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Key: (1) language to be deleted (2) new language

                             CHAPTER 178-H.F.No. 5 
                  An act relating to health and human services; 
                  authorizing welfare reform; childhood immunization; 
                  social services programs; recovery of funds; 
                  requesting federal waivers for programs; employment, 
                  education, and training programs; allocation and use 
                  of funds; coverage of health services; child support; 
                  data collection and disclosure; tax credits; 
                  appropriating money; amending Minnesota Statutes 1994, 
                  sections 13.46, subdivision 2; 256.01, by adding 
                  subdivisions; 256.035, subdivision 6d; 256.73, 
                  subdivision 8, and by adding subdivisions; 256.736, 
                  subdivisions 3a, 4a, 5, 10, 10a, 14, 16, and by adding 
                  a subdivision; 256.737, subdivisions 1a, 2, and by 
                  adding a subdivision; 256.74, by adding a subdivision; 
                  256.81; 256.979, by adding a subdivision; 256.983, 
                  subdivision 1; 256B.0625, subdivision 13; 256D.01, 
                  subdivision 1a; 256D.03, subdivision 4; 256D.05, 
                  subdivisions 1 and 6; 256D.051, subdivisions 1, 1a, 2, 
                  3, 3a, 3b, 6, 6b, 8, 9, 17, and by adding a 
                  subdivision; 256D.052, subdivision 3; and 256D.09, 
                  subdivision 2a, and by adding subdivisions; proposing 
                  coding for new law in Minnesota Statutes, chapters 
                  256; and 256D; repealing Minnesota Statutes 1994, 
                  sections 256.734; 256D.051, subdivisions 10, 13, 14, 
                  and 15; 256D.052, subdivisions 1, 2, and 4; 256D.091; 
                  256D.101; 256D.111; and 256D.113. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                           WELFARE REFORM TASK FORCE
           Section 1.  [LEGISLATIVE TASK FORCE TO GUIDE WELFARE 
        REFORM.] 
           Subdivision 1.  [MEMBERSHIP.] The speaker of the house and 
        the senate majority leader shall appoint at least five members 
        from each body to constitute a legislative task force to guide 
        welfare reform.  At least two of the members appointed from each 
        body shall be from the minority party.  The task force shall be 
        jointly chaired by a member of the senate and a member of the 
        house of representatives.  Members shall be appointed before 
        June 1, 1995, and shall convene as soon as possible during the 
        1995 interim at the call of the chairs. 
           Subd. 2.  [DUTIES.] Members shall examine options for 
        welfare reform in the program of Aid to Families with Dependent 
        Children, with a view to designing an integrated, comprehensive 
        statewide program for presentation to the legislature during the 
        1996 session.  Members shall design a program which encourages 
        family self-sufficiency and promotes work and which is 
        coordinated and integrated with the Minnesota STRIDE program, 
        the MFIP program, the targeted jobs program developed under 
        section 268.905, and any changes enacted by the Congress during 
        the 1995 session.  Members shall also review the temporary 
        county assistance program authorized by Minnesota Statutes, 
        section 256D.23, and make recommendations on that program to the 
        1996 legislature.  
           The departments of human services and economic security 
        shall assist the task force by providing information as 
        requested.  The task force shall seek input from a wide variety 
        of groups, including state agencies, the governor's office, 
        county agencies, advocacy groups including representatives of 
        non-English-speaking constituencies, welfare recipients, and 
        local and national experts.  The task force shall be assisted as 
        necessary by legislative staff. 
           Subd. 3.  [REPORT.] The task force shall present a report 
        containing its recommendations on the temporary county 
        assistance program and its proposal for comprehensive welfare 
        reform, with draft legislation, to the legislature by February 
        1, 1996.  The report shall specify federal waivers needed and 
        set timelines for implementation. 
                                   ARTICLE 2
                                 WELFARE REFORM
           Section 1.  Minnesota Statutes 1994, section 256.01, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [TECHNICAL ASSISTANCE FOR IMMUNIZATION 
        REMINDERS.] The state agency shall provide appropriate technical 
        assistance to county agencies to develop methods to have county 
        financial workers remind and encourage recipients of aid to 
        families with dependent children, the Minnesota family 
        investment plan, medical assistance, family general assistance, 
        or food stamps whose assistance unit includes at least one child 
        under the age of five to have each young child immunized against 
        childhood diseases.  The state agency must examine the 
        feasibility of utilizing the capacity of a statewide computer 
        system to assist county agency financial workers in performing 
        this function at appropriate intervals. 
           Sec. 2.  Minnesota Statutes 1994, section 256.01, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [PILOT PROJECT; PROTOCOLS FOR PERSONS LACKING 
        PROFICIENCY IN ENGLISH.] The commissioner of human services 
        shall establish pilot projects in Hennepin and Ramsey counties 
        to provide language assistance to clients applying for or 
        receiving aid through the county social service agency.  The 
        projects shall be designed to provide translation, in the five 
        foreign languages that are most common to applicants and 
        recipients in the pilot counties, to individuals lacking 
        proficiency in English, who are applying for or receiving 
        assistance under any program supervised by the commissioner of 
        human services.  As part of the project, the commissioner shall 
        ensure that the Combined Application Form (CAF) is available in 
        these five languages.  The projects shall also provide language 
        assistance to individuals applying for or receiving aid under 
        programs which the department of human services operates jointly 
        with other executive branch agencies, including all work and 
        training programs operated under chapters 256 and 256D.  The 
        purpose of the pilot projects is to ensure that information 
        regarding a program is presented in translation to applicants 
        for and recipients of assistance who lack proficiency in 
        English.  In preparing the protocols to be used in the pilot 
        programs, the commissioner shall seek input from the following 
        groups:  advocacy organizations that represent non-English 
        speaking clients, county social service agencies, legal advocacy 
        groups, employment and training providers, and other affected 
        groups.  The commissioner shall develop the protocols by October 
        1, 1995, and shall implement them as soon as feasible in the 
        pilot counties.  The commissioner shall report to the 
        legislature by February 1, 1996, on the protocols developed, on 
        the status of their implementation in the pilot counties, and 
        shall include recommendations for statewide implementation. 
           Sec. 3.  Minnesota Statutes 1994, section 256.73, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [ELIGIBILITY NOT BARRED BY WORKING OVER 99 
        HOURS; PAST EMPLOYMENT HISTORY; 30-DAY WAITING PERIOD.] An 
        individual receiving assistance may work over 99 hours per month 
        and remain eligible for assistance, provided all other 
        requirements of the aid to families with dependent 
        children-unemployed parent program are met.  The applicant is 
        not required to demonstrate past employment history or 30 days 
        of prior unemployment to be eligible for AFDC-unemployed 
        parent.  This subdivision is effective upon federal approval and 
        implementation of the waiver under section 46, subdivision 4. 
           Sec. 4.  Minnesota Statutes 1994, section 256.73, is 
        amended by adding a subdivision to read: 
           Subd. 5a.  [PARENTING OR PREGNANT MINORS; RESTRICTION ON 
        ASSISTANCE WITH FEDERAL EXCEPTIONS.] (a) The definitions in this 
        paragraph only apply to this subdivision. 
           (1) "Minor parent" means an individual who: 
           (i) is under the age of 18; 
           (ii) has never been married or otherwise legally 
        emancipated; and 
           (iii) is either the natural parent of a dependent child 
        living in the same household or eligible for assistance paid to 
        a pregnant woman under subdivision 5. 
           (2) "Household of a parent, legal guardian, or other adult 
        relative" means the place of residence of: 
           (i) a natural or adoptive parent; 
           (ii) a legal guardian pursuant to appointment or acceptance 
        under section 260.242, 525.615, or 525.6165, and related laws; 
        or 
           (iii) another individual who is age 18 or over and related 
        to the minor parent as specified in Code of Federal Regulations, 
        title 45, section 233.90(c)(1)(v), provided that the residence 
        is maintained as a home for the minor parent and child under 
        Code of Federal Regulations, title 45, section 
        233.90(c)(1)(v)(B). 
           (3) "Adult-supervised supportive living arrangement" means 
        a private family setting which assumes responsibility for the 
        care and control of the minor parent and dependent child, or 
        other living arrangement, not including a public institution, 
        licensed by the commissioner of human services which ensures 
        that the minor parent receives adult supervision and supportive 
        services, such as counseling, guidance, independent living 
        skills training, or supervision. 
           (b) A minor parent and the dependent child who is in the 
        care of the minor parent must reside in the household of a 
        parent, legal guardian, or other adult relative, or in an 
        adult-supervised supportive living arrangement in order to 
        receive AFDC unless: 
           (1) the minor parent has no living parent or legal guardian 
        whose whereabouts is known; 
           (2) no living parent or legal guardian of the minor parent 
        allows the minor parent to live in the parent's or legal 
        guardian's home; 
           (3) the minor parent lived apart from the minor parent's 
        own parent or legal guardian for a period of at least one year 
        before either the birth of the dependent child or the minor 
        parent's application for AFDC; 
           (4) the physical or emotional health or safety of the minor 
        parent or dependent child would be jeopardized if the minor 
        parent and the dependent child resided in the same residence 
        with the minor parent's parent or legal guardian; 
           (5) the minor parent and dependent child have, on the 
        effective date of this section, been living independently as 
        part of an approved social services plan for less than one year; 
        or 
           (6) an adult supervised supportive living arrangement is 
        not available for the minor parent and the dependent child in 
        the county in which the minor currently resides.  If an adult 
        supervised supportive living arrangement becomes available 
        within the county, the minor parent and child must reside in 
        that arrangement. 
           (c) Minor applicants must be informed orally and in writing 
        about the eligibility requirements and their rights and 
        obligations under the AFDC program.  The county must advise the 
        minor of the possible exemptions and specifically ask whether 
        one or more of these exemptions is applicable.  If the minor 
        alleges one or more of these exemptions, then the county must 
        assist the minor in obtaining the necessary verifications to 
        determine whether or not these exemptions apply. 
           (d) If the county worker has reason to suspect that the 
        physical or emotional health or safety of the minor parent or 
        dependent child would be jeopardized if they resided with the 
        minor parent's parent or legal guardian, then the county worker 
        must make a referral to child protective services to determine 
        if paragraph (b), clause (4), applies.  A new determination by 
        the county worker is not necessary if one has been made within 
        the last six months, unless there has been a significant change 
        in circumstances which justifies a new referral and 
        determination. 
           (e) If a minor parent is not living with a parent or legal 
        guardian due to paragraph (b), clause (1), (2), or (4), the 
        minor parent must reside, when possible, in a living arrangement 
        that meets the standards of paragraph (a), clause (3). 
           (f) When a minor parent and his or her dependent child live 
        with the minor parent's parent, legal guardian, or other adult 
        relative, or in an adult supervised supportive living 
        arrangement, AFDC must be paid, when possible, in the form of a 
        protective payment on behalf of the minor parent and dependent 
        child in accordance with Code of Federal Regulations, title 45, 
        section 234.60. 
           Sec. 5.  Minnesota Statutes 1994, section 256.73, 
        subdivision 8, is amended to read: 
           Subd. 8.  [RECOVERY OF OVERPAYMENTS.] (a) Except as 
        provided in subdivision 8a, if an amount of aid to families with 
        dependent children assistance is paid to a recipient in excess 
        of the payment due, it shall be recoverable by the county 
        agency.  The agency shall give written notice to the recipient 
        of its intention to recover the overpayment. 
           (b) When an overpayment occurs, the county agency shall 
        recover the overpayment from a current recipient by reducing the 
        amount of aid payable to the assistance unit of which the 
        recipient is a member for one or more monthly assistance 
        payments until the overpayment is repaid.  All county agencies 
        in the state shall reduce the assistance payment by three 
        percent of the assistance unit's standard of need or the amount 
        of the monthly payment, whichever is less, for all overpayments 
        whether or not the overpayment is due solely to agency error.  
        If the overpayment is due solely to having wrongfully obtained 
        assistance, whether based on a court order, the finding of an 
        administrative fraud disqualification hearing or a waiver of 
        such a hearing, or a confession of judgment containing an 
        admission of an intentional program violation, the amount of 
        this reduction shall be ten percent.  In cases when there is 
        both an overpayment and underpayment, the county agency shall 
        offset one against the other in correcting the payment. 
           (c) Overpayments may also be voluntarily repaid, in part or 
        in full, by the individual, in addition to the above aid 
        reductions, until the total amount of the overpayment is repaid. 
           (d) The county agency shall make reasonable efforts to 
        recover overpayments to persons no longer on assistance in 
        accordance with standards adopted in rule by the commissioner of 
        human services.  The county 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. 
           Sec. 6.  Minnesota Statutes 1994, section 256.73, is 
        amended by adding a subdivision to read: 
           Subd. 8a.  [START WORK OFFSET.] An overpayment resulting 
        from earned income received in the first month of employment is 
        not recoverable by the county agency provided the aid to 
        families with dependent children assistance unit has not 
        voluntarily quit employment, without good cause under section 
        268.09, subdivision 1, paragraph (a), in the past two years.  A 
        "start work offset" for purposes of this subdivision is the 
        amount of the overpayment the assistance unit would otherwise be 
        required to repay to the county under subdivision 8.  This 
        subdivision is effective upon federal approval and 
        implementation of the waiver under section 46, subdivision 3. 
           Sec. 7.  [256.7341] [TEMPORARY PUBLIC SERVICE OR COMMUNITY 
        SERVICE JOBS.] 
           A participant, except an obligor participating in an 
        approved community investment program under section 518.551, may 
        not work in a temporary public service or community service job 
        for a public employer for more than 67 working days or 536 hours 
        in a calendar year, whichever is greater, as part of a work 
        program established under this chapter except by written 
        agreement of the exclusive representative of affected employees 
        of the public employer.  Upon the written request of the 
        exclusive bargaining representative, a county or public service 
        employer shall make available to the affected exclusive 
        bargaining representative a report of hours worked by 
        participants in temporary public service or community service 
        jobs. 
           Sec. 8.  Minnesota Statutes 1994, section 256.736, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [PARTICIPATION.] (a) Except as provided under 
        paragraphs (b) and (c), participation in employment and training 
        services under this section is limited to the following 
        recipients:  
           (1) caretakers who are required to participate in a job 
        search under subdivision 14; 
           (2) custodial parents who are subject to the school 
        attendance or case management participation requirements under 
        subdivision 3b; 
           (3) caretakers whose participation in employment and 
        training services began prior to May 1, 1990, if the caretaker's 
        AFDC eligibility has not been interrupted for 30 days or more 
        and the caretaker's employability development plan has not been 
        completed; 
           (4) recipients who are members of a family in which the 
        youngest child is within two years of being ineligible for AFDC 
        due to age; 
           (5) custodial parents under the age of 24 who:  (i) have 
        not completed a high school education and who, at the time of 
        application for AFDC, were not enrolled in high school or in a 
        high school equivalency program; or (ii) have had little or no 
        work experience in the preceding year; 
           (6) recipients who have received AFDC for 36 or more months 
        out of the last 60 months; 
           (7) recipients who are participants in the self-employment 
        investment demonstration project under section 268.95; and 
           (8) recipients who participate in the new chance research 
        and demonstration project under contract with the department of 
        human services. 
           (b) If the commissioner determines that participation of 
        persons listed in paragraph (a) in employment and training 
        services is insufficient either to meet federal performance 
        targets or to fully utilize funds appropriated under this 
        section, the commissioner may, after notifying the chairs of the 
        senate family services committee, the house health and human 
        services committee, the family services division of the senate 
        family services and health care committees, and the human 
        services division of the house health and human services 
        committee, permit additional groups of recipients to participate 
        until the next meeting of the legislative advisory commission, 
        after which the additional groups may continue to enroll for 
        participation unless the legislative advisory commission 
        disapproves the continued enrollment.  The commissioner shall 
        allow participation of additional groups in the following order 
        only as needed to meet performance targets or fully utilize 
        funding for employment and training services under this section: 
           (1) recipients who have received 24 or more months of AFDC 
        out of the previous 48 months; and 
           (2) recipients who have not completed a high school 
        education or a high school equivalency program. 
           (c) To the extent of money appropriated specifically for 
        this paragraph, the commissioner may permit AFDC caretakers who 
        are not eligible for participation in employment and training 
        services under the provisions of paragraph (a) or (b) to 
        participate.  Money must be allocated to county agencies based 
        on the county's percentage of participants statewide in services 
        under this section in the prior calendar year.  Caretakers must 
        be selected on a first-come, first-served basis from a waiting 
        list of caretakers who volunteer to participate.  The 
        commissioner may, on a quarterly basis, reallocate unused 
        allocations to county agencies that have sufficient volunteers.  
        If funding under this paragraph is discontinued in future fiscal 
        years, caretakers who began participating under this paragraph 
        must be deemed eligible under paragraph (a), clause (3). 
           (d) Participants who are eligible and enroll in the STRIDE 
        program under one of the categories of this subdivision are 
        required to cooperate with the assessment and employability plan 
        development, and to meet the terms of their employability plan.  
        Failure to comply, without good cause, shall result in the 
        imposition of sanctions as specified in subdivision 4, clause 
        (6). 
           Sec. 9.  Minnesota Statutes 1994, section 256.736, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [NOTICE, CONCILIATION, AND RIGHT OF APPEAL.] If 
        the employment and training service provider determines that the 
        caretaker has failed or refused, without good cause, to 
        cooperate or accept employment, the employment and training 
        service provider shall issue to the caretaker a written notice 
        of its determination of noncooperation or refusal to accept 
        employment.  The notice must include a detailed explanation of 
        the reason for the determination and must specify the 
        consequences for failure or refusal to cooperate or accept 
        employment, the actions which the employment and training 
        service provider believes are necessary for the caretaker to 
        comply with the employment and training program, and the right 
        to request, within ten days of receipt of the date the notice 
        was mailed or hand delivered, a conciliation conference.  The 
        employment and training service provider or the county agency 
        must conduct a conciliation conference within five days of a 
        timely request.  If the dispute between the employment and 
        training service provider and the caretaker is not resolved in 
        the conciliation conference or a request for a conciliation 
        conference is not made within the required time, then the 
        employment and training service provider shall notify the county 
        board of a caretaker's failure without good cause to cooperate 
        or accept employment.  Unless the county agency has evidence to 
        the contrary, the county agency shall implement the sanction 
        provisions of subdivision 4.  Any determination, action, or 
        inaction on the part of the county board relating to a 
        caretaker's participation under section 256.736 is subject to 
        the notice and hearing procedures in section 256.045, and Code 
        of Federal Regulations, title 45, section 205.10. 
           Sec. 10.  Minnesota Statutes 1994, section 256.736, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EXTENSION OF EMPLOYMENT AND TRAINING 
        OPPORTUNITIES.] The commissioner of human services shall 
        cooperate with the commissioner of economic security and the 
        commissioner of trade and economic development to extend the 
        availability of training and employment opportunities on a 
        statewide basis and to assist local employment advisory groups 
        convened under this subdivision.  The county welfare agency may 
        convene an employment advisory group which shall include but not 
        be limited to representatives from the local chamber of 
        commerce, from major area employers, from private and public 
        collective bargaining units who shall be represented by their 
        exclusive representatives, from secondary and post-secondary 
        educational institutions in the community, and from job services 
        offices operated by the commissioner of economic security under 
        chapter 268.  The county welfare agency shall work with the 
        local employment advisory group to maximize the job 
        opportunities for welfare clients.  In a county where a private 
        industry council has been established, the county welfare agency 
        may work with the council to maximize job opportunities in lieu 
        of or in addition to convening an employment advisory group. 
           Sec. 11.  Minnesota Statutes 1994, section 256.736, 
        subdivision 10, is amended to read: 
           Subd. 10.  [COUNTY DUTIES.] (a) To the extent of available 
        state appropriations, county boards shall:  
           (1) refer all mandatory and eligible volunteer caretakers 
        permitted to participate under subdivision 3a to an employment 
        and training service provider for participation in employment 
        and training services; 
           (2) identify to the employment and training service 
        provider the target group of which the referred caretaker is a 
        member; 
           (3) provide all caretakers with an orientation which meets 
        the requirements in subdivisions 10a and 10b; 
           (4) work with the employment and training service provider 
        to encourage voluntary participation by caretakers in the target 
        groups; 
           (5) work with the employment and training service provider 
        to collect data as required by the commissioner; 
           (6) to the extent permissible under federal law, require 
        all caretakers coming into the AFDC program to attend 
        orientation; 
           (7) encourage nontarget caretakers to develop a plan to 
        obtain self-sufficiency; 
           (8) notify the commissioner of the caretakers required to 
        participate in employment and training services; 
           (9) inform appropriate caretakers of opportunities 
        available through the head start program and encourage 
        caretakers to have their children screened for enrollment in the 
        program where appropriate; 
           (10) provide transportation assistance using available 
        funds to caretakers who participate in employment and training 
        programs; 
           (11) ensure that orientation, job search, services to 
        custodial parents under the age of 20, educational activities 
        and work experience for AFDC-UP families, and case management 
        services are made available to appropriate caretakers under this 
        section, except that payment for case management services is 
        governed by subdivision 13; 
           (12) explain in its local service unit plan under section 
        268.88 how it will ensure that target caretakers determined to 
        be in need of social services are provided with such social 
        services.  The plan must specify how the case manager and the 
        county social service workers will ensure delivery of needed 
        services; 
           (13) to the extent allowed by federal laws and regulations, 
        provide a job search program as defined in subdivision 14, a 
        community work experience program as defined in section 256.737, 
        grant diversion as defined in section 256.739, and on-the-job 
        training as defined in section 256.738.  A county may also 
        provide another work and training program approved by the 
        commissioner and the secretary of the United States Department 
        of Health and Human Services.  Planning and approval for 
        employment and training services listed in this clause must be 
        obtained through submission of the local service unit plan as 
        specified under section 268.88.  A county is not required to 
        provide a community work experience program if the county agency 
        is successful in placing at least 40 percent of the monthly 
        average of all caretakers who are subject to the job search 
        requirements of subdivision 14 in grant diversion or on-the-job 
        training program; 
           (14) prior to participation, provide an assessment of each 
        AFDC recipient who is required or volunteers to participate in 
        an approved employment and training service.  The assessment 
        must include an evaluation of the participant's (i) educational, 
        child care, and other supportive service needs; (ii) skills and 
        prior work experience; and (iii) ability to secure and retain a 
        job which, when wages are added to child support, will support 
        the participant's family.  The assessment must also include a 
        review of the results of the early and periodic screening, 
        diagnosis and treatment (EPSDT) screening and preschool 
        screening under chapter 123, if available; the participant's 
        family circumstances; and, in the case of a custodial parent 
        under the age of 18, a review of the effect of a child's 
        development and educational needs on the parent's ability to 
        participate in the program; 
           (15) develop an employability development plan for each 
        recipient for whom an assessment is required under clause (14) 
        which:  (i) reflects the assessment required by clause (14); (ii)
        takes into consideration the recipient's physical capacity, 
        skills, experience, health and safety, family responsibilities, 
        place of residence, proficiency, child care and other supportive 
        service needs; (iii) is based on available resources and local 
        employment opportunities; (iv) specifies the services to be 
        provided by the employment and training service provider; (v) 
        specifies the activities the recipient will participate in, 
        including the worksite to which the caretaker will be assigned, 
        if the caretaker is subject to the requirements of section 
        256.737, subdivision 2; (vi) specifies necessary supportive 
        services such as child care; (vii) reflects the effort to 
        arrange mandatory activities so that the activities do not 
        interfere with access to available English as a second language 
        classes and to the extent possible, reflects the preferences of 
        the participant; and (viii) includes a written agreement between 
        the county agency and the caretaker that outlines a reasonable 
        schedule for completing the plan, including specific completion 
        deadlines, and confirms that (A) there is a market for full-time 
        employees with this education or training where the caretaker 
        will or is willing to reside upon completion of the program; (B) 
        the average wage level for employees with this education or 
        training is greater than the caretaker can earn without this 
        education or training; (C) the caretaker has the academic 
        ability to successfully complete the program; and (D) there is a 
        reasonable expectation that the caretaker will complete the 
        training program based on such factors as the caretaker's 
        previous education, training, work history, current motivation, 
        and changes in previous circumstances; and (ix) specifies the 
        recipient's long-term employment goal which shall lead to 
        self-sufficiency; 
           (16) provide written notification to and obtain the written 
        or oral concurrence of the appropriate exclusive bargaining 
        representatives with respect to job duties covered under 
        collective bargaining agreements to and assure that no work 
        assignment under this section or sections 256.737, 256.738, and 
        256.739, or the Minnesota parent's fair share mandatory 
        community work experience program results in:  (i) termination, 
        layoff, or reduction of the work hours of an employee for the 
        purpose of hiring an individual under this section or sections 
        256.737, 256.738, and 256.739; (ii) the hiring of an individual 
        if any other person is on layoff from the same or a 
        substantially equivalent job; (iii) any infringement of the 
        promotional opportunities of any currently employed individual; 
        (iv) the impairment of existing contracts for services or 
        collective bargaining agreements; or (v) except for on-the-job 
        training under section 256.738, a participant filling an 
        established unfilled position vacancy.  If an exclusive 
        bargaining representative and a county or public service 
        employer disagree regarding whether job duties are covered under 
        a collective bargaining agreement, the exclusive bargaining 
        representative or the county or public service employer may 
        petition the bureau of mediation services, and the bureau shall 
        determine if the job duties are covered by a collective 
        bargaining agreement; and 
           (17) assess each caretaker in an AFDC-UP family who is 
        under age 25, has not completed high school or a high school 
        equivalency program, and who would otherwise be required to 
        participate in a work experience placement under section 256.737 
        to determine if an appropriate secondary education option is 
        available for the caretaker.  If an appropriate secondary 
        education option is determined to be available for the 
        caretaker, the caretaker must, in lieu of participating in work 
        experience, enroll in and meet the educational program's 
        participation and attendance requirements.  "Secondary 
        education" for this paragraph means high school education or 
        education designed to prepare a person to qualify for a high 
        school equivalency certificate, basic and remedial education, 
        and English as a second language education.  A caretaker 
        required to participate in secondary education who, without good 
        cause, fails to participate shall be subject to the provisions 
        of subdivision 4a and the sanction provisions of subdivision 4, 
        clause (6).  For purposes of this clause, "good cause" means the 
        inability to obtain licensed or legal nonlicensed child care 
        services needed to enable the caretaker to attend, inability to 
        obtain transportation needed to attend, illness or incapacity of 
        the caretaker or another member of the household which requires 
        the caretaker to be present in the home, or being employed for 
        more than 30 hours per week. 
