2nd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to human services; making technical changes 1.3 to cross-references in statutes; clarifying certain 1.4 requirements; amending Minnesota Statutes 1998, 1.5 sections 13.46, subdivisions 1 and 2; 16D.02, 1.6 subdivision 3; 16D.13, subdivision 3; 84.98, 1.7 subdivision 3; 119A.54; 119B.01, subdivisions 2, 10, 1.8 12, 13, 15, and 16; 119B.02, subdivision 1; 119B.03, 1.9 subdivisions 3 and 4; 119B.05, subdivision 1; 119B.07; 1.10 119B.075; 119B.08, subdivision 3; 119B.09, 1.11 subdivisions 1, 3, and 7; 119B.14; 119B.15; 136A.125, 1.12 subdivision 2; 145.415, subdivision 3; 145.93, 1.13 subdivision 3; 196.27; 237.70, subdivision 4a; 1.14 245.4871, subdivision 25; 252.28, subdivision 3a; 1.15 254B.02, subdivision 1; 256.01, subdivisions 2 and 4; 1.16 256.017, subdivisions 1, 2, and 4; 256.019; 256.025, 1.17 subdivision 2; 256.046, subdivision 1; 256.0471, 1.18 subdivision 1; 256.741, subdivisions 1 and 2; 256.82, 1.19 subdivision 2; 256.935, subdivision 1; 256.98, 1.20 subdivisions 1 and 8; 256.981; 256.983, subdivision 4; 1.21 256.9861, subdivision 5; 256B.031, subdivisions 4 and 1.22 5; 256B.69, subdivision 5a; 256C.21; 256C.23, 1.23 subdivision 1; 256D.01, subdivisions 1a and 1e; 1.24 256D.05, subdivisions 1, 3, and 5; 256D.051, 1.25 subdivision 3a; 256D.055; 256D.23, subdivision 1; 1.26 256D.435, subdivision 3; 256D.44, subdivision 5; 1.27 256E.03, subdivision 2; 256E.06, subdivisions 1 and 3; 1.28 256E.07, subdivision 1; 256E.08, subdivision 3; 1.29 256F.05, subdivisions 3 and 8; 256F.10, subdivision 6; 1.30 256F.13, subdivision 3; 256G.01, subdivision 4; 1.31 256G.03, subdivision 2; 256J.01, subdivision 1; 1.32 256J.11, subdivisions 1 and 2; 256J.12, subdivision 1; 1.33 256J.21, subdivision 3; 256J.26, subdivisions 1, 2, 3, 1.34 and 4; 256J.42, subdivisions 1 and 5; 256J.43, 1.35 subdivision 1; 256J.50, subdivision 3a; 256J.62, 1.36 subdivisions 3, 6, and 7; 256J.76, subdivision 1; 1.37 256K.01, subdivisions 2, 3, and 8; 256K.015; 256K.02; 1.38 256K.03, subdivisions 1 and 12; 256K.04, subdivision 1.39 2; 256K.05, subdivision 2; 256K.06; 256K.07; 256K.08, 1.40 subdivision 1; 256L.11, subdivision 4; 257.33, 1.41 subdivision 2; 257.3573, subdivision 2; 257.60; 1.42 257.85, subdivisions 3, 5, 7, and 11; 259.67, 1.43 subdivision 4; 260.38; 261.063; 268.0111, subdivisions 1.44 5 and 7; 268.0122, subdivision 3; 268.552, subdivision 1.45 5; 268.672, subdivision 6; 268.86, subdivision 2; 1.46 268.871, subdivision 1; 268.90, subdivision 2; 268.95, 2.1 subdivision 4; 275.065, subdivision 5a; 290.067, 2.2 subdivision 1; 290A.03, subdivision 7; 393.07, 2.3 subdivision 6; 462A.205, subdivision 2; 462A.222, 2.4 subdivision 1a; 473.129, subdivision 8; 477A.0122, 2.5 subdivision 2; 501B.89, subdivision 2; 518.171, 2.6 subdivision 1; 518.551, subdivision 5; 518.57, 2.7 subdivision 3; 518.614, subdivision 3; 518.64, 2.8 subdivision 2; 548.13; 550.136, subdivision 6; 2.9 550.143, subdivision 3; 550.37, subdivision 14; 2.10 551.05, subdivision 1a; 551.06, subdivision 6; 2.11 570.025, subdivision 6; 570.026, subdivision 2; 2.12 571.72, subdivision 8; 571.912; 571.925; 571.931, 2.13 subdivision 6; 571.932, subdivision 2; and 583.22, 2.14 subdivision 7b; repealing Minnesota Statutes 1998, 2.15 sections 119B.01, subdivision 12a; 119B.05, 2.16 subdivision 6; 126C.05, subdivision 4; 126C.06; 2.17 256.031, subdivision 1a; 256.736; 256.74, subdivision 2.18 1c; 256.9850; 256J.62, subdivision 5; 268.871, 2.19 subdivision 5; and 290A.22; Minnesota Rules, parts 2.20 9500.2000; 9500.2020; 9500.2060; 9500.2100; 9500.2140; 2.21 9500.2180; 9500.2220; 9500.2260; 9500.2300; 9500.2340; 2.22 9500.2380; 9500.2420; 9500.2440; 9500.2480; 9500.2500; 2.23 9500.2520; 9500.2560; 9500.2580; 9500.2600; 9500.2620; 2.24 9500.2640; 9500.2680; 9500.2700; 9500.2720; 9500.2722; 2.25 9500.2724; 9500.2726; 9500.2728; 9500.2730; 9500.2740; 2.26 9500.2760; 9500.2780; 9500.2800; 9500.2820; 9500.2860; 2.27 and 9500.2880. 2.28 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.29 Section 1. Minnesota Statutes 1998, section 13.46, 2.30 subdivision 1, is amended to read: 2.31 Subdivision 1. [DEFINITIONS.] As used in this section: 2.32 (a) "Individual" means an individual according to section 2.33 13.02, subdivision 8, but does not include a vendor of services. 2.34 (b) "Program" includes all programs for which authority is 2.35 vested in a component of the welfare system according to statute 2.36 or federal law, including, but not limited to, the aid to 2.37 families with dependent children program formerly codified in 2.38 sections 256.72 to 256.87, Minnesota family investment 2.39 program-statewide, medical assistance, general assistance, 2.40 general assistance medical care, and child support collections. 2.41 (c) "Welfare system" includes the department of human 2.42 services, local social services agencies, county welfare 2.43 agencies, the public authority responsible for child support 2.44 enforcement, human services boards, community mental health 2.45 center boards, state hospitals, state nursing homes, the 2.46 ombudsman for mental health and mental retardation, and persons, 2.47 agencies, institutions, organizations, and other entities under 2.48 contract to any of the above agencies to the extent specified in 2.49 the contract. 3.1 (d) "Mental health data" means data on individual clients 3.2 and patients of community mental health centers, established 3.3 under section 245.62, mental health divisions of counties and 3.4 other providers under contract to deliver mental health 3.5 services, or the ombudsman for mental health and mental 3.6 retardation. 3.7 (e) "Fugitive felon" means a person who has been convicted 3.8 of a felony and who has escaped from confinement or violated the 3.9 terms of probation or parole for that offense. 3.10 Sec. 2. Minnesota Statutes 1998, section 13.46, 3.11 subdivision 2, is amended to read: 3.12 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 3.13 a statute specifically provides a different classification, data 3.14 on individuals collected, maintained, used, or disseminated by 3.15 the welfare system is private data on individuals, and shall not 3.16 be disclosed except: 3.17 (1) according to section 13.05; 3.18 (2) according to court order; 3.19 (3) according to a statute specifically authorizing access 3.20 to the private data; 3.21 (4) to an agent of the welfare system, including a law 3.22 enforcement person, attorney, or investigator acting for it in 3.23 the investigation or prosecution of a criminal or civil 3.24 proceeding relating to the administration of a program; 3.25 (5) to personnel of the welfare system who require the data 3.26 to determine eligibility, amount of assistance, and the need to 3.27 provide services of additional programs to the individual; 3.28 (6) to administer federal funds or programs; 3.29 (7) between personnel of the welfare system working in the 3.30 same program; 3.31 (8) the amounts of cash public assistance and relief paid 3.32 to welfare recipients in this state, including their names, 3.33 social security numbers, income, addresses, and other data as 3.34 required, upon request by the department of revenue to 3.35 administer the property tax refund law, supplemental housing 3.36 allowance, early refund of refundable tax credits, and the 4.1 income tax. "Refundable tax credits" means the dependent care 4.2 credit under section 290.067, the Minnesota working family 4.3 credit under section 290.0671, the property tax refund under 4.4 section 290A.04, and, if the required federal waiver or waivers 4.5 are granted, the federal earned income tax credit under section 4.6 32 of the Internal Revenue Code; 4.7 (9) between the department of human services and the 4.8 Minnesota department of economic security for the purpose of 4.9 monitoring the eligibility of the data subject for reemployment 4.10 insurance, for any employment or training program administered, 4.11 supervised, or certified by that agency, for the purpose of 4.12 administering any rehabilitation program, whether alone or in 4.13 conjunction with the welfare system, or to monitor and evaluate 4.14 the statewide Minnesota family investment program by exchanging 4.15 data on recipients and former recipients of food stamps, cash 4.16 assistance under chapter 256, 256D, 256J, or 256K, child care 4.17 assistance under chapter 119B, or medical programs under chapter 4.18 256B, 256D, or 256L; 4.19 (10) to appropriate parties in connection with an emergency 4.20 if knowledge of the information is necessary to protect the 4.21 health or safety of the individual or other individuals or 4.22 persons; 4.23 (11) data maintained by residential programs as defined in 4.24 section 245A.02 may be disclosed to the protection and advocacy 4.25 system established in this state according to Part C of Public 4.26 Law Number 98-527 to protect the legal and human rights of 4.27 persons with mental retardation or other related conditions who 4.28 live in residential facilities for these persons if the 4.29 protection and advocacy system receives a complaint by or on 4.30 behalf of that person and the person does not have a legal 4.31 guardian or the state or a designee of the state is the legal 4.32 guardian of the person; 4.33 (12) to the county medical examiner or the county coroner 4.34 for identifying or locating relatives or friends of a deceased 4.35 person; 4.36 (13) data on a child support obligor who makes payments to 5.1 the public agency may be disclosed to the higher education 5.2 services office to the extent necessary to determine eligibility 5.3 under section 136A.121, subdivision 2, clause (5); 5.4 (14) participant social security numbers and names 5.5 collected by the telephone assistance program may be disclosed 5.6 to the department of revenue to conduct an electronic data match 5.7 with the property tax refund database to determine eligibility 5.8 under section 237.70, subdivision 4a; 5.9 (15) the current address of a recipient of aid to families 5.10 with dependent children or Minnesota family investment 5.11 program-statewide may be disclosed to law enforcement officers 5.12 who provide the name of the recipient and notify the agency that: 5.13 (i) the recipient: 5.14 (A) is a fugitive felon fleeing to avoid prosecution, or 5.15 custody or confinement after conviction, for a crime or attempt 5.16 to commit a crime that is a felony under the laws of the 5.17 jurisdiction from which the individual is fleeing; or 5.18 (B) is violating a condition of probation or parole imposed 5.19 under state or federal law; 5.20 (ii) the location or apprehension of the felon is within 5.21 the law enforcement officer's official duties; and 5.22 (iii) the request is made in writing and in the proper 5.23 exercise of those duties; 5.24 (16) the current address of a recipient of general 5.25 assistance or general assistance medical care may be disclosed 5.26 to probation officers and corrections agents who are supervising 5.27 the recipient and to law enforcement officers who are 5.28 investigating the recipient in connection with a felony level 5.29 offense; 5.30 (17) information obtained from food stamp applicant or 5.31 recipient households may be disclosed to local, state, or 5.32 federal law enforcement officials, upon their written request, 5.33 for the purpose of investigating an alleged violation of the 5.34 Food Stamp Act, according to Code of Federal Regulations, title 5.35 7, section 272.1(c); 5.36 (18) the address, social security number, and, if 6.1 available, photograph of any member of a household receiving 6.2 food stamps shall be made available, on request, to a local, 6.3 state, or federal law enforcement officer if the officer 6.4 furnishes the agency with the name of the member and notifies 6.5 the agency that: 6.6 (i) the member: 6.7 (A) is fleeing to avoid prosecution, or custody or 6.8 confinement after conviction, for a crime or attempt to commit a 6.9 crime that is a felony in the jurisdiction the member is 6.10 fleeing; 6.11 (B) is violating a condition of probation or parole imposed 6.12 under state or federal law; or 6.13 (C) has information that is necessary for the officer to 6.14 conduct an official duty related to conduct described in subitem 6.15 (A) or (B); 6.16 (ii) locating or apprehending the member is within the 6.17 officer's official duties; and 6.18 (iii) the request is made in writing and in the proper 6.19 exercise of the officer's official duty; 6.20 (19) certain information regarding child support obligors 6.21 who are in arrears may be made public according to section 6.22 518.575; 6.23 (20) data on child support payments made by a child support 6.24 obligor and data on the distribution of those payments excluding 6.25 identifying information on obligees may be disclosed to all 6.26 obligees to whom the obligor owes support, and data on the 6.27 enforcement actions undertaken by the public authority, the 6.28 status of those actions, and data on the income of the obligor 6.29 or obligee may be disclosed to the other party; 6.30 (21) data in the work reporting system may be disclosed 6.31 under section 256.998, subdivision 7; 6.32 (22) to the department of children, families, and learning 6.33 for the purpose of matching department of children, families, 6.34 and learning student data with public assistance data to 6.35 determine students eligible for free and reduced price meals, 6.36 meal supplements, and free milk according to United States Code, 7.1 title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 7.2 produce accurate numbers of students receiving
aid to families7.3 with dependent children orassistance from the Minnesota family 7.4 investment program-statewideprogram as required by section 7.5 126C.06; to allocate federal and state funds that are 7.6 distributed based on income of the student's family; and to 7.7 verify receipt of energy assistance for the telephone assistance 7.8 plan; 7.9 (23) the current address and telephone number of program 7.10 recipients and emergency contacts may be released to the 7.11 commissioner of health or a local board of health as defined in 7.12 section 145A.02, subdivision 2, when the commissioner or local 7.13 board of health has reason to believe that a program recipient 7.14 is a disease case, carrier, suspect case, or at risk of illness, 7.15 and the data are necessary to locate the person; 7.16 (24) to other state agencies, statewide systems, and 7.17 political subdivisions of this state, including the attorney 7.18 general, and agencies of other states, interstate information 7.19 networks, federal agencies, and other entities as required by 7.20 federal regulation or law for the administration of the child 7.21 support enforcement program; 7.22 (25) to personnel of public assistance programs as defined 7.23 in section 256.741, for access to the child support system 7.24 database for the purpose of administration, including monitoring 7.25 and evaluation of those public assistance programs; or 7.26 (26) to monitor and evaluate the statewideMinnesota family 7.27 investment program by exchanging data between the departments of 7.28 human services and children, families, and learning, on 7.29 recipients and former recipients of food stamps, cash assistance 7.30 under chapter 256, 256D, 256J, or 256K, child care assistance 7.31 under chapter 119B, or medical programs under chapter 256B, 7.32 256D, or 256L. 7.33 (b) Information on persons who have been treated for drug 7.34 or alcohol abuse may only be disclosed according to the 7.35 requirements of Code of Federal Regulations, title 42, sections 7.36 2.1 to 2.67. 8.1 (c) Data provided to law enforcement agencies under 8.2 paragraph (a), clause (15), (16), (17), or (18), or paragraph 8.3 (b), are investigative data and are confidential or protected 8.4 nonpublic while the investigation is active. The data are 8.5 private after the investigation becomes inactive under section 8.6 13.82, subdivision 5, paragraph (a) or (b). 8.7 (d) Mental health data shall be treated as provided in 8.8 subdivisions 7, 8, and 9, but is not subject to the access 8.9 provisions of subdivision 10, paragraph (b). 8.10 Sec. 3. Minnesota Statutes 1998, section 16D.02, 8.11 subdivision 3, is amended to read: 8.12 Subd. 3. [DEBT.] "Debt" means an amount owed to the state 8.13 directly, or through a state agency, on account of a fee, duty, 8.14 lease, direct loan, loan insured or guaranteed by the state, 8.15 rent, service, sale of real or personal property, overpayment, 8.16 fine, assessment, penalty, restitution, damages, interest, tax, 8.17 bail bond, forfeiture, reimbursement, liability owed, an 8.18 assignment to the state including assignments under sections8.19 256.72 to 256.87section 256.741, the Social Security Act, or 8.20 other state or federal law, recovery of costs incurred by the 8.21 state, or any other source of indebtedness to the state. Debt 8.22 also includes amounts owed to individuals as a result of civil, 8.23 criminal, or administrative action brought by the state or a 8.24 state agency pursuant to its statutory authority or for which 8.25 the state or state agency acts in a fiduciary capacity in 8.26 providing collection services in accordance with the regulations 8.27 adopted under the Social Security Act at Code of Federal 8.28 Regulations, title 45, section 302.33. Debt also includes an 8.29 amount owed to the courts or University of Minnesota for which 8.30 the commissioner provides collection services pursuant to 8.31 contract. 8.32 Sec. 4. Minnesota Statutes 1998, section 16D.13, 8.33 subdivision 3, is amended to read: 8.34 Subd. 3. [EXCLUSION.] A state agency may not charge 8.35 interest under this section on overpayments of assistance 8.36 benefits under the programs formerly codified in sections 9.1 256.031 to 256.0361, 256.72 to 256.87, and under chapters 256D 9.2 and 256I, or the federal food stamp program. Notwithstanding 9.3 this prohibition, any debts that have been reduced to judgment 9.4 under these programs are subject to the interest charges 9.5 provided under section 549.09. 9.6 Sec. 5. Minnesota Statutes 1998, section 84.98, 9.7 subdivision 3, is amended to read: 9.8 Subd. 3. [CRITERIA FOR DETERMINING ECONOMIC, SOCIAL, 9.9 PHYSICAL, OR EDUCATIONAL DISADVANTAGE.] (a) The criteria for 9.10 determining economic, social, physical, or educational 9.11 disadvantage shall be determined as provided in this subdivision. 9.12 (b) Economically disadvantaged are persons who meet the 9.13 criteria for disadvantaged established by the department of 9.14 economic security or persons receiving services provided by the 9.15 department of human services such as welfare payments, food 9.16 stamps, aid to families with dependent childrenor Minnesota 9.17 family investment program-statewideprogram. 9.18 (c) Socially disadvantaged are persons who have been 9.19 classified as persons in need of supervision by the court system. 9.20 (d) Physically disadvantaged are persons who have been 9.21 identified as having special needs by public agencies that deal 9.22 with employment for the disabled. 9.23 (e) Educationally disadvantaged are persons who have 9.24 dropped out of school or are at risk of dropping out of school 9.25 and persons with learning disabilities or in need of special 9.26 education classes. 9.27 Sec. 6. Minnesota Statutes 1998, section 119A.54, is 9.28 amended to read: 9.29 119A.54 [REPORTS.] 9.30 Each grantee shall submit an annual report to the 9.31 commissioner of children, families, and learning on the format 9.32 designated by the commissioner, including program information 9.33 report data. By January 1 of each year, the commissioner shall 9.34 prepare an annual report to the health and human services policy 9.35 committee of the house of representatives and the health and 9.36 family security servicescommittee of the senate concerning the 10.1 uses and impact of head start supplemental funding, including a 10.2 summary of innovative programs and the results of innovative 10.3 programs and an evaluation of the coordination of head start 10.4 programs with employment and training services provided to AFDC10.5 and MFIP-SMFIP recipients. 10.6 Sec. 7. Minnesota Statutes 1998, section 119B.01, 10.7 subdivision 2, is amended to read: 10.8 Subd. 2. [APPLICANT.] "Child care fund applicants" means 10.9 all parents, stepparents, legal guardians, or eligible 10.10 relative caretakerscaregivers who reside in the household that 10.11 applies for child care assistance under the child care fund. 10.12 Sec. 8. Minnesota Statutes 1998, section 119B.01, 10.13 subdivision 10, is amended to read: 10.14 Subd. 10. [FAMILY.] "Family" means parents, stepparents, 10.15 guardians and their spouses, or other eligible 10.16 relative caretakerscaregivers and their spouses, and their 10.17 blood related dependent children and adoptive siblings under the 10.18 age of 18 years living in the same home including children 10.19 temporarily absent from the household in settings such as 10.20 schools, foster care, and residential treatment facilities. 10.21 When a minor parent or parents and his, her, or their child or 10.22 children are living with other relatives, and the minor parent 10.23 or parents apply for a child care subsidy, "family" means only 10.24 the minor parent or parents and the child or children. An adult 10.25 may be considered a dependent member of the family unit if 50 10.26 percent of the adult's support is being provided by the parents, 10.27 stepparents, guardians and their spouses, or eligible 10.28 relative caretakerscaregivers and their spouses, residing in 10.29 the same household. An adult age 18 who is a full-time high 10.30 school student and can reasonably be expected to graduate before 10.31 age 19 may be considered a dependent member of the family unit. 10.32 Sec. 9. Minnesota Statutes 1998, section 119B.01, 10.33 subdivision 12, is amended to read: 10.34 Subd. 12. [INCOME.] "Income" means earned or unearned 10.35 income received by all family members, including public 10.36 assistance cash benefits, unless specifically excluded. The 11.1 following are excluded from income: funds used to pay for 11.2 health insurance premiums for family members, Supplemental 11.3 Security Income, scholarships, work-study income, and grants 11.4 that cover costs for tuition, fees, books, and educational 11.5 supplies; student loans for tuition, fees, books, supplies, and 11.6 living expenses; earned income tax credits; in-kind income such 11.7 as food stamps, energy assistance, medical assistance, and 11.8 housing subsidies; earned income of full or part-time secondary 11.9 school students up to the age of 19, including summer 11.10 employment; grant awards under the family subsidy program; 11.11 nonrecurring lump sum income only to the extent that it is 11.12 earmarked and used for the purpose for which it is paid; and any 11.13 income assigned to the public authority according to section 11.14 256.74 or 256.741 , if enacted. 11.15 Sec. 10. Minnesota Statutes 1998, section 119B.01, 11.16 subdivision 13, is amended to read: 11.17 Subd. 13. [PROVIDER.] "Provider" means a child care 11.18 license holder who operates a family day care home, a group 11.19 family day care home, a day care center, a nursery school, a day 11.20 nursery, an extended day school age child care program; a legal 11.21 nonlicensed extended day school age child care program which 11.22 operates under the auspices of a local school board that has 11.23 adopted school age child care standards which meet or exceed 11.24 standards recommended by the state department of children, 11.25 families, and learning, or a legal nonlicensed caregiver who is 11.26 at least 18 years of age, and who is not a member of the AFDC11.27 Minnesota family investment program assistance unit. 11.28 Sec. 11. Minnesota Statutes 1998, section 119B.01, 11.29 subdivision 15, is amended to read: 11.30 Subd. 15. [ AFDCMINNESOTA FAMILY INVESTMENT PROGRAM AND 11.31 WORK FIRST PROGRAM.] "AFDC" means the aid to families with11.32 dependent children program under sections 256.72 to 256.87;The 11.33 MFIPMinnesota family investment program under sections 256.03111.34 to 256.0361 and 256.0475 to 256.049; the MFIP-S program under11.35 chapter 256J ;and the work first program under chapter 256K ,11.36 whichever program is in effectare the state's programs which 12.1 are required under title I of Public Law Number 104-193, the 12.2 Personal Responsibility and Work Opportunity Reconciliation Act 12.3 of 1996. 12.4 Sec. 12. Minnesota Statutes 1998, section 119B.01, 12.5 subdivision 16, is amended to read: 12.6 Subd. 16. [TRANSITION YEAR FAMILIES.] "Transition year 12.7 families" means families who have received AFDCassistance under 12.8 the Minnesota family investment program, or who were eligible to 12.9 receive AFDCassistance under the Minnesota family investment 12.10 program after choosing to discontinue receipt of the cash 12.11 portion of MFIP-SMFIP assistance under section 256J.31, 12.12 subdivision 12, for at least three of the last six months before 12.13 losing eligibility for AFDCthe Minnesota family investment 12.14 program due to increased hours of employment, or increased 12.15 income from employment or child or spousal support. 12.16 Sec. 13. Minnesota Statutes 1998, section 119B.02, 12.17 subdivision 1, is amended to read: 12.18 Subdivision 1. [CHILD CARE SERVICES.] The commissioner 12.19 shall develop standards for county and human services boards to 12.20 provide child care services to enable eligible families to 12.21 participate in employment, training, or education programs. 12.22 Within the limits of available appropriations, the commissioner 12.23 shall distribute money to counties to reduce the costs of child 12.24 care for eligible families. The commissioner shall adopt rules 12.25 to govern the program in accordance with this section. The 12.26 rules must establish a sliding schedule of fees for parents 12.27 receiving child care services. The rules shall provide that 12.28 funds received as a lump sum payment of child support arrearages 12.29 shall not be counted as income to a family in the month received 12.30 but shall be prorated over the 12 months following receipt and 12.31 added to the family income during those months. In the rules 12.32 adopted under this section, county and human services boards 12.33 shall be authorized to establish policies for payment of child 12.34 care spaces for absent children, when the payment is required by 12.35 the child's regular provider. The rules shall not set a maximum 12.36 number of days for which absence payments can be made, but 13.1 instead shall direct the county agency to set limits and pay for 13.2 absences according to the prevailing market practice in the 13.3 county. County policies for payment of absences shall be 13.4 subject to the approval of the commissioner. The commissioner 13.5 shall maximize the use of federal money in section 256.736under 13.6 title I and title IV of Public Law Number 104-193, the Personal 13.7 Responsibility and Work Opportunity Reconciliation Act of 1996 13.8 and other programs that provide federal or state reimbursement 13.9 for child care services for low-income families who are in 13.10 education, training, job search, or other activities allowed 13.11 under those programs. Money appropriated under this section 13.12 must be coordinated with the programs that provide federal 13.13 reimbursement for child care services to accomplish this 13.14 purpose. Federal reimbursement obtained must be allocated to 13.15 the county that spent money for child care that is federally 13.16 reimbursable under programs that provide federal reimbursement 13.17 for child care services. The counties shall use the federal 13.18 money to expand child care services. The commissioner may adopt 13.19 rules under chapter 14 to implement and coordinate federal 13.20 program requirements. 13.21 Sec. 14. Minnesota Statutes 1998, section 119B.03, 13.22 subdivision 3, is amended to read: 13.23 Subd. 3. [ELIGIBLE RECIPIENTS.] Families that meet the 13.24 eligibility requirements under sections 119B.09, except AFDC13.25 recipients,MFIP recipients ,and transition year families, and 13.26 119B.10 are eligible for child care assistance under the basic 13.27 sliding fee program. Families enrolled in the basic sliding fee 13.28 program shall be continued until they are no longer eligible. 13.29 Child care assistance provided through the child care fund is 13.30 considered assistance to the parent. 13.31 Sec. 15. Minnesota Statutes 1998, section 119B.03, 13.32 subdivision 4, is amended to read: 13.33 Subd. 4. [FUNDING PRIORITY.] (a) First priority for child 13.34 care assistance under the basic sliding fee program must be 13.35 given to eligible non-AFDCnon-Minnesota family investment 13.36 program families who do not have a high school or general 14.1 equivalency diploma or who need remedial and basic skill courses 14.2 in order to pursue employment or to pursue education leading to 14.3 employment. Within this priority, the following subpriorities 14.4 must be used: 14.5 (1) child care needs of minor parents; 14.6 (2) child care needs of parents under 21 years of age; and 14.7 (3) child care needs of other parents within the priority 14.8 group described in this paragraph. 14.9 (b) Second priority must be given to parents who have 14.10 completed their AFDCMinnesota family investment program 14.11 transition year. 14.12 (c) Third priority must be given to families who are 14.13 eligible for portable basic sliding fee assistance through the 14.14 portability pool under subdivision 9. 14.15 Sec. 16. Minnesota Statutes 1998, section 119B.05, 14.16 subdivision 1, is amended to read: 14.17 Subdivision 1. [ELIGIBLE RECIPIENTS.] Families eligible 14.18 for child care assistance under the AFDCMinnesota family 14.19 investment program child care program are: 14.20 (1) persons receiving services under sections 256.031 to14.21 256.0361 and 256.047 to 256.048;14.22 (2) AFDCMinnesota family investment program recipients who 14.23 are employed or in job search and meet the requirements of 14.24 section 119B.10; 14.25 (3)(2) persons who are members of transition year families 14.26 under section 119B.01, subdivision 16; 14.27 (4) members of the control group for the STRIDE evaluation14.28 conducted by the Manpower Demonstration Research Corporation;14.29 (5) AFDC caretakers who are participating in the STRIDE and14.30 non-STRIDE AFDC child care program;14.31 (6)(3) families who are participating in employment 14.32 orientation or job search, or other employment or training 14.33 activities that are included in an approved employability 14.34 development plan under chapter 256K; and 14.35 (7) MFIP-S(4) MFIP families who are participating in work 14.36 activities as required in their job search support or employment 15.1 plan, or in appeals, hearings, assessments, or orientations 15.2 according to chapter 256J. Child care assistance to support 15.3 work activities as described in section 256J.49 must be 15.4 available according to sections 119A.54, 119B.01, subdivision 8, 15.5 124D.13, 256E.08, and 611A.32 and titles IVA, IVB, IVE, and XX 15.6 of the Social Security Act. 15.7 Sec. 17. Minnesota Statutes 1998, section 119B.07, is 15.8 amended to read: 15.9 119B.07 [USE OF MONEY.] 15.10 Money for persons listed in sections 119B.03, subdivision 15.11 3, and 119B.05, subdivision 1, shall be used to reduce the costs 15.12 of child care for students, including the costs of child care 15.13 for students while employed if enrolled in an eligible education 15.14 program at the same time and making satisfactory progress 15.15 towards completion of the program. Counties may not limit the 15.16 duration of child care subsidies for a person in an employment 15.17 or educational program, except when the person is found to be 15.18 ineligible under the child care fund eligibility standards. Any 15.19 limitation must be based on a person's employability plan in the 15.20 case of an AFDCa Minnesota family investment program recipient, 15.21 and county policies included in the child care allocation plan. 15.22 The maximum length of time a student is eligible for child care 15.23 assistance under the child care fund for education and training 15.24 is no more than the time necessary to complete the credit 15.25 requirements for an associate or baccalaureate degree as 15.26 determined by the educational institution, excluding basic or 15.27 remedial education programs needed to prepare for post-secondary 15.28 education or employment. To be eligible, the student must be in 15.29 good standing and be making satisfactory progress toward the 15.30 degree. Time limitations for child care assistance do not apply 15.31 to basic or remedial educational programs needed to prepare for 15.32 post-secondary education or employment. These programs 15.33 include: high school, general equivalency diploma, and English 15.34 as a second language. Programs exempt from this time limit must 15.35 not run concurrently with a post-secondary program. High school 15.36 students who are participating in a post-secondary options 16.1 program and who receive a high school diploma issued by the 16.2 school district are exempt from the time limitations while 16.3 pursuing a high school diploma. Financially eligible students 16.4 who have received child care assistance for one academic year 16.5 shall be provided child care assistance in the following 16.6 academic year if funds allocated under sections 119B.03 and 16.7 119B.05 are available. If an AFDCa Minnesota family investment 16.8 program recipient who is receiving AFDCMinnesota family 16.9 investment program child care assistance under this chapter 16.10 moves to another county, continues to participate in educational 16.11 or training programs authorized in their employability 16.12 development plans, and continues to be eligible for AFDCthe 16.13 Minnesota family investment program child care assistance under 16.14 this chapter, the AFDC caretakerMinnesota family investment 16.15 program caregiver must receive continued child care assistance 16.16 from the county responsible for their current employability 16.17 development plan, without interruption. 16.18 Sec. 18. Minnesota Statutes 1998, section 119B.075, is 16.19 amended to read: 16.20 119B.075 [RESERVE ACCOUNT.] 16.21 A reserve account must be created within the general fund 16.22 for all unexpended basic sliding fee child care, TANF child 16.23 care, or other child care funds under the jurisdiction of the 16.24 commissioner. Any funds for those purposes that are unexpended 16.25 at the end of a biennium must be deposited in this reserve 16.26 account, and may be appropriated on an ongoing basis by the 16.27 commissioner for basic sliding fee child care or TANFMFIP child 16.28 care. 16.29 Sec. 19. Minnesota Statutes 1998, section 119B.08, 16.30 subdivision 3, is amended to read: 16.31 Subd. 3. [CHILD CARE FUND PLAN.] Effective January 1, 16.32 1992, the county will include the plan required under this 16.33 subdivision in its biennial community social services plan 16.34 required in this section, for the group described in section 16.35 256E.03, subdivision 2, paragraph (h). The commissioner shall 16.36 establish the dates by which the county must submit these 17.1 plans. The county and designated administering agency shall 17.2 submit to the commissioner an annual child care fund allocation 17.3 plan. The plan shall include: 17.4 (1) a narrative of the total program for child care 17.5 services, including all policies and procedures that affect 17.6 eligible families and are used to administer the child care 17.7 funds; 17.8 (2) the methods used by the county to inform eligible 17.9 groups of the availability of child care assistance and related 17.10 services; 17.11 (3) the provider rates paid for all children by provider 17.12 type; 17.13 (4) the county prioritization policy for all eligible 17.14 groups under the basic sliding fee program and AFDCthe 17.15 Minnesota family investment program and child care program; and 17.16 (5) other information as requested by the department to 17.17 ensure compliance with the child care fund statutes and rules 17.18 promulgated by the commissioner. 17.19 The commissioner shall notify counties within 60 days of 17.20 the date the plan is submitted whether the plan is approved or 17.21 the corrections or information needed to approve the plan. The 17.22 commissioner shall withhold a county's allocation until it has 17.23 an approved plan. Plans not approved by the end of the second 17.24 quarter after the plan is due may result in a 25 percent 17.25 reduction in allocation. Plans not approved by the end of the 17.26 third quarter after the plan is due may result in a 100 percent 17.27 reduction in the allocation to the county. Counties are to 17.28 maintain services despite any reduction in their allocation due 17.29 to plans not being approved. 17.30 Sec. 20. Minnesota Statutes 1998, section 119B.09, 17.31 subdivision 1, is amended to read: 17.32 Subdivision 1. [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 17.33 APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 17.34 must be available to families who need child care to find or 17.35 keep employment or to obtain the training or education necessary 17.36 to find employment and who: 18.1 (1) meet the requirements of section 119B.05; receive aid18.2 to families with dependent children, MFIP-S,assistance under 18.3 MFIP or work first, whichever is in effect;and are receiving18.4 participating in employment and training services under section18.5 256.736 orchapter 256J or 256K; 18.6 (2) have household income below the eligibility levels for 18.7 aid to families with dependent childrenMinnesota family 18.8 investment program; or 18.9 (3) have household income within a range established by the 18.10 commissioner. 18.11 (b) Child care services for the families receiving aid to18.12 families with dependent childrenMinnesota family investment 18.13 program assistance must be made available as in-kind services ,18.14 to cover any difference between the actual cost and the amount18.15 disregarded under the aid to families with dependent children18.16 program. Child care services to families whose incomes are 18.17 below the threshold of eligibility for aid to families with18.18 dependent childrenMinnesota family investment program, but are 18.19 not AFDC caretakersMFIP caregivers, must be made available with 18.20 the same copayment required of AFDC caretakers or MFIP-SMFIP 18.21 caregivers. 18.22 (c) All applicants for child care assistance and families 18.23 currently receiving child care assistance must be assisted and 18.24 required to cooperate in establishment of paternity and 18.25 enforcement of child support obligations as a condition of 18.26 program eligibility. For purposes of this section, a family is 18.27 considered to meet the requirement for cooperation when the 18.28 family complies with the requirements of section 256.741 , if18.29 enacted. 18.30 Sec. 21. Minnesota Statutes 1998, section 119B.09, 18.31 subdivision 3, is amended to read: 18.32 Subd. 3. [PRIORITIES; ALLOCATIONS.] If a county projects 18.33 that its child care allocation is insufficient to meet the needs 18.34 of all eligible groups, it may prioritize among the groups that 18.35 remain to be served after the county has complied with the 18.36 priority requirements of section 119B.03. Counties that have 19.1 established a priority for non-AFDCnon-Minnesota family 19.2 investment program families beyond those established under 19.3 section 119B.03 must submit the policy in the annual allocation 19.4 plan. 19.5 Sec. 22. Minnesota Statutes 1998, section 119B.09, 19.6 subdivision 7, is amended to read: 19.7 Subd. 7. [ELIGIBILITY FOR ASSISTANCE.] The date of 19.8 eligibility for child care assistance under this chapter is the 19.9 later of the date the application was signed; the beginning date 19.10 of employment, education, or training; or the date a 19.11 determination has been made that the applicant is a participant 19.12 in employment and training services under Minnesota Rules, part 19.13 3400.0080, subpart 2a, section 256.736,or chapter 256J or 19.14 256K. The date of eligibility for the basic sliding fee at-home 19.15 infant child care program is the later of the date the infant is 19.16 born or, in a county with a basic sliding fee wait list, the 19.17 date the family applies for at-home infant child care. Payment 19.18 ceases for a family under the at-home infant child care program 19.19 when a family has used a total of 12 months of assistance as 19.20 specified under section 119B.061. Payment of child care 19.21 assistance for employed persons on AFDCMFIP is effective the 19.22 date of employment or the date of AFDCMFIP eligibility, 19.23 whichever is later. Payment of child care assistance for MFIP-S19.24 MFIP or work first participants in employment and training 19.25 services is effective the date of commencement of the services 19.26 or the date of MFIP-SMFIP or work first eligibility, whichever 19.27 is later. Payment of child care assistance for transition year 19.28 child care must be made retroactive to the date of eligibility 19.29 for transition year child care. 19.30 Sec. 23. Minnesota Statutes 1998, section 119B.14, is 19.31 amended to read: 19.32 119B.14 [EXTENSION OF EMPLOYMENT OPPORTUNITIES.] 19.33 The county board shall insureensure that child care 19.34 services available to eligible residents are well advertised and 19.35 that everyone who receives or applies for aid to families with19.36 dependent childrenassistance under the Minnesota family 20.1 investment program is informed of training and employment 20.2 opportunities and programs, including child care assistance and 20.3 child care resource and referral services. 20.4 Sec. 24. Minnesota Statutes 1998, section 119B.15, is 20.5 amended to read: 20.6 119B.15 [ADMINISTRATIVE EXPENSES.] 20.7 The commissioner shall use up to 1/21 of the state and 20.8 federal funds available for the basic sliding fee program and 20.9 1/21 of the state and federal funds available for the AFDC20.10 Minnesota family investment program child care program for 20.11 payments to counties for administrative expenses. 20.12 Sec. 25. Minnesota Statutes 1998, section 136A.125, 20.13 subdivision 2, is amended to read: 20.14 Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for 20.15 a child care grant if the applicant: 20.16 (1) is a resident of the state of Minnesota; 20.17 (2) has a child 12 years of age or younger, or 14 years of 20.18 age or younger who is handicapped as defined in section 125A.02, 20.19 and who is receiving or will receive care on a regular basis 20.20 from a licensed or legal, nonlicensed caregiver; 20.21 (3) is income eligible as determined by the office's 20.22 policies and rules, but is not a recipient of assistance from 20.23 either aid to families with dependent children orthe Minnesota 20.24 family investment program-statewideprogram; 20.25 (4) has not earned a baccalaureate degree and has been 20.26 enrolled full time less than eight semesters, 12 quarters, or 20.27 the equivalent; 20.28 (5) is pursuing a nonsectarian program or course of study 20.29 that applies to an undergraduate degree, diploma, or 20.30 certificate; 20.31 (6) is enrolled at least half time in an eligible 20.32 institution; and 20.33 (7) is in good academic standing and making satisfactory 20.34 academic progress. 