Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 252-S.F.No. 916 
           An act relating to human services; authorizing the 
          commissioner to establish a state advisory planning 
          council; requiring counties to contract with nonprofit 
          organizations; changing set aside project amounts; 
          revising procedures and requirements under the aid to 
          families with dependent children, medical assistance, 
          and general assistance programs; appropriating money; 
          amending Minnesota Statutes 1984, sections 245.70, 
          subdivision 1; 245.71; 245.711, subdivision 2; 
          245.713, subdivision 2; 256.12, subdivision 20; 
          256.73, subdivisions 2, 3a, and 6; 256.736, 
          subdivisions 3 and 4; 256.74, subdivisions 1, 1a, and 
          2; 256.76, subdivision 1; 256.78; 256.79; 256.871, 
          subdivision 3; 256.99; 256B.02, subdivisions 2 and 3; 
          256B.06, subdivision 1; 256B.07; 256B.17, subdivision 
          6; 256D.01, subdivision 1a; and 256D.06, by adding a 
          subdivision. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 245.70, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MENTALLY RETARDED AND MENTALLY ILL.] The 
commissioner of human services is designated the state agency to 
establish and administer a state-wide plan for the construction, 
equipment, maintenance, and operation of any facilities for the 
care, treatment, diagnosis, or rehabilitation, of the mentally 
retarded or mentally ill which are or may be required as a 
condition for eligibility for benefits under any federal law and 
in particular under the Federal Mental Retardation Facilities 
and Community Mental Health Centers Construction Act of 1963 
(P.L. 88-164) Alcohol, Drug Abuse and Mental Health Block Grant 
Law, United States Code, title 42, sections 300X to 300X-9.  The 
commissioner of human services is authorized and directed to 
receive, administer, and expend any funds that may be available 
under any federal law or from any other source, public or 
private, for such purposes. 
     Sec. 2.  Minnesota Statutes 1984, section 245.71, is 
amended to read: 
    245.71 [CONDITIONS TO FEDERAL AID FOR MENTALLY ILL AND 
MENTALLY RETARDED.] 
    Subdivision 1.  The commissioner of human services is 
authorized and empowered to may comply with all conditions and 
requirements necessary to receive federal aid or block grants 
with respect to the establishment, construction, maintenance, 
equipment or operation, for all the people of this state, of 
adequate facilities and services as specified in section 245.70, 
including the authority: 
    (a) To designate or establish a state advisory council, 
with representation as required as a condition of eligibility 
for benefits under any federal law, to consult with him in 
carrying out the purposes of this act; 
    (b) To provide an inventory of existing facilities or a 
particular category thereof, and to survey the need for 
additional facilities; 
    (c) To develop and administer a construction program or 
programs which, in conjunction with existing facilities will 
afford adequate facilities to serve the people of this state; 
    (d) To provide for priority of projects or facilities; 
    (e) To provide to applicants an opportunity for a hearing 
before him; 
    (f) To prescribe and require compliance with such standards 
of maintenance and operation applicable to such facilities as 
are reasonably necessary to protect the public health, welfare, 
and safety; 
    (g) To promulgate emergency and permanent rules prescribing 
methods of administration, reporting, financial and program 
audits, and any other requirements of federal law which are 
necessary conditions of qualifying for available federal funds. 
     Subd. 2.  The commissioner may establish a state mental 
health services planning council to advise on matters relating 
to coordination of mental health services among state agencies, 
the unmet needs for services, including services for minorities 
or other underserved groups, and the allocation and adequacy of 
mental health services within the state.  The commissioner may 
establish special committees within the planning council 
authority to address the needs of special population groups. 
Members of a state advisory planning council must be broadly 
representative of other state agencies involved with mental 
health, service providers, advocates, consumers, local elected 
officials, age groups, underserved and minority groups, and 
geographic areas of the state.  
    Sec. 3.  Minnesota Statutes 1984, section 245.711, 
subdivision 2, is amended to read:  
    Subd. 2.  [GRANTS BY COUNTIES.] The county boards may make 
grants for comprehensive programs for prevention, care, and 
treatment of mentally ill individuals.  Grants utilizing money 
under section 245.713 may be made for the cost of these 
comprehensive programs and services whether provided directly by 
county boards, by individuals pursuant to contract, or by other 
public and private not for profit agencies and organizations, 
both profit and nonprofit.  When only state and county money is 
involved, county boards may make comprehensive program grants to 
profit or not for profit agencies and organizations.  Nothing in 
this section shall prevent the commissioner from entering into 
contracts with, and making grants to, other state agencies for 
the purpose of providing specific services and programs.  With 
approval of the county board, the commissioner may make grants 
or contracts for research or demonstration projects specific to 
needs within that county.  
    Sec. 4.  Minnesota Statutes 1984, section 245.713, 
subdivision 2, is amended to read: 
    Subd. 2.  [TOTAL FUNDS AVAILABLE; REDUCTIONS.] The amount 
of funds available for allocation to counties for use by 
qualified community mental health centers shall be the total 
amount of funds granted to the state by the federal government 
under United States Code, Title 42, Sections 300X to 300X-9 each 
federal fiscal year for mental health services reduced by the 
sum of the following:  
    (a) Any amount set aside by the commissioner of human 
services for Indian tribal organizations within the state, which 
funds shall not duplicate any direct federal funding of Indian 
tribal organizations and which funds shall not exceed five 12 
percent of the total block grant allocation to the state for 
mental health services; and, money from this source may be used 
for special committees to advise the commissioner on mental 
health programs and services for American Indians and other 
minorities or underserved groups; and, 
    (b) Any amount calculated into the base of the block grant 
that is made available by the commissioner for qualified 
community mental health centers that were receiving grants for 
operations or other continuing grant obligations defined in 
United States Code, Title 42, Sections 300X to 300X-9 
immediately prior to its enactment; and,.  
