SF 1014

1st 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 program 
  1.3             integrity initiatives; providing access to child 
  1.4             support enforcement central registry; amending 
  1.5             Minnesota Statutes 1996, sections 13.46, subdivision 
  1.6             2; 13.82, subdivision 1; 13.99, by adding a 
  1.7             subdivision; 256.01, subdivision 2; 256.017, 
  1.8             subdivision 2; 256.019; 256.045, subdivision 3; 
  1.9             256.046; 256.98, subdivisions 1, 4, and 8; 256.983, 
  1.10            subdivisions 1 and 4; 256.984, subdivision 1; 256.986; 
  1.11            256.9861, subdivisions 1, 2, 4, and 5; 256.998, by 
  1.12            adding subdivisions; 256D.09, subdivision 6; 270A.03, 
  1.13            subdivision 5; 388.23, subdivision 1; and 393.07, 
  1.14            subdivision 10; proposing coding for new law in 
  1.15            Minnesota Statutes, chapter 256. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17                             ARTICLE 1 
  1.18                   PROGRAM INTEGRITY INITIATIVES 
  1.19     Section 1.  Minnesota Statutes 1996, section 13.46, 
  1.20  subdivision 2, is amended to read: 
  1.21     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
  1.22  a statute specifically provides a different classification, data 
  1.23  on individuals collected, maintained, used, or disseminated by 
  1.24  the welfare system is private data on individuals, and shall not 
  1.25  be disclosed except:  
  1.26     (1) pursuant according to section 13.05; 
  1.27     (2) pursuant according to court order; 
  1.28     (3) pursuant according to a statute specifically 
  1.29  authorizing access to the private data; 
  1.30     (4) to an agent of the welfare system, including a law 
  2.1   enforcement person, attorney, or investigator acting for it in 
  2.2   the investigation or prosecution of a criminal or civil 
  2.3   proceeding relating to the administration of a program; 
  2.4      (5) to personnel of the welfare system who require the data 
  2.5   to determine eligibility, amount of assistance, and the need to 
  2.6   provide services of additional programs to the individual; 
  2.7      (6) to administer federal funds or programs; 
  2.8      (7) between personnel of the welfare system working in the 
  2.9   same program; 
  2.10     (8) the amounts of cash public assistance and relief paid 
  2.11  to welfare recipients in this state, including their names, 
  2.12  social security numbers, income, addresses, and other data as 
  2.13  required, upon request by the department of revenue to 
  2.14  administer the property tax refund law, supplemental housing 
  2.15  allowance, early refund of refundable tax credits, and the 
  2.16  income tax.  "Refundable tax credits" means the dependent care 
  2.17  credit under section 290.067, the Minnesota working family 
  2.18  credit under section 290.0671, the property tax refund under 
  2.19  section 290A.04, and, if the required federal waiver or waivers 
  2.20  are granted, the federal earned income tax credit under section 
  2.21  32 of the Internal Revenue Code; 
  2.22     (9) to the Minnesota department of economic security for 
  2.23  the purpose of monitoring the eligibility of the data subject 
  2.24  for reemployment insurance, for any employment or training 
  2.25  program administered, supervised, or certified by that agency, 
  2.26  or for the purpose of administering any rehabilitation program, 
  2.27  whether alone or in conjunction with the welfare system, and to 
  2.28  verify receipt of energy assistance for the telephone assistance 
  2.29  plan; 
  2.30     (10) to appropriate parties in connection with an emergency 
  2.31  if knowledge of the information is necessary to protect the 
  2.32  health or safety of the individual or other individuals or 
  2.33  persons; 
  2.34     (11) data maintained by residential programs as defined in 
  2.35  section 245A.02 may be disclosed to the protection and advocacy 
  2.36  system established in this state pursuant according to Part C of 
  3.1   Public Law Number 98-527 to protect the legal and human rights 
  3.2   of persons with mental retardation or other related conditions 
  3.3   who live in residential facilities for these persons if the 
  3.4   protection and advocacy system receives a complaint by or on 
  3.5   behalf of that person and the person does not have a legal 
  3.6   guardian or the state or a designee of the state is the legal 
  3.7   guardian of the person; 
  3.8      (12) to the county medical examiner or the county coroner 
  3.9   for identifying or locating relatives or friends of a deceased 
  3.10  person; 
  3.11     (13) data on a child support obligor who makes payments to 
  3.12  the public agency may be disclosed to the higher education 
  3.13  services office to the extent necessary to determine eligibility 
  3.14  under section 136A.121, subdivision 2, clause (5); 
  3.15     (14) participant social security numbers and names 
  3.16  collected by the telephone assistance program may be disclosed 
  3.17  to the department of revenue to conduct an electronic data match 
  3.18  with the property tax refund database to determine eligibility 
  3.19  under section 237.70, subdivision 4a; 
  3.20     (15) the current address of a recipient of aid to families 
  3.21  with dependent children may be disclosed to law enforcement 
  3.22  officers who provide the name and social security number of the 
  3.23  recipient and satisfactorily demonstrate that:  (i) the 
  3.24  recipient is a fugitive felon, including the grounds for this 
  3.25  determination; (ii) the location or apprehension of the felon is 
  3.26  within the law enforcement officer's official duties; and (iii) 
  3.27  the request is made in writing and in the proper exercise of 
  3.28  those duties; 
  3.29     (16) the current address of a recipient of general 
  3.30  assistance, work readiness, or general assistance medical care 
  3.31  may be disclosed to probation officers and corrections agents 
  3.32  who are supervising the recipient, and to law enforcement 
  3.33  officers who are investigating the recipient in connection with 
  3.34  a felony level offense; 
  3.35     (17) information obtained from food stamp applicant or 
  3.36  recipient households may be disclosed to local, state, or 
  4.1   federal law enforcement officials, upon their written request, 
  4.2   for the purpose of investigating an alleged violation of the 
  4.3   food stamp act, in accordance with Code of Federal Regulations, 
  4.4   title 7, section 272.1(c); 
  4.5      (18) data on a child support obligor who is in arrears may 
  4.6   be disclosed for purposes of publishing the data pursuant 
  4.7   according to section 518.575; 
  4.8      (19) data on child support payments made by a child support 
  4.9   obligor may be disclosed to the obligee; 
  4.10     (20) data in the work reporting system may be disclosed 
  4.11  under section 256.998, subdivision 7; 
  4.12     (21) to the department of children, families, and learning 
  4.13  for the purpose of matching department of children, families, 
  4.14  and learning student data with public assistance data to 
  4.15  determine students eligible for free and reduced price meals, 
  4.16  meal supplements, and free milk pursuant according to United 
  4.17  States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
  4.18  and 1773; to produce accurate numbers of students receiving aid 
  4.19  to families with dependent children in effect until January 1, 
  4.20  1998, as required by section 124.175; and to allocate federal 
  4.21  and state funds that are distributed based on income of the 
  4.22  student's family; or 
  4.23     (22) the current address and telephone number of program 
  4.24  recipients and emergency contacts may be released to the 
  4.25  commissioner of health or a local board of health as defined in 
  4.26  section 145A.02, subdivision 2, when the commissioner or local 
  4.27  board of health has reason to believe that a program recipient 
  4.28  is a disease case, carrier, suspect case, or at risk of illness, 
  4.29  and the data are necessary to locate the person. 
  4.30     (b) Information on persons who have been treated for drug 
  4.31  or alcohol abuse may only be disclosed in accordance with 
  4.32  according to the requirements of Code of Federal Regulations, 
  4.33  title 42, sections 2.1 to 2.67. 
  4.34     (c) Data provided to law enforcement agencies under 
  4.35  paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
  4.36  investigative data and are confidential or protected nonpublic 
  5.1   while the investigation is active.  The data are private after 
  5.2   the investigation becomes inactive under section 13.82, 
  5.3   subdivision 5, paragraph (a) or (b). 
  5.4      (d) Mental health data shall be treated as provided in 
  5.5   subdivisions 7, 8, and 9, but is not subject to the access 
  5.6   provisions of subdivision 10, paragraph (b). 
  5.7      Sec. 2.  Minnesota Statutes 1996, section 13.82, 
  5.8   subdivision 1, is amended to read: 
  5.9      Subdivision 1.  [APPLICATION.] This section shall apply to 
  5.10  agencies which carry on a law enforcement function, including 
  5.11  but not limited to municipal police departments, county sheriff 
  5.12  departments, fire departments, the bureau of criminal 
  5.13  apprehension, the Minnesota state patrol, the board of peace 
  5.14  officer standards and training, the department of commerce, and 
  5.15  the department of labor and industry fraud investigation unit, 
  5.16  the program integrity section of, and county human service 
  5.17  agency client and provider fraud prevention and control units 
  5.18  operated or supervised by the department of human services.  