20.35 Sec. 26. Minnesota Statutes 1998, section 145.415, 20.36 subdivision 3, is amended to read: 21.1 Subd. 3. [STATUS.] (1) Unless the abortion is performed to 21.2 save the life of the woman or child, or, (2) unless one or both 21.3 of the parents of the unborn child agrees within 30 days of the 21.4 birth to accept the parental rights and responsibilities for the 21.5 child if it survives the abortion, whenever an abortion of a 21.6 potentially viable fetus results in a live birth, the child 21.7 shall be an abandoned ward of the state and the parents shall 21.8 have no parental rights or obligations as if the parental rights 21.9 had been terminated pursuant to section 260.221. The child 21.10 shall be provided for pursuant to sections 256.12, subdivision21.11 14 and 256.72 to 256.87chapter 256J. 21.12 Sec. 27. Minnesota Statutes 1998, section 145.93, 21.13 subdivision 3, is amended to read: 21.14 Subd. 3. [GRANT AWARD; DESIGNATION; PAYMENTS UNDER GRANT.] 21.15 Each odd-numbered year the commissioner shall solicit 21.16 applications for the poison information centers by giving 21.17 reasonable public notice of the availability of money 21.18 appropriated or otherwise available. The commissioner shall 21.19 select from among the nonprofit corporationsentities, whether 21.20 profit or nonprofit, or units of government the applicants that 21.21 best fulfill the criteria specified in subdivision 4. The grant 21.22 shall be paid to the grantees quarterly beginning on July 1. 21.23 Sec. 28. Minnesota Statutes 1998, section 196.27, is 21.24 amended to read: 21.25 196.27 [AGENT ORANGE SETTLEMENT PAYMENTS.] 21.26 (a)Payments received by veterans or their dependents 21.27 because of settlements between them and the manufacturers of 21.28 Agent Orange or other chemical agents, as defined in section 21.29 196.21, must not be treated as income (or an available resource) 21.30 of the veterans or their dependents for the purposes of any 21.31 program of public assistance or benefit program administered by 21.32 the department of veterans affairs, the department of human 21.33 services, or other agencies of the state or political 21.34 subdivisions of the state , except as provided in paragraph (b). 21.35 (b) The income and resource exclusion in paragraph (a) does21.36 not apply to the medical assistance, food stamps, aid to22.1 families with dependent children or Minnesota family investment22.2 program-statewide programs until the commissioner of human22.3 services receives formal approval from the United States22.4 Department of Health and Human Services, for the medical22.5 assistance, aid to families with dependent children or Minnesota22.6 family investment program-statewide programs, and from the22.7 United States Department of Agriculture, for the food stamps22.8 program. The income exclusion does not apply to the Minnesota22.9 supplemental aid program until the commissioner receives formal22.10 federal approval of the exclusion for the medical assistance22.11 program.22.12 Sec. 29. Minnesota Statutes 1998, section 237.70, 22.13 subdivision 4a, is amended to read: 22.14 Subd. 4a. [HOUSEHOLD ELIGIBLE FOR CREDIT.] The telephone 22.15 assistance plan must provide telephone assistance credit for a 22.16 residential household in Minnesota that meets each of the 22.17 following criteria: 22.18 (1) has a household member who: 22.19 (i) subscribes to local exchange service; and 22.20 (ii) is either disabled or 65 years of age or older; 22.21 (2) whose household income is 150 percent or less of 22.22 federal poverty guidelines or is currently eligible for: 22.23 (i) aid to families with dependent children orMinnesota 22.24 family investment program-statewideprogram; 22.25 (ii) medical assistance; 22.26 (iii) general assistance; 22.27 (iv) Minnesota supplemental aid; 22.28 (v) food stamps; 22.29 (vi) refugee cash assistance or refugee medical assistance; 22.30 (vii) energy assistance; or 22.31 (viii) supplemental security income; and 22.32 (3) who has been certified as eligible for telephone 22.33 assistance plan credits. 22.34 Sec. 30. Minnesota Statutes 1998, section 245.4871, 22.35 subdivision 25, is amended to read: 22.36 Subd. 25. [MENTAL HEALTH FUNDS.] "Mental health funds" are 23.1 funds expended under sections 245.73 and 256E.12, federal mental 23.2 health block grant funds, and funds expended under 23.3 sectionssection 256D.06 and 256D.37to facilities licensed 23.4 under Minnesota Rules, parts 9520.0500 to 9520.0690. 23.5 Sec. 31. Minnesota Statutes 1998, section 252.28, 23.6 subdivision 3a, is amended to read: 23.7 Subd. 3a. [LICENSING EXCEPTION.] (a) Notwithstanding the 23.8 provisions of subdivision 3, the commissioner may license 23.9 service sites, each accommodating up to six residents moving 23.10 from a 48-bed intermediate care facility for persons with mental 23.11 retardation or related conditions located in Dakota county that 23.12 is closing under section 252.292. 23.13 (b) Notwithstanding the provisions of any other state law 23.14 or administrative rule, the rate provisions of section 256I.05, 23.15 subdivision 1, apply to the exception in this subdivision. 23.16 Sec. 32. Minnesota Statutes 1998, section 254B.02, 23.17 subdivision 1, is amended to read: 23.18 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 23.19 The chemical dependency funds appropriated for allocation shall 23.20 be placed in a special revenue account. The commissioner shall 23.21 annually transfer funds from the chemical dependency fund to pay 23.22 for operation of the drug and alcohol abuse normative evaluation 23.23 system and to pay for all costs incurred by adding two positions 23.24 for licensing of chemical dependency treatment and 23.25 rehabilitation programs located in hospitals for which funds are 23.26 not otherwise appropriated. For each year of the biennium 23.27 ending June 30, 1999, the commissioner shall allocate funds to 23.28 the American Indian chemical dependency tribal account for 23.29 treatment of American Indians by eligible vendors under section 23.30 254B.05, equal to the amount allocated in fiscal year 1997. The 23.31 commissioner shall annually divide the money available in the 23.32 chemical dependency fund that is not held in reserve by counties 23.33 from a previous allocation, or allocated to the American Indian 23.34 chemical dependency tribal account. Six percent of the 23.35 remaining money must be reserved for the nonreservation American 23.36 Indian chemical dependency allocation for treatment of American 24.1 Indians by eligible vendors under section 254B.05, subdivision 24.2 1. The remainder of the money must be allocated among the 24.3 counties according to the following formula, using state 24.4 demographer data and other data sources determined by the 24.5 commissioner: 24.6 (a) For purposes of this formula, American Indians and 24.7 children under age 14 are subtracted from the population of each 24.8 county to determine the restricted population. 24.9 (b) The amount of chemical dependency fund expenditures for 24.10 entitled persons for services not covered by prepaid plans 24.11 governed by section 256B.69 in the previous year is divided by 24.12 the amount of chemical dependency fund expenditures for entitled 24.13 persons for all services to determine the proportion of exempt 24.14 service expenditures for each county. 24.15 (c) The prepaid plan months of eligibility is multiplied by 24.16 the proportion of exempt service expenditures to determine the 24.17 adjusted prepaid plan months of eligibility for each county. 24.18 (d) The adjusted prepaid plan months of eligibility is 24.19 added to the number of restricted population fee for service 24.20 months of eligibility for aid to families with dependent24.21 children,Minnesota family investment program-statewideprogram, 24.22 general assistance, and medical assistance and divided by the 24.23 county restricted population to determine county per capita 24.24 months of covered service eligibility. 24.25 (e) The number of adjusted prepaid plan months of 24.26 eligibility for the state is added to the number of fee for 24.27 service months of eligibility for aid to families with dependent24.28 children,Minnesota family investment program-statewideprogram, 24.29 general assistance, and medical assistance for the state 24.30 restricted population and divided by the state restricted 24.31 population to determine state per capita months of covered 24.32 service eligibility. 24.33 (f) The county per capita months of covered service 24.34 eligibility is divided by the state per capita months of covered 24.35 service eligibility to determine the county welfare caseload 24.36 factor. 25.1 (g) The median married couple income for the most recent 25.2 three-year period available for the state is divided by the 25.3 median married couple income for the same period for each county 25.4 to determine the income factor for each county. 25.5 (h) The county restricted population is multiplied by the 25.6 sum of the county welfare caseload factor and the county income 25.7 factor to determine the adjusted population. 25.8 (i) $15,000 shall be allocated to each county. 25.9 (j) The remaining funds shall be allocated proportional to 25.10 the county adjusted population. 25.11 Sec. 33. Minnesota Statutes 1998, section 256.01, 25.12 subdivision 2, is amended to read: 25.13 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 25.14 section 241.021, subdivision 2, the commissioner of human 25.15 services shall: 25.16 (1) Administer and supervise all forms of public assistance 25.17 provided for by state law and other welfare activities or 25.18 services as are vested in the commissioner. Administration and 25.19 supervision of human services activities or services includes, 25.20 but is not limited to, assuring timely and accurate distribution 25.21 of benefits, completeness of service, and quality program 25.22 management. In addition to administering and supervising human 25.23 services activities vested by law in the department, the 25.24 commissioner shall have the authority to: 25.25 (a) require county agency participation in training and 25.26 technical assistance programs to promote compliance with 25.27 statutes, rules, federal laws, regulations, and policies 25.28 governing human services; 25.29 (b) monitor, on an ongoing basis, the performance of county 25.30 agencies in the operation and administration of human services, 25.31 enforce compliance with statutes, rules, federal laws, 25.32 regulations, and policies governing welfare services and promote 25.33 excellence of administration and program operation; 25.34 (c) develop a quality control program or other monitoring 25.35 program to review county performance and accuracy of benefit 25.36 determinations; 26.1 (d) require county agencies to make an adjustment to the 26.2 public assistance benefits issued to any individual consistent 26.3 with federal law and regulation and state law and rule and to 26.4 issue or recover benefits as appropriate; 26.5 (e) delay or deny payment of all or part of the state and 26.6 federal share of benefits and administrative reimbursement 26.7 according to the procedures set forth in section 256.017; 26.8 (f) make contracts with and grants to public and private 26.9 agencies and organizations, both profit and nonprofit, and 26.10 individuals, using appropriated funds; and 26.11 (g) enter into contractual agreements with federally 26.12 recognized Indian tribes with a reservation in Minnesota to the 26.13 extent necessary for the tribe to operate a federally approved 26.14 family assistance program or any other program under the 26.15 supervision of the commissioner. The commissioner shall consult 26.16 with the affected county or counties in the contractual 26.17 agreement negotiations, if the county or counties wish to be 26.18 included, in order to avoid the duplication of county and tribal 26.19 assistance program services. The commissioner may establish 26.20 necessary accounts for the purposes of receiving and disbursing 26.21 funds as necessary for the operation of the programs. 26.22 (2) Inform county agencies, on a timely basis, of changes 26.23 in statute, rule, federal law, regulation, and policy necessary 26.24 to county agency administration of the programs. 26.25 (3) Administer and supervise all child welfare activities; 26.26 promote the enforcement of laws protecting handicapped, 26.27 dependent, neglected and delinquent children, and children born 26.28 to mothers who were not married to the children's fathers at the 26.29 times of the conception nor at the births of the children; 26.30 license and supervise child-caring and child-placing agencies 26.31 and institutions; supervise the care of children in boarding and 26.32 foster homes or in private institutions; and generally perform 26.33 all functions relating to the field of child welfare now vested 26.34 in the state board of control. 26.35 (4) Administer and supervise all noninstitutional service 26.36 to handicapped persons, including those who are visually 27.1 impaired, hearing impaired, or physically impaired or otherwise 27.2 handicapped. The commissioner may provide and contract for the 27.3 care and treatment of qualified indigent children in facilities 27.4 other than those located and available at state hospitals when 27.5 it is not feasible to provide the service in state hospitals. 27.6 (5) Assist and actively cooperate with other departments, 27.7 agencies and institutions, local, state, and federal, by 27.8 performing services in conformity with the purposes of Laws 27.9 1939, chapter 431. 27.10 (6) Act as the agent of and cooperate with the federal 27.11 government in matters of mutual concern relative to and in 27.12 conformity with the provisions of Laws 1939, chapter 431, 27.13 including the administration of any federal funds granted to the 27.14 state to aid in the performance of any functions of the 27.15 commissioner as specified in Laws 1939, chapter 431, and 27.16 including the promulgation of rules making uniformly available 27.17 medical care benefits to all recipients of public assistance, at 27.18 such times as the federal government increases its participation 27.19 in assistance expenditures for medical care to recipients of 27.20 public assistance, the cost thereof to be borne in the same 27.21 proportion as are grants of aid to said recipients. 27.22 (7) Establish and maintain any administrative units 27.23 reasonably necessary for the performance of administrative 27.24 functions common to all divisions of the department. 27.25 (8) Act as designated guardian of both the estate and the 27.26 person of all the wards of the state of Minnesota, whether by 27.27 operation of law or by an order of court, without any further 27.28 act or proceeding whatever, except as to persons committed as 27.29 mentally retarded. For children under the guardianship of the 27.30 commissioner whose interests would be best served by adoptive 27.31 placement, the commissioner may contract with a licensed 27.32 child-placing agency to provide adoption services. A contract 27.33 with a licensed child-placing agency must be designed to 27.34 supplement existing county efforts and may not replace existing 27.35 county programs, unless the replacement is agreed to by the 27.36 county board and the appropriate exclusive bargaining 28.1 representative or the commissioner has evidence that child 28.2 placements of the county continue to be substantially below that 28.3 of other counties. 28.4 (9) Act as coordinating referral and informational center 28.5 on requests for service for newly arrived immigrants coming to 28.6 Minnesota. 28.7 (10) The specific enumeration of powers and duties as 28.8 hereinabove set forth shall in no way be construed to be a 28.9 limitation upon the general transfer of powers herein contained. 28.10 (11) Establish county, regional, or statewide schedules of 28.11 maximum fees and charges which may be paid by county agencies 28.12 for medical, dental, surgical, hospital, nursing and nursing 28.13 home care and medicine and medical supplies under all programs 28.14 of medical care provided by the state and for congregate living 28.15 care under the income maintenance programs. 28.16 (12) Have the authority to conduct and administer 28.17 experimental projects to test methods and procedures of 28.18 administering assistance and services to recipients or potential 28.19 recipients of public welfare. To carry out such experimental 28.20 projects, it is further provided that the commissioner of human 28.21 services is authorized to waive the enforcement of existing 28.22 specific statutory program requirements, rules, and standards in 28.23 one or more counties. The order establishing the waiver shall 28.24 provide alternative methods and procedures of administration, 28.25 shall not be in conflict with the basic purposes, coverage, or 28.26 benefits provided by law, and in no event shall the duration of 28.27 a project exceed four years. It is further provided that no 28.28 order establishing an experimental project as authorized by the 28.29 provisions of this section shall become effective until the 28.30 following conditions have been met: 28.31 (a) The secretary of health , education, and welfareand 28.32 human services of the United States has agreed, for the same 28.33 project, to waive state plan requirements relative to statewide 28.34 uniformity. 28.35 (b) A comprehensive plan, including estimated project 28.36 costs, shall be approved by the legislative advisory commission 29.1 and filed with the commissioner of administration. 29.2 (13) According to federal requirements, establish 29.3 procedures to be followed by local welfare boards in creating 29.4 citizen advisory committees, including procedures for selection 29.5 of committee members. 29.6 (14) Allocate federal fiscal disallowances or sanctions 29.7 which are based on quality control error rates for the aid to 29.8 families with dependent children program formerly codified in 29.9 sections 256.72 to 256.87, Minnesota family investment29.10 program-statewide,medical assistance, or food stamp program in 29.11 the following manner: 29.12 (a) One-half of the total amount of the disallowance shall 29.13 be borne by the county boards responsible for administering the 29.14 programs. For themedical assistance , MFIP-S,and the AFDC 29.15 programsprogram formerly codified in sections 256.72 to 256.87, 29.16 disallowances shall be shared by each county board in the same 29.17 proportion as that county's expenditures for the sanctioned 29.18 program are to the total of all counties' expenditures for the 29.19 AFDC program formerly codified in sections 256.72 to 29.20 256.87, MFIP-S,and medical assistance programs. For the food 29.21 stamp program, sanctions shall be shared by each county board, 29.22 with 50 percent of the sanction being distributed to each county 29.23 in the same proportion as that county's administrative costs for 29.24 food stamps are to the total of all food stamp administrative 29.25 costs for all counties, and 50 percent of the sanctions being 29.26 distributed to each county in the same proportion as that 29.27 county's value of food stamp benefits issued are to the total of 29.28 all benefits issued for all counties. Each county shall pay its 29.29 share of the disallowance to the state of Minnesota. When a 29.30 county fails to pay the amount due hereunder, the commissioner 29.31 may deduct the amount from reimbursement otherwise due the 29.32 county, or the attorney general, upon the request of the 29.33 commissioner, may institute civil action to recover the amount 29.34 due. 29.35 (b) Notwithstanding the provisions of paragraph (a), if the 29.36 disallowance results from knowing noncompliance by one or more 30.1 counties with a specific program instruction, and that knowing 30.2 noncompliance is a matter of official county board record, the 30.3 commissioner may require payment or recover from the county or 30.4 counties, in the manner prescribed in paragraph (a), an amount 30.5 equal to the portion of the total disallowance which resulted 30.6 from the noncompliance, and may distribute the balance of the 30.7 disallowance according to paragraph (a). 30.8 (15) Develop and implement special projects that maximize 30.9 reimbursements and result in the recovery of money to the 30.10 state. For the purpose of recovering state money, the 30.11 commissioner may enter into contracts with third parties. Any 30.12 recoveries that result from projects or contracts entered into 30.13 under this paragraph shall be deposited in the state treasury 30.14 and credited to a special account until the balance in the 30.15 account reaches $1,000,000. When the balance in the account 30.16 exceeds $1,000,000, the excess shall be transferred and credited 30.17 to the general fund. All money in the account is appropriated 30.18 to the commissioner for the purposes of this paragraph. 30.19 (16) Have the authority to make direct payments to 30.20 facilities providing shelter to women and their children 30.21 according to section 256D.05, subdivision 3. Upon the written 30.22 request of a shelter facility that has been denied payments 30.23 under section 256D.05, subdivision 3, the commissioner shall 30.24 review all relevant evidence and make a determination within 30 30.25 days of the request for review regarding issuance of direct 30.26 payments to the shelter facility. Failure to act within 30 days 30.27 shall be considered a determination not to issue direct payments. 30.28 (17) Have the authority to establish and enforce the 30.29 following county reporting requirements: 30.30 (a) The commissioner shall establish fiscal and statistical 30.31 reporting requirements necessary to account for the expenditure 30.32 of funds allocated to counties for human services programs. 30.33 When establishing financial and statistical reporting 30.34 requirements, the commissioner shall evaluate all reports, in 30.35 consultation with the counties, to determine if the reports can 30.36 be simplified or the number of reports can be reduced. 31.1 (b) The county board shall submit monthly or quarterly 31.2 reports to the department as required by the commissioner. 31.3 Monthly reports are due no later than 15 working days after the 31.4 end of the month. Quarterly reports are due no later than 30 31.5 calendar days after the end of the quarter, unless the 31.6 commissioner determines that the deadline must be shortened to 31.7 20 calendar days to avoid jeopardizing compliance with federal 31.8 deadlines or risking a loss of federal funding. Only reports 31.9 that are complete, legible, and in the required format shall be 31.10 accepted by the commissioner. 31.11 (c) If the required reports are not received by the 31.12 deadlines established in clause (b), the commissioner may delay 31.13 payments and withhold funds from the county board until the next 31.14 reporting period. When the report is needed to account for the 31.15 use of federal funds and the late report results in a reduction 31.16 in federal funding, the commissioner shall withhold from the 31.17 county boards with late reports an amount equal to the reduction 31.18 in federal funding until full federal funding is received. 31.19 (d) A county board that submits reports that are late, 31.20 illegible, incomplete, or not in the required format for two out 31.21 of three consecutive reporting periods is considered 31.22 noncompliant. When a county board is found to be noncompliant, 31.23 the commissioner shall notify the county board of the reason the 31.24 county board is considered noncompliant and request that the 31.25 county board develop a corrective action plan stating how the 31.26 county board plans to correct the problem. The corrective 31.27 action plan must be submitted to the commissioner within 45 days 31.28 after the date the county board received notice of noncompliance. 31.29 (e) The final deadline for fiscal reports or amendments to 31.30 fiscal reports is one year after the date the report was 31.31 originally due. If the commissioner does not receive a report 31.32 by the final deadline, the county board forfeits the funding 31.33 associated with the report for that reporting period and the 31.34 county board must repay any funds associated with the report 31.35 received for that reporting period. 31.36 (f) The commissioner may not delay payments, withhold 32.1 funds, or require repayment under paragraph (c) or (e) if the 32.2 county demonstrates that the commissioner failed to provide 32.3 appropriate forms, guidelines, and technical assistance to 32.4 enable the county to comply with the requirements. If the 32.5 county board disagrees with an action taken by the commissioner 32.6 under paragraph (c) or (e), the county board may appeal the 32.7 action according to sections 14.57 to 14.69. 32.8 (g) Counties subject to withholding of funds under 32.9 paragraph (c) or forfeiture or repayment of funds under 32.10 paragraph (e) shall not reduce or withhold benefits or services 32.11 to clients to cover costs incurred due to actions taken by the 32.12 commissioner under paragraph (c) or (e). 32.13 (18) Allocate federal fiscal disallowances or sanctions for 32.14 audit exceptions when federal fiscal disallowances or sanctions 32.15 are based on a statewide random sample for the foster care 32.16 program under title IV-E of the Social Security Act, United 32.17 States Code, title 42, in direct proportion to each county's 32.18 title IV-E foster care maintenance claim for that period. 32.19 (19) Be responsible for ensuring the detection, prevention, 32.20 investigation, and resolution of fraudulent activities or 32.21 behavior by applicants, recipients, and other participants in 32.22 the human services programs administered by the department. 32.23 (20) Require county agencies to identify overpayments, 32.24 establish claims, and utilize all available and cost-beneficial 32.25 methodologies to collect and recover these overpayments in the 32.26 human services programs administered by the department. 32.27 (21) Have the authority to administer a drug rebate program 32.28 for drugs purchased pursuant to the senior citizen drug program 32.29 established under section 256.955 after the beneficiary's 32.30 satisfaction of any deductible established in the program. The 32.31 commissioner shall require a rebate agreement from all 32.32 manufacturers of covered drugs as defined in section 256B.0625, 32.33 subdivision 13. For each drug, the amount of the rebate shall 32.34 be equal to the basic rebate as defined for purposes of the 32.35 federal rebate program in United States Code, title 42, section 32.36 1396r-8(c)(1). This basic rebate shall be applied to 33.1 single-source and multiple-source drugs. The manufacturers must 33.2 provide full payment within 30 days of receipt of the state 33.3 invoice for the rebate within the terms and conditions used for 33.4 the federal rebate program established pursuant to section 1927 33.5 of title XIX of the Social Security Act. The manufacturers must 33.6 provide the commissioner with any information necessary to 33.7 verify the rebate determined per drug. The rebate program shall 33.8 utilize the terms and conditions used for the federal rebate 33.9 program established pursuant to section 1927 of title XIX of the 33.10 Social Security Act. 33.11 Sec. 34. Minnesota Statutes 1998, section 256.01, 33.12 subdivision 4, is amended to read: 33.13 Subd. 4. [DUTIES AS STATE AGENCY.] The state agency shall: 33.14 (1) supervise the administration of assistance to dependent 33.15 children under Laws 1937, chapter 438, by the county agencies in 33.16 an integrated program with other service for dependent children 33.17 maintained under the direction of the state agency; 33.18 (2) may subpoena witnesses and administer oaths, make 33.19 rules, and take such action as may be necessary, or desirable 33.20 for carrying out the provisions of Laws 1937, chapter 438. All 33.21 rules made by the state agency shall be binding on the counties 33.22 and shall be complied with by the respective county agencies; 33.23 (3) establish adequate standards for personnel employed by 33.24 the counties and the state agency in the administration of Laws 33.25 1937, chapter 438, and make the necessary rules to maintain such 33.26 standards; 33.27 (4) prescribe the form of and print and supply to the 33.28 county agencies blanks for applications, reports, affidavits, 33.29 and such other forms as it may deem necessary and advisable; 33.30 (5) cooperate with the federal government and its public 33.31 welfare agencies in any reasonable manner as may be necessary to 33.32 qualify for federal aid for aid to dependent childrentemporary 33.33 assistance for needy families and in conformity with the33.34 provisions of Laws 1937, chapter 438title I of Public Law 33.35 Number 104-193, the Personal Responsibility and Work Opportunity 33.36 Reconciliation Act of 1996 and successor amendments, including 34.1 the making of such reports and such forms and containing such 34.2 information as the Federal Social Security Board may from time 34.3 to time require, and comply with such provisions as such board 34.4 may from time to time find necessary to assure the correctness 34.5 and verification of such reports; 34.6 (6) may cooperate with other state agencies in establishing 34.7 reciprocal agreements in instances where a child receiving aid34.8 to dependent childrenMinnesota family investment program 34.9 assistance moves or contemplates moving into or out of the 34.10 state, in order that such child may continue to receive 34.11 supervised aid from the state moved from until the child shall 34.12 have resided for one year in the state moved to; 34.13 (7) on or before October 1 in each even-numbered year make 34.14 a biennial report to the governor concerning the activities of 34.15 the agency; and 34.16 (8) enter into agreements with other departments of the 34.17 state as necessary to meet all requirements of the federal 34.18 government. 34.19 Sec. 35. Minnesota Statutes 1998, section 256.017, 34.20 subdivision 1, is amended to read: 34.21 Subdivision 1. [AUTHORITY AND PURPOSE.] The commissioner 34.22 shall administer a compliance system for aid to families with34.23 dependent children,the Minnesota family investment 34.24 program-statewideprogram, the food stamp program, emergency 34.25 assistance, general assistance, medical assistance, general 34.26 assistance medical care, emergency general assistance, Minnesota 34.27 supplemental assistance, preadmission screening, and alternative 34.28 care grants under the powers and authorities named in section 34.29 256.01, subdivision 2. The purpose of the compliance system is 34.30 to permit the commissioner to supervise the administration of 34.31 public assistance programs and to enforce timely and accurate 34.32 distribution of benefits, completeness of service and efficient 34.33 and effective program management and operations, to increase 34.34 uniformity and consistency in the administration and delivery of 34.35 public assistance programs throughout the state, and to reduce 34.36 the possibility of sanctions and fiscal disallowances for 35.1 noncompliance with federal regulations and state statutes. 35.2 The commissioner shall utilize training, technical 35.3 assistance, and monitoring activities, as specified in section 35.4 256.01, subdivision 2, to encourage county agency compliance 35.5 with written policies and procedures. 35.6 Sec. 36. Minnesota Statutes 1998, section 256.017, 35.7 subdivision 2, is amended to read: 35.8 Subd. 2. [DEFINITIONS.] The following terms have the 35.9 meanings given for purposes of this section. 35.10 (a) "Administrative penalty" means an adjustment against 35.11 the county agency's state and federal benefit and federal 35.12 administrative reimbursement when the commissioner determines 35.13 that the county agency is not in compliance with the policies 35.14 and procedures established by the commissioner. 35.15 (b) "Quality control case penalty" means an adjustment 35.16 against the county agency's federal administrative reimbursement 35.17 and state and federal benefit reimbursement when the 35.18 commissioner determines through a quality control review that 35.19 the county agency has made incorrect payments, terminations, or 35.20 denials of benefits as determined by state quality control 35.21 procedures for the aid to families with dependent 35.22 children program formerly codified in sections 256.72 to 256.87, 35.23 Minnesota family investment program-statewideprogram, food 35.24 stamp, or medical assistance programs, or any other programs for 35.25 which the commissioner has developed a quality control system. 35.26 Quality control case penalties apply only to agency errors as 35.27 defined by state quality control procedures. 35.28 (c) "Quality control/quality assurance" means a review 35.29 system of a statewide random sample of cases, designed to 35.30 provide data on program outcomes and the accuracy with which 35.31 state and federal policies are being applied in issuing benefits 35.32 and as a fiscal audit to ensure the accuracy of expenditures. 35.33 The quality control/quality assurance system is administered by 35.34 the department. For the aid to families with dependent children 35.35 program formerly codified in sections 256.72 to 35.36 256.87, Minnesota family investment program-statewide,food 36.1 stamp, and medical assistance programs, the quality control 36.2 system is that required by federal regulation, or those 36.3 developed by the commissioner. 36.4 Sec. 37. Minnesota Statutes 1998, section 256.017, 36.5 subdivision 4, is amended to read: 36.6 Subd. 4. [DETERMINING THE AMOUNT OF THE QUALITY CONTROL 36.7 CASE PENALTY.] (a) The amount of the quality control case 36.8 penalty is limited to the amount of the dollar error for the 36.9 quality control sample month in a reviewed case as determined by 36.10 the state quality control review procedures for the aid to 36.11 families with dependent children program formerly codified in 36.12 sections 256.72 to 256.87, Minnesota family investment36.13 program-statewideand food stamp programs or for any other 36.14 income transfer program for which the commissioner develops a 36.15 quality control program. 36.16 (b) Payment errors in medical assistance or any other 36.17 medical services program for which the department develops a 36.18 quality control program are subject to set rate penalties based 36.19 on the average cost of the specific quality control error 36.20 element for a sample review month for that household size and 36.21 status of institutionalization and as determined from state 36.22 quality control data in the preceding fiscal year for the 36.23 corresponding program. 36.24 (c) Errors identified in negative action cases, such as 36.25 incorrect terminations or denials of assistance are subject to 36.26 set rate penalties based on the average benefit cost of that 36.27 household size as determined from state quality control data in 36.28 the preceding fiscal year for the corresponding program. 36.29 Sec. 38. Minnesota Statutes 1998, section 256.019, is 36.30 amended to read: 36.31 256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 36.32 When an amount is recovered from any source for assistance 36.33 given under the provisions governing public assistance programs 36.34 including the aid to families with dependent children program 36.35 formerly codified in sections 256.72 to 256.87, MFIP-SMFIP, 36.36 general assistance medical care, emergency assistance, general 37.1 assistance, and Minnesota supplemental aid, the county may keep 37.2 one-half of recovery made by the county agency using any method 37.3 other than recoupment. For medical assistance, if the recovery 37.4 is made by a county agency using any method other than 37.5 recoupment, the county may keep one-half of the nonfederal share 37.6 of the recovery. This does not apply to recoveries from medical 37.7 providers or to recoveries begun by the department of human 37.8 services' surveillance and utilization review division, state 37.9 hospital collections unit, and the benefit recoveries division 37.10 or, by the attorney general's office, or child support 37.11 collections. In the food stamp program, the nonfederal share of 37.12 recoveries in the federal tax refund offset program (FTROP) only 37.13 will be divided equally between the state agency and the 37.14 involved county agency. 37.15 Sec. 39. Minnesota Statutes 1998, section 256.025, 37.16 subdivision 2, is amended to read: 37.17 Subd. 2. [COVERED PROGRAMS AND SERVICES.] The procedures 37.18 in this section govern payment of county agency expenditures for 37.19 benefits and services distributed under the following programs: 37.20 (1) the aid to families with dependent children formerly 37.21 codified under sections 256.82, subdivision 1, and 256.935, 37.22 subdivision 1, for assistance costs incurred prior to July 1, 37.23 1997; 37.24 (2) medical assistance under sections 256B.041, subdivision 37.25 5, and 256B.19, subdivision 1; 37.26 (3) general assistance medical care under section 256D.03, 37.27 subdivision 6, for assistance costs incurred prior to July 1, 37.28 1997; 37.29 (4) general assistance under section 256D.03, subdivision 37.30 2, for assistance costs incurred prior to July 1, 1997; 37.31 (5) work readiness under section 256D.03, subdivision 2, 37.32 for assistance costs incurred prior to July 1, 1995; 37.33 (6) the emergency assistance formerly codified under 37.34 section 256.871, subdivision 6, for assistance costs incurred 37.35 prior to July 1, 1997; 37.36 (7) Minnesota supplemental aid under section 256D.36, 38.1 subdivision 1, for assistance costs incurred prior to July 1, 38.2 1997; 38.3 (8) preadmission screening and alternative care grants for 38.4 assistance costs incurred prior to July 1, 1997; 38.5 (9) work readiness services under section 256D.051 for 38.6 employment and training services costs incurred prior to July 1, 38.7 1995; 38.8 (10) case management services underformerly codified in 38.9 Minnesota Statutes 1994, section 256.736, subdivision 1311, for 38.10 case management service costs incurred prior to July 1, 1995; 38.11 (11) general assistance claims processing, medical 38.12 transportation and related costs for costs incurred prior to 38.13 July 1, 1997; 38.14 (12) medical transportation and related costs for 38.15 transportation and related costs incurred prior to July 1, 1997; 38.16 and 38.17 (13) group residential housing under section 256I.05, 38.18 subdivision 8, transferred from programs in clauses (4) and (7), 38.19 for assistance costs incurred prior to July 1, 1997. 38.20 Sec. 40. Minnesota Statutes 1998, section 256.046, 38.21 subdivision 1, is amended to read: 38.22 Subdivision 1. [HEARING AUTHORITY.] A local agency shall 38.23 initiate an administrative fraud disqualification hearing for 38.24 individuals accused of wrongfully obtaining assistance or 38.25 intentional program violations, in lieu of a criminal action 38.26 when it has not been pursued, in the aid to families with 38.27 dependent children program formerly codified in sections 256.72 38.28 to 256.87, MFIP-SMFIP, child care, general assistance, family 38.29 general assistance program formerly codified in section 256D.05, 38.30 subdivision 1, clause (15), Minnesota supplemental aid, medical 38.31 care, or food stamp programs. The hearing is subject to the 38.32 requirements of section 256.045 and the requirements in Code of 38.33 Federal Regulations, title 7, section 273.16, for the food stamp 38.34 program and title 45, section 235.112, as of September 30, 1995, 38.35 for the cash grant and medical care programs. 38.36 Sec. 41. Minnesota Statutes 1998, section 256.0471, 39.1 subdivision 1, is amended to read: 39.2 Subdivision 1. [QUALIFYING OVERPAYMENT.] Any overpayment 39.3 for assistance granted under sectionssection 119B.05, the MFIP 39.4 program formerly codified under sections 256.031 to 256.0361, 39.5 and the AFDC program formerly codified under sections 256.72 to 39.6 256.871; chapters 256B, 256D, 256I, 256J, and 256K; and the food 39.7 stamp program, except agency error claims, become a judgment by 39.8 operation of law 90 days after the notice of overpayment is 39.9 personally served upon the recipient in a manner that is 39.10 sufficient under rule 4.03(a) of the Rules of Civil Procedure 39.11 for district courts, or by certified mail, return receipt 39.12 requested. This judgment shall be entitled to full faith and 39.13 credit in this and any other state. 39.14 Sec. 42. Minnesota Statutes 1998, section 256.741, 39.15 subdivision 1, is amended to read: 39.16 Subdivision 1. [PUBLIC ASSISTANCE.] (a) The term "public 39.17 assistance" as used in this chapter and chapters 257, 518, and 39.18 518C, includes any form of assistance provided under the AFDC 39.19 program formerly codified in sections 256.72 to 256.87, MFIP ,39.20 and MFIP-R formerly codified under chapter 256, MFIP-SMFIP 39.21 under chapter 256J, andwork first program under chapter 256K; 39.22 child care assistance provided through the child care 39.23 fund according tounder chapter 119B; any form of medical 39.24 assistance under chapter 256B; MinnesotaCare under chapter 256L; 39.25 and foster care as provided under title IV-E of the Social 39.26 Security Act. 39.27 (b) The term "child support agency" as used in this section 39.28 refers to the public authority responsible for child support 39.29 enforcement. 39.30 (c) The term "public assistance agency" as used in this 39.31 section refers to a public authority providing public assistance 39.32 to an individual. 39.33 Sec. 43. Minnesota Statutes 1998, section 256.741, 39.34 subdivision 2, is amended to read: 39.35 Subd. 2. [ASSIGNMENT OF SUPPORT AND MAINTENANCE RIGHTS.] 39.36 (a) An individual receiving public assistance in the form of 40.1 assistance under any of the following programs: the AFDC 40.2 program formerly codified in sections 256.72 to 256.87, MFIP-S40.3 MFIP under chapter 256J, MFIP-R ,and MFIP formerly codified 40.4 under chapter 256, andor work first is considered to have 40.5 assigned to the state at the time of application all rights to 40.6 child support and maintenance from any other person the 40.7 applicant or recipient may have in the individual's own behalf 40.8 or in the behalf of any other family member for whom application 40.9 for public assistance is made. An assistance unit is ineligible 40.10 for aid to families with dependent children or its successorthe 40.11 Minnesota family investment program unless the caregiver assigns 40.12 all rights to child support and spousal maintenance benefits 40.13 according to this section. 40.14 (1) An assignment made according to this section is 40.15 effective as to: 40.16 (i) any current child support and current spousal 40.17 maintenance; and 40.18 (ii) any accrued child support and spousal maintenance 40.19 arrears. 40.20 (2) An assignment made after September 30, 1997, is 40.21 effective as to: 40.22 (i) any current child support and current spousal 40.23 maintenance; 40.24 (ii) any accrued child support and spousal maintenance 40.25 arrears collected before October 1, 2000, or the date the 40.26 individual terminates assistance, whichever is later; and 40.27 (iii) any accrued child support and spousal maintenance 40.28 arrears collected under federal tax intercept. 40.29 (b) An individual receiving public assistance in the form 40.30 of medical assistance, including MinnesotaCare, is considered to 40.31 have assigned to the state at the time of application all rights 40.32 to medical support from any other person the individual may have 40.33 in the individual's own behalf or in the behalf of any other 40.34 family member for whom medical assistance is provided. 