining assistance; 1.15 requiring fraud prevention investigation programs to 1.16 be budget neutral; establishing the presumption of 1.17 receipt of benefits for persons who have been issued 1.18 an assistance transaction card; establishing recovery 1.19 of overpayments and ATM errors; requiring notification 1.20 to undocumented persons regarding the release of 1.21 personal data; amending Minnesota Statutes 1996, 1.22 sections 13.46, subdivisions 1 and 2; 13.82, 1.23 subdivision 1; 84.0887, subdivision 2; 84.98, 1.24 subdivision 3; 136A.125, subdivision 2; 196.27; 1.25 237.70, subdivision 4a; 254B.02, subdivision 1; 1.26 256.01, subdivisions 2, and 4a; 256.017, subdivisions 1.27 1, 2, and 4; 256.019; 256.031, subdivision 5, and by 1.28 adding a subdivision; 256.033, subdivisions 1 and 1a; 1.29 256.045, subdivision 3; 256.046; 256.736, subdivision 1.30 3a; 256.74, subdivision 1; 256.82, subdivision 2; 1.31 256.935, subdivision 1; 256.9354, by adding a 1.32 subdivision; 256.98, subdivisions 1, 4, and 8; 1.33 256.981; 256.983, subdivisions 1 and 4; 256.984, 1.34 subdivision 1; 256.9850; 256.986; 256.9861, 1.35 subdivisions 1, 2, 4, and 5; 256B.055, subdivisions 3, 1.36 5, and by adding a subdivision; 256B.056, subdivisions 1.37 1a, 3, and 4; 256B.057, subdivisions 1, 1b, and 2b; 1.38 256B.06, subdivision 4; 256B.062; 256D.01, 1.39 subdivisions 1, 1a, and 1e; 256D.02, subdivisions 6 1.40 and 12a; 256D.03, subdivision 3; 256D.05, subdivisions 1.41 1, 5, and 8; 256D.051, subdivisions 1a, 2a, 3a, and by 1.42 adding a subdivision; 256D.055; 256D.06, subdivisions 1.43 2 and 5; 256D.08, subdivisions 1 and 2; 256D.09, 1.44 subdivision 6, and by adding a subdivision; 256D.435, 1.45 subdivision 3; 256D.44, subdivision 5; 256E.03, 1.46 subdivision 2; 256E.06, subdivisions 1 and 3; 256E.07, 2.1 subdivision 1; 256E.08, subdivision 3; 256F.05, 2.2 subdivision 5; 256G.01, subdivision 4; 257.3573, 2.3 subdivision 2; 259.67, subdivision 4; 260.38; 2.4 268.0111, subdivisions 5 and 7; 268.0122, subdivision 2.5 3; 268.552, subdivision 5; 268.6751, subdivision 1; 2.6 268.676, subdivision 1; 268.86, subdivision 2; 2.7 268.871, subdivision 1; 268.90, subdivision 2; 2.8 268.916; 268.95, subdivision 4; 270A.03, subdivision 2.9 5; 388.23, subdivision 1; 393.07, subdivisions 6 and 2.10 10; and 477A.0122, subdivision 2; proposing coding for 2.11 new law in Minnesota Statutes, chapters 3; 256; 256B; 2.12 and 256D; proposing coding for new law as Minnesota 2.13 Statutes, chapters 256J; and 256K; repealing Minnesota 2.14 Statutes 1996, sections 256.12, subdivisions 9, 10, 2.15 14, 15, 19, 20, 21, 22, and 23; 256.72; 256.73, 2.16 subdivisions 1, 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 2.17 10, and 11; 256.7341; 256.7351; 256.7352; 256.7353; 2.18 256.7354; 256.7355; 256.7356; 256.7357; 256.7358; 2.19 256.7359; 256.736, subdivision 18; 256.7365, 2.20 subdivisions 1, 2, 3, 4, 5, 6, 7, and 9; 256.7366; 2.21 256.737; 256.738; 256.7381; 256.7382; 256.7383; 2.22 256.7384; 256.7385; 256.7386; 256.7387; 256.7388; 2.23 256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 2.24 256.745; 256.75; 256.76, subdivision 1; 256.78; 2.25 256.80; 256.81; 256.82; 256.84; 256.85; 256.86; 2.26 256.863; 256.871; 256.8711; 256.879; 256D.02, 2.27 subdivision 5; 256D.0511; and 256D.065. 2.28 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.29 ARTICLE 1 2.30 MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 2.31 Section 1. [256J.01] [ESTABLISHING MINNESOTA FAMILY 2.32 INVESTMENT PROGRAM-STATEWIDE.] 2.33 Subdivision 1. [IMPLEMENTATION OF MINNESOTA FAMILY 2.34 INVESTMENT PROGRAM-STATEWIDE (MFIP-S).] This chapter and chapter 2.35 256K may be cited as the Minnesota family investment 2.36 program-statewide (MFIP-S). MFIP-S is the statewide 2.37 implementation of components of the Minnesota family investment 2.38 plan (MFIP) authorized under section 256.031 and Minnesota 2.39 family investment plan-Ramsey county (MFIP-R) in section 256.047. 2.40 This subdivision is effective January 1, 1998, except the 2.41 transitional provision in section 72 applies. 2.42 Subd. 2. [IMPLEMENTATION OF TEMPORARY ASSISTANCE FOR NEEDY 2.43 FAMILIES (TANF).] The Personal Responsibility and Work 2.44 Opportunity Reconciliation Act of 1996, Public Law Number 2.45 104-193, eliminates the aid to families with dependent children 2.46 (AFDC) program and replaces it with a program of block grants to 2.47 states for temporary assistance for needy families (TANF). TANF 2.48 provides cash assistance for a limited time to families with 2.49 children and to pregnant women. Minnesota's TANF assistance 3.1 will be provided through a statewide expansion of MFIP. The 3.2 modifications specified in this chapter are necessary to comply 3.3 with the new federal law and to improve MFIP. Eligible 3.4 Applicants and recipients of AFDC, family general assistance, 3.5 and food stamps will be converted to the MFIP-S program. The 3.6 conversion to MFIP-S must be made by January 1, 1998, and may be 3.7 made earlier at county option. 3.8 Subd. 3. [RELATIONSHIP TO OTHER STATUTES AND 3.9 RULES.] MFIP-S replaces eligibility for families with children 3.10 and pregnant women under the general assistance program, 3.11 governed by sections 256D.01 to 256D.21 and Minnesota Rules, 3.12 parts 9500.1200 to 9500.1270. 3.13 This subdivision is effective January 1, 1998, except the 3.14 transitional provision in section 72 applies. 3.15 Subd. 4. [CHANGES TO WAIVERS.] The commissioner of human 3.16 services may negotiate and obtain changes in the federal waivers 3.17 and terms and conditions contained in MFIP, MFIP-R, and MFIP-S. 3.18 The commissioner may also terminate federal waivers by directing 3.19 so in the applicable state plan. 3.20 Subd. 5. [COMPLIANCE SYSTEM.] The commissioner shall 3.21 administer a compliance system for the state's temporary 3.22 assistance for needy families (TANF) program, the food stamp 3.23 program, emergency assistance, general assistance, Medical 3.24 Assistance, general assistance medical care, emergency general 3.25 assistance, Minnesota supplemental aid, preadmission screening, 3.26 child support program, and alternative care grants under the 3.27 powers and authorities named in section 256.01, subdivision 2. 3.28 The purpose of the compliance system is to permit the 3.29 commissioner to supervise the administration of public 3.30 assistance programs and to enforce timely and accurate 3.31 distribution of benefits, completeness of service and efficient 3.32 and effective program management and operations, to increase 3.33 uniformity and consistency in the administration and delivery of 3.34 public assistance programs throughout the state, and to reduce 3.35 the possibility of sanction and fiscal disallowances for 3.36 noncompliance with federal regulations and state statutes. 4.1 Sec. 2. [256J.02] [FEDERAL TEMPORARY ASSISTANCE FOR NEEDY 4.2 FAMILIES BLOCK GRANT.] 4.3 Subdivision 1. [COMMISSIONER'S AUTHORITY TO ADMINISTER 4.4 BLOCK GRANT FUNDS.] The commissioner of human services is 4.5 authorized to receive, administer, and expend funds available 4.6 under the TANF block grant authorized under title I of Public 4.7 Law Number 104-193, the Personal Responsibility and Work 4.8 Opportunity Reconciliation Act of 1996. 4.9 Subd. 2. [USE OF MONEY.] State money appropriated for 4.10 purposes of this section and TANF block grant money must be used 4.11 for: 4.12 (1) financial assistance to or on behalf of any minor child 4.13 who is a resident of this state under section 256J.12; 4.14 (2) employment and training services under this chapter or 4.15 chapter 256K; 4.16 (3) emergency financial assistance and services under 4.17 section 256J.48; 4.18 (4) diversionary assistance under section 256J.47; and 4.19 (5) program administration under this chapter. 4.20 Subd. 3. [CARRY FORWARD OF FEDERAL MONEY.] Temporary 4.21 assistance for needy families block grant money must be 4.22 appropriated for the purposes in this section and is available 4.23 until expended. 4.24 Subd. 4. [AUTHORITY TO TRANSFER.] Subject to limitations 4.25 of title I of Public Law Number 104-193, the Personal 4.26 Responsibility and Work Opportunity Reconciliation Act of 1996, 4.27 the legislature may transfer money from the TANF block grant to 4.28 the child care fund under section 119B.02, or the Title XX block 4.29 grant under section 256E.07. 4.30 Subd. 5. [INDIRECT COST LIABILITY.] Notwithstanding the 4.31 provisions of section 16A.127, the statewide and agency indirect 4.32 cost liability identified as part of the TANF grant for any 4.33 current fiscal year shall be limited to no more than the amount 4.34 received in fiscal year 1996. 4.35 Sec. 3. [256J.06] [COMMUNITY INVOLVEMENT.] 4.36 The MFIP-S program must be administered in a way that, in 5.1 addition to the county agency, other sectors in the community 5.2 such as employers from the public and private sectors, 5.3 not-for-profit organizations, educational and social service 5.4 agencies, labor unions, and neighborhood associations are 5.5 involved. 5.6 Sec. 4. [256J.08] [DEFINITIONS.] 5.7 Subdivision 1. [SCOPE OF DEFINITIONS.] The terms used in 5.8 this chapter have the following meanings unless otherwise 5.9 provided for by text. 5.10 Subd. 2. [ABSENT PARENT.] "Absent parent" means a minor 5.11 child's parent who does not live in the same home as the child. 5.12 Subd. 3. [AGENCY ERROR.] "Agency error" means an error 5.13 that results in an overpayment or underpayment to an assistance 5.14 unit and is not caused by an applicant's or participant's 5.15 failure to provide adequate, correct, or timely information 5.16 about income, property, household composition, or other 5.17 circumstances. 5.18 Subd. 4. [APPEAL.] "Appeal" means a written statement from 5.19 an applicant or participant who requests a hearing under section 5.20 256J.31. 5.21 Subd. 5. [APPLICANT.] "Applicant" means a person who has 5.22 submitted to a county agency an application and whose 5.23 application has not been acted upon, denied, or voluntarily 5.24 withdrawn. 5.25 Subd. 6. [APPLICATION.] "Application" means the submission 5.26 by or on behalf of a family to a county agency of a completed, 5.27 signed, and dated form, prescribed by the commissioner, that 5.28 indicates the desire to receive assistance. 5.29 Subd. 7. [ASSISTANCE UNIT OR MFIP-S ASSISTANCE 5.30 UNIT.] "Assistance unit" or "MFIP-S assistance unit" means a 5.31 group of mandatory or optional people receiving or applying for 5.32 MFIP-S benefits together. 5.33 Subd. 8. [AUTHORIZED REPRESENTATIVE.] "Authorized 5.34 representative" means a person who is authorized, in writing, by 5.35 an applicant or participant to act on the applicant's or 5.36 participant's behalf in matters involving the application for 6.1 assistance or participation in MFIP-S. 6.2 Subd. 9. [BASIC NEEDS.] "Basic needs" means the minimum 6.3 personal requirements of subsistence and is restricted to food, 6.4 clothing, shelter, utilities, and other items for which the 6.5 loss, or lack of basic needs, is determined by the county agency 6.6 to pose a direct, immediate threat to the physical health or 6.7 safety of the applicant or participant. 6.8 Subd. 10. [BUDGET MONTH.] "Budget month" means the 6.9 calendar month which the county agency uses to determine the 6.10 income or circumstances of an assistance unit to calculate the 6.11 amount of the assistance payment in the payment month. 6.12 Subd. 11. [CAREGIVER.] "Caregiver" means a minor child's 6.13 natural or adoptive parent or parents who live in the home with 6.14 the minor child. For purposes of determining eligibility for 6.15 this program, caregiver also means any of the following 6.16 individuals, if adults, who live with and provide care and 6.17 support to a minor child when the minor child's natural or 6.18 adoptive parent or parents do not reside in the same home: 6.19 legal custodians, grandfather, grandmother, brother, sister, 6.20 stepfather, stepmother, stepbrother, stepsister, uncle, aunt, 6.21 first cousin, nephew, niece, person of preceding generation as 6.22 denoted by prefixes of "great," "great-great," or 6.23 "great-great-great," or a spouse of any person named in the 6.24 above groups even after the marriage ends by death or divorce. 6.25 Subd. 12. [CLIENT ERROR.] "Client error" means an error 6.26 that results in an overpayment or underpayment and is due to an 6.27 applicant's or participant's failure to provide adequate, 6.28 correct, or timely information concerning income, property, 6.29 household composition, or other circumstances. 6.30 Subd. 13. [COMMISSIONER.] "Commissioner" means the 6.31 commissioner of human services or the commissioner's designated 6.32 representative. 6.33 Subd. 14. [CORRECTIVE PAYMENT.] "Corrective payment" means 6.34 an assistance payment that is made to correct an underpayment. 6.35 Subd. 15. [COUNTABLE INCOME.] "Countable income" means 6.36 earned and unearned income that is not excluded under section 7.1 256J.21, subdivision 2, or disregarded under section 256J.21, 7.2 subdivision 3. 7.3 Subd. 16. [COUNTED EARNINGS.] "Counted earnings" means the 7.4 earned income that remains after applicable disregards under 7.5 section 256J.21, subdivision 4, have been subtracted from gross 7.6 earned income. 7.7 Subd. 17. [COUNTY AGENCY.] "County agency" means the 7.8 agency designated by the county board to implement financial 7.9 assistance for current programs and for MFIP-S and the agency 7.10 responsible for enforcement of child support collection, and a 7.11 county or multicounty agency that is authorized under sections 7.12 393.01, subdivision 7, and 393.07, subdivision 2, to administer 7.13 MFIP-S. 7.14 Subd. 18. [COUNTY BOARD.] "County board" means a board of 7.15 commissioners, a local services agency as defined in chapter 7.16 393, a board established under Joint Powers Act, section 471.59, 7.17 or a human services board under chapter 402. 7.18 Subd. 19. [COUNTY OF FINANCIAL RESPONSIBILITY.] "County of 7.19 financial responsibility" means the county that has financial 7.20 responsibility for providing public assistance as specified in 7.21 chapter 256G. 7.22 Subd. 20. [COUNTY OF RESIDENCE.] "County of residence" 7.23 means the county where the caregiver has established a home. 7.24 Subd. 21. [DATE OF APPLICATION.] "Date of application" 7.25 means the date on which the county agency receives an 7.26 applicant's signed application. 7.27 Subd. 22. [DEEM.] "Deem" means to treat all or part of the 7.28 income of an individual who is not in the assistance unit, but 7.29 who is financially responsible for members of the assistance 7.30 unit, as if it were income available to the assistance unit. 7.31 Subd. 23. [DEPARTMENT.] "Department" means the Minnesota 7.32 department of human services. 7.33 Subd. 24. [DISREGARD.] "Disregard" means earned income 7.34 that is not counted when determining initial eligibility or 7.35 ongoing eligibility and calculating the amount of the assistance 7.36 payment for participants. 8.1 Subd. 25. [DOCUMENTATION.] "Documentation" means a written 8.2 statement or record that substantiates or validates an assertion 8.3 made by a person or an action taken by a person, agency, or 8.4 entity. 8.5 Subd. 26. [EARNED INCOME.] "Earned income" means cash or 8.6 in-kind income earned through the receipt of wages, salary, 8.7 commissions, profit from employment activities, net profit from 8.8 self-employment activities, payments made by an employer for 8.9 regularly accrued vacation or sick leave, and any other profit 8.10 from activity earned through effort or labor. 8.11 Subd. 27. [EARNED INCOME TAX CREDIT.] "Earned income tax 8.12 credit" means the payment which can be obtained by a qualified 8.13 person from an employer or from the Internal Revenue Service as 8.14 provided by section 290.0671 and United States Code, title 26, 8.15 subtitle A, chapter 1, subchapter A, part 4, subpart C, section 8.16 32. 8.17 Subd. 28. [EMERGENCY.] "Emergency" means a situation or a 8.18 set of circumstances that causes or threatens to cause 8.19 destitution to a minor child. 8.20 Subd. 29. [EQUITY VALUE.] "Equity value" means the amount 8.21 of equity in real or personal property owned by a person and is 8.22 determined by subtracting any outstanding encumbrances from the 8.23 fair market value. 8.24 Subd. 30. [EXCLUDED TIME.] "Excluded time" has the meaning 8.25 given in section 256G.02. 8.26 Subd. 31. [EXPEDITED ISSUANCE OF THE FOOD STAMP 8.27 PORTION.] "Expedited issuance of the food stamp portion" means 8.28 the issuance of the food stamp portion to eligible assistance 8.29 units on the day of application as provided in section 393.07, 8.30 subdivision 10a. 8.31 Subd. 32. [FAIR HEARING OR HEARING.] "Fair hearing" or 8.32 "hearing" means the evidentiary hearing conducted by the 8.33 department appeals referee to resolve disputes as specified in 8.34 sections 256.045 and 256J.40. 8.35 Subd. 33. [FAIR MARKET VALUE.] "Fair market value" means 8.36 the price that an item of a particular make, model, size, 9.1 material, or condition would sell for on the open market in the 9.2 particular geographic area. 9.3 Subd. 34. [FAMILY.] "Family" includes: 9.4 (1) the following individuals who live together: a minor 9.5 child or a group of minor children related to each other as 9.6 siblings, half siblings, stepsiblings, or adoptive siblings, 9.7 together with their natural, adoptive parents, stepparents, or 9.8 caregiver as defined in subdivision 11; and 9.9 (2) a pregnant woman with no other children. 9.10 Subd. 35. [FAMILY WAGE LEVEL.] "Family wage level" means 9.11 109 percent of the transitional standard. 9.12 Subd. 36. [FEDERAL INSURANCE CONTRIBUTION ACT OR 9.13 FICA.] "Federal Insurance Contribution Act" or "FICA" means the 9.14 federal law under United States Code, title 26, subtitle C, 9.15 chapter 21, subchapter A, sections 3101 to 3126, that requires 9.16 withholding or direct payment from earned income. 9.17 Subd. 37. [FINANCIAL CASE RECORD.] "Financial case record" 9.18 means an assistance unit's financial eligibility file. 9.19 Subd. 38. [FULL-TIME STUDENT.] "Full-time student" means a 9.20 person who is enrolled in a graded or ungraded primary, 9.21 intermediate, secondary, GED preparatory, trade, technical, 9.22 vocational, or post-secondary school, and who meets the school's 9.23 standard for full-time attendance. 9.24 Subd. 39. [GENERAL EDUCATIONAL DEVELOPMENT OR 9.25 GED.] "General educational development" or "GED" means the 9.26 general educational development certification issued by the 9.27 Minnesota board of education as an equivalent to a secondary 9.28 school diploma under Minnesota Rules, part 3500.3100, subpart 4. 9.29 Subd. 40. [GROSS EARNED INCOME.] "Gross earned income" 9.30 means earned income from employment before mandatory and 9.31 voluntary payroll deductions. Gross earned income includes 9.32 salaries, wages, tips, gratuities, commissions, incentive 9.33 payments from work or training programs, payments made by an 9.34 employer for regularly accrued vacation or sick leave, and 9.35 profits from other activity earned by an individual's effort or 9.36 labor. Gross earned income includes uniform and meal allowances 10.1 if federal income tax is deducted from the allowance. Gross 10.2 earned income includes flexible work benefits received from an 10.3 employer if the employee has the option of receiving the benefit 10.4 or benefits in cash. 10.5 Subd. 41. [GROSS INCOME.] "Gross income" is the sum of 10.6 gross earned income and unearned income. 10.7 Subd. 42. [GROSS RECEIPTS.] "Gross receipts" means the 10.8 money received by a business before the expenses of the business 10.9 are deducted. 10.10 Subd. 43. [HALF-TIME STUDENT.] "Half-time student" means a 10.11 person who is enrolled in a graded or ungraded primary, 10.12 intermediate, secondary, GED preparatory, trade, technical, 10.13 vocational, or post-secondary school, and who meets the school's 10.14 standard of half-time attendance. 10.15 Subd. 44. [HOME.] "Home" means the primary place of 10.16 residence used by a person as the base for day-to-day living and 10.17 does not include locations used as mail drops. 10.18 Subd. 45. [HOMESTEAD.] "Homestead" means the home that is 10.19 owned by, and is the usual residence of, the assistance unit 10.20 together with the surrounding property which is not separated 10.21 from the home by intervening property owned by others. Public 10.22 rights-of-way, such as roads which run through the surrounding 10.23 property and separate it from the home, do not affect the 10.24 exemption of the property. Homestead includes an asset that is 10.25 not real property that the assistance unit uses as a home, such 10.26 as a vehicle. 10.27 Subd. 46. [HOUSEHOLD.] "Household" means a group of 10.28 persons who live together. 10.29 Subd. 47. [INCOME.] "Income" means cash or in-kind 10.30 benefit, whether earned or unearned, received by or available to 10.31 an applicant or participant that is not an asset under section 10.32 256J.20. 10.33 Subd. 48. [INITIAL ELIGIBILITY.] "Initial eligibility" 10.34 means the determination of eligibility for an MFIP-S applicant. 10.35 Subd. 49. [IN-KIND INCOME.] "In-kind income" means income, 10.36 benefits, or payments which are provided in a form other than 11.1 money or liquid assets, including the forms of goods, produce, 11.2 services, privileges, or payments made on behalf of an applicant 11.3 or participant by a third party. 11.4 Subd. 50. [INQUIRY.] "Inquiry" means a communication to a 11.5 county agency through mail, telephone, or in person, by which a 11.6 person or authorized representative requests information about 11.7 public assistance. The county agency shall also treat as an 11.8 inquiry any communication in which a person requesting 11.9 assistance offers information about the person's family 11.10 circumstances that indicates that eligibility for public 11.11 assistance may exist. 11.12 Subd. 51. [LEGALLY AVAILABLE.] "Legally available" means a 11.13 person's right under the law to secure, possess, dispose of, or 11.14 control income or property. 11.15 Subd. 52. [LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM OR 11.16 LIHEAP.] "Low-income home energy assistance program" or "LIHEAP" 11.17 means the program authorized under United States Code, title 42, 11.18 chapter 94, subchapter II, sections 8621 to 8629, and 11.19 administered by the Minnesota department of economic security. 11.20 Subd. 53. [LUMP SUM.] "Lump sum" means nonrecurring income 11.21 that is not excluded in section 256J.21. 11.22 Subd. 54. [MEDICAL ASSISTANCE.] "Medical Assistance" means 11.23 the program established under chapter 256B and Title XIX of the 11.24 Social Security Act. 11.25 Subd. 55. [MFIP-S HOUSEHOLD REPORT FORM.] "MFIP-S 11.26 household report form" means a form prescribed by the 11.27 commissioner that a participant uses to report information to a 11.28 county agency about changes in income and other circumstances. 11.29 Subd. 56. [MIGRANT WORKER.] "Migrant worker" means a 11.30 person who travels away from home on a regular basis, usually 11.31 with a group of other laborers, to seek employment in an 11.32 agriculturally related activity. 11.33 Subd. 57. [MINNESOTA FAMILY INVESTMENT PROGRAM-STATEWIDE 11.34 OR MFIP-S.] "Minnesota family investment program-statewide" or 11.35 "MFIP-S" means the assistance program authorized in this chapter 11.36 and chapter 256K. 12.1 Subd. 58. [MINNESOTA SUPPLEMENTAL AID OR MSA.] "Minnesota 12.2 supplemental aid" or "MSA" means the program established under 12.3 sections 256D.33 to 256D.54. 12.4 Subd. 59. [MINOR CAREGIVER.] "Minor caregiver" means a 12.5 person who: 12.6 (1) is under the age of 18; 12.7 (2) has never been married or otherwise legally 12.8 emancipated; and 12.9 (3) is either the natural parent of a minor child living in 12.10 the same household or is eligible for assistance paid to a 12.11 pregnant woman. 12.12 Subd. 60. [MINOR CHILD.] "Minor child" means a child who 12.13 is living in the same home of a parent or other caregiver, is 12.14 either less than 18 years of age or is under the age of 19 years 12.15 and is regularly attending as a full-time student and is 12.16 expected to complete a high school or a secondary level course 12.17 of vocational or technical training designed to fit students for 12.18 gainful employment before reaching age 19. 12.19 Subd. 61. [MONTHLY INCOME TEST.] "Monthly income test" 12.20 means the test used to determine ongoing eligibility and the 12.21 assistance payment amount according to section 256J.21. 12.22 Subd. 62. [NONRECURRING INCOME.] "Nonrecurring income" 12.23 means a form of income which is received: 12.24 (1) only one time or is not of a continuous nature; or 12.25 (2) in a prospective payment month but is no longer 12.26 received in the corresponding retrospective payment month. 12.27 Subd. 63. [OVERPAYMENT.] "Overpayment" means the portion 12.28 of an assistance payment issued by the county agency that is 12.29 greater than the amount for which the assistance unit is 12.30 eligible. 12.31 Subd. 64. [PARENT.] "Parent" means a child's biological or 12.32 adoptive parent who is legally obligated to support that child. 12.33 Subd. 65. [PARTICIPANT.] "Participant" means a person who 12.34 is currently receiving cash assistance and the food portion 12.35 available through MFIP-S as funded by TANF and the Food Stamp 12.36 program. A person who fails to withdraw or access 13.1 electronically any portion of his or her cash assistance payment 13.2 by the end of the payment month or who returns any uncashed 13.3 assistance check and withdraws from the program is not a 13.4 participant. A person who withdraws a cash assistance payment 13.5 by electronic transfer or receives and cashes a cash assistance 13.6 check and is subsequently determined to be ineligible for 13.7 assistance for that period of time is a participant, regardless 13.8 of whether that assistance is repaid. The term "participant" 13.9 includes the caregiver relative and the minor child whose needs 13.10 are included in the assistance payment. A person in an 13.11 assistance unit who does not receive a cash assistance payment 13.12 because he or she has been suspended from MFIP-S or because his 13.13 or her need falls below the $10 minimum payment level is a 13.14 participant. 13.15 Subd. 66. [PAYEE.] "Payee" means a person to whom an 13.16 assistance payment is made payable. 13.17 Subd. 67. [PAYMENT MONTH.] "Payment month" means the 13.18 calendar month for which the assistance payment is paid. 13.19 Subd. 68. [PERSONAL PROPERTY.] "Personal property" means 13.20 an item of value that is not real property, including the value 13.21 of a contract for deed held by a seller, assets held in trust on 13.22 behalf of members of an assistance unit, cash surrender value of 13.23 life insurance, value of a prepaid burial, savings account, 13.24 value of stocks and bonds, and value of retirement accounts. 13.25 Subd. 69. [PROBABLE FRAUD.] "Probable fraud" means the 13.26 level of evidence that, if proven as fact, would establish that 13.27 assistance has been wrongfully obtained. 13.28 Subd. 70. [PROFESSIONAL CERTIFICATION.] "Professional 13.29 certification" means: 13.30 (1) a statement about a person's illness, injury, or 13.31 incapacity that is signed by a licensed physician, psychological 13.32 practitioner, or licensed psychologist, qualified by 13.33 professional training and experience to diagnose and certify the 13.34 person's condition; or 13.35 (2) a statement about an incapacity involving a spinal 13.36 subluxation condition that is signed by a licensed chiropractor 14.1 qualified by professional training and experience to diagnose 14.2 and certify the condition. 14.3 Subd. 71. [PROSPECTIVE BUDGETING.] "Prospective budgeting" 14.4 means a method of determining the amount of the assistance 14.5 payment in which the budget month and payment month are the same. 14.6 Subd. 72. [PROTECTIVE PAYEE.] "Protective payee" means a 14.7 person other than the caregiver of an assistance unit who 14.8 receives the monthly assistance payment on behalf of an 14.9 assistance unit and is responsible to provide for the basic 14.10 needs of the assistance unit to the extent of that payment. 14.11 Subd. 73. [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 14.12 means a person: 14.13 (1) who was lawfully admitted for permanent residence 14.14 pursuant to United States Code, title 8; 14.15 (2) who was admitted to the United States as a refugee 14.16 pursuant to United States Code, title 8; section 1157; 14.17 (3) whose deportation is being withheld pursuant to United 14.18 States Code, title 8, section 1253(h); 14.19 (4) who was paroled for a period of at least one year 14.20 pursuant to United States Code, title 8, section 1182(d)(5); 14.21 (5) who was granted conditional entry pursuant to United 14.22 State Code, title 8, section 1153(a)(7); 14.23 (6) who was granted asylum pursuant to United States Code, 14.24 title 8, section 1158; or 14.25 (7) determined to be a battered noncitizen by the United 14.26 States Attorney General according to the Illegal Immigration 14.27 Reform and Immigrant Responsibility Act of 1996, Title V of the 14.28 Omnibus Consolidated Appropriations Act, Public Law Number 14.29 104-200. 14.30 Subd. 74. [REAL PROPERTY.] "Real property" means land and 14.31 all buildings, structures, and improvements, or other fixtures 14.32 on the land, belonging or appertaining to the land, and all 14.33 mines, minerals, fossils, and trees on or under the land. 14.34 Subd. 75. [REASONABLE COMPENSATION.] "Reasonable 14.35 compensation" means the value received in exchange for property 14.36 transferred to another owner that is consistent with fair market 15.1 value and equals or exceeds the seller's equity in the property, 15.2 reduced by costs incurred in the sale. 15.3 Subd. 76. [RECERTIFICATION.] "Recertification" means the 15.4 periodic review of eligibility factors to determine an 15.5 assistance unit's continued eligibility. 15.6 Subd. 77. [RECOUPMENT.] "Recoupment" means the action of 15.7 the county agency to reduce a family's monthly assistance 15.8 payment to recover overpayments caused by client or agency error 15.9 and overpayments received while an appeal is pending. 15.10 Subd. 78. [RECOVERY.] "Recovery" means actions taken by a 15.11 county agency to reclaim the value of overpayments through 15.12 voluntary repayment, recoupment from the assistance payment, 15.13 court action, revenue recapture, or federal tax refund offset 15.14 program (FRTOP). 15.15 Subd. 79. [RECURRING INCOME.] "Recurring income" means a 15.16 form of income which is: 15.17 (1) received periodically, and may be received irregularly 15.18 when receipt can be anticipated even though the date of receipt 15.19 cannot be predicted; and 15.20 (2) from the same source or of the same type that is 15.21 received and budgeted in a prospective month and is received in 15.22 one or both of the first two retrospective months. 15.23 Subd. 80. [REEMPLOYMENT INSURANCE.] "Reemployment 15.24 insurance" means the insurance benefit paid to an unemployed 15.25 worker under sections 268.03 to 268.23. 15.26 Subd. 81. [RETROSPECTIVE BUDGETING.] "Retrospective 15.27 budgeting" means a method of determining the amount of the 15.28 assistance payment in which the payment month is the second 15.29 month after the budget month. 15.30 Subd. 82. [SANCTION.] "Sanction" means the reduction of a 15.31 family's assistance payment by a specified percentage of the 15.32 applicable transitional standard because: a nonexempt 15.33 participant fails to comply with the requirements of sections 15.34 256J.52 to 256J.55; a parental caregiver fails without good 15.35 cause to cooperate with the child support enforcement 15.36 requirements; or a participant fails to comply with the 16.1 insurance, tort liability, or other requirements of this chapter. 16.2 Subd. 83. [SIGNIFICANT CHANGE.] "Significant change" means 16.3 a decline in gross income of 35 percent or more from the income 16.4 used to determine the grant for the current month. 16.5 Subd. 84. [SUPPLEMENTAL SECURITY INCOME OR 16.6 SSI.] "Supplemental Security Income" or "SSI" means the program 16.7 authorized under title XVI of the Social Security Act. 16.8 Subd. 85. [TRANSITIONAL STANDARD.] "Transitional standard" 16.9 means the basic standard for a family with no other income or a 16.10 nonworking family and is a combination of the cash assistance 16.11 needs and food assistance needs for a family of that size. 16.12 Subd. 86. [UNEARNED INCOME.] "Unearned income" means 16.13 income received by a person that does not meet the definition of 16.14 earned income. Unearned income includes income from a contract 16.15 for deed, interest, dividends, reemployment insurance, 16.16 disability insurance payments, veterans benefits, pension 16.17 payments, return on capital investment, insurance payments or 16.18 settlements, severance payments, and payments for illness or 16.19 disability whether the premium payments are made in whole or in 16.20 part by an employer or participant. 16.21 Subd. 87. [VENDOR.] "Vendor" means a provider of goods or 16.22 services. 16.23 Subd. 88. [VENDOR PAYMENT.] "Vendor payment" means a 16.24 payment authorized by a county agency to a vendor. 16.25 Subd. 89. [VERIFICATION.] "Verification" means the process 16.26 a county agency uses to establish the accuracy or completeness 16.27 of information from an applicant, participant, third party, or 16.28 other source as that information relates to program eligibility 16.29 or an assistance payment. 16.30 Subd. 90. [DEFINITIONS; EFFECTIVE DATE.] Subdivisions 1 to 16.31 89 are effective January 1, 1998, except the transitional 16.32 provision in section 72 applies. 16.33 Sec. 5. [256J.09] [APPLYING FOR ASSISTANCE.] 16.34 Subdivision 1. [WHERE TO APPLY.] A person must apply for 16.35 assistance at the county agency in the county where that person 16.36 lives. 17.1 Subd. 2. [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 17.2 INFORMATION.] A county agency must inform a person who inquires 17.3 about assistance about eligibility requirements for assistance 17.4 and how to apply for assistance, including diversionary 17.5 assistance and emergency assistance. A county agency must offer 17.6 the person brochures developed or approved by the commissioner 17.7 that describe how to apply for assistance. 17.8 Subd. 3. [SUBMITTING THE APPLICATION FORM.] A county 17.9 agency must offer, in person or by mail, the application forms 17.10 prescribed by the commissioner as soon as a person makes a 17.11 written or oral inquiry. At that time, the county agency must 17.12 inform the person that assistance begins with the date the 17.13 signed application is received by the county agency or the date 17.14 all eligibility criteria are met, whichever is later. The 17.15 county agency must inform the applicant that any delay in 17.16 submitting the application will reduce the amount of assistance 17.17 paid for the month of application. A county agency must inform 17.18 a person that the person may submit the application before an 17.19 interview appointment. To apply for assistance, a person must 17.20 submit a signed application to the county agency. Upon receipt 17.21 of a signed application, the county agency must stamp the date 17.22 of receipt on the face of the application. The county agency 17.23 must process the application within the time period required 17.24 under subdivision 5. An applicant may withdraw the application 17.25 at any time by giving written or oral notice to the county 17.26 agency. The county agency must issue a written notice 17.27 confirming the withdrawal. The notice must inform the applicant 17.28 of the county agency's understanding that the applicant has 17.29 withdrawn the application and no longer wants to pursue it. 17.30 When, within ten days of the date of the agency's notice, an 17.31 applicant informs a county agency, in writing, that the 17.32 applicant does not wish to withdraw the application, the county 17.33 agency must reinstate the application and finish processing the 17.34 application. 17.35 Subd. 4. [VERIFICATION OF INFORMATION ON APPLICATION.] A 17.36 county agency must verify information provided by an applicant 18.1 as required in section 256J.32. 18.2 Subd. 5. [PROCESSING APPLICATIONS.] Upon receiving an 18.3 application, a county agency must determine the applicant's 18.4 eligibility, approve or deny the application, inform the 18.5 applicant of its decision according to the notice provisions in 18.6 section 256J.31, and, if eligible issue, the assistance payment 18.7 to the applicant. When a county agency is unable to process an 18.8 application within 30 days, the county agency must inform the 18.9 applicant of the reason for the delay in writing. When an 18.10 applicant establishes the inability to provide required 18.11 verifications within the 30-day processing period, the county 18.12 agency may not use the expiration of that period as the basis 18.13 for denial. 18.14 Subd. 6. [INVALID REASON FOR DELAY.] A county agency must 18.15 not delay a decision on eligibility or delay issuing the 18.16 assistance payment except to establish state residence by: 18.17 (1) treating the 30-day processing period as a waiting 18.18 period; 18.19 (2) delaying approval or issuance of the assistance payment 18.20 pending the decision of the county board; or 18.21 (3) awaiting the result of a referral to a county agency in 18.22 another county when the county receiving the application does 18.23 not believe it is the county of financial responsibility. 18.24 Subd. 7. [CHANGES IN RESIDENCE DURING APPLICATION.] The 18.25 requirements in subdivisions 5 and 6 apply without regard to the 18.26 length of time that an applicant remains, or intends to remain, 18.27 a resident of the county in which the application is made. When 18.28 an applicant leaves the county where application was made but 18.29 remains in the state, section 256J.75 applies and the county 18.30 agency may request additional information from the applicant 18.31 about changes in circumstances related to the move. 18.32 Subd. 8. [ADDITIONAL APPLICATIONS.] Until a county agency 18.33 issues notice of approval or denial, additional applications 18.34 submitted by an applicant are void. However, an application for 18.35 monthly assistance and an application for emergency assistance 18.36 or emergency general assistance may exist concurrently. More 19.1 than one application for monthly assistance, emergency 19.2 assistance, or emergency general assistance may exist 19.3 concurrently when the county agency decisions on one or more 19.4 earlier applications have been appealed to the commissioner, and 19.5 the applicant asserts that a change in circumstances has 19.6 occurred that would allow eligibility. A county agency must 19.7 require additional application forms or supplemental forms as 19.8 prescribed by the commissioner when a payee's name changes, or 19.9 when a caregiver requests the addition of another person to the 19.10 assistance unit. 19.11 Subd. 9. [ADDENDUM TO AN EXISTING APPLICATION.] An 19.12 addendum to an existing application must be used to add persons 19.13 to an assistance unit regardless of whether the persons being 19.14 added are required to be in the assistance unit. When a person 19.15 is added by addendum to an assistance unit, eligibility for that 19.16 person begins on the first of the month the addendum was filed 19.17 except as provided in section 256J.74, subdivision 2, clause (1). 19.18 Subd. 10. [APPLICANTS WHO DO NOT MEET ELIGIBILITY 19.19 REQUIREMENTS FOR MFIP-S.] When an applicant is not eligible for 19.20 MFIP-S because the applicant does not meet eligibility 19.21 requirements, the county agency must determine whether the 19.22 applicant is eligible for food stamps, Medical Assistance, 19.23 diversionary assistance, or has a need for emergency assistance 19.24 when the applicant meets the eligibility requirements for those 19.25 programs. 19.26 Section 5 is effective January 1, 1998, except the 19.27 transitional provision in section 72 applies. 19.28 ELIGIBILITY FOR MFIP 19.29 Sec. 6. [256J.10] [MFIP-S ELIGIBILITY REQUIREMENTS.] 19.30 To be eligible for MFIP-S, applicants must meet the general 19.31 eligibility requirements in sections 256J.11 to 256J.15, the 19.32 property limitations in section 256J.20, and the income 19.33 limitations in section 256J.21. 19.34 Section 6 is effective January 1, 1998, except the 19.35 transitional provision in section 72 applies. 19.36 Sec. 7. [256J.11] [CITIZENSHIP.] 20.1 Subdivision 1. [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To 20.2 be eligible for AFDC or MFIP-S, a member of the assistance unit 20.3 must be a citizen of the United States, a qualified noncitizen 20.4 as defined in section 256J.08, or a noncitizen who is otherwise 20.5 residing lawfully in the United States. 20.6 (b) A qualified noncitizen who entered the United States on 20.7 or after August 22, 1996, is eligible for MFIP-S. However, TANF 20.8 dollars cannot be used to fund the MFIP-S benefits for an 20.9 individual under this paragraph for a period of five years after 20.10 the date of entry unless the qualified noncitizen meets one of 20.11 the following criteria: 20.12 (1) was admitted to the United States as a refugee under 20.13 United States Code, title 8, section 1157; 20.14 (2) was granted asylum under United States Code, title 8, 20.15 section 1158; 20.16 (3) was granted withholding of deportation under the United 20.17 States Code, title 8, section 1253(h); 20.18 (4) is a veteran of the United States Armed Forces with an 20.19 honorable discharge for a reason other than noncitizen status, 20.20 or is a spouse or unmarried minor dependent child of the same; 20.21 or 20.22 (5) is an individual on active duty in the United States 20.23 Armed Forces, other than for training, or is a spouse or 20.24 unmarried minor dependent child of the same. 20.25 (c) A person who is not a qualified noncitizen but who is 20.26 otherwise residing lawfully in the United States is eligible for 20.27 MFIP-S. However, TANF dollars cannot be used to fund the MFIP-S 20.28 benefits for an individual under this paragraph. 20.29 (d) For purposes of this subdivision, a nonimmigrant in one 20.30 or more of the classes listed in United States Code, title 8, 20.31 section 1101(a)(15), or an undocumented immigrant who resides in 20.32 the United States without the approval or acquiescence of the 20.33 Immigration and Naturalization Service, is not eligible for 20.34 MFIP-S. 20.35 Subd. 2. [NONCITIZENS INELIGIBLE FOR MFIP-S FOOD PORTION.] 20.36 Noncitizens who do not meet one of the exemptions in section 412 21.1 of the Personal Responsibility and Work Opportunity 21.2 Reconciliation Act of 1996 are eligible for the food portion of 21.3 MFIP-S. However, federal food stamp dollars cannot be used to 21.4 fund the food portion of MFIP-S benefits for an individual under 21.5 this subdivision. 21.6 Sec. 8. [256J.12] [MINNESOTA RESIDENCE.] 21.7 Subdivision 1. [RESIDENCY.] To be eligible for AFDC or 21.8 MFIP-S, a family must have established residency in this state. 21.9 A family is considered to have established residency in this 21.10 state when a child or caregiver has resided in this state for at 21.11 least 30 days with the intention of making a permanent home here 21.12 and not for any temporary purpose. Notwithstanding section 21.13 256G.03, time spent in a shelter for battered women shall count 21.14 toward satisfying the 30 day residency requirement. 21.15 Subd. 2. [HARDSHIP EXCEPTION.] (a) A county shall waive 21.16 the 30-day residency requirement where unusual hardship would 21.17 result from denial of assistance. 21.18 (b) For purposes of this section, unusual hardship means a 21.19 family: 21.20 (1) is without alternative shelter; or 21.21 (2) is without available resources for food. 21.22 (c) For purposes of this subdivision, the following 21.23 definitions apply (1) "metropolitan statistical area" is as 21.24 defined by the U.S. Census Bureau; (2) "alternative shelter" 21.25 includes any shelter that is located within the metropolitan 21.26 statistical area containing the county and for which the family 21.27 is eligible, provided the family does not have to travel more 21.28 than 20 miles to reach the shelter and has access to 21.29 transportation to the shelter. Clause (2) does not apply to 21.30 counties in the Minneapolis-St. Paul metropolitan statistical 21.31 area. 21.32 Subd. 3. [PAYMENT PLAN FOR NEW RESIDENTS.] Assistance paid 21.33 to an eligible family in which all members have resided in this 21.34 state for fewer than 12 calendar months shall be at the standard 21.35 and in the form specified in section 256J.43. 21.36 Sec. 9. [256J.13] [MINOR CHILD IN ASSISTANCE UNIT; 22.1 PHYSICAL PRESENCE.] 22.2 Subdivision 1. [MINOR CHILD OR PREGNANT WOMAN.] The 22.3 assistance unit must include at least one minor child or a 22.4 pregnant woman. If a minor child is a recipient of Supplemental 22.5 Security Income or Minnesota supplemental aid, the assistance 22.6 unit is eligible for MFIP-S, but the needs of the minor child 22.7 receiving Supplemental Security Income or Minnesota supplemental 22.8 aid must not be taken into account when the county agency 22.9 determines the amount of assistance to be paid to the assistance 22.10 unit. 22.11 Subd. 2. [PHYSICAL PRESENCE.] A minor child and a 22.12 caregiver must live together except as provided in the following 22.13 paragraphs. 22.14 (a) The physical presence requirement is met when a minor 22.15 child is required to live away from the caregiver's home to meet 22.16 the need for educational curricula that cannot be met by, but is 22.17 approved by, the local public school district, the home is 22.18 maintained for the minor child's return during periodic school 22.19 vacations, and the caregiver continues to maintain 22.20 responsibility for the support and care of the minor child. 22.21 (b) The physical presence requirement is met when a 22.22 caregiver or minor child is away from the home due to illness, 22.23 hospitalization, vacation, incarceration, or other short-term 22.24 absences, when the home is maintained for the return of the 22.25 absent family member, the absence is not expected to last more 22.26 than 30 days beyond the month of departure, and the conditions 22.27 of clause (1), (2), or (3) apply: 22.28 (1) when the minor child and caregiver lived together 22.29 immediately prior to the absence, the caregiver continues to 22.30 maintain responsibility for the support and care of the minor 22.31 child, and the absence is reported at the time of application; 22.32 (2) when the pregnant mother is hospitalized or out of the 22.33 home due to the pregnancy; or 22.34 (3) when the newborn child and mother are hospitalized at 22.35 the time of birth. 22.36 (c) The absence of a caregiver or minor child does not 23.1 affect eligibility for the month of departure when the caregiver 23.2 or minor child received assistance for that month and lived 23.3 together immediately prior to the absence. Eligibility also 23.4 exists in the following month when the absence ends on or before 23.5 the tenth day of that month. 23.6 Section 9 is effective January 1, 1998, except the 23.7 transitional provision in section 72 applies. 23.8 Sec. 10. [256J.14] [ELIGIBILITY FOR PARENTING OR PREGNANT 23.9 MINORS.] 23.10 Subdivision 1. [DEFINITIONS.] The definitions in this 23.11 subdivision only apply to this section. 23.12 (a) "Household of a parent, legal guardian, or other adult 23.13 relative" means the place of residence of: 23.14 (i) a natural or adoptive parent; 23.15 (ii) a legal guardian according to appointment or 23.16 acceptance under section 260.242, 525.615, or 525.6165, and 23.17 related laws; or 23.18 (iii) a relative caregiver. 23.19 (b) "Adult-supervised supportive living arrangement" means 23.20 a private family setting which assumes responsibility for the 23.21 care and control of the minor parent and minor child, or other 23.22 living arrangement, not including a public institution, licensed 23.23 by the commissioner of human services which ensures that the 23.24 minor parent receives adult supervision and supportive services, 23.25 such as counseling, guidance, independent living skills 23.26 training, or supervision. 23.27 Subd. 2. [RESTRICTIONS ON PLACE OF RESIDENCE.] A minor 23.28 parent and the minor child who is in the care of the minor 23.29 parent must reside in the household of a parent, legal guardian, 23.30 or other appropriate adult relative, or in an adult-supervised 23.31 supportive living arrangement in order to receive MFIP-S unless: 23.32 (1) the minor parent has no living parent or legal guardian 23.33 or other appropriate adult relative whose whereabouts is known; 23.34 (2) no living parent or legal guardian of the minor parent 23.35 or other appropriate adult relative allows the minor parent to 23.36 live in the parent's or legal guardian's home; 24.1 (3) the minor parent lived apart from the minor parent's 24.2 own parent, legal guardian, or other appropriate adult relative 24.3 for a period of at least one year before either the birth of the 24.4 minor child or the minor parent's application for MFIP-S; or 24.5 (4) the physical or emotional health or safety of the minor 24.6 parent or minor child would be jeopardized if the minor parent 24.7 and the minor child resided in the same residence with the minor 24.8 parent's parent, legal guardian, or other appropriate adult 24.9 relative. 24.10 Subd. 3. [NOTICE TO MINOR APPLICANTS REQUIRED.] Minor 24.11 applicants must be informed orally and in writing about the 24.12 eligibility requirements and their rights and obligations under 24.13 the MFIP-S program. The county must advise the minor of the 24.14 possible exemptions and specifically ask whether one or more of 24.15 these exemptions is applicable. If the minor alleges one or 24.16 more of these exemptions, then the county must assist the minor 24.17 in obtaining the necessary verifications to determine whether or 24.18 not these exemptions apply. 24.19 Subd. 4. [REFERRAL TO CHILD PROTECTION SERVICES.] If the 24.20 county worker has reason to suspect that the physical or 24.21 emotional health or safety of the minor parent or minor child 24.22 would be jeopardized if they resided with the minor parent's 24.23 parent or legal guardian, then the county worker must make a 24.24 referral to child protective services to determine if 24.25 subdivision 2, clause (4), applies. A new determination by the 24.26 county worker is not necessary if one has been made within the 24.27 last six months, unless there has been a significant change in 24.28 circumstances which justifies a new referral and determination. 24.29 Subd. 5. [RESIDENTS IN SUPPORTIVE LIVING ARRANGEMENTS.] If 24.30 a minor parent is not living with a parent or legal guardian due 24.31 to subdivision 2, clause (1), (2), or (4), the minor parent must 24.32 reside, when possible, in a living arrangement that meets the 24.33 definition of an adult-supervised supportive living arrangement. 24.34 Subd. 6. [PROTECTIVE PAYMENT.] When a minor parent and 24.35 minor child live with another adult relative, or in an 24.36 adult-supervised supportive living arrangement, MFIP-S must be 25.1 paid, when possible, in the form of a protective payment on 25.2 behalf of the minor parent and minor child in accordance with 25.3 section 256J.39, subdivisions 2 to 4. 25.4 Section 10 is effective January 1, 1998, except the 25.5 transitional provision in section 72 applies. 25.6 Sec. 11. [256J.15] [OTHER ELIGIBILITY CONDITIONS.] 25.7 Subdivision 1. [ELIGIBILITY WHEN THERE IS SHARED, COURT 25.8 ORDERED, AND OTHER CUSTODY ARRANGEMENTS.] The language of a 25.9 court order that specifies joint legal or physical custody does 25.10 not preclude a determination that a parent is absent. Absence 25.11 must be determined based on the actual facts of the absence 25.12 according to paragraphs (a) to (c). 25.13 (a) When a minor child spends time in each of the parents' 25.14 homes within a payment month, the minor child's home shall be 25.15 considered the home in which the majority of the minor child's 25.16 time is spent. When this time is exactly equal within a payment 25.17 month, or when the parents alternately live in the minor child's 25.18 home within a payment month, the minor child's home shall be 25.19 with that parent who is applying for MFIP, unless the minor 25.20 child's needs for the full payment month have already been met 25.21 through the provision of assistance to the other parent for that 25.22 month. 25.23 (b) When the physical custody of a minor child alternates 25.24 between parents for periods of at least one payment month, each 25.25 parent shall be eligible for assistance for any full payment 25.26 months the minor child's home is with that parent, except under 25.27 the conditions in paragraph (c). 25.28 (c) When a minor child's home is with one parent for the 25.29 majority of time in each month for at least nine consecutive 25.30 calendar months, and that minor child visits or vacations with 25.31 the other parent under section 256J.13, the minor child's home 25.32 remains with the first parent even when the stay with the second 25.33 parent is for all or the majority of the months in the period of 25.34 the temporary absence. 25.35 Subd. 2. [ELIGIBILITY DURING LABOR DISPUTES.] To receive 25.36 assistance under MFIP-S, a member of an assistance unit who is 26.1 on strike must have been an MFIP-S participant on the day before 26.2 the strike, or have been eligible for MFIP-S on the day before 26.3 the strike. 26.4 The county agency must count the striker's prestrike 26.5 earnings as current earnings. When a member of an assistance 26.6 unit who is not in the bargaining unit that voted for the strike 26.7 does not cross the picket line for fear of personal injury, the 26.8 assistance unit member is not a striker. Except for a member of 26.9 an assistance unit who is not in the bargaining unit that voted 26.10 for the strike and who does not cross the picket line for fear 26.11 of personal injury, a significant change cannot be invoked as a 26.12 result of a labor dispute. 26.13 This subdivision is effective January 1, 1998, except the 26.14 transitional provision in section 72 applies. 26.15 Sec. 12. [256J.20] [PROPERTY LIMITATIONS.] 26.16 Subdivision 1. [PROPERTY OWNERSHIP PROVISIONS.] The county 26.17 agency must apply paragraphs (a) to (d) to real and personal 26.18 property. The county agency must use the equity value of 26.19 legally available real and personal property, except property 26.20 excluded in subdivisions 2 and 3, to determine whether an 26.21 applicant or participant is eligible for assistance. 26.22 (a) When real or personal property is jointly owned by two 26.23 or more persons, the county agency shall assume that each person 26.24 owns an equal share, except that either person owns the entire 26.25 sum of a joint personal checking or savings account. When an 26.26 applicant or participant documents greater or lesser ownership, 26.27 the county agency must use that greater or lesser share to 26.28 determine the equity value held by the applicant or 26.29 participant. Other types of ownership must be evaluated 26.30 according to law. 26.31 (b) Real or personal property owned by the applicant or 26.32 participant must be presumed legally available to the applicant 26.33 or participant unless the applicant or participant documents 26.34 that the property is not legally available to the applicant or 26.35 participant. When real or personal property is not legally 26.36 available, its equity value must not be applied against the 27.1 limits of subdivisions 2 and 3. 27.2 (c) An applicant must disclose whether the applicant has 27.3 transferred real or personal property valued in excess of the 27.4 property limits in subdivisions 2 and 3 for which reasonable 27.5 compensation was not received within one year prior to 27.6 application. A participant must disclose all transfers of 27.7 property valued in excess of these limits, according to the 27.8 reporting requirements in section 256J.30, subdivision 9. When 27.9 a transfer of real or personal property without reasonable 27.10 compensation has occurred: 27.11 (1) the person who transferred the property must provide 27.12 the property's description, information needed to determine the 27.13 property's equity value, the names of the persons who received 27.14 the property, and the circumstances of and reasons for the 27.15 transfer; and 27.16 (2) when the transferred property can be reasonably 27.17 reacquired, or when reasonable compensation can be secured, the 27.18 property is presumed legally available to the applicant or 27.19 participant. 27.20 (d) A participant may build the equity value of real and 27.21 personal property to the limits in subdivisions 2 and 3. 27.22 Subd. 2. [REAL PROPERTY LIMITATIONS.] Ownership of real 27.23 property by an applicant or participant is subject to the 27.24 limitations in paragraphs (a) and (b). 27.25 (a) A county agency shall exclude the homestead of an 27.26 applicant or participant according to clauses (1) to (4): 27.27 (1) an applicant or participant who is purchasing real 27.28 property through a contract for deed and using that property as 27.29 a home is considered the owner of real property; 27.30 (2) the total amount of land that can be excluded under 27.31 this subdivision is limited to surrounding property which is not 27.32 separated from the home by intervening property owned by 27.33 others. Additional property must be assessed as to its legal 27.34 and actual availability according to subdivision 1; 27.35 (3) when real property that has been used as a home by a 27.36 participant is sold, the county agency must treat the cash 28.1 proceeds from the sale as excluded property for six months when 28.2 the participant intends to reinvest the proceeds in another home 28.3 and maintains those proceeds, unused for other purposes, in a 28.4 separate account; and 28.5 (4) when the homestead is jointly owned, but the client 28.6 does not reside in it because of legal separation, pending 28.7 divorce; or battering or abuse by the spouse or partner, the 28.8 homestead is excluded. 28.9 (b) The equity value of real property that is not excluded 28.10 under paragraph (a) and which is legally available must be 28.11 applied against the limits in subdivision 3. When the equity 28.12 value of the real property exceeds the limits under subdivision 28.13 3, the applicant or participant may qualify to receive 28.14 assistance when the applicant or participant continues to make a 28.15 good faith effort to sell the property and signs a legally 28.16 binding agreement to repay the amount of assistance, less child 28.17 support collected by the agency. Repayment must be made within 28.18 five working days after the property is sold. Repayment to the 28.19 county agency must be in the amount of assistance received or 28.20 the proceeds of the sale, whichever is less. 28.21 Subd. 3. [OTHER PROPERTY LIMITATIONS.] To be eligible for 28.22 MFIP-S, the equity value of all nonexcluded real and personal 28.23 property of the assistance unit must not exceed $2,000 for 28.24 applicant families and $5,000 for ongoing recipient families. 28.25 The value of clauses (1) to (17) must be excluded when 28.26 determining the equity value of real and personal property: 28.27 (1) for each working member of the assistance unit, a 28.28 licensed automobile, truck, or van each with a fair market value 28.29 no greater than the amount excluded under the food stamp 28.30 program, provided that each assistance unit is allowed to 28.31 exclude at least one vehicle subject to the value limit in this 28.32 clause. The value of special equipment for a handicapped member 28.33 of the assistance unit is excluded. The fair market value of a 28.34 vehicle is the value listed in the N.A.D.A. Official Used Car 28.35 Guide, Midwest Edition, for newer model cars. Amounts in excess 28.36 of the exclusion are counted against the property limits 29.1 specified in this subdivision; 29.2 (2) the value of life insurance policies for members of the 29.3 assistance unit; 29.4 (3) one burial plot per member of an assistance unit; 29.5 (4) the value of personal property needed to produce earned 29.6 income, including tools, implements, farm animals, inventory, 29.7 business loans, business checking and savings accounts used 29.8 exclusively for the operation of a self-employment business, and 29.9 any motor vehicles if the vehicles are essential for the 29.10 self-employment business; 29.11 (5) the value of personal property not otherwise specified 29.12 which is commonly used by household members in day-to-day living 29.13 such as clothing, necessary household furniture, equipment, and 29.14 other basic maintenance items essential for daily living; 29.15 (6) the value of real and personal property owned by a 29.16 recipient of Social Security Income or Minnesota supplemental 29.17 aid; 29.18 (7) the value of corrective payments, but only for the 29.19 month in which the payment is received and for the following 29.20 month; 29.21 (8) a mobile home used by an applicant or participant as 29.22 the applicant's or participant's home; 29.23 (9) money in a separate escrow account that is needed to 29.24 pay real estate taxes or insurance and that is used for this 29.25 purpose; 29.26 (10) money held in escrow to cover employee FICA, employee 29.27 tax withholding, sales tax withholding, employee worker 29.28 compensation, business insurance, property rental, property 29.29 taxes, and other costs that are paid at least annually, but less 29.30 often than monthly; 29.31 (11) monthly assistance and emergency assistance payments 29.32 for the current month's needs; 29.33 (12) the value of school loans, grants, or scholarships for 29.34 the period they are intended to cover; 29.35 (13) payments listed in section 256J.21, subdivision 2, 29.36 clause (9), which are held in escrow for a period not to exceed 30.1 three months to replace or repair personal or real property; 30.2 (14) income received in a budget month through the end of 30.3 the budget month; 30.4 (15) savings of a minor child or a minor parent that are 30.5 set aside in a separate account designated specifically for 30.6 future education or employment costs; 30.7 (16) the earned income tax credit and Minnesota working 30.8 family credit in the month received the following month; 30.9 (17) payments excluded under federal law as long as those 30.10 payments are held in a separate account from any nonexcluded 30.11 funds; and 30.12 (18) money received by a participant of the corps to career 30.13 program under section 84.0887, subdivision 2, paragraph (b), as 30.14 a postservice benefit under the federal Americorps Act. 30.15 Section 12 is effective January 1, 1998, except the 30.16 transitional provision in section 72 applies. 30.17 Sec. 13. [256J.21] [INCOME LIMITATIONS.] 30.18 Subdivision 1. [INCOME INCLUSIONS.] To determine MFIP-S 30.19 eligibility, the county agency must evaluate income received by 30.20 members of an assistance unit, or by other persons whose income 30.21 is considered available to the assistance unit. All payments, 30.22 unless specifically excluded in subdivision 2, must be counted 30.23 as income. 30.24 Subd. 2. [INCOME EXCLUSIONS.] (a) The following must be 30.25 excluded in determining a family's available income: 30.26 (1) payments for basic care, difficulty of care, and 30.27 clothing allowances received for providing family foster care to 30.28 children or adults under Minnesota Rules, parts 9545.0010 to 30.29 9545.0260 and 9555.5050 to 9555.6265, and payments received and 30.30 used for care and maintenance of a third-party beneficiary who 30.31 is not a household member; 30.32 (2) reimbursements for employment training received through 30.33 the Job Training Partnership Act, United States Code, title 29, 30.34 chapter 19, sections 1501 to 1792b; 30.35 (3) reimbursement for out-of-pocket expenses incurred while 30.36 performing volunteer services, jury duty, or employment; 31.1 (4) all educational assistance, except the county agency 31.2 must count graduate student teaching assistantships, 31.3 fellowships, and other similar paid work as earned income and, 31.4 after allowing deductions for any unmet and necessary 31.5 educational expenses, must count as unearned income all 31.6 scholarships or grants awarded to graduate students that do not 31.7 require teaching or research; 31.8 (5) loans, regardless of purpose, from public or private 31.9 lending institutions, governmental lending institutions, or 31.10 governmental agencies; 31.11 (6) loans from private individuals, regardless of purpose, 31.12 provided an applicant or participant documents that the lender 31.13 expects repayment; 31.14 (7) state and federal income tax refunds; 31.15 (8) state and federal earned income credits; 31.16 (9) funds received for reimbursement, replacement, or 31.17 rebate of personal or real property when these payments are made 31.18 by public agencies, awarded by a court, solicited through public 31.19 appeal, or made as a grant by a federal agency, state or local 31.20 government, or disaster assistance organizations, subsequent to 31.21 a presidential declaration of disaster; 31.22 (10) the portion of an insurance settlement that is used to 31.23 pay medical, funeral, and burial expenses, or to repair or 31.24 replace insured property; 31.25 (11) reimbursements for medical expenses that cannot be 31.26 paid by Medical Assistance; 31.27 (12) payments by a vocational rehabilitation program 31.28 administered by the state under chapter 268A, except those 31.29 payments that are for current living expenses; 31.30 (13) in-kind income, including any payments directly made 31.31 by a third party to a provider of goods and services; 31.32 (14) assistance payments to correct underpayments, but only 31.33 for the month in which the payment is received; 31.34 (15) emergency assistance payments; 31.35 (16) funeral and cemetery payments as provided by section 31.36 256.935; 32.1 (17) nonrecurring cash gifts of $30 or less, not exceeding 32.2 $30 per participant in a calendar month; 32.3 (18) any form of energy assistance payment made through 32.4 LIHEAP, payments made directly to energy providers by other 32.5 public and private agencies, and any form of credit or rebate 32.6 payment issued by energy providers; 32.7 (19) Supplemental Security Income, including retroactive 32.8 payments; 32.9 (20) Minnesota supplemental aid, including retroactive 32.10 payments; 32.11 (21) proceeds from the sale of real or personal property; 32.12 (22) adoption assistance payments under section 259.67; 32.13 (23) state-funded family subsidy program payments made 32.14 under section 252.32 to help families care for children with 32.15 mental retardation or related conditions; 32.16 (24) interest payments and dividends from property that is 32.17 not excluded from and that does not exceed the asset limit; 32.18 (25) rent rebates; 32.19 (26) income earned by a minor caregiver or minor child who 32.20 has not attained the age of 20 and is at least a half-time 32.21 student; 32.22 (27) MFIP-S child care payments under section 119B.05; 32.23 (28) all other payments made through MFIP-S to support a 32.24 caregiver's pursuit of greater self-support; 32.25 (29) income a participant receives related to shared living 32.26 expenses; 32.27 (30) reverse mortgages; 32.28 (31) benefits provided by the Child Nutrition Act of 1966, 32.29 United States Code, title 42, chapter 13A, sections 1771 to 32.30 1790; 32.31 (32) benefits provided by the women, infants, and children 32.32 (WIC) nutrition program, United States Code, title 42, chapter 32.33 13A, section 1786; 32.34 (33) benefits from the National School Lunch Act, United 32.35 States Code, title 42, chapter 13, sections 1751 to 1769e; 32.36 (34) relocation assistance for displaced persons under the 33.1 Uniform Relocation Assistance and Real Property Acquisition 33.2 Policies Act of 1970, United States Code, title 42, chapter 61, 33.3 subchapter II, section 4636, or the National Housing Act, United 33.4 States Code, title 12, chapter 13, sections 1701 to 1750jj; 33.5 (35) benefits from the Trade Act of 1974, United States 33.6 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 33.7 (36) war reparations payments to Japanese Americans and 33.8 Aleuts under United States Code, title 50, sections 1989 to 33.9 1989d; 33.10 (37) payments to veterans or their dependents as a result 33.11 of legal settlements regarding Agent Orange or other chemical 33.12 exposure under Public Law Number 101-239, section 10405, 33.13 paragraph (a)(2)(E); 33.14 (38) security utility deposit refunds; 33.15 (39) American Indian tribal land settlements excluded under 33.16 Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 33.17 Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 33.18 reservations and payments to members of the White Earth Band, 33.19 under United States Code, title 25, chapter 9, section 331, and 33.20 chapter 16, section 1407; and 33.21 (40) income that is otherwise specifically excluded from 33.22 MFIP-S consideration in federal law, state law, or federal 33.23 regulation. 33.24 (b) When determining income of members of the family who do 33.25 not elect to be included in the assistance unit, the county 33.26 agency shall count the remaining income after disregarding: 33.27 (1) all income of the minor parent's parent when 33.28 determining the grant for the minor parent in households that 33.29 include a minor parent living with a parent on MFIP-S with other 33.30 dependent children. The standard of need for the minor parent 33.31 is equal to the standard of need available if the minor parent's 33.32 parent was not a recipient of MIFP-S; and 33.33 (2) income of the minor parent's parent equal to 200 33.34 percent of the federal poverty guideline for a family size not 33.35 including the minor parent and the minor parent's child in 33.36 households that include a minor parent living with a parent not 34.1 on MFIP-S when determining the grant for the minor parent. The 34.2 remainder of income is deemed under Code of Federal Regulations, 34.3 title 45, section 233.20(a)(3)(xviii) in effect on August 21, 34.4 1996. 34.5 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 34.6 determine initial eligibility by considering all earned and 34.7 unearned income that is not excluded under subdivision 2. To be 34.8 eligible for MFIP-S, the assistance unit's countable income 34.9 minus the disregards in paragraphs (a) and (b) must be below the 34.10 transitional standard of assistance according to section 256J.24 34.11 for that size assistance unit. 34.12 (a) The initial eligibility determination must disregard 34.13 the following items: 34.14 (1) the employment disregard is 18 percent of the gross 34.15 earned income whether or not the member is working full time or 34.16 part time; 34.17 (2) dependent care costs must be deducted from gross earned 34.18 income for the actual amount paid for dependent care up to the 34.19 maximum disregard allowed under this chapter and chapter 119B; 34.20 and 34.21 (3) all payments made according to a court order for the 34.22 support of children not living in the assistance unit's 34.23 household shall be disregarded from the income of the person 34.24 with the legal obligation to pay support, provided that, if 34.25 there has been a change in the financial circumstances of the 34.26 person with the legal obligation to pay support since the 34.27 support order was entered, the person with the legal obligation 34.28 to pay support has petitioned for a modification of the support 34.29 order. 34.30 (b) Notwithstanding paragraph (a), when determining initial 34.31 eligibility for applicants who have received AFDC, family 34.32 general assistance, MFIP, MFIP-R, work first, or MFIP-S in this 34.33 state within four months of the most recent application for 34.34 MFIP-S, the employment disregard is 35 percent of the gross 34.35 earned income. 34.36 After initial eligibility is established, the assistance 35.1 payment calculation is based on the monthly income test. 35.2 Subd. 4. [MONTHLY INCOME TEST AND DETERMINATION OF 35.3 ASSISTANCE PAYMENT.] The county agency shall determine ongoing 35.4 eligibility and the assistance payment amount according to the 35.5 monthly income test. To be eligible for MFIP-S, the result of 35.6 the computations in paragraphs (a) to (d) must be at least one 35.7 dollar. 35.8 (a) Apply a 35 percent income disregard to gross earnings 35.9 and subtract this amount from the family wage level. If the 35.10 difference is equal to or greater than the transitional 35.11 standard, the assistance payment is equal to the transitional 35.12 standard. If the difference is less than the transitional 35.13 standard, the assistance payment is equal to the difference. 35.14 The employment disregard in this paragraph must be deducted 35.15 every month there is earned income. 35.16 (b) All payments made according to a court order for the 35.17 support of children not living in the assistance unit's 35.18 household shall be disregarded from the income of the person 35.19 with the legal obligation to pay support, provided that, if 35.20 there has been a change in the financial circumstances of the 35.21 person with the legal obligation to pay support since the 35.22 support order was entered, the person with the legal obligation 35.23 to pay support has petitioned for a modification of the support 35.24 order. 35.25 (c) Subtract unearned income dollar for dollar from the 35.26 transitional standard to determine the assistance payment amount. 35.27 (d) When income is both earned and unearned, the amount of 35.28 the assistance payment must be determined by first treating 35.29 gross earned income as specified in paragraph (a). After 35.30 determining the amount of the assistance payment under paragraph 35.31 (a), unearned income must be subtracted from that amount dollar 35.32 for dollar to determine the assistance payment amount. 35.33 (e) When the monthly income is greater than the 35.34 transitional or family wage level standard after applicable 35.35 deductions and the income will only exceed the standard for one 35.36 month, the county agency must suspend the assistance payment for 36.1 the payment month. 36.2 Subd. 5. [DISTRIBUTION OF INCOME.] The income of all 36.3 members of the assistance unit must be counted. Income may also 36.4 be deemed from ineligible persons to the assistance unit. 36.5 Income must be attributed to the person who earns it or to the 36.6 assistance unit according to paragraphs (a) to (c). 36.7 (a) Funds distributed from a trust, whether from the 36.8 principal holdings or sale of trust property or from the 36.9 interest and other earnings of the trust holdings, must be 36.10 considered income when the income is legally available to an 36.11 applicant or participant. Trusts are presumed legally available 36.12 unless an applicant or participant can document that the trust 36.13 is not legally available. 36.14 (b) Income from jointly owned property must be divided 36.15 equally among property owners unless the terms of ownership 36.16 provide for a different distribution. 36.17 (c) Deductions are not allowed from the gross income of a 36.18 financially responsible household member or by the members of an 36.19 assistance unit to meet a current or prior debt. 36.20 Section 13 is effective January 1, 1998, except the 36.21 transitional provision in section 72 applies. 36.22 Sec. 14. [256J.24] [FAMILY COMPOSITION AND ASSISTANCE 36.23 STANDARDS.] 36.24 Subdivision 1. [MFIP-S ASSISTANCE UNIT.] An MFIP-S 36.25 assistance unit is either a group of individuals with at least 36.26 one minor child who live together whose needs, assets, and 36.27 income are considered together and who receive MFIP-S 36.28 assistance, or a pregnant woman who receives MFIP-S assistance. 36.29 Individuals identified in subdivision 2 must be included in the 36.30 MFIP-S assistance unit. Individuals identified in subdivision 3 36.31 must be excluded from the assistance unit. Individuals 36.32 identified in subdivision 4 may be included in the assistance 36.33 unit at their option. Individuals not included in the 36.34 assistance unit who are identified in section 256J.37, 36.35 subdivision 1 or 2, must have their income considered when 36.36 determining eligibility and benefits for an MFIP-S assistance 37.1 unit. All assistance unit members, whether mandatory or 37.2 elective, who live together and for whom one caregiver or two 37.3 caregivers apply must be included in a single assistance unit. 37.4 Subd. 2. [MANDATORY ASSISTANCE UNIT COMPOSITION.] When the 37.5 following individuals live together, they must be included in 37.6 the assistance unit: 37.7 (1) a minor child; 37.8 (2) the minor child's siblings, half-siblings, and 37.9 step-siblings; and 37.10 (3) the minor child's natural, adoptive parents, and 37.11 stepparents. 