           (b) Funds available under this subdivision may not be used 
        to assist, promote, or deter union organizing. 
           (c) A county board may provide other employment and 
        training services that it considers necessary to help caretakers 
        obtain self-sufficiency. 
           (d) Notwithstanding section 256G.07, when a target 
        caretaker relocates to another county to implement the 
        provisions of the caretaker's case management contract or other 
        written employability development plan approved by the county 
        human service agency, its case manager or employment and 
        training service provider, the county that approved the plan is 
        responsible for the costs of case management and other services 
        required to carry out the plan, including employment and 
        training services.  The county agency's responsibility for the 
        costs ends when all plan obligations have been met, when the 
        caretaker loses AFDC eligibility for at least 30 days, or when 
        approval of the plan is withdrawn for a reason stated in the 
        plan, whichever occurs first.  Responsibility for the costs of 
        child care must be determined under chapter 256H.  A county 
        human service agency may pay for the costs of case management, 
        child care, and other services required in an approved 
        employability development plan when the nontarget caretaker 
        relocates to another county or when a target caretaker again 
        becomes eligible for AFDC after having been ineligible for at 
        least 30 days. 
           Sec. 12.  Minnesota Statutes 1994, section 256.736, 
        subdivision 10a, is amended to read: 
           Subd. 10a.  [ORIENTATION.] (a) Each county agency must 
        provide an orientation to all caretakers within its jurisdiction 
        in the time limits described in this paragraph:  
           (1) within 60 days of being determined eligible for AFDC 
        for caretakers with a continued absence or incapacitated parent 
        basis of eligibility; or 
           (2) within 30 days of being determined eligible for AFDC 
        for caretakers with an unemployed parent basis of eligibility. 
           (b) Caretakers are required to attend an in-person 
        orientation if the caretaker is a member of one of the groups 
        listed in subdivision 3a, paragraph (a), unless the caretaker is 
        exempt from registration under subdivision 3 and the caretaker's 
        exemption basis will not expire within 60 days of being 
        determined eligible for AFDC, or the caretaker is enrolled at 
        least half time in any recognized school, training program, or 
        institution of higher learning and the in-person orientation 
        cannot be scheduled at a time that does not interfere with the 
        caretaker's school or training schedule.  The county agency 
        shall require attendance at orientation of caretakers described 
        in subdivision 3a, paragraph (b) or (c), if the commissioner 
        determines that the groups are eligible for participation in 
        employment and training services. 
           (c) The orientation must consist of a presentation that 
        informs caretakers of: 
           (1) the identity, location, and phone numbers of employment 
        and training and support services available in the county; 
           (2) the types and locations of child care services 
        available through the county agency that are accessible to 
        enable a caretaker to participate in educational programs or 
        employment and training services; 
           (3) the child care resource and referral program designated 
        by the commissioner providing education and assistance to select 
        child care services and a referral to the child care resource 
        and referral when assistance is requested; 
           (4) the obligations of the county agency and service 
        providers under contract to the county agency; 
           (5) the rights, responsibilities, and obligations of 
        participants; 
           (6) the grounds for exemption from mandatory employment and 
        training services or educational requirements; 
           (7) the consequences for failure to participate in 
        mandatory services or requirements; 
           (8) the method of entering educational programs or 
        employment and training services available through the county; 
           (9) the availability and the benefits of the early and 
        periodic, screening, diagnosis and treatment (EPSDT) program and 
        preschool screening under chapter 123; 
           (10) their eligibility for transition year child care 
        assistance when they lose eligibility for AFDC due to their 
        earnings; 
           (11) their eligibility for extended medical assistance when 
        they lose eligibility for AFDC due to their earnings; and 
           (12) the availability and benefits of the Head Start 
        program. 
           (d) All orientation programs should provide information to 
        caretakers on parenting, nutrition, household management, food 
        preparation, and other subjects relevant to promoting family 
        integration and self-sufficiency and provide detailed 
        information on community resources available for training 
        sessions on these topics. 
           (e) Orientation must encourage recipients to view AFDC as a 
        temporary program providing grants and services to individuals 
        who set goals and develop strategies for supporting their 
        families without AFDC assistance.  The content of the 
        orientation must not imply that a recipient's eligibility for 
        AFDC is time limited.  Orientation may be provided through 
        audio-visual methods, but the caretaker must be given an 
        opportunity for face-to-face interaction with staff of the 
        county agency or the entity providing the orientation, and an 
        opportunity to express the desire to participate in educational 
        programs and employment and training services offered through 
        the county agency. 
           (e) (f) County agencies shall not require caretakers to 
        attend orientation for more than three hours during any period 
        of 12 continuous months.  The county agency shall also arrange 
        for or provide needed transportation and child care to enable 
        caretakers to attend. 
           The county or, under contract, the county's employment and 
        training service provider shall mail written orientation 
        materials containing the information specified in paragraph (c), 
        clauses (1) to (3) and (8) to (12), to each caretaker exempt 
        from attending an in-person orientation or who has good cause 
        for failure to attend after at least two dates for their 
        orientation have been scheduled.  The county or the county's 
        employment and training service provider shall follow up with a 
        phone call or in writing within two weeks after mailing the 
        material. 
           (f) (g) Persons required to attend orientation must be 
        informed of the penalties for failure to attend orientation, 
        support services to enable the person to attend, what 
        constitutes good cause for failure to attend, and rights to 
        appeal.  Persons required to attend orientation must be offered 
        a choice of at least two dates for their first scheduled 
        orientation.  No person may be sanctioned for failure to attend 
        orientation until after a second failure to attend. 
           (g) (h) Good cause for failure to attend an in-person 
        orientation exists when a caretaker cannot attend because of:  
           (1) temporary illness or injury of the caretaker or of a 
        member of the caretaker's family that prevents the caretaker 
        from attending an orientation during the hours when the 
        orientation is offered; 
           (2) a judicial proceeding that requires the caretaker's 
        presence in court during the hours when orientation is 
        scheduled; or 
           (3) a nonmedical emergency that prevents the caretaker from 
        attending an orientation during the hours when orientation is 
        offered.  "Emergency" for the purposes of this paragraph means a 
        sudden, unexpected occurrence or situation of a serious or 
        urgent nature that requires immediate action.  
           (h) (i) Caretakers must receive a second orientation only 
        when: 
           (1) there has been a 30-day break in AFDC eligibility; and 
           (2) the caretaker has not attended an orientation within 
        the previous 12-month period, excluding the month of 
        reapplication for AFDC. 
           Sec. 13.  Minnesota Statutes 1994, section 256.736, 
        subdivision 14, is amended to read: 
           Subd. 14.  [JOB SEARCH.] (a) Each county agency must 
        establish and operate a job search program as provided under 
        this section.  Unless all caretakers in the household are 
        exempt, the principal wage earner in an AFDC-UP assistance unit 
        must one nonexempt caretaker in each AFDC-UP household must be 
        referred to and begin participation in the job search program 
        within 30 days of being determined eligible for AFDC.  If 
        the principal wage earner is exempt from participation in job 
        search, the other caretaker must be referred to and begin 
        participation in the job search program within 30 days of being 
        determined eligible for AFDC.  The principal wage earner or the 
        other assistance unit contains more than one nonexempt 
        caretaker, the caretakers may determine which caretaker shall 
        participate.  The designation may be changed only once annually 
        at the annual redetermination of eligibility.  If no designation 
        is made or if the caretakers cannot agree, the county agency 
        shall designate the caretaker having earned the greater of the 
        incomes, including in-kind income, during the 24-month period 
        immediately preceding the month of application for AFDC benefits 
        as the caretaker that must participate.  When no designation is 
        made or the caretakers cannot agree and neither caretaker had 
        earnings or the earnings were identical for each caretaker, then 
        the county agency shall designate the caretaker who must 
        participate.  A caretaker is exempt from job search 
        participation if: 
           (1) the caretaker is exempt from registration under 
        subdivision 3; or 
           (2) the caretaker is under age 25, has not completed a high 
        school diploma or an equivalent program, and is participating in 
        a secondary education program as defined in subdivision 10, 
        paragraph (a), clause (17), which is approved by the employment 
        and training service provider in the employability development 
        plan. 
           (b) The job search program must provide four consecutive 
        weeks of job search activities for no less than 20 hours per 
        week but not more than 32 hours per week.  The employment and 
        training service provider shall specify for each participating 
        caretaker the number of weeks and hours of job search to be 
        conducted and shall report to the county agency if the caretaker 
        fails to cooperate with the job search requirement.  A person 
        for whom lack of proficiency in English, as determined by an 
        appropriate evaluation, is a barrier to employment, can choose 
        to attend an available intensive, functional work literacy 
        program for a minimum of 20 hours in place of the 20 hours of 
        job search activities.  The caretaker's employability 
        development plan must include the length of time needed in the 
        program, specific outcomes, attendance requirements, completion 
        dates, and employment goals as they pertain to the intensive 
        literacy program. 
           (c) The job search program may provide services to 
        non-AFDC-UP caretakers. 
           (d) After completion of job search requirements in this 
        section, nonexempt caretakers shall be placed in and must 
        participate in and cooperate with the work experience program 
        under section 256.737, the on-the-job training program under 
        section 256.738, or the grant diversion program under section 
        256.739.  Caretakers must be offered placement in a grant 
        diversion or on-the-job training program, if either such 
        employment is available, before being required to participate in 
        a community work experience program under section 256.737.  When 
        a nonexempt caretaker fails to cooperate with the job search 
        program, the work experience program, the on-the-job training 
        program, or the community work experience program and is subject 
        to the sanction provisions of subdivision 4, the second 
        caretaker in the assistance unit, unless exempt, must also be 
        removed from the grant unless that second caretaker has been 
        referred to and has started participating in the job search 
        program and subsequently in the work experience program, the 
        on-the-job training program, or the community work experience 
        program prior to the date the sanction begins for the first 
        caretaker.  The second caretaker is ineligible for AFDC until 
        the first caretaker's sanction ends or the second caretaker 
        cooperates with the requirements. 
           Sec. 14.  Minnesota Statutes 1994, section 256.736, 
        subdivision 16, is amended to read: 
           Subd. 16.  [ALLOCATION AND USE OF MONEY.] (a) State money 
        appropriated for employment and training services under this 
        section must be allocated to counties as specified in paragraphs 
        (b) to (j) (l). 
           (b) For purposes of this subdivision, "targeted caretaker" 
        means a recipient who: 
           (1) is a custodial parent under the age of 24 who:  (i) has 
        not completed a high school education and at the time of 
        application for AFDC is not enrolled in high school or in a high 
        school equivalency program; or (ii) had little or no work 
        experience in the preceding year; 
           (2) is a member of a family in which the youngest child is 
        within two years of being ineligible for AFDC due to age; or 
           (3) has received 36 months or more of AFDC over the last 60 
        months. 
           (c) One hundred percent of the money appropriated for case 
        management services as described in subdivision 11 must be 
        allocated to counties based on the average number of cases in 
        each county described in clause (1).  Money appropriated for 
        employment and training services as described in subdivision 1a, 
        paragraph (d), other than case management services, must be 
        allocated to counties as follows: 
           (1) Forty percent of the state money must be allocated 
        based on the average number of cases receiving AFDC in the 
        county which either have been open for 36 or more consecutive 
        months or have a caretaker who is under age 24 and who has no 
        high school or general equivalency diploma.  The average number 
        of cases must be based on counts of these cases as of March 31, 
        June 30, September 30, and December 31 of the previous year. 
           (2) Twenty percent of the state money must be allocated 
        based on the average number of cases receiving AFDC in the 
        county which are not counted under clause (1).  The average 
        number of cases must be based on counts of cases as of March 31, 
        June 30, September 30, and December 31 of the previous year.  
           (3) Twenty-five percent of the state money must be 
        allocated based on the average monthly number of assistance 
        units in the county receiving AFDC-UP for the period ending 
        December 31 of the previous year. 
           (4) Fifteen percent of the state money must be allocated at 
        the discretion of the commissioner based on participation levels 
        for target group members in each county. 
           (d) No more than 15 percent of the money allocated under 
        paragraph (b) and no more than 15 percent of the money allocated 
        under paragraph (c) may be used for administrative activities. 
           (e) At least 55 percent of the money allocated to counties 
        under paragraph (c) must be used for employment and training 
        services for caretakers in the target groups, and up to 45 
        percent of the money may be used for employment and training 
        services for nontarget caretakers.  One hundred percent of the 
        money allocated to counties for case management services must be 
        used to provide those services to caretakers in the target 
        groups. 
           (f) Money appropriated to cover the nonfederal share of 
        costs for bilingual case management services to refugees for the 
        employment and training programs under this section are 
        allocated to counties based on each county's proportion of the 
        total statewide number of AFDC refugee cases.  However, counties 
        with less than one percent of the statewide number of AFDC 
        refugee cases do not receive an allocation.  
           (g) Counties, the department of economic security, and 
        entities under contract with either the department of economic 
        security or the department of human services for provision of 
        Project STRIDE related services shall bill the commissioner of 
        human services for any expenditures incurred by the county, the 
        county's employment and training service provider, or the 
        department of economic security that may be reimbursed by 
        federal money.  The commissioner of human services shall bill 
        the United States Department of Health and Human Services and 
        the United States Department of Agriculture for the 
        reimbursement and appropriate the reimbursed money to the 
        county, the department of economic security, or employment and 
        training service provider that submitted the original bill.  The 
        reimbursed money must be used to expand employment and training 
        services. 
           (h) The commissioner of human services shall review county 
        expenditures of case management and employment and training 
        block grant money at the end of the third quarter of the 
        biennium and each quarter after that, and may reallocate 
        unencumbered or unexpended money allocated under this section to 
        those counties that can demonstrate a need for additional 
        money.  Reallocation of funds must be based on the formula set 
        forth in paragraph (a), excluding the counties that have not 
        demonstrated a need for additional funds. 
           (i) The county agency may continue to provide case 
        management and supportive services to a participant for up to 90 
        days after the participant loses AFDC eligibility and may 
        continue providing a specific employment and training service 
        for the duration of that service to a participant if funds for 
        the service are obligated or expended prior to the participant 
        losing AFDC eligibility. 
           (j) One hundred percent of the money appropriated for an 
        unemployed parent work experience program under section 256.737 
        must be allocated to counties based on the average monthly 
        number of assistance units in the county receiving AFDC-UP for 
        the period ending December 31 of the previous year. 
           (k) The commissioner may waive the requirement of paragraph 
        (e) that case management funds be spent only on case management 
        services in order to permit the development of a unified STRIDE 
        funding allocation for each county agency.  The unified 
        allocation may be expended by the county agency for case 
        management and employment and training activities in the 
        proportion determined necessary to streamline administrative 
        procedures and enhance program performance.  The commissioner, 
        in consultation with the commissioner of economic security, may 
        also grant a waiver from program spending limits in paragraphs 
        (d) and (e) to any county which can demonstrate increased 
        program effectiveness through a written request to the 
        department.  Counties which request a waiver of the spending 
        limits in paragraphs (d) and (e) shall amend their local service 
        unit plans and receive approval of the plans prior to commencing 
        the waiver.  The commissioners of human services and economic 
        security shall annually evaluate the effectiveness of all 
        waivers approved under this subdivision. 
           (l) Effective July 1, 1995, the commissioner of human 
        services shall begin developing a performance model for the 
        purpose of analyzing each county's performance in the provision 
        of STRIDE employment and training services.  Beginning February 
        1, 1997, and each year thereafter, the commissioner of human 
        services shall inform each county of the county's performance 
        based upon the following measures: 
           (1) employment rate at termination of STRIDE eligibility; 
           (2) wage rate at termination of STRIDE eligibility; 
           (3) average annual cost per placement calculated by 
        dividing the total STRIDE expenditures by the number of 
        participants placed in unsubsidized employment; 
           (4) AFDC-UP participation rate; 
           (5) percentage of 18- and 19-year-old custodial parents 
        subject to secondary education requirements of subdivision 3b 
        who complete secondary education or equivalent course of study; 
        and 
           (6) achievement of federally mandated JOBS participation 
        rate. 
           Performance measures (1), (2), and (3) shall be adjusted to 
        reflect local conditions. 
           County agencies must take the results of these performance 
        measures into consideration when selecting employment and 
        training service providers. 
           Sec. 15.  Minnesota Statutes 1994, section 256.736, is 
        amended by adding a subdivision to read: 
           Subd. 20.  [SPECIAL PROVISIONS FOR PERSONS PARTICIPATING IN 
        EDUCATIONAL PROGRAMS.] The provisions of this subdivision are 
        applicable to all project STRIDE participants, including those 
        subject to subdivision 3b and section 256.737. 
           (a) For recipients eligible to participate under 
        subdivision 3b who are enrolled in a high school equivalency 
        program on a full-time basis, there is no work requirement.  
        Individuals who are enrolled part time in a high school 
        equivalency program must take classroom instruction for at least 
        six hours per week, meet the attendance and satisfactory 
        progress requirements as defined by the employment and training 
        service provider in consultation with the provider of the high 
        school equivalency program, and concurrently work a monthly 
        average of not less than 64 hours in employment paying at least 
        minimum wage or in documented volunteer work.  Hours spent 
        assisting at a licensed day care center shall count toward the 
        weekly hours needed to fulfill the employment or volunteer 
        requirement.  "Volunteer work" shall include attendance at 
        parenting skill classes.  Failure to comply, without good cause, 
        with this requirement shall result in the imposition of 
        sanctions as specified in subdivision 4, clause (6). 
           (b) Concurrent with participation in post-secondary 
        education or training approved in an employability development 
        plan under subdivision 10, paragraph (a), clause (15), the 
        participant must work at a minimum the number of hours per month 
        prescribed by this subdivision in employment paying at least 
        minimum wage or in documented volunteer work for a public or 
        nonprofit agency and agree to search for and accept any offer of 
        suitable employment upon completion of the education or 
        training.  For individuals who are participating in an 
        educational program under this paragraph on a full-time basis as 
        determined by the institution, there is no work requirement.  
        For individuals participating in an educational program on a 
        part-time basis as determined by the institution, the number of 
        hours that a participant must work shall be increased or 
        decreased in inverse proportion to the number of credit hours 
        being taken, with a maximum of eight hours weekly of work.  
        Hours spent assisting at a licensed day care center shall count 
        towards the weekly hours needed to fulfill the employment or 
        volunteer requirement.  "Volunteer work" shall include 
        attendance at parenting skill classes. 
           Sec. 16.  Minnesota Statutes 1994, section 256.737, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [COMMISSIONER'S DUTIES.] The commissioner shall: 
        (a) assist counties in the design and implementation of these 
        programs; (b) promulgate, in accordance with chapter 14, 
        emergency rules necessary for the implementation of this 
        section, except that the time restrictions of section 14.35 
        shall not apply and the rules may be in effect until June 30, 
        1993, unless superseded by permanent rules; (c) seek any federal 
        waivers necessary for proper implementation of this section in 
        accordance with federal law; (d) ensure that participants at 
        CWEP worksites are assigned to work, and require revision of the 
        CWEP work plan in cases where work is not available at the site; 
        (e) shall design and implement an intensive, functional work 
        literacy program that addresses the barriers to employment for 
        nonexempt caretakers in AFDC-UP households who lack proficiency 
        in English.  The commissioner is encouraged to work with adult 
        basic education providers to provide functional work literacy 
        services, where available.  The intensive, functional work 
        literacy program must be designed to assist nonexempt caretakers 
        in AFDC-UP households achieve self-sufficiency by enhancing 
        their employability through concurrent participation in 
        meaningful work experience, job search skills, and functional 
        work literacy; and (d) (f) prohibit the use of participants in 
        the programs to do work that was part or all of the duties or 
        responsibilities of an authorized public employee bargaining 
        unit position established as of January 1, 1993.  The exclusive 
        bargaining representative shall be notified no less than 14 days 
        in advance of any placement by the community work experience 
        program.  Written or oral concurrence with respect to job duties 
        of persons placed under the community work experience program 
        shall be obtained from the appropriate exclusive bargaining 
        representative within seven days.  The appropriate oversight 
        committee shall be given monthly lists of all job placements 
        under a community work experience program. 
           Sec. 17.  Minnesota Statutes 1994, section 256.737, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROGRAM REQUIREMENTS.] (a) Worksites developed 
        under this section are limited to projects that serve a useful 
        public service such as:  health, social service, environmental 
        protection, education, urban and rural development and 
        redevelopment, welfare, recreation, public facilities, public 
        safety, community service, services to aged or disabled 
        citizens, and child care.  To the extent possible, the prior 
        training, skills, and experience of a recipient must be used in 
        making appropriate work experience assignments.  
           (b) As a condition to placing a person receiving aid to 
        families with dependent children in a program under this 
        subdivision, the county agency shall first provide the recipient 
        the opportunity:  
           (1) for placement in suitable subsidized or unsubsidized 
        employment through participation in job search under section 
        256.736, subdivision 14; or 
           (2) for placement in suitable employment through 
        participation in on-the-job training under section 256.738 or 
        grant diversion under section 256.739, if such employment is 
        available.  
           (c) A caretaker referred to job search under section 
        256.736, subdivision 14, and who has failed to secure suitable 
        employment must participate in a community work experience 
        program. 
           (d) The county agency shall limit the maximum number of 
        hours any participant under this section may work in any month 
        to:  
           (1) for counties operating an approved mandatory community 
        work experience program as of January 1, 1993, who elect this 
        method for countywide operations, a number equal to the amount 
        of the aid to families with dependent children payable to the 
        family divided by the greater of the federal minimum wage or the 
        applicable state minimum wage; or 
           (2) for all other counties, a caretaker must participate in 
        any week 20 hours with no less than 16 hours spent participating 
        in a work experience placement and no more than four of the 
        hours spent in alternate activities as described in the 
        caretaker's employability development plan.  A person for whom 
        lack of proficiency in English, as determined by an appropriate 
        evaluation, is a barrier to employment, can choose to attend an 
        available intensive, functional work literacy program and the 
        hours will be applied to the four hours of alternate 
        activities.  The caretaker's employability development plan must 
        include the length of time needed in the program, specific 
        outcomes, completion dates, and employment goals as they pertain 
        to the intensive language program.  Placement in a work 
        experience worksite must be based on the assessment required 
        under section 256.736 and the caretaker's employability 
        development plan.  Caretakers participating under this clause 
        may be allowed excused absences from the assigned job site of up 
        to eight hours per month.  For the purposes of this clause, 
        "excused absence" means absence due to temporary illness or 
        injury of the caretaker or a member of the caretaker's family, 
        the unavailability of licensed child care or transportation 
        needed to participate in the work experience placement, a job 
        interview, or a nonmedical emergency.  For purposes of this 
        clause, "emergency" has the meaning given it in section 256.736, 
        subdivision 10a, paragraph (g).  
           (e) After a participant has been assigned to a position 
        under paragraph (d), clause (1), for nine months, the 
        participant may not continue in that assignment unless the 
        maximum number of hours a participant works is no greater than 
        the amount of the aid to families with dependent children 
        payable with respect to the family divided by the higher of (1) 
        the federal minimum wage or the applicable state minimum wage, 
        whichever is greater, or (2) the rate of pay for individuals 
        employed in the same or similar occupations by the same employer 
        at the same site. 
           (f) After each six months of a recipient's participation in 
        an assignment, and at the conclusion of each assignment under 
        this section, the county agency shall reassess and revise, as 
        appropriate, each participant's employability development plan. 
           (g) Structured, supervised volunteer work with an agency or 
        organization which is monitored by the county service provider 
        may, with the approval of the commissioner of economic security, 
        be used as a work experience placement. 
           (h) If there is no work available at the site to which a 
        CWEP participant is assigned, then the CWEP work plan shall be 
        revised so that participants may work at alternative sites. 
           Sec. 18.  Minnesota Statutes 1994, section 256.737, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [INJURY PROTECTION FOR WORK EXPERIENCE 
        PARTICIPANTS.] (a) Payment of any claims resulting from an 
        alleged injury or death of a recipient participating in a 
        community work experience program established and operated by a 
        county pursuant to this section shall be determined in 
        accordance with this section.  This determination method applies 
        to work experience programs established under aid to families 
        with dependent children, work readiness, Minnesota parent's fair 
        share, and to obligors participating in community services 
        pursuant to section 518.551, subdivision 5a, in a county with an 
        approved community investment program. 
           (b) Claims that are subject to this section shall be 
        investigated by the county agency responsible for supervising 
        the work to determine whether the claimed injury occurred, 
        whether the claimed medical expenses are reasonable, and whether 
        the loss is covered by the claimant's insurance.  If insurance 
        coverage is established, the county agency shall submit the 
        claim to the appropriate insurance entity for payment.  The 
        investigating county agency shall submit all valid claims, in 
        the amount net of any insurance payments, to the department of 
        human services.  
           (c) The department of human services shall submit all 
        claims for impairment compensation to the commissioner of labor 
        and industry.  The commissioner of labor and industry shall 
        review all submitted claims and recommend to the department of 
        human services an amount of compensation comparable to that 
        which would be provided under the impairment compensation 
        schedule of section 176.101, subdivision 3b. 
           (d) The department of human services shall approve a claim 
        of $1,000 or less for payment if appropriated funds are 
        available, if the county agency responsible for supervising the 
        work has made the determinations required by this section, and 
        if the work program was operated in compliance with the safety 
        provisions of this section.  The department shall pay the 
        portion of an approved claim of $1,000 or less that is not 
        covered by the claimant's insurance within three months of the 
        date of submission.  On or before February 1 of each legislative 
        session, the department shall submit to the appropriate 
        committees of the senate and the house of representatives a list 
        of claims of $1,000 or less paid during the preceding calendar 
        year and shall be reimbursed by legislative appropriation for 
        any claims that exceed the original appropriation provided to 
        the department to operate this program.  Any unspent money from 
        this appropriation shall carry over to the second year of the 
        biennium, and any unspent money remaining at the end of the 
        second year shall be returned to the state general fund. 
           On or before February 1 of each year, the department shall 
        submit to the appropriate committees of the senate and the house 
        of representatives a list of claims in excess of $1,000 and a 
        list of claims of $1,000 or less that were submitted to but not 
        paid by the department of human services, together with any 
        recommendations of appropriate compensation.  These claims shall 
        be heard and determined by the appropriate committees of the 
        senate and house of representatives and, if approved, shall be 
        paid under the legislative claims procedure. 