40.35 An assignment made after September 30, 1997, is effective 40.36 as to any medical support accruing after the date of medical 41.1 assistance or MinnesotaCare eligibility. 41.2 (c) An individual receiving public assistance in the form 41.3 of child care assistance under the child care fund pursuant to 41.4 chapter 119B is considered to have assigned to the state at the 41.5 time of application all rights to child care support from any 41.6 other person the individual may have in the individual's own 41.7 behalf or in the behalf of any other family member for whom 41.8 child care assistance is provided. 41.9 An assignment made according to this paragraph is effective 41.10 as to: 41.11 (1) any current child care support and any child care 41.12 support arrears assigned and accruing after July 1, 1997, that 41.13 are collected before October 1, 2000; and 41.14 (2) any accrued child care support arrears collected under 41.15 federal tax intercept. 41.16 Sec. 44. Minnesota Statutes 1998, section 256.82, 41.17 subdivision 2, is amended to read: 41.18 Subd. 2. [FOSTER CARE MAINTENANCE PAYMENTS.] 41.19 Notwithstanding subdivision 1, for the purposes of foster care41.20 maintenance payments under title IV-E of the federal Social41.21 Security Act, United States Code, title 42, sections 670 to 676,41.22 during the period beginning July 1, 1985, and ending December41.23 31, 1985, the county paying the maintenance costs shall be41.24 reimbursed for the costs from those federal funds available for41.25 that purpose together with an amount of state funds equal to a41.26 percentage of the difference between the total cost and the41.27 federal funds made available for payment. This percentage shall41.28 not exceed the percentage specified in subdivision 1 for the aid41.29 to families with dependent children program. In the event that41.30 the state appropriation for this purpose is less than the state41.31 percentage set in subdivision 1, the reimbursement shall be41.32 ratably reduced to the county.Beginning January 1, 1986, for 41.33 the purpose of foster care maintenance payments under title IV-E 41.34 of the Social Security Act, United States Code, title 42, 41.35 sections 670 to 676, the county paying the maintenance costs 41.36 must be reimbursed for the costs from the federal money 42.1 available for the purpose. Beginning July 1, 1997, for the 42.2 purposes of determining a child's eligibility under title IV-E 42.3 of the Social Security Act, the placing agency shall use AFDC 42.4 requirements in effect on July 16, 1996. 42.5 Sec. 45. Minnesota Statutes 1998, section 256.935, 42.6 subdivision 1, is amended to read: 42.7 Subdivision 1. On the death of any person receiving public 42.8 assistance through aid to dependent children or MFIP-SMFIP, the 42.9 county agency shall pay an amount for funeral expenses not 42.10 exceeding the amount paid for comparable services under section 42.11 261.035 plus actual cemetery charges. No funeral expenses shall 42.12 be paid if the estate of the deceased is sufficient to pay such 42.13 expenses or if the spouse, who was legally responsible for the 42.14 support of the deceased while living, is able to pay such 42.15 expenses; provided, that the additional payment or donation of 42.16 the cost of cemetery lot, interment, religious service, or for 42.17 the transportation of the body into or out of the community in 42.18 which the deceased resided, shall not limit payment by the 42.19 county agency as herein authorized. Freedom of choice in the 42.20 selection of a funeral director shall be granted to persons 42.21 lawfully authorized to make arrangements for the burial of any 42.22 such deceased recipient. In determining the sufficiency of such 42.23 estate, due regard shall be had for the nature and marketability 42.24 of the assets of the estate. The county agency may grant 42.25 funeral expenses where the sale would cause undue loss to the 42.26 estate. Any amount paid for funeral expenses shall be a prior 42.27 claim against the estate, as provided in section 524.3-805, and 42.28 any amount recovered shall be reimbursed to the agency which 42.29 paid the expenses. The commissioner shall specify requirements 42.30 for reports, including fiscal reports, according to section 42.31 256.01, subdivision 2, paragraph (17). The state share shall 42.32 pay the entire amount of county agency expenditures. Benefits 42.33 shall be issued to recipients by the state or county subject to 42.34 provisions of section 256.017. 42.35 Sec. 46. Minnesota Statutes 1998, section 256.98, 42.36 subdivision 1, is amended to read: 43.1 Subdivision 1. [WRONGFULLY OBTAINING ASSISTANCE.] A person 43.2 who commits any of the following acts or omissions with intent 43.3 to defeat the purposes of sections 145.891 to 145.897, 43.4 256.12,the MFIP program formerly codified in sections 256.031 43.5 to 256.361256.0361, the AFDC program formerly codified in 43.6 sections 256.72 to 256.871, 256.9365, 256.94 to 256.966, child43.7 care, MFIP-S, chapterand chapters 256B, 256D, 256J, 256K, or 43.8 256L, or all of these sections,is guilty of theft and shall be 43.9 sentenced under section 609.52, subdivision 3, clauses (1) to 43.10 (5): 43.11 (1) obtains or attempts to obtain, or aids or abets any 43.12 person to obtain by means of a willfully false statement or 43.13 representation, by intentional concealment of any material fact, 43.14 or by impersonation or other fraudulent device, assistance or 43.15 the continued receipt of assistance, to include child care or 43.16 vouchers produced according to sections 145.891 to 145.897 and 43.17 MinnesotaCare services according to sections 256.9365, 256.94, 43.18 and 256L.01 to 256L.16, to which the person is not entitled or 43.19 assistance greater than that to which the person is entitled; 43.20 (2) knowingly aids or abets in buying or in any way 43.21 disposing of the property of a recipient or applicant of 43.22 assistance without the consent of the county agency. 43.23 The continued receipt of assistance to which the person is 43.24 not entitled or greater than that to which the person is 43.25 entitled as a result of any of the acts, failure to act, or 43.26 concealment described in this subdivision shall be deemed to be 43.27 continuing offenses from the date that the first act or failure 43.28 to act occurred. 43.29 Sec. 47. Minnesota Statutes 1998, section 256.98, 43.30 subdivision 8, is amended to read: 43.31 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 43.32 to be guilty of wrongfully obtaining assistance by a federal or 43.33 state court or by an administrative hearing determination, or 43.34 waiver thereof, through a disqualification consent agreement, or 43.35 as part of any approved diversion plan under section 401.065, or 43.36 any court-ordered stay which carries with it any probationary or 44.1 other conditions, in the aid to families with dependent children44.2 program, theMinnesota family assistance program-statewide44.3 program, the food stamp program, the Minnesota family investment44.4 plan,child care program, the general assistance or family44.5 general assistanceprogram, or the Minnesota supplemental aid 44.6 program shall be disqualified from that program. The needs of 44.7 that individual shall not be taken into consideration in 44.8 determining the grant level for that assistance unit: 44.9 (1) for one year after the first offense; 44.10 (2) for two years after the second offense; and 44.11 (3) permanently after the third or subsequent offense. 44.12 The period of program disqualification shall begin on the 44.13 date stipulated on the advance notice of disqualification 44.14 without possibility of postponement for administrative stay or 44.15 administrative hearing and shall continue through completion 44.16 unless and until the findings upon which the sanctions were 44.17 imposed are reversed by a court of competent jurisdiction. The 44.18 period for which sanctions are imposed is not subject to 44.19 review. The sanctions provided under this subdivision are in 44.20 addition to, and not in substitution for, any other sanctions 44.21 that may be provided for by law for the offense involved. A 44.22 disqualification established through hearing or waiver shall 44.23 result in the disqualification period beginning immediately 44.24 unless the person has become otherwise ineligible for 44.25 assistance. If the person is ineligible for assistance, the 44.26 disqualification period begins when the person again meets the 44.27 eligibility criteria of the program from which they were 44.28 disqualified and makes application for that program. 44.29 Sec. 48. Minnesota Statutes 1998, section 256.981, is 44.30 amended to read: 44.31 256.981 [TRAINING OF WELFARE FRAUD PROSECUTORS.] 44.32 The commissioner of human services shall, to the extent an 44.33 appropriation is provided for this purpose, contract with the 44.34 county attorney's council or other public or private entity 44.35 experienced in providing training for prosecutors to conduct 44.36 quarterly workshops and seminars focusing on current aid to45.1 families with dependent children andMinnesota family investment 45.2 program-statewideprogram issues, other income maintenance 45.3 program changes, recovery issues, alternative sentencing 45.4 methods, use of technical aids for interviews and 45.5 interrogations, and other matters affecting prosecution of 45.6 welfare fraud cases. 45.7 Sec. 49. Minnesota Statutes 1998, section 256.983, 45.8 subdivision 4, is amended to read: 45.9 Subd. 4. [FUNDING.] (a) County agency reimbursement shall 45.10 be made through the settlement provisions applicable to the aid 45.11 to families with dependent children program formerly codified in 45.12 sections 256.72 to 256.87, food stamp program, Minnesota family 45.13 investment program-statewideprogram, and medical assistance 45.14 program and other federal and state-funded programs. 45.15 (b) The commissioner will maintain program compliance if 45.16 for any three consecutive month period, a county agency fails to 45.17 comply with fraud prevention investigation program guidelines, 45.18 or fails to meet the cost-effectiveness standards developed by 45.19 the commissioner. This result is contingent on the commissioner 45.20 providing written notice, including an offer of technical 45.21 assistance, within 30 days of the end of the third or subsequent 45.22 month of noncompliance. The county agency shall be required to 45.23 submit a corrective action plan to the commissioner within 30 45.24 days of receipt of a notice of noncompliance. Failure to submit 45.25 a corrective action plan or, continued deviation from standards 45.26 of more than ten percent after submission of a corrective action 45.27 plan, will result in denial of funding for each subsequent 45.28 month, or billing the county agency for fraud prevention 45.29 investigation (FPI) service provided by the commissioner, or 45.30 reallocation of program grant funds, or investigative resources, 45.31 or both, to other counties. The denial of funding shall apply 45.32 to the general settlement received by the county agency on a 45.33 quarterly basis and shall not reduce the grant amount applicable 45.34 to the FPI project. 45.35 Sec. 50. Minnesota Statutes 1998, section 256.9861, 45.36 subdivision 5, is amended to read: 46.1 Subd. 5. [FUNDING.] (a) State funding shall be made 46.2 available contingent on counties submitting a plan that is 46.3 approved by the department of human services. Failure or delay 46.4 in obtaining that approval shall not, however, eliminate the 46.5 obligation to maintain fraud control efforts at the June 30, 46.6 1996, level. County agency reimbursement shall be made through 46.7 the settlement provisions applicable to the AFDC, MFIP-SMFIP, 46.8 food stamp, and medical assistance programs. 46.9 (b) Should a county agency fail to comply with the 46.10 standards set, or fail to meet cost-effectiveness standards 46.11 developed by the commissioner for any three-month period, the 46.12 commissioner shall deny reimbursement or administrative costs, 46.13 after allowing an opportunity to establish compliance. 46.14 (c) Any denial of reimbursement under paragraph (b) is 46.15 contingent on the commissioner providing written notice, 46.16 including an offer of technical assistance, within 30 days of 46.17 the end of the third or subsequent months of noncompliance. The 46.18 county agency shall be required to submit a corrective action 46.19 plan to the commissioner within 30 days of receipt of a notice 46.20 of noncompliance. Failure to submit a corrective action plan or 46.21 continued deviation from standards of more than ten percent 46.22 after submission of corrective action plan, will result in 46.23 denial of funding for each such month during the grant year, or 46.24 billing of the county agency for program integrity reinvestment 46.25 project services provided by the commissioner or reallocation of 46.26 grant funds to other counties. The denial of funding shall 46.27 apply to the general settlement received by the county agency on 46.28 a quarterly basis and shall not reduce the grant amount 46.29 applicable to the program integrity reinvestment project. 46.30 Sec. 51. Minnesota Statutes 1998, section 256B.031, 46.31 subdivision 4, is amended to read: 46.32 Subd. 4. [PREPAID HEALTH PLAN RATES.] For payments made 46.33 during calendar year 1988, the monthly maximum allowable rate 46.34 established by the commissioner of human services for payment to 46.35 prepaid health plans must not exceed 90 percent of the projected 46.36 average monthly per capita fee-for-service medical assistance 47.1 costs for state fiscal year 1988 for recipients of the aid to 47.2 families with dependent children program formerly codified in 47.3 sections 256.72 to 256.87. The base year for projecting the 47.4 average monthly per capita fee-for-service medical assistance 47.5 costs is state fiscal year 1986. A maximum allowable per capita 47.6 rate must be established collectively for Anoka, Carver, Dakota, 47.7 Hennepin, Ramsey, St. Louis, Scott, and Washington counties. A 47.8 separate maximum allowable per capita rate must be established 47.9 collectively for all other counties. The maximum allowable per 47.10 capita rate may be adjusted to reflect utilization differences 47.11 among eligible classes of recipients. For payments made during 47.12 calendar year 1989, the maximum allowable rate must be 47.13 calculated in the same way as 1988 rates, except the base year 47.14 is state fiscal year 1987. For payments made during calendar 47.15 year 1990 and later years, the commissioner shall consult with 47.16 an independent actuary in establishing prepayment rates, but 47.17 shall retain final control over the rate methodology. Rates 47.18 established for prepaid health plans must be based on the 47.19 services that the prepaid health plan provides under contract 47.20 with the commissioner. 47.21 Sec. 52. Minnesota Statutes 1998, section 256B.031, 47.22 subdivision 5, is amended to read: 47.23 Subd. 5. [FREE CHOICE LIMITED.] (a) The commissioner may 47.24 require recipients of aid to families with dependent47.25 childrenthe Minnesota family investment program to enroll in a 47.26 prepaid health plan and receive services from or through the 47.27 prepaid health plan, with the following exceptions: 47.28 (1) recipients who are refugees and whose health services 47.29 are reimbursed 100 percent by the federal government; and 47.30 (2) recipients who are placed in a foster home or 47.31 facility. If placement occurs before the seventh day prior to 47.32 the end of any month, the recipient will be disenrolled from the 47.33 recipient's prepaid health plan effective the first day of the 47.34 following month. If placement occurs after the seventh day 47.35 before the end of any month, that recipient will be disenrolled 47.36 from the prepaid health plan on the first day of the second 48.1 month following placement. The prepaid health plan must provide 48.2 all services set forth in subdivision 2 during the interim 48.3 period. 48.4 Enrollment in a prepaid health plan is mandatory only when 48.5 recipients have a choice of at least two prepaid health plans. 48.6 (b) Recipients who become eligible on or after December 1, 48.7 1987, must choose a health plan within 30 days of the date 48.8 eligibility is determined. At the time of application, the 48.9 local agency shall ask the recipient whether the recipient has a 48.10 primary health care provider. If the recipient has not chosen a 48.11 health plan within 30 days but has provided the local agency 48.12 with the name of a primary health care provider, the local 48.13 agency shall determine whether the provider participates in a 48.14 prepaid health plan available to the recipient and, if so, the 48.15 local agency shall select that plan on the recipient's behalf. 48.16 If the recipient has not provided the name of a primary health 48.17 care provider who participates in an available prepaid health 48.18 plan, commissioner shall randomly assign the recipient to a 48.19 health plan. 48.20 (c) If possible, the local agency shall ask whether the 48.21 recipient has a primary health care provider and the procedures 48.22 under paragraph (b) shall apply. If a recipient does not choose 48.23 a prepaid health plan by this date, the commissioner shall 48.24 randomly assign the recipient to a health plan. 48.25 (d) The commissioner shall request a waiver from the 48.26 federal Health Care Financing Administration to limit a 48.27 recipient's ability to change health plans to once every six or 48.28 12 months. If such a waiver is obtained, each recipient must be 48.29 enrolled in the health plan for a minimum of six or 12 months. 48.30 A recipient may change health plans once within the first 60 48.31 days after initial enrollment. 48.32 (e) Women who are receiving medical assistance due to 48.33 pregnancy and later become eligible for aid to families with48.34 dependent childrenthe Minnesota family investment program are 48.35 not required to choose a prepaid health plan until 60 days 48.36 postpartum. An infant born as a result of that pregnancy must 49.1 be enrolled in a prepaid health plan at the same time as the 49.2 mother. 49.3 (f) If third-party coverage is available to a recipient 49.4 through enrollment in a prepaid health plan through employment, 49.5 through coverage by the former spouse, or if a duty of support 49.6 has been imposed by law, order, decree, or judgment of a court 49.7 under section 518.551, the obligee or recipient shall 49.8 participate in the prepaid health plan in which the obligee has 49.9 enrolled provided that the commissioner has contracted with the 49.10 plan. 49.11 Sec. 53. Minnesota Statutes 1998, section 256B.69, 49.12 subdivision 5a, is amended to read: 49.13 Subd. 5a. [MANAGED CARE CONTRACTS.] Managed care contracts 49.14 under this section ,and sections 256.9363,256L.12 and 256D.03, 49.15 shall be entered into or renewed on a calendar year basis 49.16 beginning January 1, 1996. Managed care contracts which were in 49.17 effect on June 30, 1995, and set to renew on July 1, 1995, shall 49.18 be renewed for the period July 1, 1995 through December 31, 1995 49.19 at the same terms that were in effect on June 30, 1995. 49.20 Sec. 54. Minnesota Statutes 1998, section 256C.21, is 49.21 amended to read: 49.22 256C.21 [DEAF AND HARD-OF-HEARING SERVICES ACT; CITATION.] 49.23 Sections 256C.21 to 256C.27256C.26 may be cited as the 49.24 "Deaf and Hard-of-Hearing Services Act." 49.25 Sec. 55. Minnesota Statutes 1998, section 256C.23, 49.26 subdivision 1, is amended to read: 49.27 Subdivision 1. For the purposes of sections 256C.21 to 49.28 256C.27256C.26, the terms defined in this section shall have 49.29 the meanings given them, unless the context clearly indicates 49.30 otherwise. 49.31 Sec. 56. Minnesota Statutes 1998, section 256D.01, 49.32 subdivision 1a, is amended to read: 49.33 Subd. 1a. [STANDARDS.] (a) A principal objective in 49.34 providing general assistance is to provide for single adults, 49.35 childless couples, or children as defined in section 256D.02, 49.36 subdivision 6, ineligible for federal programs who are unable to 50.1 provide for themselves. The minimum standard of assistance 50.2 determines the total amount of the general assistance grant 50.3 without separate standards for shelter, utilities, or other 50.4 needs. 50.5 (b) The commissioner shall set the standard of assistance 50.6 for an assistance unit consisting of an adult recipient who is 50.7 childless and unmarried or living apart from children and spouse 50.8 and who does not live with a parent or parents or a legal 50.9 custodian. When the other standards specified in this 50.10 subdivision increase, this standard must also be increased by 50.11 the same percentage. 50.12 (c) For an assistance unit consisting of a single adult who 50.13 lives with a parent or parents, the general assistance standard 50.14 of assistance is the amount that the aid to families with 50.15 dependent children standard of assistance, in effect on July 16, 50.16 1996, would increase if the recipient were added as an 50.17 additional minor child to an assistance unit consisting of the 50.18 recipient's parent and all of that parent's family members, 50.19 except that the standard may not exceed the standard for a 50.20 general assistance recipient living alone. Benefits received by 50.21 a responsible relative of the assistance unit under the 50.22 supplemental security income program, a workers' compensation 50.23 program, the Minnesota supplemental aid program, or any other 50.24 program based on the responsible relative's disability, and any 50.25 benefits received by a responsible relative of the assistance 50.26 unit under the social security retirement program, may not be 50.27 counted in the determination of eligibility or benefit level for 50.28 the assistance unit. Except as provided below, the assistance 50.29 unit is ineligible for general assistance if the available 50.30 resources or the countable income of the assistance unit and the 50.31 parent or parents with whom the assistance unit lives are such 50.32 that a family consisting of the assistance unit's parent or 50.33 parents, the parent or parents' other family members and the 50.34 assistance unit as the only or additional minor child would be 50.35 financially ineligible for general assistance. For the purposes 50.36 of calculating the countable income of the assistance unit's 51.1 parent or parents, the calculation methods, income deductions, 51.2 exclusions, and disregards used when calculating the countable 51.3 income for a single adult or childless couple must be used. 51.4 (d) For an assistance unit consisting of a childless 51.5 couple, the standards of assistance are the same as the first 51.6 and second adult standards of the aid to families with dependent 51.7 children program in effect on July 16, 1996. If one member of 51.8 the couple is not included in the general assistance grant, the 51.9 standard of assistance for the other is the second adult 51.10 standard of the aid to families with dependent children 51.11 program as of July 16, 1996. 51.12 Sec. 57. Minnesota Statutes 1998, section 256D.01, 51.13 subdivision 1e, is amended to read: 51.14 Subd. 1e. [RULES REGARDING EMERGENCY ASSISTANCE.] The 51.15 commissioner shall adopt rules under the terms of sections 51.16 256D.01 to 256D.21 for general assistance, to require use of the 51.17 emergency program under aid to families with dependent children51.18 or MFIP-SMFIP as the primary financial resource when available. 51.19 The commissioner shall adopt rules for eligibility for general 51.20 assistance of persons with seasonal income and may attribute 51.21 seasonal income to other periods not in excess of one year from 51.22 receipt by an applicant or recipient. General assistance 51.23 payments may not be made for foster care, child welfare 51.24 services, or other social services. Vendor payments and 51.25 vouchers may be issued only as authorized in sections 256D.05, 51.26 subdivision 6, and 256D.09. 51.27 Sec. 58. Minnesota Statutes 1998, section 256D.05, 51.28 subdivision 1, is amended to read: 51.29 Subdivision 1. [ELIGIBILITY.] (a) Each assistance unit 51.30 with income and resources less than the standard of assistance 51.31 established by the commissioner and with a member who is a 51.32 resident of the state shall be eligible for and entitled to 51.33 general assistance if the assistance unit is: 51.34 (1) a person who is suffering from a professionally 51.35 certified permanent or temporary illness, injury, or incapacity 51.36 which is expected to continue for more than 30 days and which 52.1 prevents the person from obtaining or retaining employment; 52.2 (2) a person whose presence in the home on a substantially 52.3 continuous basis is required because of the professionally 52.4 certified illness, injury, incapacity, or the age of another 52.5 member of the household; 52.6 (3) a person who has been placed in, and is residing in, a 52.7 licensed or certified facility for purposes of physical or 52.8 mental health or rehabilitation, or in an approved chemical 52.9 dependency domiciliary facility, if the placement is based on 52.10 illness or incapacity and is according to a plan developed or 52.11 approved by the county agency through its director or designated 52.12 representative; 52.13 (4) a person who resides in a shelter facility described in 52.14 subdivision 3; 52.15 (5) a person not described in clause (1) or (3) who is 52.16 diagnosed by a licensed physician, psychological practitioner, 52.17 or other qualified professional, as mentally retarded or 52.18 mentally ill, and that condition prevents the person from 52.19 obtaining or retaining employment; 52.20 (6) a person who has an application pending for, or is 52.21 appealing termination of benefits from, the social security 52.22 disability program or the program of supplemental security 52.23 income for the aged, blind, and disabled, provided the person 52.24 has a professionally certified permanent or temporary illness, 52.25 injury, or incapacity which is expected to continue for more 52.26 than 30 days and which prevents the person from obtaining or 52.27 retaining employment; 52.28 (7) a person who is unable to obtain or retain employment 52.29 because advanced age significantly affects the person's ability 52.30 to seek or engage in substantial work; 52.31 (8) a person who has been assessed by a vocational 52.32 specialist and, in consultation with the county agency, has been 52.33 determined to be unemployable for purposes of this clause; a 52.34 person is considered employable if there exist positions of 52.35 employment in the local labor market, regardless of the current 52.36 availability of openings for those positions, that the person is 53.1 capable of performing. The person's eligibility under this 53.2 category must be reassessed at least annually. The county 53.3 agency must provide notice to the person not later than 30 days 53.4 before annual eligibility under this item ends, informing the 53.5 person of the date annual eligibility will end and the need for 53.6 vocational assessment if the person wishes to continue 53.7 eligibility under this clause. For purposes of establishing 53.8 eligibility under this clause, it is the applicant's or 53.9 recipient's duty to obtain any needed vocational assessment; 53.10 (9) a person who is determined by the county agency, 53.11 according to permanent rules adopted by the commissioner, to be 53.12 learning disabled, provided that if a rehabilitation plan for 53.13 the person is developed or approved by the county agency, the 53.14 person is following the plan; 53.15 (10) a child under the age of 18 who is not living with a 53.16 parent, stepparent, or legal custodian, and only if: the child 53.17 is legally emancipated or living with an adult with the consent 53.18 of an agency acting as a legal custodian; the child is at least 53.19 16 years of age and the general assistance grant is approved by 53.20 the director of the county agency or a designated representative 53.21 as a component of a social services case plan for the child; or 53.22 the child is living with an adult with the consent of the 53.23 child's legal custodian and the county agency. For purposes of 53.24 this clause, "legally emancipated" means a person under the age 53.25 of 18 years who: (i) has been married; (ii) is on active duty 53.26 in the uniformed services of the United States; (iii) has been 53.27 emancipated by a court of competent jurisdiction; or (iv) is 53.28 otherwise considered emancipated under Minnesota law, and for 53.29 whom county social services has not determined that a social 53.30 services case plan is necessary, for reasons other than the 53.31 child has failed or refuses to cooperate with the county agency 53.32 in developing the plan; 53.33 (11) until March 31, 1998, a woman in the last trimester of53.34 pregnancy who does not qualify for aid to families with53.35 dependent children. A woman who is in the last trimester of53.36 pregnancy who is currently receiving aid to families with54.1 dependent children may be granted emergency general assistance54.2 to meet emergency needs;54.3 (12)a person who is eligible for displaced homemaker 54.4 services, programs, or assistance under section 268.96, but only 54.5 if that person is enrolled as a full-time student; 54.6 (13)(12) a person who lives more than four hours 54.7 round-trip traveling time from any potential suitable 54.8 employment; 54.9 (14)(13) a person who is involved with protective or 54.10 court-ordered services that prevent the applicant or recipient 54.11 from working at least four hours per day; 54.12 (15)(i) until March 31, 1998, a family as defined in54.13 section 256D.02, subdivision 5, which is ineligible for the aid54.14 to families with dependent children program;54.15 (ii) unless exempt under section 256D.051, subdivision 3a,54.16 each adult in the unit must participate in and cooperate with54.17 the food stamp employment and training program under section54.18 256D.051 each month that the unit receives general assistance54.19 benefits. The recipient's participation must begin no later54.20 than the first day of the first full month following the54.21 determination of eligibility for general assistance benefits.54.22 To the extent of available resources, and with the county54.23 agency's consent, the recipient may voluntarily continue to54.24 participate in food stamp employment and training services for54.25 up to three additional consecutive months immediately following54.26 termination of general assistance benefits in order to complete54.27 the provisions of the recipient's employability development54.28 plan. If an adult member fails without good cause to54.29 participate in or cooperate with the food stamp employment and54.30 training program, the county agency shall concurrently terminate54.31 that person's eligibility for general assistance and food stamps54.32 using the notice, good cause, conciliation and termination54.33 procedures specified in section 256D.051;54.34 (16)(14) a person over age 18 whose primary language is 54.35 not English and who is attending high school at least half time; 54.36 or 55.1 (17)(15) a person whose alcohol and drug addiction is a 55.2 material factor that contributes to the person's disability; 55.3 applicants who assert this clause as a basis for eligibility 55.4 must be assessed by the county agency to determine if they are 55.5 amenable to treatment; if the applicant is determined to be not 55.6 amenable to treatment, but is otherwise eligible for benefits, 55.7 then general assistance must be paid in vendor form, for the 55.8 individual's shelter costs up to the limit of the grant amount, 55.9 with the residual, if any, paid according to section 256D.09, 55.10 subdivision 2a; if the applicant is determined to be amenable to 55.11 treatment, then in order to receive benefits, the applicant must 55.12 be in a treatment program or on a waiting list and the benefits 55.13 must be paid in vendor form, for the individual's shelter costs, 55.14 up to the limit of the grant amount, with the residual, if any, 55.15 paid according to section 256D.09, subdivision 2a. 55.16 (b) As a condition of eligibility under paragraph (a), 55.17 clauses (1), (3), (5), (8), and (9), the recipient must complete 55.18 an interim assistance agreement and must apply for other 55.19 maintenance benefits as specified in section 256D.06, 55.20 subdivision 5, and must comply with efforts to determine the 55.21 recipient's eligibility for those other maintenance benefits. 55.22 (c) The burden of providing documentation for a county 55.23 agency to use to verify eligibility for general assistance or 55.24 for exemption from the food stamp employment and training 55.25 program is upon the applicant or recipient. The county agency 55.26 shall use documents already in its possession to verify 55.27 eligibility, and shall help the applicant or recipient obtain 55.28 other existing verification necessary to determine eligibility 55.29 which the applicant or recipient does not have and is unable to 55.30 obtain. 55.31 Sec. 59. Minnesota Statutes 1998, section 256D.05, 55.32 subdivision 3, is amended to read: 55.33 Subd. 3. [RESIDENTS OF SHELTER FACILITIES.] 55.34 Notwithstanding the provisions of subdivisions 1 and 2, general 55.35 assistance payments shall be made for maintenance costs and 55.36 security costs which are related to providing 24-hour staff 56.1 coverage at the facility incurred as a result of residence in a 56.2 secure crisis shelter, a housing network, or other shelter 56.3 facilities which provide shelter services to women and their 56.4 children who are being or have been assaulted by their spouses, 56.5 other male relatives, or other males with whom they are residing 56.6 or have resided in the past. 56.7 These payments shall be made directly to the shelter 56.8 facility from general assistance funds on behalf of women and 56.9 their children who are receiving, or who are eligible to 56.10 receive, aid to families with dependent childrenMinnesota 56.11 family investment program or general assistance. 56.12 In determining eligibility of women and children for 56.13 payment of general assistance under this subdivision, the asset 56.14 limitations of the aid to families with dependent children56.15 Minnesota family investment program shall be applied. Payments 56.16 to shelter facilities shall not affect the eligibility of 56.17 individuals who reside in shelter facilities for aid to families56.18 with dependent childrenMinnesota family investment program or 56.19 general assistance or payments made to individuals who reside in 56.20 shelter facilities through aid to families with dependent56.21 childrenMinnesota family investment program or general 56.22 assistance, except when required by federal law or regulation. 56.23 Sec. 60. Minnesota Statutes 1998, section 256D.05, 56.24 subdivision 5, is amended to read: 56.25 Subd. 5. [TRANSFERS OF PROPERTY.] The equity value of real 56.26 and personal property transferred without reasonable 56.27 compensation within 12 months preceding the date of application 56.28 for general assistance must be included in determining the 56.29 resources of an assistance unit in the same manner as in the aid56.30 to families with dependent children program under chapter 256 or56.31 MFIP-SMFIP under chapter 256J. 56.32 Sec. 61. Minnesota Statutes 1998, section 256D.051, 56.33 subdivision 3a, is amended to read: 56.34 Subd. 3a. [PERSONS REQUIRED TO REGISTER FOR AND 56.35 PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 56.36 (a) To the extent required under Code of Federal Regulations, 57.1 title 7, section 273.7(a), each applicant for and recipient of 57.2 food stamps is required to register for work as a condition of 57.3 eligibility for food stamp benefits. Applicants and recipients 57.4 are registered by signing an application or annual reapplication 57.5 for food stamps, and must be informed that they are registering 57.6 for work by signing the form. 57.7 (b) The commissioner shall determine, within federal 57.8 requirements, persons required to participate in the food stamp 57.9 employment and training (FSET) program. 57.10 (c) The following food stamp recipients are exempt from 57.11 mandatory participation in food stamp employment and training 57.12 services: 57.13 (1) recipients of benefits under the AFDC program, the57.14 MFIP-S,MFIP , and MFIP-R programsprogram, Minnesota 57.15 supplemental aid program, or the general assistance program; 57.16 (2) a child; 57.17 (3) a recipient over age 55; 57.18 (4) a recipient who has a mental or physical illness, 57.19 injury, or incapacity which is expected to continue for at least 57.20 30 days and which impairs the recipient's ability to obtain or 57.21 retain employment as evidenced by professional certification or 57.22 the receipt of temporary or permanent disability benefits issued 57.23 by a private or government source; 57.24 (5) a parent or other household member responsible for the 57.25 care of either a dependent child in the household who is under 57.26 age six or a person in the household who is professionally 57.27 certified as having a physical or mental illness, injury, or 57.28 incapacity. Only one parent or other household member may claim 57.29 exemption under this provision; 57.30 (6) a recipient receiving unemployment compensation or who 57.31 has applied for unemployment compensation and has been required 57.32 to register for work with the department of economic security as 57.33 part of the unemployment compensation application process; 57.34 (7) a recipient participating each week in a drug addiction 57.35 or alcohol abuse treatment and rehabilitation program, provided 57.36 the operators of the treatment and rehabilitation program, in 58.1 consultation with the county agency, recommend that the 58.2 recipient not participate in the food stamp employment and 58.3 training program; 58.4 (8) a recipient employed or self-employed for 30 or more 58.5 hours per week at employment paying at least minimum wage, or 58.6 who earns wages from employment equal to or exceeding 30 hours 58.7 multiplied by the federal minimum wage; or 58.8 (9) a student enrolled at least half time in any school, 58.9 training program, or institution of higher education. When 58.10 determining if a student meets this criteria, the school's, 58.11 program's or institution's criteria for being enrolled half time 58.12 shall be used. 58.13 Sec. 62. Minnesota Statutes 1998, section 256D.055, is 58.14 amended to read: 58.15 256D.055 [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 58.16 The commissioner of human services shall issue a request 58.17 for proposals from counties to submit a plan for developing and 58.18 implementing a county-designed program. The plan shall be for 58.19 first-time applicants for Minnesota family investment 58.20 program-statewide (MFIP-S) and, until March 31, 1998, aid to58.21 families with dependent children and family general assistance58.22 program and must emphasize the importance of becoming employed 58.23 and oriented into the work force in order to become 58.24 self-sufficient. The plan must target public assistance 58.25 applicants who are most likely to become self-sufficient quickly 58.26 with short-term assistance or services such as child care, child 58.27 support enforcement, or employment and training services. 58.28 The plan may include vendor payments, mandatory job search, 58.29 refocusing existing county or provider efforts, or other program 58.30 features. The commissioner may approve a county plan which 58.31 allows a county to use other program funding for the county work 58.32 focus program in a more flexible manner. Nothing in this 58.33 section shall allow payments made to the public assistance 58.34 applicant to be less than the amount the applicant would have 58.35 received if the program had not been implemented, or reduce or 58.36 eliminate a category of eligible participants from the program 59.1 without legislative approval. 59.2 The commissioner shall not approve a county plan that would59.3 have an adverse impact on the Minnesota family investment plan59.4 demonstration.If the plan is approved by the commissioner, the 59.5 county may implement the plan. If the plan is approved by the59.6 commissioner, but a federal waiver is necessary to implement the59.7 plan, the commissioner shall apply for the necessary federal59.8 waivers.59.9 Sec. 63. Minnesota Statutes 1998, section 256D.23, 59.10 subdivision 1, is amended to read: 59.11 Subdivision 1. [PROGRAM ESTABLISHED.] Minnesota residents 59.12 who meet the income and resource standards of section 256D.01, 59.13 subdivision 1a, but do not qualify for cash benefits under 59.14 sections 256D.01 to 256D.22256D.21, may qualify for a county 59.15 payment under this section. 59.16 Sec. 64. Minnesota Statutes 1998, section 256D.435, 59.17 subdivision 3, is amended to read: 59.18 Subd. 3. [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 59.19 Persons who live with the applicant or recipient, who have unmet 59.20 needs and for whom the applicant or recipient has financial 59.21 responsibility, must apply for and, if eligible, accept AFDC59.22 Minnesota family investment program and any other federally 59.23 funded benefits , including MFIP-S. 59.24 Sec. 65. Minnesota Statutes 1998, section 256D.44, 59.25 subdivision 5, is amended to read: 59.26 Subd. 5. [SPECIAL NEEDS.] In addition to the state 59.27 standards of assistance established in subdivisions 1 to 4, 59.28 payments are allowed for the following special needs of 59.29 recipients of Minnesota supplemental aid who are not residents 59.30 of a nursing home, a regional treatment center, or a group 59.31 residential housing facility. 59.32 (a) The county agency shall pay a monthly allowance for 59.33 medically prescribed diets payable under the AFDC program orthe 59.34 Minnesota family investment program-statewideprogram if the 59.35 cost of those additional dietary needs cannot be met through 59.36 some other maintenance benefit. 60.1 (b) Payment for nonrecurring special needs must be allowed 60.2 for necessary home repairs or necessary repairs or replacement 60.3 of household furniture and appliances using the payment standard 60.4 of the AFDC program in effect on July 16, 1996, for these 60.5 expenses, as long as other funding sources are not available. 60.6 (c) A fee for guardian or conservator service is allowed at 60.7 a reasonable rate negotiated by the county or approved by the 60.8 court. This rate shall not exceed five percent of the 60.9 assistance unit's gross monthly income up to a maximum of $100 60.10 per month. If the guardian or conservator is a member of the 60.11 county agency staff, no fee is allowed. 60.12 (d) The county agency shall continue to pay a monthly 60.13 allowance of $68 for restaurant meals for a person who was 60.14 receiving a restaurant meal allowance on June 1, 1990, and who 60.15 eats two or more meals in a restaurant daily. The allowance 60.16 must continue until the person has not received Minnesota 60.17 supplemental aid for one full calendar month or until the 60.18 person's living arrangement changes and the person no longer 60.19 meets the criteria for the restaurant meal allowance, whichever 60.20 occurs first. 