37.12 Subd. 3. [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 37.13 ASSISTANCE UNIT.] The following individuals must be excluded 37.14 from an assistance unit: 37.15 (1) individuals receiving Supplemental Security Income or 37.16 Minnesota supplemental aid; 37.17 (2) individuals living at home while performing 37.18 court-imposed, unpaid community service work due to a criminal 37.19 conviction; 37.20 (3) individuals disqualified from the food stamp program or 37.21 MFIP-S, until the disqualification ends; and 37.22 (4) children on whose behalf foster care payments under 37.23 title IV-E of the Social Security Act are made, except as 37.24 provided in section 256J.74, subdivision 2. 37.25 Subd. 4. [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 37.26 ASSISTANCE UNIT.] The minor child's eligible caregiver may 37.27 choose to be in the assistance unit, if the caregiver is not 37.28 required to be in the assistance unit under subdivision 2. If 37.29 the relative caregiver chooses to be in the assistance unit, 37.30 that person's spouse must also be in the unit. 37.31 Subd. 5. [MFIP-S TRANSITIONAL STANDARD.] The following 37.32 table represents the MFIP-S transitional standard table when all 37.33 members of the assistance unit are eligible for both food and 37.34 cash assistance. 37.35 Number of Eligible People Standard 37.36 1 $344 38.1 2 $596 38.2 3 $747 38.3 4 $884 38.4 5 $1,003 38.5 6 $1,140 38.6 7 $1,246 38.7 8 $1,373 38.8 9 $1,498 38.9 10 $1,618 38.10 over 10 add $118 per additional member. 38.11 The commissioner shall annually publish in the State 38.12 Register the transitional standard for an assistance unit size 1 38.13 to 10. 38.14 Subd. 6. [APPLICATION OF ASSISTANCE STANDARDS.] The 38.15 standards apply to the number of eligible persons in the 38.16 assistance unit. 38.17 Subd. 6a. [ASSISTANCE VENDOR PAID IF CHILD BORN TO 38.18 RECIPIENT.] If a woman receiving assistance as a caregiver of an 38.19 MFIP-S assistance unit delivers a child born at least ten months 38.20 after the woman begins receiving MFIP-S assistance, benefits 38.21 paid to the assistance unit under this section shall be vendor 38.22 paid for rent and utilities up to the amount of the MFIP-S 38.23 grant. The residual amount of the grant after vendor payment, 38.24 if any, shall be paid to the caregiver. 38.25 Subd. 7. [FAMILY WAGE LEVEL STANDARD.] The family wage 38.26 level standard is 109 percent of the transitional standard under 38.27 subdivision 5 and is the standard used when there is earned 38.28 income in the assistance unit. As specified in section 256J.21, 38.29 earned income is subtracted from the family wage level to 38.30 determine the amount of the assistance payment. Assistance 38.31 payments may not exceed the transitional standard for the 38.32 assistance unit. 38.33 Section 14 is effective January 1, 1998, except the 38.34 transitional provision in section 72 applies. 38.35 Sec. 15. [256J.26] [PERSONS INELIGIBLE.] 38.36 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 39.1 an applicant has been convicted of a drug offense after July 1, 39.2 1997, the assistance unit is ineligible for AFDC or MFIP-S 39.3 benefits until five years after the applicant has completed 39.4 terms of the court-ordered sentence. This subdivision also 39.5 applies to persons who receive food stamps under section 115 of 39.6 the Personal Responsibility and Work Opportunity Reconciliation 39.7 Act of 1996. 39.8 (b) For the purposes of this subdivision, "drug offense" 39.9 means a conviction that occurred after July 1, 1997, of sections 39.10 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 39.11 means a conviction in another jurisdiction of the possession, 39.12 use, or distribution of a controlled substance, or conspiracy to 39.13 commit any of these offenses, if the offense occurred after July 39.14 1, 1997, and the conviction is a felony offense in that 39.15 jurisdiction, or in the case of New Jersey, a high misdemeanor. 39.16 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 39.17 condition of probation or parole imposed under federal or state 39.18 law is ineligible to receive AFDC or MFIP-S. 39.19 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 39.20 avoid prosecution, or custody, or confinement after conviction 39.21 for a crime that is a felony under the laws of the jurisdiction 39.22 from which the individual flees, or in the case of New Jersey, 39.23 is a high misdemeanor, is ineligible to receive AFDC or MFIP-S. 39.24 Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 39.25 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 39.26 individual who is convicted in federal or state court of having 39.27 made a fraudulent statement or representation with respect to 39.28 the place of residence of the individual in order to receive 39.29 assistance simultaneously from two or more states is ineligible 39.30 to receive AFDC or MFIP-S for ten years beginning on the date of 39.31 the conviction. 39.32 Sec. 16. [256J.28] [PROVISIONS RELATED SPECIFICALLY TO 39.33 FOOD STAMP ASSISTANCE.] 39.34 Subdivision 1. [EXPEDITED ISSUANCE OF FOOD STAMP 39.35 ASSISTANCE.] The following households are entitled to expedited 39.36 issuance of food stamp assistance: 40.1 (1) households with less than $150 in monthly gross income 40.2 provided their liquid assets do not exceed $100; 40.3 (2) migrant or seasonal farm worker households who are 40.4 destitute as defined in Code of Federal Regulations, title 7, 40.5 subtitle B, chapter 2, subchapter C, part 273, section 273.10, 40.6 paragraph (e)(3), provided their liquid assets do not exceed 40.7 $100; and 40.8 (3) eligible households whose combined monthly gross income 40.9 and liquid assets are less than the household's monthly rent or 40.10 mortgage and utilities. 40.11 The benefits issued through expedited issuance of food 40.12 stamp assistance must be deducted from the amount of the full 40.13 monthly MFIP-S assistance payment and a supplemental payment for 40.14 the difference must be issued. 40.15 Subd. 2. [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 40.16 ASSISTANCE UNIT.] For household members who purchase and prepare 40.17 food with the MFIP-S assistance unit but are not part of the 40.18 assistance unit, the county agency must determine a separate 40.19 food stamp benefit based on regulations agreed upon with the 40.20 United States department of agriculture. 40.21 This subdivision does not apply to optional members who 40.22 have chosen not to be in the assistance unit. 40.23 Fair hearing requirements for persons who receive food 40.24 stamps under this subdivision are governed by section 256.045, 40.25 and Code of Federal Regulations, title 7, subtitle B, chapter 40.26 II, part 273, section 273.15. 40.27 This subdivision is effective January 1, 1998, except the 40.28 transitional provision in section 72 applies. 40.29 Subd. 3. [INCOME DISREGARD FOR CERTAIN PROGRAMS, FOOD 40.30 ASSISTANCE PORTION OF ASSISTANCE PAYMENT.] The portion of the 40.31 MFIP-S assistance payment that is designated by the commissioner 40.32 as the food assistance portion of the assistance payment must be 40.33 disregarded as income in the following programs: 40.34 (1) housing subsidy programs; 40.35 (2) low-income home energy assistance program; 40.36 (3) Supplemental Security Income, when determining interim 41.1 assistance amount; and 41.2 (4) other programs that do not count food stamps as income. 41.3 For the purposes of this subdivision, the food assistance 41.4 portion of the assistance payment means a predetermined portion 41.5 of the MFIP-S assistance payment that may be received in 41.6 point-of-purchase sites or as food stamps. The predetermined 41.7 portion of the assistance payment varies by family profile, 41.8 which is based on family size. 41.9 This subdivision is effective January 1, 1998, except the 41.10 transitional provision in section 72 applies. 41.11 Sec. 17. [256J.30] [APPLICANT AND PARTICIPANT REQUIREMENTS 41.12 AND RESPONSIBILITIES.] 41.13 Subdivision 1. [APPLICANT REPORTING REQUIREMENTS.] An 41.14 applicant must provide information on an application form and 41.15 supplemental forms about the applicant's circumstances which 41.16 affect MFIP-S eligibility or the assistance payment. An 41.17 applicant must report changes identified in subdivision 9 while 41.18 the application is pending. When an applicant does not 41.19 accurately report information on an application, both an 41.20 overpayment and a referral for a fraud investigation may 41.21 result. When an applicant does not provide information or 41.22 documentation, the receipt of the assistance payment may be 41.23 delayed or the application may be denied depending on the type 41.24 of information required and its effect on eligibility. 41.25 Subd. 2. [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 41.26 applicant or participant must apply for and follow through with 41.27 appealing any denials of eligibility for benefits from other 41.28 programs for which the applicant or participant is potentially 41.29 eligible and which would, if received, offset assistance 41.30 payments. An applicant's or participant's failure to complete 41.31 application for these benefits without good cause results in 41.32 denial or termination of assistance. Good cause for failure to 41.33 apply for these benefits is allowed when circumstances beyond 41.34 the control of the applicant or participant prevent the 41.35 applicant or participant from making an application. 41.36 Subd. 3. [RESPONSIBILITY TO INQUIRE.] An applicant or 42.1 participant who does not know or is unsure whether a given 42.2 change in circumstances will affect the applicant's or 42.3 participant's MFIP-S eligibility or assistance payment must 42.4 contact the county agency for information. 42.5 Subd. 4. [PARTICIPANT'S COMPLETION OF RECERTIFICATION OF 42.6 ELIGIBILITY FORM.] A participant must complete forms prescribed 42.7 by the commissioner which are required for recertification of 42.8 eligibility according to section 256J.32, subdivision 6. 42.9 Subd. 5. [MONTHLY MFIP-S HOUSEHOLD REPORTS.] Each 42.10 assistance unit with a member who has earned income or a recent 42.11 work history, and each assistance unit that has income allocated 42.12 to it from a financially responsible person, must complete a 42.13 monthly MFIP-S household report form. "Recent work history" 42.14 means the individual received earned income in the report month 42.15 or any of the previous three calendar months even if the 42.16 earnings are excluded. To be complete, the MFIP-S household 42.17 report form must be signed and dated by the caregivers no 42.18 earlier than the last day of the reporting period. All 42.19 questions required to determine assistance payment eligibility 42.20 must be answered, and documentation of earned income must be 42.21 included. 42.22 Subd. 6. [SIX-MONTH MFIP-S HOUSEHOLD REPORT.] Assistance 42.23 units that are not required to report monthly under subdivision 42.24 5 must complete an MFIP-S household report form every six 42.25 months. To be complete, the MFIP-S household report form must 42.26 be signed and dated by the caregiver or caregivers no earlier 42.27 than the last day of the reporting period. All questions 42.28 required to determine assistance payment eligibility must be 42.29 answered and documentation of earned income must be included. 42.30 Subd. 7. [DUE DATE OF MFIP-S HOUSEHOLD REPORT.] An MFIP-S 42.31 household report form must be received by the county agency by 42.32 the eighth calendar day of the month following the reporting 42.33 period covered by the form. When the eighth calendar day of the 42.34 month falls on a weekend or holiday, the MFIP-S household report 42.35 form must be received by the county agency by the first working 42.36 day that follows the eighth calendar day. The county agency 43.1 must send a notice of termination because of a late or 43.2 incomplete MFIP-S household report form. 43.3 Subd. 8. [LATE MFIP-S HOUSEHOLD REPORT FORMS.] Paragraphs 43.4 (a) to (d) apply to the reporting requirements in subdivision 7. 43.5 (a) When a caregiver submits an incomplete MFIP-S household 43.6 report form before the last working day of the month on which a 43.7 ten-day notice of termination can be issued, the county agency 43.8 must return the incomplete form on or before the ten-day notice 43.9 deadline or any previously sent ten-day notice of termination is 43.10 invalid. 43.11 (b) When a complete MFIP-S household report form is not 43.12 received by a county agency before the last ten days of the 43.13 month in which the form is due, the county agency must send a 43.14 notice of proposed termination of assistance. When a caregiver 43.15 submits an incomplete form on or after the date a notice of 43.16 proposed termination has been sent, the termination is valid 43.17 unless the caregiver submits a complete form before the end of 43.18 the month. 43.19 (c) An assistance unit required to submit an MFIP-S 43.20 household report form is considered to have continued its 43.21 application for assistance if a complete MFIP-S household report 43.22 form is received within a calendar month after the month in 43.23 which assistance was received and assistance shall be paid for 43.24 the period beginning with the first day of the month in which 43.25 the report was due. 43.26 (d) A county agency must allow good cause exemptions from 43.27 the reporting requirements under subdivisions 5 and 6 when any 43.28 of the following factors cause a caregiver to fail to provide 43.29 the county agency with a completed MFIP-S household report form 43.30 before the end of the month in which the form is due: 43.31 (1) an employer delays completion of employment 43.32 verification; 43.33 (2) a county agency does not help a caregiver complete the 43.34 MFIP-S household report form when the caregiver asks for help; 43.35 (3) a caregiver does not receive an MFIP-S household report 43.36 form due to mistake on the part of the department or the county 44.1 agency or due to a reported change in address; 44.2 (4) a caregiver is ill, or physically or mentally 44.3 incapacitated; or 44.4 (5) some other circumstance occurs that a caregiver could 44.5 not avoid with reasonable care that prevents the caregiver from 44.6 providing a completed MFIP-S household report form before the 44.7 end of the month in which the form is due. 44.8 Subd. 9. [CHANGES THAT MUST BE REPORTED.] A caregiver must 44.9 report the changes or anticipated changes specified in clauses 44.10 (1) to (16) within ten days of the date they occur, within ten 44.11 days of the date the caregiver learns that the change will 44.12 occur, at the time of the periodic recertification of 44.13 eligibility under section 256J.32, subdivision 6, or within 44.14 eight calendar days of a reporting period as in subdivision 5 or 44.15 6, whichever occurs first. A caregiver must report other 44.16 changes at the time of the periodic recertification of 44.17 eligibility under section 256J.32, subdivision 6, or at the end 44.18 of a reporting period under subdivision 5 or 6, as applicable. 44.19 A caregiver must make these reports in writing or in person to 44.20 the county agency. When a county agency could have reduced or 44.21 terminated assistance for one or more payment months if a delay 44.22 in reporting a change specified under clauses (1) to (16) had 44.23 not occurred, the county agency must determine whether a timely 44.24 notice under section 256J.31, subdivision 4, could have been 44.25 issued on the day that the change occurred. When a timely 44.26 notice could have been issued, each month's overpayment 44.27 subsequent to that notice must be considered a client error 44.28 overpayment under section 256J.38. Changes in circumstances 44.29 which must be reported within ten days must also be reported on 44.30 the MFIP-S household report form for the reporting period in 44.31 which those changes occurred. Within ten days, a caregiver must 44.32 report: 44.33 (1) a change in initial employment; 44.34 (2) a change in initial receipt of unearned income; 44.35 (3) a recurring change in unearned income; 44.36 (4) a nonrecurring change of unearned income that exceeds 45.1 $30; 45.2 (5) the receipt of a lump sum; 45.3 (6) an increase in assets that may cause the assistance 45.4 unit to exceed asset limits; 45.5 (7) a change in the physical or mental status of an 45.6 incapacitated member of the assistance unit if the physical or 45.7 mental status is the basis of an exemption from the MFIP-S 45.8 employment and training services component; 45.9 (8) a change in employment status; 45.10 (9) a change in household composition, including births, 45.11 returns to and departures from the home of assistance unit 45.12 members and financially responsible persons, or a change in the 45.13 custody of a minor child; 45.14 (10) a change in health insurance coverage; 45.15 (11) the marriage or divorce of an assistance unit member; 45.16 (12) the death of a parent, minor child, or financially 45.17 responsible person; 45.18 (13) a change in address or living quarters of the 45.19 assistance unit; 45.20 (14) the sale, purchase, or other transfer of property; 45.21 (15) a change in school attendance of a custodial parent or 45.22 an employed child; and 45.23 (16) filing a lawsuit, a workers' compensation claim, or a 45.24 monetary claim against a third party. 45.25 Subd. 10. [COOPERATION WITH HEALTH CARE BENEFITS.] (a) The 45.26 caregiver of a minor child must cooperate with the county agency 45.27 to identify and provide information to assist the county agency 45.28 in pursuing third-party liability for medical services. 45.29 (b) A caregiver must assign to the department any rights to 45.30 health insurance policy benefits the caregiver has during the 45.31 period of MFIP-S eligibility. 45.32 (c) A caregiver must identify any third party who may be 45.33 liable for care and services available under the medical 45.34 assistance program on behalf of the applicant or participant and 45.35 all other assistance unit members. 45.36 (d) When a participant refuses to assign the rights to the 46.1 department, or when a participant refuses to identify any third 46.2 party who may be liable for care and services, the recipient 46.3 must be sanctioned as provided in section 256J.46. The 46.4 recipient is also ineligible for medical assistance for a 46.5 minimum of one month and until the recipient cooperates with the 46.6 requirements of this subdivision. 46.7 Subd. 11. [REQUIREMENT TO ASSIGN SUPPORT AND MAINTENANCE 46.8 RIGHTS.] To be eligible for MFIP-S, the caregiver must assign 46.9 all rights to child support and spousal maintenance benefits 46.10 according to section 256.74, subdivision 5, and section 256.741, 46.11 if enacted. 46.12 Subd. 12. [REQUIREMENT TO PROVIDE SOCIAL SECURITY 46.13 NUMBERS.] Each member of the assistance unit must provide the 46.14 member's social security number to the county agency except for 46.15 members of the assistance unit who are qualified aliens 46.16 according to the Illegal Immigration Reform and Immigration 46.17 Responsibility Act of 1996, Title V of the Omnibus Consolidated 46.18 Appropriations Act, Public Law Number 104-200. When a social 46.19 security number is not provided to the county agency for 46.20 verification, this requirement is satisfied when each member of 46.21 the assistance unit cooperates with the procedures for 46.22 verification of numbers, issuance of duplicate cards, and 46.23 issuance of new numbers which have been established jointly 46.24 between the Social Security Administration and the commissioner. 46.25 Section 17 is effective January 1, 1998, except the 46.26 transitional provision in section 72 applies. 46.27 Sec. 18. [256J.31] [APPLICANT AND PARTICIPANT RIGHTS AND 46.28 COUNTY AGENCY RESPONSIBILITIES.] 46.29 Subdivision 1. [RIGHT TO INFORMATION.] An applicant or 46.30 participant has the right to obtain from the county agency 46.31 information about the benefits, requirements, restrictions, and 46.32 appeal provisions of public assistance programs. 46.33 Subd. 2. [RIGHT TO AUTHORIZED REPRESENTATIVE.] An 46.34 applicant or participant has the right to designate an 46.35 authorized representative to act on the applicant's or 46.36 participant's behalf. An applicant or participant has the right 47.1 to be assisted or represented by an authorized representative in 47.2 eligibility determinations, recertification, conciliation 47.3 conferences, the fair hearing process, and any other contacts 47.4 with the county agency or the department. When a county agency 47.5 determines that it is necessary for a person to assist an 47.6 applicant or participant, the county agency must designate a 47.7 staff member to assist the applicant or participant. Upon a 47.8 request from an applicant or participant, a county agency must 47.9 provide addresses and telephone numbers of organizations that 47.10 provide legal services at low cost or no cost to low-income 47.11 persons. 47.12 Subd. 3. [RIGHT OF APPLICANT TO NOTICE.] A county agency 47.13 must notify an applicant of the disposition of the applicant's 47.14 application. The notice must be in writing and on forms 47.15 prescribed by the commissioner. The county agency must mail the 47.16 notice to the last known mailing address provided by the 47.17 applicant. When an application is denied, the county agency 47.18 must notify the applicant in writing of the reasons for the 47.19 denial, of the right to appeal, and of the right to reapply for 47.20 assistance. 47.21 Subd. 4. [PARTICIPANT'S RIGHT TO NOTICE.] A county agency 47.22 must give a participant written notice of all adverse actions 47.23 affecting the participant including payment reductions, 47.24 suspensions, terminations, and use of protective, vendor, or 47.25 two-party payments. The notice of adverse action must be on a 47.26 form prescribed or approved by the commissioner and must be 47.27 mailed to the last known mailing address provided by the 47.28 participant. The county agency must state on the notice of 47.29 adverse action the action it intends to take, the reasons for 47.30 the action, the participant's right to appeal the action, the 47.31 conditions under which assistance can be continued pending an 47.32 appeal decision, and the related consequences of the action. 47.33 Subd. 5. [MAILING OF NOTICE.] The notice of adverse action 47.34 shall be issued according to paragraphs (a) to (c). 47.35 (a) A county agency shall mail a notice of adverse action 47.36 at least ten days before the effective date of the adverse 48.1 action, except as provided in paragraphs (b) and (c). 48.2 (b) A county agency must mail a notice of adverse action at 48.3 least five days before the effective date of the adverse action 48.4 when the county agency has factual information that requires an 48.5 action to reduce, suspend, or terminate assistance based on 48.6 probable fraud. 48.7 (c) A county agency shall mail a notice of adverse action 48.8 before or on the effective date of the adverse action when the 48.9 county agency: 48.10 (1) receives the caregiver's signed monthly MFIP-S 48.11 household report form that includes information that requires 48.12 payment reduction, suspension, or termination; 48.13 (2) is informed of the death of a participant or the payee; 48.14 (3) receives a signed statement from the caregiver that 48.15 assistance is no longer wanted; 48.16 (4) receives a signed statement from the caregiver that 48.17 provides information that requires the termination or reduction 48.18 of assistance; 48.19 (5) verifies that a member of the assistance unit is absent 48.20 from the home and does not meet temporary absence provisions in 48.21 section 256J.13; 48.22 (6) verifies that a member of the assistance unit has 48.23 entered a regional treatment center or a licensed residential 48.24 facility for medical or psychological treatment or 48.25 rehabilitation; 48.26 (7) verifies that a member of an assistance unit has been 48.27 placed in foster care, and the provisions of section 256J.13, 48.28 subdivision 2, paragraph (b), do not apply; or 48.29 (8) cannot locate a caregiver. 48.30 Subd. 6. [APPEAL RIGHTS.] An applicant, participant, or 48.31 former participant has the right to request a fair hearing when 48.32 aggrieved by an action or inaction of a county agency. A 48.33 request for a fair hearing and rights pending a fair hearing are 48.34 set as specified in section 256J.40. 48.35 Subd. 7. [CASE RECORDS AVAILABLE.] A county agency must 48.36 make financial case records available to the participant or 49.1 former participant as soon as possible but no later than the 49.2 fifth business day following the date of the request. When the 49.3 participant or former participant asks for photocopies of 49.4 material from the financial case record, the county agency must 49.5 provide one copy of each page at no cost. 49.6 Subd. 8. [RIGHT TO MANAGE AFFAIRS.] Except for protective 49.7 payment provisions authorized under section 256J.39, 49.8 participants have the right to manage their own affairs. 49.9 Subd. 9. [RIGHT TO PROTECTION.] Minor caregivers have the 49.10 right to protection. The county agency must refer a minor 49.11 caregiver to the social service unit within 30 days of the date 49.12 the application is approved. The social service unit must 49.13 assist the caregiver who is less than 18 years of age to develop 49.14 a plan as specified in section 256J.54. 49.15 Subd. 10. [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 49.16 earnings of a caregiver who is participating in full or 49.17 part-time employment or training shall be protected from 49.18 garnishment. This protection for earnings shall extend for a 49.19 period of six months from the date of termination from MFIP-S. 49.20 Subd. 11. [RESPONSIBILITY TO RETAIN CASE RECORDS.] The 49.21 county agency must retain financial case records and employment 49.22 and training service records for MFIP-S cases according to 49.23 chapter 13. 49.24 Section 18 is effective January 1, 1998, except the 49.25 transitional provision in section 72 applies. 49.26 Sec. 19. [256J.315] [COUNTY AND TRIBAL COOPERATION.] 49.27 The county agency must cooperate with tribal governments in 49.28 the implementation of MFIP-S to ensure that the program meets 49.29 the special needs of persons living on Indian reservations. 49.30 This cooperation must include, but is not limited to, the 49.31 sharing of MFIP-S duties including initial screening, 49.32 orientation, assessments, and provision of employment and 49.33 training services. The county agency shall encourage tribal 49.34 governments to assume duties related to MFIP-S and shall work 49.35 cooperatively with tribes that have assumed responsibility for a 49.36 portion of the MFIP-S program to expand tribal responsibilities, 50.1 if that expansion is requested by the tribe. 50.2 Section 19 is effective January 1, 1998, except the 50.3 transitional provision in section 72 applies. 50.4 Sec. 20. [256J.32] [DOCUMENTING, VERIFYING, AND 50.5 RECERTIFYING ELIGIBILITY.] 50.6 Subdivision 1. [VERIFICATION OF INFORMATION.] A county 50.7 agency must only require verification of information necessary 50.8 to determine MFIP-S eligibility and the amount of the assistance 50.9 payment. 50.10 Subd. 2. [DOCUMENTATION.] The applicant or participant 50.11 must document the information required under subdivisions 4 to 6 50.12 or authorize the county agency to verify the information. The 50.13 applicant or participant has the burden of providing documentary 50.14 evidence to verify eligibility. The county agency shall assist 50.15 the applicant or participant in obtaining required documents 50.16 when the applicant or participant is unable to do so. When an 50.17 applicant or participant and the county agency are unable to 50.18 obtain documents needed to verify information, the county agency 50.19 may accept an affidavit from an applicant or participant as 50.20 sufficient documentation. 50.21 Subd. 3. [CONTACTING THIRD PARTIES.] A county agency must 50.22 not request information about an applicant or participant that 50.23 is not of public record from a source other than county 50.24 agencies, the department, or the United States Department of 50.25 Health and Human Services without the person's prior written 50.26 consent. An applicant's signature on an application form 50.27 constitutes consent for contact with the sources specified on 50.28 the application. A county agency may use a single consent form 50.29 to contact a group of similar sources, such as banks or 50.30 insurance agencies, but the sources to be contacted must be 50.31 identified by the county agency prior to requesting an 50.32 applicant's consent. 50.33 Subd. 4. [FACTORS TO BE VERIFIED.] The county agency shall 50.34 verify the following at application: 50.35 (1) identity of adults; 50.36 (2) presence of the minor child in the home, if 51.1 questionable; 51.2 (3) relationship of a minor child to caregivers in the 51.3 assistance unit; 51.4 (4) age, if necessary to determine MFIP-S eligibility; 51.5 (5) immigration status; 51.6 (6) social security number in accordance with the 51.7 requirements of section 256J.30, subdivision 12; 51.8 (7) income; 51.9 (8) self-employment expenses used as a deduction; 51.10 (9) source and purpose of deposits and withdrawals from 51.11 business accounts; 51.12 (10) spousal support and child support payments made to 51.13 persons outside the household; 51.14 (11) real property; 51.15 (12) vehicles; 51.16 (13) checking and savings accounts; 51.17 (14) savings certificates, savings bonds, stocks, and 51.18 individual retirement accounts; 51.19 (15) pregnancy, if related to eligibility; 51.20 (16) inconsistent information, if related to eligibility; 51.21 (17) medical insurance; 51.22 (18) anticipated graduation date of an 18-year-old; 51.23 (19) burial accounts; 51.24 (20) school attendance, if related to eligibility; and 51.25 (21) residence. 51.26 Subd. 5. [VERIFICATION OF IMMIGRATION STATUS.] An 51.27 applicant's written authorization is required before the county 51.28 agency contacts the Immigration and Naturalization Service to 51.29 verify immigration status under subdivision 4, clause (5). 51.30 However, refusal to provide such authorization is grounds for a 51.31 finding of ineligibility if the applicant fails to produce proof 51.32 of eligible immigration status. 51.33 Subd. 5a. [INCONSISTENT INFORMATION.] When the county 51.34 agency verifies inconsistent information under subdivision 4, 51.35 clause (16), or under subdivision 6, clause (4), the reason for 51.36 verifying the information must be documented in the financial 52.1 case record. 52.2 Subd. 6. [RECERTIFICATION.] The county agency shall 52.3 recertify eligibility in an annual face-to-face interview with 52.4 the participant and verify the following: 52.5 (1) presence of the minor child in the home, if 52.6 questionable; 52.7 (2) income, including self-employment expenses used as a 52.8 deduction or deposits or withdrawals from business accounts; 52.9 (3) assets, when the value is within $200 of the asset 52.10 limit; and 52.11 (4) inconsistent information, if related to eligibility. 52.12 Section 20 is effective January 1, 1998, except the 52.13 transitional provision in section 72 applies. 52.14 Sec. 21. [256J.33] [PROSPECTIVE AND RETROSPECTIVE 52.15 DETERMINATION OF MFIP-S ELIGIBILITY.] 52.16 Subdivision 1. [DETERMINATION OF ELIGIBILITY.] A county 52.17 agency must determine MFIP-S eligibility prospectively for a 52.18 payment month based on retrospectively assessing income and the 52.19 county agency's best estimate of the circumstances that will 52.20 exist in the payment month. 52.21 Except as described in section 256J.34, subdivision 1, when 52.22 prospective eligibility exists, a county agency must calculate 52.23 the amount of the assistance payment using retrospective 52.24 budgeting. To determine MFIP-S eligibility and the assistance 52.25 payment amount, a county agency must apply countable income, 52.26 described in section 256J.37, subdivisions 3 to 10, received by 52.27 members of an assistance unit or by other persons whose income 52.28 is counted for the assistance unit, described under section 52.29 256J.21 and 256J.37, subdivisions 1 and 2. 52.30 This income must be applied to the transitional standard or 52.31 family wage standard subject to this section and sections 52.32 256J.34 to 256J.36. Income received in a calendar month and not 52.33 otherwise excluded under section 256J.21, subdivision 2, must be 52.34 applied to the needs of an assistance unit. 52.35 Subd. 2. [PROSPECTIVE ELIGIBILITY.] A county agency must 52.36 determine whether the eligibility requirements that pertain to 53.1 an assistance unit, including those in sections 256J.10 to 53.2 256J.15 and 256J.20, will be met prospectively for the payment 53.3 month. Except for the provisions in section 256J.34, 53.4 subdivision 1, the income test will be applied retrospectively. 53.5 Subd. 3. [RETROSPECTIVE ELIGIBILITY.] After the first two 53.6 months of MFIP-S eligibility, a county agency must continue to 53.7 determine whether an assistance unit is prospectively eligible 53.8 for the payment month by looking at all factors other than 53.9 income and then determining whether the assistance unit is 53.10 retrospectively income eligible by applying the monthly income 53.11 test to the income from the budget month. When the monthly 53.12 income test is not satisfied, the assistance payment must be 53.13 suspended when ineligibility exists for one month or ended when 53.14 ineligibility exists for more than one month. 53.15 Subd. 4. [MONTHLY INCOME TEST.] A county agency must apply 53.16 the monthly income test retrospectively for each month of MFIP-S 53.17 eligibility. An assistance unit is not eligible when the 53.18 countable income equals or exceeds the transitional standard or 53.19 the family wage level for the assistance unit. The income 53.20 applied against the monthly income test must include: 53.21 (1) gross earned income from employment, prior to mandatory 53.22 payroll deductions, voluntary payroll deductions, wage 53.23 authorizations, and after the disregards in section 256J.21, 53.24 subdivision 3, and the allocations in section 256J.36, unless 53.25 the employment income is specifically excluded under section 53.26 256J.21, subdivision 2; 53.27 (2) gross earned income from self-employment less 53.28 deductions for self-employment expenses in section 256J.37, 53.29 subdivision 5, but prior to any reductions for personal or 53.30 business state and federal income taxes, personal FICA, personal 53.31 health and life insurance, and after the disregards in section 53.32 256J.21, subdivision 3, and the allocations in section 256J.36; 53.33 (3) unearned income after deductions for allowable expenses 53.34 in section 256J.37, subdivision 9, and allocations in section 53.35 256J.36, unless the income has been specifically excluded in 53.36 section 256J.21, subdivision 2; 54.1 (4) gross earned income from employment as determined under 54.2 clause (1) which is received by a member of an assistance unit 54.3 who is a minor child and less than a half-time student; 54.4 (5) child support and spousal support received or 54.5 anticipated to be received by an assistance unit; 54.6 (6) the income of a parent when that parent is not included 54.7 in the assistance unit; 54.8 (7) the income of an eligible relative and the relative's 54.9 spouse who seek to be included in the assistance unit; and 54.10 (8) the unearned income of a minor child included in the 54.11 assistance unit. 54.12 Subd. 5. [WHEN TO TERMINATE ASSISTANCE.] When an 54.13 assistance unit is ineligible for MFIP-S assistance for two 54.14 consecutive months, the county agency must terminate MFIP-S 54.15 assistance. 54.16 Section 21 is effective January 1, 1998, except the 54.17 transitional provision in section 72 applies. 54.18 Sec. 22. [256J.34] [CALCULATING PAYMENTS; SIGNIFICANT 54.19 CHANGE; INCOME AVERAGING.] 54.20 Subdivision 1. [PROSPECTIVE BUDGETING.] A county agency 54.21 must use prospective budgeting to calculate the assistance 54.22 payment amount for the first two months for an applicant who has 54.23 not received assistance in this state for at least one payment 54.24 month preceding the first month of payment under a current 54.25 application. Prospective budgeting is not subject to 54.26 overpayments or underpayments unless fraud is determined under 54.27 section 256.98. 54.28 (a) The county agency must apply the income received or 54.29 anticipated in the first month of MFIP-S eligibility against the 54.30 need of the first month. The county agency must apply the 54.31 income received or anticipated in the second month against the 54.32 need of the second month. 54.33 (b) When the assistance payment for any part of the first 54.34 two months is based on anticipated income, the county agency 54.35 must base the initial assistance payment amount on the 54.36 information available at the time the initial assistance payment 55.1 is made. 55.2 (c) The county agency must determine the assistance payment 55.3 amount for the first two months of MFIP-S eligibility by 55.4 budgeting both recurring and nonrecurring income for those two 55.5 months. 55.6 (d) The county agency must budget the child support income 55.7 received or anticipated to be received by an assistance unit to 55.8 determine the assistance payment amount from the month of 55.9 application through the date in which MFIP-S eligibility is 55.10 determined and assistance is authorized. Child support income 55.11 which has been budgeted to determine the assistance payment in 55.12 the initial two months is considered nonrecurring income. An 55.13 assistance unit must forward any payment of child support to the 55.14 child support enforcement unit of the county agency following 55.15 the date in which assistance is authorized. 55.16 Subd. 2. [RETROSPECTIVE BUDGETING.] The county agency must 55.17 use retrospective budgeting to calculate the monthly assistance 55.18 payment amount after the payment for the first two months has 55.19 been made under subdivision 1. 55.20 Subd. 3. [ADDITIONAL USES OF RETROSPECTIVE 55.21 BUDGETING.] Notwithstanding subdivision 1, the county agency 55.22 must use retrospective budgeting to calculate the monthly 55.23 assistance payment amount for the first two months under 55.24 paragraphs (a) and (b). 55.25 (a) The county agency must use retrospective budgeting to 55.26 determine the amount of the assistance payment in the first two 55.27 months of MFIP-S eligibility: 55.28 (1) when an assistance unit applies for assistance for the 55.29 same month for which assistance has been interrupted, the 55.30 interruption in eligibility is less than one payment month, the 55.31 assistance payment for the preceding month was issued in this 55.32 state, and the assistance payment for the immediately preceding 55.33 month was determined retrospectively; or 55.34 (2) when a person applies in order to be added to an 55.35 assistance unit, that assistance unit has received assistance in 55.36 this state for at least the two preceding months, and that 56.1 person has been living with and has been financially responsible 56.2 for one or more members of that assistance unit for at least the 56.3 two preceding months. 56.4 (b) Except as provided in clauses (1) to (4), the county 56.5 agency must use retrospective budgeting and apply income 56.6 received in the budget month by an assistance unit and by a 56.7 financially responsible household member who is not included in 56.8 the assistance unit against the appropriate transitional or 56.9 family wage level standard to determine the assistance payment 56.10 to be issued for the payment month. 56.11 (1) When a source of income ends prior to the third payment 56.12 month, that income is not considered in calculating the 56.13 assistance payment for that month. When a source of income ends 56.14 prior to the fourth payment month, that income is not considered 56.15 when determining the assistance payment for that month. 56.16 (2) When a member of an assistance unit or a financially 56.17 responsible household member leaves the household of the 56.18 assistance unit, the income of that departed household member is 56.19 not budgeted retrospectively for any full payment month in which 56.20 that household member does not live with that household and is 56.21 not included in the assistance unit. 56.22 (3) When an individual is removed from an assistance unit 56.23 because the individual is no longer a minor child, the income of 56.24 that individual is not budgeted retrospectively for payment 56.25 months in which that individual is not a member of the 56.26 assistance unit, except that income of an ineligible child in 56.27 the household must continue to be budgeted retrospectively 56.28 against the child's needs when the parent or parents of that 56.29 child request allocation of their income against any unmet needs 56.30 of that ineligible child. 56.31 (4) When a person ceases to have financial responsibility 56.32 for one or more members of an assistance unit, the income of 56.33 that person is not budgeted retrospectively for the payment 56.34 months which follow the month in which financial responsibility 56.35 ends. 56.36 Subd. 4. [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 57.1 agency must recalculate the assistance payment when an 57.2 assistance unit experiences a significant change, as defined in 57.3 section 256J.08, resulting in a reduction in the gross income 57.4 received in the payment month from the gross income received in 57.5 the budget month. The county agency must issue a supplemental 57.6 assistance payment based on the county agency's best estimate of 57.7 the assistance unit's income and circumstances for the payment 57.8 month. Budget adjustments that result from significant changes 57.9 are limited to two in a 12-month period regardless of the reason 57.10 for the change. Budget adjustments due to a significant change 57.11 in the amount of direct support received must not be made after 57.12 the date the assistance unit is required to forward support to 57.13 the child support enforcement unit under subdivision 1, 57.14 paragraph (d). 57.15 Subd. 5. [INCOME AVERAGING FOR PARTICIPANTS PAID WEEKLY OR 57.16 BIWEEKLY.] For the purposes of stabilizing assistance payments, 57.17 the county agency may average income for participants paid 57.18 weekly or biweekly. Monthly income may be computed by adding 57.19 income from all paychecks, dividing the sum by the number of 57.20 paychecks, and multiplying the results by 4.3 if paychecks are 57.21 weekly or 2.16 if paychecks are biweekly. The county agency may 57.22 not use income averaging unless discussed with the participant 57.23 and requested by the participant. 57.24 Section 22 is effective January 1, 1998, except the 57.25 transitional provision in section 72 applies. 57.26 Sec. 23. [256J.35] [AMOUNT OF ASSISTANCE PAYMENT.] 57.27 Except as provided in paragraphs (a) to (c), the amount of 57.28 an assistance payment is equal to the difference between the 57.29 transitional standard or the family wage level in section 57.30 256J.24 and countable income. 57.31 (a) When MFIP-S eligibility exists for the month of 57.32 application, the amount of the assistance payment for the month 57.33 of application must be prorated from the date of application or 57.34 the date all other eligibility factors are met for that 57.35 applicant, whichever is later. This provision applies when an 57.36 applicant loses at least one day of MFIP-S eligibility. 58.1 (b) MFIP-S overpayments to an assistance unit must be 58.2 recouped according to section 256J.38, subdivision 4. 58.3 (c) An initial assistance payment must not be made to an 58.4 applicant who is not eligible on the date payment is made. 58.5 Section 23 is effective January 1, 1998, except the 58.6 transitional provision in section 72 applies. 58.7 Sec. 24. [256J.36] [ALLOCATION FOR UNMET NEED OF OTHER 58.8 HOUSEHOLD MEMBERS.] 58.9 Except as prohibited in paragraphs (a) and (b), an 58.10 allocation of income is allowed to meet the unmet need of an 58.11 ineligible spouse or an ineligible child under the age of 21 for 58.12 whom the caregiver is financially responsible who also lives 58.13 with the caregiver. An allocation is allowed from the 58.14 caregiver's income to meet the need of an ineligible or excluded 58.15 person. That allocation is allowed in an amount up to the 58.16 difference between the MFIP-S family allowance for the 58.17 assistance unit when that excluded or ineligible person is 58.18 included in the assistance unit and the MFIP-S family allowance 58.19 for the assistance unit when the excluded or ineligible person 58.20 is not included in the assistance unit. These allocations must 58.21 be deducted from the caregiver's counted earnings and from 58.22 unearned income subject to paragraphs (a) and (b). 58.23 (a) Income of a minor child in the assistance unit must not 58.24 be allocated to meet the need of a person who is not a member of 58.25 the assistance unit, including the child's parent, even when 58.26 that parent is the payee of the child's income. 58.27 (b) Income of an assistance unit must not be allocated to 58.28 meet the needs of a person ineligible for failure to cooperate 58.29 with program requirements including child support requirements, 58.30 a person ineligible due to fraud, or a relative caregiver and 58.31 his or her spouse who opt out of the assistance unit. 58.32 Section 24 is effective January 1, 1998, except the 58.33 transitional provision in section 72 applies. 58.34 Sec. 25. [256J.37] [TREATMENT OF INCOME AND LUMP SUMS.] 58.35 Subdivision 1. [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 58.36 MEMBERS.] (a) The income of ineligible household members must be 59.1 deemed after allowing the following disregards: 59.2 (1) the first 18 percent of the excluded family member's 59.3 gross earned income; 59.4 (2) amounts the ineligible person actually paid to 59.5 individuals not living in the same household but whom the 59.6 ineligible person claims as dependents for determining federal 59.7 personal income tax liability; 59.8 (3) child or spousal support paid to a person who lives 59.9 outside of the household; and 59.10 (4) an amount for the needs of other persons who live in 59.11 the household but are not included in the assistance unit and 59.12 are or could be claimed by an ineligible person as dependents 59.13 for determining federal personal income tax liability. This 59.14 amount is equal to the difference between the MFIP-S need 59.15 standard when the excluded person is included in the assistance 59.16 unit and the MFIP-S need standard when the excluded person is 59.17 not included in the assistance unit. 59.18 This subdivision is effective January 1, 1998, except the 59.19 transitional provision in section 72 applies. 59.20 Subd. 2. [DEEMED INCOME OF SPONSOR OF NONCITIZENS.] (a) 59.21 All income of a sponsor, or sponsor's spouse, who executed an 59.22 affidavit of support for a noncitizen must be deemed to be 59.23 unearned income of the noncitizen as specified in the Personal 59.24 Responsibility and Work Opportunity Reconciliation Act of 1996 59.25 and any implementing regulations. 59.26 (b) The income of a sponsor who executed an affidavit of 59.27 support for a noncitizen prior to the promulgation of the 59.28 affidavit of support under the Personal Responsibility and Work 59.29 Opportunity Reconciliation Act of 1996, must be deemed to be 59.30 unearned income of the noncitizen after allowing the following 59.31 exclusions: 59.32 (1) 20 percent of the combined gross earned income of the 59.33 sponsor and the sponsor's spouse up to a maximum of $175 per 59.34 month; 59.35 (2) an amount for the needs of the sponsor, the sponsor's 59.36 spouse, and other individuals, living in the sponsor's home, who 60.1 could be claimed by the sponsor or the sponsor's spouse as 60.2 dependents for determining federal personal income tax 60.3 liability, which is equal to the MFIP-S need standard for a 60.4 comparable family unit; 60.5 (3) amounts the sponsor and the sponsor's spouse actually 60.6 paid to individuals not living in the same household but whom 60.7 the sponsor or the sponsor's spouse claim as dependents for 60.8 determining federal personal income tax liability; and 60.9 (4) child or spousal support paid by the sponsor or 60.10 sponsor's spouse to a person who lives outside of the sponsor's 60.11 household. 60.12 Subd. 3. [EARNED INCOME OF WAGE, SALARY, AND CONTRACTUAL 60.13 EMPLOYEES.] The county agency must include gross earned income 60.14 less any disregards in the initial and monthly income test. 60.15 Gross earned income received by persons employed on a 60.16 contractual basis must be prorated over the period covered by 60.17 the contract even when payments are received over a lesser 60.18 period of time. 60.19 This subdivision is effective January 1, 1998, except the 60.20 transitional provision in section 72 applies. 60.21 Subd. 4. [SELF-EMPLOYMENT.] Self-employed individuals are 60.22 those who are responsible for their own work schedule and do not 60.23 have coverage under an employer's liability insurance or 60.24 workers' compensation. Self-employed individuals generally work 60.25 for themselves rather than an employer. However, individuals 60.26 employed in some types of services may be self-employed even if 60.27 they have an employer or work out of another's business 60.28 location. For example, real estate sales people, individuals 60.29 who work for commission sales, manufacturer's representatives, 60.30 and independent contractors may be self-employed. Self-employed 60.31 individuals may or may not have FICA deducted from the check 60.32 issued to them by an employer or another party. 60.33 Self-employed individuals may own a business singularly or 60.34 in partnership. Individuals operating more than one 60.35 self-employment business may use the loss from one business to 60.36 offset self-employment income from another business. A loss 61.1 from a self-employment business may not offset income earned 61.2 under subdivision 3. 61.3 This subdivision is effective January 1, 1998, except the 61.4 transitional provision in section 72 applies. 61.5 Subd. 5. [SELF-EMPLOYMENT EARNINGS.] (a) The county agency 61.6 must determine self-employment income as provided in this 61.7 paragraph. The county agency must subtract allowable business 61.8 expenses from total gross receipts. Allowable business expenses 61.9 include: 61.10 (1) interest on mortgages and loans; 61.11 (2) employee wages, except for persons who are part of the 61.12 assistance unit or whose income is deemed to the participant; 61.13 (3) FICA funds paid on employees' wages, payment of 61.14 employee workers' compensation, and reemployment insurance; 61.15 (4) livestock and veterinary or breeding fees; 61.16 (5) raw material; 61.17 (6) seed and fertilizer; 61.18 (7) maintenance and repairs that are not capital 61.19 expenditures; 61.20 (8) tax return preparation fees; 61.21 (9) license fees, professional fees, franchise fees, and 61.22 professional dues; 61.23 (10) tools and supplies that are not capital expenditures; 61.24 (11) fuel and transportation expenses other than fuel costs 61.25 covered by the flat rate transportation deduction; 61.26 (12) advertising costs; 61.27 (13) meals eaten when required to be away from the local 61.28 work site; 61.29 (14) property expenses such as rent, insurance, taxes, and 61.30 utilities; 61.31 (15) postage; 61.32 (16) purchase cost of inventory at time of sale; 61.33 (17) loss from another self-employment business; 61.34 (18) attorney's fees allowed by the Internal Revenue 61.35 Service; and 61.36 (19) tuition for classes necessary to maintain or improve 62.1 job skills or required by law to maintain job status or salary 62.2 as allowed by the Internal Revenue Service. 62.3 (b) The county agency shall not allow a deduction for the 62.4 following expenses: 62.5 (1) purchases of capital assets; 62.6 (2) payments on the principals of loans for capital assets; 62.7 (3) depreciation; 62.8 (4) amortization; 62.9 (5) the wholesale costs of items purchased, processed, or 62.10 manufactured which are unsold inventory; 62.11 (6) transportation costs that exceed the maximum standard 62.12 mileage rate allowed for use of a personal car in the Internal 62.13 Revenue Code; 62.14 (7) costs, in any amount, for mileage between an 62.15 applicant's or participant's home and place of employment; 62.16 (8) salaries and other employment deductions made for 62.17 members of an assistance unit or persons who live in the 62.18 household for whom an employer is legally responsible; 62.19 (9) monthly expenses in excess of $71 for each roomer; 62.20 (10) monthly expenses in excess of the Thrifty Food Plan 62.21 amount for one person for each boarder. For purposes of this 62.22 clause and clause (11), "Thrifty Food Plan" has the meaning 62.23 given it in Code of Federal Regulations. 62.24 (11) monthly expenses in excess of the roomer rate plus the 62.25 Thrifty Food Plan amount for one person for each 62.26 roomer-boarder. If there is more than one boarder or 62.27 roomer-boarder, the total number of boarders must be used as the 62.28 unit size to determine the Thrifty Food Plan amount; 62.29 (12) an amount greater than actual expenses or two percent 62.30 of the estimated market value on a county tax assessment form, 62.31 whichever is greater, as a deduction for upkeep and repair 62.32 against rental income; 62.33 (13) expenses not allowed by the Internal Revenue Code; 62.34 (14) expenses in excess of 60 percent of gross receipts for 62.35 in-home child care unless a higher amount can be documented; and 62.36 (15) expenses that are reimbursed under the child and adult 63.1 care food program as authorized under the National School Lunch 63.2 Act, United States Code, title 42, section 1766. 63.3 This subdivision is effective January 1, 1998, except the 63.4 transitional provision in section 72 applies. 63.5 Subd. 6. [SELF-EMPLOYMENT BUDGET PERIOD.] The 63.6 self-employment budget period begins in the month of application 63.7 or in the first month of self-employment. Gross receipts must 63.8 be budgeted in the month received. Expenses must be budgeted 63.9 against gross receipts in the month the expenses are paid, 63.10 except for paragraphs (a) to (c). 63.11 (a) The purchase cost of inventory items, including 63.12 materials which are processed or manufactured, must be deducted 63.13 as an expense at the time payment is received for the sale of 63.14 the inventory items. 63.15 (b) A 12-month rolling average based on clauses (1) to (3) 63.16 must be used to budget monthly income. 63.17 (1) For a business in operation for at least 12 months, the 63.18 county agency shall use the average monthly self-employment 63.19 income from the most current income tax return for the taxable 63.20 year before the month of application. The county agency shall 63.21 determine a new monthly average by adding in the actual 63.22 self-employment income and expenses from the previous month and 63.23 dropping the first month from the averaging period. 63.24 (2) For a business in operation for less than 12 months, 63.25 the county agency shall compute the average for the number of 63.26 months the business has been in operation to determine a monthly 63.27 average. When data are available for 12 or more months, average 63.28 monthly self-employment income is determined under clause (1). 63.29 (3) If the business undergoes a major change, the county 63.30 agency shall compute a new rolling average beginning with the 63.31 first month of the major change. For the purpose of this 63.32 clause, "major change" means a change that affects the nature 63.33 and scale of the business and is not merely the result of normal 63.34 business fluctuations. 63.35 (c) For seasonal self-employment, the participant may 63.36 choose whether to use actual income in the month of receipt and 64.1 expenses in the month incurred or the rolling average method of 64.2 computation. The choice must be made once per year at the time 64.3 of application or recertification. For the purpose of this 64.4 paragraph, seasonal means working six or less months per year. 64.5 This subdivision is effective January 1, 1998, except the 64.6 transitional provision in section 72 applies. 64.7 Subd. 7. [FARM INCOME.] Farm income is the difference 64.8 between gross receipts and operating expenses. The county 64.9 agency must not allow a deduction for expenses listed in 64.10 subdivision 5, paragraph (b). Gross receipts include sales, 64.11 rents, subsidies, soil conservation payments, production derived 64.12 from livestock, and income from home-produced food. 64.13 This subdivision is effective January 1, 1998, except the 64.14 transitional provision in section 72 applies. 64.15 Subd. 8. [RENTAL INCOME.] The county agency must treat 64.16 income from rental property as earned or unearned income. 64.17 Income from rental property is unearned income unless the 64.18 assistance unit spends an average of ten hours per week on 64.19 maintenance or management of the property. When the owner 64.20 spends more than ten hours per week on maintenance or repairs, 64.21 the earnings are considered self-employment earnings. An amount 64.22 must be deducted for upkeep and repairs, as limited by 64.23 subdivision 5, paragraph (b), clause (12), real estate taxes, 64.24 insurance, utilities, and interest on principal payments. When 64.25 the applicant or participant lives on the rental property, 64.26 expenses for upkeep, taxes, insurance, utilities, and interest 64.27 must be divided by the number of rooms to determine expense per 64.28 room and expenses deducted must be deducted only for the number 64.29 of rooms rented. 64.30 This subdivision is effective January 1, 1998, except the 64.31 transitional provision in section 72 applies. 64.32 Subd. 9. [UNEARNED INCOME.] (a) The county agency must 64.33 apply unearned income, including housing subsidies as specified 64.34 in paragraph (b), to the transitional standard. When 64.35 determining the amount of unearned income, the county agency 64.36 must deduct the costs necessary to secure payments of unearned 65.1 income. These costs include legal fees, medical fees, and 65.2 mandatory deductions such as federal and state income taxes. 65.3 (b) Effective January 1, 1998, the county agency shall 65.4 count $100 of the value of public and assisted rental subsidies 65.5 provided by the Department of Housing and Urban Development 65.6 (HUD) through state or local housing authorities, as unearned 65.7 income. The full amount of the subsidy must be counted as 65.8 unearned income when the subsidy is less than $100. 65.9 This subdivision is effective January 1, 1998, except the 65.10 transitional provision in section 72 applies. 65.11 Subd. 10. [TREATMENT OF LUMP SUMS.] The county agency must 65.12 treat lump-sum payments as earned or unearned income. If the 65.13 lump-sum payment is included in the category of income 65.14 identified in subdivision 9, it must be treated as unearned 65.15 income. A lump sum is counted as income in the month received 65.16 and budgeted either prospectively or retrospectively depending 65.17 on the budget cycle at the time of receipt. When an individual 65.18 receives a lump-sum payment, that lump sum must be combined with 65.19 all other earned and unearned income received in the same budget 65.20 month, and it must be applied according to paragraphs (a) to (c). 65.21 A lump sum may not be carried over into subsequent months. Any 65.22 funds that remain in the third month after the month of receipt 65.23 are counted in the asset limit. 65.24 (a) For a lump sum received by an applicant during the 65.25 first two months, prospective budgeting is used to determine the 65.26 payment and the lump sum must be combined with other earned or 65.27 unearned income received and budgeted in that prospective month. 65.28 (b) For a lump sum received by a participant after the 65.29 first two months of MFIP-S eligibility, the lump sum must be 65.30 combined with other income received in that budget month, and 65.31 the combined amount must be applied retrospectively against the 65.32 applicable payment month. 65.33 (c) When a lump sum, combined with other income under 65.34 paragraphs (a) and (b), is less than the transitional standard 65.35 for the applicable payment month, the assistance payment must be 65.36 reduced according to the amount of the countable income. When 66.1 the countable income is greater than the transitional standard 66.2 or the family wage standard, the assistance payment must be 66.3 suspended for the payment month. 66.4 This subdivision is effective January 1, 1998, except the 66.5 transitional provision in section 72 applies. 66.6 Sec. 26. [256J.38] [CORRECTION OF OVERPAYMENTS AND 66.7 UNDERPAYMENTS.] 66.8 Subdivision 1. [SCOPE OF OVERPAYMENT.] When a participant 66.9 or former participant receives an overpayment due to agency, 66.10 client, or ATM error, or due to assistance received while an 66.11 appeal is pending and the participant or former participant is 66.12 determined ineligible for assistance or for less assistance than 66.13 was received, the county agency must recoup or recover the 66.14 overpayment under the conditions of this section. 66.15 Subd. 2. [NOTICE OF OVERPAYMENT.] When a county agency 66.16 discovers that a participant or former participant has received 66.17 an overpayment for one or more months, the county agency must 66.18 notify the participant or former participant of the overpayment 66.19 in writing. A notice of overpayment must specify the reason for 66.20 the overpayment, the authority for citing the overpayment, the 66.21 time period in which the overpayment occurred, the amount of the 66.22 overpayment, and the participant's or former participant's right 66.23 to appeal. No limit applies to the period in which the county 66.24 agency is required to recoup or recover an overpayment according 66.25 to subdivisions 3 and 4. 66.26 Subd. 3. [RECOVERING OVERPAYMENTS FROM FORMER 66.27 PARTICIPANTS.] A county agency must initiate efforts to recover 66.28 overpayments paid to a former participant. Adults and minor 66.29 caregivers of an assistance unit at the time an overpayment 66.30 occurs, whether receiving assistance or not, are jointly and 66.31 individually liable for repayment of the overpayment. The 66.32 county agency must request repayment from the former 66.33 participants. When an agreement for repayment is not completed 66.34 within six months of the date of discovery or when there is a 66.35 default on an agreement for repayment after six months, the 66.36 county agency must initiate recovery consistent with chapter 67.1 270A, or section 541.05. When a person has been convicted of 67.2 fraud under section 256.98, recovery must be sought regardless 67.3 of the amount of overpayment. When an overpayment is less than 67.4 $35, and is not the result of a fraud conviction under section 67.5 256.98, the county agency must not seek recovery under this 67.6 subdivision. The county agency must retain information about 67.7 all overpayments regardless of the amount. When an adult or 67.8 minor caregiver reapplies for assistance, the overpayment must 67.9 be recouped under subdivision 4. 67.10 Subd. 4. [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 67.11 participant may voluntarily repay, in part or in full, an 67.12 overpayment even if assistance is reduced under this 67.13 subdivision, until the total amount of the overpayment is 67.14 repaid. When an overpayment occurs, the county agency must 67.15 recover ten percent of the transitional standard or the amount 67.16 of the monthly assistance payment, whichever is less. 67.17 Subd. 5. [RECOVERING AUTOMATIC TELLER MACHINE ERRORS.] For 67.18 recipients receiving benefits via electronic benefit transfer, 67.19 if the overpayment is a result of an ATM dispensing funds in 67.20 error to the recipient, the agency may recover the ATM error by 67.21 immediately withdrawing funds from the recipient's electronic 67.22 benefit transfer account, up to the amount of the error. 67.23 Subd. 6. [SCOPE OF UNDERPAYMENTS.] A county agency must 67.24 issue a corrective payment for underpayments made to a 67.25 participant or to a person who would be a participant if an 67.26 agency or client error causing the underpayment had not occurred. 67.27 The county agency must issue the corrective payment according to 67.28 subdivision 8. 67.29 Subd. 7. [IDENTIFYING THE UNDERPAYMENT.] An underpayment 67.30 may be identified by a county agency, by a participant, by a 67.31 former participant, or by a person who would be a participant 67.32 except for agency or client error. 67.33 Subd. 8. [ISSUING CORRECTIVE PAYMENTS.] A county agency 67.34 must correct an underpayment within seven calendar days after 67.35 the underpayment has been identified, by adding the corrective 67.36 payment amount to the monthly assistance payment of the 68.1 participant or by issuing a separate payment to a participant or 68.2 former participant, or by reducing an existing overpayment 68.3 balance. When an underpayment occurs in a payment month and is 68.4 not identified until the next payment month or later, the county 68.5 agency must first subtract the underpayment from any overpayment 68.6 balance before issuing the corrective payment. The county 68.7 agency must not apply an underpayment in a current payment month 68.8 against an overpayment balance. When an underpayment in the 68.9 current payment month is identified, the corrective payment must 68.10 be issued within seven calendar days after the underpayment is 68.11 identified. 68.12 Subd. 9. [APPEALS.] A participant may appeal an 68.13 underpayment, an overpayment, and a reduction in an assistance 68.14 payment made to recoup the overpayment under subdivision 4. The 68.15 participant's appeal of each issue must be timely under section 68.16 256.045. When an appeal based on the notice issued under 68.17 subdivision 2 is not timely, the fact or the amount of that 68.18 overpayment must not be considered as a part of a later appeal, 68.19 including an appeal of a reduction in an assistance payment to 68.20 recoup that overpayment. 68.21 This subdivision is effective January 1, 1998, except the 68.22 transitional provision in section 72 applies. 68.23 Sec. 27. [256J.39] [PAYMENT PROVISIONS; VENDOR PAYMENTS.] 68.24 Subdivision 1. [PAYMENT POLICY.] The following policies 68.25 apply to monthly assistance payments and corrective payments: 68.26 (1) Grant payments may be issued in the form of warrants 68.27 immediately redeemable in cash, electronic benefits transfer, or 68.28 by direct deposit into the recipient's account in a financial 68.29 institution. 68.30 (2) The commissioner shall mail assistance payment checks 68.31 to the address where a caregiver lives unless the county agency 68.32 approves an alternate arrangement. 68.33 (3) The commissioner shall mail monthly assistance payment 68.34 checks within time to allow postal service delivery to occur no 68.35 later than the first day of each month. Monthly assistance 68.36 payment checks must be dated the first day of the month. The 69.1 commissioner shall issue electronic benefits transfer payments 69.2 so that caregivers have access to the payments no later than the 69.3 first of the month. 69.4 (4) The commissioner shall issue replacement checks 69.5 promptly, but no later than seven calendar days after the 69.6 provisions of sections 16A.46; 256.01, subdivision 11; and 69.7 471.415 have been met. 69.8 Subd. 2. [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 69.9 paying assistance directly to a participant may be used when: 69.10 (1) a county agency determines that a vendor payment is the 69.11 most effective way to resolve an emergency situation pertaining 69.12 to basic needs; 69.13 (2) a caregiver makes a written request to the county 69.14 agency asking that part or all of the assistance payment be 69.15 issued by protective or vendor payments for shelter and utility 69.16 service only. The caregiver may withdraw this request in 69.17 writing at any time; 69.18 (3) a caregiver has exhibited a continuing pattern of 69.19 mismanaging funds as determined by the county agency; 69.20 (4) the vendor payment is part of a sanction under section 69.21 256J.46, subdivision 2; or 69.22 (5) the vendor payment is required under section 256J.24 or 69.23 256J.43. 69.24 The director of a county agency must approve a proposal for 69.25 protective or vendor payment for money mismanagement. During 69.26 the time a protective or vendor payment is being made, the 69.27 county agency must provide services designed to alleviate the 69.28 causes of the mismanagement. 69.29 The continuing need for and method of payment must be 69.30 documented and reviewed every 12 months. The director of a 69.31 county agency must approve the continuation of protective or 69.32 vendor payments. 69.33 When it appears that the need for protective or vendor 69.34 payments will continue or is likely to continue beyond two years 69.35 because the county agency's efforts have not resulted in 69.36 sufficiently improved use of assistance on behalf of the minor 70.1 child, judicial appointment of a legal guardian or other legal 70.2 representative must be sought by the county agency. 70.3 Subd. 3. [CHOOSING PAYEES FOR PROTECTIVE OR VENDOR 70.4 PAYMENTS.] A county agency shall consult with a caregiver 70.5 regarding the selection of the form of payment, the selection of 70.6 a protective payee, and the distribution of the assistance 70.7 payment to meet the various costs incurred by the assistance 70.8 unit. When choosing a protective payee, the county agency shall 70.9 notify the caregiver of a consultation date. If the caregiver 70.10 fails to respond to the county agency's request for consultation 70.11 by the effective date on the notice, the county agency must 70.12 choose a protective payee for that payment month and subsequent 70.13 payment months until the caregiver responds to the agency's 70.14 request for consultation. The county agency must notify the 70.15 caregiver of the right to appeal the determination that a 70.16 protective or vendor payment should be made or continued and to 70.17 appeal the selection of the payee. If a county agency is not 70.18 able to find another protective payee, a county agency staff 70.19 member may serve as a protective payee. The following persons 70.20 may not serve as protective payees: a member of the county 70.21 board of commissioners; the county agency staff member 70.22 determining financial eligibility for the family; special 70.23 investigative or resource staff; the staff member handling 70.24 accounting or fiscal processes related to the participant; or a 70.25 landlord, grocer, or other vendor dealing directly with the 70.26 participant. 70.27 Subd. 4. [DISCONTINUING PROTECTIVE OR VENDOR PAYMENTS.] A 70.28 county agency shall discontinue protective or vendor payments in 70.29 two years or in the month following the county agency's failure 70.30 to grant six-month approval to a money management plan, 70.31 whichever occurs first. At least once every 12 months, a county 70.32 agency shall review the performance of a protective payee acting 70.33 under subdivision 2, clause (3), to determine whether a new 70.34 payee should be selected. When a participant complains about 70.35 the performance of a protective payee, a review shall occur 70.36 within 30 calendar days. 71.1 Section 27 is effective January 1, 1998, except the 71.2 transitional provision in section 72 applies. 71.3 Sec. 28. [256J.395] [VENDOR PAYMENT OF RENT AND 71.4 UTILITIES.] 71.5 (a) When a county is required to provide assistance to a 71.6 recipient in vendor form for rent and utilities under chapter 71.7 256, 256D, 256J, or 256K, the cost of utilities for a given 71.8 family may be assumed to be: 71.9 (1) the average of the actual monthly cost of utilities for 71.10 that family for the prior 12 months at the family's current 71.11 residence, if applicable; 71.12 (2) the monthly plan amount, if any, set by the local 71.13 utilities for that family at the family's current residence; or 71.14 (3) the estimated monthly utility costs for the dwelling in 71.15 which the family currently resides. 71.16 (b) For purposes of this section, "utility" means any of 71.17 the following: municipal water and sewer service; electric, 71.18 gas, or heating fuel service; or wood, if that is the heating 71.19 source. 71.20 This section is effective July 1, 1997. 71.21 Sec. 29. [256J.40] [FAIR HEARINGS.] 71.22 Caregivers receiving a notice of intent to sanction or a 71.23 notice of adverse action that includes a sanction, reduction in 71.24 benefits, suspension of benefits, denial of benefits, or 71.25 termination of benefits may request a fair hearing. A request 71.26 for a fair hearing must be submitted in writing to the county 71.27 agency or to the commissioner and must be mailed within 30 days 71.28 after a participant or former participant receives written 71.29 notice of the agency's action or within 90 days when a 71.30 participant or former participant shows good cause for not 71.31 submitting the request within 30 days. A former participant who 71.32 receives a notice of adverse action due to an overpayment may 71.33 appeal the adverse action according to the requirements in this 71.34 section. Issues that may be appealed are: 71.35 (1) the amount of the assistance payment; 71.36 (2) a suspension, reduction, denial, or termination of 72.1 assistance; 72.2 (3) the basis for an overpayment, the calculated amount of 72.3 an overpayment, and the level of recoupment; 72.4 (4) the eligibility for an assistance payment; and 72.5 (5) the use of protective or vendor payments under section 72.6 256J.39, subdivision 2, clauses (1) and (3). 72.7 A county agency must not reduce, suspend, or terminate 72.8 payment when an aggrieved participant requests a fair hearing 72.9 prior to the effective date of the adverse action or within ten 72.10 days of the mailing of the notice of adverse action, whichever 72.11 is later, unless the participant requests in writing not to 72.12 receive continued assistance pending a hearing decision. 72.13 Assistance issued pending a fair hearing is subject to recovery 72.14 under section 256J.38 when as a result of the fair hearing 72.15 decision the participant is determined ineligible for assistance 72.16 or the amount of the assistance received. A county agency may 72.17 increase or reduce an assistance payment while an appeal is 72.18 pending when the circumstances of the participant change and are 72.19 not related to the issue on appeal. The commissioner's order is 72.20 binding on a county agency. No additional notice is required to 72.21 enforce the commissioner's order. 72.22 A county agency shall reimburse appellants for reasonable 72.23 and necessary expenses of attendance at the hearing, such as 72.24 child care and transportation costs and for the transportation 72.25 expenses of the appellant's witnesses and representatives to and 72.26 from the hearing. Reasonable and necessary expenses do not 72.27 include legal fees. Fair hearings must be conducted at a 72.28 reasonable time and date by an impartial referee employed by the 72.29 department. The hearing may be conducted by telephone or at a 72.30 site that is readily accessible to persons with disabilities. 72.31 The appellant may introduce new or additional evidence 72.32 relevant to the issues on appeal. Recommendations of the 72.33 appeals referee and decisions of the commissioner must be based 72.34 on evidence in the hearing record and are not limited to a 72.35 review of the county agency action. 72.36 Section 29 is effective January 1, 1998, except the 73.1 transitional provision in section 72 applies. 73.2 Sec. 30. [256J.42] [60-MONTH TIME LIMIT.] 