    (c) An amount not to exceed ten percent of the total 
allocation for mental health services to be retained by the 
commissioner for administration; and.  
    (d) Any amount permitted under federal law which the 
commissioner approves for demonstration or research projects for 
severely disturbed children and adolescents, the underserved, 
special populations or multiply disabled mentally ill persons. 
The groups to be served, the extent and nature of services to be 
provided, the amount and duration of any grant awards are to be 
based on criteria set forth in the Alcohol, Drug Abuse and 
Mental Health Block Grant Law, United States Code, title 42, 
sections 300X to 300X-9, and on state policies and procedures 
determined necessary by the commissioner.  Grant recipients must 
comply with applicable state and federal requirements and 
demonstrate fiscal and program management capabilities that will 
result in provision of quality, cost-effective services.  
    (e) The amount required under federal law, for federally 
mandated expenditures. 
    Sec. 5.  Minnesota Statutes 1984, section 256.12, 
subdivision 20, is amended to read: 
    Subd. 20.  [ASSISTANCE UNIT.] "Assistance unit" means the 
group of individuals who are applying for or receiving 
assistance and whose needs or income, or both, are taken into 
account included in determining eligibility for or the amount of 
a grant of assistance as determined under sections 256.72 to 
256.87.  
    Sec. 6.  Minnesota Statutes 1984, section 256.73, 
subdivision 2, is amended to read: 
    Subd. 2.  [ALLOWANCE BARRED BY OWNERSHIP OF PROPERTY.] 
Ownership by the father, mother, child, children, or any 
combination, an assistance unit of property as follows is a bar 
to any allowance under sections 256.72 to 256.87: 
    (1) The value of real property other than the homestead, 
which when combined with other assets exceeds the limits of 
paragraph (2), unless the assistance unit is making a good faith 
effort to sell the nonexcludable real property.  The time period 
for disposal must not exceed nine months and the assistance unit 
shall execute an agreement to dispose of the property to repay 
assistance received during the nine months up to the amount of 
the net sale proceeds.  The payment must be made when the 
property is sold.  If the property is not sold within the 
required time or the assistance unit becomes ineligible for any 
reason the entire amount received during the nine months is an 
overpayment and subject to recovery.  For the purposes of this 
section "homestead" means the house owned and occupied by the 
child, relative or other member of the assistance unit as his 
dwelling place, together with the land upon which it is situated 
and in an area no greater than two contiguous lots in a platted 
or laid out city or town or 80 contiguous acres in unplatted 
land rural areas; or 
    (2) Personal property of an equity value in excess of 
$1,000 for the entire assistance unit, exclusive of personal 
property used as the home, one motor vehicle of an equity value 
not exceeding $1,500, one burial plot for each member of the 
assistance unit, one prepaid burial contract with an equity 
value of no more than $1,000 for each member of the assistance 
unit, clothing and necessary household furniture and equipment 
and other basic maintenance items essential for daily living, in 
accordance with rules promulgated by and standards established 
by the commissioner of human services. 
    Sec. 7.  Minnesota Statutes 1984, section 256.73, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [PERSONS INELIGIBLE.] No assistance shall be 
given under sections 256.72 to 256.87:  
    (1) On behalf of any person who is receiving supplemental 
security income under title XVI of the social security act 
unless permitted by federal regulations;  
    (2) For any month in which the assistance unit's gross 
income, without application of deductions or disregards, exceeds 
150 185 percent of the standard of need for a family of the same 
size and composition; except that the earnings of a dependent 
child who is a full-time student may be disregarded for six 
calendar months per year and the earnings of a dependent child 
who is a full-time student that are derived from the jobs 
training and partnership act may be disregarded for six calendar 
months per year.  If a stepparent's income is taken into account 
in determining need, the disregards specified in section 256.74, 
subdivision 1a shall be applied to determine income available to 
the assistance unit before calculating the unit's gross income 
for purposes of this paragraph;  
    (3) To any assistance unit for any month in which any 
caretaker relative with whom the child is living is, on the last 
day of that month, participating in a strike;  
    (4) On behalf of any other individual in the assistance 
unit, nor shall the individual's needs be taken into account, 
for any month in which, on the last day of the month, the 
individual is participating in a strike;  
    (5) To an assistance unit if its eligibility is based on a 
parent's unemployment and the parent who is the principal 
earner, without good cause, fails or refuses to seek work, to 
participate in the work incentive program under section 256.736, 
if this program is available, to accept employment, or to 
register with a public employment office, unless the principal 
earner is exempt from these work requirements. 
    Sec. 8.  Minnesota Statutes 1984, section 256.73, 
subdivision 6, is amended to read: 
    Subd. 6.  [REPORTS BY RECIPIENT.] Each recipient shall 
complete reports as requested by the local or state agency.  An 
assistance unit with a recent work history or with earned income 
shall report monthly to the local agency on income received and 
other circumstances affecting eligibility or assistance 
amounts.  All other assistance units shall report on income and 
other circumstances affecting eligibility and assistance amounts 
at less frequent intervals, as specified by the state agency.  
All income not specifically disregarded by the social security 
act, the code of federal regulations, or state law, rules and 
regulations, shall be income applicable to the budgetary needs 
of the family.  If any amount of aid to families with dependent 
children assistance is paid to a recipient thereof in excess of 
the payment due it shall be recoverable by the local agency.  