60.21 (e) A fee of ten percent of the recipient's gross income or 60.22 $25, whichever is less, is allowed for representative payee 60.23 services provided by an agency that meets the requirements under 60.24 SSI regulations to charge a fee for representative payee 60.25 services. This special need is available to all recipients of 60.26 Minnesota supplemental aid regardless of their living 60.27 arrangement. 60.28 Sec. 66. Minnesota Statutes 1998, section 256E.03, 60.29 subdivision 2, is amended to read: 60.30 Subd. 2. (a) "Community social services" means services 60.31 provided or arranged for by county boards to fulfill the 60.32 responsibilities prescribed in section 256E.08, subdivision 1, 60.33 to the following groups of persons: 60.34 (1) families with children under age 18, who are 60.35 experiencing child dependency, neglect or abuse, and also 60.36 pregnant adolescents, adolescent parents under the age of 18 and 61.1 their children, and other adolescents; 61.2 (2) persons, including adolescents, who are under the 61.3 guardianship of the commissioner of human services as dependent 61.4 and neglected wards; 61.5 (3) adults who are in need of protection and vulnerable as 61.6 defined in section 626.5572; 61.7 (4) persons age 60 and over who are experiencing difficulty 61.8 living independently and are unable to provide for their own 61.9 needs; 61.10 (5) emotionally disturbed children and adolescents, 61.11 chronically and acutely mentally ill persons who are unable to 61.12 provide for their own needs or to independently engage in 61.13 ordinary community activities; 61.14 (6) persons with mental retardation as defined in section 61.15 252A.02, subdivision 2, or with related conditions as defined in 61.16 section 252.27, subdivision 1a, who are unable to provide for 61.17 their own needs or to independently engage in ordinary community 61.18 activities; 61.19 (7) drug dependent and intoxicated persons, including 61.20 adolescents, as defined in section 254A.02, subdivisions 5 and 61.21 7, and persons, including adolescents, at risk of harm to self 61.22 or others due to the ingestion of alcohol or other drugs; 61.23 (8) parents whose income is at or below 70 percent of the 61.24 state median income and who are in need of child care services 61.25 in order to secure or retain employment or to obtain the 61.26 training or education necessary to secure employment; 61.27 (9) children and adolescents involved in or at risk of 61.28 involvement with criminal activity; and 61.29 (10) other groups of persons who, in the judgment of the 61.30 county board, are in need of social services. 61.31 (b) Except as provided in section 256E.08, subdivision 5, 61.32 community social services do not include public assistance 61.33 programs known as aid to families with dependent children,the 61.34 Minnesota family investment program-statewideprogram, Minnesota 61.35 supplemental aid, medical assistance, general assistance, 61.36 general assistance medical care, or community health services 62.1 authorized by sections 145A.09 to 145A.13. 62.2 Sec. 67. Minnesota Statutes 1998, section 256E.06, 62.3 subdivision 1, is amended to read: 62.4 Subdivision 1. [FORMULA.] The commissioner of human 62.5 services shall distribute community social service aids to each 62.6 county board in an amount determined according to the following 62.7 formula: 62.8 In calendar year 1982 and thereafter: 62.9 (a) One-third shall be distributed on the basis of the 62.10 average unduplicated number of persons who receive AFDC,62.11 Minnesota family investment program-statewideprogram 62.12 assistance, general assistance, and medical assistance per month 62.13 in the calendar year two years prior to the year for which funds 62.14 are being distributed as reported in the average monthly 62.15 caseload reports required under sections 256.01, 256B.04 and 62.16 256D.04, and certified by the commissioner of human services; 62.17 and 62.18 (b) One-third shall be distributed on the basis of the 62.19 number of persons residing in the county as determined by the 62.20 most recent data of the state demographer; 62.21 (c) One-third shall be distributed on the basis of the 62.22 number of persons residing in the county who are 65 years old or 62.23 older as determined by the most recent data of the state 62.24 demographer. 62.25 Sec. 68. Minnesota Statutes 1998, section 256E.06, 62.26 subdivision 3, is amended to read: 62.27 Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human 62.28 services shall make payments for community social services to 62.29 each county in four installments per year. The commissioner of 62.30 human services may certify the payments for the first three 62.31 months of a calendar year based on estimates of the unduplicated 62.32 number of persons receiving AFDC,Minnesota family investment 62.33 program-statewideprogram, general assistance and medical 62.34 assistance for the prior year. The following three payments 62.35 shall be adjusted to reflect the actual unduplicated number of 62.36 persons who received AFDC,Minnesota family investment 63.1 program-statewideprogram, general assistance and medical 63.2 assistance as required by subdivision 1. The commissioner shall 63.3 ensure that the pertinent payment of the allotment for that 63.4 quarter is made to each county on the first working day after 63.5 the end of each quarter of the calendar year, except for the 63.6 last quarter of the calendar year. The commissioner shall 63.7 ensure that each county receives its payment of the allotment 63.8 for that quarter no later than the last working day of that 63.9 quarter. This scheduling of payments does not require 63.10 compliance with subdivision 10. 63.11 Sec. 69. Minnesota Statutes 1998, section 256E.07, 63.12 subdivision 1, is amended to read: 63.13 Subdivision 1. [FORMULA.] In federal fiscal year 1985 and 63.14 subsequent years, money for social services that is received 63.15 from the federal government to reimburse counties for social 63.16 service expenditures according to title XX of the Social 63.17 Security Act shall be allocated to each county according to the 63.18 following formula: 63.19 (a) Two-thirds shall be allocated on the basis of the 63.20 annual average number of unduplicated active monthly caseloads 63.21 in each county in the following programs: aid to families with63.22 dependent children,Minnesota family investment 63.23 program-statewideprogram, medical assistance, general 63.24 assistance, supplementary security income, and Minnesota 63.25 supplemental aid. 63.26 (b) One-third shall be allocated on the basis of the number 63.27 of persons residing in the county as determined by the most 63.28 recent estimate of the state demographer. 63.29 (c) The commissioner shall allocate to the counties 63.30 according to this section the total money received from the 63.31 federal government for social services according to title XX of 63.32 the Social Security Act, except that portion of the state's 63.33 allocation which the legislature authorizes for administrative 63.34 purposes and for migrant day care. 63.35 Sec. 70. Minnesota Statutes 1998, section 256E.08, 63.36 subdivision 3, is amended to read: 64.1 Subd. 3. [ADMINISTRATION OF INCOME MAINTENANCE PROGRAMS.] 64.2 The county board may designate itself, a human services board, 64.3 or a local social services agency to perform the functions of 64.4 local social services agencies as prescribed in chapter 393 and 64.5 assigned to county agencies in other law which pertains to the 64.6 administration of income maintenance programs known as aid to64.7 families with dependent children,Minnesota family investment 64.8 program-statewideprogram, general assistance, Minnesota 64.9 supplemental aid, medical assistance, general assistance medical 64.10 care, and emergency assistance. 64.11 Sec. 71. Minnesota Statutes 1998, section 256F.05, 64.12 subdivision 3, is amended to read: 64.13 Subd. 3. [GRANT FORMULA.] (a) The amount of money 64.14 allocated to counties under subdivision 2 shall first be 64.15 allocated in amounts equal to each county's guaranteed floor 64.16 according to paragraph (b), and second, any remaining available 64.17 funds allocated as follows: 64.18 (1) 50 percent of the funds shall be allocated based on the 64.19 population of the county under age 19 years as compared to the 64.20 state as a whole as determined by the most recent data from the 64.21 state demographer's office; 64.22 (2) 20 percent of funds shall be allocated based on the 64.23 county's percentage share of the unduplicated number of families 64.24 who received family preservation services under section 256F.03, 64.25 subdivision 5, paragraphs (a), (b), (c), and (e), in the most 64.26 recent calendar year available as determined by the 64.27 commissioner; 64.28 (3) ten percent of the funds shall be allocated based on 64.29 the county's percentage share of the unduplicated number of 64.30 children in substitute care in the most recent calendar year 64.31 available as determined by the commissioner; 64.32 (4) ten percent of the funds shall be allocated based on 64.33 the county's percentage share of the number of determined 64.34 maltreatment reports in the most recent calendar year available 64.35 as determined by the commissioner; 64.36 (5) five percent of the funds shall be allocated based on 65.1 the county's percentage share of the number of American Indian 65.2 children under age 18 residing in the county in the most recent 65.3 calendar year as determined by the commissioner; and 65.4 (6) five percent of the funds shall be allocated based on 65.5 the county's percentage share of the number of children of color 65.6 receiving children's case management services as defined by the 65.7 commissioner based on the most recent data as determined by the 65.8 commissioner. 65.9 (b) Each county's grant guaranteed floor shall be 65.10 calculated as follows: 65.11 (1) 90 percent of the county's allocation received in the 65.12 preceding calendar year or $25,000, whichever is greater; and 65.13 (2) when the amounts of funds available for allocation is 65.14 less than the amount available in the previous year, each 65.15 county's previous year allocation shall be reduced in proportion 65.16 to the reduction in the statewide funding, for the purpose of 65.17 establishing the guaranteed floor. 65.18 (c) The commissioner shall regularly review the use of 65.19 family preservation fund allocations by county. The 65.20 commissioner may reallocate unexpended or unencumbered money at 65.21 any time among those counties that have expended or are 65.22 projected to expend their full allocation. 65.23 (d) For the period of July 1, 1997, to December 31, 1998,65.24 only, each county shall receive an 18-month allocation. For the65.25 purposes of determining the guaranteed floor for this 18-month65.26 allocation, the allocation received in the preceding calendar65.27 year shall be determined by the commissioner based on the65.28 funding previously distributed separately under sections65.29 256.8711 and 256F.04.65.30 Sec. 72. Minnesota Statutes 1998, section 256F.05, 65.31 subdivision 8, is amended to read: 65.32 Subd. 8. [USES OF FAMILY PRESERVATION FUND GRANTS.] (a) A 65.33 county which has not demonstrated that year that its family 65.34 preservation core services are developed as provided in 65.35 subdivision 1a, must use its family preservation fund grant 65.36 exclusively for family preservation services defined in section 66.1 256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 66.2 (b) A county which has demonstrated that year that its 66.3 family preservation core services are developed becomes eligible 66.4 either to continue using its family preservation fund grant as 66.5 provided in paragraph (a), or to exercise the expanded service 66.6 option under paragraph (c). 66.7 (c) The expanded service option permits an eligible county 66.8 to use its family preservation fund grant for child welfare 66.9 preventive services. For purposes of this section, child 66.10 welfare preventive services are those services directed toward a 66.11 specific child or family that further the goals of section 66.12 256F.01 and include assessments, family preservation services, 66.13 service coordination, community-based treatment, crisis nursery 66.14 services when the parents retain custody and there is no 66.15 voluntary placement agreement with a child-placing agency, 66.16 respite care except when it is provided under a medical 66.17 assistance waiver, home-based services, and other related 66.18 services. For purposes of this section, child welfare 66.19 preventive services shall not include shelter care or other 66.20 placement services under the authority of the court or public 66.21 agency to address an emergency. To exercise this option, an 66.22 eligible county must notify the commissioner in writing of its 66.23 intention to do so no later than 30 days into the quarter during 66.24 which it intends to begin or in its county plan, as provided in 66.25 section 256F.04, subdivision 2. Effective with the first day of 66.26 that quarter, the county must maintain its base level of 66.27 expenditures for child welfare preventive services and use the 66.28 family preservation fund to expand them. The base level of 66.29 expenditures for a county shall be that established under 66.30 section 256F.10, subdivision 7. For counties which have no such 66.31 base established, a comparable base shall be established with 66.32 the base year being the calendar year ending at least two 66.33 calendar quarters before the first calendar quarter in which the 66.34 county exercises its expanded service option. The commissioner 66.35 shall, at the request of the counties, reduce, suspend, or 66.36 eliminate either or both of a county's obligations to continue 67.1 the base level of expenditures and to expand child welfare 67.2 preventive services under extraordinary circumstances. 67.3 (d) Notwithstanding paragraph (a), a county that is 67.4 participating in the child protection assessments or 67.5 investigations community collaboration pilot program under 67.6 section 626.5560626.556, or in the concurrent permanency 67.7 planning pilot program under section 257.0711, may use its 67.8 family preservation fund grant for those programs. 67.9 Sec. 73. Minnesota Statutes 1998, section 256F.10, 67.10 subdivision 6, is amended to read: 67.11 Subd. 6. [DISTRIBUTION OF NEW FEDERAL REVENUE.] (a) Except 67.12 for portion set aside in paragraph (b), the federal funds earned 67.13 under this section and section 256B.094 by counties shall be 67.14 paid to each county based on its earnings, and must be used by 67.15 each county to expand preventive child welfare services. 67.16 If a county chooses to be a provider of child welfare targeted 67.17 case management and if that county also joins a local children's 67.18 mental health collaborative as authorized by the 1993 67.19 legislature, then the federal reimbursement received by the 67.20 county for providing child welfare targeted case management 67.21 services to children served by the local collaborative shall be 67.22 transferred by the county to the integrated fund. The federal 67.23 reimbursement transferred to the integrated fund by the county 67.24 must not be used for residential care other than respite care 67.25 described under subdivision 7, paragraph (d). 67.26 (b) The commissioner shall set aside a portion of the 67.27 federal funds earned under this section to repay the special 67.28 revenue maximization account under section 256.01, subdivision 67.29 2, clause (15). The repayment is limited to: 67.30 (1) the costs of developing and implementing this section 67.31 and sections 256.8711 and256B.094 and 256J.48; 67.32 (2) programming the information systems; and 67.33 (3) the lost federal revenue for the central office claim 67.34 directly caused by the implementation of these sections. 67.35 Any unexpended funds from the set aside under this 67.36 paragraph shall be distributed to counties according to 68.1 paragraph (a). 68.2 Sec. 74. Minnesota Statutes 1998, section 256F.13, 68.3 subdivision 3, is amended to read: 68.4 Subd. 3. [WAIVER OF RULE REQUIREMENTS.] (a) [REQUESTING 68.5 WAIVERS OF STATE OR FEDERAL RULES.] Local family services 68.6 collaboratives, including collaboratives in Becker, Cass, and 68.7 Ramsey counties, shall be encouraged to seek waivers of state or 68.8 federal rules, as necessary to carry out the purposes of this 68.9 section. For purposes of this section, "family services68.10 collaborative" has the meaning given it in section 121.8355,68.11 subdivision 1a.68.12 (b) [WAIVER OF STATE RULES.] In order to receive a waiver 68.13 of the requirements of any state rule, the collaborative shall 68.14 submit a request for a variance to the appropriate 68.15 commissioner. The request shall contain assurances that the 68.16 waiver will not affect client entitlements to services, will not 68.17 abridge any rights guaranteed to the client by state or federal 68.18 law, and will not jeopardize the health or safety of the 68.19 client. The commissioner shall grant or deny all waiver 68.20 requests within 30 days of receiving those requests, by notice 68.21 to the collaborative and published notice in the State Register. 68.22 (c) [WAIVER OF FEDERAL RULES.] A local collaborative 68.23 seeking a waiver from a federal rule shall submit a request, in 68.24 writing, to the appropriate commissioner who shall submit the 68.25 waiver request to the relevant policy committees of the 68.26 legislature. If the legislative committees approve the request, 68.27 they shall direct the appropriate state agency to make a 68.28 reasonable effort to negotiate a waiver of the federal rule. If 68.29 the legislative committees deny the request for a waiver, they 68.30 shall jointly notify the local collaborative of the reason for 68.31 denying the waiver. If a waiver request is approved for 68.32 submission to federal authorities, the commissioner shall submit 68.33 all necessary materials to the appropriate federal authorities. 68.34 The commissioner shall notify the collaborative and the 68.35 legislative committees of the outcome of the federal waiver 68.36 request. In every instance in which a federal waiver is 69.1 granted, the commissioner shall publish notice of receipt of the 69.2 waiver in the State Register. 69.3 Sec. 75. Minnesota Statutes 1998, section 256G.01, 69.4 subdivision 4, is amended to read: 69.5 Subd. 4. [ADDITIONAL COVERAGE.] The provisions in sections 69.6 256G.02, subdivision 4, paragraphs (a) to (d); 256G.02, 69.7 subdivisions 5 to 8; 256G.03; 256G.04; 256G.05; and 256G.07, 69.8 subdivisions 1 to 3, apply to the following programs: the aid 69.9 to families with dependent children program formerly codified in 69.10 sections 256.72 to 256.87, Minnesota family investment 69.11 program-statewideprogram; medical assistance; general 69.12 assistance; the family general assistance program formerly 69.13 codified in sections 256D.01 to 256D.23; general assistance 69.14 medical care; and Minnesota supplemental aid. 69.15 Sec. 76. Minnesota Statutes 1998, section 256G.03, 69.16 subdivision 2, is amended to read: 69.17 Subd. 2. [NO DURATIONAL TEST.] Except as otherwise 69.18 provided in sections 256.73, subdivisions 1 and 1b256J.75; 69.19 256B.056, subdivision 1; 256D.02, subdivision 12a, and 256J.12 69.20 for purposes of this chapter, no waiting period is required 69.21 before securing county or state residence. A person cannot, 69.22 however, gain residence while physically present in an excluded 69.23 time facility unless otherwise specified in this chapter or in a 69.24 federal regulation controlling a federally funded human service 69.25 program. Interstate migrants who enter a shelter for battered 69.26 women directly from another state can gain residency while in 69.27 the facility provided the person can provide documentation that 69.28 the person is a victim of domestic abuse as defined in section 69.29 256J.49, subdivision 2, and the county determines that the 69.30 placement is appropriate; and the commissioner of human services 69.31 is authorized to make per diem payments under section 256D.05, 69.32 subdivision 3, on behalf of such individuals. 69.33 Sec. 77. Minnesota Statutes 1998, section 256J.01, 69.34 subdivision 1, is amended to read: 69.35 Subdivision 1. [IMPLEMENTATION OF MINNESOTA FAMILY 69.36 INVESTMENT PROGRAM-STATEWIDE (MFIP-S)PROGRAM (MFIP).] This 70.1 chapter and chapter 256K may be cited as the Minnesota family 70.2 investment program-statewide (MFIP-S)program (MFIP). MFIP-S70.3 MFIP is the statewide implementation of components of the 70.4 Minnesota family investment plan (MFIP) authorized underand 70.5 formerly codified in section 256.031 and Minnesota family 70.6 investment plan-Ramsey county (MFIP-R) formerly codified in 70.7 section 256.047. 70.8 Sec. 78. Minnesota Statutes 1998, section 256J.11, 70.9 subdivision 1, is amended to read: 70.10 Subdivision 1. [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To 70.11 be eligible for AFDC or MFIP-SMFIP, whichever is in effect,a 70.12 member of the assistance unit must be a citizen of the United 70.13 States, a qualified noncitizen as defined in section 256J.08, or 70.14 a noncitizen who is otherwise residing lawfully in the United 70.15 States. 70.16 (b) A qualified noncitizen who entered the United States on 70.17 or after August 22, 1996, is eligible for MFIP-SMFIP. However, 70.18 TANF dollars cannot be used to fund the MFIP-SMFIP benefits for 70.19 an individual under this paragraph for a period of five years 70.20 after the date of entry unless the qualified noncitizen meets 70.21 one of the following criteria: 70.22 (1) was admitted to the United States as a refugee under 70.23 United States Code, title 8, section 1157; 70.24 (2) was granted asylum under United States Code, title 8, 70.25 section 1158; 70.26 (3) was granted withholding of deportation under the United 70.27 States Code, title 8, section 1253(h); 70.28 (4) is a veteran of the United States Armed Forces with an 70.29 honorable discharge for a reason other than noncitizen status, 70.30 or is a spouse or unmarried minor dependent child of the same; 70.31 or 70.32 (5) is an individual on active duty in the United States 70.33 Armed Forces, other than for training, or is a spouse or 70.34 unmarried minor dependent child of the same. 70.35 (c) A person who is not a qualified noncitizen but who is 70.36 otherwise residing lawfully in the United States is eligible for 71.1 MFIP-SMFIP. However, TANF dollars cannot be used to fund the 71.2 MFIP-SMFIP benefits for an individual under this paragraph. 71.3 (d) For purposes of this subdivision, a nonimmigrant in one 71.4 or more of the classes listed in United States Code, title 8, 71.5 section 1101(a)(15), or an undocumented immigrant who resides in 71.6 the United States without the approval or acquiescence of the 71.7 Immigration and Naturalization Service, is not eligible for 71.8 MFIP-S. 71.9 Sec. 79. Minnesota Statutes 1998, section 256J.11, 71.10 subdivision 2, is amended to read: 71.11 Subd. 2. [NONCITIZENS; FOOD PORTION.] (a) For the period71.12 September 1, 1997, to October 31, 1997, noncitizens who do not71.13 meet one of the exemptions in section 412 of the Personal71.14 Responsibility and Work Opportunity Reconciliation Act of 1996,71.15 but were residing in this state as of July 1, 1997, are eligible71.16 for the 6/10 of the average value of food stamps for the same71.17 family size and composition until MFIP-S is operative in the71.18 noncitizen's county of financial responsibility and thereafter,71.19 the 6/10 of the food portion of MFIP-S. However, federal food71.20 stamp dollars cannot be used to fund the food portion of MFIP-S71.21 benefits for an individual under this subdivision.71.22 (b)(a) For the period November 1, 1997, to June 30, 1999, 71.23 noncitizens who do not meet one of the exemptions in section 412 71.24 of the Personal Responsibility and Work Opportunity 71.25 Reconciliation Act of 1996, and are receiving cash assistance 71.26 under the AFDC, family general assistance,MFIP or MFIP-S71.27 programsare eligible for the average value of food stamps for 71.28 the same family size and composition until MFIP-SMFIP is 71.29 operative in the noncitizen's county of financial responsibility 71.30 and thereafter, the food portion of MFIP-SMFIP. However, 71.31 federal food stamp dollars cannot be used to fund the food 71.32 portion of MFIP-SMFIP benefits for an individual under this 71.33 subdivision. The assistance provided under this subdivision, 71.34 which is designated as a supplement to replace lost benefits 71.35 under the federal food stamp program, must be disregarded as 71.36 income in all programs that do not count food stamps as income 72.1 where the commissioner has the authority to make the income 72.2 disregard determination for the program. 72.3 (c)(b) The commissioner shall submit a state plan to the 72.4 secretary of agriculture to allow the commissioner to purchase 72.5 federal Food Stamp Program benefits in an amount equal to the 72.6 MFIP-SMFIP food portion for each legal noncitizen receiving 72.7 MFIP-SMFIP assistance who is ineligible to participate in the 72.8 federal Food Stamp Program solely due to the provisions of 72.9 section 402 or 403 of Public Law Number 104-193, as authorized 72.10 by Title VII of the 1997 Emergency Supplemental Appropriations 72.11 Act, Public Law Number 105-18. The commissioner shall enter 72.12 into a contract as necessary with the secretary to use the 72.13 existing federal Food Stamp Program benefits delivery system for 72.14 the purposes of administering the food portion of MFIP-SMFIP 72.15 under this subdivision. 72.16 Sec. 80. Minnesota Statutes 1998, section 256J.12, 72.17 subdivision 1, is amended to read: 72.18 Subdivision 1. [SIMPLE RESIDENCY.] To be eligible for AFDC72.19 or MFIP-SMFIP, whichever is in effect,an assistance unit must 72.20 have established residency in this state which means the 72.21 assistance unit is present in the state and intends to remain 72.22 here. A person who lives in this state and who entered this 72.23 state with a job commitment or to seek employment in this state, 72.24 whether or not that person is currently employed, meets the 72.25 criteria in this subdivision. 72.26 Sec. 81. Minnesota Statutes 1998, section 256J.21, 72.27 subdivision 3, is amended to read: 72.28 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 72.29 determine initial eligibility by considering all earned and 72.30 unearned income that is not excluded under subdivision 2. To be 72.31 eligible for MFIP-SMFIP, the assistance unit's countable income 72.32 minus the disregards in paragraphs (a) and (b) must be below the 72.33 transitional standard of assistance according to section 256J.24 72.34 for that size assistance unit. 72.35 (a) The initial eligibility determination must disregard 72.36 the following items: 73.1 (1) the employment disregard is 18 percent of the gross 73.2 earned income whether or not the member is working full time or 73.3 part time; 73.4 (2) dependent care costs must be deducted from gross earned 73.5 income for the actual amount paid for dependent care up to a 73.6 maximum of $200 per month for each child less than two years of 73.7 age, and $175 per month for each child two years of age and 73.8 older under this chapter and chapter 119B; 73.9 (3) all payments made according to a court order for 73.10 spousal support or the support of children not living in the 73.11 assistance unit's household shall be disregarded from the income 73.12 of the person with the legal obligation to pay support, provided 73.13 that, if there has been a change in the financial circumstances 73.14 of the person with the legal obligation to pay support since the 73.15 support order was entered, the person with the legal obligation 73.16 to pay support has petitioned for a modification of the support 73.17 order; and 73.18 (4) an allocation for the unmet need of an ineligible 73.19 spouse or an ineligible child under the age of 21 for whom the 73.20 caregiver is financially responsible and who lives with the 73.21 caregiver according to section 256J.36. 73.22 (b) Notwithstanding paragraph (a), when determining initial 73.23 eligibility for applicant units when at least one member has 73.24 received AFDC, family general assistance,MFIP , MFIP-R,or work 73.25 first , or MFIP-Sin this state within four months of the most 73.26 recent application for MFIP-SMFIP, the employment disregard for 73.27 all unit members is 36 percent of the gross earned income. 73.28 After initial eligibility is established, the assistance 73.29 payment calculation is based on the monthly income test. 73.30 Sec. 82. Minnesota Statutes 1998, section 256J.26, 73.31 subdivision 1, is amended to read: 73.32 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) 73.33 Applicants or participants who have been convicted of a drug 73.34 offense after July 1, 1997, may, if otherwise eligible, receive 73.35 AFDC orMFIP-S benefits subject to the following conditions: 73.36 (1) Benefits for the entire assistance unit must be paid in 74.1 vendor form for shelter and utilities during any time the 74.2 applicant is part of the assistance unit. 74.3 (2) The convicted applicant or participant shall be subject 74.4 to random drug testing as a condition of continued eligibility 74.5 and following any positive test for an illegal controlled 74.6 substance is subject to the following sanctions: 74.7 (i) for failing a drug test the first time, the 74.8 participant's grant shall be reduced by ten percent of the 74.9 MFIP-SMFIP transitional standard, the shared household 74.10 standard, or the interstate transitional standard, whichever is 74.11 applicable prior to making vendor payments for shelter and 74.12 utility costs; or 74.13 (ii) for failing a drug test two or more times, the 74.14 residual amount of the participant's grant after making vendor 74.15 payments for shelter and utility costs, if any, must be reduced 74.16 by an amount equal to 30 percent of the MFIP-SMFIP transitional 74.17 standard, the shared household standard, or the interstate 74.18 transitional standard, whichever is applicable. 74.19 (b) Applicants or participants who have been convicted of a 74.20 drug offense after July 1, 1997, may, if otherwise eligible, 74.21 receive food stamps if the convicted applicant or participant is 74.22 subject to random drug testing as a condition of continued 74.23 eligibility. Following a positive test for an illegal 74.24 controlled substance, the applicant is subject to the following 74.25 sanctions: 74.26 (1) for failing a drug test the first time, food stamps 74.27 shall be reduced by ten percent of the applicable food stamp 74.28 allotment; and 74.29 (2) for failing a drug test two or more times, food stamps 74.30 shall be reduced by an amount equal to 30 percent of the 74.31 applicable food stamp allotment. 74.32 (c) For the purposes of this subdivision, "drug offense" 74.33 means a conviction that occurred after July 1, 1997, of sections 74.34 152.021 to 152.025, 152.0261, or 152.096. Drug offense also 74.35 means a conviction in another jurisdiction of the possession, 74.36 use, or distribution of a controlled substance, or conspiracy to 75.1 commit any of these offenses, if the offense occurred after July 75.2 1, 1997, and the conviction is a felony offense in that 75.3 jurisdiction, or in the case of New Jersey, a high misdemeanor. 75.4 Sec. 83. Minnesota Statutes 1998, section 256J.26, 75.5 subdivision 2, is amended to read: 75.6 Subd. 2. [PAROLE VIOLATORS.] An individual violating a 75.7 condition of probation or parole or supervised release imposed 75.8 under federal law or the law of any state is disqualified from 75.9 receiving AFDC or MFIP-SMFIP. 75.10 Sec. 84. Minnesota Statutes 1998, section 256J.26, 75.11 subdivision 3, is amended to read: 75.12 Subd. 3. [FLEEING FELONS.] An individual who is fleeing to 75.13 avoid prosecution, or custody, or confinement after conviction 75.14 for a crime that is a felony under the laws of the jurisdiction 75.15 from which the individual flees, or in the case of New Jersey, 75.16 is a high misdemeanor, is disqualified from receiving AFDC or75.17 MFIP-SMFIP. 75.18 Sec. 85. Minnesota Statutes 1998, section 256J.26, 75.19 subdivision 4, is amended to read: 75.20 Subd. 4. [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 75.21 FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 75.22 individual who is convicted in federal or state court of having 75.23 made a fraudulent statement or representation with respect to 75.24 the place of residence of the individual in order to receive 75.25 assistance simultaneously from two or more states is 75.26 disqualified from receiving AFDC or MFIP-SMFIP for ten years 75.27 beginning on the date of the conviction. 75.28 Sec. 86. Minnesota Statutes 1998, section 256J.42, 75.29 subdivision 1, is amended to read: 75.30 Subdivision 1. [TIME LIMIT.] (a) Except for the exemptions 75.31 in this section and in section 256J.11, subdivision 2, an 75.32 assistance unit in which any adult caregiver has received 60 75.33 months of cash assistance funded in whole or in part by the TANF 75.34 block grant in this or any other state or United States 75.35 territory, MFIP-SMFIP, the AFDC program formerly codified in 75.36 sections 256.72 to 256.87, or the family general assistance 76.1 program formerly codified in sections 256D.01 to 256D.23, funded 76.2 in whole or in part by state appropriations, is ineligible to 76.3 receive MFIP-SMFIP. Any cash assistance funded with TANF 76.4 dollars in this or any other state or United States territory, 76.5 or MFIP-SMFIP assistance funded in whole or in part by state 76.6 appropriations, that was received by the unit on or after the 76.7 date TANF was implemented, including any assistance received in 76.8 states or United States territories of prior residence, counts 76.9 toward the 60-month limitation. The 60-month limit applies to a 76.10 minor who is the head of a household or who is married to the 76.11 head of a household except under subdivision 5. The 60-month 76.12 time period does not need to be consecutive months for this 76.13 provision to apply. 76.14 (b) Months before July 1998 in which individuals receive 76.15 assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R 76.16 comparison group family underformerly codified in sections 76.17 256.031 to 256.0361 or sections 256.047 to 256.048 are not 76.18 included in the 60-month time limit. 76.19 Sec. 87. Minnesota Statutes 1998, section 256J.42, 76.20 subdivision 5, is amended to read: 76.21 Subd. 5. [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 76.22 assistance received by an assistance unit does not count toward 76.23 the 60-month limit on assistance during a month in which the 76.24 caregiver is in the category in section 256J.56, clause (1). The 76.25 exemption applies for the period of time the caregiver belongs 76.26 to one of the categories specified in this subdivision. 76.27 (b) From July 1, 1997, until the date MFIP-SMFIP is 76.28 operative in the caregiver's county of financial responsibility, 76.29 any cash assistance received by a caregiver who is complying 76.30 with sectionsMinnesota Statutes 1996, section 256.73, 76.31 subdivision 5a, and Minnesota Statutes 1998, section 256.736, if 76.32 applicable, does not count toward the 60-month limit on 76.33 assistance. Thereafter, any cash assistance received by a minor 76.34 caregiver who is complying with the requirements of sections 76.35 256J.14 and 256J.54, if applicable, does not count towards the 76.36 60-month limit on assistance. 77.1 (c) Any diversionary assistance or emergency assistance 77.2 received does not count toward the 60-month limit. 77.3 (d) Any cash assistance received by an 18- or 19-year-old 77.4 caregiver who is complying with the requirements of section 77.5 256J.54 does not count toward the 60-month limit. 77.6 Sec. 88. Minnesota Statutes 1998, section 256J.43, 77.7 subdivision 1, is amended to read: 77.8 Subdivision 1. [PAYMENT.] (a) Effective July 1, 1997, the 77.9 amount of assistance paid to an eligible unit in which all 77.10 members have resided in this state for fewer than 12 consecutive 77.11 calendar months immediately preceding the date of application 77.12 shall be the lesser of either the interstate transitional 77.13 standard that would have been received by the assistance unit 77.14 from the state of immediate prior residence, or the amount 77.15 calculated in accordance with AFDC or MFIP-SMFIP standards. 77.16 The lesser payment must continue until the assistance unit meets 77.17 the 12-month requirement. An assistance unit that has not 77.18 resided in Minnesota for 12 months from the date of application 77.19 is not exempt from the interstate payment provisions solely 77.20 because a child is born in Minnesota to a member of the 77.21 assistance unit. Payment must be calculated by applying this 77.22 state's budgeting policies, and the unit's net income must be 77.23 deducted from the payment standard in the other state or in this 77.24 state, whichever is lower. Payment shall be made in vendor form 77.25 for shelter and utilities, up to the limit of the grant amount, 77.26 and residual amounts, if any, shall be paid directly to the 77.27 assistance unit. 77.28 (b) During the first 12 months an assistance unit resides 77.29 in this state, the number of months that a unit is eligible to 77.30 receive AFDC or MFIP-SMFIP benefits is limited to the number of 77.31 months the assistance unit would have been eligible to receive 77.32 similar benefits in the state of immediate prior residence. 77.33 (c) This policy applies whether or not the assistance unit 77.34 received similar benefits while residing in the state of 77.35 previous residence. 77.36 (d) When an assistance unit moves to this state from 78.1 another state where the assistance unit has exhausted that 78.2 state's time limit for receiving benefits under that state's 78.3 TANF program, the unit will not be eligible to receive any AFDC78.4 or MFIP-SMFIP benefits in this state for 12 months from the 78.5 date the assistance unit moves here. 78.6 (e) For the purposes of this section, "state of immediate 78.7 prior residence" means: 78.8 (1) the state in which the applicant declares the applicant 78.9 spent the most time in the 30 days prior to moving to this 78.10 state; or 78.11 (2) the state in which an applicant who is a migrant worker 78.12 maintains a home. 78.13 (f) The commissioner shall annually verify and update all 78.14 other states' payment standards as they are to be in effect in 78.15 July of each year. 78.16 (g) Applicants must provide verification of their state of 78.17 immediate prior residence, in the form of tax statements, a 78.18 driver's license, automobile registration, rent receipts, or 78.19 other forms of verification approved by the commissioner. 78.20 (h) Migrant workers, as defined in section 256J.08, and 78.21 their immediate families are exempt from this section, provided 78.22 the migrant worker provides verification that the migrant family 78.23 worked in this state within the last 12 months and earned at 78.24 least $1,000 in gross wages during the time the migrant worker 78.25 worked in this state. 78.26 Sec. 89. Minnesota Statutes 1998, section 256J.50, 78.27 subdivision 3a, is amended to read: 78.28 Subd. 3a. [TRANSITIONAL RULE; STRIDE, ACCESS.] (a) A 78.29 county agency that is not a participant in the MFIP or MFIP-R 78.30 field trials underformerly codified in sections 256.031 to 78.31 256.0361 shall not enroll a recipient into project STRIDE or 78.32 ACCESS after the date that MFIP-SMFIP is implemented in the 78.33 county. 78.34 (b) A caregiver who: 78.35 (i) was enrolled in project STRIDE or ACCESS continuously 78.36 since March 1, 1997; 79.1 (ii) is not a part of an MFIP or MFIP-R comparison group; 79.2 and 79.3 (iii) who is making satisfactory progress toward the 79.4 objectives specified in the caregiver's employment plan, may, 79.5 with the approval of the job counselor, continue with the 79.6 existing employment plan for up to two years after the caregiver 79.7 is enrolled in MFIP-SMFIP. For purposes of the federal 79.8 participation standards, the activities in the caregiver's 79.9 employment plan are work activities, as that term is defined in 79.10 section 256J.49, subdivision 13. 79.11 (c) Notwithstanding contrary provisions of section 256.736, 79.12 the employability plan of a caregiver who is enrolled in project 79.13 STRIDE or ACCESS on or after July 1, 1997, must meet the 79.14 requirements of section 256J.53. 79.15 Sec. 90. Minnesota Statutes 1998, section 256J.62, 79.16 subdivision 3, is amended to read: 79.17 Subd. 3. [ALLOCATION OF BALANCE OF FUNDS.] If there remain 79.18 funds to allocate after establishing each county's guaranteed 79.19 floor under the provisions in subdivision 2, the balance 79.20 of funds shall be allocated as follows:79.21 (1) for state fiscal year 1998, the remaining funds shall79.22 be allocated based on the county's average number of AFDC and79.23 family general assistance cases as compared to the statewide79.24 total number of cases. The average number of cases shall be79.25 based on counts of AFDC and family general assistance cases as79.26 of March 31, June 30, September 30, and December 31 of calendar79.27 year 1996;79.28 (2) for state fiscal year 1999, the remaining funds shall79.29 be allocated based on the county's average number of AFDC,79.30 family general assistance, MFIP-R, MFIP, and MFIP-S cases as79.31 compared to the statewide total number of cases. The average79.32 number of cases shall be based on counts of AFDC, family general79.33 assistance, MFIP-R, MFIP, and MFIP-S cases as of March 31, June79.34 30, September 30, and December 31 of calendar year 1997; and79.35 (3) for all subsequent state fiscal years, theremaining 79.36 funds shall be allocated based on the county's average number of 80.1 MFIP-SMFIP cases as compared to the statewide total number of 80.2 cases. The average number of cases must be based on counts of 80.3 MFIP-SMFIP cases as of March 31, June 30, September 30, and 80.4 December 31 of the previous calendar year. 80.5 Sec. 91. Minnesota Statutes 1998, section 256J.62, 80.6 subdivision 6, is amended to read: 80.7 Subd. 6. [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 80.8 REFUGEES.] Funds appropriated to cover the costs of bilingual 80.9 employment and training services to refugees shall be allocated 80.10 to county agencies as follows:80.11 (1) for state fiscal year 1998, the allocation shall be80.12 based on the county's proportion of the total statewide number80.13 of AFDC refugee cases in the previous fiscal year. Counties80.14 with less than one percent of the statewide number of AFDC,80.15 MFIP-R, or MFIP refugee cases shall not receive an allocation of80.16 bilingual employment and training services funds; and80.17 (2) for each subsequent fiscal year, the allocation shall80.18 bebased on the county's proportion of the total statewide 80.19 number of MFIP-SMFIP refugee cases in the previous fiscal year. 80.20 Counties with less than one percent of the statewide number of 80.21 MFIP-SMFIP refugee cases shall not receive an allocation of 80.22 bilingual employment and training services funds. 