           (e) Compensation paid under this section is limited to 
        reimbursement for reasonable medical expenses and impairment 
        compensation for disability in like amounts as allowed in 
        section 176.101, subdivision 3b.  Compensation for injuries 
        resulting in death shall include reasonable medical expenses and 
        burial expenses in addition to payment to the participant's 
        estate in an amount up to $200,000.  No compensation shall be 
        paid under this section for pain and suffering, lost wages, or 
        other benefits provided in chapter 176.  Payments made under 
        this section shall be reduced by any proceeds received by the 
        claimant from any insurance policy covering the loss.  For the 
        purposes of this section, "insurance policy" does not include 
        the medical assistance program authorized under chapter 256B or 
        the general assistance medical care program authorized under 
        chapter 256D. 
           (f) The procedure established by this section is exclusive 
        of all other legal, equitable, and statutory remedies against 
        the state, its political subdivisions, or employees of the state 
        or its political subdivisions.  The claimant shall not be 
        entitled to seek damages from any state or county insurance 
        policy or self-insurance program. 
           (g) A claim is not valid for purposes of this subdivision 
        if the local agency responsible for supervising the work cannot 
        verify to the department of human services: 
           (1) that appropriate safety training and information is 
        provided to all persons being supervised by the agency under 
        this subdivision; and 
           (2) that all programs involving work by those persons 
        comply with federal Occupational Safety and Health 
        Administration and state department of labor and industry safety 
        standards.  A claim that is not valid because of failure to 
        verify safety training or compliance with safety standards will 
        not be paid by the department of human services or through the 
        legislative claims process and must be heard, decided, and paid, 
        if appropriate, by the local government unit responsible for 
        supervising the work of the claimant. 
           (g) This program is effective July 1, 1995.  Claims may be 
        submitted on or after November 1, 1995. 
           Sec. 19.  Minnesota Statutes 1994, section 256.74, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [STATE SUPPLEMENTARY PAYMENTS.] The commissioner 
        of human services shall report back on a plan for providing 
        supplemental payments for recipients of AFDC whose income is 
        reduced or terminated as a result of a reduction in the rate of 
        pay, reduction in numbers of hours worked, or reduction in court 
        ordered or agreed upon support, but whose assistance under the 
        AFDC program is not adjusted accordingly because of the 
        operation of retrospective budgeting procedures.  The amount of 
        assistance must be sufficient to ensure that the assistance 
        unit's income equals, but does not exceed, the standard of 
        assistance in the AFDC program for an assistance unit of like 
        size and composition.  A recipient shall not be eligible for 
        supplementary assistance if the recipient voluntarily, and 
        without good cause attributable to the employer, discontinued 
        employment with the employer or was discharged for misconduct 
        connected with work or for misconduct which interferes with or 
        adversely affects employment.  The commissioner's report shall 
        provide information on the projected number of families likely 
        to be eligible for supplementary payments during the 1997-1999 
        biennium; and on the costs, including administrative costs, of 
        making those payments to eligible recipients.  The report shall 
        be presented to the legislature by February 15, 1996. 
           Sec. 20.  Minnesota Statutes 1994, section 256.81, is 
        amended to read: 
           256.81 [COUNTY AGENCY, DUTIES.] 
           (1) The county agency shall keep such records, accounts, 
        and statistics in relation to aid to families with dependent 
        children as the state agency shall prescribe.  
           (2) Each grant of aid to families with dependent children 
        shall be paid to the recipient by the county agency unless paid 
        by the state agency.  Payment must be by check or electronic 
        means except in those instances in which the county agency, 
        subject to the rules of the state agency, determines that 
        payments for care shall be made to an individual other than the 
        parent or relative with whom the dependent child is living or to 
        vendors of goods and services for the benefit of the child 
        because such parent or relative is unable to properly manage the 
        funds in the best interests and welfare of the child.  There is 
        a presumption of mismanagement of funds whenever a recipient is 
        more than 30 days in arrears on payment of rent, except when the 
        recipient has withheld rent to enforce the recipient's right to 
        withhold the rent in accordance with federal, state, or local 
        housing laws.  In cases of mismanagement based solely on failure 
        to pay rent, the county may vendor the rent payments to the 
        landlord.  At the request of a recipient, the state or county 
        may make payments directly to vendors of goods and services, but 
        only for goods and services appropriate to maintain the health 
        and safety of the child, as determined by the county.  
           (3) The state or county may ask the recipient to give 
        written consent authorizing the state or county to provide 
        advance notice to a vendor before vendor payments of rent are 
        reduced or terminated.  Whenever possible under state and 
        federal laws and regulations and if the recipient consents, the 
        state or county shall provide at least 30 days notice to vendors 
        before vendor payments of rent are reduced or terminated.  If 30 
        days notice cannot be given, the state or county shall notify 
        the vendor within three working days after the date the state or 
        county becomes aware that vendor payments of rent will be 
        reduced or terminated.  When the county notifies a vendor that 
        vendor payments of rent will be reduced or terminated, the 
        county shall include in the notice that it is illegal to 
        discriminate on the grounds that a person is receiving public 
        assistance and the penalties for violation.  The county shall 
        also notify the recipient that it is illegal to discriminate on 
        the grounds that a person is receiving public assistance and the 
        procedures for filing a complaint.  The county agency may 
        develop procedures, including using the MAXIS system, to 
        implement vendor notice and may charge vendors a fee not 
        exceeding $5 to cover notification costs. 
           (4) A vendor payment arrangement is not a guarantee that a 
        vendor will be paid by the state or county for rent, goods, or 
        services furnished to a recipient, and the state and county are 
        not liable for any damages claimed by a vendor due to failure of 
        the state or county to pay or to notify the vendor on behalf of 
        a recipient, except under a specific written agreement between 
        the state or county and the vendor or when the state or county 
        has provided a voucher guaranteeing payment under certain 
        conditions.  
           (5) The county shall be paid from state and federal funds 
        available therefor the amount provided for in section 256.82.  
           (6) Federal funds available for administrative purposes 
        shall be distributed between the state and the counties in the 
        same proportion that expenditures were made except as provided 
        for in section 256.017. 
           (7) The affected county may require that assistance paid 
        under the AFDC emergency assistance program in the form of a 
        rental unit damage deposit, less any amount retained by the 
        landlord to remedy a tenant's default in payment of rent or 
        other funds due to the landlord pursuant to a rental agreement, 
        or to restore the premises to the condition at the commencement 
        of the tenancy, ordinary wear and tear excepted, be returned to 
        the county when the individual vacates the premises or paid to 
        the recipient's new landlord as a vendor payment.  The vendor 
        payment of returned funds shall not be considered a new use of 
        emergency assistance. 
           Sec. 21.  [256.8799] [FOOD STAMP OUTREACH PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
        services shall establish, in consultation with the 
        representatives from community action agencies, a statewide 
        outreach program to better inform potential recipients of the 
        existence and availability of food stamps under the food stamp 
        program.  As part of the outreach program, the commissioner and 
        community action agencies shall encourage recipients in the use 
        of food stamps at food cooperatives.  The commissioner shall 
        explore and pursue federal funding sources, and specifically, 
        apply for funding from the United States Department of 
        Agriculture for the food stamp outreach program. 
           Subd. 2.  [ADMINISTRATION OF THE PROGRAM.] A community 
        association representing community action agencies under section 
        268.53, in consultation with the commissioner shall administer 
        the outreach program, issue the request for proposals, and 
        review and approve the potential grantee's plan.  Grantees shall 
        comply with the monitoring and reporting requirements as 
        developed by the commissioner in accordance with subdivision 4, 
        and must also participate in the evaluation process as directed 
        by the commissioner.  Grantees must successfully complete one 
        year of outreach and demonstrate compliance with all monitoring 
        and reporting requirements in order to be eligible for 
        additional funding. 
           Subd. 3.  [PLAN CONTENT.] In approving the plan, the 
        association shall evaluate the plan and give highest priority to 
        a plan that: 
           (1) targets communities in which 50 percent or fewer of the 
        residents with incomes below 125 percent of the poverty level 
        receive food stamps; 
           (2) demonstrates that the grantee has the experience 
        necessary to administer the program; 
           (3) demonstrates a cooperative relationship with the local 
        county social service agencies; 
           (4) provides ways to improve the dissemination of 
        information on the food stamp program as well as other 
        assistance programs through a statewide hotline or other 
        community agencies; 
           (5) provides direct advocacy consisting of face-to-face 
        assistance with the potential applicants; 
           (6) improves access to the food stamp program by 
        documenting barriers to participation and advocating for changes 
        in the administrative structure of the program; and 
           (7) develops strategies for combatting community 
        stereotypes about food stamp recipients and the food stamp 
        program, misinformation about the program, and the stigma 
        associated with using food stamps. 
           Subd. 4.  [COORDINATED DEVELOPMENT.] The commissioner shall 
        consult with representatives from the United States Department 
        of Agriculture, Minnesota Community Action Association, Food 
        First Coalition, Minnesota department of human services, Urban 
        Coalition/University of Minnesota extension services, county 
        social service agencies, local social service agencies, and 
        organizations that have previously administered state-funded 
        food stamp outreach programs to: 
           (1) develop the reporting requirements for the program; 
           (2) develop and implement the monitoring of the program; 
           (3) develop, coordinate, and assist in the evaluation 
        process; and 
           (4) provide an interim report to the legislature by January 
        1997, and a final report to the legislature by January 1998, 
        which includes the results of the evaluation and recommendations.
           Sec. 22.  Minnesota Statutes 1994, section 256.979, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [ACCRUAL OF SUPPORT OBLIGATIONS.] The 
        commissioner shall seek the waiver required under this section 
        only if the provision creating the centralized child support 
        payment center does not pass in the 1995 legislative session.  
        If the centralized child support payment center provision does 
        not pass, the commissioner shall seek a waiver from the 
        secretary of the Department of Health and Human Services to 
        enable the agency to accrue child support payments received on 
        behalf of both AFDC and non-AFDC clients until the sum total of 
        the money owed by the state agency to the client is at least 
        $10.  Obligors shall be assessed a processing fee of $10 to be 
        retained by the county agency in every instance when both of the 
        following conditions exist: 
           (1) the obligor pays less than the required monthly support 
        obligation; and 
           (2) that reduced payment would result in a child support 
        payment to an AFDC or non-AFDC client of less than $10 for that 
        month. 
           Sec. 23.  Minnesota Statutes 1994, section 256.983, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAMS ESTABLISHED.] Within the limits 
        of available appropriations, and to the extent required or 
        authorized by applicable federal regulations, the commissioner 
        of human services shall require the establishment of fraud 
        prevention investigation programs in the seven counties 
        participating in the fraud prevention investigation pilot 
        project established under section 256.983, and in 11 additional 
        Minnesota counties with the largest aid to families with 
        dependent children program caseloads as of July 1, 1991.  If 
        funds are sufficient, the commissioner may also extend fraud 
        prevention investigation programs to:  (1) other counties that 
        have welfare fraud control programs already in place based on 
        enhanced funding contracts covering the fraud investigation 
        function; and (2) counties that have the largest AFDC caseloads 
        as of July 1, 1994, and are not currently participating in the 
        fraud prevention investigation pilot project.  The pilot project 
        may be expanded provided the expansion is budget neutral to the 
        state. 
           Sec. 24.  [256.9850] [IDENTITY VERIFICATION.] 
           The commissioner of human services shall seek from the 
        secretary of Health and Human Services all necessary waivers of 
        the requirements of the program of AFDC, to enable the 
        commissioner to establish a statewide program to test the 
        effectiveness of identity verification systems in the electronic 
        benefit transfer systems in the state AFDC program.  Identity 
        verification provisions shall be added to the statewide requests 
        for proposal on the expansion of electronic benefit transfer 
        systems in the AFDC program. 
           Sec. 25.  [256.986] [COUNTY COORDINATION OF FRAUD CONTROL 
        ACTIVITIES.] 
           (a) The county agency shall prepare and submit to the 
        commissioner of human services by January 1 of each year a plan 
        to coordinate county duties related to the prevention, 
        investigation, and prosecution of fraud in public assistance 
        programs.  Plans may be submitted on a voluntary basis prior to 
        January 1, 1996.  Each county must submit its first annual plan 
        prior to January 1, 1997. 
           (b) Within the limits of appropriations specifically made 
        available for this purpose, the commissioner may make grants to 
        counties submitting plans under paragraph (a) to implement 
        coordination activities. 
           Sec. 26.  Minnesota Statutes 1994, section 256B.0625, 
        subdivision 13, is amended to read: 
           Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
        except for fertility drugs when specifically used to enhance 
        fertility, if prescribed by a licensed practitioner and 
        dispensed by a licensed pharmacist, or by a physician enrolled 
        in the medical assistance program as a dispensing physician.  
        The commissioner, after receiving recommendations from 
        professional medical associations and professional pharmacist 
        associations, shall designate a formulary committee to advise 
        the commissioner on the names of drugs for which payment is 
        made, recommend a system for reimbursing providers on a set fee 
        or charge basis rather than the present system, and develop 
        methods encouraging use of generic drugs when they are less 
        expensive and equally effective as trademark drugs.  The 
        formulary committee shall consist of nine members, four of whom 
        shall be physicians who are not employed by the department of 
        human services, and a majority of whose practice is for persons 
        paying privately or through health insurance, three of whom 
        shall be pharmacists who are not employed by the department of 
        human services, and a majority of whose practice is for persons 
        paying privately or through health insurance, a consumer 
        representative, and a nursing home representative.  Committee 
        members shall serve three-year terms and shall serve without 
        compensation.  Members may be reappointed once.  
           (b) The commissioner shall establish a drug formulary.  Its 
        establishment and publication shall not be subject to the 
        requirements of the administrative procedure act, but the 
        formulary committee shall review and comment on the formulary 
        contents.  The formulary committee shall review and recommend 
        drugs which require prior authorization.  The formulary 
        committee may recommend drugs for prior authorization directly 
        to the commissioner, as long as opportunity for public input is 
        provided.  Prior authorization may be requested by the 
        commissioner based on medical and clinical criteria before 
        certain drugs are eligible for payment.  Before a drug may be 
        considered for prior authorization at the request of the 
        commissioner:  
           (1) the drug formulary committee must develop criteria to 
        be used for identifying drugs; the development of these criteria 
        is not subject to the requirements of chapter 14, but the 
        formulary committee shall provide opportunity for public input 
        in developing criteria; 
           (2) the drug formulary committee must hold a public forum 
        and receive public comment for an additional 15 days; and 
           (3) the commissioner must provide information to the 
        formulary committee on the impact that placing the drug on prior 
        authorization will have on the quality of patient care and 
        information regarding whether the drug is subject to clinical 
        abuse or misuse.  Prior authorization may be required by the 
        commissioner before certain formulary drugs are eligible for 
        payment.  The formulary shall not include:  
           (i) drugs or products for which there is no federal 
        funding; 
           (ii) over-the-counter drugs, except for antacids, 
        acetaminophen, family planning products, aspirin, insulin, 
        products for the treatment of lice, vitamins for adults with 
        documented vitamin deficiencies, and vitamins for children under 
        the age of seven and pregnant or nursing women; 
           (iii) any other over-the-counter drug identified by the 
        commissioner, in consultation with the drug formulary committee, 
        as necessary, appropriate, and cost-effective for the treatment 
        of certain specified chronic diseases, conditions or disorders, 
        and this determination shall not be subject to the requirements 
        of chapter 14; 
           (iv) anorectics; and 
           (v) drugs for which medical value has not been established. 
           The commissioner shall publish conditions for prohibiting 
        payment for specific drugs after considering the formulary 
        committee's recommendations.  
           (c) The basis for determining the amount of payment shall 
        be the lower of the actual acquisition costs of the drugs plus a 
        fixed dispensing fee established by the commissioner, the 
        maximum allowable cost set by the federal government or by the 
        commissioner plus the fixed dispensing fee or the usual and 
        customary price charged to the public.  Actual acquisition cost 
        includes quantity and other special discounts except time and 
        cash discounts.  The actual acquisition cost of a drug shall be 
        estimated by the commissioner, at average wholesale price minus 
        7.6 percent effective January 1, 1994.  The maximum allowable 
        cost of a multisource drug may be set by the commissioner and it 
        shall be comparable to, but no higher than, the maximum amount 
        paid by other third-party payors in this state who have maximum 
        allowable cost programs.  Establishment of the amount of payment 
        for drugs shall not be subject to the requirements of the 
        administrative procedure act.  An additional dispensing fee of 
        $.30 may be added to the dispensing fee paid to pharmacists for 
        legend drug prescriptions dispensed to residents of long-term 
        care facilities when a unit dose blister card system, approved 
        by the department, is used.  Under this type of dispensing 
        system, the pharmacist must dispense a 30-day supply of drug.  
        The National Drug Code (NDC) from the drug container used to 
        fill the blister card must be identified on the claim to the 
        department.  The unit dose blister card containing the drug must 
        meet the packaging standards set forth in Minnesota Rules, part 
        6800.2700, that govern the return of unused drugs to the 
        pharmacy for reuse.  The pharmacy provider will be required to 
        credit the department for the actual acquisition cost of all 
        unused drugs that are eligible for reuse.  Over-the-counter 
        medications must be dispensed in the manufacturer's unopened 
        package.  The commissioner may permit the drug clozapine to be 
        dispensed in a quantity that is less than a 30-day supply.  
        Whenever a generically equivalent product is available, payment 
        shall be on the basis of the actual acquisition cost of the 
        generic drug, unless the prescriber specifically indicates 
        "dispense as written - brand necessary" on the prescription as 
        required by section 151.21, subdivision 2.  Implementation of 
        any change in the fixed dispensing fee that has not been subject 
        to the administrative procedure act is limited to not more than 
        180 days, unless, during that time, the commissioner initiates 
        rulemaking through the administrative procedure act. 
           (d) Until the date the on-line, real-time Medicaid 
        Management Information System (MMIS) upgrade is successfully 
        implemented, as determined by the commissioner of 
        administration, a pharmacy provider may require individuals who 
        seek to become eligible for medical assistance under a one-month 
        spenddown, as provided in section 256B.056, subdivision 5, to 
        pay for services to the extent of the spenddown amount at the 
        time the services are provided.  A pharmacy provider choosing 
        this option shall file a medical assistance claim for the 
        pharmacy services provided.  If medical assistance reimbursement 
        is received for this claim, the pharmacy provider shall return 
        to the individual the total amount paid by the individual for 
        the pharmacy services reimbursed by the medical assistance 
        program.  If the claim is not eligible for medical assistance 
        reimbursement because of the provider's failure to comply with 
        the provisions of the medical assistance program, the pharmacy 
        provider shall refund to the individual the total amount paid by 
        the individual.  Pharmacy providers may choose this option only 
        if they apply similar credit restrictions to private pay or 
        privately insured individuals.  A pharmacy provider choosing 
        this option must inform individuals who seek to become eligible 
        for medical assistance under a one-month spenddown of (1) their 
        right to appeal the denial of services on the grounds that they 
        have satisfied the spenddown requirement, and (2) their 
        potential eligibility for the MinnesotaCare program or the 
        children's health plan. 
           Sec. 27.  Minnesota Statutes 1994, section 256D.01, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [STANDARDS.] (a) A principal objective in 
        providing general assistance is to provide for persons 
        ineligible for federal programs who are unable to provide for 
        themselves.  The minimum standard of assistance determines the 
        total amount of the general assistance grant without separate 
        standards for shelter, utilities, or other needs. 
           (b) The commissioner shall set the standard of assistance 
        for an assistance unit consisting of an adult recipient who is 
        childless and unmarried or living apart from children and spouse 
        and who does not live with a parent or parents or a legal 
        custodian.  When the other standards specified in this 
        subdivision increase, this standard must also be increased by 
        the same percentage. 
           (c) For an assistance unit consisting of a single adult who 
        lives with a parent or parents, the general assistance standard 
        of assistance is the amount that the aid to families with 
        dependent children standard of assistance would increase if the 
        recipient were added as an additional minor child to an 
        assistance unit consisting of the recipient's parent and all of 
        that parent's family members, except that the standard may not 
        exceed the standard for a general assistance recipient living 
        alone.  Benefits received by a responsible relative of the 
        assistance unit under the supplemental security income program, 
        a workers' compensation program, the Minnesota supplemental aid 
        program, or any other program based on the responsible 
        relative's disability, and any benefits received by a 
        responsible relative of the assistance unit under the social 
        security retirement program, may not be counted in the 
        determination of eligibility or benefit level for the assistance 
        unit.  Except as provided below, the assistance unit is 
        ineligible for general assistance if the available resources or 
        the countable income of the assistance unit and the parent or 
        parents with whom the assistance unit lives are such that a 
        family consisting of the assistance unit's parent or parents, 
        the parent or parents' other family members and the assistance 
        unit as the only or additional minor child would be financially 
        ineligible for general assistance.  For the purposes of 
        calculating the countable income of the assistance unit's parent 
        or parents, the calculation methods, income deductions, 
        exclusions, and disregards used when calculating the countable 
        income for a single adult or childless couple must be used. 
           (d) For an assistance unit consisting of a childless 
        couple, the standards of assistance are the same as the first 
        and second adult standards of the aid to families with dependent 
        children program.  If one member of the couple is not included 
        in the general assistance grant, the standard of assistance for 
        the other is the second adult standard of the aid to families 
        with dependent children program. 
           (e) For an assistance unit consisting of all members of a 
        family, the standards of assistance are the same as the 
        standards of assistance that apply to a family under the aid to 
        families with dependent children program if that family had the 
        same number of parents and children as the assistance unit under 
        general assistance and if all members of that family were 
        eligible for the aid to families with dependent children 
        program.  If one or more members of the family are not included 
        in the assistance unit for general assistance, the standards of 
        assistance for the remaining members are the same as the 
        standards of assistance that apply to an assistance unit 
        composed of the entire family, less the standards of assistance 
        for a family of the same number of parents and children as those 
        members of the family who are not in the assistance unit for 
        general assistance.  In no case shall the standard for family 
        members who are in the assistance unit for general assistance, 
        when combined with the standard for family members who are not 
        in the general assistance unit, total more than the standard for 
        the entire family if all members were in an AFDC assistance 
        unit.  A child may not be excluded from the assistance unit 
        unless income intended for its benefit is received from a 
        federally aided categorical assistance program or supplemental 
        security income.  The income of a child who is excluded from the 
        assistance unit may not be counted in the determination of 
        eligibility or benefit level for the assistance unit. 
           (f) An assistance unit consisting of one or more members of 
        a family must have its grant determined using the policies and 
        procedures of the aid to families with dependent children 
        program, except that, until June 30, 1995, in cases where a 
        county agency has developed or approved a case plan that 
        includes reunification with the children, foster care 
        maintenance payments made under state or local law for a child 
        who is temporarily absent from the assistance unit must not be 
        considered income to the child and the payments must not be 
        counted in the determination of the eligibility or benefit level 
        of the assistance unit.  Otherwise, the standard of assistance 
        must be determined according to paragraph (e); the first $50 of 
        total child support received by an assistance unit in a month 
        must be excluded and the balance counted as unearned income; and 
        nonrecurring lump sums received by the family must be considered 
        income in the month received and a resource in the following 
        months.  
           Sec. 28.  Minnesota Statutes 1994, section 256D.03, 
        subdivision 4, is amended to read: 
           Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
        For a person who is eligible under subdivision 3, paragraph (a), 
        clause (3), general assistance medical care covers, except as 
        provided in paragraph (c): 
           (1) inpatient hospital services; 
           (2) outpatient hospital services; 
           (3) services provided by Medicare certified rehabilitation 
        agencies; 
           (4) prescription drugs and other products recommended 
        through the process established in section 256B.0625, 
        subdivision 13; 
           (5) equipment necessary to administer insulin and 
        diagnostic supplies and equipment for diabetics to monitor blood 
        sugar level; 
           (6) eyeglasses and eye examinations provided by a physician 
        or optometrist; 
           (7) hearing aids; 
           (8) prosthetic devices; 
           (9) laboratory and X-ray services; 
           (10) physician's services; 
           (11) medical transportation; 
           (12) chiropractic services as covered under the medical 
        assistance program; 
           (13) podiatric services; 
           (14) dental services; 
           (15) outpatient services provided by a mental health center 
        or clinic that is under contract with the county board and is 
        established under section 245.62; 
           (16) day treatment services for mental illness provided 
        under contract with the county board; 
           (17) prescribed medications for persons who have been 
        diagnosed as mentally ill as necessary to prevent more 
        restrictive institutionalization; 
           (18) case management services for a person with serious and 
        persistent mental illness who would be eligible for medical 
        assistance except that the person resides in an institution for 
        mental diseases; 
           (19) psychological services, medical supplies and 
        equipment, and Medicare premiums, coinsurance and deductible 
        payments; 
           (20) medical equipment not specifically listed in this 
        paragraph when the use of the equipment will prevent the need 
        for costlier services that are reimbursable under this 
        subdivision; and 
           (21) services performed by a certified pediatric nurse 
        practitioner, a certified family nurse practitioner, a certified 
        adult nurse practitioner, a certified obstetric/gynecological 
        nurse practitioner, or a certified geriatric nurse practitioner 
        in independent practice, if the services are otherwise covered 
        under this chapter as a physician service, and if the service is 
        within the scope of practice of the nurse practitioner's license 
        as a registered nurse, as defined in section 148.171. 
           (b) Except as provided in paragraph (c), for a recipient 
        who is eligible under subdivision 3, paragraph (a), clause (1) 
        or (2), general assistance medical care covers the services 
        listed in paragraph (a) with the exception of special 
        transportation services. 
           (c) Gender reassignment surgery and related services are 
        not covered services under this subdivision unless the 
        individual began receiving gender reassignment services prior to 
        July 1, 1995.  
           (d) In order to contain costs, the commissioner of human 
        services shall select vendors of medical care who can provide 
        the most economical care consistent with high medical standards 
        and shall where possible contract with organizations on a 
        prepaid capitation basis to provide these services.  The 
        commissioner shall consider proposals by counties and vendors 
        for prepaid health plans, competitive bidding programs, block 
        grants, or other vendor payment mechanisms designed to provide 
        services in an economical manner or to control utilization, with 
        safeguards to ensure that necessary services are provided.  
        Before implementing prepaid programs in counties with a county 
        operated or affiliated public teaching hospital or a hospital or 
        clinic operated by the University of Minnesota, the commissioner 
        shall consider the risks the prepaid program creates for the 
        hospital and allow the county or hospital the opportunity to 
        participate in the program in a manner that reflects the risk of 
        adverse selection and the nature of the patients served by the 
        hospital, provided the terms of participation in the program are 
        competitive with the terms of other participants considering the 
        nature of the population served.  Payment for services provided 
        pursuant to this subdivision shall be as provided to medical 
        assistance vendors of these services under sections 256B.02, 
        subdivision 8, and 256B.0625.  For payments made during fiscal 
        year 1990 and later years, the commissioner shall consult with 
        an independent actuary in establishing prepayment rates, but 
        shall retain final control over the rate methodology. 