  5.19     Sec. 3.  Minnesota Statutes 1996, section 256.01, 
  5.20  subdivision 2, is amended to read: 
  5.21     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
  5.22  section 241.021, subdivision 2, the commissioner of human 
  5.23  services shall: 
  5.24     (1) Administer and supervise all forms of public assistance 
  5.25  provided for by state law and other welfare activities or 
  5.26  services as are vested in the commissioner.  Administration and 
  5.27  supervision of human services activities or services includes, 
  5.28  but is not limited to, assuring timely and accurate distribution 
  5.29  of benefits, completeness of service, and quality program 
  5.30  management.  In addition to administering and supervising human 
  5.31  services activities vested by law in the department, the 
  5.32  commissioner shall have the authority to: 
  5.33     (a) require county agency participation in training and 
  5.34  technical assistance programs to promote compliance with 
  5.35  statutes, rules, federal laws, regulations, and policies 
  5.36  governing human services; 
  6.1      (b) monitor, on an ongoing basis, the performance of county 
  6.2   agencies in the operation and administration of human services, 
  6.3   enforce compliance with statutes, rules, federal laws, 
  6.4   regulations, and policies governing welfare services and promote 
  6.5   excellence of administration and program operation; 
  6.6      (c) develop a quality control program or other monitoring 
  6.7   program to review county performance and accuracy of benefit 
  6.8   determinations; 
  6.9      (d) require county agencies to make an adjustment to the 
  6.10  public assistance benefits issued to any individual consistent 
  6.11  with federal law and regulation and state law and rule and to 
  6.12  issue or recover benefits as appropriate; 
  6.13     (e) delay or deny payment of all or part of the state and 
  6.14  federal share of benefits and administrative reimbursement 
  6.15  according to the procedures set forth in section 256.017; and 
  6.16     (f) make contracts with and grants to public and private 
  6.17  agencies and organizations, both profit and nonprofit, and 
  6.18  individuals, using appropriated funds. 
  6.19     (2) Inform county agencies, on a timely basis, of changes 
  6.20  in statute, rule, federal law, regulation, and policy necessary 
  6.21  to county agency administration of the programs. 
  6.22     (3) Administer and supervise all child welfare activities; 
  6.23  promote the enforcement of laws protecting handicapped, 
  6.24  dependent, neglected and delinquent children, and children born 
  6.25  to mothers who were not married to the children's fathers at the 
  6.26  times of the conception nor at the births of the children; 
  6.27  license and supervise child-caring and child-placing agencies 
  6.28  and institutions; supervise the care of children in boarding and 
  6.29  foster homes or in private institutions; and generally perform 
  6.30  all functions relating to the field of child welfare now vested 
  6.31  in the state board of control. 
  6.32     (4) Administer and supervise all noninstitutional service 
  6.33  to handicapped persons, including those who are visually 
  6.34  impaired, hearing impaired, or physically impaired or otherwise 
  6.35  handicapped.  The commissioner may provide and contract for the 
  6.36  care and treatment of qualified indigent children in facilities 
  7.1   other than those located and available at state hospitals when 
  7.2   it is not feasible to provide the service in state hospitals. 
  7.3      (5) Assist and actively cooperate with other departments, 
  7.4   agencies and institutions, local, state, and federal, by 
  7.5   performing services in conformity with the purposes of Laws 
  7.6   1939, chapter 431. 
  7.7      (6) Act as the agent of and cooperate with the federal 
  7.8   government in matters of mutual concern relative to and in 
  7.9   conformity with the provisions of Laws 1939, chapter 431, 
  7.10  including the administration of any federal funds granted to the 
  7.11  state to aid in the performance of any functions of the 
  7.12  commissioner as specified in Laws 1939, chapter 431, and 
  7.13  including the promulgation of rules making uniformly available 
  7.14  medical care benefits to all recipients of public assistance, at 
  7.15  such times as the federal government increases its participation 
  7.16  in assistance expenditures for medical care to recipients of 
  7.17  public assistance, the cost thereof to be borne in the same 
  7.18  proportion as are grants of aid to said recipients. 
  7.19     (7) Establish and maintain any administrative units 
  7.20  reasonably necessary for the performance of administrative 
  7.21  functions common to all divisions of the department. 
  7.22     (8) Act as designated guardian of both the estate and the 
  7.23  person of all the wards of the state of Minnesota, whether by 
  7.24  operation of law or by an order of court, without any further 
  7.25  act or proceeding whatever, except as to persons committed as 
  7.26  mentally retarded.  
  7.27     (9) Act as coordinating referral and informational center 
  7.28  on requests for service for newly arrived immigrants coming to 
  7.29  Minnesota. 
  7.30     (10) The specific enumeration of powers and duties as 
  7.31  hereinabove set forth shall in no way be construed to be a 
  7.32  limitation upon the general transfer of powers herein contained. 
  7.33     (11) Establish county, regional, or statewide schedules of 
  7.34  maximum fees and charges which may be paid by county agencies 
  7.35  for medical, dental, surgical, hospital, nursing and nursing 
  7.36  home care and medicine and medical supplies under all programs 
  8.1   of medical care provided by the state and for congregate living 
  8.2   care under the income maintenance programs. 
  8.3      (12) Have the authority to conduct and administer 
  8.4   experimental projects to test methods and procedures of 
  8.5   administering assistance and services to recipients or potential 
  8.6   recipients of public welfare.  To carry out such experimental 
  8.7   projects, it is further provided that the commissioner of human 
  8.8   services is authorized to waive the enforcement of existing 
  8.9   specific statutory program requirements, rules, and standards in 
  8.10  one or more counties.  The order establishing the waiver shall 
  8.11  provide alternative methods and procedures of administration, 
  8.12  shall not be in conflict with the basic purposes, coverage, or 
  8.13  benefits provided by law, and in no event shall the duration of 
  8.14  a project exceed four years.  It is further provided that no 
  8.15  order establishing an experimental project as authorized by the 
  8.16  provisions of this section shall become effective until the 
  8.17  following conditions have been met: 
  8.18     (a) The proposed comprehensive plan, including estimated 
  8.19  project costs and the proposed order establishing the waiver, 
  8.20  shall be filed with the secretary of the senate and chief clerk 
  8.21  of the house of representatives at least 60 days prior to its 
  8.22  effective date. 
  8.23     (b) The secretary of health, education, and welfare of the 
  8.24  United States has agreed, for the same project, to waive state 
  8.25  plan requirements relative to statewide uniformity. 
  8.26     (c) A comprehensive plan, including estimated project 
  8.27  costs, shall be approved by the legislative advisory commission 
  8.28  and filed with the commissioner of administration.  
  8.29     (13) In accordance with According to federal requirements, 
  8.30  establish procedures to be followed by local welfare boards in 
  8.31  creating citizen advisory committees, including procedures for 
  8.32  selection of committee members. 
  8.33     (14) Allocate federal fiscal disallowances or sanctions 
  8.34  which are based on quality control error rates for the aid to 
  8.35  families with dependent children in effect until January 1, 
  8.36  1998, medical assistance, or food stamp program in the following 
  9.1   manner:  
  9.2      (a) One-half of the total amount of the disallowance shall 
  9.3   be borne by the county boards responsible for administering the 
  9.4   programs.  For the medical assistance and AFDC programs in 
  9.5   effect until January 1, 1998, disallowances shall be shared by 
  9.6   each county board in the same proportion as that county's 
  9.7   expenditures for the sanctioned program are to the total of all 
  9.8   counties' expenditures for the AFDC program in effect until 
  9.9   January 1, 1998, and medical assistance programs program.  For 
  9.10  the food stamp program, sanctions shall be shared by each county 
  9.11  board, with 50 percent of the sanction being distributed to each 
  9.12  county in the same proportion as that county's administrative 
  9.13  costs for food stamps are to the total of all food stamp 
  9.14  administrative costs for all counties, and 50 percent of the 
  9.15  sanctions being distributed to each county in the same 
  9.16  proportion as that county's value of food stamp benefits issued 
  9.17  are to the total of all benefits issued for all counties.  Each 
  9.18  county shall pay its share of the disallowance to the state of 
  9.19  Minnesota.  When a county fails to pay the amount due hereunder, 
  9.20  the commissioner may deduct the amount from reimbursement 
  9.21  otherwise due the county, or the attorney general, upon the 
  9.22  request of the commissioner, may institute civil action to 
  9.23  recover the amount due. 
  9.24     (b) Notwithstanding the provisions of paragraph (a), if the 
  9.25  disallowance results from knowing noncompliance by one or more 
  9.26  counties with a specific program instruction, and that knowing 
  9.27  noncompliance is a matter of official county board record, the 
  9.28  commissioner may require payment or recover from the county or 
  9.29  counties, in the manner prescribed in paragraph (a), an amount 
  9.30  equal to the portion of the total disallowance which resulted 
  9.31  from the noncompliance, and may distribute the balance of the 
  9.32  disallowance according to paragraph (a).  
  9.33     (15) Develop and implement special projects that maximize 
  9.34  reimbursements and result in the recovery of money to the 
  9.35  state.  For the purpose of recovering state money, the 
  9.36  commissioner may enter into contracts with third parties.  Any 
 10.1   recoveries that result from projects or contracts entered into 
 10.2   under this paragraph shall be deposited in the state treasury 
 10.3   and credited to a special account until the balance in the 
 10.4   account reaches $1,000,000.  When the balance in the account 
 10.5   exceeds $1,000,000, the excess shall be transferred and credited 
 10.6   to the general fund.  All money in the account is appropriated 
 10.7   to the commissioner for the purposes of this paragraph. 