80.23 Sec. 92. Minnesota Statutes 1998, section 256J.62, 80.24 subdivision 7, is amended to read: 80.25 Subd. 7. [WORK LITERACY LANGUAGE PROGRAMS.] Funds 80.26 appropriated to cover the costs of work literacy language 80.27 programs to non-English-speaking recipients shall be allocated 80.28 to county agencies as follows:80.29 (1) for state fiscal year 1998, the allocation shall be80.30 based on the county's proportion of the total statewide number80.31 of AFDC or MFIP cases in the previous fiscal year where the lack80.32 of English is a barrier to employment. Counties with less than80.33 two percent of the statewide number of AFDC or MFIP cases where80.34 the lack of English is a barrier to employment shall not receive80.35 an allocation of the work literacy language program funds; and80.36 (2) for each subsequent fiscal year, the allocation shall81.1 bebased on the county's proportion of the total statewide 81.2 number of MFIP-SMFIP cases in the previous fiscal year where 81.3 the lack of English is a barrier to employment. Counties with 81.4 less than two percent of the statewide number of MFIP-SMFIP 81.5 cases where the lack of English is a barrier to employment shall 81.6 not receive an allocation of the work literacy language program 81.7 funds. 81.8 Sec. 93. Minnesota Statutes 1998, section 256J.76, 81.9 subdivision 1, is amended to read: 81.10 Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July 81.11 1, 1997, counties will receive federal funds from the TANF block 81.12 grant for use in supporting eligibility, fraud control, and 81.13 other related administrative functions. The federal funds 81.14 available for distribution, as determined by the commissioner, 81.15 must be an amount equal to federal administrative aid 81.16 distributed for fiscal year 1996 under titles IV-A and IV-F of 81.17 the Social Security Act in effect prior to October 1, 1996. 81.18 This amount must include the amount paid for local 81.19 collaboratives under sections 245.4932 and 256F.13, but must not 81.20 include administrative aid associated with child care under 81.21 section 119B.05, with emergency assistance intensive family 81.22 preservation services under section 256.8711256F.05, with 81.23 administrative activities as part of the employment and training 81.24 services under section 256.736this chapter or chapter 256K, or 81.25 with fraud prevention investigation activities under section 81.26 256.983. 81.27 Sec. 94. Minnesota Statutes 1998, section 256K.01, 81.28 subdivision 2, is amended to read: 81.29 Subd. 2. [DEFINITIONS.] As used in sections 256K.01 to 81.30 256K.09, the following words have the meanings given them. 81.31 (a) "Applicant" means an individual who has submitted a 81.32 request for assistance and has never received an AFDC grant as 81.33 formerly codified in sections 256.72 to 256.87, MFIP-San MFIP 81.34 grant or a family general assistance grant as formerly codified 81.35 in sections 256D.01 to 256D.23 through the MAXIS computer system 81.36 as a caregiver, or an applicant whose application under the 82.1 former AFDC program codified in sections 256.72 to 82.2 256.87, MFIP-SMFIP, or the former family general assistance 82.3 applicationprogram codified in sections 256D.01 to 256D.23 was 82.4 denied or benefits were terminated due to noncompliance with 82.5 work first program requirements. 82.6 (b) "Application date" means the date any Minnesota county 82.7 agency receives a signed and dated combined application form 82.8 Part I. 82.9 (c) "CAF" means a combined application form on which people 82.10 apply for multiple assistance programs, including: cash 82.11 assistance, refugee cash assistance, Minnesota supplemental aid, 82.12 food stamps, medical assistance, general assistance medical 82.13 care, emergency assistance, emergency medical assistance, and 82.14 emergency general assistance medical care. 82.15 (d) "Caregiver" means a parent or eligible adult, including 82.16 a pregnant woman, who is part of the assistance unit that has 82.17 applied for or is receiving an AFDC, MFIP-S, or family general82.18 assistancean MFIP grant. In a two-parent family, both parents 82.19 are caregivers. 82.20 (e) "Child support" means a voluntary or court-ordered 82.21 payment by absent parents in an assistance unit. 82.22 (f) "Commissioner" means the commissioner of human services. 82.23 (g) "Department" means the department of human services. 82.24 (h) "Employability development plan" or "EDP" means a plan 82.25 developed by the applicant, with advice from the employment 82.26 advisor, for the purposes of identifying an employment goal, 82.27 improving work skills through certification or education, 82.28 training or skills recertification, and which addresses barriers 82.29 to employment. 82.30 (i) "EDP status report form" means a program form on which 82.31 deferred participants indicate what has been achieved in the 82.32 participant's employability development plan and the types of 82.33 problems encountered. 82.34 (j) "Employment advisor" means a program staff member who 82.35 is qualified to assist the participant to develop a job search 82.36 or employability development plan, match the participant with 83.1 existing job openings, refer the participant to employers, and 83.2 has an extensive knowledge of employers in the area. 83.3 (k) "Financial specialist" means a program staff member who 83.4 is trained to explain the benefits offered under the program, 83.5 determine eligibility for different assistance programs, and 83.6 broker other resources from employers and the community. 83.7 (l) "Job network" means individuals that a person may 83.8 contact to learn more about particular companies, inquire about 83.9 job leads, or discuss occupational interests and expertise. 83.10 (m) "Job search allowance" means the amount of financial 83.11 assistance needed to support job search. 83.12 (n) "Job search plan" or "JSP" means the specific plan 83.13 developed by the applicant, with advice from the employment 83.14 advisor, to secure a job as soon as possible, and focus the 83.15 scope of the job search process and other activities. 83.16 (o) "JSP status report form" means a program form on which 83.17 participants indicate the number of submitted job applications, 83.18 job interviews held, jobs offered, other outcomes achieved, 83.19 problems encountered, and the total number of hours spent on job 83.20 search per week. 83.21 (p) "Participant" means a recipient who is required to 83.22 participate in the work first program. 83.23 (q) "Program" means the work first program. 83.24 (r) "Provider" means an employment and training agency 83.25 certified by the commissioner of economic security under section 83.26 268.871, subdivision 1. 83.27 (s) "Self-employment" means employment where people work 83.28 for themselves rather than an employer, are responsible for 83.29 their own work schedule, and do not have taxes or FICA withheld 83.30 by an employer. 83.31 (t) "Self-sufficiency agreement" means the agreement 83.32 between the county or its representative and the applicant that 83.33 describes the activities that the applicant must conduct and the 83.34 necessary services and aid to be furnished by the county to 83.35 enable the individual to meet the purpose of either the job 83.36 search plan or employability development plan. 84.1 (u) "Subsidized job" means a job that is partly reimbursed 84.2 by the provider for cost of wages for participants in the 84.3 program. 84.4 Sec. 95. Minnesota Statutes 1998, section 256K.01, 84.5 subdivision 3, is amended to read: 84.6 Subd. 3. [ESTABLISHING WORK FIRST PROGRAM.] The 84.7 commissioners of human services and economic security may 84.8 develop and establish pilot projects which require applicants 84.9 for aid under AFDC, MFIP-S or family general assistanceMFIP to 84.10 meet the requirements of the work first program. The purpose of 84.11 the program is to: 84.12 (1) ensure that the participant is working as early as 84.13 possible; 84.14 (2) promote greater opportunity for economic self-support, 84.15 participation, and mobility in the work force; and 84.16 (3) minimize the risk for long-term welfare dependency. 84.17 Sec. 96. Minnesota Statutes 1998, section 256K.01, 84.18 subdivision 8, is amended to read: 84.19 Subd. 8. [DUTIES OF PARTICIPANT.] To be eligible for an 84.20 AFDC, MFIP-S or family general assistanceMFIP benefit, a 84.21 participant shall cooperate with the county agency, the 84.22 provider, and the participant's employer in all aspects of the 84.23 program. 84.24 Sec. 97. Minnesota Statutes 1998, section 256K.015, is 84.25 amended to read: 84.26 256K.015 [ELIGIBILITY FOR WORK FIRST.] 84.27 To be eligible for work first, an applicant must meet the 84.28 eligibility requirements of AFDC or MFIP-S, whichever is in84.29 effect in the county,MFIP, to the extent that those 84.30 requirements are not inconsistent with this chapter. 84.31 Sec. 98. Minnesota Statutes 1998, section 256K.02, is 84.32 amended to read: 84.33 256K.02 [PROGRAM PARTICIPANTS; PROGRAM EXPECTATIONS.] 84.34 All applicants selected for participation are expected to 84.35 meet the requirements under the work first program. Payments 84.36 for rent and utilities up to the AFDC, MFIP-S, or family general85.1 assistance programMFIP benefits to which the assistance unit is 85.2 entitled will be vendor paid for as many months as the applicant 85.3 is eligible or six months, whichever comes first. The residual 85.4 amount after vendor payment, if any, will be paid to the 85.5 recipient, unless it is used as a wage subsidy under section 85.6 256K.04, subdivision 2. 85.7 Sec. 99. Minnesota Statutes 1998, section 256K.03, 85.8 subdivision 1, is amended to read: 85.9 Subdivision 1. [NOTIFICATION OF PROGRAM.] Except for the 85.10 provisions in this section, the provisions for the AFDC, MFIP-S,85.11 and family general assistanceMFIP application process shall be 85.12 followed. Within two days after receipt of a completed combined 85.13 application form, the county agency must refer to the provider 85.14 the applicant who meets the conditions under section 256K.02, 85.15 and notify the applicant in writing of the program including the 85.16 following provisions: 85.17 (1) notification that, as part of the application process, 85.18 applicants are required to attend orientation, to be followed 85.19 immediately by a job search; 85.20 (2) the program provider, the date, time, and location of 85.21 the scheduled program orientation; 85.22 (3) the procedures for qualifying for and receiving 85.23 benefits under the program; 85.24 (4) the immediate availability of supportive services, 85.25 including, but not limited to, child care, transportation, 85.26 medical assistance, and other work-related aid; and 85.27 (5) the rights, responsibilities, and obligations of 85.28 participants in the program, including, but not limited to, the 85.29 grounds for exemptions and deferrals, the consequences for 85.30 refusing or failing to participate fully, and the appeal process. 85.31 Sec. 100. Minnesota Statutes 1998, section 256K.03, 85.32 subdivision 12, is amended to read: 85.33 Subd. 12. [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 85.34 SERVICE JOB.] (a) If after the completion of the maximum eight 85.35 weeks of job search the participant has failed to secure a 85.36 nonsubsidized or a subsidized job for at least 32 hours per 86.1 week, or does not earn a net income from self-employment that is 86.2 equal to at least the AFDC, MFIP-S or family general assistance86.3 MFIP monthly grant for the household size , whichever is86.4 applicable, the participant is required to work in a temporary 86.5 public service job for up to 67 working days for (1) at least 32 86.6 hours per week, or (2) a period equivalent to the result of 86.7 dividing the monthly grant amount which the participant would 86.8 otherwise receive, by the federal hourly minimum wage, or 86.9 applicable hourly state minimum wage, or the hourly rate of pay 86.10 for individuals employed in the same occupation at the site, 86.11 whichever is highest. If the result is more than 128 hours per 86.12 month, the participant's requirement to work in a temporary 86.13 public service job shall not be more than 32 hours per week. 86.14 (b) Within seven days from the date of application, the 86.15 participant who is deferred under subdivision 8, clause (1) or 86.16 (2), and is participating in an educational program on a 86.17 part-time basis must work in a temporary public service job as 86.18 required under subdivision 8, clause (2). 86.19 (c) The provider shall strive to match the profile of the 86.20 participant with the needs of the employers that are 86.21 participating in a temporary jobs program under section 256K.05. 86.22 Sec. 101. Minnesota Statutes 1998, section 256K.04, 86.23 subdivision 2, is amended to read: 86.24 Subd. 2. [JOB SUBSIDY.] The county may use all or part of 86.25 the AFDC, MFIP-S or family general assistanceMFIP benefit as a 86.26 subsidy to employers for the purpose of providing work 86.27 experience or training to the participant who has completed the 86.28 job search plan, provided that: 86.29 (1) the job to be subsidized is permanent and full time, 86.30 and pays an hourly rate of at least $6 per hour; 86.31 (2) the employer agrees to retain the participant after 86.32 satisfactory completion of the work experience or training 86.33 period; and 86.34 (3) the participant has first tried to secure a 86.35 nonsubsidized job by following the job search plan. 86.36 The subsidy may be available for up to six months. 87.1 Sec. 102. Minnesota Statutes 1998, section 256K.05, 87.2 subdivision 2, is amended to read: 87.3 Subd. 2. [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE JOBS.] 87.4 The provider must assign the participant who (1) is within 87.5 completion of the required eight weeks of job search and has 87.6 failed to secure a nonsubsidized or a subsidized job for at 87.7 least 32 hours per week, or (2) does not earn a net income from 87.8 self-employment that is equal to at least the AFDC, MFIP-S or87.9 family general assistanceMFIP monthly grant for the household 87.10 size , whichever is applicable,to a temporary public service 87.11 job. The assignment must be made seven days before the end of 87.12 the job search and be based on section 256K.03, subdivision 12. 87.13 The participant that is deferred under section 256K.03, 87.14 subdivision 8, will be assigned by the provider to a temporary 87.15 public service job within seven days after the application. 87.16 Sec. 103. Minnesota Statutes 1998, section 256K.06, is 87.17 amended to read: 87.18 256K.06 [TRANSITIONAL BENEFITS TO SUPPORT WORK; RENT AND 87.19 UTILITIES VENDOR PAYMENT.] 87.20 Payments for rent and utilities up to the amount of AFDC,87.21 MFIP-S , or family general assistancebenefits to which the 87.22 assistance unit is entitled shall be provided in the form of 87.23 vendor payments for as many months as the applicant is eligible 87.24 or six months, whichever comes first. The residual amount after 87.25 vendor payment, if any, will be paid to the AFDC, MFIP-S, or87.26 family general assistanceMFIP recipient, unless it is used as a 87.27 wage subsidy under section 256K.04, subdivision 2. This 87.28 provision shall apply to all applicants including those meeting 87.29 the exemption categories under section 256K.03, subdivision 5, 87.30 or deferral categories under section 256K.03, subdivision 8. To 87.31 the extent needed, a job search allowance shall be provided for 87.32 up to eight weeks to cover expenses related to the job search. 87.33 Before the job search allowance is issued, it must be approved 87.34 by the employment advisor and financial specialist, and clearly 87.35 described in the job search plan. 87.36 Sec. 104. Minnesota Statutes 1998, section 256K.07, is 88.1 amended to read: 88.2 256K.07 [ELIGIBILITY FOR FOOD STAMPS, MEDICAL ASSISTANCE, 88.3 AND CHILD CARE.] 88.4 The participant shall be treated as an AFDC, MFIP-S, or88.5 family general assistanceMFIP recipient , whichever is88.6 applicable,for food stamps, medical assistance, and child care 88.7 eligibility purposes. The participant who leaves the program as 88.8 a result of increased earnings from employment shall be eligible 88.9 for transitional medical assistance and child care without 88.10 regard to AFDC, MFIP-S, or family general assistanceMFIP 88.11 receipt in three of the six months preceding ineligibility. 88.12 Sec. 105. Minnesota Statutes 1998, section 256K.08, 88.13 subdivision 1, is amended to read: 88.14 Subdivision 1. [GOOD CAUSE.] (a) For purposes of this 88.15 subdivision, "good cause" means absence due to temporary illness 88.16 or injury of the participant or a member of the participant's 88.17 family, the unavailability of appropriate child care or 88.18 unavailability of transportation needed to attend orientation or 88.19 conduct job search, or a nonmedical emergency as defined under 88.20 section 256K.05, subdivision 5. 88.21 (b) The applicant who is required, but fails, without good 88.22 cause, to participate in orientation, complete the job search 88.23 plan or employability development plan, and comply with the job 88.24 search requirements under section 256K.03, prior to being 88.25 eligible for AFDC, MFIP-S, or family general assistanceMFIP 88.26 shall be denied benefits. The applicant will not be eligible 88.27 for benefits in this state for at least six months. 88.28 (c) If, after receiving a written warning from the county, 88.29 the participant fails, without good cause, to conduct at least 88.30 32 hours of job search per week in any given two-week period, 88.31 the participant will be immediately required to work for at 88.32 least 16 hours per week in a temporary public service job. The 88.33 required 32 hours per week of job search will be reduced to 16 88.34 hours. 88.35 (d) If the participant who is deferred under section 88.36 256K.03, subdivision 8, fails to comply with the activities 89.1 described in the employability development plan, the participant 89.2 will lose the deferment status, provided that the participant 89.3 has received at least two written warnings from the provider. 89.4 (e) If the participant refuses to work in a temporary 89.5 public service job, or is terminated from a temporary public 89.6 service job for failure to work, benefits to the assistance unit 89.7 shall be terminated and the participant shall not be eligible 89.8 for aid under the MFIP-SMFIP program for at least six months 89.9 from the date of refusal or termination. If the participant, 89.10 before completing at least four consecutive months of 89.11 employment, voluntarily quits or is terminated from a 89.12 nonsubsidized or a subsidized job, the participant shall 89.13 immediately be assigned to work in a temporary public service 89.14 job for at least 32 hours per week for up to 67 working days 89.15 unless the participant is hired or rehired into a nonsubsidized 89.16 or subsidized job. 89.17 Sec. 106. Minnesota Statutes 1998, section 256L.11, 89.18 subdivision 4, is amended to read: 89.19 Subd. 4. [DEFINITION OF MEDICAL ASSISTANCE RATE FOR 89.20 INPATIENT HOSPITAL SERVICES.] The "medical assistance rate," as 89.21 used in this section to apply to rates for providing inpatient 89.22 hospital services, means the rates established under sections 89.23 256.9685 to 256.9695 for providing inpatient hospital services 89.24 to medical assistance recipients who receive aid to families89.25 with dependent childrenMinnesota family investment program 89.26 assistance. 89.27 Sec. 107. Minnesota Statutes 1998, section 257.33, 89.28 subdivision 2, is amended to read: 89.29 Subd. 2. [MINOR PARENTS AND THEIR CHILDREN.] (a) Every 89.30 birth to a minor shall be reported by the hospital where the 89.31 birth occurs, within three working days after the birth. The 89.32 hospital shall make the report to the county social services 89.33 agency in the county in which the minor mother resides and shall 89.34 notify the minor that the report has been made. The county 89.35 social services agency shall contact any minor mother who does 89.36 not have a case manager who resides in the county and determine 90.1 whether she has a plan for herself and her child. The plan must 90.2 consider: 90.3 (1) the age of the minor parent; 90.4 (2) the involvement of the minor's parents or of other 90.5 adults who provide active, ongoing guidance, support, and 90.6 supervision; 90.7 (3) the involvement of the father of the minor's child, 90.8 including steps being taken to establish paternity, if 90.9 appropriate; 90.10 (4) a decision of the minor to keep and raise her child or 90.11 place the child for adoption; 90.12 (5) completion of high school or GED; 90.13 (6) current economic support of the minor parent and child 90.14 and plans for economic self-sufficiency; 90.15 (7) parenting skills of the minor parent; 90.16 (8) living arrangement of the minor parent and child; 90.17 (9) child care and transportation needed for education, 90.18 training, or employment; 90.19 (10) ongoing health care; and 90.20 (11) other services as needed to address personal or family 90.21 problems or to facilitate the personal growth and development 90.22 and economic self-sufficiency of the minor parent and child. 90.23 (b) If the minor parent does not have a plan for herself 90.24 and child, the county social services agency shall work with her 90.25 to develop a plan and shall provide case management services as 90.26 needed to assure the resources and services are available to 90.27 meet the plan requirements. 90.28 (c) If the minor parent refuses to plan for herself and her 90.29 child or fails, without good cause, to follow through on an 90.30 agreed upon plan, the county social services agency may file a 90.31 petition under section 260.131 seeking an order for protective 90.32 supervision under section 260.191, subdivision 1, clause (a), on 90.33 the grounds that the minor parent's child is dependent due to 90.34 the state of immaturity of the minor parent. A contract with a 90.35 minor parent under section 256.736, subdivision90.36 11(a)(4)256J.54, subdivision 2, is an "agreed upon plan" for 91.1 purposes of this section. 91.2 Sec. 108. Minnesota Statutes 1998, section 257.3573, 91.3 subdivision 2, is amended to read: 91.4 Subd. 2. [INAPPROPRIATE EXPENDITURES.] Indian child 91.5 welfare grant money must not be used for: 91.6 (1) child day care necessary solely because of employment 91.7 or training for employment of a parent or other relative with 91.8 whom the child is living; 91.9 (2) foster care maintenance or difficulty of care payments; 91.10 (3) residential facility payments; 91.11 (4) adoption assistance payments; 91.12 (5) public assistance payments for aid to families with91.13 dependent children,Minnesota family investment 91.14 program-statewideprogram assistance, supplemental aid, medical 91.15 assistance, general assistance, general assistance medical care, 91.16 or community health services authorized by sections 145A.01 to 91.17 145A.14; or 91.18 (6) administrative costs for income maintenance staff. 91.19 Sec. 109. Minnesota Statutes 1998, section 257.60, is 91.20 amended to read: 91.21 257.60 [PARTIES.] 91.22 The child may be made a party to the action. If the child 91.23 is a minor and is made a party, a general guardian or a guardian 91.24 ad litem shall be appointed by the court to represent the 91.25 child. The child's mother or father may not represent the child 91.26 as guardian or otherwise. The biological mother, each man 91.27 presumed to be the father under section 257.55, and each man 91.28 alleged to be the biological father, shall be made parties or, 91.29 if not subject to the jurisdiction of the court, shall be given 91.30 notice of the action in a manner prescribed by the court and 91.31 shall be given an opportunity to be heard. The public agency 91.32 responsible for support enforcement is joined as a party in each 91.33 case in which rights are assigned under section 256.74,91.34 subdivision 5256.741, and in each case in which the public 91.35 agency is providing services pursuant to an application for 91.36 child support services. A person who may bring an action under 92.1 section 257.57 may be made a party to the action. The court may 92.2 align the parties. The child shall be made a party whenever: 92.3 (1) the child is a minor and the case involves a compromise 92.4 under section 257.64, subdivision 1, or a lump sum payment under 92.5 section 257.66, subdivision 4, in which case the commissioner of 92.6 human services shall also be made a party subject to department 92.7 of human services rules relating to paternity suit settlements; 92.8 or 92.9 (2) the child is a minor and the action is to declare the 92.10 nonexistence of the father and child relationship; or 92.11 (3) an action to declare the existence of the father and 92.12 child relationship is brought by a man presumed to be the father 92.13 under section 257.55, or a man who alleges to be the father, and 92.14 the mother of the child denies the existence of the father and 92.15 child relationship. 92.16 Sec. 110. Minnesota Statutes 1998, section 257.85, 92.17 subdivision 3, is amended to read: 92.18 Subd. 3. [DEFINITIONS.] For purposes of this section, the 92.19 terms defined in this subdivision have the meanings given them. 92.20 (a) " AFDC orMFIP standard" means the monthly standard of92.21 need used to calculate assistance under the AFDC program, the92.22 transitional standard used to calculate assistance under the92.23 MFIP-S program, or, if neither of those is applicable, the92.24 analogous transitional standard used to calculate assistance92.25 under theMFIP or MFIP-R programs. 92.26 (b) "Local agency" means the local social service agency 92.27 with legal custody of a child prior to the transfer of permanent 92.28 legal and physical custody to a relative. 92.29 (c) "Permanent legal and physical custody" means permanent 92.30 legal and physical custody ordered by a Minnesota juvenile court 92.31 under section 260.191, subdivision 3b. 92.32 (d) "Relative" means an individual, other than a parent, 92.33 who is related to a child by blood, marriage, or adoption. 92.34 (e) "Relative custodian" means a relative of a child for 92.35 whom the relative has permanent legal and physical custody. 92.36 When siblings, including half-siblings and step-siblings, are 93.1 placed together in the permanent legal and physical custody of a 93.2 relative of one of the siblings, the person receiving permanent 93.3 legal and physical custody of the siblings is considered a 93.4 relative custodian of all of the siblings for purposes of this 93.5 section. 93.6 (f) "Relative custody assistance agreement" means an 93.7 agreement entered into between a local agency and the relative 93.8 of a child who has been or will be awarded permanent legal and 93.9 physical custody of the child. 93.10 (g) "Relative custody assistance payment" means a monthly 93.11 cash grant made to a relative custodian pursuant to a relative 93.12 custody assistance agreement and in an amount calculated under 93.13 subdivision 7. 93.14 (h) "Remains in the physical custody of the relative 93.15 custodian" means that the relative custodian is providing 93.16 day-to-day care for the child and that the child lives with the 93.17 relative custodian; absence from the relative custodian's home 93.18 for a period of more than 120 days raises a presumption that the 93.19 child no longer remains in the physical custody of the relative 93.20 custodian. 93.21 Sec. 111. Minnesota Statutes 1998, section 257.85, 93.22 subdivision 5, is amended to read: 93.23 Subd. 5. [RELATIVE CUSTODY ASSISTANCE AGREEMENT.] (a) A 93.24 relative custody assistance agreement will not be effective, 93.25 unless it is signed by the local agency and the relative 93.26 custodian no later than 30 days after the date of the order 93.27 establishing permanent legal and physical custody with the 93.28 relative, except that a local agency may enter into a relative 93.29 custody assistance agreement with a relative custodian more than 93.30 30 days after the date of the order if it certifies that the 93.31 delay in entering the agreement was through no fault of the 93.32 relative custodian. There must be a separate agreement for each 93.33 child for whom the relative custodian is receiving relative 93.34 custody assistance. 93.35 (b) Regardless of when the relative custody assistance 93.36 agreement is signed by the local agency and relative custodian, 94.1 the effective date of the agreement shall be the date of the 94.2 order establishing permanent legal and physical custody. 94.3 (c) If MFIP-SMFIP is not the applicable program for a 94.4 child at the time that a relative custody assistance agreement 94.5 is entered on behalf of the child, when MFIP-SMFIP becomes the 94.6 applicable program, if the relative custodian had been receiving 94.7 custody assistance payments calculated based upon a different 94.8 program, the amount of relative custody assistance payment under 94.9 subdivision 7 shall be recalculated under the MFIP-SMFIP 94.10 program. 94.11 (d) The relative custody assistance agreement shall be in a 94.12 form specified by the commissioner and shall include provisions 94.13 relating to the following: 94.14 (1) the responsibilities of all parties to the agreement; 94.15 (2) the payment terms, including the financial 94.16 circumstances of the relative custodian, the needs of the child, 94.17 the amount and calculation of the relative custody assistance 94.18 payments, and that the amount of the payments shall be 94.19 reevaluated annually; 94.20 (3) the effective date of the agreement, which shall also 94.21 be the anniversary date for the purpose of submitting the annual 94.22 affidavit under subdivision 8; 94.23 (4) that failure to submit the affidavit as required by 94.24 subdivision 8 will be grounds for terminating the agreement; 94.25 (5) the agreement's expected duration, which shall not 94.26 extend beyond the child's eighteenth birthday; 94.27 (6) any specific known circumstances that could cause the 94.28 agreement or payments to be modified, reduced, or terminated and 94.29 the relative custodian's appeal rights under subdivision 9; 94.30 (7) that the relative custodian must notify the local 94.31 agency within 30 days of any of the following: 94.32 (i) a change in the child's status; 94.33 (ii) a change in the relationship between the relative 94.34 custodian and the child; 94.35 (iii) a change in composition or level of income of the 94.36 relative custodian's family; 95.1 (iv) a change in eligibility or receipt of benefits under 95.2 AFDC, MFIP-SMFIP, or other assistance program; and 95.3 (v) any other change that could affect eligibility for or 95.4 amount of relative custody assistance; 95.5 (8) that failure to provide notice of a change as required 95.6 by clause (7) will be grounds for terminating the agreement; 95.7 (9) that the amount of relative custody assistance is 95.8 subject to the availability of state funds to reimburse the 95.9 local agency making the payments; 95.10 (10) that the relative custodian may choose to temporarily 95.11 stop receiving payments under the agreement at any time by 95.12 providing 30 days' notice to the local agency and may choose to 95.13 begin receiving payments again by providing the same notice but 95.14 any payments the relative custodian chooses not to receive are 95.15 forfeit; and 95.16 (11) that the local agency will continue to be responsible 95.17 for making relative custody assistance payments under the 95.18 agreement regardless of the relative custodian's place of 95.19 residence. 95.20 Sec. 112. Minnesota Statutes 1998, section 257.85, 95.21 subdivision 7, is amended to read: 95.22 Subd. 7. [AMOUNT OF RELATIVE CUSTODY ASSISTANCE PAYMENTS.] 95.23 (a) The amount of a monthly relative custody assistance payment 95.24 shall be determined according to the provisions of this 95.25 paragraph. 95.26 (1) The total maximum assistance rate is equal to the base 95.27 assistance rate plus, if applicable, the supplemental assistance 95.28 rate. 95.29 (i) The base assistance rate is equal to the maximum amount 95.30 that could be received as basic maintenance for a child of the 95.31 same age under the adoption assistance program. 95.32 (ii) The local agency shall determine whether the child has 95.33 physical, mental, emotional, or behavioral disabilities that 95.34 require care, supervision, or structure beyond that ordinarily 95.35 provided in a family setting to children of the same age such 95.36 that the child would be eligible for supplemental maintenance 96.1 payments under the adoption assistance program if an adoption 96.2 assistance agreement were entered on the child's behalf. If the 96.3 local agency determines that the child has such a disability, 96.4 the supplemental assistance rate shall be the maximum amount of 96.5 monthly supplemental maintenance payment that could be received 96.6 on behalf of a child of the same age, disabilities, and 96.7 circumstances under the adoption assistance program. 96.8 (2) The net maximum assistance rate is equal to the total 96.9 maximum assistance rate from clause (1) less the following 96.10 offsets: 96.11 (i) if the child is or will be part of an assistance unit 96.12 receiving an AFDC, MFIP-S, or otherMFIP grant, the portion of 96.13 the AFDC orMFIP standard relating to the child; 96.14 (ii) Supplemental Security Income payments received by or 96.15 on behalf of the child; 96.16 (iii) veteran's benefits received by or on behalf of the 96.17 child; and 96.18 (iv) any other income of the child, including child support 96.19 payments made on behalf of the child. 96.20 (3) The relative custody assistance payment to be made to 96.21 the relative custodian shall be a percentage of the net maximum 96.22 assistance rate calculated in clause (2) based upon the gross 96.23 income of the relative custodian's family, including the child 96.24 for whom the relative has permanent legal and physical custody. 96.25 In no case shall the amount of the relative custody assistance 96.26 payment exceed that which the child could qualify for under the 96.27 adoption assistance program if an adoption assistance agreement 96.28 were entered on the child's behalf. The relative custody 96.29 assistance payment shall be calculated as follows: 96.30 (i) if the relative custodian's gross family income is less 96.31 than or equal to 200 percent of federal poverty guidelines, the 96.32 relative custody assistance payment shall be the full amount of 96.33 the net maximum assistance rate; 96.34 (ii) if the relative custodian's gross family income is 96.35 greater than 200 percent and less than or equal to 225 percent 96.36 of federal poverty guidelines, the relative custody assistance 97.1 payment shall be 80 percent of the net maximum assistance rate; 97.2 (iii) if the relative custodian's gross family income is 97.3 greater than 225 percent and less than or equal to 250 percent 97.4 of federal poverty guidelines, the relative custody assistance 97.5 payment shall be 60 percent of the net maximum assistance rate; 97.6 (iv) if the relative custodian's gross family income is 97.7 greater than 250 percent and less than or equal to 275 percent 97.8 of federal poverty guidelines, the relative custody assistance 97.9 payment shall be 40 percent of the net maximum assistance rate; 97.10 (v) if the relative custodian's gross family income is 97.11 greater than 275 percent and less than or equal to 300 percent 97.12 of federal poverty guidelines, the relative custody assistance 97.13 payment shall be 20 percent of the net maximum assistance rate; 97.14 or 97.15 (vi) if the relative custodian's gross family income is 97.16 greater than 300 percent of federal poverty guidelines, no 97.17 relative custody assistance payment shall be made. 97.18 (b) This paragraph specifies the provisions pertaining to 97.19 the relationship between relative custody assistance and AFDC,97.20 MFIP-S, or otherMFIP programs: 97.21 (1) the relative custodian of a child for whom the relative 97.22 is receiving relative custody assistance is expected to seek 97.23 whatever assistance is available for the child through the AFDC,97.24 MFIP-S, or otherMFIP programsprogram. If a relative custodian 97.25 fails to apply for assistance through AFDC, MFIP-S, or otherthe 97.26 MFIP program for which the child is eligible, the child's 97.27 portion of the AFDC orMFIP standard will be calculated as if 97.28 application had been made and assistance received; 97.29 (2) the portion of the AFDC orMFIP standard relating to 97.30 each child for whom relative custody assistance is being 97.31 received shall be calculated as follows: 97.32 (i) determine the total AFDC orMFIP standard for the 97.33 assistance unit; 97.34 (ii) determine the amount that the AFDC orMFIP standard 97.35 would have been if the assistance unit had not included the 97.36 children for whom relative custody assistance is being received; 98.1 (iii) subtract the amount determined in item (ii) from the 98.2 amount determined in item (i); and 98.3 (iv) divide the result in item (iii) by the number of 98.4 children for whom relative custody assistance is being received 98.5 that are part of the assistance unit; or 98.6 (3) if a child for whom relative custody assistance is 98.7 being received is not eligible for assistance through the AFDC,98.8 MFIP-S, or otherMFIP programsprogram, the portion of AFDC or98.9 MFIP standard relating to that child shall be equal to zero. 98.10 Sec. 113. Minnesota Statutes 1998, section 257.85, 98.11 subdivision 11, is amended to read: 98.12 Subd. 11. [FINANCIAL CONSIDERATIONS.] (a) Payment of 98.13 relative custody assistance under a relative custody assistance 98.14 agreement is subject to the availability of state funds and 98.15 payments may be reduced or suspended on order of the 98.16 commissioner if insufficient funds are available. 98.17 (b) Upon receipt from a local agency of a claim for 98.18 reimbursement, the commissioner shall reimburse the local agency 98.19 in an amount equal to 100 percent of the relative custody 98.20 assistance payments provided to relative custodians. The local 98.21 agency may not seek and the commissioner shall not provide 98.22 reimbursement for the administrative costs associated with 98.23 performing the duties described in subdivision 4. 98.24 (c) For the purposes of determining eligibility or payment 98.25 amounts under the AFDC program , MFIP-S, and other MFIP programs98.26 as of July 16, 1996, relative custody assistance payments shall 98.27 be considered excluded income. 98.28 Sec. 114. Minnesota Statutes 1998, section 259.67, 98.29 subdivision 4, is amended to read: 98.30 Subd. 4. [ELIGIBILITY CONDITIONS.] (a) The placing agency 98.31 shall use the AFDC requirements as specified in federal law as 98.32 of July 16, 1996, when determining the child's eligibility for 98.33 adoption assistance under title IV-E of the Social Security 98.34 Act. If the child does not qualify, the placing agency shall 98.35 certify a child as eligible for state funded adoption assistance 98.36 only if the following criteria are met: 99.1 (1) Due to the child's characteristics or circumstances it 99.2 would be difficult to provide the child an adoptive home without 99.3 adoption assistance. 99.4 (2)(i) A placement agency has made reasonable efforts to 99.5 place the child for adoption without adoption assistance, but 99.6 has been unsuccessful; or 99.7 (ii) the child's licensed foster parents desire to adopt 99.8 the child and it is determined by the placing agency that the 99.9 adoption is in the best interest of the child. 99.10 (3) The child has been a ward of the commissioner or a 99.11 Minnesota-licensed child-placing agency. 99.12 (b) For purposes of this subdivision, the characteristics 99.13 or circumstances that may be considered in determining whether a 99.14 child is a child with special needs under United States Code, 99.15 title 42, chapter 7, subchapter IV, part E, or meets the 99.16 requirements of paragraph (a), clause (1), are the following: 99.17 (1) The child is a member of a sibling group to be placed 99.18 as one unit in which at least one sibling is older than 15 99.19 months of age or is described in clause (2) or (3). 99.20 (2) The child has documented physical, mental, emotional, 99.21 or behavioral disabilities. 99.22 (3) The child has a high risk of developing physical, 99.23 mental, emotional, or behavioral disabilities. 99.24 (c) When a child's eligibility for adoption assistance is 99.25 based upon the high risk of developing physical, mental, 99.26 emotional, or behavioral disabilities, payments shall not be 99.27 made under the adoption assistance agreement unless and until 99.28 the potential disability manifests itself as documented by an 99.29 appropriate health care professional. 99.30 Sec. 115. Minnesota Statutes 1998, section 260.38, is 99.31 amended to read: 99.32 260.38 [COST, PAYMENT.] 99.33 In addition to the usual care and services given by public 99.34 and private agencies, the necessary cost incurred by the 99.35 commissioner of human services in providing care for such child 99.36 shall be paid by the county committing such child which, subject 100.1 to uniform rules established by the commissioner of human 100.2 services, may receive a reimbursement not exceeding one-half of 100.3 such costs from funds made available for this purpose by the 100.4 legislature during the period beginning July 1, 1985, and ending 100.5 December 31, 1985. Beginning January 1, 1986, the necessary 100.6 cost incurred by the commissioner of human services in providing 100.7 care for the child must be paid by the county committing the 100.8 child. Where such child is eligible to receive a grant of aid100.9 to families with dependent children,Minnesota family investment 100.10 program-statewideprogram or supplemental security income for 100.11 the aged, blind, and disabled, or a foster care maintenance 100.12 payment under title IV-E of the Social Security Act, United 100.13 States Code, title 42, sections 670 to 676, the child's needs 100.14 shall be met through these programs. 100.15 Sec. 116. Minnesota Statutes 1998, section 261.063, is 100.16 amended to read: 100.17 261.063 [TAX LEVY FOR SOCIAL SECURITY MEASURES; DUTIES OF 100.18 COUNTY BOARD.] 100.19 The board of county commissioners of each county shall 100.20 annually levy taxes and fix a rate sufficient to produce the 100.21 full amount required for poor relief, general assistance, aid to100.22 dependent childrenMinnesota family investment program, county 100.23 share of county and state supplemental aid to supplemental 100.24 security income applicants or recipients, and any other social 100.25 security measures wherein there is now or may hereafter be 100.26 county participation, sufficient to produce the full amount 100.27 necessary for each such item, including administrative expenses, 100.28 for the ensuing year, within the time fixed by law in addition 100.29 to all other tax levies and tax rates, however fixed or 100.30 determined, and any commissioner who shall fail to comply 100.31 herewith shall be guilty of a gross misdemeanor and shall be 100.32 immediately removed from office by the governor. 100.33 Sec. 117. Minnesota Statutes 1998, section 268.0111, 100.34 subdivision 5, is amended to read: 100.35 Subd. 5. [INCOME MAINTENANCE AND SUPPORT SERVICES.] 100.36 "Income maintenance and support services" means programs through 101.1 which the state or its subdivisions provide direct financial or 101.2 in-kind support to unemployed or underemployed persons, 101.3 including reemployment insurance, aid to families with dependent101.4 children,Minnesota family investment program-statewideprogram, 101.5 general assistance, food stamps, energy assistance, disability 101.6 determinations, and child care. Income maintenance and support 101.7 services do not include medical assistance, aging services, 101.8 social services, community social services, mental health 101.9 services, or services for the emotionally disturbed, the 101.10 mentally retarded, or residents of nursing homes. 