73.3 Subdivision 1. [TIME LIMIT.] (a) An assistance unit in 73.4 which any adult caregiver has received 60 months of cash 73.5 assistance funded in whole or in part by the TANF block grant is 73.6 ineligible to receive MFIP-S. Any cash assistance funded with 73.7 TANF dollars that was received by the unit on or after the date 73.8 TANF was implemented, including any assistance received in 73.9 states of prior residence, counts toward the 60-month 73.10 limitation. The 60-month limit applies to a minor who is the 73.11 head of a household or who is married to the head of a 73.12 household. The 60-month time period does not need to be 73.13 consecutive months for this provision to apply. 73.14 (b) Months before July 1998 in which individuals receive 73.15 assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R 73.16 comparison group family under sections 256.031 to 256.0361 or 73.17 sections 256.047 to 256.048 are not included in the 60-month 73.18 time limit. 73.19 Subd. 2. [ASSISTANCE FROM ANOTHER STATE.] An individual is 73.20 ineligible to receive MFIP-S assistance in any month during 73.21 which that individual received benefits from another state under 73.22 the temporary assistance to needy families block grant 73.23 authorized by Title I of Public Law Number 104-193. 73.24 Subd. 3. [ADULTS LIVING ON AN INDIAN RESERVATION.] In 73.25 determining the number of months for which an adult has received 73.26 assistance under MFIP-S, the county agency must disregard any 73.27 month during which the adult lived on an Indian reservation if, 73.28 during the month: 73.29 (1) at least 1,000 individuals were living on the 73.30 reservation; and 73.31 (2) at least 50 percent of the adults living on the 73.32 reservation were unemployed. 73.33 Subd. 4. [VICTIMS OF DOMESTIC VIOLENCE.] Any cash 73.34 assistance received by an assistance unit in a month when a 73.35 caregiver is complying with a safety plan under the MFIP-S 73.36 employment and training component does not count toward the 74.1 60-month limitation on assistance. 74.2 Sec. 31. [256J.43] [INTERSTATE PAYMENT STANDARDS.] 74.3 (a) Effective July 1, 1997, the amount of assistance paid 74.4 to an eligible family in which all members have resided in this 74.5 state for fewer than 12 calendar months shall be the lesser of 74.6 either the payment standard that would have been received by the 74.7 family from the state of immediate prior residence, or the 74.8 amount calculated in accordance with AFDC or MFIP-S standards. 74.9 The lesser payment must continue until the family meets the 74.10 12-month requirement. Payment must be calculated by applying 74.11 this state's budgeting policies, and the unit's net income must 74.12 be deducted from the payment standard in the other state or in 74.13 this state, whichever is lower. Payment shall be made in vendor 74.14 form for rent and utilities, up to the limit of the grant 74.15 amount, and residual amounts, if any, shall be paid directly to 74.16 the assistance unit. 74.17 (b) During the first 12 months a family resides in this 74.18 state, the number of months that a family is eligible to receive 74.19 AFDC or MFIP-S benefits is limited to the number of months the 74.20 family would have been eligible to receive similar benefits in 74.21 the state of immediate prior residence. 74.22 (c) This policy applies whether or not the family received 74.23 similar benefits while residing in the state of previous 74.24 residence. 74.25 (d) When a family moves to this state from another state 74.26 where the family has exhausted that state's time limit for 74.27 receiving benefits under that state's TANF program, the family 74.28 will not be eligible to receive any AFDC or MFIP-S benefits in 74.29 this state for 12 months from the date the family moves here. 74.30 (e) For the purposes of this section, "state of immediate 74.31 prior residence" means: 74.32 (1) the state in which the applicant declares the applicant 74.33 spent the most time in the 30 days prior to moving to this 74.34 state; or 74.35 (2) the state in which an applicant who is a migrant worker 74.36 maintains a home. 75.1 (f) The commissioner shall annually verify and update all 75.2 other states' payment standards as they are to be in effect in 75.3 July of each year. 75.4 Sec. 32. [256J.44] [INITIAL SCREENING OF MFIP-S 75.5 APPLICANT.] 75.6 Subdivision 1. [SCREENING.] The county agency, or at 75.7 county option, the county's employment and training service 75.8 provider as defined in section 256J.49, must screen each 75.9 applicant to determine immediate needs and to determine if the 75.10 applicant may be eligible for: 75.11 (1) another program that is not partially funded through 75.12 the federal temporary assistance to needy families block grant 75.13 under title I of Public Law Number 104-193, including the 75.14 expedited issuance of food stamps under section 256J.28, 75.15 subdivision 1. If the applicant may be eligible for another 75.16 program, a county caseworker must provide the appropriate 75.17 referral to the program; 75.18 (2) the diversionary assistance program under section 75.19 256J.47; or 75.20 (3) the emergency assistance program under section 256J.48. 75.21 The applicant is required to attend the screening. If the 75.22 applicant is not diverted from applying for MFIP-S under clauses 75.23 (1) to (3), and if the applicant meets the MFIP-S eligibility 75.24 requirements, then an orientation under section 256J.45 and an 75.25 initial assessment under section 256J.52 must be completed; or, 75.26 in the case of caregivers who are under the age of 20, a plan 75.27 under section 256J.54 must be completed. 75.28 Subd. 2. [SUPPORT SERVICES TO ATTEND SCREENING AND 75.29 ORIENTATION.] Upon a caregiver's request, the county agency must 75.30 arrange for transportation and child care or reimburse 75.31 caregivers for transportation and child care expenses necessary 75.32 to enable caregivers to attend the initial screening under this 75.33 section and the orientation under section 256J.45 if scheduled 75.34 on a day other than when the caregiver makes application for 75.35 assistance. 75.36 Section 32 is effective January 1, 1998, except the 76.1 transitional provision in section 72 applies. 76.2 Sec. 33. [256J.45] [ORIENTATION.] 76.3 Subdivision 1. [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 76.4 county agency must provide each MFIP-S caregiver with a 76.5 face-to-face orientation. The county agency may not require 76.6 caregivers to attend an MFIP-S orientation. If a caregiver does 76.7 not attend an orientation, the county agency must provide 76.8 written information to the caregiver about MFIP-S. 76.9 Subd. 2. [GENERAL INFORMATION.] The MFIP-S orientation 76.10 must consist of a presentation that informs caregivers of: 76.11 (1) the necessity to obtain immediate employment; 76.12 (2) the work incentives under MFIP-S; 76.13 (3) the requirement to comply with the employment plan and 76.14 other requirements of the employment and training services 76.15 component of MFIP-S; 76.16 (4) the consequences for failing to comply with the 76.17 employment plan and other program requirements; 76.18 (5) the rights, responsibilities, and obligations of 76.19 participants; 76.20 (6) the types and locations of child care services 76.21 available through the county agency; 76.22 (7) the availability and the benefits of the early 76.23 childhood health and developmental screening under sections 76.24 123.701 to 123.74; 76.25 (8) the caregiver's eligibility for transition year child 76.26 care assistance under section 119B.05; 76.27 (9) the caregiver's eligibility for extended medical 76.28 assistance when the caregiver loses eligibility for MFIP-S due 76.29 to increased earnings or increased child or spousal support; and 76.30 (10) the caregiver's option to choose an employment and 76.31 training provider and information about each provider, including 76.32 but not limited to, services offered, program components, job 76.33 placement rates, job placement wages, and job retention rates. 76.34 Section 33 is effective January 1, 1998, except the 76.35 transitional provision in section 72 applies. 76.36 Sec. 34. [256J.46] [SANCTIONS.] 77.1 Subdivision 1. [SANCTIONS FOR REFUSAL TO COOPERATE WITH 77.2 SUPPORT REQUIREMENTS.] The grant of an MFIP-S caregiver who 77.3 refuses to cooperate, as determined by the child support 77.4 enforcement agency, with support requirements under section 77.5 256J.30, must be reduced by 25 percent, and the assistance 77.6 unit's rent and utilities, if any, shall be vendor paid up to 77.7 the amount of the reduced MFIP-S grant. The residual amount of 77.8 the grant, if any, must be paid to the caregiver. A sanction 77.9 under this subdivision becomes effective ten days after the 77.10 required notice is given. The sanction must be in effect for a 77.11 minimum of one month, and shall be removed only when the 77.12 caregiver cooperates with the support requirements. For 77.13 purposes of this subdivision, each month that a participant 77.14 fails to comply with a requirement of section 256J.30 shall be 77.15 considered a separate occurrence of noncompliance. A 77.16 participant who has had one or more sanctions imposed must 77.17 remain in compliance with the provisions of this chapter for 12 77.18 months in order for a subsequent sanction to be considered a 77.19 first occurrence. A sanction under this subdivision is not 77.20 subject to the notice and supervisory review requirements of 77.21 section 256J.57, subdivision 2. 77.22 Subd. 1a. [TRANSITIONAL RULE; SANCTIONS FOR AFDC, FAMILY 77.23 GA, STRIDE, ACCESS, MFIP, OR MFIP-R RECIPIENTS.] For purposes of 77.24 determining a sanction under subdivision 2, a recipient of 77.25 assistance under AFDC, family general assistance, STRIDE, 77.26 ACCESS, MFIP, or MFIP-R, who was under a sanction in the month 77.27 immediately preceding the receipt of assistance under MFIP-S 77.28 shall be considered as having one occurrence of failure to 77.29 comply. A recipient of assistance under AFDC, family general 77.30 assistance, STRIDE, ACCESS, MFIP, or MFIP-R, who was under a 77.31 sanction in each of the two months immediately preceding the 77.32 receipt of assistance under MFIP-S shall be considered as having 77.33 two occurrences of failure to comply. The provisions of section 77.34 256J.57 do not apply to sanctions imposed under AFDC, family 77.35 general assistance, project STRIDE, ACCESS, MFIP, or MFIP-R. 77.36 Subd. 2. [SANCTIONS FOR PARTICIPANTS NOT COMPLYING WITH 78.1 PROGRAM REQUIREMENTS.] (a) A participant who fails without good 78.2 cause to comply with the requirements of this chapter other than 78.3 section 256J.30 shall be subject to a sanction consisting of 78.4 reduced MFIP-S assistance as provided in this subdivision. A 78.5 sanction under this subdivision becomes effective ten days after 78.6 the required notice is given. For purposes of this subdivision, 78.7 each month that a participant fails to comply with a requirement 78.8 of this chapter shall be considered a separate occurrence of 78.9 noncompliance. A participant who has had one or more sanctions 78.10 imposed must remain in compliance with the provisions of this 78.11 chapter for 12 months in order for a subsequent sanction to be 78.12 considered a first occurrence. 78.13 (b) Sanctions for noncompliance shall be imposed as 78.14 follows, provided the participant is not subject to sanction 78.15 under subdivision 1: 78.16 (1) For the first occurrence of failure to comply, a 78.17 participant's rent and utilities, if any, shall be vendor paid 78.18 up to the amount of the MFIP-S grant for which the participant's 78.19 assistance unit is eligible. The residual amount of the grant 78.20 after vendor payment, if any, must be reduced by an amount equal 78.21 to 25 percent of the applicable transitional standard before it 78.22 is paid to the participant. If the assistance unit is a 78.23 two-parent family and both parents are in noncompliance under 78.24 this subdivision, the residual amount of the grant, if any, must 78.25 be reduced by an additional five percent of the applicable 78.26 transitional standard before it is paid to the participant. The 78.27 sanction must be in effect for a minimum of one month, and shall 78.28 be removed only when the participant is in compliance. If the 78.29 participant is not paying rent and utilities, the county may opt 78.30 to vendor pay other expenses for basic needs, after applying the 78.31 required 25 percent reduction. 78.32 (2) For a second or subsequent occurrence, the 78.33 participant's rent and utilities, if any, shall be vendor paid 78.34 up to the amount of the MFIP-S grant for which the participant's 78.35 assistance unit is eligible. The residual amount of the grant 78.36 after vendor payment, if any, must be reduced by an amount equal 79.1 to 35 percent of the applicable transitional standard before the 79.2 residual is paid to the participant. If the assistance unit is 79.3 a two-parent family and both parents are in noncompliance under 79.4 this subdivision, the residual amount of the grant, if any, must 79.5 be reduced by an additional five percent of the applicable 79.6 transitional standard before it is paid to the participant. The 79.7 sanction must be in effect for a minimum of one month, and shall 79.8 be removed only when the participant is in compliance. If the 79.9 participant is not paying rent and utilities, the county may opt 79.10 to vendor pay other expenses for basic needs, after applying the 79.11 required 35 percent reduction. 79.12 Subd. 2a. [DUAL SANCTIONS.] Notwithstanding the provisions 79.13 of subdivision 2, for a participant subject to the following 79.14 sanctions concurrently: 79.15 (1) a sanction for refusal to cooperate with child support 79.16 requirements under subdivision 1; and 79.17 (2) a sanction for refusal to cooperate with other program 79.18 requirements, sanctions shall be imposed in the order and in the 79.19 manner prescribed in this subdivision, the participant's grant 79.20 must be reduced by 25 percent, and the assistance unit's rent 79.21 and utilities shall be vendor paid up to the amount of the 79.22 reduced grant, as provided in subdivision 1. The residual 79.23 amount of the grant after vendor payment, if any, must be 79.24 reduced by ten percent of the applicable transitional standard 79.25 before it is paid to the participant. If the assistance unit is 79.26 a two-parent family and both parents are in noncompliance under 79.27 this subdivision, the residual amount of the grant, if any, must 79.28 be reduced by an additional five percent of the applicable 79.29 transitional standard before it is paid to the participant. The 79.30 sanction must be in effect for a minimum of one month, and shall 79.31 be removed only when the participant is in compliance. 79.32 Subd. 3. [EXCEPTIONS DUE TO LACK OF DAY CARE.] 79.33 Notwithstanding subdivision 2, the county agency may not reduce 79.34 or terminate MFIP-S assistance based on a refusal of a 79.35 participant to comply with the requirements of the employment 79.36 and training component of MFIP-S if the participant is a single 80.1 custodial parent caring for a child who has not attained six 80.2 years of age, and the participant has a demonstrated inability, 80.3 as determined by the county agency, to obtain needed child care, 80.4 for one or more of the following reasons: 80.5 (1) unavailability of appropriate child care within a 80.6 reasonable distance from the participant's home or work site; 80.7 (2) unavailability or unsuitability of informal child care 80.8 by a relative or under other arrangements; or 80.9 (3) unavailability of appropriate and affordable formal 80.10 child care arrangements. 80.11 Sec. 35. [256J.47] [DIVERSIONARY ASSISTANCE PROGRAM.] 80.12 Subdivision 1. [ELIGIBILITY.] A family is eligible to 80.13 receive diversionary assistance once every 36 months if: 80.14 (1) a family member has resided in this state for at least 80.15 30 days; 80.16 (2) the caregiver provides verification that the caregiver 80.17 has either experienced an unexpected occurrence that makes it 80.18 impossible to retain or obtain employment or the caregiver has a 80.19 temporary loss of income, which is not due to refusing to accept 80.20 or terminating suitable employment as defined in section 80.21 256J.49, without good cause, resulting in an emergency; 80.22 (3) the caregiver is at risk of MFIP-S eligibility if 80.23 diversionary assistance is not provided and household income is 80.24 below 140 percent of the federal poverty guidelines; and 80.25 (4) the diversionary assistance will resolve the emergency 80.26 and divert the family from applying for MFIP-S. 80.27 For purposes of this section, diversionary assistance means 80.28 a one-time lump-sum payment to an individual or third-party 80.29 vendor to prevent long-term receipt of public assistance. 80.30 Subd. 2. [COUNTY AGENCY DUTIES.] County agencies shall: 80.31 (1) thoroughly explain to the caregiver the consequences of 80.32 receiving diversionary assistance, specifically the resulting 80.33 period of ineligibility under subdivision 4 for other assistance 80.34 programs; 80.35 (2) determine eligibility for diversionary assistance 80.36 within five working days of the receipt of the verification 81.1 required under subdivision 1; and 81.2 (3) verify all information as necessary. 81.3 Subd. 3. [MAXIMUM AMOUNT OF ASSISTANCE.] The maximum 81.4 amount of diversionary assistance that may be provided to a 81.5 family is equal to the amount of the MFIP-S standard for the 81.6 same family size and composition for four months. The 81.7 assistance provided under this program must be based on the 81.8 immediate needs of the family. Counties must strive to provide 81.9 the most cost-effective solution to the one-time emergency. 81.10 Diversionary assistance is not cost effective if the family's 81.11 anticipated income added to the diversion payment will not be 81.12 sufficient to cover the family's immediate needs for the period 81.13 of ineligibility under subdivision 4, beginning with the month 81.14 of application, or another emergency can reasonably be 81.15 anticipated within the period of ineligibility. 81.16 Subd. 4. [INELIGIBILITY FOR MFIP-S; EMERGENCY ASSISTANCE; 81.17 AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of diversionary 81.18 assistance, the family is ineligible for MFIP-S, emergency 81.19 assistance, and emergency general assistance for a period of 81.20 time. To determine the period of ineligibility, the county 81.21 shall use the following formula: regardless of household 81.22 changes, the county agency must calculate the number of days of 81.23 ineligibility by dividing the diversionary assistance issued by 81.24 the maximum monthly amount a family of the same size and 81.25 composition would have received under MFIP-S, multiplied by 30, 81.26 truncating the result. The ineligibility period begins the date 81.27 the diversionary assistance is issued. 81.28 Subd. 5. [DIVERSIONARY ASSISTANCE GRANT; FUNDING] The 81.29 commissioner shall distribute diversionary assistance grants to 81.30 counties. The commissioner may use federal block grant funding 81.31 or state funding for the grants. 81.32 Section 35 is effective January 1, 1998, except the 81.33 transitional provision in section 72 applies. 81.34 Sec. 36. [256J.48] [EMERGENCY ASSISTANCE (EA).] 81.35 Subdivision 1. [EMERGENCY FINANCIAL ASSISTANCE.] County 81.36 human service agencies shall grant emergency financial 82.1 assistance to any needy pregnant woman or needy family with a 82.2 child under the age of 21 who is or was within six months prior 82.3 to application living with an eligible caregiver relative 82.4 specified in section 256J.08. 82.5 Except for ongoing special diets, emergency assistance is 82.6 available to a family during one 30-day period in a consecutive 82.7 12-month period. A county shall issue assistance for needs that 82.8 accrue before that 30-day period only when it is necessary to 82.9 resolve emergencies arising or continuing during the 30-day 82.10 period of eligibility. When emergency needs continue, a county 82.11 may issue assistance for up to 30 days beyond the initial 30-day 82.12 period of eligibility, but only when assistance is authorized 82.13 during the initial period. 82.14 Subd. 2. [ELIGIBILITY.] Notwithstanding other eligibility 82.15 provisions of this chapter, any family without resources 82.16 immediately available to meet emergency needs identified in 82.17 subdivision 3 shall be eligible for an emergency grant under the 82.18 following conditions: 82.19 (1) a family member has resided in this state for at least 82.20 30 days; 82.21 (2) the family is without resources immediately available 82.22 to meet emergency needs; 82.23 (3) assistance is necessary to avoid destitution or provide 82.24 emergency shelter arrangements; and 82.25 (4) the family's destitution or need for shelter or 82.26 utilities did not arise because the child or relative caregiver 82.27 refused without good cause to accept employment or training for 82.28 employment in another state. 82.29 Subd. 3. [EMERGENCY NEEDS.] Emergency needs are limited to 82.30 the following: 82.31 (a) [RENT.] A county agency may deny assistance to prevent 82.32 eviction from rented or leased shelter of an otherwise eligible 82.33 applicant when the county agency determines that an applicant's 82.34 anticipated income will not cover continued payment for shelter, 82.35 subject to conditions in clauses (1) to (3): 82.36 (1) a county agency must not deny assistance when an 83.1 applicant can document that the applicant is unable to locate 83.2 habitable shelter, unless the county agency can document that 83.3 one or more habitable shelters are available in the community 83.4 that will result in at least a 20 percent reduction in monthly 83.5 expense for shelter and that this shelter will be cost-effective 83.6 for the applicant; 83.7 (2) when no alternative shelter can be identified by either 83.8 the applicant or the county agency, the county agency shall not 83.9 deny assistance because anticipated income will not cover rental 83.10 obligation; and 83.11 (3) when cost-effective alternative shelter is identified, 83.12 the county agency shall issue assistance for moving expenses as 83.13 provided in paragraph (d). 83.14 (b) [DEFINITIONS.] For purposes of paragraph (a), the 83.15 following definitions apply (1) "metropolitan statistical area" 83.16 is as defined by the U.S. Census Bureau; (2) "alternative 83.17 shelter" includes any shelter that is located within the 83.18 metropolitan statistical area containing the county and for 83.19 which the applicant is eligible, provided the applicant does not 83.20 have to travel more than 20 miles to reach the shelter and has 83.21 access to transportation to the shelter. Clause (2) does not 83.22 apply to counties in the Minneapolis-St. Paul metropolitan 83.23 statistical area. 83.24 (c) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 83.25 agency shall issue assistance for mortgage or contract for deed 83.26 arrearages on behalf of an otherwise eligible applicant 83.27 according to clauses (1) to (4): 83.28 (1) assistance for arrearages must be issued only when a 83.29 home is owned, occupied, and maintained by the applicant; 83.30 (2) assistance for arrearages must be issued only when no 83.31 subsequent foreclosure action is expected within the 12 months 83.32 following the issuance; 83.33 (3) assistance for arrearages must be issued only when an 83.34 applicant has been refused refinancing through a bank or other 83.35 lending institution and the amount payable, when combined with 83.36 any payments made by the applicant, will be accepted by the 84.1 creditor as full payment of the arrearage; 84.2 (4) costs paid by a family which are counted toward the 84.3 payment requirements in this clause are: principle and interest 84.4 payments on mortgages or contracts for deed, balloon payments, 84.5 homeowner's insurance payments, manufactured home lot rental 84.6 payments, and tax or special assessment payments related to the 84.7 homestead. Costs which are not counted include closing costs 84.8 related to the sale or purchase of real property. 84.9 To be eligible for assistance for costs specified in clause 84.10 (4) which are outstanding at the time of foreclosure, an 84.11 applicant must have paid at least 40 percent of the family's 84.12 gross income toward these costs in the month of application and 84.13 the 11-month period immediately preceding the month of 84.14 application. 84.15 When an applicant is eligible under clause (4), a county 84.16 agency shall issue assistance up to a maximum of four times the 84.17 MFIP-S transitional standard for a comparable assistance unit. 84.18 (d) [DAMAGE DEPOSITS.] A county agency shall issue 84.19 assistance for damage deposits when necessary to alleviate the 84.20 emergency. 84.21 (e) [MOVING EXPENSES.] A county agency shall issue 84.22 assistance for expenses incurred when a family must move to a 84.23 different shelter according to clauses (1) to (4): 84.24 (1) moving expenses include the cost to transport personal 84.25 property belonging to a family, the cost for utility connection, 84.26 and the cost for securing different shelter; 84.27 (2) moving expenses must be paid only when the county 84.28 agency determines that a move is cost-effective; 84.29 (3) moving expenses must be paid at the request of an 84.30 applicant, but only when destitution or threatened destitution 84.31 exists; and 84.32 (4) moving expenses must be paid when a county agency 84.33 denies assistance to prevent an eviction because the county 84.34 agency has determined that an applicant's anticipated income 84.35 will not cover continued shelter obligation in paragraph (a). 84.36 (f) [HOME REPAIRS.] A county agency shall pay for repairs 85.1 to the roof, foundation, wiring, heating system, chimney, and 85.2 water and sewer system of a home that is owned and lived in by 85.3 an applicant. 85.4 The applicant shall document, and the county agency shall 85.5 verify the need for and method of repair. 85.6 The payment must be cost-effective in relation to the 85.7 overall condition of the home and in relation to the cost and 85.8 availability of alternative housing. 85.9 (g) [UTILITY COSTS.] Assistance for utility costs must be 85.10 made when an otherwise eligible family has had a termination or 85.11 is threatened with a termination of municipal water and sewer 85.12 service, electric, gas or heating fuel service, or lacks wood 85.13 when that is the heating source, subject to the conditions in 85.14 clauses (1) and (2): 85.15 (1) a county agency must not issue assistance unless the 85.16 county agency receives confirmation from the utility provider 85.17 that assistance combined with payment by the applicant will 85.18 continue or restore the utility; and 85.19 (2) a county agency shall not issue assistance for utility 85.20 costs unless a family paid at least eight percent of the 85.21 family's gross income toward utility costs due during the 85.22 preceding 12 months. 85.23 Clauses (1) and (2) must not be construed to prevent the 85.24 issuance of assistance when a county agency must take immediate 85.25 and temporary action necessary to protect the life or health of 85.26 a child. 85.27 (h) [SPECIAL DIETS.] A county shall pay for special diets 85.28 or dietary items. The need for special diets or dietary items 85.29 must be prescribed by a licensed physician. Costs for special 85.30 diets shall be determined as percentages of the allotment for a 85.31 one-person household under the Thrifty Food Plan as defined by 85.32 the United States Department of Agriculture. The types of diets 85.33 and the percentages of the Thrifty Food Plan that are covered 85.34 are as follows: 85.35 (1) high protein diet, at least 80 grams daily, 25 percent 85.36 of Thrifty Food Plan; 86.1 (2) controlled protein diet, 40 to 60 grams and requires 86.2 special products, 100 percent of Thrifty Food Plan; 86.3 (3) controlled protein diet, less than 40 grams and 86.4 requires special products, 125 percent of Thrifty Food Plan; 86.5 (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 86.6 (5) high residue diet, 20 percent of Thrifty Food Plan; 86.7 (6) pregnancy and lactation diet, 35 percent of Thrifty 86.8 Food Plan; 86.9 (7) gluten-free diet, 25 percent of Thrifty Food Plan; 86.10 (8) lactose-free diet, 25 percent of Thrifty Food Plan; 86.11 (9) antidumping diet, 15 percent of Thrifty Food Plan; 86.12 (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 86.13 (11) ketogenic diet, 25 percent of Thrifty Food Plan. 86.14 Subd. 4. [VENDOR PAYMENTS FOR SHELTER OR UTILITY 86.15 COSTS.] If an MFIP-S participant applies for and receives 86.16 emergency assistance for shelter and utility costs under 86.17 subdivision 3, paragraph (a), (b), (c), or (f), the ongoing 86.18 MFIP-S assistance payment shall be in the form of vendor 86.19 payments. 86.20 Section 36 is effective January 1, 1998, except the 86.21 transitional provision in section 72 applies. 86.22 Sec. 37. [256J.49] [EMPLOYMENT AND TRAINING SERVICES; 86.23 DEFINITIONS.] 86.24 Subdivision 1. [SCOPE.] The terms used in sections 256J.50 86.25 to 256J.72 have the meanings given them in this section. 86.26 Subd. 2. [DOMESTIC VIOLENCE.] "Domestic violence" means: 86.27 (1) physical acts that result, or threaten to result in, 86.28 physical injury to an individual; 86.29 (2) sexual abuse; 86.30 (3) sexual activity involving a minor child; 86.31 (4) being forced as the caregiver of a minor child to 86.32 engage in nonconsensual sexual acts or activities; 86.33 (5) threats of, or attempts at, physical or sexual abuse; 86.34 (6) mental abuse; or 86.35 (7) neglect or deprivation of medical care. 86.36 Subd. 3. [EMPLOYMENT AND TRAINING SERVICES.] "Employment 87.1 and training services" means programs, activities and services 87.2 that are designed to assist participants in obtaining and 87.3 retaining employment. 87.4 Subd. 4. [EMPLOYMENT AND TRAINING SERVICE 87.5 PROVIDER.] "Employment and training service provider" means: 87.6 (1) a public, private, or nonprofit employment and training 87.7 agency certified by the commissioner of economic security under 87.8 sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 87.9 is approved under section 256J.51 and is included in the county 87.10 plan submitted under section 256J.50, subdivision 6; 87.11 (2) a public, private, or nonprofit agency that is not 87.12 certified by the commissioner under clause (1), but with which a 87.13 county has contracted to provide employment and training 87.14 services; or 87.15 (3) a county agency, if the county has opted to provide 87.16 employment and training services. 87.17 Notwithstanding section 268.871, an employment and training 87.18 services provider meeting this definition may deliver employment 87.19 and training services under this chapter. 87.20 Subd. 5. [EMPLOYMENT PLAN.] "Employment plan" means a plan 87.21 developed by the job counselor and the participant which 87.22 identifies the participant's most direct path to unsubsidized 87.23 employment, lists the specific steps that the participant will 87.24 take on that path, and includes a timetable for the completion 87.25 of each step. 87.26 Subd. 6. [FEDERAL PARTICIPATION STANDARDS.] "Federal 87.27 participation standards" means the work participation standards 87.28 as specified in title I of Public Law Number 104-193, the 87.29 Personal Responsibility and Work Opportunity Reconciliation Act 87.30 of 1996. 87.31 Subd. 7. [INTENSIVE ENGLISH AS A SECOND 87.32 LANGUAGE.] "Intensive English as a second language" means an 87.33 English as a second language program that offers at least 20 87.34 hours of class per week. 87.35 Subd. 8. [JOB COUNSELOR.] "Job counselor" means a staff 87.36 person employed by the employment and training services provider 88.1 who delivers services as specified in sections 256J.50 to 88.2 256J.55. 88.3 Subd. 9. [PARTICIPANT.] "Participant" means a recipient of 88.4 MFIP-S assistance who participates or is required to participate 88.5 in employment and training services. 88.6 Subd. 10. [PROVIDER.] "Provider" means an employment and 88.7 training service provider. 88.8 Subd. 11. [SAFETY PLAN.] "Safety plan" means a plan 88.9 developed by a victim of domestic violence with the assistance 88.10 of a public agency or a private nonprofit agency, including 88.11 agencies that receive designation by the department of 88.12 corrections to provide emergency shelter services or support 88.13 services under section 611A.32. A safety plan shall not include 88.14 a provision that automatically requires a domestic violence 88.15 victim to seek an order of protection, or to attend counseling, 88.16 as part of the safety plan. 88.17 Subd. 12. [SUITABLE EMPLOYMENT.] "Suitable employment" 88.18 means employment that: 88.19 (1) is within the participant's physical and mental 88.20 abilities; 88.21 (2) pays hourly gross wages of not less than the applicable 88.22 state or federal minimum wage; and 88.23 (3) meets health and safety standards set by federal, state 88.24 and county agencies. 88.25 Subd. 13. [WORK ACTIVITY.] "Work activity" means any 88.26 activity in a participant's approved employment plan that is 88.27 tied to the participant's employment goal . For purposes of the 88.28 MFIP-S program, any activity that is included in a participant's 88.29 approved employment plan meets the definition of work activity 88.30 as counted under the federal participation standards. Work 88.31 activity includes, but is not limited to: 88.32 (1) unsubsidized employment; 88.33 (2) subsidized private sector or public sector employment, 88.34 including grant diversion as specified in section 256J.69; 88.35 (3) work experience, including CWEP as specified in section 88.36 256J.67, and including work associated with the refurbishing of 89.1 publicly assisted housing if sufficient private sector 89.2 employment is not available; 89.3 (4) on-the-job training as specified in section 256J.66; 89.4 (5) job search, either supervised or unsupervised; 89.5 (6) job readiness assistance; 89.6 (7) job clubs, including job search workshops; 89.7 (8) job placement; 89.8 (9) job development; 89.9 (10) job-related counseling; 89.10 (11) job coaching; 89.11 (12) job retention services; 89.12 (13) job-specific training or education ; 89.13 (14) job skills training directly related to employment; 89.14 (15) the self-employment investment demonstration (SEID), 89.15 as specified in section 256J.65; 89.16 (16) preemployment activities, based on availability and 89.17 resources, such as volunteer work, citizenship and English as a 89.18 second language classes, or participation in dislocated worker 89.19 services, chemical dependency treatment, mental health services, 89.20 peer group networks, displaced homemaker programs, parenting 89.21 education, or other programs designed to help families reach 89.22 their employment goals and enhance their ability to care for 89.23 their children; 89.24 (17) community service programs; 89.25 (18) vocational educational training or educational 89.26 programs that can reasonably be expected to lead to employment, 89.27 as limited by the provisions of section 256J.53; 89.28 (19) apprenticeships; 89.29 (20) satisfactory attendance in general educational 89.30 development diploma classes or an adult diploma program; 89.31 (21) satisfactory attendance at secondary school, if the 89.32 participant has not received a high school diploma; 89.33 (22) adult basic education classes; 89.34 (23) internships; 89.35 (24) bilingual employment and training services; 89.36 (25) providing child care services to a participant who is 90.1 working in a community service program; and 90.2 (26) activities included in a safety plan that is developed 90.3 under section 256J.52, subdivision 6. 90.4 Section 37 is effective January 1, 1998, except the 90.5 transitional provision in section 72 applies. 90.6 Sec. 38. [256J.50] [COUNTY DUTIES.] 90.7 Subdivision 1. [EMPLOYMENT AND TRAINING SERVICES COMPONENT 90.8 OF MFIP-S.] (a) By January 1, 1998, each county must develop and 90.9 implement an employment and training services component of 90.10 MFIP-S which is designed to put participants on the most direct 90.11 path to unsubsidized employment. Participation in these 90.12 services is mandatory for all MFIP-S caregivers, unless the 90.13 caregiver is exempt under section 256J.56, and is required 90.14 concurrent with the receipt of MFIP-S cash assistance. 90.15 (b) A county may provide employment and training services 90.16 to MFIP-S caregivers who are exempt from the employment and 90.17 training services component but volunteer for the services. 90.18 Subd. 2. [PILOT PROGRAMS.] In counties selected for the 90.19 work first or work focused pilot programs, first-time applicants 90.20 for assistance must meet the requirements of those programs in 90.21 place of the requirements of the MFIP-S program. A county may, 90.22 at its option, discontinue a work first or work focused pilot 90.23 program. 90.24 Subd. 3. [TRANSITIONAL RULE; MFIP OR MFIP-R 90.25 PARTICIPANT.] A caregiver who was enrolled in MFIP or MFIP-R 90.26 immediately before enrolling in MFIP-S, and who was making 90.27 satisfactory progress toward the objectives specified in the 90.28 caregiver's employment plan, may, with the approval of a job 90.29 counselor, continue with the existing employment plan for up to 90.30 one year after the caregiver is enrolled in MFIP-S. The job 90.31 counselor may require changes to the plan in order to be 90.32 consistent with the time limit. 90.33 Subd. 3a. [TRANSITIONAL RULE; STRIDE, ACCESS.] (a) A 90.34 county agency that is not a participant in the MFIP or MFIP-R 90.35 field trials under sections 256.031 to 256.0361 shall not enroll 90.36 a recipient into project STRIDE or ACCESS after the date that 91.1 MFIP-S is implemented in the county. 91.2 (b) A caregiver who: 91.3 (i) was enrolled in project STRIDE or ACCESS continuously 91.4 since March 1, 1997; 91.5 (ii) is not a part of an MFIP or MFIP-R comparison group; 91.6 and 91.7 (iii) who is making satisfactory progress toward the 91.8 objectives specified in the caregiver's employment plan, may, 91.9 with the approval of the job counselor, continue with the 91.10 existing employment plan for up to two years after the caregiver 91.11 is enrolled in MFIP-S. For purposes of the federal 91.12 participation standards, the activities in the caregiver's 91.13 employment plan are work activities, as that term is defined in 91.14 section 256J.49, subdivision 13. 91.15 (c) Notwithstanding contrary provisions of section 256.736, 91.16 the employability plan of a caregiver who is enrolled in project 91.17 STRIDE or ACCESS on or after July 1, 1997, must meet the 91.18 requirements of sections 256J.52, subdivisions 4 and 5, and 91.19 256J.53, or section 256J.54, if applicable. 91.20 Subd. 4. [SERVICE-PROVIDING AGENCIES.] Counties may select 91.21 one or more employment and training service providers, or may 91.22 opt to provide services on their own. 91.23 Subd. 5. [COUNTY OPTION FOR EARLY IMPLEMENTATION.] A 91.24 county may opt to implement its employment and training services 91.25 component of MFIP-S before January 1, 1998. A county that does 91.26 so is eligible for a bonus payment as specified under this 91.27 subdivision. For each participant that is engaged, prior to 91.28 January 1, in job search under section 256J.52, subdivision 3, 91.29 in activities that are part of an employment plan under section 91.30 256J.52, subdivision 5, or in activities that are part of a 91.31 safety plan under section 256J.52, subdivision 6, the county is 91.32 eligible for a bonus payment of $100. The commissioner must add 91.33 any bonus payments earned under this subdivision to the county's 91.34 employment and training services allocation for fiscal year 91.35 1998. Bonus payments must not supplant, and must be in addition 91.36 to, a county's allocation under section 256J.62. 92.1 Subd. 6. [COUNTY PLAN.] Each county agency shall prepare 92.2 and submit a plan as specified in section 268.88. 92.3 Subd. 7. [COUNTY DUTY TO ENSURE EMPLOYMENT AND TRAINING 92.4 CHOICES FOR PARTICIPANTS.] Each county, or group of counties 92.5 working cooperatively, shall make available to participants the 92.6 choice of at least two employment and training service providers 92.7 as defined under section 256J.49, subdivision 4, except in 92.8 counties utilizing workforce centers that use multiple 92.9 employment providers, offer multiple services options under a 92.10 collaborative effort and can document that participants have 92.11 choice among employment and training services designed to meet 92.12 specialized needs. 92.13 Subd. 8. [EXCEPTION; FINANCIAL HARDSHIP.] Notwithstanding 92.14 subdivision 7, a county that demonstrates in the plan required 92.15 under subdivision 6 that the provision of alternative employment 92.16 and training service providers would result in financial 92.17 hardship for the county is not required to make available more 92.18 than one employment and training provider. 92.19 Section 38 is effective January 1, 1998, except the 92.20 transitional provision in section 72 applies. 92.21 Sec. 39. [256J.51] [EMPLOYMENT AND TRAINING SERVICE 92.22 PROVIDER; ALTERNATE APPROVAL PROCESS.] 92.23 Subdivision 1. [PROVIDER APPLICATION.] An employment and 92.24 training service provider that is not included in a county's 92.25 plan under section 256J.50, subdivision 6, because the county 92.26 has demonstrated financial hardship under subdivision 7 of that 92.27 section, may appeal its exclusion to the commissioner of 92.28 economic security under this section. 92.29 Subd. 2. [APPEAL; ALTERNATE APPROVAL.] (a) An employment 92.30 and training service provider that is not included by a county 92.31 agency in the plan under section 256J.50, subdivision 6, and 92.32 that meets the criteria in paragraph (b), may appeal its 92.33 exclusion to the commissioner of economic security, and may 92.34 request alternative approval by the commissioner of economic 92.35 security to provide services in the county. 92.36 (b) An employment and training services provider that is 93.1 requesting alternative approval must demonstrate to the 93.2 commissioner that the provider meets the standards specified in 93.3 section 268.871, subdivision 1, paragraph (b), except that the 93.4 provider's past experience may be in services and programs 93.5 similar to those specified in section 268.871, subdivision 1, 93.6 paragraph (b). 93.7 Subd. 3. [COMMISSIONER'S REVIEW.] The commissioner must 93.8 act on a request for alternative approval under this section 93.9 within 30 days of the receipt of the request. If after 93.10 reviewing the provider's request, and the county's plan 93.11 submitted under section 256J.50, subdivision 6, the commissioner 93.12 determines that the provider meets the criteria under 93.13 subdivision 2, paragraph (b), and that approval of the provider 93.14 would not cause financial hardship to the county, the county 93.15 must submit a revised plan under subdivision 4 that includes the 93.16 approved provider. 93.17 Subd. 4. [REVISED PLAN REQUIRED.] The commissioner of 93.18 economic security must notify the county agency when the 93.19 commissioner grants an alternative approval to an employment and 93.20 training service provider under subdivision 2. Upon receipt of 93.21 the notice, the county agency must submit a revised plan under 93.22 section 256J.50, subdivision 6, that includes the approved 93.23 provider. The county has 90 days from the receipt of the 93.24 commissioner's notice to submit the revised plan. 93.25 Subd. 5. [REVIEW NOT REQUIRED.] Notwithstanding 93.26 subdivision 3, once a county meets the requirements of section 93.27 256J.50, subdivision 7, the commissioner may, but is not 93.28 required to, act on a request by an employment and training 93.29 services provider for alternative approval in that county. 93.30 Section 39 is effective January 1, 1998, except the 93.31 transitional provision in section 72 applies. 93.32 Sec. 40. [256J.515] [OVERVIEW OF EMPLOYMENT AND TRAINING 93.33 SERVICES.] 93.34 During the first meeting with participants, job counselors 93.35 must provide an overview of employment and training services 93.36 that stresses the necessity and opportunity of immediate 94.1 employment, outlines the job search resources offered, explains 94.2 the requirements to comply with an employment plan and the 94.3 consequences for failing to comply, and explains the services 94.4 that are available to support job search and work. 94.5 Section 40 is effective January 1, 1998, except the 94.6 transitional provision in section 72 applies. 94.7 Sec. 41. [256J.52] [ASSESSMENTS; PLANS.] 94.8 Subdivision 1. [APPLICATION LIMITED TO CERTAIN 94.9 PARTICIPANTS.] This section applies to participants receiving 94.10 MFIP-S assistance who are not exempt under section 256J.56, and 94.11 to caregivers who volunteer for employment and training services 94.12 under section 256J.50. 94.13 Subd. 2. [INITIAL ASSESSMENT.] (a) The job counselor must, 94.14 with the cooperation of the participant, assess the 94.15 participant's ability to obtain and retain employment. This 94.16 initial assessment must include a review of the participant's 94.17 education level, prior employment or work experience, 94.18 transferable work skills, and existing job markets. 94.19 (b) In assessing the participant, the job counselor must 94.20 determine if the participant needs refresher courses for 94.21 professional certification or licensure. If one or more 94.22 refresher courses are needed, the job search support plan under 94.23 subdivision 3 must include the courses necessary to obtain the 94.24 certification or licensure, in addition to other work 94.25 activities, provided the combination of the refresher courses 94.26 and other work activities are at least for 40 hours per week. 94.27 After obtaining the license or certificate, the participant must 94.28 comply with the provisions of subdivision 5. 94.29 (c) If a participant can demonstrate to the satisfaction of 94.30 the county agency that lack of proficiency in English is a 94.31 barrier to obtaining suitable employment, the provider may 94.32 include participation in an intensive English as a second 94.33 language program, in the participant's employment plan under 94.34 subdivision 5. 94.35 (d) A participant who, at the time of the initial 94.36 assessment under this section, is in an education program that 95.1 satisfies the criteria in section 256J.53, may, with the 95.2 approval of the job counselor, postpone job search. The 95.3 participant must be assessed under subdivision 4, and an 95.4 employment plan that includes completion of the education 95.5 program must be developed. 95.6 Subd. 3. [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 95.7 after the initial assessment, the job counselor determines that 95.8 the participant possesses sufficient skills that the participant 95.9 is likely to succeed in obtaining suitable employment, the 95.10 participant must conduct job search for a period of up to four 95.11 weeks, for the number of hours per week required under federal 95.12 participation standards or 30 hours per week, whichever is 95.13 greater. The participant must accept any offer of suitable 95.14 employment. The job counselor and participant must develop a 95.15 job search support plan which specifies, at a minimum: whether 95.16 the job search is to be supervised or unsupervised; support 95.17 services that will be provided while the participant conducts 95.18 job search activities; the refresher courses necessary for 95.19 professional certification or licensure, if applicable; and how 95.20 frequently the participant must report to the job counselor on 95.21 the status of the participant's job search activities. 95.22 (b) If at the end of four weeks the participant has not 95.23 obtained suitable employment, the job counselor must review the 95.24 participant's job search support plan and must either direct the 95.25 participant to conduct an additional four weeks of job search or 95.26 must conduct a secondary assessment of the participant under 95.27 subdivision 4. A participant shall not be required to conduct 95.28 more than a total of eight weeks of job search under this 95.29 subdivision. 95.30 Subd. 4. [SECONDARY ASSESSMENT.] (a) The job counselor 95.31 must conduct a secondary assessment for those participants who: 95.32 (1) in the judgment of the job counselor, have barriers to 95.33 obtaining and retaining employment that will not be overcome 95.34 with a job search support plan under subdivision 3; or 95.35 (2) have completed at least four weeks of job search under 95.36 subdivision 3 without obtaining suitable employment; or 96.1 (3) have not received a secondary assessment, are working 96.2 at least 20 hours per week, and the participant, job counselor, 96.3 or county agency requests a secondary assessment. 96.4 (b) In the secondary assessment the job counselor must 96.5 evaluate the participant's skills and prior work experience, 96.6 family circumstances, interests and abilities, need for 96.7 preemployment activities, supportive or educational services, 96.8 and the extent of any barriers to employment. The job counselor 96.9 must use the information gathered through the secondary 96.10 assessment to develop an employment plan under subdivision 5. 96.11 Subd. 5. [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 96.12 secondary assessment under subdivision 4, the job counselor and 96.13 the participant must develop an employment plan for the 96.14 participant that includes specific activities that are designed 96.15 to move the participant along the most direct path to 96.16 unsubsidized employment. 96.17 If the participant has an employment goal which can best be 96.18 met with additional education or training and is expected to 96.19 result in higher wages than the participant could earn without 96.20 the additional education or training, the participant, in 96.21 consultation with the job counselor, may propose an employment 96.22 plan that includes activities approved under the criteria of 96.23 section 256J.53. 96.24 The employment plan must list the specific steps that will 96.25 be taken to obtain employment and a timetable for completion of 96.26 each of the steps. The job counselor and the participant must 96.27 sign the developed plan to indicate agreement between the job 96.28 counselor and the participant on the contents of the plan. 96.29 (b) For a parent in a two-parent family who is required to 96.30 participate in the employment and training services component of 96.31 MFIP-S, activities that are considered for the participant's 96.32 plan must generally be limited to those listed in section 96.33 256J.49, subdivision 12, clauses (1) to (17). Activities listed 96.34 in clauses (18) to (26) of that subdivision may be included on 96.35 an exception basis. 96.36 Subd. 6. [SAFETY PLAN.] Notwithstanding subdivisions 1 to 97.1 5, a participant who is a victim of domestic violence and who 97.2 agrees to develop or has developed a safety plan meeting the 97.3 definition under section 256J.49, subdivision 11, is deferred 97.4 from the requirements of this section and sections 256J.54 and 97.5 256J.55 for a period three months from the date the participant 97.6 agreed to develop the plan. A participant deferred under this 97.7 subdivision must submit a safety plan status report to the 97.8 county agency on a quarterly basis. Based on a review of the 97.9 status report, the county agency may renew the participant's 97.10 deferral each quarter, provided the personal safety of the 97.11 participant is still at risk and the participant is complying 97.12 with the safety plan. A participant who is deferred under this 97.13 subdivision may be deferred for a total of 12 months under a 97.14 safety plan, provided the individual is complying with the terms 97.15 of the plan. 97.16 Subd. 7. [MINOR PARENTS; ASSESSMENT.] An MFIP-S caregiver 97.17 who is under the age of 20 must be assessed and have a plan 97.18 developed as provided in section 256J.54. 97.19 Subd. 8. [REVISION OF PLAN.] If the employee has lost or 97.20 quit a job with good cause, the job counselor must ascertain the 97.21 reason for the job loss and work with the participant to amend 97.22 the job search support plan or employment plan, whichever is in 97.23 effect, as necessary to address the problem. If a job search 97.24 support plan is in effect, the participant, county agency, or 97.25 job counselor may request a secondary assessment at this time. 97.26 Section 41 is effective January 1, 1998, except the 97.27 transitional provision in section 72 applies. 97.28 Sec. 42. [256J.53] [POST-SECONDARY EDUCATION; LIMITATIONS 97.29 ON APPROVAL, JOB SEARCH REQUIREMENT.] 97.30 Subdivision 1. [LENGTH OF PROGRAM.] In order for a 97.31 post-secondary education or training program to be approved work 97.32 activity as defined in section 256J.49, subdivision 13, clause 97.33 (18), it must be a program lasting 12 months or less, and the 97.34 participant must meet the requirements of subdivisions 2 and 3. 97.35 A program lasting up to 24 months may be approved on an 97.36 exception basis if the conditions specified in subdivisions 2 to 98.1 4 are met. A participant may not be approved for more than a 98.2 total of 24 months of post-secondary education or training, 98.3 including any months of education or training in a STRIDE or 98.4 ACCESS plan that is continued under section 256J.50, subdivision 98.5 3a. 98.6 Subd. 2. [DOCUMENTATION SUPPORTING PROGRAM.] In order for 98.7 a post-secondary education or training program to be an approved 98.8 activity in a participant's employment plan, the participant or 98.9 the employment and training service provider must provide 98.10 documentation that: 98.11 (1) the participant's employment plan identifies specific 98.12 goals that can only be met with the additional education or 98.13 training; 98.14 (2) there are suitable employment opportunities that 98.15 requires the specific education or training in the area in which 98.16 the participant resides or is willing to reside; 98.17 (3) the education or training will result in significantly 98.18 higher wages for the participant than the participant could earn 98.19 without the education or training; 98.20 (4) the participant can meet the requirements for admission 98.21 into the program; and 98.22 (5) there is a reasonable expectation that the participant 98.23 will complete the training program based on such factors as the 98.24 participant's MFIP-S assessment, previous education, training, 98.25 and work history; current motivation; and changes in previous 98.26 circumstances. 98.27 Subd. 3. [SATISFACTORY PROGRESS REQUIRED.] In order for a 98.28 post-secondary education or training program to be an approved 98.29 activity in a participant's employment plan, the participant 98.30 must maintain satisfactory progress in the program. 98.31 "Satisfactory progress" in an education or training program 98.32 means the participant remains in good standing after completion 98.33 of the second grading period, and maintains at least a 98.34 cumulative grade point average of C or its equivalent while the 98.35 participant is enrolled in the program, as defined by the 98.36 education or training institution, and the participant meets the 99.1 requirements of the participant's employment plan. 99.2 Subd. 4. [REPAYMENT OF EMPLOYMENT AND TRAINING 99.3 ASSISTANCE.] In order for a post-secondary education or training 99.4 program lasting between 13 and 24 months to be an approved 99.5 activity in a participant's employment plan, the participant 99.6 must maintain satisfactory progress in the program and must 99.7 agree to repay the amount of employment and training funds paid 99.8 by the county to support the individual's participation in each 99.9 month of an education or training program after the 12th month 99.10 of the program in the participant's employment plan. Assistance 99.11 obtained by the participant through the federal Pell grant 99.12 program or other federal or state programs of higher education 99.13 assistance must be excluded from the amount to be repaid by the 99.14 participant. The participant and the county agency must develop 99.15 a mutually acceptable repayment plan. The repayment plan must 99.16 not assess any interest charges on the cost of the funds to be 99.17 repaid. The loan is considered to be in repayment status when: 99.18 (1) the participant completes the program and obtains 99.19 employment that pays annual wages that are at least equal to 150 99.20 percent of the federal poverty level; or 99.21 (2) the participant leaves the program before completion of 99.22 the program and obtains employment that pays annual wages that 99.23 are at least equal to 150 percent of the federal poverty level. 99.24 Subd. 5. [JOB SEARCH AFTER COMPLETION OF POST-SECONDARY 99.25 EDUCATION OR TRAINING.] Regardless of the length of the program, 99.26 if a participant's employment plan includes a post-secondary 99.27 education or training program, the plan must include the 99.28 anticipated completion date of the program. At the time the 99.29 education or training is completed, the participant must 99.30 participate in job search. If after three months of job search 99.31 the participant does not find a job that is consistent with the 99.32 participant's employment goals, the participant must accept any 99.33 offer of suitable employment. 99.34 Section 42 is effective January 1, 1998, except the 99.35 transitional provision in section 72 applies. 99.36 Sec. 43. [256J.54] [MINOR PARENTS; EMPLOYMENT PLAN.] 100.1 Subdivision 1. [ASSESSMENT OF EDUCATIONAL PROGRESS AND 100.2 NEEDS.] The county agency must document the educational level of 100.3 each MFIP-S caregiver who is under the age of 20 and determine 100.4 if the caregiver has obtained a high school diploma or its 100.5 equivalent. If the caregiver has not obtained a high school 100.6 diploma or its equivalent, and is not exempt from the 100.7 requirement to attend school under subdivision 5, the county 100.8 agency must complete an individual assessment for the 100.9 caregiver. The assessment must be performed as soon as possible 100.10 but within 30 days of determining MFIP-S eligibility for the 100.11 caregiver. The assessment must provide an initial examination 100.12 of the caregiver's educational progress and needs, literacy 100.13 level, child care and supportive service needs, family 100.14 circumstances, skills, and work experience. In the case of a 100.15 caregiver under the age of 18, the assessment must also consider 100.16 the results of either the caregiver's or the caregiver's minor 100.17 child's child and teen checkup under Minnesota Rules, parts 100.18 9505.0275 and 9505.1693 to 9505.1748, if available, and the 100.19 effect of a child's development and educational needs on the 100.20 caregiver's ability to participate in the program. The county 100.21 agency must advise the caregiver that the caregiver's first goal 100.22 must be to complete an appropriate educational option if one is 100.23 identified for the caregiver through the assessment and, in 100.24 consultation with educational agencies, must review the various 100.25 school completion options with the caregiver and assist in 100.26 selecting the most appropriate option. 100.27 Subd. 2. [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 100.28 PLAN.] For caregivers who are under age 18, the assessment under 100.29 subdivision 1 and the employment plan under subdivision 3 must 100.30 be completed by the social services agency under section 100.31 257.33. For caregivers who are age 18 or 19, the assessment 100.32 under subdivision 1 and the employment plan under subdivision 3 100.33 must be completed by the job counselor. The social services 100.34 agency or the job counselor shall consult with representatives 100.35 of educational agencies that are required to assist in 100.36 developing educational plans under section 126.235. 101.1 Subd. 3. [EDUCATIONAL OPTION DEVELOPED.] If the job 101.2 counselor or county social services agency identifies an 101.3 appropriate educational option, it must develop an employment 101.4 plan which reflects the identified option. The plan must 101.5 specify that participation in an educational activity is 101.6 required, what school or educational program is most 101.7 appropriate, the services that will be provided, the activities 101.8 the caregiver will take part in, including child care and 101.9 supportive services, the consequences to the caregiver for 101.10 failing to participate or comply with the specified 101.11 requirements, and the right to appeal any adverse action. The 101.12 employment plan must, to the extent possible, reflect the 101.13 preferences of the caregiver. 101.14 Subd. 4. [NO APPROPRIATE EDUCATIONAL OPTION.] If the job 101.15 counselor determines that there is no appropriate educational 101.16 option for a caregiver who is age 18 or 19, the job counselor 101.17 must develop an employment plan, as defined in section 256J.49, 101.18 subdivision 5, for the caregiver. If the county social services 101.19 agency determines that school attendance is not appropriate for 101.20 a caregiver under age 18, the county agency shall refer the 101.21 caregiver to social services for services as provided in section 101.22 257.33. 101.23 Subd. 5. [SCHOOL ATTENDANCE REQUIRED.] (a) Notwithstanding 101.24 the provisions of section 256J.56, minor parents, or 18- or 101.25 19-year-old parents without a high school diploma or its 101.26 equivalent must attend school unless: 101.27 (1) transportation services needed to enable the caregiver 101.28 to attend school are not available; 101.29 (2) licensed or legal nonlicensed child care services 101.30 needed to enable the caregiver to attend school are not 101.31 available; 101.32 (3) the caregiver is ill or incapacitated seriously enough 101.33 to prevent attendance at school; or 101.34 (4) the caregiver is needed in the home because of the 101.35 illness or incapacity of another member of the household. This 101.36 includes a caregiver of a child who is younger than six weeks of 102.1 age. 102.2 (b) The caregiver must be enrolled in a secondary school 102.3 and meeting the school's attendance requirements. An enrolled 102.4 caregiver is considered to be meeting the attendance 102.5 requirements when the school is not in regular session, 102.6 including during holiday and summer breaks. 102.7 Section 43 is effective January 1, 1998, except the 102.8 transitional provision in section 72 applies. 102.9 Sec. 44. [256J.55] [PARTICIPANT REQUIREMENTS, RIGHTS, AND 102.10 EXPECTATIONS.] 102.11 Subdivision 1. [COMPLIANCE WITH EMPLOYMENT PLAN; SUITABLE 102.12 EMPLOYMENT.] (a) Each MFIP-S participant must comply with the 102.13 terms of the participant's job search support plan or employment 102.14 plan. When the participant has completed the steps listed in 102.15 the employment plan, the participant must not refuse any offer 102.16 of suitable employment. The participant may choose to accept an 102.17 offer of suitable employment before the participant has 102.18 completed the steps of the employment plan. 102.19 (b) For a participant under the age of 20 who is without a 102.20 high school diploma or general educational development diploma, 102.21 the requirement to comply with the terms of the employment plan 102.22 means the participant must meet the requirements of section 102.23 256J.54. 102.24 (c) Failure to develop or comply with a job search support 102.25 plan or employment plan, or quitting suitable employment without 102.26 good cause, shall result in the imposition of a sanction as 102.27 specified in sections 256J.57 and 256J.46. 102.28 (d) Notwithstanding paragraph (a), a participant who has 102.29 completed a post-secondary education or training program may 102.30 take up to three months to find a job that is consistent with 102.31 the participant's employment goal before the participant is 102.32 required to accept any offer of suitable employment. 102.33 Subd. 2. [DUTY TO REPORT.] The participant must inform the 102.34 job counselor within three working days regarding any changes 102.35 related to the participant's employment status. 102.36 Subd. 3. [MOVE TO A DIFFERENT COUNTY.] MFIP-S applicants 103.1 or recipients who move to a different county in Minnesota and 103.2 are required to participate in employment and training services 103.3 are subject to the requirements of the destination county. An 103.4 employment plan that was developed in the county of origin may 103.5 be continued in the destination county if both the destination 103.6 county and the participant agree to do so. 103.7 Subd. 4. [CHOICE OF PROVIDER.] A participant must be able 103.8 to choose from at least two employment and training service 103.9 providers, unless the county has demonstrated to the 103.10 commissioner that the provision of multiple employment and 103.11 training service providers would result in financial hardship 103.12 for the county, or the county is utilizing a workforce center as 103.13 specified in section 256J.50, subdivision 7. 103.14 Subd. 5. [OPTION TO UTILIZE EXISTING PLAN.] If a 103.15 participant is already complying with a job search support or 103.16 employment plan that was developed for a different program, the 103.17 participant may utilize that plan and that program's services, 103.18 subject to the requirements of subdivision 3, to be in 103.19 compliance with sections 256J.52 to 256J.57 so long as the plan 103.20 meets, or is modified to meet, the requirements of those 103.21 sections. 103.22 Section 44 is effective January 1, 1998, except the 103.23 transitional provision in section 72 applies. 103.24 Sec. 45. [256J.56] [EMPLOYMENT AND TRAINING SERVICES 103.25 COMPONENT; EXEMPTIONS.] 103.26 An MFIP-S caregiver is exempt from the requirements of 103.27 sections 256J.52 to 256J.55 if the caregiver belongs to any of 103.28 the following groups: 103.29 (1) individuals who are age 60 or older; 103.30 (2) individuals who are suffering from a professionally 103.31 certified permanent or temporary illness, injury, or incapacity 103.32 which is expected to continue for more than 30 days and which 103.33 prevents the person from obtaining or retaining employment. 103.34 Persons in this category with a temporary illness, injury, or 103.35 incapacity must be reevaluated every 30 days, unless the 103.36 certification specifies a different length of time before 104.1 reevaluation; 104.2 (3) caregivers whose presence in the home is required 104.3 because of the professionally certified illness or incapacity of 104.4 another member in the household; 104.5 (4) women who are pregnant, if the pregnancy has resulted 104.6 in a professionally certified incapacity that prevents the woman 104.7 from obtaining or retaining employment; 104.8 (5) caregivers of a child under the age of 12 weeks who 104.9 personally provide full-time care for the child. In two-parent 104.10 households, only one parent or other relative may qualify for 104.11 this exemption; 104.12 (6) individuals employed at least 40 hours per week or at 104.13 least 30 hours per week and engaged in job search for at least 104.14 an additional ten hours per week; 104.15 (7) individuals experiencing a personal or family crisis 104.16 that is professionally certified to make them incapable of 104.17 participating in the program, as determined by the county 104.18 agency. Persons in this category must be reevaluated every 60 104.19 days; or 104.20 (8) second parents in two-parent families, provided the 104.21 second parent is employed for 20 or more hours per week. 104.22 A caregiver who is exempt under clause (5) must enroll in 104.23 and attend an early childhood and family education class, a 104.24 parenting class, or some similar activity during the period of 104.25 time the caregiver is exempt under this section. 104.26 Section 45 is effective January 1, 1998, except the 104.27 transitional provision in section 72 applies. 104.28 Sec. 46. [256J.57] [GOOD CAUSE; FAILURE TO COMPLY; NOTICE; 104.29 CONCILIATION CONFERENCE.] 104.30 Subdivision 1. [GOOD CAUSE FOR FAILURE TO COMPLY.] (a) The 104.31 county agency shall not impose a sanction under section 256J.46 104.32 if the county agency or the job counselor determines that the 104.33 participant has good cause for failing to comply with the 104.34 requirements of sections 256J.52 to 256J.55. Good cause exists 104.35 when: 104.36 (1) needed child care is not available; 105.1 (2) the job does not meet the definition of suitable 105.2 employment under section 256J.49; 105.3 (3) the participant is ill or injured; 105.4 (4) a family member is ill or disabled and needs care by 105.5 the participant that prevents the participant from complying 105.6 with the employment plan; 105.7 (5) the participant is unable to secure necessary 105.8 transportation; 105.9 (6) the participant is in an emergency situation that 105.10 prevents compliance with the job search support or employment 105.11 plan; 105.12 (7) the schedule of compliance with the job search support 105.13 or employment plan conflicts with judicial proceedings; 105.14 (8) the participant is already participating in acceptable 105.15 work activities; 105.16 (9) the employment plan requires an educational program for 105.17 a caregiver under age 20, but the educational program is not 105.18 available in the school district; 105.19 (10) activities identified in the job search support or 105.20 employment plan are not available; 105.21 (11) the participant is willing to accept suitable 105.22 employment, but suitable employment is not available; and 105.23 (12) the participant documents other verifiable impediments 105.24 to compliance with the job search support or employment plan 105.25 that are beyond the participant's control. 105.26 (b) The job search support plan or employment plan of a 105.27 participant who has been granted a good cause exception under 105.28 this section must be reviewed by the job counselor or county 105.29 agency, and must be revised as appropriate to improve the 105.30 participant's ability to comply with the plan requirements, so 105.31 that the participant will be less likely to make another good 105.32 cause claim under this section. 105.33 Subd. 2. [NOTICE OF INTENT TO SANCTION.] (a) When a 105.34 participant fails without good cause to comply with the 105.35 requirements of sections 256J.52 to 256J.55, the job counselor 105.36 or the county agency must provide a notice of intent to sanction 106.1 to the participant specifying the program requirements that were 106.2 not complied with, informing the participant that the county 106.3 agency will impose the sanctions specified in section 256J.46, 106.4 and informing the participant of the opportunity to request a 106.5 conciliation conference as specified in paragraph (b). The 106.6 notice must also state that the participant's continuing 106.7 noncompliance with the specified requirements for more than one 106.8 month will result in additional sanctions under section 256J.46, 106.9 without the need for additional notices or conciliation 106.10 conferences under this subdivision. If the job counselor 106.11 provides the required notice, the job counselor must 106.12 simultaneously notify the county agency that the participant has 106.13 failed to comply and request that the county agency impose the 106.14 sanctions in section 256J.46. The county must then send a 106.15 notice of adverse action to the participant informing the 106.16 participant of the sanction that will be imposed, the reasons 106.17 for the sanction, the effective date of the sanction, and the 106.18 participant's right to have a fair hearing under section 256J.40. 106.19 (b) The participant may request a conciliation conference 106.20 by sending a written request, by making a telephone request, or 106.21 by making an in-person request. The request must be received 106.22 within ten calendar days of the date the county agency mailed 106.23 the ten-day notice of intent to sanction. If a timely request 106.24 for a conciliation is received, the county agency's service 106.25 provider must conduct the conference within five days of the 106.26 request. The job counselor's supervisor, or a designee of the 106.27 supervisor, must review the outcome of the conciliation 106.28 conference. If the conciliation conference resolves the 106.29 noncompliance, the job counselor must promptly inform the county 106.30 agency and request withdrawal of the sanction notice. 106.31 (c) Upon receiving a sanction notice, the participant may 106.32 request a fair hearing under section 256J.40, without exercising 106.33 the option of a conciliation conference. In such cases, the 106.34 county agency shall not require the participant to engage in a 106.35 conciliation conference prior to the fair hearing. 106.36 (d) If the participant requests a fair hearing or a 107.1 conciliation conference, sanctions will not be imposed until 107.2 there is a determination of noncompliance. Sanctions must be 107.3 imposed as provided in section 256J.46. 107.4 Section 46 is effective January 1, 1998, except the 107.5 transitional provision in section 72 applies. 107.6 Sec. 47. [256J.60] [COUNTY EMPLOYMENT AND TRAINING 107.7 PERFORMANCE STANDARDS.] 107.8 Subdivision 1. [TWO-STAGE SET OF PERFORMANCE STANDARDS.] 107.9 The department shall adopt a two-stage set of employment and 107.10 training services performance standards. The first-stage 107.11 standards are mandatory for all counties and are intended to 107.12 enable the state to achieve the federal participation 107.13 standards. The second-stage standards are intended to reward 107.14 counties for performance that exceeds the mandatory standards. 107.15 Only those counties that meet the first-stage standards are 107.16 eligible for the second-stage standards. 107.17 Subd. 2. [FIRST-STAGE PERFORMANCE STANDARDS.] Each county 107.18 must independently meet the federal participation standards. 107.19 Failure to meet the federal participation standards will result 107.20 in a sanction as specified in subdivision 3. Only counties that 107.21 meet the federal participation standards are eligible for 107.22 incentives under subdivision 5. 107.23 Subd. 3. [APPORTIONMENT OF FEDERAL PARTICIPATION STANDARDS 107.24 SANCTIONS.] (a) If the state as a whole fails to achieve the 107.25 federal participation standards specified in section 256J.49, 107.26 subdivision 6, and is sanctioned by the federal government, the 107.27 fiscal penalty will be apportioned to the state and the counties 107.28 using the following method: 107.29 (1) the full sanction amount shall be multiplied by 50 107.30 percent. This is the state's share of the sanction; 107.31 (2) the nonstate share of the sanction shall be distributed 107.32 across all counties in direct proportion to their employment and 107.33 training services allocation for the year for which the sanction 107.34 was imposed. For counties that did not meet the federal 107.35 participation standards, this amount is the fiscal penalty that 107.36 shall be imposed on those counties; 108.1 (3) the amount computed in clause (2) shall be divided by 108.2 two. This is the fiscal penalty that shall be imposed on 108.3 counties that met the federal participation standards for the 108.4 year for which the sanction was imposed; 108.5 (4) under any circumstance, the sanction applied to any 108.6 county shall not exceed one-third of its employment and training 108.7 services allocation for the year for which the sanction was 108.8 imposed; and 108.9 (5) after applying clauses (1) to (4), any remaining 108.10 unattributed portion of the federal sanction shall be assumed by 108.11 the state. 108.12 (b) A county that fails to achieve the participation 108.13 standards specified in section 256J.49, subdivision 6, will be 108.14 subject to a review of its employment and training services 108.15 program under section 268.86, subdivision 2. The commissioners 108.16 of human services and economic security must work with the 108.17 county agency to assess and revise the county's programs, in 108.18 order to improve the county's ability to achieve the 108.19 participation standards in the following year. 108.20 (c) If, in a given year, the state as a whole has met the 108.21 participation standards specified in section 256J.49, 108.22 subdivision 6, a county for which the given year is the second 108.23 consecutive year in which the performance standards were not met 108.24 shall, in addition to a department review of the county program, 108.25 be subject to a fiscal sanction of an amount equal to 20 percent 108.26 of the total employment and training services allocation for the 108.27 second year in which the standards were not met. 108.28 (d) The sanction, as specified in paragraph (a) or (c), 108.29 shall be adjusted to account for variations in county 108.30 demographic and economic conditions. The commissioner shall 108.31 develop a method for this adjustment by January 1, 1998. 