 10.8      (16) Have the authority to make direct payments to 
 10.9   facilities providing shelter to women and their children 
 10.10  pursuant according to section 256D.05, subdivision 3.  Upon the 
 10.11  written request of a shelter facility that has been denied 
 10.12  payments under section 256D.05, subdivision 3, the commissioner 
 10.13  shall review all relevant evidence and make a determination 
 10.14  within 30 days of the request for review regarding issuance of 
 10.15  direct payments to the shelter facility.  Failure to act within 
 10.16  30 days shall be considered a determination not to issue direct 
 10.17  payments. 
 10.18     (17) Have the authority to establish and enforce the 
 10.19  following county reporting requirements:  
 10.20     (a) The commissioner shall establish fiscal and statistical 
 10.21  reporting requirements necessary to account for the expenditure 
 10.22  of funds allocated to counties for human services programs.  
 10.23  When establishing financial and statistical reporting 
 10.24  requirements, the commissioner shall evaluate all reports, in 
 10.25  consultation with the counties, to determine if the reports can 
 10.26  be simplified or the number of reports can be reduced. 
 10.27     (b) The county board shall submit monthly or quarterly 
 10.28  reports to the department as required by the commissioner.  
 10.29  Monthly reports are due no later than 15 working days after the 
 10.30  end of the month.  Quarterly reports are due no later than 30 
 10.31  calendar days after the end of the quarter, unless the 
 10.32  commissioner determines that the deadline must be shortened to 
 10.33  20 calendar days to avoid jeopardizing compliance with federal 
 10.34  deadlines or risking a loss of federal funding.  Only reports 
 10.35  that are complete, legible, and in the required format shall be 
 10.36  accepted by the commissioner.  
 11.1      (c) If the required reports are not received by the 
 11.2   deadlines established in clause (b), the commissioner may delay 
 11.3   payments and withhold funds from the county board until the next 
 11.4   reporting period.  When the report is needed to account for the 
 11.5   use of federal funds and the late report results in a reduction 
 11.6   in federal funding, the commissioner shall withhold from the 
 11.7   county boards with late reports an amount equal to the reduction 
 11.8   in federal funding until full federal funding is received.  
 11.9      (d) A county board that submits reports that are late, 
 11.10  illegible, incomplete, or not in the required format for two out 
 11.11  of three consecutive reporting periods is considered 
 11.12  noncompliant.  When a county board is found to be noncompliant, 
 11.13  the commissioner shall notify the county board of the reason the 
 11.14  county board is considered noncompliant and request that the 
 11.15  county board develop a corrective action plan stating how the 
 11.16  county board plans to correct the problem.  The corrective 
 11.17  action plan must be submitted to the commissioner within 45 days 
 11.18  after the date the county board received notice of noncompliance.
 11.19     (e) The final deadline for fiscal reports or amendments to 
 11.20  fiscal reports is one year after the date the report was 
 11.21  originally due.  If the commissioner does not receive a report 
 11.22  by the final deadline, the county board forfeits the funding 
 11.23  associated with the report for that reporting period and the 
 11.24  county board must repay any funds associated with the report 
 11.25  received for that reporting period. 
 11.26     (f) The commissioner may not delay payments, withhold 
 11.27  funds, or require repayment under paragraph (c) or (e) if the 
 11.28  county demonstrates that the commissioner failed to provide 
 11.29  appropriate forms, guidelines, and technical assistance to 
 11.30  enable the county to comply with the requirements.  If the 
 11.31  county board disagrees with an action taken by the commissioner 
 11.32  under paragraph (c) or (e), the county board may appeal the 
 11.33  action according to sections 14.57 to 14.69. 
 11.34     (g) Counties subject to withholding of funds under 
 11.35  paragraph (c) or forfeiture or repayment of funds under 
 11.36  paragraph (e) shall not reduce or withhold benefits or services 
 12.1   to clients to cover costs incurred due to actions taken by the 
 12.2   commissioner under paragraph (c) or (e). 
 12.3      (18) Allocate federal fiscal disallowances or sanctions for 
 12.4   audit exceptions when federal fiscal disallowances or sanctions 
 12.5   are based on a statewide random sample for the foster care 
 12.6   program under title IV-E of the Social Security Act, United 
 12.7   States Code, title 42, in direct proportion to each county's 
 12.8   title IV-E foster care maintenance claim for that period. 
 12.9      (19) Be responsible for ensuring the detection, prevention, 
 12.10  investigation, and resolution of fraudulent activities or 
 12.11  behavior by applicants, recipients, and other participants in 
 12.12  the human services programs administered by the department. 
 12.13     (20) Require county agencies to identify overpayments, 
 12.14  establish claims and utilize all available and cost-beneficial 
 12.15  methodologies to collect and recover these overpayments in the 
 12.16  human services programs administered by the department. 
 12.17     Sec. 4.  Minnesota Statutes 1996, section 256.017, 
 12.18  subdivision 2, is amended to read: 
 12.19     Subd. 2.  [DEFINITIONS.] The following terms have the 
 12.20  meanings given for the purpose purposes of this section. 
 12.21     (a) "Administrative penalty" means an adjustment against 
 12.22  the county agency's state and federal benefit and federal 
 12.23  administrative reimbursement when the commissioner determines 
 12.24  that the county agency is not in compliance with the policies 
 12.25  and procedures established by the commissioner. 
 12.26     (b) "Quality control case penalty" means an adjustment 
 12.27  against the county agency's federal administrative reimbursement 
 12.28  and state and federal benefit reimbursement when the 
 12.29  commissioner determines through a quality control review that 
 12.30  the county agency has made incorrect payments, terminations, or 
 12.31  denials of benefits as determined by state quality control 
 12.32  procedures for the aid to families with dependent children in 
 12.33  effect until January 1, 1998, Minnesota family investment 
 12.34  program-statewide, food stamp, or medical assistance programs, 
 12.35  or any other programs for which the commissioner has developed a 
 12.36  quality control system.  Quality control case penalties apply 
 13.1   only to agency errors as defined by state quality control 
 13.2   procedures. 
 13.3      (c) "Quality control control/quality assurance" means a 
 13.4   review system of a statewide random sample of cases, designed to 
 13.5   provide data on program outcomes and the accuracy with which 
 13.6   state and federal policies are being applied in issuing benefits 
 13.7   and as a fiscal audit to ensure the accuracy of expenditures.  
 13.8   The quality control control/quality assurance system is 
 13.9   administered by the department.  For the aid to families with 
 13.10  dependent children in effect until January 1, 1998, Minnesota 
 13.11  family investment program-statewide, food stamp, and medical 
 13.12  assistance programs, the quality control system is that required 
 13.13  by federal regulation, or those developed by the commissioner. 
 13.14     Sec. 5.  Minnesota Statutes 1996, section 256.019, is 
 13.15  amended to read: 
 13.16     256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 
 13.17     When an amount is recovered from any source for assistance 
 13.18  given under the provisions governing public assistance programs 
 13.19  including aid to families with dependent children, MFIP-S, 
 13.20  general assistance medical care, emergency assistance, general 
 13.21  assistance, work readiness, and Minnesota supplemental aid, 
 13.22  there shall be paid to the United States the amount due under 
 13.23  the terms of the Social Security Act and the balance must be 
 13.24  paid into the treasury of the state or county in accordance with 
 13.25  current rates of financial participation; except the county may 
 13.26  keep one-half of recovery made by the county agency using any 
 13.27  method other than recoupment.  For medical assistance, if the 
 13.28  recovery is made by a county agency using any method other than 
 13.29  recoupment, the county may keep one-half of the nonfederal share 
 13.30  of the recovery.  This does not apply to recoveries from medical 
 13.31  providers or to recoveries begun by the department of human 
 13.32  services' surveillance and utilization review division, state 
 13.33  hospital collections unit, and the benefit recoveries division 
 13.34  or, by the attorney general's office, or child support 
 13.35  collections.  In the food stamp program, the nonfederal share of 
 13.36  recoveries in the federal tax refund offset program (FTROP) only 
 14.1   will be divided equally between the state agency and the 
 14.2   involved county agency. 