The agency shall give written notice to the recipient of its 
intention to recover the overpayment.  Overpayments to a current 
assistance unit shall be recovered either through repayment by 
the individual in part or in full or by reducing the amount of 
aid payable to the assistance unit of which the individual is a 
member.  For any month in which an overpayment must be 
recovered, recoupment may be made by reducing the grant but only 
if the reduced assistance payment, together with the assistance 
unit's liquid assets and total income after deducting actual 
work expenses equals at least 95 percent of the standard of need 
for the assistance unit, except that if the overpayment is due 
solely to agency error, this total after deducting actual work 
expenses shall equal at least 99 percent of the standard of 
need.  In cases when there is both an overpayment and 
underpayment the local agency shall offset one against the other 
in correcting the payment.  The local agency shall make 
reasonable efforts to recover overpayments made to persons no 
longer on assistance in accordance with standards established by 
the commissioner of human services.  The local agency need not 
attempt to recover overpayments of less than $35 paid to an 
individual no longer on assistance if the individual does not 
receive assistance again within three years, unless the 
individual has been convicted of fraud under section 256.98.  
The recipient may appeal the agency's determination that an 
overpayment has occurred in accordance with section 256.045.  
The county agency shall promptly repay the recipient for any 
underpayment and shall disregard that payment when determining 
the assistance unit's income and resources in the month when the 
payment is made and the following month.  
    Sec. 9.  Minnesota Statutes 1984, section 256.736, 
subdivision 3, is amended to read: 
    Subd. 3.  [OPERATION OF PROGRAM.] To determine who shall be 
designated as an appropriate individual for certification to the 
commissioner of economic security, the commissioner of human 
services shall provide standards for county welfare agencies and 
human services boards consistent with the standards promulgated 
by the secretary of health and human services.  County welfare 
agencies shall certify appropriate individuals to the 
commissioner of economic security and shall require that every 
individual, as a condition of receiving aid to families with 
dependent children, register for employment services, training, 
and employment, unless such individual is: 
     (1) a child who is under age 16, a child age 16 or 17 who 
is attending elementary or secondary school or a secondary level 
vocational or technical school full time, or a full-time student 
age 18 who is attending a secondary school or a secondary level 
vocational or technical program and who is expected to complete 
the school or program before reaching age 19; 
     (2) a person who is ill, incapacitated or of advanced age; 
     (3) a person so remote from a work incentive project that 
his effective participation is precluded; 
     (4) a person whose presence in the home is required because 
of illness or incapacity of another member of the household; 
     (5) a parent or other caretaker relative of a child under 
the age of six who personally provides full-time care for the 
child;  
    (6) a parent or other caretaker if another adult relative 
in the house assistance unit is registered and has not, without 
good cause, failed or refused to participate or accept 
employment; or 
    (7) a parent who is not the principal earner if the parent 
who is the principal earner is not exempt under clauses (1) to 
(6); or 
     (8) a woman in her last trimester of pregnancy. 
    Any individual referred to in clause (5) shall be advised 
of the option to register for employment services, training, and 
employment if the individual so desires, and shall be informed 
of the child care services, if any, which will be available if 
the individual decides to register. 
    If, after planning with a recipient, a decision is made 
that the recipient must register for employment services, 
training, and employment, the county welfare department shall 
give notice in writing to the recipient stating that he or she 
must register with the commissioner of economic security for 
participation in a work incentive program and that the recipient 
has a right to a fair hearing under section 256.045 with respect 
to the appropriateness of the registration. 
    Sec. 10.  Minnesota Statutes 1984, section 256.736, 
subdivision 4, is amended to read: 
    Subd. 4.  [CONDITIONS OF CERTIFICATION.] The commissioner 
of human services shall: 
    (1) Arrange for or provide any relative or child certified 
to the commissioner of economic security pursuant to this 
section with child-care services and other necessary family 
services; 
    (2) Pay ten percent of the cost of programs of training and 
employment established by the commissioner of economic security 
for persons certified hereunder; 
    (3) Provide that in determining a recipient's needs any 
monthly incentive training payment made to the recipient by the 
department of economic security is disregarded and the 
additional expenses attributable to his participation in a 
program are taken into account in grant determination; and 
    (4) Provide that when it has been certified by the 
commissioner of economic security, certification to be binding 
upon the commissioner of human services, that a relative or 
child certified under the work incentive program to the 
commissioner of economic security has been found by the 
commissioner, after a hearing conducted in the manner prescribed 
by section 268.10, subdivision 3, with the right of review in 
accordance with the provisions of section 268.10, subdivision 8, 
to have refused without good cause to participate under a work 
incentive program or to have refused without good cause to 
accept a bona fide offer of public or other employment, the 
county welfare departments shall provide that: 
    (a) If the relative makes the refusal, the relative's needs 
shall not be taken into account in making the grant 
determination, and aid for any dependent child in the family 
will be made in the form of protective or vendor payments, 
except that when protective payments are made, the local agency 
may continue payments to the relative if a protective payee 
cannot reasonably be found. 
    (b) Aid with respect to a dependent child will be denied if 
a child who makes the refusal is the only child receiving aid in 
the family. 
    (c) If there is more than one child receiving aid in the 
family, aid for the child who makes the refusal will be denied 
and his needs will not be taken into account in making the grant 
determination.  If the assistance unit's eligibility is based on 
the nonexempt principal earner's unemployment and the this 
principal earner fails or refuses without good cause to 
participate or to accept employment, the entire assistance unit 
is ineligible for benefits under sections 256.72 to 256.87.  