101.11 Sec. 118. Minnesota Statutes 1998, section 268.0111, 101.12 subdivision 7, is amended to read: 101.13 Subd. 7. [PUBLIC ASSISTANCE.] "Public assistance" 101.14 means aid to families with dependent children,Minnesota family 101.15 investment program-statewide,program and general assistance. 101.16 Sec. 119. Minnesota Statutes 1998, section 268.0122, 101.17 subdivision 3, is amended to read: 101.18 Subd. 3. [DUTIES AS STATE AGENCY.] The commissioner shall: 101.19 (1) administer the reemployment insurance benefits laws and 101.20 related programs; 101.21 (2) administer the aspects of aid to families with101.22 dependent children,Minnesota family investment 101.23 program-statewideprogram, general assistance, and food stamps 101.24 that relate to employment and training services, subject to the 101.25 contract under section 268.86, subdivision 2; 101.26 (3) administer wage subsidies and the discretionary 101.27 employment and training fund; 101.28 (4) administer a national system of public employment 101.29 offices as prescribed by United States Code, title 29, chapter 101.30 4B, the Wagner-Peyser Act, and other federal employment and 101.31 training programs; 101.32 (5) cooperate with the federal government and its 101.33 employment and training agencies in any reasonable manner as 101.34 necessary to qualify for federal aid for employment and training 101.35 services and money; 101.36 (6) enter into agreements with other departments of the 102.1 state and local units of government as necessary; 102.2 (7) certify employment and training service providers and 102.3 decertify service providers that fail to comply with performance 102.4 criteria according to standards established by the commissioner; 102.5 (8) provide consistent, integrated employment and training 102.6 services across the state; 102.7 (9) establish the standards for all employment and training 102.8 services administered under this chapter; 102.9 (10) develop standards for the contents and structure of 102.10 the local service unit plans and plans for Indian tribe 102.11 employment and training services; 102.12 (11) provide current state and substate labor market 102.13 information and forecasts, in cooperation with other agencies; 102.14 (12) identify underserved populations, unmet service needs, 102.15 and funding requirements; 102.16 (13) consult with the council for the blind on matters 102.17 pertaining to programs and services for the blind and visually 102.18 impaired; and 102.19 (14) enter into agreements with Indian tribes as necessary 102.20 to provide employment and training services as funds become 102.21 available. 102.22 Sec. 120. Minnesota Statutes 1998, section 268.552, 102.23 subdivision 5, is amended to read: 102.24 Subd. 5. [ALLOCATION TO APPLICANTS.] Priority for 102.25 subsidies shall be in the following order: 102.26 (1) applicants living in households with no other income 102.27 source; 102.28 (2) applicants whose incomes and resources are less than 102.29 the standard for eligibility for general assistance; and 102.30 (3) applicants who are eligible for aid to families with102.31 dependent children orMinnesota family investment 102.32 program-statewideprogram. 102.33 Sec. 121. Minnesota Statutes 1998, section 268.672, 102.34 subdivision 6, is amended to read: 102.35 Subd. 6. [ELIGIBLE JOB APPLICANT.] "Eligible job 102.36 applicant" means a person who: 103.1 (1) has attempted to secure a nonsubsidized job by 103.2 completing comprehensive job readiness and is: 103.3 (i) a temporary assistance for needy families103.4 (TANF)Minnesota family investment program recipient who is 103.5 making good faith efforts to comply with the family support103.6 agreementa job search support plan as defined under 103.7 section 256.032, subdivision 7a256J.52, subdivision 3, or an 103.8 employment plan as defined under section 256J.52, subdivision 5, 103.9 but has failed to find suitable employment; or 103.10 (ii) a family general assistance recipient;103.11 (2) is a member of a household supported only by: 103.12 (i) a low-income worker; or 103.13 (ii) a person who is underemployed as that term is defined 103.14 in section 268.61, subdivision 5; or 103.15 (3) is a member of a family that is eligible for, but not 103.16 receiving public assistance. 103.17 Sec. 122. Minnesota Statutes 1998, section 268.86, 103.18 subdivision 2, is amended to read: 103.19 Subd. 2. [INTERAGENCY AGREEMENTS.] By October 1, 1987, the 103.20 commissioner and the commissioner of human services shall enter 103.21 into a written contract for the design, delivery, and 103.22 administration of employment and training services for 103.23 applicants for or recipients of food stamps, aid to families103.24 with dependent children orMinnesota family investment 103.25 program-statewideprogram, including AFDC and MFIP-S employment103.26 and training programsand general assistance. The contract must 103.27 address: 103.28 (1) specific roles and responsibilities of each department; 103.29 (2) assignment and supervision of staff for interagency 103.30 activities including any necessary interagency employee mobility 103.31 agreements under the administrative procedures of the department 103.32 of employee relations; 103.33 (3) mechanisms for determining the conditions under which 103.34 individuals participate in services, their rights and 103.35 responsibilities while participating, and the standards by which 103.36 the services must be administered; 104.1 (4) procedures for providing technical assistance to local 104.2 service units, Indian tribes, and employment and training 104.3 service providers; 104.4 (5) access to appropriate staff for ongoing development and 104.5 interpretation of policy, rules, and program standards; 104.6 (6) procedures for reimbursing appropriate agencies for 104.7 administrative expenses; and 104.8 (7) procedures for accessing available federal funds. 104.9 Sec. 123. Minnesota Statutes 1998, section 268.871, 104.10 subdivision 1, is amended to read: 104.11 Subdivision 1. [RESPONSIBILITY AND CERTIFICATION.] (a) 104.12 Unless prohibited by federal law or otherwise determined by 104.13 state law, a local service unit is responsible for the delivery 104.14 of employment and training services. After February 1, 1988, 104.15 employment and training services must be delivered by certified 104.16 employment and training service providers. 104.17 (b) The local service unit's employment and training 104.18 service provider must meet the certification standards in this 104.19 subdivision in order to be certified to deliver any of the 104.20 following employment and training services and programs: wage 104.21 subsidies; general assistance grant diversion; food stamp 104.22 employment and training programs; community work experience 104.23 programs; AFDC or MFIP-SMFIP job search; AFDC or MFIP-SMFIP 104.24 grant diversion; AFDC or MFIP-SMFIP on-the-job training; and 104.25 AFDC or MFIP-SMFIP case management. 104.26 (c) The commissioner shall certify a local service unit's 104.27 service provider to provide these employment and training 104.28 services and programs if the commissioner determines that the 104.29 provider has: 104.30 (1) past experience in direct delivery of the programs 104.31 specified in paragraph (b); 104.32 (2) staff capabilities and qualifications, including 104.33 adequate staff to provide timely and effective services to 104.34 clients, and proven staff experience in providing specific 104.35 services such as assessments, career planning, job development, 104.36 job placement, support services, and knowledge of community 105.1 services and educational resources; 105.2 (3) demonstrated effectiveness in providing services to 105.3 public assistance recipients and other economically 105.4 disadvantaged clients; and 105.5 (4) demonstrated administrative capabilities, including 105.6 adequate fiscal and accounting procedures, financial management 105.7 systems, participant data systems, and record retention 105.8 procedures. 105.9 (d) When the only service provider that meets the criterion 105.10 in paragraph (c), clause (1), has been decertified, according to 105.11 subdivision 1a, in that local service unit, the following 105.12 criteria shall be substituted: past experience in direct 105.13 delivery of multiple, coordinated, nonduplicative services, 105.14 including outreach, assessments, identification of client 105.15 barriers, employability development plans, and provision or 105.16 referral to support services. 105.17 (e) The commissioner shall certify providers of the105.18 Minnesota family investment plan case management services as105.19 defined in section 256.032, subdivision 3. Providers must meet105.20 the standards defined in paragraph (c), except that past105.21 experience under paragraph (c), clause (1), must be in services105.22 and programs similar to those specified in section 256.032,105.23 subdivision 3.105.24 Employment and training service providers shall be105.25 certified by the commissioner for two fiscal years beginning105.26 July 1, 1991, and every second year thereafter.105.27 Sec. 124. Minnesota Statutes 1998, section 268.90, 105.28 subdivision 2, is amended to read: 105.29 Subd. 2. [EMPLOYMENT CONDITIONS.] (a) An eligible 105.30 nonprofit or public employer may not terminate, lay off, or 105.31 reduce the regular working hours of an employee for the purpose 105.32 of hiring an individual with money available under this 105.33 program. An eligible employer may not hire an individual with 105.34 money available through this program if any other person is on 105.35 layoff from the same or a substantially equivalent job. 105.36 (b) Community investment program participants are employees 106.1 of the project employer within the meaning of workers' 106.2 compensation laws, personal income tax, and the Federal 106.3 Insurance Contribution Act, but not retirement or civil service 106.4 laws. 106.5 (c) Each project and job must comply with all applicable 106.6 affirmative action, fair labor, health, safety, and 106.7 environmental standards. 106.8 (d) Individuals employed under the community investment 106.9 program must be paid a wage at the same wage rates as work site 106.10 or employees doing comparable work in that locality, unless 106.11 otherwise specified in law. 106.12 (e) Recipients of aid to families with dependent children106.13 or Minnesota family investment program-statewide who are106.14 eligible on the basis of an unemployed parent may not have106.15 available more than 100 hours a month.All employees are 106.16 limited to 32 hours or four days a week, so that they can 106.17 continue to seek full-time private sector employment, unless 106.18 otherwise specified in law. 106.19 (f) The commissioner shall establish, by rule, the terms 106.20 and conditions governing the participation of appropriate public 106.21 assistance recipients. The rules must, at a minimum, establish 106.22 the procedures by which the minimum and maximum number of work 106.23 hours and maximum allowable travel distances are determined, the 106.24 amounts and methods by which work expenses will be paid, and the 106.25 manner in which support services will be provided. The rules 106.26 must also provide for periodic reviews of clients continuing 106.27 employment in community investment programs. 106.28 (g) Participation in a community investment program by a 106.29 recipient of aid to families with dependent children,Minnesota 106.30 family investment program-statewide,program assistance or 106.31 general assistance is voluntary. 106.32 Sec. 125. Minnesota Statutes 1998, section 268.95, 106.33 subdivision 4, is amended to read: 106.34 Subd. 4. [PILOT PROGRAM.] The commissioner shall develop a 106.35 pilot program, in cooperation with the commissioners of trade 106.36 and economic development and human services, to enable 107.1 low-income persons to start or expand self-employment 107.2 opportunities or home-based businesses that are designed to make 107.3 the individual entrepreneurs economically independent. The 107.4 commissioner of human services shall seek necessary waivers from 107.5 federal regulations to allow recipients of aid to families with107.6 dependent children orMinnesota family investment 107.7 program-statewideprogram assistance to participate and retain 107.8 eligibility while establishing a business. 107.9 Sec. 126. Minnesota Statutes 1998, section 275.065, 107.10 subdivision 5a, is amended to read: 107.11 Subd. 5a. [PUBLIC ADVERTISEMENT.] (a) A city that has a 107.12 population of more than 2,500, county, a metropolitan special 107.13 taxing district as defined in subdivision 3, paragraph (i), a 107.14 regional library district established under section 134.201, or 107.15 school district shall advertise in a newspaper a notice of its 107.16 intent to adopt a budget and property tax levy or, in the case 107.17 of a school district, to review its current budget and proposed 107.18 property taxes payable in the following year, at a public 107.19 hearing. The notice must be published not less than two 107.20 business days nor more than six business days before the hearing. 107.21 The advertisement must be at least one-eighth page in size 107.22 of a standard-size or a tabloid-size newspaper. The 107.23 advertisement must not be placed in the part of the newspaper 107.24 where legal notices and classified advertisements appear. The 107.25 advertisement must be published in an official newspaper of 107.26 general circulation in the taxing authority. The newspaper 107.27 selected must be one of general interest and readership in the 107.28 community, and not one of limited subject matter. The 107.29 advertisement must appear in a newspaper that is published at 107.30 least once per week. 107.31 For purposes of this section, the metropolitan special 107.32 taxing district's advertisement must only be published in the 107.33 Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 107.34 (b) The advertisement for school districts, metropolitan 107.35 special taxing districts, and regional library districts must be 107.36 in the following form, except that the notice for a school 108.1 district may include references to the current budget in regard 108.2 to proposed property taxes. 108.3 "NOTICE OF 108.4 PROPOSED PROPERTY TAXES 108.5 (School District/Metropolitan 108.6 Special Taxing District/Regional 108.7 Library District) of ......... 108.8 The governing body of ........ will soon hold budget hearings 108.9 and vote on the property taxes for (metropolitan special taxing 108.10 district/regional library district services that will be 108.11 provided in (year)/school district services that will be 108.12 provided in (year) and (year)). 108.13 NOTICE OF PUBLIC HEARING: 108.14 All concerned citizens are invited to attend a public hearing 108.15 and express their opinions on the proposed (school 108.16 district/metropolitan special taxing district/regional library 108.17 district) budget and property taxes, or in the case of a school 108.18 district, its current budget and proposed property taxes, 108.19 payable in the following year. The hearing will be held on 108.20 (Month/Day/Year) at (Time) at (Location, Address)." 108.21 (c) The advertisement for cities and counties must be in 108.22 the following form. 108.23 "NOTICE OF PROPOSED 108.24 TOTAL BUDGET AND PROPERTY TAXES 108.25 The (city/county) governing body or board of commissioners will 108.26 hold a public hearing to discuss the budget and to vote on the 108.27 amount of property taxes to collect for services the 108.28 (city/county) will provide in (year). 108.29 108.30 SPENDING: The total budget amounts below compare 108.31 (city's/county's) (year) total actual budget with the amount the 108.32 (city/county) proposes to spend in (year). 108.33 108.34 (Year) Total Proposed (Year) Change from 108.35 Actual Budget Budget (Year)-(Year) 108.36 109.1 $....... $....... ...% 109.2 109.3 TAXES: The property tax amounts below compare that portion of 109.4 the current budget levied in property taxes in (city/county) for 109.5 (year) with the property taxes the (city/county) proposes to 109.6 collect in (year). 109.7 109.8 (Year) Property Proposed (Year) Change from 109.9 Taxes Property Taxes (Year)-(Year) 109.10 109.11 $....... $....... ...% 109.12 109.13 ATTEND THE PUBLIC HEARING 109.14 All (city/county) residents are invited to attend the public 109.15 hearing of the (city/county) to express your opinions on the 109.16 budget and the proposed amount of (year) property taxes. The 109.17 hearing will be held on: 109.18 (Month/Day/Year/Time) 109.19 (Location/Address) 109.20 If the discussion of the budget cannot be completed, a time and 109.21 place for continuing the discussion will be announced at the 109.22 hearing. You are also invited to send your written comments to: 109.23 (City/County) 109.24 (Location/Address)" 109.25 (d) For purposes of this subdivision, the budget amounts 109.26 listed on the advertisement mean: 109.27 (1) for cities, the total government fund expenditures, as 109.28 defined by the state auditor under section 471.6965, less any 109.29 expenditures for improvements or services that are specially 109.30 assessed or charged under chapter 429, 430, 435, or the 109.31 provisions of any other law or charter; and 109.32 (2) for counties, the total government fund expenditures, 109.33 as defined by the state auditor under section 375.169, less any 109.34 expenditures for direct payments to recipients or providers for 109.35 the human service aids listed below: 109.36 (1) aid to families with dependent children under sections110.1 256.82, subdivision 1, and 256.935, subdivision 1(i) Minnesota 110.2 family investment program under chapters 256J and 256K; 110.3 (2)(ii) medical assistance under sections 256B.041, 110.4 subdivision 5, and 256B.19, subdivision 1; 110.5 (3)(iii) general assistance medical care under section 110.6 256D.03, subdivision 6; 110.7 (4)(iv) general assistance under section 256D.03, 110.8 subdivision 2; 110.9 (5)(v) emergency assistance under section 256.871,110.10 subdivision 6256J.48; 110.11 (6)(vi) Minnesota supplemental aid under section 256D.36, 110.12 subdivision 1; 110.13 (7)(vii) preadmission screening under section 256B.0911, 110.14 and alternative care grants under section 256B.0913; 110.15 (8)(viii) general assistance medical care claims 110.16 processing, medical transportation and related costs under 110.17 section 256D.03, subdivision 4; 110.18 (9)(ix) medical transportation and related costs under 110.19 section 256B.0625, subdivisions 17 to 18a; 110.20 (10)(x) group residential housing under 256I.05, 110.21 subdivision 8, transferred from programs in clauses (4)(iv) and 110.22 (6)(vi); or 110.23 (11)(xi) any successor programs to those listed in clauses 110.24 (1)(i) to (10)(x). 110.25 (e) A city with a population of over 500 but not more than 110.26 2,500 must advertise by posted notice as defined in section 110.27 645.12, subdivision 1. The advertisement must be posted at the 110.28 time provided in paragraph (a). It must be in the form required 110.29 in paragraph (b). 110.30 (f) For purposes of this subdivision, the population of a 110.31 city is the most recent population as determined by the state 110.32 demographer under section 4A.02. 110.33 (g) The commissioner of revenue, subject to the approval of 110.34 the chairs of the house and senate tax committees, shall 110.35 prescribe the form and format of the advertisement. 110.36 Sec. 127. Minnesota Statutes 1998, section 290.067, 111.1 subdivision 1, is amended to read: 111.2 Subdivision 1. [AMOUNT OF CREDIT.] (a) A taxpayer may take 111.3 as a credit against the tax due from the taxpayer and a spouse, 111.4 if any, under this chapter an amount equal to the dependent care 111.5 credit for which the taxpayer is eligible pursuant to the 111.6 provisions of section 21 of the Internal Revenue Code subject to 111.7 the limitations provided in subdivision 2 except that in 111.8 determining whether the child qualified as a dependent, income 111.9 received as an aid to families with dependent childrena 111.10 Minnesota family investment program grant or allowance to or on 111.11 behalf of the child , or as a grant or allowance to or on behalf111.12 of the child under the successor program pursuant to Public Law111.13 104-193,must not be taken into account in determining whether 111.14 the child received more than half of the child's support from 111.15 the taxpayer, and the provisions of section 32(b)(1)(D) of the 111.16 Internal Revenue Code do not apply. 111.17 (b) If a child who has not attained the age of six years at 111.18 the close of the taxable year is cared for at a licensed family 111.19 day care home operated by the child's parent, the taxpayer is 111.20 deemed to have paid employment-related expenses. If the child 111.21 is 16 months old or younger at the close of the taxable year, 111.22 the amount of expenses deemed to have been paid equals the 111.23 maximum limit for one qualified individual under section 21(c) 111.24 and (d) of the Internal Revenue Code. If the child is older 111.25 than 16 months of age but has not attained the age of six years 111.26 at the close of the taxable year, the amount of expenses deemed 111.27 to have been paid equals the amount the licensee would charge 111.28 for the care of a child of the same age for the same number of 111.29 hours of care. 111.30 (c) If a married couple: 111.31 (1) has a child who has not attained the age of one year at 111.32 the close of the taxable year; 111.33 (2) files a joint tax return for the taxable year; and 111.34 (3) does not participate in a dependent care assistance 111.35 program as defined in section 129 of the Internal Revenue Code, 111.36 in lieu of the actual employment related expenses paid for that 112.1 child under paragraph (a) or the deemed amount under paragraph 112.2 (b), the lesser of (i) the combined earned income of the couple 112.3 or (ii) $2,400 will be deemed to be the employment related 112.4 expense paid for that child. The earned income limitation of 112.5 section 21(d) of the Internal Revenue Code shall not apply to 112.6 this deemed amount. These deemed amounts apply regardless of 112.7 whether any employment-related expenses have been paid. 112.8 (d) If the taxpayer is not required and does not file a 112.9 federal individual income tax return for the tax year, no credit 112.10 is allowed for any amount paid to any person unless: 112.11 (1) the name, address, and taxpayer identification number 112.12 of the person are included on the return claiming the credit; or 112.13 (2) if the person is an organization described in section 112.14 501(c)(3) of the Internal Revenue Code and exempt from tax under 112.15 section 501(a) of the Internal Revenue Code, the name and 112.16 address of the person are included on the return claiming the 112.17 credit. 112.18 In the case of a failure to provide the information required 112.19 under the preceding sentence, the preceding sentence does not 112.20 apply if it is shown that the taxpayer exercised due diligence 112.21 in attempting to provide the information required. 112.22 In the case of a nonresident, part-year resident, or a 112.23 person who has earned income not subject to tax under this 112.24 chapter, the credit determined under section 21 of the Internal 112.25 Revenue Code must be allocated based on the ratio by which the 112.26 earned income of the claimant and the claimant's spouse from 112.27 Minnesota sources bears to the total earned income of the 112.28 claimant and the claimant's spouse. 112.29 Sec. 128. Minnesota Statutes 1998, section 290A.03, 112.30 subdivision 7, is amended to read: 112.31 Subd. 7. [DEPENDENT.] "Dependent" means any person who is 112.32 considered a dependent under sections 151 and 152 of the 112.33 Internal Revenue Code. In the case of a son, stepson, daughter, 112.34 or stepdaughter of the claimant, amounts received as an aid to112.35 families with dependent childrena Minnesota family investment 112.36 program grant, allowance to or on behalf of the child, or as a113.1 grant or allowance to or on behalf of the child under the113.2 successor program pursuant to Public Law Number 104-193,surplus 113.3 food, or other relief in kind supplied by a governmental agency 113.4 must not be taken into account in determining whether the child 113.5 received more than half of the child's support from the claimant. 113.6 Sec. 129. Minnesota Statutes 1998, section 393.07, 113.7 subdivision 6, is amended to read: 113.8 Subd. 6. [PURCHASE OF EQUIPMENT TO AID WELFARE 113.9 RECIPIENTS.] Every local social services agency authorizing 113.10 braces, crutches, trusses, wheel chairs and hearing aids for use 113.11 by recipients of supplemental security income for the aged, 113.12 blind and disabled, aid to families with dependent children or113.13 Minnesota family investment program-statewideprogram and relief 113.14 shall secure such devices at the lowest cost obtainable 113.15 conducive to the well being of the recipient and fix the 113.16 recipient's grant in an amount to cover the cost of the device 113.17 providing it will be purchased at the lowest cost obtainable, or 113.18 may make payment for the device directly to the vendor. 113.19 Sec. 130. Minnesota Statutes 1998, section 462A.205, 113.20 subdivision 2, is amended to read: 113.21 Subd. 2. [DEFINITIONS.] For the purposes of this section, 113.22 the following terms have the meanings given them. 113.23 (a) "Caretaker parent" means a parent, relative caretaker, 113.24 or minor caretaker as defined by the aid to families with113.25 dependent children program, sections 256.72 to 256.87, or its113.26 successor programMinnesota family investment program, chapter 113.27 256J. 113.28 (b) "County agency" means the agency designated by the 113.29 county board to implement financial assistance for current 113.30 public assistance programs and for the Minnesota family 113.31 investment program statewide. 113.32 (c) "Counties with high average housing costs" means 113.33 counties whose average federal section 8 fair market rents as 113.34 determined by the Department of Housing and Urban Development 113.35 are in the highest one-third of average rents in the state. 113.36 (d) "Designated rental property" is rental property (1) 114.1 that is made available by a self-sufficiency program for use by 114.2 participating families and meets federal section 8 existing 114.3 quality standards, or (2) that has received federal, state, or 114.4 local rental rehabilitation assistance since January 1, 1987, 114.5 and meets federal section 8 existing housing quality standards. 114.6 (e) "Earned income" for a family receiving rental 114.7 assistance under this section means cash or in-kind income 114.8 earned through the receipt of wages, salary, commissions, profit 114.9 from employment activities, net profit from self-employment 114.10 activities, payments made by an employer for regularly accrued 114.11 vacation or sick leave, and any other profit from activity 114.12 earned through effort or labor. 114.13 (f) "Family or participating family" means: 114.14 (1) a family with a caretaker parent who is participating 114.15 in a self-sufficiency program and with at least one minor child; 114.16 (2) a family that, at the time it began receiving rent 114.17 assistance under this section, had a caretaker parent 114.18 participating in a self-sufficiency program and had at least one 114.19 minor child; 114.20 (3) a family with a caretaker parent who is receiving 114.21 public assistance and has earned income and with at least one 114.22 minor child; or 114.23 (4) a family that, at the time it began receiving rent 114.24 assistance under this section, had a caretaker parent who had 114.25 earned income and at least one minor child. 114.26 (g) "Gross family income" for a family receiving rental 114.27 assistance under this section means the gross amount of the 114.28 wages, salaries, social security payments, pensions, workers' 114.29 compensation, reemployment insurance, public assistance 114.30 payments, alimony, child support, and income from assets 114.31 received by the family. 114.32 (h) "Local housing organization" means the agency of local 114.33 government responsible for administering the Department of 114.34 Housing and Urban Development's section 8 existing voucher and 114.35 certificate program or a nonprofit or for-profit organization 114.36 experienced in housing management. 115.1 (i) "Public assistance" means aid to families with115.2 dependent children, or its successor program, family general115.3 assistance, or its successor program, or family work readiness,115.4 or its successorthe Minnesota family investment program. 115.5 (j) "Self-sufficiency program" means a program operated by 115.6 an employment and training service provider as defined in 115.7 chapter 256J, an employability program administered by a 115.8 community action agency, or courses of study at an accredited 115.9 institution of higher education pursued with at least half-time 115.10 student status. 115.11 Sec. 131. Minnesota Statutes 1998, section 462A.222, 115.12 subdivision 1a, is amended to read: 115.13 Subd. 1a. [DETERMINATION OF REGIONAL CREDIT POOLS.] The 115.14 agency shall divide the annual per capita amount used in 115.15 determining the state ceiling for low-income housing tax credits 115.16 provided under section 42 of the Internal Revenue Code of 1986, 115.17 as amended, into a metropolitan pool and a greater Minnesota 115.18 pool. The metropolitan pool shall serve the metropolitan area 115.19 as defined in section 473.121, subdivision 2. The greater 115.20 Minnesota pool shall serve the remaining counties of the state. 115.21 The percentage of the annual per capita amount allotted to each 115.22 pool must be determined as follows: 115.23 (a) The percentage set-aside for projects involving a 115.24 qualified nonprofit organization as provided in section 42 of 115.25 the Internal Revenue Code of 1986, as amended, must be deducted 115.26 from the annual per capita amount used in determining the state 115.27 ceiling. 115.28 (b) Of the remaining amount, the metropolitan pool must be 115.29 allotted a percentage equal to the metropolitan counties' 115.30 percentage of the total number of state recipients of : aid to115.31 families with dependent childrenthe Minnesota family investment 115.32 program, general assistance, Minnesota supplemental aid, and 115.33 supplemental security income in the state, as reported annually 115.34 by the department of human services. The greater Minnesota pool 115.35 must be allotted the amount remaining after the metropolitan 115.36 pool's percentage has been allotted. 116.1 The set-aside for qualified nonprofit organizations must be 116.2 divided between the two regional pools in the same percentage as 116.3 determined for the credit amounts above. 116.4 Sec. 132. Minnesota Statutes 1998, section 473.129, 116.5 subdivision 8, is amended to read: 116.6 Subd. 8. [INSURANCE.] The council may provide for 116.7 self-insurance or otherwise provide for insurance relating to 116.8 any of its property, rights, or revenue, workers' compensation, 116.9 public liability, or any other risk or hazard arising from its 116.10 activities, and may provide for insuring any of its officers or 116.11 employees against the risk or hazard at the expense of the 116.12 council. If the council provides for self-insurance, against 116.13 its liability and the liability of its officers, employees, and 116.14 agents for damages resulting from its torts and those of its 116.15 officers, employees, and agents, including its obligation to pay 116.16 basic economic loss benefits under sections 65B.41 to 65B.71, it 116.17 shall be entitled to deduct from damages and basic economic loss 116.18 benefits all money paid or payable to the persons seeking 116.19 damages and benefits from all governmental entities providing 116.20 medical, hospital, and disability benefits except for payments 116.21 made under the aid to families with dependent childrenMinnesota 116.22 family investment program or medical assistance programsprogram. 116.23 Sec. 133. Minnesota Statutes 1998, section 477A.0122, 116.24 subdivision 2, is amended to read: 116.25 Subd. 2. [DEFINITIONS.] For purposes of this section, the 116.26 following definitions apply: 116.27 (a) "Children in out-of-home placement" means the total 116.28 unduplicated number of children in out-of-home care as reported 116.29 according to section 257.0725. 116.30 (b) "Family preservation programs" means family-based 116.31 services as defined in section 256F.03, subdivision 5, families 116.32 first services, parent and child education programs, and day 116.33 treatment services provided in cooperation with a school 116.34 district or other programs as defined by the commissioner of 116.35 human services. 116.36 (c) "Income maintenance caseload" means average monthly 117.1 number of AFDC orMinnesota family investment program-statewide117.2 program cases for the calendar year. 117.3 By July 1, 1994, the commissioner of human services shall 117.4 certify to the commissioner of revenue the number of children in 117.5 out-of-home placement in 1991 and 1992 for each county and the 117.6 income maintenance caseload for each county for the most recent 117.7 year available. By July 1 of each subsequent year, the 117.8 commissioner of human services shall certify to the commissioner 117.9 of revenue the income maintenance caseload for each county for 117.10 the most recent calendar year available. 117.11 Sec. 134. Minnesota Statutes 1998, section 501B.89, 117.12 subdivision 2, is amended to read: 117.13 Subd. 2. [SUPPLEMENTAL TRUSTS FOR PERSONS WITH 117.14 DISABILITIES.] (a) It is the public policy of this state to 117.15 enforce supplemental needs trusts as provided in this 117.16 subdivision. 117.17 (b) For purposes of this subdivision, a "supplemental needs 117.18 trust" is a trust created for the benefit of a person with a 117.19 disability and funded by someone other than the trust 117.20 beneficiary, the beneficiary's spouse, or anyone obligated to 117.21 pay any sum for damages or any other purpose to or for the 117.22 benefit of the trust beneficiary under the terms of a settlement 117.23 agreement or judgment. 117.24 (c) For purposes of this subdivision, a "person with a 117.25 disability" means a person who, prior to creation of a trust 117.26 which otherwise qualifies as a supplemental needs trust for the 117.27 person's benefit: 117.28 (1) is considered to be a person with a disability under 117.29 the disability criteria specified in Title II or Title XVI of 117.30 the Social Security Act; or 117.31 (2) has a physical or mental illness or condition which, in 117.32 the expected natural course of the illness or condition, either 117.33 prior to or following creation of the trust, to a reasonable 117.34 degree of medical certainty, is expected to: 117.35 (i) last for a continuous period of 12 months or more; and 117.36 (ii) substantially impair the person's ability to provide 118.1 for the person's care or custody. 118.2 Disability may be established conclusively for purposes of 118.3 this subdivision by the written opinion of a licensed 118.4 professional who is qualified to diagnose the illness or 118.5 condition, confirmed by the written opinion of a second licensed 118.6 professional who is qualified to diagnose the illness or 118.7 condition. 118.8 (d) The general purpose of a supplemental needs trust must 118.9 be to provide for the reasonable living expenses and other basic 118.10 needs of a person with a disability when benefits from publicly 118.11 funded benefit programs are not sufficient to provide adequately 118.12 for those needs. Subject to the restrictions contained in this 118.13 paragraph, a supplemental needs trust may authorize 118.14 distributions to provide for all or any portion of the 118.15 reasonable living expenses of the beneficiary. A supplemental 118.16 needs trust may allow or require distributions only in ways and 118.17 for purposes that supplement or complement the benefits 118.18 available under medical assistance, Minnesota supplemental aid, 118.19 and other publicly funded benefit programs for disabled 118.20 persons. A supplemental needs trust must contain provisions 118.21 that prohibit disbursements that would have the effect of 118.22 replacing, reducing, or substituting for publicly funded 118.23 benefits otherwise available to the beneficiary or rendering the 118.24 beneficiary ineligible for publicly funded benefits. 118.25 (e) A supplemental needs trust is not enforceable if the 118.26 trust beneficiary becomes a patient or resident after age 64 in 118.27 a state institution or nursing facility for six months or more 118.28 and, due to the beneficiary's medical need for care in an 118.29 institutional setting, there is no reasonable expectation that 118.30 the beneficiary will ever be discharged from the institution or 118.31 facility. For purposes of this paragraph "reasonable 118.32 expectation" means that the beneficiary's attending physician 118.33 has certified that the expectation is reasonable. For purposes 118.34 of this paragraph, a beneficiary participating in a group 118.35 residential program is not deemed to be a patient or resident in 118.36 a state institution or nursing facility. 119.1 (f) The trust income and assets of a supplemental needs 119.2 trust are considered available to the beneficiary for medical 119.3 assistance purposes to the extent they are considered available 119.4 to the beneficiary under medical assistance, supplemental 119.5 security income, or aid to families with dependent119.6 childrenMinnesota family investment program methodology, 119.7 whichever is used to determine the beneficiary's eligibility for 119.8 medical assistance. For other public assistance programs 119.9 established or administered under state law, assets and income 119.10 will be considered available to the beneficiary in accordance 119.11 with the methodology applicable to the program. 119.12 (g) Nothing in this subdivision requires submission of a 119.13 supplemental needs trust to a court for interpretation or 119.14 enforcement. 119.15 (h) Paragraphs (a) to (g) apply to supplemental needs 119.16 trusts whenever created, but the limitations and restrictions in 119.17 paragraphs (c) to (g) apply only to trusts created after June 119.18 30, 1993. 119.19 Sec. 135. Minnesota Statutes 1998, section 518.171, 119.20 subdivision 1, is amended to read: 119.21 Subdivision 1. [ORDER.] Compliance with this section 119.22 constitutes compliance with a qualified medical child support 119.23 order as described in the federal Employee Retirement Income 119.24 Security Act of 1974 (ERISA) as amended by the federal Omnibus 119.25 Budget Reconciliation Act of 1993 (OBRA). 119.26 (a) Every child support order must: 119.27 (1) expressly assign or reserve the responsibility for 119.28 maintaining medical insurance for the minor children and the 119.29 division of uninsured medical and dental costs; and 119.30 (2) contain the names, last known addresses, and social 119.31 security number of the custodial parent and noncustodial parent, 119.32 of the dependents unless the court prohibits the inclusion of an 119.33 address or social security number and orders the custodial 119.34 parent to provide the address and social security number to the 119.35 administrator of the health plan. The court shall order the 119.36 party with the better group dependent health and dental 120.1 insurance coverage or health insurance plan to name the minor 120.2 child as beneficiary on any health and dental insurance plan 120.3 that is available to the party on: 120.4 (i) a group basis; 120.5 (ii) through an employer or union; or 120.6 (iii) through a group health plan governed under the ERISA 120.7 and included within the definitions relating to health plans 120.8 found in section 62A.011, 62A.048, or 62E.06, subdivision 2. 120.9 "Health insurance" or "health insurance coverage" as used in 120.10 this section means coverage that is comparable to or better than 120.11 a number two qualified plan as defined in section 62E.06, 120.12 subdivision 2. "Health insurance" or "health insurance 120.13 coverage" as used in this section does not include medical 120.14 assistance provided under chapter 256, 256B, 256J, 256K, or 256D. 120.15 (b) If the court finds that dependent health or dental 120.16 insurance is not available to the obligor or obligee on a group 120.17 basis or through an employer or union, or that group insurance 120.18 is not accessible to the obligee, the court may require the 120.19 obligor (1) to obtain other dependent health or dental 120.20 insurance, (2) to be liable for reasonable and necessary medical 120.21 or dental expenses of the child, or (3) to pay no less than $50 120.22 per month to be applied to the medical and dental expenses of 120.23 the children or to the cost of health insurance dependent 120.24 coverage. 120.25 (c) If the court finds that the available dependent health 120.26 or dental insurance does not pay all the reasonable and 120.27 necessary medical or dental expenses of the child, including any 120.28 existing or anticipated extraordinary medical expenses, and the 120.29 court finds that the obligor has the financial ability to 120.30 contribute to the payment of these medical or dental expenses, 120.31 the court shall require the obligor to be liable for all or a 120.32 portion of the medical or dental expenses of the child not 120.33 covered by the required health or dental plan. Medical and 120.34 dental expenses include, but are not limited to, necessary 120.35 orthodontia and eye care, including prescription lenses. 120.36 (d) Unless otherwise agreed by the parties and approved by 121.1 the court, if the court finds that the obligee is not receiving 121.2 public assistance for the child and has the financial ability to 121.3 contribute to the cost of medical and dental expenses for the 121.4 child, including the cost of insurance, the court shall order 121.5 the obligee and obligor to each assume a portion of these 121.6 expenses based on their proportionate share of their total net 121.7 income as defined in section 518.54, subdivision 6. 121.8 (e) Payments ordered under this section are subject to 121.9 section 518.6111. An obligee who fails to apply payments 121.10 received to the medical expenses of the dependents may be found 121.11 in contempt of this order. 121.12 Sec. 136. Minnesota Statutes 1998, section 518.551, 121.13 subdivision 5, is amended to read: 121.14 Subd. 5. [NOTICE TO PUBLIC AUTHORITY; GUIDELINES.] (a) The 121.15 petitioner shall notify the public authority of all proceedings 121.16 for dissolution, legal separation, determination of parentage or 121.17 for the custody of a child, if either party is receiving public 121.18 assistance or applies for it subsequent to the commencement of 121.19 the proceeding. The notice must contain the full names of the 121.20 parties to the proceeding, their social security account 121.21 numbers, and their birth dates. After receipt of the notice, 121.22 the court shall set child support as provided in this 121.23 subdivision. The court may order either or both parents owing a 121.24 duty of support to a child of the marriage to pay an amount 121.25 reasonable or necessary for the child's support, without regard 121.26 to marital misconduct. The court shall approve a child support 121.27 stipulation of the parties if each party is represented by 121.28 independent counsel, unless the stipulation does not meet the 121.29 conditions of paragraph (i). In other cases the court shall 121.30 determine and order child support in a specific dollar amount in 121.31 accordance with the guidelines and the other factors set forth 121.32 in paragraph (c) and any departure therefrom. The court may 121.33 also order the obligor to pay child support in the form of a 121.34 percentage share of the obligor's net bonuses, commissions, or 121.35 other forms of compensation, in addition to, or if the obligor 121.36 receives no base pay, in lieu of, an order for a specific dollar 122.1 amount. 