 14.3      Sec. 6.  Minnesota Statutes 1996, section 256.045, 
 14.4   subdivision 3, is amended to read: 
 14.5      Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
 14.6   hearings are available for the following:  (1) any person 
 14.7   applying for, receiving or having received public assistance, 
 14.8   medical care, or a program of social services granted by the 
 14.9   state agency or a county agency under sections 252.32, 256.031 
 14.10  to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E, 
 14.11  261, or the federal Food Stamp Act whose application for 
 14.12  assistance is denied, not acted upon with reasonable promptness, 
 14.13  or whose assistance is suspended, reduced, terminated, or 
 14.14  claimed to have been incorrectly paid; (2) any patient or 
 14.15  relative aggrieved by an order of the commissioner under section 
 14.16  252.27; (3) a party aggrieved by a ruling of a prepaid health 
 14.17  plan; (4) any individual or facility determined by a lead agency 
 14.18  to have maltreated a vulnerable adult under section 626.557 
 14.19  after they have exercised their right to administrative 
 14.20  reconsideration under section 626.557; (5) any person whose 
 14.21  claim for foster care payment pursuant according to a placement 
 14.22  of the child resulting from a child protection assessment under 
 14.23  section 626.556 is denied or not acted upon with reasonable 
 14.24  promptness, regardless of funding source; (6) any person to whom 
 14.25  a right of appeal pursuant according to this section is given by 
 14.26  other provision of law; or (7) an applicant aggrieved by an 
 14.27  adverse decision to an application for a hardship waiver under 
 14.28  section 256B.15.  The failure to exercise the right to an 
 14.29  administrative reconsideration shall not be a bar to a hearing 
 14.30  under this section if federal law provides an individual the 
 14.31  right to a hearing to dispute a finding of maltreatment.  
 14.32  Individuals and organizations specified in this section may 
 14.33  contest the specified action, decision, or final disposition 
 14.34  before the state agency by submitting a written request for a 
 14.35  hearing to the state agency within 30 days after receiving 
 14.36  written notice of the action, decision, or final disposition, or 
 15.1   within 90 days of such written notice if the applicant, 
 15.2   recipient, patient, or relative shows good cause why the request 
 15.3   was not submitted within the 30-day time limit. 
 15.4      The hearing for an individual or facility under clause (4) 
 15.5   is the only administrative appeal to the final lead agency 
 15.6   disposition specifically, including a challenge to the accuracy 
 15.7   and completeness of data under section 13.04.  Hearings 
 15.8   requested under clause (4) apply only to incidents of 
 15.9   maltreatment that occur on or after October 1, 1995.  Hearings 
 15.10  requested by nursing assistants in nursing homes alleged to have 
 15.11  maltreated a resident prior to October 1, 1995, shall be held as 
 15.12  a contested case proceeding under the provisions of chapter 14. 
 15.13     For purposes of this section, bargaining unit grievance 
 15.14  procedures are not an administrative appeal. 
 15.15     The scope of hearings involving claims to foster care 
 15.16  payments under clause (5) shall be limited to the issue of 
 15.17  whether the county is legally responsible for a child's 
 15.18  placement under court order or voluntary placement agreement 
 15.19  and, if so, the correct amount of foster care payment to be made 
 15.20  on the child's behalf and shall not include review of the 
 15.21  propriety of the county's child protection determination or 
 15.22  child placement decision. 
 15.23     (b) Except for a prepaid health plan, a vendor of medical 
 15.24  care as defined in section 256B.02, subdivision 7, or a vendor 
 15.25  under contract with a county agency to provide social services 
 15.26  under section 256E.08, subdivision 4, is not a party and may not 
 15.27  request a hearing under this section, except if assisting a 
 15.28  recipient as provided in subdivision 4. 
 15.29     (c) An applicant or recipient is not entitled to receive 
 15.30  social services beyond the services included in the amended 
 15.31  community social services plan developed under section 256E.081, 
 15.32  subdivision 3, if the county agency has met the requirements in 
 15.33  section 256E.081. 
 15.34     (d) The commissioner may summarily affirm the county or 
 15.35  state agency's proposed action without a hearing when the sole 
 15.36  issue is an automatic change due to a change in state or federal 
 16.1   law. 
 16.2      Sec. 7.  Minnesota Statutes 1996, section 256.046, is 
 16.3   amended to read: 
 16.4      256.046 [ADMINISTRATIVE FRAUD DISQUALIFICATION HEARINGS.] 
 16.5      Subdivision 1.  [HEARING AUTHORITY.] A local agency may 
 16.6   shall initiate an administrative fraud disqualification hearing 
 16.7   for individuals accused of wrongfully obtaining assistance or 
 16.8   intentional program violations, in lieu of a criminal action, in 
 16.9   the aid to families with dependent children in effect until 
 16.10  January 1, 1998, MFIP-S, child care, general assistance, family 
 16.11  general assistance, Minnesota supplemental aid, medical care, or 
 16.12  food stamp programs.  The hearing is subject to the requirements 
 16.13  of section 256.045 and the requirements in Code of Federal 
 16.14  Regulations, title 7, section 273.16, for the food stamp program 
 16.15  and title 45, section 235.112, as of September 30, 1995, for the 
 16.16  aid to families with dependent children program cash grant and 
 16.17  medical care programs. 
 16.18     Subd. 2.  [COMBINED HEARING.] The referee may combine a 
 16.19  fair hearing and administrative fraud disqualification hearing 
 16.20  into a single hearing if the factual issues arise out of the 
 16.21  same, or related, circumstances and the individual receives 
 16.22  prior notice that the hearings will be combined.  If the 
 16.23  administrative fraud disqualification hearing and fair hearing 
 16.24  are combined, the time frames for administrative fraud 
 16.25  disqualification hearings set forth specified in Code of Federal 
 16.26  Regulations, title 7, section 273.16, and title 45, section 
 16.27  235.112, as of September 30, 1995, apply.  If the individual 
 16.28  accused of wrongfully obtaining assistance is charged under 
 16.29  section 256.98 for the same act or acts which are the subject of 
 16.30  the hearing, the individual may request that the hearing be 
 16.31  delayed until the criminal charge is decided by the court or 
 16.32  withdrawn. 
 16.33     Sec. 8.  [256.0471] [OVERPAYMENTS BECOME JUDGMENTS BY 
 16.34  OPERATION OF LAW.] 
 16.35     Subdivision 1.  [QUALIFYING OVERPAYMENT.] Any overpayment 
 16.36  for assistance granted under sections 256.031 to 256.0361, 
 17.1   256.72 to 256.871, and 256H.05; chapters 256B, 256D, 256I, 256J, 
 17.2   and 256K; and the food stamp program, except agency error 
 17.3   claims, become a judgment by operation of law 90 days after the 
 17.4   notice of overpayment is personally served upon the recipient in 
 17.5   a manner that is sufficient under rule 4.03(a) of the Rules of 
 17.6   Civil Procedure for district courts, or by certified mail, 
 17.7   return receipt requested.  This judgment shall be entitled to 
 17.8   full faith and credit in this and any other state. 
 17.9      Subd. 2.  [OVERPAYMENTS INCLUDED.] This section is limited 
 17.10  to overpayments for which notification is issued within the time 
 17.11  period specified under section 541.05. 
 17.12     Subd. 3.  [NOTIFICATION REQUIREMENTS.] A judgment is only 
 17.13  obtained after: 
 17.14     (1) a notice of overpayment has been personally served on 
 17.15  the recipient or former recipient in a manner sufficient under 
 17.16  rule 4.03(a) of the Rules of Civil Procedure for district 
 17.17  courts, or mailed to the recipient or former recipient certified 
 17.18  mail return receipt requested; and 
 17.19     (2) the time period under section 256.045, subdivision 3, 
 17.20  has elapsed without a request for a hearing, or a hearing 
 17.21  decision has been rendered under section 256.045 or 256.046 
 17.22  which concludes the existence of an overpayment that meets the 
 17.23  requirements of this section. 
 17.24     Subd. 4.  [NOTICE OF OVERPAYMENT.] The notice of 
 17.25  overpayment shall include the amount and cause of the 
 17.26  overpayment, appeal rights, and an explanation of the 
 17.27  consequences of the judgment that will be established if an 
 17.28  appeal is not filed timely or if the administrative hearing 
 17.29  decision establishes that there is in overpayment which 
 17.30  qualifies for judgment. 
 17.31     Subd. 5.  [JUDGMENTS ENTERED AND DOCKETED.] A judgment 
 17.32  shall be entered and docketed under section 548.09 only after 
 17.33  there has been at least three months that have elapsed since: 
 17.34     (1) the notice of overpayment was served on the recipient 
 17.35  pursuant to subdivision 3; and 
 17.36     (2) the last time a monthly recoupment was applied to the 
 18.1   overpayment. 
 18.2      Subd. 6.  [DOCKETING OF OVERPAYMENTS.] On or after the date 
 18.3   an unpaid overpayment becomes a judgment by operation of law 
 18.4   under subdivision 1, the agency or public authority may file 
 18.5   with the court administrator: 
 18.6      (1) a statement identifying, or a copy of, the overpayment 
 18.7   notice which provides for an appeal process and requires payment 
 18.8   of the overpayment; 
 18.9      (2) proof of service of the notice of overpayment; 
 18.10     (3) an affidavit of default, stating the full name, 
 18.11  occupation, place of residence, and last known post office 
 18.12  address of the debtor; the name and post office address of the 
 18.13  agency or public authority; the date or dates the overpayment 
 18.14  was incurred; the program that was overpaid; and the total 
 18.15  amount of the judgment; and 
 18.16     (4) an affidavit of service of a notice of entry of 
 18.17  judgment shall be made by first class mail at the address where 
 18.18  the debtor was served with the notice of overpayment.  Service 
 18.19  is completed upon mailing in the manner designated. 