108.32 (e) A county may not pay its share of any federal or 108.33 state-imposed fiscal sanction from the county's employment and 108.34 training services allocation. Each county must maintain 108.35 employment and training services funding at the full allocation 108.36 level, regardless of any penalties that are imposed. 109.1 Subd. 4. [SECOND-STAGE PERFORMANCE STANDARDS.] (a) 109.2 Beginning July 1, 1998, and each quarter thereafter, the 109.3 commissioner of human services shall inform all counties of each 109.4 county's performance on the following measures: 109.5 (i) MFIP-S caseload reduction; 109.6 (ii) average placement wage rate; 109.7 (iii) rate of job retention after three months; 109.8 (iv) placement rate into unsubsidized jobs; and 109.9 (v) federal participation requirements as specified in 109.10 section 256J.49, subdivision 6. 109.11 (b) By July 1, 1999, the commissioner shall establish 109.12 performance standards for each of the measures in this 109.13 subdivision, and recommend to the legislature any changes to the 109.14 measures specified in this subdivision that would ensure 109.15 performance standards are developed to achieve the purposes of 109.16 this section. 109.17 Subd. 5. [INCENTIVE FUND.] (a) Beginning July 1, 2000, and 109.18 in each subsequent state fiscal year, the commissioner shall 109.19 withhold from allocation to counties five percent of the total 109.20 annual MFIP-S employment and training services appropriation in 109.21 an incentive fund to be awarded to counties that have met the 109.22 standards specified under subdivision 4 during the previous 109.23 fiscal year. 109.24 (b) Twenty percent of the total incentive fund shall be 109.25 reserved for each of the five measures specified in subdivision 109.26 4. On July 1, 2000, all counties that have met a given standard 109.27 during the previous state fiscal year shall share the incentive 109.28 fund monies for that standard. Each county's share of a 109.29 standard's incentive money shall be the same percent as its 109.30 MFIP-S employment and training services allocation for the 109.31 previous state fiscal year is of the sum of the allocations to 109.32 the counties that qualify to share in the incentive for a given 109.33 measure. 109.34 (c) At the discretion of the commissioner, during the first 109.35 two years of the incentive fund, incentive fund money may be 109.36 used as a contingency fund to cover unanticipated county costs 110.1 of implementing the employment and training services component 110.2 of MFIP-S. 110.3 (d) If no county achieves the second-stage standards, the 110.4 entire incentive fund, minus any amount expended under paragraph 110.5 (c), shall be allocated to all counties in direct proportion to 110.6 their original employment and training services allocation. 110.7 Section 47 is effective January 1, 1998, except the 110.8 transitional provision in section 72 applies. 110.9 Sec. 48. [256J.61] [REPORTING REQUIREMENTS.] 110.10 The commissioner of human services, in cooperation with the 110.11 commissioner of economic security, shall develop reporting 110.12 requirements for county agencies and employment and training 110.13 service providers according to section 256.01, subdivision 2, 110.14 paragraph (17). Reporting requirements must, to the extent 110.15 possible, use existing client tracking systems and must be 110.16 within the limits of funds available. The requirements must 110.17 include summary information necessary for state agencies and the 110.18 legislature to evaluate the effectiveness of the services. 110.19 Section 48 is effective January 1, 1998, except the 110.20 transitional provision in section 72 applies. 110.21 Sec. 49. [256J.62] [ALLOCATION OF COUNTY EMPLOYMENT AND 110.22 TRAINING SERVICES BLOCK GRANT.] 110.23 Subdivision 1. [ALLOCATION.] Money appropriated for MFIP-S 110.24 employment and training services must be allocated to counties 110.25 as specified in this section. 110.26 Subd. 2. [GUARANTEED FLOOR.] First, money shall be 110.27 allocated to counties in an amount equal to the county's 110.28 guaranteed floor. The county's guaranteed floor shall be 110.29 calculated as follows: 110.30 (1) for fiscal 1998, the guaranteed floor shall be 110.31 calculated by multiplying the county's STRIDE allocation 110.32 received for state fiscal year 1997 by 90 percent; 110.33 (2) for each subsequent fiscal year, the guaranteed floor 110.34 shall be calculated by multiplying the county's MFIP-S 110.35 employment and training services allocation received the 110.36 previous state fiscal year by 90 percent; and 111.1 (3) if the amount of funds available for allocation is less 111.2 than the amount allocated to all counties for the previous 111.3 fiscal year, each county's previous year allocation shall be 111.4 reduced in proportion to the reduction in statewide funding for 111.5 the purpose of establishing the guaranteed floor. 111.6 Subd. 3. [ALLOCATION OF BALANCE OF FUNDS.] If there remain 111.7 funds to allocate after establishing each county's guaranteed 111.8 floor under the provisions in subdivision 2, the balance of 111.9 funds shall be allocated as follows: 111.10 (1) for state fiscal year 1998, the remaining funds shall 111.11 be allocated based on the county's average number of AFDC and 111.12 family general assistance cases as compared to the statewide 111.13 total number of cases. The average number of cases shall be 111.14 based on counts of AFDC and family general assistance cases as 111.15 of March 31, June 30, September 30, and December 31 of calendar 111.16 year 1996; 111.17 (2) for state fiscal year 1999, the remaining funds shall 111.18 be allocated based on the county's average number of AFDC, 111.19 family general assistance, and MFIP-S cases as compared to the 111.20 statewide total number of cases. The average number of cases 111.21 shall be based on counts of AFDC, family general assistance, 111.22 MFIP-R, MFIP, and MFIP-S cases as of March 31, June 30, 111.23 September 30, and December 31 of calendar year 1997; and 111.24 (3) for all subsequent state fiscal years, the remaining 111.25 funds shall be allocated based on the county's average number of 111.26 MFIP-S cases as compared to the statewide total number of 111.27 cases. The average number of cases must be based on counts of 111.28 MFIP-S cases as of March 31, June 30, September 30, and December 111.29 31 of the previous calendar year. 111.30 Subd. 4. [ADMINISTRATIVE ACTIVITIES LIMIT.] No more than 111.31 15 percent of the money allocated under this section may be used 111.32 for administrative activities. 111.33 Subd. 4a. [STRIDE ALLOCATION.] Funds allocated for STRIDE 111.34 services for state fiscal year 1998 are allocated to county 111.35 agencies based on the provisions of statute in effect on June 111.36 30, 1997. At the time that the AFDC program is replaced by the 112.1 Temporary Assistance for Needy Families program under title I of 112.2 Public Law Number 104-193 of the Personal Responsibility and 112.3 Work Opportunity Reconciliation Act of 1996, any unexpended 112.4 balance of a county's STRIDE allocation for that fiscal year 112.5 remains available to the county for operation of MFIP-S 112.6 employment and training services and for the operation of the 112.7 STRIDE program for the MFIP and MFIP-R field trial counties for 112.8 the balance of the fiscal year. These STRIDE funds shall be 112.9 included in the calculation of the next year's MFIP-S employment 112.10 and training allocation under the provisions of subdivision 2. 112.11 Subd. 5. [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 112.12 REFUGEES.] Funds appropriated to cover the costs of bilingual 112.13 employment and training services to refugees shall be allocated 112.14 to county agencies as follows: 112.15 (1) for state fiscal year 1998, the allocation shall be 112.16 based on the county's proportion of the total statewide number 112.17 of AFDC refugee cases in the previous fiscal year. Counties 112.18 with less than one percent of the statewide number of AFDC, 112.19 MFIP-R, or MFIP refugee cases shall not receive an allocation of 112.20 bilingual employment and training services funds; and 112.21 (2) for each subsequent fiscal year, the allocation shall 112.22 be based on the county's proportion of the total statewide 112.23 number of MFIP-S refugee cases in the previous fiscal year. 112.24 Counties with less than one percent of the statewide number of 112.25 MFIP-S refugee cases shall not receive an allocation of 112.26 bilingual employment and training services funds. 112.27 Subd. 6. [WORK LITERACY LANGUAGE PROGRAMS.] Funds 112.28 appropriated to cover the costs of work literacy language 112.29 programs to non-English speaking participants shall be allocated 112.30 to county agencies as follows: 112.31 (1) for state fiscal year 1998, the allocation shall be 112.32 based on the county's proportion of the total statewide number 112.33 of AFDC or MFIP cases in the previous fiscal year where the lack 112.34 of English is a barrier to employment. Counties with less than 112.35 two percent of the statewide number of AFDC or MFIP cases where 112.36 the lack of English is a barrier to employment shall not receive 113.1 an allocation of the work literacy language program funds; and 113.2 (2) for each subsequent fiscal year, the allocation shall 113.3 be based on the county's proportion of the total statewide 113.4 number of MFIP-S cases in the previous fiscal year where the 113.5 lack of English is a barrier to employment. Counties with less 113.6 than two percent of the statewide number of MFIP-S cases where 113.7 the lack of English is a barrier to employment shall not receive 113.8 an allocation of the work literacy language program funds. 113.9 Subd. 7. [REALLOCATION.] The commissioner of human 113.10 services shall review county agency expenditures of MFIP-S 113.11 employment and training services funds at the end of the third 113.12 quarter of the first year of the biennium and each quarter after 113.13 that and may reallocate unencumbered or unexpended money 113.14 appropriated under this section to those county agencies that 113.15 can demonstrate a need for additional money. 113.16 Subd. 8. [CONTINUATION OF CERTAIN SERVICES.] At county 113.17 option and with the agreement of the participant, the provider 113.18 may continue to provide case management, counseling or other 113.19 support services to a participant following the participant's 113.20 achievement of the employment goal, regardless of the 113.21 participant's eligibility for MFIP-S. 113.22 A county may expend funds for a specific employment and 113.23 training service for the duration of that service to a 113.24 participant if the funds are obligated or expended prior to the 113.25 participant losing MFIP-S eligibility. 113.26 Section 49 is effective January 1, 1998, except the 113.27 transitional provision in section 72 applies. 113.28 Sec. 50. [256J.645] [INDIAN TRIBE MFIP-S EMPLOYMENT AND 113.29 TRAINING.] 113.30 Subdivision 1. [AUTHORIZATION TO ENTER INTO 113.31 AGREEMENTS.] The commissioner may enter into agreements with 113.32 federally recognized Indian tribes with a reservation in the 113.33 state to provide MFIP-S employment and training services to 113.34 members of the Indian tribe and to other caregivers who are a 113.35 part of the tribal member's MFIP-S assistance unit. For 113.36 purposes of this section, "Indian tribe" means a tribe, band, 114.1 nation, or other federally recognized group or community of 114.2 Indians. The commissioner may also enter into an agreement with 114.3 a consortium of Indian tribes providing the governing body of 114.4 each Indian tribe in the consortium complies with the provisions 114.5 of this section. 114.6 Subd. 2. [TRIBAL REQUIREMENTS.] The Indian tribe must: 114.7 (1) agree to fulfill the responsibilities provided under 114.8 the employment and training component of MFIP-S regarding 114.9 operation of MFIP-S employment and training services, as 114.10 designated by the commissioner; 114.11 (2) operate its employment and training services program 114.12 within a geographic service area not to exceed the counties 114.13 within which a border of the reservation falls; 114.14 (3) operate its program in conformity with section 13.46 114.15 and any applicable federal regulations in the use of data about 114.16 MFIP-S recipients; 114.17 (4) coordinate operation of its program with the county 114.18 agency, Job Training Partnership Act programs, and other support 114.19 services or employment-related programs in the counties in which 114.20 the tribal unit's program operates; 114.21 (5) provide financial and program participant activity 114.22 recordkeeping and reporting in the manner and using the forms 114.23 and procedures specified by the commissioner and permit 114.24 inspection of its program and records by representatives of the 114.25 state; and 114.26 (6) have the Indian tribe's employment and training service 114.27 provider certified by the commissioner of economic security, or 114.28 approved by the county. 114.29 Subd. 3. [FUNDING.] (a) If the commissioner and an Indian 114.30 tribe are parties to an agreement under this subdivision, the 114.31 agreement may annually provide to the Indian tribe the funding 114.32 amount in clause (1) or (2): 114.33 (1) if the Indian tribe operated a tribal STRIDE program 114.34 during state fiscal year 1997, the amount to be provided is the 114.35 amount the Indian tribe received from the state for operation of 114.36 its tribal STRIDE program in state fiscal year 1997, except that 115.1 the amount provided for a fiscal year may increase or decrease 115.2 in the same proportion that the total amount of state funds 115.3 available for MFIP-S employment and training services increased 115.4 or decreased that fiscal year. No additional funds shall be 115.5 provided to the tribe under this clause for the first year of 115.6 expansion of MFIP beyond the pilot counties; or 115.7 (2) if the Indian tribe did not operate a tribal STRIDE 115.8 program during state fiscal year 1997, the commissioner may 115.9 provide to the Indian tribe for the first year of operations the 115.10 amount determined by multiplying the state allocation for MFIP-S 115.11 employment and training services to each county agency in the 115.12 Indian tribe's service delivery area by the percentage of MFIP-S 115.13 recipients in that county who were members of the Indian tribe 115.14 during the previous state fiscal year. The resulting amount 115.15 shall also be the amount that the commissioner may provide to 115.16 the Indian tribe annually thereafter through an agreement under 115.17 this subdivision, except that the amount provided for a fiscal 115.18 year may increase or decrease in the same proportion that the 115.19 total amount of state funds available for MFIP-S employment and 115.20 training services increased or decreased that fiscal year. No 115.21 additional funds shall be provided to the tribe under this 115.22 clause for the first year of expansion of MFIP beyond the pilot 115.23 counties. 115.24 (b) Indian tribal members receiving MFIP-S benefits and 115.25 residing in the service area of an Indian tribe operating 115.26 employment and training services under an agreement with the 115.27 commissioner must be referred by county agencies in the service 115.28 area to the Indian tribe for employment and training services. 115.29 Section 50 is effective January 1, 1998, except the 115.30 transitional provision in section 72 applies. 115.31 Sec. 51. [256J.65] [THE SELF-EMPLOYMENT INVESTMENT 115.32 DEMONSTRATION PROGRAM (SEID).] 115.33 (a) A caregiver who enrolls and participates in the SEID 115.34 program as specified in section 268.95, may, at county option, 115.35 be exempted from other employment and training participation 115.36 requirements for a period of up to 24 months, except for the 116.1 school attendance requirements as specified in section 256J.54. 116.2 (b) The following income and resource considerations apply 116.3 to SEID participants: 116.4 (1) an unencumbered cash reserve fund, composed of proceeds 116.5 from a SEID business, is not counted against the grant if those 116.6 funds are reinvested in the business and the value of the 116.7 business does not exceed $3,000. The value of the business is 116.8 determined by deducting outstanding encumbrances from retained 116.9 business profit; and 116.10 (2) the purchase of capital equipment and durable goods of 116.11 an amount up to $3,000 during a 24-month project period is 116.12 allowed as a business expense. 116.13 (c) SEID participants are also eligible for employment and 116.14 training services, including child care assistance and 116.15 transportation. 116.16 Section 51 is effective January 1, 1998, except the 116.17 transitional provision in section 72 applies. 116.18 Sec. 52. [256J.66] [ON-THE-JOB TRAINING.] 116.19 Subdivision 1. [ESTABLISHING THE ON-THE-JOB TRAINING 116.20 PROGRAM.] (a) County agencies may develop on-the-job training 116.21 programs for MFIP-S caregivers who are participating in 116.22 employment and training services. A county agency that chooses 116.23 to provide on-the-job training may make payments to employers 116.24 for on-the-job training costs that, during the period of the 116.25 training, must not exceed 50 percent of the wages paid by the 116.26 employer to the participant. The payments are deemed to be in 116.27 compensation for the extraordinary costs associated with 116.28 training participants under this section and in compensation for 116.29 the costs associated with the lower productivity of the 116.30 participants during training. 116.31 (b) Provision of an on-the-job training program under the 116.32 Job Training Partnership Act, in and of itself, does not qualify 116.33 as an on-the-job training program under this section. 116.34 (c) Participants in on-the-job training shall be 116.35 compensated by the employer at the same rates, including 116.36 periodic increases, as similarly situated employees or trainees 117.1 and in accordance with applicable law, but in no event less than 117.2 the federal or applicable state minimum wage, whichever is 117.3 higher. 117.4 Subd. 2. [TRAINING AND PLACEMENT.] (a) County agencies 117.5 shall limit the length of training based on the complexity of 117.6 the job and the caregiver's previous experience and training. 117.7 Placement in an on-the-job training position with an employer is 117.8 for the purpose of training and employment with the same 117.9 employer who has agreed to retain the person upon satisfactory 117.10 completion of training. 117.11 (b) Placement of any participant in an on-the-job training 117.12 position must be compatible with the participant's assessment 117.13 and employment plan under section 256J.52. 117.14 Section 52 is effective January 1, 1998, except the 117.15 transitional provision in section 72 applies. 117.16 Sec. 53. [256J.67] [COMMUNITY WORK EXPERIENCE.] 117.17 Subdivision 1. [ESTABLISHING THE COMMUNITY WORK EXPERIENCE 117.18 PROGRAM.] To the extent of available resources, each county 117.19 agency may establish and operate a work experience component for 117.20 MFIP-S caregivers who are participating in employment and 117.21 training services. This option for county agencies supersedes 117.22 the requirement in section 402(a)(1)(B)(iv) of the Social 117.23 Security Act that caregivers who have received assistance for 117.24 two months and who are not exempt from work requirements must 117.25 participate in a work experience program. The purpose of the 117.26 work experience component is to enhance the caregiver's 117.27 employability and self-sufficiency and to provide meaningful, 117.28 productive work activities. The county shall only use this 117.29 program after exhausting all other employment opportunities. 117.30 The county agency shall not require a caregiver to participate 117.31 in the community work experience program under this section 117.32 unless the caregiver has been given an opportunity to 117.33 participate in other work activities. The county shall only use 117.34 this program after exhausting all other employment 117.35 opportunities. The county agency shall not require a caregiver 117.36 to participate in the community work experience program under 118.1 this section unless the caregiver has been given an opportunity 118.2 to participate in other work activities. 118.3 Subd. 2. [COMMISSIONER'S DUTIES.] The commissioner shall 118.4 assist counties in the design and implementation of these 118.5 components. 118.6 Subd. 3. [EMPLOYMENT OPTIONS.] (a) Work sites developed 118.7 under this section are limited to projects that serve a useful 118.8 public service such as: health, social service, environmental 118.9 protection, education, urban and rural development and 118.10 redevelopment, welfare, recreation, public facilities, public 118.11 safety, community service, services to aged or disabled 118.12 citizens, and child care. To the extent possible, the prior 118.13 training, skills, and experience of a caregiver must be 118.14 considered in making appropriate work experience assignments. 118.15 (b) Structured, supervised volunteer work with an agency or 118.16 organization, which is monitored by the county service provider, 118.17 may, with the approval of the county agency, be used as a work 118.18 experience placement. 118.19 (c) As a condition of placing a caregiver in a program 118.20 under this section, the county agency shall first provide the 118.21 caregiver the opportunity: 118.22 (1) for placement in suitable subsidized or unsubsidized 118.23 employment through participation in a job search; or 118.24 (2) for placement in suitable employment through 118.25 participation in on-the-job training, if such employment is 118.26 available. 118.27 Subd. 4. [EMPLOYMENT PLAN.] (a) The caretaker's employment 118.28 plan must include the length of time needed in the work 118.29 experience program, the need to continue job-seeking activities 118.30 while participating in work experience, and the caregiver's 118.31 employment goals. 118.32 (b) After each six months of a caregiver's participation in 118.33 a work experience job placement, and at the conclusion of each 118.34 work experience assignment under this section, the county agency 118.35 shall reassess and revise, as appropriate, the caregiver's 118.36 employment plan. 119.1 (c) A participant may claim good cause under section 119.2 256J.57 for failing to cooperate with a work experience job 119.3 placement. 119.4 (d) The county agency shall limit the maximum number of 119.5 hours any participant may work under this section to the amount 119.6 of the applicable MFIP-S transitional standard divided by the 119.7 applicable federal or state minimum wage, whichever is higher. 119.8 After a participant has been assigned to a position for nine 119.9 months, the participant may not continue in that assignment 119.10 unless the maximum number of hours a participant works is no 119.11 greater than the amount of the applicable MFIP-S transitional 119.12 standard divided by the rate of pay for individuals employed in 119.13 the same or similar occupations by the same employer at the same 119.14 site. 119.15 Section 53 is effective January 1, 1998, except the 119.16 transitional provision in section 72 applies. 119.17 Sec. 54. [256J.68] [INJURY PROTECTION FOR WORK EXPERIENCE 119.18 PARTICIPANTS.] 119.19 Subdivision 1. [APPLICABILITY.] Payment of any claims 119.20 resulting from an alleged injury or death of a person 119.21 participating in a county or a tribal community work experience 119.22 program that is operated by the county agency or the tribe and 119.23 approved by the commissioner must be determined in accordance 119.24 with this section. This determination method applies to work 119.25 experience programs authorized by the commissioner for persons 119.26 applying for or receiving cash assistance and food stamps, and 119.27 to the Minnesota parent's fair share program and the community 119.28 service program under section 518.551, subdivision 5a, in a 119.29 county with an approved community investment program for 119.30 obligors. 119.31 Subd. 2. [INVESTIGATION OF THE CLAIM.] Claims that are 119.32 subject to this section must be investigated by the county 119.33 agency or the tribal program responsible for supervising the 119.34 work to determine whether the claimed injury occurred, whether 119.35 the claimed medical expenses are reasonable, and whether the 119.36 loss is covered by the claimant's insurance. If insurance 120.1 coverage is established, the county agency or tribal program 120.2 shall submit the claim to the appropriate insurance entity for 120.3 payment. The investigating county agency or tribal program 120.4 shall submit all valid claims, in the amount net of any 120.5 insurance payments, to the department of human services. 120.6 Subd. 3. [SUBMISSION OF CLAIM.] The commissioner shall 120.7 submit all claims for permanent partial disability compensation 120.8 to the commissioner of labor and industry. The commissioner of 120.9 labor and industry shall review all submitted claims and 120.10 recommend to the department of human services an amount of 120.11 compensation comparable to that which would be provided under 120.12 the permanent partial disability compensation schedule of 120.13 section 176.101, subdivision 2a. 120.14 Subd. 4. [CLAIMS LESS THAN $1,000.] The commissioner shall 120.15 approve a claim of $1,000 or less for payment if appropriated 120.16 funds are available, if the county agency or tribal program 120.17 responsible for supervising the work has made the determinations 120.18 required by this section, and if the work program was operated 120.19 in compliance with the safety provisions of this section. The 120.20 commissioner shall pay the portion of an approved claim of 120.21 $1,000 or less that is not covered by the claimant's insurance 120.22 within three months of the date of submission. On or before 120.23 February 1 of each year, the commissioner shall submit to the 120.24 appropriate committees of the senate and the house of 120.25 representatives a list of claims of $1,000 or less paid during 120.26 the preceding calendar year and shall be reimbursed by 120.27 legislative appropriation for any claims that exceed the 120.28 original appropriation provided to the commissioner to operate 120.29 this program. Any unspent money from this appropriation shall 120.30 carry over to the second year of the biennium, and any unspent 120.31 money remaining at the end of the second year shall be returned 120.32 to the state general fund. 120.33 Subd. 5. [CLAIMS MORE THAN $1,000.] On or before February 120.34 1 of each year, the commissioner shall submit to the appropriate 120.35 committees of the senate and the house of representatives a list 120.36 of claims in excess of $1,000 and a list of claims of $1,000 or 121.1 less that were submitted to but not paid by the commissioner, 121.2 together with any recommendations of appropriate compensation. 121.3 These claims shall be heard and determined by the appropriate 121.4 committees of the senate and house of representatives and, if 121.5 approved, must be paid under the legislative claims procedure. 121.6 Subd. 6. [COMPENSATION FOR CERTAIN COSTS.] Compensation 121.7 paid under this section is limited to reimbursement for 121.8 reasonable medical expenses and permanent partial disability 121.9 compensation for disability in like amounts as allowed in 121.10 section 176.101, subdivision 2a. Compensation for injuries 121.11 resulting in death shall include reasonable medical expenses and 121.12 burial expenses in addition to payment to the participant's 121.13 estate in an amount up to $200,000. No compensation shall be 121.14 paid under this section for pain and suffering, lost wages, or 121.15 other benefits provided in chapter 176. Payments made under 121.16 this section shall be reduced by any proceeds received by the 121.17 claimant from any insurance policy covering the loss. For the 121.18 purposes of this section, "insurance policy" does not include 121.19 the medical assistance program authorized under chapter 256B or 121.20 the general assistance medical care program authorized under 121.21 chapter 256D. 121.22 Subd. 7. [EXCLUSIVE PROCEDURE.] The procedure established 121.23 by this section is exclusive of all other legal, equitable, and 121.24 statutory remedies against the state, its political 121.25 subdivisions, or employees of the state or its political 121.26 subdivisions. The claimant shall not be entitled to seek 121.27 damages from any state, county, tribal, or reservation insurance 121.28 policy or self-insurance program. 121.29 Subd. 8. [INVALID CLAIMS.] A claim is not valid for 121.30 purposes of this section if the county agency responsible for 121.31 supervising the work cannot verify to the commissioner: 121.32 (1) that appropriate safety training and information is 121.33 provided to all persons being supervised by the agency under 121.34 this section; and 121.35 (2) that all programs involving work by those persons 121.36 comply with federal Occupational Safety and Health 122.1 Administration and state department of labor and industry safety 122.2 standards. A claim that is not valid because of failure to 122.3 verify safety training or compliance with safety standards will 122.4 not be paid by the department of human services or through the 122.5 legislative claims process and must be heard, decided, and paid, 122.6 if appropriate, by the local government unit or tribal JOBS 122.7 program responsible for supervising the work of the claimant. 122.8 Section 54 is effective January 1, 1998, except the 122.9 transitional provision in section 72 applies. 122.10 Sec. 55. [256J.69] [GRANT DIVERSION.] 122.11 Subdivision 1. [ESTABLISHING THE GRANT DIVERSION 122.12 PROGRAM.] (a) County agencies may develop grant diversion 122.13 programs for MFIP-S participants participating in employment and 122.14 training services. A county agency that chooses to provide 122.15 grant diversion may divert to an employer part or all of the 122.16 MFIP-S cash payment for the participant's assistance unit, in 122.17 compliance with federal regulations and laws. Such payments to 122.18 an employer are to subsidize employment for MFIP-S participants 122.19 as an alternative to public assistance payments. 122.20 (b) In addition to diverting the MFIP-S grant to the 122.21 employer, employment and training funds may be used to subsidize 122.22 the grant diversion placement. 122.23 (c) Participants in grant diversion shall be compensated by 122.24 the employer at the same rates, including periodic increases, as 122.25 similarly situated employees or trainees and in accordance with 122.26 applicable law, but in no event less than the federal or 122.27 applicable state minimum wage, whichever is higher. 122.28 Subd. 2. [TRAINING AND PLACEMENT.] (a) County agencies 122.29 shall limit the length of training to nine months. Placement in 122.30 a grant diversion training position with an employer is for the 122.31 purpose of training and employment with the same employer who 122.32 has agreed to retain the person upon satisfactory completion of 122.33 training. 122.34 (b) Placement of any participant in a grant diversion 122.35 subsidized training position must be compatible with the 122.36 assessment and employment plan or employability development plan 123.1 established for the recipient under section 256J.52 or 256K.03, 123.2 subdivision 8. 123.3 Section 55 is effective January 1, 1998, except the 123.4 transitional provision in section 72 applies. 123.5 Sec. 56. [256J.72] [NONDISPLACEMENT IN WORK ACTIVITIES.] 123.6 Subdivision 1. [NONDISPLACEMENT PROTECTION.] For job 123.7 assignments under jobs programs established under chapter 256, 123.8 256D, 256J, or 256K, the county agency must provide written 123.9 notification to and obtain the written concurrence of the 123.10 appropriate exclusive bargaining representatives with respect to 123.11 job duties covered under collective bargaining agreements and 123.12 ensure that no work assignment under chapter 256, 256D, 256J, or 123.13 256K results in: 123.14 (1) termination, layoff, or reduction of the work hours of 123.15 an employee for the purpose of hiring an individual under this 123.16 section; 123.17 (2) the hiring of an individual if any other person is on 123.18 layoff, including seasonal layoff, from the same or a 123.19 substantially equivalent job; 123.20 (3) any infringement of the promotional opportunities of 123.21 any currently employed individual; 123.22 (4) the impairment of existing contract for services of 123.23 collective bargaining agreements; or 123.24 (5) a participant filling an established unfilled position 123.25 vacancy, except for a position filled using grant diversion as 123.26 provided in section 256J.69 or on-the-job training. 123.27 The written notification must be provided to the 123.28 appropriate exclusive bargaining representatives at least 14 123.29 days in advance of placing recipients in temporary public 123.30 service employment. The notice must include the number of 123.31 individuals involved, their work locations and anticipated hours 123.32 of work, a summary of the tasks to be performed, and a 123.33 description of how the individuals will be trained and 123.34 supervised. 123.35 Subd. 2. [DISPUTE RESOLUTION.] (a) If there is a dispute 123.36 between an exclusive bargaining representative and a county 124.1 provider or employer over whether job duties are within the 124.2 scope of a collective bargaining unit, the exclusive bargaining 124.3 representative, the county, the provider, or the employer may 124.4 petition the bureau of mediation services to determine if the 124.5 job duties are within the scope of a collective bargaining unit, 124.6 and the bureau shall render a binding decision. 124.7 (b) In the event of a dispute under this section, the 124.8 parties may: 124.9 (1) use a grievance and arbitration procedure of an 124.10 existing collective bargaining agreement to process a dispute 124.11 over whether a violation of the nondisplacement provisions has 124.12 occurred; or 124.13 (2) if no grievance and arbitration procedure is in place, 124.14 either party may submit the dispute to the bureau. The 124.15 commissioner of the bureau of mediation services shall establish 124.16 a procedure for a neutral, binding resolution of the dispute. 124.17 Subd. 3. [STATUS OF PARTICIPANT.] A participant may not 124.18 work in a temporary public service or community service job for 124.19 a public employer for more than 67 working days or 536 hours, 124.20 whichever is greater, as part of a work program established 124.21 under chapter 256, 256D, 256J, or 256K. A participant who 124.22 exceeds the time limits in this subdivision is a public 124.23 employee, as that term is used in chapter 179A. Upon the 124.24 written request of the exclusive bargaining representative, a 124.25 county or public service employer shall make available to the 124.26 affected exclusive bargaining representative a report of hours 124.27 worked by participants in temporary public service or community 124.28 service jobs. 124.29 Section 56 is effective January 1, 1998, except the 124.30 transitional provision in section 72 applies. 124.31 Sec. 57. [256J.74] [RELATIONSHIP TO OTHER PROGRAMS.] 124.32 Subdivision 1. [SOCIAL SERVICES.] The county agency shall 124.33 refer a participant for social services that are offered in the 124.34 county of financial responsibility according to the criteria 124.35 established by that county agency under Minnesota Rules, parts 124.36 9550.0010 to 9550.0092. A payment issued from federal funds 125.1 under title XX of the Social Security Act, state funds under the 125.2 Community Social Services Act, federal or state child welfare 125.3 funds, or county funds in a payment month must not restrict 125.4 MFIP-S eligibility or reduce the monthly assistance payment for 125.5 that participant. 125.6 Subd. 2. [CONCURRENT ELIGIBILITY, LIMITATIONS.] A county 125.7 agency must not count an applicant or participant as a member of 125.8 more than one assistance unit in a given payment month, except 125.9 as provided in clauses (1) and (2). 125.10 (1) A participant who is a member of an assistance unit in 125.11 this state is eligible to be included in a second assistance 125.12 unit in the first full month that the participant leaves the 125.13 first assistance unit and lives with a second assistance unit. 125.14 (2) An applicant whose needs are met through foster care 125.15 that is reimbursed under title IV-E of the Social Security Act 125.16 for the first part of an application month is eligible to 125.17 receive assistance for the remaining part of the month in which 125.18 the applicant returns home. Title IV-E payments and adoption 125.19 assistance payments must be considered prorated payments rather 125.20 than a duplication of MFIP-S need. 125.21 Subd. 3. [EMERGENCY ASSISTANCE, ASSISTANCE UNIT WITH A 125.22 MINOR CHILD.] An MFIP-S assistance unit with a minor child or a 125.23 pregnant woman without a minor child is eligible for emergency 125.24 assistance when the assistance unit meets the requirements in 125.25 section 256J.48, subdivision 2. 125.26 Subd. 4. [MEDICAL ASSISTANCE.] Medical assistance 125.27 eligibility for MFIP-S participants shall be determined as 125.28 described in chapter 256B. 125.29 Section 57 is effective January 1, 1998, except the 125.30 transitional provision in section 72 applies. 125.31 Sec. 58. [256J.75] [COUNTY OF FINANCIAL RESPONSIBILITY 125.32 POLICIES.] 125.33 Subdivision 1. [COUNTY OF FINANCIAL RESPONSIBILITY.] The 125.34 county of financial responsibility is the county in which a 125.35 minor child or pregnant woman lives on the date the application 125.36 is signed, unless subdivision 4 applies. When more than one 126.1 county is financially responsible for the members of an 126.2 assistance unit, financial responsibility must be assigned to a 126.3 single county beginning the first day of the calendar month 126.4 after the assistance unit members are required to be in a single 126.5 assistance unit. Financial responsibility must be assigned to 126.6 the county that was initially responsible for the assistance 126.7 unit member with the earliest date of application. The county 126.8 in which the assistance unit is currently residing becomes 126.9 financially responsible for the entire assistance unit beginning 126.10 two full calendar months after the month in which financial 126.11 responsibility was consolidated in one county. 126.12 Subd. 2. [CHANGE IN RESIDENCE.] (a) When an assistance 126.13 unit moves from one county to another and continues to receive 126.14 assistance, the new county of residence becomes the county of 126.15 financial responsibility when that assistance unit has lived in 126.16 that county in nonexcluded status for two full calendar months. 126.17 "Nonexcluded status" means the period of residence that is not 126.18 considered excluded time under section 256G.02, subdivision 6. 126.19 When a minor child moves from one county to another to reside 126.20 with a different caregiver, the caregiver in the former county 126.21 is eligible to receive assistance for that child only through 126.22 the last day of the month of the move. The caregiver in the new 126.23 county becomes eligible to receive assistance for the child the 126.24 first day of the month following the move or the date of 126.25 application, whichever is later. 126.26 (b) When an applicant moves from one county to another 126.27 while the application is pending, the county where application 126.28 first occurred is the county of financial responsibility until 126.29 the applicant has lived in the new county for two full calendar 126.30 months, unless the applicant's move is covered under section 126.31 256G.02, subdivision 6. 126.32 Subd. 3. [RESPONSIBILITY FOR INCORRECT ASSISTANCE 126.33 PAYMENTS.] A county of residence, when different from the county 126.34 of financial responsibility, will be charged by the commissioner 126.35 for the value of incorrect assistance payments and medical 126.36 assistance paid to or on behalf of a person who was not eligible 127.1 to receive that amount. Incorrect payments include payments to 127.2 an ineligible person or family resulting from decisions, 127.3 failures to act, miscalculations, or overdue recertification. 127.4 However, financial responsibility does not accrue for a county 127.5 when the recertification is overdue at the time the referral is 127.6 received by the county of residence or when the county of 127.7 financial responsibility does not act on the recommendation of 127.8 the county of residence. When federal or state law requires 127.9 that medical assistance continue after assistance ends, this 127.10 subdivision also governs financial responsibility for the 127.11 extended medical assistance. 127.12 Subd. 4. [EXCLUDED TIME.] When an applicant or participant 127.13 resides in an excluded time facility as described in section 127.14 256G.02, subdivision 6, the county that is financially 127.15 responsible for the applicant or participant is the county in 127.16 which the applicant or participant last resided outside such a 127.17 facility immediately before entering the facility. When an 127.18 applicant or participant has not resided in this state for any 127.19 time other than excluded time as defined in section 256G.02, 127.20 subdivision 6, the county that is financially responsible for 127.21 the applicant or participant is the county in which the 127.22 applicant or participant resides on the date the application is 127.23 signed. 127.24 Section 58 is effective January 1, 1998, except the 127.25 transitional provision in section 72 applies. 127.26 Sec. 59. [256J.76] [COUNTY ADMINISTRATIVE AID.] 127.27 Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July 127.28 1, 1997, counties will receive federal funds from the TANF block 127.29 grant for use in supporting eligibility, fraud control, and 127.30 other related administrative functions. The federal funds 127.31 available for distribution, as determined by the commissioner, 127.32 must be an amount equal to federal administrative aid 127.33 distributed for fiscal year 1996 under titles IV-A and IV-F of 127.34 the Social Security Act in effect prior to October 1, 1996. 127.35 This amount must include the amount paid for local 127.36 collaboratives under sections 245.4932 and 256F.13, but must not 128.1 include administrative aid associated with child care under 128.2 section 119B.05, with emergency assistance intensive family 128.3 preservation services under section 256.8711, with 128.4 administrative activities as part of the employment and training 128.5 services under section 256.736, or with fraud prevention 128.6 investigation activities under section 256.983. 128.7 Subd. 2. [ALLOCATION OF COUNTY FUNDS.] (a) The 128.8 commissioner shall determine and allocate the funds available to 128.9 each county on a calendar year basis. 128.10 (b) For calendar year 1998, the commissioner shall allocate 128.11 the funds available under subdivision 1 in proportion to 128.12 administrative aid paid to each county for fiscal year 1996, 128.13 excluding any amounts paid for local collaboratives under 128.14 sections 245.4932 and 256F.13. For the period from July 1, 128.15 1997, to December 31, 1997, each county shall receive an 128.16 additional 50 percent of its calendar year 1998 allocation. 128.17 (c) For calendar year 1999 and following years, the 128.18 commissioner shall allocate the funds available under 128.19 subdivision 1 based on each county's average number of MFIP-S 128.20 cases as compared to the statewide total number of cases. The 128.21 average number of cases must be based on counts of MFIP-S cases 128.22 as of March 31, June 30, September 30, and December 31 of the 128.23 preceding calendar year. 128.24 Subd. 3. [MONTHLY PAYMENTS TO COUNTIES.] The commissioner 128.25 shall pay counties monthly as federal funds are available. The 128.26 commissioner may certify the payments for the first three months 128.27 of a calendar year. 128.28 Subd. 4. [REPORTING REQUIREMENT.] The commissioner shall 128.29 specify requirements for reporting according to section 256.01, 128.30 subdivision 2, paragraph (17). Each county shall be reimbursed 128.31 at a rate of 50 percent of eligible expenditures up to the limit 128.32 of its allocation. 128.33 Sec. 60. [256J.77] [COUNTY AID FOR SUPPLEMENTAL HOUSING 128.34 ASSISTANCE.] 128.35 Subdivision 1. [PROGRAM ESTABLISHED.] This section may be 128.36 cited as the county aid for supplemental housing assistance 129.1 program (CASHAP). CASHAP is a statewide program intended to 129.2 help meet the housing needs of legal noncitizens residing in 129.3 Minnesota on August 22, 1996, who became ineligible for SSI 129.4 benefits under the Personal Responsibility and Work Opportunity 129.5 Reconciliation Act of 1996, Public Law Number 104-193. 129.6 Subd. 2. [ALLOCATION OF COUNTY AID FOR HOUSING ASSISTANCE 129.7 FUNDS.] State funds appropriated for the county aid for 129.8 supplemental housing assistance program shall be allocated to 129.9 county agencies as follows: 129.10 (1) for state fiscal year 1998, the allocation shall be 129.11 based on the county's proportion of the total statewide number 129.12 of legal noncitizens residing in Minnesota on August 22, 1996, 129.13 who became ineligible for SSI benefits under the Personal 129.14 Responsibility and Work Opportunity Reconciliation Act of 1996, 129.15 Public Law Number 104-193; and 129.16 (2) for subsequent fiscal years, the allocation shall be 129.17 based on the county's proportion of total statewide spending for 129.18 county aid for supplemental housing assistance in the preceding 129.19 year. 129.20 Subd. 3. [USE OF CASHAP FUNDS.] County agencies may spend 129.21 CASHAP funds at their discretion to assist with the housing 129.22 needs of legal noncitizens residing in Minnesota on August 22, 129.23 1996, who became ineligible for SSI under the Personal 129.24 Responsibility and Work Opportunity Reconciliation Act of 1996, 129.25 Public Law Number 104-193. 129.26 Subd. 4. [REALLOCATION OF UNUSED FUNDS.] Any CASHAP funds 129.27 not used by a county at the end of a fiscal year shall be 129.28 returned to the commissioner and reallocated in the following 129.29 fiscal year as provided in subdivision 2. 129.30 Sec. 61. [NOTICE AND REFERRAL PROCEDURES FOR DOMESTIC 129.31 VIOLENCE VICTIMS.] 129.32 The commissioner of human services shall develop procedures 129.33 for the county agencies and their contractors to identify 129.34 victims of domestic violence. The procedures must provide, at a 129.35 minimum, universal notification to all applicants and recipients 129.36 of MFIP-S that: 130.1 (1) referrals to counseling and supportive services are 130.2 available for victims of domestic violence; 130.3 (2) nonpermanent resident battered individuals married to 130.4 U.S. citizens or permanent residents may be eligible to petition 130.5 for permanent residency under the Violence Against Women Act, 130.6 and that referrals to appropriate legal services are available; 130.7 and 130.8 (3) victims of domestic violence are exempt from the 130.9 60-month limit on assistance while the individual is complying 130.10 with an approved safety plan, as defined in section 256J.49, 130.11 subdivision 11. 130.12 Notification must be in writing and orally at the time of 130.13 application and recertification, when the individual is referred 130.14 to the title IV-D child support agency, and at the beginning of 130.15 any job training or work placement assistance program. 130.16 Sec. 62. [DOMESTIC VIOLENCE; TRAINING PROGRAMS.] 130.17 The commissioner of human services shall establish 130.18 mandatory domestic violence and sexual abuse training programs 130.19 for employees, contractors, subcontractors, and county welfare 130.20 agencies of the department of human services who work with 130.21 applicants and recipients. To the extent possible, the state or 130.22 local agency shall not refer applicants or recipients to any 130.23 employer who has not been trained in dealing with issues related 130.24 to domestic violence and sexual assault. 130.25 The commissioner shall establish a request for proposals 130.26 from experts in domestic violence and sexual assault issues to 130.27 train employees, contractors, and county welfare agency workers 130.28 on issues of domestic violence and sexual assault. To the 130.29 extent possible, the commissioner will integrate training on 130.30 domestic violence and sexual assault issues with retraining of 130.31 state and county employees on implementation of the new TANF 130.32 program. 130.33 Sec. 63. [FORECAST OF COSTS REQUIRED.] 130.34 For the part of the department of human services' budget 130.35 devoted to assistance to families grants, the commissioner shall 130.36 forecast the total projected costs of each component activity 131.1 biannually, as a part of the November and March forecasts. The 131.2 total projected costs must also be recognized in the fund 131.3 balance. 131.4 Sec. 64. [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 131.5 The legislature makes the following findings: 131.6 (a) The legislature is statutorily required to balance the 131.7 state budget. 131.8 (b) The task of balancing the state budget is made 131.9 difficult in the area of the new federal welfare reform program 131.10 for needy families due to the dramatic change in program design 131.11 that this state and all other states must experience, rendering 131.12 historical data on client behavior, interstate migration, and 131.13 welfare spending patterns of dubious value. 131.14 (c) Many states are using the flexibility given to them 131.15 under the federal welfare reform bill to enact more restrictive 131.16 programs than Minnesota. 131.17 (d) Minnesota county human service agencies have reported 131.18 to the commissioner of human services verified cases of families 131.19 moving from other states to this state at least in part because 131.20 this state has higher public assistance benefits. 131.21 (e) Within the state's limited resources, the legislature 131.22 wishes to manage funds appropriated under this part to best 131.23 provide for needy Minnesota families and their children. 131.24 (f) To that end, the legislature has adopted a policy of 131.25 requiring families to be in this state for at least 30 days 131.26 before being eligible for benefits and providing families in 131.27 which no mandatory member has resided in Minnesota for the 131.28 previous 12 months a benefit based on the grant they would have 131.29 received had they applied for benefits in their previous state 131.30 of residence. 131.31 (g) Therefore, if the policy designed to make welfare 131.32 benefits a neutral factor in the decision to move to Minnesota 131.33 and to best manage the benefit appropriation for needy Minnesota 131.34 families and their children, while providing a safety net for 131.35 recent interstate migrants, is enjoined or otherwise prevented 131.36 from being implemented, the commissioner shall do the 132.1 following: (1) ratably reduce benefits under AFDC and MFIP-S, 132.2 but only in an amount sufficient to remain within the forecasted 132.3 budgets for those programs; 132.4 (2) notify the fiscal and policy chairs of the house and 132.5 senate human services committees that the reductions have taken 132.6 place; and 132.7 (3) formulate a plan to be presented to the next 132.8 legislative session. 132.9 Vendor payments under this paragraph shall be for rent and 132.10 utilities, up to the limit of the grant amount. Residual 132.11 amounts, if any, shall be paid directly to the assistance unit. 132.12 Sec. 65. [TRANSFER FUNDING.] 132.13 Effective July 1, 1997, all funding related to the child 132.14 care assistance programs under Minnesota Statutes, section 132.15 256.035, subdivision 8, is transferred to the commissioner of 132.16 children, families, and learning. 132.17 Sec. 66. [SEVERABILITY CLAUSE.] 132.18 If any provision of this act is enjoined from 132.19 implementation or found unconstitutional by any court of 132.20 competent jurisdiction, the remaining provisions shall remain 132.21 valid and shall be given full effect. 132.22 Sec. 67. [TRIBAL EMPLOYMENT AND TRAINING PROGRAM; REPORT.] 132.23 Subdivision 1. [AUTHORITY.] The commissioner of human 132.24 services, in conjunction with Indian tribes in the state, shall 132.25 develop and present to the legislature a plan for providing 132.26 state funds in support of a family assistance program 132.27 administered by Indian tribes who have a reservation in this 132.28 state and who have federal approval to operate a tribal 132.29 program. This plan must identify the primary arrangements 132.30 needed to effect tribal administration and needed funding, 132.31 including agreements with a consortium of tribes, that 132.32 accurately reflects the state funding levels for Indian people 132.33 as would otherwise be available to MFIP-S program recipients. 132.34 This plan must be developed consistent with the requirements set 132.35 forth in the Personal Responsibility and Work Opportunity 132.36 Reconciliation Act of 1996, Public Law Number 104-193, section 133.1 412(b)(1)(B). For purposes of this section, "Indian tribe" 133.2 means a tribe, band, nation, or other federally recognized group 133.3 or community of Indians. 133.4 Subd. 2. [REPORT TO THE LEGISLATURE.] The plan referred to 133.5 in subdivision 1 and any resulting proposal for legislation must 133.6 be presented to the legislature by December 15, 1997. 133.7 Subd. 3. [TRIBAL AGREEMENTS.] Once the plan in subdivision 133.8 1 is presented to and approved by the legislature and signed 133.9 into law, the commissioner is authorized to enter into 133.10 agreements with Indian tribes or consortia of tribes consistent 133.11 with the plan. 133.12 Subd. 4. [TRIBAL AND STATE COORDINATION.] The commissioner 133.13 shall consult with Indian tribes in the state when formulating 133.14 general policies regarding the implementation of the state's 133.15 public assistance program operated under title IV-A of the 133.16 Social Security Act. The commissioner shall take into 133.17 consideration circumstances affecting Indians, including 133.18 circumstances identified by Indian tribes, when designing the 133.19 state's program. The state shall provide Indians with equitable 133.20 access to assistance as provided in the Personal Responsibility 133.21 and Work Opportunity Reconciliation Act of 1996, Public Law 133.22 Number 104-193, section 402(a)(5). 133.23 Subd. 5. [EMPLOYMENT TRAINING.] Nothing in this section 133.24 precludes any Indian tribe in this state from participating in 133.25 employment and training or child care programs otherwise 133.26 available by law to Indian tribes under: 133.27 (1) the MFIP program under Minnesota Statutes, sections 133.28 256.031 to 256.0351, or its successor program; 133.29 (2) project STRIDE under Minnesota Statutes, section 133.30 256.736, or its successor program; 133.31 (3) child care programs for tribal program participants; 133.32 and 133.33 (4) the Minnesota injury protection program. 133.34 Subd. 6. [TRIBAL SOVEREIGN STATUS.] Nothing in this 133.35 section shall be construed to waive, modify, expand, or diminish 133.36 the sovereignty of federally recognized Indian tribes, nor shall 134.1 any Indian tribes be required in any way to deny their 134.2 sovereignty or waive their immunities except as mandated by 134.3 federal law as a requirement of entering into an agreement with 134.4 the state under this section. 134.5 Subd. 7. [PLANNING.] The commissioner of human services 134.6 shall assist tribes, in a collaborative effort, with the 134.7 development of the plan under subdivision 1 and efforts 134.8 associated with such development. Such efforts shall include, 134.9 but not be limited to, data collection regarding: receipt of 134.10 public assistance by Indians, unemployment rates within tribal 134.11 service delivery areas, and dissemination of information and 134.12 research. The commissioner shall provide technical assistance 134.13 to tribal welfare reform task force members and tribes regarding 134.14 the implementation and operation of public assistance programs 134.15 and assistance to tribes to develop the plan under subdivision 1. 134.16 Sec. 68. [REPAYMENT OF POST-SECONDARY EDUCATION FUNDS; 134.17 PROPOSAL REQUIRED.] 134.18 By February 15, 1998, the commissioner of human services, 134.19 in consultation with representatives of county agencies, must 134.20 develop and submit to the legislature a proposal that specifies 134.21 a methodology for the repayment of funds under Minnesota 134.22 Statutes 1996, section 256J.53, subdivision 4. The 134.23 commissioner's proposal must not apply the methodology 134.24 retroactively to participants who had a post-secondary education 134.25 or training program approved under that section before the date 134.26 that the commissioner's proposal, if enacted, becomes effective. 134.27 Sec. 69. [REPEALER.] 134.28 (a) Minnesota Statutes 1996, sections 256.12, subdivisions 134.29 9, 10, 14, 15, 19, 20, 21, 22, and 23; 256.72; 256.73, 134.30 subdivisions 1, 1a, 1b, 2, 3a, 3b, 5, 5a, 6, 8, 8a, 9, 10, and 134.31 11; 256.7341; 256.736, subdivision 18; 256.7365, subdivisions 1, 134.32 2, 3, 4, 5, 6, 7, and 9; 256.7366; 256.737; 256.738; 256.7381; 134.33 256.7382; 256.7383; 256.7384; 256.7385; 256.7386; 256.7387; 134.34 256.7388; 256.739; 256.74, subdivisions 1, 1a, 1b, 2, and 6; 134.35 256.745; 256.75; 256.76, subdivision 1; 256.78; 256.80; 256.81; 134.36 256.82; 256.84; 256.85; 256.86; 256.863; 256.871; and 256.879, 135.1 are repealed effective July 1, 1998. 135.2 (b) From January 1, 1998, to March 31, 1998, the statutory 135.3 sections listed in paragraph (a) apply only in counties that 135.4 operate an MFIP field trial and that continue to provide project 135.5 STRIDE services to members of the MFIP comparison group, and in 135.6 those counties that have not completed conversion to MFIP-S 135.7 employment and training services. 135.8 (c) From April 1, 1998, through June 30, 1998, the sections 135.9 listed in paragraph (a) are effective only in counties that 135.10 operate an MFIP field trial and that continue to provide project 135.11 STRIDE services to members of the comparison group. 135.12 Sec. 70. [NOTICE OF EARLY IMPLEMENTATION.] 135.13 Notwithstanding any inconsistent provisions of sections 135.14 256.12, 256.72 to 256.87, and 256D.01 to 256D.21, a county may 135.15 implement the provisions of chapter 256J or 256K before January 135.16 1, 1998, if the county submits a written notice to the 135.17 commissioner of human services that specifies the date of 135.18 implementation and concisely outlines the county's plan for 135.19 early implementation. Upon receipt of a county's notice, the 135.20 commissioner must review the county's plan for feasibility of 135.21 implementation. The commissioner's review must occur in a 135.22 timely manner. The commissioner may request modifications to 135.23 the county's plan to increase its feasibility. When the 135.24 commissioner agrees with the county's plan, the commissioner 135.25 must publish a notice in the state register that specifies the 135.26 date upon which the MFIP-S program replaces the AFDC and family 135.27 GA programs in the county. 135.28 Sec. 71. [EFFECTIVE DATE.] 135.29 Subdivision 1. [GENERAL EFFECTIVE DATE.] Except as 135.30 specified in subdivision 2, article 1 is effective July 1, 1997. 135.31 Subd. 2. [TRANSITION EFFECTIVE DATE.] The sections 135.32 specified in this article are effective January 1, 1998, except 135.33 that for counties who elect to begin operation of MFIP-S prior 135.34 to January 1, 1998, these sections take effect for each county 135.35 on the date that MFIP-S is implemented in the county. 135.36 ARTICLE 2 136.1 WORK FIRST PROGRAM 136.2 Section 1. [256K.01] [WORK FIRST PROGRAM.] 136.3 Subdivision 1. [CITATION.] Sections 256K.01 to 256K.09 may 136.4 be cited as the work first program. 136.5 Subd. 2. [DEFINITIONS.] As used in sections 256K.01 to 136.6 256K.09, the following words have the meanings given them. 136.7 (a) "Applicant" means an individual who has submitted a 136.8 request for assistance and has never received an AFDC, MFIP-S or 136.9 a family general assistance grant through the MAXIS computer 136.10 system as a caregiver, or an applicant whose AFDC, MFIP-S or 136.11 family general assistance application was denied or benefits 136.12 were terminated due to noncompliance with work first 136.13 requirements. 136.14 (b) "Application date" means the date any Minnesota county 136.15 agency receives a signed and dated combined application form 136.16 Part I. 136.17 (c) "CAF" means a combined application form on which people 136.18 apply for multiple assistance programs, including: cash 136.19 assistance, refugee cash assistance, Minnesota supplemental aid, 136.20 food stamps, medical assistance, general assistance medical 136.21 care, emergency assistance, emergency medical assistance, and 136.22 emergency general assistance medical care. 136.23 (d) "Caregiver" means a parent or eligible adult, including 136.24 a pregnant woman, who is part of the assistance unit that has 136.25 applied for or is receiving an AFDC, MFIP-S, or family general 136.26 assistance grant. In a two-parent family, both parents are 136.27 caregivers. 136.28 (e) "Child support" means a voluntary or court-ordered 136.29 payment by absent parents in an assistance unit. 136.30 (f) "Commissioner" means the commissioner of human services. 136.31 (g) "Department" means the department of human services. 136.32 (h) "Employability development plan" or "EDP" means a plan 136.33 developed by the applicant, with advice from the employment 136.34 advisor, for the purposes of identifying an employment goal, 136.35 improving work skills through certification or education, 136.36 training or skills recertification, and which addresses barriers 137.1 to employment. 137.2 (i) "EDP status report form" means a program form on which 137.3 deferred participants indicate what has been achieved in the 137.4 participant's employability development plan and the types of 137.5 problems encountered. 137.6 (j) "Employment advisor" means a program staff member who 137.7 is qualified to assist the participant to develop a job search 137.8 or employability development plan, match the participant with 137.9 existing job openings, refer the participant to employers, and 137.10 has an extensive knowledge of employers in the area. 137.11 (k) "Financial specialist" means a program staff member who 137.12 is trained to explain the benefits offered under the program, 137.13 determine eligibility for different assistance programs, and 137.14 broker other resources from employers and the community. 137.15 (l) "Job network" means individuals that a person may 137.16 contact to learn more about particular companies, inquire about 137.17 job leads, or discuss occupational interests and expertise. 137.18 (m) "Job search allowance" means the amount of financial 137.19 assistance needed to support job search. 137.20 (n) "Job search plan" or "JSP" means the specific plan 137.21 developed by the applicant, with advice from the employment 137.22 advisor, to secure a job as soon as possible, and focus the 137.23 scope of the job search process and other activities. 137.24 (o) "JSP status report form" means a program form on which 137.25 participants indicate the number of submitted job applications, 137.26 job interviews held, jobs offered, other outcomes achieved, 137.27 problems encountered, and the total number of hours spent on job 137.28 search per week. 137.29 (p) "Participant" means a recipient who is required to 137.30 participate in the work first program. 137.31 (q) "Program" means the work first program. 137.32 (r) "Provider" means an employment and training agency 137.33 certified by the commissioner of economic security under section 137.34 268.871, subdivision 1. 137.35 (s) "Self-employment" means employment where people work 137.36 for themselves rather than an employer, are responsible for 138.1 their own work schedule, and do not have taxes or FICA withheld 138.2 by an employer. 138.3 (t) "Self-sufficiency agreement" means the agreement 138.4 between the county or its representative and the applicant that 138.5 describes the activities that the applicant must conduct and the 138.6 necessary services and aid to be furnished by the county to 138.7 enable the individual to meet the purpose of either the job 138.8 search plan or employability development plan. 138.9 (u) "Subsidized job" means a job that is partly reimbursed 138.10 by the provider for cost of wages for participants in the 138.11 program. 138.12 Subd. 3. [ESTABLISHING WORK FIRST PROGRAM.] The 138.13 commissioners of human services and economic security may 138.14 develop and establish pilot projects which require applicants 138.15 for aid under AFDC, MFIP-S or family general assistance to meet 138.16 the requirements of the work first program. The purpose of the 138.17 program is to: 138.18 (1) ensure that the participant is working as early as 138.19 possible; 138.20 (2) promote greater opportunity for economic self-support, 138.21 participation, and mobility in the work force; and 138.22 (3) minimize the risk for long-term welfare dependency. 138.23 Subd. 4. [PROGRAM ADMINISTRATION.] The program must be 138.24 administered in a way that, in addition to the county agency, 138.25 other sectors in the community such as employers from the public 138.26 and private sectors, not-for-profit organizations, educational 138.27 and social service agencies, labor unions, and neighborhood 138.28 associations are involved. 138.29 Subd. 5. [PROGRAM DESIGN.] The program shall meet the 138.30 following principles: 138.31 (1) work is the primary means of economic support; 138.32 (2) the individual's potential is reviewed during the 138.33 application process to determine how to approach the job market 138.34 aggressively; 138.35 (3) public aid such as cash and medical assistance, child 138.36 care, child support assurance, and other cash benefits are used 139.1 to support intensive job search and immediate work; and 139.2 (4) maximum use is made of tax credits to supplement income. 139.3 Subd. 6. [DUTIES OF COMMISSIONER.] In addition to any 139.4 other duties imposed by law, the commissioner shall: 139.5 (1) establish the program according to sections 256K.01 to 139.6 256K.09 and allocate money as appropriate to pilot counties 139.7 participating in the program; 139.8 (2) provide systems development and staff training; 139.9 (3) accept and supervise the disbursement of any funds that 139.10 may be provided from other sources for use in the demonstration 139.11 program; and 139.12 (4) direct a study to safeguard the interests of children. 139.13 Subd. 7. [DUTIES OF COUNTY AGENCY.] The county agency 139.14 shall: 139.15 (1) collaborate with the commissioners of human services 139.16 and economic security and other agencies to develop, implement, 139.17 and evaluate the demonstration of the work first program; 139.18 (2) operate the work first program in partnership with 139.19 private and public employers, local industry councils, labor 139.20 unions, and employment, educational, and social service 139.21 agencies, according to subdivision 4; and 139.22 (3) ensure that program components such as client 139.23 orientation, immediate job search, job development, creation of 139.24 temporary public service jobs, job placements, and postplacement 139.25 follow-up are implemented according to the work first program. 139.26 Subd. 8. [DUTIES OF PARTICIPANT.] To be eligible for an 139.27 AFDC, MFIP-S or family general assistance benefit, a participant 139.28 shall cooperate with the county agency, the provider, and the 139.29 participant's employer in all aspects of the program. 139.30 Sec. 2. [256K.02] [PROGRAM PARTICIPANTS; PROGRAM 139.31 EXPECTATIONS.] 139.32 All applicants selected for participation are expected to 139.33 meet the requirements under the work first program. Payments 139.34 for rent and utilities up to the AFDC, MFIP-S or family general 139.35 assistance benefits to which the assistance unit is entitled 139.36 will be vendor paid for as many months as the applicant is 140.1 eligible or six months, whichever comes first. The residual 140.2 amount after vendor payment, if any, will be paid to the 140.3 applicant, unless it is used as a wage subsidy under section 140.4 256K.09, subdivision 2. 140.5 Sec. 3. [256K.03] [PROGRAM REQUIREMENTS.] 140.6 Subdivision 1. [NOTIFICATION OF PROGRAM.] Except for the 140.7 provisions in this section, the provisions for the AFDC, MFIP-S, 140.8 and family general assistance application process shall be 140.9 followed. Within two days after receipt of a completed combined 140.10 application form, the county agency must refer to the provider 140.11 the applicant who meets the conditions under section 256K.02, 140.12 and notify the applicant in writing of the program including the 140.13 following provisions: 140.14 (1) notification that, as part of the application process, 140.15 applicants are required to attend orientation, to be followed 140.16 immediately by a job search; 140.17 (2) the program provider, the date, time, and location of 140.18 the scheduled program orientation; 140.19 (3) the procedures for qualifying for and receiving 140.20 benefits under the program; 140.21 (4) the immediate availability of supportive services, 140.22 including, but not limited to, child care, transportation, 140.23 medical assistance, and other work-related aid; and 140.24 (5) the rights, responsibilities, and obligations of 140.25 participants in the program, including, but not limited to, the 140.26 grounds for exemptions and deferrals, the consequences for 140.27 refusing or failing to participate fully, and the appeal process. 140.28 Subd. 2. [PROGRAM ORIENTATION.] The county must give a 140.29 face-to-face orientation regarding the program to the applicant 140.30 within five days after the date of application. The orientation 140.31 must be designed to inform the applicant of: 140.32 (1) the importance of locating and obtaining a job as soon 140.33 as possible; 140.34 (2) benefits to be provided to support work; 140.35 (3) the manner by which benefits shall be paid; 140.36 (4) how other supportive services such as medical 141.1 assistance, child care, transportation, and other work-related 141.2 aid shall be available to support job search and work; 141.3 (5) the consequences for failure without good cause to 141.4 comply with program requirements; and 141.5 (6) the appeal process. 141.6 Subd. 3. [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 141.7 SPECIALIST.] At the end of orientation, the provider must assign 141.8 an employment advisor and a financial specialist to the 141.9 applicant. With advice from the employment advisor, the 141.10 applicant must develop a job search plan based on existing job 141.11 markets, prior employment, work experience, and transferable 141.12 work skills, unless exempt under subdivision 5. A job search 141.13 must be planned and conducted for a period of up to eight 141.14 consecutive weeks from the date of application and for at least 141.15 32 hours per week. The types of and target number of job 141.16 openings to be pursued per week must be written in the job 141.17 search plan. The following activities may be included in the 141.18 job search plan: 141.19 (1) motivational counseling; 141.20 (2) job networking or training on how to locate job 141.21 openings; 141.22 (3) development of a personal resume; and 141.23 (4) information on how to conduct job interviews and 141.24 establish a personal job network. 141.25 Following the development of the job search plan or the 141.26 employability development plan under subdivision 8, the 141.27 financial specialist must interview the applicant to determine 141.28 eligibility for and the extent of benefits under sections 141.29 256K.06 and 256K.07 to support the job search or employability 141.30 development plan. The provider must attach to the appropriate 141.31 plan the summary of the necessary enabling services and benefits 141.32 to be furnished by the provider. The provider or its 141.33 representative and the applicant must sign the plan, with its 141.34 attachment, to indicate a self-sufficiency agreement between the 141.35 provider and the participant. 141.36 Subd. 4. [IMMEDIATE JOB SEARCH.] An applicant must be 142.1 required to begin job search within seven days after the date of 142.2 application for at least 32 hours per week for up to eight 142.3 weeks, unless exempt under subdivision 5 or deferred under 142.4 subdivision 8. For an applicant who is working at least 20 142.5 hours per week, job search shall consist of 12 hours per week 142.6 for up to eight weeks. Within the first five days of job 142.7 search, the applicant is required to initiate informational 142.8 contacts with prospective employers, generate additional job 142.9 leads from the job network, review references and experiences 142.10 from previous employment, and carry out the other activities 142.11 under the job search plan developed under subdivision 3. 142.12 Subd. 5. [EXEMPTION CATEGORIES.] (a) The applicant will be 142.13 exempt from the job search requirements and development of a job 142.14 search plan and an employability development plan under 142.15 subdivisions 3, 4, and 8 if the applicant belongs to any of the 142.16 following groups: 142.17 (1) caregivers under age 20 who have not completed a high 142.18 school education and are attending high school on a full-time 142.19 basis; 142.20 (2) individuals who are age 60 or older; 142.21 (3) individuals who are suffering from a professionally 142.22 certified permanent or temporary illness, injury, or incapacity 142.23 which is expected to continue for more than 30 days and which 142.24 prevents the person from obtaining or retaining employment; 142.25 (4) caregivers whose presence in the home is needed because 142.26 of illness or incapacity of another member in the household; 142.27 (5) women who are pregnant, if it has been medically 142.28 verified that the child is expected to be born within the next 142.29 six months; 142.30 (6) caregivers or other caregiver relatives of a child 142.31 under the age of three who personally provide full-time care for 142.32 the child; 142.33 (7) individuals employed at least 30 hours per week; 142.34 (8) individuals for whom participation would require a 142.35 round trip commuting time by available transportation of more 142.36 than two hours, excluding transporting of children for child 143.1 care; 143.2 (9) individuals for whom lack of proficiency in English is 143.3 a barrier to employment, provided such individuals are 143.4 participating in an intensive program which lasts no longer than 143.5 six months and is designed to remedy their language deficiency; 143.6 (10) individuals who, because of advanced age or lack of 143.7 ability, are incapable of gaining proficiency in English, as 143.8 determined by the county social worker, shall continue to be 143.9 exempt under this subdivision and are not subject to the 143.10 requirement that they be participating in a language program; 143.11 (11) individuals under such duress that they are incapable 143.12 of participating in the program, as determined by the county 143.13 social worker; or 143.14 (12) individuals in need of refresher courses for purposes 143.15 of obtaining professional certification or licensure. 143.16 (b) In a two-parent family, only one caregiver may be 143.17 exempted under paragraph (a), clauses (4) and (6). 143.18 Subd. 6. [COUNTY DUTIES.] The county must act on the 143.19 application within 30 days of the application date. If the 143.20 applicant is not eligible, the application will be denied and 143.21 the county must notify the applicant of the denial in writing. 