           (d) (e) The commissioner of human services may reduce 
        payments provided under sections 256D.01 to 256D.21 and 261.23 
        in order to remain within the amount appropriated for general 
        assistance medical care, within the following restrictions. 
           For the period July 1, 1985 to December 31, 1985, 
        reductions below the cost per service unit allowable under 
        section 256.966, are permitted only as follows:  payments for 
        inpatient and outpatient hospital care provided in response to a 
        primary diagnosis of chemical dependency or mental illness may 
        be reduced no more than 30 percent; payments for all other 
        inpatient hospital care may be reduced no more than 20 percent.  
        Reductions below the payments allowable under general assistance 
        medical care for the remaining general assistance medical care 
        services allowable under this subdivision may be reduced no more 
        than ten percent. 
           For the period January 1, 1986 to December 31, 1986, 
        reductions below the cost per service unit allowable under 
        section 256.966 are permitted only as follows:  payments for 
        inpatient and outpatient hospital care provided in response to a 
        primary diagnosis of chemical dependency or mental illness may 
        be reduced no more than 20 percent; payments for all other 
        inpatient hospital care may be reduced no more than 15 percent.  
        Reductions below the payments allowable under general assistance 
        medical care for the remaining general assistance medical care 
        services allowable under this subdivision may be reduced no more 
        than five percent. 
           For the period January 1, 1987 to June 30, 1987, reductions 
        below the cost per service unit allowable under section 256.966 
        are permitted only as follows:  payments for inpatient and 
        outpatient hospital care provided in response to a primary 
        diagnosis of chemical dependency or mental illness may be 
        reduced no more than 15 percent; payments for all other 
        inpatient hospital care may be reduced no more than ten 
        percent.  Reductions below the payments allowable under medical 
        assistance for the remaining general assistance medical care 
        services allowable under this subdivision may be reduced no more 
        than five percent.  
           For the period July 1, 1987 to June 30, 1988, reductions 
        below the cost per service unit allowable under section 256.966 
        are permitted only as follows:  payments for inpatient and 
        outpatient hospital care provided in response to a primary 
        diagnosis of chemical dependency or mental illness may be 
        reduced no more than 15 percent; payments for all other 
        inpatient hospital care may be reduced no more than five percent.
        Reductions below the payments allowable under medical assistance 
        for the remaining general assistance medical care services 
        allowable under this subdivision may be reduced no more than 
        five percent. 
           For the period July 1, 1988 to June 30, 1989, reductions 
        below the cost per service unit allowable under section 256.966 
        are permitted only as follows:  payments for inpatient and 
        outpatient hospital care provided in response to a primary 
        diagnosis of chemical dependency or mental illness may be 
        reduced no more than 15 percent; payments for all other 
        inpatient hospital care may not be reduced.  Reductions below 
        the payments allowable under medical assistance for the 
        remaining general assistance medical care services allowable 
        under this subdivision may be reduced no more than five percent. 
           There shall be no copayment required of any recipient of 
        benefits for any services provided under this subdivision.  A 
        hospital receiving a reduced payment as a result of this section 
        may apply the unpaid balance toward satisfaction of the 
        hospital's bad debts. 
           (e) (f) Any county may, from its own resources, provide 
        medical payments for which state payments are not made. 
           (f) (g) Chemical dependency services that are reimbursed 
        under chapter 254B must not be reimbursed under general 
        assistance medical care. 
           (g) (h) The maximum payment for new vendors enrolled in the 
        general assistance medical care program after the base year 
        shall be determined from the average usual and customary charge 
        of the same vendor type enrolled in the base year. 
           (h) (i) The conditions of payment for services under this 
        subdivision are the same as the conditions specified in rules 
        adopted under chapter 256B governing the medical assistance 
        program, unless otherwise provided by statute or rule. 
           Sec. 29.  [256D.045] [SOCIAL SECURITY NUMBER REQUIRED.] 
           To be eligible for general assistance under sections 
        256D.01 to 256D.21, an individual must provide the individual's 
        social security number to the county agency or submit proof that 
        an application has been made.  The provisions of this section do 
        not apply to the determination of eligibility for emergency 
        general assistance under section 256D.06, subdivision 2. 
           Sec. 30.  Minnesota Statutes 1994, section 256D.05, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ASSISTANCE FOR PERSONS WITHOUT A VERIFIED 
        RESIDENCE.] (a) For applicants or recipients of general 
        assistance, emergency general assistance, or work readiness 
        assistance who do not have a verified residence address, the 
        county agency may provide assistance using one or more of the 
        following methods: 
           (1) the county agency may provide assistance in the form of 
        vouchers or vendor payments and provide separate vouchers or 
        vendor payments for food, shelter, and other needs; 
           (2) the county agency may divide the monthly assistance 
        standard into weekly payments, whether in cash or by voucher or 
        vendor payment.  Nothing in this clause prevents the county 
        agency from issuing voucher or vendor payments for emergency 
        general assistance in an amount less than the standards of 
        assistance; and 
           (3) the county agency may determine eligibility and provide 
        assistance on a weekly basis.  Weekly assistance can be issued 
        in cash or by voucher or vendor payment and can be determined 
        either on the basis of actual need or by prorating the monthly 
        assistance standard; and 
           (4) for the purposes of clauses (2) and (3), the county 
        agency may divide the monthly assistance standard as follows:  
        $50 per week for each of the first three weeks, and the 
        remainder for the fourth week. 
           (b) An individual may verify a residence address by 
        providing a driver's license; a state identification card; a 
        statement by the landlord, apartment manager, or homeowner 
        verifying that the individual is residing at the address; or 
        other written documentation approved by the commissioner. 
           (c) Notwithstanding the provisions of section 256D.06, 
        subdivision 1, if the county agency elects to provide assistance 
        on a weekly payment basis, the agency may not provide assistance 
        for a period during which no need is claimed by the individual 
        unless the individual has good cause for failing to claim need.  
        The individual must be notified, each time weekly assistance is 
        provided, that subsequent weekly assistance will not be issued 
        unless the individual claims need.  The advance notice required 
        under section 256D.10 does not apply to weekly assistance that 
        is withheld because the individual failed to claim need without 
        good cause.  
           (d) The county agency may not issue assistance on a weekly 
        basis to an applicant or recipient who has professionally 
        certified mental illness or mental retardation or a related 
        condition, or to an assistance unit that includes minor 
        children, unless requested by the assistance unit. 
           Sec. 31.  [256D.0511] [LUMP-SUM PAYMENTS.] 
           Subdivision 1.  [INELIGIBILITY.] Applicants for general 
        assistance or work readiness who are ineligible for AFDC due to 
        a nonrecurring lump-sum payment or recipients of general 
        assistance or work readiness are ineligible for general 
        assistance and work readiness benefits for the period described 
        below unless the person demonstrates that the lump-sum payment 
        was used for basic needs.  
           Subd. 2.  [BUDGETING LUMP SUMS.] Nonrecurring lump-sum 
        income received by a recipient of general assistance or work 
        readiness assistance must be budgeted in the normal 
        retrospective cycle.  Nonrecurring lump-sum income received by 
        an applicant for general assistance or work readiness who is 
        ineligible for AFDC due to a nonrecurring lump-sum payment is 
        prospectively budgeted. 
           Subd. 3.  [PERIOD OF INELIGIBILITY.] The period of 
        ineligibility determined under the AFDC program shall be used 
        when computing eligibility for applicants for general assistance 
        or work readiness who are ineligible for AFDC due to receipt of 
        a nonrecurring lump-sum payment.  Recipients of general 
        assistance or work readiness who receive nonrecurring lump-sum 
        income shall have their period of ineligibility determined using 
        the AFDC policy defined in section 256.74, subdivision 1. 
           Subd. 4.  [SHORTENING A PERIOD OF INELIGIBILITY.] 
        Applicants for general assistance or work readiness who are 
        ineligible for AFDC due to receipt of a lump sum must cooperate 
        in determining if the AFDC period of ineligibility can be 
        shortened under section 256.74, subdivision 1, as a condition of 
        eligibility for general assistance or work readiness.  For 
        applicants and recipients of general assistance or work 
        readiness, the period of ineligibility must be shortened when 
        the assistance unit provides documentation that part or all of 
        the lump-sum income has been expended for basic needs as defined 
        in subdivision 5. 
           Subd. 5.  [DEFINITIONS.] As used in this section, the 
        following words have the meanings given: 
           (1) "assistance unit," for purposes of applying the 
        lump-sum provision, is defined as all persons whose needs are 
        taken into account in determining eligibility and the amount of 
        assistance payment; and 
           (2) "basic needs" are defined as the minimum personal 
        requirements of subsistence and are restricted to: 
           (i) food; 
           (ii) clothing; 
           (iii) shelter; 
           (iv) utilities; 
           (v) other items of which the loss or lack of is determined 
        by the county agency to pose a direct immediate threat to the 
        physical health or safety of a member of the assistance unit; 
           (vi) education, training, and work expenses necessary to 
        become economically self-sufficient; and 
           (vii) medical expenses.  
           Sec. 32.  [256D.055] [COUNTY DESIGN; WORK FOCUSED PROGRAM.] 
           The commissioner of human services shall issue a request 
        for proposals from counties to submit a plan for developing and 
        implementing a county-designed program.  The plan shall be for 
        first-time applicants for aid to families with dependent 
        children (AFDC) and family general assistance (FGA) and must 
        emphasize the importance of becoming employed and oriented into 
        the work force in order to become self-sufficient.  The plan 
        must target public assistance applicants who are most likely to 
        become self-sufficient quickly with short-term assistance or 
        services such as child care, child support enforcement, or 
        employment and training services.  
           The plan may include vendor payments, mandatory job search, 
        refocusing existing county or provider efforts, or other program 
        features.  The commissioner may approve a county plan which 
        allows a county to use other program funding for the county work 
        focus program in a more flexible manner.  Nothing in this 
        section shall allow payments made to the public assistance 
        applicant to be less than the amount the applicant would have 
        received if the program had not been implemented, or reduce or 
        eliminate a category of eligible participants from the program 
        without legislative approval.  
           The commissioner shall not approve a county plan that would 
        have an adverse impact on the Minnesota family investment plan 
        demonstration.  If the plan is approved by the commissioner, the 
        county may implement the plan.  If the plan is approved by the 
        commissioner, but a federal waiver is necessary to implement the 
        plan, the commissioner shall apply for the necessary federal 
        waivers.  If by July 1, 1996, at least four counties have not 
        proposed a work focused plan, the commissioner of human services 
        may pursue the work first plan as provided under Minnesota 
        Statutes, sections 256.7351 to 256.7359.  However, a county with 
        a work focus plan that has been approved under this section may 
        implement the plan. 
           Sec. 33.  Minnesota Statutes 1994, section 256D.09, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [REPRESENTATIVE PAYEE VENDOR PAYMENTS FOR DRUG 
        DEPENDENT PERSONS.] Notwithstanding subdivision 1, the 
        commissioner shall adopt rules, and may adopt emergency rules, 
        governing the assignment of a representative payee and 
        management of the general assistance or work readiness 
        assistance grant of a drug dependent person as defined in 
        section 254A.02, subdivision 5.  The representative payee is 
        responsible for deciding how the drug dependent person's 
        benefits can best be used to meet that person's needs.  The 
        determination of drug dependency must be made by an assessor 
        qualified under Minnesota Rules, part 9530.6615, subpart 2, to 
        perform an assessment of chemical use.  Upon receipt of the 
        assessor's determination of drug dependency, the county shall 
        determine whether a representative payee will be assigned to 
        manage the person's benefits.  The chemical use assessment, the 
        decision to refer a person for the assessment, and the county 
        determination of whether a representative payee will be assigned 
        are subject to the administrative and judicial review provisions 
        of section 256.045.  However, notwithstanding any provision of 
        section 256.045 to the contrary, an applicant or recipient who 
        is referred for an assessment and is otherwise eligible to 
        receive a general assistance or work readiness benefit, may only 
        be provided with emergency general assistance or vendor payments 
        pending the outcome of an administrative or judicial review.  
        If, at the time of application or at any other time, there is a 
        reasonable basis for questioning whether a person applying for 
        or receiving financial assistance or a work readiness assistance 
        grant is drug dependent, as defined in section 254A.02, 
        subdivision 5, the person may shall be referred for a chemical 
        health assessment, and only emergency assistance payments or 
        general assistance vendor payments may be provided until the 
        assessment is complete and the results of the assessment made 
        available to the county agency.  A reasonable basis 
        for questioning whether a person is drug dependent referring an 
        individual for an assessment exists when: 
           (1) the person has required detoxification two or more 
        times in the past 12 months; 
           (2) the person appears intoxicated at the county agency as 
        indicated by two or more of the following: 
           (i) the odor of alcohol; 
           (ii) slurred speech; 
           (iii) disconjugate gaze; 
           (iv) impaired balance; 
           (v) difficulty remaining awake; 
           (vi) consumption of alcohol; 
           (vii) responding to sights or sounds that are not actually 
        present; 
           (viii) extreme restlessness, fast speech, or unusual 
        belligerence; 
           (3) the person has been involuntarily committed for drug 
        dependency at least once in the past 12 months; or 
           (4) the person has received treatment, including 
        domiciliary care, for drug abuse or dependency at least twice in 
        the past 12 months.  
           The assignment to representative payee status must be 
        reviewed at least every 12 months.  The county agency shall 
        designate the representative payee after consultation with the 
        recipient.  The county agency shall select the representative 
        payee from appropriate individuals, or public or nonprofit 
        agencies, including those suggested by the recipient, but the 
        county agency's designation of representative payee prevails, 
        subject to the administrative and judicial review provisions of 
        section 256.045. 
           The assessment and determination of drug dependency, if 
        any, must be made by an assessor qualified under Minnesota 
        Rules, part 9530.6615, subpart 2, to perform an assessment of 
        chemical use.  The county shall only provide emergency general 
        assistance or vendor payments to an otherwise eligible applicant 
        or recipient who is determined to be drug dependent, except up 
        to 15 percent of the grant amount the person would otherwise 
        receive may be paid in cash.  Notwithstanding subdivision 1, the 
        commissioner of human services shall also require county 
        agencies to provide assistance only in the form of vendor 
        payments to all eligible recipients who assert chemical 
        dependency as a basis for eligibility under section 256D.05, 
        subdivision 1, paragraph (a), clauses (1) and (6). 
           The determination of drug dependency shall be reviewed at 
        least every 12 months.  If the county determines a recipient is 
        no longer drug dependent, the county may cease vendor payments 
        and provide the recipient payments in cash. 
           Sec. 34.  Minnesota Statutes 1994, section 256D.09, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [VENDOR PAYMENTS TO LANDLORDS.] The affected 
        county may require that assistance paid under the emergency 
        general assistance program in the form of a rental unit damage 
        deposit, less any amount retained by the landlord to remedy a 
        tenant's default in payment of rent or other funds due to the 
        landlord pursuant to a rental agreement, or to restore the 
        premises to the condition at the commencement of the tenancy, 
        ordinary wear and tear excepted, be returned to the county when 
        the individual vacates the premises or paid to the recipient's 
        new landlord as a vendor payment.  The vendor payment of 
        returned funds shall not be considered a new use of emergency 
        assistance. 
           Sec. 35.  Minnesota Statutes 1994, section 256D.09, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [RECOVERY OF OVERPAYMENTS.] (a) If an amount of 
        general assistance, family general assistance, or work readiness 
        assistance is paid to a recipient in excess of the payment due, 
        it shall be recoverable by the county agency.  The agency shall 
        give written notice to the recipient of its intention to recover 
        the overpayment. 
           (b) When an overpayment occurs, the county agency shall 
        recover the overpayment from a current recipient by reducing the 
        amount of aid payable to the assistance unit of which the 
        recipient is a member, for one or more monthly assistance 
        payments, until the overpayment is repaid.  All county agencies 
        in the state shall reduce the assistance payment by three 
        percent of the assistance unit's standard of need or the amount 
        of the monthly payment, whichever is less, for all overpayments 
        whether or not the overpayment is due solely to agency error.  
        The amount of this reduction is ten percent, if the overpayment 
        is due solely to having wrongfully obtained assistance, whether 
        based on: 
           (1) a court order; 
           (2) the finding of an administrative fraud disqualification 
        hearing or the waiver of such a hearing; or 
           (3) a confession or judgment containing an admission of an 
        intentional program violation. 
           (c) In cases when there is both an overpayment and 
        underpayment, the county agency shall offset one against the 
        other in correcting the payment. 
           (d) Overpayments may also be voluntarily repaid, in part or 
        in full, by the individual, in addition to the aid reductions 
        provided in this subdivision, until the total amount of the 
        overpayment is repaid. 
           (e) The county agency shall make reasonable efforts to 
        recover overpayments to persons no longer on assistance under 
        standards adopted in rule by the commissioner of human 
        services.  The county 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 
        violating section 256.98. 
           Sec. 36.  [EMPOWERMENT ZONES; ADMINISTRATIVE SIMPLIFICATION 
        OF WELFARE LAWS.] 
           (a) The commissioner of human services shall make 
        recommendations to effectuate the changes in federal laws and 
        regulations, state laws and rules, and the state plan to improve 
        the administrative efficiency of the aid to families with 
        dependent children, general assistance, work readiness, family 
        general assistance, medical assistance, general assistance 
        medical care, and food stamp programs.  At a minimum, the 
        following administrative standards and procedures must be 
        changed. 
           The commissioner shall: 
           (1) require income or eligibility reviews no more 
        frequently than annually for cases in which income is normally 
        invariant, as in aid to families with dependent children cases 
        where the only source of household income is Supplemental Social 
        Security Income; 
           (2) permit households to report income annually when the 
        source of income is excluded, such as a minor's earnings; 
           (3) require income or eligibility reviews no more 
        frequently than annually for extended medical assistance cases; 
           (4) require income or eligibility reviews no more 
        frequently than annually for a medical assistance postpartum 
        client, where the client previously had eligibility under a 
        different basis prior to pregnancy or if other household members 
        have eligibility with the same income/basis that applies to the 
        client; 
           (5) permit all income or eligibility reviews for foster 
        care medical assistance cases to use the short application form; 
           (6) make dependent care expenses declaratory for medical 
        assistance; and 
           (7) permit households to only report gifts worth $100 or 
        more per month. 
           (b) The county's administrative savings resulting from 
        these changes may be allocated to fund any lawful purpose. 
           (c) The recommendations must be provided in a report to the 
        chairs of the appropriate legislative committees by August 1, 
        1995.  The recommendations must include a list of the 
        administrative standards and procedures that require approval by 
        the federal government before implementation, and also which 
        administrative simplification standards and procedures may be 
        implemented by a county prior to receiving a federal waiver. 
           (d) The commissioner shall seek the necessary waivers from 
        the federal government as soon as possible to implement the 
        administrative simplification standards and procedures. 
           Sec. 37.  [EMPOWERMENT ZONES.] 
           Certain local agencies, in consultation with the 
        commissioners of human services and labor and industry shall 
        develop, by December 1, 1995, a plan to improve the employment 
        opportunities available to unemployed and underemployed citizens 
        at risk of becoming public assistance recipients.  The 
        employment activities shall be focused on improving public 
        infrastructure, enhancing the local tax base, improving the 
        quality of available housing, reducing crime, designing 
        strategies for job skill enhancement, strengthening communities, 
        and maintaining and improving natural systems.  The plan shall 
        be developed by the city council, county board, county and city 
        park boards, and the school board of the city or cities in which 
        projects are undertaken.  The plan shall include details of all 
        projects, including:  specific project sites delineated on local 
        maps; estimates of the total public cost required to transform a 
        poverty zone to a highly developable site; a five-, ten-, and 
        15-year economic impact model of the potential new revenue 
        streams created by the project, including income, sales, 
        employment, and property taxes generated, savings from 
        environmental, welfare, and crime mitigation, and other economic 
        benefits; an identification of existing federal, state, and 
        local funding sources for which the projects may qualify; and 
        draft legislation for the 1996 legislature needed to expedite 
        development of the projects.  Organized labor shall be consulted 
        in the development of the plan and implementation of any work 
        activities and the University of Minnesota shall aid in the 
        development of economic and technical support.  Participating 
        jurisdictions shall report back to the chairs of the senate 
        finance and tax committees and the house ways and means and tax 
        committees by August 1, 1995, with an outline for the plan, as 
        identified by the local taxing jurisdictions.  This section will 
        sunset effective June 30, 1997. 
           Sec. 38.  [CHILD CARE SELF-EMPLOYMENT PROJECT.] 
           The commissioners of human services and economic security 
        shall develop a plan for an AFDC grant diversion pilot project 
        in Region 6E, to commence October 1, 1996.  The purpose of the 
        project is to enable AFDC caretakers to become self-sufficient.  
        The Community Action Agency and the Child Care Resource and 
        Referral Agency of that region shall work together to train and 
        place qualified AFDC caretakers in child care centers or 
        licensed family child care homes.  The pilot shall be operated 
        without the use of additional state funds.  Child care 
        development funds available for this region may be used to start 
        up or expand child care services in this region. 
           Sec. 39.  [PARENT'S FAIR SHARE REPORT.] 
           The commissioner of human services shall report to the 
        chairs of the human services policy and funding committees of 
        the legislature by January 15, 1996, recommendations for 
        establishing a statewide employment and training program for 
        unemployed noncustodial parents modeled after the national 
        parent's fair share pilot project.  The report shall include 
        cost estimates and must be developed in consultation with the 
        departments of trade and economic development and economic 
        security, and with counties that participate in the pilot 
        project and other interested counties. 
           Sec. 40.  [PARENT'S FAIR SHARE.] 
           Money appropriated for the Minnesota parent's fair share 
        program must be paid to the participating counties, in the form 
        of quarterly advances, under the terms of the contract between 
        the department and the counties.  Federal JOBS financial 
        participation funds earned by the Minnesota parent's fair share 
        program are appropriated to the commissioner and must be 
        refunded to the participating counties in accordance with the 
        terms of the contracts. 
           Sec. 41.  [PROGRAM INTEGRITY.] 
           Unexpended money appropriated for program integrity 
        initiatives in fiscal year 1996 does not cancel but is available 
        for this purpose in fiscal year 1997. 
           Sec. 42.  [WELFARE REFORM.] 
           Unexpended money appropriated for welfare reform 
        initiatives in fiscal year 1996 does not cancel but is available 
        to the commissioner for those initiatives including work first, 
        work focus, and the temporary county assistance program, in 
        fiscal year 1997. 
           Sec. 43.  [CHILD CARE COOPERATIVES.] 
           A county may collaborate and coordinate efforts with school 
        districts, local youth centers, and other organizations to 
        provide cooperative child care services at a convenient location 
        and provide a low-cost alternative to day care services.  The 
        county may collaborate with the local school district or an 
        organization near a school.  The county is encouraged to explore 
        other nontraditional suitable locations for community day care 
        services and consult with parents and others who are interested 
        in establishing a day care cooperative. 
           Parents must be given an opportunity to participate in the 
        child care cooperatives.  Incentives offered to parents to 
        participate in the cooperative may include reduced day care 
        costs for an appropriate amount of time or a few hours of free 
        child care that provides a parent with a short respite. 
           For purposes of the collaborative effort, the county may 
        request a waiver of Minnesota Rules, part 9565.5025, subpart 2, 
        to implement the program.  This waiver would reduce the barriers 
        the applicant faces when applying for child care by specifically 
        allowing the applicant to initially declare income, instead of 
        being required to document income.  The county may also request 
        a waiver of rules related to day care requirements to provide 
        more flexibility in developing and implementing the cooperative. 
           Sec. 44.  [SEAMLESS CHILD CARE SYSTEM.] 
           The commissioner of human services shall examine the 
        feasibility of implementing a seamless child care system 
        statewide by July 1, 1996.  The seamless child care system must 
        provide a consistent approach to administering child care by 
        consolidating the different child care programs under Minnesota 
        Statutes, chapter 256H, and Minnesota Statutes, section 
        136A.125, streamlining all child care funding available under 
        Minnesota Statutes, chapter 256H, and Minnesota Statutes, 
        section 136A.125, and making consistent the laws and rules to 
        govern the child care system. 
           The commissioner shall report to the legislature by 
        November 1995.  The report must contain recommendations as to 
        how to develop and implement the system statewide, proposed 
        uniform eligibility criteria, a list of necessary federal 
        waivers, a list of the statutes and rules that must be repealed 
        or amended, and an estimate of state and county savings 
        resulting from the reduction in administrative duties. 
           Sec. 45.  [MINNESOTA PARENT'S FAIR SHARE; COMMUNITY WORK 
        EXPERIENCE.] 
           The Minnesota parent's fair share pilot project shall 
        include a community work experience component for participants 
        who fail to comply with the requirements of the pilot project. 
           Sec. 46.  [FEDERAL WAIVER PACKAGE.] 
           Subdivision 1.  [REQUEST.] The commissioner of human 
        services shall make a single request for the waivers listed in 
        this section to the United States Department of Health and Human 
        Services.  The waivers in the package support and encourage AFDC 
        recipients to move from reliance on welfare to 
        self-sufficiency.  The commissioner shall explore alternatives 
        to the federally required waiver evaluation process in an effort 
        to reduce evaluation costs and develop a cost-effective 
        evaluation process for the waiver package in this section.  
        While also exploring other possible alternatives, the 
        commissioner shall investigate the feasibility of the 
        following:  (1) one evaluation for the entire waiver package; 
        (2) consolidation of evaluation efforts for the same or similar 
        waiver with another state; and (3) completion of the evaluation 
        internally, possibly by the office of legislative auditor.  The 
        commissioner shall notify the revisor of statutes when each 
        waiver is approved by the federal government. 
           Subd. 2.  [WAIVER TO DISALLOW PARENTAL INCOME OF A PREGNANT 
        OR PARENTING MINOR LIVING WITH PARENTS.] The commissioner shall 
        seek the following waivers:  (1) from the filing unit 
        requirement in Code of Federal Regulations, title 45, section 
        206.10(a)(1)(vii), for minor parents living with a parent on 
        AFDC with other dependent children, resulting in the minor 
        parent receiving the same separate need standard available if 
        the minor parent's parent was not on AFDC; (2) to disregard all 
        parental income if the parent is on AFDC with other children; 
        and (3) if the parent is not on AFDC with other children, to 
        disregard income equal to 200 percent of the federal poverty 
        guideline for a family size not including the minor parent and 
        the minor parent's child and deem the remainder of income under 
        Code of Federal Regulations, title 45, section 
        233.20(a)(3)(xviii).  The general policy in requesting these 
        waivers is to keep the family intact and give the minor parent, 
        the dependent child, and the grandparent an incentive to 
        continue living together as a family. 