    Sec. 11.  Minnesota Statutes 1984, section 256.74, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AMOUNT.] The amount of assistance which 
shall be granted to or on behalf of any dependent child and 
mother or other needy eligible relative caring for the dependent 
child shall be determined by the county agency in accordance 
with rules promulgated by the commissioner and shall be 
sufficient, when added to all other income and support available 
to the child, to provide the child with a reasonable subsistence 
compatible with decency and health.  The amount shall be based 
on the method of budgeting required in Public Law No. 97-35, 
Section 2315, 42 U.S.C. 602, as amended and federal regulations 
at 45 C.F.R. Section 233.  Nonrecurring lump sum income received 
by an assistance unit must be budgeted in the normal 
retrospective cycle.  The number of months of ineligibility is 
determined by dividing the amount of the lump sum income and all 
other income, after application of the applicable disregards, by 
the standard of need for the assistance unit.  An amount 
remaining after this calculation is income in the first month of 
eligibility.  If the total monthly income including the lump sum 
income is larger than the standard of need for a single month 
the first month of ineligibility is the payment month that 
corresponds with the budget month in which the lump sum income 
was received.  In making its determination the county agency 
shall disregard the following from family income: 
    (1) All of the earned income of each dependent child 
receiving aid to families with dependent children who is a 
full-time student or part-time student, and not a full-time 
employee, attending a school, college, or university, or a 
course of vocational or technical training designed to fit him 
for gainful employment as well as all the earned income derived 
from the job training and partnership act (JTPA) for a dependent 
child for six calendar months per year, together with unearned 
income derived from the job training and partnership act; 
    (2) All educational grants and loans awarded pursuant to a 
federal law when public assistance was considered in making the 
award and the award was made on the basis of financial need; and 
that part of any other educational grant or loan which is used 
for educational purposes, such as tuition, fees, equipment, 
transportation and child care expenses necessary for school 
attendance;  
    (3) The first $75 of each individual's earned income.  In 
the case of an individual not engaged in full-time employment or 
not employed throughout the month the commissioner shall 
prescribe by rule a lesser amount to be disregarded.  For 
self-employed persons, the expenses directly related to 
producing goods and services and without which the goods and 
services could not be produced shall be disregarded pursuant to 
rules promulgated by the commissioner;  
    (4) An amount equal to the actual expenditures but not to 
exceed $160 for the care of each dependent child or 
incapacitated individual living in the same home and receiving 
aid.  In the case of a person not engaged in full-time 
employment or not employed throughout the month, the 
commissioner shall prescribe by rule a lesser amount to be 
disregarded; and 
     (5) Thirty dollars plus one-third of the remainder of each 
individual's earned income not already disregarded for 
individuals found otherwise eligible to receive aid or who have 
received aid in one of the four months before the month of 
application.  With respect to any month, the county welfare 
agency shall not disregard under this clause any earned income 
of any person who has: 
     (a) Reduced his earned income without good cause within 30 
days preceding any month in which an assistance payment is made; 
or 
     (b) Refused without good cause to accept an offer of 
suitable employment; or 
      (c) Left employment or reduced his earnings without good 
cause and applied for assistance so that he might later return 
to employment with the advantage of the income disregard; or 
      (d) Failed without good cause to make a timely report of 
earned income in accordance with rules promulgated by the 
commissioner of human services.  
    Persons who are already employed and who apply for 
assistance shall have their needs computed with full account 
taken of their earned and other income.  If earned and other 
income of the family is less than need, as determined on the 
basis of public assistance standards, the county agency shall 
determine the amount of the grant by applying the disregard of 
income provisions.  The county agency shall not disregard earned 
income for persons in a family if the total monthly earned and 
other income exceeds their needs, unless for any one of the four 
preceding months their needs were met in whole or in part by a 
grant payment.  
    The disregard of $30 and one-third of the remainder of 
earned income described in clause (5) shall be applied to the 
individual's income for a period not to exceed four consecutive 
months.  Any month in which the individual loses this disregard 
because of the provisions of clause (5)(a) to (5)(d) shall be 
considered as one of the four months.  An additional $30 work 
incentive must be available for an eight-month period beginning 
in the month following the last month of the combined $30 and 
one-third work incentive.  This period must be in effect whether 
or not the person has earned income or is eligible for AFDC.  To 
again qualify for this the earned income disregard disregards 
under clause (d), the individual must not be a recipient of aid 
for a period of 12 consecutive months.  If When an 
individual assistance unit becomes ineligible for aid because 
this earned income disregard has been applied to income for four 
consecutive months and will due to the fact that these 
disregards are no longer be applied to income, the local agency 
shall inform the individual of the medical assistance program, 
its standards of eligibility, and the circumstances under which 
the individual would the assistance unit shall be eligible for 
medical assistance. benefits for a 12-month period beginning 
with the first month of AFDC ineligibility;  
    (6) The commissioner shall increase the standard of need 
for persons with earned income in effect on January 1, 1982, by 
35 percent for each assistance unit.  The maximum amount paid to 
an assistance unit shall be no more than 74 percent of the 
increased standard of need.  Whenever the commissioner increases 
the maximum payment amount for all assistance units, the 
commissioner shall increase the maximum standard of need by an 
equal percentage.  
    To determine the amount of assistance to be paid to an 
assistance unit, net income shall be determined in a manner 
consistent with this chapter and applicable federal law.  Net 
earned income shall be subtracted from the increased standard of 
need for an assistance unit of the appropriate size and 
composition to determine the grant amount, except that the grant 
shall not exceed the standard of need in effect on January 1, 
1982 for an assistance unit of the same size and composition. 