143.22 An applicant whose application has been denied may be allowed to 143.23 complete the job search plan; however, supportive services will 143.24 not be provided. 143.25 Subd. 7. [JOB SEARCH PLAN STATUS REPORT.] The applicant or 143.26 participant must submit a completed job search plan status 143.27 report form to the employment advisor every two weeks during the 143.28 job search process, with the first completed form due 21 days 143.29 after the date of application. 143.30 Subd. 8. [EMPLOYABILITY DEVELOPMENT PLAN.] At the 143.31 discretion and approval of the employment advisor, the applicant 143.32 may be deferred from the requirement to conduct at least 32 143.33 hours of job search per week for up to eight consecutive weeks, 143.34 if during the development of the job search plan, the applicant 143.35 is determined to: 143.36 (1) not have worked within the past 12 months and not have 144.1 a high school or a general equivalency diploma provided the 144.2 applicant agrees to develop and carry out an employability 144.3 development plan instead of job search, and concurrently work 144.4 for at least 16 hours per week in a temporary public service 144.5 job. The employability development plan must include the 144.6 employment goals and specific outcomes the participant must 144.7 achieve; 144.8 (2) be within six months of completing any post-secondary 144.9 training program, provided that the applicant agrees to develop 144.10 and carry out an employability development plan instead of a job 144.11 search, and concurrently work for a minimum number of hours per 144.12 week in a temporary public service job. The employability 144.13 development plan must include the employment goal and specific 144.14 outcomes that the participant must achieve. The applicant that 144.15 is deferred under this subdivision may choose to work in a job 144.16 other than a public service job for a minimum number of hours 144.17 per week rather than in a temporary public service job. For 144.18 individuals who are participating in an educational program 144.19 under this clause, and who are attending school full time as 144.20 determined by the institution, there is no work requirement. 144.21 For individuals participating in an educational program on a 144.22 part-time basis as determined by the institution, the minimum 144.23 number of hours that a participant must work shall be decreased 144.24 as the participant increases the number of credit hours taken, 144.25 except that the participant shall not be required to work more 144.26 than eight hours per week. 144.27 During vacation periods of one month or more, the 16-hour 144.28 per week minimum work requirement shall apply. The applicant 144.29 may be deferred for up to six months. At the end of the 144.30 deferment period, the participant must develop a job search plan 144.31 and conduct at least 32 hours of job search per week for up to 144.32 eight consecutive weeks, and submit reports as required under 144.33 subdivisions 3 and 4; or 144.34 (3) be in treatment for chemical dependency, be a victim of 144.35 domestic abuse, or be homeless, provided that the applicant 144.36 agrees to develop an employability development plan instead of a 145.1 job search plan, and immediately follow through with the 145.2 activities in the employability development plan. The 145.3 employability development plan must include specific outcomes 145.4 that the applicant must achieve for the duration of the 145.5 employability development plan and activities which are needed 145.6 to address the issues identified. Under this clause, the 145.7 applicant may be deferred for up to eight weeks. 145.8 Subd. 9. [EDP STATUS REPORT.] The participant who is 145.9 deferred from job search under subdivision 8 must submit a 145.10 completed employability development plan status report form to 145.11 the employment advisor every 14 days as long as the participant 145.12 continues to be deferred, with the first completed form due 21 145.13 days after the date of application. 145.14 Subd. 10. [JOB OFFER.] The participant must not refuse any 145.15 job offer, provided that the job is within the participant's 145.16 physical and mental abilities, pays hourly gross wages of not 145.17 less than the applicable state or federal minimum wage, and 145.18 meets health and safety standards set by federal, state, and 145.19 county agencies. If a job is offered, the participant must 145.20 inform the provider immediately to redetermine eligibility for 145.21 and extent of benefits and services to support work. To enhance 145.22 job retention, the provider may provide services such as 145.23 motivational counseling or on-site problem solving for up to six 145.24 months. The participant who has completed at least six months 145.25 of work in a nonsubsidized job shall be encouraged to 145.26 participate in a training program that would improve the 145.27 participant's ability to obtain a job that pays a higher wage. 145.28 Subd. 11. [DUTY TO REPORT.] The participant must 145.29 immediately inform the provider regarding any changes related to 145.30 the participant's employment status. 145.31 Subd. 12. [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 145.32 SERVICE JOB.] (a) If after the completion of the maximum eight 145.33 weeks of job search the participant has failed to secure a 145.34 nonsubsidized or a subsidized job for at least 32 hours per 145.35 week, or does not earn a net income from self-employment that is 145.36 equal to at least the AFDC, MFIP-S or family general assistance 146.1 monthly grant for the household size, whichever is applicable, 146.2 the participant is required to work in a temporary public 146.3 service job for up to 67 working days for (1) at least 32 hours 146.4 per week, or (2) a period equivalent to the result of dividing 146.5 the monthly grant amount which the participant would otherwise 146.6 receive, by the federal hourly minimum wage, or applicable 146.7 hourly state minimum wage, or the hourly rate of pay for 146.8 individuals employed in the same occupation at the site, 146.9 whichever is highest. If the result is more than 128 hours per 146.10 month, the participant's requirement to work in a temporary 146.11 public service job shall not be more than 32 hours per week. 146.12 (b) Within seven days from the date of application, the 146.13 participant who is deferred under subdivision 8, clause (1) or 146.14 (2), and is participating in an educational program on a 146.15 part-time basis must work in a temporary public service job as 146.16 required under subdivision 8, clause (2). 146.17 (c) The provider shall strive to match the profile of the 146.18 participant with the needs of the employers that are 146.19 participating in a temporary jobs program under section 256K.05. 146.20 Sec. 4. [256K.04] [JOB DEVELOPMENT AND SUBSIDY.] 146.21 Subdivision 1. [JOB INVENTORY.] The provider must develop 146.22 an inventory of job openings including full-time, part-time, 146.23 permanent, temporary or seasonal, and training positions in 146.24 partnership with private and public employers, local industry 146.25 councils, and employment agencies. To the extent possible, the 146.26 inventory must include specific information regarding job 146.27 openings, must be updated on a weekly basis, and must be 146.28 available to all participants on a daily basis. 146.29 Subd. 2. [JOB SUBSIDY.] The county may use all or part of 146.30 the AFDC, MFIP-S or family general assistance benefit as a 146.31 subsidy to employers for the purpose of providing work 146.32 experience or training to the participant who has completed the 146.33 job search plan, provided that: 146.34 (1) the job to be subsidized is permanent and full time, 146.35 and pays an hourly rate of at least $6 per hour; 146.36 (2) the employer agrees to retain the participant after 147.1 satisfactory completion of the work experience or training 147.2 period; and 147.3 (3) the participant has first tried to secure a 147.4 nonsubsidized job by following the job search plan. 147.5 The subsidy may be available for up to six months. 147.6 Sec. 5. [256K.05] [TEMPORARY JOBS PROGRAM.] 147.7 Subdivision 1. [PROGRAM ESTABLISHED.] The provider must 147.8 establish and operate a program to provide temporary jobs to 147.9 participants who, after eight weeks of job search, are not hired 147.10 into a nonsubsidized or a subsidized job, or are deferred under 147.11 section 256K.03, subdivision 8. The temporary jobs to be 147.12 created under this section must be public service jobs that 147.13 serve a useful public service such as: health, social service, 147.14 environmental protection, education, urban and rural development 147.15 and redevelopment, welfare, recreation, public facilities, 147.16 public safety, community service, services to the aged or 147.17 disabled citizens, and child care. 147.18 Subd. 2. [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 147.19 JOBS.] The provider must assign the participant who (1) is 147.20 within completion of the required eight weeks of job search and 147.21 has failed to secure a nonsubsidized or a subsidized job for at 147.22 least 32 hours per week, or (2) does not earn a net income from 147.23 self-employment that is equal to at least the AFDC, MFIP-S or 147.24 family general assistance monthly grant for the household size, 147.25 whichever is applicable, to a temporary public service job. The 147.26 assignment must be made seven days before the end of the job 147.27 search and be based on section 256K.03, subdivision 12. The 147.28 participant that is deferred under section 256K.03, subdivision 147.29 8, will be assigned by the provider to a temporary public 147.30 service job within seven days after the application. 147.31 Subd. 3. [PARTICIPANT'S STATUS.] The participant who is 147.32 working in a temporary public service job under this section is 147.33 not considered an employee for the purposes of unemployment 147.34 insurance compensation, retirement, or civil service laws, and 147.35 shall not perform work ordinarily performed by a public employee. 147.36 Subd. 4. [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 148.1 discretion of the provider, the participant who is working in a 148.2 temporary public service job under section 256K.03, subdivision 148.3 12, may be required to continue to look for a job for up to 148.4 eight hours per week in addition to working. The participant 148.5 who is working at least 20 hours per week but less than 32 hours 148.6 per week in a nonsubsidized or subsidized job may be required to 148.7 look for a job for up to 20 hours per week in lieu of work in 148.8 the temporary public service job so that the total hours of work 148.9 and job search is not more than 40 hours per week. 148.10 Subd. 5. [EXCUSED ABSENCES.] The participant who is 148.11 working in a temporary public service job may be allowed excused 148.12 absences from the assigned temporary job site up to eight hours 148.13 per month. For purposes of this subdivision, "excused absence" 148.14 means absence due to temporary illness or injury of the 148.15 caregiver or a member of the caregiver's family, the 148.16 unavailability of licensed child care or unavailability of 148.17 transportation needed to go to and from the work site, a job 148.18 interview, or a nonmedical emergency. For purposes of this 148.19 subdivision, "emergency" means a sudden, unexpected occurrence 148.20 or situation of a serious or urgent nature that requires action. 148.21 Subd. 6. [MOVE TO A DIFFERENT COUNTY.] If the applicant or 148.22 recipient who is required to participate in the work first 148.23 program moves to a different county in this state, the benefits 148.24 and enabling services agreed upon in the self-sufficiency 148.25 agreement shall be provided by the pilot county where the 148.26 applicant or recipient originated, provided the move was part of 148.27 the job search or employability development plan. If the 148.28 applicant or recipient is moving to a different county for 148.29 failure to comply with the requirements of the work first 148.30 program, the applicant or recipient will not be eligible for 148.31 MFIP-S in this state for at least six months from the date of 148.32 the move. 148.33 Sec. 6. [256K.06] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 148.34 RENT AND UTILITIES VENDOR PAYMENT.] 148.35 Payments for rent and utilities up to the amount of AFDC, 148.36 MFIP-S, or family general assistance benefits to which the 149.1 assistance unit is entitled shall be provided in the form of 149.2 vendor payments for as many months as the applicant is eligible 149.3 or six months, whichever comes first. The residual amount after 149.4 vendor payment, if any, will be paid to the AFDC, MFIP-S or 149.5 family general assistance recipient, unless it is used as a wage 149.6 subsidy under section 256K.09, subdivision 2. This provision 149.7 shall apply to all applicants including those meeting the 149.8 exemption categories under section 256K.03, subdivision 5, or 149.9 deferral categories under section 256K.03, subdivision 8. To 149.10 the extent needed, a job search allowance shall be provided for 149.11 up to eight weeks to cover expenses related to the job search. 149.12 Before the job search allowance is issued, it must be approved 149.13 by the employment advisor and financial specialist, and clearly 149.14 described in the job search plan. 149.15 Sec. 7. [256K.07] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 149.16 ASSISTANCE, AND CHILD CARE.] 149.17 The participant shall be treated as an AFDC, MFIP-S or 149.18 family general assistance recipient, whichever is applicable, 149.19 for food stamps, medical assistance, and child care eligibility 149.20 purposes. The participant who leaves the program as a result of 149.21 increased earnings from employment shall be eligible for 149.22 transitional Medical Assistance and child care without regard to 149.23 AFDC, MFIP-S or family general assistance receipt in three of 149.24 the six months preceding ineligibility. 149.25 Sec. 8. [256K.08] [SANCTIONS AND APPEAL PROCESS.] 149.26 Subdivision 1. [GOOD CAUSE.] (a) For purposes of this 149.27 subdivision, "good cause" means absence due to temporary illness 149.28 or injury of the participant or a member of the participant's 149.29 family, the unavailability of licensed child care or 149.30 unavailability of transportation needed to attend orientation or 149.31 conduct job search, or a nonmedical emergency as defined under 149.32 section 256K.05, subdivision 5. 149.33 (b) The applicant who is required, but fails, without good 149.34 cause, to participate in orientation, complete the job search 149.35 plan or employability development plan, and comply with the job 149.36 search requirements under section 256K.03, prior to being 150.1 eligible for AFDC, MFIP-S or family general assistance shall be 150.2 denied benefits. The applicant will not be eligible for 150.3 benefits in this state for at least six months. 150.4 (c) If, after receiving a written warning from the county, 150.5 the participant fails, without good cause, to conduct at least 150.6 32 hours of job search per week in any given two-week period, 150.7 the participant will be immediately required to work for at 150.8 least 16 hours per week in a temporary public service job. The 150.9 required 32 hours per week of job search will be reduced to 16 150.10 hours. 150.11 (d) If the participant who is deferred under section 150.12 256K.03, subdivision 8, fails to comply with the activities 150.13 described in the employability development plan, the participant 150.14 will lose the deferment status, provided that the participant 150.15 has received at least two written warnings from the provider. 150.16 (e) If the participant refuses to work in a temporary 150.17 public service job, or is terminated from a temporary public 150.18 service job for failure to work, benefits to the assistance unit 150.19 shall be terminated and the participant shall not be eligible 150.20 for aid under the MFIP-S program for at least six months from 150.21 the date of refusal or termination. If the participant, before 150.22 completing at least four consecutive months of employment, 150.23 voluntarily quits or is terminated from a nonsubsidized or a 150.24 subsidized job, the participant shall immediately be assigned to 150.25 work in a temporary public service job for at least 32 hours per 150.26 week for up to 67 working days unless the participant is hired 150.27 or rehired into a nonsubsidized or subsidized job. 150.28 Subd. 2. [NOTICE OF SANCTIONS.] If the county determines 150.29 that the participant has failed or refused without good cause, 150.30 as defined in subdivision 1, to cooperate with the program 150.31 requirements, the county shall inform the participant in writing 150.32 of its intent to impose an applicable sanction listed under 150.33 subdivision 1 and the opportunity to have a conciliation 150.34 conference upon request and within five days of the notice 150.35 before a sanction is imposed. 150.36 Sec. 9. [256K.09] [FUNDING.] 151.1 Subdivision 1. [LEVERAGING GRANT AMOUNT TO SECURE OTHER 151.2 FUNDS.] The county agency or the provider, in cooperation with 151.3 the department, may leverage the grant amount to secure other 151.4 funds from employers, foundations, and the community for the 151.5 purpose of developing additional components to benefit children 151.6 and improve the program. 151.7 Subd. 2. [EMPLOYER REIMBURSEMENT.] The employer shall be 151.8 reimbursed for wages paid to participants under section 256K.04, 151.9 subdivision 2. 151.10 Sec. 10. [REPEALER.] 151.11 Minnesota Statutes 1996, sections 256.7351; 256.7352; 151.12 256.7353; 256.7354; 256.7355; 256.7356; 256.7357; 256.7358; and 151.13 256.7359, are repealed. 151.14 Sec. 11. [EFFECTIVE DATE.] 151.15 Article 2 is effective July 1, 1997. 151.16 ARTICLE 3 151.17 ASSISTANCE PROGRAM CHANGES 151.18 Section 1. Minnesota Statutes 1996, section 256.01, 151.19 subdivision 2, is amended to read: 151.20 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 151.21 section 241.021, subdivision 2, the commissioner of human 151.22 services shall: 151.23 (1) Administer and supervise all forms of public assistance 151.24 provided for by state law and other welfare activities or 151.25 services as are vested in the commissioner. Administration and 151.26 supervision of human services activities or services includes, 151.27 but is not limited to, assuring timely and accurate distribution 151.28 of benefits, completeness of service, and quality program 151.29 management. In addition to administering and supervising human 151.30 services activities vested by law in the department, the 151.31 commissioner shall have the authority to: 151.32 (a) require county agency participation in training and 151.33 technical assistance programs to promote compliance with 151.34 statutes, rules, federal laws, regulations, and policies 151.35 governing human services; 151.36 (b) monitor, on an ongoing basis, the performance of county 152.1 agencies in the operation and administration of human services, 152.2 enforce compliance with statutes, rules, federal laws, 152.3 regulations, and policies governing welfare services and promote 152.4 excellence of administration and program operation; 152.5 (c) develop a quality control program or other monitoring 152.6 program to review county performance and accuracy of benefit 152.7 determinations; 152.8 (d) require county agencies to make an adjustment to the 152.9 public assistance benefits issued to any individual consistent 152.10 with federal law and regulation and state law and rule and to 152.11 issue or recover benefits as appropriate; 152.12 (e) delay or deny payment of all or part of the state and 152.13 federal share of benefits and administrative reimbursement 152.14 according to the procedures set forth in section 256.017; and 152.15 (f) make contracts with and grants to public and private 152.16 agencies and organizations, both profit and nonprofit, and 152.17 individuals, using appropriated funds. 152.18 (2) Inform county agencies, on a timely basis, of changes 152.19 in statute, rule, federal law, regulation, and policy necessary 152.20 to county agency administration of the programs. 152.21 (3) Administer and supervise all child welfare activities; 152.22 promote the enforcement of laws protecting handicapped, 152.23 dependent, neglected and delinquent children, and children born 152.24 to mothers who were not married to the children's fathers at the 152.25 times of the conception nor at the births of the children; 152.26 license and supervise child-caring and child-placing agencies 152.27 and institutions; supervise the care of children in boarding and 152.28 foster homes or in private institutions; and generally perform 152.29 all functions relating to the field of child welfare now vested 152.30 in the state board of control. 152.31 (4) Administer and supervise all noninstitutional service 152.32 to handicapped persons, including those who are visually 152.33 impaired, hearing impaired, or physically impaired or otherwise 152.34 handicapped. The commissioner may provide and contract for the 152.35 care and treatment of qualified indigent children in facilities 152.36 other than those located and available at state hospitals when 153.1 it is not feasible to provide the service in state hospitals. 153.2 (5) Assist and actively cooperate with other departments, 153.3 agencies and institutions, local, state, and federal, by 153.4 performing services in conformity with the purposes of Laws 153.5 1939, chapter 431. 153.6 (6) Act as the agent of and cooperate with the federal 153.7 government in matters of mutual concern relative to and in 153.8 conformity with the provisions of Laws 1939, chapter 431, 153.9 including the administration of any federal funds granted to the 153.10 state to aid in the performance of any functions of the 153.11 commissioner as specified in Laws 1939, chapter 431, and 153.12 including the promulgation of rules making uniformly available 153.13 medical care benefits to all recipients of public assistance, at 153.14 such times as the federal government increases its participation 153.15 in assistance expenditures for medical care to recipients of 153.16 public assistance, the cost thereof to be borne in the same 153.17 proportion as are grants of aid to said recipients. 153.18 (7) Establish and maintain any administrative units 153.19 reasonably necessary for the performance of administrative 153.20 functions common to all divisions of the department. 153.21 (8) Act as designated guardian of both the estate and the 153.22 person of all the wards of the state of Minnesota, whether by 153.23 operation of law or by an order of court, without any further 153.24 act or proceeding whatever, except as to persons committed as 153.25 mentally retarded. 153.26 (9) Act as coordinating referral and informational center 153.27 on requests for service for newly arrived immigrants coming to 153.28 Minnesota. 153.29 (10) The specific enumeration of powers and duties as 153.30 hereinabove set forth shall in no way be construed to be a 153.31 limitation upon the general transfer of powers herein contained. 153.32 (11) Establish county, regional, or statewide schedules of 153.33 maximum fees and charges which may be paid by county agencies 153.34 for medical, dental, surgical, hospital, nursing and nursing 153.35 home care and medicine and medical supplies under all programs 153.36 of medical care provided by the state and for congregate living 154.1 care under the income maintenance programs. 154.2 (12) Have the authority to conduct and administer 154.3 experimental projects to test methods and procedures of 154.4 administering assistance and services to recipients or potential 154.5 recipients of public welfare. To carry out such experimental 154.6 projects, it is further provided that the commissioner of human 154.7 services is authorized to waive the enforcement of existing 154.8 specific statutory program requirements, rules, and standards in 154.9 one or more counties. The order establishing the waiver shall 154.10 provide alternative methods and procedures of administration, 154.11 shall not be in conflict with the basic purposes, coverage, or 154.12 benefits provided by law, and in no event shall the duration of 154.13 a project exceed four years. It is further provided that no 154.14 order establishing an experimental project as authorized by the 154.15 provisions of this section shall become effective until the 154.16 following conditions have been met: 154.17 (a) The proposed comprehensive plan, including estimated 154.18 project costs and the proposed order establishing the waiver, 154.19 shall be filed with the secretary of the senate and chief clerk 154.20 of the house of representatives at least 60 days prior to its 154.21 effective date. 154.22 (b) The secretary of health, education, and welfare of the 154.23 United States has agreed, for the same project, to waive state 154.24 plan requirements relative to statewide uniformity. 154.25 (c) A comprehensive plan, including estimated project 154.26 costs, shall be approved by the legislative advisory commission 154.27 and filed with the commissioner of administration. 154.28 (13) In accordance with federal requirements, establish 154.29 procedures to be followed by local welfare boards in creating 154.30 citizen advisory committees, including procedures for selection 154.31 of committee members. 154.32 (14) Allocate federal fiscal disallowances or sanctions 154.33 which are based on quality control error rates for the aid to 154.34 families with dependent children, medical assistance, or food 154.35 stamp program in the following manner: 154.36 (a) One-half of the total amount of the disallowance shall 155.1 be borne by the county boards responsible for administering the 155.2 programs. For the medical assistance and AFDC programs, 155.3 disallowances shall be shared by each county board in the same 155.4 proportion as that county's expenditures for the sanctioned 155.5 program are to the total of all counties' expenditures for the 155.6 AFDC and medical assistance programs. For the food stamp 155.7 program, sanctions shall be shared by each county board, with 50 155.8 percent of the sanction being distributed to each county in the 155.9 same proportion as that county's administrative costs for food 155.10 stamps are to the total of all food stamp administrative costs 155.11 for all counties, and 50 percent of the sanctions being 155.12 distributed to each county in the same proportion as that 155.13 county's value of food stamp benefits issued are to the total of 155.14 all benefits issued for all counties. Each county shall pay its 155.15 share of the disallowance to the state of Minnesota. When a 155.16 county fails to pay the amount due hereunder, the commissioner 155.17 may deduct the amount from reimbursement otherwise due the 155.18 county, or the attorney general, upon the request of the 155.19 commissioner, may institute civil action to recover the amount 155.20 due. 155.21 (b) Notwithstanding the provisions of paragraph (a), if the 155.22 disallowance results from knowing noncompliance by one or more 155.23 counties with a specific program instruction, and that knowing 155.24 noncompliance is a matter of official county board record, the 155.25 commissioner may require payment or recover from the county or 155.26 counties, in the manner prescribed in paragraph (a), an amount 155.27 equal to the portion of the total disallowance which resulted 155.28 from the noncompliance, and may distribute the balance of the 155.29 disallowance according to paragraph (a). 155.30 (15) Develop and implement special projects that maximize 155.31 reimbursements and result in the recovery of money to the 155.32 state. For the purpose of recovering state money, the 155.33 commissioner may enter into contracts with third parties. Any 155.34 recoveries that result from projects or contracts entered into 155.35 under this paragraph shall be deposited in the state treasury 155.36 and credited to a special account until the balance in the 156.1 account reaches $1,000,000. When the balance in the account 156.2 exceeds $1,000,000, the excess shall be transferred and credited 156.3 to the general fund. All money in the account is appropriated 156.4 to the commissioner for the purposes of this paragraph. 156.5 (16)Have the authority to make direct payments to156.6facilities providing shelter to women and their children156.7pursuant to section 256D.05, subdivision 3. Upon the written156.8request of a shelter facility that has been denied payments156.9under section 256D.05, subdivision 3, the commissioner shall156.10review all relevant evidence and make a determination within 30156.11days of the request for review regarding issuance of direct156.12payments to the shelter facility. Failure to act within 30 days156.13shall be considered a determination not to issue direct payments.156.14(17)Have the authority to establish and enforce the 156.15 following county reporting requirements: 156.16 (a) The commissioner shall establish fiscal and statistical 156.17 reporting requirements necessary to account for the expenditure 156.18 of funds allocated to counties for human services programs. 156.19 When establishing financial and statistical reporting 156.20 requirements, the commissioner shall evaluate all reports, in 156.21 consultation with the counties, to determine if the reports can 156.22 be simplified or the number of reports can be reduced. 156.23 (b) The county board shall submit monthly or quarterly 156.24 reports to the department as required by the commissioner. 156.25 Monthly reports are due no later than 15 working days after the 156.26 end of the month. Quarterly reports are due no later than 30 156.27 calendar days after the end of the quarter, unless the 156.28 commissioner determines that the deadline must be shortened to 156.29 20 calendar days to avoid jeopardizing compliance with federal 156.30 deadlines or risking a loss of federal funding. Only reports 156.31 that are complete, legible, and in the required format shall be 156.32 accepted by the commissioner. 156.33 (c) If the required reports are not received by the 156.34 deadlines established in clause (b), the commissioner may delay 156.35 payments and withhold funds from the county board until the next 156.36 reporting period. When the report is needed to account for the 157.1 use of federal funds and the late report results in a reduction 157.2 in federal funding, the commissioner shall withhold from the 157.3 county boards with late reports an amount equal to the reduction 157.4 in federal funding until full federal funding is received. 157.5 (d) A county board that submits reports that are late, 157.6 illegible, incomplete, or not in the required format for two out 157.7 of three consecutive reporting periods is considered 157.8 noncompliant. When a county board is found to be noncompliant, 157.9 the commissioner shall notify the county board of the reason the 157.10 county board is considered noncompliant and request that the 157.11 county board develop a corrective action plan stating how the 157.12 county board plans to correct the problem. The corrective 157.13 action plan must be submitted to the commissioner within 45 days 157.14 after the date the county board received notice of noncompliance. 157.15 (e) The final deadline for fiscal reports or amendments to 157.16 fiscal reports is one year after the date the report was 157.17 originally due. If the commissioner does not receive a report 157.18 by the final deadline, the county board forfeits the funding 157.19 associated with the report for that reporting period and the 157.20 county board must repay any funds associated with the report 157.21 received for that reporting period. 157.22 (f) The commissioner may not delay payments, withhold 157.23 funds, or require repayment under paragraph (c) or (e) if the 157.24 county demonstrates that the commissioner failed to provide 157.25 appropriate forms, guidelines, and technical assistance to 157.26 enable the county to comply with the requirements. If the 157.27 county board disagrees with an action taken by the commissioner 157.28 under paragraph (c) or (e), the county board may appeal the 157.29 action according to sections 14.57 to 14.69. 157.30 (g) Counties subject to withholding of funds under 157.31 paragraph (c) or forfeiture or repayment of funds under 157.32 paragraph (e) shall not reduce or withhold benefits or services 157.33 to clients to cover costs incurred due to actions taken by the 157.34 commissioner under paragraph (c) or (e). 157.35(18)(17) Allocate federal fiscal disallowances or 157.36 sanctions for audit exceptions when federal fiscal disallowances 158.1 or sanctions are based on a statewide random sample for the 158.2 foster care program under title IV-E of the Social Security Act, 158.3 United States Code, title 42, in direct proportion to each 158.4 county's title IV-E foster care maintenance claim for that 158.5 period. 158.6 Sec. 2. Minnesota Statutes 1996, section 256.031, is 158.7 amended by adding a subdivision to read: 158.8 Subd. 6. [END OF FIELD TRIALS.] Upon agreement with the 158.9 federal government, the field trials of the Minnesota family 158.10 investment plan will end June 30, 1998. Families in the 158.11 comparison group under subdivision 3, paragraph (d), clause (i), 158.12 receiving aid to families with dependent children under sections 158.13 256.72 to 256.87, and STRIDE services under section 256.736 will 158.14 continue in those programs until June 30, 1998. After June 30, 158.15 1998, families who cease receiving assistance under the 158.16 Minnesota family investment plan and comparison group families 158.17 who cease receiving assistance under AFDC and STRIDE who are 158.18 eligible for the Minnesota family investment program-statewide 158.19 (MFIP-S), medical assistance, general assistance medical care, 158.20 or the food stamp program shall be placed with their consent on 158.21 the programs for which they are eligible. 158.22 Sec. 3. Minnesota Statutes 1996, section 256.033, 158.23 subdivision 1, is amended to read: 158.24 Subdivision 1. [ELIGIBILITY CONDITIONS.] (a) A family is 158.25 entitled to assistance under the Minnesota family investment 158.26 plan if the family is assigned to a test group in the evaluation 158.27 as provided in section 256.031, subdivision 3, paragraph (d), 158.28 and: 158.29 (1) the family meets the definition of assistance unit 158.30 under section 256.032, subdivision 1a; 158.31 (2) the family's resources not excluded under subdivision 3 158.32 do not exceed $2,000; 158.33 (3) the family can verify citizenship or lawful resident 158.34 alien status; and 158.35 (4) the family provides or applies for a social security 158.36 number for each member of the family receiving assistance under 159.1 the family investment plan. 159.2 (b) A family is eligible for the family investment plan if 159.3 the net income is less than the transitional standard as defined 159.4 in section 256.032, subdivision 13, for that size and 159.5 composition of family. In determining available net income, the 159.6 provisions in subdivision 2 shall apply. 159.7 (c) Upon application, a family is initially eligible for 159.8 the family investment plan if the family's gross income does not 159.9 exceed the applicable transitional standard of assistance for 159.10 that family as defined under section 256.032, subdivision 13, 159.11 after deducting: 159.12 (1) 18 percent to cover taxes; and 159.13 (2) actual dependent care costs up to the maximum 159.14 disregarded under United States Code, title 42, section 159.15 602(a)(8)(A)(iii); and159.16(3) $50 of child support collected in that month. 159.17 (d) A family can remain eligible for the program if: 159.18 (1) it meets the conditions in subdivision 1a; and 159.19 (2) its income is below the transitional standard in 159.20 section 256.032, subdivision 13, allowing for income exclusions 159.21 in subdivision 2 and after applying the family investment plan 159.22 treatment of earnings under subdivision 1a. 159.23 Sec. 4. Minnesota Statutes 1996, section 256.033, 159.24 subdivision 1a, is amended to read: 159.25 Subd. 1a. [TREATMENT OF INCOME FOR THE PURPOSES OF 159.26 CONTINUED ELIGIBILITY.] To help families during their transition 159.27 from the Minnesota family investment plan to self-sufficiency, 159.28 the following income supports are available: 159.29 (a) The $30 and one-third and $90 disregards allowed under 159.30 section 256.74, subdivision 1, and the 20 percent earned income 159.31 deduction allowed under the federal Food Stamp Act of 1977, as 159.32 amended, are replaced with a single disregard of not less than 159.33 35 percent of gross earned income to cover taxes and other 159.34 work-related expenses and to reward the earning of income. This 159.35 single disregard is available for the entire time a family 159.36 receives assistance through the Minnesota family investment plan. 160.1 (b) The dependent care deduction, as prescribed under 160.2 section 256.74, subdivision 1, and United States Code, title 7, 160.3 section 2014(e), is replaced for families with earned income who 160.4 need assistance with dependent care with an entitlement to a 160.5 dependent care subsidy from money appropriated for the Minnesota 160.6 family investment plan. 160.7 (c) The family wage level, as defined in section 256.032, 160.8 subdivision 8, allows families to supplement earned income with 160.9 assistance received through the Minnesota family investment 160.10 plan. If, after earnings are adjusted according to the 160.11 disregard described in paragraph (a), earnings have raised 160.12 family income to a level equal to or greater than the family 160.13 wage level, the amount of assistance received through the 160.14 Minnesota family investment plan must be reduced. 160.15(d) The first $50 of any timely support payment for a month160.16received by the public agency responsible for child support160.17enforcement shall be paid to the family and disregarded in160.18determining eligibility and the amount of assistance in160.19accordance with United States Code, title 42, sections160.20602(a)(8)(A)(vi) and 657(b)(1). This paragraph applies160.21regardless of whether the caregiver is in transitional status,160.22is exempt from developing or complying with the terms of a160.23family support agreement, or has had a sanction imposed under160.24subdivision 3.160.25 Sec. 5. Minnesota Statutes 1996, section 256.736, 160.26 subdivision 3a, is amended to read: 160.27 Subd. 3a. [PARTICIPATION.] (a)Except as provided under160.28paragraphs (b) and (c),Participation in employment and training 160.29 services under this section is limited to the following 160.30 recipients: 160.31 (1) caretakers who are required to participate in a job 160.32 search under subdivision 14; 160.33 (2) custodial parents who are subject to the school 160.34 attendance or case management participation requirements under 160.35 subdivision 3b; 160.36(3) caretakers whose participation in employment and161.1training services began prior to May 1, 1990, if the caretaker's161.2AFDC eligibility has not been interrupted for 30 days or more161.3and the caretaker's employability development plan has not been161.4completed;161.5(4) recipients who are members of a family in which the161.6youngest child is within two years of being ineligible for AFDC161.7due to age;161.8(5) custodial parents under the age of 24 who: (i) have161.9not completed a high school education and who, at the time of161.10application for AFDC, were not enrolled in high school or in a161.11high school equivalency program; or (ii) have had little or no161.12work experience in the preceding year;161.13(6) recipients who have received AFDC for 36 or more months161.14out of the last 60 months;161.15(7) recipients who are participants in the self-employment161.16investment demonstration project under section 268.95; and161.17(8) recipients who participate in the new chance research161.18and demonstration project under contract with the department of161.19human servicesand 161.20 (3) after the county agency assures the availability of 161.21 employment and training services for recipients identified under 161.22 clauses (1) and (2), and to the extent of available resources, 161.23 any other AFDC recipient. 161.24 (b)If the commissioner determines that participation of161.25persons listed in paragraph (a) in employment and training161.26services is insufficient either to meet federal performance161.27targets or to fully utilize funds appropriated under this161.28section, the commissioner may, after notifying the chairs of the161.29senate family services committee, the house health and human161.30services committee, the family services division of the senate161.31family services and health care committees, and the human161.32services division of the house health and human services161.33committee, permit additional groups of recipients to participate161.34until the next meeting of the legislative advisory commission,161.35after which the additional groups may continue to enroll for161.36participation unless the legislative advisory commission162.1disapproves the continued enrollment. The commissioner shall162.2allow participation of additional groups in the following order162.3only as needed to meet performance targets or fully utilize162.4funding for employment and training services under this section:162.5(1) recipients who have received 24 or more months of AFDC162.6out of the previous 48 months; and162.7(2) recipients who have not completed a high school162.8education or a high school equivalency program.162.9(c) To the extent of money appropriated specifically for162.10this paragraph, the commissioner may permit AFDC caretakers who162.11are not eligible for participation in employment and training162.12services under the provisions of paragraph (a) or (b) to162.13participate. Money must be allocated to county agencies based162.14on the county's percentage of participants statewide in services162.15under this section in the prior calendar year. Caretakers must162.16be selected on a first-come, first-served basis from a waiting162.17list of caretakers who volunteer to participate. The162.18commissioner may, on a quarterly basis, reallocate unused162.19allocations to county agencies that have sufficient volunteers.162.20If funding under this paragraph is discontinued in future fiscal162.21years, caretakers who began participating under this paragraph162.22must be deemed eligible under paragraph (a), clause (3).162.23(d)Participants who are eligible and enroll in the STRIDE 162.24 program under one of the categories of this subdivision are 162.25 required to cooperate with the assessment and employability plan 162.26 development and to meet the terms of their employability plan. 162.27 Failure to comply, without good cause, shall result in the 162.28 imposition of sanctions as specified in subdivision 4, clause 162.29 (6). 162.30 Sec. 6. Minnesota Statutes 1996, section 256.74, 162.31 subdivision 1, is amended to read: 162.32 Subdivision 1. [AMOUNT.] The amount of assistance which 162.33 shall be granted to or on behalf of any dependent child and 162.34 parent or other needy eligible relative caring for the dependent 162.35 child shall be determined by the county agencyin accordance162.36withaccording to rules promulgated by the commissioner and 163.1 shall be sufficient, when added to all other income and support 163.2 available to the child, to provide the child with a reasonable 163.3 subsistence compatible with decency and health. To the extent 163.4 permissible under federal law, an eligible relative caretaker or 163.5 parent shall have the option to include in the assistance unit 163.6 the needs, income, and resources of the following essential 163.7 persons who are not otherwise eligible for AFDC because they do 163.8 not qualify as a caretaker or as a dependent child: 163.9 (1) a parent or relative caretaker's spouse and 163.10 stepchildren; or 163.11 (2) blood or legally adopted relatives who are under the 163.12 age of 18 or under the age of 19 years who are regularly 163.13 attending as a full-time student, and are expected to complete 163.14 before or during the month of their 19th birthday, a high school 163.15 or secondary level course of vocational or technical training 163.16 designed to prepare students for gainful employment. The amount 163.17 shall be based on the method of budgeting required in Public Law 163.18 Number 97-35, section 2315, United States Code, title 42, 163.19 section 602, as amended and federal regulations at Code of 163.20 Federal Regulations, title 45, section 233. Nonrecurring lump 163.21 sum income received by an AFDC family must be budgeted in the 163.22 normal retrospective cycle. When the family's income, after 163.23 application of the applicable disregards, exceeds the need 163.24 standard for the family because of receipt of earned or unearned 163.25 lump sum income, the family will be ineligible for the full 163.26 number of months derived by dividing the sum of the lump sum 163.27 income and other income by the monthly need standard for a 163.28 family of that size. Any income remaining from this calculation 163.29 is income in the first month following the period of 163.30 ineligibility. The first month of ineligibility is the payment 163.31 month that corresponds with the budget month in which the lump 163.32 sum income was received. For purposes of applying the lump sum 163.33 provision, family includes those persons defined in the Code of 163.34 Federal Regulations, title 45, section 233.20(a)(3)(ii)(F). A 163.35 period of ineligibility must be shortened when the standard of 163.36 need increases and the amount the family would have received 164.1 also changes, an amount is documented as stolen, an amount is 164.2 unavailable because a member of the family left the household 164.3 with that amount and has not returned, an amount is paid by the 164.4 family during the period of ineligibility to cover a cost that 164.5 would otherwise qualify for emergency assistance, or the family 164.6 incurs and pays for medical expenses which would have been 164.7 covered by medical assistance if eligibility existed. In making 164.8 its determination the county agency shall disregard the 164.9 following from family income: 164.10 (1) all the earned income of each dependent child applying 164.11 for AFDC if the child is a full-time student and all of the 164.12 earned income of each dependent child receiving AFDC who is a 164.13 full-time student or is a part-time student who is not a 164.14 full-time employee. A student is one who is attending a school, 164.15 college, or university, or a course of vocational or technical 164.16 training designed to fit students for gainful employment and 164.17 includes a participant in the Job Corps program under the Job 164.18 Training Partnership Act (JTPA). The county agency shall also 164.19 disregard all income of each dependent child applying for or 164.20 receiving AFDC when the income is derived from a program carried 164.21 out under JTPA, except that disregard of earned income may not 164.22 exceed six months per calendar year; 164.23 (2) all educational assistance, except the county agency 164.24 shall count graduate student teaching assistantships, 164.25 fellowships, and other similar paid work as earned income and, 164.26 after allowing deductions for any unmet and necessary 164.27 educational expenses, shall count scholarships or grants awarded 164.28 to graduate students that do not require teaching or research as 164.29 unearned income; 164.30 (3) the first $90 of each individual's earned income. For 164.31 self-employed persons, the expenses directly related to 164.32 producing goods and services and without which the goods and 164.33 services could not be produced shall be disregarded 164.34pursuantaccording to rules promulgated by the commissioner; 164.35 (4) thirty dollars plus one-third of each individual's 164.36 earned income for individuals found otherwise eligible to 165.1 receive aid or who have received aid in one of the four months 165.2 before the month of application. With respect to any month, the 165.3 county welfare agency shall not disregard under this clause any 165.4 earned income of any person who has: (a) reduced earned income 165.5 without good cause within 30 days preceding any month in which 165.6 an assistance payment is made; (b) refused without good cause to 165.7 accept an offer of suitable employment;(c) left employment or165.8reduced earnings without good cause and applied for assistance165.9so as to be able later to return to employment with the165.10advantage of the income disregard;or(d)(c) failed without 165.11 good cause to make a timely report of earned incomein165.12accordance withaccording to rules promulgated by the 165.13 commissioner of human services. Persons who are already 165.14 employed and who apply for assistance shall have their needs 165.15 computed with full account taken of their earned and other 165.16 income. If earned and other income of the family is less than 165.17 need, as determined on the basis of public assistance standards, 165.18 the county agency shall determine the amount of the grant by 165.19 applying the disregard of income provisions. The county agency 165.20 shall not disregard earned income for persons in a family if the 165.21 total monthly earned and other income exceeds their needs, 165.22 unless for any one of the four preceding months their needs were 165.23 met in whole or in part by a grant payment. The disregard of165.24$30 and one-third of earned income in this clause shall be165.25applied to the individual's income for a period not to exceed165.26four consecutive months. Any month in which the individual165.27loses this disregard because of the provisions of subclauses (a)165.28to (d) shall be considered as one of the four months. An165.29additional $30 work incentive must be available for an165.30eight-month period beginning in the month following the last165.31month of the combined $30 and one-third work incentive. This165.32period must be in effect whether or not the person has earned165.33income or is eligible for AFDC. To again qualify for the earned165.34income disregards under this clause, the individual must not be165.35a recipient of aid for a period of 12 consecutive months. When165.36an assistance unit becomes ineligible for aid due to the fact166.1that these disregards are no longer applied to income, the166.2assistance unit shall be eligible for medical assistance166.3benefits for a 12-month period beginning with the first month of166.4AFDC ineligibility; 166.5 (5) an amount equal to the actual expenditures for the care 166.6 of each dependent child or incapacitated individual living in 166.7 the same home and receiving aid, not to exceed: (a) $175 for 166.8 each individual age two and older, and $200 for each individual 166.9 under the age of two. The dependent care disregard must be 166.10 applied after all other disregards under this subdivision have 166.11 been applied; 166.12 (6)the first $50 per assistance unit of the monthly166.13support obligation collected by the support and recovery (IV-D)166.14unit. The first $50 of periodic support payments collected by166.15the public authority responsible for child support enforcement166.16from a person with a legal obligation to pay support for a166.17member of the assistance unit must be paid to the assistance166.18unit within 15 days after the end of the month in which the166.19collection of the periodic support payments occurred and must be166.20disregarded when determining the amount of assistance. A review166.21of a payment decision under this clause must be requested within166.2230 days after receiving the notice of collection of assigned166.23support or within 90 days after receiving the notice if good166.24cause can be shown for not making the request within the 30-day166.25limit;166.26(7)that portion of an insurance settlement earmarked and 166.27 used to pay medical expenses, funeral and burial costs, or to 166.28 repair or replace insured property; and 166.29(8)(7) all earned income tax credit payments received by 166.30 the family as a refund of federal income taxes or made as 166.31 advance payments by an employer. 166.32 All payments madepursuantaccording to a court order for 166.33 the support of children not living in the assistance unit's 166.34 household shall be disregarded from the income of the person 166.35 with the legal obligation to pay support, provided that, if 166.36 there has been a change in the financial circumstances of the 167.1 person with the legal obligation to pay support since the 167.2 support order was entered, the person with the legal obligation 167.3 to pay support has petitioned for a modification of the support 167.4 order. 167.5 Sec. 7. Minnesota Statutes 1996, section 256.82, 167.6 subdivision 2, is amended to read: 167.7 Subd. 2. [FOSTER CARE MAINTENANCE PAYMENTS.] 167.8 Notwithstanding subdivision 1, for the purposes of foster care 167.9 maintenance payments under Title IV-E of the federal Social 167.10 Security Act, United States Code, title 42, sections 670 to 676, 167.11 during the period beginning July 1, 1985, and ending December 167.12 31, 1985, the county paying the maintenance costs shall be 167.13 reimbursed for the costs from those federal funds available for 167.14 that purpose together with an amount of state funds equal to a 167.15 percentage of the difference between the total cost and the 167.16 federal funds made available for payment. This percentage shall 167.17 not exceed the percentage specified in subdivision 1 for the aid 167.18 to families with dependent children program. In the event that 167.19 the state appropriation for this purpose is less than the state 167.20 percentage set in subdivision 1, the reimbursement shall be 167.21 ratably reduced to the county. Beginning January 1, 1986, for 167.22 the purpose of foster care maintenance payments under Title IV-E 167.23 of the Social Security Act, United States Code, title 42, 167.24 sections 670 to 676, the county paying the maintenance costs 167.25 must be reimbursed for the costs from the federal money 167.26 available for the purpose. Beginning July 1, 1997, for the 167.27 purposes of determining a child's eligibility under title IV-E 167.28 of the Social Security Act, the placing agency shall use AFDC 167.29 requirements as specified in federal law. 167.30 Sec. 8. Minnesota Statutes 1996, section 256.9354, is 167.31 amended by adding a subdivision to read: 167.32 Subd. 8. [SPONSOR'S INCOME AND RESOURCES DEEMED 167.33 AVAILABLE.] When determining eligibility for any federal or 167.34 state benefits under sections 256.9351 to 256.9363 and 256.9366 167.35 to 256.9369, the income and resources of all noncitizens shall 167.36 be deemed to include their sponsors' income and resources as 168.1 defined in the Personal Responsibility and Work Opportunity 168.2 Reconciliation Act of 1996, title IV, Public Law Number 104-193, 168.3 sections 421 and 422. 168.4 Sec. 9. Minnesota Statutes 1996, section 256B.055, 168.5 subdivision 3, is amended to read: 168.6 Subd. 3. [AFDC FAMILIES.] Until January 1, 1998, medical 168.7 assistance may be paid for a person who is eligible for or 168.8 receiving, or who would be eligible for, except for excess 168.9 income or assets, public assistance under the aid to families 168.10 with dependent children program in effect as of July 16, 1996, 168.11 as required by the Personal Responsibility and Work Opportunity 168.12 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193. 168.13 Sec. 10. Minnesota Statutes 1996, section 256B.055, is 168.14 amended by adding a subdivision to read: 168.15 Subd. 3a. [MFIP-S FAMILIES; FAMILIES ELIGIBLE UNDER PRIOR 168.16 AFDC RULES.] (a) Beginning January 1, 1998, or on the date that 168.17 MFIP-S is implemented in counties which choose the MFIP-S early 168.18 implementation option under section 256J.50, medical assistance 168.19 may be paid for a person receiving public assistance under the 168.20 MFIP-S program. 168.21 (b) Beginning January 1, 1998, or on the date that MFIP-S 168.22 is implemented in counties which elect to implement MFIP-S 168.23 earlier under section 256J.50, medical assistance may be paid 168.24 for a person who would have been eligible for public assistance 168.25 under the income and resource standards and deprivation 168.26 requirements, or who would have been eligible but for excess 168.27 income or assets, under the state's AFDC plan in effect as of 168.28 July 16, 1996, as required by the Personal Responsibility and 168.29 Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 168.30 Number 104-193. 168.31 Sec. 11. Minnesota Statutes 1996, section 256B.055, 168.32 subdivision 5, is amended to read: 168.33 Subd. 5. [PREGNANT WOMEN; DEPENDENT UNBORN CHILD.] Medical 168.34 assistance may be paid for a pregnant woman who has written 168.35 verification of a positive pregnancy test from a physician or 168.36 licensed registered nurse, who meets the other eligibility 169.1 criteria of this section and who would be categorically eligible 169.2 for assistance under theaid to families with dependent children169.3programstate's AFDC plan in effect as of July 16, 1996, as 169.4 required by the Personal Responsibility and Work Opportunity 169.5 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 169.6 if the child had been born and was living with the woman. For 169.7 purposes of this subdivision, a woman is considered pregnant for 169.8 60 days postpartum. 169.9 Sec. 12. Minnesota Statutes 1996, section 256B.056, 169.10 subdivision 1a, is amended to read: 169.11 Subd. 1a. [INCOME AND ASSETS GENERALLY.] Unless 169.12 specifically required by state law or rule or federal law or 169.13 regulation, the methodologies used in counting income and assets 169.14 to determine eligibility for medical assistance for persons 169.15 whose eligibility category is based on blindness, disability, or 169.16 age of 65 or more years, the methodologies for the supplemental 169.17 security income program shall be used, except that payments made 169.18pursuantaccording to a court order for the support of children 169.19 shall be excluded from income in an amount not to exceed the 169.20 difference between the applicable income standard used in the 169.21 state's medical assistance program for aged, blind, and disabled 169.22 persons and the applicable income standard used in the state's 169.23 medical assistance program for families with children. 169.24 Exclusion of court-ordered child support payments is subject to 169.25 the condition that if there has been a change in the financial 169.26 circumstances of the person with the legal obligation to pay 169.27 support since the support order was entered, the person with the 169.28 legal obligation to pay support has petitioned for modification 169.29 of the support order. For families and children, which includes 169.30 all other eligibility categories, the methodologiesfor the aid169.31to families with dependent children program under section 256.73169.32 under the state's AFDC plan in effect as of July 16, 1996, as 169.33 required by the Personal Responsibility and Work Opportunity 169.34 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 169.35 shall be used. Effective upon federal approval, in-kind 169.36 contributions to, and payments made on behalf of, a recipient, 170.1 by an obligor, in satisfaction of or in addition to a temporary 170.2 or permanent order for child support or maintenance, shall be 170.3 considered income to the recipient. For these purposes, a 170.4 "methodology" does not include an asset or income standard, or 170.5 accounting method, or method of determining effective dates. 170.6 Sec. 13. Minnesota Statutes 1996, section 256B.056, 170.7 subdivision 3, is amended to read: 170.8 Subd. 3. [ASSET LIMITATIONS.] To be eligible for medical 170.9 assistance, a person must not individually own more than $3,000 170.10 in assets, or if a member of a household with two family 170.11 members,(husband and wife, or parent and child), the household 170.12 must not own more than $6,000 in assets, plus $200 for each 170.13 additional legal dependent. In addition to these maximum 170.14 amounts, an eligible individual or family may accrue interest on 170.15 these amounts, but they must be reduced to the maximum at the 170.16 time of an eligibility redetermination. The accumulation of the 170.17 clothing and personal needs allowancepursuantaccording to 170.18 section 256B.35 must also be reduced to the maximum at the time 170.19 of the eligibility redetermination. The value of assets that 170.20 are not considered in determining eligibility for medical 170.21 assistance is the value of those assetsthat are excluded by the170.22aid to families with dependent children programexcluded under 170.23 the AFDC state plan as of July 16, 1996, as required by the 170.24 Personal Responsibility and Work Opportunity Reconciliation Act 170.25 of 1996 (PRWORA), Public Law Number 104-193, for families and 170.26 children, and the supplemental security income program for aged, 170.27 blind, and disabled persons, with the following exceptions: 170.28 (a) Household goods and personal effects are not considered. 170.29 (b) Capital and operating assets of a trade or business 170.30 that the local agency determines are necessary to the person's 170.31 ability to earn an income are not considered. 170.32 (c) Motor vehicles are excluded to the same extent excluded 170.33 by the supplemental security income program. 170.34 (d) Assets designated as burial expenses are excluded to 170.35 the same extent excluded by the supplemental security income 170.36 program. 171.1 Sec. 14. Minnesota Statutes 1996, section 256B.056, 171.2 subdivision 4, is amended to read: 171.3 Subd. 4. [INCOME.] To be eligible for medical assistance, 171.4 a person must not have, or anticipate receiving, semiannual 171.5 income in excess of 120 percent of the income standards by 171.6 family size usedinunder the aid to families with dependent 171.7 childrenprogramstate plan as of July 16, 1996, as required by 171.8 the Personal Responsibility and Work Opportunity Reconciliation 171.9 Act of 1996 (PRWORA), Public Law Number 104-193, except that 171.10 families and children may have an income up to 133-1/3 percent 171.11 of the AFDC income standard. In computing income to determine 171.12 eligibility of persons who are not residents of long-term care 171.13 facilities, the commissioner shall disregard increases in income 171.14 as required by Public Law Numbers 94-566, section 503; 99-272; 171.15 and 99-509. Veterans aid and attendance benefits are considered 171.16 income to the recipient. 171.17 Sec. 15. Minnesota Statutes 1996, section 256B.057, 171.18 subdivision 1, is amended to read: 171.19 Subdivision 1. [PREGNANT WOMEN AND INFANTS.] (a) An infant 171.20 less than one year of age or a pregnant woman who has written 171.21 verification of a positive pregnancy test from a physician or 171.22 licensed registered nurse, is eligible for medical assistance if 171.23 countable family income is equal to or less than 275 percent of 171.24 the federal poverty guideline for the same family size. For 171.25 purposes of this subdivision, "countable family income" means 171.26 the amount of income considered available using the methodology 171.27 of the AFDC program under the state's AFDC plan as of July 16, 171.28 1996, as required by the Personal Responsibility and Work 171.29 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 171.30 Number 104-193, except for the earned income disregard and 171.31 employment deductions. An amount equal to the amount of earned 171.32 income exceeding 275 percent of the federal poverty guideline, 171.33 up to a maximum of the amount by which the combined total of 185 171.34 percent of the federal poverty guideline plus the earned income 171.35 disregards and deductions of the AFDC program under the state's 171.36 AFDC plan as of July 16, 1996, as required by the Personal 172.1 Responsibility and Work Opportunity Reconciliation Act of 1996 172.2 (PRWORA), Public Law Number 104-193, exceeds 275 percent of the 172.3 federal poverty guideline will be deducted for pregnant women 172.4 and infants less than one year of age. Eligibility for a 172.5 pregnant woman or infant less than one year of age under this 172.6 subdivision must be determined without regard to asset standards 172.7 established in section 256B.056, subdivision 3. 172.8 (b) An infant born on or after January 1, 1991, to a woman 172.9 who was eligible for and receiving medical assistance on the 172.10 date of the child's birth shall continue to be eligible for 172.11 medical assistance without redetermination until the child's 172.12 first birthday, as long as the child remains in the woman's 172.13 household. 172.14 Sec. 16. Minnesota Statutes 1996, section 256B.057, 172.15 subdivision 1b, is amended to read: 172.16 Subd. 1b. [PREGNANT WOMEN AND INFANTS; EXPANSION.] (a) 172.17 This subdivision supersedes subdivision 1 as long as the 172.18 Minnesota health care reform waiver remains in effect. When the 172.19 waiver expires, the commissioner of human services shall publish 172.20 a notice in the State Register and notify the revisor of 172.21 statutes. An infant less than two years of age or a pregnant 172.22 woman who has written verification of a positive pregnancy test 172.23 from a physician or licensed registered nurse, is eligible for 172.24 medical assistance if countable family income is equal to or 172.25 less than 275 percent of the federal poverty guideline for the 172.26 same family size. For purposes of this subdivision, "countable 172.27 family income" means the amount of income considered available 172.28 using the methodology of the AFDC program under the state's AFDC 172.29 plan as of July 16, 1996, as required by the Personal 172.30 Responsibility and Work Opportunity Reconciliation Act of 1996 172.31 (PRWORA), Public Law Number 104-193, except for the earned 172.32 income disregard and employment deductions. An amount equal to 172.33 the amount of earned income exceeding 275 percent of the federal 172.34 poverty guideline, up to a maximum of the amount by which the 172.35 combined total of 185 percent of the federal poverty guideline 172.36 plus the earned income disregards and deductions of the AFDC 173.1 program under the state's AFDC plan as of July 16, 1996, as 173.2 required by the Personal Responsibility and Work Opportunity 173.3 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 173.4 exceeds 275 percent of the federal poverty guideline will be 173.5 deducted for pregnant women and infants less than two years of 173.6 age. Eligibility for a pregnant woman or infant less than two 173.7 years of age under this subdivision must be determined without 173.8 regard to asset standards established in section 256B.056, 173.9 subdivision 3. 173.10 (b) An infant born on or after January 1, 1991, to a woman 173.11 who was eligible for and receiving medical assistance on the 173.12 date of the child's birth shall continue to be eligible for 173.13 medical assistance without redetermination until the child's 173.14 second birthday, as long as the child remains in the woman's 173.15 household. 173.16 Sec. 17. Minnesota Statutes 1996, section 256B.057, 173.17 subdivision 2b, is amended to read: 173.18 Subd. 2b. [NO ASSET TEST FOR CHILDREN AND THEIR PARENTS; 173.19 EXPANSION.] This subdivision supersedes subdivision 2a as long 173.20 as the Minnesota health care reform waiver remains in effect. 173.21 When the waiver expires, this subdivision expires and the 173.22 commissioner of human services shall publish a notice in the 173.23 State Register and notify the revisor of statutes. Eligibility 173.24 for medical assistance for a person under age 21, and the 173.25 person's parents or relative caretakers as definedin the aid to173.26families with dependent children program according to chapter173.27256, who are eligible under section 256B.055, subdivision173.283under the state's AFDC plan in effect as of July 16, 1996, as 173.29 required by the Personal Responsibility and Work Opportunity 173.30 Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 173.31 and who live in the same household as the person eligible under 173.32 age 21, must be determined without regard to asset standards 173.33 established in section 256B.056. 173.34 Sec. 18. Minnesota Statutes 1996, section 256B.06, 173.35 subdivision 4, is amended to read: 173.36 Subd. 4. [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 174.1 medical assistance is limited to citizens of the United 174.2 Statesand aliens lawfully admitted for permanent residence or174.3otherwise permanently residing in the United States under the174.4color of law. Aliens who are seeking legalization under the174.5Immigration Reform and Control Act of 1986, Public Law Number174.699-603, who are under age 18, over age 65, blind, disabled, or174.7Cuban or Haitian, and who meet the eligibility requirements of174.8medical assistance under subdivision 1 and sections 256B.055 to174.9256B.062 are eligible to receive medical assistance. Pregnant174.10women who are aliens seeking legalization under the Immigration174.11Reform and Control Act of 1986, Public Law Number 99-603, and174.12who meet the eligibility requirements of medical assistance174.13under subdivision 1 are eligible for payment of care and174.14services through the period of pregnancy and six weeks174.15postpartum. Payment shall also be made for care and services174.16that are furnished to an alien, regardless of immigration174.17status, who otherwise meets the eligibility requirements of this174.18section if such care and services are necessary for the174.19treatment of an emergency medical condition, except for organ174.20transplants and related care and services. For purposes of this174.21subdivision, the term "emergency medical condition" means a174.22medical condition, including labor and delivery, that if not174.23immediately treated could cause a person physical or mental174.24disability, continuation of severe pain, or death., qualified 174.25 noncitizens as defined in this subdivision, and other persons 174.26 residing lawfully in the United States. 174.27 (b) "Qualified noncitizen" means a person who meets one of 174.28 the following immigration criteria: 174.29 (1) admitted for lawful permanent residence according to 174.30 United States Code, title 8; 174.31 (2) admitted to the United States as a refugee according to 174.32 United States Code, title 8, section 1157; 174.33 (3) granted asylum according to United States Code, title 174.34 8, section 1158; 174.35 (4) granted withholding of deportation according to United 174.36 States Code, title 8, section 1253(h); 175.1 (5) paroled for a period of at least one year according to 175.2 United States Code, title 8, section 1182(d)(5); 175.3 (6) granted conditional entrant status according to United 175.4 States Code, title 8, section 1153(a)(7); or 175.5 (7) determined to be a battered noncitizen by the United 175.6 States Attorney General according to the Illegal Immigration 175.7 Reform and Immigrant Responsibility Act of 1996, title V of the 175.8 Omnibus Consolidated Appropriations Bill, Public Law Number 175.9 104-200. 175.10 (c) All qualified noncitizens who were residing in the 175.11 United States before August 22, 1996, who otherwise meet the 175.12 eligibility requirements of chapter 256B, are eligible for 175.13 medical assistance with federal financial participation. 175.14 (d) All qualified noncitizens who entered the United States 175.15 on or after August 22, 1996, and who otherwise meet the 175.16 eligibility requirements of chapter 256B, are eligible for 175.17 medical assistance with federal financial participation through 175.18 November 30, 1996. 175.19 Beginning December 1, 1996, qualified noncitizens who 175.20 entered the United States on or after August 22, 1996, and who 175.21 otherwise meet the eligibility requirements of chapter 256B are 175.22 eligible for medical assistance with federal participation for 175.23 five years if they meet one of the following criteria: 175.24 (i) refugees admitted to the United States according to 175.25 United States Code, title 8, section 1157; 175.26 (ii) persons granted asylum according to United States 175.27 Code, title 8, section 1158; 175.28 (iii) persons granted withholding of deportation according 175.29 to United States code, title 8, section 1253(h); 175.30 (iv) veterans of the United States Armed Forces with an 175.31 honorable discharge for a reason other than noncitizen status, 175.32 their spouses and unmarried minor dependent children; or 175.33 (v) persons on active duty in the United States Armed 175.34 Forces, other than for training, their spouses and unmarried 175.35 minor dependent children. 175.36 Beginning December 1, 1996, qualified noncitizens who do 176.1 not meet one of the criteria in items (i) to (v) are eligible 176.2 for medical assistance without federal financial participation 176.3 as described in paragraph (j). 176.4 (e) Noncitizens who are not qualified noncitizens as 176.5 defined in paragraph (b), who are lawfully residing in the 176.6 United States and who otherwise meet the eligibility 176.7 requirements of chapter 256B, are eligible for medical 176.8 assistance under clauses (1) to (3). These individuals must 176.9 cooperate with the Immigration and Naturalization Service to 176.10 pursue any applicable immigration status, including citizenship, 176.11 that would qualify them for medical assistance with federal 176.12 financial participation. 176.13 (1) Persons who were medical assistance recipients on 176.14 August 22, 1996, are eligible for medical assistance with 176.15 federal financial participation through December 31, 1996. 176.16 (2) Beginning January 1, 1997, persons described in clause 176.17 (1) are eligible for medical assistance without federal 176.18 financial participation as described in paragraph (j). 176.19 (3) Beginning December 1, 1996, persons residing in the 176.20 United States prior to August 22, 1996, who were not receiving 176.21 medical assistance and persons who arrived on or after August 176.22 22, 1996, are eligible for medical assistance without federal 176.23 financial participation as described in paragraph (j). 176.24 (f) Nonimmigrants who otherwise meet the eligibility 176.25 requirements of chapter 256B are eligible for the benefits as 176.26 provided in paragraphs (h) and (i). For purposes of this 176.27 subdivision, a "nonimmigrant" is a person in one of the classes 176.28 listed in United States Code, title 8, section 1101(a)(15). 176.29 (g) When determining eligibility for any federal or state 176.30 benefits under this subdivision, the income and resources of all 176.31 noncitizens shall be deemed to include their sponsors' income 176.32 and resources as required under the Personal Responsibility and 176.33 Work Opportunity Reconciliation Act of 1996, title IV, Public 176.34 Law Number 104-193, sections 421 and 422. 176.35 (h) Payment shall also be made for care and services that 176.36 are furnished to noncitizens, regardless of immigration status, 177.1 who otherwise meet the eligibility requirements of chapter 256B, 177.2 if such care and services are necessary for the treatment of an 177.3 emergency medical condition, except for organ transplants and 177.4 related care and services and routine prenatal care. For 177.5 purposes of this subdivision, the term "emergency medical 177.6 condition" means a medical condition that meets the requirements 177.7 of United States Code, title 42, section 1396b(v). 177.8 (i) Pregnant noncitizens who are undocumented or 177.9 nonimmigrants, who otherwise meet the eligibility requirements 177.10 of chapter 256B, are eligible for medical assistance payment 177.11 without federal financial participation for care and services 177.12 through the period of pregnancy, except for labor and delivery, 177.13 and 60 days postpartum. 