           Subd. 3.  [WAIVER TO ALLOW START WORK OFFSET.] The 
        commissioner shall seek a waiver of the federal regulation which 
        requires the state to recover AFDC overpayments from the 
        assistance unit if the overpayment occurred in the month the 
        assistance unit started working and the overpayment resulted 
        from the assistance unit's increased earnings.  This "start work 
        offset" is available to an assistance unit every two years. 
           Subd. 4.  [WAIVER OF THE 100-HOUR RULE; WORK HISTORY 
        REQUIREMENT; 30-DAY WAITING PERIOD REQUIREMENT.] The 
        commissioner shall seek a waiver to eliminate the 100-hour rule 
        under Code of Federal Regulations, title 45, section 
        233.100(a)(1)(i); the eligibility requirement for past 
        employment history under Code of Federal Regulations, title 45, 
        section 233.100(a)(3)(iii); and the requirement for a 30-day 
        waiting period under Code of Federal Regulations, title 45, 
        section 233.100(a)(3)(i).  
           Subd. 5.  [WAIVER OF MOTOR VEHICLE RESOURCE LIMIT.] The 
        commissioner shall seek a waiver to increase the maximum equity 
        value of a licensed motor vehicle, which can be excluded as a 
        resource under the federal regulations, from $1,500 to the level 
        permitted under the federal Food Stamp Program.  This waiver is 
        essential for AFDC recipients who need reliable transportation 
        to participate in education, work, and training to become 
        self-sufficient. 
           Subd. 6.  [WAIVER TO ALLOW STUDENTS TO EARN INCOME.] The 
        commissioner shall seek a waiver of the federal regulation which 
        includes the earned income of dependent children and minor 
        caretakers who are attending school at least half time when 
        determining eligibility for AFDC.  The commissioner shall also 
        seek a waiver which allows savings set aside in a separate 
        account designated specifically for future education or 
        employment needs to be excluded from the AFDC resource limits. 
           Subd. 7.  [GRANT AMOUNT WAIVER.] The commissioner of human 
        services shall seek federal waivers as necessary in order to 
        adjust AFDC assistance payment amounts so that, notwithstanding 
        the provisions of Minnesota Statutes, section 256.74, 
        subdivision 1, the amount of assistance granted to an eligible 
        family in which all members have resided in Minnesota for less 
        than 12 months shall be the lesser of the maximum payment 
        standard that would have been received by that family from the 
        state of immediate prior residence, or the amount calculated in 
        accordance with Minnesota Rules, parts 9500.2440 to 9500.2480. 
           Subd. 8.  [IMPLEMENTATION.] The commissioner shall 
        implement the program changes authorized under this subdivision 
        promptly upon approval of the waiver, provided all conditions 
        are met under Minnesota Statutes, section 256.01, subdivision 2, 
        clause (12). 
           Subd. 9.  [EVALUATION.] If any of the federal waivers are 
        granted, the commissioner shall evaluate the program changes 
        according to federal waiver requirements and, if necessary, 
        submit reports to the legislature within a time frame consistent 
        with the evaluation criteria that are established. 
           Subd. 10.  [ADDITIONAL WAIVER REQUEST FOR EMPLOYED DISABLED 
        PERSONS.] The commissioner shall seek a federal waiver in order 
        to implement a work incentive for disabled persons eligible for 
        medical assistance who are not residents of long-term care 
        facilities.  The waiver shall request authorization to establish 
        a medical assistance earned income disregard for employed 
        disabled persons who are eligible for SSDI and who receive 
        personal care assistance under the Medical Assistance Program.  
        The disregard shall be equivalent to the threshold amount 
        applied to persons who qualify under section 1619(b) of the 
        Social Security Act, except that when a disabled person's earned 
        income reaches the maximum income permitted at the threshold 
        under section 1619(b), the person shall retain medical 
        assistance eligibility and must contribute to the costs of 
        medical care on a sliding fee basis.  
           Sec. 47.  [MAXIMIZING MAXIS; FRAUD RECOVERY EFFORTS.] 
           The commissioner of human services shall submit a plan to 
        the legislature by December 1, 1995, to maximize the capability 
        of the MAXIS system to aid in fraud control.  The commissioner 
        shall explore ways of using the MAXIS system to establish or 
        expand recovery efforts, certify debts, and collect overpayments 
        due to fraud, client error, or agency error in all state and 
        federally funded public assistance programs.  The commissioner 
        shall also make recommendations for sharing recovered revenues 
        under this program with counties to provide incentives to both 
        the state and county to begin or maintain aggressive recovery 
        efforts. 
           Sec. 48.  [APPROPRIATIONS.] 
           Subdivision 1.  [APPROPRIATIONS.] The appropriations in 
        this section are from the general fund to the commissioner of 
        human services and are available for the biennium ending June 
        30, 1997, unless otherwise specified in the following 
        subdivisions. 
           Subd. 2.  [FOOD STAMP OUTREACH.] $150,000 is appropriated 
        for the food stamp outreach program authorized by Minnesota 
        Statutes, section 256.8799.*  (The preceding subdivision was 
        vetoed by the governor.)  
           Subd. 3.  [MINNESOTA PARENT'S FAIR SHARE PILOT 
        PROJECT.] $800,000 is appropriated for the following purposes: 
           (a) $400,000 for a grant to Ramsey county to enable the 
        county to expand the Minnesota parent's fair share pilot 
        project.  As a condition of this grant, the commissioner may 
        require a local match from the county.  
           (b) $100,000 is added to the appropriation to Anoka county 
        for costs associated with the Minnesota parent's fair share 
        pilot project. 
           (c) $100,000 is added to the appropriation to Dakota county 
        for costs associated with the Minnesota parent's fair share 
        pilot project. 
           (d) $200,000 for costs associated with the mandatory 
        community work experience component of the Minnesota parent's 
        fair share pilot project. 
           Subd. 4.  [INTENSIVE LANGUAGE PROGRAM.] $1,025,000 is 
        appropriated to the commissioner of human services for the 
        purpose of the training and education costs associated with the 
        intensive six-month language program for non-English speaking 
        mandatory STRIDE and CWEP participants, and is available for the 
        fiscal year beginning July 1, 1996.  This appropriation is in 
        addition to any other appropriation for training and education 
        for non-English speaking STRIDE participants.  The commissioner 
        of human services shall consult with the commissioner of 
        education, on a regular basis, in the planning and 
        implementation of the intensive program and shall ensure that 
        funding follows the student to avoid unfunded mandates.  
           Subd. 5.  [INJURY PROTECTION FOR WORK EXPERIENCE 
        PARTICIPANTS.] $351,000 is appropriated to pay for costs 
        associated with the claims arising from the injury protection 
        program, established under Minnesota Statutes, section 256.737. 
           Subd. 6.  [SOCIAL SERVICES EVALUATION.] $660,000 is 
        appropriated to pay for county costs associated with minor 
        caretaker evaluations. 
           Subd. 7.  [AFDC CHILD CARE.] $520,000 is added to the 
        appropriation to pay for child care costs incurred by STRIDE 
        participants under Minnesota Statutes, section 256.736, 
        subdivisions 14a and 20. 
           Subd. 8.  [AFDC GRANTS.] $1,687,000 is added to the 
        appropriation for the aid to families with dependent children 
        program for the fiscal year beginning July 1, 1996. 
           Subd. 9.  [COUNTY COORDINATION OF FRAUD CONTROL 
        ACTIVITIES.] $500,000 is appropriated for grants to counties to 
        implement plans submitted under Minnesota Statutes, section 
        256.986. 
           Subd. 10.  [FRAUD PREVENTION INVESTIGATION PROGRAM.] 
        $500,000 is added to the appropriation to expand the number of 
        counties participating in the fraud prevention investigation 
        program. 
           Subd. 11.  [HUMAN SERVICES ADMINISTRATION.] $1,766,000 is 
        appropriated to pay for administrative costs.  Of this sum, 
        $400,000 is available the first year of the biennium for 
        translation services under Minnesota Statutes, section 256.01, 
        subdivision 13. 
           Subd. 12.  [MA GRANTS.] $50,000 is appropriated for MA 
        grants to implement the waiver for employed disabled persons, 
        and is available for the fiscal year beginning July 1, 1996. 
           Sec. 49.  [REPEALER.] 
           Minnesota Statutes 1994, section 256.734, is repealed. 
           Sec. 50.  [EFFECTIVE DATE.] 
           Sections 3 (99 Hour Rule) and 6 (Start Work Offset) are 
        effective upon federal approval of the applicable waivers.  
        Section 4 (Parenting Minors) is effective October 1, 1995.  
        Sections 20 (256.81, clause (7) only), 29 (256D.045), and 34 
        (256D.09, subdivision 5), are effective July 1, 1996. 
                                   ARTICLE 3
                      WORKING FAMILY CREDITS JOINT VENTURE 
           Section 1.  Minnesota Statutes 1994, section 13.46, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
        a statute specifically provides a different classification, data 
        on individuals collected, maintained, used, or disseminated by 
        the welfare system is private data on individuals, and shall not 
        be disclosed except:  
           (1) pursuant to section 13.05; 
           (2) pursuant to court order; 
           (3) pursuant to a statute specifically authorizing access 
        to the private data; 
           (4) to an agent of the welfare system, including a law 
        enforcement person, attorney, or investigator acting for it in 
        the investigation or prosecution of a criminal or civil 
        proceeding relating to the administration of a program; 
           (5) to personnel of the welfare system who require the data 
        to determine eligibility, amount of assistance, and the need to 
        provide services of additional programs to the individual; 
           (6) to administer federal funds or programs; 
           (7) between personnel of the welfare system working in the 
        same program; 
           (8) the amounts of cash public assistance and relief paid 
        to welfare recipients in this state, including their names and, 
        social security numbers, income, addresses, and other data as 
        required, upon request by the department of revenue to 
        administer the property tax refund law, supplemental housing 
        allowance, early refund of refundable tax credits, and the 
        income tax.  "Refundable tax credits" means the dependent care 
        credit under section 290.067, the Minnesota working family 
        credit under section 290.0671, the property tax refund under 
        section 290A.04, and, if the required federal waiver or waivers 
        are granted, the federal earned income tax credit under section 
        32 of the Internal Revenue Code; 
           (9) to the Minnesota department of economic security for 
        the purpose of monitoring the eligibility of the data subject 
        for reemployment insurance, for any employment or training 
        program administered, supervised, or certified by that agency, 
        or for the purpose of administering any rehabilitation program, 
        whether alone or in conjunction with the welfare system, and to 
        verify receipt of energy assistance for the telephone assistance 
        plan; 
           (10) to appropriate parties in connection with an emergency 
        if knowledge of the information is necessary to protect the 
        health or safety of the individual or other individuals or 
        persons; 
           (11) data maintained by residential facilities as defined 
        in section 245A.02 may be disclosed to the protection and 
        advocacy system established in this state pursuant to Part C of 
        Public Law Number 98-527 to protect the legal and human rights 
        of persons with mental retardation or other related conditions 
        who live in residential facilities for these persons if the 
        protection and advocacy system receives a complaint by or on 
        behalf of that person and the person does not have a legal 
        guardian or the state or a designee of the state is the legal 
        guardian of the person; 
           (12) to the county medical examiner or the county coroner 
        for identifying or locating relatives or friends of a deceased 
        person; 
           (13) data on a child support obligor who makes payments to 
        the public agency may be disclosed to the higher education 
        coordinating board to the extent necessary to determine 
        eligibility under section 136A.121, subdivision 2, clause (5); 
           (14) participant social security numbers and names 
        collected by the telephone assistance program may be disclosed 
        to the department of revenue to conduct an electronic data match 
        with the property tax refund database to determine eligibility 
        under section 237.70, subdivision 4a; 
           (15) the current address of a recipient of aid to families 
        with dependent children may be disclosed to law enforcement 
        officers who provide the name and social security number of the 
        recipient and satisfactorily demonstrate that:  (i) the 
        recipient is a fugitive felon, including the grounds for this 
        determination; (ii) the location or apprehension of the felon is 
        within the law enforcement officer's official duties; and (iii) 
        the request is made in writing and in the proper exercise of 
        those duties; 
           (16) the current address of a recipient of general 
        assistance, work readiness, or general assistance medical care 
        may be disclosed to probation officers and corrections agents 
        who are supervising the recipient, and to law enforcement 
        officers who are investigating the recipient in connection with 
        a felony level offense; 
           (17) information obtained from food stamp applicant or 
        recipient households may be disclosed to local, state, or 
        federal law enforcement officials, upon their written request, 
        for the purpose of investigating an alleged violation of the 
        food stamp act, in accordance with Code of Federal Regulations, 
        title 7, section 272.1(c); or 
           (18) data on a child support obligor who is in arrears may 
        be disclosed for purposes of publishing the data pursuant to 
        section 518.575. 
           (b) Information on persons who have been treated for drug 
        or alcohol abuse may only be disclosed in accordance with the 
        requirements of Code of Federal Regulations, title 42, sections 
        2.1 to 2.67. 
           (c) Data provided to law enforcement agencies under 
        paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
        investigative data and are confidential or protected nonpublic 
        while the investigation is active.  The data are private after 
        the investigation becomes inactive under section 13.82, 
        subdivision 5, paragraph (a) or (b). 
           (d) Mental health data shall be treated as provided in 
        subdivisions 7, 8, and 9, but is not subject to the access 
        provisions of subdivision 10, paragraph (b). 
           Sec. 2.  [JOINT EFFORT; INCENTIVE TO WORK.] 
           The departments of human services and revenue, in 
        consultation with the department of economic security, must 
        jointly develop a plan and seek federal waivers as necessary to 
        develop a pilot project to provide the following tax credits on 
        a monthly basis to eligible working taxpayers eligible to 
        participate in the pilot program:  Minnesota working family 
        credit under section 290.0671, property tax refund under section 
        290A.04, dependent care credit under section 290.067, and, if 
        the required federal waiver or waivers are granted, the federal 
        earned income tax credit under section 32 of the Internal 
        Revenue Code.  The commissioners of human services and revenue 
        shall report on the plan for implementation of the pilot program 
        to the chairs of the human services policy and funding 
        committees, and the chairs of the tax committees of the 
        legislature by January 1, 1996.  
           Sec. 3.  [PILOT PROGRAM:  EARLY REFUND OF REFUNDABLE TAX 
        CREDITS.] 
           Notwithstanding any law to the contrary, the commissioner 
        of revenue may implement a pilot program to run for one calendar 
        year beginning in the first quarter of calendar year 1996, to 
        refund on a monthly basis to persons eligible for the AFDC 
        program under Minnesota Statutes, sections 256.72 to 256.87, 
        MFIP under Minnesota Statutes, sections 256.031 to 256.0361, or 
        persons eligible for the GA program under Minnesota Statutes, 
        sections 256D.01 to 256D.16 as a family assistance unit, an 
        amount based on 50 percent of an estimate of how much the 
        refundable credits of Minnesota Statutes, sections 290.067, 
        290.0671, and 290A.04, and, if the required federal waiver or 
        waivers are granted, section 32 of the Internal Revenue Code, 
        generated in a month exceed the estimated tax imposed under 
        Minnesota Statutes, section 290.06, for the month.  The 
        commissioner of revenue shall use information provided by the 
        commissioner of human services and department of revenue data to 
        estimate the credits and tax for participating taxpayers.  
        Taxpayers eligible for the pilot program must complete a form 
        prepared and distributed by the commissioner of revenue to 
        participate.  The form must request information necessary for 
        administering the program, and must include a statement that the 
        commissioners of human services and revenue will share data 
        relating to program participants as necessary for program 
        administration.  Refunds issued under this program will be 
        considered a tax on the taxpayer for the year in which the 
        credits are generated for the purposes of assessing and 
        collecting overpayments of the credits, except that the 
        commissioner of revenue must abate any interest and penalties 
        generated by the failure to timely repay any overpaid credits.  
        By March 1, 1997, the commissioners of revenue and human 
        services shall report on the implementation of the pilot 
        program, with recommendations to the chairs of the house and 
        senate human services policy and funding committees and to the 
        chairs of the tax committees in both houses. 
           Sec. 4.  [APPROPRIATION; TAX CREDITS.] 
           $100,000 is appropriated from the general fund to the 
        commissioner of revenue for the fiscal year ending June 30, 
        1996, for purposes of implementing sections 1 to 3. 
                                   ARTICLE 4 
                         INCOME SUPPORT AND TRANSITION
           Section 1.  Minnesota Statutes 1994, section 256.035, 
        subdivision 6d, is amended to read: 
           Subd. 6d.  [LENGTH OF JOB SEARCH OBLIGATION TO SEEK AND 
        OBTAIN FULL-TIME EMPLOYMENT.] (a) When the family support 
        agreement specifies a date when job search should begin, the 
        parental caregiver must participate in employment search 
        activities.  If, after three months of search, the parental 
        caregiver does not find a job that is consistent with the 
        parental caregiver's employment goal, the parent must accept any 
        suitable employment.  The search may be extended for up to three 
        months if the parental caregiver seeks and needs additional job 
        search assistance. 
           (b) When the family support agreement specifies job search 
        consistent with the overall employment goal, the caregiver is 
        expected to seek and accept full-time employment.  For this 
        purpose, full-time employment means 30 or more hours a week.  
        Caregivers who are single parents with a child under six satisfy 
        this requirement by working 20 or more hours a week. 
           (c) A caregiver who voluntarily quits suitable employment 
        without good cause or without agreement of the case manager, or 
        who is terminated for nonperformance, must contact the case 
        manager within ten calendar days of the date employment ended to 
        schedule a meeting to revise the family support agreement.  A 
        caregiver who fails to contact the case manager within the 
        required time or fails to attend a scheduled meeting to revise 
        the family support agreement is subject to sanction.  If the 
        revised family support agreement specifies job search, the 
        caregiver must take any suitable employment.  A caregiver who 
        fails to comply is subject to sanction.  A caregiver who 
        voluntarily quits suitable employment with good cause or who is 
        laid off must contact the case manager within ten calendar days 
        of the date employment ended to schedule a meeting to revise the 
        family support agreement.  A caregiver who fails to contact the 
        case manager within the required time or fails to attend a 
        scheduled meeting to revise the family support agreement is 
        subject to sanction.  If the family support agreement specifies 
        job search, the search is limited to three months to find a job 
        related to the caregiver's overall employment goal.  After three 
        months, the caregiver must take any suitable employment.  A 
        caregiver who fails to comply is subject to sanction. 
                                   ARTICLE 5
                               WORK FIRST PROGRAM 
           Section 1.  [256.7351] [WORK FIRST PROGRAM.] 
           Subdivision 1.  [CITATION.] Sections 256.7351 to 256.7359 
        may be cited as the work first program. 
           Subd. 2.  [DEFINITIONS.] As used in sections 256.7351 to 
        256.7359, the following words have the meanings given them. 
           (a) "AFDC" means aid to families with dependent children. 
           (b) "AFDC-UP" means AFDC clients who are eligible for 
        assistance by reason of unemployment as defined by the 
        commissioner under section 256.12, subdivision 14. 
           (c) "Applicant" means an individual who has submitted a 
        request for assistance and has never received an AFDC or FGA 
        grant through the MAXIS computer system as a caretaker, or an 
        applicant whose AFDC or FGA application was denied or benefits 
        were terminated due to noncompliance with work first 
        requirements. 
           (d) "Application date" means the date any Minnesota county 
        agency receives a signed and dated CAF Part I. 
           (e) "CAF" means a combined application form on which people 
        apply for multiple assistance programs including:  aid to 
        families with dependent children, refugee cash assistance, 
        general assistance, work readiness, Minnesota supplemental aid, 
        food stamps, medical assistance, general assistance medical 
        care, emergency assistance, emergency medical assistance, and 
        emergency general assistance medical care. 
           (f) "Caretaker" means a parent or eligible adult, including 
        a pregnant woman, who is part of the assistance unit that has 
        applied for or is receiving an AFDC or FGA grant. 
           (g) "Child support" means a voluntary or court-ordered 
        payment by absent parents in an assistance unit. 
           (h) "Commissioner" means the commissioner of human services.
           (i) "Department" means the department of human services. 
           (j) "Employability development plan" or "EDP" means a plan 
        developed by the applicant, with advice from the employment 
        advisor, for the purposes of identifying an employment goal, 
        improving work skills through certification or education, 
        training or skills recertification, and which addresses barriers 
        to employment. 
           (k) "EDP status report form" means a program form on which 
        deferred participants indicate what has been achieved in the 
        participant's EDP and the types of problems encountered. 
           (l) "Employment advisor" means a program staff who is 
        qualified to assist the participant to develop a job search or 
        employability development plan, match the participant with 
        existing job openings, refer the participant to employers, and 
        has an extensive knowledge of employers in the area. 
           (m) "Financial specialist" means a program staff who is 
        trained to explain the benefits offered under the program, 
        determine eligibility for different assistance programs, and 
        broker other resources from employers and the community. 
           (n) "Job network" means people that a person may contact to 
        learn more about particular companies, inquire about job leads, 
        or discuss one's occupational interests and expertise. 
           (o) "Job search allowance" means the amount of financial 
        assistance needed to support job search. 
           (p) "Job search plan" or "JSP" means the specific plan 
        developed by the applicant, with advice from the employment 
        advisor, to secure a job as soon as possible, and focus the 
        scope of the search process and other activities.  Under the 
        work first program, a job search plan shall meet the 
        requirements for an EDP under section 256.736, subdivision 10, 
        paragraph (a), clause (15). 
           (q) "JSP status report form" means a program form on which 
        participants indicate the number of submitted job applications, 
        job interviews held, jobs offered, other outcomes achieved, 
        problems encountered, and the total number of hours spent on job 
        search per week. 
           (r) "Participant" means a recipient who is required to 
        participate in the work first program. 
           (s) "Program" means the work first program. 
           (t) "Provider" means an employment and training agency 
        certified by the commissioner of economic security under section 
        268.871, subdivision 1. 
           (u) "Self-employment" means employment where people work 
        for themselves rather than an employer, are responsible for 
        their own work schedule, and do not have taxes or FICA withheld 
        by an employer. 
           (v) "Self-sufficiency agreement" means the agreement 
        between the provider or its representative and the applicant 
        that describes the activities that the applicant must conduct 
        and the necessary services and aid to be furnished by the 
        provider to enable the individual to meet the purpose of either 
        the JSP or EDP. 
           (w) "Subsidized job" means a job that is partly reimbursed 
        by the provider for cost of wages for participants in the 
        program. 
           Subd. 3.  [ESTABLISHING WORK FIRST PROGRAM.] The 
        commissioners of human services and economic security may 
        develop and establish pilot projects which require applicants 
        for aid under AFDC under section 256.72, or general assistance 
        program (FGA) under section 256D.05, subdivision 1, clause (15), 
        to meet the requirements of the work first program.  The purpose 
        of the program is to: 
           (1) ensure that the participant is working as early as 
        possible; 
           (2) promote greater opportunity for economic self-support, 
        participation, and mobility in the work force; and 
           (3) minimize the risk for long-term welfare dependency. 
           Subd. 4.  [PROGRAM ADMINISTRATION.] The program must be 
        administered in a way that, in addition to the county agency, 
        other sectors in the community such as employers from the public 
        and private sectors, not-for-profit organizations, educational 
        and social service agencies, labor unions, and neighborhood 
        associations are involved. 
           Subd. 5.  [PROGRAM DESIGN.] The program shall meet the 
        following principles: 
           (1) work is the primary means of economic support; 
           (2) the individuals's potential is reviewed during the 
        application process to determine how to approach the job market 
        aggressively; 
           (3) public aid such as cash and medical assistance, child 
        care, child support assurance, and other cash benefits are used 
        to support intensive job search and immediate work; and 
           (4) maximum use is made of tax credits to supplement income.
           Subd. 6.  [WAIVER REQUESTS.] The department shall request 
        all waivers as soon as possible to implement the program in 
        coordination with section 256D.055, provided that all conditions 
        are met under section 256.01, subdivision 2, clause (12).  Upon 
        obtaining all waivers, the department shall amend the state 
        plans for the AFDC and the Jobs Opportunities and Basic Skills 
        Program (JOBS), and Supportive Services plan to coordinate these 
        programs under the work first program for the pilot counties, 
        and shall seek approval of state plan amendments.  The 
        department shall request all waivers from federal statutes and 
        regulations to qualify the program as a federally approved 
        demonstration project under section 1115 of the Social Security 
        Act. 
           Subd. 7.  [DUTIES OF COMMISSIONER.] In addition to any 
        other duties imposed by law, the commissioner shall:  
           (1) request all waivers to implement the program; 
           (2) establish the program according to sections 256.7351 to 
        256.7359 and allocate money as appropriate to pilot counties 
        participating in the program; 
           (3) provide systems development and staff training; 
           (4) accept and supervise the disbursement of any funds that 
        may be provided from other sources for use in the demonstration 
        program; and 
           (5) direct a study to safeguard the interests of children. 
           Subd. 8.  [DUTIES OF COUNTY AGENCY.] The county agency 
        shall: 
           (1) collaborate with the commissioners of human services 
        and economic security and other agencies to develop, implement, 
        and evaluate the demonstration of the work first program; 
           (2) operate the work first program in partnership with 
        private and public employers, local industry councils, labor 
        unions, and employment, educational, and social service agencies 
        and according to subdivision 4; 
           (3) ensure that program components such as client 
        orientation, immediate job search, job development, creation of 
        temporary public service jobs, job placements, and post 
        placement follow-up are implemented according to the work first 
        program; and 
           (4) for job assignments under section 256.7355 provide 
        written notification to and obtain the written concurrence of 
        the appropriate exclusive bargaining representatives with 
        respect to job duties covered under collective bargaining 
        agreements and ensure that no work assignment under this section 
        results in:  (i) termination, layoff, or reduction of the work 
        hours of an employee for the purpose of hiring an individual 
        under this section; (ii) the hiring of an individual if any 
        other person is on layoff from the same or a substantially 
        equivalent job; (iii) any infringement of the promotional 
        opportunities of any currently employed individual; (iv) the 
        impairment of existing contract for services of collective 
        bargaining agreements; or (v) a participant filling an 
        established unfilled position vacancy, except for on-the-job 
        training under this section.  If there is a dispute between an 
        exclusive bargaining representative and a county or public work 
        employer over whether or not job duties are covered under a 
        collective bargaining agreement, the exclusive bargaining 
        representative, the county, or the public works employer may 
        petition the bureau of mediation services, who shall determine 
        if the job duties are covered by a collective bargaining 
        agreement. 