 18.20     Subd. 7.  [DOES NOT IMPEDE OTHER METHODS.] Nothing in this 
 18.21  section shall be construed to impede or restrict alternative 
 18.22  recovery methods for these overpayments or overpayments which do 
 18.23  not meet the requirements of this section. 
 18.24     Sec. 9.  Minnesota Statutes 1996, section 256.98, 
 18.25  subdivision 1, is amended to read: 
 18.26     Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
 18.27  who commits any of the following acts or omissions is guilty of 
 18.28  theft and shall be sentenced under section 609.52, subdivision 
 18.29  3, clauses (1) to (5): 
 18.30     (1) obtains, or attempts to obtain, or aids or abets any 
 18.31  person to obtain by means of a willfully false statement or 
 18.32  representation, by intentional concealment of a any material 
 18.33  fact, or by impersonation or other fraudulent device, assistance 
 18.34  or the continued receipt of assistance, to include child care or 
 18.35  vouchers produced according to sections 145.891 to 145.897 and 
 18.36  MinnesotaCare services according to sections 256.9351 to 
 19.1   256.966, to which the person is not entitled or assistance 
 19.2   greater than that to which the person is entitled, or who; 
 19.3      (2) knowingly aids or abets in buying or in any way 
 19.4   disposing of the property of a recipient or applicant of 
 19.5   assistance without the consent of the county agency with intent 
 19.6   to defeat the purposes of sections 145.891 to 145.897, 256.12, 
 19.7   256.031 to 256.0361, 256.72 to 256.871, and 256.9351 to 256.966, 
 19.8   child care, the MFIP-S, chapter 256B, 256D, 256J, or 256K, or 
 19.9   all of these sections is guilty of theft and shall be sentenced 
 19.10  pursuant to section 609.52, subdivision 3, clauses (2), (3)(a) 
 19.11  and (c), (4), and (5).  
 19.12     The continued receipt of assistance to which the person is 
 19.13  not entitled or greater than that to which the person is 
 19.14  entitled as a result of any of the acts, failure to act, or 
 19.15  concealment described in this subdivision shall be deemed to be 
 19.16  continuing offenses from the date that the first act or failure 
 19.17  to act occurred. 
 19.18     Sec. 10.  Minnesota Statutes 1996, section 256.98, 
 19.19  subdivision 4, is amended to read: 
 19.20     Subd. 4.  [RECOVERY OF ASSISTANCE.] The amount of 
 19.21  assistance determined to have been incorrectly paid is 
 19.22  recoverable from: 
 19.23     (1) the recipient or the recipient's estate by the county 
 19.24  or the state as a debt due the county or the state or both in 
 19.25  proportion to the contribution of each.; and 
 19.26     (2) any person found to have taken independent action to 
 19.27  establish eligibility for, conspired with, or aided and abetted, 
 19.28  any recipient of public assistance found to have been 
 19.29  incorrectly paid. 
 19.30     The obligations established under this subdivision shall be 
 19.31  joint and several and shall extend to all cases involving client 
 19.32  error as well as cases involving wrongfully obtained assistance. 
 19.33     Sec. 11.  Minnesota Statutes 1996, section 256.98, 
 19.34  subdivision 8, is amended to read: 
 19.35     Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
 19.36  to be guilty of wrongfully obtaining assistance by a federal or 
 20.1   state court or by an administrative hearing determination, or 
 20.2   waiver thereof, through a disqualification consent agreement, or 
 20.3   as part of any approved diversion plan under section 401.065, or 
 20.4   any court ordered stay which carries with it any probationary or 
 20.5   other conditions, in the aid to families with dependent children 
 20.6   program in effect until January 1, 1998, the Minnesota family 
 20.7   assistance program-statewide, the food stamp program, the 
 20.8   Minnesota family investment plan, child care program, the 
 20.9   general assistance or family general assistance program, or the 
 20.10  Minnesota supplemental aid program, or the work readiness 
 20.11  program shall be disqualified from that program.  The needs of 
 20.12  that individual shall not be taken into consideration in 
 20.13  determining the grant level for that assistance unit:  
 20.14     (1) for six months one year after the first offense; 
 20.15     (2) for 12 months two years after the second offense; and 
 20.16     (3) permanently after the third or subsequent offense.  
 20.17     The period of program disqualification shall begin on the 
 20.18  date stipulated on the advance notice of disqualification 
 20.19  without possibility of postponement for administrative stay or 
 20.20  administrative hearing and shall continue through completion 
 20.21  unless and until the findings upon which the sanctions were 
 20.22  imposed are reversed by a court of competent jurisdiction.  The 
 20.23  period for which sanctions are imposed is not subject to 
 20.24  review.  The sanctions provided under this subdivision are in 
 20.25  addition to, and not in substitution for, any other sanctions 
 20.26  that may be provided for by law for the offense involved.  A 
 20.27  disqualification established through hearing or waiver shall 
 20.28  result in the disqualification period beginning immediately 
 20.29  unless the person has become otherwise ineligible for 
 20.30  assistance.  If the person is ineligible for assistance, the 
 20.31  disqualification period begins when the person again meets the 
 20.32  eligibility criteria of the program from which they were 
 20.33  disqualified and makes application for that program. 
 20.34     Sec. 12.  Minnesota Statutes 1996, section 256.983, 
 20.35  subdivision 1, is amended to read: 
 20.36     Subdivision 1.  [PROGRAMS ESTABLISHED.] Within the limits 
 21.1   of available appropriations, and to the extent required or 
 21.2   authorized by applicable federal regulations, the commissioner 
 21.3   of human services shall require the establishment maintenance of 
 21.4   budget neutral fraud prevention investigation programs in the 
 21.5   seven counties participating in the fraud prevention 
 21.6   investigation pilot project established under this section, and 
 21.7   in 11 additional Minnesota counties with the largest aid to 
 21.8   families with dependent children program caseloads as of July 1, 
 21.9   1991.  If funds are sufficient, the commissioner may also extend 
 21.10  fraud prevention investigation programs to:  (1) other 
 21.11  counties that have welfare fraud control programs already in 
 21.12  place based on enhanced funding contracts covering the fraud 
 21.13  investigation function; and (2) counties that have the largest 
 21.14  AFDC caseloads as of July 1, 1994, and are not currently 
 21.15  participating in the fraud prevention investigation pilot 
 21.16  project.  The pilot project may be expanded provided the 
 21.17  expansion is budget neutral to the state. 
 21.18     Sec. 13.  Minnesota Statutes 1996, section 256.983, 
 21.19  subdivision 4, is amended to read: 
 21.20     Subd. 4.  [FUNDING.] (a) Every involved county agency shall 
 21.21  either have in place or obtain an approved contract which meets 
 21.22  all federal requirements necessary to obtain enhanced federal 
 21.23  funding for its welfare fraud control and fraud prevention 
 21.24  investigation programs.  County agency reimbursement shall be 
 21.25  made through the settlement provisions applicable to the aid to 
 21.26  families with dependent children and program in effect until 
 21.27  January 1, 1998, food stamp programs program, Minnesota family 
 21.28  investment program-statewide, and medical assistance program and 
 21.29  other federal and state funded programs. 
 21.30     (b) After allowing an opportunity to establish compliance, 
 21.31  The commissioner will deny administrative reimbursement maintain 
 21.32  program compliance if for any three-month three consecutive 
 21.33  month period during any grant year, a county agency fails to 
 21.34  comply with fraud prevention investigation program guidelines, 
 21.35  or fails to meet the cost-effectiveness standards developed by 
 21.36  the commissioner.  This result is contingent on the commissioner 
 22.1   providing written notice, including an offer of technical 
 22.2   assistance, within 30 days of the end of the third or subsequent 
 22.3   month of noncompliance.  The county agency shall be required to 
 22.4   submit a corrective action plan to the commissioner within 30 
 22.5   days of receipt of a notice of noncompliance.  Failure to submit 
 22.6   a corrective action plan or, continued deviation from standards 
 22.7   of more than ten percent after submission of a corrective action 
 22.8   plan, will result in denial of funding for each subsequent month 
 22.9   during the grant year, or billing the county agency for fraud 
 22.10  prevention investigation (FPI) service provided by the 
 22.11  commissioner, or reallocation of program grant funds, or 
 22.12  investigative resources, or both, to other counties.  The denial 
 22.13  of funding shall apply to the general settlement received by the 
 22.14  county agency on a quarterly basis and shall not reduce the 
 22.15  grant amount applicable to the FPI project.  
 22.16     Sec. 14.  Minnesota Statutes 1996, section 256.984, 
 22.17  subdivision 1, is amended to read: 
 22.18     Subdivision 1.  [DECLARATION.] Every application for public 
 22.19  assistance under this chapter and/or chapters 256B, 256D, 256K, 
 22.20  MFIP-S program, and food stamps under chapter 393 shall be in 
 22.21  writing or reduced to writing as prescribed by the state agency 
 22.22  and shall contain the following declaration which shall be 
 22.23  signed by the applicant: 
 22.24     "I declare under the penalties of perjury that this 
 22.25     application has been examined by me and to the best of my 
 22.26     knowledge is a true and correct statement of every material 
 22.27     point.  I understand that a person convicted of perjury may 
 22.28     be sentenced to imprisonment of not more than five years or 
 22.29     to payment of a fine of not more than $10,000, or both." 