Unearned income shall be subtracted from the maximum payment 
amount for an assistance unit of the appropriate size and 
composition to determine the grant amount.  
    Medical assistance eligibility for medically needy persons 
who are eligible for aid to families with dependent children 
shall be determined according to the standard of need in effect 
on January 1, 1982 The first $50 per assistance unit of the 
monthly support obligation collected by the support and recovery 
(IV-D) unit; and 
    (7) Insurance settlements to pay medical bills, to 
compensate a member of an assistance unit for partial or 
permanent loss of function or a body part, or to repair or 
replace insured property. 
    Sec. 12.  Minnesota Statutes 1984, section 256.74, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [STEPPARENT'S INCOME.] In determining income 
available, the county agency shall take into account the 
remaining income of the dependent child's stepparent who lives 
in the same household after disregarding: 
    (1) The first $75 of the stepparent's gross earned income.  
The commissioner shall prescribe by rule lesser amounts to be 
disregarded for stepparents who are not engaged in full-time 
employment or not employed throughout the month; 
    (2) An amount for support of the stepparent and any other 
individuals whom the stepparent claims as dependents for tax 
purposes and who live in the same household but whose needs are 
not considered in determining eligibility for assistance under 
sections 256.72 to 256.87.  The amount equals the standard of 
need for a family with no earned income of the same composition 
as the stepparent and these other individuals; 
    (3) Amounts the stepparent actually paid to individuals not 
living in the same household but whom the stepparent claims as 
dependents for tax purposes; and 
    (4) Alimony or child support, or both, paid by the 
stepparent for individuals not living in the same household. 
    Sec. 13.  Minnesota Statutes 1984, section 256.74, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPLICATION.] Application for assistance under 
sections 256.72 to 256.87 shall be made to the county agency of 
the county in which the dependent child is residing lives.  If 
the child is not residing living within the state at the time of 
application but is eligible for assistance, the application may 
be made to the agency of the county where the child is present 
and forwarded to the agency of the county where the child last 
resided lived.  The application shall be in writing or reduced 
to writing in the manner and upon the form prescribed by the 
state agency and verified by the oath of the applicant or in 
lieu thereof shall contain the following declaration which shall 
be signed by the applicant:  "I declare that this application 
has been examined by me and to the best of my knowledge and 
belief is a true and correct statement of every material 
point".  The application shall be made by the person with whom 
the child will live and contain information as to the age and 
residence of the child and such other information as may be 
required by the rules and regulations of the state agency.  One 
application may be made for several children of the same family 
if they reside live with the same person.  
    Sec. 14.  Minnesota Statutes 1984, section 256.76, 
subdivision 1, is amended to read: 
    Subdivision 1.  Upon the completion of such investigation 
the county agency shall decide whether the child is eligible for 
assistance under the provisions of sections 256.72 to 256.87, 
determine the amount of such assistance, and the date on which 
such assistance shall begin.  Notwithstanding section 393.07, 
the county agency shall not delay approval or issuance of 
assistance pending formal action of the county board of 
commissioners.  The first month's grant shall be based upon that 
portion of the month from the date of application, or from the 
date that the applicant meets all eligibility factors, whichever 
occurs later, provided that on the date that assistance is first 
requested, the local agency shall inquire and determine whether 
the person requesting assistance is in immediate need of food, 
shelter, clothing, or other emergency assistance.  If an 
emergency need is found to exist, the applicant shall be granted 
assistance pursuant to section 256.871 within a reasonable 
period of time.  It shall make a grant of assistance which shall 
be binding upon the county and be complied with by the county 
until such grant is modified or vacated.  If the applicant is 
subsequently found to have been eligible for assistance under 
sections 256.72 to 256.87, assistance rendered under section 
256.871 must be considered as a regular AFDC payment and not a 
payment under section 256.871.  The county agency shall notify 
the applicant of its decision in writing.  Such assistance shall 
be paid monthly to the applicant or to the vendor of medical 
care upon order of the county agency from funds appropriated to 
the county agency for this purpose.  The county agency shall, 
upon the granting of assistance under these sections, file an 
order on the form to be approved by the state agency with the 
auditor of the county and thereafter warrants shall be drawn and 
payments made only in accordance with this order to or for 
recipients of this assistance or in accordance with any 
subsequent order. 
    Sec. 15.  Minnesota Statutes 1984, section 256.78, is 
amended to read: 
    256.78 [ASSISTANCE GRANTS RECONSIDERED.] 
    All assistance granted under sections 256.72 to 256.87 
shall be reconsidered as frequently as may be required by the 
rules of the state agency.  After such further investigation as 
the county agency may deem necessary or the state agency may 
require, the amount of assistance may be changed or assistance 
may be entirely withdrawn if the state or county agency find 
that the child's circumstances have altered sufficiently to 
warrant such action.  The period of ineligibility for AFDC which 
results when an assistance unit receives lump sum income must be 
reduced when:  
     (1) the assistance unit's standard of need increases due to 
changes in state law or due to changes in the size or 
composition of the assistance unit, so that the amount of aid 
the assistance unit would have received would have increased had 
it not become ineligible; 
    (2) the lump sum income, or a portion of it becomes 
unavailable to the assistance unit due to expenditures to avoid 
a life-threatening circumstance, theft, or dissipation which is 
beyond the family's control by a member of the family who is no 
longer part of the assistance unit when the lump sum income is 
not used to meet the needs of members of the assistance unit; or 
    (3) the assistance unit incurs and pays medical expenses 
for care and services specified in section 256B.02, subdivision 
8.  