           Subd. 9.  [DUTIES OF PARTICIPANT.] To be eligible for an 
        AFDC or family GA benefit, a participant shall cooperate with 
        the county agency, the provider, and the participant's employer 
        in all aspects of the program. 
           Sec. 2.  [256.7352] [PROGRAM PARTICIPANTS; PROGRAM 
        EXPECTATIONS.] 
           All applicants selected for participation are expected to 
        meet the requirements under the work first program.  Payments 
        for rent and utilities up to the AFDC or FGA benefits to which 
        the assistance unit is entitled will be vendor paid for as many 
        months as the applicant is eligible or six months, whichever 
        comes first.  The residual amount after vendor payment, if any, 
        will be paid to the AFDC or FGA applicant or recipient, unless 
        it is used as a wage subsidy under section 256.7354, subdivision 
        2. 
           Sec. 3.  [256.7353] [PROGRAM REQUIREMENTS.] 
           Subdivision 1.  [NOTIFICATION OF PROGRAM.] Except for the 
        provisions in this section, the provisions for AFDC and FGA 
        application process shall be followed.  Within two days after 
        the receipt of a completed combined application form, the county 
        agency must refer to the provider the applicant who meets the 
        conditions under section 256.7352, and notify the applicant in 
        writing of the program including the following provisions: 
           (1) notification that, as part of the application process, 
        applicants are required to attend orientation, to be followed 
        immediately by a job search; 
           (2) the program provider, the date, time, and location of 
        the scheduled program orientation; 
           (3) the procedures for qualifying for and receiving 
        benefits under the program; 
           (4) the immediate availability of supportive services, 
        including, but not limited to, child care, transportation, 
        medical assistance, and other work-related aid; and 
           (5) the rights, responsibilities, and obligations of 
        participants in the program, including, but not limited to, the 
        grounds for exemptions and deferrals, the consequences for 
        refusing or failing to participate fully, and the appeal process.
           Subd. 2.  [PROGRAM ORIENTATION.] The provider must give a 
        face-to-face orientation regarding the program to the applicant 
        within five days after the date of application.  The orientation 
        must be designed to inform the applicant of: 
           (1) the importance of locating and obtaining a job as soon 
        as possible; 
           (2) benefits to be provided to support work; 
           (3) the manner by which benefits shall be paid; 
           (4) how other supportive services such as medical 
        assistance, child care, transportation, and other work-related 
        aid shall be available to support job search and work; 
           (5) the consequences for failure without good cause to 
        comply with program requirements; and 
           (6) the appeal process. 
           Subd. 3.  [JOB SEARCH PLAN; EMPLOYMENT ADVISOR; FINANCIAL 
        SPECIALIST.] At the end of orientation, the provider must assign 
        an employment advisor and a financial specialist to the 
        applicant.  With advice from the employment advisor, the 
        applicant must develop a job search plan (JSP) based on existing 
        job markets, prior employment, work experience, and transferable 
        work skills, unless exempt under subdivision 5.  A job search 
        must be planned and conducted for a period of up to eight 
        consecutive weeks from the date of application and for at least 
        32 hours per week.  The types of and target number of job 
        openings to be pursued per week must be written in the job 
        search plan.  The following activities may be included in the 
        job search plan: 
           (1) motivational counseling; 
           (2) job networking or training on how to locate job 
        openings; 
           (3) development of a personal resume; and 
           (4) information on how to conduct job interviews and 
        establish a personal job network. 
           Following the development of the JSP or the employability 
        development plan (EDP) under subdivision 9, the financial 
        specialist must interview the applicant to determine eligibility 
        for and the extent of benefits under sections 256.7356 and 
        256.7357 to support the job search or employability development 
        plan.  The provider must attach to the appropriate plan the 
        summary of the necessary enabling services and benefits to be 
        furnished by the provider.  The provider or its representative 
        and the applicant must sign the plan, with its attachment, to 
        indicate a self-sufficiency agreement between the provider and 
        the participant. 
           Subd. 4.  [IMMEDIATE JOB SEARCH.] An applicant must be 
        required to begin job search within seven days after the date of 
        application for at least 32 hours per week for up to eight 
        weeks, unless exempted under subdivision 5 or deferred under 
        subdivision 9.  For an applicant who is working at least 20 
        hours per week, job search shall consist of 12 hours per week 
        for up to eight weeks.  Within the first five days of job 
        search, the applicant is required to initiate informational 
        contacts with prospective employers, generate additional job 
        leads from the job network, review references and experiences 
        from previous employment, and carry out the other activities 
        under the job search plan developed under subdivision 3. 
           Subd. 5.  [EXEMPTION CATEGORIES.] The applicant will be 
        exempted from the job search requirements and development of JSP 
        and EDP under subdivisions 3, 4 and 8 if the applicant belongs 
        to any of the following groups: 
           (1) caretakers under age 20 who have not completed a high 
        school education and are attending high school on a full-time 
        basis; 
           (2) individuals who are age 60 or older; 
           (3) individuals who are suffering from a professionally 
        certified permanent or temporary illness, injury, or incapacity 
        which is expected to continue for more than 30 days and which 
        prevents the person from obtaining or retaining employment; 
           (4) caretakers whose presence in the home is needed because 
        of illness or incapacity of another member in the household; 
           (5) women who are pregnant, if it has been medically 
        verified that the child is expected to be born within the next 
        six months; 
           (6) caretakers or other caretaker relatives of a child 
        under the age of three who personally provide full-time care for 
        the child; 
           (7) individuals employed at least 30 hours per week; 
           (8) individuals for whom participation would require a 
        round trip commuting time by available transportation of more 
        than two hours, excluding transporting of children for child 
        care; 
           (9) individuals for whom lack of proficiency in English is 
        a barrier to employment, provided such individuals are 
        participating in an intensive program which lasts no longer than 
        six months and is designed to remedy their language deficiency; 
        individuals who, because of advanced age or lack of ability, are 
        incapable of gaining proficiency in English, as determined by 
        the county social worker, shall continue to be exempt under this 
        subdivision and are not subject to the requirement that they be 
        participating in a language program; 
           (10) individuals under such duress that they are incapable 
        of participating in the program, as determined by the county 
        social worker; or 
           (11) individuals in need of refresher courses for purposes 
        of obtaining professional certification or licensure. 
           Subd. 6.  [AFDC-UP APPLICANTS.] All applicants and 
        recipients under the AFDC-UP program will be required to meet 
        the requirements in the community work experience program under 
        section 256.737, instead of the requirements in subdivisions 4 
        to 14.  
           Subd. 6a.  [DESIGNATED PARTICIPANT IN FGA FAMILIES.] Unless 
        all adult members of an FGA family are exempt under section 
        256.7343, subdivision 1, one adult in the family must be 
        designated to participate in all the requirements under this 
        section.  If the household contains more than one exempt adult, 
        the adults may determine which adult must participate.  If no 
        designation is made or if the adults cannot agree, the county 
        shall designate the adult having earned the greater income, 
        including in-kind income, during the 24-month period immediately 
        preceding the month of application for general assistance, as 
        the adult that must participate.  When there are no earnings or 
        when earnings are identical for each adult, the county agency 
        shall designate which adult must participate. 
           Subd. 7.  [COUNTY DUTIES.] The county must act on the 
        application within 30 days of the application date.  If the 
        applicant is not eligible, the application will be denied and 
        the county must notify the applicant of the denial in writing.  
        An applicant whose application has been denied may be allowed to 
        complete the job search plan; however, supportive services will 
        not be provided. 
           Subd. 8.  [JOB SEARCH STATUS REPORT.] The applicant or 
        participant must submit a completed JSP status report form to 
        the employment advisor every two weeks during the job search 
        process, with the first completed form due 21 days after the 
        date of application. 
           Subd. 9.  [EMPLOYABILITY DEVELOPMENT PLAN.] At the 
        discretion and approval of the employment advisor, the applicant 
        may be deferred from the requirement to conduct at least 32 
        hours of job search per week for up to eight consecutive weeks, 
        if during the development of the job search plan, the applicant 
        is determined to: 
           (1) not have worked within the past 12 months and not have 
        a high school or a general equivalency diploma provided the 
        applicant agrees to develop and carry out an EDP instead of job 
        search, and concurrently work for at least 16 hours per week in 
        a temporary public service job.  The EDP must include the 
        employment goals and specific outcomes the participant must 
        achieve; 
           (2) be within six months of completing any post-secondary 
        training program, provided that the applicant agrees to develop 
        and carry out an EDP instead of a job search, and concurrently 
        work for a minimum number of hours per week in a temporary 
        public service job.  The EDP must include the employment goal 
        and specific outcomes that the participant must achieve.  The 
        applicant that is deferred under this subdivision may choose to 
        work in a job other than a public service job for a minimum 
        number of hours per week rather than in a temporary public 
        service job.  For individuals who are participating in an 
        educational program under this paragraph and who are attending 
        school full time as determined by the institution there is no 
        work requirement.  
           For individuals participating in an educational program on 
        a part-time basis as determined by the institution, the minimum 
        number of hours that a participant must work shall be decreased 
        as the participant increases the number of credit hours taken, 
        except that the participant shall not be required to work more 
        than eight hours per week.  
           During vacation periods of one month or more, the 16-hour 
        per week minimum work requirement shall apply. 
        The applicant may be deferred for up to six months.  At the end 
        of the deferment period, the participant must develop a job 
        search plan and conduct at least 32 hours of job search per week 
        for up to eight consecutive weeks, and submit reports as 
        required under subdivisions 3 and 4; or 
           (3) be in treatment for chemical dependency, be a victim of 
        domestic abuse, or be homeless, provided that the applicant 
        agrees to develop an EDP instead of a JSP, and immediately 
        follow through with the activities in the EDP.  The EDP must 
        include specific outcomes that the applicant must achieve for 
        the duration of the EDP and activities which are needed to 
        address the issues identified.  Under this clause, the applicant 
        may be deferred for up to eight weeks. 
           Subd. 10.  [EDP STATUS REPORT.] The participant who is 
        deferred from job search under subdivision 9 must submit a 
        completed EDP status report form to the employment advisor every 
        14 days as long as the participant continues to be deferred, 
        with the first completed form due 21 days after the date of 
        application. 
           Subd. 11.  [JOB OFFER.] The participant must not refuse any 
        job offer, provided that the job is within the participant's 
        physical and mental abilities, pays hourly gross wages of not 
        less than the applicable state or federal minimum wage, and 
        meets health and safety standards set by federal, state, and 
        local agencies.  If a job is offered, the participant must 
        inform the provider immediately to redetermine eligibility for 
        and extent of benefits and services to support work.  To enhance 
        job retention, the provider may provide services such as 
        motivational counseling or on-site problem solving for up to six 
        months.  The participant who has completed at least six months 
        of work in a nonsubsidized job shall be encouraged to 
        participate in a training program that would improve the 
        participant's ability to obtain a job that pays a higher wage. 
           Subd. 12.  [DUTY TO REPORT.] The participant must 
        immediately inform the provider regarding any changes related to 
        the participant's employment status. 
           Subd. 13.  [REQUIREMENT TO WORK IN A TEMPORARY PUBLIC 
        SERVICE JOB.] (a) If after the completion of the maximum eight 
        weeks of job search the participant has failed to secure a 
        nonsubsidized or a subsidized job for at least 32 hours per 
        week, or does not earn a net income from self-employment that is 
        equal to at least the AFDC or FGA monthly grant for the 
        household size, whichever is applicable, the participant is 
        required to work in a temporary public service job for up to 67 
        working days for (1) at least 32 hours per week, or (2) a period 
        equivalent to the result of dividing the AFDC or FGA grant 
        amount which the participant would otherwise receive, whichever 
        is applicable, by the federal hourly minimum wage, or applicable 
        hourly state minimum wage, or the hourly rate of pay for 
        individuals employed in the same occupation at the site, 
        whichever is highest.  If the result is more than 128 hours per 
        month, the participant's requirement to work in a temporary 
        public service job shall not be more than 32 hours per week. 
           (b) Within seven days from the date of application, the 
        participant that is deferred under subdivision 9, clause (1) or 
        (2), and is participating in an educational program on a 
        part-time basis must work in a temporary public service job as 
        required under subdivision 9, clause (2).  
           (c) The provider shall strive to match the profile of the 
        participant with the needs of the employers that are 
        participating in a temporary jobs program under section 256.7355.
           Subd. 14.  [TERMINATION OF WORK ASSIGNMENT.] Work 
        assignments are governed by section 256.7341. 
           Sec. 4.  [256.7354] [JOB DEVELOPMENT AND SUBSIDY.] 
           Subdivision 1.  [JOB INVENTORY.] The provider must develop 
        an inventory of job openings including full-time, part-time, 
        permanent, temporary or seasonal, and training positions, in 
        partnership with private and public employers, local industry 
        councils, and employment agencies.  To the extent possible, the 
        inventory must include specific information regarding job 
        openings, must be updated on a weekly basis, and must be 
        available to all participants on a daily basis. 
           Subd. 2.  [JOB SUBSIDY.] The county may use all or part of 
        AFDC or FGA benefits as a subsidy to employers for the purpose 
        of providing work experience or training to the participant who 
        has completed the job search plan, provided that (1) the job to 
        be subsidized is permanent and full time, and pays an hourly 
        rate of at least $6 per hour; (2) the employer agrees to retain 
        the participant after satisfactory completion of the work 
        experience or training period; and (3) the participant has first 
        tried to secure a nonsubsidized job by following the job search 
        plan.  The subsidy may be available for up to six months. 
           Sec. 5.  [256.7355] [TEMPORARY JOBS PROGRAM.] 
           Subdivision 1.  [PROGRAM ESTABLISHED.] The provider must 
        establish and operate a program to provide temporary jobs to 
        participants who, after eight weeks of job search, are not hired 
        into a nonsubsidized or a subsidized job, or are deferred under 
        section 256.7353, subdivision 9.  The temporary jobs to be 
        created under this section must be public service jobs that 
        serve a useful public service such as:  health, social service, 
        environmental protection, education, urban and rural development 
        and redevelopment, welfare, recreation, public facilities, 
        public safety, community service, services to the aged or 
        disabled citizens, and child care. 
           Subd. 2.  [ASSIGNMENT TO TEMPORARY PUBLIC SERVICE 
        JOBS.] The provider must assign the participant that is within 
        completion of the required eight weeks of job search and has 
        failed to secure a nonsubsidized or a subsidized job for at 
        least 32 hours per week, or does not earn a net income from 
        self-employment that is equal to at least the AFDC or FGA 
        monthly grant for the household size, whichever is applicable, 
        to a temporary public service job.  The assignment must be made 
        seven days before the end of the job search and be based on 
        section 256.7353, subdivision 13.  The participant that is 
        deferred under section 256.7353, subdivision 9, will be assigned 
        by the provider to a temporary public service job within seven 
        days after the application. 
           Subd. 3.  [PARTICIPANT'S STATUS.] The participant who is 
        working in a temporary public service job under this section is 
        not considered an employee for the purposes of unemployment 
        insurance compensation, retirement, or civil service laws, and 
        shall not perform work ordinarily performed by a public employee.
           Subd. 4.  [CONTINUOUS JOB SEARCH REQUIREMENT.] At the 
        discretion of the employer or the provider, the participant who 
        is working in a temporary public service job under section 
        256.7353, subdivision 13, may be required to continue to look 
        for a job for up to eight hours per week.  
           Subd. 5.  [EXCUSED ABSENCES.] The participant who is 
        working in a temporary public service job may be allowed excused 
        absences from the assigned temporary job site up to eight hours 
        per month.  For the purposes of this subdivision, "excused 
        absence" means absence due to temporary illness or injury of the 
        caretaker or a member of the caretaker's family, the 
        unavailability of licensed child care or unavailability of 
        transportation needed to go to and from the work site, a job 
        interview, or a nonmedical emergency.  For the purposes of this 
        subdivision, "emergency" means a sudden, unexpected occurrence 
        or situation of a serious or urgent nature that requires action. 
           Subd. 6.  [MOVE TO A DIFFERENT COUNTY.] If the applicant or 
        recipient who is required to participate in the work first 
        program moves to a different county in Minnesota, the benefits 
        and enabling services agreed upon in the self-sufficiency 
        agreement shall be provided by the pilot county where the 
        applicant or recipient originated, so long as the move was part 
        of the job search or employability development plan.  If the 
        applicant or recipient is moving to a different county for 
        failure to comply with the requirement of the work first 
        program, the applicant or recipient will not be eligible for 
        AFDC or FGA in Minnesota for at least six months from the date 
        of the move. 
           Sec. 6.  [256.7356] [TRANSITIONAL BENEFITS TO SUPPORT WORK; 
        RENT AND UTILITIES VENDOR PAYMENT.] 
           Payments for rent and utilities up to the amount of AFDC or 
        FGA benefits to which the assistance unit is entitled shall be 
        provided in the form of vendor payments for as many months as 
        the applicant is eligible or six months, whichever comes first.  
        The residual amount after vendor payment, if any, will be paid 
        to the AFDC or FGA recipient, unless it is used as a wage 
        subsidy under section 256.7344, subdivision 2.  This provision 
        shall apply to all applicants including those meeting the 
        exemption categories under section 256.7353, subdivision 5, or 
        deferral categories under section 256.7353, subdivision 9.  To 
        the extent needed, a job search allowance shall be provided for 
        up to eight weeks to cover expenses related to the job search.  
        Before the job search allowance is issued, it must be approved 
        by the employment advisor and financial specialist, and clearly 
        described in the job search. 
           Sec. 7.  [256.7357] [ELIGIBILITY FOR FOOD STAMPS, MEDICAL 
        ASSISTANCE, AND CHILD CARE.] 
           The participant shall be treated as an AFDC or FGA 
        recipient for food stamps, medical assistance, and child care 
        eligibility purposes.  As with an AFDC recipient, the 
        participant who leaves the program as a result of increased 
        earnings from employment shall be eligible for transitional 
        medical assistance and child care. 
           Sec. 8.  [256.7358] [SANCTIONS AND APPEAL PROCESS.] 
           Subdivision 1.  [GOOD CAUSE.] (a) For the purpose of this 
        subdivision, "good cause" means absence due to temporary illness 
        or injury of the participant or a member of the participant's 
        family; the unavailability of licensed child care or 
        unavailability of transportation needed to attend orientation or 
        conduct job search; or a nonmedical emergency as defined under 
        section 256.7353, subdivision 5. 
           (b) The applicant who is required, but fails, without good 
        cause, to participate in orientation, complete the JSP or EDP, 
        and comply with the job search requirements under section 
        256.7353 prior to being eligible for AFDC or FGA shall be denied 
        AFDC or FGA benefits.  The applicant will not be eligible for 
        AFDC or FGA benefits in Minnesota for at least six months.  
           (c) Following participation in the orientation, completion 
        of JSP or EDP and participation in job search under section 
        256.7353, but before being determined eligible for AFDC or FGA 
        recipients in AFDC-UP cases who are subject to the vendor 
        payment provisions under section 256.7356 are subject to the job 
        search, work experience, and sanction provisions of sections 
        256.736, subdivision 14, and 256.737 and not the job search and 
        work provisions under work first. 
           (d) If, after receiving a written warning from the county, 
        the participant fails without good cause, to conduct at least 32 
        hours of job search per week in any given two-week period, the 
        participant will be immediately required to work for at least 16 
        hours per week in a temporary public service job.  The required 
        32 hours per week of job search will be reduced to 16 hours. 
           (e) If the participant who is deferred under section 
        256.7353, subdivision 9, fails to comply with the activities 
        described in the EDP, the participant will lose the deferment 
        status, provided that the participant has received at least two 
        written warnings from the provider. 
           (f) If the participant refuses to work in a temporary 
        public service job, or is terminated from a temporary public 
        service job for failure to work, benefits to the assistance unit 
        shall be terminated and the participant shall not be eligible 
        for aid under the AFDC or FGA program for at least six months 
        from the date of refusal or termination.  If the participant 
        before completing at least four consecutive months of employment 
        voluntarily quits or is terminated from a nonsubsidized or a 
        subsidized job, the participant shall immediately be assigned to 
        work in a temporary public service job for at least 32 hours per 
        week for up to 67 working days unless the participant is hired 
        or rehired into a nonsubsidized or subsidized job. 
           Subd. 2.  [NOTICE OF SANCTIONS.] If the county determines 
        that the participant has failed or refused without good cause as 
        defined in subdivision 1, to cooperate with the program 
        requirements, the county shall inform the participant in writing 
        of its intent to impose an applicable sanction listed under 
        subdivision 1 and the opportunity to have a conciliation 
        conference upon request and within five days of receipt of the 
        notice before a sanction is imposed.  
           Sec. 9.  [256.7359] [FUNDING.] 
           Subdivision 1.  [BLOCK GRANT.] A block grant to fund the 
        entire program including, but not limited to, the costs for 
        program administration and provision of cash benefits and 
        program services including the entire costs of vendor payments 
        made on behalf of clients and the entire cost of the temporary 
        jobs program, will be paid to the county agency or provider 
        participating in the work first program.  Counties may request 
        additional funds if there are unexpected increases in caseload. 
           Subd. 2.  [LEVERAGING GRANT AMOUNT TO SECURE OTHER 
        FUNDS.] The county agency or the provider in cooperation with 
        the department may leverage the grant amount to secure other 
        funds from employers, foundations, and the community for the 
        purpose of developing additional components to benefit children 
        and improve the program. 
           Subd. 3.  [EMPLOYER REIMBURSEMENT.] The employer shall be 
        reimbursed for wages paid to participants under section 
        256.7354, subdivision 2. 
           Sec. 10.  [APPROPRIATION; WORK FOCUS; WORK FIRST PROGRAM.] 
           $1,025,000 is appropriated from the general fund to the 
        commissioner of human services for the biennium ending June 30, 
        1997, for purposes of implementing the work focus program under 
        Minnesota Statutes, section 256D.055, and work first in sections 
        1 to 9. 
                                   ARTICLE 6
                     GENERAL ASSISTANCE AND WORK READINESS
                          FOOD STAMP WORK AND TRAINING
           Section 1.  Minnesota Statutes 1994, section 256D.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY.] (a) Each person or family 
        whose income and resources are less than the standard of 
        assistance established by the commissioner and who is a resident 
        of the state shall be eligible for and entitled to general 
        assistance if the person or family is: 
           (1) a person who is suffering from a professionally 
        certified permanent or temporary illness, injury, or incapacity 
        which is expected to continue for more than 30 days and which 
        prevents the person from obtaining or retaining employment; 
           (2) a person whose presence in the home on a substantially 
        continuous basis is required because of the professionally 
        certified illness, injury, incapacity, or the age of another 
        member of the household; 
           (3) a person who has been placed in, and is residing in, a 
        licensed or certified facility for purposes of physical or 
        mental health or rehabilitation, or in an approved chemical 
        dependency domiciliary facility, if the placement is based on 
        illness or incapacity and is pursuant to a plan developed or 
        approved by the county agency through its director or designated 
        representative; 
           (4) a person who resides in a shelter facility described in 
        subdivision 3; 
           (5) a person not described in clause (1) or (3) who is 
        diagnosed by a licensed physician, psychological practitioner, 
        or other qualified professional, as mentally retarded or 
        mentally ill, and that condition prevents the person from 
        obtaining or retaining employment; 
           (6) a person who has an application pending for, or is 
        appealing termination of benefits from, the social security 
        disability program or the program of supplemental security 
        income for the aged, blind, and disabled, provided the person 
        has a professionally certified permanent or temporary illness, 
        injury, or incapacity which is expected to continue for more 
        than 30 days and which prevents the person from obtaining or 
        retaining employment; 
           (7) a person who is unable to obtain or retain employment 
        because advanced age significantly affects the person's ability 
        to seek or engage in substantial work; 
           (8) a person who, following participation in the work 
        readiness program, completion of an individualized employability 
        assessment by the work readiness service provider, and 
        consultation between the county agency and the work readiness 
        service provider, the work readiness service provider determines 
        is not employable. has been assessed by a vocational specialist 
        and, in consultation with the county agency, has been determined 
        to be unemployable for purposes of this item, a person is 
        considered employable if the county agency determines that there 
        exist positions of employment in the local labor market, 
        regardless of the current availability of openings for those 
        positions, that the person is capable of performing.  The 
        person's eligibility under this category must be reassessed at 
        least annually by the county agency and must be based upon the 
        results of a new individualized employability assessment 
        completed by the work readiness service provider.  The recipient 
        shall, if otherwise eligible, continue to receive general 
        assistance while the annual individualized employability 
        assessment is completed by the work readiness service provider, 
        rather than receive work readiness payments under section 
        256D.051.  Subsequent eligibility for general assistance is 
        dependent upon the county agency determining, following 
        consultation with the work readiness service provider, that the 
        person is not employable, or the person meeting the requirements 
        of another general assistance category of eligibility;.  The 
        county agency must provide notice to the person not later than 
        30 days before annual eligibility under this item ends, 
        informing the person of the date annual eligibility will end and 
        the need for vocational assessment if the person wishes to 
        continue eligibility under this clause.  For purposes of 
        establishing eligibility under this clause, it is the 
        applicant's or recipient's duty to obtain any needed vocational 
        assessment; 
           (9) a person who is determined by the county agency, in 
        accordance with emergency and permanent rules adopted by the 
        commissioner, to be learning disabled, provided that if a 
        rehabilitation plan for the person is developed or approved by 
        the county agency, the person is following the plan; 
           (10) a child under the age of 18 who is not living with a 
        parent, stepparent, or legal custodian, but only if:  the child 
        is legally emancipated or living with an adult with the consent 
        of an agency acting as a legal custodian; the child is at least 
        16 years of age and the general assistance grant is approved by 
        the director of the county agency or a designated representative 
        as a component of a social services case plan for the child; or 
        the child is living with an adult with the consent of the 
        child's legal custodian and the county agency.  For purposes of 
        this clause, "legally emancipated" means a person under the age 
        of 18 years who:  (i) has been married; (ii) is on active duty 
        in the uniformed services of the United States; (iii) has been 
        emancipated by a court of competent jurisdiction; or (iv) is 
        otherwise considered emancipated under Minnesota law, and for 
        whom county social services has not determined that a social 
        services case plan is necessary, for reasons other than that the 
        child has failed or refuses to cooperate with the county agency 
        in developing the plan; 
           (11) a woman in the last trimester of pregnancy who does 
        not qualify for aid to families with dependent children.  A 
        woman who is in the last trimester of pregnancy who is currently 
        receiving aid to families with dependent children may be granted 
        emergency general assistance to meet emergency needs; 
           (12) a person who is eligible for displaced homemaker 
        services, programs, or assistance under section 268.96, but only 
        if that person is enrolled as a full-time student; 
           (13) a person who lives more than two hours round-trip 
        traveling time from any potential suitable employment; 
           (14) a person who is involved with protective or 
        court-ordered services that prevent the applicant or recipient 
        from working at least four hours per day; 
           (15) (i) a family as defined in section 256D.02, 
        subdivision 5, which is ineligible for the aid to families with 
        dependent children program.  If all children in the family are 
        six years of age or older, or if suitable child care is 
        available for children under age six at no cost to the family, 
        all the adult members of the family must register for and 
        cooperate in the work readiness program under section 256D.051.  