177.14 (j) Qualified noncitizens as described in paragraph (d), 177.15 and all other noncitizens lawfully residing in the United States 177.16 as described in paragraph (e), who are ineligible for medical 177.17 assistance with federal financial participation and who 177.18 otherwise meet the eligibility requirements of chapter 256B and 177.19 of this paragraph, are eligible for medical assistance without 177.20 federal financial participation. Qualified noncitizens as 177.21 described in paragraph (d) are only eligible for medical 177.22 assistance without federal financial participation for five 177.23 years from their date of entry into the United States. 177.24 (k) The commissioner shall submit to the legislature by 177.25 December 31, 1998, a report on the number of recipients and cost 177.26 of coverage of care and services made according to paragraphs 177.27 (i) and (j). 177.28 Sec. 19. Minnesota Statutes 1996, section 256B.062, is 177.29 amended to read: 177.30 256B.062 [CONTINUED ELIGIBILITY.] 177.31 Medical assistance may be paid for persons who received aid 177.32 to families with dependent children in at least three of the six 177.33 months preceding the month in which the person became ineligible 177.34 for aid to families with dependent children, if the 177.35 ineligibility was due to an increase in hours of employment or 177.36 employment income or due to the loss of an earned income 178.1 disregard. A person who is eligible for extended medical 178.2 assistance is entitled to six months of assistance without 178.3 reapplication, unless the assistance unit ceases to include a 178.4 dependent child. For a person under 21 years of age, medical 178.5 assistance may not be discontinued within the six-month period 178.6 of extended eligibility until it has been determined that the 178.7 person is not otherwise eligible for medical assistance. 178.8 Medical assistance may be continued for an additional six months 178.9 if the person meets all requirements for the additional six 178.10 months, according to Title XIX of the Social Security Act, as 178.11 amended by section 303 of the Family Support Act of 1988, Public 178.12 Law Number 100-485. This section is repealed effective January 178.13 1, 1998. 178.14 Sec. 20. [256B.0635] [CONTINUED ELIGIBILITY IN SPECIAL 178.15 CIRCUMSTANCES.] 178.16 Subdivision 1. [INCREASED EMPLOYMENT.] Beginning January 178.17 1, 1998, or on the date that MFIP-S is implemented in counties 178.18 which elect to implement MFIP-S earlier under section 256J.50, 178.19 medical assistance may be paid for persons who received MFIP-S 178.20 or medical assistance for families and children in at least 178.21 three of six months preceding the month in which the person 178.22 became ineligible for MFIP-S or medical assistance, if the 178.23 ineligibility was due to an increase in hours of employment or 178.24 employment income or due to the loss of an earned income 178.25 disregard. In addition, to receive continued assistance under 178.26 this section, persons who received medical assistance for 178.27 families and children but did not receive MFIP-S must have had 178.28 income less than or equal to the assistance standard for their 178.29 family size under the state's AFDC plan in effect as of July 16, 178.30 1996, as required by the Personal Responsibility and Work 178.31 Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 178.32 Number 104-193, at the time medical assistance eligibility 178.33 began. A person who is eligible for extended medical assistance 178.34 is entitled to six months of assistance without reapplication, 178.35 unless the assistance unit ceases to include a dependent child. 178.36 For a person under 21 years of age, medical assistance may not 179.1 be discontinued within the six-month period of extended 179.2 eligibility until it has been determined that the person is not 179.3 otherwise eligible for medical assistance. Medical assistance 179.4 may be continued for an additional six months if the person 179.5 meets all requirements for the additional six months, according 179.6 to Title XIX of the Social Security Act, as amended by section 179.7 303 of the Family Support Act of 1988, Public Law Number 100-485. 179.8 Subd. 2. [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 179.9 January 1, 1998, or on the date that MFIP-S is implemented in 179.10 counties which elect to implement MFIP-S earlier under section 179.11 256J.50, medical assistance may be paid for persons who received 179.12 MFIP-S or medical assistance for families and children in at 179.13 least three of the six months preceding the month in which the 179.14 person became ineligible for MFIP-S or medical assistance, if 179.15 the ineligibility was the result of the collection of child or 179.16 spousal support under part D of title IV. In addition, to 179.17 receive continued assistance under this section, persons who 179.18 received medical assistance for families and children but did 179.19 not receive MFIP-S must have had income less than or equal to 179.20 the assistance standard for their family size under the state's 179.21 AFDC plan in effect as of July 16, 1996, as required by the 179.22 Personal Responsibility and Work Opportunity Reconciliation Act 179.23 of 1996 (PRWORA), Public Law Number 104-193, at the time medical 179.24 assistance eligibility began. A person who is eligible for 179.25 extended medical assistance under this subdivision is entitled 179.26 to four months of assistance without reapplication, unless the 179.27 assistance unit ceases to include a dependent child. For a 179.28 person under 21 years of age, medical assistance may not be 179.29 discontinued within the four-month period of extended 179.30 eligibility until it has been determined that the person is not 179.31 otherwise eligible for medical assistance. 179.32 Sec. 21. Minnesota Statutes 1996, section 256D.01, 179.33 subdivision 1, is amended to read: 179.34 Subdivision 1. [POLICY.] The objectives of sections 179.35 256D.01 to 256D.21 are to provide a sound administrative 179.36 structure for public assistance programs; to maximize the use of 180.1 federal money for public assistance purposes; to provide an 180.2 integrated public assistance program forall personseligible 180.3 households in the state without adequate income or resources to 180.4 maintain a subsistence reasonably compatible with decency and 180.5 health; and to provide services to help employable and 180.6 potentially employable persons prepare for and attain 180.7 self-sufficiency and obtain permanent work. 180.8 It isdeclared to bethe policy of this state thatpersons180.9 eligible households unable to provide for themselves and not 180.10 otherwise provided for by lawandwho meet the eligibility 180.11 requirements of sections 256D.01 to 256D.21 are entitled to 180.12 receive grants of general assistance necessary to maintain a 180.13 subsistence reasonably compatible with decency and health. 180.14 Providing this assistance is a matter of public concern and a 180.15 necessity in promoting the public health and welfare. 180.16 Section 21 is effective January 1, 1998. 180.17 Sec. 22. Minnesota Statutes 1996, section 256D.01, 180.18 subdivision 1a, is amended to read: 180.19 Subd. 1a. [STANDARDS.] (a) A principal objective in 180.20 providing general assistance is to provide forpersonssingle 180.21 adults or childless couples ineligible for federal programs who 180.22 are unable to provide for themselves. The minimum standard of 180.23 assistance determines the total amount of the general assistance 180.24 grant without separate standards for shelter, utilities, or 180.25 other needs. 180.26 (b) The commissioner shall set the standard of assistance 180.27 for an assistance unit consisting of an adult recipient who is 180.28 childless and unmarried or living apart from children and spouse 180.29 and who does not live with a parent or parents or a legal 180.30 custodian. When the other standards specified in this 180.31 subdivision increase, this standard must also be increased by 180.32 the same percentage. 180.33 (c) For an assistance unit consisting of a single adult who 180.34 lives with a parent or parents, the general assistance standard 180.35 of assistance is the amount that the aid to families with 180.36 dependent children standard of assistance, in effect on July 16, 181.1 1996, would increase if the recipient were added as an 181.2 additional minor child to an assistance unit consisting of the 181.3 recipient's parent and all of that parent's family members, 181.4 except that the standard may not exceed the standard for a 181.5 general assistance recipient living alone. Benefits received by 181.6 a responsible relative of the assistance unit under the 181.7 supplemental security income program, a workers' compensation 181.8 program, the Minnesota supplemental aid program, or any other 181.9 program based on the responsible relative's disability, and any 181.10 benefits received by a responsible relative of the assistance 181.11 unit under the social security retirement program, may not be 181.12 counted in the determination of eligibility or benefit level for 181.13 the assistance unit. Except as provided below, the assistance 181.14 unit is ineligible for general assistance if the available 181.15 resources or the countable income of the assistance unit and the 181.16 parent or parents with whom the assistance unit lives are such 181.17 that a family consisting of the assistance unit's parent or 181.18 parents, the parent or parents' other family members and the 181.19 assistance unit as the only or additional minor child would be 181.20 financially ineligible for general assistance. For the purposes 181.21 of calculating the countable income of the assistance unit's 181.22 parent or parents, the calculation methods, income deductions, 181.23 exclusions, and disregards used when calculating the countable 181.24 income for a single adult or childless couple must be used. 181.25 (d) For an assistance unit consisting of a childless 181.26 couple, the standards of assistance are the same as the first 181.27 and second adult standards of the aid to families with dependent 181.28 children program in effect on July 16, 1996. If one member of 181.29 the couple is not included in the general assistance grant, the 181.30 standard of assistance for the other is the second adult 181.31 standard of the aid to families with dependent children program. 181.32(e) For an assistance unit consisting of all members of a181.33family, the standards of assistance are the same as the181.34standards of assistance that apply to a family under the aid to181.35families with dependent children program if that family had the181.36same number of parents and children as the assistance unit under182.1general assistance and if all members of that family were182.2eligible for the aid to families with dependent children182.3program. If one or more members of the family are not included182.4in the assistance unit for general assistance, the standards of182.5assistance for the remaining members are the same as the182.6standards of assistance that apply to an assistance unit182.7composed of the entire family, less the standards of assistance182.8for a family of the same number of parents and children as those182.9members of the family who are not in the assistance unit for182.10general assistance. In no case shall the standard for family182.11members who are in the assistance unit for general assistance,182.12when combined with the standard for family members who are not182.13in the general assistance unit, total more than the standard for182.14the entire family if all members were in an AFDC assistance182.15unit. A child may not be excluded from the assistance unit182.16unless income intended for its benefit is received from a182.17federally aided categorical assistance program or supplemental182.18security income. The income of a child who is excluded from the182.19assistance unit may not be counted in the determination of182.20eligibility or benefit level for the assistance unit.182.21(f) An assistance unit consisting of one or more members of182.22a family must have its grant determined using the policies and182.23procedures of the aid to families with dependent children182.24program, except that, until June 30, 1995, in cases where a182.25county agency has developed or approved a case plan that182.26includes reunification with the children, foster care182.27maintenance payments made under state or local law for a child182.28who is temporarily absent from the assistance unit must not be182.29considered income to the child and the payments must not be182.30counted in the determination of the eligibility or benefit level182.31of the assistance unit. Otherwise, the standard of assistance182.32must be determined according to paragraph (e); the first $50 of182.33total child support received by an assistance unit in a month182.34must be excluded and the balance counted as unearned income.182.35 Section 22 is effective January 1, 1998. 182.36 Sec. 23. Minnesota Statutes 1996, section 256D.01, 183.1 subdivision 1e, is amended to read: 183.2 Subd. 1e. [RULES REGARDING EMERGENCY ASSISTANCE.]In order183.3to maximize the use of federal funds,The commissioner shall 183.4 adopt rules, to the extent permitted by federal law, for183.5eligibility for the emergency assistance program under aid to183.6families with dependent children, andunder the terms of 183.7 sections 256D.01 to 256D.21 for general assistance, to require 183.8 use of the emergency program under aid to families with 183.9 dependent children or MFIP-S as the primary financial resource 183.10 when available. The commissioner shall adopt rules for 183.11 eligibility for general assistance of persons with seasonal 183.12 income and may attribute seasonal income to other periods not in 183.13 excess of one year from receipt by an applicant or recipient. 183.14 General assistance payments may not be made for foster care, 183.15 child welfare services, or other social services. Vendor 183.16 payments and vouchers may be issued only as authorized in 183.17 sections 256D.05, subdivision 6, and 256D.09. 183.18 Sec. 24. Minnesota Statutes 1996, section 256D.02, 183.19 subdivision 6, is amended to read: 183.20 Subd. 6. "Child" means an adultor minorchild or 183.21 emancipated minor or, until December 31, 1997, the minor child 183.22 of an individual. 183.23 Sec. 25. Minnesota Statutes 1996, section 256D.02, 183.24 subdivision 12a, is amended to read: 183.25 Subd. 12a. [RESIDENT.] (a) For purposes of eligibility for 183.26 general assistance and general assistance medical care, a 183.27 "resident" is a person living in the state for at least 30 days 183.28 with the intention of making the person's home here and not for 183.29 any temporary purpose. Notwithstanding section 256G.03, time 183.30 spent in a shelter for battered women shall count toward 183.31 satisfying the 30-day residency requirement. All applicants for 183.32 these programs are required to demonstrate the requisite intent 183.33 and can do so in any of the following ways: 183.34 (1) by showing that the applicant maintains a residence at 183.35 a verified address, other than a place of public accommodation. 183.36 An applicant may verify a residence address by presenting a 184.1 valid state driver's license, a state identification card, a 184.2 voter registration card, a rent receipt, a statement by the 184.3 landlord, apartment manager, or homeowner verifying that the 184.4 individual is residing at the address, or other form of 184.5 verification approved by the commissioner; or 184.6 (2) by verifying residencein accordance withaccording to 184.7 Minnesota Rules, part 9500.1219, subpart 3, item C. 184.8 (b)An applicant who has been in the state for less than 30184.9days shall be considered a resident if the applicant can provide184.10documentation:184.11(1) that the applicant was born in the state;184.12(2) that the applicant has been a long-time resident of the184.13state or was formerly a resident of the state for at least 365184.14days and is returning to the state from a temporary absence, as184.15those terms are defined in rules adopted by the commissioner;184.16(3) that the applicant has come to the state to join a184.17close relative which, for purposes of this subdivision, means a184.18parent, grandparent, brother, sister, spouse, or child; or184.19(4) that the applicant has come to this state to accept a184.20bona fide offer of employment for which the applicant is184.21eligible.184.22 For general assistance medical care, a county agency shall 184.23 waive the 30-day residency requirement in cases ofemergencies,184.24includingmedical emergencies, or where unusual hardship would184.25result from denial of general assistance medical care. For 184.26 general assistance, a countymayshall waive the 30-day 184.27 residency requirementin cases of emergencies, including medical184.28emergencies, orwhere unusual hardship would result from denial 184.29 of general assistance. For purposes of this subdivision, 184.30 "unusual hardship" means the applicant is without shelter or is 184.31 without available resources for food. 184.32 The county agency must report to the commissioner within 30 184.33 days on any waiver granted under this section. The county shall 184.34 not deny an application solely because the applicant does not 184.35 meet at least one of the criteria in this subdivision, but shall 184.36 continue to process the application and leave the application 185.1 pending until the residency requirement is met or until 185.2 eligibility or ineligibility is established. 185.3 (c) For purposes of paragraph (b), the following 185.4 definitions apply (1) "metropolitan statistical area" is as 185.5 defined by the U.S. Census Bureau; (2) "shelter" includes any 185.6 shelter that is located within the metropolitan statistical area 185.7 containing the county and for which the applicant is eligible, 185.8 provided the applicant does not have to travel more than 20 185.9 miles to reach the shelter and has access to transportation to 185.10 the shelter. Clause (2) does not apply to counties in the 185.11 Minneapolis-St. Paul metropolitan statistical area. 185.12 (d) For purposes of eligibility for emergency general 185.13 assistance, the 30-day residency requirement in paragraph (a) 185.14 shall not be waived. 185.15 Section 25 is effective January 1, 1998. 185.16 Sec. 26. [256D.024] [PERSONS PROHIBITED FROM RECEIVING 185.17 GENERAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, MINNESOTA 185.18 SUPPLEMENTAL AID.] 185.19 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) If 185.20 an applicant has been convicted of a drug offense after July 1, 185.21 1997, the assistance unit is ineligible for benefits under this 185.22 chapter until five years after the applicant has completed terms 185.23 of the court-ordered sentence. 185.24 (b) For the purposes of this subdivision, "drug offense" 185.25 means a conviction that occurred after July 1, 1997, of sections 185.26 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 185.27 means a conviction in another jurisdiction of the possession, 185.28 use, or distribution of a controlled substance, or conspiracy to 185.29 commit any of these offenses, if the offense occurred after July 185.30 1, 1997, and the conviction is a felony offense in that 185.31 jurisdiction, or in the case of New Jersey, a high misdemeanor. 185.32 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 185.33 condition of probation or parole imposed under federal or state 185.34 law is ineligible to receive benefits under this chapter. 185.35 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 185.36 avoid prosecution, or custody, or confinement after conviction 186.1 for a crime that is a felony under the laws of the jurisdiction 186.2 from which the individual flees, or in the case of New Jersey, 186.3 is a high misdemeanor, is ineligible to receive benefits under 186.4 this chapter. 186.5 Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 186.6 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 186.7 individual who is convicted in federal or state court of having 186.8 made a fraudulent statement or representation with respect to 186.9 the place of residence of the individual in order to receive 186.10 assistance simultaneously from two or more states is ineligible 186.11 to receive benefits under this chapter for ten years beginning 186.12 on the date of the conviction. 186.13 Sec. 27. Minnesota Statutes 1996, section 256D.03, 186.14 subdivision 3, is amended to read: 186.15 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 186.16 (a) General assistance medical care may be paid for any person 186.17 who is not eligible for medical assistance under chapter 256B, 186.18 including eligibility for medical assistance based on a 186.19 spenddown of excess income according to section 256B.056, 186.20 subdivision 5, and: 186.21 (1) who is receiving assistance under section 256D.05, or 186.22 who is having a payment made on the person's behalf under 186.23 sections 256I.01 to 256I.06; or 186.24 (2)(i) who is a resident of Minnesota; and whose equity in 186.25 assets is not in excess of $1,000 per assistance unit. No asset 186.26 test shall be applied to children and their parents living in 186.27 the same household. Exempt assets, the reduction of excess 186.28 assets, and the waiver of excess assets must conform to the 186.29 medical assistance program in chapter 256B, with the following 186.30 exception: the maximum amount of undistributed funds in a trust 186.31 that could be distributed to or on behalf of the beneficiary by 186.32 the trustee, assuming the full exercise of the trustee's 186.33 discretion under the terms of the trust, must be applied toward 186.34 the asset maximum; and 186.35 (ii) who has countable income not in excess of the 186.36 assistance standards established in section 256B.056, 187.1 subdivision 4, or whose excess income is spent downpursuant187.2 according to section 256B.056, subdivision 5, using a six-month 187.3 budget period, except that a one-month budget period must be 187.4 used for recipients residing in a long-term care facility. The 187.5 method for calculating earned income disregards and deductions 187.6 for a person who resides with a dependent child under age 21 187.7 shallbe as specified in section 256.74, subdivision 1follow 187.8 section 256B.056. However, if a disregard of $30 and one-third 187.9 of the remainder described in section 256.74, subdivision 1, 187.10 clause (4), has been applied to the wage earner's income, the 187.11 disregard shall not be applied again until the wage earner's 187.12 income has not been considered in an eligibility determination 187.13 for general assistance, general assistance medical care, medical 187.14 assistance,oraid to families with dependent children or MFIP-S 187.15 for 12 consecutive months. The earned income and work expense 187.16 deductions for a person who does not reside with a dependent 187.17 child under age 21 shall be the same as the method used to 187.18 determine eligibility for a person under section 256D.06, 187.19 subdivision 1, except the disregard of the first $50 of earned 187.20 income is not allowed; or 187.21 (3) who would be eligible for medical assistance except 187.22 that the person resides in a facility that is determined by the 187.23 commissioner or the federal health care financing administration 187.24 to be an institution for mental diseases. 187.25 (b) Eligibility is available for the month of application, 187.26 and for three months prior to application if the person was 187.27 eligible in those prior months. A redetermination of 187.28 eligibility must occur every 12 months. 187.29 (c) General assistance medical care is not available for a 187.30 person in a correctional facility unless the person is detained 187.31 by law for less than one year in a county correctional or 187.32 detention facility as a person accused or convicted of a crime, 187.33 or admitted as an inpatient to a hospital on a criminal hold 187.34 order, and the person is a recipient of general assistance 187.35 medical care at the time the person is detained by law or 187.36 admitted on a criminal hold order and as long as the person 188.1 continues to meet other eligibility requirements of this 188.2 subdivision. 188.3 (d) General assistance medical care is not available for 188.4 applicants or recipients who do not cooperate with the county 188.5 agency to meet the requirements of medical assistance. 188.6 (e) In determining the amount of assets of an individual, 188.7 there shall be included any asset or interest in an asset, 188.8 including an asset excluded under paragraph (a), that was given 188.9 away, sold, or disposed of for less than fair market value 188.10 within the 60 months preceding application for general 188.11 assistance medical care or during the period of eligibility. 188.12 Any transfer described in this paragraph shall be presumed to 188.13 have been for the purpose of establishing eligibility for 188.14 general assistance medical care, unless the individual furnishes 188.15 convincing evidence to establish that the transaction was 188.16 exclusively for another purpose. For purposes of this 188.17 paragraph, the value of the asset or interest shall be the fair 188.18 market value at the time it was given away, sold, or disposed 188.19 of, less the amount of compensation received. For any 188.20 uncompensated transfer, the number of months of ineligibility, 188.21 including partial months, shall be calculated by dividing the 188.22 uncompensated transfer amount by the average monthly per person 188.23 payment made by the medical assistance program to skilled 188.24 nursing facilities for the previous calendar year. The 188.25 individual shall remain ineligible until this fixed period has 188.26 expired. The period of ineligibility may exceed 30 months, and 188.27 a reapplication for benefits after 30 months from the date of 188.28 the transfer shall not result in eligibility unless and until 188.29 the period of ineligibility has expired. The period of 188.30 ineligibility begins in the month the transfer was reported to 188.31 the county agency, or if the transfer was not reported, the 188.32 month in which the county agency discovered the transfer, 188.33 whichever comes first. For applicants, the period of 188.34 ineligibility begins on the date of the first approved 188.35 application. 188.36 (f) When determining eligibility for any state benefits 189.1 under this subdivision, the income and resources of all 189.2 noncitizens shall be deemed to include their sponsor's income 189.3 and resources as defined in the Personal Responsibility and Work 189.4 Opportunity Reconciliation Act of 1996, title IV, Public Law 189.5 Number 104-193, section 421. 189.6(f)(g)(1)Beginning October 1, 1993,An undocumentedalien189.7 noncitizen or a nonimmigrant is ineligible for general 189.8 assistance medical care other than emergency services. For 189.9 purposes of this subdivision, a nonimmigrant is an individual in 189.10 one or more of the classes listed in United States Code, title 189.11 8, section 1101(a)(15), and an undocumentedaliennoncitizen is 189.12 an individual who resides in the United States without the 189.13 approval or acquiescence of the Immigration and Naturalization 189.14 Service. 189.15 (2) This subdivision does not apply to a child under age 189.16 18, to a Cuban or Haitian entrant as defined in Public Law 189.17 Number 96-422, section 501(e)(1) or (2)(a), or toan aliena 189.18 noncitizen who is aged, blind, or disabled as defined inUnited189.19States Code, title 42, section 1382c(a)(1)Code of Federal 189.20 Regulations, title 42, sections 435.520, 435.530, 435.531, 189.21 435.540, and 435.541, who cooperates with the Immigration and 189.22 Naturalization Service to pursue any applicable immigration 189.23 status, including citizenship, that would qualify the individual 189.24 for medical assistance with federal financial participation. 189.25 (3) For purposes of paragraph (f), "emergency services" has 189.26 the meaning given in Code of Federal Regulations, title 42, 189.27 section 440.255(b)(1), except that it also means services 189.28 rendered because of suspected or actual pesticide poisoning. 189.29 (4) Notwithstanding any other provision of law, a 189.30 noncitizen who is ineligible for medical assistance due to the 189.31 deeming of a sponsor's income and resources, is ineligible for 189.32 general assistance medical care. 189.33 Sec. 28. Minnesota Statutes 1996, section 256D.05, 189.34 subdivision 1, is amended to read: 189.35 Subdivision 1. [ELIGIBILITY.] (a) Eachperson or family189.36whoseassistance unit with income and resourcesareless than 190.1 the standard of assistance established by the commissioner 190.2 and with a member who is a resident of the state shall be 190.3 eligible for and entitled to general assistance if theperson or190.4familyassistance unit is: 190.5 (1) a person who is suffering from a professionally 190.6 certified permanent or temporary illness, injury, or incapacity 190.7 which is expected to continue for more than 30 days and which 190.8 prevents the person from obtaining or retaining employment; 190.9 (2) a person whose presence in the home on a substantially 190.10 continuous basis is required because of the professionally 190.11 certified illness, injury, incapacity, or the age of another 190.12 member of the household; 190.13 (3) a person who has been placed in, and is residing in, a 190.14 licensed or certified facility for purposes of physical or 190.15 mental health or rehabilitation, or in an approved chemical 190.16 dependency domiciliary facility, if the placement is based on 190.17 illness or incapacity and ispursuantaccording to a plan 190.18 developed or approved by the county agency through its director 190.19 or designated representative or in a facility which has been 190.20 designated by the commissioner of corrections as a battered 190.21 women's shelter; 190.22 (4)a person who resides in a shelter facility described in190.23subdivision 3;190.24(5)a person not described in clause (1) or (3) who is 190.25 diagnosed by a licensed physician, psychological practitioner, 190.26 or other qualified professional, as mentally retarded or 190.27 mentally ill, and that condition prevents the person from 190.28 obtaining or retaining employment; 190.29(6)(5) a person who has an application pending for, or is 190.30 appealing termination of benefits from, the social security 190.31 disability program or the program of supplemental security 190.32 income for the aged, blind, and disabled, provided the person 190.33 has a professionally certified permanent or temporary illness, 190.34 injury, or incapacity which is expected to continue for more 190.35 than 30 days and which prevents the person from obtaining or 190.36 retaining employment; 191.1(7)(6) a person who is unable to obtain or retain 191.2 employment because advanced age significantly affects the 191.3 person's ability to seek or engage in substantial work; 191.4(8)(7) a person who has been assessed by a vocational 191.5 specialist and, in consultation with the county agency, has been 191.6 determined to be unemployable for purposes of thisitem,clause; 191.7 a person is considered employable if there exist positions of 191.8 employment in the local labor market, regardless of the current 191.9 availability of openings for those positions, that the person is 191.10 capable of performing. The person's eligibility under this 191.11 category must be reassessed at least annually. The county 191.12 agency must provide notice to the person not later than 30 days 191.13 before annual eligibility under this item ends, informing the 191.14 person of the date annual eligibility will end and the need for 191.15 vocational assessment if the person wishes to continue 191.16 eligibility under this clause. For purposes of establishing 191.17 eligibility under this clause, it is the applicant's or 191.18 recipient's duty to obtain any needed vocational assessment; 191.19(9)(8) a person who is determined by the county agency,in191.20accordance withaccording to permanent rules adopted by the 191.21 commissioner, to be learning disabled, provided that if a 191.22 rehabilitation plan for the person is developed or approved by 191.23 the county agency, the person is following the plan; 191.24(10)(9) a child under the age of 18 who is not living with 191.25 a parent, stepparent, or legal custodian,butand only if: the 191.26 child is legally emancipated or living with an adult with the 191.27 consent of an agency acting as a legal custodian; the child is 191.28 at least 16 years of age and the general assistance grant is 191.29 approved by the director of the county agency or a designated 191.30 representative as a component of a social services case plan for 191.31 the child; or the child is living with an adult with the consent 191.32 of the child's legal custodian and the county agency. For 191.33 purposes of this clause, "legally emancipated" means a person 191.34 under the age of 18 years who: (i) has been married; (ii) is on 191.35 active duty in the uniformed services of the United States; 191.36 (iii) has been emancipated by a court of competent jurisdiction; 192.1 or (iv) is otherwise considered emancipated under Minnesota law, 192.2 and for whom county social services has not determined that a 192.3 social services case plan is necessary, for reasons other 192.4 thanthatthe child has failed or refuses to cooperate with the 192.5 county agency in developing the plan; 192.6(11)(10) until January 1, 1998, a woman in the last 192.7 trimester of pregnancy who does not qualify for aid to families 192.8 with dependent children. A woman who is in the last trimester 192.9 of pregnancy who is currently receiving aid to families with 192.10 dependent children may be granted emergency general assistance 192.11 to meet emergency needs; 192.12(12)(11) a person who is eligible for displaced homemaker 192.13 services, programs, or assistance under section 268.96, but only 192.14 if that person is enrolled as a full-time student; 192.15(13)(12) a person who lives more than two hours round-trip 192.16 traveling time from any potential suitable employment; 192.17(14)(13) a person who is involved with protective or 192.18 court-ordered services that prevent the applicant or recipient 192.19 from working at least four hours per day; 192.20(15)(14) until January 1, 1998, (i) a family as defined in 192.21 section 256D.02, subdivision 5, which is ineligible for the aid 192.22 to families with dependent children program. 192.23 (ii) unless exempt under section 256D.051, subdivision 3a, 192.24 each adult in the unit must participate in and cooperate with 192.25 the food stamp employment and training program under section 192.26 256D.051 each month that the unit receives general assistance 192.27 benefits. The recipient's participation must begin no later 192.28 than the first day of the first full month following the 192.29 determination of eligibility for general assistance benefits. 192.30 To the extent of available resources, and with the county 192.31 agency's consent, the recipient may voluntarily continue to 192.32 participate in food stamp employment and training services for 192.33 up to three additional consecutive months immediately following 192.34 termination of general assistance benefits in order to complete 192.35 the provisions of the recipient's employability development 192.36 plan. If an adult member fails without good cause to 193.1 participate in or cooperate with the food stamp employment and 193.2 training program, the county agency shall concurrently terminate 193.3 that person's eligibility for general assistance and food stamps 193.4for two months or until compliance is achieved, whichever is193.5shorter,using the notice, good cause, conciliation and 193.6 termination procedures specified in section 256D.051; or 193.7(16)(15) a person over age 18 whose primary language is 193.8 not English and who is attending high school at least half time; 193.9 (16) a person under the age of 18 who suffers from 193.10 maladaptive behavior in the personal and behavior function area, 193.11 which for purposes of this section, is defined in the Code of 193.12 Federal Regulations and has the meaning given to these terms as 193.13 of August 21, 1996; or 193.14 (17) a person whose alcohol and drug addiction is a 193.15 material factor that contributes to the person's disability so 193.16 long as the person is receiving treatment from a licensed 193.17 chemical dependency provider, or is on a waiting list to receive 193.18 such treatment. 193.19 (b)Persons or families who are notAssistance units that 193.20 do not include a stateresidentsresident but who are otherwise 193.21 eligible for general assistance may receive emergency general 193.22 assistance to meet emergency needs. 193.23 (c) As a condition of eligibility under paragraph (a), 193.24 clauses (1), (3),(5)(4),(8)(7), and(9)(8), the 193.25 recipient must complete an interim assistance agreement and must 193.26 apply for other maintenance benefits as specified in section 193.27 256D.06, subdivision 5, and must comply with efforts to 193.28 determine the recipient's eligibility for those other 193.29 maintenance benefits. 193.30 (d) The burden of providing documentation for a county 193.31 agency to use to verify eligibility for general assistance or 193.32 for exemption from the food stamp employment and training 193.33 program is upon the applicant or recipient. The county agency 193.34 shall use documents already in its possession to verify 193.35 eligibility, and shall help the applicant or recipient obtain 193.36 other existing verification necessary to determine eligibility 194.1 which the applicant or recipient does not have and is unable to 194.2 obtain. 194.3 Sec. 29. Minnesota Statutes 1996, section 256D.05, 194.4 subdivision 5, is amended to read: 194.5 Subd. 5. [TRANSFERS OF PROPERTY.] The equity value of real 194.6 and personal property transferred without reasonable 194.7 compensation within 12 months preceding the date of application 194.8 for general assistance must be included in determining the 194.9 resources of an assistance unit in the same manner as in the aid 194.10 to families with dependent children program under chapter 256 or 194.11 MFIP-S under chapter 256J. 194.12 Sec. 30. Minnesota Statutes 1996, section 256D.05, 194.13 subdivision 8, is amended to read: 194.14 Subd. 8. [PERSONS INELIGIBLECITIZENSHIP.](a) Beginning194.15October 1, 1993, an undocumented alien or a nonimmigrant is194.16ineligible for general assistance benefits. For purposes of194.17this subdivision, a nonimmigrant is an individual in one or more194.18of the classes listed in United States Code, title 8, section194.191101(a)(15), and an undocumented alien is an individual who194.20resides in the United States without the approval or194.21acquiescence of the Immigration and Naturalization Service.194.22(b) This subdivision does not apply to a child under age194.2318, to a Cuban or Haitian entrant as defined in Public Law194.24Number 96-422, section 501(e)(1) or (2)(a), or to an alien who194.25is aged, blind, or disabled as defined in United States Code,194.26title 42, section 1382c(a)(1).Effective July 1, 1997, 194.27 citizenship requirements for applicants and recipients under 194.28 sections 256D.01 to 256D.21 shall be determined the same as 194.29 under section 256J.11. The income of sponsors of noncitizens 194.30 shall be deemed available to general assistance and general 194.31 assistance medical care applicants and recipients according to 194.32 the Personal Responsibility and Work Opportunity Reconciliation 194.33 Act of 1996, Public Law Number 104-193, Title IV, section 421. 194.34 Sec. 31. Minnesota Statutes 1996, section 256D.051, 194.35 subdivision 1a, is amended to read: 194.36 Subd. 1a. [NOTICES; CONCILIATION CONFERENCE;AND 195.1 SANCTIONS.] (a) At the time the county agency notifies the 195.2 household that it is eligible for food stamps, the county agency 195.3 must inform all mandatory employment and training services 195.4 participants as identified in subdivision 1 in the household 195.5 that they must comply with all food stamp employment and 195.6 training program requirements each month, including the 195.7 requirement to attend an initial orientation to the food stamp 195.8 employment and training program and that food stamp eligibility 195.9 will end unless the participants comply with the requirements 195.10 specified in the notice. 195.11 (b) A participant who fails without good cause to comply 195.12 with food stamp employment and training program requirements of 195.13 this section, including attendance at orientation, will lose 195.14 food stamp eligibility fortwo months or until the county agency195.15determines that the participant has complied with the program195.16requirements, whichever is shorter.the following periods: 195.17 (1) for the first occurrence, for one month or until the 195.18 person complies with the requirements not previously complied 195.19 with, whichever is longer; 195.20 (2) for the second occurrence, for three months or until 195.21 the person complies with the requirements not previously 195.22 complied with, whichever is longer; or 195.23 (3) for the third and any subsequent occurrence, for six 195.24 months or until the person complies with the requirements not 195.25 previously complied with, whichever is longer. 195.26 If the participant is not the food stamp head of household, 195.27 the person shall be considered an ineligible household member 195.28 for food stamp purposes. If the participant is the food stamp 195.29 head of household, the entire household is ineligible for food 195.30 stamps as provided in Code of Federal Regulations, title 7, 195.31 section 273.7(g). "Good cause" means circumstances beyond the 195.32 control of the participant, such as illness or injury, illness 195.33 or injury of another household member requiring the 195.34 participant's presence, a household emergency, or the inability 195.35 to obtain child care for children between the ages of six and 12 195.36 or to obtain transportation needed in order for the participant 196.1 to meet the food stamp employment and training program 196.2 participation requirements. 196.3 (c) The county agency shall mail or hand deliver a notice 196.4 to the participant not later than five days after determining 196.5 that the participant has failed without good cause to comply 196.6 with food stamp employment and training program requirements 196.7 which specifies the requirements that were not complied with, 196.8 the factual basis for the determination of noncompliance, and 196.9 the right to reinstate eligibility upon a showing of good 196.10 causeor thefor failure to meet the requirements,. The notice 196.11 must ask the reason for the noncompliance,andmustidentify the 196.12 participant's appeal rights. The notice must request that the 196.13 participant inform the county agency if the participant believes 196.14 that good cause existed for the failure to comply, must offer196.15the participant a conciliation conference as provided in196.16paragraph (d),and must state that the county agency intends to 196.17 terminate eligibility for food stamp benefits due to failure to 196.18 comply with food stamp employment and training program 196.19 requirements. 196.20 (d)The county agency must offer a conciliation conference196.21to participants who have failed to comply with food stamp196.22employment and training program requirements. The purpose of196.23the conference is to determine the cause for noncompliance, to196.24attempt to resolve the problem causing the noncompliance so that196.25all requirements are complied with, and to determine if good196.26cause for noncompliance was present. The conciliation period196.27shall run for ten working days from the date of the notice196.28required in paragraph (c). Information about how to request a196.29conciliation conference must be specified in the notice required196.30in paragraph (c). If the county agency determines that the196.31participant, during the conciliation period, complied with all196.32food stamp employment and training program requirements that the196.33recipient was required to comply with prior to and during the196.34conciliation period, or if the county agency determines that196.35good cause for failing to comply with the requirements was196.36present, a sanction on the participant's or household's food197.1stamp eligibility shall not be imposed.197.2(e)If the county agency determines that the participant 197.3 did not comply during theconciliation periodmonth with all 197.4 food stamp employment and training program requirements that 197.5 were in effectprior to and during the conciliation period, and 197.6 if the county agency determines that good cause was not present, 197.7 the county must provide a ten-day notice of termination of food 197.8 stamp benefits.The termination notice must be issued following197.9the last day of the conciliation period.The amount of food 197.10 stamps that are withheld from the household and determination of 197.11 the impact of the sanction on other household members is 197.12 governed by Code of Federal Regulations, title 7, section 273.7. 197.13(f)(e) The participant may appeal the termination of food 197.14 stamp benefits under the provisions of section 256.045. 197.15 Sec. 32. Minnesota Statutes 1996, section 256D.051, 197.16 subdivision 2a, is amended to read: 197.17 Subd. 2a. [DUTIES OF COMMISSIONER.] In addition to any 197.18 other duties imposed by law, the commissioner shall: 197.19 (1) based on this section and section 256D.052 and Code of 197.20 Federal Regulations, title 7, section 273.7, supervise the 197.21 administration of food stamp employment and training services to 197.22 county agencies; 197.23 (2) disburse money appropriated for food stamp employment 197.24 and training services to county agencies based upon the county's 197.25 costs as specified in section 256D.06; 197.26 (3) accept and supervise the disbursement of any funds that 197.27 may be provided by the federal government or from other sources 197.28 for use in this state for food stamp employment and training 197.29 services;and197.30 (4) cooperate with other agencies including any agency of 197.31 the United States or of another state in all matters concerning 197.32 the powers and duties of the commissioner under this section and 197.33 section 256D.052; and 197.34 (5) in cooperation with the commissioner of economic 197.35 security, ensure that each component of an employment and 197.36 training program carried out under this section is delivered 198.1 through a statewide workforce development system, unless the 198.2 component is not available locally through such a system. 198.3 Sec. 33. Minnesota Statutes 1996, section 256D.051, 198.4 subdivision 3a, is amended to read: 198.5 Subd. 3a. [PERSONS REQUIRED TO REGISTER FOR AND 198.6 PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 198.7 (a) To the extent required under Code of Federal Regulations, 198.8 title 7, section 273.7(a), each applicant for and recipient of 198.9 food stamps is required to register for work as a condition of 198.10 eligibility for food stamp benefits. Applicants and recipients 198.11 are registered by signing an application or annual reapplication 198.12 for food stamps, and must be informed that they are registering 198.13 for work by signing the form. 198.14 (b) The commissioner shall determine, within federal 198.15 requirements, persons required to participate in the food stamp 198.16 employment and training (FSET) program. 198.17 (c) The following food stamp recipients are exempt from 198.18 mandatory participation in food stamp employment and training 198.19 services: 198.20 (1) recipients of benefits under the AFDC program, MFIP-S 198.21 program, Minnesota supplemental aid program, or the general 198.22 assistance program, except that an adult who receives general 198.23 assistance under section 256D.05, subdivision 1, paragraph (b), 198.24 is not exempt unless that person qualifies under one of the 198.25 remaining exemption provisions in this paragraph; 198.26 (2) a child; 198.27 (3) a recipient over age 55; 198.28 (4) a recipient who has a mental or physical illness, 198.29 injury, or incapacity which is expected to continue for at least 198.30 30 days and which impairs the recipient's ability to obtain or 198.31 retain employment as evidenced by professional certification or 198.32 the receipt of temporary or permanent disability benefits issued 198.33 by a private or government source; 198.34 (5) a parent or other household member responsible for the 198.35 care of either a dependent child in the household who is under 198.36 age six or a person in the household who is professionally 199.1 certified as having a physical or mental illness, injury, or 199.2 incapacity. Only one parent or other household member may claim 199.3 exemption under this provision; 199.4 (6) a recipient receiving unemployment compensation or who 199.5 has applied for unemployment compensation and has been required 199.6 to register for work with the department of economic security as 199.7 part of the unemployment compensation application process; 199.8 (7) a recipient participating each week in a drug addiction 199.9 or alcohol abuse treatment and rehabilitation program, provided 199.10 the operators of the treatment and rehabilitation program, in 199.11 consultation with the county agency, recommend that the 199.12 recipient not participate in the food stamp employment and 199.13 training program; 199.14 (8) a recipient employed or self-employed for 30 or more 199.15 hours per week at employment paying at least minimum wage, or 199.16 who earns wages from employment equal to or exceeding 30 hours 199.17 multiplied by the federal minimum wage;or199.18 (9) a student enrolled at least half time in any school, 199.19 training program, or institution of higher education. When 199.20 determining if a student meets this criteria, the school's, 199.21 program's or institution's criteria for being enrolled half time 199.22 shall be used.; or 199.23 (10) a recipient residing with and responsible for the care 199.24 of a minor child. 199.25 Sec. 34. Minnesota Statutes 1996, section 256D.051, is 199.26 amended by adding a subdivision to read: 199.27 Subd. 18. [WORK EXPERIENCE PLACEMENTS.] (a) To the extent 199.28 of available resources, each county agency must establish and 199.29 operate a work experience component in the food stamp employment 199.30 and training program for recipients who are subject to a federal 199.31 limit of three months of food stamp eligibility in any 36-month 199.32 period. The purpose of the work experience component is to 199.33 enhance the participant's employability, self-sufficiency, and 199.34 to provide meaningful, productive work activities. 199.35 (b) The commissioner shall assist counties in the design 199.36 and implementation of these components. The commissioner must 200.1 ensure that job placements under a work experience component 200.2 comply with section 256J.72. Written or oral concurrence with 200.3 job duties of persons placed under the community work experience 200.4 program shall be obtained from the appropriate exclusive 200.5 bargaining representative. 200.6 (c) Worksites developed under this section are limited to 200.7 projects that serve a useful public service such as health, 200.8 social service, environmental protection, education, urban and 200.9 rural development and redevelopment, welfare, recreation, public 200.10 facilities, public safety, community service, services to aged 200.11 or disabled citizens, and child care. To the extent possible, 200.12 the prior training, skills, and experience of a recipient must 200.13 be used in making appropriate work experience assignments. 200.14 (d) Structured, supervised volunteer work with an agency or 200.15 organization that is monitored by the county service provider 200.16 may, with the approval of the county agency, be used as a work 200.17 experience placement. 200.18 (e) As a condition of placing a person receiving food 200.19 stamps in a program under this subdivision, the county agency 200.20 shall first provide the recipient the opportunity: 200.21 (1) for placement in suitable subsidized or unsubsidized 200.22 employment through participation in job search under section 200.23 256D.051; or 200.24 (2) for placement in suitable employment through 200.25 participation in on-the-job training, if such employment is 200.26 available. 200.27 (f) The county agency shall limit the maximum monthly 200.28 number of hours that any participant may work in a work 200.29 experience placement to a number equal to the amount of the 200.30 family's monthly food stamp allotment divided by the greater of 200.31 the federal minimum wage or the applicable state minimum wage. 200.32 After a participant has been assigned to a position for nine 200.33 months, the participant may not continue in that assignment 200.34 unless the maximum number of hours a participant works is no 200.35 greater than the amount of the participant's food stamp 200.36 allotment divided by the rate of pay for individuals employed in 201.1 the same or similar occupations by the same employer at the same 201.2 site. 201.3 (g) The participant's employability development plan must 201.4 include the length of time needed in the work experience 201.5 program, the need to continue job seeking activities while 201.6 participating in work experience, and the participant's 201.7 employment goals. 201.8 (h) After each six months of a recipient's participation in 201.9 a work experience job placement, and at the conclusion of each 201.10 work experience assignment under this section, the county agency 201.11 shall reassess and revise, as appropriate, the participant's 201.12 employability development plan. 201.13 (i) A participant may claim good cause under section 201.14 256J.57 for failure to cooperate with a work experience job 201.15 placement. 201.16 (j) A recipient who has failed without good cause to 201.17 participate in or comply with the work experience job placement 201.18 shall be terminated from participation in work experience job 201.19 activities. If the recipient is not exempt from mandatory food 201.20 stamp employment and training program participation under 201.21 section 256D.051, subdivision 3a, the recipient will be assigned 201.22 to other mandatory program activities. If the recipient is 201.23 exempt from mandatory participation but is participating as a 201.24 volunteer, the person shall be terminated from the food stamp 201.25 employment and training program. 201.26 Sec. 35. [256D.0512] [BUDGETING LUMP SUMS.] 201.27 Nonrecurring lump-sum income received by a recipient of 201.28 general assistance must be budgeted in the normal retrospective 201.29 cycle. 201.30 Sec. 36. Minnesota Statutes 1996, section 256D.055, is 201.31 amended to read: 201.32 256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 201.33 The commissioner of human services shall issue a request 201.34 for proposals from counties to submit a plan for developing and 201.35 implementing a county-designed program. The plan shall be for 201.36 first-time applicants foraid to families with dependent202.1children (AFDC) and family general assistance (FGA)Minnesota 202.2 family investment program-statewide (MFIP-S) and, until January 202.3 1, 1998, aid to families with dependent children (AFDC) and 202.4 family general assistance and must emphasize the importance of 202.5 becoming employed and oriented into the work force in order to 202.6 become self-sufficient. The plan must target public assistance 202.7 applicants who are most likely to become self-sufficient quickly 202.8 with short-term assistance or services such as child care, child 202.9 support enforcement, or employment and training services. 202.10 The plan may include vendor payments, mandatory job search, 202.11 refocusing existing county or provider efforts, or other program 202.12 features. The commissioner may approve a county plan which 202.13 allows a county to use other program funding for the county work 202.14 focus program in a more flexible manner. Nothing in this 202.15 section shall allow payments made to the public assistance 202.16 applicant to be less than the amount the applicant would have 202.17 received if the program had not been implemented, or reduce or 202.18 eliminate a category of eligible participants from the program 202.19 without legislative approval. 202.20 The commissioner shall not approve a county plan that would 202.21 have an adverse impact on the Minnesota family investment plan 202.22 demonstration. If the plan is approved by the commissioner, the 202.23 county may implement the plan. If the plan is approved by the 202.24 commissioner, but a federal waiver is necessary to implement the 202.25 plan, the commissioner shall apply for the necessary federal 202.26 waivers. 202.27 Sec. 37. [256D.057] [SUPPLEMENT FOR CERTAIN DISABLED 202.28 NONCITIZENS.] 202.29 (a) For an assistance unit that contains an adult or a 202.30 minor legal noncitizen who was residing in this state as of 202.31 March 1, 1997, and lost eligibility for the federal Food Stamp 202.32 and Supplemental Security Income programs under the provisions 202.33 of title IV of Public Law Number 104-193, the amount of 202.34 assistance that the unit is eligible for under section 256D.06 202.35 shall be increased by an amount equal to the value of the food 202.36 stamps that the assistance unit would have been eligible for if 203.1 the noncitizen were a citizen, for each legal noncitizen, 203.2 provided the legal adult noncitizen in the assistance unit is: 203.3 (1) enrolled in a literacy class, English as a second 203.4 language class, or a citizenship class; 203.5 (2) applying for admission to a literacy class, English as 203.6 a second language class, or a citizenship class, and is on a 203.7 waiting list; 203.8 (3) in the process of applying for a waiver from the 203.9 Immigration and Naturalization Service of the English language 203.10 or civics requirements of the citizenship test; 203.11 (4) has submitted an application for citizenship to the 203.12 Immigration and Naturalization Service and is waiting for a 203.13 testing date or a subsequent swearing in ceremony; or 203.14 (5) has been denied citizenship due to a failure to pass 203.15 the test after two attempts or because of an inability to 203.16 understand the rights and responsibilities of becoming a United 203.17 States citizen, as documented by the Immigration and 203.18 Naturalization Service or the county. 203.19 (b) For the period from July 1, 1997, to February 28, 1998, 203.20 an assistance unit shall receive a transitional amount of $100 203.21 per month for each legal noncitizen who qualifies for assistance 203.22 under paragraph (a). 203.23 Section 37 is effective July 1, 1997. 203.24 Sec. 38. Minnesota Statutes 1996, section 256D.06, 203.25 subdivision 2, is amended to read: 203.26 Subd. 2. Notwithstanding the provisions of subdivision 1, 203.27 a grant of general assistance shall be made to an eligible 203.28individual,single adult, married couple, or family for an 203.29 emergency need, as defined in rules promulgated by the 203.30 commissioner, where the recipient requests temporary assistance 203.31 not exceeding 30 days if an emergency situation appears to exist 203.32 and (a) until January 1, 1998, the individual is ineligible for 203.33 the program of emergency assistance under aid to families with 203.34 dependent children and is not a recipient of aid to families 203.35 with dependent children at the time of applicationhereunder; or 203.36 (b) the individual or family is (i) ineligible for MFIP-S or is 204.1 not a participant of MFIP-S; and (ii) is ineligible for 204.2 emergency assistance under section 256J.48. If an applicant or 204.3 recipient relates facts to the county agency which may be 204.4 sufficient to constitute an emergency situation, the county 204.5 agency shall advise the person of the procedure for applying for 204.6 assistancepursuantaccording to this subdivision. 204.7 Sec. 39. Minnesota Statutes 1996, section 256D.06, 204.8 subdivision 5, is amended to read: 204.9 Subd. 5. Any applicant, otherwise eligible for general 204.10 assistance and possibly eligible for maintenance benefits from 204.11 any other source shall (a) make application for those benefits 204.12 within 30 days of the general assistance application; and (b) 204.13 execute an interim assistance authorization agreement on a form 204.14 as directed by the commissioner. If found eligible for benefits 204.15 from other sources, and a payment received from another source 204.16 relates to the period during which general assistance was also 204.17 being received, the recipient shall be required to reimburse the 204.18 county agency for the interim assistance paid. Reimbursement 204.19 shall not exceed the amount of general assistance paid during 204.20 the time period to which the other maintenance benefits apply 204.21 and shall not exceed the state standard applicable to that time 204.22 period. The commissioner shall adopt rules authorizing county 204.23 agencies or other client representatives to retain from the 204.24 amount recovered under an interim assistance agreement 25 204.25 percent plus actual reasonable fees, costs, and disbursements of 204.26 appeals and litigation, of providing special assistance to the 204.27 recipient in processing the recipient's claim for maintenance 204.28 benefits from another source. The money retained under this 204.29 section shall be from the state share of the recovery. The 204.30 commissioner or the county agency may contract with qualified 204.31 persons to provide the special assistance. The rules adopted by 204.32 the commissioner shall include the methods by which county 204.33 agencies shall identify, refer, and assist recipients who may be 204.34 eligible for benefits under federal programs for the disabled. 204.35This subdivision does not require repayment of per diem payments204.36made to shelters for battered women pursuant to section 256D.05,205.1subdivision 3.205.2 Sec. 40. [256D.066] [INTERSTATE PAYMENT STANDARDS.] 205.3 (a) Effective July 1, 1997, the amount of assistance paid 205.4 to an eligible assistance unit in which all members have resided 205.5 in this state for less than 12 calendar months shall be the 205.6 lesser of either the payment standard that would have been 205.7 received by the assistance unit from the state of immediate 205.8 prior residence, or the amount calculated in accordance with 205.9 this chapter. The lesser payment shall continue until the 205.10 assistance unit meets the 12-month requirement. Payment shall 205.11 be calculated by applying this state's budgeting policies and 205.12 the unit's net income shall be deducted from the payment 205.13 standard in the other state or in this state, whichever is 205.14 lower. At county option, payment shall be made in vendor form 205.15 for rent and utilities, up to the limit of the grant amount, and 205.16 residual amounts, if any, shall be paid directly to the 205.17 assistance unit. 205.18 (b) During the first 12 months an assistance unit resides 205.19 in this state, the number of months that the unit is eligible to 205.20 receive general assistance benefits is limited to the number of 205.21 months the unit would have been eligible to receive similar 205.22 benefits in the state of immediate prior residence. 205.23 (c) This policy applies whether or not the unit received 205.24 similar benefits while residing in the state of previous 205.25 residence. 205.26 (d) When a unit moves to this state from another state 205.27 where the unit has exhausted that state's time limit for 205.28 receiving similar benefits, the unit will not be eligible to 205.29 receive any general assistance benefits in this state for 12 205.30 months from the date the unit moves here. 205.31 (e) For the purposes of this subdivision, "state of 205.32 immediate prior residence" means: 205.33 (i) the state in which the applicant declares the applicant 205.34 spent the most time in the 30 days prior to moving to this 205.35 state; or 205.36 (ii) the applicant is in the migrant work stream and the 206.1 applicant maintains a home in another state. 206.2 Sec. 41. Minnesota Statutes 1996, section 256D.08, 206.3 subdivision 1, is amended to read: 206.4 Subdivision 1. In determining eligibility ofa family,206.5married couple, or individual there shall be excludedan 206.6 assistance unit, the following resources shall be excluded: 206.7 (1) real or personal property or liquid assets which do not 206.8 exceedthose permitted under the federally aided assistance206.9program known as aid to families with dependent children$1,000; 206.10 and 206.11 (2) other property which has been determined,in accordance206.12with and subjectaccording to limitations contained in rules 206.13 promulgated by the commissioner, to be essential tothe family206.14or individualthe assistance unit as a means of self-support or 206.15 self-care or which is producing income that is being used for 206.16 the support of theindividual or familyassistance unit. The 206.17 commissioner shall further provide by rule the conditions for 206.18 those situations in which property not excluded under this 206.19 subdivision may be retained by thefamily or individual206.20 assistance unit where there is a reasonable probability that in 206.21 the foreseeable future the property will be used for the 206.22 self-support of theindividual or familyassistance unit; and 206.23 (3) payments, madepursuantaccording to litigation and 206.24 subsequent appropriation by the United States Congress, of funds 206.25 to compensate members of Indian tribes for the taking of tribal 206.26 land by the federal government. 206.27 Sec. 42. Minnesota Statutes 1996, section 256D.08, 206.28 subdivision 2, is amended to read: 206.29 Subd. 2. Notwithstanding any other provision of sections 206.30 256D.01 to 256D.21, the commissioner shall provide by rule for 206.31 the exclusion of property from the determination of eligibility 206.32 for general assistance when it appears likely that the need for 206.33 general assistance will not exceed 30 days or an undue hardship 206.34 would be imposed onan individual or familyan assistance unit 206.35 by the forced disposal of the property. 206.36 Sec. 43. Minnesota Statutes 1996, section 256D.09, is 207.1 amended by adding a subdivision to read: 207.2 Subd. 2b. If at any time there is verification that the 207.3 client's disability is dependent upon their continued drug 207.4 addiction or alcoholism, general assistance for rent and 207.5 utilities must be made in the form of vendor payments. 207.6 Verification of drug addiction or alcoholism can be 207.7 received from: 207.8 (1) denial of social security benefits based on drug 207.9 addiction or alcoholism; 207.10 (2) a statement from the state medical review team that the 207.11 person's disability is dependent upon continued drug addiction 207.12 or alcoholism; or 207.13 (3) a doctor's statement that the person's disability is 207.14 dependent upon continued drug addiction or alcoholism. 207.15 Sec. 44. Minnesota Statutes 1996, section 256D.435, 207.16 subdivision 3, is amended to read: 207.17 Subd. 3. [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 207.18 Persons who live with the applicant or recipient, who have unmet 207.19 needs and for whom the applicant or recipient has financial 207.20 responsibility, must apply for and, if eligible, acceptAFDC and207.21otherany federally funded benefits, including MFIP-S. 207.22 Sec. 45. Minnesota Statutes 1996, section 256D.44, 207.23 subdivision 5, is amended to read: 207.24 Subd. 5. [SPECIAL NEEDS.] In addition to the state 207.25 standards of assistance established in subdivisions 1 to 4, 207.26 payments are allowed for the following special needs of 207.27 recipients of Minnesota supplemental aid who are not residents 207.28 of a nursing home, a regional treatment center, or a group 207.29 residential housing facility:. 207.30 (a) The county agency shall pay a monthly allowance for 207.31 medically prescribed diets payable under the AFDC program or 207.32 Minnesota family investment program-statewide if the cost of 207.33 those additional dietary needs cannot be met through some other 207.34 maintenance benefit. 207.35 (b) Payment for nonrecurring special needs must be allowed 207.36 for necessary home repairs or necessary repairs or replacement 208.1 of household furniture and appliances using the payment standard 208.2 of the AFDC program in effect on July 16, 1996, for these 208.3 expenses, as long as other funding sources are not available. 208.4 (c) A fee for guardian or conservator service is allowed at 208.5 a reasonable rate negotiated by the county or approved by the 208.6 court. This rate shall not exceed five percent of the 208.7 assistance unit's gross monthly income up to a maximum of $100 208.8 per month. If the guardian or conservator is a member of the 208.9 county agency staff, no fee is allowed. 208.10 (d) The county agency shall continue to pay a monthly 208.11 allowance of $68 for restaurant meals for a person who was 208.12 receiving a restaurant meal allowance on June 1, 1990, and who 208.13 eats two or more meals in a restaurant daily. The allowance 208.14 must continue until the person has not received Minnesota 208.15 supplemental aid for one full calendar month or until the 208.16 person's living arrangement changes and the person no longer 208.17 meets the criteria for the restaurant meal allowance, whichever 208.18 occurs first. 208.19 (e) A fee of ten percent of the recipient's gross income or 208.20 $25, whichever is less, is allowed for representative payee 208.21 services provided by an agency that meets the requirements under 208.22 SSI regulations to charge a fee for representative payee 208.23 services. This special need is available to all recipients of 208.24 Minnesota supplemental aid regardless of their living 208.25 arrangement. 208.26 Sec. 46. Minnesota Statutes 1996, section 259.67, 208.27 subdivision 4, is amended to read: 208.28 Subd. 4. [ELIGIBILITY CONDITIONS.] (a) The placing agency 208.29 shalldetermineuse the AFDC requirements in effect on as 208.30 specified in federal law , when determining the child's 208.31 eligibility for adoption assistance under title IV-E of the 208.32 Social Security Act. If the child does not qualify, the placing 208.33 agency shall certify a child as eligible for state funded 208.34 adoption assistance only if the following criteria are met: 208.35 (1) Due to the child's characteristics or circumstances it 208.36 would be difficult to provide the child an adoptive home without 209.1 adoption assistance. 209.2 (2)(i) A placement agency has made reasonable efforts to 209.3 place the child for adoption without adoption assistance, but 209.4 has been unsuccessful; or 209.5 (ii) the child's licensed foster parents desire to adopt 209.6 the child and it is determined by the placing agency that the 209.7 adoption is in the best interest of the child. 209.8 (3) The child has been a ward of the commissioner or a 209.9 Minnesota-licensed child-placing agency. 209.10 (b) For purposes of this subdivision, the characteristics 209.11 or circumstances that may be considered in determining whether a 209.12 child is a child with special needs under United States Code, 209.13 title 42, chapter 7, subchapter IV, part E, or meets the 209.14 requirements of paragraph (a), clause (1), are the following: 209.15 (1) The child is a member of a sibling group to be placed 209.16 as one unit in which at least one sibling is older than 15 209.17 months of age or is described in clause (2) or (3). 209.18 (2) The child has documented physical, mental, emotional, 209.19 or behavioral disabilities. 209.20 (3) The child has a high risk of developing physical, 209.21 mental, emotional, or behavioral disabilities. 209.22 (c) When a child's eligibility for adoption assistance is 209.23 based upon the high risk of developing physical, mental, 209.24 emotional, or behavioral disabilities, payments shall not be 209.25 made under the adoption assistance agreement unless and until 209.26 the potential disability manifests itself as documented by an 209.27 appropriate health care professional. 209.28 Sec. 47. [TRANSFER OF RESPONSIBILITIES FOR PROVIDING 209.29 SECURE CRISIS SHELTER.] 209.30 All of the powers, duties, and functions of the 209.31 commissioner of human services relating to the operation and 209.32 funding of shelters for battered women are transferred to the 209.33 commissioner of corrections in accordance with Minnesota 209.34 Statutes, section 15.039, except for personnel transfers under 209.35 section 15.039, subdivision 7. 209.36 Sec. 48. [FINDINGS; CONTINGENT BENEFIT STANDARDS.] 210.1 The legislature makes the following findings: 210.2 (a) The legislature is statutorily required to balance the 210.3 state budget. 210.4 (b) The task of balancing the state budget is made 210.5 difficult in the area of the new federal welfare reform program 210.6 for the needy due to the dramatic change in program design that 210.7 this state and all other states must experience, rendering 210.8 historical data on client behavior, interstate migration, and 210.9 welfare spending patterns of dubious value. 210.10 (c) Many states have more restrictive or nonexistent state 210.11 welfare programs to aid needy individuals without children. 210.12 (d) Within the state's limited resources, the legislature 210.13 wishes to manage funds appropriated under this part to best 210.14 provide for needy Minnesotans. 210.15 (e) To that end, the legislature has adopted a policy in 210.16 Minnesota Statutes, section 256D.066, of providing households of 210.17 needy individuals or couples without children in which no 210.18 mandatory member has resided in Minnesota for the previous 12 210.19 months a benefit based on the grant the household would have 210.20 received had it applied for benefits in its previous state of 210.21 residence. 210.22 (f) Therefore, if the policy designed to make welfare 210.23 benefits a neutral factor in the decision to move to Minnesota 210.24 and to best manage the benefit appropriation for needy 210.25 Minnesotans, while providing a safety net for recent interstate 210.26 migrants, is enjoined or otherwise prevented from being 210.27 implemented, the commissioner shall ratably reduce the benefit 210.28 standards for all assistance units, from the standards in 210.29 Minnesota Statutes, section 256D.01, but only in an amount 210.30 sufficient to remain within the forecasted budgets for those 210.31 programs. In the event the commissioner is required to ratably 210.32 reduce benefits under this section, the commissioner shall 210.33 notify the fiscal and policy chairs of the house and senate 210.34 human services committees that the reductions have taken place 210.35 and shall formulate a plan to be presented to the next 210.36 legislative session. 211.1 At county option, these benefits shall be paid in vendor 211.2 form for rent and utilities, up to the limit of the grant 211.3 amount. The residual amount, if any, shall be paid directly to 211.4 the assistance unit. 211.5 Sec. 49. [REPEALER.] 211.6 Minnesota Statutes 1996, sections 256.8711; 256D.02, 211.7 subdivision 5; 256D.0511; and 256D.065 are repealed. 211.8 Sec. 50. [EFFECTIVE DATES.] 211.9 Sections 21, 22, and 25 are effective January 1, 1998. 211.10 ARTICLE 4 211.11 TECHNICAL CHANGES; CROSS REFERENCES 211.12 Section 1. Minnesota Statutes 1996, section 13.46, 211.13 subdivision 1, is amended to read: 211.14 Subdivision 1. [DEFINITIONS.] As used in this section: 211.15 (a) "Individual" means an individualpursuantaccording to 211.16 section 13.02, subdivision 8, but does not include a vendor of 211.17 services. 211.18 (b) "Program" includes all programs for which authority is 211.19 vested in a component of the welfare systempursuantaccording 211.20 to statute or federal law, including, but not limited to, aid to 211.21 families with dependent children, Minnesota family investment 211.22 program-statewide, medical assistance, general assistance,work211.23readiness,general assistance medical care, and child support 211.24 collections. 211.25 (c) "Welfare system" includes the department of human 211.26 services, local social services agencies, county welfare 211.27 agencies, the public authority responsible for child support 211.28 enforcement, human services boards, community mental health 211.29 center boards, state hospitals, state nursing homes, the 211.30 ombudsman for mental health and mental retardation, and persons, 211.31 agencies, institutions, organizations, and other entities under 211.32 contract to any of the above agencies to the extent specified in 211.33 the contract. 