 22.30     Sec. 15.  Minnesota Statutes 1996, section 256.986, is 
 22.31  amended to read: 
 22.32     256.986 [COUNTY COORDINATION OF FRAUD CONTROL ACTIVITIES.] 
 22.33     (a) The county agency shall prepare and submit to the 
 22.34  commissioner of human services by January 1 April 30 of each 
 22.35  state fiscal year a plan to coordinate county duties related to 
 22.36  the prevention, investigation, and prosecution of fraud in 
 23.1   public assistance programs.  Plans may be submitted on a 
 23.2   voluntary basis prior to January 1, 1996.  Each county must 
 23.3   submit its first annual plan prior to January 1, 1997 April 30, 
 23.4   1998. 
 23.5      (b) Within the limits of appropriations specifically made 
 23.6   available for this purpose, the commissioner may make grants to 
 23.7   counties submitting plans under paragraph (a) to implement 
 23.8   coordination activities. 
 23.9      Sec. 16.  Minnesota Statutes 1996, section 256.9861, 
 23.10  subdivision 1, is amended to read: 
 23.11     Subdivision 1.  [PROGRAM ESTABLISHED.] Within the limits of 
 23.12  available state and federal appropriations, and to the extent 
 23.13  required or authorized by applicable federal regulations, the 
 23.14  commissioner of human services shall make funding available to 
 23.15  county agencies for the establishment of program integrity 
 23.16  reinvestment initiatives.  The project shall initially be 
 23.17  limited to those county agencies participating in federally 
 23.18  funded optional fraud control programs as of January 1, 
 23.19  1995 fraud control efforts and require the maintenance of county 
 23.20  efforts and financial contribution that were in place during 
 23.21  fiscal year 1996.  
 23.22     Sec. 17.  Minnesota Statutes 1996, section 256.9861, 
 23.23  subdivision 2, is amended to read: 
 23.24     Subd. 2.  [COUNTY PROPOSALS.] Each included county shall 
 23.25  develop and submit annual funding, staffing, and operating grant 
 23.26  proposals to the commissioner no later than April 30 of each 
 23.27  year for the purpose of allocating federal and state funding and 
 23.28  appropriations.  For the first operating year only, the proposal 
 23.29  shall be submitted no later than October 30.  Each proposal 
 23.30  shall provide information on: 
 23.31     (1) the staffing and funding of the fraud investigation and 
 23.32  prosecution operations; 
 23.33     (2) job descriptions for agency fraud control staff; 
 23.34     (3) contracts covering outside investigative agencies; 
 23.35     (4) operational methods to integrate the use of fraud 
 23.36  prevention investigation techniques; and 
 24.1      (5) implementation and utilization of administrative 
 24.2   disqualification hearings and diversions into by the existing 
 24.3   county fraud control and prosecution procedures.  
 24.4      Sec. 18.  Minnesota Statutes 1996, section 256.9861, 
 24.5   subdivision 4, is amended to read: 
 24.6      Subd. 4.  [STANDARDS.] The commissioner shall, after 
 24.7   consultation with the involved counties, establish standards 
 24.8   governing the performance levels of involved county 
 24.9   investigative units based on grant agreements negotiated with 
 24.10  the involved county agencies.  The standards shall take into 
 24.11  consideration and may include investigative caseloads, grant 
 24.12  savings levels, the comparison of fraud prevention and 
 24.13  prosecution directed investigations, utilization levels of 
 24.14  administrative disqualification hearings, the timely reporting 
 24.15  and implementation of disqualifications, and the timeliness 
 24.16  of the submission of statistical reports received from 
 24.17  prosecutors.  
 24.18     Sec. 19.  Minnesota Statutes 1996, section 256.9861, 
 24.19  subdivision 5, is amended to read: 
 24.20     Subd. 5.  [FUNDING.] (a) Grant funds are intended to help 
 24.21  offset the reduction in federal financial participation to 50 
 24.22  percent and may be apportioned to the participating counties 
 24.23  whenever feasible, and within the commissioner's discretion, to 
 24.24  achieve this goal.  State funding shall be made available 
 24.25  contingent on counties submitting a plan that is approved by the 
 24.26  department of human services.  Failure or delay in obtaining 
 24.27  that approval shall not, however, eliminate the obligation to 
 24.28  maintain fraud control efforts at the January 1, 1995 June 30, 
 24.29  1996, level.  Additional counties may be added to the project to 
 24.30  the extent that funds are subsequently made available.  Every 
 24.31  involved county must meet all federal requirements necessary to 
 24.32  obtain federal funding for its welfare fraud control and 
 24.33  prevention programs.  County agency reimbursement shall be made 
 24.34  through the settlement provisions applicable to the AFDC and 
 24.35  MFIP-S, food stamp and medical assistance programs.  
 24.36     (b) Should a county agency fail to comply with the 
 25.1   standards set, or fail to meet cost-effectiveness standards 
 25.2   developed by the commissioner for three months during any grant 
 25.3   year any three-month period, the commissioner shall deny 
 25.4   reimbursement or administrative costs, after allowing an 
 25.5   opportunity to establish compliance.  
 25.6      (c) Any denial of reimbursement under paragraph (b) is 
 25.7   contingent on the commissioner providing written notice, 
 25.8   including an offer of technical assistance, within 30 days of 
 25.9   the end of the third or subsequent months of noncompliance.  The 
 25.10  county agency shall be required to submit a corrective action 
 25.11  plan to the commissioner within 30 days of receipt of a notice 
 25.12  of noncompliance.  Failure to submit a corrective action plan or 
 25.13  continued deviation from standards of more than ten percent 
 25.14  after submission of corrective action plan, will result in 
 25.15  denial of funding for each such month during the grant year, or 
 25.16  billing of the county agency for program integrity reinvestment 
 25.17  project services provided by the commissioner or reallocation of 
 25.18  grant funds to other counties.  The denial of funding shall 
 25.19  apply to the general settlement received by the county agency on 
 25.20  a quarterly basis and shall not reduce the grant amount 
 25.21  applicable to the program integrity reinvestment project. 
 25.22     Sec. 20.  [256.9863] [ASSISTANCE TRANSACTION CARD; 
 25.23  PRESUMPTION OF RECEIPT OF BENEFITS.] 
 25.24     Any person in whose name an assistance transaction card has 
 25.25  been issued shall be presumed to have received the benefit of 
 25.26  all transactions involving that card.  This presumption applies 
 25.27  in all situations unless the card in question has been reported 
 25.28  lost or stolen by the cardholder.  This presumption may be 
 25.29  overcome by a preponderance of evidence indicating that the card 
 25.30  was neither used by nor with the consent of the cardholder.  
 25.31  Overcoming this presumption does not create any new or 
 25.32  additional payment obligation not otherwise established in law, 
 25.33  rule, or regulation. 
 25.34     Sec. 21.  [256.9864] [REPORTS BY RECIPIENT.] 
 25.35     (a) An assistance unit with a recent work history or with 
 25.36  earned income shall report monthly to the county agency on 
 26.1   income received and other circumstances affecting eligibility or 
 26.2   assistance amounts.  All other assistance units shall report on 
 26.3   income and other circumstances affecting eligibility and 
 26.4   assistance amounts, as specified by the state agency. 
 26.5      (b) An assistance unit required to submit a report on the 
 26.6   form designated by the commissioner and within ten days of the 
 26.7   due date or the date of the significant change, whichever is 
 26.8   later, or otherwise report significant changes which would 
 26.9   affect eligibility or assistance amounts, is considered to have 
 26.10  continued its application for assistance effective the date the 
 26.11  required report is received by the county agency, if a complete 
 26.12  report is received within a calendar month in which assistance 
 26.13  was received, except that no assistance shall be paid for the 
 26.14  period beginning with the end of the month in which the report 
 26.15  was due and ending with the date the report was received by the 
 26.16  county agency. 
 26.17     Sec. 22.  [256.9865] [RECOVERY OF OVERPAYMENTS AND ATM 
 26.18  ERRORS.] 
 26.19     Subdivision 1.  [OBLIGATION TO RECOVER.] If an amount of 
 26.20  MFIP-S assistance is paid to a recipient in excess of the 
 26.21  payment due, it shall be recoverable by the county agency.  This 
 26.22  recovery authority also extends to preexisting claims or newly 
 26.23  discovered claims established under the AFDC program in effect 
 26.24  on January 1, 1997.  The agency shall give written notice to the 
 26.25  recipient of its intention to recover the overpayment.  County 
 26.26  agency efforts and financial contributions shall be maintained 
 26.27  at the level in place during fiscal year 1996. 