    The county agency may for cause at any time revoke, modify, 
or suspend any order for assistance previously made.  When 
assistance is thus revoked, modified, or suspended the county 
agency shall at once report to the state agency such decision 
together with supporting evidence required by the rules of the 
state agency.  All such decisions shall be subject to appeal and 
review by the state agency as provided in section 256.045. 
    Sec. 16.  Minnesota Statutes 1984, section 256.79, is 
amended to read: 
    256.79 [REMOVAL TO ANOTHER COUNTY.] 
    Any child qualified for and receiving assistance pursuant 
to the provisions in sections 256.72 to 256.87 in any county in 
this state, who moves or is taken to another county in this 
state shall be entitled to continue to receive assistance from 
the county from which he the child has moved or has been taken 
until he the child shall have resided for two months in the 
county to which he the child has moved.  When he the child has 
resided two months in the county to which he the child has 
moved, or has been taken, the local agency of the county from 
which he the child has moved shall transfer all necessary 
records relating to the child to the county agency of the county 
to which he the child has moved.  Where the child's assistance 
is terminated for 30 days or less before a reapplication is 
made, that assistance must continue to be the financial 
obligation of the county from which the child has moved until 
the two-month residence requirement has been met. 
    Notwithstanding the provisions of section 256.73, 
subdivision 4, the county of financial responsibility shall not 
change because application for assistance is not made prior to 
initial placement, or when living in a battered woman's shelter 
or maternity shelter, or as a result of successive placements in 
one or more counties pursuant to a plan of treatment for health, 
rehabilitation, foster care, child care or training, nor as a 
result of placement in any correctional program.  In the case of 
a child who has no established county of residence prior to 
placement, the county of financial responsibility is the county 
in which the child resides at the time the application is made 
and the applicable eligibility criteria are met. 
    Sec. 17.  Minnesota Statutes 1984, section 256.871, 
subdivision 3, is amended to read: 
    Subd. 3.  [COUNTY OF RESPONSIBILITY.] No state or county 
durational residence is required to qualify for such 
assistance.  The county which shall be financially responsible 
and grant assistance shall be the county wherein the 
child resides lives who is found to be in emergency need.  Such 
county may obtain reimbursement from another county wherein the 
child has residence as provided in section 256.73. 
    Sec. 18.  Minnesota Statutes 1984, section 256.99, is 
amended to read: 
    256.99 [REVERSE MORTGAGE PROCEEDS DISREGARDED.] 
    All reverse mortgage loan proceeds received pursuant to 
section 47.58, including interest or earnings thereon, shall be 
disregarded and shall not be considered available to the 
borrower for purposes of determining initial or continuing 
eligibility for, or amount of, medical assistance, Minnesota 
supplemental assistance, general assistance, general assistance 
medical care, or a federal or state low interest loan or grant.  
This section applies regardless of the time elapsed since the 
loan was made or the disposition of the proceeds. 
    For purposes of medical assistance eligibility provided 
under section 256B.06, proceeds from a reverse mortgage must be 
disregarded as income in the month of receipt but are a resource 
if retained after the month of receipt.  
    Sec. 19.  Minnesota Statutes 1984, section 256B.02, 
subdivision 2, is amended to read: 
    Subd. 2.  "Excluded time" means any period of time an 
applicant spends in a hospital, sanitorium, nursing home, 
boarding home, shelter, halfway house, correctional facility, 
foster home, semi-independent living domicile, residential 
facility offering care, board and lodging facility offering 
24-hour care or supervision of mentally ill, mentally retarded, 
or physically disabled persons, or other institution for the 
hospitalization or care of human beings, as defined in sections 
144.50, 144A.01, or 245.782, subdivision 6. 
    Sec. 20.  Minnesota Statutes 1984, section 256B.02, 
subdivision 3, is amended to read: 
    Subd. 3.  "County of financial responsibility" means:  
    (a) for an applicant who resides in the state and is not in 
a facility described in subdivision 2, the county in which he or 
she resides at the time of application;  
    (b) for an applicant who resides in a facility described in 
subdivision 2, the county in which he or she resided immediately 
before entering the facility; and 
    (c) for an applicant who has not resided in this state for 
any time other than the excluded time, the county in which the 
applicant resides at the time of making application.  For this 
limited purpose, an infant who has resided only in an excluded 
time facility is the responsibility of the county which would 
have been responsible for the infant if eligibility could have 
been established with the birth mother under section 256B.06, 
subdivision 1, clause (9). 
    Notwithstanding clauses (a) to (c), the county of financial 
responsibility for medical assistance recipients is the same 
county as that from which a recipient is receiving a maintenance 
grant or money payment under the program of aid to families with 
dependent children.  There can be a redetermination of the 
county of financial responsibility for former recipients of the 
medical assistance program who have been ineligible for at least 
one month, so long as that redetermination is in accord with the 
provisions of this subdivision.  