211.34 (d) "Mental health data" means data on individual clients 211.35 and patients of community mental health centers, established 211.36 under section 245.62, mental health divisions of counties and 212.1 other providers under contract to deliver mental health 212.2 services, or the ombudsman for mental health and mental 212.3 retardation. 212.4 (e) "Fugitive felon" means a person who has been convicted 212.5 of a felony and who has escaped from confinement or violated the 212.6 terms of probation or parole for that offense. 212.7 Sec. 2. Minnesota Statutes 1996, section 13.46, 212.8 subdivision 2, is amended to read: 212.9 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 212.10 a statute specifically provides a different classification, data 212.11 on individuals collected, maintained, used, or disseminated by 212.12 the welfare system is private data on individuals, and shall not 212.13 be disclosed except: 212.14 (1)pursuantaccording to section 13.05; 212.15 (2)pursuantaccording to court order; 212.16 (3)pursuantaccording to a statute specifically 212.17 authorizing access to the private data; 212.18 (4) to an agent of the welfare system, including a law 212.19 enforcement person, attorney, or investigator acting for it in 212.20 the investigation or prosecution of a criminal or civil 212.21 proceeding relating to the administration of a program; 212.22 (5) to personnel of the welfare system who require the data 212.23 to determine eligibility, amount of assistance, and the need to 212.24 provide services of additional programs to the individual; 212.25 (6) to administer federal funds or programs; 212.26 (7) between personnel of the welfare system working in the 212.27 same program; 212.28 (8) the amounts of cash public assistance and relief paid 212.29 to welfare recipients in this state, including their names, 212.30 social security numbers, income, addresses, and other data as 212.31 required, upon request by the department of revenue to 212.32 administer the property tax refund law, supplemental housing 212.33 allowance, early refund of refundable tax credits, and the 212.34 income tax. "Refundable tax credits" means the dependent care 212.35 credit under section 290.067, the Minnesota working family 212.36 credit under section 290.0671, the property tax refund under 213.1 section 290A.04, and, if the required federal waiver or waivers 213.2 are granted, the federal earned income tax credit under section 213.3 32 of the Internal Revenue Code; 213.4 (9) to the Minnesota department of economic security for 213.5 the purpose of monitoring the eligibility of the data subject 213.6 for reemployment insurance, for any employment or training 213.7 program administered, supervised, or certified by that agency, 213.8 or for the purpose of administering any rehabilitation program, 213.9 whether alone or in conjunction with the welfare system, and to 213.10 verify receipt of energy assistance for the telephone assistance 213.11 plan; 213.12 (10) to appropriate parties in connection with an emergency 213.13 if knowledge of the information is necessary to protect the 213.14 health or safety of the individual or other individuals or 213.15 persons; 213.16 (11) data maintained by residential programs as defined in 213.17 section 245A.02 may be disclosed to the protection and advocacy 213.18 system established in this statepursuantaccording to Part C of 213.19 Public Law Number 98-527 to protect the legal and human rights 213.20 of persons with mental retardation or other related conditions 213.21 who live in residential facilities for these persons if the 213.22 protection and advocacy system receives a complaint by or on 213.23 behalf of that person and the person does not have a legal 213.24 guardian or the state or a designee of the state is the legal 213.25 guardian of the person; 213.26 (12) to the county medical examiner or the county coroner 213.27 for identifying or locating relatives or friends of a deceased 213.28 person; 213.29 (13) data on a child support obligor who makes payments to 213.30 the public agency may be disclosed to the higher education 213.31 services office to the extent necessary to determine eligibility 213.32 under section 136A.121, subdivision 2, clause (5); 213.33 (14) participant social security numbers and names 213.34 collected by the telephone assistance program may be disclosed 213.35 to the department of revenue to conduct an electronic data match 213.36 with the property tax refund database to determine eligibility 214.1 under section 237.70, subdivision 4a; 214.2 (15) the current address of a recipient of aid to families 214.3 with dependent children or Minnesota family investment 214.4 program-statewide may be disclosed to law enforcement officers 214.5 who provide the name and social security number of the recipient 214.6 and satisfactorily demonstrate that: (i) the recipient is a 214.7 fugitive felon, including the grounds for this determination; 214.8 (ii) the location or apprehension of the felon is within the law 214.9 enforcement officer's official duties; and (iii) the request is 214.10 made in writing and in the proper exercise of those duties; 214.11 (16) the current address of a recipient of general 214.12 assistance, work readiness,or general assistance medical care 214.13 may be disclosed to probation officers and corrections agents 214.14 who are supervising the recipient, and to law enforcement 214.15 officers who are investigating the recipient in connection with 214.16 a felony level offense; 214.17 (17) information obtained from food stamp applicant or 214.18 recipient households may be disclosed to local, state, or 214.19 federal law enforcement officials, upon their written request, 214.20 for the purpose of investigating an alleged violation of the 214.21 food stamp act,in accordance withaccording to Code of Federal 214.22 Regulations, title 7, section 272.1(c); 214.23 (18) data on a child support obligor who is in arrears may 214.24 be disclosed for purposes of publishing the datapursuant214.25 according to section 518.575; 214.26 (19) data on child support payments made by a child support 214.27 obligor may be disclosed to the obligee; 214.28 (20) data in the work reporting system may be disclosed 214.29 under section 256.998, subdivision 7; 214.30 (21) to the department of children, families, and learning 214.31 for the purpose of matching department of children, families, 214.32 and learning student data with public assistance data to 214.33 determine students eligible for free and reduced price meals, 214.34 meal supplements, and free milkpursuantaccording to United 214.35 States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 214.36 and 1773; to produce accurate numbers of students receiving aid 215.1 to families with dependent children or Minnesota family 215.2 investment program-statewide as required by section 124.175; and 215.3 to allocate federal and state funds that are distributed based 215.4 on income of the student's family; or 215.5 (22) the current address and telephone number of program 215.6 recipients and emergency contacts may be released to the 215.7 commissioner of health or a local board of health as defined in 215.8 section 145A.02, subdivision 2, when the commissioner or local 215.9 board of health has reason to believe that a program recipient 215.10 is a disease case, carrier, suspect case, or at risk of illness, 215.11 and the data are necessary to locate the person. 215.12 (b) Information on persons who have been treated for drug 215.13 or alcohol abuse may only be disclosedin accordance with215.14 according to the requirements of Code of Federal Regulations, 215.15 title 42, sections 2.1 to 2.67. 215.16 (c) Data provided to law enforcement agencies under 215.17 paragraph (a), clause (15), (16), or (17), or paragraph (b), are 215.18 investigative data and are confidential or protected nonpublic 215.19 while the investigation is active. The data are private after 215.20 the investigation becomes inactive under section 13.82, 215.21 subdivision 5, paragraph (a) or (b). 215.22 (d) Mental health data shall be treated as provided in 215.23 subdivisions 7, 8, and 9, but is not subject to the access 215.24 provisions of subdivision 10, paragraph (b). 215.25 Sec. 3. Minnesota Statutes 1996, section 84.98, 215.26 subdivision 3, is amended to read: 215.27 Subd. 3. [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 215.28 PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 215.29 determining economic, social, physical, or educational 215.30 disadvantage shall be determined as provided in this subdivision. 215.31 (b) Economically disadvantaged are persons who meet the 215.32 criteria for disadvantaged established by the department of 215.33 economic security or persons receiving services provided by the 215.34 department of human services such as welfare payments, food 215.35 stamps,andaid to families with dependent children or Minnesota 215.36 family investment program-statewide. 216.1 (c) Socially disadvantaged are persons who have been 216.2 classified as persons in need of supervision by the court system. 216.3 (d) Physically disadvantaged are persons who have been 216.4 identified as having special needs by public agencies that deal 216.5 with employment for the disabled. 216.6 (e) Educationally disadvantaged are persons who have 216.7 dropped out of school or are at risk of dropping out of school 216.8 and persons with learning disabilities or in need of special 216.9 education classes. 216.10 Sec. 4. Minnesota Statutes 1996, section 136A.125, 216.11 subdivision 2, is amended to read: 216.12 Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for 216.13 a child care grant if the applicant: 216.14 (1) is a resident of the state of Minnesota; 216.15 (2) has a child 12 years of age or younger, or 14 years of 216.16 age or younger who is handicapped as defined in section 120.03, 216.17 and who is receiving or will receive care on a regular basis 216.18 from a licensed or legal, nonlicensed caregiver; 216.19 (3) is income eligible as determined by the office's 216.20 policies and rules, but is not a recipient of assistance from 216.21 either aid to families with dependent children or Minnesota 216.22 family investment program-statewide; 216.23 (4) has not earned a baccalaureate degree and has been 216.24 enrolled full time less than eight semesters, 12 quarters, or 216.25 the equivalent; 216.26 (5) is pursuing a nonsectarian program or course of study 216.27 that applies to an undergraduate degree, diploma, or 216.28 certificate; 216.29 (6) is enrolled at least half time in an eligible 216.30 institution; and 216.31 (7) is in good academic standing and making satisfactory 216.32 academic progress. 216.33 Sec. 5. Minnesota Statutes 1996, section 196.27, is 216.34 amended to read: 216.35 196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 216.36 (a) Payments received by veterans or their dependents 217.1 because of settlements between them and the manufacturers of 217.2 Agent Orange or other chemical agents, as defined in section 217.3 196.21, must not be treated as income (or an available resource) 217.4 of the veterans or their dependents for the purposes of any 217.5 program of public assistance or benefit program administered by 217.6 the department of veterans affairs, the department of human 217.7 services, or other agencies of the state or political 217.8 subdivisions of the state, except as provided in paragraph (b). 217.9 (b) The income and resource exclusion in paragraph (a) does 217.10 not apply to the medical assistance, food stamps,oraid to 217.11 families with dependent children or Minnesota family investment 217.12 program-statewide programs until the commissioner of human 217.13 services receives formal approval from the United States 217.14 Department of Health and Human Services, for the medical 217.15 assistanceand, aid to families with dependent children or 217.16 Minnesota family investment program-statewide programs, and from 217.17 the United States Department of Agriculture, for the food stamps 217.18 program. The income exclusion does not apply to the Minnesota 217.19 supplemental aid program until the commissioner receives formal 217.20 federal approval of the exclusion for the medical assistance 217.21 program. 217.22 Sec. 6. Minnesota Statutes 1996, section 237.70, 217.23 subdivision 4a, is amended to read: 217.24 Subd. 4a. [HOUSEHOLDS ELIGIBLE FOR CREDITS.] The telephone 217.25 assistance plan must provide telephone assistance credit for a 217.26 residential household in Minnesota that meets each of the 217.27 following criteria: 217.28 (1) has a household member who: 217.29 (i) subscribes to local exchange service; and 217.30 (ii) is either disabled or 65 years of age or older; 217.31 (2) whose household income is 150 percent or less of 217.32 federal poverty guidelines or is currently eligible for: 217.33 (i) aid to families with dependent children or Minnesota 217.34 family investment program-statewide; 217.35 (ii) medical assistance; 217.36 (iii) general assistance; 218.1 (iv) Minnesota supplemental aid; 218.2 (v) food stamps; 218.3 (vi) refugee cash assistance or refugee medical assistance; 218.4 (vii) energy assistance; or 218.5 (viii) supplemental security income; and 218.6 (3) who has been certified as eligible for telephone 218.7 assistance plan credits. 218.8 Sec. 7. Minnesota Statutes 1996, section 254B.02, 218.9 subdivision 1, is amended to read: 218.10 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 218.11 The chemical dependency funds appropriated for allocation shall 218.12 be placed in a special revenue account. For the fiscal year 218.13 beginning July 1, 1987, funds shall be transferred to operate 218.14 the vendor payment, invoice processing, and collections system 218.15 for one year. The commissioner shall annually transfer funds 218.16 from the chemical dependency fund to pay for operation of the 218.17 drug and alcohol abuse normative evaluation system and to pay 218.18 for all costs incurred by adding two positions for licensing of 218.19 chemical dependency treatment and rehabilitation programs 218.20 located in hospitals for which funds are not otherwise 218.21 appropriated. The commissioner shall annually divide the money 218.22 available in the chemical dependency fund that is not held in 218.23 reserve by counties from a previous allocation. Twelve percent 218.24 of the remaining money must be reserved for treatment of 218.25 American Indians by eligible vendors under section 254B.05. The 218.26 remainder of the money must be allocated among the counties 218.27 according to the following formula, using state demographer data 218.28 and other data sources determined by the commissioner: 218.29 (a) For purposes of this formula, American Indians and 218.30 children under age 14 are subtracted from the population of each 218.31 county to determine the restricted population. 218.32 (b) The amount of chemical dependency fund expenditures for 218.33 entitled persons for services not covered by prepaid plans 218.34 governed by section 256B.69 in the previous year is divided by 218.35 the amount of chemical dependency fund expenditures for entitled 218.36 persons for all services to determine the proportion of exempt 219.1 service expenditures for each county. 219.2 (c) The prepaid plan months of eligibility is multiplied by 219.3 the proportion of exempt service expenditures to determine the 219.4 adjusted prepaid plan months of eligibility for each county. 219.5 (d) The adjusted prepaid plan months of eligibility is 219.6 added to the number of restricted population fee for service 219.7 months of eligibility for aid to families with dependent 219.8 children, Minnesota family investment program-statewide, general 219.9 assistance, and medical assistance and divided by the county 219.10 restricted population to determine county per capita months of 219.11 covered service eligibility. 219.12 (e) The number of adjusted prepaid plan months of 219.13 eligibility for the state is added to the number of fee for 219.14 service months of eligibility for aid to families with dependent 219.15 children, Minnesota family investment program-statewide, general 219.16 assistance, and medical assistance for the state restricted 219.17 population and divided by the state restricted population to 219.18 determine state per capita months of covered service eligibility. 219.19 (f) The county per capita months of covered service 219.20 eligibility is divided by the state per capita months of covered 219.21 service eligibility to determine the county welfare caseload 219.22 factor. 219.23 (g) The median married couple income for the most recent 219.24 three-year period available for the state is divided by the 219.25 median married couple income for the same period for each county 219.26 to determine the income factor for each county. 219.27 (h) The county restricted population is multiplied by the 219.28 sum of the county welfare caseload factor and the county income 219.29 factor to determine the adjusted population. 219.30 (i) $15,000 shall be allocated to each county. 219.31 (j) The remaining funds shall be allocated proportional to 219.32 the county adjusted population. 219.33 Sec. 8. Minnesota Statutes 1996, section 256.01, 219.34 subdivision 2, is amended to read: 219.35 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 219.36 section 241.021, subdivision 2, the commissioner of human 220.1 services shall: 220.2 (1) Administer and supervise all forms of public assistance 220.3 provided for by state law and other welfare activities or 220.4 services as are vested in the commissioner. Administration and 220.5 supervision of human services activities or services includes, 220.6 but is not limited to, assuring timely and accurate distribution 220.7 of benefits, completeness of service, and quality program 220.8 management. In addition to administering and supervising human 220.9 services activities vested by law in the department, the 220.10 commissioner shall have the authority to: 220.11 (a) require county agency participation in training and 220.12 technical assistance programs to promote compliance with 220.13 statutes, rules, federal laws, regulations, and policies 220.14 governing human services; 220.15 (b) monitor, on an ongoing basis, the performance of county 220.16 agencies in the operation and administration of human services, 220.17 enforce compliance with statutes, rules, federal laws, 220.18 regulations, and policies governing welfare services and promote 220.19 excellence of administration and program operation; 220.20 (c) develop a quality control program or other monitoring 220.21 program to review county performance and accuracy of benefit 220.22 determinations; 220.23 (d) require county agencies to make an adjustment to the 220.24 public assistance benefits issued to any individual consistent 220.25 with federal law and regulation and state law and rule and to 220.26 issue or recover benefits as appropriate; 220.27 (e) delay or deny payment of all or part of the state and 220.28 federal share of benefits and administrative reimbursement 220.29 according to the procedures set forth in section 256.017; and 220.30 (f) make contracts with and grants to public and private 220.31 agencies and organizations, both profit and nonprofit, and 220.32 individuals, using appropriated funds. 220.33 (2) Inform county agencies, on a timely basis, of changes 220.34 in statute, rule, federal law, regulation, and policy necessary 220.35 to county agency administration of the programs. 220.36 (3) Administer and supervise all child welfare activities; 221.1 promote the enforcement of laws protecting handicapped, 221.2 dependent, neglected and delinquent children, and children born 221.3 to mothers who were not married to the children's fathers at the 221.4 times of the conception nor at the births of the children; 221.5 license and supervise child-caring and child-placing agencies 221.6 and institutions; supervise the care of children in boarding and 221.7 foster homes or in private institutions; and generally perform 221.8 all functions relating to the field of child welfare now vested 221.9 in the state board of control. 221.10 (4) Administer and supervise all noninstitutional service 221.11 to handicapped persons, including those who are visually 221.12 impaired, hearing impaired, or physically impaired or otherwise 221.13 handicapped. The commissioner may provide and contract for the 221.14 care and treatment of qualified indigent children in facilities 221.15 other than those located and available at state hospitals when 221.16 it is not feasible to provide the service in state hospitals. 221.17 (5) Assist and actively cooperate with other departments, 221.18 agencies and institutions, local, state, and federal, by 221.19 performing services in conformity with the purposes of Laws 221.20 1939, chapter 431. 221.21 (6) Act as the agent of and cooperate with the federal 221.22 government in matters of mutual concern relative to and in 221.23 conformity with the provisions of Laws 1939, chapter 431, 221.24 including the administration of any federal funds granted to the 221.25 state to aid in the performance of any functions of the 221.26 commissioner as specified in Laws 1939, chapter 431, and 221.27 including the promulgation of rules making uniformly available 221.28 medical care benefits to all recipients of public assistance, at 221.29 such times as the federal government increases its participation 221.30 in assistance expenditures for medical care to recipients of 221.31 public assistance, the cost thereof to be borne in the same 221.32 proportion as are grants of aid to said recipients. 221.33 (7) Establish and maintain any administrative units 221.34 reasonably necessary for the performance of administrative 221.35 functions common to all divisions of the department. 221.36 (8) Act as designated guardian of both the estate and the 222.1 person of all the wards of the state of Minnesota, whether by 222.2 operation of law or by an order of court, without any further 222.3 act or proceeding whatever, except as to persons committed as 222.4 mentally retarded. 222.5 (9) Act as coordinating referral and informational center 222.6 on requests for service for newly arrived immigrants coming to 222.7 Minnesota. 222.8 (10) The specific enumeration of powers and duties as 222.9 hereinabove set forth shall in no way be construed to be a 222.10 limitation upon the general transfer of powers herein contained. 222.11 (11) Establish county, regional, or statewide schedules of 222.12 maximum fees and charges which may be paid by county agencies 222.13 for medical, dental, surgical, hospital, nursing and nursing 222.14 home care and medicine and medical supplies under all programs 222.15 of medical care provided by the state and for congregate living 222.16 care under the income maintenance programs. 222.17 (12) Have the authority to conduct and administer 222.18 experimental projects to test methods and procedures of 222.19 administering assistance and services to recipients or potential 222.20 recipients of public welfare. To carry out such experimental 222.21 projects, it is further provided that the commissioner of human 222.22 services is authorized to waive the enforcement of existing 222.23 specific statutory program requirements, rules, and standards in 222.24 one or more counties. The order establishing the waiver shall 222.25 provide alternative methods and procedures of administration, 222.26 shall not be in conflict with the basic purposes, coverage, or 222.27 benefits provided by law, and in no event shall the duration of 222.28 a project exceed four years. It is further provided that no 222.29 order establishing an experimental project as authorized by the 222.30 provisions of this section shall become effective until the 222.31 following conditions have been met: 222.32 (a) The proposed comprehensive plan, including estimated 222.33 project costs and the proposed order establishing the waiver, 222.34 shall be filed with the secretary of the senate and chief clerk 222.35 of the house of representatives at least 60 days prior to its 222.36 effective date. 223.1 (b) The secretary of health, education, and welfare of the 223.2 United States has agreed, for the same project, to waive state 223.3 plan requirements relative to statewide uniformity. 223.4 (c) A comprehensive plan, including estimated project 223.5 costs, shall be approved by the legislative advisory commission 223.6 and filed with the commissioner of administration. 223.7 (13)In accordance withAccording to federal requirements, 223.8 establish procedures to be followed by local welfare boards in 223.9 creating citizen advisory committees, including procedures for 223.10 selection of committee members. 223.11 (14) Allocate federal fiscal disallowances or sanctions 223.12 which are based on quality control error rates for the aid to 223.13 families with dependent children, Minnesota family investment 223.14 program-statewide, medical assistance, or food stamp program in 223.15 the following manner: 223.16 (a) One-half of the total amount of the disallowance shall 223.17 be borne by the county boards responsible for administering the 223.18 programs. For the medical assistanceand, AFDC, and MFIP-S 223.19 programs, disallowances shall be shared by each county board in 223.20 the same proportion as that county's expenditures for the 223.21 sanctioned program are to the total of all counties' 223.22 expenditures for the AFDC, MFIP-S and medical assistance 223.23 programs. For the food stamp program, sanctions shall be shared 223.24 by each county board, with 50 percent of the sanction being 223.25 distributed to each county in the same proportion as that 223.26 county's administrative costs for food stamps are to the total 223.27 of all food stamp administrative costs for all counties, and 50 223.28 percent of the sanctions being distributed to each county in the 223.29 same proportion as that county's value of food stamp benefits 223.30 issued are to the total of all benefits issued for all 223.31 counties. Each county shall pay its share of the disallowance 223.32 to the state of Minnesota. When a county fails to pay the 223.33 amount due hereunder, the commissioner may deduct the amount 223.34 from reimbursement otherwise due the county, or the attorney 223.35 general, upon the request of the commissioner, may institute 223.36 civil action to recover the amount due. 224.1 (b) Notwithstanding the provisions of paragraph (a), if the 224.2 disallowance results from knowing noncompliance by one or more 224.3 counties with a specific program instruction, and that knowing 224.4 noncompliance is a matter of official county board record, the 224.5 commissioner may require payment or recover from the county or 224.6 counties, in the manner prescribed in paragraph (a), an amount 224.7 equal to the portion of the total disallowance which resulted 224.8 from the noncompliance, and may distribute the balance of the 224.9 disallowance according to paragraph (a). 224.10 (15) Develop and implement special projects that maximize 224.11 reimbursements and result in the recovery of money to the 224.12 state. For the purpose of recovering state money, the 224.13 commissioner may enter into contracts with third parties. Any 224.14 recoveries that result from projects or contracts entered into 224.15 under this paragraph shall be deposited in the state treasury 224.16 and credited to a special account until the balance in the 224.17 account reaches $1,000,000. When the balance in the account 224.18 exceeds $1,000,000, the excess shall be transferred and credited 224.19 to the general fund. All money in the account is appropriated 224.20 to the commissioner for the purposes of this paragraph. 224.21 (16) Have the authority to make direct payments to 224.22 facilities providing shelter to women and their children 224.23pursuantaccording to section 256D.05, subdivision 3. Upon the 224.24 written request of a shelter facility that has been denied 224.25 payments under section 256D.05, subdivision 3, the commissioner 224.26 shall review all relevant evidence and make a determination 224.27 within 30 days of the request for review regarding issuance of 224.28 direct payments to the shelter facility. Failure to act within 224.29 30 days shall be considered a determination not to issue direct 224.30 payments. 224.31 (17) Have the authority to establish and enforce the 224.32 following county reporting requirements: 224.33 (a) The commissioner shall establish fiscal and statistical 224.34 reporting requirements necessary to account for the expenditure 224.35 of funds allocated to counties for human services programs. 224.36 When establishing financial and statistical reporting 225.1 requirements, the commissioner shall evaluate all reports, in 225.2 consultation with the counties, to determine if the reports can 225.3 be simplified or the number of reports can be reduced. 225.4 (b) The county board shall submit monthly or quarterly 225.5 reports to the department as required by the commissioner. 225.6 Monthly reports are due no later than 15 working days after the 225.7 end of the month. Quarterly reports are due no later than 30 225.8 calendar days after the end of the quarter, unless the 225.9 commissioner determines that the deadline must be shortened to 225.10 20 calendar days to avoid jeopardizing compliance with federal 225.11 deadlines or risking a loss of federal funding. Only reports 225.12 that are complete, legible, and in the required format shall be 225.13 accepted by the commissioner. 225.14 (c) If the required reports are not received by the 225.15 deadlines established in clause (b), the commissioner may delay 225.16 payments and withhold funds from the county board until the next 225.17 reporting period. When the report is needed to account for the 225.18 use of federal funds and the late report results in a reduction 225.19 in federal funding, the commissioner shall withhold from the 225.20 county boards with late reports an amount equal to the reduction 225.21 in federal funding until full federal funding is received. 225.22 (d) A county board that submits reports that are late, 225.23 illegible, incomplete, or not in the required format for two out 225.24 of three consecutive reporting periods is considered 225.25 noncompliant. When a county board is found to be noncompliant, 225.26 the commissioner shall notify the county board of the reason the 225.27 county board is considered noncompliant and request that the 225.28 county board develop a corrective action plan stating how the 225.29 county board plans to correct the problem. The corrective 225.30 action plan must be submitted to the commissioner within 45 days 225.31 after the date the county board received notice of noncompliance. 225.32 (e) The final deadline for fiscal reports or amendments to 225.33 fiscal reports is one year after the date the report was 225.34 originally due. If the commissioner does not receive a report 225.35 by the final deadline, the county board forfeits the funding 225.36 associated with the report for that reporting period and the 226.1 county board must repay any funds associated with the report 226.2 received for that reporting period. 226.3 (f) The commissioner may not delay payments, withhold 226.4 funds, or require repayment under paragraph (c) or (e) if the 226.5 county demonstrates that the commissioner failed to provide 226.6 appropriate forms, guidelines, and technical assistance to 226.7 enable the county to comply with the requirements. If the 226.8 county board disagrees with an action taken by the commissioner 226.9 under paragraph (c) or (e), the county board may appeal the 226.10 action according to sections 14.57 to 14.69. 226.11 (g) Counties subject to withholding of funds under 226.12 paragraph (c) or forfeiture or repayment of funds under 226.13 paragraph (e) shall not reduce or withhold benefits or services 226.14 to clients to cover costs incurred due to actions taken by the 226.15 commissioner under paragraph (c) or (e). 226.16 (18) Allocate federal fiscal disallowances or sanctions for 226.17 audit exceptions when federal fiscal disallowances or sanctions 226.18 are based on a statewide random sample for the foster care 226.19 program under title IV-E of the Social Security Act, United 226.20 States Code, title 42, in direct proportion to each county's 226.21 title IV-E foster care maintenance claim for that period. 226.22 Sec. 9. Minnesota Statutes 1996, section 256.01, 226.23 subdivision 4a, is amended to read: 226.24 Subd. 4a. [TECHNICAL ASSISTANCE FOR IMMUNIZATION 226.25 REMINDERS.] The state agency shall provide appropriate technical 226.26 assistance to county agencies to develop methods to have county 226.27 financial workers remind and encourage recipients of aid to 226.28 families with dependent children, Minnesota family investment 226.29 program-statewide, the Minnesota family investment plan, medical 226.30 assistance, family general assistance, or food stamps whose 226.31 assistance unit includes at least one child under the age of 226.32 five to have each young child immunized against childhood 226.33 diseases. The state agency must examine the feasibility of 226.34 utilizing the capacity of a statewide computer system to assist 226.35 county agency financial workers in performing this function at 226.36 appropriate intervals. 227.1 Sec. 10. Minnesota Statutes 1996, section 256.017, 227.2 subdivision 1, is amended to read: 227.3 Subdivision 1. [AUTHORITY AND PURPOSE.] The commissioner 227.4 shall administer a compliance system for aid to families with 227.5 dependent children, Minnesota family investment 227.6 program-statewide, the food stamp program, emergency assistance, 227.7 general assistance,work readiness,medical assistance, general 227.8 assistance medical care, emergency general assistance, Minnesota 227.9 supplemental assistance, preadmission screening, and alternative 227.10 care grants under the powers and authorities named in section 227.11 256.01, subdivision 2. The purpose of the compliance system is 227.12 to permit the commissioner to supervise the administration of 227.13 public assistance programs and to enforce timely and accurate 227.14 distribution of benefits, completeness of service and efficient 227.15 and effective program management and operations, to increase 227.16 uniformity and consistency in the administration and delivery of 227.17 public assistance programs throughout the state, and to reduce 227.18 the possibility of sanctions and fiscal disallowances for 227.19 noncompliance with federal regulations and state statutes. 227.20 The commissioner shall utilize training, technical 227.21 assistance, and monitoring activities, as specified in section 227.22 256.01, subdivision 2, to encourage county agency compliance 227.23 with written policies and procedures. 227.24 Sec. 11. Minnesota Statutes 1996, section 256.017, 227.25 subdivision 4, is amended to read: 227.26 Subd. 4. [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 227.27 CASE PENALTY.] (a) The amount of the quality control case 227.28 penalty is limited to the amount of the dollar error for the 227.29 quality control sample month in a reviewed case as determined by 227.30 the state quality control review procedures for the aid to 227.31 families with dependent children, Minnesota family investment 227.32 program-statewide and food stamp programs or for any other 227.33 income transfer program for which the commissioner develops a 227.34 quality control program. 227.35 (b) Payment errors in medical assistance or any other 227.36 medical services program for which the department develops a 228.1 quality control program are subject to set rate penalties based 228.2 on the average cost of the specific quality control error 228.3 element for a sample review month for that household size and 228.4 status of institutionalization and as determined from state 228.5 quality control data in the preceding fiscal year for the 228.6 corresponding program. 228.7 (c) Errors identified in negative action cases, such as 228.8 incorrect terminations or denials of assistance are subject to 228.9 set rate penalties based on the average benefit cost of that 228.10 household size as determined from state quality control data in 228.11 the preceding fiscal year for the corresponding program. 228.12 Sec. 12. Minnesota Statutes 1996, section 256.019, is 228.13 amended to read: 228.14 256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 228.15 When an amount is recovered from any source for assistance 228.16 given under the provisions governing public assistance programs 228.17 including aid to families with dependent children, Minnesota 228.18 family investment program-statewide, emergency assistance, 228.19 general assistance,work readiness,and Minnesota supplemental 228.20 aid, there shall be paid to the United States the amount due 228.21 under the terms of the Social Security Act and the balance must 228.22 be paid into the treasury of the state or countyin accordance228.23withaccording to current rates of financial participation; 228.24 except if the recovery is made by a county agency using any 228.25 method other than recoupment, the county may keep one-half of 228.26 the nonfederal share of the recovery. This does not apply to 228.27 recoveries from medical providers or to recoveries begun by the 228.28 department of human services' surveillance and utilization 228.29 review division, state hospital collections unit, and the 228.30 benefit recoveries division or, by the attorney general's 228.31 office, or child support collections. 228.32 Sec. 13. Minnesota Statutes 1996, section 256.031, 228.33 subdivision 5, is amended to read: 228.34 Subd. 5. [FEDERAL WAIVERS.]In accordance withAccording 228.35 to sections 256.031 to 256.0361 and federal laws authorizing the 228.36 program, the commissioner shall seek waivers of federal 229.1 requirements of: United States Code, title 42, section 601 et 229.2 seq., and United States Code, title 7, section 2011 et seq., 229.3 needed to implement the Minnesota family investment plan in a 229.4 manner consistent with the goals and objectives of the program. 229.5 The commissioner shall seek terms from the federal government 229.6 that are consistent with the goals of the Minnesota family 229.7 investment plan. The commissioner shall also seek terms from 229.8 the federal government that will maximize federal financial 229.9 participation so that the extra costs to the state of 229.10 implementing the program are minimized, to the extent that those 229.11 terms are consistent with the goals of the Minnesota family 229.12 investment plan. An agreement with the federal government under 229.13 this section shall provide that the agreements may be canceled 229.14 by the state or federal government upon 180 days' notice or 229.15 immediately upon mutual agreement. If the agreement is 229.16 canceled, families which cease receiving assistance under the 229.17 Minnesota family investment plan who are eligible for the aid to 229.18 families with dependent children, Minnesota family investment 229.19 program-statewide, general assistance, medical assistance, 229.20 general assistance medical care, or the food stamp program must 229.21 be placed with their consent on the programs for which they are 229.22 eligible. 229.23 Sec. 14. Minnesota Statutes 1996, section 256.046, 229.24 subdivision 1, is amended to read: 229.25 Subdivision 1. [HEARING AUTHORITY.] A local agency may 229.26 initiate an administrative fraud disqualification hearing for 229.27 individuals accused of wrongfully obtaining assistance or 229.28 intentional program violations in the aid to families with 229.29 dependent children, Minnesota family investment 229.30 program-statewide or food stamp programs. The hearing is 229.31 subject to the requirements of section 256.045 and the 229.32 requirements in Code of Federal Regulations, title 7, section 229.33 273.16, for the food stamp program and title 45, section 229.34 235.112, for the aid to families with dependent children program. 229.35 Sec. 15. Minnesota Statutes 1996, section 256.935, 229.36 subdivision 1, is amended to read: 230.1 Subdivision 1. On the death of any person receiving public 230.2 assistance through aid to dependent children or MFIP-S, the 230.3 county agency shall pay an amount for funeral expenses not 230.4 exceeding the amount paid for comparable services under section 230.5 261.035 plus actual cemetery charges. No funeral expenses shall 230.6 be paid if the estate of the deceased is sufficient to pay such 230.7 expenses or if the spouse, who was legally responsible for the 230.8 support of the deceased while living, is able to pay such 230.9 expenses; provided, that the additional payment or donation of 230.10 the cost of cemetery lot, interment, religious service, or for 230.11 the transportation of the body into or out of the community in 230.12 which the deceased resided, shall not limit payment by the 230.13 county agency as herein authorized. Freedom of choice in the 230.14 selection of a funeral director shall be granted to persons 230.15 lawfully authorized to make arrangements for the burial of any 230.16 such deceased recipient. In determining the sufficiency of such 230.17 estate, due regard shall be had for the nature and marketability 230.18 of the assets of the estate. The county agency may grant 230.19 funeral expenses where the sale would cause undue loss to the 230.20 estate. Any amount paid for funeral expenses shall be a prior 230.21 claim against the estate, as provided in section 524.3-805, and 230.22 any amount recovered shall be reimbursed to the agency which 230.23 paid the expenses. The commissioner shall specify requirements 230.24 for reports, including fiscal reports, according to section 230.25 256.01, subdivision 2, paragraph (17). The state share of 230.26 county agency expenditures shall be 50 percent and the county 230.27 share shall be 50 percent. Benefits shall be issued to 230.28 recipients by the state or county and funded according to 230.29 section 256.025, subdivision 3, subject to provisions of section 230.30 256.017. 230.31 Beginning July 1, 1991, the state will reimburse counties 230.32 according to the payment schedule set forth in section 256.025 230.33 for the county share of county agency expenditures made under 230.34 this subdivision from January 1, 1991, on. Payment under this 230.35 subdivision is subject to the provisions of section 256.017. 230.36 Sec. 16. Minnesota Statutes 1996, section 256.98, 231.1 subdivision 8, is amended to read: 231.2 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 231.3 to be guilty of wrongfully obtaining assistance by a federal or 231.4 state court or by an administrative hearing determination, or 231.5 waiver thereof, through a disqualification consent agreement, or 231.6 as part of any approved diversion plan under section 401.065 in 231.7 the aid to families with dependent children, Minnesota family 231.8 investment program-statewide program, the food stamp program, 231.9 the Minnesota family investment plan, the general assistance or 231.10 family general assistance program, or the Minnesota supplemental 231.11 aid program, or the work readiness programshall be disqualified 231.12 from that program. The needs of that individual shall not be 231.13 taken into consideration in determining the grant level for that 231.14 assistance unit: 231.15 (1) for six months after the first offense; 231.16 (2) for 12 months after the second offense; and 231.17 (3) permanently after the third or subsequent offense. 231.18 The period of program disqualification shall begin on the 231.19 date stipulated on the advance notice of disqualification 231.20 without possibility of postponement for administrative stay or 231.21 administrative hearing and shall continue through completion 231.22 unless and until the findings upon which the sanctions were 231.23 imposed are reversed by a court of competent jurisdiction. The 231.24 period for which sanctions are imposed is not subject to 231.25 review. The sanctions provided under this subdivision are in 231.26 addition to, and not in substitution for, any other sanctions 231.27 that may be provided for by law for the offense involved. A 231.28 disqualification established through hearing or waiver shall 231.29 result in the disqualification period beginning immediately 231.30 unless the person has become otherwise ineligible for 231.31 assistance. If the person is ineligible for assistance, the 231.32 disqualification period begins when the person again meets the 231.33 eligibility criteria of the program from which they were 231.34 disqualified. 231.35 Sec. 17. Minnesota Statutes 1996, section 256.981, is 231.36 amended to read: 232.1 256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 232.2 The commissioner of human services shall, to the extent an 232.3 appropriation is provided for this purpose, contract with the 232.4 county attorney's council or other public or private entity 232.5 experienced in providing training for prosecutors to conduct 232.6 quarterly workshops and seminars focusing on current aid to 232.7 families with dependent children and Minnesota family investment 232.8 program-statewide program issues, other income maintenance 232.9 program changes, recovery issues, alternative sentencing 232.10 methods, use of technical aids for interviews and 232.11 interrogations, and other matters affecting prosecution of 232.12 welfare fraud cases. 232.13 Sec. 18. Minnesota Statutes 1996, section 256.983, 232.14 subdivision 1, is amended to read: 232.15 Subdivision 1. [PROGRAMS ESTABLISHED.] Within the limits 232.16 of available appropriations, and to the extent required or 232.17 authorized by applicable federal regulations, the commissioner 232.18 of human services shall require the establishment of fraud 232.19 prevention investigation programs in the seven counties 232.20 participating in the fraud prevention investigation pilot 232.21 project established under this section, and in 11 additional 232.22 Minnesota counties with the largest aid to families with 232.23 dependent children program caseloads as of July 1, 1991. If 232.24 funds are sufficient, the commissioner may also extend fraud 232.25 prevention investigation programs to: (1) other counties that 232.26 have welfare fraud control programs already in place based on 232.27 enhanced funding contracts covering the fraud investigation 232.28 function;and(2) counties that have the largest AFDC caseloads 232.29 as of July 1, 1994, and are not currently participating in the 232.30 fraud prevention investigation pilot project; and (3) counties 232.31 with the largest MFIP-S caseloads as of July 1 of years after 232.32 1997, that are not currently participating in the fraud 232.33 prevention investigation program. The pilot project may be 232.34 expanded provided the expansion is budget neutral to the state. 232.35 Sec. 19. Minnesota Statutes 1996, section 256.983, 232.36 subdivision 4, is amended to read: 233.1 Subd. 4. [FUNDING.] (a) Every involved county agency shall 233.2 either have in place or obtain an approved contract which meets 233.3 all federal requirements necessary to obtain enhanced federal 233.4 funding for its welfare fraud control and fraud prevention 233.5 investigation programs. County agency reimbursement shall be 233.6 made through the settlement provisions applicable to the aid to 233.7 families with dependent children, Minnesota family investment 233.8 program-statewide and food stamp programs. 233.9 (b) After allowing an opportunity to establish compliance, 233.10 the commissioner will deny administrative reimbursement if for 233.11 any three-month period during any grant year, a county agency 233.12 fails to comply with fraud investigation guidelines, or fails to 233.13 meet the cost-effectiveness standards developed by the 233.14 commissioner. This result is contingent on the commissioner 233.15 providing written notice, including an offer of technical 233.16 assistance, within 30 days of the end of the third or subsequent 233.17 month of noncompliance. The county agency shall be required to 233.18 submit a corrective action plan to the commissioner within 30 233.19 days of receipt of a notice of noncompliance. Failure to submit 233.20 a corrective action plan or, continued deviation from standards 233.21 of more than ten percent after submission of a corrective action 233.22 plan, will result in denial of funding for each subsequent month 233.23 during the grant year or billing the county agency for fraud 233.24 prevention investigation (FPI) service provided by the 233.25 commissioner. The denial of funding shall apply to the general 233.26 settlement received by the county agency on a quarterly basis 233.27 and shall not reduce the grant amount applicable to the FPI 233.28 project. 233.29 Sec. 20. Minnesota Statutes 1996, section 256.9850, is 233.30 amended to read: 233.31 256.9850 [IDENTITY VERIFICATION.] 233.32 The commissioner of human services shall seek from the 233.33 Secretary of Health and Human Services all necessary waivers of 233.34 the requirements of the program of AFDC or Minnesota family 233.35 investment program-statewide, to enable the commissioner to 233.36 establish a statewide program to test the effectiveness of 234.1 identity verification systems in the electronic benefit transfer 234.2 systems in the state AFDC program or Minnesota family investment 234.3 program-statewide. Identity verification provisions shall be 234.4 added to the statewide requests for proposal on the expansion of 234.5 electronic benefit transfer systems in the AFDC program or 234.6 Minnesota family investment program-statewide. 234.7 Sec. 21. Minnesota Statutes 1996, section 256.9861, 234.8 subdivision 5, is amended to read: 234.9 Subd. 5. [FUNDING.] (a) Grant funds are intended to help 234.10 offset the reduction in federal financial participation to 50 234.11 percent and may be apportioned to the participating counties 234.12 whenever feasible, and within the commissioner's discretion, to 234.13 achieve this goal. State funding shall be made available 234.14 contingent on counties submitting a plan that is approved by the 234.15 department of human services. Failure or delay in obtaining 234.16 that approval shall not, however, eliminate the obligation to 234.17 maintain fraud control efforts at the January 1, 1995, level. 234.18 Additional counties may be added to the project to the extent 234.19 that funds are subsequently made available. Every involved 234.20 county must meet all federal requirements necessary to obtain 234.21 federal funding for its welfare fraud control and prevention 234.22 programs. County agency reimbursement shall be made through the 234.23 settlement provisions applicable to the AFDC, Minnesota family 234.24 investment program-statewide and food stamp programs. 234.25 (b) Should a county agency fail to comply with the 234.26 standards set, or fail to meet cost-effectiveness standards 234.27 developed by the commissioner for three months during any grant 234.28 year, the commissioner shall deny reimbursement or 234.29 administrative costs, after allowing an opportunity to establish 234.30 compliance. 234.31 (c) Any denial of reimbursement under paragraph (b) is 234.32 contingent on the commissioner providing written notice, 234.33 including an offer of technical assistance, within 30 days of 234.34 the end of the third or subsequent months of noncompliance. The 234.35 county agency shall be required to submit a corrective action 234.36 plan to the commissioner within 30 days of receipt of a notice 235.1 of noncompliance. Failure to submit a corrective action plan or 235.2 continued deviation from standards of more than ten percent 235.3 after submission of corrective action plan, will result in 235.4 denial of funding for each such month during the grant year, or 235.5 billing the county agency for program integrity reinvestment 235.6 project services provided by the commissioner. The denial of 235.7 funding shall apply to the general settlement received by the 235.8 county agency on a quarterly basis and shall not reduce the 235.9 grant amount applicable to the program integrity reinvestment 235.10 project. 235.11 Sec. 22. Minnesota Statutes 1996, section 256E.03, 235.12 subdivision 2, is amended to read: 235.13 Subd. 2. (a) "Community social services" means services 235.14 provided or arranged for by county boards to fulfill the 235.15 responsibilities prescribed in section 256E.08, subdivision 1, 235.16 to the following groups of persons: 235.17 (1) families with children under age 18, who are 235.18 experiencing child dependency, neglect or abuse, and also 235.19 pregnant adolescents, adolescent parents under the age of 18, 235.20 and their children; 235.21 (2) persons who are under the guardianship of the 235.22 commissioner of human services as dependent and neglected wards; 235.23 (3) adults who are in need of protection and vulnerable as 235.24 defined in section 626.5572; 235.25 (4) persons age 60 and over who are experiencing difficulty 235.26 living independently and are unable to provide for their own 235.27 needs; 235.28 (5) emotionally disturbed children and adolescents, 235.29 chronically and acutely mentally ill persons who are unable to 235.30 provide for their own needs or to independently engage in 235.31 ordinary community activities; 235.32 (6) persons with mental retardation as defined in section 235.33 252A.02, subdivision 2, or with related conditions as defined in 235.34 section 252.27, subdivision 1a, who are unable to provide for 235.35 their own needs or to independently engage in ordinary community 235.36 activities; 236.1 (7) drug dependent and intoxicated persons as defined in 236.2 section 254A.02, subdivisions 5 and 7, and persons at risk of 236.3 harm to self or others due to the ingestion of alcohol or other 236.4 drugs; 236.5 (8) parents whose income is at or below 70 percent of the 236.6 state median income and who are in need of child care services 236.7 in order to secure or retain employment or to obtain the 236.8 training or education necessary to secure employment; and 236.9 (9) other groups of persons who, in the judgment of the 236.10 county board, are in need of social services. 236.11 (b) Except as provided in section 256E.08, subdivision 5, 236.12 community social services do not include public assistance 236.13 programs known as aid to families with dependent children, 236.14 Minnesota family investment program-statewide, Minnesota 236.15 supplemental aid, medical assistance, general assistance, 236.16 general assistance medical care, or community health services 236.17 authorized by sections 145A.09 to 145A.13. 236.18 Sec. 23. Minnesota Statutes 1996, section 256E.06, 236.19 subdivision 1, is amended to read: 236.20 Subdivision 1. [FORMULA.] The commissioner of human 236.21 services shall distribute community social service aids to each 236.22 county board in an amount determined according to the following 236.23 formula: 236.24 In calendar year 1982 and thereafter: 236.25 (a) One-third shall be distributed on the basis of the 236.26 average unduplicated number of persons who receive AFDC, 236.27 Minnesota family investment program-statewide, general 236.28 assistance, and medical assistance per month in the calendar 236.29 year two years prior to the year for which funds are being 236.30 distributed as reported in the average monthly caseload reports 236.31 required under sections 256.01, 256B.04 and 256D.04, and 236.32 certified by the commissioner of human services; and 236.33 (b) One-third shall be distributed on the basis of the 236.34 number of persons residing in the county as determined by the 236.35 most recent data of the state demographer; 236.36 (c) One-third shall be distributed on the basis of the 237.1 number of persons residing in the county who are 65 years old or 237.2 older as determined by the most recent data of the state 237.3 demographer. 237.4 Sec. 24. Minnesota Statutes 1996, section 256E.06, 237.5 subdivision 3, is amended to read: 237.6 Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human 237.7 services shall make payments for community social services to 237.8 each county in four installments per year. The commissioner of 237.9 human services may certify the payments for the first three 237.10 months of a calendar year based on estimates of the unduplicated 237.11 number of persons receiving AFDC, Minnesota family investment 237.12 program-statewide, general assistance and medical assistance for 237.13 the prior year. The following three payments shall be adjusted 237.14 to reflect the actual unduplicated number of persons who 237.15 received AFDC, Minnesota family investment program-statewide, 237.16 general assistance and medical assistance as required by 237.17 subdivision 1. The commissioner shall ensure that the pertinent 237.18 payment of the allotment for that quarter is made to each county 237.19 on the first working day after the end of each quarter of the 237.20 calendar year, except for the last quarter of the calendar 237.21 year. The commissioner shall ensure that each county receives 237.22 its payment of the allotment for that quarter no later than the 237.23 last working day of that quarter. This scheduling of payments 237.24 does not require compliance with subdivision 10. 237.25 Sec. 25. Minnesota Statutes 1996, section 256E.07, 237.26 subdivision 1, is amended to read: 237.27 Subdivision 1. [FORMULA.] In federal fiscal year 1985 and 237.28 subsequent years, money for social services that is received 237.29 from the federal government to reimburse counties for social 237.30 service expenditurespursuantaccording to title XX of the 237.31 Social Security Act shall be allocated to each county according 237.32 to the following formula: 237.33 (a) Two-thirds shall be allocated on the basis of the 237.34 annual average number of unduplicated active monthly caseloads 237.35 in each county in the following programs: aid to families with 237.36 dependent children, Minnesota family investment 238.1 program-statewide, medical assistance, general assistance, 238.2 supplementary security income, and Minnesota supplemental aid. 238.3 (b) One-third shall be allocated on the basis of the number 238.4 of persons residing in the county as determined by the most 238.5 recent estimate of the state demographer. 238.6 (c) The commissioner shall allocate to the counties 238.7pursuantaccording to this section the total money received from 238.8 the federal government for social servicespursuantaccording to 238.9 title XX of the Social Security Act, except that portion of the 238.10 state's allocation which the legislature authorizes for 238.11 administrative purposes and for migrant day care. 238.12 Sec. 26. Minnesota Statutes 1996, section 256E.08, 238.13 subdivision 3, is amended to read: 238.14 Subd. 3. [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 238.15 The county board may designate itself, a human services board, 238.16 or a local social services agency to perform the functions of 238.17 local social services agencies as prescribed in chapter 393 and 238.18 assigned to county agencies in other law which pertains to the 238.19 administration of income maintenance programs known as aid to 238.20 families with dependent children, Minnesota family investment 238.21 program-statewide, general assistance, Minnesota supplemental 238.22 aid, medical assistance, general assistance medical care, and 238.23 emergency assistance. 238.24 Sec. 27. Minnesota Statutes 1996, section 256F.05, 238.25 subdivision 5, is amended to read: 238.26 Subd. 5. [INAPPROPRIATE EXPENDITURES.] Family preservation 238.27 fund basic, placement earnings, and development grant money must 238.28 not be used for: 238.29 (1) child day care necessary solely because of the 238.30 employment or training to prepare for employment, of a parent or 238.31 other relative with whom the child is living; 238.32 (2) residential facility payments; 238.33 (3) adoption assistance payments; 238.34 (4) public assistance payments for aid to families with 238.35 dependent children, Minnesota family investment 238.36 program-statewide, supplemental aid, medical assistance, general 239.1 assistance, general assistance medical care, or community health 239.2 services authorized by sections 145A.09 to 145A.13; or 239.3 (5) administrative costs for local social services agency 239.4 public assistance staff. 239.5 Sec. 28. Minnesota Statutes 1996, section 256G.01, 239.6 subdivision 4, is amended to read: 239.7 Subd. 4. [ADDITIONAL COVERAGE.] The provisions in sections 239.8 256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 239.9 subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 239.10 subdivisions 1 to 3, apply to the following programs: aid to 239.11 families with dependent children, Minnesota family investment 239.12 program-statewide; medical assistance; general assistance; 239.13 family general assistance; general assistance medical care; and 239.14 Minnesota supplemental aid. 239.15 Sec. 29. Minnesota Statutes 1996, section 257.3573, 239.16 subdivision 2, is amended to read: 239.17 Subd. 2. [INAPPROPRIATE EXPENDITURES.] Indian child 239.18 welfare grant money must not be used for: 239.19 (1) child day care necessary solely because of employment 239.20 or training for employment of a parent or other relative with 239.21 whom the child is living; 239.22 (2) foster care maintenance or difficulty of care payments; 239.23 (3) residential facility payments; 239.24 (4) adoption assistance payments; 239.25 (5) public assistance payments for aid to families with 239.26 dependent children, Minnesota family investment 239.27 program-statewide, supplemental aid, medical assistance, general 239.28 assistance, general assistance medical care, or community health 239.29 services authorized by sections 145A.01 to 145A.14; or 239.30 (6) administrative costs for income maintenance staff. 239.31 Sec. 30. Minnesota Statutes 1996, section 260.38, is 239.32 amended to read: 239.33 260.38 [COST, PAYMENT.] 239.34 In addition to the usual care and services given by public 239.35 and private agencies, the necessary cost incurred by the 239.36 commissioner of human services in providing care for such child 240.1 shall be paid by the county committing such child which, subject 240.2 to uniform rules established by the commissioner of human 240.3 services, may receive a reimbursement not exceeding one-half of 240.4 such costs from funds made available for this purpose by the 240.5 legislature during the period beginning July 1, 1985, and ending 240.6 December 31, 1985. Beginning January 1, 1986, the necessary 240.7 cost incurred by the commissioner of human services in providing 240.8 care for the child must be paid by the county committing the 240.9 child. Where such child is eligible to receive a grant of aid 240.10 to families with dependent children, Minnesota family investment 240.11 program-statewide or supplemental security income for the aged, 240.12 blind, and disabled, or a foster care maintenance payment under 240.13 Title IV-E of the Social Security Act, United States Code, title 240.14 42, sections 670 to 676, the child's needs shall be met through 240.15 these programs. 240.16 Sec. 31. Minnesota Statutes 1996, section 268.0111, 240.17 subdivision 5, is amended to read: 240.18 Subd. 5. [INCOME MAINTENANCE AND SUPPORT SERVICES.] 240.19 "Income maintenance and support services" means programs through 240.20 which the state or its subdivisions provide direct financial or 240.21 in-kind support to unemployed or underemployed persons, 240.22 including reemployment insurance, aid to families with dependent 240.23 children, Minnesota family investment program-statewide, general 240.24 assistance,work readiness assistance,food stamps, energy 240.25 assistance, disability determinations, and child care. Income 240.26 maintenance and support services do not include medical 240.27 assistance, aging services, social services, community social 240.28 services, mental health services, or services for the 240.29 emotionally disturbed, the mentally retarded, or residents of 240.30 nursing homes. 240.31 Sec. 32. Minnesota Statutes 1996, section 268.0111, 240.32 subdivision 7, is amended to read: 240.33 Subd. 7. [PUBLIC ASSISTANCE.] "Public assistance" means 240.34 aid to families with dependent children, Minnesota family 240.35 investment program-statewide and general assistance, and work240.36readiness. 241.1 Sec. 33. Minnesota Statutes 1996, section 268.0122, 241.2 subdivision 3, is amended to read: 241.3 Subd. 3. [DUTIES AS A STATE AGENCY.] The commissioner 241.4 shall: 241.5 (1) administer the unemployment insurance laws and related 241.6 programs; 241.7 (2) administer the aspects of aid to families with 241.8 dependent children, Minnesota family investment 241.9 program-statewide, general assistance,work readiness,and food 241.10 stamps that relate to employment and training services, subject 241.11 to the contract under section 268.86, subdivision 2; 241.12 (3) administer wage subsidies and the discretionary 241.13 employment and training fund; 241.14 (4) administer a national system of public employment 241.15 offices as prescribed by United States Code, title 29, chapter 241.16 4B, the Wagner-Peyser Act, and other federal employment and 241.17 training programs; 241.18 (5) cooperate with the federal government and its 241.19 employment and training agencies in any reasonable manner as 241.20 necessary to qualify for federal aid for employment and training 241.21 services and money; 241.22 (6) enter into agreements with other departments of the 241.23 state and local units of government as necessary; 241.24 (7) certify employment and training service providers and 241.25 decertify service providers that fail to comply with performance 241.26 criteria according to standards established by the commissioner; 241.27 (8) provide consistent, integrated employment and training 241.28 services across the state; 241.29 (9) establish the standards for all employment and training 241.30 services administered under this chapter; 241.31 (10) develop standards for the contents and structure of 241.32 the local service unit plans and plans for Indian tribe 241.33 employment and training services; 241.34 (11) provide current state and substate labor market 241.35 information and forecasts, in cooperation with other agencies; 241.36 (12) identify underserved populations, unmet service needs, 242.1 and funding requirements; 242.2 (13) consult with the council for the blind on matters 242.3 pertaining to programs and services for the blind and visually 242.4 impaired; and 242.5 (14) enter into agreements with Indian tribes as necessary 242.6 to provide employment and training services as funds become 242.7 available. 242.8 Sec. 34. Minnesota Statutes 1996, section 268.552, 242.9 subdivision 5, is amended to read: 242.10 Subd. 5. [ALLOCATION TO APPLICANTS.] Priority for 242.11 subsidies shall be in the following order: 242.12 (1) applicants living in households with no other income 242.13 source; 242.14 (2) applicants whose incomes and resources are less than 242.15 the standard for eligibility for general assistanceor work242.16readiness; and 242.17 (3) applicants who are eligible for aid to families with 242.18 dependent children or Minnesota family investment 242.19 program-statewide. 242.20 Sec. 35. Minnesota Statutes 1996, section 268.6751, 242.21 subdivision 1, is amended to read: 242.22 Subdivision 1. [WAGE SUBSIDIES.] Wage subsidy money must 242.23 be allocated to local service units in the following manner: 242.24 (a) The commissioner shall allocate 87.5 percent of the 242.25 funds available for allocation to local service units for wage 242.26 subsidy programs as follows: the proportion of the wage subsidy 242.27 money available to each local service unit must be based on the 242.28 number of unemployed persons in the local service unit for the 242.29 most recent six-month period and the number ofwork readiness242.30assistance cases andaid to families with dependent children and 242.31 Minnesota family investment program-statewide cases in the local 242.32 service unit for the most recent six-month period. 242.33 (b) Five percent of the money available for wage subsidy 242.34 programs must be allocated at the discretion of the commissioner. 242.35 (c) Seven and one-half percent of the money available for 242.36 wage subsidy programs must be allocated at the discretion of the 243.1 commissioner to provide jobs for residents of federally 243.2 recognized Indian reservations. 243.3 (d) By December 31 of each fiscal year, providers and local 243.4 service units receiving wage subsidy money shall report to the 243.5 commissioner on the use of allocated funds. The commissioner 243.6 shall reallocate uncommitted funds for each fiscal year 243.7 according to the formula in paragraph (a). 243.8 Sec. 36. Minnesota Statutes 1996, section 268.676, 243.9 subdivision 1, is amended to read: 243.10 Subdivision 1. [AMONG JOB APPLICANTS.] At least 80 percent 243.11 of funds allocated among eligible job applicants statewide must 243.12 be allocated to: 243.13 (1) applicants living in households with no other income 243.14 source; 243.15 (2) applicants whose incomes and resources are less than 243.16 the standards for eligibility for general assistanceor work243.17readiness; 243.18 (3) applicants who are eligible for aid to families with 243.19 dependent children or Minnesota family investment 243.20 program-statewide; and 243.21 (4) applicants who live in a farm household who demonstrate 243.22 severe household financial need. 243.23 Sec. 37. Minnesota Statutes 1996, section 268.86, 243.24 subdivision 2, is amended to read: 243.25 Subd. 2. [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 243.26 commissioner and the commissioner of human services shall enter 243.27 into a written contract for the design, delivery, and 243.28 administration of employment and training services for 243.29 applicants for or recipients of food stampsor, aid to families 243.30 with dependent childrenand work readinessor Minnesota family 243.31 investment program-statewide, including AFDC and MFIP-S 243.32 employment and training programs,and general assistanceor work243.33readiness grant diversion. The contract must address: 243.34 (1) specific roles and responsibilities of each department; 243.35 (2) assignment and supervision of staff for interagency 243.36 activities including any necessary interagency employee mobility 244.1 agreements under the administrative procedures of the department 244.2 of employee relations; 244.3 (3) mechanisms for determining the conditions under which 244.4 individuals participate in services, their rights and 244.5 responsibilities while participating, and the standards by which 244.6 the services must be administered; 244.7 (4) procedures for providing technical assistance to local 244.8 service units, Indian tribes, and employment and training 244.9 service providers; 244.10 (5) access to appropriate staff for ongoing development and 244.11 interpretation of policy, rules, and program standards; 244.12 (6) procedures for reimbursing appropriate agencies for 244.13 administrative expenses; and 244.14 (7) procedures for accessing available federal funds. 244.15 Sec. 38. Minnesota Statutes 1996, section 268.871, 244.16 subdivision 1, is amended to read: 244.17 Subdivision 1. [RESPONSIBILITY AND CERTIFICATION.] (a) 244.18 Unless prohibited by federal law or otherwise determined by 244.19 state law, a local service unit is responsible for the delivery 244.20 of employment and training services. After February 1, 1988, 244.21 employment and training services must be delivered by certified 244.22 employment and training service providers. 244.23 (b) The local service unit's employment and training 244.24 service provider must meet the certification standards in this 244.25 subdivision in order to be certified to deliver any of the 244.26 following employment and training services and programs: wage 244.27 subsidies;work readiness; work readiness andgeneral assistance 244.28 grant diversion; food stamp employment and training programs; 244.29 community work experience programs; AFDC or MFIP-S job search; 244.30 AFDC or MFIP-S grant diversion; AFDC or MFIP-S on-the-job 244.31 training; and AFDC or MFIP-S case management. 244.32 (c) The commissioner shall certify a local service unit's 244.33 service provider to provide these employment and training 244.34 services and programs if the commissioner determines that the 244.35 provider has: 244.36 (1) past experience in direct delivery of the programs 245.1 specified in paragraph (b); 245.2 (2) staff capabilities and qualifications, including 245.3 adequate staff to provide timely and effective services to 245.4 clients, and proven staff experience in providing specific 245.5 services such as assessments, career planning, job development, 245.6 job placement, support services, and knowledge of community 245.7 services and educational resources; 245.8 (3) demonstrated effectiveness in providing services to 245.9 public assistance recipients and other economically 245.10 disadvantaged clients; and 245.11 (4) demonstrated administrative capabilities, including 245.12 adequate fiscal and accounting procedures, financial management 245.13 systems, participant data systems, and record retention 245.14 procedures. 245.15 (d) When the only service provider that meets the criterion 245.16 in paragraph (c), clause (1), has been decertified,pursuant245.17 according to subdivision 1a, in that local service unit, the 245.18 following criteria shall be substituted: past experience in 245.19 direct delivery of multiple, coordinated, nonduplicative 245.20 services, including outreach, assessments, identification of 245.21 client barriers, employability development plans, and provision 245.22 or referral to support services. 245.23 (e) The commissioner shall certify providers of the 245.24 Minnesota family investment plan case management services as 245.25 defined in section 256.032, subdivision 3. Providers must meet 245.26 the standards defined in paragraph (c), except that past 245.27 experience under paragraph (c), clause (1), must be in services 245.28 and programs similar to those specified in section 256.032, 245.29 subdivision 3. 245.30 Employment and training service providers shall be 245.31 certified by the commissioner for two fiscal years beginning 245.32 July 1, 1991, and every second year thereafter. 245.33 Sec. 39. Minnesota Statutes 1996, section 268.90, 245.34 subdivision 2, is amended to read: 245.35 Subd. 2. [EMPLOYMENT CONDITIONS.] (a) An eligible 245.36 nonprofit or public employer may not terminate, lay off, or 246.1 reduce the regular working hours of an employee for the purpose 246.2 of hiring an individual with money available under this 246.3 program. An eligible employer may not hire an individual with 246.4 money available through this program if any other person is on 246.5 layoff from the same or a substantially equivalent job. 246.6 (b) Community investment program participants are employees 246.7 of the project employer within the meaning of workers' 246.8 compensation laws, personal income tax, and the federal 246.9 insurance contribution act, but not retirement or civil service 246.10 laws. 246.11 (c) Each project and job must comply with all applicable 246.12 affirmative action, fair labor, health, safety, and 246.13 environmental standards. 246.14 (d) Individuals employed under the community investment 246.15 program must be paid a wage at the same wage rates as work site 246.16 or employees doing comparable work in that locality, unless 246.17 otherwise specified in law. 246.18 (e) Recipients of aid to families with dependent 246.19 children or Minnesota family investment program-statewide who 246.20 are eligible on the basis of an unemployed parent may not have 246.21 available more than 100 hours a month. All employees are 246.22 limited to 32 hours or four days a week, so that they can 246.23 continue to seek full-time private sector employment, unless 246.24 otherwise specified in law. 246.25 (f) The commissioner shall establish, by rule, the terms 246.26 and conditions governing the participation of appropriate public 246.27 assistance recipients. The rules must, at a minimum, establish 246.28 the procedures by which the minimum and maximum number of work 246.29 hours and maximum allowable travel distances are determined, the 246.30 amounts and methods by which work expenses will be paid, and the 246.31 manner in which support services will be provided. The rules 246.32 must also provide for periodic reviews of clients continuing 246.33 employment in community investment programs. 