122.2 (b) The court shall derive a specific dollar amount for 122.3 child support by multiplying the obligor's net income by the 122.4 percentage indicated by the following guidelines: 122.5 Net Income Per Number of Children 122.6 Month of Obligor 122.7 1 2 3 4 5 6 7 or 122.8 more 122.9 $550 and Below Order based on the ability of the 122.10 obligor to provide support 122.11 at these income levels, or at higher 122.12 levels, if the obligor has 122.13 the earning ability. 122.14 $551 - 600 16% 19% 22% 25% 28% 30% 32% 122.15 $601 - 650 17% 21% 24% 27% 29% 32% 34% 122.16 $651 - 700 18% 22% 25% 28% 31% 34% 36% 122.17 $701 - 750 19% 23% 27% 30% 33% 36% 38% 122.18 $751 - 800 20% 24% 28% 31% 35% 38% 40% 122.19 $801 - 850 21% 25% 29% 33% 36% 40% 42% 122.20 $851 - 900 22% 27% 31% 34% 38% 41% 44% 122.21 $901 - 950 23% 28% 32% 36% 40% 43% 46% 122.22 $951 - 1000 24% 29% 34% 38% 41% 45% 48% 122.23 $1001- 5000 25% 30% 35% 39% 43% 47% 50% 122.24 or the amount 122.25 in effect under 122.26 paragraph (k) 122.27 Guidelines for support for an obligor with a monthly income 122.28 in excess of the income limit currently in effect under 122.29 paragraph (k) shall be the same dollar amounts as provided for 122.30 in the guidelines for an obligor with a monthly income equal to 122.31 the limit in effect. 122.32 Net Income defined as: 122.33 122.34 Total monthly 122.35 income less *(i) Federal Income Tax 122.36 *(ii) State Income Tax 123.1 (iii) Social Security 123.2 Deductions 123.3 (iv) Reasonable 123.4 Pension Deductions 123.5 *Standard 123.6 Deductions apply- (v) Union Dues 123.7 use of tax tables (vi) Cost of Dependent Health 123.8 recommended Insurance Coverage 123.9 (vii) Cost of Individual or Group 123.10 Health/Hospitalization 123.11 Coverage or an 123.12 Amount for Actual 123.13 Medical Expenses 123.14 (viii) A Child Support or 123.15 Maintenance Order that is 123.16 Currently Being Paid. 123.17 "Net income" does not include: 123.18 (1) the income of the obligor's spouse, but does include 123.19 in-kind payments received by the obligor in the course of 123.20 employment, self-employment, or operation of a business if the 123.21 payments reduce the obligor's living expenses; or 123.22 (2) compensation received by a party for employment in 123.23 excess of a 40-hour work week, provided that: 123.24 (i) support is nonetheless ordered in an amount at least 123.25 equal to the guidelines amount based on income not excluded 123.26 under this clause; and 123.27 (ii) the party demonstrates, and the court finds, that: 123.28 (A) the excess employment began after the filing of the 123.29 petition for dissolution; 123.30 (B) the excess employment reflects an increase in the work 123.31 schedule or hours worked over that of the two years immediately 123.32 preceding the filing of the petition; 123.33 (C) the excess employment is voluntary and not a condition 123.34 of employment; 123.35 (D) the excess employment is in the nature of additional, 123.36 part-time or overtime employment compensable by the hour or 124.1 fraction of an hour; and 124.2 (E) the party's compensation structure has not been changed 124.3 for the purpose of affecting a support or maintenance obligation. 124.4 The court shall review the work-related and 124.5 education-related child care costs paid and shall allocate the 124.6 costs to each parent in proportion to each parent's net income, 124.7 as determined under this subdivision, after the transfer of 124.8 child support and spousal maintenance, unless the allocation 124.9 would be substantially unfair to either parent. There is a 124.10 presumption of substantial unfairness if after the sum total of 124.11 child support, spousal maintenance, and child care costs is 124.12 subtracted from the noncustodial parent's income, the income is 124.13 at or below 100 percent of the federal poverty guidelines. The 124.14 cost of child care for purposes of this paragraph is 75 percent 124.15 of the actual cost paid for child care, to reflect the 124.16 approximate value of state and federal tax credits available to 124.17 the custodial parent. The actual cost paid for child care is 124.18 the total amount received by the child care provider for the 124.19 child or children of the obligor from the obligee or any public 124.20 agency. The court shall require verification of employment or 124.21 school attendance and documentation of child care expenses from 124.22 the obligee and the public agency, if applicable. If child care 124.23 expenses fluctuate during the year because of seasonal 124.24 employment or school attendance of the obligee or extended 124.25 periods of visitation with the obligor, the court shall 124.26 determine child care expenses based on an average monthly cost. 124.27 The amount allocated for child care expenses is considered child 124.28 support but is not subject to a cost-of-living adjustment under 124.29 section 518.641. The amount allocated for child care expenses 124.30 terminates when either party notifies the public authority that 124.31 the child care costs have ended and without any legal action on 124.32 the part of either party. The public authority shall verify the 124.33 information received under this provision before authorizing 124.34 termination. The termination is effective as of the date of the 124.35 notification. In other cases where there is a substantial 124.36 increase or decrease in child care expenses, the parties may 125.1 modify the order under section 518.64. 125.2 The court may allow the noncustodial parent to care for the 125.3 child while the custodial parent is working, as provided in 125.4 section 518.175, subdivision 8. Allowing the noncustodial 125.5 parent to care for the child under section 518.175, subdivision 125.6 8, is not a reason to deviate from the guidelines. 125.7 (c) In addition to the child support guidelines, the court 125.8 shall take into consideration the following factors in setting 125.9 or modifying child support or in determining whether to deviate 125.10 from the guidelines: 125.11 (1) all earnings, income, and resources of the parents, 125.12 including real and personal property, but excluding income from 125.13 excess employment of the obligor or obligee that meets the 125.14 criteria of paragraph (b), clause (2)(ii); 125.15 (2) the financial needs and resources, physical and 125.16 emotional condition, and educational needs of the child or 125.17 children to be supported; 125.18 (3) the standard of living the child would have enjoyed had 125.19 the marriage not been dissolved, but recognizing that the 125.20 parents now have separate households; 125.21 (4) which parent receives the income taxation dependency 125.22 exemption and what financial benefit the parent receives from 125.23 it; 125.24 (5) the parents' debts as provided in paragraph (d); and 125.25 (6) the obligor's receipt of public assistance under the 125.26 AFDC program formerly codified under sections 256.72 to 256.82 125.27 or 256B.01 to 256B.40 and chapter 256J or 256K. 125.28 (d) In establishing or modifying a support obligation, the 125.29 court may consider debts owed to private creditors, but only if: 125.30 (1) the right to support has not been assigned under 125.31 section 256.74256.741; 125.32 (2) the court determines that the debt was reasonably 125.33 incurred for necessary support of the child or parent or for the 125.34 necessary generation of income. If the debt was incurred for 125.35 the necessary generation of income, the court shall consider 125.36 only the amount of debt that is essential to the continuing 126.1 generation of income; and 126.2 (3) the party requesting a departure produces a sworn 126.3 schedule of the debts, with supporting documentation, showing 126.4 goods or services purchased, the recipient of them, the amount 126.5 of the original debt, the outstanding balance, the monthly 126.6 payment, and the number of months until the debt will be fully 126.7 paid. 126.8 (e) Any schedule prepared under paragraph (d), clause (3), 126.9 shall contain a statement that the debt will be fully paid after 126.10 the number of months shown in the schedule, barring emergencies 126.11 beyond the party's control. 126.12 (f) Any further departure below the guidelines that is 126.13 based on a consideration of debts owed to private creditors 126.14 shall not exceed 18 months in duration, after which the support 126.15 shall increase automatically to the level ordered by the court. 126.16 Nothing in this section shall be construed to prohibit one or 126.17 more step increases in support to reflect debt retirement during 126.18 the 18-month period. 126.19 (g) If payment of debt is ordered pursuant to this section, 126.20 the payment shall be ordered to be in the nature of child 126.21 support. 126.22 (h) Nothing shall preclude the court from receiving 126.23 evidence on the above factors to determine if the guidelines 126.24 should be exceeded or modified in a particular case. 126.25 (i) The guidelines in this subdivision are a rebuttable 126.26 presumption and shall be used in all cases when establishing or 126.27 modifying child support. If the court does not deviate from the 126.28 guidelines, the court shall make written findings concerning the 126.29 amount of the obligor's income used as the basis for the 126.30 guidelines calculation and any other significant evidentiary 126.31 factors affecting the determination of child support. If the 126.32 court deviates from the guidelines, the court shall make written 126.33 findings giving the amount of support calculated under the 126.34 guidelines, the reasons for the deviation, and shall 126.35 specifically address the criteria in paragraph (c) and how the 126.36 deviation serves the best interest of the child. The court may 127.1 deviate from the guidelines if both parties agree and the court 127.2 makes written findings that it is in the best interests of the 127.3 child, except that in cases where child support payments are 127.4 assigned to the public agency under section 256.74256.741, the 127.5 court may deviate downward only as provided in paragraph (j). 127.6 Nothing in this paragraph prohibits the court from deviating in 127.7 other cases. The provisions of this paragraph apply whether or 127.8 not the parties are each represented by independent counsel and 127.9 have entered into a written agreement. The court shall review 127.10 stipulations presented to it for conformity to the guidelines 127.11 and the court is not required to conduct a hearing, but the 127.12 parties shall provide the documentation of earnings required 127.13 under subdivision 5b. 127.14 (j) If the child support payments are assigned to the 127.15 public agency under section 256.74256.741, the court may not 127.16 deviate downward from the child support guidelines unless the 127.17 court specifically finds that the failure to deviate downward 127.18 would impose an extreme hardship on the obligor. 127.19 (k) The dollar amount of the income limit for application 127.20 of the guidelines must be adjusted on July 1 of every 127.21 even-numbered year to reflect cost-of-living changes. The 127.22 supreme court shall select the index for the adjustment from the 127.23 indices listed in section 518.641. The state court 127.24 administrator shall make the changes in the dollar amount 127.25 required by this paragraph available to courts and the public on 127.26 or before April 30 of the year in which the amount is to change. 127.27 (l) In establishing or modifying child support, if a child 127.28 receives a child's insurance benefit under United States Code, 127.29 title 42, section 402, because the obligor is entitled to old 127.30 age or disability insurance benefits, the amount of support 127.31 ordered shall be offset by the amount of the child's benefit. 127.32 The court shall make findings regarding the obligor's income 127.33 from all sources, the child support amount calculated under this 127.34 section, the amount of the child's benefit, and the obligor's 127.35 child support obligation. Any benefit received by the child in 127.36 a given month in excess of the child support obligation shall 128.1 not be treated as an arrearage payment or a future payment. 128.2 Sec. 137. Minnesota Statutes 1998, section 518.57, 128.3 subdivision 3, is amended to read: 128.4 Subd. 3. [SATISFACTION OF CHILD SUPPORT OBLIGATION.] The 128.5 court may conclude that an obligor has satisfied a child support 128.6 obligation by providing a home, care, and support for the child 128.7 while the child is living with the obligor, if the court finds 128.8 that the child was integrated into the family of the obligor 128.9 with the consent of the obligee and child support payments were 128.10 not assigned to the public agency under section 256.74 or 128.11 256.741. 128.12 Sec. 138. Minnesota Statutes 1998, section 518.614, 128.13 subdivision 3, is amended to read: 128.14 Subd. 3. [DUTIES OF PUBLIC AUTHORITY.] Within three 128.15 working days of receipt of sums released under subdivision 2, 128.16 the public authority shall remit to the obligee all amounts not 128.17 assigned under section 256.74256.741 as current support or 128.18 maintenance. The public authority shall also serve a copy of 128.19 the court's order and the provisions of section 518.6111 and 128.20 this section on the obligor's employer or other payor of funds 128.21 unless within 15 days after mailing of the notice of intent to 128.22 implement income withholding the obligor requests a hearing on 128.23 the issue of whether payment was in default as of the date of 128.24 the notice of default and serves notice of the request for 128.25 hearing on the public authority and the obligee. The public 128.26 authority shall instruct the employer or payor of funds pursuant 128.27 to section 518.6111 as to the effective date on which the next 128.28 support or maintenance payment is due. The withholding process 128.29 must begin on said date and shall reflect the total credits of 128.30 principal and interest amounts received from the escrow account. 128.31 Sec. 139. Minnesota Statutes 1998, section 518.64, 128.32 subdivision 2, is amended to read: 128.33 Subd. 2. [MODIFICATION.] (a) The terms of an order 128.34 respecting maintenance or support may be modified upon a showing 128.35 of one or more of the following: (1) substantially increased or 128.36 decreased earnings of a party; (2) substantially increased or 129.1 decreased need of a party or the child or children that are the 129.2 subject of these proceedings; (3) receipt of assistance 129.3 under the AFDC program formerly codified under sections 256.72 129.4 to 256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a 129.5 change in the cost of living for either party as measured by the 129.6 federal bureau of statistics, any of which makes the terms 129.7 unreasonable and unfair; (5) extraordinary medical expenses of 129.8 the child not provided for under section 518.171; or (6) the 129.9 addition of work-related or education-related child care 129.10 expenses of the obligee or a substantial increase or decrease in 129.11 existing work-related or education-related child care expenses. 129.12 On a motion to modify support, the needs of any child the 129.13 obligor has after the entry of the support order that is the 129.14 subject of a modification motion shall be considered as provided 129.15 by section 518.551, subdivision 5f. 129.16 (b) It is presumed that there has been a substantial change 129.17 in circumstances under paragraph (a) and the terms of a current 129.18 support order shall be rebuttably presumed to be unreasonable 129.19 and unfair if: 129.20 (1) the application of the child support guidelines in 129.21 section 518.551, subdivision 5, to the current circumstances of 129.22 the parties results in a calculated court order that is at least 129.23 20 percent and at least $50 per month higher or lower than the 129.24 current support order; 129.25 (2) the medical support provisions of the order established 129.26 under section 518.171 are not enforceable by the public 129.27 authority or the custodial parent; 129.28 (3) health coverage ordered under section 518.171 is not 129.29 available to the child for whom the order is established by the 129.30 parent ordered to provide; or 129.31 (4) the existing support obligation is in the form of a 129.32 statement of percentage and not a specific dollar amount. 129.33 (c) On a motion for modification of maintenance, including 129.34 a motion for the extension of the duration of a maintenance 129.35 award, the court shall apply, in addition to all other relevant 129.36 factors, the factors for an award of maintenance under section 130.1 518.552 that exist at the time of the motion. On a motion for 130.2 modification of support, the court: 130.3 (1) shall apply section 518.551, subdivision 5, and shall 130.4 not consider the financial circumstances of each party's spouse, 130.5 if any; and 130.6 (2) shall not consider compensation received by a party for 130.7 employment in excess of a 40-hour work week, provided that the 130.8 party demonstrates, and the court finds, that: 130.9 (i) the excess employment began after entry of the existing 130.10 support order; 130.11 (ii) the excess employment is voluntary and not a condition 130.12 of employment; 130.13 (iii) the excess employment is in the nature of additional, 130.14 part-time employment, or overtime employment compensable by the 130.15 hour or fractions of an hour; 130.16 (iv) the party's compensation structure has not been 130.17 changed for the purpose of affecting a support or maintenance 130.18 obligation; 130.19 (v) in the case of an obligor, current child support 130.20 payments are at least equal to the guidelines amount based on 130.21 income not excluded under this clause; and 130.22 (vi) in the case of an obligor who is in arrears in child 130.23 support payments to the obligee, any net income from excess 130.24 employment must be used to pay the arrearages until the 130.25 arrearages are paid in full. 130.26 (d) A modification of support or maintenance may be made 130.27 retroactive only with respect to any period during which the 130.28 petitioning party has pending a motion for modification but only 130.29 from the date of service of notice of the motion on the 130.30 responding party and on the public authority if public 130.31 assistance is being furnished or the county attorney is the 130.32 attorney of record. However, modification may be applied to an 130.33 earlier period if the court makes express findings that: 130.34 (1) the party seeking modification was precluded from 130.35 serving a motion by reason of a significant physical or mental 130.36 disability, a material misrepresentation of another party, or 131.1 fraud upon the court and that the party seeking modification, 131.2 when no longer precluded, promptly served a motion; 131.3 (2) the party seeking modification was a recipient of 131.4 federal Supplemental Security Income (SSI), Title II Older 131.5 Americans, Survivor's Disability Insurance (OASDI), other 131.6 disability benefits, or public assistance based upon need during 131.7 the period for which retroactive modification is sought; or 131.8 (3) the order for which the party seeks amendment was 131.9 entered by default, the party shows good cause for not 131.10 appearing, and the record contains no factual evidence, or 131.11 clearly erroneous evidence regarding the individual obligor's 131.12 ability to pay. 131.13 The court may provide that a reduction in the amount 131.14 allocated for child care expenses based on a substantial 131.15 decrease in the expenses is effective as of the date the 131.16 expenses decreased. 131.17 (e) Except for an award of the right of occupancy of the 131.18 homestead, provided in section 518.63, all divisions of real and 131.19 personal property provided by section 518.58 shall be final, and 131.20 may be revoked or modified only where the court finds the 131.21 existence of conditions that justify reopening a judgment under 131.22 the laws of this state, including motions under section 518.145, 131.23 subdivision 2. The court may impose a lien or charge on the 131.24 divided property at any time while the property, or subsequently 131.25 acquired property, is owned by the parties or either of them, 131.26 for the payment of maintenance or support money, or may 131.27 sequester the property as is provided by section 518.24. 131.28 (f) The court need not hold an evidentiary hearing on a 131.29 motion for modification of maintenance or support. 131.30 (g) Section 518.14 shall govern the award of attorney fees 131.31 for motions brought under this subdivision. 131.32 Sec. 140. Minnesota Statutes 1998, section 548.13, is 131.33 amended to read: 131.34 548.13 [ASSIGNMENT OF JUDGMENT; MODE AND EFFECT.] 131.35 Every assignment of a judgment shall be in writing, signed 131.36 and acknowledged by the assignor, except that written notice of 132.1 assignment shall be sufficient in the case of assignment under 132.2 section 256.74256.741. No assignment shall be valid as against 132.3 a subsequent purchaser of the judgment in good faith for value, 132.4 or against a creditor levying upon or attaching the same, unless 132.5 it is filed with the court administrator and an entry is made in 132.6 the docket. When filed and entered, no one but the assignee, 132.7 the assignee's agent, or attorney, shall be authorized to 132.8 collect or enforce the judgment; provided, that the lien of an 132.9 attorney on the judgment shall not be affected by the assignment. 132.10 Sec. 141. Minnesota Statutes 1998, section 550.136, 132.11 subdivision 6, is amended to read: 132.12 Subd. 6. [EARNINGS EXEMPTION NOTICE.] Before the first 132.13 levy on earnings under this chapter, the judgment creditor shall 132.14 serve upon the judgment debtor no less than ten days before the 132.15 service of the writ of execution, a notice that the writ of 132.16 execution may be served on the judgment debtor's employer. The 132.17 notice must: (1) be substantially in the form set forth below; 132.18 (2) be served personally, in the manner of a summons and 132.19 complaint, or by first class mail to the last known address of 132.20 the judgment debtor; (3) inform the judgment debtor that an 132.21 execution levy may be served on the judgment debtor's employer 132.22 in ten days, and that the judgment debtor may, within that time, 132.23 cause to be served on the judgment creditor a signed statement 132.24 under penalties of perjury asserting an entitlement to an 132.25 exemption from execution; (4) inform the judgment debtor of the 132.26 earnings exemptions contained in section 550.37, subdivision 14; 132.27 and (5) advise the judgment debtor of the relief set forth in 132.28 this chapter to which the debtor may be entitled if a judgment 132.29 creditor in bad faith disregards a valid claim and the fee, 132.30 costs, and penalty that may be assessed against a judgment 132.31 debtor who in bad faith falsely claims an exemption or in bad 132.32 faith takes action to frustrate the execution process. The 132.33 notice requirement of this subdivision does not apply to a levy 132.34 on earnings being retained by an employer pursuant to a 132.35 garnishment previously served in compliance with chapter 571. 132.36 The ten-day notice informing a judgment debtor that a writ 133.1 of execution may be used to levy the earnings of an individual 133.2 must be substantially in the following form: 133.3 STATE OF MINNESOTA DISTRICT COURT 133.4 COUNTY OF ............. ........... JUDICIAL DISTRICT 133.5 .............(Judgment Creditor) 133.6 against 133.7 EXECUTION EXEMPTION 133.8 .............(Judgment Debtor) NOTICE AND NOTICE OF 133.9 and INTENT TO LEVY ON EARNINGS 133.10 WITHIN TEN DAYS 133.11 .............(Third Party) 133.12 PLEASE TAKE NOTICE that a levy may be served upon your 133.13 employer or other third parties, without any further court 133.14 proceedings or notice to you, ten days or more from the date 133.15 hereof. Your earnings are completely exempt from execution levy 133.16 if you are now a recipient of relief based on need, if you have 133.17 been a recipient of relief within the last six months, or if you 133.18 have been an inmate of a correctional institution in the last 133.19 six months. 133.20 Relief based on need includes Aid to Families with133.21 Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA)133.22 Minnesota family investment program, Emergency Assistance (EA), 133.23 work first, Medical Assistance (MA), General Assistance (GA), 133.24 General Assistance Medical Care (GAMC), Emergency General 133.25 Assistance (EGA), Work Readiness,Minnesota Supplemental Aid 133.26 (MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 133.27 Income (SSI), and Energy Assistance. 133.28 If you wish to claim an exemption, you should fill out the 133.29 appropriate form below, sign it, and send it to the judgment 133.30 creditor's attorney. 133.31 You may wish to contact the attorney for the judgment 133.32 creditor in order to arrange for a settlement of the debt or 133.33 contact an attorney to advise you about exemptions or other 133.34 rights. 133.35 PENALTIES 133.36 (1) Be advised that even if you claim an exemption, an 134.1 execution levy may still be served on your employer. If 134.2 your earnings are levied on after you claim an exemption, 134.3 you may petition the court for a determination of your 134.4 exemption. If the court finds that the judgment creditor 134.5 disregarded your claim of exemption in bad faith, you will 134.6 be entitled to costs, reasonable attorney fees, actual 134.7 damages, and an amount not to exceed $100. 134.8 (2) HOWEVER, BE WARNED if you claim an exemption, the 134.9 judgment creditor can also petition the court for a 134.10 determination of your exemption, and if the court finds 134.11 that you claimed an exemption in bad faith, you will be 134.12 assessed costs and reasonable attorney's fees plus an 134.13 amount not to exceed $100. 134.14 (3) If after receipt of this notice, you in bad faith take 134.15 action to frustrate the execution levy, thus requiring the 134.16 judgment creditor to petition the court to resolve the 134.17 problem, you will be liable to the judgment creditor for 134.18 costs and reasonable attorney's fees plus an amount not to 134.19 exceed $100. 134.20 DATED: ............ ........................ 134.21 (Attorney for Judgment Creditor) 134.22 ........................ 134.23 Address 134.24 ........................ 134.25 Telephone 134.26 JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE 134.27 I hereby claim that my earnings are exempt from execution 134.28 because: 134.29 (1) I am presently a recipient of relief based on need. 134.30 (Specify the program, case number, and the county from 134.31 which relief is being received.) 134.32 ................ ...................... ............... 134.33 Program Case Number (if known) County 134.34 (2) I am not now receiving relief based on need, but I have 134.35 received relief based on need within the last six months. 134.36 (Specify the program, case number, and the county from 135.1 which relief has been received.) 135.2 ................ ...................... ............... 135.3 Program Case Number (if known) County 135.4 (3) I have been an inmate of a correctional institution 135.5 within the last six months. (Specify the correctional 135.6 institution and location.) 135.7 ........................... .......................... 135.8 Correctional Institution Location 135.9 I hereby authorize any agency that has distributed relief 135.10 to me or any correctional institution in which I was an inmate 135.11 to disclose to the above-named judgment creditor or the judgment 135.12 creditor's attorney only whether or not I am or have been a 135.13 recipient of relief based on need or an inmate of a correctional 135.14 institution within the last six months. I have mailed or 135.15 delivered a copy of this form to the judgment creditor or 135.16 judgment creditor's attorney. 135.17 ........................... ......................... 135.18 Debtor 135.19 ......................... 135.20 Address 135.21 Sec. 142. Minnesota Statutes 1998, section 550.143, 135.22 subdivision 3, is amended to read: 135.23 Subd. 3. [EXEMPTION NOTICE.] If the levy is on funds of a 135.24 judgment debtor who is a natural person and if the funds to be 135.25 levied are held on deposit at any financial institution, the 135.26 judgment creditor or its attorney shall provide the sheriff with 135.27 two copies of an exemption notice, which must be substantially 135.28 in the form set forth below. The sheriff shall serve both 135.29 copies of the exemption notice on the financial institution, 135.30 along with the writ of execution. Failure of the sheriff to 135.31 serve the exemption notices renders the levy void, and the 135.32 financial institution shall take no action. However, if this 135.33 subdivision is being used to execute on funds that have 135.34 previously been garnished in compliance with section 571.71, the 135.35 judgment creditor is not required to serve additional exemption 135.36 notices. In that event, the execution levy shall only be 136.1 effective as to the funds that were subject to the prior 136.2 garnishment. Upon receipt of the writ of execution and 136.3 exemption notices, the financial institution shall retain as 136.4 much of the amount due under section 550.04 as the financial 136.5 institution has on deposit owing to the judgment debtor, but not 136.6 more than 110 percent of the amount remaining due on the 136.7 judgment. 136.8 STATE OF MINNESOTA DISTRICT COURT 136.9 COUNTY OF ................ .......... JUDICIAL DISTRICT 136.10 .............(Judgment Creditor) 136.11 .............(Judgment Debtor) 136.12 TO: Debtor EXEMPTION NOTICE 136.13 An order for attachment, garnishment summons, or levy of 136.14 execution (strike inapplicable language) has been served on 136.15 ............. (Bank or other financial institution where you 136.16 have an account.) 136.17 Your account balance is $........ 136.18 The amount being held is $........ 136.19 However, all or a portion of the funds in your account will 136.20 normally be exempt from creditors' claims if they are in one of 136.21 the following categories: 136.22 (1) relief based on need. This includes : Aid to Families136.23 with Dependent Children (AFDC), AFDC-Emergency Assistance136.24 (AFDC-EA)the Minnesota family investment program, Emergency 136.25 Assistance (EA), work first program, Medical Assistance (MA), 136.26 General Assistance (GA), General Assistance Medical Care (GAMC), 136.27 Emergency General Assistance (EGA), Work Readiness,Minnesota 136.28 Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA), 136.29 Supplemental Security Income (SSI), and Energy Assistance; 136.30 (2) Social Security benefits (Old Age, Survivors, or 136.31 Disability Insurance); 136.32 (3) reemployment insurance, workers' compensation, or 136.33 veterans' benefits; 136.34 (4) an accident, disability, or retirement pension or 136.35 annuity; 136.36 (5) life insurance proceeds; 137.1 (6) the earnings of your minor child and any child support 137.2 paid to you; or 137.3 (7) money from a claim for damage or destruction of exempt 137.4 property (such as household goods, farm tools, business 137.5 equipment, a mobile home, or a car). 137.6 The following funds are also exempt: 137.7 (8) all earnings of a person in category (1); 137.8 (9) all earnings of a person who has received relief based 137.9 on need, or who has been an inmate of a correctional 137.10 institution, within the last six months; 137.11 (10) 75 percent of every debtor's after tax earnings; and 137.12 (11) all of a judgment debtor's after tax earnings below 40 137.13 times the federal minimum wage. 137.14 TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK: 137.15 Categories (10) and (11): 20 days 137.16 Categories (8) and (9): 60 days 137.17 All others: no time limit, as long as funds are traceable 137.18 to the exempt source. (In tracing funds, the first-in, 137.19 first-out method is used. This means money deposited first is 137.20 spent first.) The money being sought by the judgment creditor 137.21 is being held in your account to give you a chance to claim an 137.22 exemption. 137.23 TO CLAIM AN EXEMPTION: 137.24 Fill out, sign, and mail or deliver one copy of the 137.25 attached exemption claim form to the institution which sent you 137.26 this notice and mail or deliver one copy to the judgment 137.27 creditor's attorney. In the event that there is no attorney for 137.28 the judgment creditor, then the notice shall be sent directly to 137.29 the judgment creditor. The address for the judgment creditor's 137.30 attorney or the judgment creditor is set forth below. Both 137.31 copies must be mailed or delivered on the same day. 137.32 If the financial institution does not get the exemption 137.33 claim back from you within 14 days of the date they mailed or 137.34 gave it to you, they will be free to turn the money over to the 137.35 sheriff or the judgment creditor. If you are going to claim an 137.36 exemption, do so as soon as possible, because your money may be 138.1 held until it is decided. 138.2 IF YOU CLAIM AN EXEMPTION: 138.3 (1) nonexempt money can be turned over to the judgment 138.4 creditor or sheriff; 138.5 (2) the financial institution will keep holding the money 138.6 claimed to be exempt; and 138.7 (3) seven days after receiving your exemption claim, the 138.8 financial institution will release the money to you unless 138.9 before then it receives an objection to your exemption claim. 138.10 IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 138.11 the institution will hold the money until a court decides 138.12 if your exemption claim is valid, BUT ONLY IF the institution 138.13 gets a copy of your court motion papers asserting the exemption 138.14 WITHIN TEN DAYS after the objection is mailed or given to you. 138.15 You may wish to consult an attorney at once if the creditor 138.16 objects to your exemption claim. 138.17 MOTION TO DETERMINE EXEMPTION: 138.18 At any time after your funds have been held, you may ask 138.19 for a court decision on the validity of your exemption claim by 138.20 filing a request for hearing which may be obtained at the office 138.21 of the court administrator of the above court. 138.22 PENALTIES: 138.23 If you claim an exemption in bad faith, or if the judgment 138.24 creditor wrongly objects to an exemption in bad faith, the court 138.25 may order the person who acted in bad faith to pay costs, actual 138.26 damages, attorney fees, and an additional amount of up to $100. 138.27 ............................. 138.28 ............................. 138.29 ............................. 138.30 ............................. 138.31 Name and address of (Attorney 138.32 for) Judgment Creditor 138.33 EXEMPTION: 138.34 (a) Amount of exemption claim. 138.35 / / I claim ALL the funds being held are exempt. 138.36 / / I claim SOME of the funds being held are exempt. 139.1 The exempt amount is $............ 139.2 (b) Basis for exemption. 139.3 Of the 11 categories listed above, I am in category number 139.4 ............ (If more than one category applies, you may fill 139.5 in as many as apply.) The source of the exempt funds is the 139.6 following: 139.7 ............................................................. 139.8 ............................................................. 139.9 ............................................................. 139.10 (If the source is a type of relief based on need, list the 139.11 case number and county: 139.12 case number: ...............; 139.13 county: ....................) 139.14 I hereby authorize any agency that has distributed relief 139.15 to me or any correctional institution in which I was an inmate 139.16 to disclose to the above named creditor or its attorney only 139.17 whether or not I am or have been a recipient of relief based on 139.18 need or an inmate of a correctional institute within the last 139.19 six months. 139.20 I have mailed or delivered a copy of the exemption notice 139.21 to the judgment creditor or judgment creditor's attorney if 139.22 represented. 139.23 ............................. 139.24 DEBTOR 139.25 DATED: ............. ............................. 139.26 ............................. 139.27 ............................. 139.28 DEBTOR ADDRESS 139.29 Sec. 143. Minnesota Statutes 1998, section 550.37, 139.30 subdivision 14, is amended to read: 139.31 Subd. 14. [PUBLIC ASSISTANCE.] All relief based on need, 139.32 and the earnings or salary of a person who is a recipient of 139.33 relief based on need, shall be exempt from all claims of 139.34 creditors including any contractual setoff or security interest 139.35 asserted by a financial institution. For the purposes of this 139.36 chapter, relief based on need includes AFDC,MFIP, MFIP-R,140.1 MFIP-S,work first, general assistance medical care, 140.2 supplemental security income, medical assistance, Minnesota 140.3 supplemental assistance, and general assistance. The salary or 140.4 earnings of any debtor who is or has been an eligible recipient 140.5 of relief based on need, or an inmate of a correctional 140.6 institution shall, upon the debtor's return to private 140.7 employment or farming after having been an eligible recipient of 140.8 relief based on need, or an inmate of a correctional 140.9 institution, be exempt from attachment, garnishment, or levy of 140.10 execution for a period of six months after the debtor's return 140.11 to employment or farming and after all public assistance for 140.12 which eligibility existed has been terminated. The exemption 140.13 provisions contained in this subdivision also apply for 60 days 140.14 after deposit in any financial institution, whether in a single 140.15 or joint account. In tracing the funds, the first-in first-out 140.16 method of accounting shall be used. The burden of establishing 140.17 that funds are exempt rests upon the debtor. Agencies 140.18 distributing relief and the correctional institutions shall, at 140.19 the request of creditors, inform them whether or not any debtor 140.20 has been an eligible recipient of relief based on need, or an 140.21 inmate of a correctional institution, within the preceding six 140.22 months. 140.23 Sec. 144. Minnesota Statutes 1998, section 551.05, 140.24 subdivision 1a, is amended to read: 140.25 Subd. 1a. [EXEMPTION NOTICE.] If the writ of execution is 140.26 being used by the attorney to levy funds of a judgment debtor 140.27 who is a natural person and if the funds to be levied are held 140.28 on deposit at any financial institution, the attorney for the 140.29 judgment creditor shall serve with the writ of execution two 140.30 copies of an exemption notice. The notice must be substantially 140.31 in the form set forth below. Failure of the attorney for the 140.32 judgment creditor to send the exemption notice renders the 140.33 execution levy void, and the financial institution shall take no 140.34 action. However, if this subdivision is being used to execute 140.35 on funds that have previously been garnished in compliance with 140.36 section 571.71, the attorney for judgment creditor is not 141.1 required to serve an additional exemption notice. In that 141.2 event, the execution levy shall only be effective as to the 141.3 funds that were subject to the prior garnishment. Upon receipt 141.4 of the writ of execution and exemption notices, the financial 141.5 institution shall retain as much of the amount due under section 141.6 550.04 as the financial institution has on deposit owing to the 141.7 judgment debtor, but not more than 100 percent of the amount 141.8 remaining due on the judgment, or $5,000, whichever is less. 141.9 The notice informing a judgment debtor that an execution 141.10 levy has been used to attach funds of the judgment debtor to 141.11 satisfy a claim must be substantially in the following form: 141.12 141.13 STATE OF MINNESOTA DISTRICT COURT 141.14 County of ................ .........JUDICIAL DISTRICT 141.15 ................(Judgment Creditor) 141.16 ................(Judgment Debtor) 141.17 TO: Judgment Debtor EXEMPTION NOTICE 141.18 An order for attachment, garnishment summons, or levy of 141.19 execution (strike inapplicable language) has been served on 141.20 ............. (bank or other financial institution where you 141.21 have an account). 141.22 Your account balance is $........ 141.23 The amount being held is $........ 141.24 However, all or a portion of the funds in your account will 141.25 normally be exempt from creditors' claims if they are in one of 141.26 the following categories: 141.27 (1) relief based on need. This includes : Aid to Families141.28 with Dependent Children (AFDC), AFDC-Emergency Assistance141.29 (AFDC-EA)the Minnesota family investment program (MFIP), work 141.30 first program, Medical Assistance (MA), General Assistance (GA), 141.31 General Assistance Medical Care (GAMC), Emergency General 141.32 Assistance (EGA), Work Readiness,Minnesota Supplemental Aid 141.33 (MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 141.34 Income (SSI), and Energy Assistance; 141.35 (2) Social Security benefits (Old Age, Survivors, or 141.36 Disability Insurance); 142.1 (3) reemployment insurance, workers' compensation, or 142.2 veterans' benefits; 142.3 (4) an accident, disability, or retirement pension or 142.4 annuity; 142.5 (5) life insurance proceeds; 142.6 (6) the earnings of your minor child and any child support 142.7 paid to you; or 142.8 (7) money from a claim for damage or destruction of exempt 142.9 property (such as household goods, farm tools, business 142.10 equipment, a mobile home, or a car). 142.11 The following funds are also exempt: 142.12 (8) all earnings of a person in category (1); 142.13 (9) all earnings of a person who has received relief based 142.14 on need, or who has been an inmate of a correctional 142.15 institution, within the last six months; 142.16 (10) 75 percent of every judgment debtor's after tax 142.17 earnings; or 142.18 (11) all of a judgment debtor's after tax earnings below 40 142.19 times the federal minimum wage. 142.20 TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK: 142.21 Categories (10) and (11): 20 days 142.22 Categories (8) and (9): 60 days 142.23 All others: no time limit, as long as funds are traceable 142.24 to the exempt source. (In tracing funds, the first-in, 142.25 first-out method is used. This means money deposited first is 142.26 spent first.) The money being sought by the judgment creditor 142.27 is being held in your account to give you a chance to claim an 142.28 exemption. 