 26.28     Subd. 2.  [RECOUPMENT.] When an overpayment occurs, the 
 26.29  county agency shall recover the overpayment from a current 
 26.30  recipient by reducing the amount of aid payable to the 
 26.31  assistance unit of which the recipient is a member for one or 
 26.32  more monthly assistance payments until the overpayment is 
 26.33  repaid.  All county agencies in the state shall reduce the 
 26.34  assistance payment by three percent of the assistance unit's 
 26.35  standard of need in nonfraud cases and ten percent where fraud 
 26.36  has occurred.  For recipients receiving benefits via electronic 
 27.1   benefits transfer, if the overpayment is a result of an 
 27.2   automated teller machine (ATM) dispensing funds in error to the 
 27.3   recipient, the agency may recover the ATM error by immediately 
 27.4   withdrawing funds from the recipient's electronic benefit 
 27.5   transfer account, up to the amount of the error.  In cases where 
 27.6   there is both an overpayment and underpayment, the county agency 
 27.7   shall offset one against the other in correcting the payment. 
 27.8      Subd. 3.  [VOLUNTARY REPAYMENTS.] Overpayments may also be 
 27.9   voluntarily repaid, in part or in full, by the individual, in 
 27.10  addition to the aid reductions in subdivision 2, to include 
 27.11  further voluntary reductions in the grant level agreed to in 
 27.12  writing by the individual, until the total amount of the 
 27.13  overpayment is repaid. 
 27.14     Subd. 4.  [CLOSED CASE RECOVERIES.] The county agency shall 
 27.15  make reasonable efforts to recover overpayments to persons no 
 27.16  longer on assistance according to standards adopted by rule by 
 27.17  the commissioner of human services.  The county agency need not 
 27.18  attempt to recover overpayments of less than $35 paid to an 
 27.19  individual no longer on assistance unless the individual has 
 27.20  been convicted of fraud under section 256.98. 
 27.21     Sec. 23.  [256.9866] [COMMUNITY SERVICE AS A COUNTY 
 27.22  OBLIGATION.] 
 27.23     Community service shall be an acceptable sentencing option 
 27.24  but shall not reduce the state or federal share of any amount to 
 27.25  be repaid or any subsequent recovery.  Any reduction or offset 
 27.26  of any such amount ordered by a court shall be treated as 
 27.27  follows: 
 27.28     (1) any reduction in an overpayment amount, to include the 
 27.29  amount ordered as restitution, shall not reduce the underlying 
 27.30  amount established as an overpayment by the state or county 
 27.31  agency; 
 27.32     (2) total overpayments shall continue as a debt owed and 
 27.33  may be recovered by any civil or administrative means otherwise 
 27.34  available to the state or county agency; and 
 27.35     (3) any amount ordered to be offset against any overpayment 
 27.36  shall be deducted from the county share only of any recovery and 
 28.1   shall be based on the prevailing state minimum wage.  To the 
 28.2   extent that any deduction is in fact made against any state or 
 28.3   county share, it shall be reimbursed from the county share of 
 28.4   payments to be made under section 256.025. 
 28.5      Sec. 24.  Minnesota Statutes 1996, section 256D.09, 
 28.6   subdivision 6, is amended to read: 
 28.7      Subd. 6.  [RECOVERY OF OVERPAYMENTS.] (a) If an amount of 
 28.8   general assistance or family general assistance is paid to a 
 28.9   recipient in excess of the payment due, it shall be recoverable 
 28.10  by the county agency.  The agency shall give written notice to 
 28.11  the recipient of its intention to recover the overpayment. 
 28.12     (b) When an overpayment occurs, the county agency shall 
 28.13  recover the overpayment from a current recipient by reducing the 
 28.14  amount of aid payable to the assistance unit of which the 
 28.15  recipient is a member, for one or more monthly assistance 
 28.16  payments, until the overpayment is repaid.  All county agencies 
 28.17  in the state shall reduce the assistance payment by three 
 28.18  percent of the assistance unit's standard of need in nonfraud 
 28.19  cases and ten percent where fraud has occurred, or the amount of 
 28.20  the monthly payment, whichever is less, for all overpayments. 
 28.21  whether or not the overpayment is due solely to agency error.  
 28.22  The amount of this reduction is ten percent, if the overpayment 
 28.23  is due solely to having wrongfully obtained assistance, whether 
 28.24  based on: 
 28.25     (1) a court order; 
 28.26     (2) the finding of an administrative fraud disqualification 
 28.27  hearing or the waiver of such a hearing; or 
 28.28     (3) a confession or judgment containing an admission of an 
 28.29  intentional program violation. 
 28.30     (c) In cases when there is both an overpayment and 
 28.31  underpayment, the county agency shall offset one against the 
 28.32  other in correcting the payment. 
 28.33     (d) Overpayments may also be voluntarily repaid, in part or 
 28.34  in full, by the individual, in addition to the aid reductions 
 28.35  provided in this subdivision, to include further voluntary 
 28.36  reductions in the grant level agreed to in writing by the 
 29.1   individual, until the total amount of the overpayment is repaid. 
 29.2      (e) The county agency shall make reasonable efforts to 
 29.3   recover overpayments to persons no longer on assistance under 
 29.4   standards adopted in rule by the commissioner of human 
 29.5   services.  The county agency need not attempt to recover 
 29.6   overpayments of less than $35 paid to an individual no longer on 
 29.7   assistance if the individual does not receive assistance again 
 29.8   within three years, unless the individual has been convicted of 
 29.9   violating section 256.98. 
 29.10     Sec. 25.  Minnesota Statutes 1996, section 270A.03, 
 29.11  subdivision 5, is amended to read: 
 29.12     Subd. 5.  [DEBT.] "Debt" means a legal obligation of a 
 29.13  natural person to pay a fixed and certain amount of money, which 
 29.14  equals or exceeds $25 and which is due and payable to a claimant 
 29.15  agency.  The term includes criminal fines imposed under section 
 29.16  609.10 or 609.125 and restitution.  A debt may arise under a 
 29.17  contractual or statutory obligation, a court order, or other 
 29.18  legal obligation, but need not have been reduced to judgment.  
 29.19     A debt does not include includes any legal obligation of a 
 29.20  current recipient of assistance which is based on overpayment of 
 29.21  an assistance grant where that payment is based on a client 
 29.22  waiver or an administrative or judicial finding of an 
 29.23  intentional program violation; or where the debt is owed to a 
 29.24  program wherein the debtor is not a client at the time 
 29.25  notification is provided to initiate recovery under this chapter 
 29.26  and the debtor is not a current recipient of food stamps, 
 29.27  transitional child care, or transitional medical assistance. 
 29.28     A debt does not include any legal obligation to pay a 
 29.29  claimant agency for medical care, including hospitalization if 
 29.30  the income of the debtor at the time when the medical care was 
 29.31  rendered does not exceed the following amount: 
 29.32     (1) for an unmarried debtor, an income of $6,400 or less; 
 29.33     (2) for a debtor with one dependent, an income of $8,200 or 
 29.34  less; 
 29.35     (3) for a debtor with two dependents, an income of $9,700 
 29.36  or less; 
 30.1      (4) for a debtor with three dependents, an income of 
 30.2   $11,000 or less; 
 30.3      (5) for a debtor with four dependents, an income of $11,600 
 30.4   or less; and 
 30.5      (6) for a debtor with five or more dependents, an income of 
 30.6   $12,100 or less.  
 30.7      The income amounts in this subdivision shall be adjusted 
 30.8   for inflation for debts incurred in calendar years 1991 and 
 30.9   thereafter.  The dollar amount of each income level that applied 
 30.10  to debts incurred in the prior year shall be increased in the 
 30.11  same manner as provided in section 290.06, subdivision 2d, for 
 30.12  the expansion of the tax rate brackets. 
 30.13     Sec. 26.  Minnesota Statutes 1996, section 388.23, 
 30.14  subdivision 1, is amended to read: 
 30.15     Subdivision 1.  [AUTHORITY.] The county attorney, or any 
 30.16  deputy or assistant county attorney whom the county attorney 
 30.17  authorizes in writing, has the authority to subpoena and require 
 30.18  the production of any records of telephone companies, cellular 
 30.19  phone companies, paging companies, electric companies, gas 
 30.20  companies, water utilities, chemical suppliers, hotels and 
 30.21  motels, pawn shops, airlines, buses, taxis, and other entities 
 30.22  engaged in the business of transporting people, and freight 
 30.23  companies, warehousing companies, self-service storage 
 30.24  facilities, package delivery companies, and other entities 
 30.25  engaged in the businesses of transport, storage, or delivery, 
 30.26  and records of the existence of safe deposit box account numbers 
 30.27  and customer savings and checking account numbers maintained by 
 30.28  financial institutions and safe deposit companies, insurance 
 30.29  records relating to the monetary payment or settlement of 
 30.30  claims, and wage and employment records of an applicant or 
 30.31  recipient of public assistance who is the subject of a welfare 
 30.32  fraud investigation relating to eligibility information for 
 30.33  public assistance programs.  Subpoenas may only be issued for 
 30.34  records that are relevant to an ongoing legitimate law 
 30.35  enforcement investigation.  Administrative subpoenas may only be 
 30.36  issued in welfare fraud cases if there is probable cause to 
 31.1   believe a crime has been committed.  This provision applies only 
 31.2   to the records of business entities and does not extend to 
 31.3   private individuals or their dwellings.  Subpoenas may only be 
 31.4   served by peace officers as defined by section 626.84, 
 31.5   subdivision 1, paragraph (c). 