    Sec. 21.  Minnesota Statutes 1984, section 256B.06, 
subdivision 1, is amended to read: 
    Subdivision 1.  Medical assistance may be paid for any 
person: 
    (1) Who is a child eligible for or receiving adoption 
assistance payments under Title IV-E of the Social Security Act, 
United States Code, title 42, sections 670 to 676 under 
Minnesota Statutes, section 259.40 or 259.431; or 
    (2) Who is a child eligible for or receiving foster care 
maintenance payments under Title IV-E of the Social Security 
Act, United States Code, title 42, sections 670 to 676; or 
    (3) Who is eligible for or receiving public assistance 
under the aid to families with dependent children program, the 
Minnesota supplemental aid program; or 
    (4) Who is a pregnant woman, as certified in writing by a 
physician or nurse midwife, and who (a) meets the other 
eligibility criteria of this section, and (b) would be 
categorically eligible for assistance under the aid to families 
with dependent children program if the child had been born and 
was living with the woman; or 
    (5) Who is a pregnant woman, as certified in writing by a 
physician or nurse midwife, who meets the other eligibility 
criteria of this section and whose unborn child would be 
eligible as a needy child under clause (9) of this subdivision 
if born and living with the woman; or 
    (6) Who meets the categorical eligibility requirements of 
the supplemental security income program and the other 
eligibility requirements of this section; or 
    (6) (7) Who, except for the amount of income or resources, 
would qualify for supplemental security income for the aged, 
blind and disabled, or aid to families with dependent children, 
and who meets the other eligibility requirements of this 
section; or 
    (7) (8) Who is under 21 years of age and in need of medical 
care that neither he nor his relatives responsible under 
sections 256B.01 to 256B.26 are financially able to provide; or 
    (9) Who is an infant less than one year of age born on or 
after October 1, 1984, whose mother was eligible at the time of 
birth and who remains in the mother's household.  Eligibility 
under this clause is concurrent with the mother's and does not 
depend on the father's income except as the income affects the 
mother's eligibility; or 
    (8) (10) Who is residing in a hospital for treatment of 
mental disease or tuberculosis and is 65 years of age or older 
and without means sufficient to pay the per capita hospital 
charge; and 
    (9) (11) Who resides in Minnesota, or, if absent from the 
state, is deemed to be a resident of Minnesota in accordance 
with the regulations of the state agency; and 
    (10) (12) Who alone, or together with his spouse, does not 
own real property other than the homestead.  For the purposes of 
this section, "homestead" means the house owned and occupied by 
the applicant or recipient as his primary place of residence, 
together with the contiguous land upon which it is situated.  
The homestead shall continue to be excluded for persons residing 
in a long-term care facility if it is used as a primary 
residence by the spouse, minor child, or disabled child of any 
age; or the applicant/recipient is expected to return to the 
home as a principal residence within six calendar months of 
entry to the long-term care facility.  Certification of expected 
return to the homestead shall be documented in writing by the 
attending physician.  Real estate not used as a home may not be 
retained unless it produces net income applicable to the 
family's needs or the family is making a continuing effort to 
sell it at a fair and reasonable price or unless the 
commissioner determines that sale of the real estate would cause 
undue hardship or unless the equity in the real estate when 
combined with the equity in the homestead totals $15,000 or 
less; and 
    (11) (13) Who individually does not own more than $3,000 in 
cash or liquid assets, or if a member of a household with two 
family members (husband and wife, or parent and child), does not 
own more than $6,000 in cash or liquid assets, plus $200 for 
each additional legal dependent.  Cash and liquid assets may 
include a prepaid funeral contract and insurance policies with 
cash surrender value.  The value of the following shall not be 
included: 
    (a) the homestead, and (b) one motor vehicle licensed 
pursuant to chapter 168 and defined as:  (1) passenger 
automobile, (2) station wagon, (3) motorcycle, (4) motorized 
bicycle or (5) truck of the weight found in categories A to E, 
of section 168.013, subdivision 1e; and 
    (12) (14) Who has or anticipates receiving an annual income 
not in excess of the income standards by family size used in the 
aid to families with dependent children program, or who has 
income in excess of these maxima and in the month of 
application, or during the three months prior to the month of 
application, incurs expenses for medical care that total more 
than one-half of the annual excess income in accordance with the 
regulations of the state agency.  In computing income to 
determine eligibility of persons who are not residents of long 
term care facilities, the commissioner shall disregard increases 
in income due solely to increases in federal retiree, 
survivor's, and disability insurance benefits, veterans 
administration benefits, and railroad retirement benefits in the 
percentage amount established in the biennial appropriations law 
unless prohibited by federal law or regulation.  If prohibited, 
the commissioner shall first seek a waiver.  In excess income 
cases, eligibility shall be limited to a period of six months 
beginning with the first of the month in which these medical 
obligations are first incurred; and 
    (13) (15) Who has continuing monthly expenses for medical 
care that are more than the amount of his excess income, 
computed on a monthly basis, in which case eligibility may be 
established before the total income obligation referred to in 
the preceding paragraph is incurred, and medical assistance 
payments may be made to cover the monthly unmet medical need.  
In licensed nursing home and state hospital cases, income over 
and above that required for justified needs, determined pursuant 
to a schedule of contributions established by the commissioner 
of human services, is to be applied to the cost of institutional 
care.  The commissioner of human services may establish a 
schedule of contributions to be made by the spouse of a nursing 
home resident to the cost of care; and 
    (14) (16) Who has applied or agrees to apply all proceeds 
received or receivable by him or his spouse from automobile 
accident coverage and private health care coverage to the costs 
of medical care for himself, his spouse, and children.  The 
state agency may require from any applicant or recipient of 
medical assistance the assignment of any rights accruing under 
private health care coverage.  Any rights or amounts so assigned 
shall be applied against the cost of medical care paid for under 
this chapter.  Any assignment shall not be effective as to 
benefits paid or provided under automobile accident coverage and 
private health care coverage prior to receipt of the assignment 
by the person or organization providing the benefits.  
    Sec. 22.  Minnesota Statutes 1984, section 256B.07, is 
amended to read: 
    256B.07 [EXCEPTIONS IN DETERMINING RESOURCES.] 