142.29 TO CLAIM AN EXEMPTION: 142.30 Fill out, sign, and mail or deliver one copy of the 142.31 attached exemption claim form to the institution which sent you 142.32 this notice and mail or deliver one copy to the judgment 142.33 creditor's attorney. The address for the judgment creditor's 142.34 attorney is set forth below. Both copies must be mailed or 142.35 delivered on the same day. 142.36 If they do not get the exemption claim back from you within 143.1 14 days of the date they mailed or gave it to you, they will be 143.2 free to turn the money over to the attorney for the judgment 143.3 creditor. If you are going to claim an exemption, do so as soon 143.4 as possible, because your money may be held until it is decided. 143.5 IF YOU CLAIM AN EXEMPTION: 143.6 (1) nonexempt money can be turned over to the judgment 143.7 creditor or sheriff; 143.8 (2) the financial institution will keep holding the money 143.9 claimed to be exempt; and 143.10 (3) seven days after receiving your exemption claim, the 143.11 financial institution will release the money to you unless 143.12 before then it receives an objection to your exemption claim. 143.13 IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 143.14 the institution will hold the money until a court decides 143.15 if your exemption claim is valid, BUT ONLY IF the institution 143.16 gets a copy of your court motion papers asserting the exemption 143.17 WITHIN TEN DAYS after the objection is mailed or given to you. 143.18 You may wish to consult an attorney at once if the judgment 143.19 creditor objects to your exemption claim. 143.20 MOTION TO DETERMINE EXEMPTION: 143.21 At any time after your funds have been held, you may ask 143.22 for a court decision on the validity of your exemption claim by 143.23 filing a request for hearing which may be obtained at the office 143.24 of the court administrator of the above court. 143.25 PENALTIES: 143.26 If you claim an exemption in bad faith, or if the judgment 143.27 creditor wrongly objects to an exemption in bad faith, the court 143.28 may order the person who acted in bad faith to pay costs, actual 143.29 damages, attorney fees, and an additional amount of up to $100. 143.30 ............................. 143.31 ............................. 143.32 ............................. 143.33 ............................. 143.34 Name and address of (Attorney 143.35 for) Judgment Creditor 143.36 EXEMPTION: 144.1 (a) Amount of exemption claim. 144.2 / / I claim ALL the funds being held are exempt. 144.3 / / I claim SOME of the funds being held are exempt. 144.4 The exempt amount is $............ 144.5 (b) Basis for exemption. 144.6 Of the 11 categories listed above, I am in category number 144.7 ............ (If more than one category applies, you may fill 144.8 in as many as apply.) The source of the exempt funds is the 144.9 following: 144.10 ............................................................. 144.11 ............................................................. 144.12 ............................................................. 144.13 (If the source is a type of relief based on need, list the 144.14 case number and county: 144.15 case number: ...............; 144.16 county: ....................) 144.17 I hereby authorize any agency that has distributed relief 144.18 to me or any correctional institution in which I was an inmate 144.19 to disclose to the above named judgment creditor's attorney only 144.20 whether or not I am or have been a recipient of relief based on 144.21 need or an inmate of a correctional institute within the last 144.22 six months. 144.23 I have mailed or delivered a copy of the exemption notice 144.24 to the judgment creditor's attorney. 144.25 ............................. 144.26 DEBTOR 144.27 DATED: ............. ............................. 144.28 ............................. 144.29 ............................. 144.30 DEBTOR ADDRESS 144.31 Sec. 145. Minnesota Statutes 1998, section 551.06, 144.32 subdivision 6, is amended to read: 144.33 Subd. 6. [EARNINGS EXEMPTION NOTICE.] Before the first 144.34 levy on earnings, the attorney for the judgment creditor shall 144.35 serve upon the judgment debtor no less than ten days before the 144.36 service of the writ of execution, a notice that the writ of 145.1 execution may be served on the judgment debtor's employer. The 145.2 notice must: (1) be substantially in the form set forth below; 145.3 (2) be served personally, in the manner of a summons and 145.4 complaint, or by first class mail to the last known address of 145.5 the judgment debtor; (3) inform the judgment debtor that an 145.6 execution levy may be served on the judgment debtor's employer 145.7 in ten days, and that the judgment debtor may, within that time, 145.8 cause to be served on the judgment creditor's attorney a signed 145.9 statement under penalties of perjury asserting an entitlement to 145.10 an exemption from execution; (4) inform the judgment debtor of 145.11 the earnings exemptions contained in section 550.37, subdivision 145.12 14; and (5) advise the judgment debtor of the relief set forth 145.13 in this chapter to which the judgment debtor may be entitled if 145.14 a judgment creditor in bad faith disregards a valid claim and 145.15 the fee, costs, and penalty that may be assessed against a 145.16 judgment debtor who in bad faith falsely claims an exemption or 145.17 in bad faith takes action to frustrate the execution process. 145.18 The notice requirement of this subdivision does not apply to a 145.19 levy on earnings being held by an employer pursuant to a 145.20 garnishment summons served in compliance with chapter 571. 145.21 The ten-day notice informing a judgment debtor that a writ 145.22 of execution may be used to levy the earnings of an individual 145.23 must be substantially in the following form: 145.24 145.25 STATE OF MINNESOTA DISTRICT COURT 145.26 COUNTY OF ............. ........... JUDICIAL DISTRICT 145.27 ............(Judgment Creditor) 145.28 against 145.29 EXECUTION EXEMPTION 145.30 NOTICE AND NOTICE OF 145.31 ............(Judgment Debtor) INTENT TO LEVY ON EARNINGS 145.32 and WITHIN TEN DAYS 145.33 ............(Third Party) 145.34 PLEASE TAKE NOTICE that a levy may be served upon your 145.35 employer or other third parties, without any further court 145.36 proceedings or notice to you, ten days or more from the date 146.1 hereof. Your earnings are completely exempt from execution levy 146.2 if you are now a recipient of relief based on need, if you have 146.3 been a recipient of relief within the last six months, or if you 146.4 have been an inmate of a correctional institution in the last 146.5 six months. 146.6 Relief based on need includes Aid to Families with146.7 Dependent Children (AFDC), AFDC-Emergency Assistance146.8 (AFDC-EA)the Minnesota family investment program (MFIP), 146.9 Emergency Assistance (EA), work first program, Medical 146.10 Assistance (MA), General Assistance (GA), General Assistance 146.11 Medical Care (GAMC), Emergency General Assistance (EGA), Work146.12 Readiness,Minnesota Supplemental Aid (MSA), MSA Emergency 146.13 Assistance (MSA-EA), Supplemental Security Income (SSI), and 146.14 Energy Assistance. 146.15 If you wish to claim an exemption, you should fill out the 146.16 appropriate form below, sign it, and send it to the judgment 146.17 creditor's attorney. 146.18 You may wish to contact the attorney for the judgment 146.19 creditor in order to arrange for a settlement of the debt or 146.20 contact an attorney to advise you about exemptions or other 146.21 rights. 146.22 PENALTIES 146.23 (1) Be advised that even if you claim an exemption, an 146.24 execution levy may still be served on your employer. If 146.25 your earnings are levied on after you claim an exemption, 146.26 you may petition the court for a determination of your 146.27 exemption. If the court finds that the judgment creditor 146.28 disregarded your claim of exemption in bad faith, you will 146.29 be entitled to costs, reasonable attorney fees, actual 146.30 damages, and an amount not to exceed $100. 146.31 (2) HOWEVER, BE WARNED if you claim an exemption, the 146.32 judgment creditor can also petition the court for a 146.33 determination of your exemption, and if the court finds 146.34 that you claimed an exemption in bad faith, you will be 146.35 assessed costs and reasonable attorney's fees plus an 146.36 amount not to exceed $100. 147.1 (3) If after receipt of this notice, you in bad faith take 147.2 action to frustrate the execution levy, thus requiring the 147.3 judgment creditor to petition the court to resolve the 147.4 problem, you will be liable to the judgment creditor for 147.5 costs and reasonable attorney's fees plus an amount not to 147.6 exceed $100. 147.7 DATED: ............ ........................ 147.8 (Attorney for Judgment Creditor) 147.9 ........................ 147.10 Address 147.11 ........................ 147.12 Telephone 147.13 JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE 147.14 I hereby claim that my earnings are exempt from execution 147.15 because: 147.16 (1) I am presently a recipient of relief based on need. 147.17 (Specify the program, case number, and the county from 147.18 which relief is being received.) 147.19 ................ ...................... ............... 147.20 Program Case Number (if known) County 147.21 (2) I am not now receiving relief based on need, but I have 147.22 received relief based on need within the last six months. 147.23 (Specify the program, case number, and the county from 147.24 which relief has been received.) 147.25 ................ ...................... ............... 147.26 Program Case Number (if known) County 147.27 (3) I have been an inmate of a correctional institution 147.28 within the last six months. (Specify the correctional 147.29 institution and location.) 147.30 ........................... .......................... 147.31 Correctional Institution Location 147.32 I hereby authorize any agency that has distributed relief 147.33 to me or any correctional institution in which I was an inmate 147.34 to disclose to the above-named judgment creditor or the judgment 147.35 creditor's attorney only whether or not I am or have been a 147.36 recipient of relief based on need or an inmate of a correctional 148.1 institution within the last six months. I have mailed or 148.2 delivered a copy of this form to the creditor or creditor's 148.3 attorney. 148.4 DATE: ..................... ......................... 148.5 Judgment Debtor 148.6 ......................... 148.7 Address 148.8 Sec. 146. Minnesota Statutes 1998, section 570.025, 148.9 subdivision 6, is amended to read: 148.10 Subd. 6. [NOTICE.] The respondent shall be served with a 148.11 copy of the preliminary attachment order issued pursuant to this 148.12 section together with a copy of all pleadings and other 148.13 documents not previously served, including any affidavits upon 148.14 which the claimant intends to rely at the subsequent hearing and 148.15 a transcript of any oral testimony given at the preliminary 148.16 hearing upon which the claimant intends to rely and a notice of 148.17 hearing. Service shall be in the manner prescribed for personal 148.18 service of a summons unless that service is impracticable or 148.19 would be ineffective and the court prescribes an alternative 148.20 method of service calculated to provide actual notice to the 148.21 respondent. 148.22 The notice of hearing served upon the respondent shall be 148.23 signed by claimant or the attorney for claimant and shall 148.24 provide, at a minimum, the following information in 148.25 substantially the following language: 148.26 NOTICE OF HEARING 148.27 To: (the respondent) 148.28 The (insert name of court) Court has ordered the sheriff to 148.29 seize some of your property. The court has directed the sheriff 148.30 to seize the following specific property: (insert list of 148.31 property). (List other action taken by the court). Some of 148.32 your property may be exempt from seizure. See the exemption 148.33 notice below. 148.34 The Court issued this Order based upon the claim of (insert 148.35 name of claimant) that (insert name of claimant) is entitled to 148.36 a court order for seizure of your property to secure your 149.1 payment of any money judgment that (insert name of claimant) may 149.2 later be obtained against you and that immediate action was 149.3 necessary. 149.4 You have the legal right to challenge (insert name of 149.5 claimant) claims at a court hearing before a judge. The hearing 149.6 will be held at the (insert place) on (insert date) at (insert 149.7 time). You may attend the court hearing alone or with an 149.8 attorney. After you have presented your side of the matter, the 149.9 court will decide what should be done with your property until 149.10 the lawsuit against you is finally decided. 149.11 IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER THE 149.12 SHERIFF TO KEEP PROPERTY THAT HAS BEEN SEIZED. 149.13 EXEMPTION NOTICE 149.14 An order of attachment is being served upon you. Some of 149.15 your property is exempt and cannot be seized. The following is 149.16 a list of some of the more common exemptions. It is not 149.17 complete and is subject to section 550.37, and other state and 149.18 federal laws. If you have questions about an exemption, you 149.19 should obtain competent legal advice. 149.20 1. A homestead or the proceeds from the sale of a 149.21 homestead. 149.22 2. Household furniture, appliances, phonographs, radios, 149.23 and televisions up to a total current value of $4,500 at the 149.24 time of attachment. 149.25 3. A manufactured (mobile) home used as your home. 149.26 4. One motor vehicle currently worth less than $2,000 149.27 after deducting any security interests. 149.28 5. Farm machinery used by someone principally engaged in 149.29 farming, or tools, machines, or office furniture used in your 149.30 business or trade. This exemption is limited to $5,000. 149.31 6. Relief based on need. This includes Aid to Families149.32 with Dependent Children (AFDC)Minnesota family investment 149.33 program, Emergency Assistance (EA), work first program, 149.34 Supplemental Security Income (SSI), Minnesota Supplemental 149.35 Assistance, and General Assistance. 149.36 7. Social Security benefits. 150.1 8. Reemployment insurance, workers' compensation, or 150.2 veterans' benefits. 150.3 9. An accident disability or retirement pension or annuity. 150.4 10. Life insurance proceeds or the earnings of your minor 150.5 child and any child support paid to you. 150.6 11. Money from a claim for damage or destruction of exempt 150.7 property (such as household goods, farm tools, business 150.8 equipment, a manufactured (mobile )home, or a car ). 150.9 Sec. 147. Minnesota Statutes 1998, section 570.026, 150.10 subdivision 2, is amended to read: 150.11 Subd. 2. [SERVICE.] The claimant's motion to obtain an 150.12 order of attachment together with the claimant's affidavit and 150.13 notice of hearing shall be served in the manner prescribed for 150.14 service of a summons in a civil action in district court unless 150.15 that service is impracticable or would be ineffective and the 150.16 court prescribes an alternative method of service calculated to 150.17 provide actual notice to the respondent. If the respondent has 150.18 already appeared in the action, the motion shall be served in 150.19 the manner prescribed for service of pleadings subsequent to the 150.20 summons. The date of hearing shall be fixed in accordance with 150.21 Rule 6 of the Minnesota Rules of Civil Procedure, unless a 150.22 different date is fixed by order of the court. 150.23 The notice of hearing served upon the respondent shall be 150.24 signed by the claimant or the attorney for the claimant and 150.25 shall provide, at a minimum, the following information in 150.26 substantially the following language: 150.27 NOTICE OF HEARING 150.28 TO: (the respondent) 150.29 A hearing will be held (insert place) on (insert date) at 150.30 (insert time) to determine whether the sheriff shall seize 150.31 nonexempt property belonging to you to secure a judgment that 150.32 may be entered against you. 150.33 You may attend the court hearing alone or with an 150.34 attorney. After you have presented your side of the matter, the 150.35 court will decide what should be done with your property until 150.36 the lawsuit which has been commenced against you is finally 151.1 decided. 151.2 If the court directs the sheriff to seize and secure the 151.3 property while the lawsuit is pending, you may still keep the 151.4 property until the lawsuit is decided if you file a bond in an 151.5 amount set by the court. 151.6 IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER YOUR 151.7 NONEXEMPT PROPERTY TO BE SEIZED. 151.8 EXEMPTION NOTICE 151.9 Some of your property is exempt and cannot be attached. 151.10 The following is a list of some of the more common exemptions. 151.11 It is not complete and is subject to section 550.37, and other 151.12 state and federal laws. If you have questions about an 151.13 exemption you should obtain competent legal advice. 151.14 1. A homestead or the proceeds from the sale of a 151.15 homestead. 151.16 2. Household furniture, appliances, phonographs, radios, 151.17 and televisions up to a total current value of $4,500 at the 151.18 time of attachment. 151.19 3. A manufactured (mobile) home used as your home. 151.20 4. One motor vehicle currently worth less than $2,000 151.21 after deducting any security interests. 151.22 5. Farm machinery used by someone principally engaged in 151.23 farming, or tools, machines, or office furniture used in your 151.24 business or trade. This exemption is limited to $5,000. 151.25 6. Relief based on need. This includes Aid to Families151.26 with Dependent Children (AFDC)Minnesota family investment 151.27 program, Emergency Assistance (EA), work first program, 151.28 Supplemental Security Income (SSI), Minnesota Supplemental 151.29 Assistance, and General Assistance. 151.30 7. Social Security benefits. 151.31 8. Reemployment insurance, workers' compensation, or 151.32 veterans' benefits. 151.33 9. An accident disability or retirement pension or annuity. 151.34 10. Life insurance proceeds or the earnings of your minor 151.35 child and any child support paid to you. 151.36 11. Money from a claim for damage or destruction of exempt 152.1 property (such as household goods, farm tools, business 152.2 equipment, a manufactured (mobile) home, or a car). 152.3 Sec. 148. Minnesota Statutes 1998, section 571.72, 152.4 subdivision 8, is amended to read: 152.5 Subd. 8. [EXEMPTION NOTICE.] In every garnishment where 152.6 the debtor is a natural person, the debtor shall be provided 152.7 with a garnishment exemption notice. If the creditor is 152.8 garnishing earnings, the earnings exemption notice provided in 152.9 section 571.924 must be served ten or more days before the 152.10 service of the first garnishment summons. If the creditor is 152.11 garnishing funds in a financial institution, the exemption 152.12 notice provided in section 571.912 must be served with the 152.13 garnishment summons. In all other cases, the exemption notice 152.14 must be in the following form and served on the debtor with a 152.15 copy of the garnishment summons. 152.16 152.17 STATE OF MINNESOTA DISTRICT COURT 152.18 COUNTY OF .................. ............JUDICIAL DISTRICT 152.19 .................(Creditor) 152.20 against 152.21 .................(Debtor) EXEMPTION NOTICE 152.22 and 152.23 .................(Garnishee) 152.24 A Garnishment Summons is being served upon you. Some of 152.25 your property may be exempt and cannot be garnished. The 152.26 following is a list of some of the more common exemptions. It 152.27 is not complete and is subject to section 550.37 of the 152.28 Minnesota Statutes and other state and federal laws. The dollar 152.29 amounts contained in this list are subject to the provisions of 152.30 section 550.37, subdivision 4a, at the time of garnishment. If 152.31 you have questions about an exemption, you should obtain legal 152.32 advice. 152.33 (1) a homestead or the proceeds from the sale of a 152.34 homestead; 152.35 (2) household furniture, appliances, phonographs, radios, 152.36 and televisions up to a total current value of $5,850; 153.1 (3) a manufactured (mobile) home used as your home; 153.2 (4) one motor vehicle currently worth less than $2,600 153.3 after deducting any security interest; 153.4 (5) farm machinery used by an individual principally 153.5 engaged in farming, or tools, machines, or office furniture used 153.6 in your business or trade. This exemption is limited to 153.7 $13,000; 153.8 (6) relief based on need. This includes: 153.9 (i) Aid to Families with Dependent Children153.10 (AFDC)Minnesota family investment program (MFIP) and work first 153.11 program; 153.12 (ii) AFDC-Emergency Assistance (AFDC-EA);153.13 (iii)Medical Assistance (MA); 153.14 (iv)(iii) General Assistance (GA); 153.15 (v)(iv) General Assistance Medical Care (GAMC); 153.16 (vi)(v) Emergency General Assistance (EGA); 153.17 (vii)(vi) Work Readiness,Minnesota Supplemental AID 153.18 (MSA); 153.19 (viii)(vii) MSA-Emergency Assistance (MSA-EA); 153.20 (ix)(viii) Supplemental Security Income (SSI); and153.21 (x)(ix) Energy Assistance; and 153.22 (x) Emergency Assistance (EA); 153.23 (7) social security benefits; 153.24 (8) reemployment insurance, workers' compensation, or 153.25 veteran's benefits; 153.26 (9) an accident, disability, or retirement pension or 153.27 annuity; 153.28 (10) life insurance proceeds; 153.29 (11) earnings of your minor child; and 153.30 (12) money from a claim for damage or destruction of exempt 153.31 property (such as household goods, farm tools, business 153.32 equipment, a manufactured (mobile) home, or a car). 153.33 Sec. 149. Minnesota Statutes 1998, section 571.912, is 153.34 amended to read: 153.35 571.912 [FORM OF EXEMPTION NOTICE.] 153.36 The notice informing a debtor that an order for attachment, 154.1 garnishment summons, or levy by execution has been used to 154.2 attach funds of the debtor to satisfy a claim must be 154.3 substantially in the following form: 154.4 STATE OF MINNESOTA DISTRICT COURT 154.5 COUNTY OF ................ ........JUDICIAL DISTRICT 154.6 ........................(Creditor) 154.7 ........................(Debtor) 154.8 TO: Debtor EXEMPTION NOTICE 154.9 An order for attachment, garnishment summons, or levy of 154.10 execution (strike inapplicable language) has been served on 154.11 ............ (bank or other financial institution) 154.12 ............... where you have an account. 154.13 Your account balance is $............. 154.14 The amount being held is $............ 154.15 However, all or a portion of the funds in your account will 154.16 normally be exempt from creditors' claims if they are in one of 154.17 the following categories: 154.18 (1) relief based on need. This includes : Aid to Families154.19 with Dependent Children (AFDC), AFDC-Emergency Assistance154.20 (AFDC-EA)the Minnesota family investment program (MFIP), 154.21 Emergency Assistance (EA), work first program, Medical 154.22 Assistance (MA), General Assistance (GA), General Assistance 154.23 Medical Care (GAMC), Emergency General Assistance (EGA), Work154.24 Readiness,Minnesota Supplemental Aid (MSA), MSA Emergency 154.25 Assistance (MSA-EA), Supplemental Security Income (SSI), and 154.26 Energy Assistance; 154.27 (2) Social Security benefits (Old Age, Survivors, or 154.28 Disability Insurance); 154.29 (3) reemployment insurance, workers' compensation, or 154.30 veterans' benefits; 154.31 (4) an accident, disability, or retirement pension or 154.32 annuity; 154.33 (5) life insurance proceeds; 154.34 (6) the earnings of your minor child and any child support 154.35 paid to you; or 154.36 (7) money from a claim for damage or destruction of exempt 155.1 property (such as household goods, farm tools, business 155.2 equipment, a mobile home, or a car). 155.3 The following funds are also exempt: 155.4 (8) all earnings of a person in category (1); 155.5 (9) all earnings of a person who has received relief based 155.6 on need, or who has been an inmate of a correctional 155.7 institution, within the last six months; 155.8 (10) 75 percent of every debtor's after tax earnings; and 155.9 (11) all of a debtor's after tax earnings below 40 times 155.10 the federal minimum wage. 155.11 TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK: 155.12 Categories (10) and (11): 20 days 155.13 Categories (8) and (9): 60 days 155.14 All others: no time limit, as long as funds are traceable 155.15 to the exempt source. (In tracing funds, the first-in, 155.16 first-out method is used. This means money deposited first is 155.17 spent first.) The money being sought by the creditor is being 155.18 held in your account to give you a chance to claim an exemption. 155.19 TO CLAIM AN EXEMPTION: 155.20 Fill out, sign, and mail or deliver one copy of the 155.21 attached exemption claim form to the institution which sent you 155.22 this notice and mail or deliver one copy to the creditor's 155.23 attorney. In the event that there is no attorney for the 155.24 creditor, then such notice shall be sent directly to the 155.25 creditor. The address for the creditor's attorney or the 155.26 creditor is set forth below. Both copies must be mailed or 155.27 delivered on the same day. 155.28 If they do not get the exemption claim back from you within 155.29 14 days of the date they mailed or gave it to you, they will be 155.30 free to turn the money over to the sheriff or the creditor. If 155.31 you are going to claim an exemption, do so as soon as possible, 155.32 because your money may be held until it is decided. 155.33 IF YOU CLAIM AN EXEMPTION: 155.34 (1) nonexempt money can be turned over to the creditor or 155.35 sheriff; 155.36 (2) the financial institution will keep holding the money 156.1 claimed to be exempt; and 156.2 (3) seven days after receiving your exemption claim, the 156.3 financial institution will release the money to you unless 156.4 before then it receives an objection to your exemption claim. 156.5 IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 156.6 The institution will hold the money until a court decides 156.7 if your exemption claim is valid, BUT ONLY IF the institution 156.8 gets a copy of your court motion papers asserting the exemption 156.9 WITHIN TEN DAYS after the objection is mailed or given to you. 156.10 You may wish to consult an attorney at once if the creditor 156.11 objects to your exemption claim. 156.12 MOTION TO DETERMINE EXEMPTION: 156.13 At any time after your funds have been held, you may ask 156.14 for a court decision on the validity of your exemption claim by 156.15 filing a request for hearing which may be obtained at the office 156.16 of the court administrator of the above court. 156.17 PENALTIES: 156.18 If you claim an exemption in bad faith, or if the creditor 156.19 wrongly objects to an exemption in bad faith, the court may 156.20 order the person who acted in bad faith to pay costs, actual 156.21 damages, attorney fees, and an additional amount of up to $100. 156.22 ............................. 156.23 ............................. 156.24 ............................. 156.25 ............................. 156.26 Name and address of (Attorney 156.27 for) Judgment Creditor 156.28 EXEMPTION: 156.29 (If you claim an exemption complete the following): 156.30 (a) Amount of exemption claim. 156.31 / / I claim ALL the funds being held are exempt. 156.32 / / I claim SOME of the funds being held are exempt. 156.33 The exempt amount is $............ 156.34 (b) Basis for exemption. 156.35 Of the eleven categories listed above, I am in category 156.36 number ............ (If more than one category applies, you may 157.1 fill in as many as apply.) The source of the exempt funds is 157.2 the following: 157.3 ............................................................. 157.4 ............................................................. 157.5 ............................................................. 157.6 (If the source is a type of relief based on need, list the 157.7 case number and county: 157.8 case number: ...............; 157.9 county: ....................) 157.10 I hereby authorize any agency that has distributed relief 157.11 to me or any correctional institution in which I was an inmate 157.12 to disclose to the above named creditor or its attorney only 157.13 whether or not I am or have been a recipient of relief based on 157.14 need or an inmate of a correctional institute within the last 157.15 six months. 157.16 I have mailed or delivered a copy of the exemption notice 157.17 to the creditor's attorney. 157.18 DATED: ............. ............................. 157.19 DEBTOR 157.20 ............................. 157.21 DEBTOR ADDRESS 157.22 Sec. 150. Minnesota Statutes 1998, section 571.925, is 157.23 amended to read: 157.24 571.925 [FORM OF NOTICE.] 157.25 The ten-day notice informing a debtor that a garnishment 157.26 summons may be used to garnish the earnings of an individual 157.27 must be substantially in the following form: 157.28 STATE OF MINNESOTA DISTRICT COURT 157.29 COUNTY OF ............. ........... JUDICIAL DISTRICT 157.30 ....................(Creditor) 157.31 against 157.32 GARNISHMENT EXEMPTION 157.33 ....................(Debtor) NOTICE AND NOTICE OF 157.34 and INTENT TO GARNISH EARNINGS 157.35 WITHIN TEN DAYS 157.36 ....................(Garnishee) 158.1 PLEASE TAKE NOTICE that a garnishment summons or levy may 158.2 be served upon your employer or other third parties, without any 158.3 further court proceedings or notice to you, ten days or more 158.4 from the date hereof. Some or all of your earnings are exempt 158.5 from garnishment. If your earnings are garnished, your employer 158.6 must show you how the amount that is garnished from your 158.7 earnings was calculated. You have the right to request a 158.8 hearing if you claim the garnishment is incorrect. 158.9 Your earnings are completely exempt from garnishment if you 158.10 are now a recipient of relief based on need, if you have been a 158.11 recipient of relief within the last six months, or if you have 158.12 been an inmate of a correctional institution in the last six 158.13 months. 158.14 Relief based on need includes Aid to Families with158.15 Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA)158.16 the Minnesota family investment program (MFIP), Emergency 158.17 Assistance (EA), work first program, Medical Assistance (MA), 158.18 General Assistance (GA), General Assistance Medical Care (GAMC), 158.19 Emergency General Assistance (EGA), Work Readiness,Minnesota 158.20 Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA), 158.21 Supplemental Security Income (SSI), and Energy Assistance. 158.22 If you wish to claim an exemption, you should fill out the 158.23 appropriate form below, sign it, and send it to the creditor's 158.24 attorney and the garnishee. 158.25 You may wish to contact the attorney for the creditor in 158.26 order to arrange for a settlement of the debt or contact an 158.27 attorney to advise you about exemptions or other rights. 158.28 PENALTIES 158.29 (1) Be advised that even if you claim an exemption, a 158.30 garnishment summons may still be served on your employer. 158.31 If your earnings are garnished after you claim an 158.32 exemption, you may petition the court for a determination 158.33 of your exemption. If the court finds that the creditor 158.34 disregarded your claim of exemption in bad faith, you will 158.35 be entitled to costs, reasonable attorney fees, actual 158.36 damages, and an amount not to exceed $100. 159.1 (2) HOWEVER, BE WARNED if you claim an exemption, the 159.2 creditor can also petition the court for a determination of 159.3 your exemption, and if the court finds that you claimed an 159.4 exemption in bad faith, you will be assessed costs and 159.5 reasonable attorney's fees plus an amount not to exceed 159.6 $100. 159.7 (3) If after receipt of this notice, you in bad faith take 159.8 action to frustrate the garnishment, thus requiring the 159.9 creditor to petition the court to resolve the problem, you 159.10 will be liable to the creditor for costs and reasonable 159.11 attorney's fees plus an amount not to exceed $100. 159.12 DATED: ............ ........................ 159.13 (Attorney for) Creditor 159.14 ........................ 159.15 Address 159.16 ........................ 159.17 Telephone 159.18 DEBTOR'S EXEMPTION CLAIM NOTICE 159.19 I hereby claim that my earnings are exempt from garnishment 159.20 because: 159.21 (1) I am presently a recipient of relief based on need. 159.22 (Specify the program, case number, and the county from 159.23 which relief is being received.) 159.24 ................ ...................... ............... 159.25 Program Case Number (if known) County 159.26 (2) I am not now receiving relief based on need, but I have 159.27 received relief based on need within the last six months. 159.28 (Specify the program, case number, and the county from 159.29 which relief has been received.) 159.30 ................ ...................... ............... 159.31 Program Case Number (if known) County 159.32 (3) I have been an inmate of a correctional institution 159.33 within the last six months. (Specify the correctional 159.34 institution and location.) 159.35 ........................... .......................... 159.36 Correctional Institution Location 160.1 I hereby authorize any agency that has distributed relief 160.2 to me or any correctional institution in which I was an inmate 160.3 to disclose to the above-named creditor or the creditor's 160.4 attorney only whether or not I am or have been a recipient of 160.5 relief based on need or an inmate of a correctional institution 160.6 within the last six months. I have mailed or delivered a copy 160.7 of this form to the creditor or creditor's attorney. 160.8 ........................... ......................... 160.9 Date Debtor 160.10 ......................... 160.11 Address 160.12 Sec. 151. Minnesota Statutes 1998, section 571.931, 160.13 subdivision 6, is amended to read: 160.14 Subd. 6. [NOTICE.] The debtor shall be served with a copy 160.15 of the prejudgment garnishment order issued pursuant to this 160.16 section together with a copy of all pleadings and other 160.17 documents not previously served, including any affidavits upon 160.18 which the claimant intends to rely at the subsequent hearing and 160.19 a transcript of any oral testimony given at the prejudgment 160.20 garnishment hearing upon which the creditor intends to rely and 160.21 a notice of hearing. Service must be in the manner prescribed 160.22 for personal service of a summons unless that service is 160.23 impracticable or would be ineffective and the court prescribes 160.24 an alternative method of service calculated to provide actual 160.25 notice to the debtor. 160.26 The notice of hearing served upon the debtor must be signed 160.27 by the creditor or the attorney for the creditor and must be 160.28 accompanied by an exemption notice. The notice of hearing must 160.29 be accompanied by an exemption notice, and both notices must 160.30 provide, at a minimum, the following information in 160.31 substantially the following language: 160.32 NOTICE OF HEARING 160.33 TO: (the debtor) 160.34 The (insert the name of court) Court has ordered the 160.35 prejudgment garnishment of some of your property in the 160.36 possession or control of a third party. Some of your property 161.1 may be exempt from seizure. See the exemption notice below. 161.2 The Court issued this Order based upon the claim of (insert 161.3 name of creditor) that (insert name of creditor) is entitled to 161.4 a court order for garnishment of your property to secure your 161.5 payment of any money judgment that (insert name of creditor) may 161.6 later be obtained against you and that immediate action was 161.7 necessary. 161.8 You have the legal right to challenge (insert name of 161.9 creditor) claims at a court hearing before a judge. The hearing 161.10 will be held at the (insert place) on (insert date) at (insert 161.11 time). You may attend the court hearing alone or with an 161.12 attorney. After you have presented your side of the matter, the 161.13 court will decide what should be done with your property until 161.14 the lawsuit against you is finally decided. 161.15 IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER 161.16 GARNISHMENT OF YOUR PROPERTY. 161.17 EXEMPTION NOTICE 161.18 Some of your property may be exempt and cannot be garnished. 161.19 The following is a list of some of the more common exemptions. 161.20 It is not complete and is subject to section 550.37, and other 161.21 state and federal laws. If you have questions about an 161.22 exemption, you should obtain competent legal advice. 161.23 (1) A homestead or the proceeds from the sale of a 161.24 homestead. 161.25 (2) Household furniture, appliances, phonographs, radios, 161.26 and televisions up to a total current value of $4,500 at the 161.27 time of attachment. 161.28 (3) A manufactured (mobile) home used as your home. 161.29 (4) One motor vehicle currently worth less than $2,000 161.30 after deducting any security interests. 161.31 (5) Farm machinery used by someone principally engaged in 161.32 farming, or tools, machines, or office furniture used in your 161.33 business or trade. This exemption is limited to $10,000. 161.34 (6) Relief based on need. This includes : Aid to Families161.35 with Dependent Children (AFDC), AFDC-Emergency Assistance161.36 (AFDC-EA)the Minnesota family investment program (MFIP), 162.1 Emergency Assistance (EA), work first program, Medical 162.2 Assistance (MA), General Assistance (GA), General Assistance 162.3 Medical Care (GAMC), Emergency General Assistance (EGA), Work162.4 Readiness,Minnesota Supplemental Aid (MSA), MSA Emergency 162.5 Assistance (MSA-EA), Supplemental Security Income (SSI), and 162.6 Energy Assistance. 162.7 (7) Social Security benefits. 162.8 (8) Reemployment insurance, workers' compensation, or 162.9 veterans' benefits. 162.10 (9) An accident, disability or retirement pension or 162.11 annuity. 162.12 (10) Life insurance proceeds. 162.13 (11) The earnings of your minor child. 162.14 (12) Money from a claim for damage or destruction of exempt 162.15 property (such as household goods, farm tools, business 162.16 equipment, a manufactured (mobile) home, or a car). 162.17 Sec. 152. Minnesota Statutes 1998, section 571.932, 162.18 subdivision 2, is amended to read: 162.19 Subd. 2. [SERVICE.] The creditor's motion to obtain an 162.20 order of garnishment together with the creditor's affidavit and 162.21 notice of hearing must be served in the manner prescribed for 162.22 service of a summons in a civil action in district court unless 162.23 that service is impracticable or would be ineffective and the 162.24 court prescribes an alternative method of service calculated to 162.25 provide actual notice to the debtor. If the debtor has already 162.26 appeared in the action, the motion must be served in the manner 162.27 prescribed for service of pleadings subsequent to the summons. 162.28 The date of the hearing must be fixed in accordance with Rule 6 162.29 of the Minnesota Rules of Civil Procedure for the District 162.30 Courts, unless a different date is fixed by order of the court. 162.31 The notice of hearing served upon the debtor shall be 162.32 signed by the creditor or the attorney for the creditor and 162.33 shall provide, at a minimum, the following information in 162.34 substantially the following language: 162.35 NOTICE OF HEARING 162.36 TO: (the debtor) 163.1 A hearing will be held (insert place) on (insert date) at 163.2 (insert time) to determine whether nonexempt property belonging 163.3 to you will be garnished to secure a judgment that may be 163.4 entered against you. 163.5 You may attend the court hearing alone or with an attorney. 163.6 After you have presented your side of the matter, the court will 163.7 decide whether your property should be garnished until the 163.8 lawsuit which has been commenced against you is finally decided. 163.9 If the court directs the issuance of a garnishment summons 163.10 while the lawsuit is pending, you may still keep the property 163.11 until the lawsuit is decided if you file a bond in an amount set 163.12 by the court. 163.13 IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER YOUR 163.14 NONEXEMPT PROPERTY TO BE GARNISHED. 163.15 EXEMPTION NOTICE 163.16 Some of your property may be exempt and cannot be garnished. 163.17 The following is a list of some of the more common exemptions. 163.18 It is not complete and is subject to section 550.37, and other 163.19 state and federal laws. The dollar amounts contained in this 163.20 list are subject to the provisions of section 550.37, 163.21 subdivision 4a, at the time of the garnishment. If you have 163.22 questions about an exemption, you should obtain competent legal 163.23 advice. 163.24 (1) A homestead or the proceeds from the sale of a 163.25 homestead. 163.26 (2) Household furniture, appliances, phonographs, radios, 163.27 and televisions up to a total current value of $5,850. 163.28 (3) A manufactured (mobile) home used as your home. 163.29 (4) One motor vehicle currently worth less than $2,600 163.30 after deducting any security interests. 163.31 (5) Farm machinery used by an individual principally 163.32 engaged in farming, or tools, machines, or office furniture used 163.33 in your business or trade. This exemption is limited to $13,000. 163.34 (6) Relief based on need. This includes : Aid to Families163.35 with Dependent Children (AFDC), AFDC-Emergency Assistance163.36 (AFDC-EA)the Minnesota family investment program (MFIP), 164.1 Emergency Assistance (EA), work first program, Medical 164.2 Assistance (MA), General Assistance (GA), General Assistance 164.3 Medical Care (GAMC), Emergency General Assistance (EGA), Work164.4 Readiness,Minnesota Supplemental Aid (MSA), MSA Emergency 164.5 Assistance (MSA-EA), Supplemental Security Income (SSI), and 164.6 Energy Assistance. 164.7 (7) Social Security benefits. 164.8 (8) Reemployment insurance, workers' compensation, or 164.9 veterans' benefits. 164.10 (9) An accident, disability or retirement pension or 164.11 annuity. 164.12 (10) Life insurance proceeds. 164.13 (11) The earnings of your minor child. 164.14 (12) Money from a claim for damage or destruction of exempt 164.15 property (such as household goods, farm tools, business 164.16 equipment, a manufactured (mobile) home, or a car). 164.17 Sec. 153. Minnesota Statutes 1998, section 583.22, 164.18 subdivision 7b, is amended to read: 164.19 Subd. 7b. [NECESSARY LIVING EXPENSES.] As used in section 164.20 583.27, "necessary living expenses" means a sum approximately 164.21 equal to 1-1/2 times the amount to which the family would be 164.22 entitled if eligible for payments under section 256.74chapter 164.23 256J, unless limited by section 583.27, subdivision 1, paragraph 164.24 (b). 164.25 Sec. 154. [REPEALER.] 164.26 (a) Minnesota Statutes 1998, sections 119B.01, subdivision 164.27 12a; 119B.05, subdivision 6; 126C.05, subdivision 4; 126C.06; 164.28 256.031, subdivision 1a; 256.736; 256.74, subdivision 1c; 164.29 256.9850; 256J.62, subdivision 5; 268.871, subdivision 5; and 164.30 290A.22, are repealed. 164.31 (b) Minnesota Rules, parts 9500.2000; 9500.2020; 9500.2060; 164.32 9500.2100; 9500.2140; 9500.2180; 9500.2220; 9500.2260; 164.33 9500.2300; 9500.2340; 9500.2380; 9500.2420; 9500.2440; 164.34 9500.2480; 9500.2500; 9500.2520; 9500.2560; 9500.2580; 164.35 9500.2600; 9500.2620; 9500.2640; 9500.2680; 9500.2700; 164.36 9500.2720; 9500.2722; 9500.2724; 9500.2726; 9500.2728; 165.1 9500.2730; 9500.2740; 9500.2760; 9500.2780; 9500.2800; 165.2 9500.2820; 9500.2860; and 9500.2880, are repealed.