 31.6      Sec. 27.  Minnesota Statutes 1996, section 393.07, 
 31.7   subdivision 10, is amended to read: 
 31.8      Subd. 10.  [FEDERAL FOOD STAMP PROGRAM AND THE MATERNAL AND 
 31.9   CHILD NUTRITION ACT.] (a) The local social services agency shall 
 31.10  establish and administer the food stamp program pursuant 
 31.11  according to rules of the commissioner of human services, the 
 31.12  supervision of the commissioner as specified in section 256.01, 
 31.13  and all federal laws and regulations.  The commissioner of human 
 31.14  services shall monitor food stamp program delivery on an ongoing 
 31.15  basis to ensure that each county complies with federal laws and 
 31.16  regulations.  Program requirements to be monitored include, but 
 31.17  are not limited to, number of applications, number of approvals, 
 31.18  number of cases pending, length of time required to process each 
 31.19  application and deliver benefits, number of applicants eligible 
 31.20  for expedited issuance, length of time required to process and 
 31.21  deliver expedited issuance, number of terminations and reasons 
 31.22  for terminations, client profiles by age, household composition 
 31.23  and income level and sources, and the use of phone certification 
 31.24  and home visits.  The commissioner shall determine the 
 31.25  county-by-county and statewide participation rate.  
 31.26     (b) On July 1 of each year, the commissioner of human 
 31.27  services shall determine a statewide and county-by-county food 
 31.28  stamp program participation rate.  The commissioner may 
 31.29  designate a different agency to administer the food stamp 
 31.30  program in a county if the agency administering the program 
 31.31  fails to increase the food stamp program participation rate 
 31.32  among families or eligible individuals, or comply with all 
 31.33  federal laws and regulations governing the food stamp program.  
 31.34  The commissioner shall review agency performance annually to 
 31.35  determine compliance with this paragraph. 
 31.36     (c) A person who commits any of the following acts has 
 32.1   violated section 256.98 or 609.821, or both, and is subject to 
 32.2   both the criminal and civil penalties provided under those 
 32.3   sections: 
 32.4      (1) obtains or attempts to obtain, or aids or abets any 
 32.5   person to obtain by means of a willfully false willful statement 
 32.6   or representation misrepresentation, or intentional concealment 
 32.7   of a material fact, food stamps or vouchers issued according to 
 32.8   sections 145.891 to 145.897 to which the person is not entitled 
 32.9   or in an amount greater than that to which that person is 
 32.10  entitled or which specify nutritional supplements to which that 
 32.11  person is not entitled; or 
 32.12     (2) presents or causes to be presented, coupons or vouchers 
 32.13  issued according to sections 145.891 to 145.897 for payment or 
 32.14  redemption knowing them to have been received, transferred or 
 32.15  used in a manner contrary to existing state or federal law; or 
 32.16     (3) willfully uses, possesses, or transfers food stamp 
 32.17  coupons or, authorization to purchase cards or vouchers issued 
 32.18  according to sections 145.891 to 145.897 in any manner contrary 
 32.19  to existing state or federal law, rules, or regulations; or 
 32.20     (4) buys or sells food stamp coupons, authorization to 
 32.21  purchase cards or, other assistance transaction devices, 
 32.22  vouchers issued according to sections 145.891 to 145.897, or any 
 32.23  food obtained through the redemption of vouchers issued 
 32.24  according to sections 145.891 to 145.897 for cash or 
 32.25  consideration other than eligible food. 
 32.26     (d) A peace officer or welfare fraud investigator may 
 32.27  confiscate food stamps, authorization to purchase cards, or 
 32.28  other assistance transaction devices found in the possession of 
 32.29  any person who is neither a recipient of the food stamp program 
 32.30  nor otherwise authorized to possess and use such materials.  
 32.31  Confiscated property shall be disposed of as the commissioner 
 32.32  may direct and consistent with state and federal food stamp 
 32.33  law.  The confiscated property must be retained for a period of 
 32.34  not less than 30 days to allow any affected person to appeal the 
 32.35  confiscation under section 256.045. 
 32.36     (e) Food stamp overpayment claims which are due in whole or 
 33.1   in part to client error shall be established by the county 
 33.2   agency for a period of six years from the date of any resultant 
 33.3   overpayment.  
 33.4      (f) With regard to the federal tax revenue offset program 
 33.5   only, recovery incentives authorized by the federal food and 
 33.6   consumer service shall be retained at the rate of 50 percent by 
 33.7   the state agency and 50 percent by the certifying county agency. 
 33.8      (g) A peace officer, welfare fraud investigator, federal 
 33.9   law enforcement official, or the commissioner of health may 
 33.10  confiscate vouchers found in the possession of any person who is 
 33.11  neither issued vouchers under sections 145.891 to 145.897, nor 
 33.12  otherwise authorized to possess and use such vouchers.  
 33.13  Confiscated property shall be disposed of as the commissioner of 
 33.14  health may direct and consistent with state and federal law.  
 33.15  The confiscated property must be retained for a period of not 
 33.16  less than 30 days. 
 33.17     Sec. 28.  [FUNDING AVAILABILITY.] 
 33.18     Unexpended funds appropriated for the provision of program 
 33.19  integrity activities for fiscal year 1998 will also be available 
 33.20  to the commissioner to fund fraud prevention and control 
 33.21  initiatives and do not cancel but are available to the 
 33.22  commissioner for these purposes for fiscal year 1999.  
 33.23  Unexpended funds may be transferred between the fraud prevention 
 33.24  investigation program and fraud control programs to promote the 
 33.25  provisions of sections 256.983 and 256.9861. 
 33.26     Sec. 29.  [EFFECTIVE DATE.] 
 33.27     Sections 1 to 28 are effective July 1, 1997. 
 33.28                             ARTICLE 2
 33.29        ACCESS TO CHILD SUPPORT ENFORCEMENT CENTRAL REGISTRY
 33.30     Section 1.  Minnesota Statutes 1996, section 13.99, is 
 33.31  amended by adding a subdivision to read: 
 33.32     Subd. 100b.  [ACCESS TO CHILD SUPPORT ENFORCEMENT CENTRAL 
 33.33  REGISTRY.] Data on newly hired employees maintained by the 
 33.34  responsible authority for child support enforcement are governed 
 33.35  by section 256.998. 
 33.36     Sec. 2.  Minnesota Statutes 1996, section 256.998, is 
 34.1   amended by adding a subdivision to read: 
 34.2      Subd. 10.  [USE OF WORK REPORTING SYSTEM INFORMATION IN 
 34.3   DETERMINING ELIGIBILITY FOR PUBLIC ASSISTANCE PROGRAMS.] The 
 34.4   commissioner of human services is authorized to use information 
 34.5   from the work reporting system to determine eligibility for 
 34.6   applicants and recipients of public assistance programs 
 34.7   administered by the department of human services.  Data 
 34.8   including names, dates of birth, and social security numbers of 
 34.9   people applying for or receiving public assistance benefits will 
 34.10  be compared to the work reporting system information to 
 34.11  determine if applicants or recipients of public assistance are 
 34.12  employed.  County agencies will be notified of discrepancies in 
 34.13  information obtained from the work reporting system. 
 34.14     Sec. 3.  Minnesota Statutes 1996, section 256.998, is 
 34.15  amended by adding a subdivision to read: 
 34.16     Subd. 11.  [ACTION ON INFORMATION.] Upon receipt of the 
 34.17  discrepant information, county agencies will notify clients of 
 34.18  the information and request verification of employment status 
 34.19  and earnings.  County agencies must attempt to resolve the 
 34.20  discrepancy within 45 days of receipt of the information. 
 34.21     Sec. 4.  Minnesota Statutes 1996, section 256.998, is 
 34.22  amended by adding a subdivision to read: 
 34.23     Subd. 12.  [CLIENT NOTIFICATION.] Persons applying for 
 34.24  public assistance programs administered by the department of 
 34.25  human services will be notified at the time of application that 
 34.26  data including their name, date of birth, and social security 
 34.27  number will be shared with the work reporting system to 
 34.28  determine possible employment.  All current public assistance 
 34.29  recipients will be notified of this provision prior to its 
 34.30  implementation. 
 34.31     Sec. 5.  [256.9981] [NOTICE TO UNDOCUMENTED PERSONS.] 
 34.32     County agencies, in consultation with the department of 
 34.33  human services, shall develop a protocol regarding the release 
 34.34  or sharing of data about undocumented persons with the 
 34.35  Immigration and Naturalization Service (INS) as stated under 
 34.36  sections 404, 434, and 411A of the Personal Responsibility and 
 35.1   Work Opportunity Reconciliation Act of 1996. 
 35.2      Sec. 6.  [EFFECTIVE DATE.] 
 35.3      Sections 1 to 5 are effective July 1, 1997.