        If one or more of the children is under the age of six and 
        suitable child care is not available without cost to the family, 
        all the adult members except one adult member must register for 
        and cooperate with the work readiness program under section 
        256D.051.  The adult member who must participate in the work 
        readiness program is the one having earned the greater of the 
        incomes, excluding in-kind income, during the 24-month period 
        immediately preceding the month of application for assistance.  
        When there are no earnings or when earnings are identical for 
        each adult, the applicant must designate the adult who must 
        participate in work readiness and that designation must not be 
        transferred or changed after program eligibility is determined 
        as long as program eligibility continues without an interruption 
        of 30 days or more.  The adult members required to register for 
        and cooperate with the work readiness program are not eligible 
        for financial assistance under section 256D.051, except as 
        provided in section 256D.051, subdivision 6, and shall be 
        included in the general assistance grant.  If an adult member 
        fails to cooperate with requirements of section 256D.051, the 
        local agency shall not take that member's needs into account in 
        making the grant determination as provided by the termination 
        provisions of section 256D.051, subdivision 1a, paragraph (b).  
        The time limits of section 256D.051, subdivision 1, do not apply 
        to persons eligible under this clause; (ii) unless all adults in 
        the family are exempt under section 256D.051, subdivision 3a, 
        one adult in the family must participate in and cooperate with 
        the food stamp employment and training program under section 
        256D.051 each month that the family receives general assistance 
        benefits.  If the household contains more than one nonexempt 
        adult, the adults may determine which adult must participate.  
        The designation may be changed once annually at the annual 
        redetermination of eligibility.  If no designation is made or if 
        the adults cannot agree, the county agency shall designate the 
        adult having earned the greater of the incomes, including 
        in-kind income, during the 24-month period immediately preceding 
        the month of application for general assistance, as the adult 
        that must participate.  When there are no earnings or when 
        earnings are identical for each adult, the county agency shall 
        designate which adult must participate.  The recipient's 
        participation must begin on the first day of the first full 
        month following the determination of eligibility for general 
        assistance benefits.  To the extent of available resources, and 
        with the county agency's consent, the recipient may voluntarily 
        continue to participate in food stamp employment and training 
        services for up to three additional consecutive months 
        immediately following termination of general assistance benefits 
        in order to complete the provisions of the recipient's 
        employability development plan.  If the adult member fails 
        without good cause to participate in or cooperate with the food 
        stamp employment and training program, the county agency shall 
        concurrently terminate that person's eligibility for general 
        assistance and food stamps for two months or until compliance is 
        achieved, whichever is shorter, using the notice, good cause, 
        conciliation and termination procedures specified in section 
        256D.051; or 
           (16) a person over age 18 whose primary language is not 
        English and who is attending high school at least half time. 
           (b) Persons or families who are not state residents but who 
        are otherwise eligible for general assistance may receive 
        emergency general assistance to meet emergency needs. 
           (c) As a condition of eligibility under paragraph (a), 
        clauses (1), (3), (5), (8), and (9), the recipient must complete 
        an interim assistance agreement and must apply for other 
        maintenance benefits as specified in section 256D.06, 
        subdivision 5, and must comply with efforts to determine the 
        recipient's eligibility for those other maintenance benefits.  
           (d) The burden of providing documentation for a county 
        agency to use to verify eligibility for general assistance or 
        work readiness for exemption from the food stamp employment and 
        training program is upon the applicant or recipient.  The county 
        agency shall use documents already in its possession to verify 
        eligibility, and shall help the applicant or recipient obtain 
        other existing verification necessary to determine eligibility 
        which the applicant or recipient does not have and is unable to 
        obtain. 
           Sec. 2.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WORK REGISTRATION FOOD STAMP EMPLOYMENT 
        AND TRAINING PROGRAM.] (a) Except as provided in this 
        subdivision, persons who are residents of the state and whose 
        income and resources are less than the standard of assistance 
        established by the commissioner, but who are not categorically 
        eligible under section 256D.05, subdivision 1, are eligible for 
        the work readiness program for The commissioner shall implement 
        a food stamp employment and training program in order to meet 
        the food stamp employment and training participation 
        requirements of the United States Department of Agriculture.  
        Unless all adult members of the food stamp household are exempt 
        under subdivision 3a, one nonexempt adult recipient in each 
        household must participate in the food stamp employment and 
        training program each month that the household is eligible for 
        food stamps, up to a maximum period of six calendar months 
        during any 12 consecutive calendar month period, subject to the 
        provisions of paragraph (d), subdivision 3, and section 
        256D.052, subdivision 4.  If the household contains more than 
        one nonexempt adult, the adults may determine which adult must 
        participate.  The designation may be changed only once annually 
        at the annual redetermination of eligibility.  If no designation 
        is made or if the adults cannot agree, the county agency shall 
        designate the adult having earned the greater of the incomes, 
        including in-kind income, during the 24-month period immediately 
        preceding the month of application for food stamp benefits, as 
        the adult that must participate.  When there are no earnings or 
        when earnings are identical for each adult, the county agency 
        shall designate the adult that must participate.  The person's 
        eligibility period begins participation in food stamp employment 
        and training services must begin on the first day of the 
        calendar month following the date of application eligibility for 
        assistance or following the date all eligibility factors are 
        met, whichever is later; however, food stamps.  With the county 
        agency's consent, and to the extent of available resources, the 
        person may voluntarily continue to participate in work readiness 
        food stamp employment and training services for up to three 
        additional consecutive months immediately following the last 
        month of benefits end of the six-month mandatory participation 
        period in order to complete the provisions of the person's 
        employability development plan.  After July 1, 1992, if 
        orientation is available within three weeks after the date 
        eligibility is determined, initial payment will not be made 
        until the registrant attends orientation to the work readiness 
        program.  Prior to terminating work readiness assistance the 
        county agency must provide advice on the person's eligibility 
        for general assistance medical care and must assess the person's 
        eligibility for general assistance under section 256D.05 to the 
        extent possible, using information in the case file, and 
        determine the person's eligibility for general assistance.  A 
        determination that the person is not eligible for general 
        assistance must be stated in the notice of termination of work 
        readiness benefits. 
           (b) Persons, families, and married couples who are not 
        state residents but who are otherwise eligible for work 
        readiness assistance may receive emergency assistance to meet 
        emergency needs. 
           (c) Except for family members who must participate in work 
        readiness services under the provisions of section 256D.05, 
        subdivision 1, clause (15), any person who would be defined for 
        purposes of the food stamp program as being enrolled or 
        participating at least half-time in an institution of higher 
        education or a post-secondary program is ineligible for the work 
        readiness program.  Post-secondary education does not include 
        the following programs:  (1) high school equivalency; (2) adult 
        basic education; (3) English as a second language; (4) literacy 
        training; and (5) skill-specific technical training that has a 
        course of study of less than three months, that is not paid for 
        using work readiness funds, and that is specified in the work 
        readiness employability development plan developed with the 
        recipient prior to the recipient beginning the training course. 
           (d) Notwithstanding the provisions of sections 256.045 and 
        256D.10, during the pendency of an appeal, work readiness 
        payments and services shall not continue to a person who appeals 
        the termination of benefits due to exhaustion of the period of 
        eligibility specified in paragraph (a) or (d). 
           Sec. 3.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [WORK READINESS PAYMENTS NOTICES; CONCILIATION 
        CONFERENCE; SANCTIONS.] (a) Except as provided in this 
        subdivision, grants of work readiness shall be determined using 
        the standards of assistance, exclusions, disregards, and 
        procedures which are used in the general assistance program.  
        Work readiness shall be granted in an amount that, when added to 
        the nonexempt income actually available to the assistance unit, 
        the total amount equals the applicable standard of assistance.  
           (b) Except as provided in section 256D.05, subdivision 6, 
        work readiness assistance must be paid on the first day of each 
        month. 
           At the time the county agency notifies the assistance unit 
        household that it is eligible for family general assistance or 
        work readiness assistance and by the first day of each month of 
        services food stamps, the county agency must inform all 
        mandatory registrants employment and training services 
        participants as identified in subdivision 1 in the assistance 
        unit household that they must comply with all work readiness 
        food stamp employment and training program requirements that 
        each month, including the requirement to attend an initial 
        orientation to the food stamp employment and training program 
        and that work readiness food stamp eligibility will end at the 
        end of the month unless the registrants participants comply with 
        work readiness the requirements specified in the notice.  A 
        registrant who fails, without good cause, to comply with 
        requirements during this time period, including attendance at 
        orientation, will lose family general assistance or work 
        readiness eligibility without notice under section 256D.101, 
        subdivision 1, paragraph (b).  The registrant shall, however, be 
        sent a notice no later than five days after eligibility ends, 
        which informs the registrant that family general assistance or 
        work readiness eligibility has ended in accordance with this 
        section for failure to comply with work readiness requirements.  
        The notice shall set forth the factual basis for such 
        determination and advise the registrant of the right to 
        reinstate eligibility upon a showing of good cause for the 
        failure to meet the requirements.  Subsequent assistance must 
        not be issued unless the person completes an application, is 
        determined eligible, and complies with the work readiness 
        requirements that had not been complied with, or demonstrates 
        that the person had good cause for failing to comply with the 
        requirement.  The time during which the person is ineligible 
        under these provisions is counted as part of the person's period 
        of eligibility under subdivision 1.  
           (c) Notwithstanding the provisions of section 256D.01, 
        subdivision 1a, paragraph (d), when one member of a married 
        couple has exhausted the five months of work readiness 
        eligibility in a 12-month period and the other member has one or 
        more months of eligibility remaining within the same 12-month 
        period, the standard of assistance applicable to the member who 
        remains eligible is the first adult standard in the aid to 
        families with dependent children program. 
           (d) Notwithstanding sections 256.045 and 256D.10, during 
        the pendency of an appeal, work readiness payments and services 
        shall not continue to a person who appeals the termination of 
        benefits under paragraph (b). 
           (b) A participant who fails without good cause to comply 
        with food stamp employment and training program requirements of 
        this section, including attendance at orientation, will lose 
        food stamp eligibility for two months or until the county agency 
        determines that the participant has complied with the program 
        requirements, whichever is shorter.  If the participant is not 
        the head of household, the person shall be considered an 
        ineligible household member for food stamp purposes.  If the 
        participant is the head of household, the entire household is 
        ineligible for food stamps as provided in Code of Federal 
        Regulations, title 7, section 273.7(g).  "Good cause" means 
        circumstances beyond the control of the participant, such as 
        illness or injury, illness or injury of another household member 
        requiring the participant's presence, a household emergency, or 
        the inability to obtain child care for children between the ages 
        of six and 12 or to obtain transportation needed in order for 
        the participant to meet the food stamp employment and training 
        program participation requirements. 
           (c) The county agency shall mail or hand deliver a notice 
        to the participant not later than five days after determining 
        that the participant has failed without good cause to comply 
        with food stamp employment and training program requirements 
        which specifies the requirements that were not complied with, 
        the factual basis for the determination of noncompliance, the 
        right to reinstate eligibility upon a showing of good cause or 
        the failure to meet the requirements, must ask the reason for 
        the noncompliance, and must identify the participant's appeal 
        rights.  The notice must request that the participant inform the 
        county agency if the participant believes that good cause 
        existed for the failure to comply, must offer the participant a 
        conciliation conference as provided in paragraph (d), and must 
        state that the county agency intends to terminate eligibility 
        for food stamp benefits due to failure to comply with food stamp 
        employment and training program requirements. 
           (d) The county agency must offer a conciliation conference 
        to participants who have failed to comply with food stamp 
        employment and training program requirements.  The purpose of 
        the conference is to determine the cause for noncompliance, to 
        attempt to resolve the problem causing the noncompliance so that 
        all requirements are complied with, and to determine if good 
        cause for noncompliance was present.  The conciliation period 
        shall run for ten working days from the date of the notice 
        required in paragraph (c).  Information about how to request a 
        conciliation conference must be specified in the notice required 
        in paragraph (c).  If the county agency determines that the 
        participant, during the conciliation period, complied with all 
        food stamp employment and training program requirements that the 
        recipient was required to comply with prior to and during the 
        conciliation period, or if the county agency determines that 
        good cause for failing to comply with the requirements was 
        present, a sanction on the participant's or household's food 
        stamp eligibility shall not be imposed. 
           (e) If the county agency determines that the participant 
        did not comply during the conciliation period with all food 
        stamp employment and training program requirements that were in 
        effect prior to and during the conciliation period, and if the 
        county agency determines that good cause was not present, the 
        county must provide a ten-day notice of termination of food 
        stamp benefits.  The termination notice must be issued following 
        the last day of the conciliation period.  The amount of food 
        stamps that are withheld from the household and determination of 
        the impact of the sanction on other household members is 
        governed by Code of Federal Regulations, title 7, section 273.7. 
           (f) The participant may appeal the termination of food 
        stamp benefits under the provisions of section 256.045. 
           Sec. 4.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COUNTY AGENCY DUTIES.] (a) The county agency 
        shall provide to registrants food stamp recipients a work 
        readiness food stamp employment and training program.  The work 
        readiness program must include: 
           (1) orientation to the work readiness food stamp employment 
        and training program; 
           (2) an individualized employability assessment and an 
        individualized employability development plan that includes 
        assessment of literacy, ability to communicate in the English 
        language, educational and employment history, and that estimates 
        the length of time it will take the registrant participant to 
        obtain employment.  The employability assessment and development 
        plan must be completed in consultation with the registrant 
        participant, must assess the registrant's participant's assets, 
        barriers, and strengths, and must identify steps necessary to 
        overcome barriers to employment.  A copy of the employability 
        development plan must be provided to the registrant; 
           (3) referral to available accredited remedial or skills 
        training programs designed to address registrant's participant's 
        barriers to employment; 
           (4) referral to available programs including the Minnesota 
        employment and economic development program that provide 
        subsidized or unsubsidized employment as necessary; 
           (5) a job search program, including job seeking skills 
        training; and 
           (6) other activities, to the extent of available resources 
        designed by the county agency to prepare the registrant 
        participant for permanent employment. 
           The work readiness program may include a public sector or 
        nonprofit work experience component only if the component is 
        established according to section 268.90. 
           In order to allow time for job search, the county agency 
        may not require an individual to participate in the work 
        readiness food stamp employment and training program for more 
        than 32 hours a week.  The county agency shall require an 
        individual to spend at least eight hours a week in job search or 
        other work readiness food stamp employment and training program 
        activities. 
           (b) The county agency shall prepare an annual plan for the 
        operation of its work readiness food stamp employment and 
        training program.  The plan must be submitted to and approved by 
        the commissioner of economic security.  The plan must include: 
           (1) a description of the services to be offered by the 
        county agency; 
           (2) a plan to coordinate the activities of all public 
        entities providing employment-related services in order to avoid 
        duplication of effort and to provide services more efficiently; 
           (3) a description of the factors that will be taken into 
        account when determining a client's employability development 
        plan; and 
           (4) provisions to assure that applicants and recipients are 
        evaluated for eligibility for general assistance prior to 
        termination from the work readiness program; and 
           (5) provisions to ensure that the county agency's 
        employment and training service provider provides each recipient 
        with an orientation, employability assessment, and employability 
        development plan as specified in paragraph (a), clauses (1) and 
        (2), within 30 days of the recipient's application eligibility 
        for assistance. 
           Sec. 5.  Minnesota Statutes 1994, section 256D.051, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [DUTIES OF COMMISSIONER.] In addition to any 
        other duties imposed by law, the commissioner shall: 
           (1) based on sections 256D.051 and 256D.052 and Code of 
        Federal Regulations, title 7, section 273.7, supervise the 
        administration of food stamp employment and training services to 
        county agencies; 
           (2) disburse money appropriated for food stamp employment 
        and training services to county agencies based upon the county's 
        costs as specified in section 256D.06; 
           (3) accept and supervise the disbursement of any funds that 
        may be provided by the federal government or from other sources 
        for use in this state for food stamp employment and training 
        services; and 
           (4) cooperate with other agencies including any agency of 
        the United States or of another state in all matters concerning 
        the powers and duties of the commissioner under sections 
        256D.051 and 256D.052. 
           Sec. 6.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REGISTRANT PARTICIPANT DUTIES.] In order to 
        receive work readiness food stamp assistance, a registrant 
        shall:  (1) cooperate with the county agency in all aspects of 
        the work readiness food stamp employment and training program; 
        (2) accept any suitable employment, including employment offered 
        through the job training partnership act, and other employment 
        and training options; and (3) participate in work readiness food 
        stamp employment and training activities assigned by the county 
        agency.  The county agency may terminate assistance to a 
        registrant who fails to cooperate in the work readiness food 
        stamp employment and training program, as provided in 
        subdivision 1a. 
           Sec. 7.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [PERSONS REQUIRED TO REGISTER FOR AND 
        PARTICIPATE IN THE WORK READINESS FOOD STAMP EMPLOYMENT AND 
        TRAINING PROGRAM.] Each person in a work readiness assistance 
        unit who is 18 years old or older must register for and 
        participate in the work readiness program.  A person in the 
        assistance unit who is at least 16 years old but less than 19 
        years old and who is not a full-time secondary school student is 
        required to register and participate.  A student who was 
        enrolled as a full-time student during the last school term must 
        be considered a full-time student during summers and school 
        holidays. (a) To the extent required under Code of Federal 
        Regulations, title 7, section 273.7(a), each applicant for and 
        recipient of food stamps is required to register for work as a 
        condition of eligibility for food stamp benefits.  Applicants 
        and recipients are registered by signing an application or 
        annual reapplication for food stamps, and must be informed that 
        they are registering for work by signing the form.  
           (b) The commissioner shall determine, within federal 
        requirements, persons required to participate in the Food Stamp 
        Employment and Training (FSET) program. 
           (c) The following food stamp recipients are exempt from 
        mandatory participation in food stamp employment and training 
        services: 
           (1) recipients of benefits under the AFDC program, 
        Minnesota supplemental aid program, or the general assistance 
        program, except that an adult who receives general assistance 
        under section 256D.05, subdivision 1, paragraph (b), is not 
        exempt unless that person qualifies under one of the remaining 
        exemption provisions in this paragraph; 
           (2) a child; 
           (3) a recipient over age 55; 
           (4) a recipient who has a mental or physical illness, 
        injury, or incapacity which is expected to continue for at least 
        30 days and which impairs the recipient's ability to obtain or 
        retain employment as evidenced by professional certification or 
        the receipt of temporary or permanent disability benefits issued 
        by a private or government source; 
           (5) a parent or other household member responsible for the 
        care of either a dependent child in the household who is under 
        age six or a person in the household who is professionally 
        certified as having a physical or mental illness, injury, or 
        incapacity.  Only one parent or other household member may claim 
        exemption under this provision; 
           (6) a recipient receiving unemployment compensation or who 
        has applied for unemployment compensation and has been required 
        to register for work with the department of economic security as 
        part of the unemployment compensation application process; 
           (7) a recipient participating each week in a drug addiction 
        or alcohol abuse treatment and rehabilitation program, provided 
        the operators of the treatment and rehabilitation program, in 
        consultation with the county agency, recommend that the 
        recipient not participate in the food stamp employment and 
        training program; 
           (8) a recipient employed or self-employed for 30 or more 
        hours per week at employment paying at least minimum wage, or 
        who earns wages from employment equal to or exceeding 30 hours 
        multiplied by the federal minimum wage; or 
           (9) a student enrolled at least half time in any school, 
        training program, or institution of higher education.  When 
        determining if a student meets this criteria, the school's, 
        program's or institution's criteria for being enrolled half time 
        shall be used. 
           Sec. 8.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 3b, is amended to read: 
           Subd. 3b.  [WORK READINESS PARTICIPATION REQUIREMENTS 
        ORIENTATION.] A work readiness registrant meets the work 
        readiness participation requirements if the registrant: 
           (1) completes the specific tasks or assigned duties that 
        were identified by the county agency in the notice required 
        under section 256D.101, subdivision 1, paragraph (a); and 
           (2) meets the requirements in subdivisions 3 and 8.  The 
        county agency or its employment and training service provider 
        must provide an orientation to food stamp employment and 
        training services to each nonexempt food stamp recipient within 
        30 days of the date that food stamp eligibility is determined.  
        The orientation must inform the participant of the requirement 
        to participate in services, the date, time, and address to 
        report to for services, the name and telephone number of the 
        food stamp employment and training service provider, the 
        consequences for failure without good cause to comply, the 
        services and support services available through food stamp 
        employment and training services and other providers of similar 
        services, and must encourage the participant to view the food 
        stamp program as a temporary means of supplementing the family's 
        food needs until the family achieves self-sufficiency through 
        employment.  The orientation may be provided through 
        audio-visual methods, but the participant must have the 
        opportunity for face-to-face interaction with county agency 
        staff.  
           Sec. 9.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 6, is amended to read: 
           Subd. 6.  [SERVICE COSTS.] Within the limits of available 
        resources, the commissioner shall reimburse 92 percent of county 
        agency expenditures for providing work readiness food stamp 
        employment and training services including direct participation 
        expenses and administrative costs, except as provided in section 
        256.017.  State work readiness food stamp employment and 
        training funds shall be used only to pay the county agency's and 
        work readiness food stamp employment and training service 
        provider's actual costs of providing participant support 
        services, direct program services, and program administrative 
        costs for persons who participate in work readiness such 
        employment and training services.  Beginning July 1, 1991, The 
        average annual reimbursable cost for providing work readiness 
        food stamp employment and training services to a recipient for 
        whom an individualized employability development plan is not 
        completed must not exceed $60 for the work readiness food stamp 
        employment and training services, and $223 $240 for necessary 
        recipient support services such as transportation or child care 
        needed to participate in work readiness services food stamp 
        employment and training program.  If an individualized 
        employability development plan has been completed, the average 
        annual reimbursable cost for providing work readiness food stamp 
        employment and training services must not exceed $283, except 
        that the total annual average reimbursable cost shall not exceed 
        $804 for recipients who participate in a pilot project work 
        experience program under Laws 1993, First Special Session 
        chapter 1, article 6, section 55, $300 for all services and 
        costs necessary to implement the plan, including the costs of 
        training, employment search assistance, placement, work 
        experience, on-the-job training, other appropriate activities, 
        the administrative and program costs incurred in providing these 
        services, and necessary recipient support services such as 
        tools, clothing, and transportation needed to participate 
        in work readiness food stamp employment and training services.  
        Beginning July 1, 1991, the state will reimburse counties, up to 
        the limit of state appropriations, according to the payment 
        schedule in section 256.025 for the county share of costs 
        incurred under this subdivision on or after January 1, 1991.  
        Payment to counties under this subdivision is subject to the 
        provisions of section 256.017.  The county agency may expend 
        additional county funds over and above the dollar limits of this 
        subdivision without state reimbursement.  
           Sec. 10.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 6b, is amended to read: 
           Subd. 6b.  [FEDERAL REIMBURSEMENT.] Federal financial 
        participation from the United States Department of Agriculture 
        for work readiness food stamp employment and training 
        expenditures that are eligible for reimbursement through the 
        food stamp employment and training program are dedicated funds 
        and are annually appropriated to the commissioner of human 
        services for the operation of the work readiness food stamp 
        employment and training program.  Federal financial 
        participation for the nonstate portion of work readiness food 
        stamp employment and training costs must be paid to the county 
        agency that incurred the costs.  
           Sec. 11.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 8, is amended to read: 
           Subd. 8.  [VOLUNTARY QUIT.] A person who is required to 
        participate in work readiness food stamp employment and training 
        services is not eligible for general assistance or work 
        readiness payments or services food stamps if, without good 
        cause, the person refuses a legitimate offer of, or quits, 
        suitable employment within 60 days before the date of 
        application.  A person who is required to participate in work 
        readiness food stamp employment and training services and, 
        without good cause, voluntarily quits suitable employment or 
        refuses a legitimate offer of suitable employment while 
        receiving general assistance or work readiness payments or 
        services food stamps shall be terminated from the general 
        assistance or work readiness food stamp program as specified in 
        subdivision 1a. 
           Sec. 12.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 9, is amended to read: 
           Subd. 9.  [SUBCONTRACTORS.] A county agency may, at its 
        option, subcontract any or all of the duties under subdivision 2 
        this section to a public or private entity approved by the 
        commissioner of economic security. 
           Sec. 13.  Minnesota Statutes 1994, section 256D.051, 
        subdivision 17, is amended to read: 
           Subd. 17.  [START WORK GRANTS.] Within the limit of 
        available appropriations, the county agency may make grants 
        necessary to enable work readiness recipients food stamp 
        employment training program participants to accept bona fide 
        offers of employment.  The grants may be made for costs directly 
        related to starting employment, including transportation costs, 
        clothing, tools and equipment, license or other fees, and 
        relocation.  Start work grants are available once in any 
        12-month period to a recipient participant.  The commissioner 
        shall allocate money appropriated for start work grants to 
        counties based on each county's work readiness food stamp 
        employment and training program caseload in the 12 months ending 
        in March for each following state fiscal year and may reallocate 
        any unspent amounts. 
           Sec. 14.  Minnesota Statutes 1994, section 256D.052, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SERVICES PROVIDED PARTICIPANT LITERACY 
        TRANSPORTATION COSTS.] Within the limits of the state 
        appropriation the county agency must provide transportation to 
        enable people food stamp employment and training participants to 
        participate in literacy training under this section.  The state 
        shall reimburse county agencies for the costs of providing 
        transportation under this section up to the amount of the state 
        appropriation.  Counties must make every effort to ensure that 
        child care is available as needed by recipients who are pursuing 
        literacy training. 