    A local agency may, within the scope of regulations set by 
the commissioner of human services, waive the requirement of 
liquidation of excess assets when the liquidation would cause 
undue hardship.  When an undue hardship waiver is granted due to 
excess assets created through a transfer of property under 
section 256B.17, subdivision 1, a cause of action exists against 
the person to whom the assets were transferred for that portion 
of medical assistance granted within 24 months of the transfer, 
or the amount of the uncompensated transfer, whichever is less, 
together with the costs incurred due to the action.  The action 
may be brought by the state or county agency responsible for 
providing medical assistance under section 256B.02, subdivision 
3.  Household goods and furniture in use in the home, wearing 
apparel, and personal property used as a regular abode by the 
applicant or recipient and a lot in a burial plot shall not be 
considered as resources available to meet medical needs. 
    Sec. 23.  Minnesota Statutes 1984, section 256B.17, 
subdivision 6, is amended to read: 
    Subd. 6.  [PROHIBITED TRANSFERS OF EXCLUDED RESOURCES.] Any 
individual who is an inpatient in a skilled nursing facility or 
an intermediate care facility who, at any time during or after 
the 24-month period immediately prior to application for medical 
assistance, disposed of a homestead for less than fair market 
value shall be ineligible for medical assistance in accordance 
with subdivisions 1 to 4.  An individual shall not be ineligible 
for medical assistance if one of the following conditions 
applies to the homestead transfer:  
    (1) a satisfactory showing is made that the individual can 
reasonably be expected to return to the homestead as a permanent 
residence;  
    (2) title to the homestead was transferred to the 
individual's spouse, child who is under age 21, or blind or 
permanently and totally disabled child as defined in the 
supplemental security income program;  
    (3) a satisfactory showing is made that the individual 
intended to dispose of the homestead at fair market value or for 
other valuable consideration; or 
    (4) the local agency determines that grants a waiver of the 
excess resources created by the uncompensated transfer because 
denial of eligibility would cause undue hardship for the 
individual, based on imminent threat to the individual's health 
and well-being. 
    When a waiver is granted, a cause of action exists against 
the person to whom the homestead was transferred for that 
portion of medical assistance granted within 24 months of the 
transfer or the amount of the uncompensated transfer, whichever 
is less, together with the costs incurred due to the action.  
The action may be brought by the state or the county agency 
responsible for providing medical assistance under section 
256B.02, subdivision 3. 
    Sec. 24.  Minnesota Statutes 1984, section 256D.01, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [STANDARDS.] A principal objective in providing 
general assistance is to provide for persons ineligible for 
federal programs who are unable to provide for themselves.  To 
achieve these aims, the commissioner shall establish minimum 
standards of assistance for general assistance.  The minimum 
standard of assistance determines the total amount of the 
general assistance grant without separate standards for shelter, 
utilities, or other needs and shall not be less than the 
combined total of the minimum standards of assistance for 
shelter and basic needs in effect on February 1, 1983.  The 
standards of assistance shall not be lower for a recipient 
sharing a residence with another person unless that person is a 
responsible relative.  
    The standards shall be lowered for recipients who share a 
residence with a responsible relative who also receives general 
assistance or who receives AFDC.  If the responsible relative is 
receiving AFDC then the amount payable to the general assistance 
recipient must not exceed the amount that would be attributable 
to him if he were included in the AFDC grant. 
    For recipients who are not exempt from registration with 
the department of economic security pursuant to section 
256D.111, subdivision 2, clauses (a), (f), (g), and (h), and who 
share a residence with a responsible relative who is not 
eligible for general assistance, the standards shall be lowered, 
subject to these limitations:  
    (a) The general assistance grant shall be in an amount such 
that total household income is equal to the AFDC standard for a 
household of like size and composition, except that the grant 
shall not exceed that paid to a general assistance recipient 
living independently. 
    (b) Benefits received by a responsible relative under the 
supplemental security income program, the social security 
retirement program if the relative was receiving benefits under 
the social security disability program at the time he or she 
became eligible for the social security retirement program or if 
the relative is a person described in section 256D.111, 
subdivision 2, clause (a), (f), or (h), the social security 
disability program, a workers' compensation program, the 
Minnesota supplemental aid program, or on the basis of the 
relative's disability, must not be included in the household 
income calculation.  
    Sec. 25.  Minnesota Statutes 1984, section 256D.06, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [EARNED INCOME SAVINGS ACCOUNT.] In addition to 
the $50 disregard required under subdivision 1, the local agency 
shall disregard an additional earned income up to a maximum of 
$150 per month for persons residing in facilities licensed under 
Minnesota Rules, parts 9520.0500 to 9520.0690, and for whom 
discharge and work are part of a treatment plan.  The additional 
amount disregarded must be placed in a separate savings account 
by the eligible individual, to be used upon discharge from the 
residential facility into the community.  A maximum of $1,000, 
including interest, of the money in the savings account must be 
excluded from the resource limits established by section 
256D.08, subdivision 1, clause (1).  Amounts in that account in 
excess of $1,000 must be applied to the resident's cost of care. 
If excluded money is removed from the savings account by the 
eligible individual at any time before the individual is 
discharged from the facility into the community, the money is 
income to the individual in the month of receipt and a resource 
in subsequent months.  If an eligible individual moves from a 
community facility to an inpatient hospital setting, the 
separate savings account is an excluded asset for up to 18 
months.  During that time, amounts that accumulate in excess of 
the $1,000 savings limit must be applied to the patient's cost 
of care.  If the patient continues to be hospitalized at the 
conclusion of the 18-month period, the entire account must be 
applied to the patient's cost of care. 
    Approved May 29, 1985