246.34 (g) Participation in a community investment program by a 246.35 recipient of aid to families with dependent children, Minnesota 246.36 family investment program-statewide or general assistance is 247.1 voluntary; however, work readiness registrants may be required247.2to participate. 247.3 Sec. 40. Minnesota Statutes 1996, section 268.916, is 247.4 amended to read: 247.5 268.916 [REPORTS.] 247.6 Each grantee shall submit an annual report to the 247.7 commissioner on the format designated by the commissioner, 247.8 including program information report data. By January 1 of each 247.9 year, the commissioner shall prepare an annual report to the 247.10 health and human services committee of the house of 247.11 representatives and the family services committee of the senate 247.12 concerning the uses and impact of head start supplemental 247.13 funding, including a summary of innovative programs and the 247.14 results of innovative programs and an evaluation of the 247.15 coordination of head start programs with employment and training 247.16 services provided to AFDC and MFIP-S recipients. 247.17 Sec. 41. Minnesota Statutes 1996, section 268.95, 247.18 subdivision 4, is amended to read: 247.19 Subd. 4. [PILOT PROGRAM.] The commissioner shall develop a 247.20 pilot program, in cooperation with the commissioners of trade 247.21 and economic development and human services, to enable 247.22 low-income persons to start or expand self-employment 247.23 opportunities or home-based businesses that are designed to make 247.24 the individual entrepreneurs economically independent. The 247.25 commissioner of human services shall seek necessary waivers from 247.26 federal regulations to allow recipients of aid to families with 247.27 dependent children or Minnesota family investment 247.28 program-statewide to participate and retain eligibility while 247.29 establishing a business. 247.30 Sec. 42. Minnesota Statutes 1996, section 393.07, 247.31 subdivision 6, is amended to read: 247.32 Subd. 6. [PURCHASE OF EQUIPMENT TO AID WELFARE 247.33 RECIPIENTS.] Every local social services agency authorizing 247.34 braces, crutches, trusses, wheel chairs and hearing aids for use 247.35 by recipients of supplemental security income for the aged, 247.36 blind and disabled, aid to families with dependent children or 248.1 Minnesota family investment program-statewide and relief shall 248.2 secure such devices at the lowest cost obtainable conducive to 248.3 the well being of the recipient and fix the recipient's grant in 248.4 an amount to cover the cost of the device providing it will be 248.5 purchased at the lowest cost obtainable, or may make payment for 248.6 the device directly to the vendor. 248.7 Sec. 43. Minnesota Statutes 1996, section 477A.0122, 248.8 subdivision 2, is amended to read: 248.9 Subd. 2. [DEFINITIONS.] For purposes of this section, the 248.10 following definitions apply: 248.11 (a) "Children in out-of-home placement" means the total 248.12 unduplicated number of children in out-of-home care as reported 248.13pursuantaccording to section 257.0725. 248.14 (b) "Family preservation programs" means family-based 248.15 services as defined in section 256F.03, subdivision 5, families 248.16 first services, parent and child education programs, and day 248.17 treatment services provided in cooperation with a school 248.18 district or other programs as defined by the commissioner of 248.19 human services. 248.20 (c) "Income maintenance caseload" means average monthly 248.21 number of AFDC or Minnesota family investment program-statewide 248.22 cases for the calendar year. 248.23 By July 1, 1994, the commissioner of human services shall 248.24 certify to the commissioner of revenue the number of children in 248.25 out-of-home placement in 1991 and 1992 for each county and the 248.26 income maintenance caseload for each county for the most recent 248.27 year available. By July 1 of each subsequent year, the 248.28 commissioner of human services shall certify to the commissioner 248.29 of revenue the income maintenance caseload for each county for 248.30 the most recent calendar year available. 248.31 Sec. 44. [REVISOR INSTRUCTION.] 248.32 The revisor of statutes shall identify in Minnesota 248.33 Statutes and Minnesota Rules all references to aid to families 248.34 with dependent children and AFDC, and to Minnesota Statutes, 248.35 section 256.12, or any of the sections of Minnesota Statutes 248.36 from sections 256.72 to 256.87. 249.1 The revisor shall prepare a report by January 1, 1998, for 249.2 the 1998 legislature showing where these references are located. 249.3 Sec. 45. [EFFECTIVE DATE.] 249.4 Sections 1 to 43 are effective July 1, 1997. 249.5 ARTICLE 5 249.6 CORPS TO CAREER PROGRAM 249.7 Section 1. Minnesota Statutes 1996, section 84.0887, 249.8 subdivision 2, is amended to read: 249.9 Subd. 2. [ADDITIONAL SERVICES; CORPS TO CAREER COMMUNITY 249.10 SERVICE.] (a) In addition to services under subdivision 1, youth 249.11 corps programs may coordinate with or provide services to: 249.12 (1) making public facilities accessible to individuals with 249.13 disabilities; 249.14 (2) federal, state, local, and regional governmental 249.15 agencies; 249.16 (3) nursing homes, hospices, senior centers, hospitals, 249.17 local libraries, parks, recreational facilities, child and adult 249.18 day care centers, programs servicing individuals with 249.19 disabilities, and schools; 249.20 (4) law enforcement agencies, and penal and probation 249.21 systems; 249.22 (5) private nonprofit organizations that primarily focus on 249.23 social service such as community action agencies; 249.24 (6) activities that focus on the rehabilitation or 249.25 improvement of public facilities, neighborhood improvements, 249.26 literacy training that benefits educationally disadvantaged 249.27 individuals, weatherization of and basic repairs to low-income 249.28 housing including housing occupied by older adults, activities 249.29 that focus on drug and alcohol abuse education, prevention, and 249.30 treatment; and 249.31 (7) any other nonpartisan civic activities and services 249.32 that the commissioner determines to be of a substantial social 249.33 benefit in meeting unmet human, educational, or environmental 249.34 needs, particularly needs related to poverty, or in the 249.35 community where volunteer service is to be performed. 249.36 (b) Youth and young adults may provide full-time or 250.1 part-time youth community service in a program known as "corps 250.2 to career" if the individual: 250.3 (1) is an unemployed high school dropout and is a parent of 250.4 a minor member of an assistance unit under the AFDC, MFIP, or 250.5 MFIP-R programs under chapter 256, or under the MFIP-S program 250.6 under chapter 256J, or is a person who is a member of an 250.7 assistance unit under the AFDC, MFIP, or MFIP-R programs under 250.8 chapter 256, or under the MFIP-S program under chapter 256J; 250.9 (2) agrees to only use the individual's postservice benefit 250.10 under the federal Americorps Act to complete a customized job 250.11 training program that requires 20 percent of the individual's 250.12 time to be spent in the corps to career program and that is 250.13 consistent with the work requirements of the employment and 250.14 training services component of the MFIP-S program under chapter 250.15 256J or, if a customized job training program is unavailable, 250.16 agrees to use the postservice benefit consistent with the 250.17 federal education award; and 250.18 (3) during the entire time the individual completes the 250.19 individual's job training program, resides within an enterprise 250.20 zone as defined in section 469.303. 250.21 To be eligible under this paragraph, any individual who 250.22 receives assistance under clause (1) after MFIP-S has been 250.23 implemented in the individual's county of financial 250.24 responsibility, and who meets the requirements in clauses (2) 250.25 and (3), also must meet the requirements of the employment and 250.26 training services component of the MFIP-S program under chapter 250.27 256J. 250.28 (c) The commissioner of the department of natural resources 250.29 shall ensure that the corps to career program will not decrease 250.30 employment opportunities that would be available without the 250.31 program; will not displace current employees including any 250.32 partial displacement in the form of reduced hours of work other 250.33 than overtime, wages, employment benefits, or regular seasonal 250.34 work; will not impair existing labor agreements; and will not 250.35 result in the substitution of project funding for preexisting 250.36 funds or sources of funds for ongoing work. 251.1 Sec. 2. [EFFECTIVE DATE.] 251.2 This article is effective July 1, 1997. 251.3 ARTICLE 6 251.4 CITIZENSHIP PROMOTION 251.5 Section 1. [3.9228] [CITIZENSHIP PROMOTION PROGRAM.] 251.6 Subdivision 1. [CREATION.] The citizenship promotion 251.7 program is created as a statewide program. The purpose of the 251.8 program is to provide assistance to legal immigrants to obtain 251.9 citizenship status. The program consists of public education 251.10 and information, group application workshops, citizenship and 251.11 English for citizenship classes, and video citizenship 251.12 instruction. 251.13 Subd. 2. [PUBLIC EDUCATION AND INFORMATION.] The public 251.14 education program must include the preparation and distribution 251.15 of information about citizenship eligibility requirements, how 251.16 to apply, what testing requirements are, and where citizenship 251.17 assistance can be obtained. Community meetings must be held to 251.18 provide the same information and to respond to questions. 251.19 Subd. 3. [GROUP APPLICATION WORKSHOPS.] Group workshops 251.20 must be held on a periodic basis. The workshops must provide 251.21 individualized advice about applying for citizenship and provide 251.22 an overview of the citizenship process. Participants must be 251.23 screened for English proficiency and, upon request, enrolled in 251.24 citizenship application workshops. 251.25 Subd. 4. [CITIZENSHIP AND ENGLISH CLASSES.] The program 251.26 must support and supplement existing English for citizenship 251.27 classes. Classes must also be supported and offered in native 251.28 languages for those able to take a citizenship test in their 251.29 native language. Tuition may be charged for classes, 251.30 scholarships provided for needy students, interpreters provided, 251.31 and transportation and child care assistance provided for 251.32 hardship applicants. 251.33 Subd. 5. [VIDEO INSTRUCTION.] The program must develop and 251.34 produce a television series to provide citizenship education and 251.35 make available videotapes of the classes. 251.36 Subd. 6. [ADMINISTRATION.] The executive directors of the 252.1 councils on Black Minnesotans, Asian-Pacific Minnesotans, and 252.2 Chicano-Latino affairs shall jointly administer the citizenship 252.3 promotion program. The directors shall jointly hire and 252.4 supervise staff to coordinate the program. The staff shall 252.5 process applications for grants, act as a clearinghouse to 252.6 promote the exchange of information, expertise, and best 252.7 practices among citizenship promotion programs and 252.8 organizations, and develop resources to assist in the operation 252.9 of community-based programs. The staff shall organize an 252.10 advisory committee of representatives of ethnic and geographic 252.11 groups of legal immigrants. 252.12 Subd. 7. [GRANTS.] The directors shall make grants to 252.13 nonprofit organizations and government agencies to operate 252.14 citizenship promotion programs under this section. The staff 252.15 shall consult with the advisory committee about the appropriate 252.16 selection of grantees and about what policies should be adopted 252.17 to ensure that the goals of the citizenship promotion programs 252.18 are attained. In awarding grants, the directors must consider 252.19 the quality of programs operated by proposed applicants, 252.20 including the program's prior success in enabling immigrants to 252.21 become citizens. Grant applicants must identify the measures by 252.22 which their success with the grant funds will be evaluated, 252.23 including the numbers of immigrants who are expected to become 252.24 citizens. In awarding grants, the councils shall ensure 252.25 reasonable access to citizenship programs in all regions of 252.26 Minnesota. 252.27 Sec. 2. [EFFECTIVE DATE.] 252.28 This article is effective the day following final enactment. 252.29 ARTICLE 7 252.30 PROGRAM INTEGRITY INITIATIVES 252.31 Section 1. Minnesota Statutes 1996, section 13.82, 252.32 subdivision 1, is amended to read: 252.33 Subdivision 1. [APPLICATION.] This section shall apply to 252.34 agencies which carry on a law enforcement function, including 252.35 but not limited to municipal police departments, county sheriff 252.36 departments, fire departments, the bureau of criminal 253.1 apprehension, the Minnesota state patrol, the board of peace 253.2 officer standards and training, the department of commerce,and253.3 the department of labor and industry fraud investigation unit, 253.4 and the program integrity section and county human services 253.5 agency client and provider fraud prevention and control units 253.6 operated or supervised by the department of human services. 253.7 Sec. 2. Minnesota Statutes 1996, section 256.01, 253.8 subdivision 2, is amended to read: 253.9 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 253.10 section 241.021, subdivision 2, the commissioner of human 253.11 services shall: 253.12 (1) Administer and supervise all forms of public assistance 253.13 provided for by state law and other welfare activities or 253.14 services as are vested in the commissioner. Administration and 253.15 supervision of human services activities or services includes, 253.16 but is not limited to, assuring timely and accurate distribution 253.17 of benefits, completeness of service, and quality program 253.18 management. In addition to administering and supervising human 253.19 services activities vested by law in the department, the 253.20 commissioner shall have the authority to: 253.21 (a) require county agency participation in training and 253.22 technical assistance programs to promote compliance with 253.23 statutes, rules, federal laws, regulations, and policies 253.24 governing human services; 253.25 (b) monitor, on an ongoing basis, the performance of county 253.26 agencies in the operation and administration of human services, 253.27 enforce compliance with statutes, rules, federal laws, 253.28 regulations, and policies governing welfare services and promote 253.29 excellence of administration and program operation; 253.30 (c) develop a quality control program or other monitoring 253.31 program to review county performance and accuracy of benefit 253.32 determinations; 253.33 (d) require county agencies to make an adjustment to the 253.34 public assistance benefits issued to any individual consistent 253.35 with federal law and regulation and state law and rule and to 253.36 issue or recover benefits as appropriate; 254.1 (e) delay or deny payment of all or part of the state and 254.2 federal share of benefits and administrative reimbursement 254.3 according to the procedures set forth in section 256.017; and 254.4 (f) make contracts with and grants to public and private 254.5 agencies and organizations, both profit and nonprofit, and 254.6 individuals, using appropriated funds. 254.7 (2) Inform county agencies, on a timely basis, of changes 254.8 in statute, rule, federal law, regulation, and policy necessary 254.9 to county agency administration of the programs. 254.10 (3) Administer and supervise all child welfare activities; 254.11 promote the enforcement of laws protecting handicapped, 254.12 dependent, neglected and delinquent children, and children born 254.13 to mothers who were not married to the children's fathers at the 254.14 times of the conception nor at the births of the children; 254.15 license and supervise child-caring and child-placing agencies 254.16 and institutions; supervise the care of children in boarding and 254.17 foster homes or in private institutions; and generally perform 254.18 all functions relating to the field of child welfare now vested 254.19 in the state board of control. 254.20 (4) Administer and supervise all noninstitutional service 254.21 to handicapped persons, including those who are visually 254.22 impaired, hearing impaired, or physically impaired or otherwise 254.23 handicapped. The commissioner may provide and contract for the 254.24 care and treatment of qualified indigent children in facilities 254.25 other than those located and available at state hospitals when 254.26 it is not feasible to provide the service in state hospitals. 254.27 (5) Assist and actively cooperate with other departments, 254.28 agencies and institutions, local, state, and federal, by 254.29 performing services in conformity with the purposes of Laws 254.30 1939, chapter 431. 254.31 (6) Act as the agent of and cooperate with the federal 254.32 government in matters of mutual concern relative to and in 254.33 conformity with the provisions of Laws 1939, chapter 431, 254.34 including the administration of any federal funds granted to the 254.35 state to aid in the performance of any functions of the 254.36 commissioner as specified in Laws 1939, chapter 431, and 255.1 including the promulgation of rules making uniformly available 255.2 medical care benefits to all recipients of public assistance, at 255.3 such times as the federal government increases its participation 255.4 in assistance expenditures for medical care to recipients of 255.5 public assistance, the cost thereof to be borne in the same 255.6 proportion as are grants of aid to said recipients. 255.7 (7) Establish and maintain any administrative units 255.8 reasonably necessary for the performance of administrative 255.9 functions common to all divisions of the department. 255.10 (8) Act as designated guardian of both the estate and the 255.11 person of all the wards of the state of Minnesota, whether by 255.12 operation of law or by an order of court, without any further 255.13 act or proceeding whatever, except as to persons committed as 255.14 mentally retarded. 255.15 (9) Act as coordinating referral and informational center 255.16 on requests for service for newly arrived immigrants coming to 255.17 Minnesota. 255.18 (10) The specific enumeration of powers and duties as 255.19 hereinabove set forth shall in no way be construed to be a 255.20 limitation upon the general transfer of powers herein contained. 255.21 (11) Establish county, regional, or statewide schedules of 255.22 maximum fees and charges which may be paid by county agencies 255.23 for medical, dental, surgical, hospital, nursing and nursing 255.24 home care and medicine and medical supplies under all programs 255.25 of medical care provided by the state and for congregate living 255.26 care under the income maintenance programs. 255.27 (12) Have the authority to conduct and administer 255.28 experimental projects to test methods and procedures of 255.29 administering assistance and services to recipients or potential 255.30 recipients of public welfare. To carry out such experimental 255.31 projects, it is further provided that the commissioner of human 255.32 services is authorized to waive the enforcement of existing 255.33 specific statutory program requirements, rules, and standards in 255.34 one or more counties. The order establishing the waiver shall 255.35 provide alternative methods and procedures of administration, 255.36 shall not be in conflict with the basic purposes, coverage, or 256.1 benefits provided by law, and in no event shall the duration of 256.2 a project exceed four years. It is further provided that no 256.3 order establishing an experimental project as authorized by the 256.4 provisions of this section shall become effective until the 256.5 following conditions have been met: 256.6 (a) The proposed comprehensive plan, including estimated 256.7 project costs and the proposed order establishing the waiver, 256.8 shall be filed with the secretary of the senate and chief clerk 256.9 of the house of representatives at least 60 days prior to its 256.10 effective date. 256.11 (b) The secretary of health, education, and welfare of the 256.12 United States has agreed, for the same project, to waive state 256.13 plan requirements relative to statewide uniformity. 256.14 (c) A comprehensive plan, including estimated project 256.15 costs, shall be approved by the legislative advisory commission 256.16 and filed with the commissioner of administration. 256.17 (13)In accordance withAccording to federal requirements, 256.18 establish procedures to be followed by local welfare boards in 256.19 creating citizen advisory committees, including procedures for 256.20 selection of committee members. 256.21 (14) Allocate federal fiscal disallowances or sanctions 256.22 which are based on quality control error rates for the aid to 256.23 families with dependent children in effect until January 1, 256.24 1998, medical assistance, or food stamp program in the following 256.25 manner: 256.26 (a) One-half of the total amount of the disallowance shall 256.27 be borne by the county boards responsible for administering the 256.28 programs. For the medical assistance and AFDC programs in 256.29 effect until January 1, 1998, disallowances shall be shared by 256.30 each county board in the same proportion as that county's 256.31 expenditures for the sanctioned program are to the total of all 256.32 counties' expenditures for the AFDC program in effect until 256.33 January 1, 1998, and medical assistanceprogramsprogram. For 256.34 the food stamp program, sanctions shall be shared by each county 256.35 board, with 50 percent of the sanction being distributed to each 256.36 county in the same proportion as that county's administrative 257.1 costs for food stamps are to the total of all food stamp 257.2 administrative costs for all counties, and 50 percent of the 257.3 sanctions being distributed to each county in the same 257.4 proportion as that county's value of food stamp benefits issued 257.5 are to the total of all benefits issued for all counties. Each 257.6 county shall pay its share of the disallowance to the state of 257.7 Minnesota. When a county fails to pay the amount due hereunder, 257.8 the commissioner may deduct the amount from reimbursement 257.9 otherwise due the county, or the attorney general, upon the 257.10 request of the commissioner, may institute civil action to 257.11 recover the amount due. 257.12 (b) Notwithstanding the provisions of paragraph (a), if the 257.13 disallowance results from knowing noncompliance by one or more 257.14 counties with a specific program instruction, and that knowing 257.15 noncompliance is a matter of official county board record, the 257.16 commissioner may require payment or recover from the county or 257.17 counties, in the manner prescribed in paragraph (a), an amount 257.18 equal to the portion of the total disallowance which resulted 257.19 from the noncompliance, and may distribute the balance of the 257.20 disallowance according to paragraph (a). 257.21 (15) Develop and implement special projects that maximize 257.22 reimbursements and result in the recovery of money to the 257.23 state. For the purpose of recovering state money, the 257.24 commissioner may enter into contracts with third parties. Any 257.25 recoveries that result from projects or contracts entered into 257.26 under this paragraph shall be deposited in the state treasury 257.27 and credited to a special account until the balance in the 257.28 account reaches $1,000,000. When the balance in the account 257.29 exceeds $1,000,000, the excess shall be transferred and credited 257.30 to the general fund. All money in the account is appropriated 257.31 to the commissioner for the purposes of this paragraph. 257.32 (16) Have the authority to make direct payments to 257.33 facilities providing shelter to women and their children 257.34pursuantaccording to section 256D.05, subdivision 3. Upon the 257.35 written request of a shelter facility that has been denied 257.36 payments under section 256D.05, subdivision 3, the commissioner 258.1 shall review all relevant evidence and make a determination 258.2 within 30 days of the request for review regarding issuance of 258.3 direct payments to the shelter facility. Failure to act within 258.4 30 days shall be considered a determination not to issue direct 258.5 payments. 258.6 (17) Have the authority to establish and enforce the 258.7 following county reporting requirements: 258.8 (a) The commissioner shall establish fiscal and statistical 258.9 reporting requirements necessary to account for the expenditure 258.10 of funds allocated to counties for human services programs. 258.11 When establishing financial and statistical reporting 258.12 requirements, the commissioner shall evaluate all reports, in 258.13 consultation with the counties, to determine if the reports can 258.14 be simplified or the number of reports can be reduced. 258.15 (b) The county board shall submit monthly or quarterly 258.16 reports to the department as required by the commissioner. 258.17 Monthly reports are due no later than 15 working days after the 258.18 end of the month. Quarterly reports are due no later than 30 258.19 calendar days after the end of the quarter, unless the 258.20 commissioner determines that the deadline must be shortened to 258.21 20 calendar days to avoid jeopardizing compliance with federal 258.22 deadlines or risking a loss of federal funding. Only reports 258.23 that are complete, legible, and in the required format shall be 258.24 accepted by the commissioner. 258.25 (c) If the required reports are not received by the 258.26 deadlines established in clause (b), the commissioner may delay 258.27 payments and withhold funds from the county board until the next 258.28 reporting period. When the report is needed to account for the 258.29 use of federal funds and the late report results in a reduction 258.30 in federal funding, the commissioner shall withhold from the 258.31 county boards with late reports an amount equal to the reduction 258.32 in federal funding until full federal funding is received. 258.33 (d) A county board that submits reports that are late, 258.34 illegible, incomplete, or not in the required format for two out 258.35 of three consecutive reporting periods is considered 258.36 noncompliant. When a county board is found to be noncompliant, 259.1 the commissioner shall notify the county board of the reason the 259.2 county board is considered noncompliant and request that the 259.3 county board develop a corrective action plan stating how the 259.4 county board plans to correct the problem. The corrective 259.5 action plan must be submitted to the commissioner within 45 days 259.6 after the date the county board received notice of noncompliance. 259.7 (e) The final deadline for fiscal reports or amendments to 259.8 fiscal reports is one year after the date the report was 259.9 originally due. If the commissioner does not receive a report 259.10 by the final deadline, the county board forfeits the funding 259.11 associated with the report for that reporting period and the 259.12 county board must repay any funds associated with the report 259.13 received for that reporting period. 259.14 (f) The commissioner may not delay payments, withhold 259.15 funds, or require repayment under paragraph (c) or (e) if the 259.16 county demonstrates that the commissioner failed to provide 259.17 appropriate forms, guidelines, and technical assistance to 259.18 enable the county to comply with the requirements. If the 259.19 county board disagrees with an action taken by the commissioner 259.20 under paragraph (c) or (e), the county board may appeal the 259.21 action according to sections 14.57 to 14.69. 259.22 (g) Counties subject to withholding of funds under 259.23 paragraph (c) or forfeiture or repayment of funds under 259.24 paragraph (e) shall not reduce or withhold benefits or services 259.25 to clients to cover costs incurred due to actions taken by the 259.26 commissioner under paragraph (c) or (e). 259.27 (18) Allocate federal fiscal disallowances or sanctions for 259.28 audit exceptions when federal fiscal disallowances or sanctions 259.29 are based on a statewide random sample for the foster care 259.30 program under title IV-E of the Social Security Act, United 259.31 States Code, title 42, in direct proportion to each county's 259.32 title IV-E foster care maintenance claim for that period. 259.33 (19) Be responsible for ensuring the detection, prevention, 259.34 investigation, and resolution of fraudulent activities or 259.35 behavior by applicants, recipients, and other participants in 259.36 the human services programs administered by the department. 260.1 (20) Require county agencies to identify overpayments, 260.2 establish claims and utilize all available and cost-beneficial 260.3 methodologies to collect and recover these overpayments in the 260.4 human services programs administered by the department. 260.5 Sec. 3. Minnesota Statutes 1996, section 256.017, 260.6 subdivision 2, is amended to read: 260.7 Subd. 2. [DEFINITIONS.] The following terms have the 260.8 meanings given forthe purposepurposes of this section. 260.9 (a) "Administrative penalty" means an adjustment against 260.10 the county agency's state and federal benefit and federal 260.11 administrative reimbursement when the commissioner determines 260.12 that the county agency is not in compliance with the policies 260.13 and procedures established by the commissioner. 260.14 (b) "Quality control case penalty" means an adjustment 260.15 against the county agency's federal administrative reimbursement 260.16 and state and federal benefit reimbursement when the 260.17 commissioner determines through a quality control review that 260.18 the county agency has made incorrect payments, terminations, or 260.19 denials of benefits as determined by state quality control 260.20 procedures for the aid to families with dependent children in 260.21 effect until January 1, 1998, Minnesota family investment 260.22 program-statewide, food stamp, or medical assistance programs, 260.23 or any other programs for which the commissioner has developed a 260.24 quality control system. Quality control case penalties apply 260.25 only to agency errors as defined by state quality control 260.26 procedures. 260.27 (c) "Quality control/quality assurance" means a review 260.28 system of a statewide random sample of cases, designed to 260.29 provide data on program outcomes and the accuracy with which 260.30 state and federal policies are being applied in issuing benefits 260.31 and as a fiscal audit to ensure the accuracy of expenditures. 260.32 The quality control/quality assurance system is administered by 260.33 the department. For the aid to families with dependent children 260.34 in effect until January 1, 1998, Minnesota family investment 260.35 program-statewide, food stamp, and medical assistance programs, 260.36 the quality control system is that required by federal 261.1 regulation, or those developed by the commissioner. 261.2 Sec. 4. Minnesota Statutes 1996, section 256.019, is 261.3 amended to read: 261.4 256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 261.5 When an amount is recovered from any source for assistance 261.6 given under the provisions governing public assistance programs 261.7 including aid to families with dependent children, MFIP-S, 261.8 general assistance medical care, emergency assistance, general 261.9 assistance,work readiness,and Minnesota supplemental aid, 261.10there shall be paid to the United States the amount due under261.11the terms of the Social Security Act and the balance must be261.12paid into the treasury of the state or county in accordance with261.13current rates of financial participation; exceptthe county may 261.14 keep one-half of any recovery made by the county agency using 261.15 any method other than recoupment. For medical assistance, if 261.16 the recovery is made by a county agency using any method other 261.17 than recoupment, the county may keep one-half of the nonfederal 261.18 share of the recovery. This does not apply to recoveries from 261.19 medical providers or to recoveries begun by the department of 261.20 human services' surveillance and utilization review division, 261.21 state hospital collections unit, and the benefit recoveries 261.22 division or, by the attorney general's office, or child support 261.23 collections. In the food stamp program, the non-federal share 261.24 of recoveries in the federal tax refund offset program (FTROP) 261.25 only will be divided equally between the state agency and the 261.26 involved county agency. 261.27 Sec. 5. Minnesota Statutes 1996, section 256.045, 261.28 subdivision 3, is amended to read: 261.29 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 261.30 hearings are available for the following: (1) any person 261.31 applying for, receiving or having received public assistance, 261.32 medical care, or a program of social services granted by the 261.33 state agency or a county agencyunder sections 252.32, 256.031261.34to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E,261.35261,or the federal Food Stamp Act whose application for 261.36 assistance is denied, not acted upon with reasonable promptness, 262.1 or whose assistance is suspended, reduced, terminated, or 262.2 claimed to have been incorrectly paid; (2) any patient or 262.3 relative aggrieved by an order of the commissioner under section 262.4 252.27; (3) a party aggrieved by a ruling of a prepaid health 262.5 plan; (4) any individual or facility determined by a lead agency 262.6 to have maltreated a vulnerable adult under section 626.557 262.7 after they have exercised their right to administrative 262.8 reconsideration under section 626.557; (5) any person whose 262.9 claim for foster care paymentpursuantaccording to a placement 262.10 of the child resulting from a child protection assessment under 262.11 section 626.556 is denied or not acted upon with reasonable 262.12 promptness, regardless of funding source; (6) any person to whom 262.13 a right of appealpursuantaccording to this section is given by 262.14 other provision of law; or (7) an applicant aggrieved by an 262.15 adverse decision to an application for a hardship waiver under 262.16 section 256B.15. The failure to exercise the right to an 262.17 administrative reconsideration shall not be a bar to a hearing 262.18 under this section if federal law provides an individual the 262.19 right to a hearing to dispute a finding of maltreatment. 262.20 Individuals and organizations specified in this section may 262.21 contest the specified action, decision, or final disposition 262.22 before the state agency by submitting a written request for a 262.23 hearing to the state agency within 30 days after receiving 262.24 written notice of the action, decision, or final disposition, or 262.25 within 90 days of such written notice if the applicant, 262.26 recipient, patient, or relative shows good cause why the request 262.27 was not submitted within the 30-day time limit. 262.28 The hearing for an individual or facility under clause (4) 262.29 is the only administrative appeal to the final lead agency 262.30 disposition specifically, including a challenge to the accuracy 262.31 and completeness of data under section 13.04. Hearings 262.32 requested under clause (4) apply only to incidents of 262.33 maltreatment that occur on or after October 1, 1995. Hearings 262.34 requested by nursing assistants in nursing homes alleged to have 262.35 maltreated a resident prior to October 1, 1995, shall be held as 262.36 a contested case proceeding under the provisions of chapter 14. 263.1 For purposes of this section, bargaining unit grievance 263.2 procedures are not an administrative appeal. 263.3 The scope of hearings involving claims to foster care 263.4 payments under clause (5) shall be limited to the issue of 263.5 whether the county is legally responsible for a child's 263.6 placement under court order or voluntary placement agreement 263.7 and, if so, the correct amount of foster care payment to be made 263.8 on the child's behalf and shall not include review of the 263.9 propriety of the county's child protection determination or 263.10 child placement decision. 263.11 (b) Except for a prepaid health plan, a vendor of medical 263.12 care as defined in section 256B.02, subdivision 7, or a vendor 263.13 under contract with a county agency to provide social services 263.14 under section 256E.08, subdivision 4, is not a party and may not 263.15 request a hearing under this section, except if assisting a 263.16 recipient as provided in subdivision 4. 263.17 (c) An applicant or recipient is not entitled to receive 263.18 social services beyond the services included in the amended 263.19 community social services plan developed under section 256E.081, 263.20 subdivision 3, if the county agency has met the requirements in 263.21 section 256E.081. 263.22 (d) The commissioner may summarily affirm the county or 263.23 state agency's proposed action without a hearing when the sole 263.24 issue is an automatic change due to a change in state or federal 263.25 law. 263.26 Sec. 6. Minnesota Statutes 1996, section 256.046, is 263.27 amended to read: 263.28 256.046 [ADMINISTRATIVE FRAUD DISQUALIFICATION HEARINGS.] 263.29 Subdivision 1. [HEARING AUTHORITY.] A local agencymay263.30 shall initiate an administrative fraud disqualification hearing 263.31 for individuals accused of wrongfully obtaining assistance or 263.32 intentional program violations, in lieu of a criminal action, in 263.33 the aid to families with dependent children in effect until 263.34 January 1, 1998, MFIP-S, child care, general assistance, family 263.35 general assistance, Minnesota supplemental aid, medical care, or 263.36 food stamp programs. The hearing is subject to the requirements 264.1 of section 256.045 and the requirements in Code of Federal 264.2 Regulations, title 7, section 273.16, for the food stamp program 264.3 and title 45, section 235.112, as of September 30, 1995, for the 264.4aid to families with dependent children programcash grant and 264.5 medical care programs. 264.6 Subd. 2. [COMBINED HEARING.] The referee may combine a 264.7 fair hearing and administrative fraud disqualification hearing 264.8 into a single hearing if the factual issues arise out of the 264.9 same, or related, circumstances and the individual receives 264.10 prior notice that the hearings will be combined. If the 264.11 administrative fraud disqualification hearing and fair hearing 264.12 are combined, the time frames for administrative fraud 264.13 disqualification hearingsset forthspecified in Code of Federal 264.14 Regulations, title 7, section 273.16, and title 45, section 264.15 235.112, as of September 30, 1995, apply. If the individual 264.16 accused of wrongfully obtaining assistance is charged under 264.17 section 256.98 for the same act or acts which are the subject of 264.18 the hearing, the individual may request that the hearing be 264.19 delayed until the criminal charge is decided by the court or 264.20 withdrawn. 264.21 Sec. 7. [256.0471] [OVERPAYMENTS BECOME JUDGMENTS BY 264.22 OPERATION OF LAW.] 264.23 Subdivision 1. [QUALIFYING OVERPAYMENT.] Any overpayment 264.24 for assistance granted under sections 256.031 to 256.0361, 264.25 256.72 to 256.871, and 256H.05; chapters 256B, 256D, 256I, 256J, 264.26 and 256K; and the food stamp program, except agency error 264.27 claims, becomes a judgment by operation of law 90 days after the 264.28 notice of overpayment is personally served upon the recipient in 264.29 a manner that is sufficient under rule 4.03(a) of the Rules of 264.30 Civil Procedure or by certified mail, return receipt requested. 264.31 This judgment shall be entitled to full faith and credit in this 264.32 and any other state. 264.33 Subd. 2. [OVERPAYMENTS INCLUDED.] This section is limited 264.34 to overpayments for which notification is issued within the time 264.35 period specified under section 541.05. 264.36 Subd. 3. [NOTIFICATION REQUIREMENTS.] A judgment is only 265.1 obtained after: 265.2 (1) a notice of overpayment has been personally served on 265.3 the recipient or former recipient in a manner sufficient under 265.4 rule 4.03(a) of the Rules of Civil Procedure for district 265.5 courts, or mailed to the recipient or former recipient by 265.6 certified mail, return receipt requested; and 265.7 (2) the time period under section 256.045, subdivision 3, 265.8 has elapsed without a request for a hearing, or a hearing 265.9 decision has been rendered under section 256.045 or 256.046 265.10 which concludes the existence of an overpayment that meets the 265.11 requirements of this section. 265.12 Subd. 4. [NOTICE OF OVERPAYMENT.] The notice of 265.13 overpayment shall include the amount and cause of the 265.14 overpayment, appeal rights, and an explanation of the 265.15 consequences of the judgment that will be established if an 265.16 appeal is not filed timely or if the administrative hearing 265.17 decision establishes that there is an overpayment which 265.18 qualifies for judgment. 265.19 Subd. 5. [JUDGMENTS ENTERED AND DOCKETED.] A judgment 265.20 shall be entered and docketed under section 548.09 only after at 265.21 least three months have elapsed since: 265.22 (1) the notice of overpayment was served on the recipient 265.23 under subdivision 3; and 265.24 (2) the last time a monthly recoupment was applied to the 265.25 overpayment. 265.26 Subd. 6. [DOCKETING OF OVERPAYMENTS.] On or after the date 265.27 an unpaid overpayment becomes a judgment by operation of law 265.28 under subdivision 1, the agency or public authority may file 265.29 with the court administrator: 265.30 (1) a statement identifying, or a copy of, the overpayment 265.31 notice which provides for an appeal process and requires payment 265.32 of the overpayment; 265.33 (2) proof of service of the notice of overpayment; 265.34 (3) an affidavit of default, stating the full name, 265.35 occupation, place of residence, and last name of the debtor; the 265.36 name and post office address of the agency or public authority; 266.1 the date or dates the overpayment was incurred; the program that 266.2 was overpaid; and the total amount of the judgment; and 266.3 (4) an affidavit of service of a notice of entry of 266.4 judgment made by first class mail at the address where the 266.5 debtor was served with the notice of overpayment. Service is 266.6 completed upon mailing in the manner designated. 266.7 Subd. 7. [DOES NOT IMPEDE OTHER METHODS.] Nothing in this 266.8 section shall be construed to impede or restrict alternative 266.9 recovery methods for these overpayments or overpayments which do 266.10 not meet the requirements of this section. 266.11 Sec. 8. Minnesota Statutes 1996, section 256.98, 266.12 subdivision 1, is amended to read: 266.13 Subdivision 1. [WRONGFULLY OBTAINING ASSISTANCE.] A person 266.14 who commits any of the following acts or omissions with intent 266.15 to defeat the purposes of sections 145.891 to 145.897, 256.12, 266.16 256.031 to 256.0361, 256.72 to 256.871, 256.9351 to 256.966, 266.17 child care, MFIP-S, chapter 256B, 256D, 256J, or 256K, or all of 266.18 these sections, is guilty of theft and shall be sentenced under 266.19 section 609.52, subdivision 3, clauses (1) to (5): 266.20 (1) obtains,or attempts to obtain, or aids or abets any 266.21 person to obtain by means of a willfully false statement or 266.22 representation, by intentional concealment ofaany material 266.23 fact, or by impersonation or other fraudulent device, assistance 266.24 or the continued receipt of assistance, including, but not 266.25 limited to, child care or vouchers produced according to 266.26 sections 145.891 to 145.897 and MinnesotaCare services according 266.27 to sections 256.9351 to 256.966, to which the person is not 266.28 entitled or assistance greater than that to which the person is 266.29 entitled, or who; or 266.30 (2) knowingly aids or abets in buying or in any way 266.31 disposing of the property of a recipient or applicant of 266.32 assistance without the consent of the county agencywith intent266.33to defeat the purposes of sections 256.12, 256.031 to 256.0361,266.34256.72 to 256.871, and chapter 256B, or all of these sections is266.35guilty of theft and shall be sentenced pursuant to section266.36609.52, subdivision 3, clauses (2), (3)(a) and (c), (4), and (5). 267.1 The continued receipt of assistance to which the person is 267.2 not entitled or greater than that to which the person is 267.3 entitled as a result of any of the acts, failure to act, or 267.4 concealment described in this subdivision shall be deemed to be 267.5 continuing offenses from the date that the first act or failure 267.6 to act occurred. 267.7 Sec. 9. Minnesota Statutes 1996, section 256.98, 267.8 subdivision 4, is amended to read: 267.9 Subd. 4. [RECOVERY OF ASSISTANCE.] The amount of 267.10 assistance determined to have been incorrectly paid is 267.11 recoverable from: 267.12 (1) the recipient or the recipient's estate by the county 267.13 or the state as a debt due the county or the state or bothin267.14proportion to the contribution of each.; and 267.15 (2) any person found to have taken independent action to 267.16 establish eligibility for, conspired with, or aided and abetted, 267.17 any recipient of public assistance found to have been 267.18 incorrectly paid. 267.19 Sec. 10. Minnesota Statutes 1996, section 256.98, 267.20 subdivision 8, is amended to read: 267.21 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 267.22 to be guilty of wrongfully obtaining assistance by a federal or 267.23 state court or by an administrative hearing determination, or 267.24 waiver thereof, through a disqualification consent agreement, or 267.25 as part of any approved diversion plan under section 401.065, or 267.26 any court ordered stay which carries with it any probationary or 267.27 other conditions, in the aid to families with dependent children 267.28 program in effect until January 1, 1998, the Minnesota family 267.29 assistance program-statewide, the food stamp program, the 267.30 Minnesota family investment plan, child care program, the 267.31 general assistance or family general assistance program, or the 267.32 Minnesota supplemental aid program, or the work readiness267.33programshall be disqualified from that program. The needs of 267.34 that individual shall not be taken into consideration in 267.35 determining the grant level for that assistance unit: 267.36 (1) forsix monthsone year after the first offense; 268.1 (2) for12 monthstwo years after the second offense; and 268.2 (3) permanently after the third or subsequent offense. 268.3 The period of program disqualification shall begin on the 268.4 date stipulated on the advance notice of disqualification 268.5 without possibility of postponement for administrative stay or 268.6 administrative hearing and shall continue through completion 268.7 unless and until the findings upon which the sanctions were 268.8 imposed are reversed by a court of competent jurisdiction. The 268.9 period for which sanctions are imposed is not subject to 268.10 review. The sanctions provided under this subdivision are in 268.11 addition to, and not in substitution for, any other sanctions 268.12 that may be provided for by law for the offense involved. A 268.13 disqualification established through hearing or waiver shall 268.14 result in the disqualification period beginning immediately 268.15 unless the person has become otherwise ineligible for 268.16 assistance. If the person is ineligible for assistance, the 268.17 disqualification period begins when the person again meets the 268.18 eligibility criteria of the program from which they were 268.19 disqualified and makes application for that program. 268.20 Sec. 11. Minnesota Statutes 1996, section 256.983, 268.21 subdivision 1, is amended to read: 268.22 Subdivision 1. [PROGRAMS ESTABLISHED.] Within the limits 268.23 of available appropriations,and to the extent required or268.24authorized by applicable federal regulations,the commissioner 268.25 of human services shall require theestablishmentmaintenance of 268.26 budget neutral fraud prevention investigation programs in the 268.27sevencounties participating in the fraud prevention 268.28 investigationpilotproject established under this section, and268.29in 11 additional Minnesota counties with the largest aid to268.30families with dependent children program caseloads as of July 1,268.311991. If funds are sufficient, the commissioner may also extend 268.32 fraud prevention investigation programs to: (1)other 268.33 countiesthat have welfare fraud control programs already in268.34place based on enhanced funding contracts covering the fraud268.35investigation function; and (2) counties that have the largest268.36AFDC caseloads as of July 1, 1994, and are not currently269.1participating in the fraud prevention investigation pilot269.2project. The pilot project may be expandedprovided the 269.3 expansion is budget neutral to the state. 269.4 Sec. 12. Minnesota Statutes 1996, section 256.983, 269.5 subdivision 4, is amended to read: 269.6 Subd. 4. [FUNDING.] (a)Every involved county agency shall269.7either have in place or obtain an approved contract which meets269.8all federal requirements necessary to obtain enhanced federal269.9funding for its welfare fraud control and fraud prevention269.10investigation programs.County agency reimbursement shall be 269.11 made through the settlement provisions applicable to the aid to 269.12 families with dependent childrenandprogram in effect until 269.13 January 1, 1998, food stampprogramsprogram, Minnesota family 269.14 investment program-statewide, and medical assistance program and 269.15 other federal and state funded programs. 269.16 (b)After allowing an opportunity to establish compliance,269.17 The commissioner willdeny administrative reimbursementmaintain 269.18 program compliance if for anythree-monththree consecutive 269.19 month periodduring any grant year, a county agency fails to 269.20 comply with fraud prevention investigation program guidelines, 269.21 or fails to meet the cost-effectiveness standards developed by 269.22 the commissioner. This result is contingent on the commissioner 269.23 providing written notice, including an offer of technical 269.24 assistance, within 30 days of the end of the third or subsequent 269.25 month of noncompliance. The county agency shall be required to 269.26 submit a corrective action plan to the commissioner within 30 269.27 days of receipt of a notice of noncompliance. Failure to submit 269.28 a corrective action plan or, continued deviation from standards 269.29 of more than ten percent after submission of a corrective action 269.30 plan, will result in denial of funding for each subsequent month 269.31during the grant year, or billing the county agency for fraud 269.32 prevention investigation (FPI) service provided by the 269.33 commissioner or reallocation of program grant funds, or 269.34 investigative resources, or both, to other counties. The denial 269.35 of funding shall apply to the general settlement received by the 269.36 county agency on a quarterly basis and shall not reduce the 270.1 grant amount applicable to the FPI project. 270.2 Sec. 13. Minnesota Statutes 1996, section 256.984, 270.3 subdivision 1, is amended to read: 270.4 Subdivision 1. [DECLARATION.] Every application for public 270.5 assistance under this chapter or chapters 256B, 256D, 256K, or 270.6 MFIP-S or food stamps under chapter 393 shall be in writing or 270.7 reduced to writing as prescribed by the state agency and shall 270.8 contain the following declaration which shall be signed by the 270.9 applicant: 270.10 "I declare under the penalties of perjury that this 270.11 application has been examined by me and to the best of my 270.12 knowledge is a true and correct statement of every material 270.13 point. I understand that a person convicted of perjury may 270.14 be sentenced to imprisonment of not more than five years or 270.15 to payment of a fine of not more than $10,000, or both." 270.16 Sec. 14. Minnesota Statutes 1996, section 256.986, is 270.17 amended to read: 270.18 256.986 [COUNTY COORDINATION OF FRAUD CONTROL ACTIVITIES.] 270.19 (a) The county agency shall prepare and submit to the 270.20 commissioner of human services byJanuary 1April 30 of each 270.21 state fiscal year a plan to coordinate county duties related to 270.22 the prevention, investigation, and prosecution of fraud in 270.23 public assistance programs.Plans may be submitted on a270.24voluntary basis prior to January 1, 1996.Each county must 270.25 submit its first annual plan prior toJanuary 1, 1997April 30, 270.26 1998. 270.27 (b) Within the limits of appropriations specifically made 270.28 available for this purpose, the commissioner may make grants to 270.29 counties submitting plans under paragraph (a) to implement 270.30 coordination activities. 270.31 Sec. 15. Minnesota Statutes 1996, section 256.9861, 270.32 subdivision 1, is amended to read: 270.33 Subdivision 1. [PROGRAM ESTABLISHED.] Within the limits of 270.34 available state and federal appropriations,and to the extent270.35required or authorized by applicable federal regulations,the 270.36 commissioner of human services shall make funding available to 271.1 county agencies forthe establishment of program integrity271.2reinvestment initiatives. The project shall initially be271.3limited to those county agencies participating in federally271.4funded optional fraud control programs as of January 1,271.51995fraud control efforts and require the maintenance of county 271.6 efforts and financial contribution that were in place during 271.7 fiscal year 1996. 271.8 Sec. 16. Minnesota Statutes 1996, section 256.9861, 271.9 subdivision 2, is amended to read: 271.10 Subd. 2. [COUNTY PROPOSALS.] Each included county shall 271.11 develop and submit annual funding, staffing, and operating grant 271.12 proposals to the commissioner no later than April 30 of each 271.13 year for the purpose of allocating federal and state funding and 271.14 appropriations.For the first operating year only, the proposal271.15shall be submitted no later than October 30.Each proposal 271.16 shall provide information on: 271.17 (1) the staffing and funding of the fraud investigation and 271.18 prosecution operations; 271.19 (2) job descriptions for agency fraud control staff; 271.20 (3) contracts covering outside investigative agencies; 271.21 (4) operational methods to integrate the use of fraud 271.22 prevention investigation techniques; and 271.23 (5) implementation and utilization of administrative 271.24 disqualification hearings and diversionsintoby the existing 271.25 county fraud control and prosecution procedures. 271.26 Sec. 17. Minnesota Statutes 1996, section 256.9861, 271.27 subdivision 4, is amended to read: 271.28 Subd. 4. [STANDARDS.] The commissioner shall, after 271.29 consultation with the involved counties, establish standards 271.30 governing the performance levels ofinvolvedcounty 271.31 investigative units based on grant agreementsnegotiatedwith 271.32 theinvolvedcounty agencies. The standards shall take into 271.33 consideration and may include investigative caseloads, grant 271.34 savings levels, the comparison of fraud prevention and 271.35 prosecution directed investigations, utilization levels of 271.36 administrative disqualification hearings, the timely reporting 272.1 and implementation of disqualifications, and the timeliness 272.2 of the submission of statistical reportsreceived from272.3prosecutors. 272.4 Sec. 18. Minnesota Statutes 1996, section 256.9861, 272.5 subdivision 5, is amended to read: 272.6 Subd. 5. [FUNDING.] (a)Grant funds are intended to help272.7offset the reduction in federal financial participation to 50272.8percent and may be apportioned to the participating counties272.9whenever feasible, and within the commissioner's discretion, to272.10achieve this goal.State funding shall be made available 272.11 contingent on counties submitting a plan that is approved by the 272.12 department of human services. Failure or delay in obtaining 272.13 that approval shall not, however, eliminate the obligation to 272.14 maintain fraud control efforts at theJanuary 1, 1995June 30, 272.15 1996, level.Additional counties may be added to the project to272.16the extent that funds are subsequently made available. Every272.17involved county must meet all federal requirements necessary to272.18obtain federal funding for its welfare fraud control and272.19prevention programs.County agency reimbursement shall be made 272.20 through the settlement provisions applicable to theAFDC and272.21 MFIP-S, food stamp and medical assistance programs. 272.22 (b) Should a county agency fail to comply with the 272.23 standards set, or fail to meet cost-effectiveness standards 272.24 developed by the commissioner forthree months during any grant272.25yearany three-month period, the commissioner shall deny 272.26 reimbursement or administrative costs, after allowing an 272.27 opportunity to establish compliance. 272.28 (c) Any denial of reimbursement under paragraph (b) is 272.29 contingent on the commissioner providing written notice, 272.30 including an offer of technical assistance, within 30 days of 272.31 the end of the third or subsequent months of noncompliance. The 272.32 county agency shall be required to submit a corrective action 272.33 plan to the commissioner within 30 days of receipt of a notice 272.34 of noncompliance. Failure to submit a corrective action plan or 272.35 continued deviation from standards of more than ten percent 272.36 after submission of corrective action plan, will result in 273.1 denial of funding for each such month during the grant year, or 273.2 billing of the county agency for program integrity reinvestment 273.3 project services provided by the commissioner or reallocation of 273.4 grant funds to other counties. The denial of funding shall 273.5 apply to the general settlement received by the county agency on 273.6 a quarterly basis and shall not reduce the grant amount 273.7 applicable to the program integrity reinvestment project. 273.8 Sec. 19. [256.9863] [ASSISTANCE TRANSACTION CARD; 273.9 PRESUMPTION OF RECEIPT OF BENEFITS.] 273.10 Any person in whose name an assistance transaction card has 273.11 been issued shall be presumed to have received the benefit of 273.12 all transactions involving that card. This presumption applies 273.13 in all situations unless the card in question has been reported 273.14 lost or stolen by the cardholder. This presumption may be 273.15 overcome by a preponderance of evidence indicating that the card 273.16 was neither used by nor with the consent of the cardholder. 273.17 Overcoming this presumption does not create any new or 273.18 additional payment obligation not otherwise established in law, 273.19 rule, or regulation. 273.20 Sec. 20. [256.9864] [REPORTS BY RECIPIENT.] 273.21 (a) An assistance unit with a recent work history or with 273.22 earned income shall report monthly to the county agency on 273.23 income received and other circumstances affecting eligibility or 273.24 assistance amounts. All other assistance units shall report on 273.25 income and other circumstances affecting eligibility and 273.26 assistance amounts as specified by the state agency. 273.27 (b) An assistance unit required to submit a report on the 273.28 form designated by the commissioner and within ten days of the 273.29 due date or the date of the significant change, whichever is 273.30 later, or otherwise report significant changes which would 273.31 affect eligibility or assistance amounts, is considered to have 273.32 continued its application for assistance effective the date the 273.33 required report is received by the county agency, if a complete 273.34 report is received within a calendar month in which assistance 273.35 was received, except that no assistance shall be paid for the 273.36 period beginning with the end of the month in which the report 274.1 was due and ending with the date the report was received by the 274.2 county agency. 274.3 Sec. 21. [256.9865] [RECOVERY OF OVERPAYMENTS AND ATM 274.4 ERRORS.] 274.5 Subdivision 1. [OBLIGATION TO RECOVER.] If an amount of 274.6 MFIP-S assistance is paid to a recipient in excess of the 274.7 payment due, it shall be recoverable by the county agency. This 274.8 recovery authority also extends to preexisting claims or newly 274.9 discovered claims established under the AFDC program in effect 274.10 on January 1, 1997. The agency shall give written notice to the 274.11 recipient of its intention to recover the overpayment. County 274.12 agency efforts and financial contributions shall be maintained 274.13 at the level in place during fiscal year 1996. 274.14 Subd. 2. [VOLUNTARY REPAYMENTS.] Overpayments may also be 274.15 voluntarily repaid, in part or in full, by the individual, in 274.16 addition to the aid reductions in subdivision 2, to include 274.17 further voluntary reductions in the grant level agreed to in 274.18 writing by the individual, until the total amount of the 274.19 overpayment is repaid. 274.20 Subd. 3. [CLOSED CASE RECOVERIES.] The county agency shall 274.21 make reasonable efforts to recover overpayments to persons no 274.22 longer on assistance according to standards adopted by rule by 274.23 the commissioner of human services. The county agency need not 274.24 attempt to recover overpayments of less than $35 paid to an 274.25 individual no longer on assistance unless the individual has 274.26 been convicted of fraud under section 256.98. 274.27 Sec. 22. [256.9866] [COMMUNITY SERVICE AS A COUNTY 274.28 OBLIGATION.] 274.29 Community service shall be an acceptable sentencing option 274.30 but shall not reduce the state or federal share of any amount to 274.31 be repaid or any subsequent recovery. Any reduction or offset 274.32 of any such amount ordered by a court shall be treated as 274.33 follows: 274.34 (1) any reduction in an overpayment amount, to include the 274.35 amount ordered as restitution, shall not reduce the underlying 274.36 amount established as an overpayment by the state or county 275.1 agency; 275.2 (2) total overpayments shall continue as a debt owed and 275.3 may be recovered by any civil or administrative means otherwise 275.4 available to the state or county agency; and 275.5 (3) any amount ordered to be offset against any overpayment 275.6 shall be deducted from the county share only of any recovery and 275.7 shall be based on the prevailing state minimum wage. To the 275.8 extent that any deduction is in fact made against any state or 275.9 county share, it shall be reimbursed from the county share of 275.10 payments to be made under section 256.025. 275.11 Sec. 23. Minnesota Statutes 1996, section 256D.09, 275.12 subdivision 6, is amended to read: 275.13 Subd. 6. [RECOVERY OF OVERPAYMENTS.] (a) If an amount of 275.14 general assistance or family general assistance is paid to a 275.15 recipient in excess of the payment due, it shall be recoverable 275.16 by the county agency. The agency shall give written notice to 275.17 the recipient of its intention to recover the overpayment. 275.18 (b) When an overpayment occurs, the county agency shall 275.19 recover the overpayment from a current recipient by reducing the 275.20 amount of aid payable to the assistance unit of which the 275.21 recipient is a member, for one or more monthly assistance 275.22 payments, until the overpayment is repaid. All county agencies 275.23 in the state shall reduce the assistance payment by three 275.24 percent of the assistance unit's standard of need in nonfraud 275.25 cases and ten percent where fraud has occurred, or the amount of 275.26 the monthly payment, whichever is less,for all overpayments. 275.27whether or not the overpayment is due solely to agency error.275.28The amount of this reduction is ten percent, if the overpayment275.29is due solely to having wrongfully obtained assistance, whether275.30based on:275.31(1) a court order;275.32(2) the finding of an administrative fraud disqualification275.33hearing or the waiver of such a hearing; or275.34(3) a confession or judgment containing an admission of an275.35intentional program violation.275.36 (c) In cases when there is both an overpayment and 276.1 underpayment, the county agency shall offset one against the 276.2 other in correcting the payment. 276.3 (d) Overpayments may also be voluntarily repaid, in part or 276.4 in full, by the individual, in addition to the aid reductions 276.5 provided in this subdivision, to include further voluntary 276.6 reductions in the grant level agreed to in writing by the 276.7 individual, until the total amount of the overpayment is repaid. 276.8 (e) The county agency shall make reasonable efforts to 276.9 recover overpayments to persons no longer on assistance under 276.10 standards adopted in rule by the commissioner of human 276.11 services. The county agency need not attempt to recover 276.12 overpayments of less than $35 paid to an individual no longer on 276.13 assistance if the individual does not receive assistance again 276.14 within three years, unless the individual has been convicted of 276.15 violating section 256.98. 276.16 Sec. 24. Minnesota Statutes 1996, section 270A.03, 276.17 subdivision 5, is amended to read: 276.18 Subd. 5. [DEBT.] "Debt" means a legal obligation of a 276.19 natural person to pay a fixed and certain amount of money, which 276.20 equals or exceeds $25 and which is due and payable to a claimant 276.21 agency. The term includes criminal fines imposed under section 276.22 609.10 or 609.125 and restitution. A debt may arise under a 276.23 contractual or statutory obligation, a court order, or other 276.24 legal obligation, but need not have been reduced to judgment. 276.25 A debtdoes not includeincludes any legal obligation of a 276.26 current recipient of assistance which is based on overpayment of 276.27 an assistance grant where that payment is based on a client 276.28 waiver or an administrative or judicial finding of an 276.29 intentional program violation, or where the debt is owed to a 276.30 program wherein the debtor is not a client at the time 276.31 notification is provided to initiate recovery under this chapter. 276.32 A debt does not include any legal obligation to pay a 276.33 claimant agency for medical care, including hospitalization if 276.34 the income of the debtor at the time when the medical care was 276.35 rendered does not exceed the following amount: 276.36 (1) for an unmarried debtor, an income of $6,400 or less; 277.1 (2) for a debtor with one dependent, an income of $8,200 or 277.2 less; 277.3 (3) for a debtor with two dependents, an income of $9,700 277.4 or less; 277.5 (4) for a debtor with three dependents, an income of 277.6 $11,000 or less; 277.7 (5) for a debtor with four dependents, an income of $11,600 277.8 or less; and 277.9 (6) for a debtor with five or more dependents, an income of 277.10 $12,100 or less. 277.11 The income amounts in this subdivision shall be adjusted 277.12 for inflation for debts incurred in calendar years 1991 and 277.13 thereafter. The dollar amount of each income level that applied 277.14 to debts incurred in the prior year shall be increased in the 277.15 same manner as provided in section 290.06, subdivision 2d, for 277.16 the expansion of the tax rate brackets. 277.17 Sec. 25. Minnesota Statutes 1996, section 388.23, 277.18 subdivision 1, is amended to read: 277.19 Subdivision 1. [AUTHORITY.] The county attorney, or any 277.20 deputy or assistant county attorney whom the county attorney 277.21 authorizes in writing, has the authority to subpoena and require 277.22 the production of any records of telephone companies, cellular 277.23 phone companies, paging companies, electric companies, gas 277.24 companies, water utilities, chemical suppliers, hotels and 277.25 motels, pawn shops, airlines, buses, taxis, and other entities 277.26 engaged in the business of transporting people, and freight 277.27 companies, warehousing companies, self-service storage 277.28 facilities, package delivery companies, and other entities 277.29 engaged in the businesses of transport, storage, or delivery, 277.30 and records of the existence of safe deposit box account numbers 277.31 and customer savings and checking account numbers maintained by 277.32 financial institutions and safe deposit companies, insurance 277.33 records relating to the monetary payment or settlement of 277.34 claims, and wage and employment records of an applicant or 277.35 recipient of public assistance who is the subject of a welfare 277.36 fraud investigation relating to eligibility information for 278.1 public assistance programs. Subpoenas may only be issued for 278.2 records that are relevant to an ongoing legitimate law 278.3 enforcement investigation. Administrative subpoenas may only be 278.4 issued in welfare fraud cases if there is probable cause to 278.5 believe a crime has been committed. This provision applies only 278.6 to the records of business entities and does not extend to 278.7 private individuals or their dwellings.Subpoenas may only be278.8served by peace officers as defined by section 626.84,278.9subdivision 1, paragraph (c).278.10 Sec. 26. Minnesota Statutes 1996, section 393.07, 278.11 subdivision 10, is amended to read: 278.12 Subd. 10. [FEDERAL FOOD STAMP PROGRAM AND THE MATERNAL AND 278.13 CHILD NUTRITION ACT.] (a) The local social services agency shall 278.14 establish and administer the food stamp programpursuant278.15 according to rules of the commissioner of human services, the 278.16 supervision of the commissioner as specified in section 256.01, 278.17 and all federal laws and regulations. The commissioner of human 278.18 services shall monitor food stamp program delivery on an ongoing 278.19 basis to ensure that each county complies with federal laws and 278.20 regulations. Program requirements to be monitored include, but 278.21 are not limited to, number of applications, number of approvals, 278.22 number of cases pending, length of time required to process each 278.23 application and deliver benefits, number of applicants eligible 278.24 for expedited issuance, length of time required to process and 278.25 deliver expedited issuance, number of terminations and reasons 278.26 for terminations, client profiles by age, household composition 278.27 and income level and sources, and the use of phone certification 278.28 and home visits. The commissioner shall determine the 278.29 county-by-county and statewide participation rate. 278.30 (b) On July 1 of each year, the commissioner of human 278.31 services shall determine a statewide and county-by-county food 278.32 stamp program participation rate. The commissioner may 278.33 designate a different agency to administer the food stamp 278.34 program in a county if the agency administering the program 278.35 fails to increase the food stamp program participation rate 278.36 among families or eligible individuals, or comply with all 279.1 federal laws and regulations governing the food stamp program. 279.2 The commissioner shall review agency performance annually to 279.3 determine compliance with this paragraph. 279.4 (c) A person who commits any of the following acts has 279.5 violated section 256.98 or 609.821, or both, and is subject to 279.6 both the criminal and civil penalties provided under those 279.7 sections: 279.8 (1) obtains or attempts to obtain, or aids or abets any 279.9 person to obtain by means of awillfully falsewillful statement 279.10 orrepresentationmisrepresentation, or intentional concealment 279.11 of a material fact, food stamps or vouchers issued according to 279.12 sections 145.891 to 145.897 to which the person is not entitled 279.13 or in an amount greater than that to which that person is 279.14 entitled or which specify nutritional supplements to which that 279.15 person is not entitled; or 279.16 (2) presents or causes to be presented, coupons or vouchers 279.17 issued according to sections 145.891 to 145.897 for payment or 279.18 redemption knowing them to have been received, transferred or 279.19 used in a manner contrary to existing state or federal law; or 279.20 (3) willfully uses, possesses, or transfers food stamp 279.21 couponsor, authorization to purchase cards or vouchers issued 279.22 according to sections 145.891 to 145.897 in any manner contrary 279.23 to existing state or federal law, rules, or regulations; or 279.24 (4) buys or sells food stamp coupons, authorization to 279.25 purchase cardsor, other assistance transaction devices, 279.26 vouchers issued according to sections 145.891 to 145.897, or any 279.27 food obtained through the redemption of vouchers issued 279.28 according to sections 145.891 to 145.897 for cash or 279.29 consideration other than eligible food. 279.30 (d) A peace officer or welfare fraud investigator may 279.31 confiscate food stamps, authorization to purchase cards, or 279.32 other assistance transaction devices found in the possession of 279.33 any person who is neither a recipient of the food stamp program 279.34 nor otherwise authorized to possess and use such materials. 279.35 Confiscated property shall be disposed of as the commissioner 279.36 may direct and consistent with state and federal food stamp 280.1 law. The confiscated property must be retained for a period of 280.2 not less than 30 days to allow any affected person to appeal the 280.3 confiscation under section 256.045. 280.4 (e) Food stamp overpayment claims which are due in whole or 280.5 in part to client error shall be established by the county 280.6 agency for a period of six years from the date of any resultant 280.7 overpayment. 280.8 (f) With regard to the federal tax revenue offset program 280.9 only, recovery incentives authorized by the federal food and 280.10 consumer service shall be retained at the rate of 50 percent by 280.11 the state agency and 50 percent by the certifying county agency. 280.12 (g) A peace officer, welfare fraud investigator, federal 280.13 law enforcement official, or the commissioner of health may 280.14 confiscate vouchers found in the possession of any person who is 280.15 neither issued vouchers under sections 145.891 to 145.897, nor 280.16 otherwise authorized to possess and use such vouchers. 280.17 Confiscated property shall be disposed of as the commissioner of 280.18 health may direct and consistent with state and federal law. 280.19 The confiscated property must be retained for a period of not 280.20 less than 30 days. 280.21 Sec. 27. [FUNDING AVAILABILITY.] 280.22 Unexpended funds appropriated for the provision of program 280.23 integrity activities for fiscal year 1998 will also be available 280.24 to the commissioner to fund fraud prevention and control 280.25 initiatives and do not cancel but are available to the 280.26 commissioner for these purposes for fiscal year 1999. 280.27 Unexpended funds may be transferred between the fraud prevention 280.28 investigation program and fraud control programs to promote the 280.29 provisions of sections 256.983 and 256.9861. 280.30 Sec. 28. [UNDOCUMENTED PERSONS NOTIFICATION.] 280.31 County agencies in consultation with the department of 280.32 human services shall provide notification to undocumented 280.33 persons regarding the release of personal data and develop 280.34 protocols regarding the release or sharing of data about 280.35 undocumented persons with the Immigration and Naturalization 280.36 Service (INS) according to sections 404, 434, and 411A of the 281.1 Personal Responsibility and Work Opportunity Reconciliation Act 281.2 of 1996. 281.3 Sec. 29. [EFFECTIVE DATE.] 281.4 Sections 1 to 27 are effective July 1, 1997.