           Sec. 15.  [256D.23] [TEMPORARY COUNTY ASSISTANCE PROGRAM.] 
           Subdivision 1.  [PROGRAM ESTABLISHED.] Minnesota residents 
        who meet the income and resource standards of section 256D.01, 
        subdivision 1a, but do not qualify for cash benefits under 
        sections 256D.01 to 256D.22, may qualify for a county payment 
        under this section. 
           Subd. 2.  [PAYMENT AMOUNT, DURATION, AND METHOD.] (a) A 
        county may make a payment of up to $203 for a single individual 
        and up to $260 for a married couple under the terms of this 
        subdivision. 
           (b) Payments to an individual or married couple may only be 
        made once in a calendar year.  If the applicant qualifies for a 
        payment as a result of an emergency, as defined by the county, 
        the payment shall be made within ten working days of the date of 
        application.  If the applicant does not qualify under the county 
        definition of emergency, the payment shall be made at the 
        beginning of the second month following the month of 
        application, and the applicant must receive the payment in 
        person at the local agency office. 
           (c) Payments may be made in the form of cash or as vendor 
        payments for rent and utilities.  If vendor payments are made, 
        they shall be equal to $203 for a single individual or $260 for 
        a married couple, or the actual amount of rent and utilities, 
        whichever is less. 
           (d) Each county must develop policies and procedures as 
        necessary to implement this section. 
           (e) Payments under this section are not an entitlement.  No 
        county is required to make a payment in excess of the amount 
        available to the county under subdivision 3. 
           Subd. 3.  [STATE ALLOCATION TO COUNTIES.] The commissioner 
        shall allocate to each county on an annual basis the amount 
        specifically appropriated for payments under this section.  The 
        allocation shall be based on each county's proportionate share 
        of state fiscal year 1994 work readiness expenditures. 
           Sec. 16.  [APPROPRIATIONS] 
           Subdivision 1.  [GENERAL ASSISTANCE GRANTS.] $5,281,000 is 
        appropriated from the general fund to the commissioner of human 
        services for the biennium ending June 30, 1997, to cover the 
        projected expansion in the general assistance caseload 
        attributable to the transfer of some work readiness clients to 
        general assistance. 
           Subd. 2.  [TEMPORARY COUNTY ASSISTANCE.] $6,427,000 is 
        appropriated from the general fund to the commissioner of human 
        services for the biennium ending June 30, 1997, for purposes of 
        the temporary county assistance program under Minnesota 
        Statutes, section 256D.23.* (The preceding subdivision was vetoed by 
        the 
         governor.) 
           Sec. 17.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes is directed to delete the words 
        "work readiness" wherever they appear in Minnesota Statutes, 
        sections 256D.01 to 256D.21, in the next and subsequent editions 
        of Minnesota Statutes. 
           Sec. 18.  [REPEALER.] 
           Minnesota Statutes 1994, sections 256D.051, subdivisions 
        10, 13, 14, and 15; 256D.052, subdivisions 1, 2, and 4; 
        256D.091; 256D.101; 256D.111; and 256D.113, are repealed. 
                                   ARTICLE 7 
                   MINNESOTA FAMILY INVESTMENT PLAN EXPANSION
           Section 1.  [256.047] [EXPANSION OF MFIP TO RAMSEY COUNTY 
        (MFIP-R).] 
           Subdivision 1.  [MISSION STATEMENT.] The goal of MFIP-R 
        employment and pre-employment services is to help caregivers 
        increase their family income in a timely manner through paid 
        employment. 
           Subd. 2.  [SERVICE PROVIDING AGENCIES.] Employment and 
        pre-employment services must be offered by providers certified 
        by the commissioner of economic security who meet the standards 
        in section 268.871, subdivision 1.  County agencies must ensure 
        that all services, including contracted services, meet the 
        requirements of MFIP-R services according to section 256.048, 
        subdivision 6. 
           Subd. 3.  [STAFFING.] County agencies may hire MFIP-R 
        staff, which includes employment specialists, job developers, 
        and vocational counselors to provide pre-employment and 
        employment services described in section 256.048, subdivision 6, 
        and coordinate social and support services.  County agencies are 
        expected to ensure that staff providing employment and 
        pre-employment services have the necessary training and 
        experience to perform the specific services which they are 
        assigned to do. 
           Sec. 2.  [256.0475] [DEFINITIONS.] 
           Subdivision 1.  [EMPLOYABILITY PLAN.] "Employability plan" 
        means the plan developed by MFIP-R staff and the caregiver under 
        section 256.048. 
           Subd. 2.  [FAMILY SUPPORT AGREEMENT.] "Family support 
        agreement" means the subsection of the employability plan which 
        is limited to employment, education, employment and training 
        services, and scheduled meetings with MFIP-R staff.  For 
        mandatory caregivers, noncompliance with the family support 
        agreement may result in sanction. 
           Subd. 3.  [MANDATORY CAREGIVER.] "Mandatory caregiver" 
        means a caregiver who is required to develop a family support 
        agreement under section 256.048, and is not exempt under that 
        section. 
           Subd. 4.  [MFIP-R.] "MFIP-R" means the pre-employment and 
        employment program under section 256.048 provided to caregivers 
        assigned to the Minnesota family investment plan in Ramsey 
        county who receive financial assistance under sections 256.033, 
        256.034, and 256.036. 
           Sec. 3.  [256.048] [INCOME SUPPORT AND TRANSITION.] 
           Subdivision 1.  [EXPECTATIONS.] The requirement for a 
        caregiver to develop a family support agreement is tied to the 
        structure of the family and the length of time on assistance 
        according to paragraphs (a) to (c). 
           (a) In a family headed by a single adult parental caregiver 
        who has received AFDC, family general assistance, MFIP, or a 
        combination of AFDC, family general assistance, and MFIP 
        assistance for 12 or more months within the preceding 24 months, 
        the parental caregiver must be developing and complying with the 
        terms of the family support agreement commencing with the 13th 
        month of assistance. 
           (b) For a family with a minor parental caregiver or a 
        family whose parental caregiver is 18 or 19 years of age and 
        does not have a high school diploma or its equivalent, the 
        parental caregiver must be developing and complying with a 
        family support agreement concurrent with the receipt of 
        assistance.  The terms of the family support agreement must 
        include compliance with section 256.736, subdivision 3b.  If the 
        parental caregiver fails to comply with the terms of the family 
        support agreement, the sanctions in subdivision 4 apply.  When 
        the requirements in section 256.736, subdivision 3b, have been 
        met, a caregiver has fulfilled the caregiver's obligation.  
        County agencies must continue to offer MFIP-R services if the 
        caregiver wants to continue with an employability plan.  
        Caregivers who fulfill the requirements of section 256.736, 
        subdivision 3b, are subject to the expectations of paragraphs 
        (a) and (c). 
           (c) In a family with two adult parental caregivers, at 
        least one of whom has received AFDC, family general assistance, 
        MFIP, or a combination of AFDC, family general assistance, and 
        MFIP assistance for six or more months within the preceding 12 
        months, one parental caregiver must be developing and complying 
        with the terms of the family support agreement commencing with 
        the seventh month of assistance.  The family and MFIP-R staff 
        will designate the parental caregiver who will develop the 
        family support agreement based on which parent has the greater 
        potential to increase family income through immediate employment.
           Subd. 2.  [EXEMPTIONS.] A caregiver is exempt from 
        expectations as provided in paragraphs (a) and (b). 
           (a) Except for clause (4), which applies only for a 
        single-parent family, a caregiver in a single-parent or 
        two-parent family is exempt from the expectations of MFIP-R if 
        the caregiver is: 
           (1) ill, incapacitated, or 60 years of age or older; 
           (2) needed in the home because of the illness or incapacity 
        of another family member; 
           (3) the parent of a child under one year of age and is 
        personally providing care for the child.  This exemption does 
        not apply to the school attendance requirement for minor parents 
        or 18- and 19-year old parents as provided in section 256.736, 
        subdivision 3b, paragraphs (f) and (g); 
           (4) the parent of a child under six years of age and is 
        employed or participating in education or employment and 
        training services for 20 or more hours per week.  This exemption 
        does not apply to the school attendance requirement for minor 
        parents or 18- and 19-year-old parents as provided in section 
        256.736, subdivision 3b, paragraph (f), clause (5); 
           (5) working 30 hours or more per week or, if the number of 
        hours cannot be verified, earns weekly, at least the federal 
        minimum hourly wage rate multiplied by 30; 
           (6) in the second or third trimester of pregnancy; or 
           (7) not the natural parent, adoptive parent, or stepparent 
        of a minor child in the assistance unit. 
           (b) In a two-parent household, only one parent may be 
        exempt under paragraph (a), clause (2) or (3).  If paragraph 
        (a), clause (5), applies to either parent in a two-parent 
        family, the other parent is exempt.  In a two-parent household, 
        if the parent designated to develop a family support agreement 
        becomes exempt and the exemption is expected to last longer than 
        six months, then the second parent is required to develop a 
        family support agreement unless otherwise exempt under paragraph 
        (a). 
           Subd. 3.  [GOOD CAUSE FOR FAILURE TO COMPLY.] Caregivers 
        may claim the following reasons as good cause for failure to 
        comply with the expectations of MFIP-R employment and 
        pre-employment services: 
           (1) needed child care is not available; 
           (2) the job does not meet the definition of suitable 
        employment according to section 256.736, subdivision 1a, 
        paragraph (h); 
           (3) the parental caregiver is ill, incapacitated, or 
        injured; 
           (4) a family member is ill and needs care by the parental 
        caregiver; 
           (5) the parental caregiver is unable to secure the 
        necessary transportation; 
           (6) the parental caregiver is in an emergency situation; 
           (7) the schedule of compliance with the family support 
        agreement conflicts with judicial proceedings; 
           (8) the parental caregiver is already participating in 
        acceptable activities; 
           (9) the family support agreement requires an educational 
        program for a parent under the age of 20, but the educational 
        program is not offered in the school district; 
           (10) activities identified in the family support agreement 
        are not available; 
           (11) the parental caregiver is willing to accept suitable 
        employment but employment is not available; 
           (12) the parental caregiver documents other verifiable 
        impediments to compliance with the family support agreement 
        beyond the parental caregiver's control; or 
           (13) the family support agreement requires an educational 
        program for a parent under the age of 20, but the only available 
        school program requires round trip commuting time from the 
        custodial parent's residence of more than two hours by available 
        means of transportation, excluding the time necessary to 
        transport children to and from child care. 
           Subd. 4.  [SANCTION.] The county agency must reduce an 
        assistance unit's assistance payment by ten percent of the 
        transitional standard for the applicable family size when a 
        caregiver, who is not exempt from the expectations in this 
        section, fails to attend a mandatory briefing, fails to attend 
        scheduled meetings with MFIP-R staff, or fails to develop or 
        comply with the terms of the caregiver's family support 
        agreement.  MFIP-R staff must send caregivers a notice of intent 
        to sanction.  For the purpose of this section, "notice of intent 
        to sanction" means MFIP-R staff must provide written 
        notification to the caregiver that the caregiver is not 
        fulfilling the requirement to develop or comply with the family 
        support agreement.  This notification must inform the caregiver 
        of the right to request a conciliation conference within ten 
        days of the mailing of the notice of intent to sanction or the 
        right to request a fair hearing under section 256.045.  If a 
        caregiver requests a conciliation conference, the county agency 
        must postpone implementation of the sanction pending completion 
        of the conciliation conference.  If the caregiver does not 
        request a conciliation conference within ten calendar days of 
        the mailing of the notice of intent to sanction, the MFIP-R 
        staff must notify the county agency that the assistance payment 
        should be reduced. 
           Upon notification from MFIP-R staff that an assistance 
        payment should be reduced, the county agency must send a notice 
        of adverse action to the caregiver stating that the assistance 
        payment will be reduced in the next month following the ten-day 
        notice requirement and state the reason for the action.  For the 
        purpose of this section, "notice of adverse action" means the 
        county agency must send a notice of sanction, reduction, 
        suspension, denial, or termination of benefits before taking any 
        of those actions.  The caregiver may request a fair hearing 
        under section 256.045, upon notice of intent to sanction or 
        notice of adverse action, but the conciliation conference is 
        available only upon notice of intent to sanction. 
           Subd. 5.  [ORIENTATION.] The county agency must provide a 
        financial assistance orientation which supplies information to 
        caregivers about the MFIP-R and must encourage parental 
        caregivers to engage in activities to stabilize the family and 
        lead to employment and self-support. 
           Subd. 6.  [PRE-EMPLOYMENT AND EMPLOYMENT SERVICES.] The 
        county agency must provide services identified in clauses (1) to 
        (10).  Services include: 
           (1) a required briefing for all nonmandatory caregivers 
        assigned to MFIP-R, which includes a review of the information 
        presented at an earlier MFIP-R orientation pursuant to 
        subdivision 5, and an overview of services available under 
        MFIP-R pre-employment and employment services, an overview of 
        job search techniques, and the opportunity to volunteer for 
        MFIP-R job search activities and basic education services; 
           (2) a briefing for all mandatory caregivers assigned to 
        MFIP-R, which includes a review of the information presented at 
        an earlier MFIP-R orientation pursuant to subdivision 5, and an 
        overview of services available under MFIP-R pre-employment and 
        employment services; 
           (3) an MFIP assessment that meets the requirements of 
        section 256.736, subdivision 10, paragraph (a), clause (14), and 
        addresses caregivers' skills, abilities, interests, and needs; 
           (4) development, together with the caregiver, of an 
        employability plan and family support agreement according to 
        subdivision 7; 
           (5) coordination of services including child care, 
        transportation, education assistance, and social services 
        necessary to enable caregivers to fulfill the terms of the 
        employability plan and family support agreement; 
           (6) provision of full-time English as a second language 
        (ESL) classes; 
           (7) provision of a broad range of employment and 
        pre-employment services including basic skills testing, interest 
        and aptitude testing, career exploration, job search activities, 
        community work experience program under section 256.737, or 
        on-the-job training under section 256.738; 
           (8) evaluation of the caregiver's compliance with the 
        employability plan and family support agreement and support and 
        recognition of progress toward employment goals; 
           (9) provision of postemployment follow-up for up to six 
        months after caregivers become exempt or exit MFIP-R due to 
        employment if requested by the caregiver; and 
           (10) approval of education and training program activities. 
           Subd. 7.  [EMPLOYABILITY PLAN AND FAMILY SUPPORT 
        AGREEMENT.] (a) The caregiver and MFIP-R staff will develop an 
        employability plan and family support agreement.  The 
        employability plan includes the caregiver's overall employment 
        goal, activities necessary to reach that goal, a timeline for 
        each activity, and the support services provided by the agency.  
        All activities in the employability plan must contribute to the 
        caregiver's overall employment goal. 
           (b) The family support agreement is the enforceable section 
        of an employability plan for mandatory caregivers.  The family 
        support agreement must be limited to employment, education, or 
        employment and training services, and scheduled meetings with 
        MFIP-R staff.  The family support agreement must be signed by 
        both an MFIP-R staff and the parental caregiver.  
           (1) In developing an employability plan and family support 
        agreement, MFIP-R staff must discuss with the caregiver the 
        economic benefits under MFIP of taking available employment.  
        MFIP-R staff must provide examples of how different levels of 
        earnings increase available income. 
           (2) Activities in the family support agreement must enhance 
        the family's opportunities to increase its income in a timely 
        manner through paid employment. 
           (3) Each step of the family support agreement shall build 
        upon prior steps and facilitate progress toward the caregiver's 
        overall employment goal. 
           (4) Social services, such as mental health or chemical 
        dependency services, parenting education, or budget management, 
        can be included in the employability plan but not in the family 
        support agreement and are not subject to sanctions under 
        subdivision 4. 
           (5) The family support agreement must state the parental 
        caregiver's obligations and the standards for satisfactory 
        compliance with the requirements of MFIP-R.  
           Subd. 8.  [REQUIREMENT TO ATTEND BRIEFING.] All MFIP-R 
        caregivers are required to attend a mandatory briefing which 
        includes a review of the information presented at an earlier 
        MFIP-R orientation pursuant to subdivision 5, and an overview of 
        services available under MFIP-R pre-employment and employment 
        services. 
           Subd. 9.  [REQUIREMENT TO PARTICIPATE IN JOB SEARCH.] The 
        family support agreement for mandatory caregivers will include 
        30 hours per week of job search activity.  The family support 
        agreement for single parental caregivers with a child under the 
        age of six may require no more than 20 hours of job search 
        activity.  Job search requirements do not apply to minor 
        parental caregivers and parental caregivers under the age of 20 
        who must meet the educational requirement under section 256.736, 
        subdivision 3b. 
           Subd. 10.  [LENGTH OF JOB SEARCH.] Caregivers participating 
        in job search shall have eight weeks to find employment which is 
        consistent with the employment goal in the family support 
        agreement.  If after eight weeks of job search the parental 
        caregiver does not find employment consistent with the overall 
        employment goal, the caregiver must accept any suitable 
        employment. 
           Subd. 11.  [LEVEL OF EMPLOYMENT.] Caregivers participating 
        in job search are expected to seek and accept full-time 
        employment.  Any caregiver satisfies this requirement by working 
        at least 30 hours per week.  Single parents with a child under 
        the age of six satisfy the requirement by working at least 20 
        hours per week. 
           Subd. 12.  [CESSATION OF EMPLOYMENT.] Mandatory caregivers 
        who quit a job, are laid off, or are terminated must contact 
        MFIP-R staff within ten calendar days of the date the employment 
        ended to schedule a meeting to revise the family support 
        agreement to incorporate job search activities to obtain 
        suitable employment.  A caregiver who fails to contact MFIP-R 
        staff within ten calendar days, fails to attend a scheduled 
        meeting to revise the family support agreement, or fails to 
        accept an offer of suitable employment is subject to sanctions 
        under subdivision 4. 
           Subd. 13.  [EDUCATION AND TRAINING ACTIVITIES; BASIC 
        EDUCATION.] Basic education, including adult basic education, 
        high school or general equivalency diploma, or ESL may be 
        included in the family support agreement when a caregiver is 
        actively participating in job search activities as specified in 
        the family support agreement, or employed at least 12 hours per 
        week.  Six months of basic education activities may be included 
        in the family support agreement, and extension of basic 
        education activities is contingent upon review and approval by 
        MFIP-R staff.  
           Non-English speaking caregivers have the option to 
        participate in full-time ESL activities for up to six months 
        prior to participation in job search with approval of MFIP-R 
        staff. 
           Subd. 14.  [EDUCATION AND TRAINING ACTIVITIES; 
        POST-SECONDARY EDUCATION.] (a) Mandatory caregivers, mandatory 
        caregivers who become exempt, and caregivers converted from 
        STRIDE or ACCESS may have post-secondary education included in 
        the family support agreement.  For individuals who are 
        participating in an educational program under this paragraph on 
        a full-time basis as determined by the institution, there is no 
        work requirement.  For individuals participating in an 
        educational program on a part-time basis as determined by the 
        institution, the minimum number of hours that a participant must 
        work shall be increased or decreased in inverse proportion to 
        the number of credit hours being taken, up to a maximum of 12 
        hours weekly of work.  
           (b) Conditions for approval of a post-secondary education 
        program include demonstration by the caregiver that: 
           (1) there is a market for full-time employees with this 
        education or training where the caregiver will or is willing to 
        reside upon completion of the program; 
           (2) the average wage level for employees with this 
        education or training is significantly greater than the 
        caregiver can earn without this education or training; 
           (3) the caregiver can meet the requirements for admission 
        into the program; and 
           (4) there is a reasonable expectation that the caregiver 
        will complete the training program based on such factors as the 
        caregiver's current MFIP assessment; previous education, 
        training, and work history; current motivation; and changes in 
        previous circumstances. 
           (c) A comparison must be made between income foregone by 
        delaying immediate entry into full-time paid employment while in 
        pursuit of education or training and the probable income which 
        will be earned following the education or training.  The 
        advantages and disadvantages to the family must be discussed 
        with respect to both options. 
           (d) Activities under this subdivision are limited to the 
        equivalent of two years of full-time education, with the 
        following exceptions: 
           (1) caregivers in subdivision 15; 
           (2) caregivers who have already obtained a post-secondary 
        degree.  These caregivers are limited to course work necessary 
        to upgrade skills, or obtain licensure or certification; 
           (3) extenuating circumstances that prohibit the caregiver 
        from completing the program within the equivalent of two years; 
        or 
           (4) the education activities may be part of a four-year 
        education program provided the family support agreement 
        specifies that the employment goal will be met at the time the 
        caregiver completes the equivalent of two years of full-time 
        education or that the caregiver will participate in activities 
        leading to the employment goal following completion of the two 
        years of full-time education. 
           (e) Caregivers in education or training programs must 
        maintain satisfactory progress.  "Satisfactory progress" in an 
        education or training program means the caregiver remains in 
        good standing as defined by the education or training 
        institution and meets the requirements in the caregiver's MFIP-R 
        employability plan.  MFIP-R staff may withdraw approval of the 
        caregiver's employability plan when the caregiver does not 
        maintain satisfactory progress in the education or training 
        program. 
           Subd. 15.  [CONVERTED STRIDE AND ACCESS CASES.] Caregivers 
        with an employability plan from STRIDE or ACCESS must develop an 
        MFIP-R employability plan.  With approval of the MFIP-R staff, 
        the family support agreement for caregivers under this section 
        may include continuation of educational activities, up to a 
        baccalaureate degree, if initiated under STRIDE or ACCESS.  
        Caregivers who continue these activities must also participate 
        in job search or work at least 12 hours per week. 
           Subd. 16.  [REVISIONS TO FAMILY SUPPORT AGREEMENT.] The 
        caregiver may revise the family support agreement with approval 
        of MFIP-R staff.  
           Subd. 17.  [VOLUNTEERS FOR MFIP-R PRE-EMPLOYMENT AND 
        EMPLOYMENT SERVICES.] (a) Upon request, local agencies must 
        continue to offer MFIP-R services to:  
           (1) caregivers with a signed family support agreement who 
        become exempt under subdivision 2; and 
           (2) caregivers randomly assigned to MFIP during the 
        conversion period who have an active STRIDE or ACCESS plan. 
           (b) County agencies must also service the following 
        caregivers, as funding allows: 
           (1) second parent in a two-parent family; and 
           (2) caregivers who have not reached the timing for 
        mandatory participation. 
           (c) Volunteers under paragraph (a) may access all MFIP-R 
        services.  Volunteers under paragraph (b), clause (1), may 
        access MFIP-R job search and basic education services only.  
        Volunteers under paragraph (b), clause (2), may access only 
        MFIP-R job search services.  
           (d) Caregivers identified in this subdivision are voluntary 
        participants for MFIP-R pre-employment and employment services 
        and may not be sanctioned for failure to cooperate unless they 
        reach the timing of MFIP-R pre-employment and employment 
        services under subdivision 6, or are no longer exempt under 
        subdivision 2. 
           Subd. 18.  [CONCILIATION.] The county agency must inform 
        the mandatory parental caregiver of the option of a conciliation 
        conference when the mandatory parental caregiver receives a 
        notice of intent to sanction or cannot reach agreement with 
        MFIP-R staff about the contents or interpretation of the family 
        support agreement. 
           Conciliation procedures shall be available as provided in 
        section 256.736, subdivision 11, paragraph (c).  Upon receiving 
        a notice of intent to sanction, a caregiver may request a 
        hearing under section 256.045 without exercising the option of a 
        conciliation conference. 
           Subd. 19.  [CHILD CARE.] The commissioner shall ensure that 
        each MFIP caregiver who is employed or is developing or is 
        engaged in activities identified in an employability plan under 
        subdivision 7, and who needs assistance with child care costs to 
        be employed or to develop or comply with the terms for an 
        employability plan, receives a child care subsidy through child 
        care money appropriated for the MFIP.  The subsidy must cover 
        all actual child care costs for eligible hours up to the maximum 
        rate allowed under section 256H.15.  A caregiver who is in the 
        assistance unit and leaves the program as a result of increased 
        earnings from employment, and needs child care assistance to 
        remain employed, is entitled to extended child care assistance 
        as provided under United States Code, title 42, section 
        602(g)(1)(a)(ii), on a copayment basis. 
           Subd. 20.  [HEALTH CARE.] A family leaving the program as a 
        result of increased earnings from employment is eligible for 
        extended medical assistance as provided under Public Law Number 
        100-485, section 303, as amended, and Public Law Number 101-239, 
        section 8015(b)(7). 
           Sec. 4.  [256.049] [APPLICABILITY.] 
           Section 256.035 will not apply to the expansion of MFIP 
        into Ramsey county (MFIP-R).  Sections 256.047 to 256.048 will 
        substitute for section 256.035 for the purposes of MFIP-R.  
        Sections 256.031 to 256.034, and 256.036, 256.0361, and 268.871 
        are applicable to MFIP-R insofar as they are not inconsistent 
        with sections 256.047 to 256.048.  Minnesota Rules, part 
        9500.4220, does not apply to MFIP-R.  Minnesota Rules, parts 
        9500.4000 to 9500.4210, and 9500.4230 to 9500.4340, are 
        applicable to the expansion of MFIP into Ramsey county insofar 
        as they are not inconsistent with sections 256.047 to 256.048. 
           Sec. 5.  [APPROPRIATIONS.] 
           Subdivision 1.  [COUNTY ADMINISTRATIVE COSTS.] (a) $50,000 
        is appropriated to pay for MFIP-R county administrative costs 
        for the fiscal year beginning July 1, 1995. 
           (b) $200,000 is appropriated to pay for MFIP-R county 
        administrative costs for the fiscal year beginning July 1, 1996. 
           Subd. 2.  [MFIP-R.] $6,589,000 is appropriated for the 
        expansion of MFIP-R into Ramsey county for grants and child care 
        for fiscal year beginning July 1, 1996. 
           Subd. 3.  [MFIP-R CASE MANAGEMENT.] $1,601,000 is 
        appropriated for MFIP-R case management for the fiscal year 
        beginning July 1, 1996. 
           Sec. 6.  [EFFECTIVE DATE.] 
           (a) Sections 1 to 4 and 5, subdivisions 1, paragraph (b), 
        2, and 3, are effective July 1, 1996. 
           (b) Section 5, subdivision 1, paragraph (a), is effective 
        July 1, 1995. 
           Presented to the governor May 15, 1995 
           Signed by the governor May 18, 1995, 11:48 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes